Document:

Trust Agreement between Mine Safety Appliances Company and PNC Bank, N.A.

 EXHIBIT 10.3 
  
 MINE SAFETY APPLIANCES COMPANY 
 STOCK COMPENSATION TRUST 
 Effective as of June 1, 1996 
 As amended through 
 May 13, 2008 

 Table of Contents 
  

			
	 	  	Page
		
	 ARTICLE 1   Trust, Trustee and Trust Fund
	  	1
	 1.1. Trust
	  	1
	 1.2. Trustee
	  	1
	 1.3. Trust Fund
	  	2
	 1.4. Trust Fund Subject to Claims
	  	2
	 1.5. Use of Trust
	  	2
	 1.6. Definitions
	  	2
	 ARTICLE 2   Contributions and Dividends.
	  	4
	 2.1. Contributions
	  	4
	 2.2. Dividends
	  	5
	 ARTICLE 3   Release and Allocation of Company Stock
	  	5
	 3.1. Release of Shares
	  	5
	 3.2. Allocations
	  	5
	 ARTICLE 4   Compensation, Expenses and Tax Withholding
	  	5
	 4.1. Compensation and Expenses
	  	5
	 4.2. Withholding of Taxes
	  	5
	 ARTICLE 5   Administration of Trust Fund
	  	6
	 5.1. Management and Control of Trust Fund
	  	6
	 5.2. Investment of Funds
	  	6
	 5.3. Trustee’s Administrative Powers
	  	6
	 5.4. Voting and Tendering of Company Stock
	  	7
	 5.5. Indemnification.
	  	8
	 5.6. General Duty to Communicate to Committee
	  	9
	 ARTICLE 6   Accounts and Reports of Trustee
	  	9
	 6.1. Records and Accounts of Trustee
	  	9
	 6.2. Fiscal Year
	  	9
	 6.3. Reports of Trustee
	  	9
	 6.4. Final Report
	  	9
	 ARTICLE 7   Succession of Trustee
	  	9
	 7.1. Resignation of Trustee
	  	9
	 7.2. Removal of Trustee
	  	9
	 7.3. Appointment of Successor Trustee
	  	10
	 7.4. Succession to Trust Fund Assets
	  	10
	 7.5. Continuation of Trust
	  	10
	 7.6. Changes in Organization of Trustee
	  	10
	 7.7. Continuance of Trustee’s Powers in Event of Termination of the Trust
	  	10
	 7.8. Corporate Trustee
	  	10
	 ARTICLE 8   Amendment or Termination
	  	10
	 8.1. Amendments
	  	10
	 8.2. Termination
	  	11
	 8.3. Form of Amendment or Termination
	  	11
	 ARTICLE 9   Miscellaneous
	  	11
	 9.l. Controlling Law
	  	11

  

 i 

			
	 9.2. Committee Action
	  	11
	 9.3. Notices
	  	12
	 9.4. Severability
	  	12
	 9.5. Protection of Persons Dealing with the Trust
	  	12
	 9.6. Tax Status of Trust
	  	12
	 9.7. Participants to Have No Interest in the Company by Reason of the Trust
	  	12
	 9.8. Nonassignability
	  	12
	 9.9. Gender and Plurals
	  	13
	 9.10. Counterparts
	  	13

  

 ii 

 MINE SAFETY APPLIANCES COMPANY 
 STOCK COMPENSATION TRUST 
 THIS TRUST AGREEMENT (the “Agreement”) made
effective as of June 1, 1996, between Mine Safety Appliances Company, a Pennsylvania corporation, and PNC Bank, N.A., as trustee. 
 W I
T N E S S E T H : 
 WHEREAS, the Company (as defined below) desires to establish a trust (the “Trust”) in accordance with the laws
of the Commonwealth of Pennsylvania and for the purposes stated in this Agreement; 
 WHEREAS, the Trustee (as defined below) desires to act
as trustee of the Trust, for the purposes hereinafter stated and in accordance with the terms hereof; 
 WHEREAS, the Company or its
subsidiaries have previously adopted the Plans (as defined below); 
 WHEREAS, the Company desires to provide assurance of the availability
of the shares of its common stock necessary to satisfy certain of its obligations or those of its subsidiaries under the Plans (as defined below); 
 WHEREAS, the Company desires that the assets to be held in the Trust Fund (as defined below) should be principally or exclusively securities of the Company and, therefore, expressly waives any diversification of investments that might
otherwise be necessary, appropriate, or required pursuant to applicable provisions of law, if any; and 
 WHEREAS, PNC Bank, N.A., has been
appointed as trustee and has accepted such appointment as of the date set forth first above; 
 NOW, THEREFORE, the parties hereto hereby
establish the Trust and agree that the Trust will be comprised, held and disposed of as follows: 
 ARTICLE 1. 
 Trust, Trustee and Trust Fund 
 1.1.
Trust. This Agreement and the Trust shall be known as the Mine Safety Appliances Company Stock Compensation Trust. The parties intend that the Trust will be an independent legal entity with title to and power to convey all of its assets. The
parties hereto further intend that the trust not be subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Trust is not a part of any of the Plans (as herein defined). The assets of the Trust will be
held, invested and disposed of by the Trustee, in accordance with the terms of the Trust. The Company will not knowingly take any action that would cause the assets held pursuant to the Trust to become “plan assets” within the meaning of
ERISA without so advising the Trustee. The Trust is intended to be a “grantor trust” within the meaning of Section 671 of the Internal Revenue Code of 1986. 
 1.2. Trustee. The trustee named above, and its successor or successors, is hereby designated as the trustee hereunder, to receive, hold, invest,
administer and distribute the Trust Fund in accordance with this Agreement, the provisions of which shall govern the power, duties and responsibilities of the Trustee. 
  

 - 1 - 

 1.3. Trust Fund. The assets held at any time and from time to time under the Trust collectively
are herein referred to as the “Trust Fund” and shall consist of contributions received by the Trustee, proceeds of any loans, investments and reinvestment thereof, the earnings and income thereon, less disbursements therefrom. Except as
herein otherwise provided, title to the assets of the Trust Fund shall at all times be vested in the Trustee and securities that are part of the Trust Fund shall be held in such manner that the Trustee’s name and the fiduciary capacity in which
the securities are held are fully disclosed, subject to the right of the Trustee to hold title in bearer form or in the name of a nominee, and the interests of others in the Trust Fund shall be only the right to have such assets received, held,
invested, administered and distributed in accordance with the provisions of the Trust. 
 1.4. Trust Fund Subject to Claims.
Notwithstanding any provision of this Agreement to the contrary, the Trust Fund shall at all times remain subject to the claims of the Company’s general creditors under federal and state law. 
 In addition, the Board of Directors and Chief Executive Officer of the Company shall have the duty to inform the Trustee in writing of the Company’s
Insolvency (as defined below). If a person claiming to be a creditor of the Company alleges in writing to the Trustee that the Company has become Insolvent, the Trustee shall determine whether the Company is Insolvent and, pending such
determination, the Trustee shall discontinue allocations pursuant to Article 3. 
 Unless the Trustee has actual knowledge of the
Company’s Insolvency, or has received notice from the Company or a person claiming to be a creditor alleging that the Company is Insolvent, the Trustee shall have no duty to inquire whether the Company is Insolvent. The Trustee may in all
events rely on such evidence concerning the Company’s solvency as may be furnished to the Trustee and that provides the Trustee with a reasonable basis for making a determination concerning the Company’s Insolvency. 
 If at any time the Trustee has determined that the Company is Insolvent, the Trustee shall discontinue allocations pursuant to Article 3 and shall hold
the Trust Fund for the benefit of the Company’s general creditors. Nothing in this Trust Agreement shall in any way diminish any rights of employees as general creditors of the Company with respect to benefits due under the Plans or otherwise.

 The Trustee shall resume allocations pursuant to Article 3 only after the Trustee has determined that the Company is not Insolvent or is
no longer Insolvent as the case may be. 
 1.5. Use of Trust. The Trust Fund shall be used for the exclusive purpose of aiding the
Company in delivering the benefits provided by the Plans and defraying the expenses of the Trust in accordance with this Trust Agreement. The Company may terminate the Trust in accordance with Section 8.2 hereof, but, income or corpus of the
Trust Fund is recoverable by the Company only as provided in Section 2.2 and 8.2. 
 1.6. Definitions. In addition to the terms
defined in the preceding portions of the Trust, certain capitalized terms have the meanings set forth below: 
 Board of Directors.
“Board of Directors” means the board of directors of the Company. 
  

 - 2 - 

 Change of Control. “Change of Control” means any of the following events: 
 (a) an acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of the combined voting power of the then outstanding voting securities of the Company; provided,
however, that the following acquisitions shall not constitute a Change of Control: (i) an acquisition by or directly from the Company, (ii) an acquisition by any employee benefit plan or trust sponsored or maintained by the Company; and
(iii) any acquisition described in subclauses (A) or (B) of subsection (b) below; or 
 (b) approval by the stockholders
of the Company of (i) a complete dissolution or liquidation of the Company, (ii) a sale or other disposition of all or substantially all of the Company’s assets or (iii) a reorganization, merger, or consolidation (“Business
Combination”) unless either (A) all or substantially all of the stockholders of the Company immediately prior to the Business Combination own more than 50% of the voting securities of the entity surviving the Business Combination, or the
entity which directly or indirectly controls such surviving entity, in substantially the same pro-portion as they owned the voting securities of the Company immediately prior thereto, or (B) the consideration (other than cash paid in lieu of
fractional shares or payment upon perfection of appraisal rights) issued to stockholders of the Company in the Business Combination is solely common stock which is publicly traded on an established securities exchange in the United States.

 Code. “Code” means the Internal Revenue Code of 1986, as amended. 
 Committee. “Committee” means a committee of officers or other individuals, subject to Section 9.2, appointed by the Board of
Directors from time to time to administer the Trust. 
 Company. “Company” means Mine Safety Appliances Company, a
Pennsylvania corporation, or any successor thereto. References to the Company shall include its subsidiaries where appropriate. 
 Company
Stock. “Company Stock” means shares of common stock, no par value, issued by the Company or any successor securities. 
 Extraordinary Dividend. “Extraordinary Dividend” means any dividend or other distribution of cash or other property (other than Company Stock) made with respect to Company Stock, which the Board of Directors declares
generally to be other than an ordinary dividend. 
 Fair Market Value. “Fair Market Value” means as of any date the closing
price quotation, or, if none, the average of the bid and asked prices, as reported with respect to the Company Stock on the most recently available date, on any national exchange on which the Company Stock is then listed, or if not so listed, on the
NASDAQ National Market, or other consolidated reporting system reporting trades of the Company Stock. If the Company Stock is not so listed, “Fair Market Value” shall mean the average of the bid and asked prices as quoted by all market
makers in the Company Stock. In the event that a market for the Company Stock does not exist, the Committee may determine, in any case or cases, that “Fair Market Value” shall be determined on the basis of the opinion of one or more
independent and reputable appraisers qualified to value companies in the Company’s line of business. 
 Insolvency.
“Insolvency” means (i) the inability of the Company to pay its debts as they become due, or (2) the Company being subject to a pending proceeding as a debtor under the provisions of Title 11 of the United States Code (Bankruptcy
Code). 
 Loan. “Loan” means the loan and extension of credit to the Trust evidenced by a promissory note dated as of the
date of the Closing (as defined in the Stock Purchase Agreement dated June 4, 1996 between the Trust and the Company), with which the Trustee will purchase Company Stock. 
  

 - 3 - 

 Option Grant. “Option Grant” means an option granted under one of the Plans to a Plan
Participant to acquire shares of Company Stock. 
 Plan Committee Certification. “Plan Committee Certification” means a
certification to be provided to the Trustee by the Committee from time to time which (i) sets forth the number of shares of Company Stock to be transferred to a Plan Participant, and (ii) certifies that the determination of such number is
in accordance with the terms of each Plan. 
 Plans. “Plans” means the employee plans listed on Schedule A hereto and any
other employee benefit plan of the Company or its subsidiaries designated as such by the Board of Directors. 
 Plan Participant.
“Plan Participant” means an individual who has an Option Grant under any of the Plans. 
 Suspense Account. “Suspense
Account” means the account in which shares of Company Stock acquired with the Loan are held until they are released pursuant to Section 3.1. 
 Trustee. “Trustee” means PNC Bank, N.A., or any successor trustee. 
 Trust Year.
“Trust Year” means the period beginning on the date of the Closing (the “Closing Date”) and ending on the next following December 31st and on each December 31st thereafter. 
 ARTICLE 2. 
 Contributions and Dividends

 2.1. Contributions. For each Trust Year the Company shall contribute to the Trust in cash such amount, which together with
dividends, as provided in Section 2.2, and any other earnings of the Trust, shall enable the Trustee to make all payments of principal and interest due under the Loan on a timely basis. Unless otherwise expressly provided herein, the Trustee
shall apply all such contributions, dividends and earnings to the payment of principal and interest due under the Loan. If, at the end of any Trust Year, no such contribution has been made in cash, such contribution shall be deemed to have been made
in the form of forgiveness of principal and interest on the Loan to the extent of the Company’s failure to make contributions as required by this Section 2.1. The Company may from time to time, in its sole discretion, make additional
contributions to the Trust for the purpose of enabling the Trust to make prepayments of principal with respect to the Loan (a “Prepayment Contribution”). The Trustee shall immediately use any Prepayment Contribution to make a prepayment of
principal with respect to the Loan. All contributions made under the Trust shall be delivered to the Trustee. The Trustee shall be accountable for all contributions received by it, but shall have no duty to require any contributions to be made to
it. 
  

 - 4 - 

 2.2. Dividends. Except as otherwise provided herein, dividends paid in cash on Company Stock held
by the Trust, including Company Stock held in the Suspense Account, shall be applied to pay interest and repay scheduled principal due under the Loan. In the event that dividends paid on Company Stock held in the Trust, other than Extraordinary
Dividends, exceed the amount of scheduled principal and interest due in any Trust Year, such excess shall be used to purchase additional shares of Company Stock and/or shall be distributed to a broad cross-section of individuals employed by the
Company, as determined in good faith by the Committee. Dividends which are not in cash or in Company Stock (including Extraordinary Dividends, or portions thereof) shall be reduced to cash by the Trustee and reinvested in Company Stock as soon as
practicable. For purposes of this Agreement, Company Stock purchased with the proceeds of an Extraordinary Dividend, any excess dividend or with the proceeds of a non-cash dividend shall for purposes of this Agreement (including without limitation
Section 3.1 hereof), be deemed to have been acquired with the proceeds of the Loan. In the Trustee’s discretion, investments in Company Stock may be made through open-market purchases, private transactions or (with the Company’s
consent) purchases from the Company. 
 ARTICLE 3. 
 Release and Allocation of Company Stock 
 3.1. Release of Shares. Upon any payment (including a
prepayment) or forgiveness in any Trust Year of any principal on the Loan (a “Principal Payment”), the following number of shares of Company Stock acquired with the proceeds of the Loan shall be available for allocation (“Available
Shares”) as provided in this Article 3: the number of shares so acquired and held in the Suspense Account immediately before such payment or forgiveness, multiplied by a fraction the numerator of which is the amount of the Principal Payment and
the denominator of which is the sum of such Principal Payment and the remaining principal of the Loan outstanding after such Principal Payment. 
 3.2. Allocations. Available Shares shall be allocated as directed by a Plan Committee Certification to the Plan Participants at such times as may be required to provide shares in accordance with the Plans. 
 ARTICLE 4. 
 Compensation, Expenses and Tax
Withholding 
 4.1. Compensation and Expenses. The Trustee shall be entitled to such reasonable compensation for its services as may
be agreed upon from time to time by the Company and the Trustee and to be reimbursed for its reasonable legal, accounting and appraisal fees, out-of-pocket expenses and other charges reasonably incurred in connection with the administration,
management, investment and distribution of the Trust Fund. Such compensation shall be paid, and such reimbursement shall be made out of the Trust Fund. The Company agrees to make sufficient contributions to the Trust to pay such amounts owing the
Trustee in addition to those contributions required by Section 2.1 and, in the event the Company fails to make the contributions necessary to pay amounts owing to the Trustee, the Trustee shall be entitled to seek payment directly from the
Company or the Trust Fund. 
 4.2. Withholding of Taxes. The Trustee may withhold, require withholding, or otherwise satisfy its
withholding obligation, on any distribution which it is directed to make. The amount to be withheld shall be such amount as the Company advises the Trustee it reasonably estimates to be necessary to comply with applicable federal, state and local
withholding requirements. Upon determination of the tax withholding liability, the Trustee shall distribute the balance of the distribution to the appropriate Participant and deliver to the Company the amount necessary to satisfy any withholding
obligation. The Company will then deliver the withholding amount to the appropriate governmental entity. Prior to making any distribution hereunder, the Trustee may require such indemnity, as the Trustee shall reasonably deem necessary for its
protection. 
  

 - 5 - 

 ARTICLE 5. 
 Administration of Trust Fund 
 5.1. Management and Control of Trust Fund. Subject to the terms of
this Agreement, the Trustee shall have exclusive authority and responsibility to manage and control the assets of the Trust Fund. The Trustee’s duties shall be limited to those duties specified in this Agreement. 
 5.2. Investment of Funds. Except as otherwise provided in Section 2.2 and in this Section 5.2, the Trustee shall invest and reinvest the
Trust Fund exclusively in Company Stock, including any accretions thereto resulting from the proceeds of a tender offer, recapitalization or similar transaction which, if not in Company Stock, shall be reduced to cash as soon as practicable. To the
extent the Trust Fund is invested in Company Stock, the Company waives any diversification of investments that might otherwise be necessary, appropriate or required pursuant to applicable law. The Trustee will invest any portion of the Trust Fund
temporarily pending investment in Company stock, distribution or payment of expenses as directed by the Company. Company acknowledges that the investment vehicle selected by Company may include mutual funds from which Trustee or an affiliate or
related entity receives compensation for providing investment advisory, transfer agency, custodial or other services. 
 5.3.
Trustee’s Administrative Powers. Except as otherwise provided herein, and subject to the Trustee’s duties hereunder, the Trustee shall have the following powers and rights, in addition to those provided elsewhere in this Agreement
or by law: 
 (a) to retain any asset of the Trust Fund; 
 (b) subject to Section 5.4 and Article 3, to sell, transfer, mortgage, pledge, lease or otherwise dispose of, or grant options with respect to, any Trust Fund assets at public or private sale; 
 (c) upon direction from the Committee, to borrow from any lender (including the Company pursuant to the Loan), to acquire Company Stock at Fair Market
Value as authorized by this Agreement, to enter into lending agreements upon such terms (including reasonable interest and security for the loan and rights to renegotiate and prepay such loan) as may be determined by the Committee; provided,
however, that any collateral given by the Trustee for the Loan shall be limited to cash and property contributed by the Company to the Trust and dividends paid on Company Stock held in the Trust and shall not include Company Stock acquired with the
proceeds of Loan; 
 (d) with the consent of the Committee, to settle, submit to arbitration, compromise, contest, prosecute or abandon
claims and demands in favor of or against the Trust Fund; 
 (e) to vote or to give any consent with respect to any securities, including any
Company Stock, held by the Trust either in person or by proxy for any purpose, provided that the Trustee shall vote, tender or exchange all shares of Company Stock as provided in Section 5.4; 
 (f) to exercise any of the powers and rights of an individual owner with respect to any asset of the Trust Fund and to perform any and all other acts
that in its judgment are necessary or appropriate for the proper administration of the Trust Fund, even though such powers, rights and acts are not specifically enumerated in this Agreement; 
  

 - 6 - 

 (g) to employ such accountants, actuaries, investment bankers, appraisers, other advisors and agents as
may be reasonably necessary in collecting, managing, administering, investing, valuing, distributing and protecting the Trust Fund or the assets thereof or any borrowings of the Trustee made in accordance with Section 5.3(c); and to pay their
reasonable fees and out-of-pocket expenses, which shall be deemed to be expenses of the Trust and for which the Trustee shall be reimbursed in accordance with Section 4.1; 
 (h) to cause any asset of the Trust Fund to be issued, held or registered in the Trustee’s name or in the name of its nominee, or in such form that
title will pass by delivery, provided that the records of the Trustee shall indicate the true ownership of such asset; 
 (i) to utilize
another entity as custodian to hold, but not invest or otherwise manage or control, some or all of the assets of the Trust Fund; and 
 (j)
to consult with legal counsel (who may also be counsel for the Trustee generally) with respect to any of its duties or obligations hereunder; and to pay the reasonable fees and out-of-pocket expenses of such counsel, which shall be deemed to be
expenses of the Trust and for which the Trustee shall be reimbursed in accordance with Section 4.1. 
 Notwithstanding the foregoing,
neither the Trust nor the Trustee shall have any power to, and shall not, engage in any trade or business. 
 5.4. Voting and Tendering of
Company Stock. 
 (a) Voting of Company Stock. The Trustee shall follow the directions of each Plan Participant other than Plan
Participants who are members of the Board of Directors of the Company (such non-members being hereinafter the “Directing Plan Participants”), as to the manner in which shares of Company Stock held by the Trust are to be voted on each
matter brought before an annual or special stockholders’ meeting of the Company or the manner in which any consent is to be executed, in each case as provided below. Before each such meeting of stockholders, the Trustee shall cause to be
furnished to each Directing Plan Participant, a copy of the proxy solicitation material received by the Trustee, together with a form requesting confidential instructions as to how to vote the shares of Company Stock held by the Trustee. Upon timely
receipt of directions from the Directing Plan Participants, the Trustee shall on each such matter vote the number of shares (including fractional shares) of Company Stock held by the Trust as follows: 
 The Company Stock shall be voted by the Trustee as directed by the Directing Plan Participants with each Directing Plan Participant directing a number of
shares of Company Stock (the “Participant Directed Amount”) equal to the quotient of (x) the total number of shares of Company Stock held by the Trust and (y) the number of Directing Plan Participants on the relevant date. Any
Shares for which the Trustee does not receive a signed voting-direction instrument shall be voted for, against or to abstain in the same proportions as those shares of Company Stock for which the Trustee did receive instructions. 
 Similar provisions shall apply in the case of any action by shareholder consent without a meeting. 
 (b) Tender or Exchange of Company Stock. The Trustee shall use its best efforts timely to distribute or cause to be distributed to each Plan
Participant any written materials distributed to stockholders of the Company generally in connection with any tender offer or exchange offer, together with a form requesting confidential instructions as to whether or not to tender or exchange shares
of Company Stock held in the Trust. Upon timely receipt of instructions from a Directing Plan Participant, the Trustee shall tender such Directing Participant’s Participant Directed Amount if such Directing Plan Participant has directed the
Trustee to tender. The Company will cooperate in registering the Company Stock held by the Trust which is the subject of a tender or exchange offer. The Company shall be responsible for all expenses incurred in connection with the registration of
such Company Stock. 
  

 - 7 - 

 (c) The Company shall maintain appropriate procedures to ensure that all instructions by Directing Plan
Participants in the Plans are collected, tabulated, and transmitted to the Trustee without being divulged or released to any person affiliated with the Company or its affiliates. All actions taken by Directing Plan Participants shall be held
confidential by the Trustee and shall not be divulged or released to any person, other than (i) agents of the Trustee who are not affiliated with the Company or its affiliates or (ii) by virtue of the execution by the Trustee of any proxy,
consent or letter of transmittal for the shares of Company Stock held in the Trust. 
 5.5. Indemnification. 
 (a) The Company shall and hereby does indemnify and hold harmless the Trustee from and against any claims, demands, actions, administrative or other
proceedings, causes of action, liability, loss, cost, damage or expense (including reasonable attorneys’ fees), which may be asserted against it, in any way arising out of or incurred as a result of its action or failure to act in connection
with the establishment, operation and administration of the Trust; provided that such indemnification shall not apply to the extent that a court of competent jurisdiction finally determines that the Trustee has acted (i) negligently,
(ii) in violation of applicable law or its duties under this Trust or (iii) in bad faith. The Trustee shall be under no liability to any person for any loss of any kind which may result (i) by reason of any action taken by the Trustee
in accordance with any direction of the Committee or any Directing Plan Participant acting pursuant to Section 5.4 (ii) by reason of the Trustee’s failure to exercise any power or authority or to take any action hereunder because of
the failure of any such Directing Plan Participant to give directions to the Trustee, as provided for in this Agreement, or (iii) by reason of any act or omission of any of the Directing Plan Participants with respect to the Trustee’s
duties under this Trust. The Trustee shall be fully protected in acting upon any instrument, certificate, or paper delivered by the Committee or any Plan Participant or beneficiary and believed in good faith by the Trustee to be genuine and to be
signed or presented by the proper person or persons, and the Trustee shall be under no duty to make any investigation or inquiry as to any statement contained in any such writing, but may accept the same as conclusive evidence of the truth and
accuracy of the statements therein contained. 
 (b) The Company may, but shall not be required to, maintain liability insurance to insure
its obligations hereunder. If any payments made by the Company or the Trust pursuant to this indemnity are covered by insurance maintained by the Company, the Company or the Trust (as applicable) shall be subrogated to the rights of the indemnified
party against the insurance company. 
 (c) Without limiting the generality of the foregoing, the Company will, at the request of the
Trustee, advance to the Trustee reasonable amounts of expenses, including reasonable attorneys’ fees and expenses, which the Trustee advises have been incurred in connection with its investigation or defense of any claim, demand, action, cause
of action, administrative or other proceeding arising out of or in connection with the Trustee’s performance of its duties under this Agreement. 
 (d) In no event shall the Trustee be liable for consequential damages. 
 (e) The Trustee may initiate an
action in interpleader with respect to any issue under this Agreement and the Company shall indemnify the Trustee from and against any reasonable legal expenses incurred by the Trustee in connection therewith. 
  

 - 8 - 

 5.6. General Duty to Communicate to Committee. The Trustee shall promptly notify the Committee of
all communications with or from any government agency or with respect to any legal proceeding with regard to the Trust and with or from any Plan Participants concerning their entitlements under the Plans or the Trust. 
 ARTICLE 6. 
 Accounts and Reports of Trustee

 6.1. Records and Accounts of Trustee. The Trustee shall maintain accurate and detailed records and accounts of all transactions of
the Trust, which shall be available at all reasonable times for inspection or audit by any person designated by the Company and which shall be retained as required by applicable law. 
 6.2. Fiscal Year. The fiscal year shall be the same as the Trust Year. The fiscal year of the Trust shall be the twelve month period or a shorter
period in the case of the initial fiscal year. 
 6.3. Reports of Trustee. The Trustee shall prepare and present to the Committee a
report for the period ending on the last day of each fiscal year, and for such shorter periods as the Committee may reasonably request, listing all securities and other property acquired and disposed of and all receipts, disbursements and other
transactions effected by the Trust after the date of the Trustee’s last account, and further listing all cash, securities, and other property held by the Trust, together with the fair market value thereof, as of the end of such period. In
addition to the foregoing, the report shall contain such information regarding the Trust Fund’s assets and transactions as the Committee in its discretion may reasonably request. 
 The Committee may approve of any report furnished by the Trustee pursuant to the foregoing paragraph either by written statement of approval furnished to
the Trustee or shall be deemed to have approved any such report by failure to file written objection to the report with the Trustee within one hundred and eighty (180) days of the date on which the Committee received the report. The Committee
shall not be liable to any person for the approval, disapproval or failure to approve or object to any report rendered by the Trustee. 
 6.4. Final Report. In the event of the resignation or removal of a Trustee hereunder, the Committee may request and the Trustee shall then with reasonable promptness submit, for the period ending on the effective date of such
resignation or removal, a report similar in form and purpose to that described in Section 6.3. 
 ARTICLE 7. 
 Succession of Trustee 
 7.1. Resignation
of Trustee. The Trustee or any successor thereto may resign as Trustee hereunder at any time upon delivering a written notice of such resignation, to take effect thirty (30) days after the delivery thereof to the Committee, unless the
Committee accepts shorter notice; provided, however, that no such resignation shall be effective until a successor Trustee has assumed the office of Trustee hereunder. 
 7.2. Removal of Trustee. The Trustee or any successor thereto may be removed by the Company by delivering to the Trustee so removed an instrument executed by the Committee informing the Trustee of the
Committee’s decision. Such removal shall take effect at the date specified in such instrument, which shall not be less than thirty (30) days after delivery of the instrument, unless the Trustee accepts shorter notice; provided, however,
that no such removal shall be effective until a successor Trustee has assumed the office of Trustee hereunder. 
  

 - 9 - 

 7.3. Appointment of Successor Trustee. Whenever the Trustee or any successor thereto shall resign
or be removed or a vacancy in the position shall otherwise occur, the Company shall use its best efforts to appoint a successor Trustee as soon as practicable after receipt by the Committee of a notice described in Section 7.1, or the delivery
to the Trustee of a notice described in Section 7.2, as the case may be, but in no event more than sixty (60) days after receipt or delivery, as the case may be, of such notice. A successor Trustee’s appointment shall not become
effective until such successor shall accept such appointment by delivering its acceptance in writing to the Company. If a successor is not appointed within such 60 day period, the Trustee, at the Company’s expense, may petition a court of
competent jurisdiction for appointment of a successor. 
 7.4. Succession to Trust Fund Assets. The title to all property held
hereunder shall vest in any successor Trustee acting pursuant to the provisions hereof without the execution or filing of any further instrument, but a resigning or removed Trustee shall execute all instruments and do all acts necessary to vest
title in the successor Trustee. Each successor Trustee shall have, exercise and enjoy all of the powers, both discretionary and ministerial, herein conferred upon its predecessors. A successor Trustee shall not be obliged to examine or review the
accounts, records, or acts of, or property delivered by, any previous Trustee and shall not be responsible for any action or any failure to act on the part of any previous Trustee. 
 7.5. Continuation of Trust. In no event shall the legal disability, resignation or removal of a Trustee terminate the Trust, but the Company shall
forthwith appoint a successor Trustee in accordance with Section 7.3 to carry out the terms of the Trust. 
 7.6. Changes in
Organization of Trustee. In the event that any corporate Trustee hereunder shall be converted into, shall merge or consolidate with, or shall sell or transfer substantially all of its assets and business to, another corporation, state or
federal, the corporation resulting from such conversion, merger or consolidation, or the corporation to which such sale or transfer shall be made, shall thereupon become and be the Trustee under the Trust with the same effect as though originally so
named. 
 7.7. Continuance of Trustee’s Powers in Event of Termination of the Trust. In the event of the termination of the
Trust, as provided herein, the Trustee shall dispose of the Trust Fund in accordance with the provisions hereof. Until the final distribution of the Trust Fund, the Trustee shall continue to have all powers provided hereunder as necessary or
expedient for the orderly liquidation and distribution of the Trust Fund. 
 7.8. Corporate Trustee. The Trustee or any successor
Trustee shall be an independent corporate entity with assets of at least $15 billion. 
 ARTICLE 8. 
 Amendment or Termination 
 8.1.
Amendments. Except as otherwise provided herein, the Company may amend the Trust at any time and from time to time in any manner which it seems desirable, provided that no amendment shall permit the Company to receive any distribution
prohibited by the last sentence of Section 1.5 hereof and no amendment which would adversely affect the duties of the Trustee shall be made without the Trustee’s written consent, which consent shall not be unreasonably withheld.
Notwithstanding the foregoing, the Company shall retain the power under all circumstances to amend the Trust to correct any errors or clarify any ambiguities or similar issues of interpretation in this Agreement, except to the extent any such
amendment adversely affects the duties of the Trustee. 
  

 - 10 - 

 8.2. Termination. Subject to the terms of
this Section 8.2, the Trust shall terminate on the earliest of the date (i) all available shares are distributed, (ii) on which the Loan is paid in full and (iii) the 20th
 anniversary of the effective date of the Trust (the “Termination Date”). The Company may terminate the Trust at any time prior to the Termination Date. The Trust shall also terminate
automatically upon the Company giving the Trustee written notice of a Change of Control. Immediately upon a termination of the Trust, the Company shall be deemed to have forgiven all amounts then outstanding under the Loan. As soon as practicable
after receiving notice from the Company of a Change of Control or upon any other termination of the Trust, the Trustee shall sell all of the Company Stock and other non-cash assets (if any) then held in the Trust Fund provided, that the Trustee will
not be required to sell such Company Stock unless such sale can be completed without violating applicable securities laws. In the event of a Change of Control or any other termination of the Trust, the Company will cooperate in registering the
Company Stock held by the Trust. The Company shall be responsible for all expenses incurred in connection with the registration of such Company Stock. The proceeds of such sale shall first be returned to the Company up to an amount equal to the
principal amount, plus any accrued interest, of the Loan that was forgiven upon such termination. Any funds remaining in the Trust after such payment to the Company (the “Excess Funds”) shall be used to fund (1) the existing
obligations of the Company under (i) the Plans and, then, (ii) all broad-based employee benefit plans maintained by the Company, and (2) the anticipated future obligations of the Company to the pre Change-of-Control employee
population under one or more broad based employee plans, and, (3) if any Excess Funds remain, such amount shall be paid directly to the active participants in the Company’s 401(k) defined contribution plan in proportion to each
participant’s base pay. Any determination as to which plans are entitled to funding pursuant to this paragraph or the extent of any obligation to such plan shall be made by the Committee. 
 8.3. Form of Amendment or Termination. Any amendment or termination of the Trust shall be evidenced by an instrument in writing signed by an
authorized officer of the Company, certifying that said amendment or termination has been authorized and directed by the Company or the Board of Directors, as applicable, and, in the case of any amendment, shall be consented to by signature of an
authorized officer of the Trustee, if required by Section 8.1. 
 ARTICLE 9. 
 Miscellaneous 
 9.l. Controlling Law. The laws of the Commonwealth of
Pennsylvania shall be the controlling law in all matters relating to the Trust, without regard to conflicts of law. 
 9.2. Committee
Action. Any action required or permitted to be taken by the Committee may be taken on behalf of the Committee by any individual so authorized. The Company shall furnish to the Trustee the name and specimen signature of each member of the
Committee upon whose statement of a decision or direction the Trustee is authorized to rely. Until notified of a change in the identity of such person or persons, the Trustee shall act upon the assumption that there has been no change. In the event
that a Change of Control occurs, the Board of Directors shall no longer have the authority to remove or appoint members of the Committee and the members of the Committee in place immediately preceding such a Change of Control shall continue as such
members and shall have the authority to appoint new members to replace any members who resign or otherwise cease to be members after the Change of Control. 
  

 - 11 - 

 9.3. Notices. All notices, requests, or other communications required or permitted to be delivered
hereunder shall be in writing, delivered by registered or certified mail, return receipt requested as follows: 
 To the Company 

Donald H. Cuozzo, Esquire 
 Secretary

 Mine Safety Appliances Company 
 P.O. Box 426 
 Pittsburgh, PA 15230 
 To the Trustee: 
 PNC Bank, N.A. 
 One Oliver Plaza 
 27th Floor 
 6th Avenue 
 Pittsburgh, PA 15222

 Attn: Frank Leja, Vice President 
 Any party hereto may from time to time, by written notice given as aforesaid, designate any other address to which notices, requests or other communications addressed to it shall be sent. 
 9.4. Severability. If any provision of the Trust shall be held illegal or invalid or unenforceable for any reason, such provision shall not affect
the remaining parts hereof, but the Trust shall be construed and enforced as if said provision had never been inserted herein. 
 9.5.
Protection of Persons Dealing with the Trust. No person dealing with the Trustee shall be required or entitled to monitor the application of any money paid or property delivered to the Trustee, or determine whether or not the Trustee is
acting pursuant to authorities granted to it hereunder or to authorizations or directions herein required. 
 9.6. Tax Status of
Trust. It is intended that the Company, as grantor hereunder, be treated as the owner of the entire Trust and the trust assets under Section 671 et seq. of the Code. Until advised otherwise, the Trustee may presume that the Trust is so
characterized for federal income tax purposes and shall make all filings of tax returns on that presumption. 
 9.7. Participants to Have
No Interest in the Company by Reason of the Trust. Neither the creation of the Trust nor anything contained in the Trust shall be construed as giving any person, including any individual employed by the Company or any subsidiary of the Company,
any equity or interest in the assets, business, or affairs of the Company except to the extent that any such individuals are entitled to exercise stockholder rights with respect to Company Stock pursuant to Section 5.4. 
 9.8. Nonassignability. No right or interest of any person to receive distributions from the Trust shall be assignable or transferable, in whole or
in part, either directly or by operation of law or otherwise, including, but not by way of limitation, execution, levy, garnishment, attachment, pledge, or bankruptcy, but excluding death or mental incompetency, and no right or interest of any
person to receive distributions from the Trust shall be subject to any obligation or liability of any such person, including claims for alimony or the support of any spouse or child. 
  

 - 12 - 

 9.9. Gender and Plurals. Whenever the context requires or permits, the masculine gender shall
include the feminine gender and the singular form shall include the plural form and shall be interchangeable. 
 9.10. Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be considered an original. 
 IN WITNESS WHEREOF, the
Company and the Trustee have caused this Agreement to be signed, and their seals affixed hereto, by their authorized officers all as of the day, month and year first above written. 
  

			
		
	By:	 	/s/ Frank H. Leja
		 	Title: Vice President
		 	Attest: /s/ Howard H. Giles
		 	Title: Ass’t. Vice President
	
	 MINE SAFETY APPLIANCES
 COMPANY

		
	By:	 	/s/ D. L. Zeitler
		 	Title: Treasurer
		 	Attest: /s/ D. H. Cuozzo
		 	Title: Secretary

  

 - 13 - 

 SCHEDULE A 
 Employee Benefit Plans 
  

	1.	Mine Safety Appliances Company 1987 Management Share Incentive Plan. 

  

	2.	Mine Safety Appliances Company 1990 Non-Employee Directors’ Stock Option Plan. 

  

	3.	1998 Management Share Incentive Plan. Amended as of 5-5-98 Board Meeting. 

  

	4.	Mine Safety Appliances Company 2008 Management Equity Incentive Plan. 

  

	5.	Mine Safety Appliances Company 2008 Non-Employee Directors’ Equity Incentive Plan.Lease Agreement

 Exhibit 10.1 
  
  
  
 LEASE AGREEMENT 
 between 

THE CITY OF GRAND ISLAND, NEBRASKA 
 and 
 MICROGY GRAND ISLAND, LLC 
 relating to 
 $7,000,000 
 The City of Grand Island, Nebraska 
 Solid Waste Disposal Facilities Revenue Bonds 
 (Microgy Grand Island, LLC Project) 
 Series 2008 
 Dated as of June 1, 2008 
  

 
  
 The interest of The City of Grand Island, Nebraska in this Lease Agreement has been assigned (except for the rights of, and amounts payable to, The City of
Grand Island, Nebraska under Sections 6.02(b), 6.08, 7.03 and 8.03(a) hereof) pursuant to the Trust Indenture dated as of the date hereof from The City of Grand Island, Nebraska to Wells Fargo Bank, National Association, as trustee,
and is subject to the security interest of Wells Fargo Bank, National Association, as trustee. 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	
	ARTICLE I
	DEFINITIONS
			
	 Section 1.01.
	  	Definitions	  	2
	 Section 1.02.
	  	Article and Section Headings	  	20
	 Section 1.03.
	  	Interpretation	  	20
	
	ARTICLE II
	REPRESENTATIONS
			
	 Section 2.01.
	  	Representations by Issuer	  	20
	 Section 2.02.
	  	Representations by Company	  	21
	
	ARTICLE III
	DEMISING CLAUSE
			
	 Section 3.01.
	  	Acquisition	  	22
	 Section 3.02.
	  	Lease of Project	  	22
	
	ARTICLE IV
	THE PROJECT
			
	 Section 4.01.
	  	Approvals and Permits	  	23
	 Section 4.02.
	  	Acquisition and Construction	  	23
	 Section 4.03.
	  	Construction Fund	  	25
	 Section 4.04.
	  	Termination of Construction; Completion Certificate	  	26
	 Section 4.05.
	  	Issuer Not Responsible	  	27
	 Section 4.06.
	  	Insurance	  	27
	 Section 4.07.
	  	Maintenance and Repair; Remodeling	  	27
	 Section 4.08.
	  	Right To Discontinue Operation of Project	  	28
	 Section 4.09.
	  	Insurance and Condemnation Awards	  	28
	 Section 4.10.
	  	Taxation of Project	  	28
	 Section 4.11.
	  	Issuer’s Limited Liability	  	28
	 Section 4.12.
	  	Governmental Regulation	  	29
	 Section 4.13.
	  	Securing of Permits and Authorizations	  	29
	 Section 4.14.
	  	Mechanics’ Liens	  	29
	 Section 4.15.
	  	Contest of Liens	  	29
	 Section 4.16.
	  	Cooperation of Issuer	  	29
	 Section 4.17.
	  	No Warranty of Condition or Suitability by the Issuer	  	30
	
	ARTICLE V
	 ISSUANCE OF BONDS; APPLICATION OF BOND PROCEEDS;
 REFUNDING AND REDEMPTION OF BONDS

			
	 Section 5.01.
	  	Issuance of Bonds	  	30
	 Section 5.02.
	  	Application of Bond Proceeds	  	30
	 Section 5.03.
	  	Security for the Bonds	  	30
	 Section 5.04.
	  	Refunding and Redemption of Bonds	  	31

					
	ARTICLE VI
	LEASE OF PROJECT TO THE COMPANY; RENTAL PROVISIONS
			
	 Section 6.01.
	  	Quiet Enjoyment	  	31
	 Section 6.02.
	  	Rent Payments and Other Amounts Payable	  	31
	 Section 6.03.
	  	[Reserved]	  	32
	 Section 6.04.
	  	Company Approval of Issuance of Bonds	  	32
	 Section 6.05.
	  	Redemption of Bonds	  	33
	 Section 6.06.
	  	Rent Prepayment	  	33
	 Section 6.07.
	  	Payments To Replenish Debt Service Reserve Fund	  	34
	 Section 6.08.
	  	Issuer’s Rights Assigned to Trustee	  	34
	 Section 6.09.
	  	Payments to Trustee	  	34
	
	ARTICLE VII
	DEFAULTS AND REMEDIES
			
	 Section 7.01.
	  	Events of Default	  	35
	 Section 7.02.
	  	Remedies on Default	  	35
	 Section 7.03.
	  	Agreement To Pay Attorneys’ Fees and Expenses	  	37
	
	ARTICLE VIII
	SPECIAL COVENANTS
			
	 Section 8.01.
	  	No Defense or Setoff; Unconditional Obligation	  	37
	 Section 8.02.
	  	Merger, Consolidation or Sale of Assets	  	38
	 Section 8.03.
	  	Indemnities	  	39
	 Section 8.04.
	  	Tax-exempt Status of the Bonds	  	41
	 Section 8.05.
	  	Payment to Rebate Fund	  	43
	 Section 8.06.
	  	Qualification in State; Existence	  	43
	 Section 8.07.
	  	Recordation	  	44
	 Section 8.08.
	  	Granting of Easements	  	44
	 Section 8.09.
	  	Release of Certain Land	  	44
	 Section 8.10.
	  	Suspension of Covenants When the Bonds Rated Investment Grade	  	45
	 Section 8.11.
	  	Request for Ratings	  	45
	 Section 8.12.
	  	Incurrence of Indebtedness and Issuance of Stock	  	45
	 Section 8.13.
	  	Liens	  	47
	 Section 8.14.
	  	Limitation on Sale and Leaseback Transactions	  	47
	 Section 8.15.
	  	Application of Proceeds of Asset Sales	  	47
	 Section 8.16.
	  	Successor Person Substituted	  	47
	 Section 8.17.
	  	Transactions With Affiliates	  	47
	 Section 8.18.
	  	Business Activities	  	49
	 Section 8.19.
	  	Continuing Disclosure Undertaking	  	49
	 Section 8.20.
	  	Compliance Certificate	  	49
	 Section 8.21.
	  	Payments for Consent	  	50
	 Section 8.22.
	  	Payments Into and Withdrawals from Maintenance Reserve Fund	  	50
	
	ARTICLE IX
	OPTIONS; PURCHASE OF PROJECT
			
	 Section 9.01.
	  	Options To Terminate	  	50

  

 ii 

					
	 Section 9.02.
	  	Option To Purchase Project Upon Occurrence of Certain Events	  	51
	 Section 9.03.
	  	Conveyance on Exercise of Option To Purchase Project	  	51
	 Section 9.04.
	  	Relative Position of Options and Indenture	  	52
	
	ARTICLE X
		
	 OBLIGATION TO PURCHASE PROJECT IN EVENT OF A DETERMINATION OF TAXABILITY
	  	52
	
	ARTICLE XI
	GENERAL PROVISIONS
			
	 Section 11.01.
	  	General Provisions	  	53
	 Section 11.02.
	  	Financial Statements	  	54
	 Section 11.03.
	  	Amendment of Agreement	  	54
	 Section 11.04.
	  	Assignment and Subleasing	  	55
	 Section 11.05.
	  	Lease Term	  	55
	 Section 11.06.
	  	Obligation To Purchase Project on Expiration of Lease Term	  	55
	 Section 11.07.
	  	Notices	  	55
	 Section 11.08.
	  	Severability	  	56
	 Section 11.09.
	  	Execution of Counterparts	  	56
	 Section 11.10.
	  	Amounts Remaining in Bond Fund or Construction Fund	  	56
	 Section 11.11.
	  	No Recourse	  	57
	 Section 11.12.
	  	Net Lease	  	57
	 Section 11.13.
	  	Delegation of Duties by the Issuer	  	57
	 Section 11.14.
	  	Governing Law	  	57
	 Section 11.15.
	  	No Personal Liability	  	57
			
	EXHIBIT A	  	THE FACILITY, THE PROJECT AND THE PROJECT SITE	  	

  

 iii 

 LEASE AGREEMENT 
 THIS LEASE AGREEMENT, dated as of June 1, 2008 (this “Agreement”), by and between THE CITY OF GRAND ISLAND, NEBRASKA (the “Issuer”), a political subdivision duly organized
and existing under the laws of the State of Nebraska, as lessor, and MICROGY GRAND ISLAND, LLC (the “Company”), a limited liability company organized under the laws of the State of Nebraska and qualified to do business in the State
of Nebraska, as lessee: 
 W I T N E S S E T H : 
 WHEREAS, the Issuer is a political subdivision duly organized and existing under the laws of the State of Nebraska, as lessor; and 
 WHEREAS, pursuant to law, and particularly the Act (hereinafter defined), the Issuer is empowered to finance the acquisition, construction, improving and equipping of industrial solid waste disposal facilities, to be
operated by the Company, and located within Grand Island, Nebraska, and to be leased hereunder to the Company, and to issue industrial development revenue bonds for such purpose; and 
 WHEREAS, the Company has requested that the Issuer issue its industrial development revenue bonds for the purpose of financing all or a portion of the
Project Costs (hereinafter defined); and 
 WHEREAS, the Company is leasing the Project Site (hereinafter defined) from JBS Swift &
Company (successor to Swift & Company) (“JBS Swift”) pursuant to that certain Lease Agreement dated as of September 1, 2006 (the “Site Lease”) between JBS Swift, as lessor, and the Company, as lessee, and the
Company, as sublessor, and the Issuer, as sublessee, are entering into that certain Sublease Agreement dated as of June 1, 2008 (the “Sublease”) pursuant to which the Issuer will sublease the Project Site (hereinafter defined) from
the Company; and 
 WHEREAS, the Company and JBS Swift have entered into that certain Biogas Purchase and Supply Agreement dated as of
September 1, 2006 (including all amendments and supplements thereto, the “Biogas Agreement”) providing for the operation of the Facility (as hereinafter defined) and for the payment by JBS Swift to the Company of the purchase price of
biogas to be manufactured by the Company at the Facility and supplied to JBS Swift; and 
 WHEREAS, the Company has agreed to make Rent
Payments (hereinafter defined), and for such purpose has irrevocably assigned to the Trustee the biogas purchase price payments to be received by the Company under the Biogas Agreement, and other payments hereunder in consideration of the
Issuer’s issuing the Bonds and providing to the Company the proceeds from the sale of the Bonds for the acquisition, construction, improving and equipping of the Project; and 
 WHEREAS, the City Council of the Issuer has approved this Agreement and the Sublease by ordinance; and 

 WHEREAS, this Agreement is authorized and executed pursuant to applicable laws, including the Act; and

 WHEREAS, the Issuer and the Company have taken all action and have complied with all provisions of law with respect to the execution,
delivery and performance of this Agreement and the due authorization of the consummation of the transactions contemplated hereby, and this Agreement has been duly executed and delivered by, and constitutes a valid and legally binding agreement of,
the Issuer and the Company, enforceable against the respective parties in accordance with its terms; 
 NOW, THEREFORE, in consideration of
the covenants and agreements herein made and subject to the conditions herein set forth, the Issuer and the Company contract and agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.01. Definitions. In addition to the terms defined in the recitals above, each of the following terms shall have the respective meanings assigned to them in this Section 1.01 whenever they are
used in this Agreement, unless the context in which they are used clearly requires otherwise: 
 “Accountant” shall mean a
firm of independent certified public accountants selected by the Company. 
 “Acquired Debt” shall mean, with respect to any
specified Person: 
 (a) Indebtedness of any other Person existing at the time such other Person is merged with or into or
became a Subsidiary of such specified Person; and 
 (b) Indebtedness secured by a Lien encumbering any asset acquired by such
specified Person. 
 “Act” shall mean the Nebraska Industrial Development Act, Chapter 13, Article 11, Reissue
Revised Statutes of Nebraska, 1997, as amended. 
 “Act of Bankruptcy” shall mean any of the following events: 

(a) the Company shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian,
trustee, liquidator or the like of the Company or of all or any substantial part of its property, (ii) commence a voluntary case under the United States Bankruptcy Code (as now or hereafter in effect) or (iii) file a petition seeking
to take advantage of any other law relating to bankruptcy, insolvency, winding up or composition or adjustment of debts; or 
  

 2 

 (b) a proceeding or case shall be commenced without the application or consent of the
Company in any court of competent jurisdiction, seeking (i) the liquidation, reorganization, dissolution, winding up, composition or adjustment of debts, of the Company, (ii) the appointment of a trustee, receiver, custodian, liquidator or
the like of the Company or of all or any substantial part of its property or (iii) similar relief in respect of the Company under any law relating to bankruptcy, insolvency, winding up, composition or adjustment of debts. 
 “Affiliate” of any Person shall mean any other Person who, directly or indirectly, controls or is controlled by or is under common
control with such other Person. 
 “Agreement” shall mean this Lease Agreement, dated as of June 1, 2008, by and
between the Issuer and the Company, including all amendments hereof and supplements hereto. 
 “Asset Sale” shall mean the
sale, lease, conveyance or other disposition of any assets. 
 Notwithstanding the preceding, none of the following items will be deemed to
be an Asset Sale; provided that the sale, conveyance or other disposition of all or substantially all of the assets of the Company shall be governed by the provisions of Section 8.02 hereof. 
 (a) any single transaction or series of related transactions that involves assets having a Fair Market Value of less than 5% of Tangible
Assets of the Company; 
 (b) the sale or lease of products (including Credits), services or accounts receivable in the
ordinary course of business and any sale or other disposition of damaged, worn out or obsolete assets or assets no longer used or useful in the Company’s business; 
 (c) the sale or other disposition of cash or Cash Equivalents; 
 (d) a Permitted Investment; 
 (e) a disposition resulting from any condemnation or other taking, or temporary or permanent requisition of, any property, any interest therein or right appurtenant thereto, or any change of grade affecting any
property, in each case, as the result of the exercise of any right of condemnation or eminent domain, including any sale or other transfer to a Governmental Authority in lieu of, or in anticipation of, any of the foregoing events; 
 (f) a disposition of assets in connection with a foreclosure, transfer or deed in lieu of foreclosure or other exercise of remedial
action; and 
 (g) a disposition of a contract relating to any Hedging Obligation or any collateral delivered under a Hedging
Obligation. 
 “Attributable Debt” in respect of a sale and leaseback transaction shall mean, at the time of determination,
the present value of the obligation of the lessee for net rental payments during the remaining term of the lease included in such sale and leaseback transaction including any period for which such lease has been extended or may, at the option of the
lessor, be extended. Such present value shall be calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with GAAP; provided, however, that if such sale and leaseback transaction results
in a Capital Lease Obligation, the amount of Indebtedness represented thereby will be determined in accordance with the definition of “Capital Lease Obligation.” 
  

 3 

 “Authorized Company Representative” shall mean the Company’s Manager or the Chief
Executive Officer, President, Chief Financial Officer, General Counsel, Treasurer or any Assistant Treasurer or Secretary or any Assistant Secretary of EPC or such Persons at any time designated to act on behalf of the Company, such designation in
each case to be evidenced by a certificate furnished to the Issuer and the Trustee containing the specimen signature of such Person and signed on behalf of the Company by its Manager or such Chief Executive Officer, President, Chief Financial
Officer, General Counsel, Treasurer or any Assistant Treasurer or Secretary or any Assistant Secretary authorized to act on behalf of the Company. Such certificate may designate an alternate or alternates. 
 “Authorized Issuer Representative” shall mean such Person or Persons at the time and from time to time designated by written certificate
furnished to the Company and the Trustee containing the specimen signature of such Person and signed on behalf of the Issuer by its Mayor or Finance Director. 
 “Biogas Agreement” shall mean the Biogas Purchase and Supply Agreement dated as of September 1, 2006 by and between the Company and JBS Swift, including all amendments thereof and supplements
thereto. 
 “Board of Directors” shall mean: 
 (a) with respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of
such board; 
 (b) with respect to a partnership, the Board of Directors of each general partner of the partnership;

 (c) with respect to a limited liability company, the managing member or members or any controlling committee of managing
members or Managers, Board of Managers or Board of Directors thereof; and 
 (d) with respect to any other Person, the board
or committee of such Person serving a similar function. 
 “Bond Counsel” shall mean Kutak Rock LLP or such other firm
of attorneys of nationally recognized standing in the field of law relating to municipal bond law and the excludability of interest on state or local bonds from gross income of the owners of the Bonds for purposes of federal income taxation,
selected by the Company and acceptable to the Trustee and the Issuer. 
 “Bond Fund” shall mean the fund by that name
created and established in Section 6.02 of the Indenture. 
  

 4 

 “Bond Ordinance” or “Ordinance” shall mean the Ordinance adopted by the
City Council authorizing the issuance of the Bonds (including this Agreement, the Sublease, the Tax Regulatory Agreement and the Indenture prescribed and authorized to be executed in the Ordinance), together with any supplemental ordinances or
amendments to the Ordinance or such Indenture. 
 “Bond Owner,” “Bondowner,” “Owner,”
“owner,” “Bondholder,” “bondholder,” “holder,” “Registered Owner,” “registered owner” or “owner of the Bonds” shall mean the
registered owner of any Bond. 
 “Bond Registrar” shall have the meaning as specified in Section 2.03 of the Indenture.

 “Bonds” shall mean the $7,000,000 aggregate principal amount of The City of Grand Island, Nebraska Solid Waste
Disposal Facilities Revenue Bonds (Microgy Grand Island, LLC Project) Series 2008, executed and delivered pursuant to the Indenture. 
 “Business Day” shall mean any day other than (a) a Saturday, Sunday or legal holiday or a day on which banking institutions in the City of New York, New York, or in the cities in which the Principal Offices of the
Trustee or the Paying Agent are located are required or authorized by law or executive order to close or (b) a day on which The New York Stock Exchange is closed. 
 “Capital Lease Obligation” shall mean, at the time any determination is to be made, the amount of the liability in respect of a capital
lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP, and the Stated Maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date
upon which such lease may be prepaid by the lessee without payment of a penalty. 
 “Capital Stock” shall mean: 

(a) in the case of a corporation, corporate stock; 
 (b) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock; 
 (c) in the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and 
 (d) any other interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any
right of participation with Capital Stock. 
 “Cash Equivalents” shall mean: 
 (a) United States dollars; 
  

 5 

 (b) securities issued or directly and fully guaranteed or insured by the
United States government or any agency or instrumentality of the United States government (provided that the full faith and credit of the United States is pledged in support of those securities) having maturities of not more than one
year from the date of acquisition; 
 (c) deposit accounts with any bank that has a long-term debt rating of A+ or better by
S&P and A1 or better by Moody’s (an “Approved Bank”); 
 (d) time deposits, certificates of deposit,
acceptances or prime commercial paper issued by an Approved Bank at the time acquired or issued (as applicable and whichever is latest), in each case, having a maturity of not more than one year from the date of acquisition; 
 (e) repurchase obligations for underlying securities of the types described in clause (b) entered into with an Approved Bank at the
time acquired, issued or entered into (as applicable and whichever is latest), in each case, having a maturity of not more than one year from the date of acquisition and secured by securities of the type described in clause (b), the market
value of which (including accrued interest) is not less than the amount of the applicable repurchase agreement; 
 (f)
commercial paper with a rating of A-1 by S&P and P-1 by Moody’s and, in each case, maturing within one year after the date of acquisition; and 
 (g) money market funds which invest primarily in Cash Equivalents of the kinds described in clauses (a) through (f) of this definition. 
 “City Council” shall mean the duly elected City Council of the Issuer. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rulings and regulations (including temporary and proposed
regulations) promulgated thereunder or, to the extent applicable, under the Internal Revenue Code of 1954, as amended. 
 “Commercial
Operation” shall mean when used with respect to the Facility, the placing into service of such Facility for the production of the outputs for which it was designed at its design capacity. 
 “Company” shall mean Microgy Grand Island, LLC, a Nebraska limited liability company, and its successors and assigns as permitted
by Section 8.02 hereof. 
 “Company Agreements” shall mean this Agreement, the Sublease, the Tax Regulatory Agreement,
the Site Lease, the Biogas Agreement and the Pledge Agreement. 
 “Completion Certificate” shall mean a certificate of the
Authorized Company Representative to the effect stated in Section 4.04(b) hereof. 
  

 6 

 “Consolidated Cash Flow” means, for any period, the Consolidated Net Income of the
Company for such period, without duplication: 
 (1) plus depreciation, depletion, amortization (including amortization
of intangibles) and other non-cash expenses (excluding any such non-cash expense to the extent that it represents an accrual of or reserve for cash expenses in any future period) of the Company for such period to the extent that such depreciation,
amortization and other non-cash expenses were deducted in computing such Consolidated Net Income; 
 (2) less any
non-cash items of income to the extent such non-cash items of income were included in computing such Consolidated Net Income; 
 (3) plus cash received during such period related to mark-to-market activities; 
 (4) less cash paid
during such period related to mark-to-market activities; 
 provided, however, that for purposes of this definition, any mark-to-market earnings or
losses shall be excluded from the calculation of Consolidated Cash Flow to the extent taken into account in calculating Consolidated Net Income for such period. 
 “Consolidated Net Income” shall mean, with respect to any specified Person for any period, the aggregate of the Net Income of the Company for such period, on a consolidated basis, determined in
accordance with GAAP; provided that: 
 (a) the Net Income of any Person that is accounted for by the equity method of
accounting will be included only to the extent of the amount of dividends or similar distributions (including pursuant to other intercompany payments) paid in cash to the specified Person; 
 (b) the cumulative effect of a change in accounting principles will be excluded; and 
 (c) any non-cash impairment charges incurred subsequent to the Issue Date shall be excluded. 
 “Consolidated Net Worth” shall mean, with respect to a specified Person as of any date, the assets of such Person less the liabilities
of such Person all as determined on a consolidated basis in accordance with GAAP. 
 “Construction Fund” shall mean the fund
by that name created and established in Section 5.01 of the Indenture. 
 “Costs of Issuance” shall mean all costs and
expenses incurred by the Issuer or the Company in connection with the issuance and sale of the Bonds, including, without limitation, (a) fees and reasonable expenses of accountants, attorneys, engineers and financial advisors,
(b) materials, supplies and printing and engraving costs, (c) recording and filing fees, (d) Rating Service fees, (e) compensation to the Underwriter, whether paid as a fee or as a discount from issue price,
(f) Trustee’s fees and expenses and (g) the Issuer’s and the Governmental Unit’s administrative expenses as provided in Section 6.04 hereof. 
  

 7 

 “Credits” shall mean any potentially tradeable environmental attributes, including, but
not limited to, renewable energy credits, pollution offset credits, carbon sequestration credits and greenhouse gas offset credits. 
 “Debt Service Reserve Fund” shall mean the fund by that name created and established in Section 4.01 of the Indenture. 
 “Debt Service Reserve Requirement” shall mean the amount of $700,000. 
 “Default” shall mean any event which with the giving of notice or the lapse of time, or both, would constitute an Event of Default. 
 “Disqualified Stock” shall mean any Capital Stock that, by its terms (or by the terms of any security into which it is convertible, or for which it is exchangeable, in each case, at the option of the
holder of the Capital Stock), or upon the happening of any event, matures or is manditorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder of the Capital Stock, in whole or in part, on or
prior to the date that is 91 days after the latest date on which any Indebtedness matures. 
 “Environmental
Claim” shall mean any investigation, notice, notice of violation, claim, action, suit, proceeding, demand, abatement order or other order or directive (conditional or otherwise), by any Governmental Authority or any other Person,
arising (i) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (ii) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (iii) in connection with
any actual or alleged damage, injury, threat or harm to health, safety, natural resources or the environment. 
 “Environmental Laws” shall mean any and all current or future foreign or domestic, federal or state (or any subdivision of either of them), statutes, ordinances, orders, rules, regulations, judgments or any other
requirements of Governmental Authorities relating to (i) environmental matters, including those relating to any Hazardous Materials Activity; (ii) the generation, use, storage, transportation or disposal of Hazardous Materials; or
(iii) occupational safety and health, industrial hygiene, land use or the protection of human, plant or animal health or welfare, in any manner applicable to the Company or the Facility. 
 “EPC” shall mean Environmental Power Corporation, a Delaware corporation. 
 “Equity Interests” shall mean Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt
security that is convertible into, or exchangeable for, Capital Stock). 
 “Event of Default,” when used with respect to
this Agreement, shall mean any event specified in Section 7.01 hereof. 
  

 8 

 “Facility” shall mean the solid waste disposal facilities described on Exhibit A to
this Agreement. 
 “Fair Market Value” shall mean the value that would be paid by a willing buyer to a willing seller in a
transaction not involving distress or necessity of either party, determined in good faith by the chief financial officer or Board of Directors of the Company. 
 “Favorable Opinion” shall mean an opinion of Bond Counsel addressed to the Issuer, the Company and the Trustee and stating that the action proposed to be taken is authorized or permitted by the Act
and the Indenture and will not, in and of itself, adversely affect the excludability from gross income for federal income tax purposes of interest on the Bonds (other than as held by a “substantial user” of the Project or a “related
person” within the meaning of the Code). 
 “Fitch” shall mean Fitch Ratings or any successor thereto maintaining a
rating on the Bonds. 
 “Fixed Charge Coverage Ratio” shall mean, for any period, the ratio of (x) the Consolidated Net
Income without taking into account any unrealized gain or loss on mark-to-market hedging activities, plus depreciation, plus interest expenses, plus income taxes of the Company for such period, to (y) the interest expenses plus the principal
payments related to the Bonds. 
 “GAAP” shall mean generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which are in effect from time to time. 
 “Governmental
Authority” shall mean the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government. 
 “Guarantor” shall mean (a) Microgy Grand Island, LLC, a Nebraska limited liability company, and its successors and assigns, and (b) any surviving, resulting or transferee entity as provided
in the Guaranty. 
 “Guaranty” shall mean the Guaranty Agreement dated as of June 1, 2008 from the Guarantor, as
guarantor, to the Trustee wherein the Guarantor guarantees the payment of principal of, premium, if any, and interest on the Bonds, including all amendments thereof or supplements thereto. 
 “Hazardous Materials” shall mean any chemical, material or substance, exposure to which is prohibited, limited or regulated by any
Governmental Authority or which may or could pose a hazard to the health and safety of the owners, occupants or any Persons in the vicinity of the Facility or to the indoor or outdoor environment. 
  

 9 

 “Hazardous Materials Activity” shall mean any past, current, proposed or threatened
activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, release, threatened release, discharge, placement, generation, transportation, processing,
construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing. 
 “Hedging Obligation” shall mean the net obligations of the Company under: 
 (1) interest rate swap agreements (whether from fixed to floating or from floating to fixed), interest rate cap agreements and interest
rate collar agreements; 
 (2) other agreements or arrangements designed to manage interest rate risk, and 
 (3) other agreements or arrangements designed to protect the Company against fluctuations in currency exchange rates or fluctuations in
the prices of commodities which are inputs to or products of the Facility. 
 “Indebtedness” shall mean, with respect to any
specified Person, any indebtedness of such Person (excluding accrued expenses or trade payables), whether or not contingent (without duplication): 
 (a) in respect of borrowed money; 
 (b) evidenced by bonds, debentures or similar instruments
or letters of credit or reimbursement agreements in respect thereof or guarantees thereof; 
 (c) in respect of banker’s
acceptances; 
 (d) representing Capital Lease Obligations or Attributable Debt in respect of sale and leaseback transactions;

 (e) representing the balance deferred and unpaid of the purchase price of any property or services due more than six months
after such property is acquired or such services are completed; or 
 (f) representing or entered into in connection with any
Hedging Obligations, 
 if and to the extent any of the preceding items (other than guarantees, letters of credit, Attributable Debt and Hedging Obligations)
would appear as a liability upon a balance sheet of the specified Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person
(whether or not such Indebtedness is assumed by the specified Person) and, to the extent not otherwise included, the guarantee by the specified Person of any Indebtedness of any other Person. 
  

 10 

 The amount of any Indebtedness outstanding as of any date will be: 
 (a) the accreted value of the Indebtedness, in the case of any Indebtedness issued with original issue discount; 
 (b) the principal amount of and premium (if any) on the Indebtedness, in the case of any other Indebtedness; and 
 (c) in respect of Indebtedness of other Persons secured by a Lien on the assets of the specified Person, the lesser of: 
 (i) the Fair Market Value of such asset at such date of determination, and 
 (ii) the amount of such Indebtedness of such other Persons. 
 “Indemnified Liabilities” shall mean, collectively, any and all liabilities, obligations, losses, damages (including natural resource damages), penalties, claims (including Environmental Claims),
costs (including the costs of any investigation, study, sampling, testing, abatement, cleanup, removal, remediation or other response action necessary to remove, remediate, clean up or abate any Hazardous Materials Activity), expenses and
disbursements of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel for Indemnitees in connection with any investigative, administrative or judicial proceeding commenced or threatened by any Person, and any
fees or expenses incurred by Indemnitees in enforcing this indemnity), whether direct, indirect or consequential and whether based on Environmental Laws, on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred
by, or asserted against any such Indemnitee, in any manner relating to or arising out of any Environmental Claim or any Hazardous Materials Activity relating to or arising from, directly or indirectly, any past or present activity, operation, land
ownership, or practice of the Company. 
 “Indenture” shall mean the Trust Indenture, dated as of June 1, 2008, between
the Issuer and the Trustee, including all amendments thereof or supplements thereto. 
 “Independent Counsel” shall mean an
attorney duly admitted to practice law before the highest court of any state or the District of Columbia and who is not a full-time employee, director or shareholder of the Issuer or the Company. 
 “Investment Grade Rating” shall mean a rating equal to or higher than Baa3 (or the equivalent) by Moody’s, BBB- (or the equivalent)
by S&P or BBB (or the equivalent) by Fitch. 
 “Investments” shall mean, with respect to any Person, all direct or
indirect investments by such Person in other Persons (including Affiliates) in the forms of loans (including guarantees or similar obligations), advances or capital contributions (excluding payroll, commission, travel and similar advances to
officers and employees made in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as investments on a
balance sheet prepared in accordance with GAAP. “Investment” shall exclude extensions of trade credit by the Company in the ordinary course of business and the Bonds. The acquisition by the Company of a Person that holds an 

  

 11 

 
Investment in a third Person will be deemed to be an Investment by the Company in such third Person in an amount equal to the Fair Market Value of the
Investments held by the acquired Person in such third Person. The amount of an Investment shall be its Fair Market Value at the time the Investment is made and without giving effect to subsequent changes in value. 
 “Issue Date” shall mean the date on which the Bonds are first authenticated and delivered to the Underwriter against payment therefor.

 “Issuer” shall mean The City of Grand Island, Nebraska, a political subdivision duly organized and existing under
the laws of the State of Nebraska, and its successors and assigns. 
 “Lease Term” shall mean the term of this Agreement as
specified in Section 11.05 hereof. 
 “Lien” shall mean, with respect to any asset, any mortgage, lien, pledge, charge,
security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement and any lease that constitutes a
security interest. 
 “Limited Offering Memorandum” shall mean the final Limited Offering Memorandum dated July 22,
2008 of the Issuer relating to the Bonds. 
 “Lockbox Account” shall mean the account of the Bond Fund by that name created
and established pursuant to Section 6.02 of the Indenture. 
 “Maintenance Reserve Fund” shall mean the fund by that
name created and established in Section 7.01 of the Indenture. 
 “Majority Holders” shall mean the owners of a
majority in principal amount of the Bonds Outstanding. 
 “Management Services Agreement” shall mean the Management Services
Agreement dated July 24, 2008 between the Company and EPC, including all amendments thereof and supplements thereto. 
 “Moody’s” shall mean Moody’s Investors Service, Inc. or any successor thereto maintaining a rating on the Bonds. 
 “Net Income” shall mean the net income (loss) of the Company determined in accordance with GAAP and before any reduction in respect of preferred stock dividends, excluding, however: 
 (a) any gain (or loss), together with any related provision for taxes on such gain (or loss), realized in connection with (i) any
Asset Sale; or (ii) the disposition of any securities by the Company or the extinguishment of any Indebtedness of the Company; and 
  

 12 

 (b) any extraordinary gain (or loss), together with any related provision for taxes on
such extraordinary gain (or loss). 
 “Officer” shall mean, with respect to any Person, the Chairman of the Board, the Chief
Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary, Assistant Secretary, or any Vice-President of such Person. 
 “Officer’s Certificate” shall mean a certificate signed on behalf of the Company by an Officer of the Company, who must be the
principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Company, that meets the requirements of Section 8.21 hereof. 
 “Outstanding” or “outstanding” shall mean, when used with reference to Bonds, as of the time in question, all Bonds
authenticated and delivered under the Indenture, except: 
 (a) Bonds theretofore cancelled or required to be cancelled under
Section 2.11 of the Indenture; 
 (b) Bonds which are deemed to have been paid in accordance with Article XVI of the
Indenture; 
 (c) Bonds in substitution for which other Bonds have been authenticated and delivered pursuant to
Article II of the Indenture and Bonds paid pursuant to Section 2.09(a) of the Indenture; 
 (d) Bonds registered in
the name of the Issuer; and 
 (e) For purposes of any consent, request, demand, authorization, direction, notice, waiver or
other action to be taken by the holders of a specified percentage of outstanding Bonds hereunder, all Bonds held by or for the account of the Issuer or the Company, except that, for purposes of any such consent, request, demand, authorization,
direction, notice, waiver or action, the Trustee shall be obligated to consider as not being outstanding only Bonds known by a Responsible Officer of the Trustee by actual notice thereof to be so held. 
 “Paying Agent” shall mean the Trustee or any successor paying agent or co-paying agent serving as such under the Indenture. If at any
time there is no qualified paying agent serving as such, the Trustee shall act as paying agent under the Indenture. “Principal Office” of the Paying Agent shall mean the office thereof designated in writing to the Trustee and the Issuer.

 “Permitted Business” shall mean the business of recycling solid waste for the production of gas, energy and Credits and
providing related services and products in the energy market and any businesses incidental or reasonably related thereto, and such other business as would not be material to the Company. 
  

 13 

 “Permitted Encumbrances” shall mean, as of any particular time, (a) liens for taxes
and assessments not then delinquent, or which the Company may, pursuant to the provisions of Section 4.10 hereof, permit to remain unpaid, (b) this Agreement, the Indenture, the Site Lease, the Sublease and any financing statements naming
the Issuer or the Company as debtor and naming the Trustee or the Issuer as secured party filed to perfect the security interests granted by the Indenture and this Agreement, (c) utility access and other easements and rights of way,
restrictions and exceptions that the Authorized Company Representative certifies will not interfere with or impair the Project, (d) any mechanic’s, laborer’s, materialman’s, supplier’s or vendor’s lien, or right not
filed or perfected in the manner prescribed by law and (e) such minor defects, irregularities, encumbrances and clouds on title as normally exist with respect to property similar in character to the Project and as do not, in the opinion of
Independent Counsel, materially impair the property affected thereby for the purpose for which it was acquired or held by the Issuer. 
 “Permitted Investment” shall mean: 
 (a) any Investment in the Company; 
 (b) any Investment in Cash Equivalents; 
 (c) any Investment by the Company in a Person, if as a result of such Investment: such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is
liquidated into, the Company; 
 (d) any Investment made as a result of the receipt of non-cash consideration from an Asset
Sale; 
 (e) any acquisition of assets or Capital Stock solely in exchange for the issuance of Equity Interests (other than
Disqualified Stock) of the Company; 
 (f) any Investments received in compromise or resolution of (A) obligations of
trade creditors or customers that were incurred in the ordinary course of business of the Company, including pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer; or
(B) litigation, arbitration or other disputes with Persons who are not Affiliates; 
 (g) Investments represented by or
entered into in connection with Hedging Obligations; 
 (h) any Investment acquired by the Company on account of any claim
against, or interest in, any other Person (i) acquired in good faith in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization of such other Person or (ii) as a result of a bona fide foreclosure by the
Company with respect to any claim against any other Person; 
 (i) repurchases of the Bonds or pari passu Indebtedness;

 (j) any Investments in the Debt Service Reserve Fund and the Maintenance Reserve Fund; 
  

 14 

 (k) payment of consolidated taxes pursuant to the Tax Sharing Agreement, and any other
tax allocation agreements between the Company and EPC; 
 (l) receivables owing to the Company, if created or acquired in the
ordinary course of business and payable or dischargeable in accordance with customary trade terms; provided, however, that such trade terms may include such concessionary trade terms as the Company deems reasonable under the circumstances; and

 (m) other Investments in any Person having an aggregate Fair Market Value (measured on the date each such Investment was
made and without giving effect to subsequent changes in value), when taken together with all other Investments made pursuant to this clause (m) that are at the time outstanding not in excess of the Asset Percentage. 
 “Permitted Liens” shall mean: 
 (a) Liens securing obligations under sale leaseback transactions permitted by Section 8.14 hereof, covering only the assets subject to such transaction; 
 (b) Liens in favor of the Company; 
 (c) Liens for taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly instituted and diligently concluded;
provided that any reserve or other appropriate provision as is required in conformity with GAAP has been made therefor; 
 (d)
Liens imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’ liens, in each case, incurred in the ordinary course of business; 
 (e) survey exceptions, encumbrances, easements or reservations, including those for licenses, rights-of-way, sewers, electric lines,
telegraph and telephone lines, mineral reservations and rights and leases, zoning restrictions and other restrictions as to the use of real property that were not incurred in connection with Indebtedness and that (i) are permitted under the
terms of this Agreement, the Indenture, Sublease and the Biogas Agreement or (ii) do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of the Company;

 (f) financing statements (including precautionary statements) filed in connection with a Capital Lease Obligation or an
operating lease, in each case, not prohibited hereunder; provided that no such financing statement extends to, covers or refers to as collateral, any property or assets of a the Company, other than the property or assets which are subject to such
Capital Lease Obligation or such operating lease; 
 (g) Liens arising out of or in connection with any judgment that does not
constitute an Event of Default or in connection with any litigation or other legal proceeding as to which an appeal to contest or review is timely commenced in good faith by appropriate proceedings and as to which adequate reserves have been
established in accordance with GAAP; provided that any right to levy, seizure, attachment, sequestration, foreclosure or garnishment of any property and assets of the Company thereof arising out of or in connection with any such Lien has been and
continues to be enjoined or effectively stayed; 
  

 15 

 (h) inchoate statutory Liens arising under ERISA; 
 (i) Liens (i) on cash and short-term investments (A) deposited by the Company or any of its Subsidiaries in margin accounts with
or on behalf of futures contract brokers or paid over to other counterparties or (B) pledged or deposited as collateral to a contract counterparty or issuer of surety bonds by the Company or any of its Subsidiaries, in the case of
clause (A) or (B), to secure obligations with respect to (x) contracts for commercial and trading activities in the ordinary course of business and contracts (including without limitation, physical delivery, option (whether cash or
financial), exchange, swap and futures contracts) for the purchase, transmission, distribution, sale, lease or hedge of any energy-related commodity or service or (y) interest rate, commodity price, or currency rate management contracts or
derivatives and (ii) encumbering assets other than accounts or receivables arising out of contracts or agreements relating to the generation, distribution or transmission of energy; provided that all such agreements or contracts are entered
into in the ordinary course of business; 
 (j) Liens arising by virtue of any statutory or common law provision relating to
banker’s liens, rights of setoff or similar rights, contractual rights of setoff or netting arrangements entered into in the ordinary course of business and similar rights with respect to deposit accounts, commodity accounts and/or securities
accounts; 
 (k) Liens arising under Section 9-333 of the Nebraska Uniform Commercial Code or similar statutes of states
other than Nebraska; 
 (l) pledges and deposits to secure the payment of workers’ compensation, unemployment insurance,
social security benefits or obligations under similar laws, or to secure the payment or performance of statutory or public obligations (including environmental, municipal and public utility commission obligations and requirements), reimbursement or
indemnity obligations arising out of surety, performance, or other similar bonds, and other obligations of a like nature, in each case incurred in the ordinary course of business; 
 (m) Liens granted by a Person in favor of a commercial trading counterparty pursuant to a netting agreement, which Liens encumber rights
under agreements that are subject to such netting agreement and which Liens secure such Person’s obligations to such counterparty under such netting agreement; provided, that any such agreements and netting agreements are entered into in the
ordinary course of business; and provided, further, that the Liens are incurred in the ordinary course of business and when granted, do not secure obligations which are past due; 
 (n) Liens on proceeds from the issuance of Bonds and Liens on Indebtedness or any assets of the Company held by a trustee securing the
Bonds; 
  

 16 

 (o) Liens created in connection with the indemnity and contribution obligations in favor
of underwriters or Bond purchasers in connection with the Bonds; and 
 (p) Liens incurred in the ordinary course of business
of the Company securing obligations that in the aggregate at any one time outstanding do not exceed the Asset Percentage. 
 “Permitted Refinancing Indebtedness” shall mean any Indebtedness of the Company issued in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund other Indebtedness of the
Company; provided that: 
 (a) the principal amount (or accreted value, if applicable) of such Permitted Refinancing
Indebtedness does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness extended, refinanced, renewed, replaced, defeased or refunded (plus all accrued interest on the Indebtedness and the amount of all expenses,
costs and fees and premiums incurred in connection therewith); 
 (b) such Permitted Refinancing Indebtedness has a final
maturity date later than the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded;
and 
 (c) such Indebtedness is incurred by the Company as obligor on the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded. 
 “Person” shall mean an individual, a corporation, a partnership, a joint venture, an
association, a joint-stock company, a trust, an unincorporated organization, a limited liability company, a governmental body, a political subdivision, a municipal corporation, a public corporation or any other group or organization of individuals.

 “Pledge Agreement” shall mean the Pledge Agreement dated as of June 1, 2008 among the Company, the Trustee and JBS
Swift, including all amendments thereof or supplements thereto. 
 “Principal Office” is defined in the definitions of
Trustee and Paying Agent herein. 
 “Project” shall mean the Facility, to the extent financed with proceeds of the Bonds, as
further described on Exhibit A to this Agreement. 
 “Project Costs” shall mean costs incurred by the Issuer or the Company,
whether before or after the issuance of the Bonds, and reimbursed not later than three years after the payment thereof, with respect to the acquisition, construction, improving and equipping of the Project, including, but not limited to, the
following items: 
 (a) the cost of acquisition, cleanup, construction, reconstruction, improvement and expansion, including
the cost of the acquisition of all land, rights-of-way, property rights, easements, and interests, the cost of all machinery and equipment, financing charges, inventory, raw materials and other supplies, research and development costs, interest
prior to and during 

  

 17 

 
construction and for six months after completion of construction, whether or not capitalized, necessary reserve funds, cost of estimates and of engineering
and legal services, plans, specifications, surveys, estimates of cost and of revenue, other expenses necessary or incident to determining the feasibility and practicability of acquiring, cleaning, constructing, reconstructing, improving, and
expanding any such project, administrative expense and such other expenses as may be necessary or incident to the acquisition, cleanup, construction, reconstruction, improvement and expansion thereof, the placing of the same in operation and the
financing or refinancing of any such project, including the refunding of any outstanding obligations, mortgages or advances issued, made or given by any Person for any of the aforementioned costs; 
 (b) to the extent authorized by the Act, costs of all other items related to the acquisition, construction, improving and equipping of the
Project; and 
 (c) all Costs of Issuance. 
 “Project Site” shall mean the real estate identified in Exhibit A attached hereto on which the Project is situated, which real estate is owned by JBS Swift, leased by JBS Swift to the Company pursuant
to the Site Lease and subleased by the Company to the Issuer pursuant to the Sublease, and any other interests in real property, leasehold interests, easements, licenses and rights in real property hereafter acquired by the Issuer for use in
connection with the Project, less any interests in real property, easements, licenses, rights of way or similar rights and privileges as may be released from this Agreement pursuant to Section 8.09 or 8.10 hereof, or taken by the exercise of
the power of eminent domain. 
 “Rebate Fund” shall mean the fund by that name created and established in Section 8.05
of the Indenture. 
 “Regulations” shall mean the Income Tax Regulations promulgated pursuant to the Code. 
 “Rent Payment” shall mean each payment required to pay amounts due and owing on the Bonds issued pursuant to this Agreement, as
described and defined in Sections 6.02 and 6.04 hereof and as provided for in the Indenture, including the principal of, redemption premium, if any, and interest on such Bonds. 
 “Responsible Officer” shall mean an officer of the Trustee who customarily handles corporate trusts and is assigned to supervise the
Indenture, and any other officer of the Trustee to whom a matter is referred because of his knowledge of and familiarity with the particular subject in question. 
 “SEC” shall mean the United States Securities and Exchange Commission. 
 “Site
Lease” shall mean the Lease Agreement dated as of September 1, 2006 between JBS Swift, as lessor, and the Company, as lessee, including all amendments thereof and supplements thereto. 
  

 18 

 “S&P” shall mean Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc., or any successor thereto maintaining a rating on the Bonds. 
 “State” shall mean the State of
Nebraska. 
 “Stated Maturity” shall mean, with respect to any installment of interest or principal on any Indebtedness, the
date on which the payment of interest or principal is scheduled to be paid in the documentation governing such Indebtedness as of the Issue Date, and will not include any contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof. 
 “Sublease” shall mean the Sublease Agreement
dated as of June 1, 2008 between the Company, as sublessor, and the Issuer, as sublessee, including all amendments thereof and supplements thereto. 
 “Subsidiary” shall mean, with respect to any specified Person: 
 (a) any
corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or
stockholders’ agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by
that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and 
 (b) any partnership
(i) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (ii) the only general partners of which are that Person or one or more Subsidiaries of that Person (or any combination
thereof). 
 “Support Agreement” shall mean the Support Agreement dated July 24, 2008 from EPC to the Company,
including all amendments thereof and supplements thereto. 
 “Tangible Assets” shall mean, as of any date the assets of the
Company determined in accordance with GAAP. 
 “Tax Regulatory Agreement” shall mean the Tax Regulatory Agreement dated as
of June 1, 2008 between the Issuer and the Company, including all amendments thereof or supplements thereto. 
 “Tax Sharing
Agreement” shall mean the Tax Sharing Agreement dated July 24, 2008 between the Company and EPC, including all amendments thereof and supplements thereto. 
 “Trustee” shall mean Wells Fargo Bank, National Association, and any successor trustee or co-trustee serving as such under the Indenture. “Principal Office” of the Trustee shall mean the
business address designated in writing by the Trustee to the Issuer and the Company as its principal office for its duties hereunder, which initially shall be as specified in Section 11.07 hereof. 
  

 19 

 “Unassigned Rights” shall mean the rights of the Issuer under Sections 6.02(b),
6.08, 7.03 and 8.03(a) of this Agreement and the right to receive notices hereunder. 
 “Underwriter” shall mean the initial
underwriter of the Bonds, B.C. Ziegler and Company d/b/a Ziegler Capital Markets. 
 “Weighted Average Life to Maturity”
shall mean, when applied to any Indebtedness at any date, the number of years obtained by dividing: 
 (a) the sum of the
products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect of the Indebtedness, by (ii) the
number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by 
 (b) the then outstanding principal amount of such Indebtedness. 
 Section 1.02. Article and Section Headings. The
headings or titles of the several Articles and Sections of this Agreement, and the Table of Contents appended hereto, are solely for convenience of reference and shall not affect the meaning or construction of the provisions hereof. 
 Section 1.03. Interpretation. The singular form of any word used herein shall include the plural, and vice versa, if applicable. The use of
a word of any gender shall include all genders, if applicable. This Agreement and all of the terms and provisions hereof shall be construed so as to effectuate the purposes contemplated hereby and to sustain the validity hereof. All references to
any Person or entity defined in Section 1.01 shall be deemed to include any Person or entity succeeding to the rights, duties and obligations of such Person or entity. Unless otherwise specified herein, all references to specific times shall be
deemed to refer to New York time. 
 ARTICLE II 
 REPRESENTATIONS 
 Section 2.01. Representations by Issuer. The Issuer makes the
following representations as the basis for the undertakings on its part herein contained: 
 (a) The Issuer is a political
subdivision duly organized and existing under the laws of the State. Under the provisions of the Act and the Constitution of the State, the Issuer is authorized to enter into the transactions contemplated by this Agreement and the Indenture and to
carry out its obligations hereunder and thereunder. The Issuer has been duly authorized to execute and deliver this Agreement and the Indenture. 
 (b) The Project is located on the Project Site. The Issuer has a leasehold interest in the Project site and has ownership of the Project, proposes to provide funds for the construction of the Project and has by this
Agreement leased the Project to the Company as hereinafter provided. It is understood by the parties hereto that the Issuer shall have all right, title and interest in the Project until purchased by the Company as provided in this Agreement.

  

 20 

 (c) Heretofore, the Issuer and the Company did agree that the Issuer would finance the
Project Costs. The Company has estimated that the Project Costs would not be less than $7,000,000. 
 (d) The Issuer now
agrees to provide such financing to pay the costs of acquiring, constructing, improving and equipping the Project by the issuance of the Bonds on the date of delivery of the Bonds to the Underwriter. 
 (e) The execution and delivery of this Agreement, the Sublease, the Indenture and the Tax Regulatory Agreement by the Issuer do not, and
consummation of the transactions contemplated hereby and thereby and fulfillment of the terms hereof or thereof by the Issuer will not, result in a breach of any of the terms or provisions of, or constitute a default under, any indenture, mortgage,
deed of trust or other agreement or instrument to which the Issuer is now a party or by which it is now bound. 
 (f) The
Issuer has not and will not pledge the amounts derived from this Agreement other than to secure the Bonds and will not mortgage or encumber the Project other than as provided herein and in the Indenture. 
 (g) Nothing in this Agreement shall be construed to require the Issuer to operate the Project other than as lessor. 
 (h) A private sale of the Bonds would be advantageous to the Issuer. 
 Section 2.02. Representations by Company. The Company makes the following representations as the basis for the undertakings on its part
herein contained: 
 (a) The Company (i) is a limited liability company duly organized and in good standing in the State
of Nebraska, (ii) is not in violation of any provision of its operating agreement, (iii) has full power to own its properties and conduct its business, (iv) has full legal right, power and authority to enter into this Agreement and
consummate, or cause to be consummated, all transactions contemplated by this Agreement and (v) by proper action has duly authorized the execution and delivery of the Company Agreements. 
 (b) Neither the execution and delivery of the Company Agreements, the consummation of the transactions contemplated thereby nor the
fulfillment of or compliance with the terms and conditions of the Company Agreements conflicts with or results in a breach of the terms, conditions or provisions of any restriction or any agreement or instrument to which the Company is now a party
or by which the Company is bound, or constitutes a default under any of the foregoing, or results in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of the property or assets of the Company contrary to the terms of
any instrument or agreement. 
 (c) Except as may be disclosed in the Limited Offering Memorandum, there is no litigation or
proceeding pending or, to the knowledge of the Company, threatened against the Company having a material adverse effect on the right of the Company to execute the Company Agreements, or, in its capacity as the Guarantor, the Guaranty, or the ability
of the Company to make the payments required hereunder or under the Guaranty or to otherwise comply with the Company’s obligations contained in the Company Agreements or, in its capacity as the Guarantor, the Guaranty. 
  

 21 

 (d) The Project is of the type authorized and permitted by the Act, and the estimated
Project Costs are not less than $7,000,000. 
 (e) The proceeds of the Bonds will be used only for payment of Project Costs.

 (f) The Company will operate the Project, and intends to operate the Project, or cause the Project to be operated, as a
“project,” within the meaning of the Act, until the date on which all of the Bonds have been fully paid and are no longer outstanding. 
 (g) No changes shall be made in the Project and no actions will be taken by the Company which shall in any way affect the qualification of the Project as a “project” under the Act or impair the exclusion of
interest on any of the Bonds from gross income for federal income tax purposes. 
 (h) Except as may be disclosed in the
Limited Offering Memorandum, the Project, as designed, complies with all presently applicable building and zoning ordinances. 
 (i) The Project will not be moved during the Lease Term. 
 (j) The Company has irrevocably assigned to the Trustee
all payments to be made to the account of the Company during the Lease Term under and pursuant to the Biogas Agreement for deposit into the Lockbox Account of the Bond Fund and application, in accordance with the Indenture, to the payment as and
when due and payable of the Rent Payments. 
 ARTICLE III 
 DEMISING CLAUSE 
 Section 3.01. Acquisition. The Company hereby transfers or agrees to
cause to be transferred, against payment therefor in accordance with Section 4.03(b) hereof, to the Issuer the Project as set forth or to be set forth in Exhibit A heretofore acquired or to be acquired on behalf of the Issuer, by bill of
sale and special warranty deed free and clear of all liens, encumbrances, claims and servitudes except Permitted Encumbrances. 
 Section
3.02. Lease of Project. The Issuer demises and leases to the Company, and the Company leases from the Issuer, the Facility, including the Project, subject only to Permitted Encumbrances, in accordance with the provisions of this
Agreement, to have and to hold for the Lease Term. 
  

 22 

 ARTICLE IV 
 THE PROJECT 
 Section 4.01. Approvals and Permits. The Company agrees to obtain, or
cause to be obtained, all permits and approvals necessary with respect to the acquisition, construction, equipping and furnishing of the Project. 
 Section 4.02. Acquisition and Construction. 
 (a) The Project shall be acquired, constructed, improved
and equipped with all reasonable dispatch by the Company and shall belong to, and be the property of, the Issuer until purchased by the Company, provided that the Company is intended to be the owner of the Project for federal income tax purposes.
The Company will use its best efforts to cause such acquisition, construction, improving and equipping to be completed as soon as reasonably commercially practicable, delays incident to strikes, riots, acts of God or the public enemy, or other
causes beyond the reasonable control of the Company only excepted; but if for any reason there should be delays in such acquisition, construction, improving and equipping, there shall be no diminution in or postponement of the Rent Payments to be
made by the Company hereunder, and no resulting liability on the part of the Issuer. The Company agrees, however, to use its best efforts to remedy with all commercially reasonable dispatch the cause or causes preventing it from carrying out its
agreements, provided that the settlement of strikes, lockouts and other industrial disturbances shall be entirely within the discretion of the Company, and the Company shall not be required to make settlement of strikes, lockouts and other
industrial disturbances by acceding to the demands of the opposing party or parties when such course is, in the judgment of the Company, unfavorable to the Company. 
 (b) The Company shall acquire, construct, improve and equip the Project or cause the Project to be acquired, constructed, improved and
equipped in the manner provided in the Act and this Agreement and in accordance with the Plans and Specifications on file and available to the Issuer at the Facility during the construction period (subject to the restrictions of subsection (c)
below) and the Trustee shall have no responsibility or liability whatsoever with respect to the Project and the acquisition, construction, improving or equipping thereof. The Company may amend, or cause to be amended, such Plans and Specifications;
provided, however, that such Plans and Specifications shall not be amended in any material respect except as provided in subsection (d) below. It is agreed and understood that the Company will cause to be entered into and executed all
agreements and contracts necessary to assure and accomplish the actual acquisition, construction, improving, equipping and furnishing of the Project (and that the Issuer shall not execute any such agreements or contracts) and that the Company will
cause to be carried out, paid, supervised and enforced all such agreements and contracts, and will cause to be provided such insurance on and in connection with the acquisition, construction, improving, equipping and furnishing of the Project as it
deems necessary or advisable or as is required by law and this Agreement in accordance with its customary insurance practices, which may include self-insurance. The Company shall pay or cause to be paid, from proceeds from the sale and delivery of
the Bonds 

  

 23 

 
provided to it pursuant to Section 5.02 of this Agreement, and from any available income or earnings derived therefrom, and if such proceeds or income
or earnings derived therefrom are insufficient, from other funds of the Company or available to the Company to the extent necessary, all Project Costs. The Issuer shall provide the proceeds from the sale of the Bonds to the Company to be used by the
Company to pay all or part of the Project Costs, in accordance with procedures established in Section 4.03 hereof for reimbursing the Company for paying all or any part of such Project Costs under the aforesaid agreements and contracts for the
acquisition, construction, improving, equipping and furnishing of the Project prior to the Company’s receipt of the Bond proceeds as hereinafter provided. It is specifically provided, however, that none of the proceeds from the sale of the
Bonds will be used to reimburse the Company for, or to pay (and the Company hereby covenants and agrees not to request reimbursement of or payment for) any part of the Project Costs if such use or payment would result in a violation of any of the
Company’s representations contained in Section 2.02 or 8.04 hereof or the Tax Regulatory Agreement. 
 (c) The
Company hereby grants to the Issuer, its employees and agents, at all reasonable times during normal business hours and upon reasonable notice, such necessary and reasonable rights of ingress and egress to the Project as are available to the Company
and required in connection with the acquisition, construction, improving and equipping of the Project and the Company agrees that it will cooperate with the Issuer, its employees and agents, so that such Project shall be acquired, constructed and
improved as provided in this Agreement. The Issuer, its employees and agents shall not unnecessarily disrupt or interfere with the operation of the Project and shall cooperate with and observe the reasonable regulations of the Company so as to avoid
any unnecessary disruption or interference with said operation. Unless the Company shall be in default hereunder or under the Indenture, the Company may require that the rights of access hereby reserved to the Issuer, its employees and agents may be
exercised only after such employees or agents have executed release of liability agreements in the form then used by the Company. The Issuer recognizes that the drawings, designs, specifications, material lists and other engineering documents and
information contained in the Plans and Specifications or otherwise provided or made available to the Issuer in connection with the Project are proprietary to, and are the property of, the Company and/or its affiliates. The Issuer agrees to retain in
confidence and not to disclose to others (except as required by applicable law) or to use or permit the use for the benefit of or by others, without the prior written consent of the Company in each such instance, any such drawings, designs,
specifications, material lists and other engineering documents and information contained in the Plans and Specifications or otherwise provided or made available to the Issuer. Nothing in this Section or in any other provision of this Agreement shall
be construed to entitle the Issuer or the Trustee to any information or inspection involving the confidential know-how of the Company. 
 (d) If the Plans and Specifications are materially amended at any time prior to the completion of the Project, the Company shall (i) deliver to the Issuer a certificate of the Authorized Company Representative
stating that the Project constructed pursuant to the Plans and Specifications, as amended, will be “solid waste disposal facilities” within the meaning of Section 142(a)(6) of the Code or any substantially similar successor provision
and (ii) furnish the Issuer with a Favorable Opinion with respect to such proposed amendment and the expenditure of moneys from the Construction Fund to pay the Project Costs as shown on the Plans and Specifications as so amended. 

 

 24 

 (e) If, for any reason, the proceeds from the sale of the Bonds are not sufficient to pay
all the Project Costs, the Company shall complete or cause to be completed the Project and pay or cause to be paid all Project Costs which are not or cannot be paid or reimbursed from proceeds of the Bonds from its own funds or other funds available
to the Company or its affiliates, but it shall not be entitled to reimbursement from the Issuer therefor, or to any diminution in or postponement of any payments required to be made by the Company hereunder. 
 Section 4.03. Construction Fund. The Construction Fund shall be drawn on and used to pay the Costs of Issuance of the Bonds and Project
Costs when due and payable. The Issuer shall pay to the Trustee for deposit the proceeds from the sale and delivery of the Bonds as follows: (a) the amount of capitalized interest, if any, specified in the Indenture in the Capitalized Interest
Account of the Construction Fund, (b) the amount specified in the Indenture as Costs of Issuance of the Bonds in the Costs of Issuance Account of the Construction Fund, (c) an amount equal to the Debt Service Reserve Requirement in the
Debt Service Reserve Fund and (d) the remainder in the Construction Fund. The Trustee, pursuant to request of the Company, shall draw on and use the Construction Fund as follows: 
 (a) From the Costs of Issuance Account, immediately after the delivery of the Bonds authorized hereby, the Company, or the Trustee, upon
written direction of the Authorized Company Representative, shall pay directly (i) to the Issuer, the amount, if any, to be paid pursuant to Section 6.02(b) hereof and (ii) to such other parties submitting invoices, the other Costs of
Issuance. 
 (b) The Trustee shall make payments to the Company or, at the Company’s written request, to a third party,
from the Costs of Issuance Account of the Construction Fund for any Costs of Issuance (in addition to those paid under Section 4.03(a) above) and, subject to subsection (c) below, other Project Costs from time to time upon receipt by the
Trustee of a request of the Company signed by the Authorized Company Representative. Such request shall be accompanied by a certificate signed by the Authorized Company Representative stating with respect to each payment as follows: 
 (i) the name and address of the person, firm or corporation to whom payment is to be made; 
 (ii) the amount of expenditures for which payment or reimbursement is requested; 
 (iii) the amount requested to be paid has been or will be incurred and is for Project Costs; 
 (iv) no part of the several amounts requested to be paid, as stated in such certificate, has been or is the basis for the payment of any
money in any previous or then pending request; 
  

 25 

 (v) the payment of the amount requested will not result in a breach of the covenants of
the Company contained in this Agreement; 
 (vi) the expenditure of such amount to be disbursed, when added to all
disbursements under previous requisitions, will result in at least 95% of the total of such disbursements being used to provide “solid waste disposal facilities” within the meaning of Section 142(a)(6) of the Code or facilities
functionally related and subordinate thereto; and 
 (vii) in the case of requisitions for Costs of Issuance, that the
cumulative total amount disbursed thereunder for Costs of Issuance, together with any compensation to the Underwriter as a discount, does not exceed 2% of the proceeds of the Bonds. 
 The Trustee will accept for payment a facsimile copy of a duly executed request for payment from the Company (which request shall state
that no Event of Default, or event that with the passage of time or giving of notice would become an Event of Default, exists hereunder) with all of the required exhibits and information attached, to be followed promptly by delivery to the Trustee
of the original documents. The Trustee may rely, without further investigation, on the genuineness of such request of the Company and the signatures of the Authorized Company Representative. 
 (c) The Issuer hereby gives its express written authority to the Company, absent an Event of Default, to direct the investment of the
Construction Fund by the Trustee as hereinafter provided and as permitted by the Indenture. Any money held as part of the Construction Fund shall be invested or reinvested by the Trustee in the same manner as provided for money on deposit in the
Bond Fund. Upon acceleration of the maturity of the Bonds pursuant to the Indenture, subject to Section 6.04 of the Indenture, any amounts held in or on deposit in the Construction Fund shall be transferred by the Trustee to the Bond Fund.

 (d) If, upon delivery of the Completion Certificate for the Project, there shall be any surplus funds remaining in the
Construction Fund not required to provide for the payment of the costs of acquisition, construction, improving and equipping of the Project, such funds shall, upon the written request of the Authorized Company Representative to the Trustee, be used
by the Trustee (i) to purchase for cancellation Bonds at any reasonable price as determined by the Authorized Company Representative, which price, however, shall not exceed the principal amount thereof plus accrued interest thereon or
(ii) to redeem Bonds in the largest principal amount then subject to redemption at par (together with accrued interest thereon) that does not exceed the amount of such funds. 
 Section 4.04. Termination of Construction; Completion Certificate. 
 (a) Anything in this Agreement to the contrary notwithstanding, the Company shall have the right at any time to terminate the construction
of the Facility, including the Project, if (i) the Company shall have determined that the construction or operation of the Facility is impracticable, uneconomical or undesirable due to (A) the imposition of taxes, other than
ad valorem taxes 

  

 26 

 
currently levied upon privately owned property used for the same general purpose as the Facility, or other liabilities or burdens with respect to the
Facility or the construction or operation thereof, (B) changes in technology, in environmental standards or legal requirements or in the economic availability of materials, supplies, equipment or labor or (C) destruction of or damage to
all or part of the Facility; (ii) all or substantially all of the Facility shall have been condemned or taken by eminent domain; or (iii) the construction or operation of the Facility shall have been enjoined or shall have otherwise been
prohibited by, or shall conflict with, any order, decree, rule or regulation of any court or any federal, state or local regulatory body, administrative agency or other governmental body. 
 (b) At such time as the Company determines that construction of the Project has been completed or has determined to terminate any further
construction of the Project, it shall deliver a Completion Certificate to that effect to the Issuer and the Trustee. In the case of termination of construction prior to Commercial Operation, delivery of a Completion Certificate is conditional upon
receipt by the Issuer and the Trustee of a certificate of an independent engineer that continuation of construction is not feasible under the circumstances. 
 Section 4.05. Issuer Not Responsible. The Issuer shall not be responsible or liable in any manner for any claims, losses, damages, penalties, costs, taxes or fines with respect to the acquisition,
construction, improving, equipping, furnishing, installation, operation, maintenance or ownership of the Project. 
 Section 4.06.
Insurance. Subject to the provisions of Section 4.08 hereof, the Company agrees at all times during the Lease Term to maintain, or cause to be maintained, all necessary insurance with respect to the Project in accordance with customary
insurance practices, which may include coverage under EPC’s insurance policies. All costs of maintaining insurance with respect to the Project shall be paid or caused to be paid by the Company, and neither the Issuer nor the Trustee shall have
any obligation or liability in this regard. All such insurance shall designate the Trustee as loss payee and an additional insured, and the Trustee shall receive insurance accord documents so notating and shall be provided with advance knowledge of
termination by the Company. The Company shall provide all notices, accord documents and other related documents to the Trustee. The Trustee shall have no duty to assure the maintenance, existence or sufficiency of such insurance. 
 Section 4.07. Maintenance and Repair; Remodeling. Subject to the provisions of Section 4.08 hereof, the Company agrees that at all
times during the Lease Term it will (a) maintain, or cause to be maintained, the Project in as reasonably safe condition as its operations shall permit and (b) maintain, or cause to be maintained, the Project in good repair and in good
operating condition, ordinary wear and tear excepted, making from time to time all necessary repairs thereto and renewals and replacements thereof. All costs of operating and maintaining the Project shall be paid or caused to be paid by the Company,
and the Issuer shall have no obligation or liability in this regard. It is understood and agreed that the Issuer shall have no duties or responsibilities whatsoever with respect to the operation or maintenance of the Project, or the performance of
the Project for its designed purposes. After the Completion Date, the Company may at its own expense cause the Project to be remodeled or cause substitutions, modifications and improvements to be made to the Project from time to time as it, in its
discretion, may deem to be desirable for its uses and purposes, which remodeling, substitutions, modifications and improvements shall be included under the terms of this Agreement as part of the Project. 
  

 27 

 Section 4.08. Right To Discontinue Operation of Project. Although the Company intends to
operate, or cause to be operated, the Project for its designed purposes until the date on which no Bonds are Outstanding, the Company is not required to operate, or cause to be operated, any portion of the Project after the Company shall deem in its
discretion that such continued operation is not advisable and in such event it is not prohibited from selling, leasing, subleasing or retiring all or any such portion of the Project; provided, however, that, prior to any such sale, lease, sublease
or retirement, the Company shall have provided to the Issuer and the Trustee (i) a Favorable Opinion with respect to any such sale, lease, sublease or retirement, and (ii) in the event that a portion of the Project will remain in operation
subsequent to such sale, lease, sublease or retirement, the Company shall have provided to the Issuer and the Trustee the certificate of an independent engineer to the effect that the Project remains feasible notwithstanding the disposition of a
portion thereof. Upon discontinuance of operation of the Project in accordance with this Section 4.08, the Company shall be discharged from its obligations to insure, maintain and repair the Project as set forth in Sections 4.06 and 4.07
hereof. 
 Section 4.09. Insurance and Condemnation Awards. The net proceeds of any insurance or condemnation award as a result
of the destruction or condemnation of the Project or any portion thereof shall, at the option of the Company, either (a) be paid by the Company to the Trustee for deposit into the Bond Fund under the Indenture and for the prepayment of the
purchase price of the Project hereunder to be used to redeem Bonds under Section 9.01(d)(i) or (ii) thereof, as the case may be, or (b) if determined to be feasible by an independent feasibility study obtained by the Company at its
expense, be used by the Company to rebuild, restore or relocate, as the case may be, the affected portion of the Project. 
 Section 4.10.
Taxation of Project. During the Lease Term, the Company will promptly remit or cause to be remitted when due all taxes, including specifically all sales taxes and ad valorem taxes, levied in respect of the Project or the Rent
Payments payable hereunder to the appropriate taxing body. The Company has not and will not maintain that it is entitled, by virtue of the Project being financed under the Act, to any additional exemption from ad valorem taxes on the Project or
sale and use taxes on personal property acquired in connection with the Project. Except as provided in the preceding sentence, the Company may, at its own expense and in its own name, in good faith contest any such taxes, assessments and other
charges and, in the event of such contest, may permit the taxes, assessments or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom. All taxes, assessments and other charges levied or imposed with
respect to the Project shall be the obligation of the Company and/or any of its affiliates, and the Issuer shall have no obligation or liability in this regard. 
 Section 4.11. Issuer’s Limited Liability. It is recognized that the Issuer’s only source of funds with which to carry out its commitments under this Agreement will be from the proceeds from the
sale of the Bonds or from any available income or earnings derived therefrom, or from any funds which otherwise might be made available by the Company; and it is expressly agreed that the Issuer shall have no financial liability, obligation or
responsibility with respect to this Agreement or the Project except to the extent of funds available from such sources. The Bonds shall not constitute nor give rise to a pecuniary liability of the Issuer or a charge against its general credit or
taxing powers. 
  

 28 

 Section 4.12. Governmental Regulation. The Company recognizes and agrees that this
Agreement and the issuance of the Bonds pursuant hereto will not diminish or limit the authority of the United States Environmental Protection Agency or any State agency or local government in performing any of the powers, functions and duties
vested in such entities by federal and state laws, and that all applicable laws shall be enforced without regard to ownership of the Project; and that the Company will not be relieved of any responsibility under any applicable federal or state laws
or regulations pertaining to pollution control, either now, during or after the acquisition, construction and improvement of the Project. 
 Section 4.13. Securing of Permits and Authorizations. The Company shall not do or permit others under its control to do any work in or in connection with the Project or related to any repair, rebuilding, restoration,
replacement, alteration of or addition to the Project, or any part thereof, unless the Company shall have first procured and paid for all requisite municipal and other governmental permits and authorizations. All such work shall be done in a good
and workmanlike manner and in compliance with all applicable building, zoning and other laws, ordinances, governmental regulations and requirements and in accordance with the requirements, rules and regulations of all insurers under the applicable
policies required to be carried under Section 4.06. 
 Section 4.14. Mechanics’ Liens. The Company shall not do or
suffer anything to be done whereby the Project, or any part thereof, may be encumbered by any mechanics’ or other similar lien and if, whenever and as often as any mechanics’ or other similar lien is filed against the Project, or any part
thereof, the Company shall discharge the same of record within 30 days after the date of filing. 
 Section 4.15. Contest of
Liens. The Company, notwithstanding Section 4.14 hereof, shall have the right to contest any such mechanics’ or other similar lien if, within said 30-day period stated above, the Company diligently prosecutes such contest, at all times
effectively stays or prevents any official or judicial sale of the Project or any part thereof or interest therein, under execution or otherwise, and pays or otherwise satisfies any final judgment adjudging or enforcing such contested lien claim and
thereafter promptly procures record release or satisfaction thereof. 
 Section 4.16. Cooperation of Issuer. The Issuer shall
cooperate fully with the Company at the expense of the Company in filing any proof of loss with respect to any insurance policy covering casualties to the Project and in the prosecution or defense of any prospective or pending condemnation
proceeding with respect to the Project or any part thereof or any property of the Company in connection with which the Project is used and will, to the extent it may lawfully do so, permit the Company to litigate in any proceeding resulting
therefrom in the name and on behalf of the Issuer. In no event will the Issuer voluntarily settle, or consent to the settlement of, any proceeding arising out of any insurance claim or any prospective or pending condemnation proceeding with respect
to the Project or any part thereof without the written consent of the Authorized Company Representative. 
  

 29 

 Section 4.17. No Warranty of Condition or Suitability by the Issuer. The Issuer makes no
warranty, either express or implied, as to the Project or the condition thereof, or that the Project will be suitable for the purposes or needs of the Company. 
 Section 4.18. Suspension of Biogas Deliveries. The Company shall notify the Issuer, the Trustee and the Bondholders promptly in writing in the event of any suspension of deliveries of biogas under
the Biogas Agreement, except as may occur in conjunction with reasonable and necessary repair and maintenance of the Facility. 
 ARTICLE V

 ISSUANCE OF BONDS; APPLICATION OF BOND PROCEEDS; 
 REFUNDING AND REDEMPTION OF BONDS 
 Section 5.01. Issuance of Bonds. On the Issue Date
and in order to provide funds to finance the Project Costs, the Issuer will issue the Bonds and instruct the Trustee in writing to deliver the Bonds to the Underwriter, all in accordance with the Indenture. 
 Section 5.02. Application of Bond Proceeds. 
 (a) The Issuer shall deposit the proceeds of the Bonds with the Trustee, which shall deposit such proceeds into the Construction Fund and the Debt Service Reserve Fund in such amounts as are provided in the Indenture.
The amounts so deposited shall be advanced to the Company in the manner provided herein and in the Indenture, and the Company shall repay such advances by making the Rent Payments as provided in this Agreement and the Indenture. 
 (b) Notwithstanding any provision expressly or inferentially to the contrary contained herein, the Company unconditionally agrees that it
shall make or cause to be made Rent Payments in immediately available funds to the Trustee (pursuant to an assignment by the Issuer to the Trustee, as hereinafter described) in lawful money of the United States of America. Upon the issuance and
delivery of the Bonds to the Underwriter, and the deposit of the proceeds derived therefrom into the accounts established in the Indenture, the Company shall have received, and the Issuer shall have given, full and complete consideration for the
Company’s obligation hereunder to make Rent Payments. 
 Section 5.03. Security for the Bonds. The obligations of the
Company under this Agreement, including specifically the obligation to make Rent Payments as provided in Sections 5.02(b), 6.02, 6.03 and 6.06 hereof, shall be direct general obligations of the Company. As additional security for the payments
of the Rent Payments and as further consideration for the advances made hereunder, the Biogas Agreement, together with all payments made to the Company under and pursuant to the Biogas Agreement, shall be and are hereby irrevocably assigned to the
Trustee, and such payments shall be made directly to the Trustee for deposit into the Lockbox Account of the Bond Fund for application in accordance with the Indenture and when due and payable to the Rent Payments, and otherwise as provided by the
Indenture. Prior to or simultaneously with the issuance of the Bonds, the Issuer will pledge and assign to the Trustee under the terms of the Indenture all of the Issuer’s right, title and interest in and to the Rent Payments and certain other
rights under this Agreement as provided in the Indenture. 
  

 30 

 Section 5.04. Refunding and Redemption of Bonds. After the issuance of the Bonds, the
Issuer shall not refund any of the Bonds or change or modify the Bonds in any way, except as provided for in the Indenture, without the prior written approval of the Authorized Company Representative; nor shall the Issuer redeem any Bonds prior to
their scheduled maturities except upon the written direction of the Authorized Company Representative, unless such redemption is required by the Indenture. 
 ARTICLE VI 
 LEASE OF PROJECT TO THE COMPANY; RENTAL PROVISIONS 
 Section 6.01. Quiet Enjoyment. Unless there has occurred and is continuing an Event of Default, the Issuer hereby covenants and agrees that
it will not take any action, other than pursuant to Section 4.02(c) or Article VII of this Agreement, to prevent the Company from having quiet and peaceable possession and enjoyment of the Project during the Lease Term and will, at the
request of the Company, and at the Company’s cost, to the extent that it may lawfully do so, join in any legal action in which the Company asserts its right to such possession and enjoyment. 
 The Issuer agrees that the Project shall be the sole property of the Company and that the Company shall enjoy the sole and exclusive possession of the
Project (subject to the right of the Issuer and the Trustee to enter thereon for inspection and other purposes pursuant to the provisions of this Agreement). The parties acknowledge that for federal and state income tax purposes, the Company is
intended to be the owner of the Project entitled to the related depreciation deductions, that the Company’s Rent Payments pursuant to Section 6.02 hereof consist of interest components and a principal component for payment of the interest
and principal, respectively, of the Bonds with the Company as indirect obligor under the Bonds, and that the Issuer will not take a position contrary to those as aforesaid. 
 Section 6.02. Rent Payments and Other Amounts Payable. 
 (a) The Company agrees to pay the Rent Payments to the Issuer as and for rental and for the use of the Project on or before, but not later
than, five days next preceding each date provided in or pursuant to the Indenture for the payment of principal of, premium, if any, or interest on the Bonds (the interest payment dates for the Bonds being June 1 and December 1 of each
year, commencing December 1, 2008) until the principal of, premium, if any, and interest on the Bonds shall have been fully paid or provision for the payment thereof shall have been made in accordance with the Indenture, in immediately
available funds, a sum which, together with other moneys available therefor in the Bond Fund, will enable the Trustee to pay the amount payable on such date as principal of (whether at maturity, or upon redemption, purchase, or acceleration or
otherwise), premium, if any, and interest on the Bonds as provided in the Indenture. 
  

 31 

 It is understood and agreed that all payments payable under this Section 6.02(a) by
the Company are assigned by the Issuer to the Trustee for the benefit of the holders of the Bonds. The Company assents to such assignment. The Issuer hereby directs the Company, and the Company hereby agrees to pay directly to the Trustee at the
Trustee’s Philadelphia, Pennsylvania office (or such other office as the Trustee may direct by written notice to the Company and the Issuer), all payments payable by the Company pursuant to this Section 6.02(a). 
 The Rent Payments, together with available funds held on deposit in the Debt Service Account of the Bond Fund, except funds held therein
for payment of matured installments of principal on the Bonds or interest payable thereon, shall be sufficient to pay when due all principal of, redemption premium, if any, and interest on the Bonds, and shall be due in monthly amounts on the first
Business Day of each month in an amount necessary in a pro rata sum to prepare for the semiannual payment of the Bonds. If any available funds (including for this purpose moneys transferred from the Capitalized Interest Account of the Construction
Fund in accordance with Section 5.02 of the Indenture) in excess of current requirements are held on deposit in the Debt Service Account of the Bond Fund at the time payment of any Rent Payment is due, such Rent Payment shall be reduced by the
amount of the available funds so held on deposit, to the benefit of the Company. 
 (b) The Company shall also pay the
reasonable expenses of the Issuer related to the issuance of the Bonds and any additional expenses incurred upon the written request of the Company (which expenses may be paid as Costs of Issuance from Bond proceeds on deposit in the Costs of
Issuance Account of the Construction Fund). 
 (c) The Company shall also pay each payment provided for by Sections 6.05,
6.07 and 6.09 hereof. 
 (d) In the event the Company should fail to make any of the payments required in this
Section 6.02, the item or installment so in Default shall continue as an obligation of the Company until the amount in Default shall have been fully paid, and the Company agrees to pay the same with interest thereon or with respect to payments
to the Trustee or the Issuer with interest thereon, to the extent permitted by law, from the date thereof at the rate per annum borne by the Bonds. 
 The Company may, without creating a default hereunder, contest the reasonableness of any cost described in Section 6.02(b), (c) or (d). 
 Section 6.03. [Reserved]. 
 Section 6.04. Company Approval of Issuance of Bonds.  
 (a) Simultaneously with the authorization of
this Agreement by the City Council of the Issuer, such City Council has adopted the Bond Ordinance. In consideration of the covenants and agreements set forth in this Agreement, and to enable the Issuer to issue the Bonds to carry out the intents
and purposes hereof, this Agreement is executed to assure the issuance of such Bonds and to provide for the due and punctual payment by the Company to the Issuer, or to the Trustee under the Indenture securing the Bonds, of amounts not less than
those required to pay, as and when due (whether at stated maturity, upon 

  

 32 

 
redemption, acceleration of maturity, tender, deemed tender or otherwise), and at such time as will assure payment on the due date thereof, all of the
principal of, redemption premium, if any, and interest on, the Bonds, and all other payments required in connection with such Bonds, this Agreement or the Indenture. Each such payment is hereby designated as a “Rent Payment,” and
collectively such payments are hereby designated as “Rent Payments.” The Company hereby agrees to make, or cause to be made, each Rent Payment, as and when due, for the benefit of the owners of the Bonds into the Bond Fund, as provided in
the Indenture. 
 (b) By execution and delivery of this Agreement, the Company hereby approves the Bond Ordinance, the
Indenture and the Tax Regulatory Agreement. It is hereby agreed that the foregoing approval of the Bond Ordinance, the Indenture and the Tax Regulatory Agreement constitutes the acknowledgment and agreement of the Company that the Bonds, when
issued, sold and delivered as provided in the Bond Ordinance and the Indenture, will be issued in accordance with and in compliance with this Agreement, notwithstanding any other provisions of this Agreement or any other contract or agreement to the
contrary. Any Bondholder is entitled to rely fully and unconditionally on the foregoing approval. Notwithstanding any provisions of this Agreement or any other contract or agreement to the contrary, the Company’s approval of the Bond Ordinance,
the Indenture and the Tax Regulatory Agreement shall be the Company’s agreement that all covenants and provisions in this Agreement, the Indenture and the Tax Regulatory Agreement affecting the Company shall, upon the delivery of the Bonds and
the Indenture, become unconditional, valid and binding covenants and obligations of the Company so long as the Bonds and the interest thereon are outstanding and unpaid. Particularly, the obligation of the Company to make, promptly when due, all
Rent Payments specified in this Agreement and the Indenture shall be absolute and unconditional, and said obligation may be enforced as provided in this Agreement and the Indenture. 
 Section 6.05. Redemption of Bonds. The Issuer, upon the written request of the Company (and provided that the affected Bonds are subject to
redemption or prepayment prior to maturity at the option of the Issuer or the Company and provided, further, that such request is received in sufficient time prior to the date upon which such redemption or prepayment is proposed), forthwith shall
take or cause to be taken all action that may be necessary under the applicable redemption provisions of the Indenture to effect such redemption prior to maturity, to the full extent of funds either made available for such purpose by the Company or
already on deposit under the Indenture and available for such purpose. The redemption of any outstanding Bonds prior to maturity at any time shall not relieve the Company of its absolute and unconditional obligation to pay each remaining Rent
Payment with respect to any outstanding Bonds, as specified in the Indenture. If a redemption of Bonds is required pursuant to the provisions of the Indenture, the Company agrees as provided herein to forthwith make Rent Payments sufficient to pay
the principal of, premium, if any, and interest on the Bonds. 
 Section 6.06. Rent Prepayment. The Company shall have and is
hereby granted the right to prepay or cause to be prepaid all or a portion of each Rent Payment at any time, and shall be obligated to do so in a timely manner if and to the extent the Company requests redemption or prepayment of the Bonds and the
purchase of the Project pursuant to Article IX hereof. The Company shall be 

  

 33 

 
obligated to prepay or cause to be prepaid the Rent Payments then due and owing under the circumstances as provided by Article X hereof. Any such prepayment
by the Company shall not relieve it of liability for each remaining Rent Payment with respect to the Outstanding Bonds except as provided in this Agreement and the Indenture. In the event the Company should fail to make any of the payments required
in this Section 6.06 the amount so in default shall continue as an obligation of the Company until such amount in default shall have been fully paid. 
 Section 6.07. Payments To Replenish Debt Service Reserve Fund. In the event of a deficiency in the Debt Service Reserve Fund, the Company shall, within 30 days of the drawing upon the Debt Service
Reserve Fund, pay into the Debt Service Reserve Fund an amount equal to the amount of such deficiency. 
 Section 6.08.
Issuer’s Rights Assigned to Trustee. The Company is advised and recognizes that as security for the payment of the Bonds, the Issuer will assign to the Trustee the Issuer’s rights under this Agreement, including the right to receive
payments hereunder (except the Unassigned Rights and the right to receive notices hereunder), and hereby directs the Company to make said payments directly to the Trustee. The Company herewith assents to such assignment and will make such payments
directly to the Trustee without defense or setoff by reason of any dispute between the Company and the Issuer or the Trustee. All rights against the Company arising under this Agreement or the Bond Ordinance or Indenture and assigned to the Trustee
under the Indenture may be enforced by the Trustee, or the owners of the Bonds, to the extent provided in the Indenture, and the Trustee, or the owners of the Bonds, shall be entitled to bring any suit, action or proceeding against the Company, to
the extent provided in the Bond Ordinance or Indenture, for the enforcement of this Agreement, and it shall not be necessary in any such suit, action or proceeding to make the Issuer a party thereto. 
 Section 6.09. Payments to Trustee. The Company agrees to pay (a) the initial acceptance fee of the Trustee and reasonable costs and
expenses, including reasonable attorneys’ fees and expenses, incurred by the Trustee in entering into and executing the Indenture and (b) until the principal of, premium, if any, and interest on the Bonds shall have been fully paid or
provision for the payment thereof shall have been made in accordance with the provisions of the Indenture, (i) an amount equal to the annual fee of the Trustee for the Ordinary Services of the Trustee, as trustee, rendered and its reasonable
Ordinary Expenses incurred under the Indenture, including reasonable attorneys’ fees and expenses, as and when the same become due, (ii) the fees, charges and expenses of the Trustee, as Bond Registrar and as Paying Agent, and any other
Bond Registrar or Paying Agent on the Bonds, as and when the same become due, (iii) an amount equal to the fees of the Trustee for its Extraordinary Services rendered and its reasonable Extraordinary Expenses incurred under the Indenture,
including reasonable attorneys’ fees and expenses, as and when the same become due and (iv) the cost of printing any Bonds required to be furnished by the Issuer. In the event the Company should fail to make any of the payments required in
this Section 6.09, the item or installments so in default shall continue as an obligation of the Company until the amount in default shall have been fully paid. The provisions of this Section 6.09 shall survive termination of this
Agreement. 
  

 34 

 ARTICLE VII 
 DEFAULTS AND REMEDIES 
 Section 7.01. Events of Default. The occurrence and
continuation of any one of the following shall constitute an “Event of Default” under this Agreement (an “Event of Default”): 
 (a) failure by the Company to pay, when due, Rent Payments with respect to principal of, premium, if any, or interest on any Bond or failure to make any payments required by Section 6.07 hereof with respect to
any deficiency in the Debt Service Reserve Fund; 
 (b) failure by the Company to observe and perform any covenant, condition
or agreement on its part required to be observed or performed in this Agreement, other than as referred to in (a) above, for a period of 90 days after receipt by the Company of written notice specifying such failure and requesting that it
be remedied, given to the Company by the Issuer or the Trustee, unless the Issuer and the Trustee shall agree in writing to an extension of such time prior to its expiration; provided further, however, if the failure stated in the notice cannot be
corrected within the applicable period, the Issuer and the Trustee will not unreasonably withhold their consent to an extension of such time if corrective action is instituted within the applicable period and diligently pursued until the default is
corrected; provided further, if any such failure obligates the Company to prepay Rent Payments because of mandatory redemption of Bonds pursuant to Section 9.01(c) of the Indenture, and such prepayment is in fact made by the Company and Bonds
are redeemed as provided in the Indenture, then such failure by the Company shall not constitute an Event of Default under this Agreement; 
 (c) the occurrence of an Act of Bankruptcy and, if occurring by reason of clause (b) of the definition thereof, such petition resulting therefrom shall not be stayed or denied, or a proceeding resulting therefrom
shall not be discharged, within 90 days after the filing of such petition or the commencement of such proceeding, as the case may be; 
 (d) the occurrence of an “Event of Default” under the Indenture; or 
 (e) the
occurrence of a default by the Company under the Biogas Agreement or any other biogas sale agreement or other agreement the performance of which is material to the Company’s ability timely to make Rent Payments, which is not cured within any
applicable cure period thereunder. 
 Section 7.02. Remedies on Default. Whenever any Event of Default shall have happened and
is existing, the Issuer, with the consent of the Trustee, or the Trustee may take any one or more of the following remedial steps, but only if acceleration of the principal amount of the Bonds has been declared pursuant to Section 11.02 of the
Indenture: 
 (a) by notice in writing to the Company, declare the unpaid Rent Payments to be due and payable immediately if
concurrently with or prior to such notice the unpaid principal amount of the Bonds has been declared to be due and payable under the Indenture, and upon any such declaration the amounts payable under Section 6.04 and 6.06 hereof shall become
and 

  

 35 

 
shall be immediately due and payable in the amount set forth in Section 11.02 of the Indenture; provided, however, that an Event of Default shall be
deemed waived and a declaration accelerating payment of unpaid Rent Payments payable under this Agreement shall be deemed rescinded without further action on the part of the Trustee or the Issuer upon any annulment by the Trustee of the
corresponding declaration of acceleration of the Bonds under Section 11.02 of the Indenture. 
 (b) Whatever action at
law or in equity may appear necessary or desirable to collect the payment and other amounts then due or to enforce performance and observance of any obligation, agreement or covenant of the Company under this Agreement. 
 (c) In addition to other remedies under the this Agreement, the Trustee, at the written direction of the Majority Holders, shall have
the right to request that the Company retain a consultant expert in the business and operation of facilities such as the Facility (a “Consultant”) to perform a study or report as to the deficiencies and suggested improvements
for the Facility. So long as the Company is allowing the Consultant access to the Facility and its records, and, upon completion of a report satisfactory to the Majority Holders, so long as the Company is following the
recommendations of the Consultant made in such report, then, in that event, and subject to the written direction of the Majority Holders, the Trustee shall take no other remedial action hereunder. 
 In case the Issuer, with the consent of the Trustee, or the Trustee shall have proceeded to enforce its rights under this Agreement and such proceedings
shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Issuer and/or the Trustee, then and in every such case the Issuer, the Company and the Trustee shall be restored respectively to their several
positions and rights hereunder, and all rights, remedies and powers of the Issuer, the Company and the Trustee shall continue as though no such proceeding had been taken. 
 The Company covenants that, in case an Event of Default shall occur with respect to the payment of any Rent Payment payable under Sections 6.04 and 6.06 hereof, then, upon written demand of the Trustee, the
Company will pay to the Trustee the whole amount that then shall have become due and payable under said Sections 6.04 and 6.06. 
 In
case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee shall be entitled and empowered to institute any action or proceeding at law or in equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company and collect in the manner provided by law out of the property of the Company, the moneys adjudged or decreed to be payable.
Any sums collected by the Trustee shall be applied as provided in the Indenture. The Issuer or the Trustee may pursue all remedies now or hereafter existing at law or in equity to enforce the performance and observance of any other obligation or
agreement of the Company under this Agreement, including, without limitation, exercising the remedies of mandamus or the appointment of a receiver in equity with the power to charge and collect rents, purchasing price payments and loan payments and
applying revenues from the Project in accordance with the terms hereof and of the Indenture. 
  

 36 

 If an Event of Default under Section 7.01(c) hereof shall occur and be continuing, the Trustee shall
be entitled and empowered, by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole amount owing and unpaid pursuant to this Agreement, irrespective of whether the principal of the Bonds or any amount
hereunder shall then be due and payable as therein or herein expressed or by declaration or otherwise, and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this Section 7.02, and, in case of any
judicial proceedings, to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee allowed in such judicial proceedings relative to the Company, its creditors or its property,
and to collect and receive any moneys or other property payable or deliverable on any such claims, and to distribute the same after the deduction of its fees, charges and expenses; and any receiver, assignee or trustee in bankruptcy or
reorganization is hereby authorized to make such payments to the Trustee, and to pay to the Trustee any amount due it for compensation and expenses, including reasonable counsel fees and expenses incurred by it up to the date of such distribution.

 The remedies for any “Event of Default” under the Indenture shall be as specified in Article XI of the Indenture and are in
addition to any remedies hereunder. 
 In acting or omitting to act pursuant to the provisions of this Agreement, the Trustee shall be
entitled to all of the rights, protections and immunities accorded to the Trustee under the terms of the Indenture, including, but not limited to, those set out in Article XII thereof. 
 Section 7.03. Agreement To Pay Attorneys’ Fees and Expenses. In the event the Company should default under any of the provisions of this
Agreement and the Issuer or the Trustee should employ attorneys or incur other expenses for the collection of the payments due under this Agreement or the enforcement of performance or observance of any obligation or agreement on the part of the
Company herein contained, the Company agrees that it will on demand therefor, and upon presentation of an itemized bill, pay to the Issuer or the Trustee the reasonable fees and expenses of such attorneys and such other expenses so incurred by the
Issuer or the Trustee, including such fees and expenses of in-house counsel and legal staff of the Trustee. 
 ARTICLE VIII 

SPECIAL COVENANTS 
 Section
8.01. No Defense or Setoff; Unconditional Obligation. The obligations of the Company to make the payments required by this Agreement and to perform and observe the other agreements on its part contained herein shall be absolute and
unconditional, irrespective of any defense or any rights of setoff, recoupment or counterclaim it might otherwise have against the Issuer, the Trustee or any other person, and the Company shall pay during the term of this Agreement the payments to
be made as prescribed in Article VI and all other payments required hereunder free of any deductions and without abatement, diminution or setoff, and until such time as the principal of, premium, if any, and interest on the Bonds shall have
been fully paid, or provision for the payment thereof shall have been made in accordance with the Indenture, the Company (a) will not suspend or discontinue any 

  

 37 

 
payments provided for in Article VI hereof; (b) will perform and observe all of its other agreements contained in this Agreement; and
(c) except as permitted herein, will not terminate this Agreement for any cause, including, without limiting the generality of the foregoing, failure of the Project to be acquired, constructed, improved or completed, failure of the Company to
approve, receive, accept or use the Project, destruction of or damage to the Project, commercial frustration of purpose, any change in the tax laws of the United States of America or of the State or any political subdivision of either of these,
or any failure of the Issuer or the Trustee to perform and observe any agreement, whether express or implied, or any duty, liability or obligation arising out of or connected with this Agreement or the Indenture, except to the extent permitted by
this Agreement. Nothing contained in this Section shall be construed to relieve the Issuer or the Trustee from the performance of any agreements on their respective parts contained herein, and the Company shall be entitled to institute such action
against the Issuer or the Trustee as the Company shall deem appropriate to compel performance of any such agreement, duty or obligation; provided, however, neither the Issuer nor the Trustee shall be required to carry out any such agreement, duty or
obligation unless it is reimbursed for its costs and expenses to the extent set forth in this Agreement and the Indenture. 
 Section
8.02. Merger, Consolidation or Sale of Assets. The Company may not, directly or indirectly: (i) consolidate or merge with or into another Person (whether or not the Company is the surviving entity); or (ii) sell, assign, transfer,
convey or otherwise dispose of all or substantially all of the properties or assets of the Company, in one or more related transactions, to another Person; unless: 
 (a) either: 
 (1) the Company is the surviving company; or 
 (2) the Person formed by or surviving any such consolidation or
merger (if other than the Company) or to which such sale, assignment, transfer, conveyance or other disposition has been made is a corporation, partnership or limited liability company organized or existing under the laws of the United States,
any state thereof or the District of Columbia, and is qualified to do business in the state; 
 (b) the Person formed by or
surviving any such consolidation or merger (if other than the Company) or the Person to which such sale, assignment, transfer, conveyance or other disposition has been made assumes all the obligations of the Company under this Agreement, the Biogas
Agreement, the Sublease and the security documents pursuant to a supplement to this Agreement reasonably satisfactory to the Trustee and the Issuer; 
 (c) immediately after such transaction, no Default or Event of Default exists; and 
  

 38 

 (d) the Company or the Person formed by or surviving any such consolidation or merger (if
other than the Company), or to which such sale, assignment, transfer, conveyance or other disposition has been made: 
 (1)
will have Consolidated Net Worth immediately after the transaction equal to or greater than the Consolidated Net Worth of the Company immediately preceding the transaction; and 
 (2) will, on the date of such transaction after giving pro forma effect thereto and to any related financing transactions as if the same
had occurred at the beginning of the applicable eight-quarter period, either (i) have a pro forma Fixed Charge Coverage Ratio that is at least equal to the actual Fixed Charge Coverage Ratio of the Company as of such date or (ii) be
permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the first paragraph of Section 8.12(a) hereof. 
 In addition, the Company may not, directly or indirectly, lease all or substantially all of its properties or assets, in one or more related
transactions, to any other Person. 
 The Company shall provide written notice to the Issuer and the Trustee (with instructions to the
Trustee to notify the owners of the Bonds) promptly upon the occurrence of any of the events described in clauses (i) and (ii) of the first paragraph of this Section 8.02, together with the certificate of an Authorized Representative
affirming compliance with each applicable condition set out in the first paragraph of this Section 8.02. 
 Section 8.03.
Indemnities. 
 (a) Except as otherwise provided in Section 8.03(c) below, the Company releases the Issuer, its
Councilmembers, officers, directors, employees, agents and attorneys (the “Indemnified Parties”), from, and the Indemnified Parties shall not be liable for, and the Company agrees and shall protect, indemnify, pay, defend and hold the
Indemnified Parties harmless from, any and all liability, cost, expense, damage or loss of whatever nature (including, but not limited to, attorneys’ fees, litigation and court costs, amounts paid in settlement and amounts paid to discharge
judgments) directly or indirectly resulting from, arising out of, in connection with or related to (i) the issuance, offering, sale, delivery, payment of the Bonds and the interest thereon, or redemption of the Bonds, the provisions and rate of
interest on the Bonds, the Bond Ordinance, the Indenture, the Tax Regulatory Agreement and this Agreement and the obligations imposed on the Issuer hereby and thereby, or the design, construction, installation, operation, use, occupancy, maintenance
or ownership of the Project; (ii) any written statements or representations made or given by the Company or any of its officers or employees, to the Indemnified Parties, the Trustee or any underwriters or purchasers of any of the Bonds, with
respect to the Issuer, the Company, the Project or the Bonds or the offer or issuance thereof, including, but not limited to, statements or representations of facts, financial information or corporate affairs; (iii) damage to property or any
injury to or death of any person that may be occasioned by any cause whatsoever pertaining to the Project; (iv) any loss or damage incurred by the Issuer as a result of violation by the Company of the provisions of Section 8.04 or 8.05
hereof; and (v) any action required to be taken by the Issuer under this Agreement, the Bond Ordinance, the Tax Regulatory Agreement or the Indenture. 
  

 39 

 (b) The Company hereby agrees to indemnify and hold the Trustee and its directors,
officers, agents and employees (collectively, the “Indemnitees”) harmless from and against any and all claims, liabilities, losses, damages, fines, penalties and expenses, including out-of-pocket, incidental expenses, legal fees and
expenses, and the allocated costs and expenses of in-house counsel and legal staff (“Losses”) that may be imposed on, incurred by or asserted against the Indemnitees or any of them for following any instruction, request for payment or
other direction upon which the Trustee is authorized to rely, pursuant to the terms of the Indenture, the Guaranty, the Company Agreements or any other of the financing documents. In addition to and not in limitation of the immediately preceding
sentence, the Company also agrees to indemnify and hold the Indemnitees and each of them harmless from and against any and all Losses that may be imposed on, incurred by or asserted against the Indemnitees or any of them in connection with or
arising out of the Trustee’s performance under the Indenture, the Guaranty, the Company Agreements or any other financing document. 
 (c) If any claim is asserted under (a) above or (d) below, the party seeking indemnity will give prompt notice to the Company, and the Company shall have the sole right and duty to assume, and will assume,
the defense thereof, with full power to litigate, compromise or settle the same in its sole discretion. THE PROVISIONS OF SECTIONS 8.03(a) AND (b) SHALL REMAIN AND BE IN FULL FORCE AND EFFECT EVEN IF ANY SUCH LIABILITY, COST, EXPENSE,
DAMAGE OR LOSS OR CLAIM THEREFOR BY ANY PERSON DIRECTLY OR INDIRECTLY RESULTS FROM, ARISES OUT OF OR RELATES TO, OR IS ASSERTED TO HAVE RESULTED FROM, ARISE OUT OF OR BE RELATED TO, IN WHOLE OR IN PART, ONE OR MORE NEGLIGENT ACTS OR OMISSIONS (OTHER
THAN, IN THE CASE OF AN INDEMNIFIED PARTY UNDER (a) ABOVE, AS A RESULT OF WILLFUL MISCONDUCT OR BAD FAITH OF THE PARTY SEEKING INDEMNITY OR, IN THE CASE OF THE TRUSTEE, AS A RESULT OF GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR BAD FAITH ON THE
PART OF THE TRUSTEE) OF THE PARTY SEEKING INDEMNITY, IN CONNECTION WITH THE MATTERS SET FORTH THEREIN. Notwithstanding the foregoing, in any action naming the Trustee as defendant, the Trustee shall have the right to retain separate legal counsel at
the expense of the Company, provided that in the event that the Company is not in Default under this Agreement, the Company shall have the right of approval of any such legal counsel retained by the Trustee for the Trustee’s defense, which
approval shall not be unreasonably withheld and shall be given promptly upon request by the Trustee. The Trustee and the Company shall reasonably cooperate with each other in the defense of any such action. 
 (d) (1) The Company agrees and shall protect, defend (subject to selection of counsel by the Indemnified Parties or Indemnitees, as
the case may be, as provided by Section 8.03(c) hereof), indemnify, pay and hold harmless the Indemnified Parties and Indemnitees from and against any and all Indemnified Liabilities; provided, no Indemnified Party or Indemnitee shall be
entitled to indemnification hereunder with respect to any Indemnified Liability to the extent such Indemnified Liability is found by a final and nonappealable decision of a court of competent jurisdiction to have resulted directly and primarily from
the gross negligence, willful misconduct or bad faith of such Indemnified Party or Indemnitee. 
  

 40 

 (2) All amounts due under Section 8.03(d)(1) hereof shall be payable not later than
10 days after written demand therefor. 
 (3) To the extent that the undertakings to defend, indemnify, pay and hold harmless
set forth in Section 8.03(d)(1) hereof may be unenforceable in whole or in part because they are violative of any law or public policy, the Company shall contribute the maximum portion that it is permitted to pay and satisfy under applicable
law to the payment and satisfaction of all Indemnified Liabilities incurred by the Indemnified Parties or the Indemnitees or any of them. 
 (4) The Company shall not ever assert any claim against any Indemnified Party or Indemnitee, on any theory of liability, for any lost profits or special, indirect or consequential damages or (to the fullest extent
lawful) any punitive damages arising out of, in connection with, or as a result of, this Agreement, any security document or any agreement or instrument or transaction contemplated hereby or relating in any respect to any Indemnified Liability, and
the Company hereby forever waive, release and agree not to sue upon any claim for any such lost profits or special, indirect, consequential or (to the fullest extent lawful) punitive damages, whether or not accrued and whether or not known or
suspected to exist in its favor. 
 (e) The provisions of this Section 8.03 shall survive the termination of this
Agreement and the full payment or defeasance of the Bonds in accordance with Article XVI of the Indenture and, with respect to the Trustee, the resignation or removal of the Trustee for any reason. 
 Section 8.04. Tax-exempt Status of the Bonds. It is the intention of the Company and the Issuer that the interest on the Bonds be
excludable from the gross income of the holders thereof for federal income tax purposes, except for any Bond for any period that such Bond is owned by a person who is a “substantial user” of the proceeds of the Project or a “related
person” within the meaning of Section 147(a) of the Code. To that end, the Company and the Issuer (to the extent reasonably within the control of the Issuer) covenant with each other, and with the Trustee for the benefit of the
Bondholders, to refrain from any action which would adversely affect, and to take such action to assure, the treatment of the Bonds as obligations described in Section 103(a) of the Code, the interest on which is not includable in the
“gross income” of the holder (other than the income of a “substantial user” of the Project or a “related person” within the meaning of Section 147(a) of the Code) for purposes of federal income taxation. As more
particularly set out in the Tax Regulatory Agreement and notwithstanding any other provision hereof, the Company hereby covenants as follows: 
 (a) to take such action as is necessary to ensure that at least 95% of the net proceeds of the Bonds will be used to provide “solid waste disposal facilities” within the meaning of Section 142(a)(6) of
the Code; 
  

 41 

 (b) to refrain from taking any action that would result in the Bonds being
“federally guaranteed” within the meaning of Section 149(b) of the Code; 
 (c) to refrain from using any
portion of the proceeds of the Bonds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in Section 148(b)(2) of the Code) which produces a materially
higher yield over the term of the Bonds than the yield on the Bonds, other than investment property acquired with: 
 (i)
proceeds of the Bonds invested for a period of three years or less until such proceeds are used for the purposes for which the Bonds were issued; 
 (ii) amounts invested in a bona fide debt service fund, within the meaning of Section 1.148-1(b) of the Regulations; and 
 (iii) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10% of the
proceeds of the Bonds and to the extent that at no time during any bond year will the aggregate amount so invested exceed 150% of debt service on the Bonds for such year; 
 (d) to otherwise restrict the use or investment of the proceeds of the Bonds or amounts treated as proceeds of the Bonds, as may be
necessary, to satisfy the requirements of Section 148 of the Code (relating to arbitrage) and Section 149(d) of the Code (relating to advance refundings); 
 (e) to use no more than 2% of the proceeds received from the sale of the Bonds for the payment of Costs of Issuance (including
underwriters’ discount, if any); 
 (f) to use no portion of the proceeds of the Bonds to provide any airplane, skybox or
other private luxury box, health club facility, facility primarily used for gambling or store the principal business of which is the sale of alcoholic beverages for consumption off premises; 
 (g) to comply with the limitations imposed by Section 147(c) of the Code (relating to the limitation on the use of proceeds to
acquire land) and Section 147(d) of the Code (relating to restrictions on the use of bond proceeds to acquire existing buildings, structures or other property); 
 (h) to pay to the United States of America (to the extent not paid by the Trustee pursuant to the Indenture) at least once during
each five-year period (beginning on the date of delivery of the Bonds) an amount that is at least equal to 90% of the “Excess Earnings,” within the meaning of Section 148(f) of the Code and to pay to the United States of America,
not later than 60 days after the Bonds have been paid in full, 100% of the amount then required to be paid as a result of Excess Earnings under Section 148(f) of the Code, unless the Bonds qualify for the exception to rebate set forth in
Section 148(f)(4)(B) of the Code or the Regulations thereunder; and 
  

 42 

 (i) to provide to the Trustee, at such time as required by the Trustee, all information
required by the Trustee with respect to Nonpurpose Investments (as defined in Section 148 of the Code) not held in any fund under the Indenture. 
 For purposes of the foregoing (a) and (b), the term “proceeds” includes “disposition proceeds” as defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds
(if any) and proceeds of the refunded bonds expended prior to the date of issuance of the Bonds. 
 It is the understanding of the Issuer and
the Company that the covenants contained herein are intended to assure compliance with the Code and any regulations or rulings promulgated by the United States Department of the Treasury pursuant thereto. In the event that regulations or
rulings are hereafter promulgated which modify or expand provisions of the Code, as applicable to the Bonds, the Issuer and the Company will not be required to comply with any covenant contained herein to the extent that such failure to comply, in
the opinion of Bond Counsel delivered to the Issuer, the Company and the Trustee, will not adversely affect the exclusion of interest on the Bonds from the gross income of the owners of the Bonds for federal income tax purposes under
Section 103 of the Code. In the event that regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to the Bonds, the Company agrees to comply with the additional requirements to the extent
necessary, in the opinion of Bond Counsel delivered to the Issuer, the Company and the Trustee, to preserve the exclusion of interest on the Bonds from the gross income of the owners of the Bonds for federal income tax purposes under
Section 103 of the Code. In furtherance of such intention, the Issuer hereby authorizes and directs the Mayor or Finance Director to execute any documents, certificates or reports required by the Code and to make such elections, on behalf of
the Issuer, which may be permitted by the Code as are consistent with the purpose for the issuance of the Bonds. 
 Section 8.05. Payment
to Rebate Fund. The Company hereby covenants and agrees to make the determinations and to pay any deficiency in the Rebate Fund, at the times and as described in Section 8.05 of the Indenture. In any event, if the amount of cash held
in the Rebate Fund shall be insufficient to permit the Trustee to make payment to the United States of any amount due under Section 148(f)(2) of the Code, the Company forthwith shall pay the amount of such insufficiency on such date to the
Trustee in immediately available funds. The obligations of the Company under this Section 8.05 are direct obligations of the Company, acting under the authorization of, and on behalf of, the Issuer, and the Issuer shall have no further
obligation or duty with respect to the Rebate Fund. 
 Section 8.06. Qualification in State; Existence. 
 (a) The Company agrees that so long as it or its affiliates own and operate the Project, it or any such affiliate will be qualified to do
business in the State. 
  

 43 

 (b) Subject to Section 8.02 hereof, the Company shall do or cause to be done all
things necessary to preserve and keep in full force and effect: 
 (i) its limited liability company existence, in accordance
with its organizational documents (as the same may be amended from time to time); and 
 (ii) the rights (charter and
statutory), licenses and franchises of the Company; provided, however, that the Company shall not be required to preserve any such right, license or franchise, or the corporate, partnership, if the Company shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company, and that the loss thereof is not adverse in any material respect to the Holders of the Bonds. 
 Section 8.07. Recordation. The Company agrees that it will record and re-record and file and refile this Agreement, the Sublease and any of the
financing statements and all supplements and necessary continuation statements with respect thereto, and such other instruments as may be required from time to time to be recorded or filed, in such manner and in such places as from time to time may
be required by law in order fully to preserve and protect any security interests of the Owners of the Bonds and the rights of the Trustee hereunder and under the Indenture. The Company shall promptly provide copies of such instruments to the
Trustee. 
 Section 8.08. Granting of Easements. If no Event of Default shall have happened and be continuing, the Company may at any
time or times, subject to its leasehold interest, cause to be granted easements, licenses, rights of way (including the dedication of public highways) and other rights or privileges in the nature of easements with respect to any property or rights
included in the Indenture, free from any security interest afforded by or under the Indenture, or the Company may release existing easements, licenses, rights of way and other rights and privileges with or without consideration, and the Issuer
agrees that it shall execute and deliver, and will cause and direct the Trustee in writing to execute and deliver, any instrument necessary or appropriate to confirm and grant or release any such easement, license, right of way or other grant or
privilege upon receipt of: (a) a copy of the instrument of grant or release, (b) a written application signed by the Authorized Company Representative requesting such instrument and certifying (i) that such grant or release is not
detrimental to the proper conduct of the business of the Company and (ii) that such grant or release will not impair the effective use or interfere with the operation of the Project and (c) an opinion of the Company’s counsel that
such grant or release will not impair the security for the Bonds afforded by or under the Indenture. 
 Section 8.09. Release of Certain
Land. Notwithstanding any other provisions of this Agreement, the parties hereto reserve the right, at any time and from time to time, to amend this Agreement and the Indenture for the purpose of effecting the release of and removal from this
Agreement, the leasehold estate created hereby and the lien of the Indenture of (a) any unimproved part of the Project Site (on which no Project building or other building or equipment owned by the Company and essential to the continued
operation of the Project is situated) or (b) any part of the Project Site with respect to which the owner of the Project Site proposes to convey fee title to a railroad, public utility or public body in order that railroad service, utility
services or roads may be provided for the Facility, provided, that if at the time any such amendment is made any of the Bonds are outstanding and unpaid, such amendment shall not be effective until and unless there are deposited with the Trustee the
following: 
 (i) Copies of the said amendments to this Agreement and the Indenture as executed; 
  

 44 

 (ii) A resolution or ordinance of the Issuer (A) stating that the Issuer is not in
default under any of the provisions of the Indenture and that the Issuer and the Company are not, to the knowledge of the Issuer, in default under any of the provisions of this Agreement, (B) giving an adequate legal description for that
portion of the Project Site to be released, (C) stating the purpose for which the release is desired, (D) requesting such release and (E) approving such amendments to this Agreement; and 
 (iii) Evidence of the authority of the officers of the Company who execute such amendments to this Agreement. 
 Section 8.10. Suspension of Covenants When the Bonds Rated Investment Grade. If on any date following the Issue Date: 
 (a) the rating assigned to the Bonds by S&P, Moody’s or Fitch is an Investment Grade Rating after giving effect to the suspension
of covenants contemplated by this Section 8.10 upon the achievement of such Investment Grade Rating, and 
 (b) no
Default or Event of Default shall have occurred and be continuing, then, beginning on that day and subject to the provisions of the following paragraph, the covenants specifically listed in Sections 8.02(d), 8.12, 8.17 and 8.22 hereof will be
suspended with respect to the Bonds: 
 Notwithstanding the foregoing, if the ratings assigned by both such rating agencies with respect to
the Bonds should subsequently decline to below an Investment Grade Rating, the provisions of Sections 8.02(d), 8.12, 8.17 and 8.22 hereof will be reinstituted as of and from the date of such rating decline. 
 Section 8.11. Request for Ratings. Upon the written request of the holders of a majority of the Bonds, the Company will prepare at its expense an
application to one or more (in the Company’s sole discretion) of Moody’s, S&P and Fitch to seek an Investment Grade Rating and will use commercially reasonable efforts to obtain such rating; provided, however, that the Company shall
not be required to make such application more than once every year. 
 Section 8.12. Incurrence of Indebtedness and Issuance of Stock.
The Company will not directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (including Acquired
Debt), and the Company will not issue any Disqualified Stock to any Person other than the Company; provided, however, that the Company may incur Indebtedness (including Acquired Debt) or issue Disqualified Stock, if the Fixed Charge Coverage Ratio
for the Company’s most recently ended eight full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock is issued would
have been at least 1.5 to 1, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred or the Disqualified Stock had been issued, as the case may be, at the
beginning of such eight-quarter period. 
  

 45 

 The provisions of this Section 8.12(a) will not prohibit the incurrence of any of the following
items of Indebtedness (collectively, “Permitted Debt”): 
 (a) the incurrence by the Company of Indebtedness
evidenced by or in support of the Bonds, in an aggregate principal amount at any one time outstanding under this clause (a), including all Permitted Refinancing Indebtedness incurred to refund, refinance or replace any Indebtedness incurred
pursuant to this clause (a), without duplication, not to exceed $7,000,000 less the aggregate amount of all repayments, optional or mandatory, of the principal of any Indebtedness incurred pursuant to this clause (a) that have been made by
the Company since the Issue Date; 
 (b) the incurrence by the Company of Indebtedness in respect of workers’
compensation claims, self-insurance obligations, bankers’ acceptances, performance and surety bonds provided by the Company in the ordinary course of business; 
 (c) the incurrence by the Company of Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or
similar instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is covered within five Business Days; 
 (d) the incurrence by the Company of Indebtedness to EPC pursuant to the terms of the Support Agreement (the “EPC Debt”); and 
 (e) working capital debt not exceeding an amount equal to 5% of the original principal amount of the Bonds. 
 The Company will not incur any Indebtedness (including Permitted Debt) that is contractually subordinated in right of payment to any other Indebtedness
of the Company unless such Indebtedness is also contractually subordinated in right of payments under this Agreement on substantially identical terms (it being acknowledged that the EPC Debt is so subordinated); provided, however, that no
Indebtedness of the Company will be deemed to be contractually subordinated in right of payment to any other Indebtedness of the Company solely by virtue of being unsecured or by virtue of being secured on a junior basis. 
 The accrual of interest, the accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, and the payment of dividends on Disqualified Stock in the form of additional shares of the same class of Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an issuance of Disqualified Stock
for purposes of this covenant. Notwithstanding any other provision of this covenant, the maximum amount of Indebtedness that the Company may incur pursuant to this covenant shall not be deemed to be exceeded solely as a result of fluctuations in
exchange rates or currency values. 
  

 46 

 Section 8.13. Liens. The Company will not, directly or indirectly, create, incur, assume or
otherwise cause or suffer to exist or become effective any Lien of any kind on any asset now owned or hereafter acquired, except Permitted Liens. 
 Section 8.14. Limitation on Sale and Leaseback Transactions. The Company will not enter into any sale and leaseback transaction; provided that the Company may enter into a sale and leaseback transaction if: 
 (a) The Company could have incurred Indebtedness in an amount equal to the Attributable Debt relating to such sale and leaseback
transaction under Section 8.12 hereof; and 
 (b) the gross cash proceeds of that sale and leaseback transaction are at
least equal to the Fair Market Value of the property that is the subject of that sale and leaseback transaction. 
 Section 8.15.
Application of Proceeds of Asset Sales. The Company shall, within 360 days of any Asset Sale, either (a) reinvest not less than 95% of the proceeds of such Asset Sale in assets to be used in a Permitted Business or (b) apply
100% of the proceeds to the redemption or purchase at a price not in excess of 100% of principal amount of the Bonds plus accrued interest to the date of redemption or purchase. If proceeds are to be reinvested and the sale was of assets financed
with the proceeds of tax-exempt bonds, the use of proceeds is conditioned on the prior receipt of the Trustee of an opinion of bond counsel to the effect that such application will not adversely affect the exclusion from gross income for federal
income tax purposes of interest on such bonds. If proceeds are to be reinvested and if the Asset Sale was of all or substantially all of the Facility, the Company shall provide the Trustee with a feasibility study by a nationally recognized
feasibility consultant demonstrating that as proposed to be built and operated, the pro forma Fixed Charge Coverage Ratio will not be less than 2.0 to 1 for the three years immediately following Commercial Operation of the assets acquired with the
proceeds of the Asset Sale. 
 Section 8.16. Successor Person Substituted. Upon any consolidation or merger, or any sale,
assignment, transfer, lease, conveyance or other disposition of all or substantially all of the assets of the Company taken as a whole in a transaction that is subject to, and that complies with the provisions of, Section 8.16 hereof, the
successor Person formed by such consolidation or into or with which the Company is merged or to which such sale, assignment, transfer, lease, conveyance or other disposition is made shall succeed to, and be substituted for (so that from and after
the date of such consolidation, merger, sale, lease, conveyance or other disposition, the provisions of this Agreement referring to the “Company” shall refer instead to the successor Person and not to the Company), and may exercise every
right and power of the Company under this Agreement with the same effect as if such successor Person had been named as the Company herein. 
 Section 8.17. Transactions With Affiliates. The Company will not make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into
or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate of the Company (each, an “Affiliate Transaction”), unless: 
 (a) the Affiliate Transaction is on terms that are no less favorable (as reasonably determined by the Company) to the Company than those
that would have been obtained in a comparable transaction by the Company with an unrelated Person; and 
  

 47 

 (b) The Company delivers to the Trustee: 
 (i) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of
5% of Tangible Assets of any of the Parties to the Affiliate Transaction as of the end of the most recent fiscal quarter (the “Asset Percentage”), a resolution of the Board of Directors of the Company set forth in an Officers’
Certificate certifying that such Affiliate Transaction complies with this Section 8.17(a) and that such Affiliate Transaction has been approved by a majority of the disinterested members of the Board of Directors; and 
 (ii) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of
the Asset Percentage, an opinion as to the fairness to the Company of such Affiliate Transaction from a financial point of view issued by an accounting, appraisal or investment banking firm of national standing. 
 The following items will not be deemed to be Affiliate Transactions and, therefore, will not be subject to the provisions of Section 8.17(a) hereof:

 (a) any employment agreement or director’s engagement agreement, employee benefit plan, officer and director
indemnification agreement or any similar arrangement entered into by the Company in the ordinary course of business or approved by the relevant Board of Directors; 
 (b) transactions with a Person that is an Affiliate of the Company solely because the Company owns an Equity Interest in, or controls,
such Person; 
 (c) payment of reasonable directors’ fees to Persons who are not otherwise Affiliates of the Company;

 (d) any issuance of Equity Interests of the Company to Affiliates of the Company; 
 (e) any agreement, instrument or arrangement as in effect as of the date of this Agreement (including, without limitation, the Support
Agreement, the Tax Sharing Agreement and the Management Services Agreement) or any amendment hereto or any transaction contemplated hereby (including pursuant to any amendment hereto) in any replacement agreement hereto so long as any such amendment
or replacement agreement is not more disadvantageous to the holders of the Bonds in any material respect than the original agreement as in effect on the Issue Date hereof as determined by the Company; and 
  

 48 

 (f) any pro rata distribution (including a rights offering) to all holders of a class of
Equity Interests or Indebtedness of the Company, including Persons who are Affiliates of the Company; and 
 (g) any
transaction involving sales of gas, electric capacity, energy, ancillary services, transmission services and products, steam, emissions credits, fuel, fuel transportation and fuel storage in the ordinary course of business on terms that are no less
favorable (as reasonably determined by the Company) to the Company than those that would have been obtained in a comparable transaction by the Company with an unrelated Person. 
 Section 8.18. Business Activities. The Company will not engage in any business other than Permitted Businesses, except to such extent as would not
be material to the Company. 
 Section 8.19. Continuing Disclosure Undertaking. So long as any Bonds are outstanding, the Company will
comply with its Continuing Disclosure Agreement dated as of the Issue Date, entered into by the Company for the benefit of the Bondholders in accordance with Securities and Exchange Commission Rule 15c2-12 under the Securities Exchange Act of
1934, as amended. 
 Section 8.20. Compliance Certificate. 
 (a) The Company shall deliver to the Trustee, within 120 days after the end of each
fiscal year, an Officer’s Certificate stating that a review of the activities of the Company during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept,
observed, performed and fulfilled its obligations under this Agreement, and further stating, as to each such Officer signing such certificate, that to the best of his or her knowledge the Company has kept, observed, performed and fulfilled each and
every covenant contained in this Agreement in all material respects and is not in default in the performance or observance of any of the terms, provisions and conditions of this Agreement (or, if a Default or Event of Default has occurred,
describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto) and that to the best of his or her knowledge no event has occurred and remains in
existence by reason of which payments on account of the principal of or interest, if any, on the Bonds is prohibited or if such event has occurred, a description of the event and what action the Company is taking or proposes to take with respect
thereto. The Company’s fiscal year ends December 31st. 
 (b) So long as not contrary to the then current recommendations of the American Institute of Certified Public Accountants, the year-end
financial statements delivered pursuant to Section 8.19 hereof shall be accompanied by a written statement of the Company’s independent public accountants (who shall be Vitale, Caturano & Company, Ltd. or another firm of
established national reputation) that in making the examination necessary for certification of such financial statements, nothing has come to their attention that would lead them to believe that the Company has violated any provisions of this
Article VIII in so far as such provisions relate to financial and accounting matters or, if any such violation has occurred, specifying the nature and period of existence thereof, it being understood that such accountants shall not be liable
directly or indirectly to any Person for any failure to obtain knowledge of any such violation. 
  

 49 

 (c) So long as any of the Bonds are outstanding, the Company shall deliver to the
Trustee, forthwith upon any Officer becoming aware of any Default or Event of Default, an Officer’s Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

 Section 8.21. Payments for Consent. The Company shall not, directly or indirectly, pay or cause to be paid any monetary
consideration to or for the benefit of any Bondholder for or as an inducement to any consent under or waiver or amendment of any of the terms or provisions of this Agreement unless such consideration is offered to be paid and is paid to all
Bondholders that consent, waive or agree to amend in the time frame set forth in the solicitation documents relating to such consent, waiver or agreement. 
 Section 8.22. Payments Into and Withdrawals from Maintenance Reserve Fund. 
 (a) The
Company shall contribute annually, within 120 days of the end of its fiscal year, an amount equal to 50% of its Consolidated Cash Flow up to $350,000, for deposit into the Maintenance Reserve Fund maintained with the Trustee. Such amounts shall
be available to the Company at any time to pay costs of any capital expenditures for the Facility upon requisition by the Company to the Trustee. In the event that the balance in the Maintenance Reserve Fund has reached $350,000 and subsequently
falls below $350,000, the Company shall make semi-annual deposits of Consolidated Cash Flow as described above. Such deposits shall continue until the balance in the Maintenance Reserve Fund has reached $350,000. 
 (b) The Company may withdraw funds at any time from the Maintenance Reserve Fund to pay costs of capital expenditures (which may include
replacement equipment) for the Facility upon delivery to the Trustee of a certificate signed by the Authorized Company Representative specifying such capital expenditures. 
 ARTICLE IX 
 OPTIONS; PURCHASE OF PROJECT 
 Section 9.01. Options To Terminate. The Company shall have, and is hereby granted, the option to terminate the Lease Term at any time prior to
full payment of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Indenture) (i) by paying to the Trustee an amount which, when added to the amounts on deposit in the Debt Service Account of
the Bond Fund and the amounts, if any, on deposit in the Debt Service Reserve Fund and available for such purpose, will be sufficient to pay, retire and redeem all the Outstanding Bonds in accordance with the provisions of the Indenture (including,
without limiting the generality of the foregoing, principal of and interest to maturity or applicable redemption date, as the case may be, premium, if any, and expenses of redemption and the Issuer’s, the Trustee’s and the Paying
Agents’ fees and expenses), and, in case of redemption, making arrangements satisfactory to the Trustee for the giving of the required notice of redemption and (ii) by giving the Issuer notice in writing of such termination, and such
termination shall forthwith become effective. 
  

 50 

 Section 9.02. Option To Purchase Project Upon Occurrence of Certain Events. The Company
shall have, and is hereby granted, the option or right to terminate the Lease Term and purchase the Project prior to the full payment of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Indenture)
in whole as provided by Section 9.01(d) of the Indenture. 
 To exercise such option, the Company shall, within 120 days following
the event authorizing the exercise of such option, give written notice to the Issuer, and to the Trustee if any of the Bonds shall then be unpaid, certifying as to the occurrence of any of the foregoing events and the Company’s exercise of its
option under this Section, and shall specify therein the date of closing such purchase, which date shall be not less than 50 days or more than 90 days from the date such notice is mailed, and in case of a redemption of the Bonds in
accordance with the provisions of the Indenture, shall make arrangements satisfactory to the Trustee for the giving of the required notice of redemption. The purchase price payable by the Company in the event of its exercise of the option granted in
this Section shall be the sum of the following: 
 (a) An amount of money which, when added to the amounts then on deposit and
available in the Debt Service Account of the Bond Fund will be sufficient to retire and redeem all the Outstanding Bonds pursuant to the terms of the Indenture, including, without limitation, principal, premium, if any, all interest to accrue to
said redemption date and expenses, plus 
 (b) An amount of money equal to the Trustee’s and the Paying Agents’ fees
and expenses under the Indenture accrued and to accrue until such final payment and redemption of the Bonds, plus 
 (c) An
amount of money equal to the Issuer’s fees and expenses, if any, under this Agreement accrued and to accrue until such final payment and redemption of the Bonds. 
 In the event of the exercise of the option granted in this Section, any net proceeds shall be paid to the Company simultaneously with the conveyance prescribed by Section 9.03 hereof. 
 Section 9.03. Conveyance on Exercise of Option To Purchase Project. At the closing of any purchase of the Project pursuant to any option to
purchase granted in this Agreement, the Issuer shall upon receipt of the purchase price prepare and deliver to the Company the following: 
 (a) If necessary, a release from the Trustee of the lien of the Indenture. 
 (b) All
necessary documents, including, but not limited to, a termination of the Sublease and a warranty deed, conveying to the Company good and marketable title to the Project as it then exists subject to the following: (i) those liens and
encumbrances (if any) to which title to the Project was subject when conveyed to the Issuer; (ii) those liens and encumbrances created by the Company or to the creation or suffering of which the Company consented; (iii) those liens and
encumbrances resulting from 

  

 51 

 
the failure of the Company to perform or observe any of the agreements on its part contained in this Agreement; (iv) Permitted Encumbrances other than
the Indenture and this Agreement; and (v) if the option is exercised pursuant to the provisions of Section 9.02(b) hereof, the rights and title of the condemning authority. 
 Section 9.04. Relative Position of Options and Indenture. The options respectively granted to the Company in this Article shall be and
remain prior and superior to the Indenture and may be exercised whether or not the Company is in Default hereunder, provided that no such Default will result in nonfulfillment of any condition to the right of the Company to obtain a conveyance of
the Project by making the payments required hereunder. 
 ARTICLE X 
 OBLIGATION TO PURCHASE PROJECT IN 
 EVENT OF A DETERMINATION OF TAXABILITY 

 The Company shall be obligated to purchase the Project and, accordingly, prepay the Bonds within 180 days after a Determination of
Taxability (as defined below) shall have occurred at the purchase price and otherwise as provided by Section 9.01(c)(i) of the Indenture. 
 A “Determination of Taxability” shall have been deemed to occur if, as a result of an Event of Taxability (as defined below), a final decree or judgment of any federal court or a final action of the Internal Revenue Service
determines that interest paid or payable on any Bond is or was includable in the gross income of an owner or beneficial owner of the Bonds for federal income tax purposes under the Code (other than an owner or beneficial owner who is a substantial
user or related person within the meaning of Section 147(a) of the Code). However, no such decree or action will be considered final for this purpose unless the Company has been given written notice and, if it is so desired and is legally
allowed, has been afforded the opportunity to contest the same, either directly or in the name of any holder of a Bond, and until conclusion of any appellate review, if sought. If the Trustee receives written notice from any Bondholder stating that
(a) the Bondholder has been notified in writing by the Internal Revenue Service that it proposes to include the interest on any Bond in the gross income of such Bondholder for the reasons described herein or any other proceeding has been
instituted against such Bondholder which may lead to a final decree or action as described herein, and (b) such Bondholder will afford the Company the opportunity to contest the same, either directly or in the name of the Bondholder, and until
a conclusion of any appellate review, if sought, and the Trustee is satisfied that such information is accurate, then the Trustee shall promptly give notice thereof to the Company, the Issuer and the owner of each Bond then Outstanding. The Trustee
shall thereafter coordinate any similar requests or notices it may have received from other Bondholders and shall keep them informed of the progress of any administrative proceedings or litigation. If a final decree or action as described above
thereafter occurs, the Trustee shall make the required demand for payment of purchase price and prepayment of the Bonds and give notice of the redemption of the Bonds at the earliest practical date, but not later than the date specified in this
Article X, and in the manner provided by Section 9.04 of the Indenture. 
  

 52 

 An “Event of Taxability” shall be deemed to mean the failure of the Company to observe any
covenant, agreement or representation herein or in the Tax Regulatory Agreement, which failure results in a Determination of Taxability. 
 The term “Taxable Date” shall mean the date as of which occurred an Event of Taxability which resulted in a Determination of Taxability. 
 The purchase price shall be applied, together with other available moneys in the Bond Fund, to the redemption of the Bonds in accordance with Section 9.01(c) thereof on the earliest possible date after notice as
provided in the Indenture, whether or not such date is an interest payment date, to the Trustee’s and the Paying Agents’ fees and expenses under the Indenture accrued to such prepayment and redemption of the Bonds and to all sums due to
the Issuer under this Agreement. 
 Whenever the Company shall have been given any notice of prepayment of the Bonds pursuant to this
Article X which includes a notice for redemption of the Bonds pursuant to Section 9.04 of the Indenture, all amounts payable under the first paragraph of this Article X shall become due and payable on the date fixed for the redemption
of such Bonds. 
 The parties recognize that the Bonds are being issued as obligations on which the interest is excluded from gross income
for federal income tax purposes under Section 103 of the Code and that circumstances (not now contemplated or anticipated) may hereafter result in a Determination of Taxability as provided above. It is the intention of the parties hereto that
the Company shall, under the circumstances set forth in the preceding sentence, provide each person who presents proof satisfactory to the Trustee that he is or was an owner for federal income tax purposes of a Bond on or after the Taxable Date with
the relief prescribed in Section 9.04 of the Indenture, even though it might be thereafter determined by court order, ruling or otherwise that interest on the Bonds was, in fact, not subject to federal income taxes. 
 ARTICLE XI 
 GENERAL PROVISIONS 

 Section 11.01. General Provisions. 
 (a) The terms of this Agreement may be enforced as to one or more breaches either separately or cumulatively. 
 (b) No remedy conferred upon or reserved to the Issuer, the Company or the Trustee in this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be
cumulative and shall be in addition to every other remedy now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default, omission or failure of performance hereunder shall
impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In the event any provision contained in this Agreement should be
breached by the Issuer or the Company and thereafter duly waived, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any 

  

 53 

 
other breach of this Agreement. No waiver by either party of any breach by the other party of any of the provisions of this Agreement shall be construed as a
waiver of any subsequent breach, whether of the same or of a different provision of this Agreement. In view of the assignment of the Issuer’s rights in and under this Agreement to the Trustee under the Indenture, the Issuer shall have no power
to waive any default hereunder by the Company without the consent of the Trustee. Any waiver of any “Event of Default” under the Indenture and a rescission and annulment of its consequences shall constitute a waiver of the corresponding
Event of Default hereunder and a rescission and annulment of the consequences thereof. 
 (c) Headings of the Sections of this
Agreement have been inserted for convenience of reference only and in no way shall they affect the interpretation of any of the provisions of this Agreement. 
 (d) This Agreement is made for the exclusive benefit of the Issuer, the Trustee, the owners of the Bonds and the Company, and their
respective successors and assigns herein permitted, and not for any third party or parties; and nothing in this Agreement, expressed or implied, is intended to confer upon any party or parties other than the Issuer, the Trustee and the Company, and
their respective successors and assigns herein permitted, any rights or remedies under or by reason of this Agreement. In particular, but not by way of limitation, the Trustee shall be a third-party beneficiary for purposes of enforcing its rights
and the Company’s obligations under Sections 6.08 and 8.03(b) and (c) of this Agreement as fully as if the Trustee had been a party in privity of contract with the Company hereunder. 
 Section 11.02. Financial Statements. The Company shall furnish to the Trustee as soon as available and in any event within 120 days after the
end of its fiscal year (currently December 31) a balance sheet of the Company and its consolidated subsidiaries as of the end of such fiscal year and the related statements of income, cash flows and change in stockholder’s equity for such
fiscal year, all prepared in accordance with GAAP and reported on by an Accountant whose report shall state that such financial statements present fairly the Company’s financial position as of the end of such fiscal year and the results of
operations and cash flows for such fiscal year. Notwithstanding the foregoing, if and when and so long as the Company shall file regular and periodic reports with the SEC pursuant to Sections 13 and 15 of the Securities Exchange Act of 1934,
the delivery by the Company to the Trustee of copies of its reports on Form 10-K promptly following filing thereof with the SEC shall constitute full compliance with this Section 11.02. The Trustee is authorized to provide to any
Bondholder, upon written request and payment of all costs by such Bondholder, copies of any of such financial statements and reports but the Trustee shall have no other responsibility with respect thereto. 
 Section 11.03. Amendment of Agreement. No amendment, change, addition to or waiver of any of the provisions of this Agreement shall be binding
upon the parties hereto unless in writing signed by the Authorized Company Representative and the Authorized Issuer Representative, and acknowledged in writing by the Trustee, if any. Notwithstanding any of the foregoing, it is covenanted and
agreed, for the benefit of the holders of the Bonds and the Trustee that the provisions of this Agreement shall not be amended, changed, added to or waived in any way which would relieve, reduce or abrogate the obligations of the Company to make or
pay, or cause to be made or paid, when due, all Rent Payments with respect to any then outstanding Bonds which have been issued 

  

 54 

 
and delivered pursuant to this Agreement, in the manner and under the terms and conditions provided herein and in the Ordinance or Indenture, or which would
change or affect Article II or Section 5.02(b), 6.02, 6.04, 6.05, 6.06, 6.07, 6.08, 7.01, 8.01, 8.02, 8.04, 8.05, 11.03 or 11.04 hereof unless, in the judgment of the Trustee, which may be made in reliance upon an opinion of Counsel, such
change or amendment would not materially adversely affect the interests of the Bondholders. 
 Section 11.04. Assignment and
Subleasing. The Company may assign its interest in this Agreement, and sublease the Project, in whole or in part; provided, however, no assignment or sublease (other than pursuant to Section 8.02 hereof) shall relieve the Company from
primary liability for any of its obligations hereunder, and without limiting the generality of the foregoing, in the event of any such assignment or sublease, the Company shall continue to remain primarily liable for its payments specified herein
and for performance and observance of the other covenants and agreements on its part herein provided; and further provided that no assignment or sublease shall be effective unless there is delivered a Favorable Opinion with respect to such
assignment or sublease. The Company shall, on or prior to the effective date of any such assignment or sublease, furnish or cause to be furnished to the Issuer and the Trustee notice of such assignment or sublease, together with the referenced
Favorable Opinion, and a true and complete copy of each assignment or sublease, as the case may be. 
 Section 11.05. Lease Term. The
term of this Agreement shall be from the date hereof to and including June 1, 2023, or until all payments and indemnities required to be made by the Company pursuant hereto shall have been made, provided that this Agreement may be terminated,
subject to the provisions of Section 8.03(e) hereof, prior to such date if the Company shall exercise its option or be obligated to purchase the Project pursuant to this Agreement. 
 Section 11.06. Obligation To Purchase Project on Expiration of Lease Term. The Company hereby agrees to purchase, and the Issuer hereby agrees to
sell, the Project for $100, and any and all sums then due to the Issuer under this Agreement, at the expiration or sooner termination of the Lease Term following full payment of the Bonds, or provision for payment thereof having been made, in
accordance with the provisions of the Indenture. At the closing of the foregoing purchase, the Issuer shall deliver to the Company the documents referred to in Section 9.03 hereof. The right to purchase granted in this Section shall be and
remain prior and superior to the Indenture and may be exercised whether or not the Company is in default hereunder, provided that no such default will result in nonfulfillment of any condition to this right. 
 Section 11.07. Notices. Any notice, request or other communication under this Agreement shall be given in writing and shall be deemed to have been
given by either party to the other party at the addresses shown below upon any of the following dates: 
 (a) the date of
notice by telefax, telecopy or similar telecommunications, which is confirmed promptly in writing; 
 (b) three Business Days
after the date of the mailing thereof, as shown by the post office receipt if mailed to the other party hereto by registered or certified mail; 
  

 55 

 (c) the date of actual receipt thereof by such other party if delivered by a recognized
overnight delivery service or if otherwise not given pursuant to (a) or (b) above. 
 The address for notice for each of the
parties shall be as follows: 
  

			
	 If to the Issuer:
	  	 The City of Grand Island, Nebraska
 100 East First Street
 Grand Island, NE 68801
 Attention: Finance Director
 Telephone: (308) 385-5444, Ext 169
 Email: finance@grand-island.com

		
	 If to Company:
	  	 Microgy Grand Island, LLC
 c/o Environmental Power Corporation
 Suite 610
 120 White Plains Road
 Tarrytown, NY 10591
 Attention: Chief Financial Officer
 Facsimile: (914) 631-1436

		
	 With a copy to:
	  	 General Counsel
 Facsimile: (914) 631-1436

		
	 If to the Trustee:
	  	 Wells Fargo Bank, National Association
 4 Penn Center, Suite 810
 1600 JFK Boulevard
 Philadelphia, PA 19103
 Attention: Corporate Trust Services Group
 Facsimile: (215) 861-9440

 or the latest address specified by such other party in writing. 
 Section 11.08. Severability. If any clause, provision or Section of this Agreement should be held illegal or invalid by any court, the invalidity
of such clause, provision or Section shall not affect any of the remaining clauses, provisions or Sections hereof, and this Agreement shall be construed and enforced as if such illegal or invalid clause, provision or Section had not been contained
herein. In case any agreement or obligation contained in this Agreement should be held to be in violation of law, then such agreement or obligation shall be deemed to be the agreement or obligation of the Company or the Issuer, as the case may be,
to the full extent permitted by law. 
 Section 11.09. Execution of Counterparts. This Agreement may be simultaneously executed in
several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 
 Section
11.10. Amounts Remaining in Bond Fund or Construction Fund. It is agreed by the parties hereto that any amounts remaining in the Bond Fund or Construction Fund upon expiration or earlier termination of the Lease Term, as provided in this
Agreement, after payment in full of the Bonds (or provision for payment thereof having been made in accordance with the provisions 

  

 56 

 
of the Indenture) and the fees and expenses of the Trustee, the Issuer and any Paying Agents and all other amounts required to be paid in accordance with the
Indenture, shall belong to and be paid to the Company, in accordance with its written direction, by the Trustee as the return of an overpayment of the amounts payable hereunder. 
 Section 11.11. No Recourse. No recourse shall be had for the rents due hereunder, or for any claim based hereon against any officer, director,
stockholder or employee, past, present or future, of the Company as such, either directly or through the Company, under any constitutional provision, statute or rule of law, or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise. 
 Section 11.12. Net Lease. This Agreement shall be deemed and construed to be a “net lease,” and
the Company shall pay absolutely net during the Lease Term the rent and all other payments required hereunder, free of any deductions, and without abatement, deduction or setoff, other than those herein expressly provided. 
 Section 11.13. Delegation of Duties by the Issuer. It is agreed that under the terms of this Agreement and also under the terms of the Indenture,
the Issuer has delegated certain of its duties hereunder to the Company and to the Trustee. The fact of such delegation shall be deemed sufficient compliance by the Issuer to satisfy the duties so delegated and the Issuer shall not be liable in any
way by reason of acts done or omitted by the Company, the Authorized Company Representative or the Trustee. The Issuer shall have the right at all times to act in reliance upon the authorization, representation or certification of the Authorized
Company Representative or the Trustee. 
 Section 11.14. Governing Law. This Agreement shall be governed exclusively by and construed
in accordance with the applicable laws of the State. 
 Section 11.15. No Personal Liability. No covenant or agreement contained in
this Agreement shall be deemed to be the covenant or agreement of any official, officer, agent or employee of the Issuer or the Company in his or her individual capacity, and no such person shall be subject to any personal liability or
accountability by reason of the issuance thereof. 
 [Remainder of page intentionally left blank] 
  

 57 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed in multiple counterparts,
each of which shall be considered an original for all purposes, as of the day and year first set out above. 
  

									
	(SEAL)	 		 	THE CITY OF GRAND ISLAND, NEBRASKA, as Lessor
					
		 		 		 	By	 	/s/ Margaret Hornady
		 		 		 		 	Mayor

  

	
	ATTEST:
	
	/s/ RaNae Edwards
	City Clerk
	
	Approved as to form:
	
	/s/ Dale Shotkoski
	City Attorney

  

									
	(SEAL)	 		 	MICROGY GRAND ISLAND, LLC, as Lessee
					
		 		 		 	By	 	/s/ Michael E Thomas
		 		 		 		 	Its Manager

  

	
	ATTEST:
	
	/s/ Dennis Haines
	Title: Secretary
	
	(SEAL)

  

 58 

			
	 STATE OF NEBRASKA
	  	)
		  	) ss.
	 COUNTY OF HALL
	  	)

 The undersigned, a Notary Public, does hereby certify that MARGARET HORNADY and
RANAE EDWARDS, whose names as Mayor of The City of Grand Island, Nebraska and City Clerk, respectively, of The City of Grand Island, Nebraska, are signed to the foregoing Agreement, and who are each known to me and known to be such
officers of said City, acknowledged before me on this day under oath that, being informed of the contents of this Agreement, they, in their capacities as officials of said City and with full authority, executed and delivered the same voluntarily for
and as the act of said City on the day the same bears date. 
 Given under my hand and seal of office, this 21 day of July, 2008. 

 

	
	
	/s/ Carla L. Englund
	Notary Public

 My Commission expires: 
 May 23, 2012 
  

 59 

			
	STATE OF NEW YORK	  	)
		  	) ss.
	 COUNTY OF WESTCHESTER
	  	)

 The undersigned, a Notary Public, does hereby certify that Michael E. Thomas, whose name as
Manager of Microgy Grand Island, LLC is signed to the foregoing Agreement, and who is known to me and known to be such officer of said Company, acknowledged before me on this day under oath that, being informed of the contents of this
Agreement, he, in his capacity as such officer of said Company and with full authority, executed and delivered the same voluntarily for and as the act of said Company on the day the same bears date. 
 Given under my hand and seal of office, this 23rd day of July, 2008. 
  

	
	
	/s/ Cordina A. Charvis
	Notary Public

 My Commission expires: 
 March 8, 2011 
  

 60 

 EXHIBIT A 
 THE FACILITY, THE PROJECT AND THE PROJECT SITE 
 The Facility comprises all equipment and related
facilities, including, without limitation, conveyors, storage tanks, feed and mix tanks, grinders, heaters, pumps and piping, anaerobic digesters, scrubbers, screw presses, flare stacks and related equipment, and other such facilities, including
modifications to any of the foregoing and including facilities which are functionally related and subordinate to the foregoing, for the treatment and disposal of solid waste, located in Grand Island, Nebraska at the industrial beef processing plant
owned by JBS Swift & Company on the hereinafter-described Project Site leased to the Company by JBS Swift & Company pursuant to the Site Lease. 
 The Project comprises that portion of the Facility that are fixtures financed with the proceeds of the $7,000,000 The City of Grand Island, Nebraska Solid Waste Disposal Facilities Revenue Bonds (Microgy
Grand Island, LLC Project) Series 2008. 
 The Project Site of the Facility and the Project is: 
 A TRACT OF LAND CONSISTING OF LOT 97, INDUSTRIAL ADDITION, CITY OF GRAND ISLAND, IN PART OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER (NW 1/4,
SW 1/4) OF SECTION FOURTEEN (14), TOWNSHIP ELEVEN (11) NORTH, RANGE NINE (9) WEST OF THE 6TH P.M., HALL COUNTY, NEBRASKA AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: 
 COMMENCING AT THE WEST 1/4 CORNER OF SAID SEC. 14; THENCE ON AN ASSUMED BEARING OF S00°08’04”W UPON AND ALONG THE WEST LINE OF THE SW1/4 A
DISTANCE OF 70.00 FEET TO THE SOUTH RIGHT-OF-WAY (R.O.W.) LINE OF SWIFT ROAD; THENCE S89°27’15”E UPON AND ALONG SAID SOUTH R.O.W. LINE A DISTANCE OF 33.00 FEET TO THE INTERSECTION OF SAID SOUTH R.O.W. LINE AND THE EAST R.O.W. LINE OF
STUHR ROAD; THENCE S00°08’04”W UPON AND ALONG SAID EAST R.O.W. LINE A DISTANCE OF 619.30 FEET TO THE INTERSECTION OF SAID EAST R.O.W. LINE AND THE NORTHERLY RIGHT-OF-WAY (R.O.W.) LINE OF BURLINGTON NORTHERN SANTA FE (B.N.S.F.)
RAILROAD; THENCE S61°59’02”E UPON AND ALONG SAID NORTHERLY R.O.W. LINE A DISTANCE OF 1084.60 FEET TO THE SOUTHWEST CORNER OF LOT 97, INDUSTRIAL ADDITION, CITY OF GRAND ISLAND, NEBRASKA, SAID POINT ALSO BEING THE POINT OF BEGINNING;
THENCE N00°12’13” E UPON AND ALONG THE WEST LINE OF SAID LOT 97, SAID POINT ALSO BEING THE EAST LINE OF LOT 98, SAID INDUSTRIAL ADDITION A DISTANCE OF 198.14 FEET TO THE NORTHWEST CORNER OF SAID LOT 97; THENCE S89°21’41”E
UPON AND ALONG THE NORTH LINE OF SAID LOT 97, SAID LINE ALSO BEING THE SOUTH LINE OF LOT 80, SAID INDUSTRIAL ADDITION A DISTANCE OF 330.01 FEET TO THE INTERSECTION OF THE NORTHEAST CORNER OF SAID LOT 97; THENCE S00°12’13”W UPON AND
ALONG THE EAST LINE OF SAID LOT 97, SAID LINE ALSO BEING THE WEST LINE OF LOT 96, SAID INDUSTRIAL ADDITION A DISTANCE OF 330.01 FEET TO THE INTERSECTION OF THE SOUTHEAST CORNER OF LOT 97 AND THE NORTH R.O.W. LINE OF B.N.S.F. RAILROAD; THENCE
N89°21’41”W UPON AND ALONG THE SOUTH LINE OF SAID LOT 97, SAID LINE ALSO BEING THE NORTH R.O.W. LINE OF B.N.S.F. RAILROAD A DISTANCE OF 76.37 FEET; THENCE N61°59’02”W UPON AND ALONG THE SOUTHERLY LINE OF SAID LOT 97, SAID
LINE ALSO BEING THE NORTHERLY R.O.W. LINE OF B.N.S.F. RAILROAD A DISTANCE OF 286.76 FEET TO THE POINT OF BEGINNING. SAID TRACT CONTAINS A CALCULATED AREA OF 92,179.98 SQUARE FEET OR 2.116 ACRES MORE OR LESS.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}]]