Document:

EX-10.5

 Exhibit 10.5 

EXECUTION VERSION 
  

 
  

AMENDED AND RESTATED SUBORDINATION AGREEMENT 

by 
 MIDCOAST ENERGY PARTNERS,
L.P., 
 MIDCOAST OPERATING, L.P., 

Other Credit Parties from time to time party hereto 

and 
 ENBRIDGE ENERGY PARTNERS,
L.P., 
 Certain of its Subsidiaries and Affiliates from time to time party hereto 

In favor of 
 BANK OF AMERICA,
N.A., 
 as Administrative Agent, Swing Line Lender, and an L/C Issuer 

Dated as of September 30, 2014 

  
  

 

											
	
	 TABLE OF CONTENTS

 
	 
	 	 	 	 	  	 	  	Page	 
		
	 ARTICLE 1 INTERPRETATION
	  	 	3	  
				
		 	 	1.1	  	  	Definitions	  	 	3	  
				
		 	 	1.2	  	  	Terms Generally	  	 	7	  
				
		 	 	1.3	  	  	Headings	  	 	7	  
				
		 	 	1.4	  	  	Governing Law	  	 	8	  
				
		 	 	1.5	  	  	Severability	  	 	8	  
				
		 	 	1.6	  	  	Time of the Essence	  	 	8	  
		
	 ARTICLE 2 POSTPONEMENT AND SUBORDINATION OF PAYMENT
	  	 	8	  
				
		 	 	2.1	  	  	General Postponement and Subordination	  	 	8	  
				
		 	 	2.2	  	  	Priority of Senior Indebtedness on Dissolution or Insolvency	  	 	9	  
		
	 ARTICLE 3 PRIORITY OF LIENS; LIEN SUBORDINATION
	  	 	9	  
				
		 	 	3.1	  	  	 No Liens Prohibited by Credit Agreement; No Liens Securing Subordinated Indebtedness Prior to Springing Lien Trigger Event
	  	 	9	  
				
		 	 	3.2	  	  	Relative Priorities	  	 	11	  
				
		 	 	3.3	  	  	Bailment for Perfection of Certain Security Interests	  	 	12	  
				
		 	 	3.4	  	  	Certain Agreements with Respect to Unenforceable Liens	  	 	12	  
		
	 ARTICLE 4 ENFORCEMENT OF RIGHTS AND REMEDIES
	  	 	13	  
				
		 	 	4.1	  	  	Exercise of Rights and Remedies.	  	 	13	  
				
		 	 	4.2	  	  	No Waiver by Senior Lenders	  	 	13	  
				
		 	 	4.3	  	  	Automatic Release of Subordinated Liens.	  	 	13	  
				
		 	 	4.4	  	  	Insurance and Condemnation Awards	  	 	14	  
		
	 ARTICLE 5 NO INTERFERENCE
	  	 	14	  
				
		 	 	5.1	  	  	Prohibited Acts.	  	 	14	  
				
		 	 	5.2	  	  	Additional Agreements	  	 	17	  
				
		 	 	5.3	  	  	Certain Additional Waivers by Subordinated Debt Parties	  	 	19	  
				
		 	 	5.4	  	  	Permitted Actions	  	 	19	  
		
	 ARTICLE 6 ADDITIONAL PAYMENT PROVISIONS; PAYMENT OVER
	  	 	19	  
				
		 	 	6.1	  	  	Payment Over	  	 	19	  
				
		 	 	6.2	  	  	Application of Payments	  	 	20	  

  
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 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	 	  	Page

									
			
	 	6.3	  	  	Payment in Full on Senior Indebtedness	  	 	20	  
			
	 	6.4	  	  	Legend on Subordinated Debt Instruments	  	 	20	  
		
	  
	 ARTICLE 7 PERMITTED PAYMENTS
	  	 	20	  
			
	 	7.1	  	  	Permitted Payments	  	 	20	  
		
	 	ARTICLE 8 SUBROGATION	  	 	21	  
			
	 	8.1	  	  	Right of Subrogation and Related Restrictions	  	 	21	  
			
	 	8.2	  	  	Transfer by Subrogation	  	 	21	  
		
	  
	 ARTICLE 9 DEALINGS WITH OBLIGORS
	  	 	21	  
			
	 	9.1	  	  	Restricted Dealings by Subordinated Creditors	  	 	21	  
			
	 	9.2	  	  	Permitted Dealings by Senior Lenders	  	 	21	  
		
	  
	 ARTICLE 10 REPRESENTATIONS AND WARRANTIES
	  	 	22	  
			
	 	10.1	  	  	Representations and Warranties	  	 	22	  
		
	  
	 ARTICLE 11 CONTINUING SUBORDINATION
	  	 	23	  
			
	 	11.1	  	  	Continuing Subordination; Reinstatement	  	 	23	  
			
	 	11.2	  	  	Other Obligations not Affected	  	 	24	  
			
	 	11.3	  	  	Acknowledgment of Documentation	  	 	24	  
		
	  
	 ARTICLE 12 NO LIABILITY; OBLIGATIONS ABSOLUTE
	  	 	24	  
			
	 	12.1	  	  	Information	  	 	24	  
			
	 	12.2	  	  	No Warranties or Liability.	  	 	24	  
			
	 	12.3	  	  	Rights of Administrative Agent and Senior Lenders Not Affected	  	 	25	  
		
	  
	 ARTICLE 13 GENERAL PROVISIONS
	  	 	25	  
			
	 	13.1	  	  	Notices	  	 	25	  
			
	 	13.2	  	  	Amendments and Waivers	  	 	25	  
			
	 	13.3	  	  	Assignment by Lenders	  	 	26	  
			
	 	13.4	  	  	Effectiveness in Insolvency or Liquidation Proceedings	  	 	26	  
			
	 	13.5	  	  	Assignment and Certain Other Actions by Subordinated Creditor	  	 	27	  
			
	 	13.6	  	  	Further Assurances	  	 	27	  
			
	 	13.7	  	  	Counterparts	  	 	27	  
			
	 	13.8	  	  	Specific Performance	  	 	27	  
			
	 	13.9	  	  	Waiver of Right to Trial by Jury	  	 	27	  
			
	 	13.10	  	  	Obligor Acknowledgment	  	 	28	  
			
	 	13.11	  	  	Beneficiaries	  	 	28	  

  
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 TABLE OF CONTENTS 

(continued) 
  

											
	 	 	 	 	  	 	  	Page	 
				
		 	 	13.12	  	  	Conflict with Collateral Agreements	  	 	28	  
				
		 	 	13.13	  	  	Amendment and Restatement	  	 	28	  

  
 -iii- 

 AMENDED AND RESTATED SUBORDINATION AGREEMENT 

THIS AMENDED AND RESTATED SUBORDINATION AGREEMENT made as of September 30, 2014 (as the same may be amended, restated, supplemented or otherwise modified
from time to time, this “Agreement”), by MIDCOAST ENERGY PARTNERS, L.P., a Delaware limited partnership (“MEP”), MIDCOAST OPERATING, L.P., a Texas limited partnership
(“Midcoast” and together with MEP, collectively, the “Borrowers” and individually, a “Borrower”), the other Credit Parties (as defined below) party
hereto or from time to time party hereto, ENBRIDGE ENERGY PARTNERS, L.P., a Delaware limited partnership (“EEP”), the subsidiaries and other affiliates of EEP party hereto or from time to time party hereto (each
an “EEP Affiliate” and together with EEP and each of their respective successors and permitted assigns, collectively, the “Subordinated Creditors” and individually, a
“Subordinated Creditor”), in favor of BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender, and an L/C Issuer, and the Senior Lenders (as defined below). 

PRELIMINARY STATEMENT 

Reference is made to (i) the Credit Agreement dated as of November 13, 2013 (as it may be amended, restated, increased, renewed,
refinanced, extended or otherwise modified or supplemented from time to time, the “Credit Agreement”, which term shall include any credit agreement entered into in replacement thereof), among the Borrowers, the Subsidiary
Guarantors (as defined in the Credit Agreement), the lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender, and an L/C Issuer and (ii) the Subordination Agreement dated as of
November 13, 2013 (the “Original Subordination Agreement”), which the parties now desire to amend and restate in its entirety as set forth in this Agreement. 

Reference is also made to (i) the Note Purchase Agreement dated as of even date herewith (as amended, restated, supplemented or otherwise
modified from time to time, the “Note Purchase Agreement”), among MEP, as the issuer, and the purchasers party thereto, pursuant to which MEP has issued $75.0 million in aggregate principal amount of its 3.56% Series A Senior
Notes due September 30, 2019, $175.0 million in aggregate principal amount of its 4.04% Series B Senior Notes due September 30, 2021, and $150.0 million in aggregate principal amount of its 4.42% Series C Senior Notes due
September 30, 2024 (such senior notes, as amended, restated or otherwise modified from time to time, together with any senior notes issued in substitution, replacement or exchange therefor, the “Notes”) and (ii) the
Subordination Agreement dated as of even date herewith, as amended, restated, supplemented or otherwise modified from time to time (the “NPA Subordination Agreement”), made by the Subordinated Creditors in favor of the
holders from time to time of the Notes. 
 RECITALS 

WHEREAS, EEP and Midcoast, a borrower under the Credit Agreement, are parties to (i) that certain Financial Support Agreement effective
as of November 13, 2013 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Financial Support Agreement”), pursuant to which EEP has agreed, among other things,
to continue to facilitate the provision of letters of credit to Midcoast and its subsidiaries under EEP’s credit facilities and to provide guarantees to Midcoast and its subsidiaries, each on the terms and conditions set forth in the Financial
Support Agreement, and (ii) that certain Working Capital Loan Agreement effective as of November 13, 2013 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Working Capital
Agreement” and, collectively with the Financial Support Agreement, the “Support Agreements,” and individually, a “Support Agreement”) pursuant to which
EEP has agreed, among other things, to make revolving loans to Midcoast, on the terms and conditions set forth in the Working Capital Agreement; 

 WHEREAS, Midcoast and certain of its subsidiaries may from time to time owe certain reimbursement
obligations or other indebtedness to EEP under the Support Agreements; 
 WHEREAS, the Credit Agreement permits each of Midcoast and MEP to,
subject to the terms and conditions set forth in the Credit Agreement, incur from time to time additional Indebtedness that is pari passu with the Senior Indebtedness, and EEP may choose to subordinate its rights and obligations under the Support
Agreements to any such additional pari passu Indebtedness pursuant to one or more subordination agreements in favor of the holders of such additional pari passu Indebtedness; 

WHEREAS, Section 3(c) of the Financial Support Agreement and Section 29(c) of the Working Capital Agreement generally provide, among
other things, that Midcoast may not, and shall not permit any of its affiliates to, grant or permit any liens on any asset or property to secure the indebtedness and obligations under the Credit Agreement, unless it and each of them has granted or
concurrently grants a lien to EEP on such asset or property to secure its obligations under the Financial Support Agreement and the Working Capital Agreement, respectively, on a second-priority basis, and, in scope, nature, type of, but second
priority to, the liens at any time, and from time to time, granted, created, perfected and maintained to secure the indebtedness and obligations under the Credit Agreement; 

WHEREAS, upon the occurrence of a Springing Lien Trigger Event (as defined in the Credit Agreement), Borrowers and the Subsidiary Guarantors
shall grant Administrative Agent for the benefit of the Senior Lenders a valid and perfected first-priority security interest, subject only to Permitted Liens, in the Springing Lien Collateral (each as defined in the Credit Agreement) to secure the
Obligations (as defined in the Credit Agreement) and, pursuant to the respective Support Agreements, shall grant EEP a valid and perfected, second-priority security interest in the same Springing Lien Collateral, junior in all respects to the
security interest granted in favor of the Administrative Agent under the Credit Agreement; 
 WHEREAS, pursuant to Credit
Agreement and related Loan Documents (as defined below), the Borrowers and Subsidiary Guarantors (collectively, the “Obligors,” and individually, an “Obligor”) will owe certain Senior Indebtedness (as
defined below) to the Senior Lenders, and it is a condition to the Senior Lenders’ willingness to enter into the Credit Agreement and related Loan Documents that, among other things, (i) the Subordinated Creditors shall have subordinated
their right to payment to all indebtedness or obligations now or hereafter owed or owing by the Obligors to the Subordinated Creditors under the Support Agreements in the manner and to the extent provided in this Agreement, (ii) in the event a
Springing Lien Trigger Event occurs, the Senior Indebtedness shall be secured by first-priority, duly-perfected liens on, and security interests against, the Springing Lien Collateral, (iii) the Subordinated Indebtedness (as defined herein)
shall at all times be unsecured, except that if a Springing Lien Trigger Event occurs and the Senior Lenders shall first have been granted a first-priority, duly-perfected lien and security interest in and against the Springing Lien Collateral, the
Subordinated Creditor may at such time, and only to the extent expressly permitted under the Support Agreements, receive a junior priority lien and security interest in the same collateral to secure the Subordinated Indebtedness, but all such liens
and security interests shall be subordinate and junior to all first-priority Liens and security interests securing the Senior Indebtedness; and 

WHEREAS, the Credit Agreement requires, among other things, that the parties hereto set forth in this Agreement, among other things, their
respective rights, obligations and remedies with respect to the payment of the Senior Indebtedness and the Subordinated Indebtedness and with respect to the common Collateral, each as herein defined. 

  
 2 

 NOW THEREFORE, for good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged by the Subordinated Creditors and the Obligors), and to induce the Senior Lenders to enter into the Credit Agreement and related Loan Documents, from which Subordinated Creditors and Obligors will receive benefit, the Obligors
and the Subordinated Creditors hereby agree, for the benefit of the Administrative Agent and the other Senior Lenders, as follows: 
 ARTICLE
1 
 INTERPRETATION 

1.1 Definitions 
 In this
Agreement, including the preliminary statement and the recitals, capitalized terms used herein, and not otherwise defined herein, shall have the meanings attributed to such terms in the Credit Agreement. In addition, the following terms shall have
the following meanings: 
 “Administrative Agent” shall mean Bank of America, N.A., as the initial
Administrative Agent under the Credit Agreement, and its successors and assigns, including any new Administrative Agent under any Refinancing of the Senior Indebtedness. 

“Agreement” shall have the meaning assigned to such term in the introductory paragraph hereof. 

“Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy,” as
now and hereinafter in effect, or any successor statute. 
 “Bankruptcy Law” shall mean the Bankruptcy
Code and any other Federal, state or foreign bankruptcy, insolvency, receivership or similar law. 

“Beneficiary” means, at each relevant time of determination, each of (a) the holders of Senior
Indebtedness and (b) the holders of Other Senior Indebtedness; and in each case that any such holders or group thereof are represented by an agent, shall also mean such agent for the benefit of such respective holders. 

“Beneficiary Indebtedness” means, collectively, the Senior Indebtedness and the Other Senior
Indebtedness. 
 “Borrower” and “Borrowers” each shall have the
meaning assigned to such term in the introductory paragraph hereof. 
 “Collateral” shall have the
meaning assigned to the term “Springing Lien Collateral” in the Credit Agreement. 
 “Collateral
Agreement” means, collectively, any and all collateral agency agreements, intercreditor agreements or similar agreements with regard to the Collateral, by and among the Administrative Agent and the other Beneficiaries (or their
agent representative(s)), in each case, as amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof. 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 

“Credit Agreement” shall have the meaning assigned to such term in the preliminary statement hereof.

  
 3 

 “Credit Party” or “Credit
Parties” shall have the meaning assigned to the respective terms “Loan Party” and “Loan Parties” in the Credit Agreement. 

“DIP Financing” shall have the meaning assigned to such term in Section 5.1 l hereof.

 “DIP Financing Liens” shall have the meaning assigned to such term in
Section 5.1 l hereof. 
 “DIP Lenders” shall have the meaning assigned to such term
in Section 5.1 l hereof. 
 “Discharge of Senior Indebtedness” shall mean
(a) indefeasible payment in full in cash of all outstanding Obligations, (b) termination or expiration of all Letters of Credit (other than Letters of Credit as to which arrangements satisfactory to each L/C Issuer thereof, in its sole
discretion, have been made) and (c) termination of each Commitment and the reduction of the Aggregate Commitments to zero. 

“Discharge of Subordinated Indebtedness” shall mean payment in full of all outstanding obligations under
the Support Agreements, termination or expiration of all letters of credit (other than letters of credit as to which arrangements satisfactory to each letter of credit issuer thereof, in its sole discretion, have been made) and guarantees
thereunder, and termination of all obligations and commitments thereunder and the reduction thereof to zero, provided such payment, terminations, expiration, satisfactory arrangements and reduction referred to in this definition are evidenced
by a signed writing to such effect by an authorized representative of each Subordinated Debt Party and delivered to Administrative Agent and, provided, further, all payments or transfers received by a Subordinated Debt Party on account
of Subordinated Indebtedness constituted Permitted Payments hereunder and were not otherwise prohibited by or in violation of the Credit Agreement or this Agreement. 

“Disposition” shall mean any sale, lease, exchange, transfer or other disposition.
“Dispose” shall have a correlative meaning. 
 “EEP”
shall have the meaning assigned to such term in the introductory paragraph hereof. 
 “EEP
Affiliates” shall have the meaning assigned to such term in the introductory paragraph hereof. 

“Enforcement Action” shall mean (a) an action, proceeding, or similar undertaking with respect to
the Collateral, or any portion thereof, (i) to collect or to cause, in each case either directly or indirectly, whether from the exercise of Control or otherwise, the payment of any Subordinated Indebtedness from a Credit Party, (ii) to
take from or for the account of any Credit Party, by set-off, recoupment or in any other manner, the whole or any part of any moneys or accounts which may now or hereafter be owing by or to any Credit Party or (iii) to enforce or exercise, or
seek to enforce or exercise, any rights and remedies under any agreement or document in respect of the Collateral, or any portion thereof, or under applicable law with respect to the Collateral, (b) to exercise any put option or to cause any
Credit Party to honor any redemption or mandatory prepayment obligation under any agreement or document in respect of Subordinated Indebtedness or (c) to take any action under the provisions of any state or federal law, including, without
limitation, the Uniform Commercial Code, or under any contract or agreement, to enforce, attach, recover against, foreclose upon, take possession of or sell any Collateral. 

“Equity Interests” shall have the meaning assigned to the term “Capital Stock” in the Credit
Agreement. 
 “Financial Support Agreement” shall have the meaning assigned to such term in the
recitals hereof. 

  
 4 

 “Guarantors” shall have the meaning assigned to the term
“Subsidiary Guarantors” in the Credit Agreement. 
 “Impermissible Subordinated Debt Liens”
shall have the meaning assigned to such term in Section 3.1(c) hereof. 
 “Insolvency Proceeding” shall
mean (a) any voluntary or involuntary case or proceeding under the Bankruptcy Code or any other Bankruptcy Law with respect to any Credit Party or for property or assets of any Credit Party, (b) any voluntary or involuntary appointment of
a receiver, trustee, custodian, sequestrator, conservator or similar official for any Credit Party or for property or assets of any Credit Party, (c) any voluntary or involuntary dissolution, winding-up, readjustment or liquidation of any
Credit Party, or (d) a general assignment for the benefit of creditors by any Credit Party. 

“Midcoast” shall have the meaning assigned to such term in the introductory paragraph hereof. 

“Non-Conforming Plan of Reorganization” means any Plan of Reorganization in an Insolvency Proceeding or
other Proceeding (as defined below) that contravenes the terms of this Agreement, including without limitation, any Plan of Reorganization that does not provide for payments or distributions in respect of the Senior Indebtedness (and any security
thereof) to be made with the priority specified herein or that seeks to make payments or distributions on account of the Subordinated Indebtedness (or any security thereof) prior to the Discharge of the Senior Indebtedness. 

“Note Purchase Agreement” shall have the meaning assigned to such term in the preliminary statement
hereof. 
 “Notes” shall have the meaning assigned to such term in the preliminary statement hereof.

 “Obligor” and Obligors” each shall have the meaning assigned to
such term in the recitals hereof. 
 “Original Subordination Agreement” shall have the meaning
assigned to such term in the preliminary statement hereof. 
 “Other Pledged or Controlled Collateral”
shall have the meaning assigned to such term in Section 3.3 hereof. 
 “Other Senior
Indebtedness” shall mean all Indebtedness (other than Senior Indebtedness) that is not in any manner subordinate in right of payment of any Beneficiary Indebtedness then outstanding (including the Obligations (as defined in the
Note Purchase Agreement)) and obligations arising under any applicable definitive documentation governing such Indebtedness, including without limitation and duplication, in each case, (a) Post-Petition Interest and (b) all fees, costs,
charges and expenses (including reasonable attorney fees, costs and expenses), accrued or incurred after the commencement of any Insolvency Proceeding, whether or not allowed or allowable in such Insolvency Proceeding, which Indebtedness is incurred
by the Obligors, or any of them, subject to the terms and conditions set forth in the Credit Agreement, from time to time, and for which a subordination agreement in form and substance substantially the same as this Agreement, mutatis
mutandis, has been executed and delivered by the Subordinated Creditor and is in effect as of any date of determination. For the avoidance of doubt, to the extent any payment with respect to any Other Senior Indebtedness (whether by or on behalf
of any Credit Party, as proceeds of Collateral, enforcement of any Lien, right of setoff or otherwise) is declared to be a fraudulent conveyance or a preference in any respect, set aside or required to be paid to a debtor-in- possession, trustee, a
creditor, any Subordinated Debt Party, receiver or similar Person, then the 

  
 5 

 
obligation or part thereof originally intended to be satisfied shall, for the purposes of this Agreement and the rights and obligations of the holders of such Other Senior Indebtedness and each
Subordinated Debt Party, be deemed to be reinstated and outstanding as if such payment had not occurred. 
 “Permitted
Payments” shall have the meaning assigned to such term in Section 7.1 hereof. 
 “Plan of
Reorganization” shall mean any plan of reorganization, plan of liquidation, agreement for composition, or other type of plan of arrangement or agreement proposed in or in connection with any Insolvency Proceeding or other
Proceeding. 
 “Post-Petition Interest” shall mean interest (including interest at the Default Rate)
accrued or accruing (or which would, absent commencement of an Insolvency Proceeding, accrue) after the commencement of any Insolvency Proceeding, whether or not allowed or allowable in such Insolvency Proceeding. 

“Proceeding” shall have the meaning assigned to such term in Section 2.2(a) hereof. 

“Pro Rata Basis” shall mean, at each relevant time of determination, with respect to Beneficiary
Indebtedness then held by a Beneficiary and distributions, payments, turn overs, remittances and the like to such Beneficiary as prescribed hereunder, an amount equal to the product of such distributed, paid, turned over, remitted or otherwise
delivered amounts multiplied by a fraction, (a) the numerator of which is the then-outstanding balance of the Beneficiary Indebtedness held by such Beneficiary, and (b) the denominator of which is the then-outstanding balance of all
Beneficiary Indebtedness. It shall be the responsibility of MEP (and not any Subordinated Debt Party) to calculate and designate in writing to each applicable Subordinated Debt Party the applicable amount to be distributed, paid over, turned over,
remitted or otherwise transferred to a Beneficiary on a Pro Rata Basis, and until the applicable Subordinated Debt Party has received such written designation, at each applicable time, it shall not be required to make such distribution, payment
over, turn over, remittance or other transfer (unless directed in writing by all Beneficiaries), provided, however, that any error made by MEP in respect of such calculation or designation shall not relieve MEP or any other Obligor of
its obligations under any Beneficiary Indebtedness or of such Subordinated Debt Parties of its obligations hereunder. 

“Refinance” shall mean, in respect of any Indebtedness, to refinance, extend, renew, restructure or
replace, or to issue other Indebtedness in exchange or replacement for, such Indebtedness, in whole or in part. “Refinanced” “Refinances” and
“Refinancing” shall have correlative meanings. 
 “Refinancing
Indebtedness” shall mean Indebtedness that Refinances Senior Indebtedness. 

“Release” shall have the meaning assigned to such term in Section 4.3(a) hereof. 

“Senior Indebtedness” shall have the meaning assigned to the term “Obligations” in the Credit
Agreement, together with (a) Post-Petition Interest and (b) all fees, costs, charges, and expenses, including reasonable Attorney Costs, accrued or incurred after the commencement of any Insolvency Proceeding, whether or not allowed or
allowable in such Insolvency Proceeding. For the avoidance of doubt, to the extent any payment with respect to any Senior Indebtedness (whether by or on behalf of any Credit Party, as proceeds of Collateral, enforcement of any Lien, right of setoff
or otherwise) is declared to be a fraudulent conveyance or a preference in any respect, set aside or required to be paid to a debtor-in- possession, trustee, a creditor, any Subordinated Debt Party, receiver or similar Person, then the obligation or
part thereof originally intended to be satisfied shall, for the purposes of this Agreement and the rights and obligations of the Senior Lenders and each Subordinated Debt Party, be deemed to be reinstated and outstanding as if such payment had not
occurred. 

  
 6 

 “Senior Lenders” means, collectively, Bank of America,
N.A., as Administrative Agent, Swing Line Lender, and an L/C Issuer, together with the lenders and other L/C Issuers from time to time, and at each relevant time of determination, party to the Credit Agreement. 

“Subordinated Creditor” and “Subordinated Creditors” each shall
have the meaning set forth in the introductory paragraph hereof. 
 “Subordinated Debt Party” or
“Subordinated Debt Parties” shall mean, at any time, (a) each Subordinated Creditor, (b) each other Person to whom any of the Subordinated Indebtedness (including indemnification obligations) is, or
hereafter may become, owed or owing, and (c) the successors and permitted assigns of each of the foregoing. 

“Subordinated Indebtedness” means the Indebtedness of each Credit Party owing to any Affiliate (other
than another Credit Party) under the Support Agreements. 
 “Support Agreements” shall have the
meaning assigned to such term in the recitals hereof. 
 “Uniform Commercial Code” or “UCC”
shall mean the Uniform Commercial Code (or any similar or equivalent legislation) as in effect from time to time in any applicable jurisdiction. 

“Working Capital Agreement” shall have the meaning assigned to such term in the recitals hereof. 

1.2 Terms Generally 
 The
definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated,
supplemented or otherwise modified, (b) any reference herein (i) to any Person shall be construed to include such Person’s successors and permitted assigns and (ii) to any Credit Party shall be construed to include the Credit
Party as debtor and debtor-in-possession and any receiver or trustee for the Credit Party, as the case may be, in any Insolvency Proceeding, (c) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles or Sections shall be construed to refer to Articles or Sections of this Agreement, unless
noted otherwise, (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and
contract rights and (f) all references to the Senior Lenders include the Administrative Agent, each L/C Issuer and each of the Lenders individually and any combination thereof. 

1.3 Headings 
 The
division of this Agreement into articles, sections, paragraphs and other subdivisions and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation hereof. 

  
 7 

 1.4 Governing Law 

This Agreement shall be governed by, and interpreted and construed in accordance with, the laws of the State of New York. The Subordinated Debt
Parties irrevocably submit to the non-exclusive jurisdiction of the courts of the State of New York and the United States Federal courts sitting in Southern District of the State of New York, without prejudice to the rights of the Senior Lenders to
take proceedings in any other jurisdiction. 
 1.5 Severability 

If any provision of this Agreement shall be invalid, illegal or unenforceable in any respect in any jurisdiction, it shall not affect the
validity, legality or enforceability of such provision in any other jurisdiction or the validity, legality or enforceability of any other provision of this Agreement. 

1.6 Time of the Essence 

Time shall be of the essence of this Agreement. 

ARTICLE 2 
 POSTPONEMENT AND
SUBORDINATION OF PAYMENT 
 2.1 General Postponement and Subordination 

Except that any Subordinated Creditor may receive and retain Permitted Payments solely to the extent expressly permitted under
Section 7.1 below, until the Discharge of Senior Indebtedness: 
  

	 	a.	each Subordinated Debt Party’s right to payment of the Subordinated Indebtedness is hereby irrevocably made subject to and subordinate and junior in right of payment to all of the Senior Lenders’ right to
payment of the Senior Indebtedness; 

  

	 	b.	the Subordinated Indebtedness shall be and is hereby irrevocably expressly postponed and made subordinate in right of payment to the prior payment in full in cash of the Senior Indebtedness and the Discharge of Senior
Indebtedness; 

  

	 	c.	no Credit Party shall make or give, and no Subordinated Debt Party shall accept, any payment, transfer or other thing of value, on account of the Subordinated Indebtedness; 

 

	 	d.	no Subordinated Debt Party shall accept any repayment, prepayment or other satisfaction of all or any portion of the Subordinated Indebtedness (whether in cash, debt securities, Equity Interests, obligations, or other
property); and 

  

	 	e.	 any payment or distribution of any kind or character, whether in cash, debt securities, Equity Interests, obligations, or other property and whether
or not such payment or distribution is Collateral, proceeds of Collateral, or on account of Collateral, which may be payable or deliverable in respect of the Subordinated Indebtedness, or any Lien on Collateral, shall be paid or delivered directly
to the Administrative Agent (for application to the Senior Indebtedness) and the other Beneficiaries (for application to the applicable Other Senior Indebtedness), on a 

  
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Pro Rata Basis, and any such payments or distributions received by or distributed to any Subordinated Debt Party shall be turned over to the Administrative Agent (for application to the Senior
Indebtedness) and the other Beneficiaries (for application to the applicable Other Senior Indebtedness), on a Pro Rata Basis. 

2.2 Priority of Senior Indebtedness on Dissolution or Insolvency 

 

	 	a.	Notwithstanding anything contained herein to the contrary, in the event of an Insolvency Proceeding or other similar proceeding (a “Proceeding”) relating to a Credit Party, or any of its property
(whether voluntary or involuntary, partial or complete), or any other marshaling of the assets and liabilities of a Credit Party, the Beneficiary Indebtedness shall first be paid in full and a Discharge of Senior Indebtedness must have occurred
before any Subordinated Debt Party shall be entitled to receive or retain any payment or distribution, whether in cash, debt securities, Equity Interests, obligations, or other property, and whether or not such payment or distribution is Collateral,
proceeds of Collateral, or made on account of Collateral, which may be payable or deliverable in respect of the Subordinated Indebtedness or any Lien on Collateral, in each case whether under a Plan of Reorganization or otherwise. 

 

	 	b.	Until the Discharge of Senior Indebtedness, any payment or distribution of any kind or character, whether in cash, debt securities, Equity Interests, obligations, or other property, and whether or not such payment or
distribution is Collateral, proceeds of Collateral, or made on account of Collateral, which may be payable or deliverable in respect of the Subordinated Indebtedness or any Lien on Collateral, in each case whether under a Plan of Reorganization or
otherwise, shall be paid or delivered directly to the Administrative Agent (for application to the Senior Indebtedness) and the other Beneficiaries (for application to the applicable Other Senior Indebtedness), on a Pro Rata Basis, and any such
payments or distributions received by or distributed to any Subordinated Debt Party shall be turned over to the Administrative Agent (for application to the Senior Indebtedness) and the other Beneficiaries (for application to the applicable Other
Senior Indebtedness), on a Pro Rata Basis. 

 ARTICLE 3 

PRIORITY OF LIENS; LIEN SUBORDINATION 

3.1 No Liens Prohibited by Credit Agreement; No Liens Securing Subordinated Indebtedness Prior to Springing Lien Trigger Event 

 

	 	a.	So long as the Discharge of Senior Indebtedness has not occurred, none of the Obligors or other Credit Parties shall, or shall permit any of its or their Subsidiaries to, grant or permit, and (1) no Subordinated
Debt Party shall accept or pursue, any Liens on any asset or property prohibited by or in violation of the Credit Agreement, to secure or facilitate the payment or collection of any Subordinated Indebtedness, and (2) no Senior Lender shall
accept or pursue any Liens on any asset or property to secure or facilitate the payment or collection of any Senior Indebtedness without the Senior Lenders permitting the Subordinated Indebtedness to be secured thereby, with each such Lien to be
subject to the provisions of this Agreement in all respects, including without limitation, the lien subordination and payment over provisions contained herein. 

  
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	 	b.	So long as the Discharge of Senior Indebtedness has not occurred, none of the Obligors or other Credit Parties shall, or shall permit any of its or their Subsidiaries to, grant or permit, and no Subordinated Debt Party
shall accept or pursue, any Liens on any asset or property which would constitute Collateral, to secure or facilitate the payment or collection of any Subordinated Indebtedness, unless (i) it first has granted, or concurrently therewith
grants, a Lien on such asset or property to secure the Senior Indebtedness which is senior in right, priority, operation, effect and all other respects to any and all Liens now or hereafter held by or for the benefit of any Subordinated Debt Party
which now or hereafter secure Subordinated Indebtedness and pari passu with any and all Liens securing any Other Senior Indebtedness, and (ii) such Liens in favor of such Subordinated Debt Party are not prohibited under the Credit
Agreement, with each such Lien to be subject to the provisions of this Agreement in all respects, including without limitation, the lien subordination and payment over provisions contained herein. 

 

	 	c.	 To the extent that the provisions of Sections 3.1(a) and (b) are not complied with for any reason, without limiting any other
right or remedy available to the Administrative Agent or the other Senior Lenders or any Subordinated Debt Party, as the case may be, (A) if it has not already done so, each applicable Obligor or other Credit Party, or related Subsidiary, shall
immediately grant a Lien on such asset or property to secure the Senior Indebtedness which is senior in right, priority, operation, effect and all other respects to any and all Liens now or hereafter held by or for the benefit of any Subordinated
Debt Party which now or hereafter secure Subordinated Indebtedness and pari passu with any and all Liens securing any Other Senior Indebtedness, and a junior, priority Lien on such asset or property to secure the Subordinated Indebtedness (in all
respects subject to the terms of this Agreement and any applicable Loan Document), or both, as the case may be, and (B) each Subordinated Debt Party: (i) agrees to subordinate all such Liens, if any, securing the Subordinated Indebtedness,
whether now existing or hereafter arising (the “Impermissible Subordinated Debt Liens”) to all Liens securing any Senior Indebtedness, whether now existing or hereafter arising, regardless of the time, manner or order of
perfection of any such Impermissible Subordinated Debt Liens, and notwithstanding any failure of the Administrative Agent or the Senior Lenders to adequately perfect its or their Liens securing any Senior Indebtedness, the subordination of any Lien
securing any Senior Indebtedness to any Lien securing any other obligation of any Credit Party, or the avoidance, invalidation or lapse of any Lien securing any Senior Indebtedness; (ii) agrees to take no action to enforce any Impermissible
Subordinated Debt Liens; (iii) agrees to execute such terminations, releases and other documents as Administrative Agent requests in its sole discretion to release the Impermissible Subordinated Debt Liens or to assign the Impermissible
Subordinated Debt Liens for the benefit of the Senior Lenders, in Administrative Agent’s sole discretion, provided that contemporaneously therewith, the Senior Lenders, upon receiving a first-priority Lien on such asset or property to secure
the Senior Indebtedness as required under clause (A) above, permit a junior, second-priority Lien on such asset or property to be granted to secure the Subordinated Indebtedness (in all respects subject to the terms of this 

  
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Agreement), (iv) in furtherance of the foregoing, hereby irrevocably appoints Administrative Agent its attorney-in-fact, with full authority (subject to any constraints thereon set forth in
any Collateral Agreement) in the place and stead of each Subordinated Debt Party to execute and deliver any document or instrument which such Subordinated Debt Party may be required to deliver pursuant to this Section 3.1;
(v) agrees that no Subordinated Debt Party shall have any right to possession of any assets or property encumbered by or subject to the Impermissible Subordinated Debt Liens, whether by judicial action or otherwise; and (vi) agrees that,
so long as the Discharge of Senior Indebtedness has not occurred, any payment or distribution of any kind or character, whether in cash, debt securities, Equity Interests, obligations, or other property, and whether or not such payment or
distribution is collateral, proceeds of collateral, or on account of collateral, whether under a Plan of Reorganization or otherwise, received by or distributed to any Subordinated Debt Party as a result of such Impermissible Subordinated Debt Lien
shall be turned over to the Administrative Agent (for application to the Senior Indebtedness) and the other Beneficiaries (for application to the applicable Other Senior Indebtedness), on a Pro Rata Basis. 

3.2 Relative Priorities 
  

	 	a.	Notwithstanding the date, manner or order of grant, attachment or perfection of any Lien on the Collateral securing Senior Indebtedness, on one hand, or any Lien on the Collateral securing Subordinated Indebtedness
(including any Liens on assets or property prohibited by or in violation of the Credit Agreement), on the other hand, and notwithstanding any provision of the UCC or any other applicable law or the provisions of any security document or any other
Loan Document or any other circumstance whatsoever, and notwithstanding any failure of the Administrative Agent or the Senior Lenders to adequately perfect its or their Liens in the Collateral, the subordination of any Lien on the Collateral
securing any Senior Indebtedness to any Lien securing any other obligation of any Credit Party, or the avoidance, invalidation or lapse of any Lien on the Collateral securing any Senior Indebtedness, each Subordinated Debt Party hereby agrees that,
so long as the Discharge of Senior Indebtedness has not occurred, (a) any such Lien now or hereafter held by or for the benefit of any Senior Lender which now or hereafter secures Senior Indebtedness shall be senior in right, priority,
operation, effect and all other respects to any and all such Liens now or hereafter held by or for the benefit of any Subordinated Debt Party which now or hereafter secure Subordinated Indebtedness, (b) any such Lien now or hereafter held by or
for the benefit of any Subordinated Debt Party which now or hereafter secures Subordinated Indebtedness shall be junior and subordinate in right, priority, operation, effect and all other respects to any and all such Liens now or hereafter held by
or for the benefit of any Senior Lender which now or hereafter secures Senior Indebtedness, and (c) any and all such Liens now or hereafter held by or for the benefit of any Senior Lender which now or hereafter secure Senior Indebtedness shall
be and remain senior in right, priority, operation, effect and all other respects to any and all such Liens now or hereafter held by or for the benefit of any Subordinated Debt Party which now or hereafter secures Subordinated Indebtedness for all
purposes, whether or not any such Liens are subordinated in any respect to any other Lien securing any other obligation of the Obligor, any other Credit Party or any other Person. 

  
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	 	b.	Each Subordinated Debt Party acknowledges that a portion of the Senior Indebtedness represents debt that is revolving in nature and that the amount thereof that may be outstanding at any time or from time to time may be
increased or reduced and subsequently reborrowed, and that the terms of the Senior Indebtedness may be modified, extended or amended from time to time, and that the aggregate amount of the Senior Indebtedness may be increased, replaced or
refinanced, in each event, without notice to or consent by any Subordinated Debt Party and without affecting the provisions hereof. The lien priorities provided in this Section shall not be altered or otherwise affected by any such amendment,
modification, supplement, extension, repayment, reborrowing, increase, replacement, renewal, restatement or refinancing of either the Senior Indebtedness or the Subordinated Indebtedness, or any portion thereof. 

3.3 Bailment for Perfection of Certain Security Interests 

Each Subordinated Debt Party agrees that if it shall at any time hold a Lien on any Collateral that can be perfected by the possession or
control of such Collateral or of any account in which such Collateral is held, and if such Collateral or any such account is in fact in the possession or under the control of the Subordinated Debt Party or any of their respective agents or bailees
(such Collateral being referred to herein as the “Other Pledged or Controlled Collateral”), such Subordinated Debt Party solely for the purpose of perfecting the Beneficiaries’ Liens granted under the
related governing documents, also holds such Other Pledged or Controlled Collateral as bailee for the Beneficiaries. No Subordinated Debt Party shall charge any Beneficiary a fee for holding such Collateral as bailee pursuant hereto. 

3.4 Certain Agreements with Respect to Unenforceable Liens 

Notwithstanding anything to the contrary contained herein, if in any Insolvency Proceeding a determination is made that any Lien held by a
Senior Lender encumbering, or purporting to encumber, any Collateral is not valid or enforceable for any reason, or is avoided or avoidable under a Bankruptcy Law, then each Subordinated Debt Party agrees that, any distribution or recovery it may
receive with respect to, or allocable to, the value of the assets intended to constitute such Collateral or any proceeds thereof shall, on a Pro Rata Basis (for so long as the Discharge of Senior Indebtedness has not occurred), be segregated and
held in trust and forthwith paid over to the Administrative Agent (for the benefit of the Senior Lenders and application in payment of the Senior Indebtedness); provided that if in any Insolvency Proceeding a similar determination is made regarding
any Lien (as described above, mutatis mutandis to reflect Liens held by any other Beneficiary) held by any other Beneficiary, any such distribution or recovery shall, on a Pro Rata Basis, be held in trust and forthwith paid over to the
Administrative Agent (for application to the Senior Indebtedness) and the other Beneficiaries (for application to the applicable Other Senior Indebtedness), in each case, in the same form as received, if received in cash, or if not received in cash,
as agreed by the Beneficiaries. Until the Discharge of Senior Indebtedness occurs, each Subordinated Debt Party hereby appoints the Administrative Agent, and any officer or agent of the Administrative Agent, with full power of substitution, the
attorney-in-fact of each Subordinated Debt Party for the limited purpose of carrying out the provisions of this Section 3.4 for the benefit of the Senior Lenders and taking any action and executing any instrument that the Administrative
Agent may deem necessary or advisable to accomplish the purposes of this Section 3.4 for the benefit of the Senior Lenders, which appointment is irrevocable and coupled with an interest, and is subject to any constraints thereon set
forth in any Collateral Agreement. 

  
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 ARTICLE 4 

ENFORCEMENT OF RIGHTS AND REMEDIES 

4.1 Exercise of Rights and Remedies. 
  

	 	a.	So long as the Discharge of Senior Indebtedness has not occurred, whether or not any Insolvency Proceeding has been commenced or is pending, the Administrative Agent and the other Beneficiaries (if any) shall have the
exclusive right to enforce all rights and to exercise all remedies (including any right of setoff or recoupment), whether at law or in equity, against the Credit Parties and the Collateral (including making determinations regarding the release,
Disposition or restrictions with respect to the Collateral), or to commence or seek to commence any action or proceeding with respect to such rights or remedies (including any foreclosure action or proceeding or any Insolvency Proceeding), in each
case, without any consultation with or the consent of any Subordinated Debt Party, provided, however, a Subordinated Debt Party may exercise rights against the Credit Parties solely to the extent expressly permitted under
Section 4.1(b)(i) and (ii) below. 

  

	 	b.	So long as the Discharge of Senior Indebtedness has not occurred, whether or not any Insolvency Proceeding has been commenced or is pending, no Subordinated Debt Party shall have any right to enforce any rights or to
exercise any remedies (including any right of setoff or recoupment), whether at law or in equity, against Credit Parties or the Collateral (including making determinations regarding the release, Disposition or restrictions with respect to the
Collateral), or to commence or seek to commence any action or proceeding with respect to such rights or remedies (including any foreclosure action or proceeding or any Insolvency Proceeding), except (i) that a Subordinated Debt Party may
(A) file any responsive or defensive pleadings in opposition to any motion, claim, adversary proceeding or other pleading made by any Person objecting to or otherwise seeking the disallowance of the claims of a Subordinated Debt Party, in each
case, to the extent not in contravention of the terms of this Agreement, and (B) enforce rights and exercise remedies (other than initiating, or supporting any other Person (other than Administrative Agent or any other Beneficiary) in
initiating, an Insolvency Proceeding) against a Credit Party (but not against Collateral) at any time during which such Subordinated Debt Party is permitted to receive and retain Permitted Payments under Section 7.1 below, and
(ii) as otherwise provided in Section 5.4 hereof. 

 4.2 No Waiver by Senior Lenders 

Nothing contained herein shall prohibit or in any way limit the Administrative Agent or any other Senior Lender from opposing, challenging or
objecting to, in any Insolvency Proceeding or otherwise, any action taken, or any claim made, by a Subordinated Debt Party. 
 4.3
Automatic Release of Subordinated Liens. 
  

	 	a.	 If, (i) in connection with any Disposition of any Collateral permitted under the terms of the Loan Documents, or (ii) as required under
Section 6.13(b) of the Credit Agreement upon the occurrence of the Collateral Release Date (as defined 

  
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in the Credit Agreement), or (iii) in connection with the enforcement or exercise of any rights or remedies with respect to the Collateral, including any Disposition of Collateral,
(1) the Administrative Agent, for itself and on behalf of the other Senior Lenders, releases the Liens on such Collateral securing Senior Indebtedness or (2) such Liens securing the Senior Indebtedness are otherwise released as permitted
by the Loan Documents, (in each case, a “Release”), other than any such Release granted following the Discharge of Senior Indebtedness, then the Liens on such Collateral securing Subordinated Indebtedness shall be
automatically, unconditionally and simultaneously released, and each Subordinated Debt Party shall promptly execute and deliver to the Administrative Agent, the relevant Obligor or grantor such termination statements, releases and other documents as
the Administrative Agent or the relevant Obligor or grantor may reasonably request to effectively confirm such Release. 

  

	 	b.	Until the Discharge of Senior Indebtedness occurs, each Subordinated Debt Party hereby appoints the Administrative Agent, and any officer or agent of the Administrative Agent, with full power of substitution, as the
attorney-in-fact of each Subordinated Debt Party for the purpose of carrying out the provisions of this Section 4.3 and taking any action and executing any instrument that the Administrative Agent may deem necessary or advisable to
accomplish the purposes of this Section 4.3 (including any endorsements or other instruments of transfer or release), which appointment is irrevocable and coupled with an interest. 

4.4 Insurance and Condemnation Awards 

So long as the Discharge of Senior Indebtedness has not occurred, the Administrative Agent and the other Beneficiaries shall have the exclusive
right, subject to the rights of the Obligors under the Loan Documents, to settle and adjust claims in respect of Collateral under policies of insurance covering Collateral and to approve any award granted in any condemnation or similar proceeding,
or any deed in lieu of condemnation, in respect of the Collateral. All proceeds of any such policy and any such award, or any payments with respect to a deed in lieu of condemnation, shall, prior to the Discharge of Senior Indebtedness and subject
to the rights of the Obligors under the Loan Documents, be paid to the Administrative Agent (for application to the Senior Indebtedness) and the other Beneficiaries (for application to the applicable Other Senior Indebtedness), on a Pro Rata Basis,
and, subject to the rights of the Obligors under the Loan Documents, as proceeds of Collateral. Until the Discharge of Senior Indebtedness has occurred, if a Subordinated Debt Party shall, at any time, receive any proceeds of any such insurance
policy or any such award or payment, it shall transfer and pay over such proceeds to each of the Beneficiaries in accordance with Section 6.1. 

ARTICLE 5 
 NO INTERFERENCE

 5.1 Prohibited Acts. 

Without in any way limiting the scope of Section 4.1 above, so long as the Discharge of Senior Indebtedness has not occurred, but
subject always to the provisions of Section 11.1(a), each Subordinated Debt Party agrees, whether or not any Insolvency Proceeding or other Proceeding has been commenced or is pending, that it will not, and hereby waives any right to:

  

	 	a.	initiate, or support any other Person (other than Administrative Agent or any other Beneficiary) in initiating, an Insolvency Proceeding; 

  
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	 	b.	take, or support any other Person (other than Administrative Agent or any other Beneficiary) in taking, any Enforcement Action, except that Subordinated Creditor may receive and retain Permitted Payments solely to the
extent expressly permitted under Section 7.1 below; 

  

	 	c.	contest, protest or object to (or support any other Person contesting) any foreclosure action or proceeding (including an Insolvency Proceeding) brought by the Administrative Agent or any other Beneficiary, or any other
enforcement or exercise by Administrative Agent or any other Beneficiary of any rights or remedies relating to the Senior Indebtedness and the Collateral; 

  

	 	d.	contest, protest or object to (or support any other Person contesting) the forbearance by the Administrative Agent or any other Beneficiary from commencing or pursuing any foreclosure action or proceeding or any other
enforcement or exercise of any rights or remedies with respect to the Senior Indebtedness and the Collateral; 

  

	 	e.	take or receive any Collateral, or any proceeds thereof or payment with respect thereto, in connection with the exercise of any right or enforcement of any remedy (including any right of setoff) with respect to any
Subordinated Indebtedness, any Collateral or in connection with any insurance policy award under a policy of insurance relating to any Collateral (including any mortgagee policy of insurance) or any condemnation award (or deed in lieu of
condemnation) relating to any Collateral; 

  

	 	f.	take (or support any other Person in taking) any action that would, or could reasonably be expected to, hinder, in any manner, any exercise of any rights or remedies of the Beneficiaries under any definitive
documentation entered into by the Credit Parties evidencing Beneficiary Indebtedness, including under the Loan Documents (including any Disposition of Collateral) by foreclosure or otherwise; 

 

	 	g.	contest, protest or object to (or support any other Person in objecting to) the manner in which the Administrative Agent or any other Senior Lender may seek to enforce or collect the Senior Indebtedness or any Liens,
regardless of whether any action or failure to act by or on behalf of the Administrative Agent or any other Senior Lender is, or could be, adverse to the interests of a Subordinated Debt Party, and will not assert (or support any other Person in
asserting), and hereby waives, to the fullest extent permitted by law, any right to demand, request, plead or otherwise assert or claim the benefit of any marshaling, appraisal, valuation or other similar right that may be available under applicable
law with respect to the Collateral or any similar rights a junior creditor may have under applicable law; 

  

	 	h.	 attempt, directly or indirectly, whether by judicial proceeding or otherwise, to challenge or question (or support any other Person in challenging or
questioning) the validity, priority or enforceability of any Senior Indebtedness, the priority, perfection, validity or enforceability of any Lien on the Collateral, or the validity or enforceability of any of the Loan Documents, including this
Agreement (and 

  
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any automatic reinstatement thereof under Section 11.1 below), or the validity or enforceability of the priorities, rights or obligations established by this Agreement;

  

	 	i.	contest, protest or object to (or support any other Person contesting) any Disposition of all or any part of the Collateral, provided that the Liens of Subordinated Debt Parties attach to the net proceeds of the
Disposition with at least the same priority and validity as the Liens held by Subordinated Debt Parties on such Collateral, and the Liens remain subject to the terms of this Agreement; 

 

	 	j.	contest, protest or object to (or support any other Person contesting) any request of the Administrative Agent or the other Senior Lenders for (1) relief from the automatic stay imposed by Section 362 of the
Bankruptcy Code or (2) any request for adequate protection within the meaning of Section 361 of the Bankruptcy Code; 

  

	 	k.	contest, protest or object to (or support any other Person contesting) the payment of Post-Petition Interest, or any fees, costs, charges and expenses to the Administrative Agent or any Senior Lender under
Section 506(b) of the Bankruptcy Code; 

  

	 	l.	unless otherwise agreed by the Administrative Agent in writing, (i) file any motion, application or other pleading seeking affirmative relief, including without limitation for the appointment of a trustee or
examiner in an Insolvency Proceeding, for the conversion of the case to a liquidation proceeding, for the substantive consolidation of the Credit Party’s bankruptcy case with the case of any other entity, for the creation of a separate official
committee representing only the Subordinated Creditor or the Subordinated Debt Parties, or any other form of affirmative relief of any other kind or nature, or (ii) file any objection or other responsive pleading opposing any relief requested
by any Senior Lender or support any other Person taking any such action; 

  

	 	m.	In any Insolvency Proceeding or other Proceeding of any Credit Party, if any Credit Party shall, as debtor(s)-in-possession, move for approval of financing, which for avoidance of doubt, may include a roll-up of the
Senior Indebtedness under the Credit Agreement (“DIP Financing”) to be provided by one or more lenders, which, for avoidance of doubt, may include the Senior Lenders (the “DIP Lenders”), under
Section 364 of the Bankruptcy Code or the use of cash collateral or the sale of property that constitutes Collateral under Section 363 of the Bankruptcy Code or pursuant to any Plan of Reorganization, each Subordinated Creditor agrees that
it will raise no objection to, nor support any Person objecting to, and shall be deemed to have consented to, any such financing or to the Liens on the Collateral securing the same (“DIP Financing Liens”) or to any use of
cash collateral or sale (whether under Section 363 of the Bankruptcy Code or pursuant to any Plan of Reorganization) of property that constitutes Collateral (including any bid, sale procedure or other orders in respect thereof), unless
Administrative Agent shall then oppose or object to such DIP Financing or such DIP Financing Liens or use of cash collateral or sale of Collateral (and each Subordinated Debt Party will consent, and is deemed to have consented, to the subordination
of its Liens with respect to such Collateral); 

  
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	 	n.	provide (or support any Person other than a Beneficiary in providing) DIP Financing to any Credit Party secured by Liens equal or senior in priority to the Liens securing any Senior Indebtedness, provided,
however, that if one or more Senior Lenders, on the one hand, and one or more other Beneficiaries, on the other hand, propose to provide competing DIP financings, no Subordinated Debt Party shall support any Beneficiary in providing DIP
Financing, unless all of the applicable Beneficiaries proposing to provide such competing DIP financings so agree, and provided, further if (i) the Senior Lenders are provided reasonable advance notice and opportunity to provide
DIP Financing, but no Senior Lender offers to provide such DIP Financing and (ii) no other Person (other than a Subordinated Debt Party), after having received reasonable advance notice and opportunity to provide DIP Financing, offers to
provide DIP Financing on terms acceptable to the Senior Lenders, in each case on or before the date of any hearing to approve DIP Financing, then one or more Subordinated Debt Parties may seek to provide DIP Financing secured by Liens equal or
senior in priority to the Liens securing any Senior Indebtedness and the Senior Lenders may object to such DIP Financing; 

  

	 	o.	oppose, seek to challenge or support any Person challenging, the Senior Indebtedness, any Lien securing the Senior Indebtedness, or any request for the allowance and payment of Post-Petition Interest and post-petition
fees, costs, charges and expenses; 

  

	 	p.	seek adequate protection, within the meaning of section 361 of the Bankruptcy Code, of any interest in any Collateral, in each case without the Administrative Agent’s prior written consent, provided, however, that
if in an Insolvency Proceeding Senior Lenders are granted adequate protection in the form of a Lien on additional property as collateral, a Subordinated Debt Party holding a Lien at the time of the filing of such Insolvency Proceeding may seek or
request adequate protection in the form of a junior Lien on such additional collateral, which Lien shall automatically be subject to the terms of this Agreement in all respects, including without limitation, the payment-over provisions herein
contained, and shall be subordinated to the Liens of the Senior Lenders (including adequate protection Liens) and subordinated to any DIP Financing Liens (and all obligations relating thereto), in each case on the same basis as the Subordinated Debt
Party’s other Liens are subordinated herein; 

  

	 	q.	propose, sponsor, support, vote in favor of or agree to (i) any Non-Conforming Plan of Reorganization or (ii) any Plan of Reorganization, directly or indirectly, that is pursued pursuant to
Section 1129(b)(1) of the Bankruptcy Code; and 

  

	 	r.	seek relief from the automatic stay or any other stay in an Insolvency Proceeding or other Proceeding in respect of Collateral, a Creditor Party or its property. 

5.2 Additional Agreements 
  

	 	a.	At any time prior to the Discharge of Senior Indebtedness, in any Insolvency Proceeding or other Proceeding of any Credit Party or its property: 

 

	 	i.	 the Administrative Agent shall have the right, but not the obligation, to file claims and proofs of claim in respect of the Subordinated

  
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Indebtedness, vote any and all such claims in connection with any Plan of Reorganization, and take such other action as Administrative Agent may so elect in its discretion; 

 

	 	ii.	each Subordinated Debt Party hereby grants the Administrative Agent an irrevocable proxy coupled with a pledge to vote or cause to be voted any and all claims of such Subordinated Debt Party arising in connection with
any Plan of Reorganization, in proportion to the Senior Indebtedness on a Pro Rata Basis (or as otherwise agreed by all of the Beneficiaries); 

  

	 	iii.	unless Administrative Agent has invoked its rights under this Section 5.2 or another Beneficiary has invoked any rights it may have to file claims or proofs of claims on account of the Subordinated
Indebtedness in an Insolvency Proceeding or other Proceeding, each Subordinated Debt Party shall timely file a claim or proof of claim or claims or proofs of claim, each in the form required in such Proceedings, for the full outstanding amount of
the Subordinated Indebtedness; 

  

	 	iv.	each Subordinated Debt Party shall cause said claim or proofs of claim, whether filed by such Subordinated Debt Party, the Administrative Agent, or another Beneficiary to be approved by the Beneficiaries, and all
payments and other distributions in respect thereof to be made directly to each of the Administrative Agent (for application to the Senior Indebtedness) and the other Beneficiaries (for application to the applicable Other Senior Indebtedness), on a
Pro Rata Basis; and 

  

	 	v.	Each of the Subordinated Debt Parties agrees that it will support, vote in favor of and agree to any Plan of Reorganization proposed or supported by the Beneficiaries. 

 

	 	b.	Each Subordinated Debt Party shall execute and deliver to the Administrative Agent such further proofs of claim, assignments of claim and other instruments confirming the authorization referred to in the foregoing
clause (a), and any powers of attorney confirming the rights of the Senior Lenders arising thereunder, and shall take such other actions as may be requested by the Senior Lenders or their representative in connection therewith in order to
enable the Senior Lenders or their representative to enforce any and all claims in respect of the Subordinated Indebtedness at any time prior to the Discharge of Senior Indebtedness. 

 

	 	c.	Each Subordinated Debt Party hereby irrevocably agrees that the Administrative Agent may, at its sole discretion, in the name of each such Subordinated Debt Party or otherwise, demand, sue for, collect, and receive any
receipt for any and all such payments or distributions which would be required hereunder to be applied to the Senior Indebtedness, and any such receipts shall be distributed to the Administrative Agent (for application to the Senior Indebtedness),
and file, prove and vote or consent in any Proceeding with respect to any and all claims of each of the Subordinated Debt Parties relating to the Subordinated Indebtedness at any time prior to the Discharge of Senior Indebtedness. 

  
 18 

 5.3 Certain Additional Waivers by Subordinated Debt Parties 

Each Subordinated Debt Party waives any claim it or they may hereafter have against any Senior Lender arising out of any action taken or not
taken by Administrative Agent or the other Senior Lenders in an Insolvency Proceeding, including without limitation, (a) the election by any Senior Lender of the application of Section 1111(b)(2) of the Bankruptcy Code, or any
comparable provision of any other Bankruptcy Law, or (b) any use of cash collateral or DIP Financing authorized in any Insolvency Proceeding or other Proceeding, or (c) any grant of a security interest, any payment, or award of adequate
protection within the meaning of section 361 of the Bankruptcy Code, in any Insolvency Proceeding, or (d) any sale or other Disposition of Collateral or in connection with any Plan of Reorganization. In addition, no Subordinated Debt Party
shall assert or enforce, at any time prior to the Discharge of Senior Indebtedness, any claim under Section 506(c) of the Bankruptcy Code. 

5.4 Permitted Actions 

Notwithstanding anything in this Agreement to the contrary, no provision of this Agreement shall prohibit, limit, or restrict the Subordinated
Debt Parties from taking any of the following actions: (a) any action to the extent necessary to (i) prevent the running of any applicable statute of limitations or similar restriction on claims, provided that no such action shall be filed
sooner than 90 days before the expiration of any such applicable statute of limitations or similar restriction on claims, or (ii) assert a compulsory cross claim or counterclaim against any Obligor, and (b) any action to seek and obtain
specific performance or injunctive relief to compel an Obligor to comply with (or not violate or breach) any non-payment obligation under any Support Agreement, so long as it is (x) not accompanied by a claim for monetary damages or a request
for payment of any portion of the Subordinated Indebtedness, (y) not an Enforcement Action, and (z) does not seek to initiate an Insolvency Proceeding; provided further, in the case of (a) or (b), such permitted actions shall be
subject to and not in contravention of the terms of this Agreement, including the payment over provisions contained herein. 
 ARTICLE 6 

ADDITIONAL PAYMENT PROVISIONS; PAYMENT OVER 

6.1 Payment Over 
 So long
as the Discharge of Senior Indebtedness has not occurred, any payment or distribution of any kind or character, whether in cash, debt securities, Equity Interests, obligations, or other property, and whether or not such payment or distribution is
Collateral, proceeds of Collateral, or on account of Collateral, in each case whether or not under a Plan of Reorganization or otherwise, together with the property referred to in Section 2.1(e), Section 2.2,
Section 3.1(c) and Section 4.4, received by a Subordinated Debt Party in respect of the Subordinated Indebtedness, in each case other than Permitted Payments under Section 7.1, shall be segregated and held in trust
and forthwith transferred or paid over to the Administrative Agent (for application to the Senior Indebtedness) and the other Beneficiaries (for application to the applicable Other Senior Indebtedness), on a Pro Rata Basis, in each case (i) in
the same form as received, if received in the form of cash, and to the extent not received in the form of cash, then as directed in a writing signed by all of the Beneficiaries, and (ii) together with any necessary endorsements. Until the
Discharge of Senior Indebtedness occurs, each Subordinated Creditor (a) agrees to reimburse Administrative Agent for all reasonable costs, including reasonable attorneys’ fees, incurred by Administrative Agent in the course of collecting
said sums should a Subordinated Debt Party fail to voluntarily turn the same over to the applicable Beneficiary in accordance with this Agreement and upon demand, and (b) hereby appoints the Administrative Agent, and any officer or agent of the
Administrative Agent, with full power of substitution, the attorney-in-fact of each Subordinated Debt Party for the 

  
 19 

 
purpose of carrying out the provisions of this Section 6.1 for the benefit of the Senior Lenders and taking any action and executing any instrument that the Administrative Agent may
deem necessary or advisable to accomplish the purposes of this Section 6.1 for the benefit of the Senior Lenders, which appointment is irrevocable and coupled with an interest. 

6.2 Application of Payments 

All payments and distributions received by the Administrative Agent or the Senior Lenders pursuant to the terms of this Agreement and in
respect of the Subordinated Indebtedness (other than Permitted Payments), to the extent received in or converted into cash, may be applied by the Senior Lenders first to the payment of any and all reasonable expenses (including reasonable legal fees
and expenses) paid or incurred by the Administrative Agent in enforcing this Agreement, or in endeavoring to collect or realize upon any of the Subordinated Indebtedness or any Collateral, in each case as provided herein, and any balance thereof
shall, solely as between the Subordinated Debt Parties and the Senior Lenders, be applied by the Senior Lenders in such order of application as the Senior Lenders may from time to time elect, toward the payment of the Senior Indebtedness remaining
unpaid. 
 6.3 Payment in Full on Senior Indebtedness 

For purposes of this Agreement, the Senior Indebtedness shall not be deemed to have been paid in full until the Discharge of Senior
Indebtedness shall have occurred. 
 6.4 Legend on Subordinated Debt Instruments 

The Subordinated Creditors shall, substantially simultaneously with the execution and delivery hereof, cause a conspicuous legend to be placed
on each of the instruments evidencing Subordinated Indebtedness to the following effect: 
 “This instrument, the indebtedness evidenced
hereby or any lien or security interest on Collateral securing such indebtedness, is subordinated, in the manner and to the extent set forth in an agreement dated             ,
     (as such agreement may from time to time be amended, restated, modified, or supplemented, the “Subordination Agreement”), by the maker and payee of this instrument in favor of Bank of America, N.A. as
Administrative Agent for the “Lenders” referred to therein, to all Senior Indebtedness as defined therein), and each holder of this instrument, by its acceptance hereof, shall be bound by the Subordination Agreement.”

 and upon request by the Administrative Agent deliver a copy of each of the instruments evidencing Subordinated Debt, as so marked, to the Administrative
Agent within 60 days following such request. In the event of any conflict between any instrument evidencing Subordinated Indebtedness and the terms of this Agreement, the terms of this Agreement shall control. 

ARTICLE 7 
 PERMITTED PAYMENTS

 7.1 Permitted Payments 

At any time other than during the continuation of a Default or Event of Default, and subject to the other conditions contained in
Section 7.13 of the Credit Agreement, each Subordinated Debt Party shall be entitled to receive and retain payments (“Permitted Payments”) on account of any Subordinated Indebtedness in accordance
with the terms of such Subordinated Indebtedness. 

  
 20 

 ARTICLE 8 

SUBROGATION 
 8.1 Right
of Subrogation and Related Restrictions 
 If a Subordinated Debt Party pays or distributes cash, property, or other assets to the
Administrative Agent for the benefit of the Senior Lenders, the Subordinated Debt Party will be subrogated to the rights of the Administrative Agent and Senior Lenders with respect to the value of the payment or distribution; provided, however, the
Subordinated Debt Party shall not exercise any rights which it may acquire by way of subrogation or contribution under this Agreement, as a result of any payment made hereunder or otherwise, until this Agreement has ceased to be effective in
accordance with Section 11.1(a). 
 8.2 Transfer by Subrogation 

If (a) the Administrative Agent on behalf of the Senior Lenders receives payment of any of the Subordinated Indebtedness and (b) the
Discharge of Senior Indebtedness has occurred, then the Senior Lenders will each, at the applicable Subordinated Creditor’s request and expense, execute and deliver to the Subordinated Creditor appropriate documents, without recourse and
without representation or warranty (except as to their right to transfer such Senior Indebtedness and related security free of encumbrances created by the Senior Lenders), necessary to evidence the transfer by subrogation to the Subordinated
Creditor of an interest in its Senior Indebtedness and any security held therefor resulting from such payment of the Subordinated Indebtedness to the Administrative Agent. 

ARTICLE 9 
 DEALINGS WITH
OBLIGORS 
 9.1 Restricted Dealings by Subordinated Creditors 

Except with the prior written consent of the Administrative Agent with the consent of the Required Lenders, no Subordinated Debt Party shall:

  

	 	a.	assign all or any portion of the Subordinated Indebtedness in favor of any Person other than the Senior Lenders unless such Person has agreed in writing with the Administrative Agent to be bound by the provisions hereof
in the place and stead of the Subordinated Creditor; or 

  

	 	b.	commence, or join with any other Person in commencing, any Proceeding respecting any Obligor, any Subsidiary of an Obligor or any other Credit Party. 

9.2 Permitted Dealings by Senior Lenders 

Notwithstanding anything in this Agreement, each Subordinated Debt Party acknowledges and agrees each of the Senior Lenders shall be entitled
to: 
  

	 	a.	lend monies or otherwise extend credit or accommodations to any Obligor or other Credit Party as part of the Senior Indebtedness or otherwise; provided, however, that loans, credit, or accommodations not
constituting Senior Indebtedness are not entitled to the benefits of this Agreement; 

  
 21 

	 	b.	agree to any change in, amendment to, waiver of, or departure from, any term of the Credit Agreement or any other Loan Document including, without limitation, any amendment, renewal or extension of such agreement or
increase in the payment obligations of the Obligor or other Credit Party under any such Loan Documents; 

  

	 	c.	grant time, renewals, extensions, releases, discharges or other indulgences or forbearances to any Obligor or other Credit Party in respect of the Senior Indebtedness; 

 

	 	d.	waive timely and strict compliance with or refrain from exercising any rights under or relating to the Senior Indebtedness; 

  

	 	e.	accept or make any compositions, arrangements, plans of reorganization or compromises with any Person as any of the Senior Lenders may deem appropriate in connection with the Senior Indebtedness; 

 

	 	f.	change, whether by addition, substitution, removal, succession, assignment, grant of participation, transfer or otherwise, any of the Senior Lenders; 

 

	 	g.	acquire, give up, vary, exchange, release, discharge or otherwise deal with or fail to deal with any security interests, guaranties or collateral relating to any Senior Indebtedness, this Agreement or any Loan Document
or allow any Obligor, other Credit Party, or any other Person to deal with the property which is subject to such security interests, guaranties or collateral, all as the Senior Lenders may deem appropriate; and/or 

 

	 	h.	abstain from taking, protecting, securing, registering, filing, recording, renewing, perfecting, insuring or realizing upon any security interests, guaranties or collateral for any Senior Indebtedness; and no loss in
respect of any of the security interests or guaranties received or held for and on behalf of the Senior Lenders, whether occasioned by fault, omission or negligence of any kind, whether of the Senior Lenders or otherwise, shall in any way limit or
impair the liability of a Subordinated Debt Party or the rights of the Senior Lenders under this Agreement; 

 all of which may be done
without notice to or consent of a Subordinated Debt Party and without impairing, releasing or otherwise affecting any rights or obligations of any Subordinated Debt Party hereunder or any rights of the Senior Lenders hereunder. 

ARTICLE 10 
 REPRESENTATIONS
AND WARRANTIES 
 10.1 Representations and Warranties 

Each Subordinated Creditor hereby represents and warrants to the Senior Lenders that: 

 

	 	a.	such Subordinated Creditor is duly incorporated, formed or amalgamated, as the case may be, and validly existing under the laws of its jurisdiction of incorporation, formation, or amalgamation, as the case may be;

  
 22 

	 	b.	such Subordinated Creditor has all necessary corporate or equivalent power and authority to enter into this Agreement; 

  

	 	c.	such Subordinated Creditor has taken all necessary corporate or equivalent action to authorize the creation, execution, delivery and performance of this Agreement; 

 

	 	d.	this Agreement constitutes a valid and legally binding obligation of such Subordinated Creditor, enforceable against such Subordinated Creditor in accordance with its terms, subject as to enforcement to bankruptcy,
insolvency, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and general equity principles; and 

 

	 	e.	neither the execution and delivery of this Agreement, nor compliance with the terms and conditions hereof (i) will result in a violation of any formation or governance documents of such Subordinated Creditor or any
applicable law, order, judgment, injunction, award or decree; (ii) will result in a breach of, or constitute a default under, any loan agreement, indenture, trust deed or any other material agreement or instrument to which such Subordinated
Creditor is a party or by which it or its assets are bound; or (iii) requires any approval or consent of any governmental authority having jurisdiction except such as has already been obtained and is in full force and effect. 

ARTICLE 11 
 CONTINUING
SUBORDINATION 
 11.1 Continuing Subordination; Reinstatement 

This Agreement shall create a continuing subordination and shall: 
  

	 	a.	remain in full force and effect until the earlier of: (i) the Discharge of Senior Indebtedness has occurred, or (ii) 366 days after the Discharge of Subordinated Indebtedness has occurred;
provided, however, that if an Insolvency Proceeding is initiated on or before the date that is 366 days after the Discharge of Subordinated Indebtedness has occurred, this Agreement shall remain in full force and effect until the
Discharge of Senior Indebtedness has occurred and, provided, further, that Section 9.1(b) shall remain in effect until 91 days after such time; 

 

	 	b.	be binding upon each Subordinated Debt Party and its successors and assigns; and 

  

	 	c.	inure, together with the rights and remedies of the Senior Lenders, to the benefit of and be enforceable by the Senior Lenders (through the Administrative Agent), and their successors and permitted assigns for their
benefit and for the benefit of any other Person entitled to the benefit of any Loan Documents from time to time, including any permitted assignee of some or all of the Loan Documents. 

Each Subordinated Debt Party agrees that, following termination hereof, this Subordination Agreement shall be automatically reinstated if for any reason any
payment or transfer made on account of the Senior Indebtedness or Subordinated Indebtedness, as the case may be, is rescinded, avoided or must be 

  
 23 

 
otherwise restored or returned by any Senior Lender or Subordinated Debt Party, as the case may be, whether as a result of any Insolvency Proceedings in bankruptcy or reorganization or otherwise,
in each case retroactive to the date of such payment or transfer. 
 11.2 Other Obligations not Affected 

The subordination provided for herein is in addition to and not in substitution for any other agreement or any other security by whomsoever
given or at any time held by any of the Senior Lenders in respect of the Senior Indebtedness, and the Senior Lenders shall at all times have the right to proceed against or realize upon all or any portion of any other agreement or any security or
any other monies or assets to which the Senior Lenders may become entitled or have a claim in such order and in such manner as the Senior Lenders in their sole discretion may deem appropriate. 

11.3 Acknowledgment of Documentation 

The Subordinated Creditor hereby acknowledges that it is familiar with and understands the terms of the Credit Agreement and all other Loan
Documents. The Subordinated Creditor shall ensure that the Obligor provides such copies as the Subordinated Creditor wishes to receive of all amendments, modifications or supplements to any of the aforementioned documents and of any other documents,
instruments or agreements which are executed in the future pursuant to which Senior Indebtedness may arise. None of the Senior Lenders shall in any manner have any obligation to ensure such receipt nor shall lack of receipt in any way affect the
absolute and unconditional nature of the Subordinated Debt Parties’ obligations hereunder in respect of the Senior Indebtedness thereby created or arising. 

ARTICLE 12 
 NO LIABILITY;
OBLIGATIONS ABSOLUTE 
 12.1 Information 

Neither Administrative Agent nor any Senior Lender shall have any duty to disclose to any Subordinated Debt Party any information relating to
any Credit Party or any of their Subsidiaries, or any other circumstance bearing upon the risk of nonpayment of any of the Senior Indebtedness or the Subordinated Indebtedness, as the case may be, that is known or becomes known to any of them or any
of their Affiliates. 
 12.2 No Warranties or Liability. 
  

	 	a.	Each Subordinated Creditor acknowledges and agrees that neither Administrative Agent nor any other Senior Lender has made any express or implied representation or warranty of any kind and no Senior Lender shall have any
express or implied duty to any Subordinated Debt Party. 

  

	 	b.	Each Subordinated Debt Party agrees that no Senior Lender shall have any liability to any Subordinated Debt Party, and hereby waives any claim against any Senior Lender, arising out of any and all actions which the
Administrative Agent or the other Senior Lenders may take or permit or omit to take with respect to (i) the Loan Documents, (ii) the collection of the Senior Indebtedness, (iii) any Lien securing the Senior Indebtedness, or
(iv) the maintenance of, the preservation of, the foreclosure upon or the Disposition of any Collateral, regardless of whether an Insolvency Proceeding has been commenced. 

  
 24 

 12.3 Rights of Administrative Agent and Senior Lenders Not Affected 

All rights and interests of the Administrative Agent and the other Senior Lenders under this Agreement, and all agreements and obligations of
the Subordinated Debt Parties, and the Credit Parties under this Agreement, shall remain in full force and effect irrespective of: (a) any lack of collectability, validity or enforceability of all or any portion of this Agreement, the Senior
Indebtedness or any of the Loan Documents due to incapacity, lack of power of authority, discharge or for any reason whatsoever (other than a Discharge of Senior Indebtedness); (b) any change in the amount of interest accruing on, time, manner
or place of payment of, or in any other terms or conditions of, all or any of the Senior Indebtedness, or any other amendment or waiver of, or any consent to departure from, any of the Loan Documents, including, without limitation, changes in the
terms of disbursement or repayment of any loan proceeds, any modifications, increases, extensions, renewals, rearrangements, restatements, acceleration, settlement or compromise of the Senior Indebtedness or the advancement of additional funds by
the Administrative Agent and the other Senior Lenders in their discretion; (c) the timing, manner and order of application of any payments and credits made by the Administrative Agent and the other Senior Lenders on the Senior Indebtedness;
(d) the Administrative Agent and the other Senior Lenders’ forbearance or agreement to forbear from enforcing any right or remedy related to the Senior Indebtedness, including rights and remedies against any obligor on the Senior
Indebtedness; (e) any exchange of Collateral, release or non-perfection of any Lien, subordination of any Lien, or any release of any obligor on the Senior Indebtedness or any release, amendment or waiver of, or consent to departure from or
indulgence with respect to, any Loan Documents, for all or any of the Senior Indebtedness; (f) any future law, regulation, or order of any governmental authority (whether of right or in fact) purporting to affect any term or provision of the
Senior Indebtedness or the Loan Documents; (g) any setoff, defense or counterclaim whatsoever (in any case, whether based on contract, tort or any other theory) or any other circumstance in respect of this Agreement, the Senior Indebtedness or
any Loan Documents that might otherwise constitute a defense available to the Subordinated Creditor, the Subordinated Debt Parties, any Credit Party or any other obligor of the Senior Indebtedness, or a discharge of the Senior Indebtedness, any
Credit Party or any Senior Indebtedness (other than a Discharge of Senior Indebtedness); or (h) any action taken or refrained from taking by the Administrative Agent and the other Senior Lenders regarding the Senior Indebtedness that the
Administrative Agent and the Senior Lenders deem appropriate. 
 ARTICLE 13 

GENERAL PROVISIONS 
 13.1
Notices 
 All notices and other communications provided for hereunder shall be given in the form and manner prescribed by
Section 10.02 of the Credit Agreement. Until otherwise notified by EEP, all such notices to any Subordinated Creditor may be given to EEP on behalf of all such Subordinated Creditors, at the “Address for Notices” following the
signature block of EEP, and shall be sufficiently delivered to all Subordinated Creditors if so given. 
 13.2 Amendments and Waivers

  

	 	a.	No provision of this Agreement may be amended, waived, discharged or terminated orally nor may any breach of any of the provisions of this Agreement be waived or discharged orally, and any such amendment, waiver,
discharge or termination may only be made in writing signed by the Administrative Agent on behalf of the requisite Senior Lenders, or by the Senior Lenders, and if such amendment is intended to bind the Subordinated Creditor, by the Subordinated
Creditor. 

  
 25 

	 	b.	No failure on the part of any party to exercise, and no delay in exercising, any right, power or privilege hereunder shall operate as a waiver thereof unless specifically waived in writing, nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 

 

	 	c.	Any waiver of any provision of this Agreement or consent to any departure by any party therefrom shall be effective only in the specific instance and for the specific purpose for which given and shall not in any way be
or be construed as a waiver of any future requirement. 

  

	 	d.	In addition, no term or provision of any in-effect subordination agreement (including, without limitation, the NPA Subordination Agreement) that is executed by a Subordinated Debt Party in favor of a Beneficiary (which
relates to the Subordinated Indebtedness as the Indebtedness subordinated thereunder to the Beneficiary Indebtedness therein designated as “senior indebtedness”) may be amended, waived, supplemented or otherwise modified without the prior
written consent of the Administrative Agent if such amendment, waiver, supplement or other modification (i) provides, or proposes, any term or provision more advantageous to holders of such Beneficiary Indebtedness than those provided to
Administrative Agent and the other Senior Lenders under this Agreement (which such consent, in the case of this clause (i), shall not be unreasonably withheld, delayed or conditioned) or (ii) adversely affects the Administrative Agent or any
other Senior Lender. For the avoidance of doubt, any termination of any such other subordination agreement shall not require the consent of the Administrative Agent. 

13.3 Assignment by Lenders 
  

	 	a.	Each Subordinated Debt Party acknowledges and agrees that each of the Senior Lenders shall have the right, subject to the terms of the Loan Documents, to assign, sell, participate or otherwise transfer all or any
portion of its rights and benefits under the Loan Documents, and in connection therewith, this Agreement, or both, and any Lien without the consent of the Subordinated Debt Parties. This Agreement shall extend to and inure to the benefit of each of
the Senior Lenders and their respective successors and assigns permitted pursuant to the terms of the Loan Documents. 

  

	 	b.	Notwithstanding any provision herein or referred to herein, nothing shall prohibit or otherwise restrict the Senior Lenders from assigning all, but not part, of the Senior Indebtedness to any one or more Affiliates of
any Borrower. 

 13.4 Effectiveness in Insolvency or Liquidation Proceedings 

This Agreement, which the parties hereto expressly acknowledge is a “subordination agreement” under Section 510(a) of the
Bankruptcy Code, shall be effective before, during and after the commencement of an Insolvency Proceeding notwithstanding Section 1129(b)(1) of the Bankruptcy Code, and is intended to be and shall be interpreted to be enforceable against the
parties hereto including 

  
 26 

 
each Credit Party to the maximum extent permitted pursuant to applicable law. All references in this Agreement to any Obligor or other Credit Party shall include such Person as a
debtor-in-possession and any receiver or trustee for such Person in any Insolvency Proceeding. 
 13.5 Assignment and Certain Other
Actions by Subordinated Creditor 
 Until Discharge of the Senior Indebtedness, no Subordinated Debt Party shall (a) accelerate the
maturity of the Subordinated Indebtedness to a date that is earlier than six (6) months after the last occurring Scheduled Maturity Date (as defined in the Credit Agreement); (b) take any guarantee for any Subordinated Indebtedness from a
Person unless contemporaneously therewith a guaranty by such Person shall be entered into in respect of the Senior Indebtedness and such Person shall be deemed a Credit Party hereunder; or (c) sell, assign, transfer, endorse, pledge, encumber
or otherwise dispose of any of the Subordinated Indebtedness, unless the Subordinated Creditor gives the Administrative Agent written notice thereof and such sale, transfer, endorsement, pledge, encumbrance or other disposition is to an Affiliate of
any Obligor and is made expressly subject to this Subordination Agreement. If any Subordinated Debt Party takes a guarantee for any Subordinated Indebtedness, all obligations under such guarantee shall constitute Subordinated Indebtedness herein and
such guaranty (and any recoveries thereon) shall be subject to the terms of this Agreement, including the payment over provisions contained herein. 

13.6 Further Assurances 

Each Subordinated Creditor shall, at the request of the Senior Lenders but at the expense of the Subordinated Creditors, do all such further
acts and things and execute and deliver all such further documents as the Administrative Agent or the Senior Lenders may reasonably require in order to fully perform and carry out the terms of this Agreement. 

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

13.8 Specific Performance 

Each party to this Agreement may demand specific performance of this Agreement and each party hereby irrevocably waives any defense based on
the adequacy of a remedy at law and any other defense that might be asserted to bar the remedy of specific performance in any action which may be brought by any other party to this Agreement. 

13.9 Waiver of Right to Trial by Jury 

EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER
THIS AGREEMENT, ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY
TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

  
 27 

 13.10 Obligor Acknowledgment 

Each Obligor hereby acknowledges and agrees to the terms of this Agreement, and covenants not to participate in any violation thereof. 

13.11 Beneficiaries 
 The
provisions of this Agreement define the relative rights solely of the Subordinated Creditors and the Senior Lenders, and nothing contained in this Agreement is intended to or shall impair the obligations of the Borrowers or any other Credit Party,
which are unconditional and absolute, to pay the Senior Indebtedness and the Subordinated Indebtedness as and when the same shall become due and payable in accordance with their respective terms, or to affect the relative rights of creditors of the
Borrowers or any other Credit Parties other than the relative rights of the Senior Lenders and the Subordinated Creditors or the Liens created in favor of the Senior Lenders and the Subordinated Creditors, respectively. Without limiting the
generality of the foregoing, it is specifically understood and agreed that no Person (including any Beneficiary other than the Administrative Agent and the Senior Lenders) is a third-party beneficiary of this Agreement, and in furtherance (but not
in limitation) thereof (i) no trustee in any Insolvency Proceeding for or affecting, or unsecured creditor of, any Credit Party will have or acquire or be entitled to exercise any rights of any Senior Lender or Subordinated Creditor under this
Agreement under any legal or equitable basis, theories or circumstances and (ii) the provisions of this Agreement are not for the benefit of, and may not be enforced by, any Credit Party or any other obligor of the Senior Indebtedness or the
Subordinated Indebtedness, or any creditor of a Credit Party or such obligors (except the Senior Lenders and the Subordinated Creditors as herein provided). 

13.12 Conflict with Collateral Agreements 

To the extent there is any conflict or inconsistency among the terms hereof and the terms of any Collateral Agreement, the terms of such
Collateral Agreement shall control. 
 13.13 Amendment and Restatement 

This Agreement hereby amends and restates the Original Subordination Agreement in its entirety. 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day
and year first above written. 
 [Signatures on following pages] 

  
 28 

 
							
	BORROWERS:
		
		 	 MIDCOAST ENERGY PARTNERS, L.P.

a Delaware limited partnership, as Borrower

			
		 	By:	 	Midcoast Holdings, L.L.C., its General Partner
				
		 		 	By:	 	 /s/ Mark A. Maki

		 		 		 	 Mark A. Maki
 Senior Vice
President

		
		 	 MIDCOAST OPERATING, L.P.

a Texas limited partnership, as Opco Borrower

			
		 	By:	 	Midcoast OLP GP, L.L.C., its General Partner
				
		 		 	By:	 	 /s/ Mark A. Maki

		 		 		 	 Mark A. Maki
 Senior Vice
President

  

							
	SUBSIDIARY GUARANTORS:
		
		 	ENBRIDGE G & P (EAST TEXAS), L.P.
		
		 	ENBRIDGE PIPELINES (EAST TEXAS), L.P.
		
		 	ENBRIDGE G & P (OKLAHOMA), L.P.
		
		 	ENBRIDGE PIPELINES (NORTH TEXAS), L.P.
		
		 	ENBRIDGE G & P (NORTH TEXAS), L.P.
		
		 	ELTM, L.P.
		
		 	ENBRIDGE PIPELINES (TEXAS GATHERING), L.P.
		
		 	ENBRIDGE MARKETING (NORTH TEXAS), L.P.
		
		 	ENBRIDGE GATHERING (NORTH TEXAS) L.P.
		
		 	ENBRIDGE LIQUIDS MARKETING (NORTH TEXAS) L.P.

 Amended and Restated Intercompany Subordination Agreement 

 
					
	ENBRIDGE PIPELINES (TEXAS LIQUIDS) L.P.
	
	By: Enbridge Holdings (Texas Systems) L.L.C., the General Partner, and as the General Partner, of each of the foregoing listed entities
			
		 	By:	 	 /s/ Mark A. Maki

		 		 	Mark A. Maki
		 		 	President
	
	ENBRIDGE ENERGY MARKETING, L.L.C.
		
	By:	 	 /s/ Mark A. Maki

		 	Mark A. Maki
		 	President
	
	MIDCOAST OLP GP, L.L.C.
		
	By:	 	 /s/ Mark A. Maki

		 	Mark A. Maki
		 	Senior Vice President
	
	ENBRIDGE PIPELINES (LOUISIANA LIQUIDS) L.L.C.
		
	By:	 	 /s/ Mark A. Maki

		 	Mark A. Maki
		 	President
	
	ENBRIDGE PIPELINES (OKLAHOMA) TRANSMISSION L.L.C.
		
	By:	 	 /s/ Mark A. Maki

		 	Mark A. Maki
		 	President
	
	ENBRIDGE MARKETING (U.S.) L.P.
	
	 By: Enbridge Marketing (U.S.) L.L.C.,

its General Partner

		
	By:	 	 /s/ Mark A. Maki

		 	Mark A. Maki
		 	President

 Amended and Restated Intercompany Subordination Agreement 

 
			
	ADMINISTRATIVE AGENT:
	
	 BANK OF AMERICA, N.A.,
 as
Administrative Agent, Swing Line Lender, and an L/C Issuer

		
	By:	 	 /s/ James K.G. Campbell

	 Name:
 Title:
	 	 James K.G. Campbell
 Director

 Amended and Restated Intercompany Subordination Agreement 

 
					
	SUBORDINATED CREDITORS:
	
	    ENBRIDGE ENERGY PARTNERS, L.P.
		
	    By:	 	Enbridge Energy Management, L.L.C., as delegate of Enbridge Energy Company, Inc., as General Partner
		
	    By:	 	 /s/ Mark A. Maki

		 	 Mark A. Maki

President

 

			
	 Address for Notices
  

Enbridge Energy Partners, L.P.
 1100 Louisiana, Suite 3300

Houston, Texas 77002-5217

		
	Attention:	 	 Chris Kaitson
 Vice President –
US Law

	Telephone:	 	(713) 650-8900
	Facsimile:	 	(713) 821-2229
	Electronic Mail:Chris.Kaitson@enbridge.com
	
	With a copy to:
	
	 Enbridge Energy Partners, L.P.
 C/O
Enbridge Inc.
 3000, 425-1st
 Calgary, Alberta, Canada

T2P 3L8

		
	Attention:	 	 Jonathan Rose
 Treasurer

	Telephone:	 	(403) 231-3924
	Facsimile:	 	(403) 231-4848
	Electronic Mail:jonathan.rose@enbridge.com

 Amended and Restated Intercompany Subordination Agreementsmsa_ex102.htm

EXHIBIT 10.2

 

Dunn Commercial, LP

 

Texas Association of Realtors®

COMMERCIAL LEASE

USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED

©Texas Association of REALTORS®, Inc. 2002 

Table of Contents

 

	
No.

	 	Paragraph Description	 	
Pg.

	 	 	
No.

	 	
Paragraph Description

	 	Pg.
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
1.

	 	Parties	 	2	 	 	22.	 	
Holdover

	 	11
	
2.

	 	Leased Premises	 	2	 	 	23.	 	
Landlord's Lien & Security Interest

	 	11
	
3.

	 	Term	 	2	 	 	24.	 	
Assignment and Subletting

	 	11
	 	 	A.	
Term

	 	 	 	 	25.	 	
Relocation

	 	11
	 	 	B.	
Delay of Occupancy

	 	 	 	 	26.	 	
Subordination

	 	11
	
4.

	 	Rent and Expenses	 	3	 	 	27.	 	
Estoppel Certificates

	 	12
	 	 	A.	
Base Monthly Rent

	 	 	 	 	28.	 	
Casualty Loss

	 	12
	 	 	B.	
First Full Month's Rent

	 	 	 	 	29.	 	
Condemnation

	 	12
	 	 	C.	
Prorated Rent

	 	 	 	 	30.	 	
Attorney's Fees

	 	12
	 	 	D.	
Additional Rent

	 	 	 	 	31.	 	
Representations

	 	13
	 	 	E.	
Place of Payment

	 	 	 	 	32.	 	
Brokers

	 	13
	 	 	F.	
Method of Payment

	 	 	 	 	33.	 	
Addenda

	 	13
	 	 	G.	
Late Charges

	 	 	 	 	34.	 	
Notices 

	 	14
	 	 	H.	
Returned Checks

	 	 	 	 	35.	 	
Special Provisions

	 	14
	
5.

	 	Security Deposit	 	4	 	 	36.	 	
Agreement of the Parties

	 	14
	
6.

	 	Taxes	 	4 	 	 	 	 	 	 	 
	
7.

	 	Utilities	 	4 	 	 	 	 	 	 	 
	
8.

	 	Insurance 	 	5 	 	 	 	 	ADDENDA & EXHIBITS (check all that apply)	 	 
	
9.

	 	Use and Hours	 	6	 	 	 	 	 	 	 
	
10.

	 	Legal Compliance	 	6	 	 	þ	 	
Exhibit Oakhollow Business Park Rules and Regulations 

	 	 
	
11.

	 	Signs	 	7 	 	 	þ	 	
Exhibit Floorplan/Siteplan 

	 	 
	
12.

	 	Access By Landlord	 	7	 	 	o	 	
Commercial Lease Addendum for Broker's Fee

	 	 
	
13.

	 	Move-In Condition	 	7	 	 	þ	 	
Commercial Lease Expense Reimbursement Addendum

	 	 
	
14.

	 	Move-Out Condition	 	7	 	 	o	 	
Commercial Lease Addendum for Extension Option

	 	 
	
15.

	 	Maintenance and Repairs	 	8	 	 	o	 	
Commercial Lease Addendum for Percentage Rent

	 	 
	 	 	A.	
Cleaning

	 	 	 	 	o	 	
Commercial Lease Parking Addendum

	 	 
	 	 	B.	
Conditions Caused by a Party

	 	 	 	 	o	 	
Commercial Landlord's Rules and Regulations

	 	 
	 	 	C.	
Repair & Maintenance Responsibility

	 	 	 	 	o	 	
Commercial Lease Guaranty

	 	 
	 	 	D.	
Repair Persons

	 	 	 	 	o	 	
Commercial Lease Right of First Refusal Addendum

	 	 
	 	 	E.	
HVAC Service Contract

	 	 	 	 	o	 	
Commercial Lease Addendum for Optional Space

	 	 
	 	 	F.	
Common Areas

	 	 	 	 	o	 	
Commercial Leasehold Construction Addendum

	 	 
	 	 	G.	
Notice of Repairs

	 	 	 	 	o	 	 	 	 
	 	 	H.	
Failure to Repair

	 	 	 	 	o	 	 	 	 
	
16.

	 	Alterations	 	9 	 	 	 	 	 	 	 
	
17.

	 	Liens	 	9 	 	 	 	 	 	 	 
	
18.

	 	Liability 	 	10 	 	 	 	 	 
	
19.

	 	Indemnity 	 	10 	 	 	 	 	 
	
20.

	 	Default	 	10 	 	 	 	 	 
	
21.

	 	Abandonment, Interruption of Utilities, Removal of Property & Lockout	 	10	 	 	 	 	 

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 1 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

Texas Association of Realtors®

COMMERCIAL LEASE

USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED

©Texas Association of REALTORS®, Inc. 2002 

 

	1.	PARTIES: The parties to this lease are:
	 	 	 	 
	 	 	Tenant:	Preferred RX, LLC                                                                                                                                                                                                                     
	 	 	 	1221 Corporate Dr Arlington, TX 76006                                                                                                                                                                               ; and
	 	 	 	 
	 	 	Landlord:	Oak Hollow Partners LLC                                                                                                                                                                                                       ; and
	 	 	 	c/o Classic Property Management                                                                                                                                                                                        .
	 	 	 	 
	2.	LEASED PREMISES:
	 	 	 	 
	 	A. 	Landlord leases to Tenant the following described real property, known as the "leased premises," along with all its improvements (Check only one box):
	 	 	 	 
	 	þ	(1)	Multiple-Tenant Property:  Suite or Unit Number  1221   containing approximately  5,004                square feet of rentable area in  Oakhollow Business Park                                                      (building name)at  1221 Corporate Dr                                                                                                                         (address) in    Arlington                                 (city),    Tarrant                                                             (county), Texas, which is legally described on attached Exhibit                                                             or as follows: Brookhollow/Arlington Addition Blk 2 Lot 3R                                                                .
	 	 	 	 
	 	o	(2)	Single-Tenant Property:  The real property at:  ______________________  (address) in ________________________________ (city), ______________________ (county), Texas, which is legally described on attached Exhibit ____________________________ or as follows: __________________________________________.
	 	 	 	 
	 	B.	If Paragraph 2A(1) applies:
	 	 	(1)	"Property" means the building or complex in which the leased premises are located, inclusive of any common areas, drives, parking areas, and walks; and
	 	 	(2)	the parties agree that the rentable area of the leased premises may not equal the actual or useable area within the leased premises and may include an allocation of common areas in the Property.
	 	 	 	 
	3.	TERM:
	 	 	 	 
	 	A.	
Term: The term of this lease is     60           months and         0         days, commencing on: 

 

  September 1, 2007                                       (Commencement Date) and ending on 

 

  August 31, 2012                                            (Expiration Date).

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 2 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

                          

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	 	B.	
Delay of Occupancy:  If Tenant is unable to occupy the leased premises on the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially complete or a prior tenant's holding over of the leased premises, Landlord will not be liable to Tenant for such delay and this lease will remain enforceable.  In the event of such a delay, the Commencement Date will automatically be extended to the date Tenant is able to occupy the Property and the Expiration Date will also be extended by a like number of days, so that the length of this lease remains unchanged.  If Tenant is unable to occupy the leased premises after the 90th day after the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially complete or a prior tenant's holding over of the leased premises, Tenant may terminate this lease by giving written notice to Landlord before the leased premises become available to be occupied by Tenant and Landlord will refund to Tenant any amounts paid to Landlord by Tenant.  This Paragraph 3B does not apply to any delay in occupancy caused by cleaning or repairs.

	 	 	 	 
	 	C.	Unless the parties agree otherwise, Tenant is responsible for obtaining a certificate of occupancy for the leased premises if required by a governmental body.
	 	 	 	 
	4.	RENT AND EXPENSES:
	 	 	 	 
	 	A.	Base Monthly Rent:  On or before the first day of each month during this lease, Tenant will pay Landlord base monthly rent as described on attached Exhibit __________ or as follows:

	
from

	
September 1, 2007 to August 31, 2008 :

	 	 	$	4,129.00 ;	 
	
from

	
September 1, 2008 to August 31, 2009 :

	 	 	$	4,546.00 ;	 
	
from

	
September 1, 2009 to August 31, 2010 :

	 	 	$	4,963.00 ;	 
	
from

	
September 1, 2010 to August 31, 2011 :

	 	 	$	5,172.00 ;	 
	
from

	
September 1, 2011 to August 31, 2012 :

	 	 	$	5,380.00 .	 
	
from

	
______________ to ____________ :

	 	 	$	_______	 

 

	
  

	
B.

	
First Full Month's Rent:  The first full base monthly rent is due on or before September 1, 2007

	
  

	
C.

	
Prorated Rent:  If the Commencement Date is on a day other than the first day of a month, Tenant will pay Landlord as prorated rent, an amount equal to the base monthly rent multiplied by the following fraction:  the number of days from the Commencement Date to the first day of the following month divided by the number of days in the month in which this lease commences. The prorated rent is due on or before the Commencement Date.

	
  

	
D.

	
Additional Rent:  In addition to the base monthly rent and prorated rent, Tenant will pay Landlord all other amounts, as provided by the attached (Check all that apply.):

 

	
  

	
R

	
(1)

	
Commercial Expense Reimbursement Addendum

	
  

	
£

	
(2)

	
Commercial Percentage Rent Addendum

	
  

	
£

	
(3)

	
Commercial Parking Addendum

	
  

	
£

	
(4)

	
_________________________________________________________________________________

 

	
  

	All amounts payable under the applicable addenda are deemed to be "rent" for the purposes of this lease.

 

	
  

	
E.

	
Place of Payment:  Tenant will remit all amounts due Landlord under this lease to the following person at the place stated or to such other person or place as Landlord may later designate in writing:

 

	 	Name:	
Oakhollow Partners LLC c/o Classic Property Management                                                                           

	 	Address:	
2415 Ave J Suite 100                                                                                                                                               

Arlington, TX 76006                                                                                                                                                

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 3 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	
  

	
F.

	
Method of Payment:  Tenant must pay all rent timely without demand, deduction, or offset, except as permitted by law or this lease.  If Tenant fails to timely pay any amounts due under this lease or if any check of Tenant is returned to Landlord by the institution on which it was drawn, Landlord after providing written notice to Tenant may require Tenant to pay subsequent amounts that become due under this lease in certified funds.  This paragraph does not limit Landlord from seeking other remedies under this Lease for Tenant's failure to make timely payments with good funds.

	
  

	
G.

	
Late Charges:  If Landlord does not actually receive a rent payment at the designated place of payment within 5 days after the date it is due, Tenant will pay Landlord a late charge equal to 5% of the amount due.  In this paragraph, the mailbox is not the agent for receipt for Landlord.  The late charge is a cost associated with the collection of rent and Landlord's acceptance of a late charge does not waive Landlord's right to exercise remedies under Paragraph 20.

	
  

	
H.

	
Returned Checks:  Tenant will pay $ 25.00   (not to exceed $25) for each check Tenant tenders to Landlord which is returned by the institution on which it is drawn for any reason, plus any late charges until Landlord receives payment.

	
5.

	
SECURITY DEPOSIT:

	
  

	
A.

	
Upon execution of this lease, Tenant will pay $ 5,380.00                         to Landlord as a security deposit.

	
  

	
B.

	
Landlord may apply the security deposit to any amounts owed by Tenant under this lease.  If Landlord applies any part of the security deposit during any time this lease is in effect to amounts owed by Tenant, Tenant must, within 10 days after receipt of notice from Landlord, restore the security deposit to the amount stated.

	
  

	
C.

	
After Tenant surrenders the leased premises to Landlord and provides Landlord written notice of Tenant's forwarding address, Landlord will, not later than the time required by §93.005, Texas Property Code, refund the security deposit less any amounts applied toward amounts owed by Tenant or other charges authorized by this lease.  The parties agree that Landlord acts in good faith if Landlord accounts for the security deposit within the time stated.

	
6.

	
TAXES:  Unless otherwise agreed by the parties, Landlord will pay all real property ad valorem taxes assessed against the leased premises.

 

	
7.

	
UTILITIES:

 

	
  

	
A.

	
The party designated below will pay for the following utility charges to the leased premises and any connection charges for the utilities. (Check all that apply.)

 

	 	 	
N/A

	 	
Landlord

	 	
Tenant

	
(1) Water

	 	
o

	 	
R

	 	

o

	
(2) Sewer

	 	

o

	 	
R

	 	

o

	
(3) Electric

	 	

o

	 	

o

	 	
R

	
(4) Gas

	 	

o

	 	

o

	 	
R

	
(5) Telephone

	 	

o

	 	

o

	 	
R

	
(6) Trash

	 	

o

	 	

o

	 	
R

	
(7) Cable

	 	

o

	 	

o

	 	
R

	
(8) Janitorial                                                       

	 	

o

	 	

o

	 	
R

	
(9) All other utilities

	 	

o

	 	

o

	 	
R

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 4 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	
  

	
B.

	
The party responsible for the charges under Paragraph 7A will pay the charges directly to the utility service provider.  The responsible party may select the utility service provider except that if Tenant selects the provider any access or alterations to the Property or leased premises necessary for the utilities may be made only with Landlord's prior consent, which Landlord will not unreasonably withhold.  If Landlord incurs any liability for utility or connection charges for which Tenant is responsible to pay and Landlord pays such amount, Tenant will immediately upon written notice from Landlord reimburse Landlord such amount.

	
  

	
C.

	
Notice:  Tenant should determine if all necessary utilities are available to the leased premises and are adequate for Tenant's intended use.

	
  

	
D.

	
After-Hours HVAC Charges:  "HVAC services" means the utility expenses to heat and cool the leased premises. (Check one box only.)

	
  

	
R

	
(1)

	
Landlord is obligated to provide the HVAC services to the leased premises only during the Property's operating hours specified under Paragraph 9C.

	
  

	
 

	
  

	
£

	
(2)

	
Landlord will provide the HVAC services to the leased premises during the operating hours specified under Paragraph 9C for no additional charge and will, at Tenant's request, provide HVAC services to the leased premises during other hours for an additional charge of $______________ per hour.  Tenant will pay Landlord the charges under this paragraph immediately upon receipt of Landlord's invoice.  Hourly charges are charged on a half-hour basis.  Any partial hour will be rounded up to the next half hour.  Tenant will comply with Landlord's procedures to make a request to provide the additional HVAC services under this paragraph.

	
  

	
£

	
(3)

	
Tenant will pay for the HVAC services under this lease.

	
8.

	
INSURANCE:

 

	
  

	
A.

	
During all times this lease is in effect, Tenant must, at Tenant's expense, maintain in full force and effect from an insurer authorized to operate in Texas:

	
  

	
(1)

	
public liability insurance in an amount not less than $1,000,000.00 on an occurrence basis naming Landlord as an additional insured; and

	
  

	
(2)

	
personal property damage insurance for Tenant's business operations and contents on the leased premises in an amount sufficient to replace such contents after a casualty loss.

	
  

	
B.

	
Before the Commencement Date, Tenant must provide Landlord with a copy of the insurance certificates evidencing the required coverage.  If the insurance coverage changes in any manner or degree at any time this lease is in effect, Tenant must, not later than 10 days after the change, provide Landlord a copy of an insurance certificate evidencing the change.

	
  

	
C.

	
If Tenant fails to maintain the required insurance in full force and effect at all times this lease is in effect, Landlord may:

	
  

	
(1)

	
purchase insurance that will provide Landlord the same coverage as the required insurance and Tenant must immediately reimburse Landlord for such expense; or

	
  

	
(2)

	
exercise Landlord's remedies under Paragraph 20.

	
  

	
D.

	
Unless the parties agree otherwise, Landlord will, at Landlord's expense, maintain in full force and effect insurance for fire and extended coverage in an amount to cover the reasonable replacement cost of the improvements of the Property and public liability insurance in an amount that Landlord determines reasonable and appropriate.

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 5 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

                

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	 	E.	If there is an increase in Landlord's insurance premiums for the leased premises or Property or its contents that is caused by Tenant, Tenant's use of the leased premises, or any improvements made by or for Tenant, Tenant will, for each year this lease is in effect, pay Landlord the increase immediately after Landlord notifies Tenant of the increase.  Any charge to Tenant under this Paragraph 8D will be equal to the actual amount of the increase in Landlord's insurance premium.
	 	 	 
	9.	USE AND HOURS:

 

	 	A.	
Tenant may use the leased premises for the following purpose and no other: General Office                                                                                                                                          

	 	 	________________________________________________________________________________________________________________________________
	 	 	________________________________________________________________________________________________________________________________
	 	 	________________________________________________________________________________________________________________________________.

 

	 	
B.

	
Unless otherwise specified in this lease, Tenant will operate and conduct its business in the leased premises during business hours that are typical of the industry in which Tenant represents it operates.

	 	 	 	 
	 	C.	
The Property maintains operating hours of (specify hours, days of week, and if inclusive or exclusive of weekends and holidays):

Common Area HVAC 7:00 am - 7:00pm Building open 24/7                                                                                                                                                                                                     

	 	 	________________________________________________________________________________________________________________________________
	 	 	________________________________________________________________________________________________________________________________
	 	 	 
	10.	LEGAL COMPLIANCE:
	 	 	 	 
	 	A.	Tenant may not use or permit any part of the leased premises to be used for:
	 	 	(1)	any activity which is a nuisance or is offensive, noisy, or dangerous;
	 	 	(2)	any activity that interferes with any other tenant's normal business operations or Landlord's management of the Property;
	 	 	(3)	any activity that violates any applicable law, regulation, zoning ordinance, restrictive covenant, governmental order, owners' association rules, tenants' association rules, Landlord's rules or regulations, or this lease;
	 	 	(4)	any hazardous activity that would require any insurance premium on the Property or leased premises to increase or that would void any such insurance;
	 	 	(5)	any activity that violates any applicable federal, state, or local law, including but not limited to those laws related to air quality, water quality, hazardous materials, wastewater, waste disposal, air emissions, or other environmental matters;
	 	 	(6)	the permanent or temporary storage of any hazardous material; or
	 	 	(7)	___________________________________________________________________________________________________________________________
	 	 	 	___________________________________________________________________________________________________________________________
	 	 	 	___________________________________________________________________________________________________________________________
	 	 	 	___________________________________________________________________________________________________________________________
	 	 	 	___________________________________________________________________________________________________________________________
	 	 	 	 
	 	B.	"Hazardous material" means any pollutant, toxic substance, hazardous waste, hazardous material, hazardous substance, solvent, or oil as defined by any federal, state, or local environmental law, regulation, ordinance, or rule existing as of the date of this lease or later enacted.
	 	 	 
	 	C.	Landlord does not represent or warrant that the leased premises or Property conform to applicable restrictions, zoning ordinances, setback lines, parking requirements, impervious ground cover ratio requirements, and other matters that may relate to Tenant's intended use.  Tenant must satisfy itself that the leased premises may be used as Tenant intends by independently investigating all matters related to the use of the leased premises or Property.  Tenant agrees that it is not relying on any warranty or representation made by Landlord, Landlord's agent, or any broker concerning the use of the leased premises or Property.

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 6 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	
11.

	
SIGNS:

	
  

	
A.

	
Tenant may not post or paint any signs at, on, or about the leased premises or Property without Landlord's written consent. Landlord may remove any unauthorized sign, and Tenant will promptly reimburse Landlord for its cost to remove any unauthorized sign.

	
  

	
B.

	
Any authorized sign must comply with all laws, restrictions, zoning ordinances, and any governmental order relating to signs on the leased premises or Property. Landlord may temporarily remove any authorized sign to complete repairs or alterations to the leased premises or the Property.

	
  

	
C.

	
By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon move-out and at Tenant's expense, to remove, without damage to the Property or leased premises, any or all signs that were placed on the Property or leased premises by or at the request of Tenant. Any signs that Landlord does not require Tenant to remove and that are fixtures, become the property of the Landlord and must be surrendered to Landlord at the time this lease ends.

	
12.

	
ACCESS BY LANDLORD:

	
  

	
A.

	
During Tenant's normal business hours Landlord may enter the leased premises for any reasonable purpose, including but not limited to purposes for repairs, maintenance, alterations, and showing the leased premises to prospective tenants or purchasers. Landlord may access the leased premises after Tenant's normal business hours if: (1) entry is made with Tenant's permission; or (2) entry is necessary to complete emergency repairs. Landlord will not unreasonably interfere with Tenant's business operations when accessing the leased premises.

	
  

	
B.

	
During the last   60   days of this lease, Landlord may place a "For Lease" or similarly worded sign in the leased premises.

	
13.

	
MOVE-IN CONDITION: Tenant has inspected the leased premises and accepts it in its present (as-is) condition unless expressly noted otherwise in this lease. Landlord and any agent have made no express or implied warranties as to the condition or permitted use of the leased premises or Property.

	
14.

	
MOVE-OUT CONDITION AND FORFEITURE OF TENANT'S PERSONAL PROPERTY:

	
  

	
A.

	
At the time this lease ends, Tenant will surrender the leased premises in the same condition as when received, except for normal wear and tear.  Tenant will leave the leased premises in a clean condition free of all trash, debris, personal property, hazardous materials, and environmental contaminants.

	
  

	
B.

	
If Tenant leaves any personal property in the leased premises after Tenant surrenders possession of the leased premises, Landlord may:  (1) require Tenant, at Tenant's expense, to remove the personal property by providing written notice to Tenant; or (2) retain such personal property as forfeited property to Landlord.

	
  

	
C.

	
"Surrender" means vacating the leased premises and returning all keys and access devices to Landlord. "Normal wear and tear" means deterioration that occurs without negligence, carelessness, accident, or abuse.

	
  

	
D.

	
By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon move-out and at Tenant's expense, to remove, without damage to the Property or leased premises, any or all fixtures that were placed on the Property or leased premises by or at the request of Tenant. Any fixtures that Landlord does not require Tenant to remove become the property of the Landlord and must be surrendered to Landlord at the time this lease ends.

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 7 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	
15.

	
MAINTENANCE AND REPAIRS:

	
  

	
A.

	
Cleaning: Tenant must keep the leased premises clean and sanitary and promptly dispose of all garbage in appropriate receptacles. o Landlord R Tenant will provide, at its expense, janitorial services to the leased premises that are customary and ordinary for the Property type.

	
  

	
B.

	
Repairs of Conditions Caused by a Party: Each party must promptly repair a condition in need of repair that is caused, either intentionally or negligently, by that party or that party's guests, patrons, invitees, contractors or permitted subtenants.

	
  

	
C.

	
Repair and Maintenance Responsibility: Except as provided by Paragraph 15B, the party designated below, at its expense, is responsible to maintain and repair the following specified items in the leased premises. The specified items must be maintained in clean and good operable condition. If a governmental regulation or order requires a modification to any of the specified items, the party designated to maintain the item must complete and pay the expense of the modification. The specified items include and relate only to real property in the leased premises. Tenant is responsible for the repair and maintenance of its personal property. (Check all that apply.)

 

	 	 	 	
N/A

	 	
Landlord

	 	Tenant
	
(1)

	
Foundation, exterior walls, roof, and other structural components

	 	

o

	 	
R

	 	

o

	
(2)

	
Glass and windows

	 	

o

	 	

o

	 	
R

	
(3)

	
Fire protection equipment and fire sprinkler systems

	 	

o

	 	
R

	 	

o

	
(4)

	
Exterior & overhead doors, including closure devices, molding, locks, and hardware

	 	

o

	 	

o

	 	
R

	
(5)

	
Grounds maintenance, including landscaping and ground sprinklers

	 	

o

	 	
R

	 	

o

	
(6)

	
Interior doors, including closure devices, frames, molding, locks, and hardware

	 	

o

	 	

o

	 	
R

	
(7)

	
Parking areas and walks

	 	

o

	 	
R

	 	

o

	
(8)

	
Plumbing systems, drainage systems, electrical systems, ballast and lamp replacement, and mechanical systems, except those specifically designated otherwise

	 	

o

	 	
R

	 	

o

	
(9)

	
Heating Ventilation and Air Conditioning (HVAC) systems

	 	

o

	 	
R

	 	

o

	
(10)

	
Signs and lighting:

	 	 	 	 	 	 
	 	
(b) Facia

	 	
R

	 	

o

	 	

o

	 	
(d) Door/Suite

	 	
R

	 	

o

	 	

o

	 	
(c) Monument

	 	
R

	 	

o

	 	

o

	 	(d) Door/Suite	 	
R

	 	

o

	 	

o

	(11)	
Extermination and pest control, excluding wood-destroying insects

	 	

o

	 	

o

	 	
R

	
(12)

	
Storage yards and storage buildings

	 	
R

	 	

o

	 	

o

	
(13)

	
Wood-destroying insect treatment and repairs

	 	

o

	 	
R

	 	

o

	
(14)

	
Cranes and related systems

	 	
R

	 	

o

	 	

o

	
(15)

	
All plumbing systems in the suite 

	 	

o

	 	
R

	 	

o

	
(16)

	
All electrical lights and doors 

	 	

o

	 	
R

	 	

o

	
(17)

	
All other items and systems.

	 	

o

	 	

o

	 	
R

 

	
  

	
D.

	
Repair Persons:  Repairs must be completed by trained, qualified, and insured repair persons.

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 8 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	
  

	
E.

	
HVAC Service Contract: If Tenant maintains the HVAC system under Paragraph 15C(9), Tenant £ is R is not required to maintain, at its expense, a regularly scheduled maintenance and service contract for the HVAC system. The maintenance and service contract must be purchased from a HVAC maintenance company that regularly provides such contracts to similar properties. If Tenant fails to maintain a required HVAC maintenance and service contract in effect at all times during this lease, Landlord may do so and charge Tenant the expense of such a maintenance and service contract or exercise Landlord's remedies under Paragraph 20.

	
  

	
F.

	
Common Areas: Landlord will maintain any common areas in the Property in a manner as Landlord determines to be in the best interest of the Property. Landlord will maintain any elevator and signs in the common area. Landlord may change the size, dimension, and location of any common areas, provided that such change does not materially impair Tenant's use and access to the leased premises. Tenant has the non-exclusive license to use the common areas in compliance with Landlord's rules and restrictions. Tenant may not solicit any business in the common areas or interfere with any other person's right to use the common areas. This paragraph does not apply if Paragraph 2A(2) applies.

	
  

	
G.

	
Notice of Repairs:  Tenant must promptly notify Landlord of any item that is in need of repair and that is Landlord's responsibility to repair.  All requests for repairs to Landlord must be in writing.

	
  

	
H.

	
Failure to Repair: Landlord must make a repair for which Landlord is responsible within a reasonable period of time after Tenant provides Landlord written notice of the needed repair. If Tenant fails to repair or maintain an item for which Tenant is responsible within 10 days after Landlord provides Tenant written notice of the needed repair or maintenance, Landlord may: (1) repair or maintain the item, without liability for any damage or loss to Tenant, and Tenant must immediately reimburse Landlord for the cost to repair or maintain; or (2) exercise Landlord's remedies under Paragraph 20.

	
16.

	
ALTERATIONS:

 

	
  

	
A.

	
Tenant may not alter, improve, or add to the Property or the leased premises without Landlord's written consent. Landlord will not unreasonably withhold consent for the Tenant to make reasonable non-structural alterations, modifications, or improvements to the leased premises.

	
  

	
B.

	
Tenant may not alter any locks or any security devices on the Property or the leased premises without Landlord's consent. If Landlord authorizes the changing, addition, or rekeying of any locks or other security devices, Tenant must immediately deliver the new keys and access devices to Landlord.

	
  

	
C.

	
If a governmental order requires alteration or modification to the leased premises, the party obligated to maintain and repair the item to be modified or altered as designated in Paragraph 15 will, at its expense, modify or alter the item in compliance with the order.

	
  

	
D.

	
Any alterations, improvements, fixtures or additions to the Property or leased premises installed by either party during the term of this lease will become Landlord's property and must be surrendered to Landlord at the time this lease ends, except for those fixtures Landlord requires Tenant to remove under Paragraph 11 or 14 or if the parties agree otherwise in writing.

 

	
17.

	
LIENS: Tenant may not do anything that will cause the title of the Property or leased premises to be encumbered in any way. If Tenant causes a lien to be filed against the Property or leased premises, Tenant will within 20 days after receipt of Landlord's demand: (1) pay the lien and have the lien released of record; or (2) take action to discharge the lien. Tenant will provide Landlord a copy of any release Tenant obtains pursuant to this paragraph.

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 9 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	
18.

	
LIABILITY:  To the extent permitted by law, Landlord is NOT responsible to Tenant or Tenant's employees, patrons, guests, or invitees for any damages, injuries, or losses to person or property caused by:

	
  

	
A.

	
an act, omission, or neglect of:  Tenant; Tenant's agent; Tenant's guest; Tenant's employees; Tenant's patrons; Tenant's invitees; or any other tenant on the Property;

	
  

	
B.

	
fire, flood, water leaks, ice, snow, hail, winds, explosion, smoke, riot, strike, interruption of utilities, theft, burglary, robbery, assault, vandalism, other persons, environmental contaminants, or other occurrences or casualty losses.

	
19.

	
INDEMNITY:  Each party will indemnify and hold the other party harmless from any property damage, personal injury, suits, actions, liabilities, damages, cost of repairs or service to the leased premises or Property, or any other loss caused, negligently or otherwise, by that party or that party's employees, patrons, guests, or invitees.

 

	
20.

	
DEFAULT:

 

	
  

	
A.

	
If Landlord fails to comply with this lease within 30 days after Tenant notifies Landlord of Landlord's failure to comply, Landlord will be in default and Tenant may seek any remedy provided by law.  If, however, Landlord's non-compliance reasonably requires more than 30 days to cure, Landlord will not be in default if the cure is commenced within the 30-day period and is diligently pursued.

	
  

	
B.

	
If Landlord does not actually receive at the place designated for payment any rent due under this lease within 5 days after it is due, Tenant will be in default.  If Tenant fails to comply with this lease for any other reason within 10 days after Landlord notifies Tenant of its failure to comply, Tenant will be in default.

	
  

	
C.

	
If Tenant is in default, Landlord may:  (i) terminate Tenant's right to occupy the leased premises by providing Tenant with at least 3 days written notice; and (ii) accelerate all rents which are payable during the remainder of this lease or any renewal period without notice or demand.  Landlord will attempt to mitigate any damage or loss caused by Tenant's breach by using commercially reasonable means.  If Tenant is in default, Tenant will be liable for:

	
  

	
(1)

	
any lost rent;

	
  

	
(2)

	
Landlord's cost of reletting the leased premises, including brokerage fees, advertising fees, and other fees necessary to relet the leased premises;

	
  

	
(3)

	
repairs to the leased premises for use beyond normal wear and tear;

	
  

	
(4)

	
all Landlord's costs associated with eviction of Tenant, such as attorney's fees, court costs, and prejudgment interest;

	
  

	
(5)

	
all Landlord's costs associated with collection of rent such as collection fees, late charges, and returned check charges;

	
  

	
(6)

	
cost of removing any of Tenant's equipment or fixtures left on the leased premises or Property;

	
  

	
(7)

	
cost to remove any trash, debris, personal property, hazardous materials, or environmental contaminants left by Tenant or Tenant's employees, patrons, guests, or invitees in the leased premises or Property;

	
  

	
(8)

	
cost to replace any unreturned keys or access devices to the leased premises, parking areas, or Property,

	
  

	
(9)

	
any other recovery to which Landlord may be entitled under this lease or under law.

	
21.

	
ABANDONMENT, INTERRUPTION OF UTILITIES, REMOVAL OF PROPERTY, AND LOCKOUT:  Chapter 93 of the Texas Property Code governs the rights and obligations of the parties with regard to:  (a) abandonment of the leased premises; (b) interruption of utilities; (c) removal of Tenant's property; and (d) "lock-out" of Tenant.

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 10 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	
22.

	
HOLDOVER:  If Tenant fails to vacate the leased premises at the time this lease ends, Tenant will become a tenant-at-will and must vacate the leased premises immediately upon receipt of demand from Landlord.  No holding over by Tenant, with or without the consent of Landlord, will extend this lease.  Tenant will indemnify Landlord and any prospective tenants for any and all damages caused by the holdover.  Rent for any holdover period will be 2 times the base monthly rent plus any additional rent calculated on a daily basis and will be immediately due and payable daily without notice or demand.

	
23.

	
LANDLORD'S LIEN AND SECURITY INTEREST:  To secure Tenant's performance under this lease, Tenant grants to Landlord a lien and security interest against all of Tenant's nonexempt personal property that is in the leased premises or Property. This lease is a security agreement for the purposes of the Uniform Commercial Code.  Landlord may file a copy of this lease as a financing statement.

	
24.

	
ASSIGNMENT AND SUBLETTING:  Landlord may assign this lease to any subsequent owner of the Property.   Tenant may not assign this lease or sublet any part of the leased premises without Landlord's written consent.  An assignment of this lease or subletting of the leased premises without Landlord's written consent is voidable by Landlord.  If Tenant assigns this lease or sublets any part of the leased premises, Tenant will remain liable for all of Tenant's obligations under this lease regardless if the assignment or sublease is made with or without the consent of Landlord.

	
25.

	
RELOCATION:

	

x

	
A.

	
By providing Tenant with not less than 90 days advanced written notice, Landlord may require Tenant to relocate to another location in the Property, provided that the other location is equal in size or larger than the leased premises then occupied by Tenant and contains similar leasehold improvements.  Landlord will pay Tenant's reasonable out-of-pocket moving expenses for moving to the other location.  "Moving expenses" means reasonable expenses payable to professional movers, utility companies for connection and disconnection fees, wiring companies for connecting and disconnecting Tenant's office equipment required by the relocation, and printing companies for reprinting Tenant's stationary and business cards.  A relocation of Tenant will not change or affect any other provision of this lease that is then in effect, including rent and reimbursement amounts, except that the description of the suite or unit number will automatically be amended.

	

o

	
B.

	
Landlord may not require Tenant to relocate to another location in the Property without Tenant's prior consent.

	
26.

	
SUBORDINATION:

       

	 	
A.

	
This lease and Tenant's leasehold interest are and will be subject, subordinate, and inferior to:

	
  

	
(1)

	
any lien, encumbrance, or ground lease now or hereafter placed on the leased premises or the Property that Landlord authorizes;

	
  

	
(2)

	
all advances made under any such lien, encumbrance, or ground lease;

	
  

	
(3)

	
the interest payable on any such lien or encumbrance;

	
  

	
(4)

	
any and all renewals and extensions of any such lien, encumbrance, or ground lease;

	
  

	
(5)

	
any restrictive covenant affecting the leased premises or the Property; and

	
  

	
(6)

	
the rights of any owners' association affecting the leased premises or Property.

	
  

	
B.

	
Tenant must, on demand, execute a subordination, attornment, and non-disturbance agreement that Landlord may request that Tenant execute, provided that such agreement is made on the condition that this lease and Tenant's rights under this lease are recognized by the lien-holder.

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 11 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

	
27.

	
ESTOPPEL CERTIFICATES:  Within 10 days after receipt of a written request from Landlord, Tenant will execute and deliver to Landlord an estoppel certificate that identifies:

 

	 	
A.

	

any breach of the lease;

	 	
B.

	

the then current rent payment and rent schedule;

	 	
C.

	

the date the next rent payment is due;

	 	
D.

	

any advance rent payments;

	 	
E.

	

the amount of the security deposit;

	 	
F.

	

any claims for any offsets;

	 	
G.

	

the then current term of the lease;

	 	
H.

	

any renewal options;

	 	
I.

	

Tenant's possession and acceptance of the leased premises and improvements;

	 	
J.

	

any ownership interest by Tenant; and

	 	
K.

	

any other information reasonably requested in the certificate.

	
28.

	
CASUALTY LOSS:

	
  

	
A.

	
Tenant must immediately notify Landlord of any casualty loss in the leased premises.  Within 20 days after receipt of Tenant's notice of a casualty loss, Landlord will notify Tenant if the leased premises are less than or more than 50% unusable, on a per square foot basis, and if Landlord can substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty loss.

	
  

	
B.

	
If the leased premises are less than 50% unusable and Landlord can substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty, Landlord will restore the leased premises to substantially the same condition as before the casualty.  If Landlord fails to substantially restore within the time required, Tenant may terminate this lease.

	
  

	
C.

	
If the leased premises are more than 50% unusable and Landlord can substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty, Landlord may:  (1) terminate this lease; or (2) restore the leased premises to substantially the same condition as before the casualty.  If Landlord chooses to restore and does not substantially restore the leased premises within the time required, Tenant may terminate this lease.

	
  

	
D.

	
If Landlord notifies Tenant that Landlord cannot substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty loss, Landlord may:  (1) choose not to restore and terminate this lease; or (2) choose to restore, notify Tenant of the estimated time to restore, and give Tenant the option to terminate this lease by notifying Landlord within 10 days.

	
  

	
E.

	
If this lease does not terminate because of a casualty loss, rent will be reduced from the date Tenant notifies Landlord of the casualty loss to the date the leased premises are substantially restored by an amount proportionate to the extent the leased premises are unusable.

	
29.

	
CONDEMNATION:  If after a condemnation or purchase in lieu of condemnation the leased premises are totally unusable for the purposes stated in this lease, this lease will terminate.  If after a condemnation or purchase in lieu of condemnation the leased premises or Property are partially unusable for the purposes of this lease, this lease will continue and rent will be reduced in an amount proportionate to the extent the leased premises are unusable.  Any condemnation award or proceeds in lieu of condemnation are the property of Landlord and Tenant has no claim to such proceeds or award.  Tenant may seek compensation from the condemning authority for its moving expenses and damages to Tenant's personal property.

	
30.

	
ATTORNEY'S FEES: Any person who is a prevailing party in any legal proceeding brought under or related to the transaction described in this lease is entitled to recover prejudgment interest, reasonable attorney's fees, and all other costs of litigation from the nonprevailing party.

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 12 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	
31.

	
REPRESENTATIONS: Tenant's statements in this lease and any application for rental are material representations relied upon by Landlord.  Each party signing this lease represents that he or she is of legal age to enter into a binding contract and is authorized to sign the lease.  If Tenant makes any misrepresentation in this lease or in any application for rental, Tenant is in default.  Landlord is not aware of any material defect on the Property that would affect the health and safety of an ordinary person or any environmental hazard on or affecting the Property that would affect the health or safety of an ordinary person, except:

	
32.

	
BROKERS:

	
   

	
A.

	
The brokers to this lease are:

 

	 	 	 	David R. Dunn 	 	TX0375841
	 	Cooperating Broker	License No.	 	Principal Broker 	 	License No.
	 	 	 	 
	 	 	 	2221 East Lamar Blvd Suite #170, Arlington, TX 76006
	 	Address	 	Address
	 	 	 	 	 	 
	 	 	 	 	817-640-9964	 	817-640-1217
	 	Phone	Fax	 	Phone 	 	Fax
	 	 	 	 
	 	 	 	 
	 	E-mail	 	E-mail
	 	 	 	 
	 	Cooperating Broker represents Tenant.	 	Principal Broker: (Check only one box)
	 	 	 	
þ    represents Landlord only.

	 	 	 	
o represents Tenant only.

	 	 	 	
o is an intermediary between Landlord and Tenant.

 

	
  

	
B.

	
Fees:

 

	
  

	
R

	
(1)

	
Principal Broker's fee will be paid according to:  (Check only one box).

 

	
  

	 	
R

	
(a)    a separate written commission agreement between Principal Broker and:

 

	 	 	
R Landlord

	

o Tenant.

 

	
  

	

o

	
(b)

	
the attached Addendum for Broker's Fee.

 

	
  

	

o

	
(2)

	
Cooperating Broker's fee will be paid according to:  (Check only one box).

 

	
  

	

o

	
(a)

	
a separate written commission agreement between Cooperating Broker and:

 

	
  

	

o Principal Broker

	
o Landlord

	

o Tenant.

 

	
  

	

o

	
(b)

	
the attached Addendum for Broker's Fee.

 

	
33.

	
ADDENDA:  Incorporated into this lease are the addenda, exhibits and other information marked in the Addenda and Exhibit section of the Table of Contents.  If Landlord's Rules and Regulations are made part of this lease, Tenant agrees to comply with the Rules and Regulations as Landlord may, at its discretion, amend from time to time.

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 13 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	
34.

	
NOTICES:  All notices under this lease must be in writing and are effective when hand-delivered, sent by mail, or sent by facsimile transmission to:

 

	 	Tenant at the leased premises,
	 	and a copy to:	Sperry Van Ness/Dunn Commercial Management Inc. 
	 	 	Address: 	2221 East Lamar Blvd., Suite #170, Arlington, TX 76006
	 	 	Phone:	817-640-9964 	Fax:	817-640-1217
	 	 	 	 	 	 
	 	Landlord at:	 	 	 	 
	 	 	Address:	2401 Ave J, Suite 100, Arlington, TX 76006	 	 
	 	 	Phone: 	817-640-2064	Fax:	817-640-6028 
	 	 	 	 	 	 
	 	and a copy to:	 	 	 	 
	 	 	Address:	 
	 	 	Phone: 	 	Fax:	 

 

	
35.

	
SPECIAL PROVISIONS:

 

	
  

	
35.01 – The security deposit shall be paid in three payments of $1,793.00.  The first payment will be due upon execution, the second payment in August 1st and the third in September 1st, 2007.

 

	
  

	
35.02 – David R. Dunn is a licensed Real Estate agent in the state of Texas and has ownership in the property.

 

	
36.

	
AGREEMENT OF PARTIES:

 

	
  

	
A.

	
Entire Agreement:  This lease contains the entire agreement between Landlord and Tenant and may not be changed except by written agreement.

 

	
  

	
B.

	
Binding Effect:  This lease is binding upon and inures to the benefit of the parties and their respective heirs, executors, administrators, successors, and permitted assigns.

 

	
  

	
C.

	
Joint and Several:  All Tenants are jointly and severally liable for all provisions of this lease.  Any act or notice to, or refund to, or signature of, any one or more of the Tenants regarding any term of this lease, its renewal, or its termination is binding on all Tenants.

 

	
  

	
D.

	
Controlling Law:  The laws of the State of Texas govern the interpretation, performance, and enforcement of this lease.

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 14 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

	
Commercial Lease concerning:

	
1221 Corporate Dr

 

	
  

	
E.

	
Severable Clauses:  If any clause in this lease is found invalid or unenforceable by a court of law, the remainder of this lease will not be affected and all other provisions of this lease will remain valid and enforceable.

 

	
  

	
F.

	
Waiver:  Landlord's delay, waiver, or non-enforcement of acceleration, contractual or statutory lien, rental due date, or any other right will not be deemed a waiver of any other or subsequent breach by Tenant or any other term in this lease.

 

	
  

	
G.

	
Quiet Enjoyment:  Provided that Tenant is not in default of this lease, Landlord covenants that Tenant will enjoy possession and use of the leased premises free from material interference.

 

	
  

	
H.

	
Force Majeure:  If Landlord's performance of a term in this lease is delayed by strike, lock-out, shortage of material, governmental restriction, riot, flood, or any cause outside Landlord's control, the time for Landlord's performance will be abated until after the delay.

 

	 	
I.

	
Time:  Time is of the essence.  The parties require strict compliance with the times for performance.

 

Brokers are not qualified to render legal advice, property inspections, surveys, engineering studies, environmental assessments, tax advice, or compliance inspections.  The parties should seek experts to render such services.  READ THIS LEASE CAREFULLY.  If you do not understand the effect of this Lease, consult your attorney BEFORE signing.

 

	
Preferred RX, LLC

	 	
Oak Hollow Partners LLC

	
Tenant

	 	
Landlord

	 	 	 
	
By:

	 	
 

	 	
By:

	 	 
	
Date

	 	
Date

	 	 	 
	Printed Name:	
Amanda Sneed

	 	Printed Name:	
Laurie Knight

	Title: 	CEO	 	Title: 	Owner

 

	 	 	 
	
Tenant

	 	
Landlord

	 	 	 
	
By

	 	
 

	 	
By:

	 	 
	
Date

	 	
Date

	 	 	 
	Printed Name:	
Amanda Sneed

	 	Printed Name:	
Laurie Knight

	Title: 	CEO	 	Title: 	 
	 	 	 

 

	(TAR-2101) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 15 of 15
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

  

  

  

 

OAKHOLLOW BUSINESS PARK

RULES AND REGULATIONS

 

The following Rules and Regulations shall be observed by Tenant, Tenant's employees and invitees for the safety, cleanliness, care, protection, comfort and convenience of all tenants and occupants of the Property and shall be applicable to the buildings, common areas, driveways, parking lots and to the Demised Premises.  Any exception to these Rules and Regulations must first be approved in writing by Landlord.  For purposes of these Rules and Regulations, the term "Landlord" includes the property manager, the property manager's employees and any other agent or representative authorized by Landlord to manage or operate the Property.

 

Rules and Regulations:

 

1. Tenant may not conduct any auction, "flea market" or "garage sale" on the Demised Premises nor store any goods or merchandise on the Property except for Tenant's own business use.  Food may not be prepared in the Demised Premises except in small amounts for consumption of Tenant.  Vending machines or dispensing machines may not be placed in the Demised Premises without Landlord's written approval.  The Demised Premises may not be used or occupied as sleeping quarters or for lodging purposes.  No birds or animals shall be kept in or about the Property.

 

2. Tenant shall not obstruct sidewalks, driveways, loading areas, parking areas, hallways, and other similar areas designated for the collective use of tenants, or use such areas for Tenant's storage, temporary or otherwise, or for any purpose other than ingress and egress to and from the Demised Premises.  Tenant shall comply with parking rules and guidelines as may be posted on the Property from time to time.

 

3. Tenant shall not make any loud noises, unusual vibrations, unpleasant odors, objectionable or illegal activities on the Property.  Tenant shall not permit the operation of any equipment in the Demised Premises that could annoy other occupants of the Property.  Tenant shall not interfere with the possession of other tenants of the Property.

 

4. Tenant may not bring any flammable, explosive, toxic, noxious, dangerous or hazardous materials onto the Property.

 

5. Tenant shall not create any openings in the roof or exterior walls, or make any alterations, additions or improvements to the Demised Premises without the prior written consent of Landlord.  Routine installation and construction of normal communication devices which do not require any holes in the roof or exterior walls of the Property do not require the written approval of Landlord.

 

6. Movement into or out of the building through public entrances, lobbies or corridors which requires use of a hand truck, dolly or pallet jack to carry freight, furniture, office equipment, supplies and other large or heavy material, must be done at times and in a manner so as not to unduly inconvenience other occupants of the Property.  All wheels for such use must have rubber tires and edge guards to prevent damage to the building.  Tenant shall be responsible for and shall pay all costs to repair damages to the building caused by the movement of materials by Tenant.

 

7. Requests by Tenant for building services, maintenance and repair must be made in writing to the office of the property manager.  Tenant shall give prompt written notice to Landlord of any significant damage to or defects in the Demised Premises or the Property, especially including plumbing, electrical and mechanical systems, heating, ventilating and air conditioning systems, roofs, windows, doors, foundations and structural components, regardless of whose responsibility it is to repair such damage.

 

	Rules and Regulations – November 1998	 Page 1 of 3

 

 

 

 

 

8. Tenant shall not change locks or install additional locks on doors without the prior written consent of Landlord.  If Tenant changes locks or installs additional locks on the Property, Tenant shall within five days thereafter provide Landlord with a copy of each separate key to each lock.  Upon termination of Tenant's occupancy of the Demised Premises, Tenant must surrender all keys to the Demised Premises and to the Property to Landlord.  Additional keys may be obtained from the Landlord at the cost of the Tenant.

 

9. Harmful liquids, toxic wastes, bulky objects, insoluble substances and other materials which may cause clogging, stains or damage to plumbing fixtures or systems must not be placed in the lavatories, water closets, sinks or drains.  Tenants must pay the costs to repair and replace drains, plumbing fixtures and piping which is required because of damage caused by Tenant.

 

10. Tenant shall cooperate with Landlord and other occupants of the Property in keeping the Property and the Demised Premises neat and clean.  Tenant will not place or allow to be placed in the building hallways or common areas any waste paper, dust, garbage, refuse or anything whatever.  Nothing may be swept, thrown or left in the loading areas, parking lots or any other common areas on the Property.  All trash and debris must be properly placed in receptacles provided therefor.

 

11. No window screens, blinds, draperies, awnings, solar screen films, window ventilators or other materials visible from the exterior of the Demised Premises may be placed in the Demised Premises without Landlord's approval.  Landlord is entitled to control all lighting that may be visible from the exterior of the building.

 

12. Tenant shall not mark, drill into or in any way deface the walls, ceilings, partitions, floors or other parts of the Demised Premises and the Building unless Landlord has provided consent to do so.

 

13. If the Tenant desires any electrical or communications wiring, the Landlord reserves the right to direct qualified persons as to where and how the wires are to be introduced, and without such directions no borings or cutting for wires shall take place.  No other wires or pipes of any kind shall be introduced without the prior written consent of the Landlord.

 

14. No advertisement sign, notice, handbill, poster or banner may be exhibited, distributed, painted or affixed upon the Property.  No directory of tenants is allowed on the Property other than that provided by Landlord.

 

15. Tenant agrees to cooperate with and assist Landlord in the prevention of peddling, canvassing and soliciting on the Property.

 

16. Tenant accepts any and all liability for damages and injuries to persons and property resulting from the serving and/or sales of alcoholic beverages on or from the Property.

 

17. Normal building business hours are established by the Landlord from time to time.

 

	Rules and Regulations – November 1998	 Page 2 of 3

 

 

 

 

 

18. The parking of automobiles, trucks and any other motorized or nonmotorized vehicle shall be subject to reasonable regulations of the Landlord.  The Landlord shall not be responsible for damage to or theft of any vehicle, its accessories or contents.  Tractor-trailer traffic is prohibited.  Storage trailers may not be parked on the property.  No vehicles may be left on the property overnight or inoperable.  Vehicle repairs are not allowed on property.  No vehicles which include signage "For Sale" may be parked on the property.  Recreational vehicles may not be parked on the properly at any time.  Tenant parking spaces have been estimated to be approximately four spaces per one thousand square feet of Tenant's own leased premises.

 

19. The Tenant shall be entitled to have its name shown upon the directory board of the building and at one of the entrance doors to the Leased Premises, initially at the Landlord's expense.  Any future signage change will be at the Tenant's expense.  The Landlord shall in its sole discretion design the style of such identification and allocate the space on the directory board for the Tenant.

 

20. The Tenant shall take care of the carpets and window treatments in the Leased Premises and shall arrange for the carrying out or regular cleaning and shampooing of carpets and cleaning of window treatments in a manner acceptable to the Landlord.  Tenant will use protective mats under chairs.

 

21. Landlord will not be responsible for lost or stolen property, money or jewelry from Tenant's leased area or public area regardless of whether such loss occurred when area is locked against entry or not.

 

The Landlord shall have the right to make such other and further reasonable rules and regulations and to alter the same as in its judgment may from time to time be needed for the safety, care, cleanliness and appearance of the Property and for the preservation of good order therein and the same shall be kept and observed by the Tenants, their employees and invitees.  The Landlord also has the right to suspend or cancel any or all of these rules and regulations herein set out.  Revisions and additions will be binding upon the Tenant as if they had been originally prescribed herein when furnished in writing by Landlord to Tenant, provided the additions and revisions apply equally to all tenants occupying the Property.  Any failure or delay by Landlord in enforcing these Rules and Regulations will not prevent Landlord from enforcing these Rules and Regulations in the future.  If any of these Rules and Regulations is determined to be unenforceable, it shall be severed from this Lease without affecting the remainder of these Rules and Regulations.

 

	Rules and Regulations – November 1998	 Page 3 of 3

 

 

 

 

 

  

 

 

 

 

Dunn Commercial, LP

 

Texas Association of Realtors®

COMMERCIAL LEASE EXPENSE REIMBURSEMENT ADDENDUM

USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED

©Texas Association of REALTORS®, Inc. 2002

 

ADDENDUM TO THE COMMERCIAL LEASE BETWEEN THE UNDERSIGNED PARTIES CONCERNING THE LEASED PREMISES AT 1221 Corporate Dr                                                                                            

 

In addition to rent stated in the lease, Tenant will pay Landlord the additional rent described in this addendum.  Tenant will pay the additional rent each month at the time the base-monthly rent in the lease is due.

 

	
A. 

	
Method:  The additional rent will be calculated under the following method:

 

	
R

	
(1)

	

Base-year expenses:  Each month Tenant will pay Tenant's pro rata share of the projected monthly expenses for the Property that exceed the amount of the monthly base-year expenses for:

	 	 	R	
(a)

	
operating expenses.

	 	 	R	
(b)

	
the following expenses: R taxes, R insurance, R CAM, £ roof and structural.

 

	
£

	
(2)

	
Expense-stop:  Each month Tenant will pay Tenant's pro rata share of the projected monthly expenses for the Property that exceed $_________________ per square foot per year for:

	 	 	£	
(a)

	
operating expenses.

	 	 	£	
(b)

	
the following expenses: £ taxes, £ insurance, £ CAM, £ roof and structural.

 

	
£

	
(3)

	

Net: Each month Tenant will pay Tenant's pro rata share of the projected monthly expenses for the Property for:

 

	 	 	£	
(a)

	
operating expenses (note that taxes, insurance, and CAM are included in operating expenses);

	 	 	
£

	
(b)

	
taxes;

	 	 	
£

	
(c)

	
insurance;

	 
	 	 	
£

	
(d)

	
CAM;

	 
	 	 	
£

	
(e)

	
roof and structural;

	 	 	
£

	
(f)

	
____________________________________________________________.

	 	 	 	 	 	 
	£	(4)	Fixed Reimbursements: Each month Tenant will pay the stated amounts for the Property for:
	 	 	
£

	
(a)

	operating expenses:	
$_________________ per month;

	 	 	 	(note that taxes, insurance, and CAM are included in operating expenses);
	 	 	
£

	
(b)

	
taxes:

	
$_________________ per month;

	 	 	
£

	
(c)

	
insurance:

	
$_________________ per month;

	 	 	
£

	
(d)

	
CAM:

	
$_________________ per month;

	 	 	
£

	
(e)

	
roof and structural:

	
$_________________ per month;

	 	 	
£

	
(f)

	
____________________:

	
$_________________ per month.

 

	
B.

	Definitions:

      

	
  

	
(1)

	
"Tenant's pro rata share" is      6     %

 

	
  

	
(2)

	
"Base-year expenses" means the expenses checked under A(1) incurred by Landlord for the calendar year     2008    .  "Monthly base-year expenses" means base-year expenses divided by 12.

 

	
  

	
(3)

	
"Roof and structural expenses" means the cost to maintain, repair, and replace the Property's structural and common area components including the Property's foundation, load-bearing walls, roof and roof components (for example, roof covering, deck, flashing, and skylights), and parking lot.

 

	(TAR-2103) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 1 of 2
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

 

 

 

 

	
Expense Reimbursement Addendum concerning:

	
1221 Corporate Dr

 

	
 

	
(4)

	
"Operating expenses" means all of Landlord's expenses reasonably incurred to maintain, repair, operate, secure, insure and own the Property.  Operating expenses do not include capital expenditures, interest, depreciation, tenant improvements, and brokers' fees.  The following expenses are included in operating expenses, but operating expenses are not limited to the following:

	
  

	
(i)

	
"CAM" means common area maintenance expenses which are the cost to own, operate, repair, and maintain the common areas that are part of the Property and are available for the common use of all tenants (for example, security, lighting, painting, cleaning, decorations, utilities, trash removal, pest control, promotional expenses, and other expenses reasonably related to the common areas);

	
  

	
(ii)

	
"insurance" means Landlord's costs to insure the leased premises and Property including but not limited to insurance for casualty loss, general liability, and reasonable rent loss; and

	
  

	
(iii)

	
"taxes" means the real property ad valorem taxes assessed against the leased premises and Property inclusive of all general and special assessments and surcharges.

 

	
C.

	
Projected Monthly Expenses:  This paragraph does not apply if Paragraph A(4) applies.  On or about December 31 of each calendar year Landlord will project the applicable monthly expenses (those that Tenant is to pay under this addendum) for the following calendar year and will notify Tenant of the projected expenses.  The projected expenses are based on Landlord's estimates of such expenses.  The actual expenses may vary.

 

	
 

	
Notice:  If Paragraph A(1), A(2), or A(3) applies:  (i) the applicable projected monthly expenses for the calendar year in which the above-referenced lease commences is $_______________ per square foot; and (ii) the total rentable area of the Property presently used by Landlord for calculating expense reimbursements is ___________________ square feet.

 

	
D.

	
Reconciliation:  This paragraph does not apply if Paragraph A(4) applies.  Within a reasonable time after the end of each calendar year, Landlord will notify Tenant of the actual costs of the applicable expenses (those that Tenant is to pay under this addendum) for the previous year.  If the actual costs of the applicable expenses exceed the amounts paid or owed by Tenant for the previous year, Tenant must pay the deficient amount to Landlord within      15      days after Landlord notifies Tenant of the deficient amount.  If the actual costs of the applicable expenses are less than the amounts paid by Tenant for the previous year, Landlord will refund the excess to Tenant or will credit the excess to Tenant's next rent payment.  Tenant may audit or examine those items in Landlord's records that relate to Tenant's obligations under this addendum.  Landlord will promptly refund to Tenant any overpayment revealed by an audit or examination.  If the audit or examination reveals an error of more than 5% over the amounts Landlord collected in a calendar year from Tenant under this addendum, Landlord will pay the reasonable cost of the audit or examination. Landlord may not seek a deficiency from Tenant under this paragraph if Landlord fails to timely provide the required notice.

 

	
E.

	
Special Provisions:

 

	Oakhollow Partners LLC	 	 
	Landlord	 	

Tenant

	 	 	 
	
By:

	 	 	 	
By:

	 	 
	 	 	Date	 	 	 	Date
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Landlord	 	
Tenant

	 	 	 	 	 	 	 
	By:	 	 	 	By:	 	 
	
Date

	 	
Date

 

	(TAR-2103) 6-7-02	Initialed for identification by Tenants: _____, _____, and Landlord:  _____, _____	Page 2 of 2
	Produced by Realty One Software, P.O. Box 2489, Amarillo, TX 79105, (806) 342-0217	 
	 Provided by David R. Dunn, SIOR, CCIM 08/04/2006        ID:  Blank

 

 

 

 

MODIFICATION OF COMMERCIAL LEASE AGREEMENT

 

This Modification of Commercial Lease Agreement (the "Modification") is entered into by and between the undersigned Landlord and Tenant, to modify the Commercial Lease Agreement (the "Lease") having an Effective Date of July 23, 2007 , covering the Demised Premises described as Brookhollow/Arlington Addition Blk 2 Lot 3R with an address of 1221 Corporate Dr. E, Arlington, TX 76006 in Tarrant County, Texas. In consideration of the provisions contained herein, Landlord and Tenant agree as follows:

 

R      A.    The Base Rent is changed to $   4796.00                           per month beginning   June 1, 2012               .

 

R      B.    The Commencement Date of the Lease is changed to or confirmed as ___________________________.

 

R      C.    The Expiration Date of the Lease Term is changed to or confirmed as  May 31, 2017                                  .

 

R      D.    Paragraph   4A   is changed to read as follows:

 

Landlord agrees to abate Base Rent for the Months of June 2012, July 2012 and August 2012. Tenant must provide Landlord all paid receipts which must be consistent with the attached bid in scope. Tenant will be allowed to terminate their dumpster requirement per the lease agreement.

 

EXCEPT as expressly changed by this Modification, all of the provisions set forth in the Lease (as may have been previously modified) are confirmed and ratified and shall remain in full force and effect. All capitalized terms used in this Modification, which are not defined in this Modification, have the meanings given to them in the Lease. This Modification is effective as of the last date beneath the signatures of Landlord and Tenant below.

 

	LANDLORD	 	TENANT	 
	 	 	 	 
	Oak Hollow Partners	 	
Preferred RX, LLC

	 
	 	 	 	 
	By [Signature]:	
 

	 	By [Signature]:	
 

	 
	Name: 	
Laurie Knight

	 	Name: 	
 

	 
	Title: 	
Owner 

	 	Title: 	
 

	 
	Date of Execution:	 	 	Date of Execution:	 	 
	 	 	 	 	 	 
	ALL GUARANTEES of the Lease shall remain in full force and effect.  This Modification is agreed to and accepted by Guarantor for the purpose of confirming and ratifying the continuing validity of the Guarantor's guaranty of the Lease, as amended herein.	 	GUARANTOR	 
	 	 	By [Signature]:	 	 
	THE BROKERS agree to and accept this Modification.	 	Name: 	 	 
	 	 	 	 	 
	PRINCIPAL BROKER	 	
COOPERATING BROKER

	 
	 	 	 	 	 
	Sperry Van Ness Dunn Commercial Mgmt., Inc. 	 	 	 	 
	 	 	 	 	 
	
By [Signature]: 

	 	 	By [Signature]:	 	 
	Name: 	David R. Dunn CCIM, SIOR	 	Name: 	 	 

 

Copyright Notice: This form is provided for the use of members of the North Texas Commercial Association of Realtors, Inc. Permission is hereby granted to make limited copies of this form for use in a particular Texas real estate transaction. Contact the NTCAR office to confirm that you are using the current version of this form.

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