Document:

Exhibit 10.1

 

EXCHANGE AGREEMENT

 

EXCHANGE AGREEMENT
(the “Agreement”) is made as of the 2nd day of October 2016, by and between, Great Basin Scientific, Inc., a
Delaware corporation (the “Company”), and the investor signatory hereto (the “Investor”).

 

WHEREAS, reference
is hereby made to (a) that certain Securities Purchase Agreement, dated December 28, 2015, by and among the Company, the Investor
and certain other buyers signatory thereto (the “2015 SPA”), pursuant to which the Investor and such other buyers
acquired (i) senior secured convertible notes (the “2015 Notes”) and (ii) warrants to acquire shares of the
Company's common stock, par value $0.0001 per share (the ”Common Stock”) (the “2015 Warrants”),
(b) that certain Securities Purchase Agreement, dated June 29, 2016, by and among the Company, the Investor and certain other buyers
signatory thereto (the “2016 SPA” and together with the 2015 SPA, each, an “SPA” and collectively,
the “SPAs”), pursuant to which the Investor and such other buyers acquired (i) senior secured convertible notes
(the “2016 Notes”) and (ii) warrants to acquire shares of Common Stock (the “2016 Warrants”).
Capitalized terms not defined herein shall have the meaning as set forth in the 2015 SPA and/or 2015 Notes, as applicable, and
(c) that certain leak-out agreement, dated September 19, 2016, by and between the Company and the Investor (the “Leak-Out
Agreement”).

 

WHEREAS, in
exchange for the aggregate principal amount of the 2015 Notes outstanding as of the Closing Date (as defined below) (together with
any accrued and unpaid interest thereon, the “Exchange Note”), the Company desires to issue to the Investor
(a) such aggregate number of shares of Common Stock (the “Exchange Shares”) equal to the lesser of (i) the quotient
of (x) the aggregate principal amount of the Exchange Note as of the Closing Date divided by (y) the Exchange Price (as defined
below) (the “Maximum Share Amount”) and (ii) such aggregate number of shares of Common Stock equal to Maximum
Percentage of Common Stock outstanding as of the Exchange Date (the “Blocker Share Amount”) and (b) solely if
the Blocker Share Amount is less than the Maximum Share Amount, a right to receive, subject to the terms and conditions set forth
herein, from time to time (such right of the Investor, the “Right”), such aggregate number of shares of Common
Stock obtained by subtracting (x) the Blocker Shares Amount, from (y) the Maximum Share Amount (the “Right Share Amount”,
and such shares of Common Stock, the “Right Shares”).

 

WHEREAS, the
exchange of the Exchange Note for the Exchange Shares and, if applicable, the Right is being made in reliance upon the exemption
from registration provided by Section 4(a)(2) and Rule 144(d)(3)(ii) of the Securities Act of 1933, as amended (the “1933
Act”).

 

WHEREAS, concurrently
herewith, the Company is entering into agreements with holders of 2015 Notes representing at least the Required Holders (as defined
in the 2015 Notes) (each, an “Other Investor”, and such agreements, each an “Other Agreement”)
substantially in the form of this Agreement (other than with respect to the identity of the Investor, any provision regarding the
reimbursement of legal fees and proportional changes reflecting the different aggregate principal amount of the 2015 Notes and
Right Shares of such Other Investor then outstanding).

 

     

     

    

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in consideration of the
promises and the mutual agreements, representations and warranties, provisions and covenants contained herein, the parties hereto,
intending to be legally bound hereby, agree as follows:

 

1.          Exchange.
On the Closing Date (as defined below), subject to the terms and conditions of this Agreement, the Investor shall, and the Company
shall, pursuant to Section 4(a)(2) and Rule 144(d)(3)(ii) of the 1933 Act, exchange the Exchange Note for the Exchange Shares and,
if applicable, the Right. At the Closing (as defined below), the following transactions shall occur (such transactions in this
Section 1, the “Exchange”):

 

1.1           As
of the Closing Date, the Exchange Note shall be free and clear of all Liens. Upon receipt of the Exchange Shares in accordance
with Section 1.2 and, if applicable, the creation of the Right hereunder as of the Closing Date, all of the Investor’s rights
under the Exchange Note shall be extinguished (including, without limitation, the rights to receive any accrued and unpaid interest
thereon or any other shares of Common Stock with respect thereto).

 

1.2           On
or prior to the third (3rd) Trading Day after the Closing Date, the Company shall credit the Exchange Shares to the Investor or
its designee’s balance account with the Depository Trust Company (“DTC”) in accordance with the DTC instructions
delivered by the Investor in writing to the Company on or prior to the Closing Date. On the Closing Date, the Investor shall be
deemed for all corporate purposes to have become the holder of record of the Exchange Shares and, if applicable, the Right, irrespective
of the date such Exchange Shares are credited to the Investor’s or its designee’s balance account with DTC in accordance
herewith.

 

1.3           The
Company and the Investor shall execute and/or deliver such other documents and agreements as are customary and reasonably necessary
to effectuate the Exchange.

 

1.4           For
purposes of this Agreement, “Exchange Price” means 85% of the lowest daily Weighted Average Price of the Common
Stock during the five (5) consecutive Trading Days ending and including the Trading Day immediately prior to the Closing Date (with
all such determinations to be appropriately adjusted for any stock split, stock dividend, stock combination, reclassification or
other similar transaction during such applicable period and as such Exchange Price may be further adjusted for any stock split,
stock dividend, stock combination, reclassification or other similar transaction occurring on or after the Closing Date).

 

    	 	2	 

     

    

 

2.           Voluntary
Reduction Notice; Waivers; Release; Leak-Out Amendment.

 

2.1           Voluntary
Reduction Notice. Effective as of the date the holders of 2015 Notes representing at least the Required Holders (as defined
in the 2015 Notes) shall have executed either this Agreement or an Other Agreement (the “Effective Date”), pursuant
to Section 7(d) of the 2015 Notes, the Company hereby elects to lower (but in no event increase) the Conversion Price of each of
the 2015 Notes of the Investor and each Other Investor with respect to any given Trading Day during the period (the “Voluntary
Reduction Period”, and any such reduction, each a “Voluntary Reduction”) commencing on the Effective
Date, through and including November 17, 2016, to the Alternate Conversion Price (as defined below) for such Trading Day. For the
purpose of this Section 2.1, the “Alternate Conversion Price” for any given Trading Day during the Voluntary
Reduction Period shall equal 85% of the lowest daily Weighted Average Price of the Common Stock during the five (5) consecutive
Trading Days ending and including such given Trading Day (with all such determinations to be appropriately adjusted for any stock
split, stock dividend, stock combination, reclassification or other similar transaction during such applicable period and as such
Alternate Conversion Price may be further adjusted for any stock split, stock dividend, stock combination, reclassification or
other similar transaction occurring on or after such Trading Day).

 

2.2         Waivers

 

(a)          Effective
as of the Effective Date, the Investor hereby waives any reduction in: (i) the exercise price of its 2015 Warrants pursuant to
Section 2(a) thereof, (ii) the exercise price of its 2016 Warrants pursuant to Section 2(a) thereof and (iii) the conversion price
of its 2016 Notes pursuant to Section 7(a) thereof, in each case, solely as a result of any Voluntary Reduction pursuant to Section
2.1 hereof.

 

(b)          Effective
as of the Effective Date, the Investor hereby elects pursuant to Section 8(d) of the 2015 Notes to defer the Installment Amount
with respect to the Investor's 2015 Notes with respect to the Installment Date occurring thereunder on November 30, 2016 until
the Installment Date of December 30, 2016 (including, without limitation, any rights to receive pre-delivery of shares of Common
Stock with respect to such Installment Amount on or prior to December 1, 2016).

 

(c)          Effective
as of the Effective Date, the 2015 Notes are hereby amended to add a new Section 8(g) at the end of Section 8 of the 2015 Notes
that provides as follows:

 

"(g)        October
31, 2016 Installment Date. Notwithstanding Section 8(d) to the contrary, the portion of the Installment Amount due on the October
31, 2016 Installment Date equal to the product obtained by multiplying (x) the number of Pre-Installment Conversion Shares delivered
by the Company to the Holder with respect to such Installment Date and (y) the Company Conversion Price as in effect on such Installment
Date, shall not be allowed to be deferred by the Holder to a later Installment Date."

 

(d)          Effective
as of the Effective Date, the Investor waives any right pursuant to Section 8(e) of the 2015 Notes to deliver any Acceleration
Notice during the period commencing on the Effective Date and ending on December 1, 2016, inclusive, with respect to the Installment
Amount due on the November 30, 2016 Installment Date.

 

    	 	3	 

     

    

 

(e)          Effective
as of the Effective Date, the Investor hereby waives the notice provisions Section 4(n) of each SPA, solely with respect to the
transactions contemplated by this Agreement and each Other Agreement (the “Right of Participation Waiver”).

 

2.3          Release.
The Investor shall cause: (i) $[●]1 to be transferred, on or prior to the Effective Date, from the Investor’s
Holder Master Restricted Account with respect to the 2015 Notes to the operating account of the Company and (ii) any remaining
amounts in such Investor’s Holder Master Restricted Account with respect to the 2015 Notes shall be transferred, on or prior
to the later of (x) November 1, 2016 and (y) the Effective Date, to the operating account of the Company, in each case, pursuant
to written instructions provided by the Company at least one (1) Business Day prior to the applicable deadline; provided,
however, that the obligation of the Investor to release such cash to the Company pursuant to this Section 2.3 is subject
to the fulfillment, to the Investor's reasonable satisfaction, prior to the applicable Release Date, of each of the following
conditions:

 

(a)         No
Event of Default. On each Trading Day during the twenty (20) Trading Days immediately preceding the applicable Release Date,
no Event of Default or event that with the passage of time or giving of notice would constitute an Event of Default shall have
occurred (unless waived in writing by the Required Holders (as defined in the 2015 Notes)).

 

(b)         Minimum
Volume. Unless waived in writing by the Required Holders (as defined in the 2015 Notes), the daily dollar trading volume of
the Common Stock as reported by Bloomberg for each Trading Day during the twenty (20) consecutive Trading Days immediately preceding
the applicable Release Date shall be at least $100,000.

 

(c)          Listing.
On each Trading Day during the twenty (20) Trading Days immediately preceding the applicable Release Date, the Common Stock (I)
shall be designated for quotation or listed on an Eligible Market and (II) shall not have been suspended.

 

(d)          No
Material Non-Public Information. As of the applicable Release Date, the Investor shall not be in possession of any material,
nonpublic information received from the Company, any Subsidiary or its respective agents or Affiliates.

 

(e)          No
Public Information Failure. As of the applicable Release Date, the Company shall have no knowledge of any fact that would cause
any Exchange Shares or, upon exercise of any Right, any Right Shares (without regard to any restriction or limitation on exercise
of the Right), not to be eligible for sale pursuant to (i) Rule 144 without any volume limitation by the Investor (including, without
limitation, by virtue of an existing or expected Public Information Failure) or (ii) any applicable state securities laws.

 

 

1 Insert the lower of (A) product of (i) $3,500,000
and (ii) a fraction, (x) the numerator of which equals the Investor's remaining amount in its Holder Master Restricted Account
and (y) the denominator of which equals the sum of the remaining amounts in all Holder Master Restricted Accounts of the Investor
and the Other Investors and (B) the remaining balance in the Investor's Holder Master Restricted Account.

 

    	 	4	 

     

    

 

As used herein, "Release Date"
means the Effective Date and November 1, 2016, as applicable, on which the Investor is required, subject to the satisfaction (or
waiver in writing by the investor) of the foregoing conditions, to release cash from the Investor's Holder Master Restricted Account
to the Company pursuant to this Section 2.3.

 

2.4         Leak-Out
Amendment. As of the Effective Date the Leak-Out Agreement is hereby amended as follows:

 

(a)          The
percentage set forth in paragraph 3 of the Leak-Out Agreement, representing the Investor’s (together with its Buyer Trading
Affiliates) pro rata share of 35% (measured based upon the aggregate principal amount of 2015 Notes initially purchased by the
Investor and its Buyer Trading Affiliates), shall be amended and restated as such percentage as set forth on the signature page
of the Investor attached hereto, representing 40% of the Investor’s (together with its Buyer Trading Affiliates) pro rata
share of aggregate principal amount of the 2015 Notes as of the date hereof.

 

(b)          Notwithstanding
anything in the Leak-Out Agreement to the contrary, the Restricted Period (as defined in the Leak-Out Agreement) shall not include
the period commencing on and including October 17, 2016 and ending and including October 21, 2016.

 

3.          The
Closing(s). Subject to the conditions set forth below, the Exchange shall take place at the offices of Kelley Drye & Warren
LLP, 101 Park Avenue, New York, NY 10178, on the later to occur of (x) November 18, 2016 and (y) the Effective Date, or at such
other time and place as the Company and the Investor mutually agree (the “Closing” and the “Closing
Date”).

 

4.          Closing
Conditions.

 

4.1         Condition’s
to Investor’s Obligations. The obligation of the Investor to consummate the Exchange is subject to the fulfillment, to
the Investor’s reasonable satisfaction, prior to or at the Closing, of each of the following conditions:

 

(a)          Representations
and Warranties. The representations and warranties of the Company contained in this Agreement shall be true and correct in
all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect,
which are accurate in all respects) on the date hereof and on and as of the Closing Date as if made on and as of such date (except
for representations and warranties that speak as of a specific date, which are accurate in all material respects (except for those
representations and warranties that are qualified by materiality or Material Adverse Effect, which are accurate in all respects)
as of such specified date).

 

(b)          Issuance
of Securities. At the Closing, the Company shall issue the Exchange Shares and the Right on the books and records of the Company.

 

    	 	5	 

     

    

 

(c)        No
Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed
before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit or obtain substantial damages
in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement.

 

(d)        Proceedings
and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident
to such transactions shall be satisfactory in substance and form to the Investor, and the Investor shall have received all such
counterpart originals or certified or other copies of such documents as they may reasonably request.

 

(e)         No
Event of Default. On each Trading Day during the twenty (20) Trading Days immediately preceding the Closing Date, no Event
of Default or event that with the passage of time or giving of notice would constitute an Event of Default shall have occurred
(unless waived in writing by the Required Holders (as defined in the 2015 Notes)).

 

(f)         Minimum
Volume. Unless waived in writing by the Required Holders (as defined in the 2015 Notes), the quotient of (x) the sum of each
daily dollar trading volume of the Common Stock as reported by Bloomberg for each Trading Day during the twenty (20) consecutive
Trading Days immediately preceding the Closing Date, divided by (y) twenty (20) shall be at least $300,000.

 

(g)        Listing.
On each Trading Day during the twenty (20) Trading Days immediately preceding the Closing Date, the Common Stock (I) shall be designated
for quotation or listed on an Eligible Market and (II) shall not have been suspended.

 

(h)          No
Material Non-Public Information. As of the Closing Date, the Investor shall not be in possession of any material, nonpublic
information received from the Company, any Subsidiary or its respective agents or Affiliates.

 

(i)        No
Public Information Failure. As of the Closing Date, the Company shall have no knowledge of any fact that would cause any Exchange
Shares or, upon exercise of any Right, any Right Shares (without regard to any restriction or limitation on exercise of the Right),
not to be eligible for sale pursuant to (i) Rule 144 without any volume limitation by the Investor (including, without limitation,
by virtue of an existing or expected Public Information Failure) or (ii) any applicable state securities laws.

 

4.2         Condition’s
to the Company’s Obligations. The obligation of the Company to consummate the Exchange is subject to the fulfillment,
to the Company’s reasonable satisfaction, prior to or at the Closing in question, of each of the following conditions:

 

(a)          Representations
and Warranties. The representations and warranties of the Investor contained in this Agreement shall be true and correct in
all material respects (except for those representations and warranties that are qualified by materiality or material adverse effect,
which are accurate in all respects) on the date hereof and on and as of the Closing Date as if made on and as of such date (except
for representations and warranties that speak as of a specific date, which are accurate in all material respects (except for those
representations and warranties that are qualified by materiality or material adverse effect, which are accurate in all respects)
as of such specified date).

 

    	 	6	 

     

    

 

(b)          Waiver.
The Company shall have obtained the waiver of the Right of Participation Waiver of the Investor and all Other Investors.

 

(c)          No
Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed
before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit, or obtain substantial damages
in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement.

 

(d)          Proceedings
and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident
to such transactions shall be satisfactory in substance and form to the Company and the Company shall have received all such counterpart
originals or certified or other copies of such documents as the Company may reasonably request.

 

5.            Representations
and Warranties of the Company. The Company hereby represents and warrants to Investor that:

 

5.1           Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware. The Company is duly qualified to transact business and is in good standing in each jurisdiction
in which the failure to so qualify would have a Material Adverse Effect (as defined below) on its business or properties. As used
in this Agreement, “Material Adverse Effect” means any material adverse effect on the business, properties,
assets, liabilities, operations, results of operations, condition (financial or otherwise) or prospects of the Company and its
Subsidiaries, if any, individually or taken as a whole, or on the transactions contemplated hereby or on the Transaction Documents
(as defined below) or by the agreements and instruments to be entered into (or entered into) in connection herewith or therewith,
or on the authority or ability of the Company to perform its obligations under this Agreement or the Transaction Documents.

 

5.2           Authorization.
All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution
and delivery of this Agreement and the performance of all obligations of the Company hereunder and thereunder, and the authorization
(or reservation for issuance), the Exchange, and the issuance of the Exchange Shares, the Right and, upon exercise of the Right,
the Right Shares (collectively, the “Securities”) have been taken on or prior to the date hereof.

 

5.3           Valid
Issuance of the Securities. The Exchange Shares and Right Shares when issued and delivered in accordance with the terms of
this Agreement, for the consideration expressed herein, will be duly and validly issued, fully paid and non-assessable. The Right
when issued in accordance with the terms of this Agreement, for the consideration expressed herein, will be duly and validly issued.
The Exchange Shares and, upon exercise of the Right, the Right Shares are freely tradeable and shall not be required to bear any
1933 Act or other restrictive legend. The Company agrees to take all actions, including, without limitation, the issuance by its
legal counsel of any necessary legal opinions, necessary to issue unrestricted Exchange Shares and Right Shares, if any, that are
freely tradable on the principal Eligible Market on which the Common Stock then trades without restriction and not containing any
restrictive legend without the need for any action by the Investor.

 

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5.4           Offering.
The offer and issuance of the Securities as contemplated by this Agreement are exempt from the registration requirements of the
1933 Act and the qualification or registration requirements of state securities laws or other applicable blue sky laws. The Company
represents and warrants that neither it nor any Person acting on its behalf, has directly or indirectly paid or given any commission
or other remuneration for soliciting the transactions contemplated by this Agreement. Neither the Company nor any authorized agent
acting on its behalf will take any action hereafter that would cause the loss of such exemptions.

 

5.5           Compliance
With Laws. The Company has not violated any law or any governmental regulation or requirement which violation has had or would
reasonably be expected to have a Material Adverse Effect, and the Company has not received written notice of any such violation.

 

5.6           Consents;
Waivers. No consent, waiver, approval or authority of any nature, or other formal action, by any Person, not already obtained,
is required in connection with the execution and delivery of this Agreement by the Company or the consummation by the Company of
the transactions provided for herein and therein.

 

5.7           Acknowledgment
Regarding Investor’s Purchase of Securities. The Company acknowledges and agrees that the Investor is acting solely in
the capacity of arm’s length purchaser with respect to this Agreement and the other documents entered into in connection
herewith (collectively, the “Transaction Documents”) and the transactions contemplated hereby and thereby and
that the Investor is not (i) an officer or director of the Company, (ii) an “affiliate” of the Company (as defined
in Rule 144 promulgated under the 1933 Act), or (iii) to the knowledge of the Company, a “beneficial owner” of more
than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the 1934 Act). The Company further acknowledges
that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to
the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by the Investor or any of
its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby
is merely incidental to the Investor’s acceptance of the Exchange Shares and the Right, if any. The Company further represents
to the Investor that the Company’s decision to enter into the Transaction Documents has been based solely on the independent
evaluation by the Company and its representatives.

 

    	 	8	 

     

    

 

5.8          Absence
of Litigation. Except as set forth in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company,
threatened against or affecting the Company, the Common Stock, the Exchange Note or any of the Company’s officers or directors
in their capacities as such.

 

5.9           No
Group. The Company acknowledges that, to the Company’s knowledge, the Investor is acting independently in connection
with this Agreement and the transactions contemplated hereby, and is not acting as part of a “group” as such term is
defined under Section 13(d) of the 1933 Act and the rules and regulations promulgated thereunder.

 

5.10         Validity;
Enforcement; No Conflicts. This Agreement and each Transaction Document to which the Company is a party have been duly and
validly authorized, executed and delivered on behalf of the Company and shall constitute the legal, valid and binding obligations
of the Company enforceable against the Company in accordance with their respective terms, except as such enforceability may be
limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other
similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. The execution,
delivery and performance by the Company of this Agreement and each Transaction Document to which the Company is a party and the
consummation by the Company of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational
documents of the Company or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company is a party or by which it is bound, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including federal and state securities or “blue sky” laws) applicable to the
Company, except in the case of clause (ii) above, for such conflicts, defaults or rights which would not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect.

 

5.11         Disclosure.
Other than as set forth in the 8-K Filing (as defined below), the Company confirms that neither it nor any other Person acting
on its behalf has provided the Investor or its agents or counsel with any information that constitutes or could reasonably be expected
to constitute material, nonpublic information. The Company understands and confirms that the Investor will rely on the foregoing
representations in effecting transactions in the Exchange Securities.

 

5.12         Capitalization.
As of September 30, 2016, the Company has 2,520,215 shares of Common Stock issued and outstanding.

 

6.            Representations
and Warranties of the Investor. The Investor hereby represents, warrants and covenants that:

 

6.1           Authorization.
The Investor has full power and authority to enter into this Agreement, to perform its obligations hereunder and to consummate
the transactions contemplated hereby and has taken all action necessary to authorize the execution and delivery of this Agreement,
the performance of its obligations hereunder and the consummation of the transactions contemplated hereby.

 

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6.2           Accredited
Investor Status; Investment Experience. The Investor is an “accredited investor” as that term is defined in Rule
501(a) of Regulation D. The Investor can bear the economic risk of its investment in the Securities, and has such knowledge and
experience in financial and business matters that it is capable of evaluating the merits and risks of an investment in the Securities.

 

6.3           No
Governmental Review. The Investor understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment
in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

6.4           Validity;
Enforcement; No Conflicts. This Agreement and each Transaction Document to which the Investor is a party have been duly and
validly authorized, executed and delivered on behalf of the Investor and shall constitute the legal, valid and binding obligations
of the Investor enforceable against the Investor in accordance with their respective terms, except as such enforceability may be
limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other
similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. The execution,
delivery and performance by the Investor of this Agreement and each Transaction Document to which the Investor is a party and the
consummation by the Investor of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational
documents of the Investor or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Investor is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities or “blue sky” laws) applicable to the Investor, except in the case
of clause (ii) above, for such conflicts, defaults or rights which would not, individually or in the aggregate, reasonably be expected
to have a material adverse effect on the ability of the Investor to perform its obligations hereunder.

 

6.5           Ownership
of Original Note. The Investor owns and holds, beneficially and of record, the entire right, title, and interest in and to
the Exchange Note free and clear of all rights and Liens (other than pledges or security interests (x) arising by operation of
applicable securities laws and (y) that the Investor may have created in favor of a prime broker under and in accordance with its
prime brokerage agreement with such broker). The Investor has full power and authority to transfer and dispose of the Exchange
Note to the Company free and clear of any right or Lien. Other than the transactions contemplated by this Agreement, there is no
outstanding vote, plan, pending proposal, or other right of any Person to acquire all or any part of the Exchange Note or any shares
of Common Stock issuable upon conversion of the Exchange Note.

 

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7.            Additional
Covenants

 

7.1           Disclosure.
The Company shall, on or before 8:30 a.m., New York City time, on the first business day after the date of this Agreement, issue
a press release and/or Current Report on Form 8-K (collectively, the “8-K Filing”) disclosing all material terms
of the transactions contemplated hereby. From and after the issuance of the 8-K Filing, the Investor shall not be in possession
of any material, nonpublic information received from the Company or any of its Subsidiaries or any of their respective officers,
directors, employees, affiliates or agents, that is not disclosed in the 8-K Filing. The Company shall not, and shall cause its
officers, directors, employees, affiliates and agents, not to, provide the Investor with any material, nonpublic information regarding
the Company from and after the filing of the 8-K Filing without the express written consent of the Investor. To the extent that
the Company delivers any material, non-public information to the Investor without the Investor's express prior written consent,
the Company hereby covenants and agrees that the Investor shall not have any duty of confidentiality to the Company, any of its
Subsidiaries or any of their respective officers, directors, employees, affiliates or agent with respect to, or a duty to the to
the Company, any of its Subsidiaries or any of their respective officers, directors, employees, affiliates or agent or not to trade
on the basis of, such material, non-public information. The Company shall not disclose the name of the Investor in any filing,
announcement, release or otherwise, unless such disclosure is required by law or regulation. In addition, effective upon the filing
of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement,
whether written or oral, between the Company, any of its subsidiaries or any of their respective officers, directors, affiliates,
employees or agents, on the one hand, and the Investor or any of its affiliates, on the other hand, shall terminate and be of no
further force or effect. The Company understands and confirms that the Investor will rely on the foregoing representations in effecting
transactions in securities of the Company.

 

7.2           Intentionally
omitted.

 

7.3           Listing.
The Company shall promptly secure the listing or designation for quotation (as applicable) of all of the Exchange Shares and, if
applicable, Right Shares upon each Eligible Market upon which the Common Stock is then listed or designated for quotation (as applicable)
(subject to official notice of issuance) and shall maintain such listing of all the Exchange Shares and, if applicable, Right Shares
from time to time issuable under the terms of the Transaction Documents. The Company shall pay all fees and expenses in connection
with satisfying its obligations under this Section 7.3.

 

7.4           Holding
Period. For the purposes of Rule 144 of the 1933 Act, the Company acknowledges that the holding period of the Exchange Note
may be tacked onto the holding period of the Exchange Shares and the Right (and upon exercise of the Right, the Right Shares) and
that the holding period of the Right may be tacked onto the holding period of the Right Shares, and the Company agrees not to take
a position contrary to this Section 5.4.

 

    	 	11	 

     

    

 

7.5           Blue
Sky. The Company shall make all filings and reports relating to the Exchange required under applicable securities or “Blue
Sky” laws of the states of the United States following the date hereof, if any.

 

7.6           Fees
and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and
all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this
Agreement.

 

8.            Right

 

8.1           Right
of Issuance of Shares. Subject to the terms hereof, including, without limitation, Section 8.7 hereof, the exercise of the
Right may be made by the Investor (or any transferee of such Right by the Investor) (the “Holder”), in whole
or in part, at any time or times on or after the date hereof by delivery to the Company (or such other office or agency of the
Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of
the Company) of a duly executed facsimile or PDF copy (delivered via e-mail) of the Notice of Issuance Form annexed hereto as Exhibit
A. Partial exercises of the Right resulting in issuances of a portion of the total number of Right Shares available hereunder
shall have the effect of lowering the outstanding number of Right Shares purchasable hereunder in an amount equal to the applicable
number of Right Shares issued. The Holder and the Company shall maintain records showing the number of Right Shares issued and
the date of such issuances. The Company shall deliver any objection to any Notice of Issuance Form within two (2) Business Days
of receipt of such notice. The Holder acknowledges and agrees that, by reason of the provisions of this paragraph, following
each exercise of the Rights issued hereunder and the issuance of a portion of the Right Shares pursuant thereto, the number of
Right Shares available for issuance pursuant to the Rights issued hereunder at any given time may be less than the initial Right
Share Amount.

 

8.2           Delivery
of Right Shares. Right Shares issued hereunder shall be transmitted by the Transfer Agent to the Holder by crediting the account
of the Holder’s prime broker with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”),
on or prior to the date that is three (3) Trading Days after the delivery to the Company of the Notice of Issuance (such date,
the “Share Delivery Date”). The Right Shares shall be deemed to have been issued, and Holder or any other person
so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the
date the Right has been exercised.

 

8.3           Charges,
Taxes and Expenses. Issuance of the Right Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such Right Shares, all of which taxes and expenses shall be paid by the
Company. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Issuance.

 

    	 	12	 

     

    

 

8.4           Authorized
Shares. The Company covenants that, during the period the Right is outstanding, it will reserve from its authorized and unissued
Common Stock a sufficient number of shares to provide for the issuance of the Right Shares upon the exercise of the Right. The
Company further covenants that its issuance of the Right shall constitute full authority to its officers who are charged with the
duty of executing stock certificates to execute and issue the necessary certificates for the Right Shares upon the due exercise
of the Right. The Company will take all such reasonable action as may be necessary to assure that such Right Shares may be issued
as provided herein without violation of any applicable law or regulation, or of any requirements of the Eligible Market upon which
the Common Stock may be listed. The Company covenants that all Right Shares which may be issued upon the exercise of the Right
represented by this Agreement will, upon exercise of the Right, be duly authorized, validly issued, fully paid and nonassessable
and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously with such issue, which shall be borne by the Company pursuant
to Section 8.3).

 

8.5           Impairment.
Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms
of this Agreement, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate to protect the rights of the Holder as set forth in this Agreement against impairment.
Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Right Shares above the
amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be
necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Right Shares upon
the exercise of the Right and (iii) use reasonable best efforts to obtain all such authorizations, exemptions or consents from
any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under
this Agreement.

 

8.6           Authorizations.
Before taking any action which would result in an adjustment in the number of Right Shares for which the Right provides for, the
Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof, including, without, limitation any consent required by the applicable Eligible Market.

 

    	 	13	 

     

    

 

8.7           Beneficial
Ownership Limitation. Notwithstanding anything to the contrary contained herein, the Company shall not effect the exercise
of any portion of the Right, and the Holder shall not have the right to exercise any portion of the Right, pursuant to the terms
and conditions of the Right and any such exercise shall be null and void and treated as if never made, to the extent that after
giving effect to such exercise, the Holder together with the other Attribution Parties collectively would beneficially own in
excess of [    ]2% (the “Maximum Percentage”) of the number of shares of Common Stock outstanding immediately
after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially
owned by the Holder and the other Attribution Parties shall include the shares of Common Stock held by the Holder and all other
Attribution Parties plus the number of shares of Common Stock issuable upon exercise of the Right with respect to which the determination
of such sentence is being made, but shall exclude the shares of Common Stock which would be issuable upon (A) exercise of the
remaining, unexercised portion of the Right beneficially owned by the Holder or any of the other Attribution Parties and (B) exercise
or conversion of the unexercised or unconverted portion of any other securities of the Company (including, without limitation,
any convertible notes or convertible preferred stock or Rights) beneficially owned by the Holder or any other Attribution Party
subject to a limitation on conversion or exercise analogous to the limitation contained in this Section 8.7. For purposes of this
Section 8.7, beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act. For purposes of the Right,
in determining the number of outstanding shares of Common Stock the Holder may acquire upon the exercise of the Right without
exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x)
the Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public
filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other written notice
by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding (the “Reported Outstanding
Share Number”). If the Company receives an Notice of Issuance from the Holder at a time when the actual number of outstanding
shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder in writing
of the number of shares of Common Stock then outstanding and, to the extent that such Notice of Issuance would otherwise cause
the Holder's beneficial ownership, as determined pursuant to this Section 8.7, to exceed the Maximum Percentage, the Holder must
notify the Company of a reduced number of Right Shares to be purchased pursuant to such Notice of Issuance (the number of shares
by which such purchase is reduced, the “Reduction Shares”) and (ii) as soon as reasonably practicable, the
Company shall return to the Holder any exercise price paid by the Holder for the Reduction Shares. For any reason at any time,
upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or
by electronic mail to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
the Right, by the Holder and any other Attribution Party since the date as of which the Reported Outstanding Share Number was
reported. In the event that the issuance of shares of Common Stock to the Holder upon exercise of the Right results in the Holder
and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the
number of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so issued
by which the Holder's and the other Attribution Parties' aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess
Shares”) shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to
vote or to transfer the Excess Shares. As soon as reasonably practicable after the issuance of the Excess Shares has been deemed
null and void, the Company shall return to the Holder the exercise price paid by the Holder for the Excess Shares. Upon delivery
of a written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other
percentage not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage will
not be effective until the sixty-first (61st) day after such notice is delivered to the Company and (ii) any such increase or
decrease will apply only to the Holder and the other Attribution Parties and not to any other holder of any right that is not
an Attribution Party of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of the
Right in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including
for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. The provisions of this paragraph shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section 8.7 to the extent necessary to correct this paragraph
or any portion of this paragraph which may be defective or inconsistent with the intended beneficial ownership limitation contained
in this Section 8.7 or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation
contained in this paragraph may not be waived and shall apply to a successor holder of the Right.

 

 

2 Insert 4.99% or 9.99% as elected by the Investor
upon signing of this Agreement.

 

    	 	14	 

     

    

 

8.8           Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of the
Right, pursuant to the terms hereof.

 

8.9           Stock
Dividends and Splits. If the Company, at any time while the Right exists: (i) pays a stock dividend or otherwise makes a distribution
or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common
Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse
stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of
the Common Stock any shares of capital stock of the Company, then in each case the number of Right Shares issuable upon exercise
of the Right shall be proportionately adjusted. Any adjustment made pursuant to this Section 8.9 shall become effective immediately
upon the record date for the determination of stockholders entitled to receive such dividend or distribution (provided that if
the declaration of such dividend or distribution is rescinded or otherwise cancelled, then such adjustment shall be reversed upon
notice to the Holder of the termination of such proposed declaration or distribution as to any unexercised portion of the Right
at the time of such rescission or cancellation) and shall become effective immediately after the effective date in the case of
a subdivision, combination or re-classification.

 

    	 	15	 

     

    

 

8.10         Compensation
for Buy-In on Failure to Timely Deliver Certificates. In addition to any other rights available to the Holder, if the Company
fails or fails to cause the Transfer Agent to credit the Holder's balance account with DTC for the Right Shares pursuant to an
exercise on or before the applicable Share Delivery Date (an “Exercise Failure”), and if after such date the
Holder purchases (in an open market transaction or otherwise) Common Stock relating to the applicable Exercise Failure (a “Buy-In”),
then the Company shall, within three (3) Trading Days after the Holder's request and in the Holder's discretion, either (x) pay
cash to the Holder in an amount equal to the Holder's total purchase price (including brokerage commissions and other out-of-pocket
expenses, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company's
obligation to credit the Holder's balance account with DTC for the shares of Common Stock to which the Holder is entitled upon
the Holder's exercise of the applicable Conversion Amount shall terminate, (y) promptly honor its obligation to credit the Holder's
balance account with DTC, as required pursuant to the terms of Section 8.2, for such shares of Common Stock and pay cash to the
Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock,
times (B) the Buy-In Price (including brokerage commissions and other out-of-pocket expenses, if any) or (z) reinstate the portion
of the Right and equivalent number of Right Shares for which such exercise was not honored (in which case such exercise shall be
deemed rescinded, and the Holder shall promptly return to the Company the Right Shares issued to such Holder pursuant to the rescinded
Notice of Issuance). The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect
of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s
right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares
of Common Stock upon exercise of the Right as required pursuant to the terms hereof.

 

8.11         Subsequent
Rights Offerings. If at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock,
warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase
Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate
Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon
complete exercise of the Right (without regard to any limitations on exercise hereof, including without limitation, the Maximum
Percentage) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or,
if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant,
issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such
Purchase Right would result in the Holder exceeding the Maximum Percentage, then the Holder shall not be entitled to participate
in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right
to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its
right thereto would not result in the Holder exceeding the Maximum Percentage, at which time or times the Holder shall be granted
such right (and any Purchase Right granted, issued or sold on such initial Purchase Right or on any subsequent Purchase Right to
be held similarly in abeyance) to the same extent as if there had been no such limitation).

 

    	 	16	 

     

    

 

8.12         Distribution
of Assets. If the Company shall declare or make any dividend or other distributions of its assets (or rights to acquire its
assets) to any or all holders of shares of Common Stock, by way of return of capital or otherwise (including without limitation,
any distribution of cash, stock or other securities, property, options, evidence of indebtedness or any other by way of a dividend,
spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (the “Distributions”),
at any time after the issuance of the Right , then, in each such case, the Holder shall be entitled to such Distributions as if
the Holder had held the number of shares of Common Stock acquirable upon complete exercise in full of this Right (without taking
into account any limitations or restrictions on the exercisability of this Right) immediately prior to the date on which a record
is taken for such Distribution or, if no such record is taken, the date as of which the record holders of Common Stock are to be
determined for such Distributions (provided, however, that to the extent that the Holder's right to participate in
any such Distribution would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder
shall not be entitled to participate in such Distribution to such extent (and shall not be entitled to beneficial ownership of
such shares of Common Stock as a result of such Distribution (and beneficial ownership) to such extent) and the portion of such
Distribution shall be held in abeyance for the benefit of the Holder until such time or times as its right thereto would not result
in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted
such Distribution (and any Distributions declared or made on such initial Distribution or on any subsequent Distribution to be
held similarly in abeyance) to the same extent as if there had been no such limitation).

 

    	 	17	 

     

    

 

8.13         Fundamental
Transaction. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes
in writing all of the obligations of the Company under this Agreement and the other Transaction Documents in accordance with the
provisions of this Section 8.13 pursuant to written agreements in form and substance satisfactory to the Required Holders (as defined
in the 2015 Notes) and approved by the Required Holders (as defined in the 2015 Notes) prior to such Fundamental Transaction, including
agreements, if so requested by the Holder, to deliver to each Holder a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Right, and exercisable for a corresponding number of shares of capital
stock equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Right (without regard to any limitations
on the exercise of this Right) prior to such Fundamental Transaction, and satisfactory to the Required Holders (as defined in the
2015 Notes). Upon the occurrence or consummation of any Fundamental Transaction in which the Company is not the Successor Entity
(or in which the Common Stock ceases to be registered under the 1934 Act), and it shall be a required condition to the occurrence
or consummation of any Fundamental Transaction that, the Company and the Successor Entity or Successor Entities, jointly and severally,
shall succeed to, and the Company shall cause any Successor Entity or Successor Entities to jointly and severally succeed to, and
be added to the term “Company” under this Right (so that from and after the date of such Fundamental Transaction, each
and every provision of this Right referring to the “Company” shall refer instead to each of the Company and the Successor
Entity or Successor Entities, jointly and severally), and the Company and the Successor Entity or Successor Entities, jointly and
severally, may exercise every right and power of the Company prior thereto and shall assume all of the obligations of the Company
prior thereto under this Right with the same effect as if the Company and such Successor Entity or Successor Entities, jointly
and severally, had been named as the Company in this Right, and, solely at the request of the Holder, if the Successor Entity and/or
Successor Entities is a publicly traded corporation whose common capital stock is quoted on or listed for trading on an Eligible
Market, shall deliver (in addition to and without limiting any right under this Right) to the Holder in exchange for this Right
a security of the Successor Entity and/or Successor Entities evidenced by a written instrument substantially similar in form and
substance to the Right set forth in this Agreement and exercisable for a corresponding number of shares of capital stock of the
Successor Entity and/or Successor Entities (the “Successor Capital Stock”) equivalent to the shares of Common
Stock acquirable and receivable upon exercise of this Right (without regard to any limitations on the exercise of this Right) prior
to such Fundamental Transaction (such corresponding number of shares of Successor Capital Stock to be delivered to the Holder shall
be equal to the greater of (A) the quotient of (i) the aggregate dollar value of all consideration (including cash consideration
and any consideration other than cash (“Non-Cash Consideration”), in such Fundamental Transaction, as such values
are set forth in any definitive agreement for the Fundamental Transaction that has been executed at the time of the first public
announcement of the Fundamental Transaction or, if no such value is determinable from such definitive agreement, as determined
in accordance with Section 26 of the 2015 Notes with the term “Non-Cash Consideration” being substituted for the term
“Conversion Price”) that the Holder would have been entitled to receive upon the happening of such Fundamental Transaction
or the record, eligibility or other determination date for the event resulting in such Fundamental Transaction, had this Right
been exercised immediately prior to such Fundamental Transaction or the record, eligibility or other determination date for the
event resulting in such Fundamental Transaction (without regard to any limitations on the exercise of this Right) (the “Aggregate
Consideration”) divided by (ii) the per share Closing Sale Price of such Successor Capital Stock on the Trading Day immediately
prior to the consummation or occurrence of the Fundamental Transaction and (B) the product of (i) the Aggregate Consideration and
(ii) the highest exchange ratio pursuant to which any stockholder of the Company may exchange Common Stock for Successor Capital
Stock) (provided, however, to the extent that the Holder's right to receive any such shares of publicly traded common
stock (or their equivalent) of the Successor Entity would result in the Holder and its other Attribution Parties exceeding the
Maximum Percentage, if applicable, then the Holder shall not be entitled to receive such shares to such extent (and shall not be
entitled to beneficial ownership of such shares of publicly traded common stock (or their equivalent) of the Successor Entity as
a result of such consideration to such extent) and the portion of such shares shall be held in abeyance for the Holder until such
time or times, as its right thereto would not result in the Holder and its other Attribution Parties exceeding the Maximum Percentage,
at which time or times the Holder shall be delivered such shares to the extent as if there had been no such limitation), and such
security shall be satisfactory to the Holder, and with an identical exercise price to the Exercise Price hereunder (such adjustments
to the number of shares of capital stock and such exercise price being for the purpose of protecting after the consummation or
occurrence of such Fundamental Transaction the economic value of this Right that was in effect immediately prior to the consummation
or occurrence of such Fundamental Transaction, as elected by the Holder solely at its option). Upon occurrence or consummation
of the Fundamental Transaction, and it shall be a required condition to the occurrence or consummation of such Fundamental Transaction
that, the Company and the Successor Entity or Successor Entities shall deliver to the Holder confirmation that there shall be issued
upon exercise of this Right at any time after the occurrence or consummation of the Fundamental Transaction, as elected by the
Holder solely at its option, shares of Common Stock, Successor Capital Stock or, in lieu of the shares of Common Stock or Successor
Capital Stock (or other securities, cash, assets or other property purchasable upon the exercise of this Right prior to such Fundamental
Transaction), such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase
or subscription rights), which for purposes of clarification may continue to be shares of Common Stock, if any, that the Holder
would have been entitled to receive upon the happening of such Fundamental Transaction or the record, eligibility or other determination
date for the event resulting in such Fundamental Transaction, had this Right been exercised immediately prior to such Fundamental
Transaction or the record, eligibility or other determination date for the event resulting in such Fundamental Transaction (without
regard to any limitations on the exercise of this Right), as adjusted in accordance with the provisions of this Right. In addition
to and not in substitution for any other rights hereunder, prior to the occurrence or consummation of any Fundamental Transaction
pursuant to which holders of shares of Common Stock are entitled to receive securities, cash, assets or other property with respect
to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision
to ensure that, and any applicable Successor Entity or Successor Entities shall ensure that, and it shall be a required condition
to the occurrence or consummation of such Corporate Event that, the Holder will thereafter have the right to receive upon exercise
of this Right at any time after the occurrence or consummation of the Corporate Event, shares of Common Stock or Successor Capital
Stock or, if so elected by the Holder, in lieu of the shares of Common Stock (or other securities, cash, assets or other property)
purchasable upon the exercise of this Right prior to such Corporate Event (but not in lieu of such items still issuable under Sections
8.11 and 8.12, which shall continue to be receivable on the Common Stock or on the such shares of stock, securities, cash, assets
or any other property otherwise receivable with respect to or in exchange for shares of Common Stock prior to the date of consummation
of such Corporate Event), such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or
other purchase or subscription rights and any shares of Common Stock) which the Holder would have been entitled to receive upon
the occurrence or consummation of such Corporate Event or the record, eligibility or other determination date for the event resulting
in such Corporate Event, had this Right been exercised immediately prior to such Corporate Event or the record, eligibility or
other determination date for the event resulting in such Corporate Event (without regard to any limitations on exercise of this
Right). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Holder.
The provisions of this Section 8.13 shall apply similarly and equally to successive Fundamental Transactions and Corporate Events.

 

    	 	18	 

     

    

 

8.14         Notice
to Allow Exercise of Right. If (A) the Company shall declare a Distribution (or any other distribution in whatever form) on
the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C)
the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any
shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in
connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale
or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock
is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder
at least 10 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date
on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record
is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the
Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice
or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified
in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding
the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current
Report on Form 8-K. The Holder shall remain entitled to exercise the Right during the period commencing on the date of such notice
to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

8.15         No
Rights as Stockholder Until Exercise. Except as otherwise set forth herein, this Agreement does not entitle the Holder to any
voting rights, dividends or other rights as a stockholder of the Company with respect to the Right prior to the exercise thereof.

 

9.           Miscellaneous

 

9.1           Successors
and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the parties hereto and the respective successors and assigns of the parties. Nothing in this Agreement, express
or implied, is intended to confer upon any party, other than the parties hereto or their respective successors and assigns, any
rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

    	 	19	 

     

    

 

9.2           Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state or federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit,
action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH
OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

9.3           Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

 

9.4           Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon delivery, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party) or by electronic mail; or (iii) one Business Day after deposit with an overnight courier service, in each case properly
addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses for such communications shall
be:

 

If to the Company:

 

Great Basin Scientific, Inc.

2441 South 3850 West

Salt Lake City, UT 84120

Telephone: (801) 990-1055 ext. 112

Facsimile: (801) 990-1051

Attention: Jeff Rona

 

With a copy to:

 

Dorsey & Whitney LLP

1400 Wewatta Street, Suite 400

Denver, CO 80202

Telephone: (303) 352-1133

Facsimile: (303) 629-3450

Attention: Jason K. Brenkert, Esq.

Email: brenkert.jason@dorsey.com

 

    	 	20	 

     

    

 

and

 

Kelley Drye & Warren LLP

101 Park Avenue

New York, NY 10178

Telephone: 212-808-7540

Facsimile: (212) 808-7897

Attention: Michael Adelstein, Esq.

Email: madelstein@kelleydrye.com

 

If to the Investor, to
its address, facsimile number and e-mail address set forth on its signature page hereto,

 

or to such other address, facsimile number
and/or e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice given
to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient
of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile
machine or e-mail containing the time, date, recipient facsimile number and an image of the first page of such transmission or
(C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt
from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

 

9.5           Finder’s
Fees. Each party represents that it neither is nor will be obligated for any finders’ fee or commission in connection
with this transaction (excluding any fees required to be paid by the Company to Roth Capital Partners, LLC in connection with the
original Transaction Documents). The Company shall indemnify and hold harmless the Investor from any liability for any commission
or compensation in the nature of a finders’ fee (and the costs and expenses of defending against such liability or asserted
liability) for which the Company or any of its officers, employees or representatives is responsible.

 

9.6           Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company
and the Investor.

 

    	 	21	 

     

    

 

9.7           Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms so long as this Agreement as so modified continues to express, without material change, the original
intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s)
in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical
realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations
to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close
as possible to that of the prohibited, invalid or unenforceable provision(s).

 

9.8           Entire
Agreement. This Agreement together with that certain leak-out agreement, by and between the Company and the Investor, dated
September 19, 2016 (the “Leak-Out Agreement”), represents the entire agreement and understandings between the
parties concerning the Exchange and the other matters described herein and therein and supersedes and replaces any and all prior
agreements and understandings solely with respect to the subject matter hereof and thereof. Notwithstanding anything herein to
the contrary, nothing herein shall amend, modify or waive any term or condition of the Leak-Out Agreement or of any of the other
Transaction Documents (as defined in each of the SPAs) (other than the 2015 Notes, which shall be cancelled following the Exchange
pursuant to Section 1.1).

 

9.9           Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

9.10         Interpretation.
Unless the context of this Agreement clearly requires otherwise, (a) references to the plural include the singular, the singular
the plural, the part the whole, (b) references to any gender include all genders, (c) “including” has the inclusive
meaning frequently identified with the phrase “but not limited to” and (d) references to “hereunder” or
“herein” relate to this Agreement.

 

9.11         No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

9.12         Survival.
The representations, warranties and covenants of the Company and the Investor contained herein shall survive the Closing and delivery
of the Securities.

 

9.13         Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

9.14         No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party. 

 

    	 	22	 

     

    

 

9.15         Independent
Nature of Investor's Obligations and Rights. The obligations of the Investor under this Agreement are several and not joint
with the obligations of any Other Investor, and the Investor shall not be responsible in any way for the performance of the obligations
of any Other Investor under any Other Agreement. Nothing contained herein or in any Other Agreement, and no action taken by the
Investor pursuant hereto, shall be deemed to constitute the Investor and Other Investors as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the Investor and Other Investors are in any way acting in concert
or as a group with respect to such obligations or the transactions contemplated by this Agreement or any Other Agreement and the
Company acknowledges that, to the best of its knowledge, the Investor and the Other Investors are not acting in concert or as a
group with respect to such obligations or the transactions contemplated by this Agreement or any Other Agreement. The Company and
the Investor confirm that the Investor has independently participated in the negotiation of the transactions contemplated hereby
with the advice of its own counsel and advisors. The Investor shall be entitled to independently protect and enforce its rights,
including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any Other Investor to
be joined as an additional party in any proceeding for such purpose.

 

9.16         Equal
Treatment Acknowledgement; Most Favored Nations. The parties hereto herby acknowledge and agree that, in accordance with Section
9(e) of each SPA, the Company is obligated to present the terms of this offering to each Other Investor; provided that each Other
Agreement shall be negotiated separately with each Other Investor and shall not in any way be construed as the Investor or any
Other Investor acting in concert or as a group with respect to the purchase, disposition or voting of securities of the Company
or otherwise. The Company hereby represents and warrants as of the date hereof and covenants and agrees that none of the terms
offered to any Person with respect to the Exchange, including, without limitation with respect to any consent, release, amendment,
settlement, or waiver relating to the Exchange (each an “Exchange Document”), is or will be more favorable to
such Person than those of the Investor and this Agreement. If, and whenever on or after the date hereof, the Company enters into
an Exchange Document, then (i) the Company shall provide notice thereof to the Investor immediately following the occurrence thereof
and (ii) the terms and conditions of this Agreement shall be, without any further action by the Investor or the Company, automatically
amended and modified in an economically and legally equivalent manner such that the Investor shall receive the benefit of the more
favorable terms and/or conditions (as the case may be) set forth in such Exchange Document, provided that upon written notice to
the Company at any time the Investor may elect not to accept the benefit of any such amended or modified term or condition, in
which event the term or condition contained in this Agreement shall apply to the Investor as it was in effect immediately prior
to such amendment or modification as if such amendment or modification never occurred with respect to the Investor. The provisions
of this Section 9.16 shall apply similarly and equally to each Exchange Document.

 

[SIGNATURES ON THE FOLLOWING
PAGE]

 

    	 	23	 

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be duly executed and delivered as of the date provided above.

 

	 	THE COMPANY
	 	 
	 	GREAT BASIN SCIENTIFIC, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be duly executed and delivered as of the date provided above.

 

	 	INVESTOR:
	 	 
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	Address for Notices:
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	Fax#: ________________
	 	 
	 	SSN#: ________________
	 	 
	 	Amended and Restated 
	 	Leak-Out Percentage:____%

 

     

     

    

 

EXHIBIT A

 

NOTICE OF ISSUANCE

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS

RIGHT TO RECEIVE COMMON STOCK

 

GREAT
BASIN SCIENTIFIC, inc. 

 

The undersigned holder
hereby exercises the right (“right”), in whole or in part, established by that certain Exchange Agreement, dated as
of ____, 2016, by and between the Company and __________________ (the “Exchange Agreement”) and elects to receive
_________________ shares of Common Stock (“Right Shares”) of Great Basin Scientific, Inc., a
Delaware corporation (the “Company”) in accordance herewith. Capitalized terms used herein and not otherwise
defined shall have the respective meanings set forth in the Right.

 

1. Delivery of Right
Shares. The Company shall deliver to the holder __________ Right Shares in accordance with the terms of the Right.

 

2. Accredited Investor.
The undersigned represents it is an “accredited investor” as defined in
Regulation D promulgated under the Securities Act of 1933, as amended and the representations made by the Investor in the Exchange
Agreement in respect of the purchase of the Right are true and correct as of the date hereof in respect to the undersigned (whether
or not the Investor) and the exercise of the Right.

 

3. Maximum Percentage
Representation. Notwithstanding anything to the contrary contained herein, this Notice of Issuance shall constitute a representation
by the Holder of the Right submitting this Notice of Issuance that after giving effect to the exercise provided for in this Notice
of Issuance, such Holder (together with its Affiliates) will not have beneficial ownership (together with the beneficial ownership
of such Person's Affiliates) of a number of shares of Common Stock which exceeds the Maximum Percentage of the total outstanding
shares of Common Stock of the Company as determined based on the Reported Outstanding Share Number and otherwise pursuant to the
provisions of Section 8.6 of the Exchange Agreement.

 

Please issue the Common Stock into which
the Right is being exercised to Holder, or for its benefit, as follows:

 

		 ̈	Check here if requesting delivery as a
certificate to the following name and to the following address

 

	Issue to:	 
	 	 
	 	 
	 	 
	 	 

 

		 ̈	Check here if requesting delivery by Deposit/Withdrawal
at Custodian as follows:

 

	DTC Participant:	 
	 	 
	DTC Number:	 
	 	 
	Account Number:	 

 

     

     

    

 

	Date: _______________ __, ______	 
	 	 
	 	 
	Name of Registered Holder	 
	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Notice of Issuance and hereby directs American Stock Transfer & Trust Company to issue the above indicated
number of shares of Common Stock in accordance with the Transfer Agent Instructions dated ______ [__], 2016 from the Company and
acknowledged and agreed to by American Stock Transfer & Trust Company.

 

	 	GREAT BASIN SCIENTIFIC, INC.
	 	 
	 	By:	 	 
	 	Name:
	 	Title:Exhibit 10.1

 

  

CHESTERFIELD SITE SHARING AND SERVICES AGREEMENT

BY AND BETWEEN

ADVANSIX RESINS & CHEMICALS LLC,

 A DELAWARE LIMITED LIABILITY COMPANY

LICENSOR

AND

HONEYWELL INTERNATIONAL INC.,

 A DELAWARE CORPORATION,

LICENSEE

DATED OCTOBER 1, 2016

 

 

 

TABLE OF CONTENTS

Page

 

	
Article 1.

	
Parties

	
1

	 	 	 
	
Article 2.

	
Premises, Parking and Common Areas

	
1

	 	 	 
	
Article 3.

	
Term

	
1

	 	 	 
	
Article 4.

	
Capital Improvements

	
2

	 	 	 
	
Article 5.

	
Base Annual Fee and Operating Expenses

	
2

	 	 	 
	
Article 6.

	
Use, Compliance with Legal Requirements, Condition of Premises

	
4

	 	 	 
	
Article 7.

	
Assignment

	
5

	 	 	 
	
Article 8.

	
Licensee’s Responsibility

	
6

	 	 	 
	
Article 9.

	
Licensor’s Repair and Maintenance Responsibilities

	
6

	 	 	 
	
Article 10.

	
Licensee’s Insurance, Licensor’s Insurance, Mutual Release/Waiver of Subrogation, and Indemnity

	
6

	 	 	 
	
Article 11.

	
Default/Remedies

	
9

	 	 	 
	
Article 12.

	
Utilities

	
10

	 	 	 
	
Article 13.

	
Real Property Taxes

	
11

	 	 	 
	
Article 14.

	
Damage or Destruction

	
11

	 	 	 
	
Article 15.

	
Condemnation

	
12

	 	 	 
	
Article 16.

	
Notices

	
12

	 	 	 
	
Article 17.

	
Authority

	
13

	 	 	 
	
Article 18.

	
Alterations and Trade Fixtures

	
13

	 	 	 
	
Article 19.

	
Mechanic’s Liens

	
13

	 	 	 
	
Article 20.

	
Security

	
13

	 	 	 
	
Article 21.

	
Surrender of Premises

	
14

	 	 	 
	
Article 22.

	
Holding Over

	
15

	 	 	 
	
Article 23.

	
Subordination

	
15

	 	 	 
	
Article 24.

	
Estoppel Certificates

	
15

	 	 	 
	
Article 25.

	
Signs

	
15

	 	 	 
	
Article 26.

	
Licensor’s Procedures

	
15

	 	 	 
	
Article 27.

	
HSE Matters

	
16

	 	 	 
	
Article 28.

	
General Conditions

	
18

 

 

i

Exhibits

 

	
EXHIBIT A1  (Interim Premises)

	
A1-1

	 	 
	
EXHIBIT A2  (Final Premises)

	
A2-1

	 	 
	
EXHIBIT B  (Base Annual Fee)

	
B-1

	 	 
	
EXHIBIT C  (Operating Expenses and Licensee’s Proportionate Share)

	
C-1

	 	 
	
EXHIBIT D  (Site Points of Contact)

	
D-1

	 	 
	
EXHIBIT E  [Intentionally Omitted]

	
E-1

	 	 
	
EXHIBIT F  (Capital Improvements)

	
F-1

	 	 
	
EXHIBIT G  (Licensee and Licensor’s Responsibilities)

	
G-1

  

ii

CHESTERFIELD SITE SHARING AND SERVICES AGREEMENT

Article 1.     Parties.  This Chesterfield Site Sharing and Services Agreement (this “Agreement”) is made and entered into this 1st day of October, 2016 (“Date of this Agreement”), by and between AdvanSix Resins & Chemicals LLC, a Delaware limited liability company (“Licensor”) and Honeywell International Inc., a Delaware corporation (“Licensee”).

Article 2.     Premises, Parking and Common Areas.

(a)     Premises.  Prior to the completion of the Capital Improvements (as defined below), Licensor hereby grants a license to Licensee for reasonable use and access to the premises described upon the attached Exhibit A1 (“Interim Premises”), including a non-exclusive right to use and access the Common Areas (as hereinafter defined) designated on Exhibit A1 in Licensor’s facility located at Bermuda Hundred Road, Chesterfield, Virginia.  After completion of the Capital Improvements, Licensor hereby grants a license to Licensee for reasonable use and access to the premises described upon the attached Exhibit A2 (“Final Premises”), including a non-exclusive right to use and access the Common Areas designated on Exhibit A2.  The term “Premises” shall mean either the Interim Premises or the Final Premises as the context requires depending on whether the use of such term refers to period prior to completion of the Capital Improvements or after completion of the Capital Improvements.  The Premises, Common Areas (as hereinafter defined), other facilities located at Bermuda Hundred Road, Chesterfield, Virginia, and the land upon which they are located are hereinafter sometimes collectively referred to as the “Property”.  This Agreement does not and shall not be deemed to constitute a lease or a conveyance of the Premises by Licensor to Licensee or to confer upon Licensee any right, title, estate or interest in the Premises or any part thereof, other than the express rights conferred hereby.  This Agreement grants to Licensee a personal privilege to use and occupy the Premises for the Term on the terms and conditions set forth herein.

(b)     Parking.  Licensee shall be entitled to park in the unassigned and unreserved parking spaces, on a first come, first served basis, on those portions of the Common Areas designated for parking as shown on Exhibit A1 and Exhibit A2.

(c)     Common Areas.  The term “Common Areas” is defined as those areas and facilities designated by the Licensor as Common Areas on Exhibit A1 and Exhibit A2 and such other areas as Licensor may designate as Common Areas from time to time prior to the completion of the Capital Improvements for the general non-exclusive use of Licensor, Licensee and of any other occupants of the Property and their respective employees, suppliers, shippers, customers and invitees.  To the extent designated as a “Common Area on Exhibit A1 and Exhibit A2, the Common Areas shall include, without limitation, the parking areas, loading and unloading areas, conference rooms, break rooms, trash areas, roadways, sidewalks, walkways, parkways, landscaped areas, washrooms, restrooms, and elevators, corridors, and passageways.  During the period prior to completion of the Capital Improvements, Licensor gives to Licensee and Licensee’s employees, suppliers, shippers, customers and invitees the non-exclusive right to use the Common Areas, with others who are entitled to use the Common Areas.

Article 3.     Term.  This Agreement will be in force and effect for an initial term beginning as of the date of the Agreement and ending on December 31, 2018 (the “Initial Term”).  On December 31, 2018, the Agreement will be renewed automatically for successive additional periods of two (2) years (each such two-year period, a “Renewal Period” and together with the Initial Term, the “Term”) unless (a) either Party notifies the other Party in writing of a plan to substantially shut down its operations to the extent that continuation of the Agreement is no longer commercially feasible in which case the Agreement will survive for an additional two (2) year period during which time the Utilities will continue to be provided, or (b) Licensee notifies Licensor in writing on or prior to June 30, 2018, with respect to the Initial Term, or June 30 of the second year of any subsequent Renewal Period of its desire to terminate this Agreement, in which case this Agreement shall terminate 12 months after the delivery of such written notification.  Termination will not operate to release any Party of any obligation hereunder accrued either prior to the effective date of said termination or derived therefrom or any obligation that expressly survives the termination of this Agreement.

 

Article 4.     Capital Improvements.  Licensee covenants and agrees to undertake and complete the capital improvements to the Premises described on Exhibit F (the “Capital Improvements”).  All costs and expenses of the Capital Improvements shall be borne exclusively by Licensee.  Before commencing the Capital Improvements, Licensee shall provide Licensor a reasonable opportunity to review and comment on the Capital Improvement plans and to amend and alter such Capital Improvements to the extent Licensor believes, acting reasonably, that such Capital Improvement plans would impact Licensor’s ability to operate on the Property in the ordinary course, create a public nuisance, pose a risk to the health and safety of Licensor’s employees or guests, or pose a risk to the environment (such considerations, the “Criteria”).  During the execution of the Capital Improvements, at Licensor’s request, Licensee shall provide Licensor with reasonable oversight of the execution of the Capital Improvements and shall undertake such alterations or changes to the Capital Improvements as Licensor shall suggest acting reasonably on the basis of the Criteria.  Licensee shall complete the Capital Improvements to the satisfaction of Licensor on or prior to the earlier to occur of (1) expiration of the Initial Term or (2) a Change in Control Transaction.  As used herein, a “Change in Control Transaction” means (i) the acquisition (whether by merger, consolidation, share exchange, business combination, recapitalization, liquidation, dissolution, equity investment, joint venture or otherwise) by any person or group (or the shareholders of any person) of more than 20% of the assets of Honeywell’s Advanced Materials Business unit and its subsidiaries, taken as a whole (based on the fair market value thereof), or assets comprising 20% or more of the consolidated revenues or EBITDA of Honeywell’s Advanced Materials Business unit, taken as a whole, including in any such case through the acquisition of one or more subsidiaries of the Licensee or (ii) acquisition in any manner (including through a tender offer or exchange offer) by any person or group (or the shareholders of any person) of more than 20% of the Licensee’s equity securities.

Article 5.     Base Annual Fee and Operating Expenses.

(a)     Base Annual Fee.  During the Term Licensee shall pay to Licensor, as a base annual fee for the Premises, the sums set forth on Exhibit B attached hereto and made a part hereof (“Base Annual Fee”), in equal monthly installments as set forth on Exhibit B.  Base Annual Fee and Additional Fees (as hereinafter defined) are hereinafter sometimes collectively referred to as “Fees”.  Base Annual Fee for any period during the Term hereof which is for less than one month shall be a pro rata portion of the monthly installment of Base Annual Fee.  Base Annual Fee shall be payable in advance, in equal monthly installments, without offset or deduction, except as may be otherwise expressly provided in this Agreement, on or before the first day of each calendar month during the Term and shall be payable in lawful money of the United States to Licensor at the address stated herein or to such other persons or at such other places as Licensor may designate in writing.  All amounts which Licensee is required to pay or discharge to Licensor pursuant to this Agreement, in addition to the Base Annual Fee, shall constitute additional fees hereunder (“Additional Fees”) and Licensee shall pay Additional Fees directly to the person entitled thereto.

2

 

(b)     Operating Expenses.  Licensee shall pay to Licensor as Additional Fees during the Term hereof, in addition to the Base Annual Fee, Licensee’s proportionate share (“Proportionate Share”) of the costs and expenses payable by Licensor in connection with the operation and maintenance of the Property (“Operating Expenses”), all in accordance with  the definitions of Proportionate Share and Operating Expenses and the terms and conditions contained in Exhibit C attached hereto.

(c)     Increase to Base Annual Fee.  At any time prior to 180 days prior to the commencement of a Renewal Period, Licensor may deliver to Licensee a written notice setting forth in reasonable detail the Fair Market Rental Value (as defined below) of the Premises and a calculation of a new Base Annual Fee based on such Fair Market Rental Value (“Landlord’s Determination of FMRV”).  If within twenty (20) business days after receipt of such written notice, Licensee does not deliver a written notice to Licensor disputing Licensor’s determination of Fair Market Rental Value and the new Base Annual Fee (a “Rental Dispute Notice”), the new Base Annual Fee set forth in Licensor’s written notice shall become the Base Annual Fee in the first calendar month from and after the applicable Renewal Period.  The Rental Dispute Notice shall set forth in reasonable detail Licensee’s determination of the Fair Market Rental Value and the reasons for rejecting Licensor’s proposed Base Annual Fee.  As used herein, “Fair Market Rental Value” shall mean the fair market rental value of the Premises giving consideration to all relevant factors including, without limitation, the size, quality, and location; and the amenity package available with respect to comparable spaces when compared to the Premises; and the creditworthiness of the tenant when compared to Licensee.  The Fair Market Rental Value shall specifically exclude value attributable to Licensee’s Capital Improvements and any additional Licensee alterations.

If Licensee delivers a Rental Dispute Notice, Licensor and Licensee shall negotiate in good faith for thirty (30) days following the delivery of the Rental Dispute Notice in an attempt to reach an agreement as to the Fair Market Rental Value.  If, however, Licensor and Licensee are unable to reach an agreement as to the Fair Market Rental Value, then Licensee shall have the option, by written notice to Licensor within five (5) days following the end of such thirty (30) day period, to proceed with the appraisal process set forth below.

If Licensee elects to proceed with the appraisal process, the Fair Market Rental Value of the Premises shall be determined by an appraisal prepared by a member of the Appraisal Institute (the “Institute”), the arrangements for which must be made by Licensee and which must be completed and delivered to Licensor within thirty (30) days after Licensee elects to proceed with the appraisal process.  If Licensor does not agree with this appraisal, then Licensee may, at Licensor’s sole cost and expense, obtain another appraisal from an Institute member, which second appraisal must be completed and delivered to Licensee within thirty (30) days after Licensor’s receipt of Licensee’s initial appraisal.  If the two rental rates representing the Fair Market Rental Value determined by said members differ by less than ten percent (10%), the Fair Market Rental Value shall be deemed to be the average of the two rental rates in said appraisals.  If the two rental rates representing the Fair Market Rental Value determined by said members differ by more than ten (10%), the appraisers designated by Licensor and Licensee shall, within twenty (20) days after receipt of the second appraisal by Licensee, designate a third Institute member to prepare a third appraisal, which third appraisal shall be completed and delivered to Licensor and Licensee within thirty (30) days after the designation of such third Institute member.  After completion and delivery of the third appraisal to Licensor and Licensee, the Base Annual Fee representing the Fair Market Rental Value shall be deemed to be the average of the two lower valuations of the three appraisals.  Each party shall bear the expense of the Institute member designated by it with the expense of the third member shall be shared equally by Licensor and Licensee.  Each appraiser shall have a minimum of five (5) years’ experience appraising fair market rental values in the Chesterfield region submarket.  Notwithstanding the foregoing, in no event shall the Base Annual Fee for a Renewal Term be less than the rate set forth on Exhibit B (or, if the Base Annual Fee has already been subject to an adjustment, the Base Annual Fee in effect at the time of delivery of Licensor’s written notice setting forth the Fair Market Rental Value).

3

If the appraisal process set forth herein is not completed by the commencement of the Renewal Term in question, the Base Annual Fee in effect for the last month of the Term or the current Renewal Term, as the case may be, shall continue until the appraisal process is completed, at which time the Base Annual Fee, based on the results of the appraisal process, or lesser amount (if Landlord’s Determination of FMRV is less than the amount determined by the appraisal process), as applicable, shall be applied retroactively to the commencement date of the Renewal Period in question, and the parties shall adjust the Base Annual Fee accordingly.

Upon the determination of the Base Annual Fee for any Renewal Term, the parties shall enter into an amendment of this Agreement setting forth the applicable Base Annual Fee for the Renewal Term in question.

Article 6.     Use, Compliance with Legal Requirements, Condition of Premises.

(a)     Use.  Licensee may use the Premises (and the improvements, fixtures and furnishings contained therein) in a manner and for purposes that are consistent with the use of the Premises on the date hereof (the “Allowed Uses”).  Licensee shall provide Licensor with six months advance written notice and request for approval if Licensee intends to materially alter, change or expand its use of the Premises; provided, however, such six month notice period may be shorter if such alteration, change or expansion will not materially impact Licensor’s activities on the Property.  Licensor may prohibit Licensee from altering its use of the Premises if Licensor believes, acting reasonably, that such alteration or change to the use of the Premises is not an Allowed Use because it materially interferes with Licensor’s ability to operate on the Property in the ordinary course consistent with past practice, creates a public nuisance, poses a risk to the health and safety of Licensor’s employees or guests materially more significant than the risks posed by Licensee’s current use of the Premises, or poses a risk to the environment materially more significant than the risks posed by Licensee’s current use of the Premises.  The Premises may only be occupied on a regular basis by employees of Licensee.  Licensee shall be responsible for pickup and delivery of Licensee’s goods at any common shipping dock at the Property (subject to any limitations set forth on Exhibits A1 and A2), and any shipments shall include proper labeling to distinguish Licensee’s goods from Licensor’s goods.

4

(b)     Compliance with Legal Requirements and Licensor’s Procedures.  Each Party shall comply with all statutes, laws, regulations, ordinances, rules, judgments, rules of common law, orders, decrees, government approvals, concessions, grants, franchises, licenses, agreements, directives, requirements, legally enforceable contracts or other governmental restrictions or any similar form of decision of, determination by, interpretation or administration of or standard pursuant to any of the foregoing of any governmental authority (whether federal, state, local or foreign), whether now or hereinafter in effect and, in each case, as amended (all of the foregoing shall be “Legal Requirements”), and Licensor’s Procedures (as defined in Article 26) applicable to its respective activities at the Property.  Without limiting the generality of the foregoing, the Parties agree to allocate their compliance responsibilities as follows, and to reasonably cooperate in the performance of these compliance responsibilities:

(i)  Licensor’s Responsibilities.  Except for Licensee’s obligations pursuant to Article 6(b)(ii) and Article 8 below, Licensor, at Licensor’s sole cost and expense and throughout the Term, shall ensure that the Property complies with all Legal Requirements and Licensor’s Procedures.

(ii)  Licensee’s Responsibilities.  Licensee, at Licensee’s sole cost and expense and throughout the Term, shall ensure that the Premises comply with all Legal Requirements and Licensor’s Procedures to the extent such compliance is required as a result of Licensee’s business conducted within the Premises.

(c)     Condition of Premises.  Licensor shall deliver the Premises to Licensee in its AS-IS condition on the Commencement Date.  Licensee hereby accepts the Premises in their condition existing as of the Commencement Date.

Article 7.     Assignment.  Neither Licensee nor Licensor shall assign any of its rights or delegate any of its obligations hereunder without the prior written consent of the other party; provided, however, that either Licensee or Licensor may assign its rights, in whole, without such consent, to (a) one of its wholly owned subsidiaries, or (b) subject to Article 4, an entity that acquires all or substantially all of the business or assets of such party to which this Agreement pertains, whether by merger, reorganization, acquisition, sale, or otherwise.  Licensee shall not sublicense the Premises or any part thereof, or permit the use of the Premises or any part thereof, by any persons other than Licensee and its employees, without the prior written consent of Licensor.  Any purported assignment or sublicensing in violation of this Article shall be null and void.  No assignment shall relieve the assigning party of any of its obligations hereunder.  No assignment (whether by operation of law), subletting or further licensing, even with the consent of Licensor, will relieve Licensee from liability for payment of the Base Annual Fees and the Additional Fees herein provided for or from the obligation to keep and be bound by all of the terms, conditions and covenants of this Agreement.  Any transfer contrary to the provisions of this Article 7 shall be void.

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Article 8.     Licensee’s Responsibility.  With respect to the Premises, Licensee shall only be responsible to perform the maintenance, repair and replacements activities set forth on Exhibit G.  Licensee shall not commit waste with respect to its Premises.

Article 9.     Licensor’s Repair and Maintenance Responsibilities.  Except for the Licensee’s maintenance, repair and replacements activities set forth on Exhibit G, Licensor shall (i) keep the Property in good repair and maintenance (including replacements) at all times, for the proper operation of the Property and for provision of Licensor’s services under this Agreement at competitive costs and in a manner generally consistent with the maintenance and repair (including replacements) of comparable properties, including, without limitation, the Common Areas, the Property’s windows, roof, foundation, structure and walls, and mechanical and electrical systems, which include, but are not limited to, the heating, electrical, air conditioning, ventilation and plumbing systems and the heating, ventilation and air conditioning equipment and (ii) perform the other obligations described on Exhibit G.

Article 10.     Licensee’s Insurance, Licensor’s Insurance, Mutual Release/Waiver of Subrogation, and Indemnity.

(a)     Licensee’s Insurance.  Licensee, at its own expense (including deductibles), shall maintain in force at all times during the term of this Agreement, insurances including:

(i)  Commercial general liability insurance, on an occurrence basis, including coverage for premises, products/completed operations, personal injury, and contractual liability, with a minimum combined single limit of liability of Five Million and No/100 Dollars ($5,000,000.00) per occurrence and annual aggregate coverage for bodily injury or property damage, insuring against liability of Licensee and its authorized agents, employees and/or representatives arising out of and in connection with Licensee’s use and occupancy of the Premises.  Licensor shall be included as additional insured for claims arising out of Licensee’s use and occupancy of Property and Licensee’s insurers will waive rights of subrogation against Licensor to the extent of Licensee’s indemnity obligations herein.

(ii)  Workers’ compensation insurance as required by law for all Licensee’s employees; and Employer’s Liability insurance in an amount not less than $1,000,000 per accident/per employee.  Licensee’s insurers will waive rights of subrogation against Licensor to the extent of Licensee’s indemnity obligations herein.

(iii)  Business automobile liability insurance, covering all owned, rented, leased, non-owned and hired vehicles used by Licensee in connection with the Premises with a combined single limit for bodily injury and property damage of $5,000,000 per occurrence.  Licensor shall be included as additional insured for claims arising out of Licensee’s activities and Licensee’s insurers will waive rights of subrogation against Licensor to the extent of Licensee’s indemnity obligations herein.

(iv)  “All Risk” Property Insurance covering all of Licensee’s equipment, personal property and tools.  Such insurance shall cover all property at full replacement value.

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(v)  Licensee shall utilize insurance companies that are rated no less than “A-, VII” by A.M.  Best or equivalent rating agency and Licensee will endeavor to provide a thirty (30) day notice of cancellation or non-renewal to Licensor.  Policies of Licensee shall be primary and non-contributory to any insurance carried by or available to Licensor in respect to Licensee’s indemnity obligations herein.  Licensee shall provide Licensor a certificate of such insurance prior to occupancy and/or use of the Property and annually within 15 days of renewal.

(b)     Licensor’s Insurance.  Licensor, at Licensor’s sole cost and expense (including deductibles), shall maintain in force at all times during the term of this Agreement, insurances including:

(i)  Commercial general liability insurance, on an occurrence basis, including coverage for premises, products/completed operations, personal injury, and contractual liability, with a minimum combined single limit of liability of Five Million and No/100 Dollars ($5,000,000.00) per occurrence and annual aggregate coverage for bodily injury or property damage, insuring against liability of Licensor and its authorized agents, employees and/or representatives arising out of and in connection with Licensor’s ownership, use and occupancy of the Premises.  Licensee shall be included as additional insured for claims arising out of Licensor’s ownership, use and occupancy of the Property and Licensor’s insurers will waive rights of subrogation against Licensee to the extent of Licensor’s indemnity obligations herein.

(ii)  Workers’ compensation insurance as required by law for all Licensor’s employees; and Employer’s Liability insurance in an amount not less than $1,000,000 per accident/per employee.  Licensor’s insurers will waive rights of subrogation against Licensee to the extent of Licensor’s indemnity obligations herein.

(iii)  Business automobile liability insurance, covering all owned, rented, leased, non-owned and hired vehicles used by Licensor in connection with the Premises with a combined single limit for bodily injury and property damage of $5,000,000 per occurrence.  Licensee shall be included as additional insured for claims arising out of Licensor’s activities and Licensor’s insurers will waive rights of subrogation against Licensee to the extent of Licensor’s indemnity obligations herein.

(iv)  Property “all risk” insurance covering the Property and all of Licensor’s equipment, personal property and tools.  Such insurance shall cover the Property and all property of Licensor at full replacement value.

(c)     Mutual Release/Waiver of Subrogation.  Licensor and Licensee each hereby release the other from any and all liability or responsibility for any loss, injury or damage to the other’s real and/or personal property caused by fire or any other casualty insured by a standard “all risk” property insurance policy during the Term of this Agreement, even if such fire or casualty may have been caused by the negligence (but not the willful misconduct) of the other party or one for whom such party may be responsible.  Inasmuch as the above mutual waivers will preclude the assignment of any aforesaid claim by way of subrogation (or otherwise) to an insurance company (or any other person), each party hereto hereby agrees if required by said policies to give to each insurance company which has issued to it policies of fire and extended coverage insurance, written notice of the terms of said mutual waivers, and to have said insurance policies properly endorsed, if necessary, to prevent the invalidation of said insurance coverage by reason of said waivers.

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(d)     Indemnity.

(i)  Licensee shall indemnify and hold Licensor and its officers, directors, partners and employees entirely harmless from and against any and all liabilities, claims and/or losses of any kind arising, directly or indirectly, entirely or in part, out of any injury to any person which arise out of, are occasioned by or are in any way attributable to the use or occupancy of the Property by Licensee, its agents, employees, guests, invitees and/or contractors, except to the extent caused by the negligence or intentional misconduct of Licensor, Licensor’s agents, employees, invitees or contractors.  In the event that any action or proceeding is brought against Licensor by reason of any such claim, Licensee, upon receipt of written notice from Licensor, shall defend the same, at Licensee’s expense, by counsel reasonably satisfactory to Licensor.  Notwithstanding anything in this Agreement to the contrary, the foregoing covenants under this Article 10(d)(i) shall be deemed continuing covenants for the benefit of Licensor and shall survive the expiration of this Agreement but only to the extent that the causes giving rise to Licensee’s obligations under this Article 10(d)(i) occur before the expiration of this Agreement.

(ii)  Licensor shall indemnify and hold Licensee and its officers, directors, partners and employees entirely harmless from and against any and all liabilities, claims and/or losses of any kind arising, directly or indirectly, entirely or in part, out of any injury to any person which arise out of, are occasioned by or are in any way attributable to the use or occupancy of the Property by Licensor, its agents, employees, guests, invitees and/or contractors, except to the extent caused by the negligence or intentional misconduct of Licensee, Licensee’s agents, employees, invitees or contractors.  In the event that any action or proceeding is brought against Licensee by reason of any such claim, Licensor, upon receipt of written notice from Licensee, shall defend the same, at Licensor’s expense, by counsel reasonably satisfactory to Licensee.  Notwithstanding anything in this Agreement to the contrary, the foregoing covenants under this Article 10(d)(ii) shall be deemed continuing covenants for the benefit of Licensee and shall survive the expiration of this Agreement but only to the extent that the causes giving rise to Licensor’s obligations under this Article 10(d)(ii) occur before the expiration of this Agreement.

 

 

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(iii)  Neither Licensor nor Licensee shall have any liability under any provision of this Agreement for any punitive, incidental, consequential, special or indirect damages, including loss of future profits, revenue or income, diminution in value or loss of business reputation or opportunity.

Article 11.     Default/Remedies.

(a)     Licensee’s Default.  The occurrence of any one or more of the following shall constitute a default hereunder by Licensee:

(i)  failure to pay Base Annual Fee or Additional Fees when due if the failure continues for twenty (20) days after written notice has been received by Licensee;

(ii)  failure to perform any other provision of this Agreement if such failure to perform is not cured within thirty (30) business days after written notice has been received by Licensee, provided that, if the default cannot reasonably be cured within thirty (30) business days, Licensee shall not be in default of this Agreement if Licensee commences to cure the default within the thirty (30) business day period and diligently and in good faith continues to cure the default;

(iii)  any proceeding is begun by or against Licensee to subject the assets of Licensee to any bankruptcy or insolvency law or for an appointment of a receiver of Licensee or of any of Licensee’s assets and is not dismissed within ninety (90) days; or

(iv)  Licensee makes a general assignment of Licensee’s assets for the benefit of creditors.

Notices given under this Article shall specify the alleged default and the applicable Agreement provision(s), and shall demand that Licensee perform the provisions of this Agreement or pay the Base Annual Fee or Additional Fees that is in arrears, as the case may be, within the applicable period of time.

(b)     Licensor’s Remedies.  In the event of any such default by Licensee, Licensor may at any time after expiration of the applicable cure period:

(i)  terminate this Agreement and Licensee’s right to occupancy of the Premises by any lawful means, in which case Licensee shall vacate the Premises within a reasonably practical period of time thereafter.  In such event, Licensor shall be entitled to recover from Licensee all reasonable damages incurred by Licensor by reason of Licensee’s default;

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(ii)  maintain Licensee’s right to occupancy in which case this Agreement shall continue in effect.  In such event, Licensor shall be entitled to enforce all of Licensor’s rights and remedies under this Agreement, including the right to recover the Fees due hereunder; or

(iii)  pursue any other remedy now or hereafter available to Licensor under the laws or judicial decisions of the state where the Premises are located.

Unpaid installments of Base Annual Fee and Additional Fees and other unpaid monetary obligations of Licensee under the terms, covenants or conditions of this Agreement shall bear interest from the date due at the maximum rate then allowable by law.

In the case of Licensee’s default as contemplated herein, Licensor shall have a duty to mitigate its damages.

(c)     Licensee’s Remedies.  In the event of any failure by Licensor to perform any of its obligations hereunder, Licensee (except in the case of an emergency) shall take no action without having first given Licensor written notice of any such default and a reasonable opportunity to cure which, in any event, shall not exceed thirty (30) business days.  Following such notice and failure by Licensor to cure, Licensee shall have all rights available to it at law or in equity, and shall have the further right to take the necessary actions to perform Licensor’s uncured obligations hereunder and invoice Licensor for the costs and expenses thereof, unless Licensor has diligently commenced to perform its uncured obligations hereunder within said period not to exceed thirty (30) business days.  Licensor shall remit payment to Licensee within thirty (30) days of receipt of invoice from Licensee.  If Licensor fails to remit payment to Licensee within the aforesaid thirty (30) day period, Licensee shall have the right to offset and deduct said sum from Base Annual Fee.

Article 12.     Utilities.  Licensor covenants and agrees to maintain public utilities to furnish any electricity and water utilized in operating any and all of the facilities serving the Premises.

Licensor and Licensee shall undertake to determine if separate metering of utilities at the Premises is commercially feasible and, if mutually agreed that one or more utilities can be separately metered, Licensee shall bear the cost to provide for separate metering and pay for all water, gas, heat, light, power, telephone and other such utilities separately metered to the Premises.  If any utilities and services are not supplied and separately metered to the Premises, Licensee shall pay Licensee’s Proportionate Share (as defined pursuant to Article 5(b)) of all utilities and services serving the Property in common with other occupants of the Property.

No interruption or failure of utilities shall result in the termination of this Agreement or the abatement of rent, except as expressly provided below.

Notwithstanding anything contained herein to the contrary, in the event that such interruption or cessation of utilities is the result of Licensor’s negligent or willful act or omission and such interruption or cessation of utilities continues beyond three (3) business days from the date of such interruption or cessation, then, provided Licensee has delivered Licensor with prompt notice of such interruption, the Annual Base Fee under this Agreement will abate, commencing on the fourth (4th) day of such interruption or cessation, and continuing until the date on which the utilities are restored and the Premises are again tenantable.  No abatement of rentals as hereinabove described will apply to the extent such interruption of utilities is the result of Licensee’s alterations to the Premises or Capital Improvements, or any negligent act or omission of Licensee, its agents, employees or contractors, or any cause other than the negligent or willful act or omission of Licensor or its employees, agents or contractors.

 

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In the event that Licensor has advance knowledge of, or otherwise plans an interruption or cessation of utilities, Licensor shall give Licensee at least 14-day advanced notice or such other greater advanced notice as is reasonable under the circumstance.

Article 13.     Real Property Taxes.  Licensor shall pay all real property taxes and general and special assessments, which assessments shall be amortized over the longest period permitted by law (“Real Property Taxes”) applicable to the Property, provided, however, that Licensee shall pay as Additional Fees, Licensee’s Proportionate Share of such amount in accordance with Article 5(b).  Licensee shall not be required to pay any federal, state or local income, profit, franchise, rent, sales, gift, estate, succession, inheritance, foreign ownership, foreign control, transfer, capital levy, and/or personal property taxes of Licensor, or any increases in Real Property Taxes that result from changes in ownership of the Property.  Licensor acknowledges and agrees that Licensee shall have no obligation or responsibility to make filings on behalf of Licensor with respect to any tax matters, nor shall Licensee be responsible for any penalties or interest payments required to be paid as a result of Licensor’s failure to make such filings or timely pay such Real Property Taxes.  Licensor shall advise Licensee of the initial monthly payment amount due for Real Property Taxes on or before the Commencement Date hereof.

Article 14.     Damage or Destruction.  Should the Property be damaged by fire or other casualty, the following shall result:

(a)  Should the Premises be rendered wholly unfit for occupancy and not be (in the reasonable judgment of Licensor and Licensee) susceptible of repair within one hundred fifty (150) days after the date of such damage, this Agreement shall terminate as of the date of such damage, and Licensee shall pay the Fees apportioned to the time of such damage and surrender the Premises to Licensor within a reasonably practical period of time thereafter;

(b)  Should such damage to the Premises, however, be (in the reasonable judgment of Licensor and Licensee) susceptible of repair within one hundred fifty (150) days after such occurrence, Licensor, at Licensor’s sole cost and expense, shall enter and make repairs, without affecting this Agreement, but the Fees shall be reduced or abated as shall be equitable while such repairs are being made.

Damage to the Property which affects Licensee’s access to the Premises or Licensee’s use of the Premises shall be treated as damage to the Premises pursuant to subparagraphs (a) and (b) above.

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Article 15.     Condemnation.

(a)  If the Property shall be taken or condemned for any public purpose, or purchased under threat of such taking, to such an extent as to render the Premises untenantable, this Agreement shall, at the option of either party, forthwith cease and terminate as of the date title vests in the condemning authority or the date the condemning authority takes possession, whichever shall occur first.  Licensor and Licensee shall be entitled to receive their shares of the condemnation award as their interests may appear.

(b)  In the event this Agreement is not terminated as contemplated by subparagraph (a) above, Licensor shall promptly restore the Property (including the Premises) to substantially the same condition as the Property was in as of the Commencement Date (with the exception of those portions of the Property taken), and Base Annual Fee and Licensee’s Proportionate Share of Operating Expenses shall be proportionately adjusted.

Article 16.     Notices.  Whenever in this Agreement it shall be required or permitted that notice or demand be given or served by either party to this Agreement, such notice or demand shall be given or served in writing and sent to Licensor and Licensee at the addresses set forth below:

	 	
Licensor:

	
AdvanSix Resins & Chemicals LLC

	 	 	
115 Tabor Road

	 	 	
Morris Plains, NJ 07950

	 	 	
Attention: John M. Quitmeyer, General Counsel

	 	 	
E-mail: hans.quitmeyer@Advan6.com

 

	 	
Licensee:

	
Honeywell International Inc.

	 	 	
21925 Field Parkway, Suite 220

	 	 	
Deer Park, IL 60010

	 	 	
Attention: Richard J. Kriva, Vice President, Global Real Estate

	 	 	
E-mail: rick.kriva@honeywell.com

	 	
With copy to:

	
Honeywell International Inc.

	 	 	
115 Tabor Road

	 	 	
Morris Plains, NJ 07950

	 	 	
Attention: Senior Vice President and General Counsel

	 	 	
E-mail: katherine.adams@honeywell.com

All such notices shall be sent by (i) certified or registered mail, return receipt requested, and shall be effective three (3) days after the date of mailing; (ii) Federal Express or similar overnight courier and shall be effective one (1) day after delivery to Federal Express or similar overnight courier; (iii) email transmission (with confirmation of receipt) and shall be effective on the date of transmission; or (iv) personal service and shall be effective on the same day as service.  Any such address may be changed from time to time by either party serving notices as provided above.

Notwithstanding anything in the foregoing to the contrary, notices under Article 12 or notices in the event of emergency or site evacuation, shall be given, orally or in writing, by Licensor to Licensee’s designated Site Leader or Plant Manager as designated on Exhibit G by personal service or facsimile or e-mail transmission (with confirmation of receipt).

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Article 17.     Authority.  Licensor warrants that it has the full right and authority to execute and perform pursuant to this Agreement.  Licensee warrants that it has the full right and authority to execute and perform pursuant to this Agreement.

Article 18.     Alterations and Trade Fixtures.  Licensee shall have the right, at its own cost and expense, to make alterations, additions, installations and changes (hereinafter collectively called “Alterations”) in, on and to the Premises as it shall deem expedient or necessary for its business purposes, however to the extent that such Alterations shall impair the structural integrity of the Building or cause a material interruption in facility/building systems or the use of Common Areas,, Licensee must first obtain Licensor’s written consent thereto, Licensor agreeing that it will not unreasonably withhold or delay such consent.  All such work shall be done in a good and workmanlike manner and in accordance with all applicable laws.  Licensee may remove any or all Alterations and any signage from the Premises at any time prior to the expiration of the Term, provided that any damage caused by such removal shall be repaired by Licensee.  Licensee shall remove, prior to expiration of the Term, all such Alterations which required Licensor’s prior consent and which consent was granted upon the condition that such Alterations be so removed.  Alterations not so removed shall become the property of Licensor upon Licensee’s surrender of the Premises.

Prior to the commencement of any work on any Alterations approved by Licensor, Licensee shall supply Licensor with satisfactory evidence of the following items: (a) the procurement of all necessary licenses, permits and approvals from the various governmental departments having jurisdiction over the Premises, and (b) worker’s compensation insurance, public liability insurance and property damage insurance in amounts, form and content, and with companies reasonably satisfactory to Licensor.

Article 19.     Mechanic’s Liens.  Licensee shall keep the Premises free from any liens arising out of any work performed, material furnished or obligation incurred by or for Licensee or any person or entity claiming through or under Licensee.  In the event that Licensee shall not, within sixty (60) days following the imposition of any such lien, cause the same to be released of record by payment or posting of a bond, Licensor shall have the right, but not the obligation, to cause such lien to be released by such means as Licensor deems reasonably proper, including payment of the claim giving rise to such lien.  All such reasonable sums paid and all reasonable expenses incurred by Licensor in connection therewith shall be due and payable to Licensor by Licensee within thirty (30) days of receipt of invoice, along with appropriate back-up documentation.

Article 20.     Security.  The Parties shall work together to ensure that in satisfying their respective obligations and responsibilities described herein (“Obligations”) they are each able to maintain the level of physical and electronic security in effect as of the date of this Agreement during the Term.

Licensor may take physical or information security measures that affect the manner in which obligations are provided, so long as the substance or overall functionality of any affected obligations remains the same as it was prior to the Commencement Date; provided, that Licensee shall be given reasonable, prior written notice of any such physical or information security measures that are material.  If there is a security breach that relates to the obligations, the parties shall, subject to any applicable law, cooperate with each other regarding the timing and manner of (a) notification to their respective customers, potential customers, employees and/or agents concerning a breach or potential breach of security and (b) disclosures to appropriate Governmental Authorities.

 

  

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If either party or its personnel will be given access to any of the computer systems or software of the other party or any party performing the obligations on its behalf (“Systems”) in connection with the performance of the obligations, the accessing party and its personnel shall comply with all system security policies, procedures and requirements related to the Systems (as amended from time to time, the “Security Regulations”) in effect as of the Commencement Date and of which such accessing party or its personnel has been reasonably informed, and will not tamper with, compromise or circumvent any security or audit measures employed by such the party granting such access and its personnel.  Each party and its affiliates shall use commercially reasonable efforts to ensure that only those of their respective personnel who are specifically authorized to have access to the Systems of the other party gain such access, and to prevent unauthorized access, use, destruction, alteration or loss of information contained therein, including notifying its personnel regarding the restrictions set forth in this Agreement and establishing appropriate policies designed to effectively enforce such restrictions.  If, at any time, either party determines that any personnel of the other party or its affiliates has sought to circumvent, or has circumvented, its Security Regulations, that any unauthorized personnel of the other party or its affiliates has accessed its Systems or that any personnel of the other party or its affiliates has engaged in activities that may lead to the unauthorized access, use, destruction, alteration or loss of data, information or software, such party shall immediately terminate any such personnel’s access to the Systems and immediately notify the other party.

Licensor, Licensee and their respective personnel, shall access and use only those Systems, and only such data and information within such Systems to which it has been granted the right to access and use.  Any party shall have the right to deny the personnel of the other party access to such party’s Systems, after prior written notice and consultation with the other party, in the event the party reasonably believes that such personnel pose a security concern.

Article 21.     Surrender of Premises.  Upon the expiration or termination of this Agreement, Licensee shall, at Licensee’s expense, (i) remove Licensee’s personal property, equipment and trade fixtures (including without limitation, any Hazardous Substances (as such term is defined below), and (ii) vacate the Premises peaceably and quietly and in as good order and condition as the same were in on the Commencement Date or were thereafter replaced by either Licensor or Licensee, reasonable wear and tear, damage by fire or other casualty, condemnation, acts of God and the elements excepted.  Any property left in the Premises after the expiration or termination of this Agreement shall be deemed to have been abandoned and the property of Licensor to dispose of, remove or store, as Licensor deems expedient at Licensee’s expense, and Licensee waives all claims against Licensor for any damages resulting from Licensor’s retention and disposition of such property.

 

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Article 22.     Holding Over.  Should Licensee continue to occupy the Premises after expiration of the Term, such occupancy shall be on a month-to-month license upon the terms, covenants or conditions herein specified, but at a monthly fee equal to one hundred twenty-five percent (125%) of the monthly installment of Base Annual Fee paid for the last month of the Term of this Agreement, plus any Additional Fees.

Article 23.     Subordination.  This Agreement is subject and subordinate to all ground or underlying leases and to all mortgages and deeds of trust which may now or hereafter affect the Property of which the Premises form a part, and to all renewals, modifications, consolidations, replacements and extensions thereof, provided that Licensee’s rights under this Agreement shall not be disturbed.  Licensor shall provide and obtain for Licensee a subordination, non-disturbance and attornment agreement from the holder of any ground or underlying lease, mortgage or deed of trust whether affecting the Premises as of the Commencement Date or affecting the Premises after the Commencement Date of this Agreement.  Licensee shall from time to time upon request from Licensor execute and deliver any documents or instruments that may be reasonably required to effectuate such subordination, subject to review by Licensee’s legal counsel.

Article 24.     Estoppel Certificates.  Each party agrees, from time to time, upon not less than thirty (30) days prior written request by the other party (the “Requesting Party”), to deliver to the Requesting Party a statement in writing certifying (a) that this Agreement 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 identifying the modifications), (b) the date to which the monthly installments of Base Annual Fee and other charges have been paid, (c) the Base Annual Fee and current estimate of Operating Expenses, if applicable, (d) the date on which the Term commenced and ends, and the periods, if any, for which such Licensee has options to extend the Term, (e) that Licensee has accepted the Premises and is in possession, (f) that, so far as the person making the certification knows, Requesting Party is not in default under any provision of this Agreement and, if the Requesting Party is in default, specifying each such default of which the person making the certification may have actual knowledge, without inquiry, and (g) including such other information as the prospective purchaser, mortgagee or assignee may reasonably require.

Article 25.     Signs.  Licensee and Licensor shall, acting reasonably, agree on where to place and construct sign(s) with respect to Licensee’s occupancy of the Premises.  The construction of such signage shall be at Licensee’s sole cost and expense, and in accordance with all Legal Requirements (“Licensee’s Signs”).  Licensor, at Licensee’s sole cost and expense (provided that Licensor shall obtain Licensee’s prior written reasonable consent prior to incurring any such costs and expenses), shall (i) maintain Licensee’s Signs, and (ii) upon the expiration or termination of this Agreement, remove Licensee’s Signs and complete required repairs as the result of such removal.

Article 26.     Licensor’s Procedures.  Licensor has procedures for the safety, care, maintenance and cleanliness of the Property, its facilities and equipment and other assets, and access thereto and egress therefrom; for worker health and safety, manufacturing and other operations at the Property; for the protection of confidential information; for compliance with Legal Requirements; for emergency response; and for other Property activities; all of which Licensor may change, in its reasonable discretion, from time to time (collectively, “Licensor’s Procedures”).  Licensor shall make Licensor’s Procedures available to Licensee and give Licensee prompt notice of any changes thereto and Licensor shall comply with Licensor’s Procedures.

 

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Article 27.     HSE Matters.

(a)     Definitions.  For purposes of this Agreement:

(i)  The term “HSE Law” shall mean and refer to any Legal Requirements, or any standard used pursuant to Legal Requirements, relating to (i) pollution, (ii) protection or restoration of the indoor or outdoor environment or natural resources, (iii) the transportation, treatment, storage or release of, or exposure to, hazardous or toxic materials, (iv) the registration, manufacturing, sale, labeling or distribution of hazardous or toxic materials or products containing such materials (including the REACH directive and similar requirements), (v) process safety management or (vi) the protection of the public, worker health and safety or threatened or endangered species.

(ii)  The terms “Hazardous Substance” and “Hazardous Substances” shall mean and refer to (i) any natural or artificial substance (whether solid, liquid, gas or other form of matter, noise, microorganism or electromagnetic field) that could cause harm to human health or the environment, including, without limitation, petroleum, petroleum products and byproducts, asbestos-containing materials, perfluoroalkyl substances, urea formaldehyde foam insulation, carcinogens, endocrine disrupters, lead-based paint, electronic, medical or infectious wastes, polychlorinated biphenyls, radon gas, radioactive substances, greenhouse gases and ozone-depleting substances and (ii) any other chemical, material, substance or waste that could result in Liability under, or that is prohibited, limited or regulated by or pursuant to, any HSE Law.

(b)     Permitting.  Unless otherwise agreed by the Parties, Licensor shall, at its sole cost and expense:

(i)  hold and maintain in good standing all permits and other governmental authorizations (“Permits”) required by HSE Laws governing air emissions, water discharges, water supplies and waste treatment, storage and disposal;

(ii)  at Licensee’s request, modify the Permits to accommodate an alteration, change or expansion of Licensee’s use of the Premises, in each case consistent with Article 6(a), at Licensee’s sole cost and expense;

(iii)  refrain from modifying the Permits in any manner that would prevent Licensee from using the Premises for the Allowed Uses unless a governmental authority directs Licensor to do so in order to meet the requirements of HSE Laws; and

(iv)  submit to governmental authorities all reports, documents and other correspondence that may be required by the Permits; provided, that Licensee shall comply in a timely manner with Licensor’s reasonable requests for information and other cooperation in connection with the Permits and required correspondence.

 

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(c)     Training.  Licensee shall have the right to participate in training and other activities conducted by Licensor as may be required for Licensee to comply with the Legal Requirements and Licensor’s Procedures applicable to Licensee’s use of the Premises.

(d)     Hazardous Substances.

(i)  Licensee shall not discharge, release emit or create the threat of release of any Hazardous Substances at the Property except in accordance with the Allowed Uses, and neither Licensee nor Licensor shall discharge, release, emit or create the threat of release of any Hazardous Substances at the Property except in compliance with all applicable HSE Laws and Licensor’s Procedures.

(ii)  Licensor shall indemnify, defend and hold Licensee harmless against any and all actions, claims, demands, judgments, penalties, liabilities, costs, damages, obligations, prohibitions and expenses, including court costs and attorney’s fees (but excluding any consequential, incidental and special damages and lost profits) incurred by Licensee resulting from the existence of any Hazardous Substances deposited in, upon, under, over or from the Property, or resulting from allegations that Licensee is liable for Hazardous Substances originating from, transported from or otherwise related to the Property, unless and only to the extent such Hazardous Substances are deposited in, upon, under, over or from the Property by Licensee, or Licensee has directly arranged for such Hazardous Substances to originate from, be transported from or be otherwise related to the Property, in each case subsequent to the Commencement Date.  All of Licensor’s obligations under this subparagraph (d)(ii) shall survive the expiration or termination of this Agreement.

(iii)  Licensee shall indemnify, defend and hold Licensor harmless against any and all actions, claims, demands, judgments, penalties, liabilities, costs, damages, obligations, prohibitions and expenses, including court costs and attorney’s fees (but excluding any consequential, incidental and special damages and lost profits) incurred by Licensor to the extent resulting from the existence of any Hazardous Substance deposited in, upon, under, over or from the Property by Licensee, or resulting from allegations that Licensor is liable for Hazardous Substances that, as a direct result of the actions of Licensee, originated from, were transported from or were otherwise related to the Property, in each case subsequent to the Commencement Date.  The obligations of Licensee set forth within this subparagraph (c) shall expire on the last day of the second year after the expiration or earlier termination date of this Agreement.

(e)     Compliance with HSE Laws.  Each Party shall comply with all HSE Laws applicable to its respective activities at the Property.  Without limiting the generality of the foregoing, the Parties agree to allocate their compliance responsibilities as follows, and to reasonably cooperate in the performance of these compliance responsibilities:

(i)  Licensor’s Responsibilities.  Except for Licensee’s responsibilities pursuant to Article 6(b)(ii) below, Licensor, at Licensor’s sole cost and expense and throughout the Term, shall ensure that the Property and operations and activities at the Property comply with all HSE Laws.

17

(ii)  Licensee’s Responsibilities.  Licensee, at Licensee’s sole cost and expense and throughout the Term, shall ensure that the Premises comply with all HSE Laws to the extent such compliance is required solely as a result of Licensee’s business conducted within the Premises.

(iii)  Conflicting Terms.  Licensor and Licensee hereby agree that if there is conflict between the terms, covenants or conditions of this Article 27 and the Separation and Distribution Agreement dated of even date herewith, by and between Honeywell International Inc.  and AdvanSix Inc., a Delaware corporation, the Separation and Distribution Agreement shall prevail.

Article 28.     General Conditions.

(a)     Time of Essence.  TIME IS OF THE ESSENCE OF EACH PROVISION OF THIS AGREEMENT.

(b)     Successors.  This Agreement shall be binding upon and inure to the benefit of the parties and their permitted successors.

(c)     Real Estate Brokers; Finders.  Each party represents that it has not had dealings with any real estate broker, finder or other person with respect to this Agreement in any manner.  Each party shall hold harmless the other party from all damages resulting from any claims that may be asserted against the other party by any broker, finder or other person with whom the indemnifying party has or purportedly has dealt.  Licensor shall pay any commissions and/or fees that are payable to the above-named broker or finder with respect to this Agreement.

(d)     Exhibits.  All exhibits referred to are attached to this Agreement and incorporated by reference.

(e)     Interpretation of Agreement.  This Agreement shall be construed and interpreted in accordance with the laws of the state in which the Property is located, without giving effect to the principles of conflicts of laws thereof.

(f)     Integrated Agreement; Modification.  This Agreement contains all the agreements of the parties and cannot be amended or modified except by written agreement.

(g)     Severability.  The unenforceability, invalidity or illegality of any provision shall not render the other provisions unenforceable, invalid or illegal.

(h)     Exclusive Use.  Licensor covenants and agrees not to lease or license the use of space in the the Property, without Licensee’s prior written consent (which Licensee may grant or withhold in Licensee’s sole discretion), to any third party that operates a “Competing Business”.  For the purpose of this Article 28(h), a “Competing Business” shall be defined as a business in competition with Licensee’s business.

(i)     Counterparts; Facsimile/E-mailed Signatures.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same Agreement.  Licensor and Licensee agree that the delivery of an executed copy of this Agreement by facsimile or by attachment to an e-mail shall be legal and binding on the transmitting party and shall have the same full force and effect as if an original executed copy of this Agreement had been delivered.

 

18

(j)     Confidentiality.  Each party covenants and agrees that it shall not, and that it shall take all reasonable steps to ensure that its shareholders, directors, officers, managers, partners, employees, agents, advisors or independent contractors do not, directly or indirectly, either during the term of this Agreement or at any time thereafter, disclose any of the financial terms of this Agreement or disclose or use any information which it may acquire with respect to the business and affairs of the other party or its customers, clients, suppliers, agents or contractors (“Confidential Information”) for any purpose, other than as required to carry out its duties hereunder, without the consent of the other party or as required by applicable law, regulation or lawful requirement of a regulatory, judicial or taxing authority.  Before granting access to any Confidential Information of the other party to any person under this Section, a party shall properly instruct that person about the confidentiality of it and the steps to be taken to protect it.  Before granting that access to any person other than an employee, except as provided in the next sentence, a party shall have that person sign an agreement causing that person to be bound by terms substantially the same as those in this Section.  Before granting access to any Confidential Information of the other party to any legal, regulatory or taxing authority (other than Licensee examiners), a party shall, unless it may not lawfully do so, promptly notify the other party and allow the other party reasonable time to oppose such process.

Notwithstanding anything to the contrary set forth herein or in any other agreement to which the parties are parties or by which they are bound, the obligations of confidentiality contained herein and therein, as they relate to this Agreement, shall not apply to the tax structure or tax treatment of this Agreement, and each party hereto (and any employee, representative, or agent of either party) may disclose to any and all persons, without limitation of any kind, the tax structure and tax treatment of this Agreement and all materials of any kind (including opinions or other tax analysis) that are provided to such party relating to such tax treatment and tax structure; provided, however, that such disclosure shall not include the name (or other identifying information not relevant to the tax structure or tax treatment) of any person and shall not include information for which nondisclosure is reasonably necessary in order to comply with applicable securities laws.

Each party will implement appropriate security measures to prevent a breach by it of this Section, including measures designed to (i) ensure the confidentiality, security and integrity of the Confidential Information of the other; (ii) protect the Confidential Information of the other against anticipated threats or hazards to its security or integrity; and (iii) protect the Confidential Information of the other against unauthorized access to or use of it.

In dealing with any Confidential Information of the disclosing party that is personal information of the disclosing party’s customers or clients, the receiving party will comply with the reasonable privacy policies of the disclosing party communicated to it in writing and with all applicable privacy laws and regulations.

At either party’s request but subject to applicable legal and regulatory record retention requirements, the other party shall immediately return to that party or destroy (and, upon request, certify such destruction) all Confidential Information of that party then in its possession or under its control.

19

If any unauthorized disclosure of, loss of, or inability to account for, Confidential Information of a party occurs while it is in the possession of the other party, the other party shall notify the affected party immediately upon becoming aware of such occurrence.

Each party may monitor from time to time, activities to detect any security breach, unauthorized intrusions or suspicious activity involving the Confidential Information and will immediately take steps to remedy any problem giving rise to that security breach or suspicious activity.

For the purposes of this Agreement, “Confidential Information” does not include information that (i) was or becomes generally available to the public other than as a result of a disclosure by either party or its shareholders, directors, officers, managers, partners, employees, advisors or agents in breach of this Agreement, (ii) was available to the disclosing party on a non-confidential basis prior to its disclosure to such party by the other party pursuant to this Agreement, (iii) is obtained by the disclosing party on a non-confidential basis from a source other than the other party or its agents, provided that, to the best of the disclosing party’s knowledge, such source is not prohibited from transmitting the information by a confidentiality agreement with, or other legal or fiduciary obligation to, the other party or its agents, or (iv) has been authorized by the providing party to be disseminated on a non-confidential basis.

[The remainder of this page left intentionally blank]

20

IN WITNESS WHEREOF, the respective parties hereto have executed this Chesterfield Site Sharing and Services Agreement or caused this Agreement to be executed by their duly authorized representatives the day and year set forth in Article 1 hereof.

 

	LICENSEE:	 	 LICENSOR:	 
	 	 	 	 	 	 
	Honeywell International Inc.,

 a Delaware corporation	 	AdvanSix Resins & Chemicals LLC,

 a Delaware limited liability company	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By	
/s/ Jeffrey N. Neuman

	 	By	
/s/ Erin N. Kane

	 
	Its	
 

	 	Its	
 

	 

  

 

EXHIBIT A1

 (Interim Premises)

The Premises, Common Areas and Parking shall be as designated on the diagram attached to this Exhibit A1 captioned “Interim Premises.”

	 	
Common Areas

	 	
Premises

SHORT-TERM SEPARATION PLAN

 Premises: 78,542 SF

 

A1-1

 

 

  

A1-2

 

EXHIBIT A2

 (Final Premises)

The Final Premises and Parking shall be as designated on the diagram attached to this Exhibit A2 captioned “Final Premises.”

LONG-TERM SEPARATION PLAN

 Premises: 78,542 SF

A2-1

Location of Honeywell-dedicated loading docks to be mutually agreed by the parties prior to the spin-off.  Potential to build guard shack along Honeywell entryway.

 

A2-2

EXHIBIT B

 (Base Annual Fee)

For the Initial Term and, subject to Article 5(c), each subsequent Renewal Term, the Base Annual Fee shall be Five hundred forty-five thousand eight hundred sixty-seven dollars ($545,867), payable in equal monthly installments of forty-five thousand four hundred and eighty-nine dollars ($45,489).

B-1

EXHIBIT C

 (Operating Expenses and Licensee’s Proportionate Share)

The term “Operating Expenses” means all costs and expenses incurred by Licensor for the operation, the maintenance, the cleaning, the repair and the administration of the Property including, but not limited to costs of:

	 	
·

	
Real Property Taxes and reasonable fees payable to tax consultants and tax attorneys for consultation and contesting such Real Property Taxes;

	 	 	 
	 	
·

	
utilities;

	 	 	 
	 	
·

	
 maintenance, repair and replacement of all portions of the Property, including without limitation, paving and parking areas, roads, roofs (including the roof membrane), alleys, and driveways, mowing, landscaping, snow removal, exterior painting, and utility lines;

	 	 	 
	 	
·

	
to the extent not used in Licensee’s manufacturing activities, heating, ventilation and air conditioning systems lighting, electrical systems and other mechanical and building systems;

	 	 	 
	 	
·

	
insurance premiums for insurance required to be carried by Licensor or otherwise permitted to be carried by Licensor as provided in Article 10;

	 	 	 
	 	
·

	
amounts paid to contractors and subcontractors for work or services performed in connection with any of the foregoing; charges or assessments of any association to which the Property is subject; property management fees payable at market rates to a property manager, security services, trash collection, sweeping and debris removal;

	 	 	 
	 	
·

	
that portion of additions or alterations made by Licensor to the Property or the Building which directly benefit Licensee which are undertaken by Licensor in order to comply with Legal Requirements (other than those expressly required herein to be made by Licensee or Licensor).

 

Costs which would under generally accepted accounting principles be deemed capital costs or capital expenditures may be included within the definition of “Operating Expenses” only the extent that such cost: relates to an expenditure which is incurred based upon a reasonable forecast that such expenditure will reduce in future years another cost which would be deemed an Operating Expense, but then only to the extent in any one year of the amount equal to the total expenditure divided by the useful life of the improvement which requires such cost.

Notwithstanding any term, covenant or condition as set forth herein or Article 6(b)(ii) of this Agreement (Compliance with Legal Requirements), Operating Expenses shall specifically exclude the following:

C-1

 

	 	
(i)

	
replacement of capital items, except to the extent expressly permitted herein and by this Agreement,

	 	 	 
	 	
(ii)

	
expenses of leasing space,

	 	 	 
	 	
(iii)

	
financing and refinancing costs and principal and interest payments on mortgages and deeds of trust,

	 	 	 
	 	
(iv)

	
third party tenant improvement costs,

	 	 	 
	 	
(v)

	
costs and expenses covered by insurance,

	 	 	 
	 	
(vi)

	
Licensor’s insurance deductible,

	 	 	 
	 	
(vii)

	
depreciation,

	 	 	 
	 	
(viii)

	
payments made to affiliates of Licensor, inside or related contractors and executives,

	 	 	 
	 	
(ix)

	
income, profit, franchise, rent, sales, gift, estate, succession, inheritance, foreign ownership, foreign control, transfer, capital levy, and/or personal property taxes payable by Licensor, and any increases in Real Property Taxes (as hereinafter defined) that result from changes in ownership of the Property,

	 	 	 
	 	
(x)

	
curing of construction defects,

	 	 	 
	 	
(xi)

	
maintenance, repairs and/or replacements of the foundation or structural repairs of the buildings on the Property,

	 	 	 
	 	
(xii)

	
any and all costs of Licensor in complying with its obligations under Article 6(b)(i) (Compliance with Legal Requirements),

	 	 	 
	 	
(xiii)

	
any and all costs of Licensor in complying with its obligations under Article 27 (HSE Matters) including, without limitation, the costs and expenses of clean-up, remediation, environmental surveys/assessments, compliance with HSE Laws (as hereinafter defined), consulting fees, treatment and monitoring charges, transportation expenses and disposal fees, etc.,

	 	 	 
	 	
(xiv)

	
any and all costs of Licensor for repairs resulting from damage, destruction or condemnation covered by other provisions of this Agreement,

	 	 	 
	 	
(xv)

	
rent under any ground or underlying lease,

	 	 	 
	 	
(xvi)

	
any and all costs incurred by Licensor in connection with the transfer or disposition of Licensor’s interest in the Property,

	 	 	 
	 	
(xvii)

	
any and all costs incurred by Licensor in connection with the enforcement of leases,

 

C-2

	 	
(xviii)

	
any and all costs incurred by Licensor in the operation of any health or exercise club or any luncheon or other restaurant, club or facility if said facilities are not accessible to Licensee, and

	 	 	 
	 	
(xix)

	
the cost of any item or service which Licensee separately reimburses Licensor or pays to third parties.

 

At any reasonable time and from time to time, Licensee, its authorized representatives and its accountants may examine Licensor’s books and records for the purpose of ascertaining the accuracy of Licensor’s invoices for Operating Expenses.

Licensor’s books and records shall be maintained in accordance with generally accepted accounting principles consistently applied. In the event Licensee disagrees with the accuracy of Licensor’s invoice(s), Licensee shall pay only the amounts set forth on Licensor’s invoice not in dispute, and Licensor and Licensee shall thereafter diligently pursue resolution of the disputed amounts.

“Proportionate Share” shall mean a fraction, the numerator of which is the square footage of the Premises and the denominator of which is the square footage of entirety of the building(s) located at the Property, as reasonably adjusted by Licensor in the future for changes in the physical size of the Premises or the buildings located at the Property; provided, however, the parties have agreed upon Licensee’s Proportionate Share of the specific Operating Expenses listed on the spreadsheet attached to this exhibit and captioned “Chesterfield Operating Expenses” as of the Date of this Agreement.   Notwithstanding anything in the foregoing to the contrary, Licensor shall equitably increase or decrease, as the case may be, Licensee’s Proportionate Share for any item of expense or cost reimbursable by Licensee that relates to a repair, replacement, or service that benefits only Licensee or the Premises, or only a portion of the Premises occupied by Licensee, or that varies with occupancy or use, or that does not benefit Licensee or the Premises or the Common Areas accessible to Licensee.  Subject to the foregoing, the parties hereby agree that Licensee’s Proportionate Share shall be deemed to be 7%.

C-3

	
Service/Scope

	
Methodology for Charging

	
Proportionate Share

	
Utilities:

	
Activity-based

	 
	
Air Usage from B-4 compressors

	
Meter exists - based on usage from licensee

	
SCFM

	
Potable Water from county water system

	
Meter exists - based on usage from licensee

	
GAL

	
Electricity

	
To be metered - based on usage from licensee

	
kWH

	
Steam

	
To be metered - based on usage from licensee

	
TON

	
Chilled water

	
Meter exists - based on usage from licensee

	
GAL

	 	 	 
	
Plant General Site Maintenance:

	 	 
	
Maintenance (general & utilities)

	
Based on square footage

	
7%

	
Real estate taxes

	
Based on square footage

	
7%

	
Janitorial

	
Based on square footage

	
7%

	
Facilities (grounds, snow removal, supplies)

	
Based on square footage

	
7%

	 	 	 
	
Security

	
Sq Ft of buildings - Securitas billing

	
7%

	 	 	 
	
Stores

	
% of time by stores personnel - CC spend

	
1%

	 	 	 
	
Service Fee

	
10% of total charges

	
10%

	 	 	 

C-4

EXHIBIT D

 (Site Points of Contact)

Chesterfield Plant

 

	 	
·

	
Plant Manager of Chesterfield

	 	
·

	
Controller for Chesterfield

	 	
·

	
HSE Manager of Chesterfield

Honeywell Operations at Chesterfield

 

	 	
·

	
Plant Manager of Colonial Heights

	 	
·

	
Controller for Colonial Heights

	 	
·

	
HSE Manager of Colonial Heights

	 	
·

	
Production Manager of Super String Operations

 

D-1

EXHIBIT E

 [Intentionally Omitted]

E-1

EXHIBIT F

 (Capital Improvements)

Licensee shall undertake to, the extent reasonably practical, separate the operations of Licensor and Licensee in accordance with Exhibit A2.  In furtherance of undertaking such separation, Licensor and Licensee agree as follows:

 

	 	
·

	
Licensee shall, as promptly as reasonably possible, construct a dedicated means of ingress and egress for its employees to enter the Interim Premises in accordance with Exhibit A1, including the construction of a chain link fence from the park area described on Exhibit A1 to the doorway to the Interim Premises market on Exhibit A1.It shall be Licensee’s responsibility to insure that this means of ingress and egress is secure and well lit.

	 	 	 
	 	
·

	
Licensee shall undertake a study to determine the most commercially feasible means of constructing a loading dock for Licensor or Licensee’s operations, as the case may be, in order to physically separate Licensor and Licensee’s activities at the Property.Licensee shall present the results of its study to Licensor, and Licensor and Licensee shall mutually agree upon the configuration, design and construction of a new loading dock area, the implementation of such design and construction to be part of the Capital Improvement.

 

F-1

 

EXHIBIT G

 (Licensee and Licensor’s Responsibilities)

Pursuant to Article 8 and Article 9, but subject to reimbursement pursuant to the terms of Article 5(b) and Exhibit C, the following is a non-exclusive list of the obligations and responsibilities of Licensor and Licensee with respect to repair and maintenance responsibilities.  The following lists are non-exhaustive and should be interpreted in conjunction with provisions of Article 8 and Article 9, respectively.

Licensee’s Responsibilities:

Licensee shall be responsible for the maintenance, repair and replacement of all tangible personal property, equipment, machinery, utility lines, heating, ventilation and air conditioning systems, lighting, electrical systems and other mechanical and building systems contained within the Premises.  Such responsibilities shall include, without limitation:

 

	 	
·

	
Any cosmetic (painting, flooring, etc.) repairs or maintenance for offices, rooms, and equipment within the Premises

	 	 	 
	 	
·

	
Any maintenance of assets where title or the licensed interest is held by Licensee

	 	 	 
	 	
·

	
Maintenance on any IT (information technology), wiring, or equipment used by Licensee

	 	 	 
	 	
·

	
Any maintenance of any portable assets used by Licensee

	 	 	 
	 	
·

	
Any compliance (Local, State, Federal, International, or other governing body) related cost or maintenance for assets where title or the licensed interest is held by Licensee

	 	 	 
	 	
·

	
Any consumable components (lights, filters, etc) related cost or maintenance

	 	 	 
	 	
·

	
Any leakage, stoppage of flow, or damage to piping within the Premises and related to Licensee’s use of the Premises

	 	 	 
	 	
·

	
Any modification to Licensor assets made by or at the request of Licensee

	 	 	 
	 	
·

	
Any modification to Licensor’s assets required for Licensee to satisfy its obligations under Article 21 (Surrender)

	 	 	 
	 	
·

	
Any maintenance of secondary electrical distribution control assets (panels, subpanels, MCCs) required for Licensee’s occupancy of the Premises

	 	 	 
	 	
·

	
Any maintenance of secondary or ancillary piping, transfer, and distribution assets not considered to comprise the utility header needed by Licensee in connection with its occupancy of the Premises

  

G-1

	 	
·

	
Any maintenance of heating and air conditioning building assets where title or the licensed interest is held by Licensee

	 	 	 
	 	
·

	
Any maintenance or repairs required to correct damage caused by Licensee

	 	 	 

 

Licensee shall be entitled to access the Premises and those portions of the Property necessary to perform the foregoing maintenance activities, subject to Licensee obtaining any approvals required for such activities by applicable Legal Requirements and obtaining Licensor’s consent and oversight regarding such activities, which consent shall not be unreasonably withheld or delayed,

Licensor’s Responsibilities:

In addition to the responsibilities and obligations described in Article 9, below are additional obligations and responsibilities to be assumed by Licensor:

 

	 	
·

	
Any maintenance, repair and replacement of building roofing

	 	 	 
	 	
·

	
Any maintenance of access doorways to the Premises required for Licensor to perform maintenance otherwise required under Article 9

	 	 	 
	 	
·

	
Any maintenance of yard and grounds leading to and outside of the Premises

	 	 	 
	 	
·

	
Any maintenance of main electrical distribution control assets (MCCs) on the Property

 

G-2

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