Document:

termsdoc07-a7re.htm

     

     

     

    
      Exhibit
        4.1

      

         

        CITIBANK
          CREDIT CARD ISSUANCE TRUST

        

        Citiseries

        Class
          2007-A7 Notes

        (Issuance
          Date September 12, 2007)

        

        Issuer
          Certificate

        Pursuant
          to Sections 202 and 301(h) of the Indenture

        

        Reference
          is made to the Indenture, dated as of September 26, 2000, as amended by
          Amendment No. 1 thereto dated as of November 14, 2001, each between Citibank
          Credit Card Issuance Trust (the "Issuer") and Deutsche Bank Trust Company
          Americas, as trustee (the "Indenture").  Capitalized terms used herein
          that are not otherwise defined have the meanings set forth in the Indenture.
          All
          references herein to designated Sections are to the designated Sections
          of the
          Indenture.

        

        Section
          301(h) provides that the Issuer may from time to time create a tranche
          of Notes
          either by or pursuant to an Issuer Certificate setting forth the principal
          terms
          thereof.  Pursuant to an Issuer Certificate dated August 27, 2007, a
          tranche of Notes of the Citiseries designated Class 2007-A7 was established,
          of
          which $2,250,000,000 Outstanding Dollar Principal Amount is Outstanding
          (the
          "Outstanding 2007-A7 Notes").  This Issuer Certificate relates to
          additional Notes of Class 2007-A7 (hereinafter, the "New Class 2007-A7
          Notes",
          and together with the Outstanding Class 2007-A7 Notes, the "Class 2007-A7
          Notes") having the following terms:

        

        Series
          Designation:  Citiseries.  This series is included
          in Group 1.

        

        Tranche
          Designation:  $3,250,000,000 Floating Rate Class 2007-A7
          Notes of August 2012 (Legal Maturity Date August 2014)

        

        Currency:  The
          Class 2007-A7 Notes will be payable, and denominated, in Dollars.

        

        Denominations:  The
          New Class 2007-A7 Notes will be issuable in minimum denominations of $100,000
          and multiples of $1,000 in excess of that amount.

        

        Issuance
          Date:  September 12, 2007

        

        Initial
          Principal Amount:  $1,000,000,000

        

        Issue
          Price:  99.992% plus interest accrued from August 27, 2007 to
          the Issuance Date

        

        Interest
          Rate:  Interest will accrue on the New Class 2007-A7 Notes
          from August 27, 2007.  The Class 2007-A7 Notes will accrue interest
          with respect to any interest period at a per annum rate equal to the Class
          2007-A7 Note Rate for such interest period, calculated on the basis of
          the
          actual number of days in such interest period divided by 360.  The
          "Class 2007-A7 Note Rate" means, with respect to the first interest period,
          5.83158% per annum and, with respect to each interest period thereafter,
          a per
          annum rate equal to LIBOR for such interest period plus 0.35%.

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        The
          Issuer will determine LIBOR for each applicable interest period on the
          second
          business day before the beginning of that interest period.  For
          purposes of calculating LIBOR, a business day is any day on which dealings
          in
          deposits in U.S. Dollars are transacted in the London interbank
          market.

        

        "LIBOR"
          means, as of any date of determination, the rate for deposits in U.S. Dollars
          for the Designated Maturity (commencing on the first day of the relevant
          interest period) which appears on the Reuters Screen LIBOR01 Page as of
          11:00
          a.m., London time, on such date. If such rate does not appear on the Reuters
          Screen LIBOR01 Page, the rate for that day will be determined on the basis
          of
          the rates at which deposits in U.S. Dollars are offered by the Reference
          Banks
          at approximately 11:00 a.m., London time, on that day to prime banks in
          the
          London interbank market for the Designated Maturity (commencing on the
          first day
          of the relevant interest period). The Issuer will request the principal
          London
          office of each of the Reference Banks to provide a quotation of its rate.
          If at
          least two such quotations are provided, the rate for that day will be the
          arithmetic mean of the quotations. If fewer than two quotations are provided
          as
          requested, the rate for that day will be the arithmetic mean of the rates
          quoted
          by major banks in New York City, selected by the Issuer, at approximately
          11:00
          a.m., New York City time, on that day for loans in U.S. Dollars to leading
          European banks for a period of the Designated Maturity (commencing on the
          first
          day of the relevant interest period).

        

        "Reuters
          Screen LIBOR01 Page" means the display page currently so designated on the
          Reuters Monitor Money Rates service (or such other page as may replace
          that page
          on that service or any successor service for the purpose of displaying
          comparable rates or prices).

        

        "Designated
          Maturity" means one month.

        

        "Reference
          Banks" means four major banks in the London interbank market selected by
          the Issuer.

        

        Additional
          Deposit to Interest Funding sub-Account: On the Issuance Date of the
          New Class 2007-A7 Notes, the Issuer will make or cause to be made a deposit
          to
          the Interest Funding sub-Account for the Class 2007-A7 Notes from the proceeds
          to the Issuer from the issuance of the New Class 2007-A7 Notes in an amount
          equal to $2,591,813.33.  This amount will not be subject to
          reallocation pursuant to Section 505.  Notwithstanding any provision
          in the Indenture to the contrary, the deposit targeted to be made to the
          Interest Funding sub-Account for the Class 2007-A7 Notes with respect to
          the New
          Class 2007-A7 Notes on September 19, 2007 will be $1,295,906.67.

        

        Scheduled
          Interest Payment Dates:  The 20th
          day of each month,
          beginning September 2007.

        

        Each
          payment of interest on the New Class 2007-A7 Notes will include all interest
          accrued from and including the preceding Interest Payment Date -- or, for
          the
          first interest period, from and including August 27, 2007 -- to and including
          the day preceding the current Interest Payment Date, plus any interest
          accrued
          but not previously paid.

        

        Expected
          Principal Payment Date:  August 20, 2012

        

        Legal
          Maturity Date:  August 20, 2014

        

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        Monthly
          Principal Date:  For the month in which the Expected
          Principal Payment Date occurs, August 20, 2012, and for each other month,
          the
          20th day
          of
          such month, or if such day is not a Business Day, the next following Business
          Day.

        

        Required
          Subordinated Amount of Class B
          Notes:  $59,829,100

        

        Required
          Subordinated Amount of Class C
          Notes:  $79,772,100

        

        Controlled
          Accumulation Amount:  $83,333,333

        

        Form
          of Notes:  The New Class 2007-A7 Notes will be issued as
          Global Notes.  The Global Notes will initially be registered in the
          name of Cede & Co., as nominee of The Depository Trust Company, and will be
          exchangeable for individual Notes only in accordance with the provisions
          of
          Section 204(c).

        

        Additional
          Issuances of Class 2007-A7 Notes:  The Issuer may at any time
          and from time to time issue additional Class 2007-A7 Notes, subject to
          the
          satisfaction of (i) the conditions precedent set forth in Section 311(a)
          and
          (ii) the following conditions:

        

        
          	
                   

                	
                  (a)
                    the Issuer has obtained written confirmation from each Rating
                    Agency that
                    there will be no Ratings Effect with respect to the then outstanding
                    Class
                    2007-A7 Notes as a result of the issuance of such additional
                    Class 2007-A7
                    Notes;

                

        

        

        
          	
                   

                	
                  (b)
                    as of the date of issuance of the additional Class 2007-A7 Notes,
                    all
                    amounts due and owing to the Holders of the then outstanding
                    Class 2007-A7
                    Notes have been paid and there is no Nominal Liquidation Amount
                    Deficit
                    with respect to the then outstanding Class 2007-A7
                    Notes;

                

        

        

        
          	
                   

                	
                  (c)
                    the additional Class 2007-A7 Notes will be fungible with the
                    original
                    Class 2007-A7 Notes for federal income tax
                    purposes;

                

        

        

        
          	
                   

                	
                  (d)
                    if Holders of the then outstanding Class 2007-A7 Notes have benefit
                    of a
                    Derivative Agreement, the Issuer will have obtained a Derivative
                    Agreement
                    for the benefit of the Holders of the additional Class 2007-A7
                    Notes;
                    and

                

        

        

        
          	
                   

                	
                  (e)
                    the ratio of the Controlled Accumulation Amount to the Initial
                    Dollar
                    Principal Amount of the Class 2007-A7 Notes, including the additional
                    Class 2007-A7 Notes, will be equal to the ratio of the Controlled
                    Accumulation Amount (before giving effect to the additional issuance)
                    to
                    the Initial Dollar Principal Amount of the Class 2007-A7 Notes,
                    excluding
                    the additional Class 2007-A7 Notes.

                

        

        

        As
          of the
          date of issuance of additional Class 2007-A7 Notes, the Outstanding Dollar
          Principal Amount and Nominal Liquidation Amount of the Class 2007-A7 Notes
          will
          be increased to reflect the Initial Dollar Principal Amount of the additional
          Class 2007-A7 Notes.

        

        Any
          outstanding Class 2007-A7 Notes and any additional Class 2007-A7 Notes
          will be
          equally and ratably entitled to the benefits of the Indenture without
          preference, priority or distinction.

        

        Optional
          Redemption Provisions other than Section 1202 "Clean-Up
          Call":  None

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        Additional
          Early Redemption Events or changes to Early Redemption
          Events:  None

        

        Additional
          Events of Default or changes to Events of
          Default:  None

        

        Business
          Day: means any day other than (a) a Saturday or Sunday or (b) any
          other
          day on which national banking associations or state banking institutions
          in New
          York, New York or South Dakota, or any other state in which the principal
          executive offices of any Additional Seller are located, are authorized
          or
          obligated by law, executive order or governmental decree to be
          closed.

        

        Securities
          Exchange Listing:  Application will be made to list the New
          Class 2007-A7 Notes on the Irish Stock Exchange.

        

        Provisions
          Relating to Issuance of New Class 2007-A7 Notes: The New Class 2007-A7
          Notes are part of the Class 2007-A7 Notes, and the Outstanding Class 2007-A7
          Notes and the New Class 2007-A7 Notes together constitute a single tranche
          of
          Class 2007-A7 Notes and will be equally and ratably entitled to the benefits
          of
          the Indenture without preference, priority or distinction.  The New
          Class 2007-A7 Notes are fungible with the Outstanding Class 2007-A7 Notes
          and
          are intended to trade interchangeably with the Outstanding Class 2007-A7
          Notes.

        

        The
          Initial Dollar Principal Amount of the New Class 2007-A7 Notes is
          $1,000,000,000, and, after giving effect to the issuance of the New Class
          2007-A7 Notes, the Initial Dollar Principal Amount of the Class 2007-A7
          Notes
          will be the sum of the Initial Dollar Principal Amounts of the Outstanding
          Class
          2007-A7 Notes and the New Class 2007-A7 Notes.

        

        The
          Nominal Liquidation Amount of the New Class 2007-A7 Notes is $1,000,000,000,
          and, after giving effect to the issuance of the New Class 2007-A7 Notes,
          the
          Nominal Liquidation Amount of the Class 2007-A7 Notes will be the sum of
          the
          Nominal Liquidation Amounts of the Outstanding Class 2007-A7 Notes and
          the New
          Class 2007-A7 Notes.

        

        The
          Controlled Accumulation Amount of the New Class 2007-A7 Notes is $83,333,333,
          and, after giving effect to the issuance of the New Class 2007-A7 Notes,
          the
          Controlled Accumulation Amount of the Class 2007-A7 Notes will be the sum
          of the
          Controlled Accumulation Amounts of the Outstanding Class 2007-A7 Notes
          and the
          New Class 2007-A7 Notes.

        

        The
          Required Subordinated Amount of Class B Notes for the New Class 2007-A7
          Notes is
          $59,829,100, and, after giving effect to the issuance of the New Class
          2007-A7
          Notes, the Required Subordinated Amount of Class B Notes for the Class
          2007-A7
          Notes will be the sum of the Required Subordinated Amounts of Class B Notes
          for
          the Outstanding Class 2007-A7 Notes and the New Class 2007-A7
          Notes.  The Required Subordinated Amount of Class C Notes for the New
          Class 2007-A7 Notes is $79,772,100, and, after giving effect to the issuance
          of
          the New Class 2007-A7 Notes, the Required Subordinated Amount of Class
          C Notes
          for the Class 2007-A7 Notes will be the sum of the Required Subordinated
          Amounts
          of Class C Notes for the Outstanding Class 2007-A7 Notes and the New Class
          2007-A7 Notes.

        

        This
          Issuer Certificate and the Issuer Certificate relating to the Outstanding
          Class
          2007-A7 Notes together constitute the terms document for the Class 2007-A7
          Notes.

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        The
          New
          Class 2007-A7 Notes shall have such other terms as are set forth in the
          form of
          Note attached hereto as Exhibit A.  Pursuant to Section 202, the form
          of Note attached hereto has been approved by the Issuer.

        

        

        CITIBANK
          CREDIT CARD ISSUANCE TRUST

        

        
          	
                   

                	
                  By

                	
                  Citibank
                    (South Dakota), National
                    Association,

                

        

        as
          Managing Beneficiary

        

        

        /s/
          Douglas C. Morrison

        --------------------------------------------

        Douglas
          C. Morrison

        Vice
          President

        

        Dated:  September
          12, 2007

        

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        Citiseries

        Class
          2007-A7 Notes

        (Issuance
          Date September 12, 2007)

        

        

        Reference
          is made to the resolutions adopted by the Board of Directors of Citibank
          (South
          Dakota), National Association ("Citibank (South Dakota)") on April 26,
          2000, as
          amended on September 25, 2001 and October 25, 2006. The resolutions authorize
          Citibank (South Dakota) from time to time to issue and sell, or to arrange
          for
          or participate in the issuance and sale of, one or more series and/or classes
          of
          pass-through certificates, participation certificates, commercial paper,
          notes
          or other securities representing ownership interests in, or backed by,
          pools of
          credit card receivables or interests therein ("Receivables") in an aggregate
          principal amount such that up to $125,000,000,000 of such certificates,
          commercial paper, notes or securities are outstanding at any one time and
          to
          sell, transfer, convey or assign Receivables to trusts or other special
          purpose
          entities in connection therewith on such terms as to be determined by the
          Citibank (South Dakota) Pricing and Loan Committee (the "Pricing and Loan
          Committee").

        

        The
          undersigned, a duly authorized member of the Pricing and Loan Committee,
          on
          behalf of such Pricing and Loan Committee, does hereby certify that the
          terms of
          the New Class 2007-A7 Notes set forth in and to be created by the preceding
          Issuer Certificate and the increase in the Invested Amount of the Collateral
          Certificate resulting from the issuance of such Notes have been approved
          by such
          Pricing and Loan Committee. In addition, the following underwriting/selling
          agent terms with respect to the New Class 2007-A7 Notes have been approved
          by
          such Pricing and Loan Committee:

        

        Issue
          Price:  99.992% plus interest accrued from August 27, 2007 to the
          Issuance Date

        

        Underwriting
          Commission:  0.225%

        

        Proceeds
          to Issuer:  99.767% plus interest accrued from August 27, 2007 to the
          Issuance Date

        

        Representative
          of the Underwriters:  Citigroup Global Markets Inc.

        

        

        The
          preceding Issuer Certificate and this certification of Pricing and Loan
          Committee approval shall be, continuously from the time of their execution,
          official records of Citibank (South Dakota).

        

        

        

        
          	
                  /s/
                    Douglas C. Morrison

                  -------------------------------------

                
	
                  Douglas
                    C. Morrison

                
	
                  Member
                    of the Pricing and Loan Committee

                
	
                  Citibank
                    (South Dakota), National
                    Association

                

        

        

        

        Dated:  September
          12, 2007

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        Exhibit
          A

        

        FORM
          OF

        

        CITISERIES

        

        FLOATING
          RATE CLASS 2007-A7 NOTES OF AUGUST 2012

        (Legal
          Maturity Date August 2014)

        

        

        
          	
                  $___,000,000

                	 	
                  REGISTERED

                
	
                  CUSIP
                    No. 17305E DX 0

                	 	
                  No.
                    R-__

                

        

        

        UNLESS
          THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
          TRUST
          COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
          REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
          IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
          AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
          TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
          DTC),
          ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
          ANY
          PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
          AN INTEREST HEREIN.

        

        THE
          PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN AND IN THE INDENTURE
          REFERRED TO BELOW. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS
          NOTE AT
          ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

        

        

        CITIBANK
          CREDIT CARD ISSUANCE TRUST

        

        CITISERIES

        

        FLOATING
          RATE CLASS 2007-A7 NOTES OF AUGUST 2012

        (Legal
          Maturity Date August 2014)

        

        

        CITIBANK
          CREDIT CARD ISSUANCE TRUST, a trust formed and existing under the laws
          of the
          State of Delaware (including any successor, the "Issuer"), for value received,
          hereby promises to pay to CEDE & CO., or its registered assigns, the
          principal amount of _____ HUNDRED MILLION DOLLARS ($___,000,000).  The
          Expected Principal Payment Date for this Note is August 20, 2012.  The
          Legal Maturity Date for this Note is August 20, 2014.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        The
          Issuer hereby promises to pay interest on this Note on the 20th day
          of each month,
          beginning September 2007, until the principal of this Note is paid or made
          available for payment, subject to certain limitations set forth in the
          Indenture.  Interest will accrue on the outstanding principal amount
          of this Note for each interest period in an amount equal to the product
          of (i)
          the actual number of days in such interest period divided by 360, (ii)
          a rate
          per annum equal to the Class 2007-A7 Note Rate for such interest period,
          and
          (iii) the outstanding principal amount of this Note as of the preceding
          Interest
          Payment Date (after giving effect to any payments of principal made on
          the
          preceding Interest Payment Date) or, in the case of the first Interest
          Payment
          Date, the initial principal amount of this Note.  The Class 2007-A7
          Note Rate will be determined as provided in the Indenture.

        
           

          If
            any
            Interest Payment Date or Principal Payment Date of this Note falls on
            a day that
            is not a Business Day, the required payment of interest or principal
            will be
            made on the following Business Day.

        

        

        This
          Note
          is one of the Citiseries, Class 2007-A7 Notes issued pursuant to the Indenture,
          dated as of September 26, 2000 (as amended and otherwise modified from
          time to
          time, the "Indenture") between the Issuer and Deutsche Bank Trust Company
          Americas, as Trustee. For purposes of this Note, the term "Indenture" includes
          any supplemental indenture or Issuer Certificate relating to the Citiseries,
          Class 2007-A7 Notes. This Note is subject to all of the terms of the Indenture.
          All terms used in this Note that are not otherwise defined herein and that
          are
          defined in the Indenture will have the meanings assigned to them
          therein.

        

        The
          principal of and interest on this Note are payable in such coin or currency
          of
          the United States of America as at the time of payment is legal tender
          for
          payment of public and private debts.

        

        Each
          Holder by acceptance of this Note, and each owner of a beneficial interest
          in
          this Note by acceptance of a beneficial interest in this Note, is deemed
          to have
          consented to such amendments to the Pooling and Servicing Agreement and
          other
          operative documents as are necessary to permit the Seller to retain sale
          treatment for accounting purposes of the transfer of assets to the Master
          Trust,
          in accordance with the provisions of Financial Accounting Standards Board
          SFAS
          No. 140.

        

        Reference
          is made to the further provisions of this Note set forth on the reverse
          hereof,
          which will have the same effect as though fully set forth on the face of
          this
          Note.

        

        Unless
          the certificate of authentication hereon has been executed by the Trustee
          whose
          name appears below by manual signature, this Note will not

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        be
          entitled to any benefit under the Indenture, or be valid or obligatory
          for any
          purpose.

        

        IN
          WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
          or
          in facsimile, by an Issuer Authorized Officer.

        

        
          	 	
                  CITIBANK
                    CREDIT CARD ISSUANCE TRUST

                
	 	 
	 	
                  By:           CITIBANK
                    (SOUTH DAKOTA),

                
	 	
                  NATIONAL
                    ASSOCIATION,

                
	 	
                  as
                    Managing Beneficiary of

                
	 	
                  Citibank
                    Credit Card Issuance Trust

                
	 	 
	 	 
	 	
                  By:
                    __________________________________

                
	 	
                  Douglas
                    C.
                    Morrison

                
	 	
                  Vice
                    President

                

        

        

        Dated:  September
          12, 2007

        

        

        

        

        TRUSTEE'S
          CERTIFICATE OF AUTHENTICATION

        

        

        This
          is
          one of the Notes designated above and referred to in the within mentioned
          Indenture.

        

        

        
          	 	
                  DEUTSCHE
                    BANK TRUST COMPANY AMERICAS,

                
	 	
                  as
                    Trustee under the Indenture

                
	 	 
	 	 
	 	
                  By:
                    _________________________________

                
	 	
                  Authorized
                    Signatory

                

        

        

        Dated:  September
          12, 2007

        

        

        

        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        REVERSE
          OF NOTE

        

        This
          Note
          is one of a duly authorized issue of Notes of the Issuer, designated as
          its
          Citiseries Floating Rate Class 2007-A7 Notes of August 2012 (Legal Maturity
          Date
          August 2014) (herein called the "Notes"), all issued under an Indenture,
          to
          which Indenture reference is hereby made for a statement of the respective
          rights and obligations thereunder of the Issuer, the Trustee and the Holders
          of
          the Notes.

        

        This
          Note
          ranks pari passu with all other Class A Notes of the same series, as set
          forth
          in the Indenture. This Note is secured to the extent, and by the collateral,
          described in the Indenture.

        

        The
          Issuer will pay interest on overdue interest as set forth in the Indenture
          to
          the extent lawful.

        

        Each
          Holder by acceptance of this Note, and each owner of a beneficial interest
          in
          this Note by acceptance of a beneficial interest in this Note, agrees that
          no
          recourse may be taken, directly or indirectly, with respect to the obligations
          of the Issuer or the Trustee on the Notes, against the Issuer, the Issuer
          Trustee, Citibank (South Dakota), the Trustee or any affiliate, officer,
          employee or director of any of them, and the obligation of the Issuer to
          pay
          principal of or interest on this Note or any other amount payable to the
          Holder
          of this Note will be subject to Article V of the Indenture.

        

        Each
          Holder by acceptance of this Note, and each owner of a beneficial interest
          in
          this Note by acceptance of a beneficial interest in this Note, agrees that
          this
          Note is intended to be debt of Citibank (South Dakota) for federal, state
          and
          local income and franchise tax purposes, and agrees to treat this Note
          accordingly for all such purposes, unless otherwise required by a taxing
          authority.

        

        Each
          Holder by acceptance of this Note, and each owner of a beneficial interest
          in
          this Note by acceptance of a beneficial interest in this Note, agrees that
          it
          will not at any time institute against the Issuer, or join in any institution
          against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
          or liquidation proceeding, or other proceedings under any United States
          federal
          or state bankruptcy or similar law in connection with any obligations relating
          to this Note, the Indenture or any Derivative Agreement.

        

        This
          Note
          and the Indenture will be construed in accordance with and governed by
          the laws
          of the State of New York.

        

        No
          reference herein to the Indenture and no provision of this Note or of the
          Indenture will alter or impair the obligation of the Issuer, which is absolute
          and unconditional, to pay the principal of and interest on this Note at
          the
          times, place and rate, and in the coin or currency, herein
          prescribed.

        

        Certain
          amendments may be made to the Indenture without the consent of the Holder
          of
          this Note.  This Note must be surrendered for final payment of
          principal and interest.

        

        

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        ASSIGNMENT

        

        

        Social
          Security or taxpayer I.D. or other identifying number of
          assignee:____________________

        

        FOR
          VALUE
          RECEIVED, the undersigned hereby sells, assigns and transfers unto

        

        ___________________________________________________________________

        

        ___________________________________________________________________

        (name
          and
          address of assignee)

        

        the
          within Note and all rights thereunder, and hereby irrevocably constitutes
          and
          appoints __________________________________________________________, attorney,
          to transfer said Note on the books kept for registration thereof, with
          full
          power of substitution in the premises.

        

        Dated:  ____________________________

        

        _________________________*

        
          	
                   

                	
                  Signature
                    Guaranteed:

                

        

        

        

        

        

        ----------------

        *    NOTE:
          The signature to this assignment must correspond with the name of the registered
          owner as it appears on the face of the within Note in every particular
          without
          alteration, enlargement or any change whatsoever.

        

        

        

        

        

5ex101092007.htm

    EXHIBIT
      10.1

     

    THIRD
      AMENDMENT TO LEASE

     

    Hemagen
      Diagnostics, Inc., a Delaware corporation (hereinafter referred to as “Tenant”),
      entered into a lease with the then-owner of the building and surrounding
      property located at 9033 Red Branch Road in Columbia, Maryland (the “Property”)
      for a space containing approximately 27,975 square feet of gross floor area
      and
      27,400 square feet of rentable area (the “Premises”).  Thereafter, on
      or about December 30, 1997, the then-owner of the Property, E. Fulton Brylawski,
      conveyed his interest in the Property to 9033 Red Branch Road, LLC, a Maryland
      limited liability company (hereinafter referred to as
“Landlord”).  The Landlord and Tenant have amended the original lease
      twice.  The First Amendment extended the term until June 30,
      2002.  The Second Amendment was executed by Landlord on June 15, 2000,
      and extended the lease term until June 30, 2007 (the original lease as well
      as
      any Amendments thereto including the Third Amendment, as defined below, are
      herein collectively referred to as the “Lease”).  Now, in
      consideration of the mutual promises and other consideration already received,
      receipt of which is acknowledged by each party to this amendment (hereafter
      the
“Third Amendment”), Landlord and Tenant hereby agree as follows:

     

    1.           Paragraph
      2 of the Lease shall be modified such that the lease term is extended for an
      additional five (5) years, commencing on July 1, 2007, and expiring on June
      30,
      2012 (the “Primary Term”).

     

    2.           Effective
      the later of (a) September 30, 2007 or (b) upon such date that Tenant notifies
      Landlord with 30 days advance notice, that it has vacated the space located
      in
      the front section of Bay B, the Landlord agrees to accept the return of an
      estimated Seven Thousand Two Hundred and Ninety (7,290) square feet, which
      is
      the front section of Bay B less the pro-rata share of the electrical room and
      corridor (the “Returned Space”) as shown on Exhibit 1 to this Third
      Amendment.  Tenant warrants to Landlord that it has no equipment or
      fixtures in the dock area or any area behind or in front of the Returned
      Space.  The exterior air handler shall only be permitted to be behind
      the New Space (hereinafter defined).  Tenant acknowledges that any new
      tenant occupying the Returned Space has the right to utilize the corridor as
      a
      primary or secondary entrance providing that Tenant retains access to the
      Electrical Room.  The Premises, which is currently defined in the
      Lease as Bays C, D, and the front part of Bay B, shall be reduced to
      approximately 20,110 square feet including the Tenant’s allocable share of the
      electrical room and hallway to the electrical room that is located within Bay
      B
      (the “New Space”).  The New Space shall be Bay C and D only and the
      Tenant’s proportionate share of the Property shall be reduced to Thirty Three
      point Five Two Percent (33.52)% (20,110/60,000) if Tenant reduces the size
      of
      the Premises to the New Space.  Commencing with the execution of this
      Agreement, Landlord shall have the right to show the Returned Space at any
      time
      during normal business hours.

     

    (a)           Tenant
      shall be responsible for all costs and expenses in relocating its operations
      from the Returned Space and for retro fitting and reconfiguring the interior
      of
      the New Space.  All work performed by Tenant and its contractors shall
      meet all applicable building codes and other governmental requirements and
      shall
      be performed by licensed and properly insured personnel and
      contractors.  Landlord to be named as

     

    
      
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    additional
      insured and provided certificates of insurance from contractors working on
      Tenant’s behalf in the New Space and Returned Space.

     

    (b)           Landlord
      shall be responsible for removing any and all electrical connections and
      electrical circuits that serve the New Space from the existing meter located
      in
      the electrical room in Bay B that serves both the New Space and the Returned
      Space to a separate meter to be furnished and installed by Landlord to solely
      serve the New Space (collectively, the “Meter Work”).  The first
      $5,000 of expense incurred by the Landlord in regard to the Meter Work shall
      be
      paid for by the Tenant by deducting said amount from the Allowance as defined
      in
      paragraph 2(c) below.  The next $5,000 of expense incurred by the
      Landlord in regard to the Meter Work shall be split equally between the Landlord
      and the Tenant and any expense in excess of $10,000 shall be paid for solely
      by
      the Landlord.  The Landlord shall pass through its actual out of
      pocket costs incurred in regard to the Meter Work as described above, without
      any additional overhead or markup but only to the extent that the total cost
      to
      Tenant shall not exceed $10,000 including the initial $5,000 as described
      above.

     

    All
      damage i.e., drywall, floor and otherwise, caused by removal of Tenant’s lab
      equipment or any other equipment or property from the Returned Space will be
      repaired by Tenant (and any expense of Tenant shall be deducted from the
      Allowance) and/or replaced if necessary in a workmanlike manner.

     

    Tenant
      will remove the personnel door currently separating the Returned Space from
      the
      New Space and block up any such opening with 8” cinder block.  Tenant
      and Landlord have agreed to share equally in the cost of the installation of
      the
      8” cinder block blocking up the opening created from the removal of the
      personnel door the space.  Returned Space shall be tendered to
      Landlord vacant of tenant equipment and property and shall be broom
      clean.

     

    (c)           Landlord
      agrees to provide herewith a Tenant Improvement Allowance of $154,400 ($200,000
      less 2006 CAM Rec of $45,100 (as described in section 10 of this agreement)
      and
      Legal Invoice Settlement of $500) (the “Allowance”) to be used for the purpose
      of making “Eligible Repairs” to the New Space.  “Eligible Repairs”
shall include any third party non-affiliated costs of new interior construction,
      retro fitting and improving existing improvements in and for the New
      Space.  Eligible Costs also include any Landlord pre-approved third
      party non-affiliated cost of commercially reasonable architectural, commercially
      reasonable engineering design fees and permit costs in and for the New
      Space.  In any event Landlord approval shall not be unreasonably
      withheld, and shall be made within 10 calendar days after verified receipt
      by
      the Landlord of complete documents.  If Landlord does not respond
      within the 10 calendar days, then approval shall be deemed to have
      occurred.  The cost of purchasing or leasing office furniture,
      computer equipment, fixtures or other personal property and equipment are not
      Eligible Repairs

     

    (d)           The
      Landlord agrees to pay invoices from Tenant submitted with appropriate invoices
      from third party non-affiliated contractors for completed work approved and
      presented by Tenant by the 1st and 15th for Eligible
      Repairs with lien

     

    
      
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    releases,
      bi-weekly estimated to be on the 15th and 30th
      days of each
      month.  Tenant agrees to promptly pay all contractors for amounts in
      excess of the Allowance and to take any and all actions necessary to prevent
      any
      liens related to Tenant’s work from attaching to the Premises.  Tenant
      shall not be permitted to add the cost of any of Tenants overhead or markup
      to
      any invoices.  In the event the Tenant utilizes a third party
      unaffiliated general contractor, the reasonable market cost of overhead or
      markup to the invoice will be permitted.

     

    (e)           Upon
      the expiration or earlier termination of this Third Lease Amendment, Tenant
      shall return the Premises to Landlord broom clean and in substantially the
      same
      condition as “original condition” reasonable wear and tear
      excepted.  In the case of Tenant making upgrades of office space,
      labs, and/or other general space, such upgrades will be considered to be
      original condition.  Tenant shall remove any of its Trade Fixtures
      previously installed or installed after the date of this Lease provided that
      Tenant takes reasonable care to patch any holes, properly disconnect and cap
      and
      identify electrical and plumbing lines, repair any damaged concrete flooring,
      remove any mountings, and restore any floor coverings to approximately the
      original conditions consistent with the appearance and condition of surroundings
      portions of the Premises.  Tenant’s Trade Fixtures shall be those
      items installed by the Tenant and not integral to the operation of the Property
      generally for a successor tenant (without regard to any specialized business
      in
      which the successor tenant is or might be engaged).  Tenant shall
      remove building fixtures previously installed by Tenant so long as the Premises
      may continue to function in a manner suitable for a successor tenant without
      regard to any specialized needs of a successor tenant.  Tenant shall
      perform all repairs and maintenance in a good and workmanlike manner, using
      materials and labor of the same character, kind and quality as originally
      employed within the Premises at the time of lease execution; and all such
      repairs and maintenance shall be in compliance with all governmental,
      quasi-governmental and all applicable authorities laws, requirements, covenants,
      easements, ordinances and regulations, as well as all requirements of Landlord’s
      insurance carrier.

     

    (f)           ALTERATIONS.  Tenant
      shall not make any alterations, additions or improvements to the Premises or
      Property without the prior written consent of Landlord, such consent not to
      be
      unreasonably withheld, conditioned, or delayed.  Notwithstanding the
      aforesaid, Tenant, at Tenant’s sole cost and expense, may install trade fixtures
      as Tenant may deem necessary, so long as such trade fixtures do not penetrate
      or
      disturb the structural integrity and support provided by the roof, exterior
      walls or subfloors or require excavation of the floor slab or disturbance of
      column supports.  All such trade fixtures shall be constructed and/or
      installed by insured contractors approved by Landlord, such approval not to
      be
      unreasonably withheld, conditioned or delayed, in a good and workmanlike manner,
      and in compliance with all applicable all governmental, quasi-governmental
      and
      all applicable authorities laws, requirements, covenants, easements, ordinances
      and regulations, as well as all requirements of Landlord’s insurance
      carrier.  In any event, Landlord approval shall not be unreasonably
      withheld, and shall be given within 10 business days of verified receipt of
      the
      complete request.  If Landlord does not respond within 10 business
      days, then approval shall be deemed to have occurred.  Tenant, at its
      option, may obtain plans for installation of new windows in the front of the
      Premises.  Any alterations to the window openings are subject to
      Landlord’s sole

     

    
      
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    reasonable
      approval and shall be done in a good and workmanlike manner pursuant to said
      approved plans.  If the plans and pricing are agreed to by the
      Landlord, then each party shall bear 50% of the cost and expense.

     

    3.           Paragraph
      3 of the Lease as amended shall be modified to the extent that the Current
      Base
      Rent from the time period commencing July 1, 2007, shall be as
      follows:

     

    (a)           July
      1 2007 – June 30, 2008: $7.50 per square foot.  For the 20, 110
      this equates to $150,825 per year, or $12,568.75 per month.  For the
      months of July, August and September 2007, or until the Tenant shall vacate
      the
      Returned Space, and the Landlord accepts the Returned Space, the Tenant shall
      pay the above Base Rent on the space it occupies, plus its ratable share of
      expenses (Taxes, CAM and Insurance) for the Property during the relevant time
      period The Base Rent for the Returned Space (7,290 sq ft) shall be $54,675
      annually or $4,556.25 per month.  The Base Rent for the Returned Space
      shall increase to $8.00 per square foot for the second lease year if Tenant
      does
      not vacate the Returned Space and thereafter increases by three percent (3%)
      per
      annum until the Tenant does vacate the Returned Space.

     

    (b)           July
      1, 2008 – June 30, 2009: $8.00 per square foot.  This equates to
      $160,880.00 per year, or $13,406.67 per month.  Note: Figures in 3(b),
      3(c) assume that Tenant vacates Returned Space (Rate is applied to 20,110 square
      feet.)

     

    (c)           July
      1, 2009 — June 30, 2010: $8.24 per square foot.  This equates to
      $165,706.40 per year, or $13,808.87 per month.

     

    (d)           Commencing
      July 1, 2010, and continuing through June 30, 2012, on each successive July
      1 anniversary date, the Base Rent shall escalate 3% per annum
      compounded.

     

    (e)           Tenant
      shall have the right, exercisable by written notice delivered to Landlord not
      later than one hundred eighty days (180) days prior to the end of the Primary
      Term, to renew and extend this Lease for one (1) additional period of 5
      consecutive years, the (“Renewal Term”).  The Base Rent for the
      Renewal Term shall be 100% of the fair market base rent at that time (but not
      in
      excess of $10.61 per square foot) but in no event less than 103% of prior year’s
      base rent.  The Base Rent for the Renewal Term shall escalate three
      percent (3%) per lease year compounded during the Renewal Term.

     

    (f)           To
      the extent that the New Space is in excess of 20,110 square feet, then the
      Tenant understands and agrees that the annual or monthly amounts reflected
      above
      shall be adjusted accordingly.

     

    (g)           Any
      and all references to the Lease being “absolute Net” are hereby stricken in
      their entirety and replaced with the Lease being a “triple net”
Lease.  Accordingly, any and all references to taxes, insurance,
      common area maintenance charges and utilities are amended as
      follows:

     

    
      
        4

      

      
        
        

        
          

        

      

      
        
        

      

    

    Tenant
      shall pay to Landlord, as Additional Rent, Tenant’s pro rata share of the common
      area maintenance charges (as such term is hereinafter defined) incurred by
      Landlord for and on behalf of the Property; and, in addition thereto, Tenant
      shall pay to Landlord, as Additional Rent, Tenant’s pro rata share of any taxes
      and insurance (as such terms are hereinafter defined) payable by Landlord in
      the
      current fiscal year.  These charges shall be estimated by Landlord,
      paid monthly by Tenant, and reconciled in the succeeding year at such time
      chosen by the Landlord at its sole and absolute discretion.  Estimated
      CAM shall be the greater of the current year’s budget or 105% of the actual
      prior year’s reconciled and adjusted CAM expenses.  Landlord will use
      reasonable efforts to complete the reconciliation within 5 months of the end
      of
      the Calendar year.

     

    (i)           Taxes.  Taxes
      shall include, without limitation, any tax, assessment, or governmental charge
      (herein collectively referred to as “Tax”) imposed against the Property, or
      against any of Landlord’s personal property located therein.  Taxes,
      as herein defined, are predicated upon the present system of taxation in the
      State of Maryland.  Therefore, if due to a future change in the method
      of taxation any rent, franchise, use, or other tax shall be levied against
      Landlord in lieu of any Tax which would otherwise constitute a “real estate
      tax”, such rent, franchise, use, or other tax shall be deemed to be a Tax for
      the purposes herein.  Notwithstanding the above, Taxes shall not
      include any penalties, late fees, or interest resulting from Landlord’s late
      payment of such taxes unless the Tenant has not paid their estimated or billed
      Taxes pursuant to the terms of this Third Amendment.  In the event
      Landlord is assessed with a Tax which Landlord, in its sole discretion, deems
      excessive, Landlord may challenge said Tax or may defer compliance therewith to
      the extent legally permitted; and, in the event thereof, Tenant shall be liable
      for Tenant’s pro rata share of all reasonable costs in connection with such
      challenge, regardless if such challenge is successful.

     

    (ii)           Insurance.  Insurance
      shall include, without limitation, premiums for liability, property damage,
      fire, workers compensation, rent and any and all other insurance (herein
      collectively referred to as “Insurance”) which Landlord deems reasonably
      necessary to carry on, for, or in connection with Landlord’s operation of the
      Property.  In addition thereto, in the event Tenant’s use of the
      Premises shall result in an increase of any of Landlord’s Insurance premiums,
      Tenant shall pay to Landlord, upon demand, as Additional Rent, an amount equal
      to such increase in Insurance.  Such payments of Insurance shall be in
      addition to all premiums of insurance which Tenant is required to carry pursuant
      to this Lease.

     

    (iii)           Common
      Area Maintenance.  Common area maintenance charges (hereinafter
      referred to as “CAM”) shall include by way of example but not as a limitation:
      the maintenance and repair, if necessary, of the downspouts, gutters access
      roads, driveways, sidewalks and passageways; trunk-line plumbing (as opposed
      to
      branch-line plumbing); common utilities, exterior painting, interior common
      area
      painting and exterior lighting; landscaping and mowing grass; snow removal;
      fire
      protection; administrative fees not to exceed 10% of CAM charges, management
      fees related to the operation of the property [provided that such
      fees

     

    
      
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    are
      capped at three percent (3%) of the gross income collected from tenants at
      the
      Property which may be increased to four percent (4%) of the gross income
      collected from tenants at the Property if the Property or 100% of the interests
      therein are sold, transferred or otherwise conveyed to an unaffiliated
      third-party], and all other expenses incurred by Landlord for or on behalf
      of
      the Property including Columbia Parks and Recreation Association
      fees.

     

    Notwithstanding
      the aforesaid, in no event shall CAM expenses include any expense chargeable
      to
      a capital account or capital improvement pursuant to accounting principles
      generally accepted in the real estate industry for similar property types;
      nor
      shall CAM include any cost associated with leasing, including but not limited
      to
      brokerage fees, advertising, tenant improvements, attorneys fees in connection
      with specific tenants (other than Tenant) and any collection costs associated
      with other tenants of the building.

     

    Notwithstanding
      anything to the contrary herein, in the event that Landlord determines that
      the
      estimate paid by Tenant is insufficient to cover the current year charges for
      Taxes, Insurance or CAM, Landlord shall have the right to invoice Tenant
      monthly, quarterly, or otherwise from time to time, for Tenant’s pro rata share
      of the Taxes, Insurance and CAM expenses, as reasonably estimated by Landlord;
      and Tenant shall pay to Landlord, as Additional Rent, those amounts for which
      Tenant is invoiced within thirty (30) days after receipt of said
      invoice.

     

    In
      addition to the aforesaid, in the event the Tenant does not complete Tenant
      obligations pursuant to Section 7 of the Lease after 10 calendar days from
      verified receipt of notice from the Landlord, Landlord reserves the right to
      perform any or all of the repairs and maintenance covenanted to be performed
      by
      Tenant pursuant to Section 7 of the Lease and, in such event, Tenant shall
      pay
      to Landlord, as Additional Rent, Landlord’s reasonable costs of such repairs and
      maintenance.  Notwithstanding anything to the contrary herein,
      Landlord has the right to complete emergency repairs for work covenanted to
      be
      performed by Tenant pursuant to Section 7 of the Lease and, in such event,
      Tenant shall pay to Landlord, as Additional Rent, Landlord’s reasonable costs of
      such repairs and maintenance.

     

    (iv)           Payment
      of Additional Rent.  Any monies paid in advance to Landlord by
      Tenant shall not accrue interest thereon.  At the end of each calendar
      year or property fiscal year, Landlord shall deliver a statement to Tenant
      setting forth the difference between Tenant’s actual pro rata share of Taxes,
      Insurance and/or CAM expenses and the total amount of monthly payments paid
      by
      Tenant to Landlord.  Tenant shall thereafter pay to Landlord the full
      amount of any difference between Tenant’s actual obligation over the total
      amount of Tenant’s estimated payments, within thirty (30) days after notice of
      said statement is sent to Tenant; conversely, in the event Tenant’s estimated
      payments exceed Tenant’s actual obligation, Landlord shall refund the
      overpayment to Tenant or credit the amount to the next installments of CAM
      due,
      in the Landlord’s sole discretion.  In the event this Lease expires on
      a date other than the end of a billing period, Tenant’s obligation with respect
      to any amounts owed to Landlord shall survive the expiration of the lease term,
      and shall be invoiced to Tenant when the same have been accurately determined
      or, at Landlord’s option, such amounts shall be

     

    
      
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    reasonably
      estimated by Landlord to reflect the period of time the Lease was in effect
      during such billing period.  If Tenant’s inspection of such records
      reveals a variance in Tenant’s favor of more than 10%, then Landlord shall
      reimburse Tenant for reasonable third party audit fees (not to exceed $3,000)
      so
      incurred by Tenant as well as such overpayments on amounts charged.

     

    Landlord
      shall maintain complete and accurate records of all Taxes, Insurance and CAM
      expenses incurred in connection with the Property.  Tenant shall have
      the right to inspect such records at Tenant’s sole cost and expense, at the
      office of Landlord’s managing agent during said agent’s normal business hours,
      upon ten (10) days prior written notice once a calendar
      year.  Notwithstanding the aforesaid, unless Tenant asserts specific
      errors within ninety (90) days after receipt of any invoice, or yearend
      statement, it shall be deemed that said invoice, or year–end statement, is
      correct.

     

    4.           Paragraph
      3.3 of the Lease shall be modified to provide that the Tenant’s proportionate
      share of all property expenses shall be 33.52% (20,110/60,000), subject only
      to
      the provisions of Paragraph 3 above.

     

    5.           Paragraph
      2.2 of the Lease shall be modified to replace 120% of the rental rate and
      replace it with 150% of the rental rate.

     

    6.           The
      following paragraph will be added to Paragraph 19:

     

    Landlord
      will cooperate with Tenant’s signage requests, both temporary and permanent,
      subject to approvals of Landlord, CA and HRD (and any successor organization
      to
      HRD), Howard County government, Park or any other applicable authority as
      required.  The cost of construction, maintenance and all other permits
      and fees associated with such signage shall be at Tenant’s sole costs and
      expense.  Landlord approves the concept of the installation of an
      exterior sign and decoration of the exterior of said Premises, provided that
      Tenant removes same from the exterior of the Premises and restores the exterior
      of the Premises to the same condition as presently existing when it vacates
      the
      Premises.  The Landlord must provide written approval for signage and
      proposed decorations prior to installation thereof and provided further that
      Tenant provide Landlord with sketches or descriptions of the proposed artwork
      and methods of installation.  In any event Landlord approval shall not
      be unreasonably withheld, and shall be given within 10 business
      days.  If Landlord does not respond within the 10 business days, then
      approval shall be deemed to have occurred.

     

    7.           Paragraph
      17 of the Lease shall be modified to require Landlord to provide 24 hours fax
      or
      verbal notice to show or inspect the Premises during normal business hours
      or by
      appointment or as otherwise agreed, except in cases of emergency or to make
      repairs to roof or utility systems in which case minimal notice shall be
      necessary.  In addition, Landlord and/or its agent may verbally or by
      fax, by giving twelve (12) hours advanced notice, show the Premises to
      prospective tenants during normal business hours or by appointment or as
      otherwise agreed during the last ninety (90) days of the end of the Lease
      term.

     

     

    
      
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      8.           Paragraph
        26 of the Lease shall be modified to include the following language: This
        Lease
        and the parties’ respective rights hereunder shall be governed by the laws of
        the State of Maryland.  In the event of litigation, suit shall
        be brought in Howard County, Maryland.  LANDLORD AND TENANT
        HEREBY WAIVE ANY AND ALL RIGHT TO A TRIAL BY JURY.  ANY COST AND
        EXPENSE INCURRED BY A PARTY TO COLLECT ANY SUMS DUE OR TO ENFORCE ANY TERM
        OR
        PROVISION HEREOF, INCLUDING REASONABLE ATTORNEYS’ FEES, SHALL BE PAID TO THE
        PREVAILING PARTY IN SUCH ACTION PRORATA PER COUNT.

    

     

    9.           The
      following paragraph will be added to new Paragraph 28:

     

    Landlord
      and Tenant each represent and warrant that except as hereinafter set forth
      neither of them has employed any broker in carrying on the negotiations relating
      to this Third Amendment.  The Landlord’s real estate broker is
      KLNB.  The Tenant’s real estate broker is CBRE.  KLNB and
      CBRE shall be paid by the Landlord per separate agreements.  Landlord
      and Tenant shall indemnify and hold each other harmless from and against any
      claim for brokerage or other commission arising from and out of any breach
      of
      the foregoing representation and warranty.

     

    10.           The
      following paragraph will be added to new Paragraph 29:

     

    The
      Landlord recently provided the Tenant with a reconciliation of CAM charges
      and/or Additional Rent pursuant to the Lease for the lease year 2006 including
      the cost of the 2002 roof replacement and any prior CAM and/or additional rent
      charges under the previous lease years (the “CAM
      Reconciliation”).  The Tenant disputes the CAM Reconciliation and the
      Landlord has agreed to settle the CAM Reconciliation issue by accepting the
      sum
      of Forty-Five Thousand One Hundred Dollars ($45,100.00) (the “Settlement
      Amount”) as full and final settlement of the CAM Reconciliation.  Such
      amount, $45,100, shall be deducted from the $200,000 Tenant Improvement
      allowance described in section 2(c) above.  The acceptance by the
      Landlord of a lesser amount than the full amount of the CAM Reconciliation
      shall
      not be deemed an admission of wrongdoing or liability by any party, but only
      as
      a part of an amicable settlement of certain matters arising in connection with
      the CAM Reconciliation.  Tenant agrees not to disclose the terms of
      this Settlement Amount or any matter relating to the Landlord agreeing to accept
      less than the full CAM Reconciliation to any person or entity.  Both
      parties hereto covenant that they will not sue, or commence any judicial
      proceedings relating to any potential claim or issue regarding the CAM
      Reconciliation currently in question.

     

    11.           The
      following paragraph will be added to new Paragraph 30:

     

    Landlord
      and Tenant hereby covenant each for itself, that such individual signing on
      behalf of each such party has the full right, power and authority to enter
      into
      this Third Amendment upon the terms and conditions herein set
      forth.

     

    12.           The
      first sentence of Section 7 of the Lease is hereby deleted in its entirety
      and
      replaced with the following:

     

    Landlord,
      at Landlord’s sole cost and expense, shall replace, if necessary, the
      foundation, the exterior walls and the structural portions of the
      roof.  Furthermore, Landlord, at Landlord’s sole cost and expense,
      shall replace, if necessary, the roof membrane.  Any repair of the
      membrane, foundation, the exterior walls and the structural portions of the
      roof
      shall be part of

     

    
      
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    the
      CAM
      expenses.  Notwithstanding the aforesaid, in the event any such
      replacement, maintenance or repairs are caused by the actions, or failure to
      act
      of Tenant or Tenant’s employees, agents or invitees, Tenant shall reimburse to
      Landlord, as Additional Rent, the cost of all such replacement, maintenance
      and
      repairs within thirty (30) days after delivery of Landlord’s invoice for
      same.  For purposes of this Section, the term “exterior walls” shall
      not include windows, plate glass, window and door frames, outside lighting,
      office doors, dock doors, dock bumpers, office entries, or any exterior
      improvement made by Tenant.  Landlord reserves the right to designate
      all sources of services in connection with Landlord’s obligations under this
      Lease.  Tenant hereby grants to Landlord the right to enter upon the
      Premises, at reasonable times, and upon prior notice, except in emergencies
      exclusively determined by Landlord, for the purpose of making inspections and/or
      repairs.  Tenant shall have the duty to periodically inspect the
      Premises and notify Landlord in writing should Tenant observe a need for repairs
      or maintenance of any obligation required to be performed by Landlord under
      this
      Lease.  Upon receipt of Tenant’s notice, Landlord shall have a
      reasonable period of time to make such repairs or maintenance; however, it
      is
      expressly understood that Landlord’s liability with respect to the failure or
      delay to make any such repairs or maintenance shall be limited to the cost
      of
      such repairs or maintenance.

     

    All
      other
      terms of the Lease as previously amended and not modified by this Third
      Amendment between Landlord and Tenant shall remain unchanged.  Terms
      not otherwise defined herein, shall have the meanings set forth in the
      Lease.  This Third Amendment shall become effective on and only on its
      execution and delivery by each party hereto.  This Third Amendment
      shall be binding upon and shall inure to the benefit of the parties hereto
      and
      their respective successors and assigns.  This Third Amendment
      represents the complete understanding between the parties hereto as to the
      subject matter hereof.  This Third Amendment shall be governed by, and
      construed in accordance with the laws of the State of Maryland.  The
      provisions of this Third Amendment shall control over any inconsistent
      provisions in the Lease,

     

    [signature
      page follows]

    
      
        9

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Third Amendment as of the dates
      indicated below, the effective date of this Amendment to Lease being the date
      of
      the final execution hereof by Landlord and Tenant.

     

    

    
      	
              WITNESS/ATTEST:

            	 	
              LANDLORD:

               

              9033
                RED BRANCH ROAD, LLC

            
	 	 	 
	 	 	 
	 	
              By:

            	
              
                /s/S.
                  Bruce Jaffe

              

            
	 	
              S.
                Bruce Jaffe, Member

            
	
              Date:   September
                11,
                2007                                                             

            	 

    

    

    
      	
              WITNESS/ATTEST:

            	 	
              TENANT:

               

              HEMAGEN
                DIAGNOSTICS, INC.,

              a
                Delaware Corporation

            
	 	 	 
	 	 	 
	 	
              By:

            	
              
                /s/William
                  P. Hales

              

            
	 	
              William
                P. Hales

            
	
              Its:

            	
              President
                and CEO

            
	
              Date:    September
                11,
                2007                                                            

            	 

    

     

     

     

     

    

    
      
        
          10

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