Document:

Exhibit

EXHIBIT 10.1

Execution Version

REGISTRATION RIGHTS AGREEMENT

by and among

Cleveland-Cliffs Inc.,
Each of the Guarantors named herein 

and

Goldman Sachs & Co. LLC
as the Initial Purchaser

May 13, 2019

REGISTRATION RIGHTS AGREEMENT
This Registration Rights Agreement (this “Agreement”) is made and entered into as of May 13, 2019, by and among Cleveland-Cliffs Inc., an Ohio corporation (the “Company”), the entities listed on the signature page hereto as “Guarantors” (collectively, the “Guarantors”), and Goldman Sachs & Co. LLC, as initial purchaser (the “Initial Purchaser”) of the Company’s 5.875% Senior Guaranteed Notes due 2027 (the “Initial Notes”), fully and unconditionally guaranteed by the Guarantors (the “Guarantees”), pursuant to the Purchase Agreement (as defined below).  The Initial Notes and the Guarantees attached thereto are herein collectively referred to as the “Initial Securities.”
This Agreement is made pursuant to the Purchase Agreement, dated April 29, 2019 (the “Purchase Agreement”), among the Company, the Guarantors and the Initial Purchaser (i) for the benefit of the Initial Purchaser and (ii) for the benefit of the Holders (as defined below) from time to time of the Initial Securities, including the Initial Purchaser.  In order to induce the Initial Purchaser to purchase the Initial Securities, the Company has agreed to provide the registration rights set forth in this Agreement.  The execution and delivery of this Agreement is a condition to the obligations of the Initial Purchaser set forth in Section 7(g) of the Purchase Agreement.
The parties hereby agree as follows:
SECTION 1.Definitions.  As used in this Agreement, the following capitalized terms shall have the following meanings:
Advice:  As defined in Section 6 hereof.
Blackout Period:  As defined in Section 4(a) hereof.
Broker-Dealer:  Any broker or dealer registered under the Exchange Act.
Business Day:  Any day other than a Saturday, Sunday or U.S. federal holiday or a day on which banking institutions or trust companies located in New York, New York are authorized or obligated to be closed.
Closing Date:  The date of this Agreement.
Commission:  The Securities and Exchange Commission.
Consummate:  A registered Exchange Offer shall be deemed “Consummated” for purposes of this Agreement upon the occurrence of (i) the filing and effectiveness under the Securities Act of the Exchange Offer Registration Statement relating to the Exchange Securities to be issued in the Exchange Offer, (ii) the maintenance of such Registration Statement continuously effective and the keeping of the Exchange Offer open for a period not less than the minimum period required pursuant to Section 3(b) hereof, and (iii) the delivery by the Company to the Registrar under the Indenture of Exchange Securities in the same aggregate principal amount as the aggregate principal amount of Initial Securities that were tendered by Holders thereof pursuant to the Exchange Offer.
Effectiveness Target Date:  As defined in Section 5 hereof.
Exchange Act:  The Securities Exchange Act of 1934, as amended.
Exchange Offer:  The registration by the Company under the Securities Act of the Exchange Securities pursuant to a Registration Statement pursuant to which the Company offers the Holders of all outstanding Transfer Restricted Securities that are eligible under the Commission’s guidance to participate in such exchange offer the opportunity to exchange all such outstanding Transfer Restricted Securities held by such Holders for Exchange Securities in an aggregate principal amount equal to the aggregate principal amount of the Transfer Restricted Securities tendered in such exchange offer by such Holders.
Exchange Offer Registration Statement:  As defined in Section 3 hereof.

Exchange Securities:  The 5.875% Senior Guaranteed Notes due 2027, of the same series under the Indenture as the Initial Notes, and the Guarantees attached thereto, to be issued to Holders in exchange for Transfer Restricted Securities pursuant to this Agreement.
FINRA:  The Financial Industry Regulatory Authority, Inc.
Holders:  As defined in Section 2(b) hereof.
Indemnified Holder:  As defined in Section 8(a) hereof.
Indenture:  The Indenture, dated as of May 13, 2019, by and among the Company, the Guarantors and U.S. Bank National Association, as trustee (the “Trustee”), pursuant to which the Initial Securities are to be issued, as such Indenture may be amended or supplemented from time to time in accordance with the terms thereof.
Initial Purchaser:  As defined in the preamble hereto.
Initial Notes:  As defined in the preamble hereto.
Initial Placement:  The issuance and sale by the Company of the Initial Securities to the Initial Purchaser pursuant to the Purchase Agreement.
Initial Securities:  As defined in the preamble hereto.
Person:  An individual, partnership, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.
Prospectus:  The prospectus included in a Registration Statement, as amended or supplemented by any prospectus supplement and by all other amendments thereto, including post-effective amendments, and all material incorporated by reference into such Prospectus.
Registrar: As defined in the Indenture.
Registration Default:  As defined in Section 5 hereof.
Registration Statement:  Any registration statement of the Company relating to (a) an offering of Exchange Securities pursuant to an Exchange Offer or (b) the registration for resale of Transfer Restricted Securities pursuant to the Shelf Registration Statement, which is filed pursuant to the provisions of this Agreement, in each case, including the Prospectus included therein, all amendments and supplements thereto (including post-effective amendments) and all exhibits and material incorporated by reference therein.
Securities Act:  The Securities Act of 1933, as amended.
Shelf Filing Deadline:  As defined in Section 4(a) hereof.
Shelf Registration Statement:  As defined in Section 4(a) hereof.
Transfer Restricted Securities:  Each Initial Security, until the earliest to occur of (a) the date on which such Initial Security is exchanged in the Exchange Offer for an Exchange Security entitled to be resold to the public by the Holder thereof without complying with the prospectus delivery requirements of the Securities Act, (b) the date on which the resale of such Initial Security has been effectively registered under the Securities Act and disposed of in accordance with a Shelf Registration Statement, (c) the date on which such Initial Security is distributed to the public by a Broker-Dealer pursuant to the “Plan of Distribution” contemplated by the Exchange Offer Registration Statement (including delivery of the Prospectus contained therein except when afforded an exception to delivery requirements by Rule 172 under the Securities Act) and (d) the date on which such Initial Security is disposed of to the public in accordance with Rule 144 under the Securities Act.
Trustee:  As defined in Section 1 hereof.
Trust Indenture Act:  The Trust Indenture Act of 1939, as amended.

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Underwritten Registration or Underwritten Offering:  A transaction registered under the Securities Act in which securities of the Company are sold to an underwriter for reoffering to the public.
SECTION 2.Securities Subject to this Agreement.
(a)Transfer Restricted Securities.  The securities entitled to the benefits of this Agreement are the Transfer Restricted Securities.
(b)Holders of Transfer Restricted Securities.  A Person is deemed to be a holder of Transfer Restricted Securities (each, a “Holder”) whenever such Person owns Transfer Restricted Securities.
SECTION 3.Registered Exchange Offer.
(a)Unless the Exchange Offer shall not be permissible under applicable law or Commission policy (after the procedures set forth in Section 6(a) hereof have been complied with), or there are no Transfer Restricted Securities outstanding, each of the Company and the Guarantors shall (i) cause to be filed with the Commission, no later than 365 days after the Closing Date (or if such 365th day is not a Business Day, the next succeeding Business Day), a Registration Statement under the Securities Act relating to the Exchange Securities and the Exchange Offer, including the related Prospectus (the “Exchange Offer Registration Statement”), (ii) in connection with the foregoing, file (A) all pre-effective amendments to such Registration Statement as may be necessary in order to cause such Exchange Offer Registration Statement to become effective, (B) if applicable, a post-effective amendment to such Exchange Offer Registration Statement pursuant to Rule 430A under the Securities Act and (C) cause all necessary filings in connection with the registration and qualification of the Exchange Securities to be made under the state securities or blue sky laws of such jurisdictions as are necessary to permit Consummation of the Exchange Offer, and (iii) promptly after the effectiveness of such Registration Statement (the “Effectiveness Date”), commence the Exchange Offer.  The Exchange Offer, if required pursuant to this Section 3(a), shall be on the appropriate form permitting registration of the Exchange Securities to be offered in exchange for the Transfer Restricted Securities and to permit resales of Initial Securities held by Broker-Dealers as contemplated by Section 3(c) hereof.
(b)If an Exchange Offer Registration Statement is required to be filed and declared effective pursuant to Section 3(a) above, the Company and the Guarantors shall cause the Exchange Offer Registration Statement to be effective continuously and shall keep the Exchange Offer open for a period of not less than the minimum period required under applicable federal and state securities laws to Consummate the Exchange Offer; provided, however, that in no event shall such period be less than 20 Business Days after the date notice of the Exchange Offer is sent to the Holders.  The Company shall cause the Exchange Offer to comply in all material respects with all applicable federal and state securities laws.  No securities other than the Exchange Securities shall be included in the Exchange Offer Registration Statement.  The Company shall use its commercially reasonable efforts to cause the Exchange Offer to be Consummated on the earliest practicable date after the Exchange Offer Registration Statement has become effective, but in no event later than the 120th day after the Exchange Offer Registration Statement is first filed (or if such 120th day is not a Business Day, the next succeeding Business Day).
(c)The Company shall indicate in a “Plan of Distribution” section contained in the Prospectus forming a part of the Exchange Offer Registration Statement that any Broker-Dealer who holds Initial Securities that are Transfer Restricted Securities and that were acquired for its own account as a result of market-making activities or other trading activities (other than Transfer Restricted Securities acquired directly from the Company), may exchange such Initial Securities pursuant to the Exchange Offer; however, such Broker-Dealer may be deemed to be an “underwriter” within the meaning of the Securities Act and must, therefore, deliver a prospectus meeting the requirements of the Securities Act in connection with any resales of the Exchange Securities received by such Broker-Dealer in the Exchange Offer, which prospectus delivery requirement may be satisfied by the delivery by such Broker-Dealer of the Prospectus contained in the Exchange Offer Registration Statement.  Such “Plan of Distribution” section shall also contain all other information with respect to such resales by Broker-Dealers that the Commission may require in order to permit such resales pursuant thereto, but such “Plan of Distribution” shall not name any such Broker-Dealer or disclose the amount of Initial Securities held by any such Broker-Dealer except to the extent required by the Commission as a result of a change in policy after the date of this Agreement.
Each of the Company and the Guarantors shall use its commercially reasonable efforts to keep the Exchange Offer Registration Statement continuously effective, supplemented and amended as required by the provisions of Section 6(c) hereof to the extent necessary to provide reasonable assurance that it is available for 

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resales of Initial Securities acquired by Broker-Dealers for their own accounts as a result of market-making activities or other trading activities, and to provide reasonable assurance that it conforms in all material respects with the requirements of this Agreement, the Securities Act and the policies, rules and regulations of the Commission as announced from time to time, for a period ending on the earlier of (i) 180 days from the Effectiveness Date and (ii) the date on which a Broker-Dealer is no longer required to deliver a prospectus in connection with market-making or other trading activities.
The Company shall provide sufficient copies of the latest version of such Prospectus to Broker-Dealers promptly upon request at any time during such 180-day (or shorter as provided in the foregoing sentence) period in order to facilitate such resales.
SECTION 4.Shelf Registration.
(a)Shelf Registration.  If (i) the Company is not required to file an Exchange Offer Registration Statement or to consummate the Exchange Offer because the Exchange Offer is not permitted by applicable law or Commission policy (after the procedures set forth in Section 6(a) hereof have been complied with), (ii) for any reason the Exchange Offer is not Consummated within 120 days after the Exchange Offer Registration Statement is first filed (or if such 120th day is not a Business Day, the next succeeding Business Day), or (iii) with respect to any Holder of Transfer Restricted Securities that notifies the Company that (A) such Holder is prohibited by applicable law or Commission policy from participating in the Exchange Offer, (B) such Holder may not resell the Exchange Securities acquired by it in the Exchange Offer to the public without delivering a prospectus and that the Prospectus contained in the Exchange Offer Registration Statement is not appropriate or available for such resales by such Holder, or (C) such Holder is a Broker-Dealer and holds Initial Securities acquired directly from the Company or one of its affiliates, then, upon such Holder’s request, the Company and the Guarantors shall:
(x)    cause to be filed a shelf registration statement pursuant to Rule 415 under the Securities Act, which may be an amendment to the Exchange Offer Registration Statement (in either event, the “Shelf Registration Statement”) on or prior to the latest to occur of (1) the 30th day after the date on which the Company determines that it is not required to file the Exchange Offer Registration Statement as contemplated by clause (i) above, (2) the 30th day after the date on which the Company receives notice from a Holder of Transfer Restricted Securities as contemplated by clause (iii) above, and (3) the 365th day after the Closing Date (or if such 365th day is not a Business Day, the next succeeding Business Day) (such latest date being the “Shelf Filing Deadline”), which Shelf Registration Statement shall provide for resales of all Transfer Restricted Securities the Holders of which shall have provided the information required pursuant to Section 4(b) hereof; and
(y)    use their commercially reasonable efforts to cause such Shelf Registration Statement to be declared effective by the Commission on or before the 90th day after the Shelf Filing Deadline (or if such 90th day is not a Business Day, the next succeeding Business Day).
Each of the Company and the Guarantors shall use its commercially reasonable efforts to keep such Shelf Registration Statement continuously effective, supplemented and amended as required by the provisions of Sections 6(b) and (c) hereof to the extent necessary to provide reasonable assurance that it is available for resales of Initial Securities by the Holders of Transfer Restricted Securities entitled to the benefit of this Section 4(a), and to provide reasonable assurance that it conforms in all material respects with the requirements of this Agreement, the Securities Act and the policies, rules and regulations of the Commission as announced from time to time, for a period of at least two years following the effective date of such Shelf Registration Statement (or shorter period that will terminate when all the Initial Securities covered by such Shelf Registration Statement have been sold pursuant to such Shelf Registration Statement); provided that the Company may for a period of up to 60 days in any three-month period, not to exceed 90 days in any twelve-month period, suspend the use of the Prospectus if it reasonably determines that the Shelf Registration Statement is not usable under circumstances relating to corporate developments, public filings with the Commission and similar events (a “Blackout Period”).
(b)Provision by Holders of Certain Information in Connection with the Shelf Registration Statement.  No Holder of Transfer Restricted Securities may include any of its Transfer Restricted Securities in any Shelf Registration Statement pursuant to this Agreement unless and until such Holder furnishes to the Company in writing, within 20 Business Days after receipt of a request therefor, such information as the Company may reasonably request for use in connection with any Shelf Registration Statement or Prospectus or preliminary Prospectus included therein.  Each Holder as to which any Shelf Registration Statement is being effected agrees to 

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furnish promptly to the Company all information required to be disclosed in order to make the information previously furnished to the Company by such Holder not materially misleading in the light of the circumstances under which it was made.
SECTION 5.Additional Interest.  If (i) any of the Registration Statements required by this Agreement is not filed with the Commission on or prior to the date specified for such filing in this Agreement, (ii) the Exchange Offer has not been Consummated within 120 days after the first anniversary of the Closing Date (or if such 120th day is not a Business Day, the next succeeding Business Day) (except, in the case of (i) or (ii) unless the Exchange Offer is not permitted by applicable law or Commission policy) or (iii) any Shelf Registration Statement required by this Agreement is filed and declared effective but, subject to any Blackout Period, shall thereafter cease to be effective without being succeeded immediately by a post-effective amendment to such Registration Statement that cures such failure and that is itself immediately declared effective (each such event referred to in clauses (i) through (iii), a “Registration Default”), the Company hereby agrees that the interest rate borne by the Transfer Restricted Securities shall be increased by 0.25% per annum during the 90-day period immediately following the occurrence of any Registration Default and shall increase by 0.25% per annum at the end of each subsequent 90-day period, but in no event shall such increase exceed 1.00% per annum.  Following the cure of all Registration Defaults relating to any particular Transfer Restricted Securities, the interest rate borne by the relevant Transfer Restricted Securities will be reduced to the original interest rate borne by such Transfer Restricted Securities; provided, however, that, if after any such reduction in interest rate, a different Registration Default occurs, the interest rate borne by the relevant Transfer Restricted Securities shall again be increased pursuant to the foregoing provisions.
All obligations of the Company and the Guarantors set forth in the preceding paragraph that are outstanding with respect to any Transfer Restricted Security at the time such security ceases to be a Transfer Restricted Security shall survive until such time as all such obligations with respect to such security shall have been satisfied in full.
SECTION 6.Registration Procedures.
(a)Exchange Offer Registration Statement.  In connection with the Exchange Offer, if required pursuant to Section 3(a) hereof, the Company and the Guarantors shall comply in all material respects with all of the provisions of Section 6(c) hereof, shall use their commercially reasonable efforts to effect such exchange to permit the sale of Transfer Restricted Securities being sold in accordance with the intended method or methods of distribution thereof, and shall comply with all of the following provisions:
(i)If in the reasonable opinion of counsel to the Company there is a question as to whether the Exchange Offer is permitted by applicable law, each of the Company and the Guarantors hereby agrees to either (A) seek a no-action letter or other favorable decision from the Commission allowing the Company and the Guarantors to Consummate an Exchange Offer for such Initial Securities or (B) file, in accordance with Section 4(a), a Shelf Registration Statement.  In the case of clause (A) above, each of the Company and the Guarantors hereby agrees to pursue the issuance of such a decision to the Commission staff level but shall not be required to take commercially unreasonable action to effect a change of Commission policy.  In the case of clause (A) above, each of the Company and the Guarantors hereby agrees, however, to use commercially reasonable efforts to (A) participate in telephonic conferences with the Commission, (B) deliver to the Commission staff an analysis prepared by counsel to the Company setting forth the legal bases, if any, upon which such counsel has concluded that such an Exchange Offer should be permitted and (C) diligently pursue a favorable resolution by the Commission staff of such submission.
(ii)As a condition to its participation in the Exchange Offer pursuant to the terms of this Agreement, each Holder of Transfer Restricted Securities shall furnish, upon the request of the Company, prior to the Consummation thereof, a written representation to the Company (which may be contained in the letter of transmittal contemplated by the Exchange Offer Registration Statement) to the effect that (A) it is not an affiliate of the Company, (B) it is not engaged in, and does not intend to engage in, and has no arrangement or understanding with any Person to participate in, a distribution of the Exchange Securities to be issued in the Exchange Offer and (C) it is acquiring the Exchange Securities in its ordinary course of business.  In addition, all such Holders of Transfer Restricted Securities shall otherwise cooperate in the Company’s preparations for the Exchange Offer.  Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the Exchange Offer to participate in a distribution of the securities to be acquired in the Exchange Offer (1) could not under Commission policy as in effect on the date of this Agreement rely on the position of the Commission enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings Corporation (available May 13, 1988), as interpreted in the 

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Commission’s letter to Shearman & Sterling dated July 2, 1993, and similar no-action letters (which may include any no-action letter obtained pursuant to clause (i) above), and (2) must comply with the registration and prospectus delivery requirements of the Securities Act in connection with a secondary resale transaction and that such a secondary resale transaction should be covered by an effective registration statement containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S‐K if the resales are of Exchange Securities obtained by such Holder in exchange for Initial Securities acquired by such Holder directly from the Company.
(b)Shelf Registration Statement.  If required pursuant to Section 4 above, in connection with the Shelf Registration Statement, each of the Company and the Guarantors shall comply in all material respects with all the provisions of Section 6(c) hereof and shall use its commercially reasonable efforts to effect such registration to permit the sale of the Transfer Restricted Securities being sold in accordance with the intended method or methods of distribution thereof, and pursuant thereto each of the Company and the Guarantors will as soon as reasonably practicable, after such obligation is triggered, prepare and file with the Commission a Registration Statement relating to the registration on any appropriate form under the Securities Act, which form shall be available for the sale of the Transfer Restricted Securities in accordance with the intended method or methods of distribution thereof.
(c)General Provisions.  In connection with any Registration Statement and any Prospectus required by this Agreement to permit the sale or resale of Transfer Restricted Securities (including, without limitation, any Registration Statement and the related Prospectus required to permit resales of Initial Securities by Broker-Dealers), each of the Company and the Guarantors shall:
(i)use its commercially reasonable efforts to keep such Registration Statement continuously effective and provide all requisite financial statements (including, if required by the Securities Act or any regulation thereunder, financial statements of the Guarantors for the period specified in Section 3 or 4 hereof, as applicable; upon the occurrence of any event that would cause any such Registration Statement or the Prospectus contained therein (A) to contain a material misstatement or omission or (B) not to be effective and usable for resale of Transfer Restricted Securities during the period required by this Agreement, the Company shall file promptly an appropriate amendment to such Registration Statement, in the case of clause (A), correcting any such misstatement or omission, and, in the case of either clause (A) or (B), use its commercially reasonable efforts to cause such amendment to be declared effective and such Registration Statement and the related Prospectus to become usable for their intended purpose(s) as soon as reasonably practicable thereafter;
(ii)prepare and file with the Commission such amendments and post-effective amendments to the applicable Registration Statement as may be necessary to keep the Registration Statement effective for the applicable period set forth in Section 3 or 4 hereof, as applicable, or such shorter period as will terminate when all Transfer Restricted Securities covered by such Registration Statement have been sold; cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities Act, and to comply in all material respects with the applicable provisions of Rules 424 and 430A under the Securities Act in a timely manner; and comply in all material respects with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the sellers thereof set forth in such Registration Statement or supplement to the Prospectus;
(iii)advise the underwriter(s), if any, and selling Holders promptly and, if requested by such Persons, to confirm such advice in writing, (A) when the Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to any Registration Statement or any post-effective amendment thereto, when the same has become effective, (B) of any request by the Commission for amendments to the Registration Statement or amendments or supplements to the Prospectus or for additional information relating thereto, (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement under the Securities Act or of the suspension by any state securities commission of the qualification of the Transfer Restricted Securities for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes, (D) of the existence of any fact or the happening of any event that makes any statement of a material fact made in the Registration Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated by reference therein untrue, or that requires the making of any additions to or changes in the Registration Statement or the Prospectus in order to make the statements therein not misleading in the light of the 

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circumstances under which they were made.  If at any time the Commission shall issue any stop order suspending the effectiveness of the Registration Statement, or any state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Transfer Restricted Securities under state securities or blue sky laws, each of the Company and the Guarantors shall use its commercially reasonable efforts to obtain the withdrawal or lifting of such order as soon as reasonably practicable;
(iv)furnish without charge to the Initial Purchaser, each selling Holder named in any Registration Statement, and each of the underwriter(s), if any, before filing with the Commission, copies of any Registration Statement or any Prospectus included therein or any amendments or supplements to any such Registration Statement or Prospectus (including all documents incorporated by reference after the initial filing of such Registration Statement), which documents will be subject to the review and comment of such Holders and underwriter(s) in connection with such sale, if any, for a period of at least five Business Days, and the Company will not file any such Registration Statement or Prospectus or any amendment or supplement to any such Registration Statement or Prospectus (including all such documents incorporated by reference) to which the Initial Purchaser of Transfer Restricted Securities covered by such Registration Statement or the underwriter(s), if any, shall reasonably object in writing within five Business Days after the receipt thereof (such objection to be deemed timely made upon confirmation of telecopy transmission within such period).  The objection of the Initial Purchaser or underwriter, if any, shall be deemed to be reasonable if such Registration Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed, contains a material misstatement or omission;
(v)promptly prior to the filing of any document that is to be incorporated by reference into a Registration Statement or Prospectus (other than Exchange Act Documents and other filings related to the offering, registration or listing of, or other acts, events, circumstances or activities in respect of, other securities and not to Transfer Restricted Securities), provide copies of such document to the Initial Purchaser, each selling Holder named in any Registration Statement, and to the underwriter(s), if any, make the Company’s and the Guarantors’ representatives available for discussion of such document and other customary due diligence matters, and include such information in such document prior to the filing thereof as such selling Holders or underwriter(s), if any, reasonably may request;
(vi)make available at reasonable times for inspection by the Initial Purchaser, the managing underwriter(s), if any, participating in any disposition pursuant to such Registration Statement and any attorney or accountant retained by the Initial Purchaser or any of the underwriter(s), all financial and other records, pertinent corporate documents and properties of each of the Company and the Guarantors and cause the Company’s and the Guarantors’ officers, directors and employees to supply all information reasonably requested by any such Holder, underwriter, attorney or accountant in connection with such Registration Statement or any post-effective amendment thereto subsequent to the filing thereof and prior to its effectiveness and to participate in meetings with investors to the extent requested by the managing underwriter(s), if any;
(vii)if requested by any selling Holders or the underwriter(s), if any, promptly incorporate in any Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such selling Holders and underwriter(s), if any, may reasonably request to have included therein, including, without limitation, information relating to the “Plan of Distribution” of the Transfer Restricted Securities, information with respect to the principal amount of Transfer Restricted Securities being sold to such underwriter(s), the purchase price being paid therefor and any other terms of the offering of the Transfer Restricted Securities to be sold in such offering; and make all required filings of such Prospectus supplement or post-effective amendment as soon as reasonably practicable after the Company is notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment;
(viii)cause the Transfer Restricted Securities covered by the Registration Statement to be rated with the appropriate rating agencies, if so requested by the Holders of a majority in aggregate principal amount of Transfer Restricted Securities covered thereby or the underwriter(s), if any;
(ix)upon request, furnish to the Initial Purchaser, each selling Holder and each of the underwriter(s), if any, without charge, at least one copy of the Registration Statement, as first filed with the Commission, and of each amendment thereto, including financial statements and schedules, all documents incorporated by reference therein and all exhibits (including exhibits incorporated therein by reference);

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(x)deliver to each selling Holder and each of the underwriter(s), if any, without charge, as many copies of the Prospectus (including each preliminary prospectus) and any amendment or supplement thereto as such Persons reasonably may request; each of the Company and the Guarantors hereby consents to the use of the Prospectus and any amendment or supplement thereto by each of the selling Holders and each of the underwriter(s), if any, in connection with the offering and the sale of the Transfer Restricted Securities covered by the Prospectus or any amendment or supplement thereto;
(xi)enter into such agreements (including an underwriting agreement), and make such representations and warranties, and take all such other actions in connection therewith in order to expedite or facilitate the disposition of the Transfer Restricted Securities pursuant to any Registration Statement contemplated by this Agreement, all to such extent as may be reasonably requested by the Initial Purchaser or by any Holder of Transfer Restricted Securities or underwriter in connection with any sale or resale pursuant to any Registration Statement contemplated by this Agreement; and whether or not an underwriting agreement is entered into and whether or not the registration is an Underwritten Registration, each of the Company and the Guarantors shall:
(A)furnish to the Initial Purchaser, each selling Holder and each underwriter, if any, in such substance and scope as they may reasonably request and as are customarily made by issuers to underwriters in primary underwritten offerings, upon the date of the Consummation of the Exchange Offer or, if applicable, the effectiveness of the Shelf Registration Statement:
(1)a certificate, dated the date of Consummation of the Exchange Offer or the date of effectiveness of the Shelf Registration Statement, as the case may be, signed by (y) the President or any Executive Vice President and (z) a principal financial or accounting officer of each of the Company and the Guarantors, confirming, as of the date thereof, the matters set forth in Section 7(e) of the Purchase Agreement and such other matters as such parties may reasonably request;
(2)an opinion, dated the date of Consummation of the Exchange Offer or the date of effectiveness of the Shelf Registration Statement, as the case may be, of counsel for the Company and the Guarantors, covering the matters set forth in Section 7(c) of the Purchase Agreement (to the extent such matters are applicable in the context of the Consummation of the Exchange Offer or the date of effectiveness of a Shelf Registration Statement, as the case may be) and in any event including a statement to the effect that such counsel has participated in conferences with officers and other representatives of the Company and the Guarantors, representatives of the independent public accountants for the Company and the Guarantors, representatives of the underwriter(s), if any, and counsel to the underwriter(s), if any, in connection with the preparation of such Registration Statement and the related Prospectus and have considered the matters required to be stated therein and the statements contained therein, although such counsel has not independently verified the accuracy, completeness or fairness of such statements; and that such counsel advises that, on the basis of the foregoing, no facts came to such counsel’s attention that caused such counsel to believe that the applicable Registration Statement, at the time such Registration Statement or any post-effective amendment thereto became effective, and, in the case of the Exchange Offer Registration Statement, as of the date of Consummation, contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made, or that the Prospectus contained in such Registration Statement as of its date and, in the case of the opinion dated the date of Consummation of the Exchange Offer, as of the date of Consummation, contained an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein not misleading in the light of the circumstances under which they were made.  Without limiting the foregoing, such counsel may state further that such counsel assumes no responsibility for, and has not independently verified, the accuracy, completeness or fairness of the financial statements, notes and schedules and other financial data included in any Registration Statement contemplated by this Agreement or the related Prospectus; and

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(3)solely in connection with an underwritten offering, a customary comfort letter, dated the date of effectiveness of the Shelf Registration Statement, from the Company’s independent accountants, in the customary form and covering matters of the type customarily requested to be covered in comfort letters by underwriters in connection with primary underwritten offerings, and covering or affirming the matters set forth in the comfort letters delivered pursuant to Section 7(a) of the Purchase Agreement, without material exception;
(B)set forth in full or incorporate by reference in the underwriting agreement, if any, the indemnification provisions and procedures of Section 8 hereof with respect to all parties to be indemnified pursuant to said Section; and
(C)deliver such other documents and certificates as may be reasonably requested by such parties to evidence compliance with Section 6(c)(xi)(A) hereof and with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company or any of the Guarantors pursuant to this Section 6(c)(xi), if any.
If at any time the representations and warranties of the Company and the Guarantors contemplated in Section 6(c)(xi)(A)(1) hereof cease to be true and correct, the Company or the Guarantors shall so advise the Initial Purchaser and the underwriter(s), if any, and each selling Holder promptly and, if requested by such Persons, shall confirm such advice in writing;
(xii)prior to any public offering of Transfer Restricted Securities, reasonably cooperate with the selling Holders, the underwriter(s), if any, and their respective counsel in connection with the registration and qualification of the Transfer Restricted Securities under the state securities or blue sky laws of such jurisdictions as the selling Holders or underwriter(s), if any, may reasonably request and do any and all other acts or things reasonably necessary or advisable to enable the disposition in such jurisdictions of the Transfer Restricted Securities covered by the Shelf Registration Statement; provided, however, that none of the Company or the Guarantors shall be required to register or qualify as a foreign corporation where it is not then so qualified or to take any action that would subject it to the service of process in suits or to taxation, other than as to matters and transactions relating to the Registration Statement, in any jurisdiction where it is not then so subject;
(xiii)shall issue, upon the reasonable request of any Holder of Initial Securities covered by the Shelf Registration Statement, Exchange Securities having an aggregate principal amount equal to the aggregate principal amount of Initial Securities surrendered to the Company by such Holder in exchange therefor or being sold by such Holder; such Exchange Securities to be registered in the name of such Holder or in the name of the purchaser(s) of such Exchange Securities, as the case may be; in return, the Initial Securities held by such Holder shall be surrendered to the Company for cancellation;
(xiv)reasonably cooperate with the selling Holders and the underwriter(s), if any, to facilitate the timely preparation and delivery of certificates representing Transfer Restricted Securities to be sold and not bearing any restrictive legends; and enable such Transfer Restricted Securities to be in such denominations and registered in such names as the Holders or the underwriter(s), if any, may request at least two Business Days prior to any sale of Transfer Restricted Securities made by such Holders or underwriter(s);
(xv)use its commercially reasonable efforts to cause the Transfer Restricted Securities covered by the Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or sellers thereof or the underwriter(s), if any, to consummate the disposition of such Transfer Restricted Securities, subject to the proviso contained in Section 6(c)(xii) hereof;
(xvi)if any fact or event contemplated by Section 6(c)(iii)(D) hereof shall exist or have occurred, prepare a supplement or post-effective amendment to the Registration Statement or related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of Transfer Restricted Securities, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein not misleading in the light of the circumstances under which they were made;

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(xvii)provide a CUSIP number for all Exchange Securities not later than the effective date of the Registration Statement covering such Exchange Securities and provide the Trustee under the Indenture with printed certificates for such Exchange Securities that are in a form eligible for deposit with the Depository Trust Company and take all other action reasonably necessary to provide reasonable assurance that all such Exchange Securities are eligible for deposit with the Depository Trust Company;
(xviii)reasonably cooperate and assist in any filings required to be made with FINRA and in the performance of any due diligence investigation by any underwriter (including any “qualified independent underwriter”) that is required to be retained in accordance with the rules and regulations of FINRA;
(xix)otherwise use its commercially reasonable efforts to comply in all material respects with all applicable rules and regulations of the Commission, and make generally available to its security holders, as soon as reasonably practicable, a consolidated earnings statement meeting the requirements of Rule 158 under the Securities Act (which need not be audited) for the twelve-month period (A) commencing at the end of any fiscal quarter in which Transfer Restricted Securities are sold to underwriters in a firm commitment or best efforts Underwritten Offering or (B) if not sold to underwriters in such an offering, beginning with the first month of the Company’s first fiscal quarter commencing after the effective date of the Registration Statement;
(xx)use its commercially reasonable efforts to cause the Indenture to be qualified under the Trust Indenture Act not later than the effective date of the first Registration Statement required by this Agreement, and, in connection therewith, cooperate with the Trustee and the Holders of Initial Securities to effect such changes to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and to execute and use its best efforts to cause the Trustee to execute, all documents that may be reasonably required to effect such changes and all other forms and documents required to be filed with the Commission to enable such Indenture to be so qualified in a timely manner;
(xxi)use its commercially reasonable efforts to cause all Transfer Restricted Securities covered by the Registration Statement to be listed on each securities exchange or automated quotation system on which similar securities issued by the Company are then listed if requested by the Holders of a majority in aggregate principal amount of Initial Securities or the managing underwriter(s), if any; and
(xxii)use its commercially reasonable efforts to provide promptly to each Holder upon request each document filed with the Commission pursuant to the requirements of Section 13 and Section 15 of the Exchange Act.
Each Holder agrees by acquisition of a Transfer Restricted Security that, upon receipt of any notice from the Company of the existence of any fact of the kind described in Section 6(c)(iii)(D) hereof, such Holder will forthwith discontinue disposition of Transfer Restricted Securities pursuant to the applicable Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 6(c)(xvi) hereof, or until it is advised in writing (the “Advice”) by the Company that the use of the Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus.  If so directed by the Company, each Holder will deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer Restricted Securities that was current at the time of receipt of such notice.  In the event the Company shall give any such notice, the time period regarding the effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended by the number of days during the period from and including the date of the giving of such notice pursuant to Section 6(c)(iii)(D) hereof to and including the date when each selling Holder covered by such Registration Statement shall have received the copies of the supplemented or amended Prospectus contemplated by Section 6(c)(xvi) hereof or shall have received the Advice; provided, however, that no such extension shall be taken into account in determining whether additional interest is due pursuant to Section 5 hereof or the amount of such additional interest, it being agreed that the Company’s option to suspend use of a Registration Statement pursuant to this paragraph shall be treated as a Registration Default for purposes of Section 5 hereof.
Each Holder will furnish to the Company such information regarding such Holder and the distribution of such Transfer Restricted Securities as the Company may from time to time rea-sonably request in writing, but only 

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to the extent such information is required to comply with the Securities Act or any relevant state securities or Blue Sky law or obligation.
SECTION 7.Registration Expenses.
(a)All expenses incident to the Company’s and the Guarantors’ performance of or compliance with this Agreement will be borne by the Company and the Guarantors, jointly and severally, regardless of whether a Registration Statement becomes effective, including, without limitation: (i) all registration and filing fees and expenses (including filings made by the Initial Purchaser or Holder with FINRA (and, if applicable, the fees and expenses of any “qualified independent underwriter” and its counsel that may be required by the rules and regulations of FINRA)); (ii) all fees and expenses of compliance with federal securities and state securities or blue sky laws; (iii) all expenses of printing (including printing certificates for the Exchange Securities to be issued in the Exchange Offer and printing of Prospectuses), messenger and delivery services and telephone; (iv) all fees and disbursements of counsel for the Company and the Guarantors and, subject to Section 7(b) hereof, the reasonable fees and disbursements of counsel for the Holders of Transfer Restricted Securities; (v) all application and filing fees in connection with listing the Exchange Securities on a securities exchange or automated quotation system pursuant to the requirements thereof; and (vi) all fees and disbursements of independent certified public accountants of the Company and the Guarantors (including the expenses of any special audit and comfort letters required by or incident to such performance).
Each of the Company and the Guarantors will, in any event, bear its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by the Company or the Guarantors.
(b)In connection with any Registration Statement required by this Agreement (including, without limitation, the Exchange Offer Registration Statement and the Shelf Registration Statement), the Company and the Guarantors, jointly and severally, will reimburse the Initial Purchaser and the Holders of Transfer Restricted Securities being tendered in the Exchange Offer and/or resold pursuant to the “Plan of Distribution” contained in the Exchange Offer Registration Statement or registered pursuant to the Shelf Registration Statement, as applicable, for the reasonable fees and disbursements of not more than one counsel, who shall be Davis Polk & Wardwell LLP or such other counsel as may be chosen by the Holders of a majority in principal amount of the Transfer Restricted Securities for whose benefit such Registration Statement is being prepared.
SECTION 8.Indemnification.
(a)The Company and the Guarantors, jointly and severally, agree to indemnify and hold harmless (i) each Holder and (ii) each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any Holder (any of the Persons referred to in this clause (ii) being hereinafter referred to as a “controlling person”) and (iii) the respective officers, directors, partners, employees, representatives and agents of any Holder or any controlling person (any Person referred to in clause (i), (ii) or (iii) may hereinafter be referred to as an “Indemnified Holder”), to the fullest extent lawful, from and against any and all losses, claims, damages, liabilities, judgments, actions and expenses (including, without limitation, and as incurred, reimbursement of all reasonable costs of investigating, preparing, pursuing, settling, compromising, paying or defending any claim or action, or any investigation or proceeding by any governmental agency or body, commenced or threatened, including the reasonable fees and expenses of counsel to any Indemnified Holder), joint or several, directly or indirectly caused by, related to, based upon, arising out of or in connection with any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or Prospectus (or any amendment or supplement thereto), or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made, except insofar as such losses, claims, damages, liabilities or expenses are caused by an untrue statement or omission or alleged untrue statement or omission that is made in reliance upon and in conformity with information relating to any of the Holders furnished in writing to the Company by any of the Holders expressly for use therein.  This indemnity agreement shall be in addition to any liability which the Company or any of the Guarantors may otherwise have.
In case any action or proceeding (including any governmental or regulatory investigation or proceeding) shall be brought or asserted against any of the Indemnified Holders with respect to which indemnity may be sought against the Company or the Guarantors, such Indemnified Holder (or the Indemnified Holder controlled by such 

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controlling person) shall promptly notify the Company and the Guarantors in writing; provided, however, that the failure to give such notice shall not relieve any of the Company or the Guarantors of its obligations pursuant to this Agreement, unless and to the extent such failure results in the forfeiture by the Company or the Guarantor of substantial rights and defenses.  Such Indemnified Holder shall have the right to employ its own counsel in any such action and the fees and expenses of such counsel shall be paid, as incurred, by the Company and the Guarantors (regardless of whether it is ultimately determined that an Indemnified Holder is not entitled to indemnification hereunder).  The Company and the Guarantors shall not, in connection with any one such action or proceeding or separate but substantially similar or related actions or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for such Indemnified Holders, which firm shall be designated by the Holders.  The Company and the Guarantors shall be liable for any settlement of any such action or proceeding effected with the Company’s and the Guarantors’ prior written consent, which consent shall not be withheld unreasonably, and each of the Company and the Guarantors agrees to indemnify and hold harmless any Indemnified Holder from and against any loss, claim, damage, liability or expense by reason of any settlement of any action effected with the written consent of the Company and the Guarantors.  The Company and the Guarantors shall not, without the prior written consent of each Indemnified Holder, settle or compromise or consent to the entry of judgment in or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any Indemnified Holder is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each Indemnified Holder from all liability arising out of such action, claim, litigation or proceeding.
(b)Each Holder of Transfer Restricted Securities agrees, severally and not jointly, to indemnify and hold harmless the Company, the Guarantors and their respective directors, officers of the Company and the Guarantors who sign a Registration Statement, and any Person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company or any of the Guarantors, and the respective officers, directors, partners, employees, representatives and agents of each such Person, to the same extent as the foregoing indemnity from the Company and the Guarantors to each of the Indemnified Holders, but only with respect to claims, losses, damages, liabilities, judgments, actions and expenses directly or indirectly caused by, related to, based on, arising out of or in connection with information relating to such Holder furnished in writing by such Holder expressly for use in any Registration Statement.  In case any action or proceeding shall be brought against the Company, the Guarantors or their respective directors or officers or any such controlling person in respect of which indemnity may be sought against a Holder of Transfer Restricted Securities, such Holder shall have the rights and duties given the Company and the Guarantors, and the Company, the Guarantors, their respective directors and officers and such controlling person shall have the rights and duties given to each Holder by the preceding paragraph.
(c)If the indemnification provided for in this Section 8 is unavailable to an indemnified party under Section 8(a) or (b) hereof (other than by reason of exceptions provided in those Sections) in respect of any losses, claims, damages, liabilities, judgments, actions or expenses referred to therein, then each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors, on the one hand, and the Holders, on the other hand, from the Initial Placement (which in the case of the Company and the Guarantors shall be deemed to be equal to the total net proceeds to the Company and the Guarantors from the Initial Placement), the amount of additional interest which did not become payable as a result of the filing of the Registration Statement resulting in such losses, claims, damages, liabilities, judgments actions or expenses, and such Registration Statement, or if such allocation is not permitted by applicable law, the relative fault of the Company and the Guarantors, on the one hand, and the Holders, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations.  The relative fault of the Company on the one hand and of the Indemnified Holder on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or any of the Guarantors, on the one hand, or the Indemnified Holders, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 8(a) hereof, any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim.

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The Company, the Guarantors and each Holder of Transfer Restricted Securities agree that it would not be just and equitable if contribution pursuant to this Section 8(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph.  The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities or expenses referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim.  Notwithstanding the provisions of this Section 8, none of the Holders (and its related Indemnified Holders) shall be required to contribute, in the aggregate, any amount in excess of the amount by which the total discount received by such Holder with respect to the Initial Securities exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  The Holders’ obligations to contribute pursuant to this Section 8(c) are several in proportion to the respective principal amount of Initial Securities held by each of the Holders hereunder and not joint.
SECTION 9.Rule 144A.  Each of the Company and the Guarantors hereby agrees with each Holder, for so long as any Transfer Restricted Securities remain outstanding, to make available to any Holder or beneficial owner of Transfer Restricted Securities in connection with any sale thereof and any prospective purchaser of such Transfer Restricted Securities from such Holder or beneficial owner, the information required by Rule 144A(d)(4) under the Securities Act in order to permit resales of such Transfer Restricted Securities pursuant to Rule 144A under the Securities Act.
SECTION 10.Participation in Underwritten Registrations.  No Holder may participate in any Underwritten Registration hereunder unless such Holder (a) agrees to sell such Holder’s Transfer Restricted Securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up letters and other documents required under the terms of such underwriting arrangements.
SECTION 11.Selection of Underwriters.  The Holders of Transfer Restricted Securities covered by the Shelf Registration Statement who desire to do so may sell such Transfer Restricted Securities in an Underwritten Offering.  In any such Underwritten Offering, the investment banker(s) and managing underwriter(s) that will administer such offering will be selected by the Holders of a majority in aggregate principal amount of the Transfer Restricted Securities included in such offering; provided, however, that such investment banker(s) and managing underwriter(s) must be reasonably satisfactory to the Company.
SECTION 12.Miscellaneous.
(a)Remedies.  Each of the Company and the Guarantors hereby agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and hereby agree to waive the defense in any action for specific performance that a remedy at law would be adequate.
(b)No Inconsistent Agreements.  Each of the Company and the Guarantors will not on or after the date of this Agreement enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof.  Neither the Company nor any of the Guarantors has previously entered into any agreement granting any registration rights with respect to its securities to any Person.  The rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of the Company’s or any of the Guarantors’ securities under any agreement in effect on the date hereof.
(c)Adjustments Affecting the Securities.  The Company will not take any action, or permit any change to occur, with respect to the Securities that would materially and adversely affect the ability of the Holders to Consummate any Exchange Offer.
(d)Amendments and Waivers.  The provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to or departures from the provisions hereof may not be given unless the 

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Company has (i) in the case of Section 5 hereof and this Section 12(d)(i), obtained the written consent of Holders of all outstanding Transfer Restricted Securities and (ii) in the case of all other provisions hereof, obtained the written consent of Holders of a majority of the outstanding principal amount of Transfer Restricted Securities (excluding any Transfer Restricted Securities held by the Company or its affiliates).  Notwithstanding the foregoing, a waiver or consent to departure from the provisions hereof that relates exclusively to the rights of Holders whose securities are being tendered pursuant to the Exchange Offer and that does not affect directly or indirectly the rights of other Holders whose securities are not being tendered pursuant to such Exchange Offer may be given by the Holders of a majority of the outstanding principal amount of Transfer Restricted Securities being tendered or registered; provided, however, that, with respect to any matter that directly or indirectly affects the rights of the Initial Purchaser hereunder, the Company shall obtain the written consent of the Initial Purchaser with respect to which such amendment, qualification, supplement, waiver, consent or departure is to be effective.
(e)Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail (registered or certified, return receipt requested), telex, telecopier, or air courier guaranteeing overnight delivery:
(i)if to a Holder, at the address set forth on the records of the Registrar under the Indenture, with a copy to the Registrar under the Indenture; and
(ii)if to the Company or the Guarantors:
Cleveland-Cliffs Inc.
200 Public Square, Suite 3300
Cleveland, Ohio 44114 
Facsimile: 216-694-6509
Attention: Executive Vice President, Chief Legal Officer & Secretary
with a copy to (which shall not constitute notice):
Jones Day
901 Lakeside Avenue
Cleveland, Ohio 44114
Facsimile: 216-579-0212
Attention: Michael J. Solecki, Esq.
All such notices and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if facsimiled; and on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery.
Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee at the address specified in the Indenture.
(f)Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including, without limitation, and without the need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided, however, that this Agreement shall not inure to the benefit of or be binding upon a successor or assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted Securities from such Holder.
(g)Counterparts.  This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.
(h)Headings.  The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.
(i)Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF.

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(j)Severability.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.
(k)Entire Agreement.  This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights granted by the Company with respect to the Transfer Restricted Securities.  This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
	
		
	CLEVELAND-CLIFFS INC.

	 

	By:
	/s/ Keith A. Koci

	 
	Name:  Keith A. Koci

	 
	Title:     Executive Vice President, Chief Financial Officer

[Signature Page to Registration Rights Agreement]

	
		
	CLF PINNOAK LLC

	CLIFFS EMPIRE, INC.

	CLIFFS EMPIRE II INC.

	CLIFFS INTERNATIONAL MANAGEMENT COMPANY LLC

	CLIFFS MINING SERVICES COMPANY

	CLIFFS MINNESOTA MINING COMPANY

	CLIFFS TIOP, INC.

	CLIFFS UTAC HOLDING LLC

	IRONUNITS LLC

	LAKE SUPERIOR & ISHPEMING RAILROAD COMPANY

	MARQUETTE RANGE COAL SERVICE COMPANY

	PICKANDS HIBBING CORPORATION

	SILVER BAY POWER COMPANY

	UNITED TACONITE LLC

	 

	By:
	/s/ James D. Graham

	 
	Name:  James D. Graham

	 
	Title:     Secretary

.
	
		
	CLIFFS EMPIRE HOLDING, LLC

	CLIFFS MINING HOLDING, LLC

	CLIFFS MINING HOLDING SUB COMPANY

	CLIFFS PICKANDS HOLDING, LLC

	CLIFFS TIOP HOLDING, LLC

	CLIFFS TIOP II, LLC

	 

	By:
	/s/ James D. Graham

	 
	Name:  James D. Graham

	 
	Title:     General Counsel and Secretary

.

	
		
	CLIFFS MINING COMPANY

	EMPIRE IRON MINING PARTNERSHIP
  By:  The Cleveland-Cliffs Iron Company, as its manager

	NORTHSHORE MINING COMPANY

	THE CLEVELAND-CLIFFS IRON COMPANY

	TILDEN MINING COMPANY L.C.
  By:  The Cleveland-Cliffs Iron Company, as its manager

	 

	By:
	/s/ James D. Graham

	 
	Name:  James D. Graham

	 
	Title:     Executive Vice President, Chief Legal Officer & Secretary

[Signature Page to Registration Rights Agreement]

The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date first above written:
	
		
	GOLDMAN SACHS & CO. LLC
as the Initial Purchaser

	 

	By:
	/s/ Douglas Buffone

	 
	Name:  Douglas Buffone

	 
	Title:     Managing Director

[Signature Page to Registration Rights Agreement]Blueprint

Exhibit 10.6

 

SUBLEASE AGREEMENT

 

This
Sublease Agreement (“Sublease”) is entered into as of
this 9th 
day of May, 2019 (“Effective
Date”), by and between Cardinal Health 121, LLC, a Delaware
limited liability company (hereinafter “Sublandlord”) and Rekor Systems, Inc., a Delaware
corporation (hereinafter “Subtenant”).

 

Recitals

 

A. Sublandlord has
leased from Exeter 7164 Columbia
Gateway, LLC, a Delaware limited liability (hereinafter
“Landlord”),
certain premises, containing approximately 31,241 rentable square
feet of floor area known as Suites 100, 300, and 400 in the
building located at 7172 Columbia Gateway Driveway, Columbia,
Maryland 21046 (such building hereinafter referred to as the
“Building,” and
such premises hereinafter referred to as the “Premises”) pursuant to the terms
of a certain lease agreement dated March 5, 2010 (hereinafter the
“Original
Lease”), as amended by that First Amendment to Lease
dated October 3, 2013 (hereinafter, the “First Amendment” and collectively
with the Original Lease and any other amendments or modifications,
hereinafter the “Lease”), a copy of which is
attached hereto as Exhibit
A.

 

 

B. Sublandlord is
willing to sublease to Subtenant a portion of the Premises
including approximately 8,738 rentable square feet of floor area in
Suite 400 (hereinafter the “Subleased Premises”) as depicted
on Exhibit B,
attached hereto, and Subtenant is willing to sublease the Subleased
Premises from Sublandlord subject and pursuant to the terms
hereinafter set forth.

 

Agreement

 

It is
mutually agreed:

 

Section
1. Subleased Premises. Sublandlord
hereby subleases the Subleased Premises to Subtenant, together with
all obligations and all parking and other rights attributable to
the Subleased Premises under the Lease, if any, and Subtenant
hereby subleases the Subleased Premises and such obligations and
rights from Sublandlord. Subtenant has had an opportunity to
inspect the Subleased Premises and accepts it in their “AS
IS” condition. Sublandlord shall have no obligation to
undertake any improvements, alterations, or maintenance obligations
on behalf of Subtenant, provided, however, Sublandlord shall notify
Landlord of any maintenance deficiencies or repair obligations of
Landlord under the Lease within two (2) business days after
Subtenant notifies Sublandlord of such deficiencies. Except as
otherwise expressly stated in this Sublease, Subtenant shall be
responsible for performing all obligations of Sublandlord owed to
Landlord under the terms of the Lease with respect to the
maintenance and repairs of the Subleased Premises. Sublandlord
covenants that Subtenant may peaceably and quietly enjoy the
Subleased Premises without disturbance by Sublandlord or any person
claiming by, through or under Sublandlord, subject nevertheless to
the terms and conditions of this Sublease and to the Lease and any
other leases, mortgages, or other matters to which this Sublease is
subordinate.

 

Section
2. Term. The term of this Sublease
(“Term”) shall
commence on the later of (i) May 1, 2019 or (ii) the date
Sublandlord tenders possession of the Subleased Premises
to

 

 

1

 

 

Section
3. Subtenant (the
“Commencement
Date”) and shall expire August 31, 2021, unless sooner
terminated as provided in this Sublease (the “Termination Date”). In no event
shall Subtenant have any right to extend the Term beyond the term
of the Sublease. Within thirty (30) days of the Commencement Date,
Sublandlord and Subtenant shall execute a commencement date
certificate substantially in the form of Exhibit G, attached hereto (the
“Commencement Date Certificate”).

 

Section
4. Annual Base Rent. Commencing on
the Commencement Date and throughout the Term, Subtenant shall pay
to Sublandlord monthly base rent (“Base Rent”) for the Subleased
Premises at the rate per month set forth in the table below.
Commencing on the anniversary of the Commencement Date (and if the
Commencement Date is not the first day of the month, then the first
day of the calendar month in which the Commencement Date occurs),
and continuing for every twelve (12) month period thereafter, Base
Rent shall increase in accordance with the schedule listed in the
table below. If the Commencement Date is not the first day of the
calendar month, the monthly installment of Base Rent payable by
Subtenant shall be prorated on a day for day basis in accordance
with the terms of Section 4.1 of the Lease. Base Rent shall be paid
monthly in advance, on or before the first business day of every
calendar month throughout the Term in accordance with the following
schedule:

 

	

Lease
Year

	

Annual
Base Rent per Rentable Square Foot

	

Annual
Base Rent Total

 

	

Monthly
Base Rent Payment Totals

	

Year
1

	

$16.50

	

 $144,177.00

	

 $12,014.75

	

Year
2

	

$17.16

	

 $149,944.08

	

 $12,495.34

	

Start
of Year 3 through the Termination Date

	

$17.85

	

 $155,973.30

	

 $12,997.78

 

Sublandlord and
Subtenant hereby acknowledge that the Base Rent payable pursuant to
this Section 3 includes Subtenant’s proportionate share of
Tenant’s Share of Operating Expense Increases, Real Property
Taxes, utility charges, and all other charges payable by
Sublandlord under the Lease for the Subleased
Premises.

 

Section
5. Base Rent Abatement Period.
Notwithstanding anything to the contrary contained in this
Sublease, provided that Subtenant is not in default of its
obligations under this Sublease prior to or during the Base Rent
Period (as such term is defined hereunder), commencing on the
Commencement Date and continuing throughout the first (1st)
sixty-one (61) days of the Term of this Sublease (the
“Base Rent Abatement
Period”), Base Rent shall be abated by an amount equal
to one hundred percent (100%) of the Base Rent otherwise
due.

 

Section
6. Advanced Rent Payment. Upon the
execution and delivery of the Sublease, Subtenant shall pay to
Sublandlord an amount equal to $25,012.53 ("Advanced Rent Payment"), comprised
collectively of the installment of the Base Rent due for the first
(1st) full calendar month of the Term and the installment of the
Base Rent due for the last full calendar month of the Term
("Advanced Rent Payment").
The Advanced Rent Payment shall be applied to the first and last
monthly installments of Base Rent, respectively, coming due under
this Sublease.

 

 

2

 

 

 

Section
7. Utilities and Janitorial
Services. Charges for the utility services consumed by
Subtenant in or at the Subleased Premises during the Term
(including electricity, and natural gas provided by Landlord) shall
be included in the Base Rent. All Building services and utility
services (to the extent applicable) shall be provided in accordance
with the terms of Section 11 of the Lease. Sublandlord shall not be
liable to Subtenant for or any interruption or termination of
utility services. Subtenant shall provide, at its own expense, any
janitorial services it may use or require for the Subleased
Premises. Subtenant shall not exceed the occupancy density ratio
allocated to the Subleased Premises in accordance with Section 11.2
of the Lease during the Term. In the event Subtenant exceeds such
density ratio in connection with its use of the Subleased Premises,
Subtenant acknowledges and agrees that Subtenant shall be solely
liable and responsible for all of the obligations and covenants of
the Tenant under Section 11.2 of the Lease occasioned by such
excessive usage, including without limitation, all costs and
expenses in connection with any additional services and utilities
supplied to the Subleased Premises, any installation of additional
systems and equipment serving the Subleased Premises, and any
repair to Subleased Premises due to damage or wear and tear. To the
extent Landlord does not provide any service to Sublandlord under
the Lease that are not otherwise reimbursed as Operating Expenses,
Subtenant shall contract directly with the service provider for
such services (which shall include, but shall not be limited to
telecommunications services).

 

Sublandlord agrees,
upon Subtenant’s request, to use reasonable efforts
(excluding litigation or other adversarial proceedings), at
Subtenant’s expense, (a) to cause Landlord to provide any
Building services contemplated under the Lease to be provided to
Subtenant, or (b) to obtain Landlord’s consent or approval
under the Lease whenever required by the Lease, including promptly
requesting such consent or approval from Landlord. Sublandlord and
Subtenant hereby agree that reasonable efforts shall include,
without limitation, Sublandlord promptly (x) providing written
notice to Landlord (or oral notice if permitted under the terms of
the Lease) after Sublandlord receives notice from Subtenant
hereunder, (y) providing Subtenant with copies of written notices
or written responses received from Landlord relating to the
Building services or any requested consents or approval, and (z)
otherwise keeping Subtenant reasonably informed as to
communications with Landlord relating to the Sublease Premises and
the use thereof, the Building services and any requested consents
or approvals hereunder or under the Lease.

 

Section
8. Use of Subleased Premises.
Subtenant shall use the Subleased Premises for general office use
only in conformance with the terms of the Lease, and for no other
purpose. Subtenant shall have no right to erect or change any
Building Signage without the express written consent of
Sublandlord, which consent shall not be unreasonably withheld,
conditioned, or delayed, provided however, Sublandlord’s
consent shall be subject to and conditioned upon Landlord’s
express consent in accordance with the terms of the Lease.
Subtenant shall have no right to use any existing external or
backup generator currently used by Sublandlord at the Subleased
Premises.

 

Section
9. Subordination of Sublease. This
Sublease shall be subject to and subordinate to the terms of the
Lease. Upon the termination of the Lease for any reason, this
Sublease shall automatically terminate and Subtenant shall vacate
the Subleased Premises in accordance with the requirements for
surrender of the Premises by the Tenant under Section 7.2 of the
Lease.

 

 

 

3

 

 

 

Section
10. Alterations and Improvements.
Notwithstanding any terms in the Lease to the contrary, Subtenant
may not make or permit to be made, alterations or improvements to
the Subleased Premises (including without limitation,
telecommunications, data transmission and other wiring), without
the prior written consent of Sublandlord, which consent shall not
be unreasonably withheld, conditioned, or delayed, provided
however, Sublandlord’s consent shall be subject to and
conditioned upon Landlord’s express consent in accordance
with the terms of the Lease. All such alterations or improvements
to be performed by Subtenant, including any work requested by
Subtenant as necessary for Subtenant to prepare the Subleased
Premises for its occupancy as approved and described in the work
letter attached as Schedule I to Exhibit C, and as detailed in
the drawings from Banta Campbell Architects, Inc. and attached as
Schedule I to Exhibit
C (“Subtenant's
Improvements”), shall be made in accordance with the
express terms of the Lease and shall be subject to all approval or
removal requirements contained in the Lease. At the time of
Sublandlord’s and Landlord’s approval of any
alterations or improvements in accordance with the terms of this
Sublease, Sublandlord or Landlord shall notify Subtenant in writing
whether or not Subtenant will be required to remove any such
alterations or improvements prior to the expiration of the Term and
restore any portion of the Subleased Premises to its original
condition. Subtenant shall promptly pay all costs and expenses
attributable to any and all alterations and improvements and shall
indemnify Sublandlord and Landlord against any (i) mechanics' liens
or other liens or claims filed or asserted as a result thereof and
against any costs related thereto or (ii) expenses which may be
incurred as a result of building code violations attributable to
such alterations or improvements. Subtenant shall promptly repair
any damage to the Subleased Premises or to the Building caused by
any and all alterations or improvements. Subtenant shall indemnify
Sublandlord and Landlord for any claims, causes of action, or
damages arising from or associated with such alterations.
Subtenant’s obligation to indemnify Landlord and Sublandlord
pursuant to this Section 9 shall survive the termination of this
Sublease. Unless Sublandlord otherwise requires removal by
Subtenant during the Term, any alterations or improvements to the
Subleased Premises, except movable furniture and equipment and
trade fixtures, shall become the property of Sublandlord, and shall
not be removed by Subtenant.

 

Section
11. Existing Personal Property.
Subtenant shall have the right to use Sublandlord’s furniture
and equipment ("Personal
Property") listed on Exhibit D at no additional cost
and expense to Subtenant during the Term. Sublandlord does not
warrant the suitability of the Personal Property and Subtenant
shall accept such Personal Property in its “AS IS”
condition with all faults. Subtenant shall maintain the Personal
property in good condition, subject to reasonable wear and tear
from regular use. Sublandlord shall have no obligation or liability
for the repair or replacement of the Personal Property. Subtenant
shall have the right to relocate and modify the Personal Property,
provided however, the Personal Property shall not be removed from
the Subleased Premises without Sublandlord’s express written
consent, which consent shall not be unreasonably withheld,
conditioned or delayed. In the event Sublandlord consents to the
removal of any of the Personal Property from the Subleased Premises
during the Term, then: (i) such removal and storage of the Personal
Property shall be at Subtenant’s sole cost and expense; (ii)
Subtenant shall be solely responsible for any repair or replacement
of the Personal Property occasioned by such removal; and (iii)
Sublandlord shall continue to own all such Personal Property during
the Term, subject to the automatic transfer of the Personal
Property to Subtenant described herein. Upon the expiration of the
Term, provided that Subtenant is not in default of its obligations
under this Sublease, the Personal Property shall automatically be
transferred and conveyed to Subtenant for an amount equal to $1.00.
Sublandlord shall have the right to provide a bill of sale to
Subtenant to reflect such sale. After such transfer of the Personal
Property as provided herein, Subtenant shall
thereafter be solely responsible for removing the Personal Property
following its occupancy of the Subleased Premises in accordance
with the terms of the Lease.

 

4

 

 

Section
12. Sublandlord Representations.
Sublandlord represents and warrants to Subtenant that to the best
knowledge of Sublandlord, neither Landlord nor Sublandlord is in
default in the performance of any covenant, agreement or condition
contained in the Lease, and the Lease is in full force and
effect.

 

Section
13. Parking. Subject to the use
restrictions expressly stated in Section 16.1 of the Lease, during
the Term, Subtenant shall have the non-exclusive right to use sixty
(60) unreserved parking spaces allocated to Sublandlord under the
Lease, subject to the rights of any existing subtenant(s). The
unreserved parking spaces allocated to Sublandlord under the Lease
are shaded in yellow on the parking site plan attached hereto as
Exhibit E (the
“Parking Site
Plan”).

 

Section
14. Assignment or Subletting.
Subtenant shall not assign this Sublease or any estate or interest
therein or right of occupancy thereunder (including any mortgage or
other collateral assignment) or sublet the Subleased Premises or
any part thereof without the prior written consent of Sublandlord
and Landlord, as may be required under the Lease, which consent
shall not be unreasonably withheld, conditioned, or delayed,
provided however, Sublandlord’s consent shall be subject to
and conditioned upon Landlord’s express consent in accordance
with the terms of the Lease.

 

Section
15. Waiver of Subrogation. Any
provision of the Lease with respect to the waiver of subrogation
shall apply under this Sublease, except that
“Sublandlord” shall be substituted for
“Landlord” and “Subtenant” shall be
substituted for “Tenant.” In addition to the foregoing,
any obligation under Section 8.4 of the Lease for Tenant to waive
any rights of subrogation with respect to claims against Landlord
shall apply to Subtenant, and Subtenant affirmatively waives and
herby releases any right of recovery against Landlord in accordance
with the requirements of Section 8.4 of the Lease.

 

Section
16. Insurance. Subtenant shall
maintain with respect to the Subleased Premises all insurance
required to be maintained by Sublandlord pursuant to the Lease.
Such insurance shall name Sublandlord as an additional insured,
and, if any of such insurance is required by the Lease to cover
Landlord or anyone else or to name Landlord or anyone else as an
additional insureds, it shall also be required to cover Landlord
and such others and name Landlord and such others as an additional
insureds. Subtenant shall provide certificates of insurance to
Sublandlord prior to taking occupancy of the Subleased Premises and
upon renewals of such policies. Subtenant shall endeavor to provide
a thirty (30) day written notice of any cancellation prior to the
policy(ies) expiration date. If Subtenant should fail to comply
with the foregoing requirements relating to insurance, Landlord and
Sublandlord shall have the right, but not the obligation, to obtain
such insurance on Subtenant's behalf, in which event Subtenant
shall reimburse Landlord and/or Sublandlord, as the case may be, on
demand for all reasonable costs and expenses incurred by such party
in obtaining such insurance.

 

Section
17. Indemnification. Without
limiting any specific agreement of Subtenant to indemnify, defend
and/or hold Sublandlord harmless provided for in this Sublease,
Subtenant acknowledges and agrees that any and all provisions of
the Lease providing for the Tenant hereunder to indemnify, defend
and/or hold harmless the Landlord, and any and all waivers of the
tenant under
the Lease, are hereby incorporated into this Sublease and made by
Subtenant to, for the benefit of and in favor of Sublandlord. The
foregoing indemnity shall not relieve any insurance carrier of its
obligations under policies required to be carried by Subtenant
pursuant to the provisions of this Sublease to the extent that such
policies cover the results of such acts or conduct. In addition to
the foregoing, Subtenant agrees, to the fullest extent permitted by
law, to indemnify, defend, and hold Sublandlord and its employees,
partners, agents, contractors, and lenders harmless from and
against any and all loss, cost, expense, or liability (including,
without limitation, reasonable attorneys' fees, accountants' fees,
and court costs) resulting from any claims or causes of action
existing in favor of or asserted by any party arising out of or
relating to Subtenant's failure to perform any duties or
obligations imposed on Subtenant under this Sublease.

 

5

 

 

Section
18. Compliance with Lease. Except
as otherwise expressly provided under this Sublease, Subtenant
shall comply with all of the obligations imposed by the Lease on
Sublandlord, and Subtenant shall indemnify, defend and hold
harmless Sublandlord from any default by Subtenant under this
Sublease or the Lease. In the event of any conflict between the
terms of the Lease and this Sublease, the terms of this Sublease
shall control as between Sublandlord and Subtenant. Subtenant, its
employees, agents, licensees and visitors will at all times
faithfully observe and comply with the Rules and Regulations, as
set forth in Exhibit C of the Lease.

 

Section
19. Subtenant's Default. The
occurrence of any one or more of the following events shall be
deemed a default and breach of this Sublease by Subtenant (each an
“Event of
Default”):

 

A. Subtenant’s
failure to make any payment of Base Rent or any other payment
required to be made by Subtenant hereunder, as and when due which
failure shall continue for five (5) business days after receipt of
written notice from Sublandlord;

 

B. Subtenant’s
failure to perform or observe any term, condition, covenant or
obligation required to be performed or observed by it under this
Sublease (other than a default under Section 18.A of this
Sublease), for more than thirty (30) days after receipt of written
notice thereof from Sublandlord (or such longer period as may be
allowed under the terms of the Lease to cure such failure);
and

 

C. Subtenant’s
failure to perform or observe any term, condition, covenant or
obligation required to be performed or observed by Sublandlord
under the Lease, and such failure continues beyond any applicable
notice or cure period provided for in the Lease.

 

Any
occurrence under Section 18.A, Section 18.B, or Section 18.C of
this Sublease shall be deemed an event of default under the Lease
with respect to Subtenant under this Sublease. Upon the occurrence
of any Event of Default under this Sublease, Sublandlord shall have
all rights afforded to Landlord under the Lease.

 

Section
20. Security Deposit. Upon
Subtenant’s execution of this Sublease, Subtenant shall
deposit with Sublandlord one monthly installment of Base Rent in
the amount equal to $12,014.75 as the “Security Deposit” which shall be
retained by Sublandlord as security for Subtenant’s payment
of Base Rent, and performance of its other obligations under the
provisions of this Sublease. On the occurrence of an event of
default, Sublandlord shall be entitled, at its sole discretion, to
(a) apply any or all of such sum in payment of any Base Rent due
and unpaid, any expense
incurred by Sublandlord in curing any such event of default, and
any damages incurred by Sublandlord by reason of such event of
default (including but not limited to reasonable attorneys’
fees); or (b) retain any or all of such sum in liquidation of any
or all damages suffered by Sublandlord by reason of such default.
The Security Deposit shall not be applied to the last month’s
installment of Base Rent; rather, upon the expiration of this
Sublease, provided Subtenant is not in default of its obligations
hereunder, any of the Security Deposit then remaining shall be
returned to Subtenant within thirty (30) days after the Expiration
Date.

 

6

 

 

Section
21. Miscellaneous.

 

A. Waiver. One or more waivers of
any breach by Sublandlord of any covenant or condition of this
Sublease shall not be construed as a waiver of subsequent breach of
the same covenant or condition, and the consent or approval by
Sublandlord to or for any act by the other requiring consent or
approval shall not be deemed to render unnecessary consent or
approval to or for any subsequent similar act. No breach of a
covenant or condition of this Sublease shall be deemed to have been
waived by Sublandlord, unless such waiver is in writing signed by
Sublandlord.

 

B. Entire Agreement. This Sublease
and the Exhibits attached hereto set forth all of the covenants,
promises, agreements, conditions and understandings between
Sublandlord and Subtenant concerning the Subleased Premises and
there are no covenants, promises, agreements, conditions or
understandings, either oral or written, between them other than as
are herein set forth. No alteration, amendment, change, or addition
to this Sublease shall be binding upon Sublandlord or Subtenant
unless reduced to writing and signed by each party.

 

C. Notices. Any notice required or
permitted to be given under this Sublease or by law shall be deemed
to have been given if reduced to writing and delivered in person or
mailed by registered, certified mail, or overnight express mail,
postage prepaid to the party who is to receive such notice. Such
notice to Sublandlord and Subtenant shall be mailed to their
respective addresses set forth below. When so mailed, the notice
shall be deemed to have been given as of one (1) business day after
the date it was mailed if sent by overnight express mail or
courier, and three (3) business days after the date it was mailed
if sent by registered or certified mail. The address of the parties
may be changed by giving written notice thereof to the other
party.

 

	

Notices
to Subtenant:

	

Rekor
Systems, Inc.,

Attn:
Director of Administration

xxx
xxxxx xx

xxxx,
xx xxxxx

Email
xxxxx@rekorsystems.com

Telephone
xxx-xxx-xxxx

 

 

 

 

 

7

 

 

 

	

Notices
to Sublandlord:

	

Cardinal Health
121, LLC,

c/o
Cardinal Health, Inc.

7000
Cardinal Place

Dublin,
Ohio 43017

Attn:
Corporate Real Estate

 

D. Captions and Capitalized Terms.
The captions appearing in this Sublease are inserted only as a
matter of convenience and in no way define, limit, construe or
describe the scope or intent of such sections nor in any way affect
this Sublease. Capitalized terms used herein, if not otherwise
defined herein, shall have the meaning ascribed to such terms as
stated in the Lease.

 

E. Broker's Commissions. Each of
the parties represents and warrants that there are no claims for
brokerage commissions or finder's fees in connection with the
execution of this Sublease, other than CBRE, Inc. on behalf of
Sublandlord ("Broker"), and
that no other broker or finder procured or negotiated this Sublease
or is entitled to any commissions or fees in connection herewith.
Sublandlord will pay the Broker a commission pursuant to a separate
agreement. Sublandlord and Subtenant each shall indemnify and hold
the other harmless from and against any and all costs, expenses
(including reasonable attorneys' fees), and liabilities relating to
any compensation, commissions, or charges by any broker or agent
with whom the indemnifying party has had or claims to have had any
dealings.

 

F. Successors. All rights and
liabilities herein given to or imposed upon the respective parties
hereto shall extend to and bind the several respective successors
and assigns of said parties, subject to the restrictions on
assignment contained herein; and if there shall be more than one
(1) person or entity which makes up a party, they shall be bound
jointly and severally by the terms, covenants and agreements
herein.

 

G. Surrender of the Premises. Upon
the expiration or earlier termination of this Sublease, or upon the
exercise by Sublandlord of its right to reenter the Subleased
Premises without terminating this Sublease, Subtenant shall
immediately surrender the Subleased Premises to Sublandlord,
together with all alterations, improvements and other property as
provided elsewhere herein, in broom-clean condition and in good
order, condition and repair, except for ordinary wear and tear and
damage which Subtenant is not obligated to repair, failing which
Sublandlord may restore the Subleased Premises to such condition at
Subtenant's expense. Upon such expiration or termination, Subtenant
shall have the right to remove its personal property and trade
fixtures. Subtenant shall promptly repair any damage caused by any
such removal, and shall restore the Subleased Premises to the
condition existing prior to the installation of the items so
removed.

 

H. Holding Over. Subtenant shall
have no right to occupy the Subleased Premises or any portion
thereof after the Termination Date or the earlier termination of
this Sublease. In the event that Subtenant shall remain in
possession of the Subleased Premises following the Termination
Date, Subtenant shall indemnify, save, protect, defend and hold
Sublandlord and Landlord harmless from and against all cost,
expense, and damages including, without limitation, attorneys' fees
and consequential damages, arising from such holdover. In the event
of such holdover, such occupancy shall be a tenancy from month to
month upon all terms and conditions of this Sublease pertaining to
the obligations of Subtenant, except that, Subtenant shall pay to
Sublandlord an amount as monthly any payments
Base Rent equal to the great of (i) all sums payable by Sublandlord
to Landlord under the Lease as a result of such holdover; or (ii)
two hundred percent (200%) of the monthly installment of the Base
Rent payable under this Sublease for the period immediately prior
to the holdover period. In the event of any holdover, Sublandlord
may exercise all remedies available to Sublandlord in an Event of
Default under this Sublease.

 

8

 

 

I. Authority. Sublandlord and
Subtenant mutually represent and warrant that each has the
authority and power to enter into this Sublease and that this
Sublease constitutes a legal, valid and binding obligation of both
Sublandlord and Subtenant.

 

J. Landlord Consent to Sublease.
The parties acknowledge that this Sublease is expressly contingent
upon each of Subtenant and Sublandlord receiving and approving, in
their sole discretion, an instrument executed by Landlord
confirming its consent to this Sublease and such other matters as
either party may require, in substantially the same form attached
hereto as Exhibit F
(the “Consent”).
Sublandlord shall use commercially reasonable efforts to obtain
such Consent. In the event Landlord does not so Consent within
thirty (30) days of the Effective Date, either party may terminate
this Sublease upon written notice to the other party after the
expiration of such 30-day period, but before Landlord delivers the
Consent. If this Sublease is so terminated, Sublandlord shall
promptly return any prepaid Base Rent and the Security Deposit to
Subtenant.

 

K. Applicable Law. This Sublease
shall be governed by and construed in accordance with the laws of
the State of Maryland.

 

L. Counterparts. This Sublease may
be executed in one or more counterparts, each of which shall be
deemed to be an original Sublease, but all of which shall
constitute but one and the same Sublease. All parties hereto may
rely upon emailed signatures (including signatures in Portable
Document Format) as if such signatures were originals. All parties
hereto agree that an emailed signature page may be introduced into
evidence in any proceeding arising out of or related to this
Sublease as if it were an original signature page.

 

 

(Signatures on following page)

 

 

9

 

 

 

 

IN
WITNESS WHEREOF, Sublandlord and Subtenant have caused this
Sublease to be signed by their duly authorized officers or agents
as of the day and year first above written.

 

 

 

SUBLANDLORD:

 

CARDINAL HEALTH 121, LLC,

a
Delaware limited liability company

 

By:
/s/ Marino
Colatruglio

Name:
Marino Colatruglio

Its:
Authorized Signatory

 

 

 

SUBTENANT:

 

REKOR SYSTEMS, INC.,

a
Delaware corporation

 

By:
/s/ Robert
Berman

Name:
Robert Berman

Its:
Authorized Signatory

 

Drafted
and approved as to form by:

 

/s/ Karim A. Ali

Karim
A. Ali

Porter
Wright Morris & Arthur LLP

 

 

 

10

 

EXHIBIT A

 

Lease

 

Omitted.

 

 

 

 

 

 

EXHIBIT B

 

Subleased Premises

 

Omitted.

 

 

 

 

EXHIBIT C

 

Subtenant’s Improvements Work Letter

 

This
Subtenant’s Improvements Work Letter shall set forth the
terms and conditions relating to the construction of the
Subtenant’s Improvements in the Subleased
Premises.

 

SECTION 1

 

Lease
Requirements.                                                      In
addition to any requirements under the Sublease and this Exhibit C,
all the Subtenant’s Improvements shall be completed by
Subtenant in accordance with the requirements applicable to the
Tenant as set forth in Section 7.3 of the Lease (Alterations and
Additions); provided that if any approval or consent is required
from Landlord under Section 7.3 of the Lease, for purposes of this
Sublease such approval or consent shall require the approval and/or
consent of Sublandlord and Landlord.

 

SECTION 2

 

Subtenant
Obligations.                                                      Any
Subtenant’s Improvements in or
about the Subleased Premises that Subtenant shall desire to make
shall be presented to Sublandlord and Landlord in written form,
with plans and specifications which are sufficiently detailed to
obtain a building permit, provided a building permit is required
under applicable law, regulations or ordinances. If Sublandlord and
Landlord each consent to the Subtenant’s Improvements, such
consent shall be conditioned upon Subtenant acquiring a building
permit from the applicable governmental agencies, furnishing a copy
thereof to Sublandlord and Landlord prior to the commencement of
the work, and compliance by Subtenant with all conditions of said
permit in a prompt and expeditious manner. Subtenant shall
not commence the Subtenant’s Improvements until Sublandlord
and Landlord have approved in writing Subtenant’s plans and
specifications. To the extent a building permit is required under applicable law,
regulations or ordinances, Sublandlord agrees to reasonably
cooperate with Subtenant in obtaining the same at no cost or
expense to Sublandlord. Subtenant
shall have the right to use its own, architect, engineers, and
contractors, subject to Sublandlord’s and Landlord’s
review and approval. The Subtenant’s Improvements
shall be completed in a good workmanlike manner and in accordance
with the terms of the Lease. Within thirty (30) days of
Subtenant’s substantial completion of Subtenant’s
Improvements, Subtenant shall submit to Sublandlord (i) as-built
drawings of the Subleased Premises in CAD or other electronic form
reasonably acceptable to Sublandlord; and (ii) final waivers of
liens, owner’s sworn statements, contractor’s sworn
statements, and architects’ certificates in such form as may
be reasonably required by Sublandlord from all parties performing
labor or supplying materials or services in connection with the
Subtenant’s Improvements, showing that all of said parties
have been compensated in full and waiving all liens in connection
with the Subleased Premises and Building.

 

 

 

 

SCHEDULE I

 

TO EXHIBIT C

 

Subtenant’s Drawings

 

Omitted.

  

 

 

 

 

EXHIBIT D

 

Personal Property

 

Omitted.

 

 

 

 

EXHIBIT E

 

Parking Site Plan

 

Omitted.

 

 

 

 

 

 

EXHIBIT F

 

FORM OF

 

LANDLORD’S CONSENT TO SUBLEASE

 

 

THIS
CONSENT TO SUBLEASE (the “Consent”) is made this ____
of ______________, 2019, by EXETER
7164 COLUMBIA GATEWAY, LLC, a Delaware limited liability
company (“Master Landlord”); CARDINAL HEALTH 121, LLC, a Delaware
limited liability company (“Sublessor”); and
REKOR SYSTEMS, INC., a
Delaware corporation (“Sublessee”).

 

WITNESSETH:

 

A.           Master
Landlord and Sublessor are parties to that certain lease agreement
(hereinafter the “Original Lease”), as amended by that
First Amendment to Lease dated October 3, 2013 (hereinafter, the
“First Amendment” and collectively with the Original
Lease and any other amendments or modifications, hereinafter the
“Master Lease”) for certain premises containing
approximately 31,241 rentable square feet of floor area known as
Suites 100, 300, and 400 in the building located at 7172 Columbia
Gateway Driveway, Columbia, Maryland 21046 (the
“Premises”), as more fully described in the Master
Lease.

 

B.           Sublessor
desires to enter into a sublease agreement with Sublessee
(“Sublease Agreement”), whereby Sublessor will sublease
to Sublessee a portion of the Premises including approximately
8,738 rentable square feet of floor area in Suite 400 and has
requested that Master Landlord consent thereto.

 

NOW,
THEREFORE, in consideration of the foregoing recitals, which are
true and correct and incorporated herein by reference, and for the
mutual covenants set forth herein, the parties hereto, intending to
be legally bound, hereby agree as follows:

 

1.           A
true, correct and complete copy of the Sublease Agreement between
Sublessor and Sublessee is attached hereto as Exhibit
“A”.

 

2.           Master
Landlord hereby consents to the sublease of the premises described
in the Sublease Agreement to Sublessee. In the event that Sublessor
and Sublessee desire to modify or amend the Sublease Agreement in
any way, Sublessor and Sublessee shall be required to obtain Master
Landlord's consent thereto, and any further sublease of the
Premises shall require Master Landlord’s
consent.

 

3.           The
parties hereto agree that: (i) this Consent does not constitute
approval by Master Landlord of the terms, conditions and/or
requirements of the Sublease Agreement but only approval as to the
sublet of the subleased premises by Sublessor to Sublessee; (ii)
Master Landlord’s consent to the Sublease Agreement shall not
create privity of contract between Master Landlord and Sublessee
with respect to the Sublease Agreement; (iii) the Sublease
Agreement is subject to and subordinate to all provisions of the
Master Lease and Sublessor shall remain liable for performance of
all obligations and liabilities under the Master Lease; (iv) the
Sublease Agreement shall in no way whatsoever expand the liability
or obligations of Master Landlord; (v) any termination of the
Master Lease for any cause whatsoever, shall at Master Landlord's
sole option in Master Landlord’s absolute discretion, either
(a) immediately terminate the Sublease Agreement, or (b) operate as
an assignment to Master Landlord of the Sublease Agreement as if
Master Landlord was the sublessor thereunder; (vi) Sublessor's
obligation to indemnify and hold Master Landlord harmless as set
forth in the Master Lease shall include, but not be limited to,
indemnification from any claims arising from the use of the
Property, or any portion thereof, by Sublessee, its agents,
employees, invitees, representatives, or contractors, or any
negligence or willful misconduct by any of said parties, and
(vii) this Consent shall not be deemed an expressed or implied
affirmation or representation of any factual statements or
recitations contained in the Sublease Agreement. Further, nothing
herein shall be deemed as Master Landlord’s consent or
approval to any planned or anticipated improvements or alterations
to the Premises and any such improvements must be consented to and
performed in accordance with the Master Lease. In the event of a
Sublessor default under the Master Lease, Master Landlord may
elect, in its sole discretion, by providing written notice to
Sublessee to have Sublessee pay all sums due under the Sublease
Agreement directly to Master Landlord and upon receipt of such
notice, Sublessee shall, notwithstanding anything to the contrary
in the Sublease Agreement and without being in default of the
Sublease Agreement pay such sums directly to Master
Landlord.

 

 

 

4.           Any
notice or communication with any party hereto that such party may
desire or be required to give to any other party under or with
respect to this Consent shall be given in the manner required by
the notice provisions of the Master Lease. The current notice
addresses of the parties are as follows:

 

Master
Landlord:

 

101
West Elm Street, Suite 600

Conshohocken, PA
19428

Attn:
Chief Financial Officer

 

Sublessor:

 

Cardinal Health
121, LLC

c/o
Cardinal Health, Inc.

7000
Cardinal Place

Dublin,
Ohio 43017

Attn:
Corporate Real Estate

 

Sublessee:

 

Rekor
Systems, Inc.,

Attn:
Director of Administration

xxx
xxxxx xx

xxxx,
xx xxxxx

Email
xxxxx@rekorsystems.com

Telephone
xxx-xxx-xxxx

 

5.           Sublessee
shall provide Master Landlord and Master Landlord shall provide
Sublessee with a copy of any notices of default that Sublessee or
Master Landlord may send to Sublessor pursuant to the terms of the
Sublease Agreement and Master Lease Agreement.

 

[Remainder of page left intentionally blank.]

[Signatures on following page]

 

 

 

 

IN
WITNESS WHEREOF, the parties have executed this Consent as of the
date first set forth hereinabove.

 

	
 

	

MASTER LANDLORD:

	
 

	
 

	
 

	

EXETER 7164 COLUMBIA GATEWAY, LLC,

a
Delaware limited liability company

	
 

	
 

	
 

	

By: Exeter Operating Partnership III, L.P.,

      a
Delaware limited partnership,

      its
sole member

	
 

	
 

	
 

	

By: Exeter Operating Partnership III GP LLC,

      a
Delaware limited liability company,

      its
sole general partner

 

	
 

	
 

	
 

	

By: Exeter Industrial REIT III LLC,

      a
Delaware limited liability company,

      its
sole member

	
 

	
 

	
 

	

By:
______________________________

Name:
______________________________

Title:
______________________________

	
 

	
 

	
 

	
 

	
 

	
SUBLESSOR:

	
 

	
 

	
 

	
CARDINAL
HEALTH 121, LLC

	
 

	
a Delaware limited
liability company

	
 

	
 

	
 

	
By:____________________________________

	
 

	
Name: Marino
Colatruglio

	
 

	
Its: Authorized
Signatory

	
 

	
 

	
 

	
SUBLESSEE:

	
 

	
 

	
 

	
REKOR
SYSTEMS, INC.,

	
 

	

a
Delaware corporation

	
 

	

By:
______________________________

Name:
Robert Berman

Title:
Authorized Signatory

 

	

Drafted
and approved

as
to form by: 

 

 

   
_____________________________
                                    

Karim
A. Ali, Esq.

Porter
Wright Morris & Arthur LLP

 

 

 

 

 

 

 

 

 

EXHIBIT "A"

 

SUBLEASE AGREEMENT

 

 

 

 

 

EXHIBIT G

 

FORM OF

 

COMMENCEMENT DATE CERTIFICATE

 

 

 

This
Certificate, dated as of May __, 2019, is being provided pursuant
to the terms and provisions of that certain Sublease Agreement
dated May __, 2019 (the “Sublease”) between
Cardinal Health 121, LLC, a
Delaware limited liability company (hereinafter “Sublandlord”) and Rekor Systems, Inc., a Delaware
corporation (hereinafter “Subtenant”)

 

Sublandlord
and Subtenant hereby confirm and certify as follows:

 

1.

Sublandlord has
delivered the Subleased Premises in accordance with the Lease as of
May __, 2019.

 

2.

The Commencement
Date of the Sublease is May __, 2019.

 

3.

The Termination
Date of the Term of the Sublease is August 31, 2021.

 

 

 

	

SUBLANDLORD

 

Cardinal Health 121, LLC,

a
Delaware limited liability company

 

By:___________________________________

Name:
Marino Colatruglio

Title:
Authorized Signatory

	

SUBTENANT

 

Rekor Systems, Inc.,

a
Delaware corporation

 

By:_________________________________

Name:
Robert Berman

Title:
Authorized Signatory

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