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  Exhibit 4.2    
    

 

 GLOBAL PARTNERS LP  

 GLP FINANCE CORP.  

 as Issuers,  

 any Subsidiary Guarantors party hereto,  

 and  

                                    ,  

 as Trustee  

 INDENTURE  

 Dated as of                         

 Debt Securities  

 

 
 

  CROSS-REFERENCE TABLE    
    

 

 

						
	TIA Section

 
	 	Indenture Section 
	 310
	 	 (a)
	 	7.10
	 	 
	 	 (b)
	 	7.10
	 	 
	 	 (c)
	 	N.A.
	 311
	 	 (a)
	 	7.11
	 	 
	 	 (b)
	 	7.11
	 	 
	 	 (c)
	 	N.A.
	 312
	 	 (a)
	 	5.01
	 	 
	 	 (b)
	 	5.02
	 	 
	 	 (c)
	 	5.02
	 313
	 	 (a)
	 	5.03
	 	 
	 	 (b)
	 	5.03
	 	 
	 	 (c)
	 	13.03
	 	 
	 	 (d)
	 	5.03
	 314
	 	 (a)
	 	4.05
	 	 
	 	 (b)
	 	N.A.
	 	 
	 	 (c)(1)
	 	13.05
	 	 
	 	 (c)(2)
	 	13.05
	 	 
	 	 (c)(3)
	 	N.A.
	 	 
	 	 (d)
	 	N.A.
	 	 
	 	 (e)
	 	13.05
	 	 
	 	 (f)
	 	N.A.
	 315
	 	 (a)
	 	7.01
	 	 
	 	 (b)
	 	6.07 & 13.03
	 	 
	 	 (c)
	 	7.01
	 	 
	 	 (d)
	 	7.01
	 	 
	 	 (e)
	 	6.08
	 316
	 	 (a) (last sentence)
	 	1.01
	 	 
	 	 (a)(1)(A)
	 	6.06
	 	 
	 	 (a)(1)(B)
	 	6.06
	 	 
	 	 (a)(2)
	 	9.01(d)
	 	 
	 	 (b)
	 	6.04
	 	 
	 	 (c)
	 	5.04
	 317
	 	 (a)(1)
	 	6.02
	 	 
	 	 (a)(2)
	 	6.02
	 	 
	 	 (b)
	 	4.04
	 318
	 	 (a)
	 	13.07

 

 

N.A.
means Not Applicable 

NOTE:    This
Cross-Reference table shall not, for any purpose, be deemed part of this Indenture. 

 

 

 

 
 

  TABLE OF CONTENTS    
    

 

 

							
	 
	 	 
	 	Page 	 
	 
	 	 ARTICLE I
	 	 	 	 
	 
	 	 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	 Section 1.01
	 	 Definitions
	 	 	

1	 
	 Section 1.02
	 	 Other Definitions
	 	 	6	 
	 Section 1.03
	 	 Incorporation by Reference of Trust Indenture Act
	 	 	6	 
	 Section 1.04
	 	 Rules of Construction
	 	 	6	 
	 
	 	 ARTICLE II
	 	 	 	 
	 
	 	 DEBT SECURITIES
	 	 	 	 
	 Section 2.01
	 	 Forms Generally
	 	 	

7	 
	 Section 2.02
	 	 Form of Trustee's Certificate of Authentication
	 	 	7	 
	 Section 2.03
	 	 Principal Amount; Issuable in Series
	 	 	8	 
	 Section 2.04
	 	 Execution of Debt Securities
	 	 	9	 
	 Section 2.05
	 	 Authentication and Delivery of Debt Securities
	 	 	10	 
	 Section 2.06
	 	 Denomination of Debt Securities
	 	 	11	 
	 Section 2.07
	 	 Registration of Transfer and Exchange
	 	 	11	 
	 Section 2.08
	 	 Temporary Debt Securities
	 	 	12	 
	 Section 2.09
	 	 Mutilated, Destroyed, Lost or Stolen Debt Securities
	 	 	13	 
	 Section 2.10
	 	 Cancellation of Surrendered Debt Securities
	 	 	13	 
	 Section 2.11
	 	 Provisions of the Indenture and Debt Securities for the Sole Benefit of the Parties and the Holders
	 	 	14	 
	 Section 2.12
	 	 Payment of Interest; Interest Rights Preserved
	 	 	14	 
	 Section 2.13
	 	 Securities Denominated in Dollars
	 	 	14	 
	 Section 2.14
	 	 Wire Transfers
	 	 	14	 
	 Section 2.15
	 	 Securities Issuable in the Form of a Global Security
	 	 	14	 
	 Section 2.16
	 	 Medium Term Securities
	 	 	16	 
	 Section 2.17
	 	 Defaulted Interest
	 	 	17	 
	 Section 2.18
	 	 CUSIP Numbers
	 	 	18	 
	 
	 	 ARTICLE III
	 	 	 	 
	 
	 	 REDEMPTION OF DEBT SECURITIES
	 	 	 	 
	 Section 3.01
	 	 Applicability of Article
	 	 	

18	 
	 Section 3.02
	 	 Notice of Redemption; Selection of Debt Securities
	 	 	18	 
	 Section 3.03
	 	 Payment of Debt Securities Called for Redemption
	 	 	19	 
	 Section 3.04
	 	 Mandatory and Optional Sinking Funds
	 	 	20	 
	 Section 3.05
	 	 Redemption of Debt Securities for Sinking Fund
	 	 	20	 
	 
	 	 ARTICLE IV
	 	 	 	 
	 
	 	 PARTICULAR COVENANTS OF THE ISSUERS
	 	 	 	 
	 Section 4.01
	 	 Payment of Principal of, and Premium, If Any, and Interest on, Debt Securities
	 	 	

21	 
	 Section 4.02
	 	 Maintenance of Offices or Agencies for Registration of Transfer, Exchange and Payment of Debt Securities
	 	 	22	 
	 Section 4.03
	 	 Appointment to Fill a Vacancy in the Office of Trustee
	 	 	22	 
	 Section 4.04
	 	 Duties of Paying Agents, etc. 
	 	 	22	 
	 Section 4.05
	 	 SEC Reports; Financial Statements
	 	 	23	 
	 Section 4.06
	 	 Compliance Certificate
	 	 	23	 

 

 ii

 
 

 

							
	 
	 	 
	 	Page 	 
	 Section 4.07
	 	 Further Instruments and Acts
	 	 	24	 
	 Section 4.08
	 	 Existence
	 	 	24	 
	 Section 4.09
	 	 Maintenance of Properties
	 	 	24	 
	 Section 4.10
	 	 Payment of Taxes and Other Claims
	 	 	24	 
	 Section 4.11
	 	 Waiver of Certain Covenants
	 	 	24	 
	 
	 	 ARTICLE V
	 	 	 	 
	 
	 	 HOLDERS' LISTS AND REPORTS BY THE TRUSTEE
	 	 	 	 
	 Section 5.01
	 	 Issuers to Furnish Trustee Information as to Names and Addresses of Holders; Preservation of Information
	 	 	

25	 
	 Section 5.02
	 	 Communications to Holders
	 	 	25	 
	 Section 5.03
	 	 Reports by Trustee
	 	 	25	 
	 Section 5.04
	 	 Record Dates for Action by Holders
	 	 	25	 
	 
	 	 ARTICLE VI
	 	 	 	 
	 
	 	 REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT
	 	 	 	 
	 Section 6.01
	 	 Events of Default
	 	 	

26	 
	 Section 6.02
	 	 Collection of Debt by Trustee, etc
	 	 	27	 
	 Section 6.03
	 	 Application of Moneys Collected by Trustee
	 	 	28	 
	 Section 6.04
	 	 Limitation on Suits by Holders
	 	 	29	 
	 Section 6.05
	 	 Remedies Cumulative; Delay or Omission in Exercise of Rights Not a Waiver of Default
	 	 	30	 
	 Section 6.06
	 	 Rights of Holders of Majority in Principal Amount of Debt Securities to Direct Trustee and to Waive Default
	 	 	30	 
	 Section 6.07
	 	 Trustee to Give Notice of Events of Defaults Known to It, but May Withhold Such Notice in Certain Circumstances
	 	 	30	 
	 Section 6.08
	 	 Requirement of an Undertaking to Pay Costs in Certain Suits under the Indenture or Against the Trustee
	 	 	31	 
	 
	 	 ARTICLE VII
	 	 	 	 
	 
	 	 CONCERNING THE TRUSTEE
	 	 	 	 
	 Section 7.01
	 	 Certain Duties and Responsibilities
	 	 	

31	 
	 Section 7.02
	 	 Certain Rights of Trustee
	 	 	32	 
	 Section 7.03
	 	 Trustee Not Liable for Recitals in Indenture or in Debt Securities
	 	 	33	 
	 Section 7.04
	 	 Trustee, Paying Agent or Registrar May Own Debt Securities
	 	 	33	 
	 Section 7.05
	 	 Moneys Received by Trustee to Be Held in Trust
	 	 	33	 
	 Section 7.06
	 	 Compensation and Reimbursement
	 	 	33	 
	 Section 7.07
	 	 Right of Trustee to Rely on an Officers' Certificate Where No Other Evidence Specifically Prescribed
	 	 	34	 
	 Section 7.08
	 	 Separate Trustee; Replacement of Trustee
	 	 	34	 
	 Section 7.09
	 	 Successor Trustee by Merger
	 	 	35	 
	 Section 7.10
	 	 Eligibility; Disqualification
	 	 	35	 
	 Section 7.11
	 	 Preferential Collection of Claims Against Issuers
	 	 	35	 
	 Section 7.12
	 	 Compliance with Tax Laws
	 	 	36	 

 

 iii

 
 

 

							
	 
	 	 
	 	Page 	 
	 
	 	 ARTICLE VIII
	 	 	 	 
	 
	 	 CONCERNING THE HOLDERS
	 	 	 	 
	 Section 8.01
	 	 Evidence of Action by Holders
	 	 	

36	 
	 Section 8.02
	 	 Proof of Execution of Instruments and of Holding of Debt Securities
	 	 	36	 
	 Section 8.03
	 	 Who May Be Deemed Owner of Debt Securities
	 	 	36	 
	 Section 8.04
	 	 Instruments Executed by Holders Bind Future Holders
	 	 	36	 
	 
	 	 ARTICLE IX
	 	 	 	 
	 
	 	 SUPPLEMENTAL INDENTURES
	 	 	 	 
	 Section 9.01
	 	 Purposes for Which Supplemental Indenture May Be Entered into Without Consent of Holders
	 	 	

37	 
	 Section 9.02
	 	 Modification of Indenture with Consent of Holders of Debt Securities
	 	 	39	 
	 Section 9.03
	 	 Effect of Supplemental Indentures
	 	 	40	 
	 Section 9.04
	 	 Debt Securities May Bear Notation of Changes by Supplemental Indentures
	 	 	40	 
	 
	 	 ARTICLE X
	 	 	 	 
	 
	 	 CONSOLIDATION, MERGER, SALE OR CONVEYANCE
	 	 	 	 
	 Section 10.01
	 	 Consolidations and Mergers of the Issuers
	 	 	

40	 
	 Section 10.02
	 	 Rights and Duties of Successor Company
	 	 	41	 
	 
	 	 ARTICLE XI
	 	 	 	 
	 
	 	 SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE; UNCLAIMED MONEYS
	 	 	 	 
	 Section 11.01
	 	 Applicability of Article
	 	 	

41	 
	 Section 11.02
	 	 Satisfaction and Discharge of Indenture; Defeasance
	 	 	41	 
	 Section 11.03
	 	 Conditions of Defeasance
	 	 	42	 
	 Section 11.04
	 	 Application of Trust Money
	 	 	43	 
	 Section 11.05
	 	 Repayment to Issuers
	 	 	43	 
	 Section 11.06
	 	 Indemnity for U.S. Government Obligations
	 	 	43	 
	 Section 11.07
	 	 Reinstatement
	 	 	43	 
	 
	 	 ARTICLE XII
	 	 	 	 
	 
	 	 SUBORDINATION OF DEBT SECURITIES AND GUARANTEE
	 	 	 	 
	 Section 12.01
	 	 Applicability of Article; Agreement to Subordinate
	 	 	

44	 
	 Section 12.02
	 	 Liquidation, Dissolution, Bankruptcy
	 	 	44	 
	 Section 12.03
	 	 Default on Senior Indebtedness
	 	 	44	 
	 Section 12.04
	 	 Acceleration of Payment of Debt Securities
	 	 	45	 
	 Section 12.05
	 	 When Distribution Must Be Paid Over
	 	 	45	 
	 Section 12.06
	 	 Subrogation
	 	 	45	 
	 Section 12.07
	 	 Relative Rights
	 	 	45	 
	 Section 12.08
	 	 Subordination May Not Be Impaired by Issuers
	 	 	46	 
	 Section 12.09
	 	 Rights of Trustee and Paying Agent
	 	 	46	 
	 Section 12.10
	 	 Distribution or Notice to Representative
	 	 	46	 
	 Section 12.11
	 	 Article XII Not to Prevent Defaults or Limit Right to Accelerate
	 	 	46	 
	 Section 12.12
	 	 Trust Moneys Not Subordinated
	 	 	46	 
	 Section 12.13
	 	 Trustee Entitled to Rely
	 	 	46	 
	 Section 12.14
	 	 Trustee to Effectuate Subordination
	 	 	47	 
	 Section 12.15
	 	 Trustee Not Fiduciary for Holders of Senior Indebtedness
	 	 	47	 
	 Section 12.16
	 	 Reliance by Holders of Senior Indebtedness on Subordination Provisions
	 	 	47	 

 

 iv

 
 

 

							
	 
	 	 
	 	Page 	 
	 
	 	 ARTICLE XIII
	 	 	 	 
	 
	 	 MISCELLANEOUS PROVISIONS
	 	 	 	 
	 Section 13.01
	 	 Successors and Assigns of Issuers Bound by Indenture
	 	 	

47	 
	 Section 13.02
	 	 Acts of Board, Committee or Officer of Successor Issuer Valid
	 	 	47	 
	 Section 13.03
	 	 Required Notices or Demands
	 	 	47	 
	 Section 13.04
	 	 Indenture and Debt Securities to Be Construed in Accordance with the Laws of the State of New York
	 	 	48	 
	 Section 13.05
	 	 Officers' Certificate and Opinion of Counsel to Be Furnished upon Application or Demand by the Issuers
	 	 	48	 
	 Section 13.06
	 	 Payments Due on Legal Holidays
	 	 	49	 
	 Section 13.07
	 	 Provisions Required by TIA to Control
	 	 	49	 
	 Section 13.08
	 	 Computation of Interest on Debt Securities
	 	 	49	 
	 Section 13.09
	 	 Rules by Trustee, Paying Agent and Registrar
	 	 	49	 
	 Section 13.10
	 	 No Recourse Against Others
	 	 	49	 
	 Section 13.11
	 	 Severability
	 	 	50	 
	 Section 13.12
	 	 Effect of Headings
	 	 	50	 
	 Section 13.13
	 	 Indenture May Be Executed in Counterparts
	 	 	50	 
	 
	 	 ARTICLE XIV
	 	 	 	 
	 
	 	 GUARANTEE
	 	 	 	 
	 Section 14.01
	 	 Unconditional Guarantee
	 	 	

50	 
	 Section 14.02
	 	 Execution and Delivery of Guarantee
	 	 	52	 
	 Section 14.03
	 	 Limitation on Subsidiary Guarantors' Liability
	 	 	52	 
	 Section 14.04
	 	 Release of Subsidiary Guarantors from Guarantee
	 	 	52	 
	 Section 14.05
	 	 Subsidiary Guarantor Contribution
	 	 	53	 
	

   Notation of Guarantee
	
 	
 	
A-1	
 

 

 v

 

 

        THIS INDENTURE dated as of                        is among Global Partners LP,
 a Delaware limited partnership (the "Partnership"), GLP Finance Corp. ("Finance Corp.," and together with
the Partnership, the "Issuers"), any Subsidiary Guarantors (as defined herein party hereto and                        ,
a                        , as trustee (the "Trustee").
 

 
 

  RECITALS OF THE ISSUERS AND ANY SUBSIDIARY GUARANTORS    
    

        The Issuers and any Subsidiary Guarantors have duly authorized the execution and delivery of this Indenture to provide for the issuance
from time to time of the Issuers' debentures, notes, bonds or other evidences of indebtedness to be issued in one or more series unlimited as to principal amount (herein called the "Debt Securities"),
which Debt Securities may be guaranteed by each of the Subsidiary Guarantors and may be subordinated in right of payment to Senior Indebtedness, as in this Indenture provided. 

        All
things necessary to make this Indenture a valid agreement of the Issuers and any Subsidiary Guarantors, in accordance with its terms, have been done. 

        NOW,
THEREFORE, THIS INDENTURE WITNESSETH 

        That
in order to declare the terms and conditions upon which the Debt Securities are authenticated, issued and delivered, and in consideration of the premises, and of the purchase and
acceptance of the Debt Securities by the Holders thereof, the Issuers, any Subsidiary Guarantor and the Trustee covenant
and agree with each other, for the benefit of the respective Holders from time to time of the Debt Securities or any series thereof, as follows: 

 
 

  ARTICLE I
  DEFINITIONS AND INCORPORATION BY REFERENCE    
    

        Section 1.01    Definitions.    

        "Affiliate"
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For
the purposes of this definition, "control" when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing. The Trustee may request and may conclusively rely
upon an Officers' Certificate to determine whether any Person is an Affiliate of any specified Person. 

        "Agent"
means any Registrar or paying agent. 

        "Bankruptcy
Law" means Title 11, U.S. Code or any similar federal or state law for the relief of debtors. 

        "Board
of Directors" means, (i) with respect to Finance Corp., the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board,
(ii) with respect to the Partnership, the Board of Directors of the General Partner or any authorized committee of the Board of Directors of the General Partner or any directors and/or officers
of the General Partner to whom such Board of Directors or such committee shall have duly delegated its authority to act hereunder. If the Partnership shall change its form of entity to other than a
limited partnership, the references to the Board of Directors of the General Partner shall mean the Board of Directors (or other comparable governing body) of the Partnership. 

        "Business
Day" means any day other than a Legal Holiday. 

        "capital
stock" of any Person means and includes any and all shares, rights to purchase, warrants or options (whether or not currently exercisable), participations or other equivalents
of or interests in 

1

 

(however
designated) the equity (which includes, but is not limited to, common stock, preferred stock and partnership and joint venture interests) of such Person (excluding any debt securities that
are convertible into, or exchangeable for, such equity). 

        "Custodian"
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 

        "Debt"
of any Person at any date means any obligation created or assumed by such Person for the repayment of borrowed money and any guarantee thereof. 

        "Debt
Security" or "Debt Securities" has the meaning stated in the first recital of this Indenture and more particularly means any debt security or debt securities, as the case may be of
any series authenticated and delivered under this Indenture. 

        "Default"
means any event, act or condition that is, or after notice or the passage of time or both would be, an Event of Default. 

        "Depositary"
means, unless otherwise specified by the Issuers pursuant to either Section 2.03 or 2.15, with respect to Debt Securities of any series issuable or issued in whole or
in part in the form of one or more Global Securities, The Depository Trust Company, New York, New York, or any successor thereto registered as a clearing agency under the Exchange Act or other
applicable statute or regulations. 

        "Designated
Senior Indebtedness" means (i) any Senior Indebtedness which, at the date of determination, has an aggregate principal amount outstanding of, or under which, at the
date of determination, the holders thereof are committed to lend up to, at least $100 million and (ii) any other Senior Indebtedness designated, as provided in Section 2.03, in
respect of any series of Debt Securities. 

        "Dollar"
or "$" means such currency of the United States as at the time of payment is legal tender for the payment of public and private debts. 

        "Exchange
Act" means the Securities Exchange Act of 1934, as amended, and any successor statute. 

        "Finance
Corp." means the Person named as "Finance Corp." in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable terms of
this Indenture, and thereafter "Finance Corp." shall mean such successor Person. 

        "Floating
Rate Security" means a Debt Security that provides for the payment of interest at a variable rate determined periodically by reference to an interest rate index specified
pursuant to Section 2.03. 

        "GAAP"
means generally accepted accounting principles in the United States, as in effect from time to time. 

        "General
Partner" means Global GP LLC, a Delaware limited liability company, and its successors and permitted assigns as managing general partner of the Partnership or as
the business entity with the ultimate authority to manage the business and operations of the Partnership. 

        "Global
Security" means with respect to any series of Debt Securities issued hereunder, a Debt Security which is executed by the Issuers and authenticated and delivered by the Trustee to
the Depositary or pursuant to the Depositary's instruction, all in accordance with this Indenture and any Indentures supplemental hereto, or resolution of the Board of Directors and set forth in an
Officers' Certificate, which shall be registered in the name of the Depositary or its nominee and which shall represent, and shall be denominated in an amount equal to the aggregate principal amount
of, all the Outstanding Debt Securities of such series or any portion thereof, in either case having the same terms, 

2

 

including,
without limitation, the same original issue date, date or dates on which principal is due and interest rate or method of determining interest. 

        "guarantee"
means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Debt or other obligation of any other Person and any obligation, direct
or indirect, contingent or otherwise, of such Person (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or other obligation of such other Person
(whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to
maintain financial statement conditions or otherwise) or (b) entered into for purposes of assuring in any other manner the obligee of such Debt or other obligation of the payment thereof or to
protect such obligee against loss in respect thereof (in whole or in part); provided, however, that the term "guarantee" shall not include
endorsements for collection or deposit in the ordinary course of business. The term "guarantee" used as a verb has a corresponding meaning. 

        "Holder,"
"Holder of Debt Securities" or other similar terms means, a Person in whose name a Debt Security is registered in the Debt Security Register (as defined in
Section 2.07(a)). 

        "Indenture"
means this instrument as originally executed, or, if amended or supplemented as herein provided, as so amended or supplemented and shall include the form and terms of
particular series of Debt Securities as contemplated hereunder, whether or not a supplemental Indenture is entered into with respect thereto. 

        "Issuers"
means the Partnership and Finance Corp. 

        "Issuer
Order" means a written request or order signed on behalf of each of the Issuers by one of its Officers and delivered to the Trustee. 

        "Legal
Holiday" means a Saturday, a Sunday or a day on which banking institutions in the City of New York, New York or at a Place of Payment are authorized by law, regulation or
executive order to remain closed. If a payment date is a Legal Holiday at a Place of Payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest
shall accrue for the intervening period. 

        "Lien"
means, with respect to any asset, any mortgage, lien, security interest, pledge, charge or other encumbrance of any kind in respect of such asset, whether or not filed, recorded
or otherwise perfected under applicable law. 

        "Officer"
means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the
Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Vice President of such Person (or, if such Person is a limited partnership, the general partner of such Person, except it shall
be the General Partner in the case of the Partnership so long as it is a limited partnership). 

        "Officers'
Certificate" means a certificate signed on behalf of each Issuer by any two of its Officers, one of whom must be the principal executive officer, the principal financial
officer or the principal accounting officer of such Issuer, that meets the requirements of Section 13.05 hereof. 

        "Opinion
of Counsel" means a written opinion from legal counsel who is acceptable to the Trustee. The counsel may be an employee of or counsel to the Partnership or the Trustee. 

        "Original
Issue Discount Debt Security" means any Debt Security which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of
acceleration of the maturity thereof pursuant to Section 6.01. 

3

 

        "Outstanding,"
when used with respect to any series of Debt Securities, means, as of the date of determination, all Debt Securities of that series theretofore authenticated and delivered
under this Indenture, except: 

	(a)
	Debt
Securities of that series theretofore canceled by the Trustee or delivered to the Trustee for cancellation;

	(b)
	Debt
Securities of that series for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any paying
agent (other than an Issuer) in trust or set aside and segregated in trust by the Issuers (if an Issuer shall act as its own paying agent) for the Holders of such Debt Securities; provided, that, if
such Debt Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; and

	(c)
	Debt
Securities of that series which have been paid pursuant to Section 2.09 or in exchange for or in lieu of which other Debt Securities have been
authenticated and delivered pursuant to this Indenture, other than any such Debt Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Debt
Securities are held by a protected purchaser in whose hands such Debt Securities are valid obligations of the Issuers; 

provided,
however, that in determining whether the Holders of the requisite principal amount of the Outstanding Debt Securities of any series have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, Debt Securities owned by either of the Issuers or any other obligor upon the Debt Securities or any Affiliate of the Partnership or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or
waiver, only Debt Securities which a Trust Officer actually knows to be so owned shall be so disregarded. Debt Securities so owned which have been pledged in good faith may be regarded as Outstanding
if the pledgee establishes to the satisfaction of the Trustee the pledgee's right so to act with respect to such Debt Securities and that the pledgee is not an Issuer or any other obligor upon the
Debt Securities or an Affiliate of the Partnership or of such other obligor. In determining whether the Holders of the requisite principal amount of Outstanding Debt Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of an Original Issue Discount Debt Security that shall be deemed to be Outstanding for such purposes shall
be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the maturity thereof pursuant to Section 6.01. 

        "Partnership"
means the Person named as the "Partnership" in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter "Partnership" shall mean such successor Person. 

        "Person"
means any individual, corporation, partnership, joint venture, limited liability company, incorporated or unincorporated association, joint-stock company, trust, unincorporated
organization or government or other agency or political subdivision thereof or other entity of any kind. 

        "Redemption
Date," when used with respect to any Debt Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture. 

        "Representative"
means the trustee, agent or representative (if any) for an issue of Senior Debt. 

        "SEC"
means the Securities and Exchange Commission. 

        "Securities
Act" means the Securities Act of 1933, as amended, and any successor statute. 

        "Senior
Indebtedness," unless otherwise provided with respect to the Debt Securities of a series as contemplated by Section 2.03, means (1) all Debt of the Subsidiary
Guarantors or the Issuers, whether 

4

 

currently
outstanding or hereafter issued, unless, by the terms of the instrument creating or evidencing such Debt, it is provided that such Debt is subordinate or not superior in right of payment to
the Debt
Securities, in the case of the Issuers, or the Guarantee, in the case of the Subsidiary Guarantors, or to other Debt which is pari passu with or subordinated to the Debt Securities, in the case of the
Issuers, or the Guarantee, in the case of the Subsidiary Guarantors, and (2) any modifications, refunding, deferrals, renewals, or extensions of any such Debt or securities, notes or other
evidence of Debt issued in exchange for such Debt; provided that in no event shall "Senior Indebtedness" include (a) Debt evidenced by the Debt Securities or any Guarantee, (b) Debt of
any of the Subsidiary Guarantors or the Issuers owed or owing to any Subsidiary of the Partnership, (c) Debt of any of the Subsidiary Guarantors owed or owing to the Issuers, (d) Debt to
trade creditors, (e) any liability for taxes owed or owing by any of the Subsidiary Guarantors or the Issuers or (f) Debt of any Subsidiary Guarantor in the event there is no series of
Debt Securities Outstanding that is entitled to the benefits of a Guarantee. 

        "Stated
Maturity" means, with respect to any security, the date specified in such security as the fixed date on which the payment of principal of such security is due and payable,
including pursuant to any mandatory redemption provision (but excluding any provision providing for the repurchase of such security at the option of the holder thereof upon the happening of any
contingency beyond the control of the issuer unless such contingency has occurred). 

        "Subsidiary"
of any Person means: 

	(1)
	any
corporation, association or other business entity of which more than 50% of the total voting power of equity interests entitled, without regard to the
occurrence of any contingency, to vote in the election of directors, managers, trustees or equivalent Persons thereof is at the time of determination owned or controlled, directly or indirectly, by
such Person or one or more of the other Subsidiaries of such Person or combination thereof; or

	(2)
	in
the case of a partnership, more than 50% of the partners' equity interests, considering all partners' equity interests as a single class, is at such time
of determination owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or combination thereof. 

        "Subsidiary
Guarantors" means any Subsidiary of the Partnership (except Finance Corp.) who may execute this Indenture, or a supplement hereto, for the purpose of providing a Guarantee of
Debt Securities pursuant to this Indenture until a successor Person shall have become such pursuant to the applicable provisions of this Indenture, and thereafter "Subsidiary Guarantors" shall mean
such successor Person. 

        "TIA"
means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb), as in effect on the date of this Indenture as originally
executed and, to the extent required by law, as amended. 

        "Trustee"
initially means                        and any other Person or Persons appointed as such from time to time pursuant to
Section 7.08, and, subject to the provisions of
Article VII, includes its or their successors and assigns. If at any time there is more than one such Person, "Trustee" as used with respect to the Debt Securities of any series shall mean the
Trustee with respect to the Debt Securities of that series. 

        "Trust
Officer" means any officer or assistant officer of the Trustee assigned by the Trustee to administer its corporate trust matters. 

        "United
States" means the United States of America (including the States and the District of Columbia), its territories, its possessions and other areas subject to its jurisdiction. 

5

 

        "U.S.
Government Obligations" means direct obligations of the United States of America, obligations on which the payment of principal and interest is fully guaranteed by the United
States of America or obligations or guarantees for the payment of which the full faith and credit of the United States of America is pledged. 

        "Yield
to Maturity" means the yield to maturity, calculated at the time of issuance of a series of Debt Securities, or, if applicable, at the most recent redetermination of interest on
such series and calculated in accordance with accepted financial practice. 

        Section 1.02    Other Definitions.    

 

 

					
	Term

 
	 	Defined in Section 	 
	 "Debt Security Register"
	 	 	2.07	 
	 "Defaulted Interest"
	 	 	2.17	 
	 "Event of Default"
	 	 	6.01	 
	 "Funding Guarantor"
	 	 	14.05	 
	 "Guarantee"
	 	 	14.01	 
	 "Place of Payment"
	 	 	2.03	 
	 "Registrar"
	 	 	2.07	 
	 "Subordinated Debt Securities"
	 	 	12.01	 
	 "Successor Company"
	 	 	10.01	 

 

         Section 1.03    Incorporation by Reference of Trust Indenture Act.    Whenever this Indenture refers to a
provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. 

        All
terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned to them. 

        Section 1.04    Rules of Construction.    Unless the context otherwise requires: 

        (a)   a
term has the meaning assigned to it; 

        (b)   an
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; 

        (c)   "or"
is not exclusive; 

        (d)   words
in the singular include the plural, and in the plural include the singular; 

        (e)   provisions
apply to successive events and transactions; 

        (f)    if
the applicable series of Debt Securities are subordinated pursuant to Article XII, unsecured Debt shall not be deemed to be subordinate or junior to secured
Debt merely by virtue of its nature as unsecured Debt; and 

        (g)   the
principal amount of any noninterest bearing or other discount security at any date shall be the principal amount thereof that would be shown on a balance sheet of
the issuer dated such date prepared in accordance with GAAP. 

6

 
 
 

  ARTICLE II
  DEBT SECURITIES    
    

        Section 2.01    Forms Generally.    The Debt Securities of each series shall be in substantially the form
established without the approval of any Holder by or pursuant to a resolution of the Board of Directors of each Issuer or in one or more Indentures supplemental hereto, in each case with such
appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as the Issuers may deem appropriate (and, if not contained in a supplemental Indenture entered into in accordance with Article IX, as are not prohibited
by the provisions of this Indenture) or as may be required or appropriate to comply with any law or with any rules made pursuant thereto or with any rules of any securities exchange on which such
series of Debt Securities may be listed, or to conform to general usage, or as may, consistently herewith, be determined by the officers executing such Debt Securities as evidenced by their execution
of the Debt Securities. 

        The
definitive Debt Securities of each series shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner, all as determined by the
officers executing such Debt Securities, as evidenced by their execution of such Debt Securities. 

        Section 2.02    Form of Trustee's Certificate of Authentication.    The Trustee's certificate of authentication
on all Debt Securities authenticated by the Trustee shall be in substantially the following form: 

 
 

  TRUSTEE'S CERTIFICATE OF AUTHENTICATION    
    

        This
is one of the Debt Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

 

					
	 	 	                                    ,

 As Trustee
	

 	
 	
By:	
 	

 Authorized Signatory

 

 7

 

  
        Section 2.03    Principal Amount; Issuable in Series.    The aggregate principal amount of Debt Securities
which may be issued, executed, authenticated, delivered and outstanding under this Indenture is unlimited. 

        The
Debt Securities may be issued in one or more series in fully registered form. There shall be established, without the approval of any Holders, in or pursuant to a resolution of the
Board of Directors of each Issuer and set forth in an Officers' Certificate, or established in one or more Indentures supplemental hereto, prior to the issuance of Debt Securities of any series any or
all of the following: 

        (a)   the
title of the Debt Securities of the series (which shall distinguish the Debt Securities of the series from all other Debt Securities); 

        (b)   any
limit upon the aggregate principal amount of the Debt Securities of the series which may be authenticated and delivered under this Indenture (except for Debt
Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Debt Securities of the series pursuant to this Article II); 

        (c)   the
date or dates on which the principal of and premium, if any, on the Debt Securities of the series are payable; 

        (d)   the
rate or rates (which may be fixed or variable) at which the Debt Securities of the series shall bear interest, if any, or the method of determining such rate or
rates, the date or dates from which such interest shall accrue, the interest payment dates on which such interest shall be payable, or the method by which such date will be determined, the record
dates for the determination of Holders thereof to whom such interest is payable; and the basis upon which interest will be calculated if other than that of a 360-day year of twelve
thirty-day months; 

        (e)   the
place or places, if any, in addition to or instead of the corporate trust office of the Trustee, where the principal of, and premium, if any, and interest on, Debt
Securities of the series shall be payable ("Place of Payment"); 

        (f)    the
price or prices at which, the period or periods within which and the terms and conditions upon which Debt Securities of the series may be redeemed, in whole or in
part, at the option of the Issuers or otherwise; 

        (g)   whether
Debt Securities of the series are entitled to the benefits of any Guarantee of any Subsidiary Guarantors pursuant to this Indenture; 

        (h)   the
obligation, if any, of the Issuers to redeem, purchase or repay Debt Securities of the series pursuant to any sinking fund or analogous provisions or at the option
of a Holder thereof, and the price or prices at which and the period or periods within which and the terms and conditions upon which Debt Securities of the series shall be redeemed, purchased or
repaid, in whole or in part, pursuant to such obligations; 

        (i)    the
terms, if any, upon which the Debt Securities of the series may be convertible into or exchanged for capital stock (which may be represented by depositary shares),
other Debt Securities or warrants for capital stock or Debt or other securities of any kind of either of the Issuers or any other obligor and the terms and conditions upon which such conversion or
exchange shall be effected, including the initial conversion or exchange price or rate, the conversion or exchange period and any other provision in addition to or in lieu of those described herein; 

        (j)    if
other than denominations of $1,000 and any integral multiple thereof, the denominations in which Debt Securities of the series shall be issuable; 

8

 

        (k)   if
the amount of principal of or any premium or interest on Debt Securities of the series may be determined with reference to an index or pursuant to a formula, the
manner in which such amounts will be determined; 

        (l)    if
the principal amount payable at the Stated Maturity of Debt Securities of the series will not be determinable as of any one or more dates prior to such Stated
Maturity, the amount which will be deemed to be such principal amount as of any such date for any purpose, including the principal amount thereof which will be due and payable upon any maturity other
than the Stated Maturity or which will be deemed to be Outstanding as of any such date (or, in any such case, the manner in which such deemed principal amount is to be determined); 

        (m)  any
changes or additions to Article XI, including the addition of additional covenants that may be subject to the covenant defeasance option pursuant to
Section 11.02(b); 

        (n)   if
other than the principal amount thereof, the portion of the principal amount of Debt Securities of the series which shall be payable upon declaration of acceleration
of the maturity thereof pursuant to Section 6.01 or provable in bankruptcy pursuant to Section 6.02; 

        (o)   the
terms, if any, of the transfer, mortgage, pledge or assignment as security for the Debt Securities of the series of any properties, assets, moneys, proceeds,
securities or other collateral, including whether certain provisions of the TIA are applicable and any corresponding changes to provisions of this Indenture as currently in effect; 

        (p)   any
addition to or change in the Events of Default with respect to the Debt Securities of the series and any change in the right of the Trustee or the Holders to declare
the principal of, and premium and interest on, such Debt Securities due and payable; 

        (q)   if
the Debt Securities of the series shall be issued in whole or in part in the form of a Global Security or Securities, the terms and conditions, if any, upon which
such Global Security or Securities may be exchanged in whole or in part for other individual Debt Securities in definitive registered form; and the Depositary for such Global Security or Securities
and the form of any legend or legends to be borne by any such Global Security or Securities in addition to or in lieu of the legend referred to in Section 2.15(a); 

        (r)   any
trustees, authenticating or paying agents, transfer agents or registrars; 

        (s)   the
applicability of, and any addition to or change in the covenants and definitions currently set forth in this Indenture or in the terms currently set forth in
Article X, including conditioning any merger, conveyance, transfer or lease permitted by Article X upon the satisfaction of any Debt coverage standard by the Issuers and Successor
Company (as defined in Article X); 

        (t)    the
subordination, if any, of the Debt Securities of the series pursuant to Article XII and any changes or additions to Article XII or designation of any
Designated Senior Indebtedness; 

        (u)   with
regard to Debt Securities of the series that do not bear interest, the dates for certain required reports to the Trustee; and 

        (v)   any
other terms of the Debt Securities of the series (which terms shall not be prohibited by the provisions of this Indenture). 

        All
Debt Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to such resolution of the Board of
Directors and as set forth in such Officers' Certificate or in any such Indenture supplemental hereto. 

        Section 2.04    Execution of Debt Securities.    The Debt Securities shall be signed on behalf of each of the
Issuers by at least one of its Officers. Such signatures upon the Debt Securities may be the 

9

 

manual
or facsimile signatures of the present or any future such authorized officers and may be imprinted or otherwise reproduced on the Debt Securities. 

        Only
such Debt Securities as shall bear thereon a certificate of authentication substantially in the form hereinbefore recited, signed manually by the Trustee, shall be entitled to the
benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee upon any Debt Security executed on behalf of each of the Issuers by at least one of its Officers
shall be conclusive evidence that the Debt Security so authenticated has been duly authenticated and delivered hereunder. 

        In
case any Officer of either Issuer who shall have signed any of the Debt Securities shall cease to be such Officer before the Debt Securities so signed shall have been authenticated
and delivered by the Trustee, or disposed of by the Issuers, such Debt Securities nevertheless may be authenticated and delivered or disposed of as though the Person who signed such Debt Securities
had not ceased to be such Officer; and any Debt Security may be signed on behalf of either Issuer by such Persons as, at the actual date of the execution of such Debt Security, shall be the proper
Officers of such Issuer, although at the date of such Debt Security or of the execution of this Indenture any such Person was not such Officer. 

        Section 2.05    Authentication and Delivery of Debt Securities.    At any time and from time to time after the
execution and delivery of this Indenture, the Issuers may deliver to the Trustee for authentication Debt
Securities of any series executed by the Issuers, and the Trustee shall thereupon authenticate and deliver said Debt Securities to or upon an Issuer Order. In authenticating such Debt Securities, and
accepting the additional responsibilities under this Indenture in relation to such Debt Securities, the Trustee shall be entitled to receive, and (subject to Section 7.01) shall be fully
protected in relying upon: 

        (a)   a
copy of any resolution or resolutions of the Board of Directors of each Issuer, certified by the Secretary or Assistant Secretary of each of the General Partner and
Finance Corp., authorizing the terms of issuance of any series of Debt Securities; 

        (b)   an
executed supplemental Indenture, if any; 

        (c)   an
Officers' Certificate; and 

        (d)   an
Opinion of Counsel prepared in accordance with Section 13.05 which shall also state: 

          (i)  that
the form of such Debt Securities has been established by or pursuant to a resolution of the Board of Directors of each Issuer or by a supplemental Indenture as
permitted by Section 2.01 in conformity with the provisions of this Indenture; 

         (ii)  that
the terms of such Debt Securities have been established by or pursuant to a resolution of the Board of Directors or by a supplemental Indenture as permitted by
Section 2.03 in conformity with the provisions of this Indenture; 

        (iii)  that
such Debt Securities, when authenticated and delivered by the Trustee and issued by the Issuers in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of the Issuers, enforceable in accordance with their terms except as the enforceability thereof may be limited by bankruptcy,
insolvency or similar laws affecting the enforcement of creditors' rights generally and rights of acceleration and the availability of equitable remedies may be limited by equitable principles of
general applicability; 

        (iv)  that
the Issuers have the power to issue such Debt Securities and has duly taken all necessary action with respect to such issuance; 

         (v)  that
the issuance of such Debt Securities will not contravene the organizational documents of the Issuers or result in any material violation of any of the terms or
provisions of 

10

 

any
law or regulation or of any material indenture, mortgage or other agreement known to such counsel by which the Issuers are bound; 

        (vi)  that
authentication and delivery of such Debt Securities and the execution and delivery of any supplemental Indenture will not violate the terms of this Indenture; and 

       (vii)  such
other matters as the Trustee may reasonably request. 

        Such
Opinion of Counsel need express no opinion as to whether a court in the United States would render a money judgment in a currency other than that of the United States. 

        The
Trustee shall have the right to decline to authenticate and deliver any Debt Securities under this Section 2.05 if the Trustee, being advised by counsel, determines that such
action may not lawfully be taken or if the Trustee in good faith by its board of directors or trustees, executive committee or a trust committee of directors, trustees or Officers (or any combination
thereof) shall determine that such action would expose the Trustee to personal liability to existing Holders. 

        The
Trustee may appoint an authenticating agent reasonably acceptable to the Issuers to authenticate Debt Securities of any series. Unless limited by the terms of such appointment, an
authenticating agent may authenticate Debt Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as any Registrar, paying agent or agent for service of notices and demands. 

        Unless
otherwise provided in the form of Debt Security for any series, each Debt Security shall be dated the date of its authentication. 

        Section 2.06    Denomination of Debt Securities.    Unless otherwise provided in the form of Debt Security for
any series, the Debt Securities of each series shall be issuable only as fully registered Debt Securities in such Dollar denominations as shall be specified or contemplated by Section 2.03. In
the absence of any such specification with respect to the Debt Securities of any series, the Debt Securities of such series shall be issuable in denominations of $1,000 and any integral multiple
thereof. 

        Section 2.07    Registration of Transfer and Exchange.    

        (a)   The
Issuers shall keep or cause to be kept a register for each series of Debt Securities issued hereunder (hereinafter collectively referred to as the "Debt Security
Register"), in which, subject to such reasonable regulations as it may prescribe, the Issuers shall provide for the registration of all Debt Securities and the transfer of Debt Securities as in this
Article II provided. At all reasonable times the Debt Security Register shall be open for inspection by the Trustee. Subject to Section 2.15, upon due presentment for registration of
transfer of any Debt Security at any office or agency to be maintained by the Issuers in accordance with the provisions of Section 4.02, the Issuers shall execute and the Trustee shall
authenticate and deliver in the name of the transferee or transferees a new Debt Security or Debt Securities of authorized denominations for a like aggregate principal amount. In no event may Debt
Securities be issued as, or exchanged for, bearer securities. 

        Unless
and until otherwise determined by the Issuers by resolutions of each Issuer's Board of Directors, the Debt Security Register shall be kept at the principal corporate trust office
of the Trustee and, for this purpose, the Trustee shall be designated "Registrar." 

        Debt
Securities of any series (other than a Global Security, except as set forth below) may be exchanged for a like aggregate principal amount of Debt Securities of the same series of
other authorized denominations. Subject to Section 2.15, Debt Securities to be exchanged shall be surrendered at the office or agency to be maintained by the Issuers as provided in
Section 4.02, and the Issuers shall execute and the Trustee shall authenticate and deliver in exchange therefor the Debt Security or Debt Securities which the Holder making the exchange shall
be entitled to receive. 

11

 

        (b)   All
Debt Securities presented or surrendered for registration of transfer, exchange or payment shall (if so required by the Issuers, the Trustee or the Registrar) be
duly endorsed or be accompanied by a written instrument or instruments of transfer, in form satisfactory to the Issuers, the Trustee and the Registrar, duly executed by the Holder or his attorney duly
authorized in writing. 

        All
Debt Securities issued in exchange for or upon transfer of Debt Securities shall be the valid obligations of the Issuers, evidencing the same debt, and entitled to the same benefits
under this Indenture as the Debt Securities surrendered for such exchange or transfer. 

        No
service charge shall be made for any exchange or registration of transfer of Debt Securities (except as provided by Section 2.09), but the Issuers may require payment of a sum
sufficient to cover any tax, fee, assessment or other governmental charge that may be imposed in relation thereto, other than those expressly provided in this Indenture to be made at the Issuers' own
expense or without expense or without charge to the Holders. 

        The
Issuers shall not be required (i) to issue, register the transfer of or exchange any Debt Securities for a period of 15 days next preceding any mailing of notice of
redemption of Debt Securities of such series or (ii) to register the transfer of or exchange any Debt Securities selected, called or being called for redemption. 

        Prior
to the due presentation for registration of transfer of any Debt Security, the Issuers, the Subsidiary Guarantors, the Trustee, any paying agent or any Registrar may deem and treat
the Person in whose name a Debt Security is registered as the absolute owner of such Debt Security for the purpose of receiving payment of or on account of the principal of, and premium, if any, and
(subject to Section 2.12) interest on, such Debt Security and for all other purposes whatsoever, whether or not such Debt Security is overdue, and none of the Issuers, the Subsidiary
Guarantors, the Trustee, any paying agent or any Registrar shall be affected by notice to the contrary. 

        None
of the Issuers, the Subsidiary Guarantors, the Trustee, any agent of the Trustee, any paying agent or any Registrar will have any responsibility or liability for any aspect of the
records relating to, or payments made on account of, beneficial ownership interests of a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership
interests. 

        Section 2.08    Temporary Debt Securities.    Pending the preparation of definitive Debt Securities of any
series, the Issuers may execute and the Trustee shall authenticate and deliver temporary Debt Securities (printed, lithographed, photocopied, typewritten or otherwise produced) of any authorized
denomination, and substantially in the form of the definitive Debt Securities in lieu of which they are issued, in registered form with such omissions, insertions and variations as may be appropriate
for temporary Debt Securities, all as may be determined by the Issuers with the concurrence of the Trustee. Temporary Debt Securities may contain such reference to any provisions of this Indenture as
may be appropriate. Every temporary Debt Security shall be executed by the Issuers and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like
effect, as the definitive Debt Securities. 

        If
temporary Debt Securities of any series are issued, the Issuers will cause definitive Debt Securities of such series to be prepared without unreasonable delay. After the preparation
of definitive Debt Securities of such series, the temporary Debt Securities of such series shall be exchangeable for definitive Debt Securities of such series upon surrender of the temporary Debt
Securities of such series at the office or agency of the Issuers at a Place of Payment for such series, without charge to the Holder thereof, except as provided in Section 2.07 in connection
with a transfer. Upon surrender for cancellation of any one or more temporary Debt Securities of any series, the Issuers shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Debt Securities of the same series of authorized denominations and of like tenor. Until so exchanged, 

12

 

temporary
Debt Securities of any series shall in all respects be entitled to the same benefits under this Indenture as definitive Debt Securities of such series. 

        Upon
any exchange of a portion of a temporary Global Security for a definitive Global Security or for the individual Debt Securities represented thereby pursuant to Section 2.07
or this Section 2.08, the temporary Global Security shall be endorsed by the Trustee to reflect the reduction of the principal amount evidenced thereby, whereupon the principal amount of such
temporary Global Security shall be reduced for all purposes by the amount to be exchanged and endorsed. 

        Section 2.09    Mutilated, Destroyed, Lost or Stolen Debt Securities.    If (a) any mutilated Debt
Security is surrendered to the Trustee at its corporate trust office or (b) the Issuers and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Debt
Security, and there is delivered to the Issuers and the Trustee such security or indemnity as may be required by them to save each of them and any paying agent harmless, and neither the Issuers nor
the Trustee receives notice that such Debt Security has been acquired by a protected purchaser, then the Issuers shall execute and, upon an Issuer Order, the Trustee shall authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or stolen Debt Security, a new Debt Security of the same series of like tenor, form, terms and principal amount, bearing a number not
contemporaneously Outstanding. Upon the issuance of any substituted Debt Security, the Issuers or the Trustee may require the payment of a sum sufficient to cover any tax, fee, assessment or other
governmental charge that may be imposed in relation thereto and any other expenses connected therewith. In case any Debt Security which has matured or is about to mature or which has been called for
redemption shall become mutilated or be destroyed, lost or stolen, the Issuers may, instead of issuing a substituted Debt Security, pay or authorize the payment of the same (without surrender thereof
except in the case of a mutilated Debt Security) if the applicant for such payment shall furnish the Issuers and the Trustee with such security or indemnity as either may require to save it harmless
from all risk, however remote, and, in case of destruction, loss or theft, evidence to the satisfaction of the Issuers and the Trustee of the destruction, loss or theft of such Debt Security and of
the ownership thereof. 

        Every
substituted Debt Security of any series issued pursuant to the provisions of this Section 2.09 by virtue of the fact that any Debt Security is destroyed, lost or stolen
shall constitute an original additional contractual obligation of the Issuers, whether or not the destroyed, lost or stolen Debt Security shall be found at any time, and shall be entitled to all the
benefits of this Indenture equally
and proportionately with any and all other Debt Securities of that series duly issued hereunder. All Debt Securities shall be held and owned upon the express condition that the foregoing provisions
are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Debt Securities, and shall preclude any and all other rights or remedies, notwithstanding any law or
statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender. 

        Section 2.10    Cancellation of Surrendered Debt Securities.    All Debt Securities surrendered for payment,
redemption, registration of transfer or exchange shall, if surrendered to an Issuer or any paying agent or a Registrar, be delivered to the Trustee for cancellation by it, or if surrendered to the
Trustee, shall be canceled by it, and no Debt Securities shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture. All canceled Debt Securities held by
the Trustee shall be destroyed (subject to the record retention requirements of the Exchange Act) and certification of their destruction delivered to the Issuers, unless otherwise directed. On request
of the Issuers, the Trustee shall deliver to the Issuers canceled Debt Securities held by the Trustee. If either of the Issuers shall acquire any of the Debt Securities, however, such acquisition
shall not operate as a redemption or satisfaction of the Debt represented thereby unless and until the same are delivered or surrendered to the Trustee for cancellation. The Issuers may not issue new
Debt Securities to replace Debt Securities it has redeemed, paid or delivered to the Trustee for cancellation. 

13

 

        Section 2.11    Provisions of the Indenture and Debt Securities for the Sole Benefit of the Parties and the
Holders.    Nothing in this Indenture or in the Debt Securities, expressed or implied, shall give or be construed to give to any Person, other than the parties
hereto, the holders of any Senior Indebtedness, the Holders or any Registrar or paying agent, any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any
covenant, condition or provision herein contained; all its covenants, conditions and provisions being for the sole benefit of the parties hereto, the Holders and any Registrar and paying agents. 

        Section 2.12    Payment of Interest; Interest Rights Preserved.    

        (a)   Interest
on any Debt Security that is payable and is punctually paid or duly provided for on any interest payment date shall be paid to the Person in whose name such
Debt Security is registered at the close of business on the regular record date for such interest notwithstanding the cancellation of such Debt Security upon any transfer or exchange subsequent to the
regular record date. Payment of interest on Debt Securities shall be made at the corporate trust office of the Trustee (except as otherwise specified pursuant to Section 2.03), or at the option
of the Issuers, by check mailed to the address of the Person entitled thereto as such address shall appear in the Debt Security Register or, if provided pursuant to Section 2.03 and in
accordance with arrangements satisfactory to the Trustee, at the option of the Holder by wire transfer to an account designated by the Holder. 

        (b)   Subject
to the foregoing provisions of this Section 2.12 and Section 2.17, each Debt Security of a particular series delivered under this Indenture upon
registration of transfer of or in exchange for or in lieu of any other Debt Security of the same series shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Debt Security. 

        Section 2.13    Securities Denominated in Dollars.    Except as otherwise specified pursuant to
Section 2.03 for Debt Securities of any series, payment of the principal of, and premium, if any, and interest on, Debt Securities of such series will be made in Dollars. 

        Section 2.14    Wire Transfers.    Notwithstanding any other provision to the contrary in this Indenture, the
Issuers may make any payment of moneys required to be deposited with the Trustee on account of principal of, or premium, if any, or interest on, the Debt Securities (whether pursuant to optional or
mandatory redemption payments, interest payments or otherwise) by wire transfer in immediately available funds to an account designated by the Trustee before 11:00 a.m., New York City time, on
the date such moneys are to be paid to the Holders of the Debt Securities in accordance with the terms hereof. 

        Section 2.15    Securities Issuable in the Form of a Global Security.    

        (a)   If
the Issuers shall establish pursuant to Sections 2.01 and 2.03 that the Debt Securities of a particular series are to be issued in whole or in part in the form
of one or more Global Securities, then the Issuers shall execute and the Trustee or its agent shall, in accordance with Section 2.05, authenticate and deliver, such Global Security or
Securities, which shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, the Outstanding Debt Securities of such series to be represented by such Global
Security or Securities, or such portion thereof as the Issuers shall specify in an Officers' Certificate, shall be registered in the name of the Depositary for such Global Security or Securities or
its nominee, shall be delivered by the Trustee or its agent to the Depositary or pursuant to the Depositary's instruction and shall bear a legend substantially to the following effect: 

14

 

 

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

        TRANSFERS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN." 

or
such other legend as may then be required by the Depositary for such Global Security or Securities. 

        (b)   Notwithstanding
any other provision of this Section 2.15 or of Section 2.07 to the contrary, and subject to the provisions of paragraph (c) below,
unless the terms of a Global Security expressly permit such Global Security to be exchanged in whole or in part for definitive Debt Securities in registered form, a Global Security may be transferred,
in whole but not in part and in the manner provided in Section 2.07, only by the Depositary to a nominee of the Depositary for such Global Security, or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary, or by the Depositary or a nominee of the Depositary to a successor Depositary for such Global Security selected or approved by the Issuers, or to a
nominee of such successor Depositary. 

        (c)   (i)    If
at any time the Depositary for a Global Security or Securities notifies the Issuers that it is unwilling or unable to continue as Depositary for such
Global Security or Securities or if at any time the Depositary for the Debt Securities for such series shall no longer be eligible or in good standing under the Exchange Act or other applicable
statute, rule or regulation, the Issuers shall appoint a successor Depositary with respect to such Global Security or Securities. If a successor Depositary for such Global Security or Securities is
not appointed by the Issuers within 90 days after the Issuers receive such notice or becomes aware of such ineligibility, the Issuers shall execute, and the Trustee or its agent, upon receipt
of an Issuer Order for the authentication and delivery of such individual Debt Securities of such series in exchange for such Global Security or Securities, will authenticate and deliver, individual
Debt Securities of such series of like tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of the Global Security or Securities in exchange for such
Global Security or Securities. 

         (ii)  If
an Event of Default occurs and the Depositary for a Global Security or Securities notifies the Trustee of its decision to require that the Debt Securities of any
series or portion thereof issued or issuable in the form of one or more Global Securities shall no longer be represented by such Global Security or Securities, the Issuers shall appoint a successor
Depositary with respect to such Global Security or Securities. In such event the Issuers will execute, and the Trustee, upon receipt of an Issuer Order for the authentication and delivery of
individual Debt Securities of such series in exchange in whole or in part for such Global Security or Securities, will authenticate and deliver individual Debt Securities of such series of like tenor
and terms in definitive form in an aggregate principal amount equal to the principal amount of such series or portion thereof in exchange for such Global Security or Securities. 

        (iii)  If
specified by the Issuers pursuant to Sections 2.01 and 2.03 with respect to Debt Securities issued or issuable in the form of a Global Security, the
Depositary for such Global 

15

 

Security
may surrender such Global Security in exchange in whole or in part for individual Debt Securities of such series of like tenor and terms in definitive form on such terms as are acceptable to
the Issuers, the Trustee and such Depositary. Thereupon the Issuers shall execute, and the Trustee or its agent upon receipt of an Issuer Order for the authentication and delivery of definitive Debt
Securities of such series shall authenticate and deliver, without service charge, to each Person specified by such Depositary a new Debt Security or Securities of the same series of like tenor and
terms and of any authorized denomination as requested by such Person in aggregate principal amount equal to and in exchange for such Person's beneficial interest in the Global Security; and to such
Depositary a new Global Security of like tenor and terms and in an authorized denomination equal to the difference, if any, between the principal amount of the surrendered Global Security and the
aggregate principal amount of Debt Securities delivered to Holders thereof. 

        (iv)  In
any exchange provided for in any of the preceding three paragraphs, the Issuers will execute and the Trustee or its agent will authenticate and deliver individual
Debt Securities. Upon the exchange of the entire principal amount of a Global Security for individual Debt Securities, such Global Security shall be canceled by the Trustee or its agent. Except as
provided in the preceding paragraph, Debt Securities issued in exchange for a Global Security pursuant to this Section 2.15 shall be registered in
such names and in such authorized denominations as the Depositary for such Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee
or the Registrar. The Trustee or the Registrar shall deliver such Debt Securities to the Persons in whose names such Debt Securities are so registered. 

         (v)  Payments
in respect of the principal of and interest on any Debt Securities registered in the name of the Depositary or its nominee will be payable to the Depositary or
such nominee in its capacity as the registered owner of such Global Security. The Issuers, any Subsidiary Guarantors and the Trustee may treat the Person in whose name the Debt Securities, including
the Global Security, are registered as the owner thereof for the purpose of receiving such payments and for any and all other purposes whatsoever. None of the Issuers, any Subsidiary Guarantors, the
Trustee, any Registrar, the paying agent or any agent of the Issuers, any Subsidiary Guarantors or the Trustee will have any responsibility or liability for any aspect of the records relating to or
payments made on account of the beneficial ownership interests of the Global Security by the Depositary or its nominee or any of the Depositary's direct or indirect participants, or for maintaining,
supervising or reviewing any records of the Depositary, its nominee or any of its direct or indirect participants relating to the beneficial ownership interests of the Global Security, the payments to
the beneficial owners of the Global Security of amounts paid to the Depositary or its nominee, or any other matter relating to the actions and practices of the Depositary, its nominee or any of its
direct or indirect participants. None of the Issuers, any Subsidiary Guarantors, the Trustee or any such agent will be liable for any delay by the Depositary, its nominee, or any of its direct or
indirect participants in identifying the beneficial owners of the Debt Securities, and the Issuers, any Subsidiary Guarantors and the Trustee may conclusively rely on, and will be protected in relying
on, instructions from the Depositary or its nominee for all purposes (including with respect to the registration and delivery, and the respective principal amounts, of the Debt Securities to be
issued). 

        Section 2.16    Medium Term Securities.    Notwithstanding any contrary provision herein, if all Debt
Securities of a series are not to be originally issued at one time, it shall not be necessary for each of the Issuers to deliver to the Trustee an Officers' Certificate, resolutions of each such
Issuer's Board of Directors, supplemental Indenture, Opinion of Counsel or written order or any other document otherwise required pursuant to Section 2.01, 2.03, 2.05 or 13.05 at or prior to
the time of authentication of each Debt Security of such series if such documents are delivered to the Trustee or its agent at or prior to the authentication upon original issuance of the first such
Debt Security of such series to be 

16

 

issued;
provided, that any subsequent request by the Issuers to the Trustee to authenticate Debt Securities of such series upon original issuance shall constitute a representation and warranty by the
Issuers that, as of the date of such request, the statements made in the Officers' Certificate delivered pursuant to Section 2.05 or 13.05 shall be true and correct as if made on such date and
that the Opinion of Counsel delivered at or prior to such time of authentication of an original issuance of Debt Securities shall specifically state that it shall relate to all subsequent issuances of
Debt Securities of such series that are identical to the Debt Securities issued in the first issuance of Debt Securities of such series. 

        An
Issuer Order delivered by the Issuers to the Trustee in the circumstances set forth in the preceding paragraph, may provide that Debt Securities which are the subject thereof will be
authenticated and delivered by the Trustee or its agent on original issue from time to time upon the telephonic or written order of Persons designated in such written order (any such telephonic
instructions to be promptly confirmed in writing by such Person) and that such Persons are authorized to determine, consistent with the Officers' Certificate, supplemental Indenture or resolution of
the Board of Directors relating to such written order, such terms and conditions of such Debt Securities as are specified in such Officers' Certificate, supplemental Indenture or such resolution. 

        Section 2.17    Defaulted Interest.    Any interest on any Debt Security of a particular series which is
payable, but is not punctually paid or duly provided for, on the dates and in the manner provided in the Debt Securities of such series and in this Indenture (herein called "Defaulted Interest") shall
forthwith cease to be payable to the Holder thereof on the relevant record date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Issuers, at their election in each
case, as provided in clause (i) or (ii) below: 

          (i)  The
Issuers may elect to make payment of any Defaulted Interest to the Persons in whose names the Debt Securities of such series are registered at the close of business
on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Issuers shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each such Debt Security of such series and the date of the proposed payment, and at the same time the Issuers shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money
when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the payment
of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by
the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Issuers of such special record date and, in the name and at the expense of the Issuers, shall cause notice of
the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage pre-paid, to each Holder thereof at its address as it appears in the
Debt Security Register, not less than 10 days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the Debt Securities of such series are registered at the close of business on such special record date. 

         (ii)  The
Issuers may make payment of any Defaulted Interest on the Debt Securities of such series in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Debt Securities of such series may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Issuers to the Trustee of the
proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. 

17

 

        Section 2.18    CUSIP Numbers.    The Issuers in issuing the Debt Securities may use "CUSIP" numbers (if then
generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to
the accuracy of such numbers either as printed on the Debt Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on
the Debt Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Issuers will promptly notify the Trustee in writing of any change in the "CUSIP"
numbers. 

 
 

  ARTICLE III
  REDEMPTION OF DEBT SECURITIES    
    

        Section 3.01    Applicability of Article.    The provisions of this Article shall be applicable to the Debt
Securities of any series which are redeemable before their Stated Maturity except as otherwise specified as contemplated by Section 2.03 for Debt Securities of such series. 

        Section 3.02    Notice of Redemption; Selection of Debt Securities.    In case the Issuers shall desire to
exercise the right to redeem all or, as the case may be, any part of the Debt Securities of any series in accordance with their terms, by resolution of the Board of Directors of each Issuer or a
supplemental Indenture, the Issuers shall fix a date for redemption and shall give notice of such redemption at least 30 and not more than 60 days prior to the date fixed for redemption to the
Holders of Debt Securities of such series so to be redeemed as a whole or in part, in the manner provided in Section 13.03. The notice if given in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the Holder receives such notice. In any case, failure to give such notice or any defect in the notice to the Holder of any Debt Security
of a series designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Debt Security of such series. 

        Each
such notice of redemption shall specify (i) the date fixed for redemption, (ii) the redemption price at which Debt Securities of such series are to be redeemed (or the
method of calculating such redemption price), (iii) the Place or Places of Payment that payment will be made upon presentation and surrender of such Debt Securities, (iv) that any
interest accrued to the date fixed for redemption will be paid as specified in said notice, (v) that the redemption is for a sinking fund payment (if
applicable), (vi) that, unless otherwise specified in such notice, if the Issuers default in making such redemption payment or if the Debt Securities of that series are subordinated pursuant to
the terms of Article XII, the paying agent is prohibited from making such payment pursuant to the terms of this Indenture, (vii) that on and after said date any interest thereon or on
the portions thereof to be redeemed will cease to accrue, (viii) that in the case of Original Issue Discount Securities original issue discount accrued after the date fixed for redemption will
cease to accrue, (ix) the terms of the Debt Securities of that series pursuant to which the Debt Securities of that series are being redeemed and (x) that no representation is made as to
the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Debt Securities of that series. If less than all the Debt Securities of a series are to be redeemed the
notice of redemption shall specify the certificate numbers of any Debt Securities of that series to be redeemed that are not in global form. In case any Debt Security of a series is to be redeemed in
part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that on and after the date fixed for redemption, upon surrender of such Debt
Security, a new Debt Security or Debt Securities of that series in principal amount equal to the unredeemed portion thereof, will be issued. 

        At
least five days before the giving of any notice of redemption, unless the Trustee consents to a shorter period, the Issuers shall give written notice to the Trustee of the Redemption
Date, the principal amount of Debt Securities to be redeemed and the series and terms of the Debt Securities pursuant to which such redemption will occur. Such notice shall be accompanied by an
Officers' 

18

 

Certificate
and an Opinion of Counsel from the Issuers to the effect that such redemption will comply with the conditions herein, and such notice may be revoked at any time prior to the giving of a
notice of redemption to the Holders pursuant to this Section 3.02. If fewer than all the Debt Securities of a series are to be redeemed, the record date relating to such redemption shall be
selected by the Issuers and given in writing to the Trustee, which record date shall be not less than three days after the date of notice to the Trustee. 

        By
11 a.m., New York City time, on the Redemption Date for any Debt Securities, the Issuers shall deposit with the Trustee or with a paying agent (or, if an Issuer is acting as
its own paying agent, segregate and hold in trust) an amount of money in Dollars (except as provided pursuant to Section 2.03) sufficient to pay the redemption price of such Debt Securities or
any portions thereof that are to be redeemed on that date, together with any interest accrued to the Redemption Date. 

        If
less than all the Debt Securities of like tenor and terms of a series are to be redeemed (other than pursuant to mandatory sinking fund redemptions), the Trustee shall select, on a
pro rata basis, by lot or by such other method as in its sole discretion it shall deem appropriate and fair, the Debt Securities of that series or portions thereof (in multiples of $1,000) to be
redeemed. In any case where more than one Debt Security of such series is registered in the same name, the Trustee in its discretion may treat the aggregate principal amount so registered as if it
were represented by one Debt Security of such series. The Trustee shall promptly notify the Issuers in writing of the Debt Securities selected for redemption and, in the case of any Debt Securities
selected for partial redemption, the principal amount thereof to be redeemed. If any Debt Security called for redemption shall not be so paid upon surrender thereof on such Redemption Date, the
principal, premium, if any, and interest shall bear
interest until paid from the Redemption Date at the rate borne by the Debt Securities of that series. If less than all the Debt Securities of unlike tenor and terms of a series are to be redeemed, the
particular Debt Securities to be redeemed shall be selected by the Issuers. Provisions of this Indenture that apply to Debt Securities called for redemption also apply to portions of Debt Securities
called for redemption. 

        Section 3.03    Payment of Debt Securities Called for Redemption.    If notice of redemption has been given as
provided in Section 3.02, the Debt Securities or portions of Debt Securities of the series with respect to which such notice has been given shall become due and payable on the date and at the
Place or Places of Payment stated in such notice at the applicable redemption price, together with any interest accrued to the date fixed for redemption, and on and after said date (unless the Issuers
shall default in the payment of such Debt Securities at the applicable redemption price, together with any interest accrued to said date) any interest on the Debt Securities or portions of Debt
Securities of any series so called for redemption shall cease to accrue, and any original issue discount in the case of Original Issue Discount Securities shall cease to accrue. On presentation and
surrender of such Debt Securities at the Place or Places of Payment in said notice specified, the said Debt Securities or the specified portions thereof shall be paid and redeemed by the Issuers at
the applicable redemption price, together with any interest accrued thereon to the date fixed for redemption. 

        Any
Debt Security that is to be redeemed only in part shall be surrendered at the Place of Payment with, if the Issuers, the Registrar or the Trustee so requires, due endorsement by, or
a written instrument of transfer in form satisfactory to the Issuers, the Registrar and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing, and the Issuers
shall execute, and the Trustee shall authenticate and deliver to the Holder of such Debt Security without service charge, a new Debt Security or Debt Securities of the same series, of like tenor and
form, of any authorized denomination as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Debt Security so surrendered;
except that if a Global Security is so surrendered, the Issuers shall execute, and the Trustee shall authenticate and deliver to the Depositary for such Global Security, without service charge, a new
Global Security in a denomination equal to and in exchange for the unredeemed portion of the principal of the Global 

19

 

Security
so surrendered. In the case of a Debt Security providing appropriate space for such notation, at the option of the Holder thereof, the Trustee, in lieu of delivering a new Debt Security or
Debt Securities as aforesaid, may make a notation on such Debt Security of the payment of the redeemed portion thereof. 

        Section 3.04    Mandatory and Optional Sinking Funds.    The minimum amount of any sinking fund payment
provided for by the terms of Debt Securities of any series, resolution of the Board of Directors or a supplemental Indenture is herein referred to as a "mandatory sinking fund payment," and any
payment in excess of such minimum amount provided for by the terms of Debt Securities of any series, resolution of the Board of Directors or a supplemental Indenture is herein referred to as an
"optional sinking fund payment." 

        In
lieu of making all or any part of any mandatory sinking fund payment with respect to any Debt Securities of a series in cash, the Issuers may at their option (a) deliver to the
Trustee Debt Securities of that series theretofore purchased or otherwise acquired by the Issuers or (b) receive credit for the principal amount of Debt Securities of that series which have
been redeemed either at the election of the Issuers pursuant to the terms of such Debt Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such
Debt Securities, resolution or supplemental Indenture; provided, that such Debt Securities have not been previously so credited. Such Debt Securities shall be received and credited for such purpose by
the Trustee at the redemption price specified in such Debt Securities, resolution or supplemental Indenture for redemption through operation of the sinking fund and the amount of such mandatory
sinking fund payment shall be reduced accordingly. 

        Section 3.05    Redemption of Debt Securities for Sinking Fund.    Not less than 60 days prior to each
sinking fund payment date for any series of Debt Securities, the Issuers will deliver to the Trustee an Officers' Certificate specifying the amount of the next ensuing sinking fund payment for that
series pursuant to the terms of that series, any resolution or supplemental Indenture, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Debt Securities of that series pursuant to this Section 3.05 (which Debt Securities, if not previously redeemed, will accompany such certificate)
and whether the Issuers intend to exercise its right to make any permitted optional sinking fund payment with respect to such series. Such certificate shall also state that no Event of Default has
occurred and is continuing with respect to such series. Such certificate shall be irrevocable and upon its delivery the Issuers shall be obligated to make the cash payment or payments therein referred
to, if any, by 11 a.m., New York City time, on the next succeeding sinking fund payment date. Failure of the Issuers to deliver such certificate (or to deliver the Debt Securities specified in
this paragraph) shall not constitute a Default, but such failure shall require that the sinking fund payment due on the next succeeding sinking fund payment date for that series shall be paid entirely
in cash and shall be sufficient to redeem the principal amount of such Debt Securities subject to a mandatory sinking fund payment without the option to deliver or credit Debt Securities as provided
in this Section 3.05 and without the right to make any optional sinking fund payment, if any, with respect to such series. 

20

 

 

        Any sinking fund payment or payments (mandatory or optional) made in cash plus any unused balance of any preceding sinking fund payments made in cash which shall equal or exceed $100,000
(or a lesser sum if the Issuers shall so request) with respect to the Debt Securities of any particular series shall be applied by the Trustee on the sinking fund payment date on which such payment is
made (or, if such payment is made before a sinking fund payment date, on the sinking fund payment date following the date of such payment) to the redemption of such Debt Securities at the redemption
price specified in such Debt Securities, resolution or supplemental Indenture for operation of the sinking fund together with any accrued interest to the date fixed for redemption. Any sinking fund
moneys not so applied or allocated by the Trustee to the redemption of Debt Securities shall be added to the next cash sinking fund payment received by the Trustee for such series and, together with
such payment, shall be applied in accordance with the provisions of this Section 3.05. Any and all sinking fund moneys with respect to the Debt Securities of any particular series held by the
Trustee on the last sinking fund payment date with respect to Debt Securities of such series and not held for the payment or redemption of particular Debt Securities shall be applied by the Trustee,
together with other moneys, if necessary, to be deposited sufficient for the purpose, to the payment of the principal of the Debt Securities of that series at its Stated Maturity. 

        The
Trustee shall select the Debt Securities to be redeemed upon such sinking fund payment date in the manner specified in the last paragraph of Section 3.02 and the Issuers shall
cause notice of the redemption thereof to be given in the manner provided in Section 3.02 except that the notice of redemption shall also state that the Debt Securities are being redeemed by
operation of the sinking fund. Such notice having been duly given, the redemption of such Debt Securities shall be made upon the terms and in the manner stated in Section 3.03. 

        The
Trustee shall not redeem any Debt Securities of a series with sinking fund moneys or mail any notice of redemption of such Debt Securities by operation of the sinking fund for such
series during the continuance of a Default in payment of interest on such Debt Securities or of any Event of Default (other than an Event of Default occurring as a consequence of this paragraph) with
respect to such Debt Securities, except that if the notice of redemption of any such Debt Securities shall theretofore have been mailed in accordance with the provisions hereof, the Trustee shall
redeem such Debt Securities if cash sufficient for that purpose shall be deposited with the Trustee for that purpose in accordance with the terms of this Article III. Except as aforesaid, any
moneys in the sinking fund for
such series at the time when any such Default or Event of Default shall occur and any moneys thereafter paid into such sinking fund shall, during the continuance of such Default or Event of Default,
be held as security for the payment of such Debt Securities; provided, however, that in case such Default or Event of Default shall have been cured or waived as provided herein, such moneys shall
thereafter be applied on the next sinking fund payment date for such Debt Securities on which such moneys may be applied pursuant to the provisions of this Section 3.05. 

 
 

  ARTICLE IV
  PARTICULAR COVENANTS OF THE ISSUERS    
    

        Section 4.01    Payment of Principal of, and Premium, If Any, and Interest on, Debt Securities.    The
Issuers, for the benefit of each series of Debt Securities, will duly and punctually pay or cause to be paid the principal of, and premium, if any, and interest on, each of the Debt Securities at the
place, at the respective times and in the manner provided herein or in the Debt Securities. Each installment of interest on any Debt Securities not in global form may at the Issuers' option be paid by
mailing checks for such interest payable to the Person entitled thereto pursuant to Section 2.07(a) to the address of such Person as it appears on the Debt Security Register. 

        Principal
of and premium and interest on Debt Securities of any series shall be considered paid on the date due if, by 11 a.m., New York City time, on such date the Trustee or any
paying agent holds in accordance with this Indenture money sufficient to pay all principal, premium and interest then due 

21

 

and,
in the case of Debt Securities subordinated pursuant to the terms of Article XII, the Trustee or such paying agent, as the case may be, is not prohibited from paying such money to the
Holders on that date pursuant to the terms of this Indenture. 

        The
Issuers shall pay interest on overdue principal or premium, if any, at the rate specified therefor in the Debt Securities, and it shall pay interest on overdue installments of
interest at the same rate to the extent lawful. 

        Section 4.02    Maintenance of Offices or Agencies for Registration of Transfer, Exchange and Payment of Debt
Securities.    The Issuers will maintain in each Place of Payment for any series of Debt Securities an office or agency where Debt Securities of such series may be
presented or surrendered for payment, and it shall also maintain (in or outside such Place of Payment) an office or agency where Debt Securities of such series may be surrendered for transfer or
exchange and where notices and demands to or upon
the Issuers in respect of the Debt Securities of such series and this Indenture may be served. The Issuers will give prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Issuers shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the office of the Trustee where its corporate trust business is principally administered in the United States, and the Issuers
hereby appoint the Trustee as their agent to receive all presentations, surrenders, notices and demands. 

        The
Issuers may also from time to time designate different or additional offices or agencies to be maintained for such purposes (in or outside of such Place of Payment), and may from
time to time rescind any such designation; provided, however, that no such designation or rescission shall in any manner relieve the Issuers of their obligations described in the preceding paragraph.
The Issuers will give prompt written notice to the Trustee of any such additional designation or rescission of designation and any change in the location of any such different or additional office or
agency. 

        Section 4.03    Appointment to Fill a Vacancy in the Office of Trustee.    The Issuers, whenever necessary to
avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.08, a Trustee, so that there shall at all times be a Trustee hereunder with respect to each
series of Debt Securities. 

        Section 4.04    Duties of Paying Agents, etc.    

        (a)   The
Issuers shall cause each paying agent, if any, other than the Trustee, to execute and deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provisions of this Section 4.04, 

          (i)  that
it will hold all sums held by it as such agent for the payment of the principal of, and premium, if any, or interest on, the Debt Securities of any series (whether
such sums have been paid to it by the Issuers or by any other obligor on the Debt Securities of such series) in trust for the benefit of the Holders of the Debt Securities of such series; 

         (ii)  that
it will give the Trustee notice of any failure by the Issuers (or by any other obligor on the Debt Securities of such series) to make any payment of the principal
of, and premium, if any, or interest on, the Debt Securities of such series when the same shall be due and payable; and 

        (iii)  that
it will at any time during the continuance of an Event of Default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held by it as
such agent. 

        (b)   If
either of the Issuers shall act as its own paying agent, it will, on or before each due date of the principal of, and premium, if any, or interest on, the Debt
Securities of any series, set aside, segregate and hold in trust for the benefit of the Holders of the Debt Securities of such series a sum sufficient to pay such principal, premium, if any, or
interest so becoming due. The Issuers will promptly notify the Trustee of any failure by either of the Issuers to take such action or the failure by any other 

22

 

obligor
on such Debt Securities to make any payment of the principal of, and premium, if any, or interest on, such Debt Securities when the same shall be due and payable. 

        (c)   Anything
in this Section 4.04 to the contrary notwithstanding, either of the Issuers may, at any time, for the purpose of obtaining a satisfaction and discharge
of this Indenture, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by it or any paying agent, as required by this Section 4.04, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by such Issuer or such paying agent. 

        (d)   Whenever
the Issuers shall have one or more paying agents with respect to any series of Debt Securities, they will, prior to each due date of the principal of, and
premium, if any, or interest on, any Debt Securities of such series, deposit with any such paying agent a sum sufficient to pay the principal, premium or interest so becoming due, such sum to be held
in trust for the benefit of the Persons entitled thereto, and (unless any such paying agent is the Trustee) the Issuers will promptly notify the Trustee of its action or failure so to act. 

        (e)   Anything
in this Section 4.04 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 4.04 is subject to the
provisions of Section 11.05. 

        Section 4.05    SEC Reports; Financial Statements.    

        (a)   The
Partnership shall, so long as any of the Debt Securities are Outstanding, file with the Trustee, within 30 days after it files the same with the SEC, copies
of the annual reports and the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) that the Partnership is
required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. If the Partnership is not subject to the requirements of such Section 13 or 15(d), the Partnership
shall file with the Trustee, within 30 days after it would have been required to file the same with the SEC, financial statements, including any notes thereto (and with respect to annual
reports, an auditors' report by a firm of established national reputation), and a "Management's Discussion and Analysis of Financial Condition and Results of Operations," both comparable to that which
the Partnership would have been required to include in such annual reports, information, documents or other reports if the Partnership had been subject to the requirements of such Section 13 or
15 (d). The Issuers shall also comply with the provisions of TIA Section 314 (a). 

        (b)   The
Partnership shall provide the Trustee with a sufficient number of copies of all reports and other documents and information that the Trustee may be required to
deliver to Holders under this Section. 

        (c)   The
Partnership shall, so long as any of the Notes are Outstanding, deliver to the Trustee, within 30 days of any Officer of the Partnership becoming aware of the
occurrence of any Event of Default, an Officers' Certificate specifying such Event of Default and what action the Partnership is taking or proposes to take with respect thereto. 

        Section 4.06    Compliance Certificate.    

        (a)   Each
of the Issuers and any Subsidiary Guarantor shall, so long as any of the Debt Securities are Outstanding, deliver to the Trustee, within 120 days after the
end of each fiscal year of the Partnership, an Officers' Certificate stating that a review of the activities of the Partnership and its Subsidiaries during the preceding fiscal year has been made
under the supervision of the Officers signing the certificate with a view to determining whether each of the Issuers and any Subsidiary Guarantor has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his knowledge each of the Issuers and any Subsidiary Guarantor has kept,
observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of 

23

 

the
terms, provisions and conditions hereof, without regard to any grace period or requirement of notice required by this Indenture (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which such Officer may have knowledge and what action the Issuers or any Subsidiary Guarantor is taking or proposes to take with respect thereto)
and that to the best of his knowledge no event has occurred and remains in existence by reason of which payments on account of the principal of, or premium, if any, or interest, if any, on the Debt
Securities are prohibited or, if such event has occurred, a description of the event and what action the Partnership or any Subsidiary Guarantor is taking or proposes to take with respect thereto. 

        (b)   The
Partnership shall, so long as any of the Debt Securities are Outstanding, deliver to the Trustee within 30 days after the occurrence of any Default or Event
of Default under this Indenture, an Officers' Certificate specifying such Default or Event of Default, the status thereof and what action the Partnership is taking or proposes to take with respect
thereto. 

        Section 4.07    Further Instruments and Acts.    The Partnership will, upon request of the Trustee, execute
and deliver such further instruments and do such further acts as may reasonably be necessary or proper to carry out more effectually the purposes of this Indenture. 

        Section 4.08    Existence.    Except as permitted by Article X hereof, the Partnership shall do or
cause to be done all things necessary to preserve and keep in full force and effect its existence and all rights (charter and statutory) and franchises of the Partnership, provided that the
Partnership shall not be required to preserve any such right or franchise, if its Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business
of the Partnership. 

        Section 4.09    Maintenance of Properties.    The Partnership shall cause all properties owned by the
Partnership or any of its Subsidiaries or used or held for use in the conduct of its business or the business of any such Subsidiary to be maintained and kept in good condition, repair and working
order (reasonable wear and tear excepted) and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all
as in the judgment of the Partnership may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided that nothing in this
Section shall prevent the Partnership from discontinuing the operation or maintenance of any of such properties if such discontinuance is, in the judgment of the Partnership, desirable in the conduct
of its business or the business of any such Subsidiary and not disadvantageous in any material respect to the Holders. 

        Section 4.10    Payment of Taxes and Other Claims.    The Partnership shall pay or discharge or cause to be
paid or discharged, before the same shall become delinquent, (i) all taxes, assessments and governmental charges levied or imposed upon the Partnership or any of its Subsidiaries or upon the
income, profits or property of the Partnership or any of its Subsidiaries, and (ii) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a Lien upon the
property of the Partnership or any of its Subsidiaries; provided that the Partnership shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or
claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings. 

        Section 4.11    Waiver of Certain Covenants.    The Issuers and the Subsidiary Guarantors may, with respect to
the Debt Securities of any series, omit in any particular instance to comply with any covenant set forth in this Article IV (except Sections 4.01 through 4.08) or made applicable to such
Debt Securities pursuant to Section 2.03, if, before or after the time for such compliance, the Holders of at least a majority in principal amount of the Outstanding Debt Securities of each
series affected, waive such compliance in such instance with such covenant, but no such waiver shall extend to or affect such covenant except to the extent so expressly waived, and, until such waiver
shall become effective, the obligations of the Issuers and the Subsidiary Guarantors and the duties of the Trustee in respect of any such covenant shall remain in full force and effect. 

24

 
 
 

  ARTICLE V
  HOLDERS' LISTS AND REPORTS BY THE TRUSTEE    
    

        Section 5.01    Issuers to Furnish Trustee Information as to Names and Addresses of Holders; Preservation of
Information.    The Issuers covenant and agree that they will furnish or cause to be furnished to the Trustee with respect to the Debt Securities of each series: 

        (a)   not
more than 10 days after each record date with respect to the payment of interest, if any, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders as of such record date, and 

        (b)   at
such other times as the Trustee may request in writing, within 30 days after the receipt by the Issuers of any such request, a list of similar form and
contents as of a date not more than 15 days prior to the time such list is furnished; 

provided,
however, that so long as the Trustee shall be the Registrar, such lists shall not be required to be furnished. 

        The
Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the Holders (i) contained in the most recent list
furnished to it as provided in this Section 5.01 or (ii) received by it in the capacity of paying agent or Registrar (if so acting) hereunder. 

        The
Trustee may destroy any list furnished to it as provided in this Section 5.01 upon receipt of a new list so furnished. 

        Section 5.02    Communications to Holders.    Holders may communicate pursuant to Section 312(b) of the
TIA with other Holders with respect to their rights under this Indenture or the Debt Securities. The Issuers, the Trustee, the Registrar and anyone else shall have the protection of
Section 312(c) of the TIA. 

        Section 5.03    Reports by Trustee.    Within 60 days after each January 31, beginning with the
first January 31 following the date of this Indenture, and in any event on or before April 1 in each year, the Trustee shall mail to Holders a brief report dated as of such
January 31 that complies with TIA Section 313 (a); provided, however, that if no event described in TIA Section 313 (a) has occurred within the twelve months preceding the
reporting date, no report need be transmitted. The Trustee also shall comply with TIA Section 313 (b). 

        Reports
pursuant to this Section 5.03 shall be transmitted by mail: 

        (a)   to
all Holders, as the names and addresses of such Holders appear in the Debt Security Register; and 

        (b)   except
in the cases of reports under Section 313(b)(2) of the TIA, to each Holder of a Debt Security of any series whose name and address appear in the
information preserved at the time by the Trustee in accordance with Section 5.01. 

        A
copy of each report at the time of its mailing to Holders shall be filed with the Securities and Exchange Commission and each stock exchange (if any) on which the Debt Securities of
any series are listed. The Issuers agree to notify promptly the Trustee whenever the Debt Securities of any series become listed on any stock exchange and of any delisting thereof. 

        Section 5.04    Record Dates for Action by Holders.    If the Issuers shall solicit from the Holders of Debt
Securities of any series any action (including the making of any demand or request, the giving of any direction, notice, consent or waiver or the taking of any other action), the Issuers may, at their
option, by resolution of their respective Boards of Directors, fix in advance a record date for the determination of Holders of Debt Securities entitled to take such action, but the Issuers shall have
no 

25

 

obligation
to do so. Any such record date shall be fixed at the Issuers' discretion. If such a record date is fixed, such action may be sought or given before or after the record date, but only the
Holders of Debt Securities of record at the close of business on such record date shall be deemed to be Holders of Debt Securities for the purpose of determining whether Holders of the requisite
proportion of Debt Securities of such series Outstanding have authorized or agreed or consented to such action, and for that purpose the Debt Securities of such series Outstanding shall be computed as
of such record date. 

 
 

  ARTICLE VI
  REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT    
    

        Section 6.01    Events of Default.    If any one or more of the following shall have occurred and be
continuing with respect to Debt Securities of any series (each of the following, an "Event of Default"): 

        (a)   default
in the payment of any installment of interest upon any Debt Securities of that series as and when the same shall become due and payable, whether or not such
payment shall be prohibited by Article XII, if applicable, and continuance of such default for a period of 30 days; or 

        (b)   default
in the payment of the principal of or premium, if any, on any Debt Securities of that series as and when the same shall become due and payable, whether at Stated
Maturity, upon redemption, by declaration, upon required repurchase or otherwise, whether or not such payment shall be prohibited by Article XII, if applicable; or 

        (c)   default
in the payment of any sinking fund payment with respect to any Debt Securities of that series as and when the same shall become due and payable; or 

        (d)   failure
on the part of the Issuers, or if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, any of the
Subsidiary Guarantors, duly to observe or perform any other of the covenants or agreements on the part of the Issuers, or if applicable, any of the Subsidiary Guarantors, in the Debt Securities of
that series, in any resolution of the Board of Directors authorizing the issuance of that series of Debt Securities, in this Indenture with respect to such series or in any supplemental Indenture with
respect to such series (other than a covenant a default in the performance of which is elsewhere in this Section specifically dealt with), continuing for a period of 60 days after the date on
which written notice specifying such failure and requiring the Issuers, or if applicable, the Subsidiary Guarantors, to remedy the same shall have been given to the Issuers, or if applicable, the
Subsidiary Guarantors, by the Trustee or to the Issuers, or if applicable, the Subsidiary Guarantors, and the Trustee by the Holders of at least 25% in aggregate principal amount of the Debt
Securities of that series at the time Outstanding; or 

        (e)   either
of the Issuers, or if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, any of the Subsidiary
Guarantors, pursuant to or within the meaning of any Bankruptcy Law, 

          (i)  commences
a voluntary case, 

         (ii)  consents
to the entry of an order for relief against it in an involuntary case, 

        (iii)  consents
to the appointment of a Custodian of it or for all or substantially all of its property; or 

        (iv)  makes
a general assignment for the benefit of its creditors; 

        (f)    a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

          (i)  is
for relief against either of the Issuers, or if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, any of
the Subsidiary Guarantors, as debtor in an involuntary case, 

26

 

         (ii)  appoints
a Custodian of either of the Issuers, or if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, any of
the Subsidiary Guarantors, or a Custodian for all or substantially all of the property of either of the Issuers, or if applicable, any of the Subsidiary Guarantors, or 

        (iii)  orders
the liquidation of either of the Issuers, or if any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, any
of the Subsidiary Guarantors, 

and
the order or decree remains unstayed and in effect for 60 days; 

        (g)   if
any series of Debt Securities Outstanding under this Indenture is entitled to the benefits of the Guarantee, the Guarantee of any of the Subsidiary Guarantors ceases
to be in full force and effect with respect to Debt Securities of that series (except as otherwise provided in this Indenture) or is declared null and void in a judicial proceeding or any of the
Subsidiary Guarantors denies or disaffirms its obligations under this Indenture or such Guarantee; or 

        (h)   any
other Event of Default provided with respect to Debt Securities of that series; 

then
and in each and every case that an Event of Default described in clause (a), (b), (c), (d), (g), or (h) with respect to Debt Securities of that series at the time Outstanding occurs
and is continuing, unless the principal of, premium, if any, and accrued and unpaid interest on all the Debt Securities of that series shall have already become due and payable, either the Trustee or
the Holders of not less than 25% in aggregate principal amount of the Debt Securities of that series then Outstanding hereunder, by notice in writing to the Issuers (and to the Trustee if given by
Holders), may declare the principal of (or, if the Debt Securities of that series are Original Issue Discount Debt Securities, such portion of the principal amount as may be specified in the terms of
that series), premium, if any, and
interest on all the Debt Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this
Indenture or in the Debt Securities of that series contained to the contrary notwithstanding. If an Event of Default described in clause (e) or (f) occurs with respect to either of the
Issuers, then and in each and every such case, unless the principal of and accrued and unpaid interest on all the Debt Securities shall have become due and payable, the principal of (or, if the Debt
Securities of that series are Original Issue Discount Debt Securities, such portion of the principal amount as may be specified in the terms thereof), premium, if any, and interest on all the Debt
Securities then Outstanding hereunder shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holders, anything in this
Indenture or in the Debt Securities contained to the contrary notwithstanding. 

        The
Holders of a majority in aggregate principal amount of the Debt Securities of a particular series by written notice to the Trustee may rescind an acceleration and its consequences if
the rescission would not conflict with any judgment or decree of a court of competent jurisdiction already rendered and if all existing Events of Default with respect to that series have been cured or
waived except nonpayment of principal, premium, if any, or interest that has become due solely because of acceleration. Upon any such rescission, the parties hereto shall be restored respectively to
their several positions and rights hereunder, and all rights, remedies and powers of the parties hereto shall continue as though no such proceeding had been taken. 

        Section 6.02    Collection of Debt by Trustee, etc.    If an Event of Default occurs and is continuing, the
Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid
or enforce the performance of any provision of the Debt Securities of the affected series or this Indenture, and may prosecute any such action or proceedings to judgment or final decree, and may
enforce any such judgment or final decree against any of the Subsidiary Guarantors or the Issuers or 

27

 

any
other obligor upon the Debt Securities of such series (and collect in the manner provided by law out of the property of any of the Subsidiary Guarantors or the Issuers or any other obligor upon
the Debt Securities of such series wherever situated the moneys adjudged or decreed to be payable). 

        In
case there shall be pending proceedings for the bankruptcy or for the reorganization of any of the Subsidiary Guarantors or the Issuers or any other obligor upon the Debt Securities
of any series under any Bankruptcy Law, or in case a Custodian shall have been appointed for its property, or in case of any other similar judicial proceedings relative to any of the Subsidiary
Guarantors or the Issuers or any other obligor upon the Debt Securities of any series, its creditors or its property, the Trustee, irrespective of whether the principal of Debt Securities of any
series shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this
Section 6.02, shall be entitled and empowered, by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal, premium, if any, and
interest (or, if the Debt Securities of such series are Original Issue Discount Debt Securities, such portion of the principal amount as may be specified in the terms of such series) owing and unpaid
in respect of the Debt Securities of such series, and to file such other
papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for reasonable compensation to the Trustee, its agents, attorneys and counsel, and
for reimbursement of all expenses and liabilities incurred, and all advances made, by the Trustee except as a result of its negligence or bad faith) and of the Holders thereof allowed in any such
judicial proceedings relative to any of the Subsidiary Guarantors or the Issuers, or any other obligor upon the Debt Securities of such series, its creditors or its property, and to collect and
receive any moneys or other property payable or deliverable on any such claims, and to distribute all amounts received with respect to the claims of such Holders and of the Trustee on their behalf,
and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of such Holders to make payments to the Trustee, and, in the event that the Trustee shall consent to
the making of payments directly to such Holders, to pay to the Trustee such amount as shall be sufficient to cover reasonable compensation to the Trustee, its agents, attorneys and counsel, and all
other reasonable expenses and liabilities incurred, and all advances made, by the Trustee except as a result of its negligence or bad faith. 

        All
rights of action and of asserting claims under this Indenture, or under any of the Debt Securities of any series, may be enforced by the Trustee without the possession of any such
Debt Securities, or the production thereof in any trial or other proceedings relative thereto, and any such action or proceedings instituted by the Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment (except for any amounts payable to the Trustee pursuant to Section 7.06) shall be for the ratable benefit of the Holders of all the Debt
Securities in respect of which such action was taken. 

        In
case of an Event of Default hereunder the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any
covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law. 

        Section 6.03    Application of Moneys Collected by Trustee.    Any moneys or other property collected by the
Trustee pursuant to Section 6.02 with respect to Debt Securities of any series shall be applied, after giving effect to the provisions of Article XII, if applicable, in the order
following, at the date or dates fixed by the Trustee for the distribution of such moneys or other property, upon presentation of the several Debt Securities of such series in respect of which moneys
or other property have been 

28

 

collected,
and the notation thereon of the payment, if only partially paid, and upon surrender thereof if fully paid: 

        FIRST:    To
the payment of all money due the Trustee pursuant to Section 7.06; 

        SECOND:    In
case the principal of the Outstanding Debt Securities in respect of which such moneys have been collected shall not have become due, to the payment of interest on
the Debt Securities of such series in the order of the maturity of the installments of such interest, with interest (to the extent that such interest has been collected by the Trustee) upon the
overdue installments of interest at the rate or Yield to Maturity (in the case of Original Issue Discount Debt Securities) borne by the Debt Securities of such series, such payments to be made ratably
to the Persons entitled thereto, without discrimination or preference; 

        THIRD:    In
case the principal of the Outstanding Debt Securities in respect of which such moneys have been collected shall have become due, by declaration or otherwise, to
the payment of the whole amount then owing and unpaid upon the Debt Securities of such series for principal and premium, if any, and interest, with interest on the overdue principal and premium, if
any, and (to the extent that such interest has been collected by the Trustee) upon overdue installments of interest at the rate or Yield to Maturity (in the case of Original Issue Discount Debt
Securities) borne by the Debt Securities of such series; and, in case such moneys shall be insufficient to pay in full the whole amount so due and unpaid upon the Debt Securities of such series, then
to the payment of such principal and premium, if any, and interest, without preference or priority of principal and premium, if any, over interest, or of interest over principal and premium, if any,
or of any installment of interest over any other installment of interest, or of any Debt Security of such series over any Debt Security of such series, ratably to the aggregate of such principal and
premium, if any, and interest; and 

        FOURTH:    The
remainder, if any, shall be paid to the Subsidiary Guarantors or the Issuers, as applicable, or to whomsoever may be lawfully entitled to receive the same, or as
a court of competent jurisdiction may direct. 

        The
Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 6.03. At least 15 days before such record date, the Issuers shall
mail to each Holder and the Trustee a notice that states the record date, the payment date and amount to be paid. 

        Section 6.04    Limitation on Suits by Holders.    No Holder of any Debt Security of any series shall have any
right by virtue or by availing of any provision of this Indenture to institute any action or proceeding at law or in equity or in bankruptcy or otherwise, upon or under or with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless such Holder previously shall have given to the Trustee written notice of an Event of Default with
respect to Debt Securities of that same series and of the continuance thereof and unless the Holders of not less than 25% in aggregate principal amount of the Outstanding Debt Securities of that
series shall have made written request upon the Trustee to institute such action or proceedings in respect of such Event of Default in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity or security as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee, for 60 days after its receipt of
such notice, request and offer of indemnity or security shall have failed to institute any such action or proceedings and no direction inconsistent with such written request shall have been given to
the Trustee pursuant to Section 6.06; it being understood and intended, and being expressly covenanted by the Holder of every Debt Security with every other Holder and the Trustee, that no one
or more Holders shall have any right in any manner whatever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any Holders, or to obtain or seek
to obtain priority over or preference to any other such Holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all
such Holders. For the protection and 

29

 

enforcement
of the provisions of this Section 6.04, each and every Holder and the Trustee shall be entitled to such relief as can be given either at law or in equity. 

        Notwithstanding
any other provision in this Indenture, however, the right of any Holder of any Debt Security to receive payment of the principal of, and premium, if any, and (subject to
Section 2.12) interest on, such Debt Security, on or after the respective due dates expressed in such Debt Security, and to institute suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of such Holder. 

        Section 6.05    Remedies Cumulative; Delay or Omission in Exercise of Rights Not a Waiver of Default.    All
powers and remedies given by this Article VI to the Trustee or to the Holders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers
and remedies available to the Trustee or the Holders, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no
delay or omission of the Trustee or of any Holder to exercise any right or power accruing upon any Default occurring and continuing as aforesaid, shall impair any such right or power, or shall be
construed to be a waiver of any such Default or an acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given by this Article VI or by law to the
Trustee or to the Holders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Holders. 

        Section 6.06    Rights of Holders of Majority in Principal Amount of Debt Securities to Direct Trustee and to Waive
Default.    The Holders of not less than a majority in aggregate principal amount of the Debt Securities of any series at the time Outstanding shall have the right to
direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or of exercising any right, trust or power conferred on the Trustee, with respect to the Debt Securities of such series;
provided, however, that such direction shall not be otherwise than in accordance with law and the provisions of this Indenture, and that subject to the provisions of Section 7.01, the Trustee
shall have the right to decline to follow any such direction if the Trustee being advised by counsel shall determine that the action so directed may not lawfully be taken or is inconsistent with any
provision of this Indenture, or if the Trustee shall by a responsible officer or officers determine that the action so directed would involve it in personal liability or would be unduly prejudicial to
Holders of Debt Securities of such series not taking part in such direction; and provided, further, however, that nothing in this Indenture contained shall impair the right of the Trustee to take any
action deemed proper by the Trustee and which is not inconsistent with such direction by such Holders. The Holders of not less than a majority in aggregate principal amount of the Debt Securities of
any series at the time Outstanding may on behalf of the Holders of all the Debt Securities of that series waive any past Default or Event of Default and its consequences for that series, except a
Default or Event of Default in the payment of the principal of, and premium, if any, or interest on, any of the Debt Securities and a Default or Event of Default in respect of a provision that under
Section 9.02 cannot be amended without the consent of each Holder affected thereby. In case of any such waiver, such Default shall cease to exist, any Event of Default arising therefrom shall
be deemed to have been cured for every purpose of this Indenture, and the Subsidiary Guarantors, the Issuers, the Trustee and the Holders of the Debt Securities of that series shall be restored to
their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. 

        Section 6.07    Trustee to Give Notice of Events of Defaults Known to It, but May Withhold Such Notice in Certain
Circumstances.    The Trustee shall, within 90 days after the occurrence of an Event of Default, or if later, within 30 days after the Trustee obtains
actual knowledge of the Event of Default, with respect to a series of Debt Securities give to the Holders thereof, in the manner provided in Section 13.03, notice of all Events of Default with
respect to such series known to the Trustee, unless such Events of Default shall have been cured or waived before the giving of such notice; provided, that, 

30

 

except
in the case of an Event of Default in the payment of the principal of, or premium, if any, or interest on, any of the Debt Securities of such series or in the making of any sinking fund payment
with respect to the Debt Securities of such series, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a committee of
directors or responsible officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Holders thereof. 

        Section 6.08    Requirement of an Undertaking to Pay Costs in Certain Suits under the Indenture or Against the
Trustee.    All parties to this Indenture agree, and each Holder of any Debt Security by his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by
any party litigant in such suit of an undertaking to pay the costs of such suit in the manner and to the extent provided in the TIA, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section 6.08 shall not apply to any suit instituted
by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 25 percent in principal amount of the Outstanding Debt Securities of that series or
to any suit instituted by any Holder for the enforcement of the payment of the principal of, or premium, if any, or interest on, any Debt Security on or after the due date for such payment expressed
in such Debt Security. 

 
 

  ARTICLE VII
  CONCERNING THE TRUSTEE    
    

        Section 7.01    Certain Duties and Responsibilities.    The Trustee, prior to the occurrence of an Event of
Default and after the curing or waiving of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In
case an Event of Default has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and
skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. 

        No
provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, its own bad faith or its own
willful misconduct, except that: 

        (a)   this
paragraph shall not be construed to limit the effect of the first paragraph of this Section 7.01; 

        (b)   prior
to the occurrence of an Event of Default with respect to the Debt Securities of a series and after the curing or waiving of all Events of Default with respect to
such series which may have occurred: 

          (i)  the
duties and obligations of the Trustee with respect to Debt Securities of any series shall be determined solely by the express provisions of this Indenture, and the
Trustee shall not be liable except for the performance of such duties and obligations with respect to such series as are specifically set forth in this Indenture, and no implied covenants or
obligations with respect to such series shall be read into this Indenture against the Trustee; 

         (ii)  in
the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any
provision hereof are 

31

 

specifically
required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture; but the
Trustee shall examine the evidence furnished to it pursuant to Sections 4.05 and 4.06 to determine whether or not such evidence conforms to the requirement of this Indenture; 

        (iii)  the
Trustee shall not be liable for an error of judgment made in good faith by a responsible officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts; and 

        (iv)  the
Trustee shall not be liable with respect to any action taken or omitted to be taken by it with respect to Debt Securities of any series in good faith in accordance
with the direction of the Holders of not less than a majority in aggregate principal amount of the Outstanding Debt Securities of that series relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to Debt Securities of such series. 

        None
of the provisions of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any personal financial liability in the performance of any of its
duties hereunder, or in the exercise of any of its rights or powers, if there shall be reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it. 

        Whether
or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section. 

        Section 7.02    Certain Rights of Trustee.    Except as otherwise provided in Section 7.01: 

        (a)   the
Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note or other paper or document (whether in its original or facsimile form) believed by it to be genuine and to have been signed or presented by
the proper party or parties; 

        (b)   any
request, direction, order or demand of either of the Issuers mentioned herein shall be sufficiently; evidenced by an Issuer Order (unless other evidence in respect
thereof be herein specifically prescribed); and any resolution of the Board of Directors of an Issuer may be evidenced to the Trustee by a copy thereof certified by its Secretary or an Assistant
Secretary; 

        (c)   the
Trustee may consult with counsel, and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel; 

        (d)   the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders
of Debt Securities of any series pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and
liabilities which may be incurred therein or thereby; 

        (e)   the
Trustee shall not be liable for any action taken or omitted by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or
powers conferred upon it by this Indenture; 

        (f)    prior
to the occurrence of an Event of Default and after the curing of all Events of Default which may have occurred, the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, 

32

 

direction,
consent, order, approval or other paper or document, unless requested in writing to do so by the Holders of a majority in aggregate principal amount of the then Outstanding Debt Securities
of a series affected by such matter; provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of
such investigation is not, in the opinion of the Trustee, reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity
against such costs, expenses or liabilities as a condition to so proceeding, and the reasonable expense of every such investigation shall be paid by the Issuers or, if paid by the Trustee, shall be
repaid by the Issuers upon demand; 

        (g)   the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall
not be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it with due care hereunder; and 

        (h)   if
any property other than cash shall at any time be subject to a Lien in favor of the Holders, the Trustee, if and to the extent authorized by a receivership or
bankruptcy court of competent jurisdiction or by the supplemental instrument subjecting such property to such Lien, shall be entitled to make advances for the purpose of preserving such property or of
discharging tax Liens or other prior Liens or encumbrances thereon. 

        Section 7.03    Trustee Not Liable for Recitals in Indenture or in Debt Securities.    The recitals contained
herein, in the Debt Securities (except the Trustee's certificate of authentication) shall be taken as the statements of the Issuers, and the Trustee assumes no responsibility for the correctness of
the same. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Debt Securities of any series, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Debt Securities and perform its obligations hereunder, and that the statements made by it or to be made by it in a Statement of
Eligibility and Qualification on Form T-1 supplied to the Issuers are true and accurate. The Trustee shall not be accountable for the use or application by the Issuers of any of the
Debt Securities or of the proceeds thereof. 

        Section 7.04    Trustee, Paying Agent or Registrar May Own Debt Securities.    The Trustee or any paying agent
or Registrar, in its individual or any other capacity, may become the owner or pledgee of Debt Securities and subject to the provisions of the TIA relating to conflicts of interest and preferential
claims may otherwise deal with the Issuers with the same rights it would have if it were not Trustee, paying agent or Registrar. 

        Section 7.05    Moneys Received by Trustee to Be Held in Trust.    Subject to the provisions of
Section 11.05, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated
from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any moneys received by it hereunder. So long as no Event of Default shall have occurred
and be continuing, all interest allowed on any such moneys shall be paid from time to time to the Issuers upon an Issuer Order. 

        Section 7.06    Compensation and Reimbursement.    The Issuers covenant and agree to pay in Dollars to the
Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for all services rendered by it hereunder (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust), and, except as otherwise expressly provided herein, the Issuers will pay or reimburse in Dollars the Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and
disbursements of its agents, attorneys and counsel and of all Persons not regularly in its employ), including without limitation, Section 6.02, except any such expense, disbursement or advances
as may arise from its negligence, willful misconduct or bad faith. The Issuers also covenant to indemnify in 

33

 

Dollars
the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence, willful misconduct or bad faith on the part of the Trustee, arising out of or in
connection with the acceptance or administration of this trust or trusts hereunder, including the reasonable costs and expenses of defending itself against any claim of liability in connection with
the exercise or performance of any of its powers or duties hereunder. The obligations of the Issuers under this Section 7.06 to compensate and indemnify the Trustee and to pay or reimburse the
Trustee for expenses, disbursements and advances shall constitute additional Debt hereunder and shall survive the satisfaction and discharge of this Indenture. The Issuers and the Holders agree that
such additional Debt shall be secured by a Lien prior to that of the Debt Securities upon all property and funds held or collected by the Trustee, as such, except funds held in trust for the payment
of principal of, and premium, if any, or interest on, particular Debt Securities. 

        When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(e) or (f) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any Bankruptcy Law. 

        Section 7.07    Right of Trustee to Rely on an Officers' Certificate Where No Other Evidence Specifically
Prescribed.    Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or suffering or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officers' Certificate delivered to the
Trustee and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under the
provisions of this Indenture upon the faith thereof. 

        Section 7.08    Separate Trustee; Replacement of Trustee.    The Issuers may, but need not, appoint a separate
Trustee for any one or more series of Debt Securities. The Trustee may resign with respect to one or more or all series of Debt Securities at any time by giving notice to the Issuers. The Holders of a
majority in principal amount of the Debt Securities of a particular series may remove the Trustee for such series and only such series by so notifying the Trustee and may appoint a successor Trustee.
The Issuers shall remove the Trustee if: 

        (a)   the
Trustee fails to comply with Section 7.10; 

        (b)   the
Trustee is adjudged bankrupt or insolvent; 

        (c)   a
Custodian takes charge of the Trustee or its property; or 

        (d)   the
Trustee otherwise becomes incapable of acting. 

        If
the Trustee resigns, is removed by the Issuers or by the Holders of a majority in principal amount of the Debt Securities of a particular series and such Holders do not reasonably
promptly appoint a successor Trustee, or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Issuers shall
promptly appoint a successor Trustee. No resignation or removal of the Trustee and no appointment of a successor Trustee shall become effective until the acceptance of appointment by the successor
Trustee in accordance with the applicable requirements of this Section 7.08. 

        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Issuers. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to Holders of
Debt Securities of each applicable series. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the Lien provided for in
Section 7.06. 

34

 

 

        If a successor Trustee does not take office within 60 days after the retiring Trustee gives notice of resignation or is removed, the retiring Trustee or the Holders of 25% in
principal amount of the Debt Securities of any applicable series may petition any court of competent jurisdiction for the appointment of a successor Trustee for the Debt Securities of such series. 

        If
the Trustee fails to comply with Section 7.10, any Holder of Debt Securities of any applicable series may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee for the Debt Securities of such series. 

        Notwithstanding
the replacement of the Trustee pursuant to this Section 7.08, the Issuers' obligations under Section 7.06 shall continue for the benefit of the retiring
Trustee. 

        In
the case of the appointment hereunder of a separate or successor Trustee with respect to the Debt Securities of one or more series, the Issuers, any retiring Trustee and each
successor or separate Trustee with respect to the Debt Securities of any applicable series shall execute and deliver an Indenture supplemental hereto (i) which shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of any retiring Trustee with respect to the Debt Securities of any series as to which any such retiring
Trustee is not retiring shall continue to be vested in such retiring Trustee and (ii) that shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one trustee, it being understood that nothing herein or in such supplemental Indenture shall constitute such Trustees
co-trustees of the same trust and that each such separate, retiring or successor Trustee shall be Trustee of a trust or trusts hereunder separate and apart from any trust or trusts
hereunder administered by any other such Trustee. 

        Section 7.09    Successor Trustee by Merger.    If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation or banking association without any further act shall be the successor Trustee. 

        In
case at the time such successor or successors to the Trustee by merger, conversion, consolidation or transfer shall succeed to the trusts created by this Indenture any of the Debt
Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor Trustee, and deliver such Debt Securities
so authenticated; and in case at that time any of the Debt Securities shall not have been authenticated, any successor to the Trustee may authenticate such Debt Securities either in the name of any
predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Debt Securities or in this Indenture
provided that the certificate of the Trustee shall have. 

        Section 7.10    Eligibility; Disqualification.    The Trustee shall at all times satisfy the requirements of
Section 310(a) of the TIA. The Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. No obligor upon
the Debt Securities of a particular series or Person directly or indirectly controlling, controlled by or under common control with such obligor shall serve as Trustee for the Debt Securities of such
series. The Trustee shall comply with Section 310(b) of the TIA; provided, however, that there shall be excluded from the operation of Section 310(b)(1) of the TIA this Indenture or any
indenture or indentures under which other securities or certificates of interest or participation in other securities of the Issuers are outstanding if the requirements for such exclusion set forth in
Section 310(b)(1) of the TIA are met. 

        Section 7.11    Preferential Collection of Claims Against Issuers.    The Trustee shall comply with
Section 311(a) of the TIA, excluding any creditor relationship listed in Section 311(b) of the TIA. A 

35

 

Trustee
who has resigned or been removed shall be subject to Section 311(a) of the TIA to the extent indicated therein. 

        Section 7.12    Compliance with Tax Laws.    The Trustee hereby agrees to comply with all U.S. Federal income
tax information reporting and withholding requirements applicable to it with respect to payments of premium (if any) and interest on the Debt Securities, whether acting as Trustee, Registrar, paying
agent or otherwise with respect to the Debt Securities. 

 
 

  ARTICLE VIII
  CONCERNING THE HOLDERS    
    

        Section 8.01    Evidence of Action by Holders.    Whenever in this Indenture it is provided that the Holders of
a specified percentage in aggregate principal amount of the Debt Securities of any or all series may take action (including the making of any demand or request, the giving of any direction, notice,
consent or waiver or the taking of any other action) the fact that at the time of taking any such action the Holders of such specified percentage have joined therein may be evidenced (a) by any
instrument or any number of instruments of similar tenor executed by Holders in Person or by agent or proxy appointed in writing, (b) by the record of the Holders voting in favor thereof at any
meeting of Holders duly called and held in accordance with the provisions of Section 5.02, (c) by a combination of such instrument or instruments and any such record of such a meeting of
Holders or (d) in the case of Debt Securities evidenced by a Global Security, by any electronic transmission or other message, whether or not in written format, that complies with the
Depositary's applicable procedures. 

        Section 8.02    Proof of Execution of Instruments and of Holding of Debt Securities.    Subject to the
provisions of Sections 7.01, 7.02 and 13.09, proof of the execution of any instrument by a Holder or his agent or proxy shall be sufficient if made in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The ownership of Debt Securities of any series shall be proved by the Debt Security Register
or by a certificate of the Registrar for such series. The Trustee may require such additional proof of any matter referred to in this Section 8.02 as it shall deem necessary. 

        Section 8.03    Who May Be Deemed Owner of Debt Securities.    Prior to due presentment for registration of
transfer of any Debt Security, the Issuers, the Subsidiary Guarantors, the Trustee, any paying agent and any Registrar may deem and treat the Person in whose name any Debt Security shall be registered
upon the books of the Issuers as the absolute owner of such Debt Security (whether or not such Debt Security shall be overdue and notwithstanding any notation of ownership or other writing thereon)
for the purpose of receiving payment of or on account of the principal of and premium, if any, and (subject to Section 2.12) interest on such Debt Security and for all other purposes, and none
of the Issuers, the Subsidiary Guarantors or the Trustee nor any paying agent nor any Registrar shall be affected by any notice to the contrary; and all such payments so made to any such Holder for
the time being, or upon his order, shall be valid and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Debt Security. 

        None
of the Issuers, the Subsidiary Guarantors, the Trustee, any paying agent or any Registrar will have any responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 

        Section 8.04    Instruments Executed by Holders Bind Future Holders.    At any time prior to (but not after)
the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the Holders of the percentage in aggregate principal amount of the Debt Securities of any series
specified in this Indenture in connection with such action and subject to the following paragraph, any Holder of a Debt Security which is shown by the evidence to be included in the Debt Securities
the Holders of which have consented to such action may, by filing written notice with the Trustee at its corporate trust 

36

 

office
and upon proof of holding as provided in Section 8.02, revoke such action so far as concerns such Debt Security. Except as aforesaid any such action taken by the Holder of any Debt
Security shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Debt Security and of any Debt Security issued upon transfer thereof or in exchange or
substitution therefor, irrespective of whether or not any notation in regard thereto is made upon such Debt Security or such other Debt Securities. Any action taken by the Holders of the percentage in
aggregate principal amount of the Debt Securities of any series specified in this Indenture in connection with such action shall be conclusively binding upon the Issuers, the Subsidiary Guarantors,
the Trustee and the Holders of all the Debt Securities of such series. 

        The
Issuers may, but shall not be obligated to, fix a record date for the purpose of determining the Holders of Debt Securities entitled to give their consent or take any other action
required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding the immediately preceding paragraph, those Persons who were Holders of Debt Securities at
such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not
such Persons continue to be Holders of Debt Securities after such record date. No such consent shall be valid or effective for more than 120 days after such record date unless the consent of
the Holders of the percentage in aggregate principal amount of the Debt Securities of such series specified in this Indenture shall have been received within such 120-day period. 

 
 

  ARTICLE IX
  SUPPLEMENTAL INDENTURES    
    

        Section 9.01    Purposes for Which Supplemental Indenture May Be Entered into Without Consent of Holders.
    The Issuers and any Subsidiary Guarantors, when authorized by resolutions of each Issuer's Board of Directors, and the Trustee may from time to time and at any time, without the consent
of Holders, enter into an Indenture or Indentures supplemental hereto (which shall conform to the provisions of the TIA as in force at the date of the execution thereof) for one or more of the
following purposes: 

        (a)   to
evidence the succession pursuant to Article X of another Person to either of the Issuers, or successive successions, and the assumption by the Successor
Company (as defined in Section 10.01) of the covenants, agreements and obligations of its predecessor Issuer in this Indenture and in the Debt Securities; 

        (b)   to
surrender any right or power herein conferred upon the Issuers or the Subsidiary Guarantors, to add to the covenants of the Issuers or the Subsidiary Guarantors such
further covenants, restrictions, conditions or provisions for the protection of the Holders of all or any series of Debt Securities (and if such covenants are to be for the benefit of less than all
series of Debt Securities, stating that such covenants are expressly being included solely for the benefit of such series) as the Board of Directors shall consider to be for the protection of the
Holders of such Debt Securities, and to make the occurrence, or the occurrence and continuance, of a Default in any of such additional covenants, restrictions, conditions or provisions a Default or an
Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture; provided, that in respect of any such additional covenant, restriction, condition or
provision such supplemental Indenture may provide for a particular period of grace after Default (which period may be shorter or longer than that allowed in the case of other Defaults) or may provide
for an immediate enforcement upon such Default or may limit the remedies available to the Trustee upon such Default or may limit the right of the Holders of a majority in aggregate principal amount of
any or all series of Debt Securities to waive such Default; 

37

 

        (c)   to
cure any ambiguity or omission or to correct or supplement any provision contained herein, in any supplemental Indenture or in any Debt Securities of any series that
may be defective or inconsistent with any other provision contained herein, in any supplemental Indenture or in the Debt Securities of such series; to convey, transfer, assign, mortgage or pledge any
property to or with the Trustee, or to make such other provisions in regard to matters or questions arising under this Indenture as shall not adversely affect the interests of any Holders of Debt
Securities of any series; 

        (d)   to
permit the qualification of this Indenture or any Indenture supplemental hereto under the TIA as then in effect, except that nothing herein contained shall permit or
authorize the inclusion in any Indenture supplemental hereto of the provisions referred to in Section 316(a)(2) of the TIA; 

        (e)   to
change or eliminate any restrictions on the payment of principal of, or premium, if any, on, Debt Securities; provided, that any such action shall not adversely
affect the interests of the Holders of Debt Securities of any series in any material respect or permit or facilitate the issuance of Debt Securities of any series in uncertificated form; 

        (f)    to
reflect the release of any Subsidiary Guarantor in accordance with Article XIV 

        (g)   in
the case of any Debt Securities subordinated pursuant to Article XII, to make any change in Article XII that would limit or terminate the benefits
available to any holder of Senior Indebtedness (or Representatives therefor) under Article XII; 

        (h)   to
add Subsidiary Guarantors with respect to any or all of the Debt Securities or to secure any or all of the Debt Securities or the Guarantee; 

        (i)    to
make any change that does not adversely affect the rights hereunder of any Holder; 

        (j)    to
add to, change or eliminate any of the provisions of this Indenture in respect of one or more series of Debt Securities; provided, however, that any such addition,
change or elimination not otherwise permitted under this Section 9.01 shall neither apply to any Debt Security of any series created prior to the execution of such supplemental Indenture and
entitled to the benefit of such provision nor modify the rights of the Holder of any such Debt Security with respect to such provision or shall become effective only when there is no such Debt
Security Outstanding; 

        (k)   to
evidence and provide for the acceptance of appointment hereunder by a successor or separate Trustee with respect to the Debt Securities of one or more series and to
add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee; and 

        (l)    to
establish the form or terms of Debt Securities of any series as permitted by Sections 2.01 and 2.03. 

        The
Trustee is hereby authorized to join with the Issuers and the Subsidiary Guarantors in the execution of any such supplemental Indenture, to make any further appropriate agreements
and stipulations which may be therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property thereunder, but the Trustee shall not be obligated to enter into
any such supplemental Indenture which affects the Trustee's own rights, duties or immunities under this Indenture or otherwise. 

        Any
supplemental Indenture authorized by the provisions of this Section 9.01 may be executed by the Issuers, the Subsidiary Guarantors and the Trustee without the consent of the
Holders of any of the Debt Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02. 

        In
the case of Debt Securities subordinated pursuant to Article XII, an amendment under this Section 9.01 may not make any change that adversely affects the rights under
Article XII of any holder of Senior Indebtedness then outstanding unless the holders of such Senior Indebtedness (or any group or Representative thereof authorized to give a consent) consent to
such change. 

38

 

        Section 9.02    Modification of Indenture with Consent of Holders of Debt Securities.    Without notice to any
Holder but with the consent (evidenced as provided in Section 8.01) of the Holders of not less than a majority in aggregate principal amount of the Outstanding Debt Securities of each series
affected by such supplemental Indenture (including consents obtained in connection with a tender offer or exchange offer for any such series of Debt Securities), the Issuers and the Subsidiary
Guarantors, when authorized by resolutions of each Issuer's Board of Directors, and the Trustee may from time to time and at any time enter into an Indenture or Indentures supplemental hereto (which
shall conform to the provisions of the TIA as in force at the date of execution thereof) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of any supplemental Indenture or of modifying in any manner the rights of the Holders of the Debt Securities of such series; provided, that no such supplemental Indenture, without
the consent of the Holders of each Debt Security so affected, shall: reduce the percentage in principal amount of Debt Securities of any series whose Holders must consent to an amendment; reduce the
rate of or extend the time for payment of interest on any Debt Security; reduce the principal of or extend the Stated Maturity of any Debt Security; reduce any premium payable upon the redemption of
any Debt Security or change the time at which any Debt Security may or shall be redeemed in accordance with Article III; make any Debt Security payable in currency other than the Dollar; impair
the right of any Holder to receive payment of premium, if any, principal of and interest on such Holder's Debt Securities on or after the due dates therefor or to institute suit for the enforcement of
any payment on or with respect to such Holder's Debt Securities; in the case of any Debt Security subordinated pursuant to Article XII, make any change in Article XII that adversely
affects the rights of any Holder under Article XII; release any security that may have been granted in respect of the Debt Securities, other than in accordance with this Indenture; make any
change in Section 6.06 or this Section 9.02; or, except as provided in Section 11.02(b) or Section14.04, release the Subsidiary Guarantors other than as provided in this Indenture
or modify the Guarantee in any manner adverse to the Holders. 

        A
supplemental Indenture which changes or eliminates any covenant or other provision of this Indenture which has been expressly included solely for the benefit of one or more particular
series of Debt Securities or which modifies the rights of the Holders of Debt Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under
this Indenture of the Holders of Debt Securities of any other series. 

        Upon
the request of the Issuers, accompanied by a copy of resolutions of the Board of Directors of each Issuer authorizing the execution of any such supplemental Indenture, and upon the
filing with the Trustee of evidence of the consent of Holders as aforesaid, the Trustee shall join with the Issuers and the Subsidiary Guarantors in the execution of such supplemental Indenture unless
such supplemental
Indenture affects the Trustee's own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such
supplemental Indenture. 

        It
shall not be necessary for the consent of the Holders under this Section 9.02 to approve the particular form of any proposed supplemental Indenture, but it shall be sufficient
if such consent shall approve the substance thereof. 

        In
the case of any Debt Securities subordinated pursuant to Article XII, an amendment under this Section 9.02 may not make any change that adversely affects the rights
under Article XII of any holder of Senior Indebtedness then outstanding unless the holders of such Senior Indebtedness (or any group or Representative thereof authorized to give a consent)
consent to such change. 

        After
an amendment under this Section 9.02 requiring the consent of the Holders of any series of Debt Securities becomes effective, the Issuers shall mail to Holders of that
series of Debt Securities of each series affected thereby a notice briefly describing such amendment. The failure to give such notice 

39

 

to
any such Holders, or any defect therein, shall not impair or affect the validity of an amendment under this Section 9.02 with respect to other Holders. 

        Section 9.03    Effect of Supplemental Indentures.    Upon the execution of any supplemental Indenture pursuant
to the provisions of this Article IX, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations,
duties and immunities under this Indenture of the Trustee, the Issuers, the Subsidiary Guarantors and the Holders shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions of any such supplemental Indenture shall be and be deemed to be part of the terms and conditions of this Indenture for
any and all purposes. 

        The
Trustee, subject to the provisions of Sections 7.01 and 7.02, may receive an Officers' Certificate and an Opinion of Counsel as conclusive evidence that any such supplemental
Indenture complies with the provisions of this Article IX. 

        Section 9.04    Debt Securities May Bear Notation of Changes by Supplemental Indentures.    Debt Securities of
any series authenticated and delivered after the execution of any supplemental Indenture pursuant to the provisions of this Article IX may, and shall if required by the Trustee, bear a notation
in form approved by the Trustee as to any matter provided for in such supplemental Indenture. New Debt Securities of any series so modified as to conform, in the opinion of the Trustee and the Board
of
Directors, to any modification of this Indenture contained in any such supplemental Indenture may be prepared and executed by the Issuers, authenticated by the Trustee and delivered in exchange for
the Debt Securities of such series then Outstanding. Failure to make the appropriate notation or to issue a new Debt Security of such series shall not affect the validity of such amendment. 

 
 

  ARTICLE X
  CONSOLIDATION, MERGER, SALE OR CONVEYANCE    
    

        Section 10.01    Consolidations and Mergers of the Issuers.    Neither of the Issuers may consolidate or
amalgamate with or merge with or into any Person, or sell, convey, transfer, lease or otherwise dispose of all or substantially all its assets to any Person, whether in a single transaction or a
series of related transactions, unless: (a) either (i) such Issuer shall be the surviving Person in the case of a merger or (ii) the resulting, surviving or transferee Person if
other than such Issuer (the "Successor Company"), shall be a partnership, limited liability company or corporation organized and existing under the laws of the United States, any State thereof or the
District of Columbia and the Successor Company shall expressly assume, by an Indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, all the
obligations of such Issuer under this Indenture and the Debt Securities according to their tenor; (b) immediately after giving effect to such transaction or series of transactions (and treating
any Debt which becomes an obligation of the Successor Company or any Subsidiary of such Issuer as a result of such transaction as having been incurred by the Successor Company or such Subsidiary at
the time of such transaction or series of transactions), no Default or Event of Default would occur or be continuing; (c) if such Issuer is not the continuing Person, then each Subsidiary
Guarantor, unless it has become the Successor Company, shall confirm that its Guarantee shall continue to apply to the obligations under the Debt Securities and this Indenture; and (d) the
Issuers shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that such consolidation, amalgamation, merger or disposition and such supplemental
Indenture (if any) comply with this Indenture. 

40

 

        Section 10.02    Rights and Duties of Successor Company.    In case of any consolidation, amalgamation or
merger where such Issuer is not the continuing Person, or disposition of all or substantially all of the assets of such Issuer in accordance with Section 10.01, the Successor Company shall
succeed to and be substituted for such Issuer with the same effect as if it had been named herein as the respective party to this Indenture, and the predecessor entity shall be released from all
liabilities and obligations under this Indenture and the Debt Securities, except that no such release will occur in the case of a lease of all or substantially all of such Issuer's assets. The
Successor Company thereupon may cause to be signed, and may issue either in its own name or in the name of such Issuer, any or all the Debt Securities issuable hereunder which theretofore shall not
have been signed by or on behalf of such Issuer and delivered to the Trustee; and, upon the order of the Successor Company, instead of such Issuer, and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver any Debt Securities which previously shall have been signed and delivered by or on behalf of such Issuer to
the Trustee for authentication, and any Debt Securities which the Successor Company thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Debt Securities so issued
shall in all respects have the same legal rank and benefit under this Indenture as the Debt Securities theretofore or thereafter issued in accordance with the terms of this Indenture as though all
such Debt Securities had been issued at the date of the execution hereof. 

        In
case of any such consolidation, amalgamation, merger, sale or disposition such changes in phraseology and form (but not in substance) may be made in the Debt Securities thereafter to
be issued as may be appropriate. 

 
 

  ARTICLE XI
  SATISFACTION AND DISCHARGE OF
  INDENTURE; DEFEASANCE; UNCLAIMED MONEYS    
    

        Section 11.01    Applicability of Article.    The provisions of this Article XI relating to discharge or
defeasance of Debt Securities shall be applicable to each series of Debt Securities except as otherwise specified pursuant to Section 2.03 for Debt Securities of such series. 

        Section 11.02    Satisfaction and Discharge of Indenture; Defeasance.    

        (a)   If
at any time the Issuers shall have delivered to the Trustee for cancellation all Debt Securities of any series theretofore authenticated and delivered (other than any
Debt Securities of such series which shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in Section 2.09 and Debt Securities for whose payment money
has theretofore been deposited in trust and thereafter repaid to the Issuers as provided in Section 11.05) or all Debt Securities of such series not theretofore delivered to the Trustee for
cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption, and the Issuers shall deposit with the Trustee as trust funds the entire amount in cash sufficient to pay at final maturity or upon redemption all
Debt Securities of such series not theretofore delivered to the Trustee for cancellation, including principal and premium, if any, and interest due or to become due on such date of maturity or
Redemption Date, as the case may be, and if in either case the Issuers shall also pay or cause to be paid all other sums payable hereunder by the Issuers, then this Indenture shall cease to be of
further effect (except as to any surviving rights of registration of transfer or exchange of such Debt Securities herein expressly provided for) with respect to the Debt Securities of such series, and
the Trustee, on demand of the Issuers accompanied by an Officers' Certificate and an Opinion of Counsel and at the cost and expense of the Issuers, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture with respect to the Debt Securities of such series. 

41

 

        (b)   Subject
to Sections 11.02(c), 11.03 and 11.07, the Issuers at any time may terminate, with respect to Debt Securities of a particular series, all its obligations
under the Debt Securities of such series and this Indenture with respect to the Debt Securities of such series ("legal defeasance option") or the operation of (w) Sections 4.09 and 4.10,
(x) any covenant made applicable to such Debt Securities pursuant to Section 2.03, (y) Sections 6.01(d), (g) and (h) and (z) as they relate to the
Subsidiary Guarantors only, Sections 6.01(e) and (f) ("covenant defeasance option"). If the Issuers exercise either their legal defeasance option or their covenant defeasance option with
respect to Debt Securities of a particular series that are entitled to the benefit of the Guarantee, the Guarantee will terminate with respect to that series of Debt Securities. The Issuers may
exercise their legal defeasance option notwithstanding its prior exercise of its covenant defeasance option. 

        If
the Issuers exercise their legal defeasance option, payment of the Debt Securities of the defeased series may not be accelerated because of an Event of Default. If the Issuers
exercise their covenant
defeasance option, payment of the Debt Securities of the defeased series may not be accelerated because of an Event of Default specified in Sections 6.01(d), (g) and (h) and, with
respect to the Subsidiary Guarantors only, Sections 6.01(e) and (f). 

        Upon
satisfaction of the conditions set forth herein and upon request of the Issuers, the Trustee shall acknowledge in writing the discharge of those obligations that the Issuers
terminate. 

        (c)   Notwithstanding
clauses (a) and (b) above, the Issuers' obligations in Sections 2.07, 2.09, 4.02, 4.03, 4.04, the last sentence of 4.05(a), 4.06(a),
5.01, 7.06, 11.05, 11.06 and 11.07 shall survive until the Debt Securities of the defeased series have been paid in full. Thereafter, the Issuers' obligations in Sections 7.06, 11.05 and 11.06
shall survive. 

        Section 11.03    Conditions of Defeasance.    The Issuers may exercise their legal defeasance option or its
covenant defeasance option with respect to Debt Securities of a particular series only if: 

        (a)   the
Issuers irrevocably deposit in trust with the Trustee money or U.S. Government Obligations for the payment of principal of, and premium, if any, and interest on, the
Debt Securities of such series to final maturity or redemption, as the case may be; 

        (b)   the
Issuers deliver to the Trustee a certificate from a nationally recognized firm of independent accountants expressing their opinion that the payments of principal and
interest when due and without reinvestment on the deposited U.S. Government Obligations plus any deposited money without investment will provide cash at such times and in such amounts as will be
sufficient to pay the principal, premium, if any, and interest when due on all the Debt Securities of such series to final maturity or redemption, as the case may be; 

        (c)   91 days
pass after the deposit is made and during the 91-day period no Default specified in Section 6.01(e) or (f) with respect to the
Issuers occurs which is continuing at the end of the period; 

        (d)   no
Default has occurred and is continuing on the date of such deposit and after giving effect thereto; 

        (e)   the
deposit does not constitute a default under any other agreement binding on the Issuers and, if the Debt Securities of such series are subordinated pursuant to
Article XII, is not prohibited by Article XII; 

        (f)    the
Issuers deliver to the Trustee an Opinion of Counsel to the effect that the trust resulting from the deposit does not constitute, or is qualified as, a regulated
investment company under the Investment Company Act of 1940; 

        (g)   in
the event of the legal defeasance option, the Issuers shall have delivered to the Trustee an Opinion of Counsel stating that the Issuers have received from the
Internal Revenue Service a ruling, or since the date of this Indenture there has been a change in the applicable Federal income tax law, in 

42

 

either
case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of Debt Securities of such series will not recognize income, gain or loss for Federal income
tax purposes as a result of such defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had
not occurred; 

        (h)   in
the event of the covenant defeasance option, the Issuers shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of Debt Securities
of such series will not recognize income, gain or loss for Federal income tax purposes as a result of such covenant defeasance and will be subject to Federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such covenant defeasance had not occurred; and 

        (i)    the
Issuers deliver to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent to the defeasance and discharge of the
Debt Securities of such series as contemplated by this Article XI have been complied with. 

        Before
or after a deposit, the Issuers may make arrangements satisfactory to the Trustee for the redemption of Debt Securities of such series at a future date in accordance with
Article III. 

        Section 11.04    Application of Trust Money.    The Trustee shall hold in trust money or U.S. Government
Obligations deposited with it pursuant to this Article XI. It shall apply the deposited money and the money from U.S. Government Obligations through any paying agent and in accordance with this
Indenture to the payment of principal of, and premium, if any, and interest on, the Debt Securities of the defeased series. In the event the Debt Securities of the defeased series are subordinated
pursuant to Article XII, money and securities so held in trust are not subject to Article XII. 

        Section 11.05    Repayment to Issuers.    The Trustee and any paying agent shall promptly turn over to the
Issuers upon request any excess money or securities held by them at any time. 

        Subject
to any applicable abandoned property law, the Trustee and any paying agent shall pay to the Issuers upon request any money held by them for the payment of principal, premium or
interest that remains unclaimed for two years, and, thereafter, Holders entitled to such money must look to the Issuers for payment as general creditors. 

        Section 11.06    Indemnity for U.S. Government Obligations.    The Issuers shall pay and shall indemnify the
Trustee and the Holders against any tax, fee or other charge imposed on or assessed against deposited U.S. Government Obligations or the principal and interest received on such U.S. Government
Obligations. 

        Section 11.07    Reinstatement.    If the Trustee or any paying agent is unable to apply any money or U.S.
Government Obligations in accordance with this Article XI by reason of any legal proceeding or by reason of any order or judgment of any court or government authority enjoining, restraining or
otherwise prohibiting such application, the Issuers' obligations under this Indenture and the Debt Securities of the defeased series shall be revived and reinstated as though no deposit had occurred
pursuant to this Article XI until such time as the Trustee or any paying agent is permitted to apply all such money or U.S. Government Obligations in accordance with this Article XI. 

43

 

 

 
 

  ARTICLE XII
  SUBORDINATION OF DEBT SECURITIES AND GUARANTEE    
    

        Section 12.01    Applicability of Article; Agreement to Subordinate.    The provisions of this
Article XII shall only be applicable to the Debt Securities of any series (Debt Securities of such series referred to in this Article XII as "Subordinated Debt Securities") designated,
pursuant to Section 2.03, as subordinated to Senior Indebtedness and any related Guarantee of such Subordinated Debt Securities. Each Holder by accepting a Subordinated Debt Security agrees
that the Debt evidenced by such Subordinated Debt Security and any related Guarantee of such Subordinated Debt Security is subordinated in right of payment, to the extent and in the manner provided in
this Article XII, to the prior payment of all Senior Indebtedness and that the subordination is for the benefit of and enforceable by the holders of Senior Indebtedness. All provisions of this
Article XII shall be subject to Section 12.12. 

        Section 12.02    Liquidation, Dissolution, Bankruptcy.    Upon any payment or distribution of the assets of
any of the Issuers or the Subsidiary Guarantors to creditors (i) upon a liquidation or a dissolution of any of the Issuers or the Subsidiary Guarantors or (ii) in a bankruptcy,
reorganization, insolvency, receivership or similar proceeding relating to any of the Issuers or the Subsidiary Guarantors or its property: 

        (a)   holders
of Senior Indebtedness of the Issuers or any Subsidiary Guarantor, as the case may be, shall be entitled to receive payment in full in cash of such Senior
Indebtedness of such Person (including interest (if any), accruing on or after the commencement of a proceeding in bankruptcy, whether or not allowed as a claim against any of the Issuers or the
Subsidiary Guarantors, as the case may be, in such bankruptcy proceeding) before Holders of Subordinated Debt Securities and any related Guarantee shall be entitled to receive any payment of principal
of, or premium, if any, or interest on, the Subordinated Debt Securities from the Issuers, or any payment in respect of the Guarantee from the Subsidiary Guarantors; and 

        (b)   until
the Senior Indebtedness of the Issuers or any Subsidiary Guarantor, as the case may be, is paid in full, any distribution to which Holders of Subordinated Debt
Securities and any related Guarantee would be entitled but for this Article XII shall be made to holders of Senior Indebtedness of the Issuers or the Subsidiary Guarantors, as the case may be,
as their interests may appear, except that such Holders may receive capital stock and any debt securities that are subordinated to Senior Indebtedness of any of the Issuers or the Subsidiary
Guarantors, as the case may be, to at least the same extent as the Subordinated Debt Securities of the Issuers or the related Guarantee of any Subsidiary Guarantor, respectively. 

        Section 12.03    Default on Senior Indebtedness.    The Issuers and the Subsidiary Guarantors may not pay the
principal of, or premium, if any, or interest on, the Subordinated Debt Securities or any related Guarantee or make any deposit pursuant to Article XI and may not repurchase, redeem or
otherwise retire (except, in the case of Subordinated Debt Securities that provide for a mandatory sinking fund pursuant to Section 3.05, by the delivery of Subordinated Debt Securities by the
Issuers to the Trustee pursuant to the first paragraph of Section 3.05) any Subordinated Debt Securities (collectively, "pay the Subordinated Debt Securities") if any principal, premium or
interest in respect of Senior Indebtedness of such Person is not paid within any applicable grace period (including at maturity) or any other default on Senior Indebtedness of such Person occurs and
the maturity of such Senior Indebtedness is accelerated in accordance with its terms unless and until the default has been cured or waived and any such acceleration has been rescinded or such Senior
Indebtedness has been paid in full in cash; provided, however, that the Issuers and the Subsidiary Guarantors may make payments on the Subordinated Debt Securities or any related Guarantee without
regard to the foregoing if the Issuers and the Trustee receive written notice approving such payment from the Representative of each issue of Designated Senior Indebtedness. During the continuance of
any other 

44

 

default
with respect to any Designated Senior Indebtedness pursuant to which the maturity thereof may be accelerated immediately without further notice (except such notice as may be required to effect
such acceleration) or the expiration of any applicable grace periods, the Issuers and the Subsidiary Guarantors may not make payments on the Subordinated Debt Securities or any related Guarantee for a
period (a "Payment Blockage Period") commencing upon the receipt by the Issuers and the Trustee (and if such Designated Senior Indebtedness is Debt of a Subsidiary Guarantor, the Subsidiary Guarantor)
of written notice of such default from the Representative of any Designated Senior Indebtedness specifying an election to effect a Payment Blockage Period (a "Blockage Notice") and ending
179 days thereafter (or earlier if such Payment Blockage Period is terminated by written notice to the Trustee and the Issuers (and if such Designated Senior Indebtedness is Debt of a
Subsidiary Guarantor, the Subsidiary Guarantor) from the Person or Persons who gave such Blockage Notice, by repayment in full in cash of such Designated Senior Indebtedness or because the default
giving rise to
such Blockage Notice is no longer continuing). Notwithstanding the provisions described in the immediately preceding sentence (but subject to the provisions contained in Section 12.02 and the
first sentence of this Section 12.03), unless the holders of such Designated Senior Indebtedness or the Representative of such holders shall have accelerated the maturity of such Designated
Senior Indebtedness, the Issuers and the Subsidiary Guarantors may resume payments on the Subordinated Debt Securities and related Guarantees after such Payment Blockage Period. Not more than one
Blockage Notice may be given in any consecutive 360-day period, irrespective of the number of defaults with respect to any number of issues of Designated Senior Indebtedness during such
period, unless otherwise specified pursuant to Section 2.03 for the Subordinated Debt Securities of a series; provided, however, that in no event may the total number of days during which any
Payment Blockage Period or Periods is in effect exceed 179 days in the aggregate during any 360 consecutive day period. For purposes of this Section 12.03, no default or event of default
which existed or was continuing on the date of the commencement of any Payment Blockage Period with respect to the Designated Senior Indebtedness initiating such Payment Blockage Period shall be, or
be made, the basis of the commencement of a subsequent Payment Blockage Period by the Representative of such Designated Senior Indebtedness, whether or not within a period of 360 consecutive days,
unless such default or event of default shall have been cured or waived for a period of not less than 90 consecutive days. 

        Section 12.04    Acceleration of Payment of Debt Securities.    If payment of the Subordinated Debt Securities
is accelerated because of an Event of Default, the Issuers shall promptly notify the holders of the Designated Senior Indebtedness (or their Representatives) of the acceleration. 

        Section 12.05    When Distribution Must Be Paid Over.    If a distribution is made to Holders of Subordinated
Debt Securities or a related Guarantee that because of this Article XII should not have been made to them, the Holders who receive such distribution shall hold it in trust for holders of Senior
Indebtedness and pay it over to them as their interests may appear. 

        Section 12.06    Subrogation.    After all Senior Indebtedness is paid in full and until the Subordinated Debt
Securities are paid in full, Holders thereof shall be subrogated to the rights of holders of Senior Indebtedness to receive distributions applicable to Senior Indebtedness. A distribution made under
this Article XII to holders of Senior Indebtedness which otherwise would have been made to Holders of Subordinated Debt Securities is not, as between the Issuers or the Subsidiary Guarantors,
as the case may be, and such Holders, a payment by the Issuers or the Subsidiary Guarantors, as the case may be, on Senior Indebtedness. 

        Section 12.07    Relative Rights.    This Article XII defines the relative rights of Holders of
Subordinated Debt Securities and holders of Senior Indebtedness. Nothing in this Indenture shall: 

        (a)   impair,
as between the Issuers or the Subsidiary Guarantors, as the case may be, and Holders of Subordinated Debt Securities, the obligation of the Issuers or the
Subsidiary Guarantors, as the case 

45

 

may
be, which is absolute and unconditional, to pay principal of, and premium, if any, and interest on, the Subordinated Debt Securities in accordance with their terms; or 

        (b)   prevent
the Trustee or any Holder of Subordinated Debt Securities from exercising its available remedies upon an Event of Default, subject to the rights of holders of
Senior Indebtedness to receive distributions otherwise payable to Holders of Subordinated Debt Securities. 

        Section 12.08    Subordination May Not Be Impaired by Issuers.    No right of any holder of Senior Indebtedness
to enforce the subordination of the Debt evidenced by the Subordinated Debt Securities and the Guarantee in respect thereof shall be impaired by any act or failure to act by any of the Issuers or the
Subsidiary Guarantors or by its failure to comply with this Indenture. 

        Section 12.09    Rights of Trustee and Paying Agent.    Notwithstanding Sections 12.02 and 12.03, the
Trustee or any paying agent may continue to make payments on Subordinated Debt Securities and shall not be charged with knowledge of the existence of facts that would prohibit the making of any such
payments unless, not less than two Business Days prior to the date of such payment, a responsible officer of the Trustee receives notice satisfactory to it that payments may not be made under this
Article XII. The Issuers, the Registrar, any paying agent, a Representative or a holder of Senior Indebtedness may give the notice; provided, however, that, if an issue of Senior Indebtedness
has a Representative, only the Representative may give the notice on behalf of the Holders of the Senior Indebtedness of that issue. 

        The
Trustee in its individual or any other capacity may hold Senior Indebtedness with the same rights it would have if it were not Trustee. The Registrar and any paying agent may do the
same with like rights. The Trustee shall be entitled to all the rights set forth in this Article XII with respect to any Senior Indebtedness which may at any time be held by it, to the same
extent as any other holder of Senior Indebtedness; and nothing in Article VII shall deprive the Trustee of any of its rights as such holder. Nothing in this Article XII shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 7.06. 

        Section 12.10    Distribution or Notice to Representative.    Whenever a distribution is to be made or a
notice given to holders of Senior Indebtedness, the distribution may be made and the notice given to their Representative (if any). 

        Section 12.11    Article XII Not to Prevent Defaults or Limit Right to Accelerate.    The failure to
make a payment pursuant to the Subordinated Debt Securities, whether directly or pursuant to the Guarantee,
by reason of any provision in this Article XII shall not be construed as preventing the occurrence of a Default. Nothing in this Article XII shall have any effect on the right of the
Holders or the Trustee to accelerate the maturity of either the Subordinated Debt Securities or the Debt Securities, as the case may be. 

        Section 12.12    Trust Moneys Not Subordinated.    Notwithstanding anything contained herein to the contrary,
payments from money or the proceeds of U.S. Government Obligations held in trust under Article XI by the Trustee for the payment of principal of, and premium, if any, and interest on, the
Subordinated Debt Securities or the Debt Securities shall not be subordinated to the prior payment of any Senior Indebtedness or subject to the restrictions set forth in this Article XII, and
none of the Holders thereof shall be obligated to pay over any such amount to the Issuers, the Subsidiary Guarantors or any holder of Senior Indebtedness of the Issuers or the Subsidiary Guarantors or
any other creditor of the Issuers or the Guarantor. 

        Section 12.13    Trustee Entitled to Rely.    Upon any payment or distribution pursuant to this
Article XII, the Trustee and the Holders shall be entitled to rely upon any order or decree of a court of competent jurisdiction in which any proceedings of the nature referred to in
Section 12.02 are pending, upon a certificate of the liquidating trustee or agent or other Person making such payment or distribution to the Trustee or to such Holders or upon the
Representatives for the holders of Senior 

46

 

Indebtedness
for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of the Senior Indebtedness and other Debt of any of the Issuers or the
Subsidiary Guarantors, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article XII. In the event that
the Trustee determines, in good faith, that evidence is required with respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to
this Article XII, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent
to which such Person is entitled to participate in such payment or distribution and other facts pertinent to the rights of such Person under this Article XII, and, if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment. The provisions of Sections 7.01 and 7.02 shall
be applicable to all actions or omissions of actions by the Trustee pursuant to this Article XII. 

        Section 12.14    Trustee to Effectuate Subordination.    Each Holder by accepting a Subordinated Debt Security
authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination between the Holders of Subordinated Debt
Securities and the holders of Senior Indebtedness as provided in this Article XII and appoints the Trustee as attorney-in-fact for any and all such purposes. 

        Section 12.15    Trustee Not Fiduciary for Holders of Senior Indebtedness.    The Trustee shall not be deemed
to owe any fiduciary duty to the holders of Senior Indebtedness and shall not be liable to any such
holders if it shall mistakenly pay over or distribute to Holders of Subordinated Debt Securities or any of the Issuers or the Subsidiary Guarantors or any other Person, money or assets to which any
holders of Senior Indebtedness shall be entitled by virtue of this Article XII or otherwise. 

        Section 12.16    Reliance by Holders of Senior Indebtedness on Subordination Provisions.    Each Holder by
accepting a Subordinated Debt Security acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration to each holder of any Senior
Indebtedness, whether such Senior Indebtedness was created or acquired before or after the issuance of the Subordinated Debt Securities, to acquire and continue to hold, or to continue to hold, such
Senior Indebtedness and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold, or in continuing to hold,
such Senior Indebtedness. 

 
 

  ARTICLE XIII
  MISCELLANEOUS PROVISIONS    
    

        Section 13.01    Successors and Assigns of Issuers Bound by Indenture.    All the covenants, stipulations,
promises and agreements in this Indenture contained by or in behalf of the Issuers, the Subsidiary Guarantors or the Trustee shall bind their respective successors and assigns, whether so expressed or
not. 

        Section 13.02    Acts of Board, Committee or Officer of Successor Issuer Valid.    Any act or proceeding by
any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of either of the Issuers shall and may be done and performed with like force and
effect by the like board, committee or officer of any Successor Company. 

        Section 13.03    Required Notices or Demands.    Any notice or communication by the Issuers, the Subsidiary
Guarantors or the Trustee to the others is duly given if in writing in the English language 

47

 

and
delivered in Person or mailed by registered or certified mail (return receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to the other's address: 

        If
to the Issuers or any Subsidiary Guarantor: 

Global
Partners LP

P.O. Box 9161

800 South Street

Waltham, Massachusetts 02454-9161

Attention: Edward J. Faneuil

Telecopy No. (781) 398-4211 

        If
to the Trustee: 

 

	
	

 

         The
Issuers, any Subsidiary Guarantor or the Trustee by notice to the others may designate additional or different addresses for subsequent notices or communications. 

        All
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; on the first Business Day on or after being sent, if telecopied and the sender receives confirmation of successful transmission; and the next Business Day after timely
delivery to the courier, if sent by overnight air courier guaranteeing next day delivery. 

        Any
notice required or permitted to a Holder by the Issuers, any Subsidiary Guarantor or the Trustee pursuant to the provisions of this Indenture shall be deemed to be properly mailed by
being deposited postage prepaid in a post office letter box in the United States addressed to such Holder at the address of such Holder as shown on the Debt Security Register. Any report pursuant to
Section 313 of the TIA shall be transmitted in compliance with subsection (c) therein. 

        Notwithstanding
the foregoing, any notice to Holders of Floating Rate Securities regarding the determination of a periodic rate of interest, if such notice is required pursuant to
Section 2.03, shall be sufficiently given if given in the manner specified pursuant to Section 2.03. 

        In
the event of suspension of regular mail service or by reason of any other cause it shall be impracticable to give notice by mail, then such notification as shall be given with the
approval of the Trustee shall constitute sufficient notice for every purpose hereunder. 

        In
the event it shall be impracticable to give notice by publication, then such notification as shall be given with the approval of the Trustee shall constitute sufficient notice for
every purpose hereunder. 

        Failure
to mail a notice or communication to a Holder or any defect in it or any defect in any notice by publication as to a Holder shall not affect the sufficiency of such notice with
respect to other Holders. If a notice or communication is mailed or published in the manner provided above, it is conclusively presumed duly given. 

        Section 13.04    Indenture and Debt Securities to Be Construed in Accordance with the Laws of the State of New
York.    THIS INDENTURE, EACH DEBT SECURITY AND THE GUARANTEE SHALL BE DEEMED TO BE NEW YORK CONTRACTS, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF SAID STATE. 

        Section 13.05    Officers' Certificate and Opinion of Counsel to Be Furnished upon Application or Demand by the
Issuers.    Upon any application or demand by the Issuers to the Trustee to take any action under any of the provisions of this Indenture, each of the Issuers shall
furnish to the Trustee an Officers' Certificate stating that all conditions precedent provided for in this Indenture relating to the 

48

 

proposed
action have been complied with and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with, except that in the case of any
such application or demand as to which the furnishing of such document is specifically required by any provision of this Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished. 

        Each
certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture shall
include (a) a statement that the Person making such certificate or opinion has read such covenant or condition, (b) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such certificate or opinion are based, (c) a statement that, in the opinion of such Person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with and (d) a statement as to whether or not, in
the opinion of such Person, such condition or covenant has been complied with. 

        Section 13.06    Payments Due on Legal Holidays.    In any case where the date of maturity of interest on or
principal of and premium, if any, on the Debt Securities of a series or the date fixed for redemption or repayment of any Debt Security or the making of any sinking fund payment shall not be a
Business Day at any Place of Payment for the Debt Securities of such series, then payment of interest or principal and premium, if any, or the making of such sinking fund payment need not be made on
such date at such Place of Payment, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on the date of maturity or the date fixed for
redemption, and no interest shall accrue for the period after such date. If a record date is not a Business Day, the record date shall not be affected. 

        Section 13.07    Provisions Required by TIA to Control.    If and to the extent that any provision of this
Indenture limits, qualifies or conflicts with another provision included in this Indenture which is required to be included in this Indenture by any of Sections 310 to 318, inclusive, of the
TIA, such required provision shall control. 

        Section 13.08    Computation of Interest on Debt Securities.    Interest, if any, on the Debt Securities shall
be computed on the basis of a 360-day year of twelve 30-day months, except as may otherwise be provided pursuant to Section 2.03. 

        Section 13.09    Rules by Trustee, Paying Agent and Registrar.    The Trustee may make reasonable rules for
action by or a meeting of Holders. The Registrar and any paying agent may make reasonable rules for their functions. 

        Section 13.10    No Recourse Against Others.    The General Partner and its directors, officers, employees and
members, as such, shall have no liability for any obligations of the Subsidiary Guarantors or the Issuers under the Debt Securities, this Indenture or the Guarantee or for any claim based on, in
respect of, or by reason of, such obligations or their creation. By accepting a Debt Security, each Holder shall be deemed to have waived and released all such liability. The waiver and release shall
be part of the consideration for the issue of the Debt Securities. 

49

 

 

        Section 13.11    Severability.    In case any provision in this Indenture or the Debt Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

        Section 13.12    Effect of Headings.    The article and section headings herein and in the Table of Contents
are for convenience only and shall not affect the construction hereof. 

        Section 13.13    Indenture May Be Executed in Counterparts.    This Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument. 

 
 

  ARTICLE XIV
  GUARANTEE    
    

        Section 14.01    Unconditional Guarantee.    

        (a)   Notwithstanding
any provision of this Article XIV to the contrary, the provisions of this Article XIV shall be applicable only to, and inure solely to the
benefit of, the Debt Securities of any series designated, pursuant to Section 2.03, as entitled to the benefits of the Guarantee of each of the Subsidiary Guarantors. 

        (b)   For
value received, each of the Subsidiary Guarantors hereby fully, unconditionally and absolutely guarantees (the "Guarantee") to the Holders and to the Trustee the due
and punctual payment of the principal of, and premium, if any, and interest on the Debt Securities and all other amounts due and payable under this Indenture and the Debt Securities by the Issuers,
when and as such principal, premium, if any, and interest shall become due and payable, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise, according to
the terms of the Debt Securities and this Indenture, subject to (i) the limitations set forth in Section 14.03 and (ii) in the case of the Guarantee of the Subordinated Debt
Securities, to the subordination provisions contained in Article XII. 

        (c)   Failing
payment when due of any amount guaranteed pursuant to the Guarantee, for whatever reason, each of the Subsidiary Guarantors will be jointly and severally
obligated to pay the same immediately, subject, in the case of the Guarantee of the Subordinated Debt Securities, to the subordination provisions contained in Article XII. The Guarantee
hereunder (other than the Guarantee of Subordinated Debt Securities) is intended to be a general, unsecured, senior obligation of each of the Subsidiary Guarantors and will rank pari passu in right of
payment with all Debt of each Subsidiary Guarantor that is not, by its terms, expressly subordinated in right of payment to the Guarantee. Each of the Subsidiary Guarantors hereby agrees that its
obligations hereunder shall be full, unconditional and absolute, irrespective of the validity, regularity or enforceability of the Debt Securities, the Guarantee (including the Guarantee of any other
Subsidiary Guarantor) or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Debt Securities with respect to any provisions hereof or thereof, the
recovery of any judgment against either of the Issuers or any other Subsidiary Guarantor, or any action to enforce the same or any other circumstances which might otherwise constitute a legal or
equitable discharge or defense of any of the Subsidiary Guarantors. Each of the Subsidiary Guarantors hereby agrees that in the event of a default in payment of the principal of, or premium, if any,
or interest on the Debt Securities, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise, legal proceedings may be instituted by the Trustee on behalf of
the Holders or, subject to Section 6.04, by the Holders, on the terms and conditions set forth in this Indenture, directly against such Subsidiary Guarantor to enforce the Guarantee without
first proceeding against either of the Issuers or any other Subsidiary Guarantor. 

        (d)   The
obligations of each of the Subsidiary Guarantors under this Article XIV shall be as aforesaid full, unconditional and absolute and shall not be impaired,
modified, released or limited by 

50

 

any
occurrence or condition whatsoever, including, without limitation, (A) any compromise, settlement, release, waiver, renewal, extension, indulgence or modification of, or any change in, any
of the obligations and liabilities of any of the Issuers or the Subsidiary Guarantors contained in the Debt Securities or this Indenture, (B) any impairment, modification, release or limitation
of the liability of any of the Issuers or the Subsidiary Guarantors or any of their estates in bankruptcy, or any remedy for the enforcement thereof, resulting from the operation of any present or
future provision of any applicable Bankruptcy Law, as amended, or other statute or from the decision of any court, (C) the assertion or exercise by any of the Issuers, the Subsidiary Guarantors
or the Trustee of any rights or remedies under the Debt Securities or this Indenture or their delay in or failure to assert or exercise any such rights or remedies, (D) the assignment or the
purported assignment of any property as security for the Debt Securities, including all or any part of the rights of any of the Issuers or the Subsidiary
Guarantors under this Indenture, (E) the extension of the time for payment by any of the Issuers or the Subsidiary Guarantors of any payments or other sums or any part thereof owing or payable
under any of the terms and provisions of the Debt Securities or this Indenture or of the time for performance by any of the Issuers or the Subsidiary Guarantors of any other obligations under or
arising out of any such terms and provisions or the extension or the renewal of any thereof, (F) the modification or amendment (whether material or otherwise) of any duty, agreement or
obligation of any of the Issuers or the Subsidiary Guarantors set forth in this Indenture, (G) the voluntary or involuntary liquidation, dissolution, sale or other disposition of all or
substantially all of the assets, marshaling of assets and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or
readjustment of, or other similar proceeding affecting, any of the Issuers or the Subsidiary Guarantors or any of their respective assets, or the disaffirmance of the Debt Securities, the Guarantee or
this Indenture in any such proceeding, (H) the release or discharge of any of the Issuers or the Subsidiary Guarantors from the performance or observance of any agreement, covenant, term or
condition contained in any of such instruments by operation of law, (I) the unenforceability of the Debt Securities, the Guarantee or this Indenture or (J) any other circumstances (other
than payment in full or discharge of all amounts guaranteed pursuant to the Guarantee) which might otherwise constitute a legal or equitable discharge of a surety or guarantor. 

        (e)   Each
of the Subsidiary Guarantors hereby (A) waives diligence, presentment, demand of payment, filing of claims with a court in the event of the merger,
insolvency or bankruptcy of any of the Issuers or the Subsidiary Guarantors, and all demands whatsoever, (B) acknowledges that any agreement, instrument or document evidencing the Guarantee may
be transferred and that the benefit of its obligations hereunder shall extend to each holder of any agreement, instrument or document evidencing the Guarantee without notice to it and
(C) covenants that the Guarantee will not be discharged except by complete performance of the Guarantee. Each of the Subsidiary Guarantors further agrees that if at any time all or any part of
any payment theretofore applied by any Person to the Guarantee is, or must be, rescinded or returned for any reason whatsoever, including without limitation, the insolvency, bankruptcy or
reorganization of any of the Issuers or the Subsidiary Guarantors, the Guarantee shall, to the extent that such payment is or must be rescinded or returned, be deemed to have continued in existence
notwithstanding such application, and the Guarantee shall continue to be effective or be reinstated, as the case may be, as though such application had not been made. 

        (f)    Each
of the Subsidiary Guarantors shall be subrogated to all rights of the Holders and the Trustee against the Issuers in respect of any amounts paid by such Subsidiary
Guarantor pursuant to the provisions of this Indenture, provided, however, that such Subsidiary Guarantor, shall not be entitled to enforce or to receive any payments arising out of, or based upon,
such right of subrogation until all of the Debt Securities and the Guarantee shall have been paid in full or discharged. 

51

 

        Section 14.02    Execution and Delivery of Guarantee.    To further evidence the Guarantee set forth in
Section 14.01, each of the Subsidiary Guarantors hereby agrees that a notation relating to such
Guarantee, substantially in the form attached hereto as Annex A, shall be endorsed on each Debt Security entitled to the benefits of the Guarantee authenticated and delivered by the Trustee and
executed by either manual or facsimile signature of an Officer of such Subsidiary Guarantor. Each of the Subsidiary Guarantors hereby agrees that the Guarantee set forth in Section 14.01 shall
remain in full force and effect notwithstanding any failure to endorse on each Debt Security a notation relating to the Guarantee. If any Officer of any Subsidiary Guarantor whose signature is on this
Indenture or a Debt Security no longer holds that office at the time the Trustee authenticates such Debt Security or at any time thereafter, the Guarantee of such Debt Security shall be valid
nevertheless. The delivery of any Debt Security by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Guarantee set forth in this Indenture on behalf of the
Subsidiary Guarantors. 

        The
Trustee hereby accepts the trusts in this Indenture upon the terms and conditions herein set forth. 

        Section 14.03    Limitation on Subsidiary Guarantors' Liability.    Each Subsidiary Guarantor and by its
acceptance hereof each Holder of a Debt Security entitled to the benefits of the Guarantee hereby confirm that it is the intention of all such parties that the guarantee by such Subsidiary Guarantor
pursuant to the Guarantee not constitute a fraudulent transfer or conveyance for purposes of any Federal or state law. To effectuate the foregoing intention, the Holders of a Debt Security entitled to
the benefits of the Guarantee and the Subsidiary Guarantors hereby irrevocably agree that the obligations of each Subsidiary Guarantor under the Guarantee shall be limited to the maximum amount as
will, after giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor and to any collections from or payments made by or on behalf of any other Subsidiary Guarantor in
respect of the obligations of such other Subsidiary Guarantor under the Guarantee, not result in the obligations of such Subsidiary Guarantor under the Guarantee constituting a fraudulent conveyance
or fraudulent transfer under Federal or state law. 

        Section 14.04    Release of Subsidiary Guarantors from Guarantee.    

        (a)   Notwithstanding
any other provisions of this Indenture, the Guarantee of any Subsidiary Guarantor may be released upon the terms and subject to the conditions set forth
in Section 11.02(b) and in this Section 14.04. Provided that no Default shall have occurred and shall be continuing under this Indenture, the Guarantee incurred by a Subsidiary Guarantor
pursuant to this Article XIV shall be unconditionally released and discharged (i) automatically upon (A) any sale, exchange or transfer, whether by way of merger or otherwise, to
any Person that is not an Affiliate of the Partnership, of all of the Partnership's direct or indirect limited partnership or other equity interests in such Subsidiary Guarantor (provided such sale,
exchange or transfer is not prohibited by this Indenture) or (B) the merger of such Subsidiary Guarantor into either of the Issuers or any other Subsidiary Guarantor or the liquidation and
dissolution of such Subsidiary Guarantor (in each case to the extent not prohibited by this Indenture) or (ii) upon the Issuers' delivery of a written notice to the Trustee of the release or
discharge of all guarantees by such Subsidiary Guarantor of any Debt of the Issuers other than obligations arising under this Indenture and any Debt Securities issued hereunder, except a discharge or
release by or as a result of payment under such guarantees. 

        (b)   The
Trustee shall deliver an appropriate instrument evidencing any release of a Subsidiary Guarantor from the Guarantee upon receipt of a written request of the Issuers
accompanied by an Officers' Certificate and an Opinion of Counsel to the effect that the Subsidiary Guarantor is entitled to such release in accordance with the provisions of this Indenture. Any
Subsidiary Guarantor not so released shall remain liable for the full amount of principal of (and premium, if any) and interest on the Debt Securities entitled to the benefits of the Guarantee as
provided in this Indenture, subject to the limitations of Section 14.03. 

52

 

        Section 14.05    Subsidiary Guarantor Contribution.    In order to provide for just and equitable contribution
among the Subsidiary Guarantors, the Subsidiary Guarantors hereby agree, inter se, that in the event any payment or distribution is made by any Subsidiary Guarantor (a "Funding Guarantor") under the
Guarantee, such Funding Guarantor shall be entitled to a contribution from each other Subsidiary Guarantor (if any) in a pro rata amount based on the net assets of each Subsidiary Guarantor (including
the Funding Guarantor) for all payments, damages and expenses incurred by that Funding Guarantor in discharging the Issuers' obligations with respect to the Debt Securities or any other Subsidiary
Guarantor's obligations with respect to the Guarantee. 

[Remainder
of This Page Intentionally Left Blank.] 

53

  
        IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as of the day and year first above written. 

 

 

							
	 
	 	GLOBAL PARTNERS LP
	 
	 	 By:
	 	  GLOBAL GP LLC,

its Managing General Partner

	 
	 	 By:
	 	    

 
	 
	 	 	 	Name:	 	 
	 
	 	 	 	Title:	 	 
	 
	 	  GLP FINANCE CORP.

	 
	 	 By:
	 	    

 
	 
	 	 	 	Name:	 	 
	 
	 	 	 	Title:	 	 
	 
	 	  [NAME OF SUBSIDIARY GUARANTOR(S)]

	 
	 	 By:
	 	   

 
	 
	 	Name:	 	 	 	 
	 
	 	Title:	 	 	 	 
	 
	 	                                      , as Trustee

	 
	 	 By:
	 	    

 
	 
	 	Name:	 	 	 	 
	 
	 	Title:	 	 	 	 

 

 [Signature Page to Subordinated Indenture] 

 

 
 

  ANNEX A    
    

 
    NOTATION OF GUARANTEE    
    

        Each of the Subsidiary Guarantors (which term includes any successor Person under the Indenture), has fully, unconditionally and
absolutely guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture, the due and punctual payment of the principal of, and premium, if any, and interest on
the Debt Securities and all other amounts due and payable under the Indenture and the Debt Securities by the Issuers. 

        The
obligations of the Subsidiary Guarantors to the Holders of Debt Securities and to the Trustee pursuant to the Guarantee and the Indenture are expressly set forth in
Article XIV of the Indenture and reference is hereby made to the Indenture for the precise terms of the Guarantee. 

 

 

					
	 
	 	[NAME OF SUBSIDIARY GUARANTOR(S)]
	 
	 	 By:
	 	 

 
	 
	 	Name:	 	

 
	 
	 	Title:	 	

 

 

 A-1

QuickLinks

Exhibit 4.2

CROSS-REFERENCE TABLE

TABLE OF CONTENTS

RECITALS OF THE ISSUERS AND ANY SUBSIDIARY GUARANTORS

ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

ARTICLE II DEBT SECURITIES

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

ARTICLE III REDEMPTION OF DEBT SECURITIES

ARTICLE IV PARTICULAR COVENANTS OF THE ISSUERS

ARTICLE V HOLDERS' LISTS AND REPORTS BY THE TRUSTEE

ARTICLE VI REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT

ARTICLE VII CONCERNING THE TRUSTEE

ARTICLE VIII CONCERNING THE HOLDERS

ARTICLE IX SUPPLEMENTAL INDENTURES

ARTICLE X CONSOLIDATION, MERGER, SALE OR CONVEYANCE

ARTICLE XI SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE; UNCLAIMED MONEYS

ARTICLE XII SUBORDINATION OF DEBT SECURITIES AND GUARANTEE

ARTICLE XIII MISCELLANEOUS PROVISIONS

ARTICLE XIV GUARANTEE

ANNEX A

NOTATION OF GUARANTEEExhibit
10.4

 

LEASE AGREEMENT

 

between

 

MINNESOTA INDUSTRIAL PROPERTIES LIMITED
PARTNERSHIP

as “Landlord”

 

and

 

MOCON, INC., a Minnesota corporation 

as “Tenant”

 

 

TABLE OF CONTENTS

 

	
  SECTION

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  Error! Not a valid
  heading level in TOC entry on page 1

  	
   

  	
   

  

 

i

 

BASIC LEASE INFORMATION

 

	
  Lease
  Date:

  	
   

  	
  For
  identification purposes only, the date of this Lease is March 9, 2010.

  
	
   

  	
   

  	
   

  
	
  Landlord:

  	
   

  	
  Minnesota
  Industrial Properties Limited Partnership, a Minnesota limited partnership

  
	
   

  	
   

  	
   

  
	
  Tenant:

  	
   

  	
  Mocon, Inc.,
  a Minnesota corporation

  
	
   

  	
   

  	
   

  
	
  Project:

  	
   

  	
  Northland
  Interstate Business Center IV

  
	
   

  	
   

  	
   

  
	
  Building
  Address:

  	
   

  	
  9300 75th Avenue North, Brooklyn Park, MN 55428

  
	
   

  	
   

  	
   

  
	
  Premises
  Address:

  	
   

  	
  9300 75th Avenue North, Suite 100, Brooklyn Park,
  MN 55428

  
	
   

  	
   

  	
   

  
	
  Rentable
  Area of Building:

  	
   

  	
  Approximately
  185,000 square feet.

  
	
   

  	
   

  	
   

  
	
  Premises:

  	
   

  	
  Approximately
  60,086 rentable square feet, including approximately 31,718 rentable square
  feet of office/lab area and approximately 28,368 rentable square feet of
  warehouse space.

  
	
   

  	
   

  	
   

  
	
  Permitted
  Use:

  	
   

  	
  The Premises
  shall be used for lawful warehouse and general office/lab purposes,
  manufacturing, fabrication and/or assembly of various testing equipment and
  for no other use or purpose without Landlord’s prior written consent.

  
	
   

  	
   

  	
   

  
	
  Term:

  	
   

  	
  One hundred
  eighty-four (184) full calendar months (plus any partial month at the
  beginning of the Term) (“Initial Term”). Tenant has one Extension Option, as defined in Exhibit D
  to this Lease, to extend the Term of this Lease for one (1) additional
  consecutive five (5) year period beginning pursuant to Section 35
  (Extension of Term) of this Lease.

  
	
   

  	
   

  	
   

  
	
  Scheduled
  Commencement Date:

  	
   

  	
  June 1,
  2010

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
  The last day of
  the one hundred eighty-fourth (184th) full calendar month in the Term

  
	
   

  	
   

  	
   

  
	
  Base
  Rent:

  	
   

  	
  Initial Term: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 1-5:

  	
  none-abated* 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 6 - 16:

  	
  $367,125.46 per
  annum

  

 

1

 

	
   

  	
   

  	
   

  	
  $30,593.79 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 17 - 28:

  	
  $376,138.36 per
  annum

  
	
   

  	
   

  	
   

  	
  $31,344.86 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 29 - 40:

  	
  $385,752.12 per
  annum

  
	
   

  	
   

  	
   

  	
  $32,146.01 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 41 - 52:

  	
  $395,365.88 per
  annum

  
	
   

  	
   

  	
   

  	
  $32,947.16 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 53 - 64:

  	
  $405,580.50 per
  annum

  
	
   

  	
   

  	
   

  	
  $33,798.38 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 65 - 76:

  	
  $415,795.12 per
  annum

  
	
   

  	
   

  	
   

  	
  $34,649.59 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 77 - 88:

  	
  $426,009.74 per
  annum

  
	
   

  	
   

  	
   

  	
  $35,500.81 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 89 - 100:

  	
  $436,825.22 per
  annum

  
	
   

  	
   

  	
   

  	
  $36,402.10 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 101 -
  112:

  	
  $447,640.70 per
  annum

  
	
   

  	
   

  	
   

  	
  $37,303.39 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 113 -
  124:

  	
  $459,057.04 per
  annum

  
	
   

  	
   

  	
   

  	
  $38,254.75 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 125 -
  136:

  	
  $470,473.38 per
  annum

  
	
   

  	
   

  	
   

  	
  $39,206.12 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 137 -
  148:

  	
  $482,490.58 per
  annum

  
	
   

  	
   

  	
   

  	
  $40,207.55 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 149 —
  160:

  	
  $494,507.78 per
  annum

  
	
   

  	
   

  	
   

  	
  $41,208.98 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 161 -
  172:

  	
  $507,125.84 per
  annum

  
	
   

  	
   

  	
   

  	
  $42,260.49 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 173 -
  184:

  	
  $519,743.90 per
  annum

  
	
   

  	
   

  	
   

  	
  $43,311.99 per
  month

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Extension Term:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months 185 — 244

  	
  Market Rate (see Section 3.1(a)

  

 

2

 

	
   

  	
   

  	
  *Tenant shall be
  entitled to (i) an abatement of Base Rent and Additional Rent during
  months 1-4 of the Initial Term, and (ii) an abatement of Base Rent only
  during month 5 of the Initial Term, however, Tenant shall be responsible for
  utility consumption charges for the Premises during said abatement period. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  **To the extent
  Tenant engages in a single construction project involving permitted
  Alterations to the Premises during months 61-120 of the Initial Term that
  costs equal to or more than Two Hundred Fifty Thousand Dollars ($250,000),
  then upon completion of the project in compliance with all the terms of this
  Lease, and delivery to Landlord of unconditional full and final lien waivers
  evidencing that total hard construction costs for such project equal or
  exceed $250,000, Landlord will give Tenant a rent credit to be applied
  against the next installment of Base Rent coming due hereunder equal to
  Thirty Thousand Dollars ($30,000); provided, however, Landlord may, in its
  sole discretion, prior to commencement of construction of said construction
  project, elect to waive Section 6.6 of this Lease with respect to said
  construction project, in which event the foregoing rent credit shall be null
  and void. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ***To the extent
  Tenant engages in a single construction project involving permitted
  Alterations to the Premises during months 121-180 of the Initial Term that
  costs equal to or more than Two Hundred Fifty Thousand Dollars ($250,000),
  then upon completion of the project in compliance with all the terms of this
  Lease, and delivery to Landlord of unconditional full and final lien waivers
  evidencing that total hard construction costs for such project equal or exceed
  $250,000, Landlord will give Tenant a rent credit to be applied against the
  next installment of Base Rent coming due hereunder equal to Thirty Thousand
  Dollars ($30,000); provided, however, Landlord may, in its sole discretion,
  prior to commencement of construction of said construction project, elect to
  waive Section 6.6 of this Lease with respect to said construction
  project, in which event the foregoing rent credit shall be null and void.

  
	
   

  	
   

  	
   

  
	
  Tenant’s
  Share:

  	
   

  	
  32.48%

  
	
   

  	
   

  	
   

  
	
  Security
  Deposit:

  	
   

  	
  $41,259.06

  
	
   

  	
   

  	
   

  
	
  Landlord’s
  Address for Payment of Rent:

  	
   

  	
  Minnesota
  Industrial Properties Limited Partnership  

  c/o Ryan Companies US, Inc.  

  50 South Tenth Street, Suite 300  

  Minneapolis MN 55403-2012

  

 

3

 

	
  Landlord’s
  Address  for Notices:

  	
   

  	
  Minnesota
  Industrial Properties Limited Partnership  

  c/o Ryan Companies US, Inc.  

  50 South Tenth Street, Suite 300  

  Minneapolis MN 55403-2012

  
	
   

  	
   

  	
   

  
	
  Tenant’s
  Address  for Notices:

  	
   

  	
  Mocon, Inc.  

  9300 75th Avenue North, Suite 100  

  Brooklyn Park, MN 55428

  
	
   

  	
   

  	
   

  
	
  Broker(s):

  	
   

  	
  Tenant: NAI
  Welsh (Peter Mork; Tim Olsen)  

  Landlord: CB Richard
  Ellis (Matt A. Oelschlager)

  
	
   

  	
   

  	
   

  
	
  Guarantor(s):

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Property
  Manager:

  	
   

  	
  Ryan Companies
  US, Inc.

  
	
   

  	
   

  	
   

  
	
  Additional
  Provisions:

  	
   

  	
  35. Extension of
  Term; 36. Permitted Trash Enclosure

  

 

	
  Exhibits:

  	
   

  	
   

  
	
  Exhibit A:

  	
   

  	
  The Premises

  
	
  Exhibit B:

  	
   

  	
  Construction Rider

  
	
  Exhibit B-1:

  	
   

  	
  Final Cost Estimate

  
	
  Exhibit C:

  	
   

  	
  Building Rules

  
	
  Exhibit D:

  	
   

  	
  Additional Provisions Rider

  
	
  Exhibit E:

  	
   

  	
  Tenant’s
  Hazardous Materials List

  
	
  Exhibit F:

  	
   

  	
  Non-Disturbance,
  Attornment, Estoppel and Subordination Agreement

  

 

The Basic Lease Information set forth above is part of the Lease.  In the event of any conflict between any
provision in the Basic Lease Information and the Lease, the Lease shall control.

 

4

 

THIS LEASE is made as of the Lease Date set forth in the Basic Lease
Information, by and between the Landlord identified in the Basic Lease
Information (“Landlord”), and the Tenant
identified in the Basic Lease Information (“Tenant”).  Landlord and Tenant hereby agree as follows:

 

1.            PREMISES.

 

1.1          Premises Described.  Landlord hereby leases to Tenant, and Tenant
hereby leases from Landlord, in its “as-is” condition, except for latent
defects in the Tenant Improvements (defined in Exhibit B) and
Landlord’s lease obligations hereunder, including the Tenant Improvements
described in Exhibit B, upon the terms and subject to the
conditions of this Lease, the  premises
identified in the Basic Lease Information as the Premises (the “Premises”), in the Building located at the Building Address
specified in the Basic Lease Information (the “Building”).  The approximate configuration and location of
the Premises is shown on Exhibit A. 
Landlord and Tenant agree that during the entire Term of this Lease,
including any extension thereof, the rentable area of the Premises (“Rentable Area”) for all purposes under this Lease, except as
otherwise provided in Section 12 (Damage or Destruction) or Section 13
(Condemnation), shall be the Rentable Area specified in the Basic Lease
Information.  Landlord and Tenant agree
that the rentable area of the Building (“Building Rentable Area”)
for all purposes under this Lease,  except as otherwise provided in Section 12
(Damage or Destruction) or Section 13 (Condemnation), shall be the
Building Rentable Area specified in the Basic Lease Information.  The Building, together with the parking
facilities serving the Building (the “Parking Facility”),
the common areas (the “Common Areas”)
and the parcel(s) of land on which the Building and the Parking Facility
are situated (collectively, the “Property”), is
part of the Project, which  may contain
more than one building, identified in the Basic Lease Information (the “Project”).

 

Notwithstanding the foregoing to the contrary, within thirty (30) days
after the earlier of (i) the date Landlord notifies Tenant in writing that
installation of the demising wall has been completed sufficient to permit
measurement of the Rentable Area of the Premises, or (ii) the date
Landlord delivers the Premises to Tenant with the Tenant Improvements
Substantially Completed, Landlord’s architect shall have the Rentable Area of
the Premises verified by measuring same in accordance with the standard herein
provided and shall give written notice as to such measurement to Landlord and
Tenant.  In the event that the
verification reveals a discrepancy between the Rentable Area of the Premises
specified in the Basic Lease Information and the Rentable Area of the Premises
determined by Landlord’s architect and either Landlord or Tenant dispute the
measurement of Landlord’s architect by written notice delivered to the other
party within fifteen (15) days after Landlord delivers its architect
verification of the Rentable Area to Tenant, then an independent architect
acceptable to both parties (the cost of which shall be divided equally between
Landlord and Tenant) shall measure the Premises in accordance with the standard
herein provided.  If neither party
disputes the Rentable Area determined by Landlord’s architect within said
fifteen (15) day period, then the determination of Rentable Area by Landlord’s
architect shall be deemed conclusive. If either party timely disputes the
Rentable Area determined by Landlord’s architect, then the square footage of
Rentable Area of the Premises as determined by said independent architect shall
be the Rentable Area of the Premises for purposes of this Lease, and within
thirty (30 days thereafter, the parties shall execute an addendum to this Lease
in form prepared by Landlord’s counsel confirming same and the Base Rent,
Tenant’s Share of Operating Costs and 

 

5

 

any other sums due
hereunder based in whole or in part on the rentable square footage of the
Building, and further any necessary payments or reimbursements shall be made by
the appropriate party.  The Rentable Area
of the Building will be calculated in accordance with the American National
Standard Method of Measuring Floor Area in Office Buildings,
ANSI/BOMAA65.1-1996.

 

1.2          Common Areas.    The term “Common Areas”
as used herein means all areas and facilities outside the Premises, within the
exterior boundaries of the Project, that are provided and designated by
Landlord from time to time for the general non-exclusive use and convenience of
Tenant and of other tenants of Landlord having the common use of such areas,
and their respective authorized representatives and invitees.  Common Areas include, without limitation,
driveways, parking areas, sidewalks, and landscaped areas, all as generally
described or shown on Exhibit A attached hereto.  Landlord hereby grants to Tenant, for the
benefit of Tenant and its employees, suppliers, shippers, customers and
invitees, during the Term of this Lease, the non-exclusive right to use, in
common with others entitled to such use, the Common Areas as they exist from
time to time, subject to any rights, powers, and privileges reserved by
Landlord under the terms hereof or under the terms of any reasonable rules and
regulations or restrictions governing the use of the Building or the
Project.  Under no circumstances shall
the right herein granted to use the Common Areas be deemed to include the right
to store any property, temporarily or permanently, in the Common Areas, except
for Tenant’s dumpsters and the permitted trash enclosure, as more particularly
set forth in Section 36 of this Lease.

 

(a)           Common
Areas-Changes.  Landlord shall have
the right, in Landlord’s reasonable discretion, from time to time, so long as
Tenant’s rights under the Lease are not materially diminished and Tenant’s
access to the Premises and parking are not materially interfered with;

 

1.             To make changes and
reductions to the Common Areas, including, without limitation, changes in the
location, size, shape and number of driveways, entrances, parking spaces,
parking areas, loading and unloading areas, ingress, egress, direction of
traffic, landscaped areas and walkways;

 

2.             To close
temporarily any of the Common Areas for maintenance purposes so long as
reasonable access to the Premises remains available;

 

3.             To designate other
land outside the boundaries of the Building to be a part of the Common Areas;

 

4.                                      To add additional improvements to the Common Areas;

 

5.             To use the Common
Areas while engaged in making additional improvements, repairs or alterations
to the Building or Project, or any portion thereof;

 

6.             To do and perform
such other acts and make such other changes in, to or with respect to the
Common Areas as Landlord may, in the exercise of sound business judgment, deem
to be appropriate.

 

6

 

(b)           Common Area
Maintenance.  Landlord shall, in
Landlord’s reasonable discretion, maintain and repair the Common Areas (subject
to reimbursement pursuant to this Lease) including snow and ice removal from
sidewalks and parking areas, lawn care and landscaping and establish and
enforce reasonable non-discriminatory rules and regulations concerning
such areas.

 

(c)           Tenant’s Use of
Parking Areas.  Tenant and its
employees, customers, visitors, and licensees shall have the non-exclusive
right to use, in common with other parties occupying the Buildings or Project,
at least 175 parking spaces in the Project, subject to such reasonable rules and
regulations as Landlord may from time to time prescribe.

 

2.             TERM; POSSESSION.  The term of this Lease (the “Term”) shall commence on the Commencement Date as described
below and, unless sooner terminated, shall expire on the Expiration Date set
forth in the Basic Lease Information (the “Expiration Date”).  The “Commencement Date”
shall be the date on which Landlord tenders possession of the Premises to
Tenant, with all of Landlord’s construction obligations “Substantially
Completed” as provided in the Construction Rider attached as Exhibit B
(the “Construction Rider”) or, in the event
of any “Tenant Delay,” as defined in the
Construction Rider, the date on which Landlord could have done so had there
been no such Tenant Delay.  The parties
anticipate that the Commencement Date will occur on or about the Scheduled
Commencement Date set forth in the Basic Lease Information (the “Scheduled Commencement Date”); provided, however, that
Landlord shall not be liable for any claims, damages or liabilities if the
Premises are not ready for occupancy by the Scheduled Commencement Date, except
as specifically set forth herein.  When
the Commencement Date has been established, Landlord and Tenant shall at the
request of either party confirm the Commencement Date and Expiration Date in
writing.

 

In the event
Landlord fails to deliver possession of the Premises to Tenant with the Tenant
Improvements Substantially Completed on or before July 1, 2010, subject to
force majeure delays (described in Section 26) and Tenant Delays (defined
in Exhibit B), then Tenant as its sole and exclusive remedy shall
be entitled to an abatement of one day of Base Rent for each day after July 1,
2010 that the Tenant Improvements  have
not been Substantially Completed.  Such
day-for-day Base Rent abatement shall commence to apply upon the Commencement
Date of the Lease and shall continue until applied in full, provided, however,
that it is the intent of the parties that this day-for-day rent abatement be
applied consecutively, not concurrently, with any other rent abatement or
credit which may be then-applicable.  In
the event Landlord fails to deliver possession of the Premises to Tenant with
the Tenant Improvements Substantially Completed on or before September 1,
2010, subject to force majeure delays (described in Section 26) and Tenant
Delays (defined in Exhibit B), then Tenant as its sole and
exclusive remedy shall have the right to terminate this Lease by providing
Landlord with ten (10) days’ prior written notice thereof, but in any
event given before Landlord has Substantially Completed the Tenant
Improvements.  Other than as aforesaid,
Landlord shall have no liability to Tenant for failure to deliver possession of
the Premises to Tenant with Tenant Improvements Substantially Completed on or
before June 1, 2010. Notwithstanding anything in this Lease to the
contrary, if this Lease is not fully executed by the parties by March 5,
2010, including without limitation, approval and signature by Landlord, Tenant
and Wells Fargo Bank, National Association (“Wells Fargo”), of the NDESA
attached hereto as Exhibit F, then each of the above described
deadlines in this subparagraph shall be extended one day for each day after March 5,
2010 until the Lease is fully executed by the parties and the NDESA is fully executed
by Landlord, Tenant and Wells Fargo.

 

7

 

3.            RENT.

 

3.1          Base Rent.  Tenant agrees to pay to Landlord the Base
Rent in the Base Rent schedule set forth in the Basic Lease Information,
without prior notice or demand, on the first day of each and every calendar
month during the Term, except as otherwise provided in said Base Rent
schedule.  Within forty-five (45) days
after execution of the Lease by both Landlord and Tenant, Tenant shall pay
Landlord the amount of Base Rent and Additional Rent for the first full month
that Rent is payable pursuant to said Base Rent schedule. Base Rent for any
partial month at the beginning or end of the Term shall be prorated based on
the actual number of days in the month and paid by the Commencement Date.

 

(a)           Base Rent:
Extension Term.  Tenant agrees to pay
to Landlord Base Rent for the Extension Term at the Market Rate.  “Market Rate” shall be defined
as what an arm’s-length, non-expansion, non-equity tenant of comparable credit
to Tenant would, as of the beginning of the term in question, pay for space of
comparable size, quality, utility and location, taking into account the length
of the term and all allowances and concessions being offered in the market.  The Market Rate shall be determined as
follows:  Within thirty (30) days after
Landlord receives notice from Tenant of Tenant’s election to exercise an
Extension Option, Landlord will give notice to Tenant of its determination of
the Market Rate for the Premises and Landlord’s determination will constitute
the Market Rate unless Tenant objects by notice to Landlord in writing within
thirty (30) days after Tenant’s receipt of Landlord’s determination. Landlord’s
notice of determination shall include a statement in all capitalized, 12 point
or larger type on the first page of the notice stating:  “THE DETERMINATION OF MARKET RENT SET FORTH
HEREIN SHALL BE BINDING ON TENANT UNLESS TENANT SHALL OBJECT THERETO WITHIN 30
DAYS OF TENANT’S RECEIPT OF THIS NOTICE.”  
If Tenant so objects, the parties shall meet within fifteen (15) days
after Tenant’s objection and attempt to agree on the Market Rate.  If the parties are unable to agree on the
Market Rate within such 15-day period, then (x) the Extension Term of this
Lease as defined in Exhibit D may be cancelled at the request of
either party, provided, however, notice of cancellation must be delivered to
the other party within five (5) business days after expiration of the
15-day period described above or this right of cancellation shall be deemed
waived and the Market Rate shall be determined by appraisal pursuant to
subparagraph (y) below and the following provisions of this Section 3.1(a),
or (y) the Market Rate will be determined by appraisal, made by a board of
appraisers consisting of three reputable real estate appraisers, each of whom
has been actively involved in commercial real estate in Minneapolis, Minnesota
no less than ten years prior to appointment (each an “Expert”).  In addition, each such Expert shall have been
active over the five (5) year period ending on the date of such
appointment in the appraisal of comparable commercial properties in the
Northwest submarket of the Twin Cities metropolitan area.  One Expert will be appointed by Tenant, and
one Expert will be appointed by Landlord. 
Both Landlord and Tenant shall appoint their Expert within fifteen (15)
days after the failure of Landlord and Tenant to agree on the  Market
Rate.  The third Expert will be appointed
by the first two Experts.  If the first
two Experts are unable to agree on a third Expert within ten (10) days
after the appointment of the second Expert, or if either party refuses or
neglects to appoint an Expert as herein provided within fifteen (15) days after
the appointment of the first Expert, then the third Expert or the second
Expert, whose appointment was not made as provided above, may be appointed by
any active judge of the District Court of the County where the Premises is
located.  If determinations of at least
two of the Experts are identical in amount, then that amount will be determined
to be the

 

8

 

Market
Rate.  If the determinations of all three
Experts are different in amount, the highest appraised value will be averaged
with the middle value (that average being referred to as “Sum A”).  The lowest appraised value will be averaged
with the middle value (that average being referred to as “Sum B”),
and the Market Rate will be determined as follows:  (i) if neither Sum A nor Sum B
differs from the middle appraised value by more than 10% of the middle
appraised value, then the Market Rate will be the average of the three
appraisals, (ii) if either Sum A or Sum B (but not both) differs
from the middle appraised value by more than 10% of the middle appraised value,
then the Market Rate will be the average of the middle appraised value and the
appraised value closer in amount to the middle appraised value, and (iii) if
both Sum A and Sum B differ from the middle appraised value by more
than 10% of the middle appraised value, then the Market Rate will be equal to
the middle appraised value.  Written
notice of the Market Rate as duly determined in accordance with this Section shall
be promptly given to Landlord and Tenant and will be binding and conclusive on
them.  Each party will bear its own
expenses in connection with the Market Rate determination proceedings, except
that the fees of the Experts will be borne equally.  If, for any reason, the Market Rate has not
been determined at the time of the commencement of the Extension Term, then the
Market Rate will be the amount set forth in Landlord’s determination, and if
the determination of the Experts as provided above indicates that a lesser or
greater amount should have been paid than that which was actually paid, a
proper adjustment will be made in a payment from Landlord to Tenant, or Tenant
to Landlord, as the case may be, such payment to be made within thirty (30)
days of the determination of the Market Rate.

 

3.2          Additional
Rent:  Increases in Operating Costs and
Taxes.

 

(a)           Definitions.

 

(1)           “Operating Costs” means all costs of managing, operating,
maintaining and repairing the Property, including, but not limited to, all
costs, expenditures, fees and charges for: 
(A) operation, maintenance and repair of the Property (including
maintenance, repair and replacement of glass and landscaping and maintenance and
repair (but not replacement) of the roof covering or membrane); (B) utilities
and services (including trash removal), 
servicing the Common Areas and associated supplies and materials; (C) compensation
(including employment taxes and fringe benefits) for persons who perform duties
in connection with the operation, management, maintenance and repair of the
Project, such compensation to be appropriately allocated for persons who also
perform duties unrelated to the Project ; (D) property (including coverage
for earthquake and flood if required to be carried by Landlord by its lender or
carried by Landlord in its reasonable determination), liability, rental income
(not to exceed 12 month’s coverage) and other insurance relating to the
Project, and expenditures for deductible amounts paid under such insurance; (E) licenses,
permits and inspections; (F) complying with the requirements of any
federal, state, municipal or local law, statute, ordinance or governmental rule or
regulation or any orders pursuant thereto (collectively “Laws”)
which become effective after the  Lease Date ; (G) amortization of capital
improvements required to comply with Laws which become effective after the
Lease Date, or which are intended to reduce Operating Costs (not to exceed the
amount of such savings in any event) or improve the utility, efficiency or
capacity of any Building System, with interest on the unamortized balance at
the rate paid by Landlord on funds borrowed to finance such capital
improvements (or, if Landlord finances such improvements out of Landlord’s
funds without borrowing, the rate that Landlord would have paid to borrow such
funds, as reasonably determined by Landlord), over such useful life as Landlord
shall reasonably 

 

9

 

determine pursuant
to generally accepted accounting principals; (H) market rate property
management fees, not to exceed five percent (5%) of total gross rental of the
Building (provided however, if average occupancy of the Building is less than
100%, then Landlord may recover a minimum management fee at market rates),
which shall include accounting, bill paying and management activities, salaries
and costs of management employees, such that there will be a single management
fee subject to the limitations above; (I) accounting, legal and other
professional services incurred in connection with the operation of the Project
and the calculation of Operating Costs and Taxes; (J) a reasonable
allowance for depreciation on machinery and equipment used to maintain the
Project and on other personal property owned by Landlord in the Property; (K) contesting
the validity or applicability of any Laws that may affect the Property but only
to the extent any cost savings are achieved by the contest; (L) the Building’s
proportionate share of any Common Area maintenance fees and expenses shared
with other properties adjacent to the Project; and (M) any other cost,
expenditure, fee or charge, whether or not herein before described, which in
accordance with generally accepted property management practices would be
considered an expense of managing, operating, maintaining and repairing the
Project.  Operating Costs that vary with
occupancy for any calendar year during which average occupancy of the Building
is less than one hundred percent (100%) shall be calculated based upon the
Operating Costs that would have been incurred if the Building had an average
occupancy of one hundred percent (100%) during the entire calendar year.

 

Operating Costs
shall not include (i) capital improvements (except as otherwise provided
above); (ii) costs of special services rendered to individual tenants
(including Tenant) for which a special charge is made; (iii) interest and
principal payments on loans or indebtedness secured by the Building; (iv) costs
of improvements or construction allowances for Tenant or other tenants of the
Building; (v) costs of services or other benefits of a type which are not
available to Tenant but which are available to other tenants or occupants, and
costs for which Landlord is reimbursed by other tenants of the Building other
than through payment of tenants’ shares of increases in Operating Costs and
Taxes; (vi) leasing commissions, attorneys’ fees, advertising or
promotional expenses or disputes with tenants, and other expenses incurred in
connection with leasing space in the Building or enforcing such leases or
developing the Project; (vii) depreciation or amortization, other than as
specifically enumerated in the definition of Operating Costs above; (viii) costs,
interest, fines or penalties incurred due to Landlord’s violation of any Law or
breach of its obligations under this Lease; (ix) the cost of any off-site
personnel (except to the extent ratably allocated to the Property, e.g.
pro-rata cost of maintenance personnel), Landlord’s home office expenses, or
any on-site personnel above the level of building manager or superintendent; (x) debt
amortization or financing or refinancing costs; (xi) expenses for which
Landlord is or will be reimbursed out of insurance, warranty or condemnation
proceeds; (xii) any cost to comply with Laws which were effective as of the
Lease Date; (xiii) rent, additional rent and other charges payable under any
ground lease or any lease superior to this Lease; (xiv) intentionally deleted;
(xv) any costs or other sums paid to any person or entity related to or
affiliated with Landlord to the extent that same exceeds the reasonable and
customary cost thereof; (xvi) professional fees incurred in connection with the
preparation of financial statements, tax returns and other documents and
information for Landlord or its mortgagees or other costs associated with the
operation of the business of the entity which constitutes Landlord, as the same
are distinguished from the costs of operation or management of the Project,
such as but not limited to accounting and legal matters, costs of defending any
lawsuits with any mortgagee, costs of selling, syndicating, financing,
mortgaging, or hypothecating any of Landlord’s interest in the Project or the
land thereunder, costs of disputes between Landlord and its employees or
Building management or 

 

10

 

other tenants;
(xvii) intentionally deleted; (xviii) costs of paintings, sculptures or other
artwork; (xiv) expenses arising from the negligence of Landlord, its agents,
employees or contractors; (xx) bad debt or rent loss reserves; (xxi) charitable
contributions or memberships in organizations, whether professionals,
political, civic or charitable; (xxii) utility charges for utilities separately
metered or sub-metered to other tenants and any extraordinary charges imposed
on other tenants by Landlord for such tenants’ disproportionate use of shared
utilities, if any; (xxiii) costs incurred in connection with the original
construction of the Building or the repair of any defects in the initial
original construction of the Building or inadequacy of the initial design or
construction of the Building, or the Building equipment or appurtenances
thereto; or costs incurred in connection with any major change in the Building,
such as but not limited to adding or expanding floors or decreasing the size
thereof or any sale or marketing of the Property or the preparation of the
Property for sale; (xxiv) any recalculation of or additional Operating Expenses
for which Landlord first notifies Tenant of required payment more than eighteen
(18) months after the later of (1) the year in which the Operating
Expenses were incurred, or (2) receipt of the invoice for the applicable
recalculated or additional Operating Expense, or in any event more than twenty
(24) months after the year in which the Operating Expenses were incurred; (xxv)
any amounts “grossed up” based on less than 100% occupancy of the Building,
which do not vary with occupancy; (xxvi) rental for a building management
office, or any costs attributable to the operation or maintenance of a building
management office; (xxvii) costs and reserves thereof of a capital nature,
except that Landlord may include the yearly amortization of the cost of capital
repairs and replacements (including those described in Section 3.2(a)(1)(G) above),
except as otherwise provided in Section 7.2 of this Lease, provided that
such capital expenditures are amortized over the useful life of each particular
capital expenditure at an interest rate of eight percent (8.0%) per annum;
(xxviii) costs relative to any damage or destruction of the Property, except
deductibles or retentions maintained on Landlord’s insurance not to exceed
$50,000; (xxix) costs associated with Hazardous Materials (except costs not to
exceed $1,000 per calendar year for disposal of Hazardous Materials caused by
parties against whom Landlord has no recourse or recovery (e.g. unknown third
party dumper)); (xxx) special events held on the Property or Project not
approved by Tenant; (xxxi) travel entertainment or related expenses incurred by
Landlord or its Property Manager or personnel; (xxxii) premiums paid to perform
work on the Building or Project after hours or unless approved in advance in
writing by Tenant (except in the event of an emergency); and (xxxiii) any costs
attributable solely to any buildings other than the Building.

 

Operating Expenses shall exclude all cash or credit discounts, trade
discounts, or quantity discounts received by Landlord or Landlord’s managing
agent in the purchase of any goods, utilities, or services in connection with
the operation of the Building.  In the
event Landlord leases any item otherwise constituting an Operating Expense,
Landlord’s election to lease such item rather than purchase it shall not serve
to increase Tenant’s proportionate share of Operating Expenses beyond that
which would have applied had said item been purchased.  Landlord shall maintain its books and records
pertaining to Operating Expenses and Real Estate Taxes in accordance with
generally accepted accounting principles.

 

Notwithstanding
anything there to the contrary, Landlord shall not recover as Taxes or
Operating Expenses more than 100% of the Taxes and Operating Expenses actually
paid by Landlord.  If Landlord receives a
refund or credit toward Operating Expenses subsequent to the year in which such
expense was paid and charged to Operating Expenses, Landlord shall credit Tenant’s
account (or pay to Tenant for such portion as there is insufficient Term
remaining to fully utilize the credit) 

 

11

 

the amount of such
refund or credit to the extent Tenant directly or indirectly was charged for
such expense during a prior year.

 

(2)           “Taxes” means:  all
real property taxes and general, special or district assessments or other
governmental impositions, of whatever kind, nature or origin, imposed on or
against the Property or against Landlord by reason of its ownership of the
Property (except as otherwise provided herein) which are due and payable during
the Term; service payments in lieu of taxes and taxes and assessments of every
kind and nature whatsoever levied or assessed in addition to, in lieu of or in
substitution for existing or additional real or personal property taxes on the
Property or the personal property described above that are due and payable
during the Term of the Lease; and the reasonable cost of contesting by
appropriate proceedings the amount or validity of any taxes, assessments or
charges described above, but only to the extent of the cost savings in Taxes
that is achieved thereby.  Taxes shall in
no event include Landlord’s income, estate, inheritance, transfer, or gross
receipts.  In the event Landlord has the
right to pay all or any portion of Taxes in installments, then regardless of
whether Landlord elects such method of payment, Landlord shall, for the
purposes of this Lease, be deemed to have elected the longest period of payment
permissible (but without incurring late fees, interest or penalties) for the
purpose of the inclusion thereof in Taxes.

 

(3)           “Tenant’s Share” means the Rentable Area of the Premises
divided by the total Rentable Area of the Building, as set forth in the Basic
Lease Information.  If the Rentable Area
of the Building is changed or the Rentable Area of the Premises is changed by
Tenant’s leasing of additional space hereunder or for any other reason, Tenant’s
Share shall be adjusted accordingly.

 

(b)           Additional Rent.

 

(1)           Tenant shall pay
Landlord as “Additional Rent” for each calendar
year or portion thereof during the Term (except as otherwise provided in the
Base Rent schedule set forth in the Basic Lease Information) Tenant’s Share of
the sum of (x) Operating Costs for such 
period, and (y) Taxes for such period.

 

(2)           Prior to the
beginning of each calendar year, Landlord shall notify Tenant of Landlord’s
estimate of Operating Costs, Taxes and Tenant’s Additional Rent for the
following calendar year.  Commencing on
the first day of January of each calendar year and continuing on the first
day of every month thereafter in such year, Tenant shall pay to Landlord
one-twelfth (1/12th) of the estimated Additional Rent.  If Landlord thereafter estimates that
Operating Costs or Taxes for such year will vary from Landlord’s prior
estimate, Landlord may, by notice to Tenant, revise the estimate for such year
(and Additional Rent shall thereafter be payable based on the revised
estimate).

 

(3)           Within one hundred
twenty (120) days after the end of each calendar year during the Term, Landlord
shall furnish Tenant a statement with respect to such year, showing Operating
Costs, Taxes and Additional Rent for the year, and the total payments made by
Tenant with respect thereto.  Unless
Tenant raises any objections to Landlord’s statement within eight (8) months
after receipt of the same, such statement shall conclusively be deemed correct
and Tenant shall have no right thereafter to dispute such statement or any item
therein or the computation of Additional Rent based thereon.  If Tenant does object to such statement, then
Landlord shall 

 

12

 

provide Tenant
with reasonable verification of the figures shown on the statement and the
parties shall negotiate in good faith to resolve any disputes.  Any objection of Tenant to Landlord’s
statement and resolution of any dispute shall not postpone the time for payment
of any amounts due Tenant or Landlord based on Landlord’s statement, nor shall
any failure of Landlord to deliver Landlord’s statement in a timely manner
relieve Tenant of Tenant’s obligation to pay any amounts due Landlord based on
Landlord’s statement, provided such statement is delivered within eighteen (18)
months after the later of (i) the end of the calendar year to which the
expenses relate, or (ii) receipt of the invoice for the applicable
expenses, but in any event not later than twenty (24) months after the end of
the calendar year to which the expenses relate. 
Within eight (8) months after receipt of Landlord’s annual
reconciliation statement, Tenant shall have the right, during normal business
hours and at the offices of Landlord or its management agent, and upon not less
than thirty (30) days’ prior written notice to Landlord, to review or audit
Landlord’s books and records pertaining to Taxes or Operating Expenses.  If Tenant uses a third party to perform any
such review or audit, such third party must be a certified public accountant
whose compensation for such work is not based partially or wholly on a
contingent fee or similar arrangement. 
In the event that Tenant’s review or audit discloses that Landlord has
overcharged Tenant, Landlord shall reimburse Tenant for the excess amounts paid
by Tenant plus interest at the rate set forth herein for late payments of
Rent.  In addition, in the event that any
such overcharge exceeds the amount actually owed by Tenant by more than five
percent (5%), Landlord shall reimburse Tenant for the reasonable cost of its
audit, excluding travel, meals and lodging.

 

(4)           If Tenant’s
Additional Rent as finally determined for any calendar year exceeds the total
payments made by Tenant on account thereof, Tenant shall pay Landlord the
deficiency within thirty (30) days of Tenant’s receipt of Landlord’s statement.  If the total payments made by Tenant on
account thereof exceed Tenant’s Additional Rent as finally determined for such
year, Tenant’s excess payment shall be credited toward the rent next due from
Tenant under this Lease.  For any partial
calendar year at the beginning or end of the Term, Additional Rent shall be
prorated on the basis of a 365-day year by computing Tenant’s Share of
Operating Costs and Taxes for the entire year and then prorating such amount
for the number of days during such year included in the Term.  Notwithstanding the termination of this
Lease, Landlord shall pay to Tenant or Tenant shall pay to Landlord, as the
case may be, within thirty (30) days after Tenant’s receipt of Landlord’s final
statement for the calendar year in which this Lease terminates, the difference
between Tenant’s Additional Rent for that year, as finally determined by
Landlord, and the total amount previously paid by Tenant on account thereof.

 

3.3          Payment of Rent.  All amounts payable or reimbursable by Tenant
under this Lease, including late charges and interest (collectively, “Rent”), shall constitute rent and shall be payable and
recoverable as rent in the manner provided in this Lease.  All sums payable to Landlord on demand under
the terms of this Lease shall be payable within thirty (30) days after notice
from Landlord of the amounts due.  All
Rent shall be paid without offset, recoupment or deduction, except as otherwise
specifically set forth herein, in lawful money of the United States of America  to Landlord at
Landlord’s Address for Payment of Rent as set forth in the Basic Lease
Information, or to such other person or at such other place as Landlord may
from time to time designate.

 

4.             SECURITY DEPOSIT.  Upon execution of this Lease, Tenant shall
deposit with Landlord the amount specified in the Basic Lease Information as
the Security Deposit, if any (the “Security Deposit”),
as security for the performance of Tenant’s obligations under this Lease.  Landlord may (but shall have no obligation
to) use the Security Deposit or any portion thereof to cure any Event 

 

13

 

of Default under
this Lease or to compensate Landlord for any damage Landlord incurs as a result
of Tenant’s failure to perform any of Tenant’s obligations hereunder.  In such event Tenant shall pay to Landlord on
demand an amount sufficient to replenish the Security Deposit.  If Tenant is not in default at the expiration
or termination of this Lease, Landlord shall return to Tenant the Security
Deposit or the balance thereof then held by Landlord and not applied as
provided above within thirty (30) days after Lease termination.  Landlord may commingle the Security Deposit
with Landlord’s general and other funds. 
Landlord shall not be required to pay interest on the Security Deposit
to Tenant.

 

5.             USE AND COMPLIANCE WITH LAWS.

 

5.1          Use.  The Premises shall be used and occupied for
the Permitted Use and for no other use or purpose without Landlord’s prior
written consent.  Subject to the other terms
of this Lease, beginning on the date Landlord delivers the Premises to Tenant
with the Tenant Improvements Substantially Completed, Tenant and its employees,
licensees, and guests, shall have access to the Premises at all times, 24 hours
per day, every day of the year.  Tenant
shall comply with all present and future Laws relating to Tenant’s specific or
unique manner of use or occupancy of the Premises or because of any Alterations
made by Tenant to the Premises (and make any repairs, alterations or improvements
as required to comply with all such Laws), and shall observe the Building Rules (as
defined in Section 27 - Rules and
Regulations); provided, however, Tenant shall not be responsible for
any outstanding code compliance violations that are the responsibility of
Landlord that may be triggered by Tenant’s specific use or occupancy of the
Premises or Alterations made by Tenant to the Premises.  Tenant may install its standard tenant
identification logo and letter signage on the exterior of the Premises facing
Highway 169, subject to the Building Rules, reasonable consent of Landlord,
City approval and subject to and in compliance with applicable laws, codes and
ordinances. Tenant shall not do, bring, keep or sell anything in or about the
Premises that is prohibited by, or that will cause a cancellation of or an
increase in the existing premium for, any insurance policy covering the
Property or any part thereof.  Tenant
shall not permit the Premises to be occupied or used in any manner that will
constitute waste or a nuisance, or unreasonably disturb the quiet enjoyment of
or otherwise annoy other tenants in the Building. No waste, materials or refuse
shall be dumped upon or permitted to remain outside the Premises or upon the
Property.  Tenant shall not, without the
prior consent of Landlord, (i) bring into the Building or the Premises
anything that may cause substantial noise, odor or vibration, overload the
floors in the Premises or the Building or any of the heating, ventilating and
air-conditioning (“HVAC”),
mechanical, plumbing, electrical, fire protection, life safety, security or
other systems in the Building (“Building
Systems”), or jeopardize the structural integrity of the Building or
any part thereof; (ii) connect to the utility systems of the Building any
apparatus, machinery or other equipment other than that, for which the utility
systems have been designed; or (iii) connect to any electrical circuit in
the Premises any equipment or other load with aggregate electrical power
requirements in excess of 80% of the rated capacity of the circuit. Landlord
shall be responsible for complying with all Laws affecting the design,
construction and
operation of the Building (including the Premises to the extent Tenant
is not required to comply therewith as provided for above or as otherwise
provided in this Lease) or relating to the performance by Landlord of any
duties or obligations to be performed by it hereunder, provided, however,
Landlord’s costs of compliance will be included in Operating Costs.  Tenant shall have no obligation to comply
with or pay for the compliance with any Laws requiring alterations,
modifications, or repairs to any conduits, pipes, or duct work which is located
within the Premises (such as within the plenum area) but which exclusively
serves any building wide systems 

 

14

 

(provided,
however, this shall not relieve Tenant of its obligation to pay for costs
related to same to the extent permitted to be included in Operating Costs) or
premises within the Building other than the Premises, it being the intent of
the parties that the cost of such modifications, alterations, and repairs shall
be Landlord’s responsibility or the responsibility of the tenant served
exclusively by such systems.  Landlord
represents to the best of its actual knowledge and belief that the Building
will be in compliance with all Laws as of the date Landlord initially delivers
the Premises to Tenant. Landlord warrants that the Premises will be in
compliance with all Laws as of the Lease Date. Landlord warrants that the
Tenant Improvements constructed upon the Premises by Landlord will be in
compliance with all Laws as of the date Landlord initially delivers the
Premises to Tenant.

 

5.2          Hazardous
Materials.

 

(a)           Definitions.

 

(1)           “Hazardous Materials” shall mean any substance:  (A) that now or in the future is
regulated or governed by, requires investigation or remediation under, or is
defined as a hazardous waste, hazardous substance, pollutant or contaminant
under any governmental statute, code, ordinance, regulation, rule or
order, and any amendment thereto, including the Comprehensive Environmental
Response Compensation and Liability Act, 42 U.S.C. §9601 et seq.,
and the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq.,
or (B) that is toxic, explosive, corrosive, flammable, radioactive,
carcinogenic, dangerous or otherwise hazardous, including gasoline, diesel
fuel, petroleum hydrocarbons, polychlorinated biphenyls (PCBs), asbestos, radon
and urea formaldehyde foam insulation.

 

(2)           “Environmental Requirements” shall mean all present and
future Laws, orders, permits, licenses, approvals, authorizations and other
requirements of any kind applicable to Hazardous Materials.

 

(3)           “Handled by Tenant” and “Handling by Tenant”
shall mean and refer to any installation, handling, generation, storage, use,
disposal, discharge, release, abatement, removal, transportation, or any other
activity of any type by Tenant or its agents, employees, contractors,
licensees, assignees, sublessees, transferees or representatives (collectively,
“Representatives”) or its guests,
customers, invitees, or visitors (collectively, “Visitors”)
in connection with or involving Hazardous Materials at or about the Premises
introduced, released, disposed or discharged upon the Premises by Tenant, its
Representatives or Visitors.

 

(4)           “Environmental Losses” shall mean all costs and expenses of
any kind, damages, including foreseeable and unforeseeable consequential
damages, fines and penalties incurred in connection with any violation of and
compliance with Environmental Requirements  and all losses of any kind attributable to
the diminution of value, loss of use or adverse effects on marketability or use
of any portion of the Premises or Property.

 

(b)           Tenant’s
Covenants.  Tenant represents that it
is a very small quantity generator (EPA classification) and will not change
such status to a large quantity generator with respect to its operations in or
at the Premises without Landlord’s prior written consent, not to be
unreasonably withheld. Subject to the terms of this Lease, Landlord hereby
consents to Handling by Tenant of (i) the Hazardous Materials in the
quantities identified on Exhibit E attached hereto or 

 

15

 

such other
Hazardous Materials as are reasonably required in the operation of Tenant’s
business for the Permitted Use, and (ii) small quantities of Hazardous
Materials customarily used in the conduct of general office/warehouse activities,
such as copier fluids and cleaning supplies(“Permitted
Hazardous Materials”), 
provided the Permitted Hazardous Materials shall be Handled by Tenant in
compliance with Environmental Requirements. Such consent shall not be deemed a
release or waiver of Tenant’s obligations under this Lease pertaining to
Hazardous Materials Handled by Tenant, including without limitation those
Hazardous Materials identified on Exhibit E.  Except for the Permitted Hazardous Materials,
no Hazardous Materials shall be Handled by Tenant at or about the Premises or
Property without Landlord’s prior written consent, which consent may be
granted, denied, or conditioned upon compliance with Landlord’s requirements,
all in Landlord’s reasonable discretion. 
At the expiration or termination of the Lease, Tenant shall promptly
remove from the Premises and Property all Hazardous Materials Handled by Tenant
at the Premises or the Property, including without limitation, the Permitted
Hazardous Materials. Tenant shall keep and maintain at the Premises in
compliance with Environmental Requirements all records and reports pertaining
to Hazardous Materials Handled by Tenant at the Premises or Property and shall
make same available to Landlord, its environmental consultants, agents and employees
for inspection promptly after request by Landlord. Tenant shall cause its
environmental consultants, agents or employee(s) responsible for
management of  Hazardous Materials
Handled by Tenant) to cooperate with Landlord and its consultants, agents, and
employees regarding all records, reports, licensing, permitting and other
information concerning Hazardous Materials Handled by Tenant. Tenant shall be
responsible and liable for the compliance with all of the provisions of this Section by
all of Tenant’s Representatives and Visitors, and all of Tenant’s obligations
under this Section (including its indemnification obligations under
paragraph (e) below) shall survive the expiration or termination of this
Lease.

 

(c)           Compliance.  Tenant shall at Tenant’s expense promptly
take all actions required by any governmental agency or entity in connection
with or as a result of the Handling by Tenant of Hazardous Materials at or
about the Premises or Property, including inspection and testing, performing
all cleanup, removal and remediation work required with respect to those
Hazardous Materials Handled by Tenant, complying with all closure requirements
and post-closure monitoring, and filing all required reports or plans, and
obtaining and maintaining necessary licensees and permits.  All of the foregoing work and all Handling by
Tenant of all Hazardous Materials shall be performed in a good, safe and
workmanlike manner by consultants qualified and licensed to undertake such work
and in a manner that will not unreasonably interfere with any other tenant’s
quiet enjoyment of the Property or Landlord’s use, operation, leasing and sale
of the Property.  Unless otherwise
required by law, Tenant shall deliver to Landlord prior to delivery to any
governmental agency, or promptly after receipt from any such agency, copies of
all permits, manifests, closure or remedial action plans, notices, and all
other documents relating to the Handling by Tenant of Hazardous Materials at or
about the Premises or Property other than Permitted Hazardous Materials.  If any lien attaches to the Premises or the
Property in connection  with or as a result of the Handling by Tenant
of Hazardous Materials, and Tenant does not cause the same to be released, by
payment, bonding or otherwise, within thirty (30) days after the attachment
thereof, Landlord shall have the right but not the obligation to cause the same
to be released and any sums expended by Landlord (plus Landlord’s
administrative costs) in connection therewith shall be payable by Tenant on
demand.

 

(d)           Landlord’s Rights.  Upon 24 hours advance notice (except in an
emergency), Landlord shall have the right, but not the obligation, to enter the
Premises at any 

 

16

 

reasonable time (i) to
confirm Tenant’s compliance with the provisions of this Section 5.2, and (ii) to
perform Tenant’s obligations under this Section if Tenant has failed to do
so after reasonable notice to Tenant. Tenant shall have the right to have a
representative of Tenant present during such entry. Landlord shall also have
the right to engage qualified Hazardous Materials consultants to inspect the
Premises and review the Handling by Tenant of Hazardous Materials, including
review of all permits, reports, plans, and other documents regarding same.  Tenant shall pay to Landlord on demand the
costs of Landlord’s consultants’ fees and all costs incurred by Landlord in
performing Tenant’s obligations under this Section in the event Tenant has
violated the provisions of this Section 5.2.  Landlord shall use reasonable efforts to
minimize any interference with Tenant’s business caused by Landlord’s entry
into the Premises, but Landlord shall not be responsible for any interference
caused thereby except in the case of Landlord’s negligence or willful
misconduct.

 

(e)           Tenant’s
Indemnification.  Tenant agrees to
indemnify, defend, protect and hold harmless Landlord and its partners or
members and its or their partners, members, directors, officers, shareholders,
employees and agents from all Environmental Losses and all other claims,
actions, losses, damages, liabilities, costs and expenses of every kind,
including reasonable attorneys’, experts’ and consultants’ fees and costs,
incurred at any time and arising from or in connection with the Handling by
Tenant of Hazardous Materials at or about the Property or Tenant’s failure to
comply in full with all Environmental Requirements with respect to Tenant’s
Handling of Hazardous Materials at or about the Premises. The obligations of
the Tenant under this subsection (e) shall survive the expiration or
termination of this Lease. It is the intent of Landlord and Tenant that Tenant
shall have no liability or responsibility for damage or injury to human health,
the environment or natural resources caused by, for abatement and/or clean-up
of, or otherwise with respect to, Hazardous Materials by virtue of the
interests of Tenant in any part of the Property created hereby, or as the
result of Tenant exercising any of its rights or remedies with respect thereto
hereunder, unless such Hazardous Materials were Handled by Tenant or Tenant’s
Representatives.

 

(f)            Landlord
Obligations.  Landlord hereby
represents to the best of its actual knowledge, no Hazardous Materials are now
or have ever been located, produced, treated, transported, incorporated,
discharged, emitted, released, deposited or disposed of in, upon, under, over
or from the Premises or Property.  Landlord agrees to indemnify, defend, protect
and hold harmless Tenant and its directors, officers, shareholders, employees
and agents from all claims, actions, losses, damages, liabilities, costs and
expenses of every kind, including reasonable attorneys’, experts’ and
consultants’ fees and costs, incurred at any time as a result of (i) the
Handling by Landlord of Hazardous Materials at or about the Premises, or (ii) Landlord’s
failure to comply in full with all Environmental Requirements imposed upon
Landlord with respect to the Premises, excluding Hazardous Materials Handled by
Tenant, or (iii) breach of the representations and warranties of Landlord
set forth above.  In the event that
Tenant reasonably determines that  any Hazardous
Materials are present on the Premises (other than any Hazardous Materials
Handled by Tenant) and represent a material danger to persons or property on
the Premises, Tenant shall notify Landlord of the same, and Landlord shall be
responsible at its sole expense, to remove, remediate or abate (or cause the
responsible party to remove, remediate or abate) such Hazardous Materials within
a commercially reasonable time after receipt of said written notification from
Tenant. The obligations of the Landlord under this subsection (f) shall
survive the expiration or termination of this Lease.

 

17

 

5.3          Americans With
Disabilities Act.      The parties agree that the liabilities
and obligations of Landlord and Tenant under that certain federal statute
commonly known as the Americans With Disabilities Act as well as the
regulations and accessibility guidelines promulgated thereunder as each of the
foregoing is supplemented or amended from time to time (collectively, the “ADA”) shall be apportioned as follows:

 

(a)           If any of the Common Areas,
including, but not limited to, exterior and interior routes of ingress and
egress, off-street parking and all rules and regulations applicable to the
Premises, the Building or the Project, fails to comply with the ADA, such
nonconformity shall be promptly made to comply by Landlord.  Landlord shall also cause the manager of the
Building and the Project (the “Manager”) to
comply with the ADA in its operation of the Building and the Project.

 

(b)           From and after the Commencement Date
of the Lease, Tenant covenants and agrees to conduct its operations within the
Premises in compliance with the ADA.  If
any of the Premises fails to comply with the ADA due to Tenant’s specific or
unique use of the Premises, such nonconformity within the Premises shall be
promptly made to comply by Tenant.  In
the event that Tenant elects to undertake any alterations to, for or within the
Premises, including initial build-out work, Tenant agrees to cause such
alterations to be performed in compliance with the ADA.  Landlord shall deliver the Tenant Improvements
to be constructed in the Premises by Landlord to Tenant in compliance with the
ADA; provided, however, Tenant shall not be responsible for any outstanding
ADA compliance violations that are the responsibility of Landlord that may be
triggered by Tenant’s specific use or occupancy of the Premises or Alterations
made by Tenant to the Premises.

 

6.             TENANT IMPROVEMENTS &
ALTERATIONS.

 

6.1          Landlord shall perform its obligations
with respect to design and construction of any Tenant Improvements (defined in Exhibit B)
to be constructed and installed in the Premises, as provided in the
Construction Rider.  Except for any work
to be constructed by Tenant as provided in the Construction Rider, Tenant shall
not make any alterations, improvements or changes to the Premises, including
installation of any security system or telephone or data communication wiring,
(“Alterations”), without Landlord’s prior
written consent, which consent shall not be unreasonably withheld, conditioned
or delayed, except for Alterations to structural portions, footing, or foundations,
or utility systems serving other tenants of the Building, where Landlord may
withhold its consent in its sole discretion. 
Any such Alterations shall be completed by Tenant at Tenant’s sole cost
and expense:  (i) with due
diligence, in a good and workmanlike manner, using new materials; (ii) in
compliance with plans and specifications approved by Landlord; (iii) in
compliance with the construction rules and regulations promulgated by
Landlord from time to time; (iv) in accordance with all applicable Laws
(including all work, whether structural or non-structural, inside or outside
the Premises, required to comply fully with all applicable Laws and
necessitated by Tenant’s work; provided, however, Tenant shall not be
responsible for any outstanding code compliance violations that are the
responsibility of Landlord that may be triggered by Alterations made by Tenant
to the Premises); and (v) subject to all reasonable conditions which
Landlord may impose for Tenant to:  (i) provide
evidence of financial ability to pay costs of construction (e.g. loan
commitment or bank statement), letter of credit, or payment or performance
bonds to the extent the estimated cost of the Alterations equals or exceeds
$100,000; (ii) provide evidence of insurance (from Tenant and Tenant’s
contractors, subcontractors or design

 

18

 

professionals); (iii) use
only contractors and subcontractors who qualify as an Approved Contractor
(defined in Section 6.6 herein) if required by the terms of Section 6.6;
and (iv) remove all or part of the Alterations prior to or upon expiration
or termination of the Term, provided written notice of requirement to remove
such Alterations shall be given at the time Landlord consents to such
Alterations, except Cosmetic Alterations and the Tenant Improvements shall not
be required to be removed by Tenant at the end of the Term.  Tenant shall have the right, without Landlord’s
consent, to make non-structural alterations to the Premises that do not alter
the Building Systems, such as painting, wall, floor or window coverings, or
installation or rearrangement of cabinets or other modular office dividers that
do not affect the Building structure (“Cosmetic Alterations”).  Tenant shall give Landlord not less than ten (10) days
prior written notice of any such Cosmetic Alterations and shall otherwise
comply with the terms and provisions of this Lease. If any adjustment to any of
the Building Systems is required in connection with or as a result of Tenant’s
work, such work shall be performed at Tenant’s expense by contractors approved
by Landlord.  If any work outside the
Premises, or any work on or adjustment to any of the Building Systems, is
required in connection with or as a result of Tenant’s work, such work shall be
performed at Tenant’s expense by contractors designated by Landlord.  Landlord’s right to review and approve (or
withhold approval of) Tenant’s plans, drawings, specifications, contractor(s) and
other aspects of construction work proposed by Tenant is intended solely to
protect Landlord, the Property and Landlord’s interests.  No approval or consent by Landlord shall be
deemed or construed to be a representation or warranty by Landlord as to the
adequacy, sufficiency, fitness or suitability thereof or compliance thereof
with applicable Laws or other requirements. 
Except as otherwise provided in Landlord’s consent, all Alterations
shall upon installation become part of the realty and be the property of
Landlord. Notwithstanding anything in this Lease to the contrary, Tenant will
be obligated to remove Tenant’s identification signage, cabling, and Tenant’s
Trade Fixtures and personal property on or before the expiration or earlier
termination of the Term of this Lease, and repair and restore any damage to the
Premises, Building or Property arising because of installation or removal of
the foregoing items.

 

6.2                               Before making any Alterations, except Cosmetic Alterations, Tenant
shall submit to Landlord for Landlord’s prior approval reasonably detailed
final plans and specifications prepared by a licensed architect or engineer, a
copy of the construction contract, including the name of the contractor and all
subcontractors proposed by Tenant to make the Alterations and a copy of the
contractor’s license.  Tenant shall
reimburse Landlord upon demand for any expenses incurred by Landlord in
connection with any Alterations made by Tenant, including reasonable fees
charged by Landlord’s contractors or consultants for construction oversight or
review of the plans and specifications prepared by Tenant and to update the
existing as-built plans and specifications of the Building to reflect the
Alterations, provided, however, the aggregate of such costs shall not exceed
two percent (2%) of the cost of design and construction of the
Alterations.  Tenant shall obtain all
applicable permits, authorizations and governmental approvals and deliver
copies of the same to Landlord before commencement of any Alterations.

 

6.3                               Tenant shall keep the Premises and the Property free and clear of all
liens arising out of any work performed, materials furnished or obligations
incurred by Tenant.  If any such lien
attaches to the Premises or the Property, and Tenant does not cause the same to
be released by payment, bonding or otherwise within thirty (30) days after the
attachment thereof, Landlord shall have the right but not the obligation to
cause the same to be released by payment of the lien or otherwise, and any sums
expended by Landlord (plus Landlord’s administrative costs) in connection
therewith shall be payable by Tenant on demand with interest thereon from the
date of 

 

19

 

expenditure by
Landlord at the Interest Rate (as defined in Section 16.2 - Interest).  Tenant
shall give Landlord at least ten (10) days’ notice prior to the
commencement of any Alterations except in an emergency and cooperate with
Landlord in posting and maintaining notices of non-responsibility in connection
therewith.

 

6.4                               Subject to the provisions of Section 5 - Use and
Compliance with Laws and the foregoing provisions of this Section,
Tenant may install and maintain furnishings, equipment, movable partitions,
business equipment and other trade fixtures (“Trade
Fixtures”) in the Premises, provided that the Trade Fixtures do not
become an integral part of the Premises or the Building.  Tenant shall promptly repair any damage to
the Premises or the Building caused by any installation or removal of such
Trade Fixtures.

 

6.5                               All signs, notices and graphics of every kind or character, reasonably
visible in or from public view or the Common Areas or the exterior of the
Premises, shall relate to the identity of the Tenant or its Permitted Use in
the Premises, and shall be subject to Landlord’s prior written approval, which
Landlord shall have the right to withhold in its reasonable discretion.  Tenant shall not place or maintain any
banners whatsoever or any window décor in or on any exterior window or widow
fronting upon any Common Areas or service area or upon any truck doors or
service doors without Landlord’s prior written approval which Landlord shall
have the right to grant or withhold in its reasonable discretion.  Any installation of signs or graphics on or
about the Premises and Project shall be subject to any applicable governmental
laws, ordinances, regulations and to any other reasonable requirements imposed
by Landlord with respect to signage reasonably visible outside the Premises.
There is no monument signage available for Tenant. Tenant shall remove all such
signs and graphics at the termination of this Lease.  Such installations and removals shall be made
in such manner as to avoid injury to or defacement of the Premises, Building or
Project and any other improvements contained therein, and Tenant shall repair
any injury or defacement including, without limitation, discoloration caused by
such installation or removal, provided Tenant shall be permitted to
professionally patch damaged areas (e.g. holes) and paint such discoloration to
match the building exterior as reasonably possible without being required to
restore more than the discolored area.

 

6.6                               Prior to commencing any Work (defined in
this Section 6.6), Tenant shall furnish to Landlord the name and address
of all Contractors (defined in this Section 6.6) who will be, or are
reasonably expected to be, performing any of the Work. All such Contractors
shall be licensed by the City of Minneapolis, Minnesota and approved by
Landlord, which approval shall not be unreasonably withheld, and the business
manager of the applicable local AFL-CIO Building and Construction Trades
Council (the “BCTC”) (when approved by Landlord
and the BCTC, such Contractor shall be an “Approved Contractor”).  Prior to
commencing the Work, Tenant shall also furnish to Landlord for approval, not to
be unreasonably withheld, a copy of the construction contract(s), including all
amendments, change orders and modifications thereof, for the construction and
installation of the Work (“Construction Contract”).  Tenant agrees to comply with the following
Quality Contractor Policy and shall cause the Construction Contract to contain
provisions requiring the Contractor (and all of its subcontractors) to comply
with the following Quality Contractor Policy when performing its work and when
selecting any subcontractors to perform the work:

 

All contractors and subcontractors at any tier performing any
construction, repair, refurbishment or restoration (collectively, “Work”), including, without limitation, tenant 

 

20

 

improvements,
build-out, alterations, additions, improvements, renovations, repairs,
remodeling, painting and installations of fixtures, mechanical, electrical,
plumbing, data, security, telecommunication, low voltage or elevator equipment
or systems or other equipment, or with respect to any other construction work
in, on, or to the Premises or the Project (including any such work performed by
any person who contracts to provide services to any portion of the Premises or
Project, such as cable, DSL, communications, telecommunications or similar
services, but excluding work performed on behalf of and paid for by Tenant for
installation of furniture, movable trade fixtures, and equipment of
Tenant),  (collectively, “Contractors”)
shall: (i) be bound by and signatory to a collective bargaining agreement
with a labor organization (a) whose jurisdiction covers the type of work
to be performed on the Project, and (b) who is an “Approved Building
Trades Department Contractor or Subcontractor;” and (ii) observe area
standards for wages and other terms and conditions of employment, including fringe
benefits.  For purposes hereof, an “Approved Building Trades Department Contractor or Subcontractor”
is a contractor or subcontractor who is currently affiliated with the Building
and Construction Trades Department of the AFL-CIO (the “BCTD”)
or, if no such BCTD-affiliated contractor or subcontractor is available for a
particular trade (e.g., carpentry work), a contractor or subcontractor which is
affiliated with a national trade union which was formerly affiliated with the
BCTD and which recognizes (and will recognize and respect, for its work on the
Project), the jurisdictional limitations established by the local BCTD.  Upon the request
of Landlord, each such contractor and subcontractor shall provide written
certification that all work performed by such contractor or subcontractor was
performed in compliance with this policy.

 

Contractors may not engage any subcontractor that does not satisfy the
provisions of clauses (i) and (ii) above. If at any time Contractor
or subcontractor does not satisfy clauses (i) and (ii) above, such
Contractor and subcontractor shall not be an Approved Contractor.

 

7.                                      MAINTENANCE AND REPAIRS.

 

7.1                               By taking possession of the Premises, subject to latent defects in the
Tenant Improvements not discoverable by Tenant upon reasonable inspection and
Landlord’s obligations to perform the Tenant Improvements described in Exhibit B
and the other terms and conditions of this Lease, Tenant agrees that the
Premises are then in a good and tenantable condition.  During the Term, Tenant at Tenant’s expense
but under the direction of Landlord, shall keep the Premises, in a clean, safe
and orderly condition, including without limitation, providing its own interior
janitorial services (including without limitation, changing and disposal of light
bulbs, interior window washing, janitorial supplies and equipment and garbage
removal and disposal), and shall repair and maintain the Premises, in a first
class condition including, but not limited to, repair and replacement of plate
glass in all windows, doors and non-structural interior areas of the Premises,
interior and exterior doors, special office entries, floor covering, Building
Systems exclusively serving the Premises (including without limitation,
heating, ventilating and air conditioning  systems and hot water heaters), truck doors,
dock bumpers, dock plates and levelers, interior ceilings, plumbing and
electrical work and fixtures, skylights and ventilation drops for equipment of
Tenant.  Tenant shall at Tenant’s expense
also perform necessary pest extermination and regular removal of trash and
debris.  Tenant shall, at its own
expense, enter into a regularly scheduled preventive maintenance service
contract with a maintenance contractor for servicing all hot water, heating and
air conditioning systems and equipment exclusively serving the Premises.  The maintenance contractor and the contract
must be reasonably approved by Landlord. 
The service contract must include all services suggested by the
equipment manufacturer within the 

 

21

 

operation/maintenance
manual and must become effective and a copy thereof delivered to Landlord
within thirty (30) days of the Commencement Date.  Tenant shall not damage any demising wall or
disturb the integrity and support provided by any demising wall and shall, at
its sole expense, immediately repair any damage to any demising wall caused by
Tenant or its employees, agents or invitees, reasonable wear and tear excepted.

 

Notwithstanding
the foregoing to the contrary, from the Commencement Date through December 31,
2010, Landlord shall be responsible for performing, at its sole expense, all
necessary repairs (but not preventive maintenance) to the HVAC units serving
the Premises. Commencing January 1, 2011 and during the remaining Initial
Term of this Lease, Landlord shall be responsible for performing all necessary
repairs to the HVAC units serving the Premises, provided, however, Tenant shall
reimburse Landlord for fifty percent (50%) of the cost of such repairs within
thirty (30) days after written demand for payment by Landlord. Also, if at any
time during the Initial Term of the Lease any of the HVAC units serving the
Premises need to be replaced, in Landlord’s reasonable determination, then
Landlord shall perform such replacement, provided, however, Tenant shall
reimburse Landlord for Tenant’s HVAC Share (as defined herein) of the cost of
such replacements within thirty (30) days after Landlord delivers written
demand for payment to Tenant. “Tenant’s HVAC Share” shall be computed by
multiplying the costs of replacement of the HVAC unit(s) serving the
Premises incurred by Landlord by a fraction, the numerator of which is the
number of months remaining in the Initial Term of the Lease and the denominator
of which is one hundred eighty four (184). Landlord shall have no obligation to
inspect, service or make any repairs or replacements of the HVAC units serving
the Premises until Tenant notifies Landlord in writing of the need for repair
or replacement. Also, the foregoing provision shall not limit Tenant’s
responsibility and obligation to perform preventive maintenance on the HVAC
units serving the Premises and carry a preventive maintenance service contract
for said HVAC units in accordance with the immediately preceding paragraph.

 

7.2                               Landlord shall maintain or cause to be maintained in reasonably good
order, condition and repair, the structural portions of the Building, the roof,
foundations, floors and exterior window systems (but not plate glass) and
exterior walls of the Building, Building Systems (other than those Building
Systems exclusively serving the Premises), and the Common Areas of the Project.
All costs incurred by Landlord under this Section 7.2, except repairs and
replacements of structural portions of the Building including slab and
foundation and except roof replacements and tear out and replacement of the
entire parking lot for the Building, shall be reimbursed to Landlord as part of
Operating Costs (unless excluded therefore as set forth in the Lease);
provided, however, that Tenant shall pay the cost of repairs for any damage to
the Premises or the Property by any act or omission of Tenant or Tenant’s
Representatives or Visitors, to the extent (if any) not covered by the property
insurance required to be maintained by Landlord pursuant to the Lease.  Landlord shall be under no obligation to
inspect the Premises.  Tenant shall
promptly report in writing to Landlord any defective condition known to Tenant
which Landlord is required to repair.

 

7.3                               Landlord hereby reserves the right, at any time and from time to time,
without liability to Tenant, and without constituting an eviction, constructive
or otherwise, or entitling Tenant to any abatement of rent or to terminate this
Lease or otherwise releasing Tenant from any of Tenant’s obligations under this
Lease, except as otherwise set forth in this Lease:

 

22

 

(a)                                 To make alterations, additions, repairs, improvements to or in or to
decrease the size of area of, all or any part of the Building, the fixtures and
equipment therein, and the Building Systems;

 

(b)                                 To change the Building’s name or street address;

 

(c)                                  To install and maintain any and all signs on the exterior and interior
of the Building; and

 

(d)                                 If any governmental authority promulgates or revises any Law or imposes
mandatory controls or directives on Landlord or the Property relating to the
use or conservation of energy or utilities or the reduction of automobile or
other emissions or reduction or management of traffic or parking on the
Property (collectively “Controls”), to
comply with such Controls, whether mandatory or voluntary, or make any
alterations to the Property related thereto, provided such voluntary controls
do not materially interfere with Tenant’s permitted use and occupancy of the
Premises or materially inconvenience Tenant.

 

(e)                                  With respect to any provision of this Lease which entitles or requires
Landlord to make improvements, alterations or repairs to either the Premises,
the Building or the Common Areas, or to enter the Premises, Landlord agrees
that such entry and/or work, except to the extent required to comply with
applicable Laws, shall not (i) materially damage the appearance or reduce
the floor area of the Premises, (ii) materially affect Tenant’s layout
(including access to the Premises), or (iii) materially interfere with
Tenant’s use and enjoyment of the Premises. 
Furthermore, any pipes or conduits that may be installed by Landlord in
the Premises shall be installed above the ceiling, below the floor, or
concealed or “boxed in” in a manner consistent with Tenant’s decor.  All such entry and/or work shall be performed
by Landlord in such a way as to minimize unreasonable disruption to Tenant’s
business, and any damage caused to the Premises (including tenant’s decor)
shall be repaired by Landlord at its expense. In the event (i) such entry
and/or work results in Tenant not being able to use the Premises for its then
current business operations which are permitted under the terms of this Lease
for a period in excess of five (5) consecutive business days, (ii) thereafter,
Tenant notifies Landlord in writing of the occurrence of the events described
above in Section 7(e)(i), which notice shall include both a depiction and
reasonable estimate of the Rentable Area of the area of the Premises affected (“Tenant’s
Interference Notice”), and (iii) the occurrence of the events described in
Section 7(e)(i) continues for an additional three (3) business
days after Landlord’s receipt of Tenant’s Interference Notice, then Monthly
Base Rent shall be abated in proportion to the area of the Premises so affected
beginning on the fourth (4th) business day after Landlord’s receipt of Tenant’s Interference
Notice, until the earlier of (i) completion of such entry and/or work by
Landlord, or (ii) Tenant begins using the area of the Premises affected by
Landlord’s entry and/or work.

 

8.                                      TAXES.  Tenant shall pay all
rental, excise, sales or transaction privilege taxes arising out of this Lease
(excluding, however, state and federal personal or corporate income taxes
measured by the income of Landlord from all sources) imposed by any taxing
authority upon Landlord or upon Landlord’s receipt of any rent payable by
Tenant pursuant to the terms of this Lease (“Rental Tax”).  Tenant shall pay any Rental Tax to Landlord
in addition to and at the same time as Base Rent is payable under this Lease.

 

23

 

9.                                      UTILITIES AND SERVICES.

 

9.1                               Utility Services.  Tenant shall pay for all water, gas, heat,
air conditioning, light,  power, telephone, sewer, sprinkler charges
and other utilities and services used on or from the Premises, together with
any taxes, penalties, surcharges or the like pertaining thereto, and maintenance
charges for utilities and shall furnish all electric lamps and ballasts. Gas
and electricity service to the Premises shall be separately metered by Landlord
as part of the Tenant Improvements (defined in Exhibit B), but
shall be paid by Landlord at its sole cost. 
Water and sewer service is not separately metered but may be submetered
at Landlord’s option, provided that cost of installation of the submeter shall
be at Landlord’s sole cost and expense. Consumption charges for any utility
services that are separately metered shall be paid by Tenant directly to the
utility provider when due. Consumption charges for any utility services that
are submetered to the Premises shall be reimbursed by Tenant to Landlord within
thirty (30) days after written request for payment by Landlord, which
consumption charges shall be the actual cost paid by Landlord to the utility
provider without mark-up or additional fees.

 

9.2                               Interruption of Services.  In the event of an interruption in or failure
or inability to provide any services or utilities to the Premises or Building
for any reason (a “Service Failure”),
such Service Failure shall not, regardless of its duration, impose upon
Landlord any liability whatsoever, constitute an eviction of Tenant,
constructive or otherwise, entitle Tenant to an abatement of rent or to
terminate this Lease or otherwise release Tenant from any of Tenant’s
obligations under this Lease. 
Notwithstanding anything to the contrary contained herein, in the event
of any Service Failure caused by Landlord or its employees, agents or
contractors that materially interferes with Tenant’s use and enjoyment of the
Premises, Tenant shall have the right to abate Rent in proportion to the area
of the Premises rendered untenantable by said interruption if said interruption
continues for at least five (5) business days, commencing on the fourth (6th) day.   The foregoing abatement shall be applied
consecutively (not concurrently) with any other rent abatement or credit that
may be then-applicable during such period.

 

10.                               EXCULPATION AND INDEMNIFICATION.

 

10.1                        Landlord’s Indemnification of Tenant.  Subject to Section 11.3
and Section 28, Landlord shall indemnify, protect, defend and hold Tenant
harmless from and against any claims, actions, liabilities, damages, costs or
expenses, including reasonable attorneys’ fees and costs incurred in defending
against the same (“Claims”)
asserted by any third party against Tenant for loss, injury or damage, to the
extent such loss, injury or damage is caused by the willful misconduct or
negligent acts or omissions of Landlord or its authorized representatives, or
Landlord’s continuing breach or default of this Lease after applicable notice
of breach or default and expiration of applicable cure period, excepting only
Claims to the extent they are caused by the willful misconduct or negligent
acts or omissions of Tenant or its agents, representatives or contractors.

 

10.2                        Tenant’s Indemnification of Landlord.  Subject to Section 11.3,
Tenant shall indemnify, protect, defend and hold Landlord and Landlord’s
Representatives and its mortgagee and management agent harmless from and
against Claims asserted by a third party against Landlord or Landlord’s
Representatives arising from (a) the negligent acts or omissions of Tenant
or Tenant’s Representatives or Visitors in or about the Property, or (b) any
construction or other work undertaken by Tenant on the Premises (including any
design defects), or (c) any continuing 

 

24

 

breach or default
of its obligations under this Lease by Tenant after applicable notice of breach
or default and expiration of applicable cure period , or (d) any loss,
injury or damage, howsoever and by whomsoever caused, to any person or
property, occurring in or about the Premises during the Term, excepting Claims
caused by the willful misconduct or negligent acts or omissions of Landlord or
its agents, representatives, or contractors.

 

10.3                        Damage to Tenant’s Property.  Landlord shall not be liable
to Tenant for any loss, injury or other damage to Tenant’s property in or about
the Premises or the Property from any cause (including defects in the Property
or in any equipment in the Property; fire, explosion or other casualty;
bursting, rupture, leakage or overflow of any plumbing or other pipes or lines,
sprinklers, tanks, drains, drinking fountains or washstands in, above, or about
the Premises or the Property; or acts of other tenants in the Property) unless
caused by Landlord’s negligence (unless waived pursuant to Section 11.3)
or willful misconduct.  Tenant hereby
waives all claims against Landlord for any such loss, injury or damage and the
cost and expense of defending against claims relating thereto, including any
loss, injury or damage caused by Landlord’s negligence (active or passive), but
excluding Landlord’s willful misconduct.

 

10.4                        Survival.  The obligations of the parties under this Section 10
shall survive the expiration or termination of this Lease.

 

11.                               INSURANCE.

 

11.1                        Tenant’s Insurance.

 

(a)                                 Liability Insurance.  Tenant shall maintain in full force
throughout the Term, commercial general liability insurance providing coverage
on an occurrence form basis with limits of not less than Three Million Dollars
($3,000,000.00) each occurrence for bodily injury and property damage combined,
Three Million Dollars ($3,000,000.00) annual general aggregate, and Three
Million Dollars ($3,000,000.00) products and completed operations annual
aggregate.  Tenant’s liability insurance
policy or policies shall:  (i) include
premises and operations liability coverage, products and completed operations
liability coverage, broad form property damage coverage including completed
operations, blanket contractual liability coverage including, to the maximum
extent possible, coverage for the indemnification obligations of Tenant under
this Lease, and personal and advertising injury coverage; (ii) provide
that the insurance company has the duty to defend all insureds under the
policy; (iii) provide that defense costs are paid in addition to and do
not deplete any of the policy limits; (iv) cover liabilities arising out
of or incurred in connection with Tenant’s use or occupancy of the Premises or
the Property; (v) extend coverage to cover liability for the actions of
Tenant’s Representatives and Visitors; and (vi) designate separate limits
for the Property.  Each policy of
liability insurance required by this Section shall:  (i) contain a cross liability
endorsement or separation of insureds clause; (ii) provide that any waiver
of subrogation rights or release prior to a loss does not void coverage; (iii) provide
that it is primary to  and not contributing with, any policy of
insurance carried by Landlord covering the same loss; (iv) provide that
any failure to comply with the reporting provisions shall not affect coverage
provided to Landlord, its partners, property managers and Mortgagees; and (v) name
Landlord, its partners, the Property Manager identified in the Basic Lease
Information (the “Property Manager”),
and such other parties in interest (e.g. property manager or mortgagee) as
Landlord may from time to time reasonably designate to Tenant in writing, as
additional insureds.  Such additional
insureds shall be provided at least the same extent of coverage as is provided
to Tenant under such policies.

 

25

 

(b)                                 Property Insurance.  Tenant shall at all times maintain in effect
with respect to any Alterations and Tenant’s Trade Fixtures and personal
property, commercial property insurance providing coverage, on an “all risk” or
“special form” basis, in an amount equal to at least 90% of the full
replacement cost of the covered property. 
Tenant may carry such insurance under a blanket policy, provided that
such policy provides coverage equivalent to a separate policy.  During the Term, the proceeds from any such
policies of insurance shall be used for the repair or replacement of the
Alterations, Trade Fixtures and personal property so insured.  Landlord shall be provided coverage under such
insurance to the extent of its insurable interest and, if requested by
Landlord, both Landlord and Tenant shall sign all documents reasonably
necessary or proper in connection with the settlement of any claim or loss
under such insurance.  Landlord will have
no obligation to carry insurance on any Alterations or on Tenant’s Trade
Fixtures or personal property.

 

(c)                                  Requirements For All Policies.  Each policy of insurance
required under this Section 11.1 shall: 
(i) be in a form, and written by an insurer, reasonably acceptable
to Landlord, (ii) be maintained at Tenant’s sole cost and expense, and (iii) require
at least thirty (30) days’ written notice to Landlord prior to any
cancellation, nonrenewal or modification of insurance coverage.  Insurance companies issuing such policies
shall have rating classifications of “A” or better and financial size category
ratings of “VII” or better according to the latest edition of the A.M.
Best Key Rating Guide.  All insurance
companies issuing such policies shall be admitted carriers licensed to do
business in the state where the Property is located.  Any deductible amount under such insurance
shall not exceed $50,000.  Tenant shall
provide to Landlord, upon request, evidence that the insurance required to be
carried by Tenant pursuant to this Section, including any endorsement effecting
the additional insured status, is in full force and effect and that premiums
therefor have been paid.

 

(d)                                 Updating Coverage.  Tenant shall increase the amounts of
insurance as required by any Mortgagee, and, not more frequently than once
every five (5) years, as recommended by Landlord’s insurance broker, if,
in the opinion of either of them, the amount of insurance then required under
this Lease is not adequate provided such increase in insurance is in a
commercially reasonable amount in keeping with the standards of other
office/warehouse buildings in the Twin Cities area.  Any limits set forth in this Lease on the
amount or type of coverage required by Tenant’s insurance shall not limit the
liability of Tenant under this Lease.

 

(e)                                  Certificates of Insurance.  Prior to occupancy of the
Premises by Tenant, and not less than thirty (30) days prior to expiration of
any policy thereafter, Tenant shall furnish to Landlord a certificate of
insurance reflecting that the insurance required by this Section is in
force, accompanied by an endorsement showing the required additional insureds
satisfactory to Landlord in substance and form. 
Notwithstanding the requirements of this paragraph, Tenant shall at  Landlord’s
request provide to Landlord a certified copy of each insurance policy required
to be in force at any time pursuant to the requirements of this Lease or its
Exhibits.

 

11.2                        Landlord’s Insurance.  During the Term, Landlord shall maintain in
effect insurance on the Building with responsible insurers, on an “all risk” or
“special form” basis, insuring the Building and the Tenant Improvements in an
amount equal to at least 90% of the replacement cost thereof, excluding land,
foundations, footings and underground installations.  Landlord shall maintain Commercial General
Liability Insurance with limits of not less than $3,000,000.00, 

 

26

 

which may be
comprised of primary and excess liability coverage.  Landlord may, but shall not be obligated to,
carry insurance against additional perils and/or in greater amounts as is
commercially reasonable and in keeping with the standards of other
office/warehouse buildings in the Twin Cities area or as may be required by
Landlord’s mortgagee.

 

11.3                        Mutual Waiver of Right of Recovery & Waiver of Subrogation.  Landlord and Tenant each
hereby waive any right of recovery against each other and the partners,
managers, members, shareholders, officers, directors, employees, agents and
authorized representatives of each other for any loss or damage that is covered
by any policy of property insurance maintained by either party (or required by
this Lease to be maintained) with respect to the Premises, Property or Project
or any Trade Fixtures or any operation in the Premises, regardless of cause,
including negligence (active or passive) of the party benefiting from the
waiver.  If any such policy of insurance
relating to this Lease or to the Premises or the Property does not permit the
foregoing waiver or if the coverage under any such policy would be invalidated
as a result of such waiver, the party maintaining such policy shall obtain from
the insurer under such policy a waiver of all right of recovery by way of subrogation
against either party in connection with any claim, loss or damage covered by
such policy.

 

12.                               DAMAGE OR DESTRUCTION.

 

12.1                        Landlord’s Duty to Repair.

 

(a)                                 If all or a substantial part of the Premises are rendered untenantable
or inaccessible by damage to all or any part of the Property from fire or other
casualty then, unless either party is entitled to and elects to terminate this
Lease pursuant to Section 12.2 - Landlord’s Right to
Terminate and Section 12.3 - Tenant’s
Right to Terminate, Landlord shall, at its expense, repair and
restore the Premises and/or the Property, as the case may be, to substantially
their former condition to the extent permitted by then applicable Laws;
provided, however, that in no event shall Landlord have any obligation for
repair or restoration beyond the extent of insurance proceeds received by
Landlord for such repair or restoration, or for any of Tenant’s personal
property, Trade Fixtures or Alterations.

 

(b)                                 If Landlord is required or elects to repair damage to the Premises
and/or the Property, this Lease shall continue in effect, but Tenant’s Base
Rent and Additional Rent shall be abated with regard to any portion of the
Premises that Tenant is prevented from using by reason of such damage or its
repair from the date of the casualty until substantial completion of Landlord’s
repair of the affected portion of the Premises as required under this
Lease.  In no event shall Landlord be
liable to Tenant by reason of any injury to or interference with Tenant’s
business or property arising from fire or other casualty or by reason of any
repairs to any part of the Property necessitated by such casualty.

 

12.2                        Right to Terminate.  Either Landlord or Tenant may elect to
terminate this Lease following damage by fire or other casualty under the
following circumstances:

 

(a)                                 If, in the reasonable judgment of Landlord, the Premises and the
Property cannot be substantially repaired and restored under applicable Laws
within two hundred ten (210) days from the date of the casualty; and

 

27

 

(b)                                 If the fire or other casualty occurs during the last year of the Term,
except to the extent the fire or other casualty occurs during the last year of
the Initial Term and Tenant has exercised its Extension Option.

 

If any of the
circumstances described in subparagraphs (a) or (b) of this Section 12.2
occur or arise, Landlord shall give Tenant notice within sixty (60) days after
the date of the casualty, specifying whether Landlord elects to terminate this
Lease as provided above and, if not, Landlord’s estimate of the time required
to complete Landlord’s repair obligations under this Lease.

 

12.3                        Tenant’s Right to Terminate.  In addition to Section 12.3
above, if Landlord’s estimated time for completion of repairs or restoration
provided to Tenant exceeds two hundred ten (210) days, and if neither party
elects to terminate this Lease as permitted under this Section 12, then if
Landlord does not complete the repairs or restoration to substantially their former
condition to the extent permitted by applicable Laws within thirty (30) days
after the estimated time for completion provided to Tenant, Tenant may elect to
terminate this Lease by written notice to Landlord effective not less than
thirty (30) days after the date of such Tenant’s notice except that if Landlord
completes such repairs or restoration before the effective date of such
termination, such termination shall be deemed a nullity.

 

12.4                        Landlord’s Right to Terminate.  In addition to Section 12.3
above, (i) if the Building is damaged or destroyed to the extent that, in
the reasonable judgment of Landlord, the cost to repair and restore the
Building would exceed fifty percent (50%) of the full replacement cost of the
Building, or (ii) if, in the reasonable judgment of Landlord, adequate
proceeds are not, for any reason, made available to Landlord from Landlord’s
insurance policies (and/or from Landlord’s funds made available for such
purpose, at Landlord’s sole option) to make the required repairs; then Landlord
shall have the right to terminate this Lease by written notice to Tenant within
sixty (60) days after the date of the casualty.

 

13.                               CONDEMNATION.

 

13.1                        Definitions.

 

(a)                                 “Award” shall mean all compensation,
sums, or anything of value awarded, paid or received on a total or partial
Condemnation.

 

(b)                                 “Condemnation” shall mean (i) a
permanent taking (or a temporary taking for a period extending beyond the end
of the Term) pursuant to the exercise of the power of condemnation or eminent
domain by any public or quasi-public authority, private corporation or
individual having such power (“Condemnor”),
whether by legal proceedings or otherwise, or (ii) a  voluntary sale
or transfer by Landlord to any such authority, either under threat of
condemnation or while legal proceedings for condemnation are pending.

 

(c)                                  “Date of Condemnation” shall mean the
earlier of the date that title to the property taken is vested in the Condemnor
or the date the Condemnor has the right to possession of the property being
condemned.

 

28

 

13.2                        Effect on Lease.

 

(a)                                 If the Premises are totally taken by Condemnation, this Lease shall
terminate as of the Date of Condemnation. 
If a portion but not all of the Premises is taken by Condemnation, this
Lease shall remain in effect; provided, however, that if the portion of the
Premises remaining after the Condemnation will be unsuitable for Tenant’s
continued use, then upon notice to Landlord within thirty (30) days after
Landlord notifies Tenant of the Condemnation, Tenant may terminate this Lease
effective as of the Date of Condemnation.

 

(b)                                 If twenty-five percent (25%) or more of the Property or of the parcel(s) of
land on which the Building is situated or of the Parking Facility or of the
floor area in the Building is taken by Condemnation, or if as a result of any
Condemnation the Building is no longer reasonably suitable for the Permitted
Use or any other permitted use of any other tenant of the Project, whether or
not any portion of the Premises is taken, Landlord may elect to terminate this Lease,
effective as of the Date of Condemnation, by notice to Tenant within thirty
(30) days after the Date of Condemnation.

 

(c)                                  If all or a portion of the Premises is temporarily taken by a Condemnor
for a period not extending beyond the end of the Term, this Lease shall remain
in full force and effect.

 

13.3                        Restoration.  If this Lease is not terminated as provided
in Section 13.2 - Effect on Lease,
Landlord, at its expense, shall diligently proceed to repair and restore the
Premises to substantially its former condition (to the extent permitted by then
applicable Laws) and/or repair and restore the Building to an architecturally
complete building in as close a condition as possible to the condition of the
Building existing on the date of taking of possession; provided, however, that
Landlord’s obligations to so repair and restore shall be limited to the amount
of any Award received by Landlord and not required to be paid to any Mortgagee
(as defined in Section 20.2 below). 
In no event shall Landlord have any obligation to repair or replace any
improvements in the Premises beyond the amount of any Award received by
Landlord for such repair or to repair or replace any of Tenant’s personal
property, Trade Fixtures, or Alterations.

 

13.4                        Abatement and Reduction of Rent.  If any portion of the Premises
is taken in a Condemnation or is rendered permanently untenantable by repairs
necessitated by the Condemnation, and this Lease is not terminated, the Base
Rent and Additional Rent payable under this Lease shall be proportionally
reduced as of the Date of Condemnation based upon the percentage of rentable
square feet in the Premises so taken or rendered permanently untenantable.  In addition, if this Lease remains in effect
following a Condemnation and Landlord proceeds to repair and restore the
Premises, the Base Rent and Additional Rent payable under this Lease shall be
abated during the period of such repair or restoration to the extent such
repairs prevent Tenant’s use of the Premises.

 

13.5                        Awards.  Any Award made shall be paid to Landlord, and
Tenant hereby assigns to Landlord, and waives all interest in or claim to, any
such Award, including any claim for the value of the unexpired Term; provided,
however, that Tenant shall be entitled to receive, or to prosecute a separate
claim for, an Award for a temporary taking of the Premises or a portion thereof
by a Condemnor where this Lease is not terminated (to the extent such Award
relates to the unexpired Term), or an Award or portion thereof separately
designated for relocation expenses or the 

 

29

 

interruption of or
damage to Tenant’s business or as compensation for Tenant’s personal property,
Trade Fixtures or Alterations or other claim permitted by law.

 

13.6                        Failure to Complete Restoration.  In addition to Section 13.2(a) above,
after a taking adversely affecting the Premises and if neither party elects to
terminate this Lease as permitted under this Section, and if Landlord is
obligated to restore the Premises or if Landlord elects to restore the
Premises, and the Premises are not restored to substantially their former
condition to the extent permitted by applicable Laws within the longer of two
hundred ten (210) days after the date of taking of possession or 30 days after
the Landlord’s estimated time for completion provided to Tenant, then, Tenant
shall have the right, exercisable by written notice to Landlord given on or
before the thirtieth (30th) day after the expiration of the time period set
forth herein, to terminate this Lease effective not less than thirty (30) days
after the date of such Tenant’s notice except that if Landlord completes such
restoration before the effective date of such termination, such termination
shall be deemed a nullity.

 

14.                               ASSIGNMENT AND SUBLETTING.

 

14.1                        Landlord’s Consent Required.  Tenant shall not assign this
Lease or any interest therein, or sublet or license or permit the use or
occupancy of the Premises or any part thereof by or for the benefit of anyone
other than Tenant, or in any other manner transfer all or any part of Tenant’s
interest under this Lease (each and all a “Transfer”),
without the prior written consent of Landlord, which consent (subject to the
other provisions of this Section 14) shall not be unreasonably withheld,
conditioned or delayed.  It is
acknowledged that so long as Tenant is a publicly traded business entity, any
direct or indirect transfer of the stock of the entity (whether in a single
transaction or in the aggregate through more than one transaction) shall not be
deemed a Transfer.  Notwithstanding the
foregoing to the contrary, no consent of Landlord shall be required as a
condition of Tenant’s right to assign or sublet this Lease to an affiliate of
Tenant. An “affiliate of Tenant” means an entity controlling, controlled by or
under common control with Tenant, or a parent or subsidiary of Tenant, or any
entity that is Tenant’s successor by merger or that acquires all or
substantially all the stock or assets of Tenant. The term “control” or words of
similar meaning in the preceding sentence means the power to direct the
management of the company. Notwithstanding any provision in this Lease to the
contrary, Tenant shall not mortgage, pledge, hypothecate or otherwise encumber
this Lease or all or any part of Tenant’s interest under this Lease.

 

14.2                        Reasonable Consent.

 

(a)                                 Prior to any proposed Transfer, Tenant shall submit in writing to
Landlord (i) the name and legal composition of the proposed assignee,
subtenant, user or other transferee (each a “Proposed
Transferee”); (ii) the nature of the business proposed to be
carried on in the Premises; (iii) a current balance sheet, income
statements for the last two years and such other reasonable financial and other
information concerning the Proposed Transferee as Landlord may request; and (iv) a
copy of the proposed assignment, sublease or other agreement governing the
proposed Transfer.  Within fifteen (15)
business days after Landlord receives all such information with respect to
Transfer requiring Landlord’s consent under this Section 14, Landlord
shall notify Tenant whether it approves or disapproves such Transfer or if it
elects to proceed under Section 14.7 - Landlord’s Right to Space.

 

30

 

(b)                                 Tenant acknowledges and agrees that, among other circumstances for
which Landlord could reasonably withhold consent to a proposed Transfer, it
shall be reasonable for Landlord to withhold consent where (i) the
Proposed Transferee does not intend itself to occupy the entire portion of the
Premises assigned or sublet, (ii) based upon reasonable and credible
evidence, Landlord reasonably disapproves of the Proposed Transferee’s business
operating ability or history, reputation or creditworthiness or the character of
the business to be conducted by the Proposed Transferee at the Premises, (iii) the
Proposed Transferee is a governmental agency or unit or an existing tenant in
the Project (provided Landlord has space in the Building available or becoming
available within a reasonable amount of time to meet the existing tenant’s
requirements), (iv) the proposed Transfer would violate any “exclusive”
rights of any tenants in the Project, (v) Landlord or Landlord’s agent has
shown space in the Building to the Proposed Transferee or responded to any
inquiries from the Proposed Transferee or the Proposed Transferee’s agent
concerning availability of space in the Building, at any time within the
preceding six months and Landlord has space in the Building available or
becoming available within a reasonable amount of time to reasonably meet the
Proposed Transferee’s requirements, or (vi) Landlord otherwise determines
that the proposed Transfer would have the effect of decreasing the value of the
Building or increasing the expenses associated with operating, maintaining and
repairing the Property.  In no event may
Tenant, its employees, agents brokers publicly advertise or market (including
without limitation, via any listing service) all or any portion of the Premises
for assignment or sublease at a rental less than that then sought by Landlord
for a direct lease (non-sublease) of comparable space in the Project that is
available or becoming available within a reasonable amount of time.

 

14.3                        Excess Consideration.  If Landlord consent is required and Landlord
consents to the Transfer, Tenant shall pay to Landlord as Additional Rent,
within ten (10) days after receipt by Tenant, fifty percent (50%) of any
consideration paid by any transferee (the “Transferee”)
for the Transfer, including, in the case of a sublease, fifty percent (50%) of
the excess of the rent and other consideration payable by the subtenant over
the amount of Base Rent and Additional Rent payable hereunder applicable to the
subleased space, after deduction of Tenant’s reasonable costs in connection
with the Transfer, including broker commissions, construction costs and
reasonable attorneys fees. Excess rent or consideration shall not include
amounts received by Tenant for sale of stock. Excess rent or consideration shall
include amounts received by Tenant for sale or rental of assets, equipment,
furniture, and personal property, less in the case of sale of any such item,
the fair market value of such item. As a condition of the effectiveness of any
such Transfer, Tenant shall provide documentation to Landlord substantiating
the excess rent or consideration, Tenant’s costs in connection with the
Transfer (such as broker commissions, construction costs and reasonable
attorneys’ fees) and amounts received by Tenant for sale or rental of assets,
equipment, furniture and personal property and Tenant’s reasonable
determination of the fair market value of such items on a line item basis.

 

14.4                        No Release Of Tenant.  No Transfer shall relieve Tenant of any
obligation to be performed by Tenant under this Lease, whether occurring before
or after such consent, assignment, subletting or other Transfer.  Each Transferee shall be jointly and
severally liable with Tenant (and Tenant shall be jointly and severally liable
with each Transferee) for the payment of rent (or, in the case of a sublease,
rent in the amount set forth in the sublease) and for the performance of all
other terms and provisions of this Lease. 
The consent by Landlord to any Transfer shall not relieve Tenant or any
such Transferee from the obligation to obtain Landlord’s express prior written
consent to any subsequent Transfer by Tenant or any Transferee.  The acceptance of rent by 

 

31

 

Landlord from any
other person (whether or not such person is an occupant of the Premises) shall
not be deemed to be a waiver by Landlord of any provision of this Lease or to
be a consent to any Transfer.

 

14.5                        Effectiveness of Transfer.  Prior to the date on which any
permitted Transfer (requiring Landlord’s consent) becomes effective, or within
ten (10) days after the date on which any permitted Transfer (not
requiring Landlord’s consent) becomes effective, Tenant shall deliver to
Landlord a counterpart of the fully executed Transfer document and if consent
of Landlord is required, Landlord’s standard form of Consent to Assignment or
Consent to Sublease as reasonably agreed to between Landlord, Tenant and the
Transferee, executed by Tenant and the Transferee in which each of Tenant and
the Transferee confirms its obligations pursuant to this Lease.  Failure or refusal of a Transferee to execute
any such instrument shall not release or discharge the Transferee from
liability as provided herein.  The
voluntary, involuntary or other surrender of this Lease by Tenant, or a mutual
cancellation by Landlord and Tenant, shall not work a merger, and any such
surrender or cancellation shall, at the option of Landlord, either terminate
all or any existing subleases or operate as an assignment to Landlord of any or
all of such subleases.

 

14.6                        Assignment of Sublease Rents.  Tenant hereby absolutely and
irrevocably assigns to Landlord any and all rights to receive rent and other
consideration from any sublease and agrees that Landlord, as assignee for Tenant
for purposes hereof, or a receiver for Tenant appointed on Landlord’s
application may (but shall not be obligated to) collect such rents and other
consideration and apply the same toward Tenant’s obligations to Landlord under
this Lease; provided, however, that Landlord grants to Tenant at all times
prior to occurrence of any Event of Default by Tenant a revocable license to
collect such rents (which license shall automatically and without notice be and
be deemed to have been revoked and terminated immediately upon any Event of
Default).

 

15.                               DEFAULT AND REMEDIES.

 

15.1                        Events of Default.  The occurrence of any of the following shall
constitute an “Event of Default” by Tenant:

 

(a)                                 Tenant fails to make any payment of Rent when due, or any amount
required to replenish the security deposit as provided in Section 4 above,
if payment in full is not received by Landlord within five (5) business
days after written notice that it is past due.

 

(b)                                 Tenant abandons the Premises, provided Tenant shall have the right to
cease operating its business in the Premises and/or vacate the same without
creating a default under this Lease so long as Tenant pays its rental and
performs its other obligations under the Lease, but subject to Landlord’s
recapture rights under Section 5.1 of this Lease.

 

(c)                                  Tenant fails timely to deliver any subordination document, estoppel
certificate or financial statement requested by Landlord within the applicable
time period specified in Sections 20 - Encumbrances -
and 21 - Estoppel Certificates and Financial Statements below,
if the subordination document, estoppel certificate or financial statement is
not received by Landlord within five (5) days of written notice it is past
due.

 

32

 

(d)                                 Tenant violates the restrictions on Transfer set forth in Section 14
- Assignment and Subletting and fails to
cure such violation within fifteen (15) days after written notice of such
violation.

 

(e)                                  Tenant makes an assignment for the benefit of creditors; is adjudicated
an insolvent, files a petition (or files an answer admitting the material
allegations of a petition) seeking relief under any state or federal bankruptcy
or other statute, law or regulation affecting creditors’ rights; all or
substantially all of Tenant’s assets are subject to judicial seizure or
attachment; or Tenant consents to or acquiesces in the appointment of a
trustee, receiver or liquidator for Tenant or for all or any substantial part
of Tenant’s assets.

 

(f)                                   Tenant fails, within ninety (90) days after the commencement of any
proceedings against Tenant seeking relief under any state or federal bankruptcy
or other statute, law or regulation affecting creditors’ rights, to have such
proceedings dismissed, or Tenant fails, within ninety (90) days after an
appointment, without Tenant’s consent or acquiescence, of any trustee, receiver
or liquidator for Tenant or for all or any substantial part of Tenant’s assets,
to have such appointment vacated.

 

(g)                                  Tenant fails to perform or comply with any provision of this Lease
other than those described in (a) through (f) above, and does not
fully cure such failure within thirty (30) days after notice to Tenant, if such
failure cannot be cured within such thirty (30)-day period, Tenant fails within
such thirty (30)-day period to commence, and thereafter diligently proceed
with, all actions necessary to cure such failure as soon as reasonably possible
but in all events within ninety (90) days of such notice.

 

15.2                        Remedies.  Upon the occurrence of an Event of Default,
Landlord shall have the following remedies, which shall not be exclusive but
shall be cumulative and shall be in addition to any other remedies now or
hereafter allowed by law:

 

(a)                                 Landlord may terminate Tenant’s right to possession of the Premises at
any time by written notice to Tenant. 
Tenant expressly acknowledges that in the absence of such written notice
from Landlord, no other act of Landlord, including re-entry into the Premises,
efforts to relet the Premises, reletting of the Premises for Tenant’s account,
storage of Tenant’s personal property and Trade Fixtures, acceptance of keys to
the Premises from Tenant or exercise of any other rights and remedies under
this Section, shall constitute an acceptance of Tenant’s surrender of the Premises
or constitute a termination of this Lease or of Tenant’s right to possession of
the Premises.  Upon such termination in
writing of Tenant’s right to possession of the Premises, as herein provided,
this Lease shall terminate and Landlord shall be entitled to recover damages,
including, but not limited to, tenant improvement costs, broker fees and
negotiating costs incurred in re-letting the Premises and damages from Tenant
for such breach and damages from Tenant for such breach. In the event Landlord elects
to terminate this Lease or repossess the Premises by reason of an Event of
Default by Tenant, then Landlord shall use reasonable efforts to re-let the
Premises.  Landlord’s reasonable efforts
as used in the immediately preceding sentence shall be deemed satisfied by
listing the Premises’ availability for lease with a broker selected by
Landlord.

 

(b)                                 Landlord may cure the Event of Default at Tenant’s expense.  If Landlord pays any sum or incurs any
expense in curing the Event of Default, Tenant shall reimburse Landlord upon
demand for the amount of such payment or expense with interest at the Interest 

 

33

 

Rate from the date
the sum is paid or the expense is incurred until Landlord is reimbursed by Tenant.

 

(c)                                  Landlord may remove all Tenant’s property from the Premises, and such
property may be stored by Landlord in a public warehouse or elsewhere at the
sole cost and for the account of Tenant. 
If Landlord does not elect to store any or all of Tenant’s property left
in the Premises, Landlord may consider such property to be abandoned by Tenant,
and Landlord may thereupon dispose of such property in any manner deemed
appropriate by Landlord.  Any proceeds
realized by Landlord on the disposal of any such property shall be applied
first to offset all expenses of storage and sale, then credited against Tenant’s
outstanding obligations to Landlord under this Lease, and any balance remaining
after satisfaction of all obligations of Tenant under this Lease shall be
delivered to Tenant.

 

(d)                                 In the event of any default under this Lease by Landlord, Landlord
shall have thirty (30) days after receipt of written notice thereof to cure
such default, unless it shall be of a nature that it cannot reasonably be cured
within said thirty (30) day period, in which event Landlord shall have a
reasonable period of time to cure such default provided that Landlord commences
to cure such default within said thirty (30) day period and thereafter
diligently prosecutes such cure to completion. 
If Landlord fails to cure any default within the cure period specified
above, Tenant, without limiting any of its rights or remedies permitted at law
or in equity, shall have the right (but not the obligation) to cure such
default and to recover from Landlord the cost thereof, and Landlord shall pay
such costs of cure to Tenant within thirty (30) days after written demand for
payment is delivered to Landlord together with written information
substantiating such costs incurred. If Landlord does not timely reimburse
Tenant for such costs within thirty (30) days after delivery of an initial
written demand for payment to Landlord with substantiation of costs incurred,
and thereafter, Landlord does not reimburse Tenant for such costs within fifteen
(15) days after delivery of a second written demand for payment to Landlord,
then Tenant may offset such costs against the next installments of Rent coming
due under this Lease.

 

16.                               LATE CHARGE AND INTEREST.

 

16.1                        Late Charge.  If any payment of Rent is not received by
Landlord within five (5) business days after the date when due, Tenant
shall pay to Landlord on demand as a late charge the sum of Five Hundred and
00/100 Dollars ($500.00) (each a “Late Charge”
and collectively, “Late Charges”).  A Late Charge shall not be imposed more than
once on any particular installment not paid when due, but imposition of a Late
Charge on any payment not made when due does not eliminate or supersede Late
Charges imposed on other (prior) payments not made when due or preclude
imposition of a Late Charge on other installments or payments not made when
due.

 

16.2                        Interest.  In addition to the Late Charges referred to
above, which are intended to defray Landlord’s costs resulting from late
payments, any payment from Tenant to Landlord not paid when due shall at
Landlord’s option bear interest from the date due until paid to Landlord by
Tenant at the rate of twelve percent (12%) per annum or the maximum lawful rate
that Landlord may charge to Tenant under applicable laws, whichever is less
(the “Interest Rate”).  Acceptance of any Late Charge and/or interest
shall not constitute a waiver of Tenant’s default with respect to the overdue
sum or prevent Landlord from exercising any of its other rights and remedies
under this Lease.

 

34

 

17.                               WAIVER.  No provisions of this
Lease shall be deemed waived by Landlord or Tenant unless such waiver is in a
writing signed by the waiving party.  The
waiver by Landlord or Tenant of any breach of any provision of this Lease shall
not be deemed a waiver of such provision or of any subsequent breach of the
same or any other provision of this Lease. 
No delay or omission in the exercise of any right or remedy upon any
default shall impair such right or remedy or be construed as a waiver.  Landlord’s acceptance of any payments of Rent
due under this Lease shall not be deemed a waiver of any default by Tenant
under this Lease (including Tenant’s recurrent failure to timely pay rent)
other than Tenant’s nonpayment of the accepted sums, and no endorsement or
statement on any check or payment or in any letter or document accompanying any
check or payment shall be deemed an accord and satisfaction.  Landlord or Tenant’s consent to or approval
of any act requiring consent or approval shall not be deemed to waive or render
unnecessary consent to or approval of any subsequent act.

 

18.                               ENTRY, INSPECTION AND CLOSURE. 
Upon reasonable oral or written notice to Tenant (and without notice in
emergencies), Landlord and its authorized representatives may enter the
Premises at all reasonable times to:  (a) determine
whether the Premises are in good condition, (b) determine whether Tenant
is complying with its obligations under this Lease, (c) perform any
maintenance or repair of the Premises or the Building that Landlord has the
right or obligation to perform, (d) install or repair improvements for
other tenants where access to the Premises is required for such installation or
repair, (e) serve, post or keep posted any notices required or allowed
under the provisions of this Lease, (f) during the last nine (9) months
of the Term or at any time after Tenant has abandoned the Premises, show the
Premises to prospective brokers, agents, buyers, transferees, Mortgagees or
tenants, or (g) do any other act or thing necessary for the safety or
preservation of the Premises or the Building. 
When reasonably necessary, Landlord may temporarily close entrances,
doors, corridors, elevators or other facilities in the Building without liability
to Tenant by reason of such closure, except as set forth in this Lease.  Landlord shall conduct its activities under
this Section in a commercially reasonable manner that will minimize
inconvenience to Tenant without incurring additional expense to Landlord.  In no event shall Tenant be entitled to an
abatement of rent and Landlord shall not be liable in any manner for any
inconvenience, loss of business or other damage to Tenant or other persons
arising out of Landlord’s entry on the Premises in accordance with this
Section, except as set forth in this Lease. 
No action by Landlord pursuant to this paragraph shall constitute an
eviction of Tenant, constructive or otherwise, entitle Tenant to an abatement
of rent or to terminate this Lease or otherwise release Tenant from any of
Tenant’s obligations under this Lease, except as set forth in this Lease.

 

19.                               SURRENDER AND HOLDING OVER.

 

19.1                        Surrender.  Upon the expiration or termination of this
Lease, Tenant shall surrender the Premises and all Tenant Improvements and
Alterations to Landlord broom-clean and in their original condition, except for
reasonable wear and tear, damage from casualty or condemnation, Landlord’s
obligations and any changes resulting from approved Alterations; provided,
however, that prior to the expiration or termination of this Lease Tenant shall
remove all telephone and other cabling installed in the Building by Tenant and
remove from the Premises all Tenant’s personal property and any Trade Fixtures
and all Alterations that Landlord has elected to require Tenant to remove as
provided in Section 6.1 - Tenant Improvements &
Alterations, and repair any damage caused by such removal.  If such removal is not completed before the
expiration or termination of the Term, Landlord shall have the right (but no
obligation) to remove the same.  Landlord
shall 

 

35

 

also have the
right to retain or dispose of all or any portion of such property if Tenant
does not pay all such costs and retrieve the property within ten (10) days
after notice from Landlord (in which event title to all such property described
in Landlord’s notice shall be transferred to and vest in Landlord).  Tenant waives all Claims against Landlord for
any damage or loss to Tenant resulting from Landlord’s removal, storage,
retention, or disposition of any such property. 
Upon expiration or termination of this Lease or of Tenant’s possession,
whichever is earliest, Tenant shall surrender all keys to the Premises or any
other part of the Building and shall deliver to Landlord all keys for or make
known to Landlord the combination of locks on all safes, cabinets and vaults
that may be located in the Premises.  In
no event shall Tenant be required to remove the Tenant Improvements or any
Alterations except as provided in Section 6.1.  Tenant’s obligations under this Section shall
survive the expiration or termination of this Lease.

 

19.2                        Holding Over.  If Tenant (directly or through any Transferee
or other successor-in-interest of Tenant) remains in possession of the Premises
after the expiration or termination of this Lease, Tenant’s continued
possession shall be on the basis of a tenancy at the sufferance of Landlord. In
such event, Tenant shall continue to comply with or perform all the terms and
obligations of Tenant under this Lease, except that the monthly Base Rent
during the first two month’s of Tenant’s holding over shall be one and one half
(1.5) times the Base Rent payable in the last full month prior to the
termination hereof, and thereafter the monthly Base Rent during the Tenant’s
holding over shall be twice the Base Rent payable in the last full month prior
to the termination hereof. Tenant shall indemnify, defend and hold Landlord
harmless from and against all Claims arising or resulting directly or
indirectly from Tenant’s failure to timely surrender the Premises, including (i) any
rent payable by or any loss, cost, or damages claimed by any prospective tenant
of the Premises, and (ii) Landlord’s damages as a result of such
prospective tenant rescinding or refusing to enter into the prospective lease
of the Premises by reason of such failure to timely surrender the Premises, provided, however, in order for Tenant to
be liable to Landlord hereunder for any Claims for consequential damages made
by Landlord or a third party, including a prospective tenant or purchaser of
the Premises or Building, Landlord must have given Tenant at least thirty (30)
days written notice prior to the accrual of such damages advising Tenant in good
faith that Landlord intends to lease, license, sell, transfer or convey the
Premises to such third party.

 

20.                               ENCUMBRANCES.

 

20.1                        Subordination, Non- Disturbance and Attornment.  This Lease is expressly made
subject and subordinate to any mortgage, deed of trust, ground lease,
underlying lease or like encumbrance affecting any part of the Property or any
interest of Landlord therein which is now existing or hereafter executed or
recorded (“Encumbrance”); provided, however,
that such subordination shall only be effective if this Lease and Tenant’s
rights hereunder shall survive the termination of the Encumbrance by lapse of
time, foreclosure or otherwise so long as Tenant is not in default under this
Lease beyond any applicable cure period. 
Simultaneously with Tenant’s execution and delivery of this Lease,
Tenant shall execute and deliver to Landlord the Non-Disturbance, Attornment,
Estoppel and Subordination Agreement attached hereto as Exhibit F (the “NDESA”). At any time after
execution of this Lease and within ten (10) days after written
request therefor by Landlord, Tenant shall execute and deliver to Landlord the
NDESA, or any additional documents in form reasonably requested by Landlord
(including without limitation, a replacement NDESA) to correct clerical errors
or omissions in the NDESA, to replace lost or destroyed originals of the NDESA,
or to permit recording of the NDESA with the County land title 

 

36

 

records for the
Property, or to otherwise evidence the subordination of this Lease with respect
to any such Encumbrance and the nondisturbance agreement of the holder of any
such Encumbrance, provided the conditions of the first sentence of this Section 20.1
are satisfied and said documents shall not limit or reduce Tenant’s rights
under the Lease.  If the interest of
Landlord in the Property is transferred pursuant to or in lieu of proceedings
for enforcement of any Encumbrance, Tenant shall immediately and automatically
attorn to the new owner, and this Lease shall continue in full force and effect
as a direct lease between the transferee and Tenant on the terms and conditions
set forth in this Lease.

 

20.2                        Mortgagee Protection.  Tenant agrees to give any holder of any
Encumbrance covering any part of the Property (“Mortgagee”),
by certified mail, a copy of any notice of default served upon Landlord,
provided that prior to such notice Tenant has been notified in writing (by way
of notice of assignment of rents and leases, or otherwise) of the address of
such Mortgagee.  If Landlord shall have
failed to cure such default within thirty (30) days from the effective date of
such notice of default, then the Mortgagee shall have an additional thirty (30)
days within which to cure such default or if such default cannot be cured
within that time, then such additional time as may be necessary to cure such
default (including the time necessary to foreclose or otherwise terminate its
Encumbrance, if necessary to effect such cure), and this Lease shall not be
terminated so long as such remedies are being diligently pursued. To the extent
the Tenant and the applicable Mortgagee have executed an NDESA that contains
any provisions that are inconsistent with this Section 20.2, then the
terms of said NDESA shall control and be determinative as to such inconsistent
provisions.

 

21.                               ESTOPPEL CERTIFICATES AND FINANCIAL STATEMENTS.

 

21.1                        Estoppel Certificates.  Within ten (10) days after written
request therefor, Tenant shall execute and deliver to Landlord, in a form
provided by or satisfactory to Landlord, a certificate stating that this Lease
is in full force and effect, describing any amendments or modifications hereto,
acknowledging that this Lease is subordinate or prior, as the case may be, to
any Encumbrance and stating any other information Landlord may reasonably
request regarding the status of this Lease or Tenant’s occupancy of the
Premises, including the Term, the monthly Base Rent, the date to which Rent has
been paid, the amount of any security deposit or prepaid rent, whether either
party hereto is in default under the terms of the Lease, and whether Landlord
has completed its construction obligations hereunder (if any).  Any person or entity purchasing, acquiring an
interest in or extending financing with respect to the Property shall be
entitled to rely upon any such certificate executed by Tenant.

 

21.2                        Financial Statements. Within ten (10) business
days after written request therefore, but not more than once a year, Tenant
shall deliver to Landlord a copy of the financial statements (including at
least a year end balance sheet and a statement of profit and loss) of Tenant
(and of each guarantor of Tenant’s obligations under this Lease) for each of
the three (3) most recently completed years, prepared in accordance with
generally accepted accounting principles (and, if such is Tenant’s normal
practice, audited by an independent certified public accountant), all then
available subsequent interim statements, and such other financial information
as may reasonably be requested by Landlord or required by any Mortgagee.

 

22.                               NOTICES.  Any notice, demand,
request, consent or approval that either party desires or is required to give
to the other party under this Lease shall be in writing and shall be served 

 

37

 

personally,
delivered by messenger or courier service, or sent by U.S. certified mail,
return receipt requested, postage prepaid, addressed to the other party at the
party’s address for notices set forth in the Basic Lease Information.  Any notice required pursuant to any Laws may
be incorporated into, given concurrently with or given separately from any
notice required under this Lease.  Notices
shall be deemed to have been given and be effective on the earlier of (a) receipt
(or refusal of delivery or receipt); or (b) one (1) day after
acceptance by the independent service for delivery, if sent by independent
messenger or courier service, or three (3) days after mailing if sent by
mail in accordance with this Section. 
Either party may change its address for notices hereunder, effective
fifteen (15) days after notice to the other party complying with this
Section.  If Tenant sublets the Premises,
notices from Landlord shall be effective on the subtenant when given to Tenant
pursuant to this Section.

 

23.                               ATTORNEYS’ FEES.  In the event of any dispute  between Landlord and Tenant in any way related to this
Lease, and whether involving contract and/or tort claims, the non-prevailing
party shall pay to the prevailing party all reasonable attorneys’ fees and
costs and expenses of any type,  without
restriction by statute, court rule or otherwise, incurred by the
prevailing party in connection with any action or proceeding (including any
appeal and the enforcement of any judgment or award), whether or not the
dispute is litigated or prosecuted to final judgment (collectively, “Fees”).  The “prevailing
party” shall be determined based upon an assessment of which party’s major
arguments or positions taken in the action or proceeding could fairly be said
to have prevailed (whether by compromise, settlement, abandonment by the other
party of its claim or defense, final decision, after any appeals, or otherwise)
over the other party’s major arguments or positions on major disputed issues.
Any Fees incurred in enforcing a judgment shall be recoverable separately from
any other amount included in the judgment and shall survive and not be merged
in the judgment.  The Fees shall be
deemed an “actual pecuniary loss” within the meaning of Bankruptcy Code Section 365(b)(1)(B),
and notwithstanding the foregoing, all Fees incurred by either party in any
bankruptcy case filed by or against the other party, from and after the order
for relief until this Lease is rejected or assumed in such bankruptcy case,
will be “obligations of the debtor” as that phrase is used in Bankruptcy Code Section 365(d)(3).

 

24.                               QUIET POSSESSION.  Subject to
Tenant’s full and timely performance of all of Tenant’s obligations under this
Lease, including applicable notice and cure periods, and subject to the terms
of this Lease, including Section 20 - Encumbrances,
Tenant shall have the quiet possession of the Premises throughout the Term as
against any persons or entities lawfully claiming by, through or under
Landlord.

 

25.                               SECURITY MEASURES.  Landlord may,
but shall be under no obligation to, implement such security measures for the
Property, as Landlord deems necessary or appropriate to reduce any threat of
property loss or damage, bodily injury or business interruption; provided,
however, that such measures shall be implemented in a way as not to
inconvenience tenants of the Building unreasonably.  Landlord shall
at all times have the right to change, alter or reduce any such security
services or measures.  Tenant shall cooperate
and comply with, and cause Tenant’s Representatives and Visitors to cooperate
and comply with, such commercially reasonable security measures.  Landlord, its agents and employees shall have
no liability to Tenant or its Representatives or Visitors for the
implementation or exercise of, or the failure to implement or exercise, any
such security measures or for any resulting disturbance of Tenant’s use or
enjoyment of the Premises, except in the case of landlord’s negligence or
willful misconduct.

 

38

 

26.                               FORCE MAJEURE.  If Tenant or
Landlord is delayed, interrupted or prevented from performing any of its
obligations under this Lease (excluding payment or rent or other monetary
obligations), including its obligations under the Construction Rider (if any),
and such delay, interruption or prevention is due to fire, act of God,
governmental act or failure to act, labor dispute, unavailability of materials
or any cause outside the reasonable control of Landlord, then the time for
performance of the affected obligations of Landlord shall be extended for a
period equivalent to the period of such delay, interruption or prevention.

 

27.                               RULES AND REGULATIONS.  Tenant
shall be bound by and shall comply with the rules and regulations attached
to and made a part of this Lease as Exhibit C to the extent those rules and
regulations are not in conflict with the terms of this Lease, as well as any
reasonable rules and regulations hereafter adopted by Landlord for all
tenants of the Building, upon notice to Tenant thereof (collectively, the “Building Rules”). 
Landlord shall not be responsible to Tenant or to any other person for
any violation of, or failure to observe, the Building Rules by any other
tenant or other person, provided Landlord shall take commercially reasonable
efforts to enforce such Building Rules in the event Tenant’s use of the
Premises is being materially interfered with by another tenants violation of
the Building Rules.

 

28.                               LANDLORD’S LIABILITY.  The term “Landlord,”
as used in this Lease, shall mean only the owner or owners of the Building at
the time in question.  In the event of
any conveyance of title to the Building, then from and after the date of such
conveyance, the transferor Landlord shall be relieved of all liability with
respect to Landlord’s obligations to be performed under this Lease after the
date of such conveyance provided that such transferee has assumed all of
Landlord’s obligations under this Lease arising from and after the effective
date of such transfer.  Notwithstanding
any other term or provision of this Lease, the liability of Landlord for its
obligations under this Lease is limited solely to Landlord’s interest in the
Building (including rents, profits, and proceeds from condemnation, casualty,
sale or refinancing of the Building) as the same may from time to time be
encumbered (i.e. Tenant’s claim to the foregoing shall be subordinate to the
interest of a Mortgagee), and no personal liability shall at any time be
asserted or enforceable against any other assets of Landlord or against
Landlord’s partners or members or its or their respective partners,
shareholders, members, directors, officers or managers on account of any of
Landlord’s obligations or actions under this Lease.

 

29.                               CONSENTS AND APPROVALS.

 

29.1                        Determination in Good Faith.  Wherever the consent,
approval, judgment or determination of Landlord is required or permitted under
this Lease, Landlord may exercise its good faith business judgment in granting
or withholding such consent or approval or in making such judgment or
determination without reference to any extrinsic standard of reasonableness,
unless the specific provision contained in this Lease providing for such
consent, approval, judgment or determination specifies that Landlord’s consent
or approval is not to be unreasonably withheld, or that such judgment or
determination is to be reasonable, or otherwise specifies the standards under
which Landlord may withhold its consent.

 

29.2                        No Liability Imposed on Landlord.  The review and/or approval by
Landlord of any item or matter to be reviewed or approved by Landlord under the
terms of this Lease or any Exhibits or Addenda hereto shall not impose upon
Landlord any liability for the accuracy or sufficiency of any such item or
matter or the quality or suitability of such item for its intended use.  

 

39

 

Any such review or
approval is for the sole purpose of protecting Landlord’s interest in the
Property, and no third parties, including Tenant or the Representatives and
Visitors of Tenant or any person or entity claiming by, through or under
Tenant, shall have any rights as a consequence thereof.

 

30.                               BROKERS.  Landlord shall pay the
fee or commission of the broker or brokers identified in the Basic Lease
Information (the “Broker”) in
accordance with Landlord’s separate written agreement with the Broker, if
any.  Landlord and Tenant warrant and
represent to the other that in the negotiating or making of this Lease neither
it nor anyone acting on its behalf has dealt with any broker or finder who
might be entitled to a fee or commission for this Lease other than the
Broker.  Landlord and Tenant shall
indemnify and hold the other harmless from any claim or claims, including costs,
expenses and attorney’s fees incurred by the indemnified party asserted by any
other broker or finder for a fee or commission based upon any dealings with or
statements made by the indemnifying party or its representatives.

 

31.                               RELOCATION OF PREMISES. 
Intentionally omitted.

 

32.                               ENTIRE AGREEMENT.  This Lease,
including the Exhibits and any Addenda attached hereto, and the documents
referred to herein, if any, constitute the entire agreement between Landlord
and Tenant with respect to the leasing of space by Tenant in the Building, and
supersede all prior or contemporaneous agreements, understandings, proposals
and other representations by or between Landlord and Tenant, whether written or
oral, all of which are merged herein. 
Neither Landlord nor Landlord’s agents have made any representations or
warranties with respect to the Premises, the Building, the Project or this
Lease except as expressly set forth herein, and no rights, easements or
licenses shall be acquired by Tenant by implication or otherwise unless
expressly set forth herein.  The
submission of this Lease for examination does not constitute an option for the
Premises and this Lease shall become effective as a binding agreement only upon
execution and delivery thereof by Landlord to Tenant.

 

33.                               MISCELLANEOUS.  This Lease may
not be amended or modified except by a writing signed by Landlord and
Tenant.  Subject to Section 14 - Assignment and Subletting and Section 28 - Landlord’s Liability, this Lease shall be binding on and
shall inure to the benefit of the parties and their respective successors,
assigns and legal representatives.  The
determination that any provisions hereof may be void, invalid, illegal or
unenforceable shall not impair any other provisions hereof and all such other
provisions of this Lease shall remain in full force and effect.  The unenforceability, invalidity or
illegality of any provision of this Lease under particular circumstances shall
not render unenforceable, invalid or illegal other provisions of this Lease, or
the same provisions under other circumstances. 
This Lease shall be construed and interpreted in accordance with the
laws (excluding conflict of laws principles) of the State in which the Building
is located.  The provisions of this Lease
shall be construed in accordance with the fair meaning of the language used and
shall not be strictly construed against either party, even if such party
drafted the provision in question.  When
required by the context of this Lease, the singular includes the plural.  Wherever the term “including” is used in this
Lease, it shall be interpreted as meaning “including, but not limited to” the
matter or matters thereafter enumerated. 
The captions contained in this Lease are for purposes of convenience
only and are not to be used to interpret or construe this Lease.  If more than one person or entity is
identified as Tenant hereunder, the obligations of each and all of them under
this Lease shall be joint and several. 
Time is of the essence with respect to this Lease, except as to the
conditions relating to the delivery of possession of the Premises to 

 

40

 

Tenant.  Neither Landlord nor Tenant shall record this
Lease, provided that upon the request of either party, such party shall
promptly execute a recordable memorandum of lease. If a memorandum of lease is
executed and recorded, then promptly upon request by Landlord after termination
of this Lease, Tenant shall execute and deliver to Landlord a written
instrument in recordable form confirming the termination of this Lease and if
Tenant fails to do so within ten (10) days after written request by
Landlord and Tenant has not provided Landlord with written notice that Tenant
disputes the Lease has terminated, Landlord shall have authority to
unilaterally record an affidavit or other written instrument confirming the
termination of this Lease without releasing Tenant from its obligation to
provide the written termination.

 

34.                               AUTHORITY.  Tenant and Landlord
represent and warrant that each of the persons executing this Lease on their
behalf is a duly organized and validly existing entity, has full right and
authority to enter into this Lease and that the persons signing on their behalf
are authorized to do so and have the power to bind such party to this Lease.  Landlord and Tenant shall provide the other
upon request with evidence reasonably satisfactory confirming the foregoing
representations.

 

(remainder of page left intentionally blank — signatures follow on
next page)

 

41

 

IN WITNESS WHEREOF, Landlord and Tenant have entered into this Lease as
of the date first above written.

 

	
  TENANT:

  	
  LANDLORD:

  
	
  MOCON, INC.,

  a Minnesota corporation

  	
  MINNESOTA
  INDUSTRIAL PROPERTIES LIMITED PARTNERSHIP,

  
	
   

  	
  a Minnesota
  limited partnership

  
	
  By:

  	
  /s/ Darrell
  B. Lee

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Darrell B. Lee

  	
  By: Minnesota
  Industrial Portfolio, LLC

  
	
   

  	
  Title:

  	
  V.P. &
  CFO

  	
  Its: General
  Partner

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  March 3,
  2010

  	
  By:

  	
  /s/
  M.L. Wedin

  
	
   

  	
   

  	
   

  	
  Name:

  	
  M.L. Wedin

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  March 9,
  2010

  
							

 

42

 

EXHIBIT A

 

ATTACHED TO AND
FORMING A PART OF

LEASE AGREEMENT

DATED AS OF MARCH 9,
2010

BETWEEN

MINNESOTA
INDUSTRIAL PROPERTIES LIMITED PARTNERSHIP, AS LANDLORD,

AND

MOCON, INC., AS
TENANT (“LEASE”)

 

THE PREMISES

 

 

1

 

EXHIBIT B

 

ATTACHED TO AND
FORMING A PART OF

LEASE AGREEMENT

DATED AS OF MARCH 9,
2010

BETWEEN

MINNESOTA
INDUSTRIAL PROPERTIES LIMITED PARTNERSHIP, AS LANDLORD,

AND

MOCON, INC., AS
TENANT (“LEASE”)

 

CONSTRUCTION RIDER

 

1.                                      Tenant Improvements. 
Landlord shall with reasonable diligence through a contractor designated
by Landlord (which contractor may be an affiliate of Landlord) construct and
install in the Premises the improvements and fixtures pursuant to the Final
Construction Documents (defined herein) (“Tenant Improvements”),
at Tenant’s expense, subject to the Allowance provided by Landlord herein.
Notwithstanding the foregoing, Landlord shall pay the cost to construct the
demising wall and separate the utilities (electricity and gas) at its sole
cost, which amount shall not be applied against the Allowance provided by
Landlord.  The Final Construction
Documents are subject to Landlord’s prior reasonable approval.  Upon request by Landlord, Tenant shall
designate in writing an individual authorized to act as Tenant’s Representative
with respect to all approvals, directions and authorizations pursuant to this
Construction Rider.

 

1.1.                            Plans.  The Tenant
Improvements shall be constructed substantially as shown in the final
construction documents prepared by DE Design dated February 12, 2010,
subject to revisions required by the City of Brooklyn Park, MN (“City”), if any
(the “Final Construction Documents”).  Landlord has provided Tenant with a bid for
the work shown in the Final Construction Documents, a copy of which is attached
hereto as Exhibit B-1 (“Final Cost Estimate”).

 

1.2.                            Construction. 
Landlord shall proceed with reasonable diligence to cause the Tenant
Improvements to be Substantially Completed on or prior to June 1, 2010 the
Scheduled Commencement Date.  The Tenant
Improvements shall be deemed to be “Substantially Completed”
when they have been completed in accordance with the Final Construction
Documents except for finishing details, minor omissions, decorations and
mechanical adjustments of the type normally found on an architectural or
construction “punch list” which do not materially interfere with Tenant’s
installation of its trade fixtures and equipment and operation of its business
therein.  (The definition of
Substantially Completed shall also define the terms “Substantial
Completion” and “Substantially Complete.”)

 

Following Substantial
Completion of the Tenant Improvements and before Tenant takes possession of the
Premises (or as soon thereafter as may be reasonably practicable and in any
event within thirty (30) days after Substantial Completion), Landlord and
Tenant shall inspect the Premises and jointly prepare a “punch list” of agreed
items of construction remaining to be completed.  Landlord shall complete the items set forth
in the punch list as soon as reasonably 

 

1

 

possible.  Tenant shall cooperate with and accommodate
Landlord and Landlord’s contractor in completing the items on the punch list.

 

1.3.                            Cost of Tenant Improvements. 
Landlord shall contribute up to Seven Hundred Twenty-Five Thousand and
no/100 Dollars ($725,000.00)  (the “Allowance”) toward the cost of the design (including
preparation of space plans and Construction Documents), construction and
installation of the Tenant Improvements (including without limitation, usual
markups for overhead, supervision and profit which shall be included in the
Final Cost Estimate), but excluding any of the costs related to the Exercise Room as
shown on such plans which shall be paid by Tenant.  Landlord shall provide an
additional Seventy-six Thousand Nine Hundred Twenty-five and 00/100 Dollars
($76,925.00) (the “Additional Contribution”)
toward the Tenant Improvements or other hard cost of constructing any other fixture or
leasehold improvements made by Tenant to the Premises prior to the Commencement
Date; provided, however the amount of the Additional Contribution, if any,
shall be amortized over the initial one hundred eighty (180) months of the Term
at an interest rate of ten and 00/100 percent (10.0%) per annum and added to
the Base Rent due and payable monthly pursuant to this Lease.  The balance, if any, of the cost of the Tenant
Improvements as set forth in the Final Cost Estimate over and above
the Allowance and Additional Contribution (“Additional Cost”)
shall be paid by Tenant.  Tenant shall
pay Landlord fifty percent (50%) of the Additional Cost based upon the Final
Cost Estimate prior to the commencement of construction of the Tenant
Improvements.  The balance of the actual
Additional Cost shall be paid to Landlord upon Substantial Completion of the
Tenant Improvements and full completion of the punch list items, within thirty
(30) days after receipt of Landlord’s invoice therefor.  Landlord will use reasonable care in
preparing the cost estimates, and Tenant shall have no obligation, other than
for Changes set forth below and any City required changes, additions or
alterations in or to the Final Construction Documents that increases the cost
of the Tenant Improvements, to pay any additional costs of the Tenant
Improvements over the approved Final Cost Estimate less the Allowance and
Additional Contribution.  
Notwithstanding the foregoing, in the event the full Seven Hundred Twenty-Five
Thousand and no/100 Dollars ($725,000.00) of the Allowance is not used by
Tenant as provided above, then up to Seventy-Two Thousand Five Hundred and
no/100 Dollars ($72,500.00) of the unused balance may be used by Tenant for the
Additional Cost and the hard cost of constructing any other fixture or
leasehold improvements made by Tenant to the Premises prior to the Commencement
Date; provided, however, Tenant must request the right to utilize such portion
of the unused balance by written notice delivered to Landlord within ninety
(90) days after Landlord achieves Substantial Completion of the Tenant
Improvements.  Upon Substantial
Completion of the Tenant Improvements, the parties shall promptly execute an addendum
to this Lease in form prepared by Landlord’s counsel confirming the date of
Substantial Completion, the Commencement Date, the Termination Date, the amount
of the Additional Contribution, if any, and any increase in the Base Rent based
on the amortization of the Additional Contribution, if any.

 

1.4.                            Changes.  If Tenant
requests any change, addition or alteration in or to the Final Construction
Documents (“Changes”) Landlord shall cause
Ryan to prepare additional Plans implementing such Change.  Tenant shall pay the cost of preparing additional
Plans, which charge may be paid from the Allowance or shall otherwise be
reimbursed to Landlord within thirty (30) days after receipt of Landlord’s
invoice therefor.  As soon as practicable
after the completion of such additional Construction Documents, Landlord shall
notify Tenant of the estimated cost of the Changes.  Within three (3) business days after
receipt of such cost estimate, 

 

2

 

Tenant shall notify
Landlord in writing whether Tenant approves the Change.  If Tenant approves the Change, Landlord shall
proceed with the Change and Tenant shall be liable for any Additional Cost
resulting from the Change.  If Tenant
fails to approve the Change within such three (3) business day period,
construction of the Tenant Improvements shall proceed as provided in accordance
with the original Construction Documents.

 

1.5.                            Delays.  Tenant shall
be responsible for, and shall pay to Landlord, any and all out of pocket costs
and expenses incurred by Landlord in connection with any delay in the
commencement or completion of any Tenant Improvements and any increase in the
cost of Tenant Improvements caused by (i) Tenant’s failure to submit
information to Ryan or approve any plans, drawing, specifications, or Construction
Documents or cost estimates within the time periods required herein, (ii) any
delays in obtaining any items or materials constituting part of the Tenant
Improvements requested by Tenant with long lead times, provided Landlord has
advised Tenant of the long lead item and Tenant would not accept a reasonably
equivalent substitution therefor, (iii) any Changes, or (iv) any
other delay requested or caused by Tenant (collectively, “Tenant
Delays”).

 

2.                                      Delivery of Premises. 
Upon Substantial Completion of the Tenant Improvements, Landlord shall
deliver possession of the Premises to Tenant. 
If Landlord has not Substantially Completed the Tenant Improvements and
tendered possession of the Premises to Tenant on or before the Scheduled
Commencement Date, or if Landlord is unable for any other reason to deliver
possession of the Premises to Tenant on or before such date, neither Landlord
nor its representatives shall be liable to Tenant for any damage resulting from
the delay in completing such construction obligations and/or delivering
possession to Tenant and the Lease shall remain in full force and effect unless
and until it is terminated under the express provisions of this Paragraph.  If any delays in Substantially Completing the
Tenant Improvements are attributable to Tenant Delays, then the Premises shall
be deemed to have been Substantially Completed and delivered to Tenant on the
date on which Landlord could have Substantially Completed the Premises and
tendered the Premises to Tenant but for such Tenant Delays.

 

3.                                      Early Access to Premises. 
Subject to the terms of this Lease (except payment of Base Rent and
Additional Rent), when Landlord has completed construction to a point where
Landlord reasonably believes Tenant may occupy the Premises to commence installation
of its data and communications cabling/wiring and installation of its trade
fixtures and equipment and otherwise ready the Premises for Tenant’s occupancy
(“Permitted Work”) without interfering with the completion of the Tenant
Improvements by Landlord or its contractor, Landlord shall allow Tenant and
Tenant’s Representatives to enter the Premises prior to the Commencement Date
to perform the Permitted Work; provided, however, that prior to such entry of
the Premises, Tenant shall provide evidence reasonably satisfactory to Landlord
that Tenant’s insurance, as described in Section 11.1 - Tenant’s Insurance of the Lease, shall be in effect as of
the time of such entry.  Such permission
may be revoked at any time upon reasonable cause upon twenty-four (24) hours’
notice, and Tenant and its Representatives shall not interfere with Landlord or
Landlord’s contractor in completing the Building or the Tenant Improvements.

 

Tenant agrees that
Landlord shall not be liable in any way for any injury, loss or damage which
may occur to any of Tenant’s property placed upon or installed in the Premises
prior to the Commencement Date, the same being at Tenant’s sole risk, and
Tenant shall be liable for all 

 

3

 

injury, loss or damage to
persons or property arising as a result of such entry into the Premises by
Tenant or its Representatives.

 

4.                                      Ownership of Tenant Improvements. 
All Tenant Improvements, whether installed by Landlord or Tenant, shall
become a part of the Premises, shall be the property of Landlord and, subject
to the provisions of the Lease, shall be surrendered by Tenant with the
Premises, without any compensation to Tenant, at the expiration or termination
of the Lease in accordance with the provisions of the Lease.

 

4

 

EXHIBIT B-1

 

ATTACHED TO AND
FORMING A PART OF

LEASE AGREEMENT

DATED AS OF MARCH 9,
2010

BETWEEN

MINNESOTA
INDUSTRIAL PROPERTIES LIMITED PARTNERSHIP, AS LANDLORD,

AND

MOCON, INC., AS
TENANT (“LEASE”)

 

FINAL COST
ESTIMATE

 

(see attached 5
pages)

 

1

 

 

February 22th, 2010 [revised lease 2.24.10]

 

Mr. Adam Warden

Ryan Companies US, INC.

50 South Tenth Street, Suite 300

Minneapolis, MN 55403-2012

 

RE: Mocon @ Northland IV.

 

Dear Mr. Warden,

 

In accordance with the documents issued by DE Design
including Bulletin #1, #2 & #3, we propose to complete the work as shown
for the sum of:

 

	
  Final Clean

  	
   

  	
  $

  	
  8,500

  	
   

  
	
  Site Demo  [Exterior Wall] - not in scope

  	
   

  	
  omitted

  	
   

  
	
  Site Demo
  [Exterior Trellis, incl spring EFIS patch & Repaint] - not in scope

  	
   

  	
  omitted

  	
   

  
	
  New Exterior
  Exit Door [cut, patch & Alum Door to match]

  	
   

  	
  in below

  	
   

  
	
  Interior
  Demolition

  	
   

  	
  $

  	
  22,705

  	
   

  
	
  Site Excavation

  	
   

  	
  $

  	
  8,000

  	
   

  
	
  Exterior Stoop @
  Sidewalk at Front Entry

  	
   

  	
  $

  	
  6,500

  	
   

  
	
  Landscaping
  Repairs @ new front entry and Prax-Air Pad

  	
   

  	
  $

  	
  1,000

  	
   

  
	
  Interior Fence @
  Loading Docks - by tenant

  	
   

  	
  omitted

  	
   

  
	
  Add for Overhead
  Door Demo

  	
   

  	
  $

  	
  480

  	
   

  
	
  Dock Leveler
  Infill with sand and concrete

  	
   

  	
  $

  	
  2,000

  	
   

  
	
  Add Steel Stair,
  Painted at Removed Dock Door

  	
   

  	
  $

  	
  7,500

  	
   

  
	
  Millwork

  	
   

  	
  $

  	
  12,450

  	
   

  
	
  Carpentry
  [Millwork , D/F/H Install, Rough & Finish Included]

  	
   

  	
  $

  	
  24,690

  	
   

  
	
  Doors, Frames
  & Hardware [Reuse to greatest extent possible, no touch-up of reused]

  	
   

  	
  $

  	
  19,585

  	
   

  
	
  Glass &
  Glazing - omitted sidelights at offices

  	
   

  	
  $

  	
  4,500

  	
   

  
	
  Aluminum @
  Glazing at overhead door

  	
   

  	
  $

  	
  3,500

  	
   

  

 

	
  GREINER
  CONSTRUCTION

  	
   

  	
  PHONE

  	
   

  	
  FAX

  
	
  Northstar
  Center West, 625 Marquette Avenue, Suite 640, Minneapolis, MN 55402

  	
   

  	
  612.338.1696

  	
   

  	
  612.338.1892

  

 

2

 

	
  Drywall

  	
   

  	
  $

  	
  90.500

  	
   

  
	
  Infill windows
  looking into labs

  	
   

  	
  NA

  	
   

  
	
  Add Insulation
  at offices

  	
   

  	
  $

  	
  4,000

  	
   

  
	
  New Tenant
  Demising Wall

  	
   

  	
  by Alt

  	
   

  
	
  Top-off Existing
  Wall at Offices to be demising wall

  	
   

  	
  by Alt

  	
   

  
	
  Tape & Sand Finishes on Backside of
  Demising Wall

  	
   

  	
  $

  	
  by alt

  	
   

  
	
  Ceramic Tile
  [includes ceramic floor not indicated on plans]

  	
   

  	
  $

  	
  9,000

  	
   

  
	
  Acoustic
  Ceilings [patch existing, new in all labs & training]

  	
   

  	
  $

  	
  23,000

  	
   

  
	
  EFIS In-fills at
  Removed Louvers

  	
   

  	
  $

  	
  1,500

  	
   

  
	
  Painting
  [offices]

  	
   

  	
  $

  	
  37,186

  	
   

  
	
  Painting [new
  walls in manufacturing]

  	
   

  	
  in above

  	
   

  
	
  Flooring [new
  carpet throughout office area, VCT in labs]

  	
   

  	
  $

  	
  90,000

  	
   

  
	
  Floor patch and
  leveling

  	
   

  	
  $

  	
  4,000

  	
   

  
	
  Toilet
  Accessories & Partitions

  	
   

  	
  $

  	
  2,600

  	
   

  
	
  [5] Projection
  Screens

  	
   

  	
  Omitted

  	
   

  
	
  Fire Protection

  	
   

  	
  $

  	
  13,200

  	
   

  
	
  Plumbing

  	
   

  	
  $

  	
  46,000

  	
   

  
	
  Med-Gas 6 Air
  Piping [Terminating B’ AFF]

  	
   

  	
  $

  	
  65,000

  	
   

  
	
  HVAC [only
  additional equipment are [2] exhaust fans at restrooms & [1] transfer fan
  @ Server]

  	
   

  	
  $

  	
  68,900

  	
   

  
	
  Separate Gas
  Meter [Separation of MOCON space ONLY]

  	
   

  	
  by Alt

  	
   

  
	
  Electrical

  	
   

  	
  $

  	
  110,000

  	
   

  
	
  Electrical [cost
  to separate Mocon only from the existing utilities]

  	
   

  	
  by Alt

  	
   

  
	
  Fire Alarm Rework [Allowance]

  	
   

  	
  $

  	
  4,000

  	
   

  
	
  General
  Conditions

  	
   

  	
  $

  	
  44,329

  	
   

  
	
  Permit Fee

  	
   

  	
  $

  	
  10,400

  	
   

  
	
  Fee

  	
   

  	
  $

  	
  38,800

  	
   

  
	
  Subtotal

  	
   

  	
  $

  	
  783,825

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Alternates agree
  to at the 2-24.10 meeting

  	
   

  	
   

  	
   

  
	
  Supply
  non-structural lid at compressor room

  	
   

  	
  Add: $1,200

  	
   

  
	
  Deduct to go to
  $18yd [material] carpet squares

  	
   

  	
  Deduct: $12,000

  	
   

  
	
  Provide
  Excavation, Concrete, Fencing and Paint for “Prax-Air”

  	
   

  	
  Add: $18,500

  	
   

  
	
  Add Trash
  Enclosure [allow. Block & Conc. $8k, Excavation $4k, Gate $2k, Steel $3k]

  	
   

  	
  Add: $17,000

  	
   

  
	
  VE design
  lighting to meet “office” lighting standard foot-candles

  	
   

  	
  Deduct: $6,600

  	
   

  
	
  Alternates
  Subtotal

  	
   

  	
  Net: $18,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Of Tenant Expenses

  	
   

  	
  $

  	
  801,925.00

  	
   

  

 

3

 

	
  Owner paid
  items:

  	
   

  	
   

  	
   

  
	
  Build new
  demising wall -

  	
   

  	
  Add: $6,500.00

  	
   

  
	
  Top off existing
  demising wall at offices

  	
   

  	
  Add: $4,000.00

  	
   

  
	
  Separate Gas for
  Mocon from remaining building

  	
   

  	
  Add: $3,000.00

  	
   

  
	
  Rock &
  Insulate Non-Tenant Side of Demising Wall [No Taping or paint included]

  	
   

  	
  Add: $8,000.00

  	
   

  
	
  Separate
  Electrical from remainder of building

  	
   

  	
  Add: $40,160.00

  	
   

  
	
  Demo existing
  low voltage cabling only

  	
   

  	
  Add: $7,400

  	
   

  
	
  Total of Owner
  Paid Items

  	
   

  	
  $

  	
  69,060.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total of All Project Commitments

  	
   

  	
  $

  	
  870,985.00

  	
   

  

 

Voluntary Alt See
list above:

 

	
  Add [2] auto-door openers at existing main entry
  doors

  	
   

  	
  Add: $5,000.00

  
	
  Paint all existing warehouse walls

  	
   

  	
  Add: $3,600.00

  
	
  Restain existing doors that are reused

  	
   

  	
  Add: $60 ea - TBO

  
	
  Provide Med Gas 31 terminations at each various
  bench locations

  	
   

  	
  Add: $22,000

  
	
  Add to our proposal $1,000 per day liquidated
  damages past June 1st

  	
   

  	
  Add: $25,000

  
	
  Server room [Add 2-ton ductless in lieu of exhaust
  fan]

  	
   

  	
  Add: $8,600

  
	
  Install New Appliances only. Supply by others. Does
  not include Vending

  	
   

  	
  Add: $1,200

  
	
  Add for Two card reader locations [each additional
  $1,500]

  	
   

  	
  Add: $8,000

  
	
  Retape yellow outline on floor around electrical
  panels

  	
   

  	
  Add: $300

  

 

Clarifications:

All work is to be completed during
normal working hours.

Does not include any sinks, drains or water not shown

Does not include connection or power to relocated equip.
unless specifically indicated on plans.

Does not include SAC/WAC costs

Ceillings Std 2’x 4’ grid with USG #2310 or Armstrong
Fine Fissured 1729 at lab spaces

Excludes repair to existing mechanical and electric systems

Pricing is based on current drawings issued to ALL
bidders. Pricing does not include any prior information whether known or
unknown, if not included on plans or bulletins.

Pricing does not include Prax-Air products, connections,
wiring, alarms, piping of any kind.

We do not include Voice Data, Security or low voltage wiring
other then “ring and Strings"

We do include revisions to the fire
alarm system [by allowance in
bid]. Overages in budget due to City  and/or
Ryan Companies requirements will result in additional charges.

 

4

 

Meter separation design will need to be approved by Xcel
Energy.

Removal of existing Data Cabling is added by alternate

Removal, repairs and or reuse of security, card readers or
speaker system is not included

Change Order Mark-up to be 5% OH&P and
8% General Conditions

We exclude the supply and installation of eye wash stations.
Code is based on materials and location information with which we were not
provided.

We do not include soil corrections for exterior site
conditions

We do not include and sheeting, shoring or underpinning for
exterior excavations to preserve existing conditions.

The building power will be interrupted during the meter work. We have
not included costs, such as a generator to keep the current tenant powered. 

Does not include power, backing, wall cutting or patching
for A/V vendor work. Other than Bulletin #1

 

Base Bid: Gas  and Compressed Air requirements  Per D/E
Design Bulletin #2

 

	
  Test Lab

  	
   

  	
   

  
	
  Gas Drops

  	
   

  	
  Qty 5

  
	
  N2

  	
   

  	
  Qty 4

  

 

	
  Engineering Lab

  	
   

  	
   

  
	
  Gas Drops

  	
   

  	
  Qty 3

  
	
  Air Drops

  	
   

  	
  Qty 3

  

 

	
  Film Lab

  	
   

  	
   

  
	
  Gas Drops

  	
   

  	
  Qty 1

  

 

	
  Manufacturing Lab

  	
   

  	
   

  
	
  Gas Drops

  	
   

  	
  Qty 2

  
	
  Air Drops

  	
   

  	
  Qty 1

  

 

	
  Demo Lab

  	
   

  	
   

  
	
  Gas Drops

  	
   

  	
  Qty 1

  
	
  Air Drops

  	
   

  	
  Qty 1

  

 

	
  Assembly WHSE

  	
   

  	
   

  
	
  Air Drops

  	
   

  	
  Qty 6

  
	
  N2 Drops

  	
   

  	
  Qty 1

  

 

	
  Test Area

  	
   

  	
   

  
	
  Gas Drops

  	
   

  	
  Qty 20

  
	
  Air Drops

  	
   

  	
  Qty 6

  

 

5

 

Base Bid
Electrical Scope

 

·Electrical
permit

·General
demo as required including removal of equipment per note 7

·Relocate

212
2x4 fixtures

7-Exits

1-Electrical panel in office area 

·Furnish
and install

202-2x4
fixtures

7-Exits

52-Single
pole switches

200-Duplex
receptacles

5-Ceiling
receptacles for projectors

13-GFI
receptacles

12-Power
pole base feeds for office furniture

5-Floorboxes
for conference rooms

50-Phone/Data
openings

8-Cord
drops with duplex receptacles

33-Cord drops with 4plex receptacles 

·Wire
and connect 4-ovens

 

 

Thank you for the
opportunity to provide you with the proposal. If you have any questions or
comments, please feel free to call.

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
  /s/ Kory Carlston

  	
   

  
	
  Kory Carlston LEED AP

  	
   

  
	
  Project Manager

  	
   

  

 

6

 

EXHIBIT C

 

ATTACHED TO AND
FORMING A PART OF

LEASE AGREEMENT

DATED AS OF MARCH 9,
2010

BETWEEN

MINNESOTA
INDUSTRIAL PROPERTIES LIMITED PARTNERSHIP, AS LANDLORD,

AND

MOCON, INC., AS
TENANT (“LEASE”)

 

BUILDING RULES

 

The following Building Rules are
additional provisions of the foregoing Lease to which they are attached.  The capitalized terms used herein have the
same meanings as these terms are given in the Lease.

 

1.                                      Use of Common Areas. 
Tenant will not obstruct the sidewalks, exits, or entrances of the Building
or the other Common Areas of the Project, and Tenant will not use the Common
Areas for any purpose other than ingress and egress to and from the Premises or
such other intended uses of the Common Areas. 
Landlord reserves the right to control and prevent access to the Common
Areas of any person whose presence, in Landlord’s reasonable opinion, would be
prejudicial to the safety, reputation and interests of the Building and its
tenants, provided such person is not an employee, agent or visitor of Tenant
and under Tenant’s reasonable control.

 

2.                                      No Access to Roof. 
Tenant has no right of access to the roof of the Building and will not
install, repair or replace any antenna, aerial, aerial wires, fan,
air-conditioner or other device on the roof of the Building, without the prior
written consent of Landlord.  Any such
device installed without such written consent is subject to removal at Tenant’s
expense without notice at any time.  In
any event Tenant will be liable for any damages or repairs incurred or required
as a result of its installation, use, repair, maintenance or removal of such
devices on the roof and agrees to indemnify and hold harmless Landlord from any
liability, loss, damage, cost or expense, including reasonable attorneys’ fees,
arising from any activities of Tenant or of Tenant’s Representatives on the
roof of the Building, as required pursuant to the indemnification provisions of
the Lease.

 

3.                                      Signage.  No sign,
placard, picture, name, advertisement or notice visible from the exterior of
the Premises will be inscribed, painted, affixed or otherwise displayed by
Tenant on or in any part of the Building without the prior written consent of
Landlord.  Landlord reserves the right to
adopt and furnish Tenant with general guidelines relating to signs in or on the
Building.  All approved signage will be
inscribed, painted or affixed at Tenant’s expense by a person approved by
Landlord, which approval will not be unreasonably withheld.

 

4.                                      Prohibited Uses. 
The Premises will not be used for lodging or for the sale of goods to
the general public.  Tenant will not
permit any food preparation on the Premises except that Tenant may use
Underwriters’ Laboratory approved equipment for brewing coffee, tea, hot 

 

1

 

chocolate and similar
beverages and heating food so long as such use is in accordance with all
applicable federal, state and city laws, codes, ordinances, rules and
regulations.

 

5.                                      Keys and Locks. 
Landlord will furnish Tenant, free of charge, two keys to each door or
lock in the Premises.  Landlord may make
a reasonable charge for any additional or replacement keys.  Tenant will not duplicate any keys, alter any
locks or install any new or additional lock or bolt on any door of its Premises
or on any other part of the Building without the prior written consent of
Landlord and, in any event, Tenant will provide Landlord with a key for any
such lock.  On the termination of the
Lease, Tenant will deliver to Landlord all keys to any locks or doors in the
Building which have been obtained by Tenant.

 

6.                                      Nuisances and Dangerous Substances. 
Tenant will not conduct itself or permit Tenant’s Representatives or
Visitors to conduct themselves, in the Premises or anywhere on or in the
Property in a manner which is unreasonably offensive or unduly annoying to any
other tenant or Landlord’s property managers. 
Tenant will not install or operate any phonograph, radio receiver,
musical instrument, or television or other similar device in any part of the
Common Areas and shall not operate any such device installed in the Premises in
such manner as to unreasonably disturb or annoy other tenants of the
Building.  Except as otherwise permitted
under the Lease, Tenant will not use or keep in the Premises or the Property
any kerosene, gasoline or other combustible fluid or material other than
limited quantities thereof reasonably necessary for the maintenance of office
equipment, or, without Landlord’s prior written approval, use any method of
heating or air conditioning other than that supplied by Landlord.  Tenant will not permit or suffer the Premises
to be occupied or used in a manner which would reasonably be offensive or
objectionable to Landlord or other occupants of the Building by reason of
noise, odors or vibrations, or interfere in any way with other tenants or those
having business therein.  Tenant will not
bring or keep any animals, except Service Animals, in or about the Premises or
the Property.

 

7.                                      Building Name and Address. 
Without Landlord’s prior written consent, Tenant will not use the name
of the Building in connection with or in promoting or advertising Tenant’s
business except as Tenant’s address.

 

8.                                      Window Coverings. 
Other than interior window blinds, no curtains, draperies, shutters,
shades, awnings, screens or other coverings, window ventilators, hangings,
decorations or similar equipment shall be attached to, hung or placed in, or
used in or with any window of the Building without the prior written consent of
Landlord.

 

9.                                      Floor Coverings. 
Tenant will not lay or otherwise affix linoleum, tile, carpet or any
other floor covering to the floor of the Premises in any manner except as
approved in writing by Landlord.  Tenant
will be liable for the cost of repair of any damage resulting from the violation
of this rule or the removal of any floor covering by Tenant or its
contractors, employees or invitees.

 

10.                               Wiring and Cabling Installations. 
Landlord will direct Tenant’s electricians and other vendors as to where
and how data, telephone, and electrical wires and cables are to be
installed.  No boring or cutting for
wires or cables will be allowed without the prior written consent of Landlord,
not to be unreasonably withheld, conditioned or delayed.  The location of burglar alarms, smoke
detectors, telephones, call boxes and other office equipment affixed to the 

 

2

 

Premises shall be subject
to the written approval of Landlord, not to be unreasonably withheld,
conditioned or delayed.

 

11.                               Plumbing Facilities. 
The toilet rooms, toilets, urinals, wash bowls and other apparatus shall
not be used for any purpose other than that for which they were constructed and
no foreign substance of any kind whatsoever shall be disposed of therein.  Tenant will be liable for any breakage, stoppage or
damage resulting from the violation of this rule by Tenant, its employees
or invitees.

 

12.                               Refuse.  Except as
otherwise permitted in the Lease, Tenant shall store all Tenant’s trash and
garbage within the Premises or in other facilities designated by Landlord for
such purpose.  Tenant shall not place in
any trash box or receptacle any material which cannot be disposed of in the
ordinary and customary manner of removing and disposing of trash and garbage in
the city in which the Building is located without being in violation of any law
or ordinance governing such disposal. 
All trash and garbage removal shall be made in accordance with
directions issued from time to time by Landlord, only through such Common Areas
provided for such purposes and at such times as Landlord may designate.  Tenant shall comply with the requirements of
any recycling program adopted by Landlord for the Building. Except as otherwise
permitted in the Lease, Tenant understands and acknowledges that its trash bins
cannot currently be located or housed outside the Building and Tenant must keep
them in its Premises until collection by Tenant’s refuse/recycling vendor.

 

13.                               Soliciting.  Canvassing,
peddling, soliciting and distribution of handbills or any other written
materials in the Building are prohibited, and Tenant will cooperate to prevent
the same.

 

14.                               Parking.  Tenant will
use, and cause Tenant’s Representatives and Visitors to use, any parking spaces
to which Tenant is entitled under the Lease in a manner consistent with
Landlord’s directional signs and markings in the Parking Facility.  Specifically, but without limitation, Tenant
will not park, or permit Tenant’s Representatives or Visitors to park, in a
manner that impedes access to and from the Building or the Parking Facility or
that violates space reservations for handicapped drivers registered as
such.  Landlord may use such reasonable
means as may be necessary to enforce the directional signs and markings in the
Parking Facility, including but not limited to towing services, and Landlord
will not be liable for any damage to vehicles towed as a result of
non-compliance with such parking regulations.

 

15.                               Fire, Security and Safety Regulations. 
Tenant will comply with all safety, security, fire protection and
evacuation measures and procedures reasonably established by Landlord or any
governmental agency.

 

16.                               Responsibility for Theft. 
Tenant assumes any and all responsibility for protecting the Premises
from theft, robbery and pilferage, which includes keeping doors locked and
other means of entry to the Premises closed.

 

17.                               Sales and Auctions. 
Tenant will not conduct or permit to be conducted any sale by auction
in, upon or from the Premises or elsewhere in the Property, whether said
auction be voluntary, involuntary, pursuant to any assignment for the payment
of creditors or pursuant to any bankruptcy or other insolvency proceeding.

 

3

 

18.                               Waiver of Rules. 
Landlord may waive any one or more of these Building Rules for the
benefit of any particular tenant or tenants, but no such waiver by Landlord
will be construed as a waiver of such Building Rules in favor of any other
tenant or tenants nor prevent Landlord from thereafter enforcing these Building
Rules against any or all of the tenants of the Building.

 

19.                               Effect on Lease. 
These Building Rules are in addition to, and shall not be construed
to in any way modify or amend, in whole or in part, the terms, covenants,
agreements and conditions of the Lease. 
Violation of these Building Rules constitutes a failure to fully
perform the provisions of the Lease, as referred to in Section 15.1 - “Events of Default”.

 

20.                               Intentionally deleted.

 

21.                               Additional and Amended Rules. 
Landlord reserves the right to rescind or amend these Building Rules and/or
adopt any other and reasonable non-discriminating rules and regulations as
in its judgment may from time to time be needed for the safety, care and
cleanliness of the Building and for the preservation of good order therein.

 

4

 

EXHIBIT D

 

ATTACHED TO AND FORMING A PART OF

LEASE AGREEMENT

DATED AS OF MARCH 9, 2010

BETWEEN

MINNESOTA
INDUSTRIAL PROPERTIES LIMITED PARTNERSHIP, AS LANDLORD,

AND

MOCON, INC., AS TENANT (“LEASE”)

 

ADDITIONAL PROVISIONS RIDER

 

35.                               EXTENSION OF TERM.  Landlord
grants to Tenant the option to extend the Initial Term of this Lease (“Extension Option”) for one (1) additional period of
five (5) years (“Extension Term”),
subject to and upon the following conditions:

 

35.1                        The Extension Term will commence as of the expiration of the Initial
Term of this Lease.

 

35.2                        Tenant will give irrevocable written notice of exercise to Landlord not
less than one hundred eighty (180) days and not more than three hundred sixty
five (365) days prior to the commencement of the Extension Term, time being of
the essence.

 

35.3                        The Extension Term will be upon all of the terms and conditions of this
Lease, except that Base Rent will be equal to the Market Rate for the Extension
Term and the Premises will be leased to Tenant in its “as-is” condition and the
terms of Exhibit B shall not apply. The determination of the Market
Rate will be made in accordance with the terms of Section 3.1(a) of
this Lease.

 

35.4                        No Event of Default beyond any applicable notice and cure period shall
be in existence at either the time of exercise or at any time prior to
commencement of the Extension Term.

 

36.                               PERMITTED TRASH ENCLOSURE. Notwithstanding anything in the Lease to the
contrary, Tenant may, at its sole cost and expense, subject to approval by the
City and applicable Laws, maintain up to two (2) trash dumpsters in the
rear exterior area of the Building immediately adjacent to the loading dock
area of the Premises. To the extent the City or applicable Laws require that
the dumpsters be housed or stored within an enclosure or be screened in some
other manner, Tenant shall, at its sole cost and expense (except as otherwise
provided in the final sentence of this Section 36), construct, install,
maintain, and repair such trash enclosure and/or screening in compliance with
applicable Laws. Prior to obtaining City approval and prior to construction and
installation of such enclosure or screening, Tenant shall obtain the prior
written consent of Landlord, not to be unreasonably withheld, conditioned or
delayed, of Tenant’s detailed plans and specifications for such enclosure
and/or screening, upon approval by.  The
area where Tenant’s dumpsters and permitted trash enclosure is located shall be
treated the same as 

 

1

 

the Premises for all purposes under this Lease, provided that Tenant
shall be responsible for all maintenance, repair, restoration and insurance
obligations pertaining to same. Upon expiration or earlier termination of this
Lease, Tenant shall remove its dumpsters and the permitted trash enclosure and
restore the area where same were located to substantially the same condition
that existed on the date of this Lease, reasonable wear and tear excepted.
Notwithstanding the foregoing to the contrary, Tenant may include the hard
costs of constructing the permitted trash enclosure in the Additional
Contribution (defined in Exhibit B of this Lease).

 

2

 

EXHIBIT E

 

ATTACHED TO AND
FORMING A PART OF

LEASE AGREEMENT

DATED AS OF MARCH 9,
2010

BETWEEN

MINNESOTA
INDUSTRIAL PROPERTIES LIMITED PARTNERSHIP, AS LANDLORD,

AND

MOCON, INC., AS
TENANT (“LEASE”)

 

Tenant’s Hazardous
Materials List

 

Hazardous
Materials Inventory Statement

 

	
  Tenant:

  	
  Mocon

  
	
  Building:

  	
  Northland IV

  
	
  Address:

  	
  9300 75th Avenue

  
	
   

  	
  Brooklyn Park, MN 55428

  

 

	
  Hazard Classification

  	
   

  	
  Chemical

  Common / Trade Name

  	
   

  	
  Chemical
  Abstract

  Service No. (CAS)

  	
   

  	
  Physical
  State

  	
   

  	
  Quantity

  Stored

  	
   

  	
  In-Use

  (open)

  	
   

  	
  In-Use

  (closed)

  	
   

  	
  Total Quantity

  of Product

  	
   

  	
  Comments

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Flammable Liquids:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class I-A

  	
   

  	
  Auto Fuel (gasoline)

  	
   

  	
  86290-81 -5

  	
   

  	
  liquid

  	
   

  	
  1.0 gallons

  	
   

  	
  1.0 gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class I-B

  	
   

  	
  Methanol

  	
   

  	
  67-56-1

  	
   

  	
  liquid

  	
   

  	
  15.0 gallons

  	
   

  	
  5.0 gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class I-B

  	
   

  	
  Acetone

  	
   

  	
  67-64-1

  	
   

  	
  liquid

  	
   

  	
  5.0 gallons

  	
   

  	
  5.0 gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class I-B

  	
   

  	
  Isopropyl Alcohol

  	
   

  	
  67-63-0

  	
   

  	
  liquid

  	
   

  	
  5.0 gallons

  	
   

  	
  5.0 gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class I-C

  	
   

  	
  none

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Flammable Liquids:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  26 gallons

  	
   

  	
  16 gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Combustible liquids:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class II

  	
   

  	
  none

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class III-A

  	
   

  	
  none

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class III-B

  	
   

  	
  Motor Oil

  	
   

  	
  64742650

  	
   

  	
  liquid

  	
   

  	
  5.0 gallons

  	
   

  	
  5.0 gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class III-B

  	
   

  	
  Propylene Glycol

  	
   

  	
  57-55-6

  	
   

  	
  liquid

  	
   

  	
  55.0 gallons

  	
   

  	
  5.0 gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Combustible Liquids:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  60
  gallons

  	
   

  	
  10
  gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Health Hazards:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Carcinogen

  	
   

  	
  Solder with Lead

  	
   

  	
  7439-92-1

  	
   

  	
  solid

  	
   

  	
  2.0 lbs.

  	
   

  	
  2.0 lbs.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Carcinogen

  	
   

  	
  Cadmium Impreg. Nickel

  	
   

  	
  7440-43-9

  	
   

  	
  solid

  	
   

  	
  100 lbs.

  	
   

  	
  100 lbs.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Corrosive

  	
   

  	
  Potassium Hydroxide
  Solution

  	
   

  	
  1310-58-3

  	
   

  	
  liquid

  	
   

  	
  30 gallons

  	
   

  	
  5 gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  17% solution

  	
   

  
	
  Corrosive

  	
   

  	
  Ammonium Hydroxide

  	
   

  	
  1336-21-6

  	
   

  	
  liquid

  	
   

  	
  1.0 gallon

  	
   

  	
  1.0 gallon

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Corrosives:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  31 gallons

  	
   

  	
  6 gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Highly Toxic

  	
   

  	
  Mercury (thermometers)

  	
   

  	
  7439-97-6

  	
   

  	
  liquid

  	
   

  	
  0.1 lbs.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Toxic

  	
   

  	
  Cadmium Impregnated
  Nickel sheet, containing:

  	
   

  	
  solid

  	
   

  	
  100 lbs

  	
   

  	
  100 lbs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  -
  cadmium

  	
   

  	
  7440-43-9

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  -
  nickel

  	
   

  	
  7440-02-0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

	
  Hazard Classification

  	
   

  	
  Chemical

  Common / Trade Name

  	
   

  	
  Chemical
  Abstract

  Service No. (CAS)

  	
   

  	
  Physical
  State

  	
   

  	
  Quantity

  Stored

  	
   

  	
  In-Use

  (open)

  	
   

  	
  In-Use

  (closed)

  	
   

  	
  Total Quantity

  of Product

  	
   

  	
  Comments

  	
   

  
	
  Irritants

  	
   

  	
  Propylene
  Glycol

  	
   

  	
  57-55-6

  	
   

  	
  liquid

  	
   

  	
  55.0
  gallons

  	
   

  	
  5.0
  gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Irritants

  	
   

  	
  Acetone

  	
   

  	
  67-64-1

  	
   

  	
  liquid

  	
   

  	
  5.0
  gallons

  	
   

  	
  5.0
  gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sensitizers

  	
   

  	
  Isopropyl
  Alcohol

  	
   

  	
  67-63-0

  	
   

  	
  liquid

  	
   

  	
  5.0
  gallons

  	
   

  	
  5.0
  gallons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Radioactives

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
  Cryogenic Nitrogen

  	
   

  	
  7727-37-9

  	
   

  	
  liquid/gas

  	
   

  	
  3000 gals.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  outdoor storage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Plastics:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type
  A

  	
   

  	
  ABS
  (acrylonitrile-butadiene-styrene copolymer)

  	
   

  	
  9003-56-9

  	
   

  	
  solid

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type
  A

  	
   

  	
  Polyurethane

  	
   

  	
   

  	
   

  	
  solid

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type
  A

  	
   

  	
  Polystyrene

  	
   

  	
  9003-53-6

  	
   

  	
  solid

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type
  A

  	
   

  	
  TPE (thermoplastic
  elastomer)

  	
   

  	
   

  	
   

  	
  solid

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Type A
  Plastics:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  800 lbs.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type
  B

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type
  C

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Physical Hazards:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Combustible
  Fiber

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cryogenic,
  Flammable

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cryogenic,
  Oxidizing

  	
   

  	
  Cryogenic Oxygen

  	
   

  	
  7782-44-7

  	
   

  	
  liquid/gas

  	
   

  	
  500 gals.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  outdoor storage

  	
   

  
	
  Explosives

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Flammable
  Solids

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Flammable
  Gas

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Organic
  Peroxide

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Oxidizer

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Oxidized
  - Gas

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pyrophoric

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Unstable
  (reactive)

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Water
  Reactive

  	
   

  	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

2

 

EXHIBIT F

 

ATTACHED TO AND FORMING A PART OF

LEASE AGREEMENT

DATED AS OF MARCH 9, 2010

BETWEEN

MINNESOTA
INDUSTRIAL PROPERTIES LIMITED PARTNERSHIP, AS LANDLORD,

AND

MOCON, INC., AS TENANT (“LEASE”)

 

NON-DISTURBANCE, ATTORNMENT,
ESTOPPEL AND SUBORDINATION AGREEMENT

 

THIS NON-DISTURBANCE, ATTORNMENT, ESTOPPEL AND SUBORDINATION AGREEMENT (this “Agreement”)
is made and entered into as of March 9,
2010, by, between and among WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association as Administrative and Collateral Agent (the “Agent” or “Beneficiary”)
for certain Lenders (the “Lenders”) who are or become parties who become
parties to that certain Amended and Restated Credit Agreement dated June 5,
2006, as amended by that certain First Amendment to Loan Documents dated as of August 22,
2006, that certain Second Amendment to Loan Documents dated as of March 29,
2007, and that certain Third Amendment to Loan Documents dated April 25,
2008, and as affected by that certain Extension Recognition Agreement dated June 5,
2009 and a certain Restructuring Consent Letter dated June 23, 2009 and by
a certain Post Closing Agreement June 23, 2009 and as from time to time
hereafter amended or modified, by and between Agent and the Lenders and EBREF
Holding Company, LLC, as Borrower (the “Credit Agreement”) and MOCON, INC., a Minnesota corporation (“Lessee”), and MINNESOTA INDUSTRIAL PROPERTIES LIMITED PARTNERSHIP (“Lessor”).

 

R E C I T A L S:

 

A.                                   Lenders are the
owners and holders, or expect to be the owners and holders, of certain
Promissory Notes dated as of June 5, 2006, (the “Notes”) in the aggregate
principal sum of One Hundred Seventy Million Dollars ($170,000,000.00), which are guaranteed by a certain Payment Guaranty
Agreement dated as of June 5, 2006, which Payment Guaranty Agreement is to
be joined in by the Lessor and is secured or to be secured by a Indemnity of
Trust, Security Agreement and Assignment of Leases and Rents and Fixture Filing
(the “Mortgage”)  and an Indemnity
Assignment of Leases and Rents (the “Assignment of Rents”), each to be entered
into on or about the date of this Agreement, which Mortgage constitutes a lien
or encumbrance on that certain real property more particularly described in the
attached EXHIBIT A (the “Property”).

 

B.                                     Lessee
is the holder of a leasehold estate covering a portion of the Property (the “Demised
Premises”) pursuant to the terms of that certain Lease Agreement dated March 9,
2010, 

 

1

 

and executed by Lessee and Lessor (the “Lease”).
A copy of the Lease, certified as true and correct by Lessee, has previously
been delivered to Beneficiary and has not been amended, modified or terminated
as of the date hereof.

 

C.                                     Lessee, Lessor
and Beneficiary in its capacity as Collateral Agent and Administrative Agent
under the Credit Agreement desire to confirm their understanding with respect
to the Lease, the Mortgage and the Assignment of Rents.

 

AGREEMENT

 

1.  So
long as Lessee is not in default (beyond any period given Lessee to cure such
default) in the payment of rent or in the performance of any of the terms,
covenants or conditions of the Lease on Lessee’s part to be performed, Lessee’s
possession and occupancy of the Demised Premises shall not be interfered with
or disturbed by Beneficiary during the term of the Lease or any extension
thereof duly exercised by Lessee.

 

2.  Lessee
hereby consents to the assignment by Lessor to Beneficiary of the Lease, as set
forth in the Deed of Trust and the Assignment of Rents. If the interests of
Lessor shall be transferred to and/or owned by Beneficiary by reason of
judicial foreclosure, power-of-sale foreclosure or other proceedings brought by
Beneficiary, or by any other manner, including, but not limited to, the
institution of a receiver for the Property or Beneficiary’s exercise of its
rights under the Assignment of Rents, Lessee shall be bound to Beneficiary
under all of the terms, covenants and conditions of the Lease for the balance
of the remaining term thereof and any extension thereof duly exercised by
Lessee, with the same force and effect as if Beneficiary were the lessor under
the Lease, and Lessee does hereby attorn to Beneficiary as its lessor, said
attornment to be effective and self-operative without the execution of any further
instruments on the part of any of the parties hereto immediately upon
Beneficiary’s succeeding to the interest of the lessor under the Lease;
provided, however, that Lessee shall be under no obligation to direct its
payment of rent to Beneficiary until Lessee receives written notice from
Beneficiary to do so. Lessee may rely upon any such written notice received
from Beneficiary and the payment of Rent to Beneficiary after receipt of such
notice shall satisfy Lessee’s obligations therefore under the Lease.  The respective rights and obligations of
Lessee and Beneficiary upon such attornment, to the extent of the then
remaining balance of the term of the Lease and any such extension, shall be and
are the same as now set forth therein, as modified hereby, it being the
intention of the parties hereto for this purpose to incorporate the Lease in
this Agreement by reference with the same force and effect as if set forth in
full herein.

 

3.  If
Beneficiary shall succeed to the interest of the landlord under the Lease,
Beneficiary shall, subject to the last sentence of this Section 3, be
bound to Lessee under all of the terms, covenants and conditions of the Lease;
provided, however, that Beneficiary shall not be:

 

(a)  Liable for
any act or omission of any prior lessor (including Lessor) or for any monetary
damages incurred by Lessee in connection therewith or liable for any act or
omission prior to Beneficiary’s succession to title; or

 

2

 

(b) Subject to
any offsets, defenses or counterclaims which Lessee might have against any
prior lessor (including Lessor) or accruing prior to Beneficiary’s succession
to title; or

 

(c)  Bound by any
rent, additional rent or advance rent which Lessee might have paid for more
than the current month to any prior lessor(including Lessor) or prior to
Beneficiary’s succession to title and all such rent shall remain due and owing
notwithstanding such advance payment; or

 

(d)  Bound by any
amendment or modification of the Lease made without its consent and written
approval; or

 

(e)  Required to
restore the building or otherwise perform the obligations of Lessor under the
Lease in the event of a foreclosure of the Deed of Trust or acceptance by
Beneficiary of a deed in lieu of foreclosure, in either instance if the
building or the restoration obligations have not been fully completed prior to
the foreclosure or acceptance, provided, that if the building or other
obligations have not been performed by Beneficiary, the Tenant may give Beneficiary
a notice that it will terminate the Lease, and Beneficiary may avoid such
termination by written notice to Tenant that is agrees to restore or take such
other action necessary to remedy such lack of restoration promptly.

 

Neither Wells Fargo nor any other party who,
from time to time, shall be included in the definition of the term “Beneficiary”
hereunder shall have any liability or responsibility under or pursuant to the
terms of this Agreement after it ceases to own a fee interest in or to the
Property.

 

4. 
Subject to the terms of this Agreement (including, but not limited to,
those in Section 2 hereof, the Lease and the terms thereof are, and shall
at all times continue to be, subject and subordinate in each and every respect,
to the Deed of Trust and the terms thereof, and to any and all renewals,
modifications, extensions, substitutions, replacements and/or consolidations of
the Deed of Trust.  Nothing herein
contained shall be deemed or construed as limiting or restricting the
enforcement by Beneficiary of any of the terms, covenants, provisions or
remedies of the Deed of Trust or the Assignment of Rents, whether or not
consistent with the Lease.

 

5.  The
term “Beneficiary” shall be deemed to include Wells Fargo and all of its
successors and assigns, including anyone who shall have succeeded to Lessor’s
interest by, through or under judicial or power-of-sale foreclosure or other
proceedings brought pursuant to the Deed of Trust, or deed in lieu of such
foreclosure or proceedings, or otherwise.

 

6.  Lessor
and Lessee represent and warrant to Beneficiary as follows: (a)that the Lease
is presently in full force and effect and unmodified or changed; (b)that the
term shall commence upon Substantial Completion of the Tenant Improvements as
set forth in the Lease, and full rental will then accrue; (c) that all
conditions required under the Lease that could have been satisfied as of the
date hereof have been met; (d) that no rent under said Lease has been paid
more than thirty 

 

3

 

(30)days in advance of its due date; (e) that
no default or event, which with the giving of notice, passage of time, or both,
would constitute a default, exists under said Lease;(f) that the Lessee,
as of this date, has no charge, lien or claim of offset under said Lease or
otherwise, against rents or other charges due or to become due thereunder;(g) that
the Lease constitutes the entire agreement between the parties and that
Beneficiary shall have no liability or responsibility with respect to any
security deposit of Lessee; (h) that the only persons, firms or
corporations in possession of said leased premises or having any right to the
possession or use of said premises(other than the record owner) are those
holding under the Lease; and (i) that the Lessee has no right or interest
in or under any contract, option or agreement involving the sale or transfer of
the Demised Premises.

 

7.  In the
absence of the prior written consent of Beneficiary, Lessee agrees not to do
any of the following: (a) prepay the rent under the Lease for more than
one (1) month in advance, (b) enter into any agreement with the
Lessor to amend or modify the Lease, (c) voluntarily surrender the Demised
Premises or terminate the Lease prior to the expiration date thereof set forth
in the Lease, and (d) sublease or assign the Demised Premises.

 

8.  In the
event Lessor shall fail to perform or observe any of the terms, conditions or
agreements in the Lease, Lessee shall give written notice thereof to
Beneficiary and Beneficiary shall have the right (but not the obligation) to
cure such failure. Lessee shall not take any action with respect to such
failure under the Lease, including, without limitation, any action in order to
terminate, rescind or avoid the Lease or to withhold any rent thereunder, for a
period of thirty (30) days after receipt of such written notice by Beneficiary;
provided, however, that in the case of any default which cannot with diligence
be cured within said 30-day period, if Beneficiary shall proceed promptly to
cure such failure and thereafter prosecute the curing of such failure with
diligence and continuity, the time within which such failure may be cured shall
be extended for such period as may be necessary to complete the curing of such
failure with diligence and continuity.

 

9.  So
long as the Loan is outstanding, Lessee covenants to provide Beneficiary with
all information, including, but not limited to evidence of payment of taxes and
insurance (if Lessee is obligated for such payments under the Lease) to which
the Lessor may be entitled under the Lease, at the times and in the manner as
the same are provided to the Landlord.

 

10. So long as the Loan is outstanding,
Beneficiary or its designee may enter upon the Property at all reasonable times
to visit or inspect the Property and discuss the affairs, finances and accounts
of Lessee applicable to the Property or the Lease at such reasonable times as
Beneficiary or its designee may request.

 

11. Lessee hereby represents and warrants that
the Lease and this Agreement have been duly authorized, executed and delivered
by Lessee and constitute legal, valid and binding instruments, enforceable
against Lessee in accordance with their respective terms, except as such terms
may be limited by bankruptcy, insolvency or similar laws affecting creditors’
rights generally.

 

4

 

12. This Agreement may not be modified orally or
in any other manner than by an agreement in writing signed by the parties
hereto and their respective successors in interest. This Agreement shall inure
to the benefit of and be binding upon the parties hereto, their successors and
assigns. In the event of a conflict between the provisions of this Agreement
and the provisions of the Lease, the provisions of this Agreement shall
control.

 

13. This Agreement may be executed in several
counterparts, and all so executed shall constitute one agreement, binding on
all parties hereto, notwithstanding that all parties are not signatories to the
original or the same counterpart.

 

14. All notices or other communications required
or permitted to be given pursuant to the provisions hereof shall be in writing
and shall be considered as properly given if mailed by first class United
States mail, postage prepaid, registered or certified with return receipt
requested, or by delivering same in person to the intended addressee, or by
prepaid telegram. Notice so given in person or by telegram shall be effective
upon its deposit. Notice so given by mail shall be effective two (2) days
after deposit in the United States mail. Notice given in any other manner shall
be effective only if and when received by the addressee. For purposes of
notice, the addresses of the parties shall be:

 

	
  Lessor:

  	
  Minnesota
  Industrial Properties Limited Partnership

  
	
   

  	
  c/o Ryan
  Companies US, Inc.

  
	
   

  	
  50 South Tenth
  Street, Suite 300

  
	
   

  	
  Minneapolis MN
  55403-2012

  
	
   

  	
   

  
	
  Lessee:

  	
  Mocon, Inc.

  
	
   

  	
  9300 75th Avenue North, Suite 100

  
	
   

  	
  Brooklyn Park,
  MN 55428

  
	
   

  	
   

  
	
  Beneficiary:
  

  	
  Wells
  Fargo Bank, National Association 

  
	
   

  	
  Real
  Estate Group

  
	
   

  	
  1750
  H Street, NW, Suite 400,

  
	
   

  	
  Washington,
  D.C. 20006

  
	
   

  	
  Attention:
  Manager, Loan Administration Department

  
	
   

  	
   

  
	
  With
  a copy to:

  	
  Wells
  Fargo Bank Real Estate Group

  
	
   

  	
  420
  Montgomery Street

  
	
   

  	
  San
  Francisco, California 94111

  
	
   

  	
  Attention: Chief Credit Officer

  

 

provided, however, that any party shall have the
right to change its address for notice hereunder to any other location within
the continental United States by the giving of thirty (30) days’ notice to the
other parties in the manner set forth hereinabove.

 

5

 

[Signatures on following page]

 

6

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year first above written.

 

	
   

  	
  LESSEE:

  
	
   

  	
   

  
	
   

  	
  MOCON,
  INC.,

  
	
   

  	
  a
  Minnesota corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Darrell B. Lee

  
	
   

  	
   

  	
  Name:

  	
  Darrell
  B. Lee

  
	
   

  	
   

  	
  Title:

  	
  V.P. & CFO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  STATE OF MINNESOTA

  	
  )

  	
  ss:

  	
   

  
	
  COUNTY OF HENNEPIN

  	
  )

  	
   

  	
   

  

 

I, a Notary Public in and for the aforesaid jurisdiction,
do hereby certify that Darrell B. Lee, who is personally well known to me as,
or satisfactorily proven to be, the person named as Vice President of MOCON,
INC., in the foregoing Non-Disturbance, Attornment, Estoppel and Subordination
Agreement bearing date as of the 9th day of March, 2010, personally appeared
before me in the said jurisdiction, and by virtue of the authority vested in
him or her by said Agreement, acknowledged the same to be the act and deed of
said organization, and delivered the same as such.

 

GIVEN under my hand and official seal this 9th
day of March, 2010

 

	
   

  	
   

  	
  /s/ Congcong Luo

  
	
   

  	
   

  	
  Notary Public

  

 

My Commission Expires:  January 31, 2014

 

[SIGNATURES CONTINUED ON NEXT PAGE]

 

7

 

	
   

  	
  LESSOR:

  
	
   

  	
   

  	
   

  
	
   

  	
  MINNESOTA INDUSTRIAL PROPERTIES LIMITED PARTNERSHIP,

  
	
   

  	
  a Minnesota limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  Minnesota
  Industrial Portfolio, LLC

  
	
   

  	
  Its:  General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  EBREF Holding Company, LLC, a Delaware limited
  liability company, Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mandi L. Wedin

  
	
   

  	
   

  	
  Mandi L. Wedin

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
  STATE OF MARYLAND

  	
  )

  	
  ss:

  	
   

  
	
  COUNTY OF MONTGOMERY

  	
  )

  	
   

  	
   

  

 

This is to certify that Robert B.
Bellinger, Manager of EBREF
Holding Company, LLC, a Delaware limited liability company, , who is
personally well known to me or who identified [himself] [herself] by exhibiting
a current valid photo identification, to wit, [a
                   
                 
          drivers license, number
                 
              
        ,] [Mandi L. Wedin], personally
appeared before me in the jurisdiction set forth above, on the day and year set forth below, and stated to me
that [he][she] affixed [his] [her] signature on this page of the foregoing
document voluntarily for the purposes set forth therein as Manager of EBREF
Holding Company, LLC, as Manager of Minnesota
Industrial Portfolio, LLC, as General Partner of Minnesota Industrial Portfolio, LLC, and that he was duly
authorized to execute such document..

 

CERTIFIED this 10th day of March, 2010.

 

[PHOTOGRAPHICALLY

REPRODUCABLE SEAL]

 

	
   

  	
  /s/ Melissa Franklin

  
	
   

  	
  Notary Public

  

 

My Commission Expires: 
August 18, 2013

 

[SIGNATURES CONTINUED ON NEXT PAGE]

 

8

 

	
   

  	
  BENEFICIARY:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Liz C. Anderson

  
	
   

  	
   

  	
  Liz C. Anderson

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DISTRICT OF COLUMBIA

  	
  ) ss:

  	
   

  

 

I, a Notary Public in and for the aforesaid
jurisdiction, do hereby certify that Liz C. Anderson, who is personally well
known to me as, or satisfactorily proven to be, the person named as Vice
President of Wells Fargo Bank, National Association in the foregoing
Non-Disturbance, Attornment, Estoppel and Subordination Agreement bearing date
as of the         day of
                     ,
2010 personally appeared before me in the said jurisdiction, and being duly
authorized, acknowledged the same to be the act and deed of Wells Fargo Bank,
National Association, and delivered the same as such.

 

GIVEN under my hand and official seal this 11th
day of March, 2010.

 

 

	
   

  	
   

  	
  /s/ Diana Becerra

  
	
   

  	
   

  	
  Notary Public

  

 

 

My Commission Expires:  August 14, 2013

 

9

 

EXHIBIT A

 

LEGAL DESCRIPTION OF THE PROPERTY

 

10

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