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TRUST INDENTURE

Indenture Agreement

TRUST INDENTURE | Document Parties: CAPITAL LEASE FUNDING INC | UNIFIED GOVERNMENT OF WYANDOTTE COUNTY/KANSAS CITY, KANSAS | SECURITY BANK OF KANSAS CITY You are currently viewing:
This Indenture Agreement involves

CAPITAL LEASE FUNDING INC | UNIFIED GOVERNMENT OF WYANDOTTE COUNTY/KANSAS CITY, KANSAS | SECURITY BANK OF KANSAS CITY

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Title: TRUST INDENTURE
Governing Law: Kansas     Date: 11/14/2005

TRUST INDENTURE, Parties: capital lease funding inc , unified government of wyandotte county/kansas city  kansas , security bank of kansas city
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                                   ----------

 

                                 TRUST INDENTURE

 

                          DATED AS OF FEBRUARY 1, 2001

 

                                    ----------

 

                                     BETWEEN

 

           UNIFIED GOVERNMENT OF WYANDOTTE COUNTY/KANSAS CITY, KANSAS,

 

                                  AS THE ISSUER

 

                                       AND

 

                           SECURITY BANK OF KANSAS CITY,

 

                                 AS THE TRUSTEE

 

                                   $22,075,000

                        TAXABLE INDUSTRIAL REVENUE BONDS

                            (EPA LABORATORY PROJECT)

                                    SERIES 2001

 

 

 

================================================================================

 

<PAGE>

 

                                 TRUST INDENTURE

 

                                TABLE OF CONTENTS

                                                                             PAGE

                                                                            ----

                Parties........................................................1

                Recitals.......................................................1

 

                Granting Clauses...............................................1

 

                                    ARTICLE I

 

                                   DEFINITIONS

 

Section 101.     Definitions of Words and Terms.................................2

Section 102.     Rules of Interpretation.......................................10

 

                                   ARTICLE II

 

                                    THE BONDS

 

Section 201.     Title and Amount of Bonds.....................................10

Section 202.     Limited Nature of Obligations.................................10

Section 203.     Denomination, Numbering and Dating of Bonds...................10

Section 204.     Method and Place of Payment of Bonds..........................10

Section 205.     Execution and Authentication of Bonds.........................11

Section 206.     Registration, Transfer and Exchange of Bonds..................11

Section 207.     Persons Deemed Owners of Bonds................................11

Section 208.     Authorization of Series 2001 Bonds............................11

Section 209.     Authorization of Additional Bonds.............................11

Section 210.     Temporary Bonds...............................................12

Section 211.     Mutilated, Lost, Stolen or Destroyed Bonds....................14

Section 212.     Cancellation and Destruction of Bonds Upon Payment............14

Section 213.     Book Entry; Securities Depository.............................14

 

                                    ARTICLE III

 

                               REDEMPTION OF BONDS

 

Section 301.     Redemption of Bonds Generally.................................15

Section 302.     Redemption of Bonds...........................................15

Section 303.     Selection of Bonds to be Redeemed.............................16

Section 304.     Trustee's Duty to Redeem Bonds................................16

Section 305.     Notice and Effect of Call for Redemption......................17

Section 306.     Effect of Call for Redemption.................................18

 

                                   ARTICLE IV

 

                                  FORM OF BONDS

 

Section 401.     Form of Bonds Generally.......................................18

Section 402.     Form of Series 2001 Bonds.....................................18

 

                                    ARTICLE V

 

                      CREATION OF PROJECT FUND; CUSTODY AND

                          APPLICATION OF BOND PROCEEDS

 

Section 501.     Creation of Project Fund......................................18

 

                                       (i)

<PAGE>

 

Section 502.     Deposits into the Project Fund................................18

Section 503.     Disbursements from the Project Fund...........................18

Section 504.     Disposition Upon Completion of the Project....................19

Section 505.     Disposition Upon Acceleration.................................19

 

                                   ARTICLE VI

 

                                REVENUES AND FUNDS

 

Section 601.     Creation of Funds and Accounts................................19

Section 602.     Deposits Into and Application of Moneys in the Revenue Fund...19

Section 603.     Deposits into the Debt Service Fund...........................20

Section 604.     Application of Moneys in the Debt Service Fund................20

Section 605.     Deposits into and Application of Moneys in the Project

                        Replacement Fund......................................20

Section 606.     Deposits into and Application of Moneys in the Capitalized

                        Interest Fund.........................................20

Section 607.     Deposits Into and Application of Moneys in the Tax and

                        Insurance Fund........................................21

Section 608.     Deposits Into and Application of Moneys in the Project

                        Operation and Maintenance Fund........................21

Section 609.     Payments Due on Saturdays, Sundays and Holidays...............21

Section 610.     Nonpresentment of Bonds.......................................21

 

                                   ARTICLE VII

 

                  SECURITY FOR DEPOSITS AND INVESTMENT OF FUNDS

 

Section 701.     Moneys to be Held in Trust....................................21

Section 702.     Investment of Moneys in Funds.................................21

Section 703.     Record Keeping................................................21

 

                                  ARTICLE VIII

 

                         GENERAL COVENANTS AND PROVISIONS

 

Section 801.     Payment of Principal of, Premium, if Any, and Interest

                        on the Bonds..........................................22

Section 802.     Authority to Execute Indenture and Issue Bonds................22

Section 803.     Performance of Covenants......................................22

Section 804.     Instruments of Further Assurance..............................22

Section 805.     Maintenance, Taxes and Insurance..............................22

Section 806.     Inspection of Project Books...................................22

Section 807.     Enforcement of Rights Under the Lease.........................22

Section 808.     Possession and Use of Project.................................22

 

                                   ARTICLE IX

 

                               REMEDIES ON DEFAULT

 

Section 901.     Acceleration of Maturity in Event of Default..................23

Section 902.     Exercise of Remedies by the Trustee...........................23

Section 903.     Limitation on Exercise of Remedies by Owners..................23

Section 904.     Right of Owners to Direct Proceedings.........................23

Section 905.     Remedies Cumulative...........................................23

Section 906.     Waivers of Events of Default..................................23

 

                                    ARTICLE X

 

                                   THE TRUSTEE

 

Section 1001.    Acceptance of the Trusts......................................24

Section 1002.    Fees, Charges and Expenses of the Trustee.....................25

Section 1003.    Notice to Owners if Default Occurs............................25

Section 1004.    Intervention by the Trustee...................................25

 

                                       (ii)

 

<PAGE>

 

Section 1005.    Successor Trustee Upon Merger, Consolidation or Sale..........25

Section 1006.    Resignation of Trustee........................................25

Section 1007.    Removal of Trustee............................................25

Section 1008.    Appointment of Successor Trustee..............................25

Section 1009.    Vesting of Trusts in Successor Trustee........................25

Section 1010.    Right of Trustee to Pay Taxes and Other Charges...............25

Section 1011.    Trust Estate May Be Vested in Co-trustee......................26

Section 1012.    Annual Accounting.............................................26

Section 1013.    Recordings and Filings........................................26

Section 1014.    Performance of Duties under the Lease.........................26

Section 1015.    Designation of Paying Agents..................................26

Section 1016.    Fees, Charges and Expenses of Paying Agents...................26

 

                                    ARTICLE XI

 

                             SUPPLEMENTAL INDENTURES

 

Section 1101.    Supplemental Indentures Not Requiring Consent of Owners.......26

Section 1102.    Supplemental Indentures Requiring Consent of Owners...........27

Section 1103.    Tenant's Consent to Supplemental Indentures...................27

 

                                   ARTICLE XII

 

                          LEASE AND SUBLEASE AMENDMENTS

 

Section 1201.    Lease Amendments..............................................27

Section 1202.    Sublease Amendments...........................................27

 

                                  ARTICLE XIII

 

                           SATISFACTION AND DISCHARGE

 

Section 1301.    Satisfaction and Discharge of Indenture.......................27

Section 1302.    Bonds Deemed to be Paid.......................................28

 

                                   ARTICLE XIV

 

                            MISCELLANEOUS PROVISIONS

 

Section 1401.    Consents and Other Instruments by Owners......................28

Section 1402.    Interested Parties............................................28

Section 1403.    Notices.......................................................29

Section 1404.    Suspension of Newspaper Publication or Mail Service...........29

Section 1405.    Amendment.....................................................29

Section 1406.    Severability..................................................29

Section 1407.    Counterparts..................................................29

Section 1408.    Governing Law.................................................29

 

                Signatures and Seals.........................................S-1

 

                Schedule I - Property Subject to Lease

                Schedule II - Permitted Encumbrances

 

                Appendix A-Form of Series 2001 Bonds

 

                                      (iii)

 

<PAGE>

 

                                 TRUST INDENTURE

 

      THIS TRUST   INDENTURE,   dated as of February 1, 2001,   between the UNIFIED

GOVERNMENT OF WYANDOTTE   COUNTY/KANSAS CITY, KANSAS, a municipal corporation and

political subdivision duly organized and existing under the laws of the State of

Kansas, as Issuer, and SECURITY BANK OF KANSAS CITY, a banking   corporation duly

organized   and   existing   and   authorized   to accept and   execute   trusts of the

character   herein   set forth   under the laws of the   State of   Kansas,   with its

principal office located in the City of Kansas City, Kansas, as Trustee;

 

      WITNESSETH:

 

      WHEREAS,   the   Issuer   is   authorized   by the Act to   acquire,   construct,

improve and equip certain   "facilities"   (as defined in the Act) for commercial,

industrial and manufacturing   purposes,   to enter into leases and lease-purchase

agreements   with any person,   firm or corporation   for said   facilities,   and to

issue revenue   bonds for the purpose of paying the cost of any such   facilities;

and

 

      WHEREAS,   pursuant to such   authorization,   the   Issuer's   governing   body

passed and approved an Ordinance on November 30, 2000, authorizing the Issuer to

issue the   Series   2001   Bonds for the   purpose of   financing   the   acquisition,

construction,   furnishing and equipping of an   approximately   70,000 square foot

commercial   building located at the corner of Minnesota and 3rd Street in Kansas

City, Kansas, which constitutes the Project, and authorizing the Issuer to lease

the Project to the Tenant; and

 

      WHEREAS,   pursuant   to such   Ordinance,   the Issuer is   authorized   (a) to

execute and deliver this   Indenture   for the purpose of issuing and securing the

Series 2001 Bonds and any Additional Bonds, as hereinafter provided,   and (b) to

enter into the Lease,   under   which the   proceeds   of the Bonds shall be used to

acquire,   construct,   furnish and equip the   Project   and   pursuant to which the

Issuer shall lease the Project to the Tenant,   in consideration of rentals which

are intended to be   sufficient   to provide for the payment of the   principal of,

premium, if any, and interest on the Bonds as the same become due; and

 

      WHEREAS, all things necessary to make the Bonds, when authenticated by the

Trustee and issued as provided in this Indenture,   the valid and legally binding

limited   obligations of the Issuer, and to constitute this Indenture a valid and

legally   binding   pledge and   assignment of the Trust Estate herein made for the

security of the payment of the   principal of,   premium,   if any, and interest on

the Bonds issued hereunder,   have been done and performed, and the execution and

delivery of this Indenture and the execution and issuance of the Bonds,   subject

to the terms hereof, have in all respects been duly authorized;

 

      NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

                                GRANTING CLAUSES

 

      That the Issuer,   in consideration of the premises,   the acceptance by the

Trustee of the trusts hereby   created,   the purchase and acceptance of the Bonds

by the Owners thereof, and of other good and valuable consideration, the receipt

of which is hereby   acknowledged,   and in order to   secure   the   payment   of the

principal   of,   premium,   if any,   and   interest on all of the Bonds   issued and

Outstanding   under this Indenture from time to time according to their tenor and

effect,   and to secure the   performance   and observance by the Issuer of all the

covenants,   agreements and conditions   herein and in the Bonds   contained,   does

hereby pledge and assign unto the Trustee and its   successors   and assigns,   the

following   property   (said   property   being   herein   referred   to as the   "Trust

Estate"):

 

                  (a) the real estate   situated   in   Wyandotte   County,   Kansas,

         described   in   paragraph   (a) of SCHEDULE I attached   hereto,   with all

         buildings, structures, facilities, additions, improvements,   machinery,

         equipment and any other property now or hereafter constructed,   located

         or   installed   thereon   to the extent   and   subject to the   limitations

         provided   in   the   Lease,    and   with   the   tenements,    hereditaments,

         appurtenances, rights, privileges and immunities thereunto belonging or

         appertaining;

 

                  (b) all   right,   title and   interest   of the Issuer in, to and

         under the Lease (except the Issuer's right to indemnity thereunder) and

         the   Sublease,   and all rents,   revenues   and   receipts   derived by the

         Issuer   from the   Project   including,   without   limitation,   all Rental

         Payments derived by the Issuer under and pursuant to and subject to the

         provisions of the Lease; provided that the pledge and assignment hereby

         made shall not impair or diminish the   obligations   of the Issuer under

         the provisions of the Lease; and

 

                  (c) all   moneys and   securities   from time to time held by the

         Trustee   under   the   terms   of this   Indenture,   and any and all   other

         property   of every   kind and   nature   from time to time   hereafter,   by

         delivery or by writing of any kind, pledged, assigned or transferred as

         and for additional security hereunder by the Issuer or by anyone in its

         behalf,   or with its written consent,   to the Trustee,   which is hereby

         authorized   to receive   any and all such   property at any and all times

         and to hold and apply the same subject to the terms hereof.

 

         TO HAVE AND TO HOLD, all and singular, the Trust Estate with all rights

and privileges   hereby pledged and assigned,   or agreed or intended so to be, to

the Trustee and its successors in trust and assigns;

 

         IN TRUST   NEVERTHELESS,   upon the terms and   subject to the   conditions

herein   set   forth,   for the equal and   proportionate   benefit,   protection   and

security   of all Owners   from time to time of the Bonds   issued and   Outstanding

under this Indenture, without preference,   priority or distinction as to lien or

otherwise of any of the Bonds over any other of the Bonds except with respect to

the Bond Reserve Fund and as expressly provided by this Indenture;

 

 

<PAGE>

 

      PROVIDED,   HOWEVER,   that if the Issuer shall well and truly pay, or cause

to be paid, the principal of, premium, if any, and interest on all the Bonds, at

the times and in the manner   mentioned in the Bonds according to the true intent

and meaning   thereof,   or shall provide for the payment   thereof (as provided in

ARTICLE XIII hereof), and shall pay or cause to be paid to the Trustee all other

sums of money   due or to   become   due to it in   accordance   with the   terms   and

provisions   hereof,   then upon such final payments this Indenture and the rights

hereby   granted shall cease,   determine and be void;   otherwise,   this Indenture

shall be and remain in full force and effect.

 

      THIS INDENTURE FURTHER   WITNESSETH,   and it is hereby expressly   declared,

covenanted and agreed by and between the parties   hereto,   that all Bonds issued

and secured hereunder are to be issued, authenticated and delivered and that all

the Trust Estate is to be held and applied under, upon and subject to the terms,

conditions,   stipulations,   covenants,   agreements, trusts, uses and purposes as

hereinafter   expressed,   and the Issuer does hereby agree and covenant   with the

Trustee   and with the   respective   Owners   from   time to time of the   Bonds,   as

follows:

 

 

                                    ARTICLE I

 

                                   DEFINITIONS

 

      SECTION 101.   DEFINITIONS OF WORDS AND TERMS. In addition to the words and

terms defined elsewhere in this Indenture, the following words and terms as used

in this Indenture shall have the following   meanings,   unless some other meaning

is plainly intended:

 

      "ACT" means K.S.A. 12-1740 to 12-1749d, inclusive, as amended.

 

      "ADDITIONAL   BONDS"   means any Bonds issued in addition to and on a parity

with the Series 2001 Bonds and issued pursuant to SECTION 209 of this Indenture.

 

      "ADDITIONAL RENT" means all fees,   charges and expenses of the Trustee and

the Paying   Agents,   all Default   Administration   Costs,   all other   payments of

whatever nature payable or to become payable   pursuant to the Indenture or which

the Tenant has agreed to pay or assume under the   provisions   of the Lease,   and

any and all expenses   (including   reasonable   attorney's   fees)   incurred by the

Issuer in connection   with the issuance of the Bonds or the   enforcement   of any

rights under the Lease or this Indenture.   The fees, charges and expenses of the

Trustee   shall   include all costs   incurred   in   connection   with the   issuance,

transfer, exchange, registration,   redemption or payment of the Bonds except (a)

reasonable   fees and expenses   incurred in connection   with the replacement of a

Bond or   Bonds   mutilated,   stolen,   lost or   destroyed   or (b) any tax or other

government charge imposed on the Trustee in relation to the transfer,   exchange,

registration, redemption or payment of the Bonds.

 

      "ADDITIONAL   TERM" means the term   commencing on the last day of the Basic

Term and terminating five (5) years thereafter.

 

      "ANNUAL BUDGET" means the Annual Budget of the Project required by SECTION

10.4(B) of the Lease.

 

      "AFFILIATE"   means any person   (including   any   corporation,   partnership,

limited   liability company or other entity (including   without   limitation,   any

trust or estate or   natural   person)   which,   directly   or   through   one or more

intermediaries,   owns or controls,   or is controlled by or which is under common

control with, the Tenant.

 

      "AUTHORIZED TENANT REPRESENTATIVE" means any member of the Tenant as is at

the time   designated   to act on behalf of the   Tenant as   evidenced   by   written

certificate   furnished   to the Issuer and the Trustee   containing   the   specimen

signature   of such   person and signed on behalf of the Tenant by a member.   Such

certificate   may   designate an alternate   or   alternates,   each of whom shall be

entitled to perform all duties of the Authorized Tenant Representative.

 

      "AUTHORIZED    NEWSPAPER"   means   a   newspaper   published   and   of   general

circulation   within the Issuer's   boundaries and the official newspaper or other

designated official publication of the State.

 

      "BANKRUPTCY CODE" means Title 11 of the United States Code, as amended.

 

      "BASIC RENT" means the monthly pro rata amount which,   when added to Basic

Rent Credits, will be sufficient to pay, on the next Payment Date, all principal

of, premium,   if any, and interest on the Bonds which is due and payable on such

Payment Date.

 

      "BASIC RENT   CREDITS"   means all funds on deposit in the Debt Service Fund

and the   Capitalized   Interest   Fund   and the   accounts   contained   therein   and

available for the payment of principal of, premium,   if any, and interest on the

Bonds on any Payment Date.

 

      "BASIC   RENT   PAYMENT   DATE" means March 1, 2001 and the first day of each

month   thereafter   until the principal of, premium,   if any, and interest on the

Bonds   have been   fully   paid or   provision   has been made for their   payment in

accordance with the provisions of the Indenture.

 

      "BASIC   TERM"   means the term   commencing   as of the date of the Lease and

ending on October 1, 2022,   subject to prior   termination   as   specified   in the

Lease,   but to continue   thereafter   until all of the principal of, premium,   if

any,   and   interest   on all   Outstanding   Bonds   shall have been paid in full or

provision   made for their   payment   in   accordance   with the   provisions   of the

Indenture.

 

      "BOND" or "BONDS"   means the fully   registered   Series   2001 Bonds and any

Additional Bonds.

 

                                       2

<PAGE>

 

      "BOND   COUNSEL"   means   the firm of   Gilmore   & Bell,   P.C.   or any   other

attorney   or firm of   attorneys   whose   expertise   in   matters   relating   to the

issuance of obligations by states and their political subdivisions is nationally

recognized and acceptable to the Trustee and the Tenant.

 

      "BOND   REGISTER"   means   the   books   maintained   by the   Trustee   for   the

registration and transfer of the Bonds.

 

      "BUSINESS   DAY" means a day which is not (a) a   Saturday   or Sunday or (b)

any day on which banks in the State are authorized or required to be closed.

 

      "CAPITALIZED   INTEREST   FUND" has the   meaning set forth in SECTION 601 of

this Indenture.

 

      "CEDE & CO." means Cede & Co., as nominee of The Depository Trust Company,

New York, New York.

 

      "CERCLA" means the Comprehensive Environmental Response,   Compensation and

Liability Act, 42 U.S.C. ss.9601, et seq.

 

      "CERTIFICATE   OF   COMPLETION"   means a written   certificate   signed by the

Authorized Tenant Representative and the Project Consultant stating that (a) the

Project has been completed in accordance with the Plans and Specifications,   (b)

the   Project   has   been   completed   in a good   and   workmanlike   manner,   (c) no

mechanic's or other   similar   liens have been filed,   nor is there any basis for

the filing of such liens,   with   respect to the   Project,   (d) all   Improvements

constituting   a part of the Project are located or installed   upon the Land, (e)

if required by ordinances   duly adopted by the Issuer or by applicable   building

codes, that an appropriate certificate of occupancy has been issued with respect

to the Project and (f) the Project has been accepted by the   Subtenant   pursuant

to the terms of the Sublease.

 

      "CHANGE OF   CIRCUMSTANCES"   means the   occurrence   of any of the following

events:

 

            (a) title to, or the   temporary   use of, all or any material part of

      the Project   shall be condemned by any authority   exercising   the power of

      eminent domain;

 

            (b)   title   to   substantially   all of the   Project   is   found   to be

      deficient or nonexistent to the extent that the Project is untenantable or

      the efficient   utilization   of the Project by the Tenant is   substantially

      impaired;

 

            (c) substantially all of the Project is damaged or destroyed by fire

      or other casualty; or

 

            (d) as a result of (i)   changes   in the   Constitution   of the State,

      (ii)   any   legislative   or   administrative   action   by   the   State   or any

       political subdivision thereof, or by the United States or (iii) any action

      instituted in any court, the Lease shall become void or unenforceable,   or

      impossible to perform without   unreasonable delay, or unreasonable burdens

      or   excessive   liabilities   are   imposed   upon the Issuer or the Tenant by

      reason of such changes of circumstances.

 

      "CODE" means the Internal Revenue Code of 1986, as amended,   together with

the regulations   promulgated   thereunder by the United States   Department of the

Treasury.

 

      "COMPLETION   DATE"   means   the   date   of   completion   of the   acquisition,

purchase, construction and installation of the Project pursuant to the Lease.

 

      "CONSTRUCTION   PERIOD" means the period from the beginning of construction

of the Project to the Completion Date.

 

      "COSTS OF ISSUANCE" means any and all expenses of whatever nature incurred

in connection with the issuance and sale of the Bonds, including but not limited

to   underwriting   fees and   expenses,   underwriting   discount,   bond   and   other

printing expenses, and legal fees and expenses of counsel.

 

      "DEBT   SERVICE   FUND" has the   meaning   set forth in   SECTION   601 of this

Indenture.

 

      "DEFAULT"   means any event or condition the occurrence of which,   with the

lapse of time or the giving of notice or both,   constitutes   an Event of Default

under the Lease.

 

      "DEFAULT   ADMINISTRATION   COSTS" means the   reasonable   fees,   charges and

expenses of the   Trustee   incurred in   anticipation   of an Event of Default,   or

after the   occurrence   of an Event of   Default,   including,   but not limited to,

counsel fees,   litigation   costs and expenses,   the expenses of maintaining   and

preserving the Project and the expenses of re-letting or selling the Project.

 

      "DEFEASANCE OBLIGATIONS" means:

 

            (a) Government Obligations which are not subject to redemption prior

      to maturity; or

 

            (b) obligations of any state or political   subdivision of any state,

      the interest on which is excluded from gross income for federal income tax

      purposes and which meet the following conditions:

 

                                       3

<PAGE>

 

                  (i) (A) the obligations are not subject to redemption prior to

             maturity   or (B) the   trustee   for such   obligations   has been given

            irrevocable instructions concerning their calling and redemption and

            the issuer of such   obligations   has   covenanted   not to redeem such

            obligations other than as set forth in such instructions;

 

                  (ii)   the   obligations   are   secured   by   cash   or   Government

            Obligations   that may be applied   only to payment of   principal   of,

            premium, if any, and interest payments on such obligations;

 

                  (iii) such cash and Government Obligations serving as security

            for the   obligations   are held in an   irrevocable   escrow fund by an

            escrow   agent or a trustee   irrevocably   in trust for the   owners of

            such obligations, and the issuer of such obligations is not, and has

            not been   since   the   establishment   of such   escrow,   a debtor in a

            proceeding commenced under the Bankruptcy Code;

 

                  (iv) the sufficiency of such cash and   noncallable   Government

            Obligations   to pay in full all principal of,   premium,   if any, and

            interest on such   obligations   has been verified by the report of an

            independent   certified   public   accountant   (for   purposes   of   this

            subparagraph    (iv),   a   "Verification")    and   no   substitution   of

            Government   Obligations shall be permitted except with cash or other

            Government Obligations and upon delivery of a new Verification;

 

                  (v) such cash and Government   Obligations are not available to

            satisfy any other   claims,   including   those   against the trustee or

            escrow agent;

 

                  (vi) the   Trustee   has   received   an opinion   of Bond   Counsel

            delivered   in   connection    with   the   original    issuance   of   such

            obligations to the effect that the interest on such   obligations was

            exempt for purposes of federal income taxation,   and the Trustee has

            received an opinion of Bond Counsel delivered in connection with the

            establishment   of the   irrevocable   escrow   to the   effect   that the

            establishment   of the   escrow   will   not   result   in the loss of any

            exemption for purposes of federal income   taxation to which interest

            on such obligations would otherwise be entitled;

 

                  (vii) the   Trustee   has   received   an   unqualified   opinion of

            bankruptcy   counsel to the effect that the payment of   principal   of

            and interest on such   obligations made from such escrow would not be

            avoidable   as   preferential    payments   and   recoverable   under   the

            Bankruptcy   Code   should the obligor or any other   person   liable on

            such obligations become a debtor in a proceeding commenced under the

            Bankruptcy Code; and

 

                  (vi) the obligations are rated in the highest long-term rating

             category by Moody's (presently "AAA") and S&P (presently "AAA").

 

      "ENVIRONMENTAL   ASSESSMENT" means an environmental assessment with respect

to the   Project   conducted   by an   independent   consultant   satisfactory   to the

Trustee which reflects the results of such   inspections,   records reviews,   soil

tests, groundwater tests and other tests requested, which assessment and results

shall be   satisfactory   in scope,   form and   substance   to the   Trustee   and the

Tenant.

 

      "ENVIRONMENTAL    LAW"   means    CERCLA,    the   Superfund    Amendments    and

Reauthorization Act of 1986, and any other federal, state or local environmental

statute,   regulation   or   ordinance   presently   in effect or coming   into effect

during the term of the Lease.

 

      "EVENT OF BANKRUPTCY"   means an event whereby the Tenant shall:   (a) admit

in   writing   its   inability   to pay its   debts as they   become   due;   (b) file a

petition   in   bankruptcy   or   for   reorganization   or   for   the   adoption   of an

arrangement under the Bankruptcy Code as now or in the future amended, or file a

pleading   asking for such   relief,   (c) make an   assignment   for the   benefit of

creditors;   (d) consent to the appointment of a trustee or receiver for all or a

major   portion   of its   property;   (e) be finally   adjudicated   as   bankrupt   or

insolvent   under any   federal or state law;   (f) suffer the entry of a final and

nonappealable   court order under any federal or state law   appointing a receiver

or trustee for all or a major part of its property or ordering the winding-up or

liquidation   of its affairs,   or approving a petition filed against it under the

Bankruptcy Code, which order, if the Tenant has not consented thereto, shall not

be vacated,   denied,   set aside or stayed within 60 days after the day of entry;

or (g) suffer a writ or   warrant   of   attachment   or any   similar   process to be

issued by any court against all or any substantial portion of its property,   and

such writ or warrant of   attachment   or any   similar   process is not   contested,

stayed,   or is not   released   within 60 days after the final   entry,   or levy or

after any contest is finally adjudicated or any stay is vacated or set aside.

 

      "EVENT OF DEFAULT" under this Indenture means any of the following events:

 

             (a) default in the due and   punctual   payment of any interest on any

      Bond;

 

            (b) default in the due and punctual   payment of the   principal of or

      premium,   if   any,   on any   Bond on the   stated   maturity   or   accelerated

       maturity date thereof, or at the redemption date thereof,

 

            (c) default in the   performance   or   observance   of any other of the

      covenants, agreements or conditions on the part of the Issuer contained in

      this Indenture or in the Bonds,   and the continuance   thereof for a period

      of 30 days   after   written   notice   thereof   shall   have been given to the

      Issuer,   the Tenant and the   Subtenant   by the Trustee or the Issuer,   the

      Tenant and the   Subtenant   by the Owners of not less than 25% in aggregate

      principal amount of Bonds then Outstanding; provided, however, that if any

      default   shall be such that it   cannot be   corrected   within   such   30-day

      period,   it shall not constitute an Event of Default if corrective   action

      is   instituted   by the   Issuer   or   the   Tenant   within   such   period   and

      diligently pursued until such default is corrected; or

 

                                       4

<PAGE>

 

            (d) "Default" as defined in the Lease shall have occurred.

 

      "FULL   INSURABLE   VALUE"   means the full   actual   replacement   cost of the

Project less   physical   depreciation   as   determined   from time to time upon the

request of the Issuer,   the Tenant or the Trustee (but not more   frequently than

once in every 24 months) by an architect, appraiser, appraisal company or one of

the insurers, selected and paid by the Tenant.

 

      "GOVERNMENT   OBLIGATIONS"   means direct obligations of, or obligations the

payment of the principal of and interest on which are unconditionally guaranteed

by, the United States of America.

 

      "HAZARDOUS   SUBSTANCES"   shall mean   "hazardous   substances" as defined in

CERCLA.

 

      "IMPOSITIONS" means all taxes and assessments,   general and special, which

may be lawfully taxed, charged,   levied,   assessed or imposed upon or against or

payable   for or in respect of the   Project or any part   thereof or the   Tenant's

interest therein, including any new lawful taxes and assessments not of the kind

enumerated   above to the   extent   that the same are   lawfully   made,   levied   or

assessed   in lieu of or in   addition   to taxes or   assessments   now   customarily

levied against real or personal   property,   and further   including all water and

sewer   charges,   assessments   and other   governmental   charges   and   impositions

whatsoever, foreseen or unforeseen.

 

      "IMPROVEMENTS"   means the buildings,   structures,   facilities,   additions,

improvements, machinery, equipment and other property described in paragraph (b)

of SCHEDULE I attached hereto and made a part hereof.

 

      "INDENTURE"   means this Trust   Indenture by and between the Issuer and the

Trustee,   as   from   time   to   time   amended   and   supplemented   by   Supplemental

Indentures in accordance with the provisions of ARTICLE XI of this Indenture.

 

      "INTEREST   PAYMENT   DATE" means (a) with respect to the Series 2001 Bonds,

April 1 and October 1 of each year,   commencing October 1, 2001, and terminating

when the   principal   of,   premium if any,   and interest on the Series 2001 Bonds

have been fully paid,   and (b) with respect to any Additional   Bonds,   the dates

specified as interest   payments   dates in the   Supplemental   Indenture   relating

thereto.

 

      "INVESTMENT   SECURITIES"   means any of the   following   securities,   to the

extent the same are at the time   permitted   for   investment of funds held by the

Trustee pursuant to this Indenture:

 

            (a) cash   (insured   at all times by the   Federal   Deposit   Insurance

      Corporation   or otherwise   collateralized   with   obligations   described in

      paragraph (b) below);

 

            (b) direct   obligations of (including   obligations issued or held in

      book entry form on the books of) the   Department   of the   Treasury   of the

      United States of America;

 

            (c)   obligations   of any of the following   federal   agencies,   which

      obligations   represent   the full faith and credit of the United   States of

      America:

 

            -      Export-Import Bank

            -      Farm Credit System Financial Assistance Corporation

            -      Rural Economic Community Development   Administration (formerly

                  the Farmers Home Administration)

            -      General Services Administration

            -      U.S. Maritime Administration

            -      Small Business Administration

            -      Government National Mortgage Association (GNMA)

            -      U.S. Department of Housing & Urban Development (PHA's)

            -      Federal Housing Administration

             -      Federal Financing Bank;

 

            (d) direct   obligations   of any of the following   federal   agencies,

      which obligations are not fully guaranteed by the full faith and credit of

      the United States of America:

 

            -       Senior   debt   obligations   rated "Aaa" by Moody's and "AAA" by

                  S&P issued by the Federal National Mortgage Association (FNMA)

                  or Federal Home Loan Mortgage Corporation (FHLMC)

            -      Obligations of the Resolution Funding Corporation (REFCORP)

            -      Senior debt obligations of the Federal Home Loan Bank System

 

            (e) U.S.   dollar   denominated   deposit   accounts,   federal funds and

      bankers' acceptances with domestic commercial banks (including the Trustee

      and its affiliates)   which have a rating on their short term   certificates

      of deposit on the date of   purchase of "A-1" or "A-1+" by S&P and "P-l" by

      Moody's   and   maturing   no more than 360 days   after the date of   purchase

      (provided   that   ratings on holding   companies   are not   considered   to be

      ratings on the subsidiary banks);

 

            (f)   commercial   paper which is rated at the time of purchase in the

      single highest   classification   by S&P   (presently   "A-1+") and by Moody's

      (presently   "P-l") and which matures not more than 270 days after the date

      of purchase;

 

                                       5

<PAGE>

 

            (g)   investments   in a money market fund rated "AAAm" or "AAAm-G" or

      better by S & P;

 

            (h) "pre-refunded   municipal   obligations,"   which is defined as any

      bonds or other obligations of any state of the United States of America or

      of any   agency,   instrumentality   or local   governmental   unit of any such

      state   which   are not   callable   at the   option   of the   obligor   prior to

      maturity or as to which   irrevocable   instructions   have been given by the

      obligor to call on the date specified in the notice; and

 

                   (i) which are rated based on an irrevocable   escrow account or

            fund (the   "escrow"),   in the   highest   rating   category   of S&P and

            Moody's or any successors thereto; or

 

                  (ii) (A) which are fully secured as to principal,   premium, if

            any,   and   interest   by   an   escrow    consisting   only   of   cash   or

            obligations   described in paragraphs (a) and (b) above, which escrow

            may be applied only to the payment of such principal of and interest

            and redemption   premium,   if any, on such bonds or other obligations

            on the maturity date or dates   thereof or the   specified   redemption

            date   or   dates   pursuant   to   such   irrevocable   instructions,    as

            appropriate,   and (B) which escrow is   sufficient,   as verified by a

            nationally recognized   independent   certified public accountant,   to

            pay   principal of and interest and premium,   if any, on the bonds or

             other   obligations   described in this paragraph on the maturity date

            or dates   specified   in the   irrevocable   instructions   referred   to

            above, as appropriate;

 

            (i)   general   obligations   of any   state   with a rating   of at least

      "A2/A" or higher by both Moody's and S&P; or

 

            (j) investment agreements constituting an obligation of a bank, bank

      holding company,   savings and loan association,   trust company,   insurance

      company   or   other   financial    institution   whose   outstanding   unsecured

      short-term   debt is   rated at the time of such   agreement   in the   highest

      rating   category   by   a   nationally   recognized   rating   agency   or   whose

      outstanding   unsecured   long-term   debt   is   rated   at the   time   of   such

      agreement in either of the two highest   rating   categories by a nationally

      recognized rating agency.

 

      "ISSUER"   means the Unified   Government of Wyandotte   County/Kansas   City,

Kansas, a municipal corporation and political subdivision organized and existing

under the laws of the State, and its successors and assigns.

 

      "LAND"   means the real   property on which the Project is located,   as more

specifically described in paragraph (a) of SCHEDULE I attached hereto and made a

part hereof and paragraph (a) of SCHEDULE I of the Lease.

 

      "LAND   CLOSING   DATE" has the   meaning   set forth in   SECTION   14.1 of the

Lease.

 

      "LEASE" means the Lease dated as of the date of this Indenture between the

Issuer   and the   Tenant,   as   from   time to time   amended   and   supplemented   in

accordance with the provisions thereof and of ARTICLE XII of this Indenture.

 

      "LEASE   EVENT OF DEFAULT"   under the Lease means any one of the   following

events:

 

             (a) failure of the Tenant to make any payment of Basic Rent when due

      or within five (5) days thereafter and in the amounts required hereunder;

 

            (b) failure of the Tenant to make any payment of Additional   Rent at

      the times and in the amounts required hereunder,   or failure by the Tenant

      to   observe   or   perform   any other   covenant,   agreement,   obligation   or

      provision   of the Lease,   if the same is not remedied   within   thirty (30)

      days after the Issuer or the Trustee has given the Tenant   written   notice

      specifying   such   failure   (or such longer   period as shall be   reasonably

      required   to   correct   such   default;   provided   that (i) the   Tenant   has

      commenced such correction   within said 30-day period,   and (ii) the Tenant

      diligently prosecutes such correction to completion);

 

            (c) an Event of Bankruptcy; or

 

            (d) the Tenant abandons the Project.

 

      "MOODY'S" means Moody's   Investors   Service,   a corporation   organized and

existing   under   the   laws of the   State of   Delaware,   and its   successors   and

assigns,   and, if such corporation   shall be dissolved or liquidated or shall no

longer perform the functions of a securities   rating agency,   "Moody's" shall be

deemed to refer to any other   nationally   recognized   securities   rating   agency

designated by the Issuer by notice to the Trustee.

 

      "NET   PROCEEDS"   means,   when   used   with   respect   to   any   insurance   or

condemnation award with respect to the Project,   the proceeds from the insurance

or condemnation   award   remaining   after the payment of all expenses   (including

attorneys' fees and any   extraordinary   expenses of the Trustee) incurred in the

collection of such proceeds.

 

      "NOTICE ADDRESS" means:

 

      (a) with respect to the Issuer:

 

                                       6

<PAGE>

 

                      Unified Government of Wyandotte County/Kansas City, Kansas

                      701 N. 7th Street

                      9th Floor

                       Kansas City, KS 66101

                      Attention:   County Administrator

 

      (b) with respect to the Trustee:

 

                      Security Bank of Kansas City

                      One Security Plaza

                      701 Minnesota, 2nd Floor

                      Kansas City, Kansas 66101-2703

                      Attention:   Corporate Trust Department

 

      (c) with respect to the Tenant:

 

                      Kansas EPA Laboratory, LLC

                      3100 Broadway, Suite 1102

                      Kansas City, Missouri 64111

                      Attention:   Member

 

      (d) with respect to the Subtenant:

 

                      General Services Administration

                      P.O. Box 17181

                       Ft. Worth,   Texas 76102-0181

                      Attention:   Finance Division (7BCPL)

 

          With a copy to:

 

                      Contracting Officer

                      GSA Property Acquisition and Realty Services (6PEEM)

                       1500 E. Bannister Road

                      Kansas City, Missouri 64131-3088

                      Attention:   Madelynn C. Garffie

 

      (e) with respect to the Owners:

 

                      The addresses of the Owners shown on the Bond Register.

 

       "OUTSTANDING"    means,   as   of   a   particular    date,   all   Bonds   issued,

authenticated and delivered under this Indenture, except:

 

            (a) Bonds   cancelled   by the Trustee or delivered to the Trustee for

      cancellation pursuant to this Indenture;

 

            (b) Bonds for which   moneys or   investments   have been   deposited in

      trust with the Trustee for payment or redemption   in   accordance   with the

      provisions of the Indenture; and

 

            (c) Bonds in exchange   for or in lieu of which other Bonds have been

      authenticated and delivered pursuant to this Indenture.

 

      "OWNER" means the registered owner of any fully registered Bond.

 

      "PARTICIPANTS" means those financial institutions from whom the Securities

Depository effects book-entry   transfers and pledges of Bonds deposited with the

Securities Depository, as such listing exists at the time of such reference.

 

      "PAYING   AGENT" means the Trustee and any other   commercial   bank or trust

institution   organized   under   the laws of any   state of the   United   States   of

America   or   any   national   banking   association   designated   pursuant   to   this

Indenture or any Supplemental   Indenture as paying agent for any series of Bonds

for the principal of, premium, if any, and interest on such Bonds.

 

      "PAYMENT DATE" means any date on which the principal of or interest on any

Bonds is payable.

 

      "PERMITTED ENCUMBRANCES" means any mortgages,   liens or other encumbrances

specifically   described   in SCHEDULE II hereto,   easements   and rights of way of

record at the time of conveyance of the Land to the Issuer,   and any other title

exceptions not affecting   marketability or the usefulness of the Project for the

Tenant's purposes.

 

                                        7

<PAGE>

 

      "PLANS AND   SPECIFICATIONS"   means the plans and   specifications   prepared

with respect to the Project, as amended by the Tenant from time to time prior to

the Completion   Date,   the same being duly   certified by the   Authorized   Tenant

Representative, which plans and specifications have been approved by the Project

Consultant and are on file at the principal office of the Tenant in Kansas City,

Missouri,   and shall be available for reasonable   inspection by the Issuer,   the

Trustee and their duly appointed representatives.

 

      "PRINCIPAL   PAYMENT DATE" means (a) with respect to the Series 2001 Bonds,

October 1 of each year,   commencing   October 1, 2003, during which the principal

of and premium, if any, on the Series 2001 Bonds remains Outstanding and unpaid,

and (b) with   respect   to any   Additional   Bonds,   the   dates   specified   as the

principal payment dates in the Supplemental Indenture relating thereto.

 

      "PROJECT" means the Land and the Improvements,   including an approximately

70,000   square foot office   building   located at the corner of Minnesota and 3rd

Street in Kansas City, Kansas.

 

      "PROJECT   ADDITIONS"   means   any   Improvements   acquired,   constructed   or

installed from proceeds of any series of Additional   Bonds authorized and issued

pursuant to this Indenture, and any alterations or additions made to the Project

to the extent provided in ARTICLE XI of the Lease.

 

      "PROJECT   CLOSING   DATE" has the meaning set forth in SECTION   13.1 of the

Lease.

 

       "PROJECT CONSULTANT" means the consultant appointed for the Project by the

Tenant and approved by the Issuer and the Trustee,   which shall be an architect,

engineer or firm of architects   or engineers who is not a full-time   employee of

the Tenant or the Issuer.

 

      "PROJECT CONTRACTS" has the meaning set forth in SECTION 4.4 of the Lease.

 

      "PROJECT COSTS" means those costs incurred in connection with the Project,

including:

 

            (a) all costs and expenses   necessary or incident to the acquisition

      of any Improvements   that are acquired,   constructed or in progress at the

      date of the original issuance and delivery of the Series 2001 Bonds;

 

            (b) fees and   expenses   of   architects,   appraisers,   surveyors   and

      engineers for   estimates,   surveys,   soil borings and soil tests and other

      preliminary   investigations   and items   necessary to the   commencement   of

      construction,   preparation   of   plans,   drawings   and   specifications   and

      supervision of   construction,   as well as for the performance of all other

      duties of architects,   appraisers,   surveyors and engineers in relation to

      the construction,   furnishing and equipping of the Project or the issuance

      of the Bonds;

 

            (c) all costs and expenses of acquiring,   constructing or installing

      any   Improvements   that are acquired,   constructed or installed   after the

      date of the original issuance and delivery of the Series 2001 Bonds;

 

            (d) the cost of the   title   insurance   policies   and the cost of any

      insurance   and   performance   and   payment   bonds   maintained    during   the

      Construction Period with respect to the Project in accordance with ARTICLE

      VI of the Lease;

 

            (e) interest   accruing on the Bonds prior to the Completion Date, if

      and to the extent   proceeds   of the Bonds set aside and   deposited   to the

      credit of the Capitalized   Interest Fund or any accounts contained therein

      pursuant to SECTION 603 of this Indenture are   insufficient for payment of

      such interest;

 

            (f) Costs of Issuance; and

 

            (g) all other items of expense as may be   necessary   or incident to:

      (i)   the   authorization,    issuance   and   sale   of   the   Bonds;   (ii)   the

      acquisition,   construction,   equipping and furnishing of the Project;   and

      (iii) the financing thereof.

 

      "PROJECT FUND" has the meaning set forth in SECTION 501 of this Indenture.

 

      "PROJECT   OPERATION   AND   MAINTENANCE   FUND" has the   meaning set forth in

SECTION 601 of this Indenture.

 

      "PROJECT OPERATION AND MAINTENANCE FUND REQUIREMENT" means $100,000.

 

      "PROJECT   REPLACEMENT   FUND" has the   meaning   set forth in SECTION 601 of

this Indenture.

 

      "RECORD DATE" means the 15th day of the month   immediately   preceding each

Payment   Date,   or if   such   date   is   not a   Business   Day,   the   Business   Day

immediately preceding such Payment Date.

 

      "RENTAL PAYMENTS" means the aggregate of the Basic Rent (as defined in the

Lease) and   Additional   Rent (as   defined in the Lease)   payments   provided   for

pursuant to ARTICLE V of the Lease.

 

      "REPLACEMENT   BONDS"   means Bonds issued to the   beneficial   owners of the

Bonds in accordance with SECTION 213(B) of this Indenture.

 

                                       8

<PAGE>

 

      "REVENUE FUND" has the meaning set forth in SECTION 601 of this Indenture.

 

      "S&P"   means   Standard   &   Poor's   Ratings   Services,   A   Division   of The

McGraw-Hill   Companies,   a corporation   organized and existing under the laws of

the State of New York, and its successors and assigns,   and, if such corporation

shall be dissolved or liquidated   or shall no longer   perform the functions of a

securities   rating agency,   S&P shall be deemed to refer to any other nationally

recognized   securities   rating agency   designated by the Issuer by notice to the

Trustee.

 

      "SECURITIES   DEPOSITORY" means The Depository Trust Company, New York, New

York, and its successors and assigns.

 

      "SERIES    2001   BONDS"    means   the   Unified    Government    of    Wyandotte

County/Kansas   City,   Kansas Taxable   Industrial   Revenue Bonds (EPA   Laboratory

Project), Series 2001, dated the date of original issuance and delivery thereof,

in the aggregate principal amount of $22,075,000.

 

      "SERIES   2001   CAPITALIZED    INTEREST    ACCOUNT"   means   the   Series   2001

Capitalized   Interest   Account   created   within the   Capitalized   Interest   Fund

pursuant to SECTION 601 of this Indenture.

 

      "SERIES   2001 DEBT   SERVICE   ACCOUNT"   means the Series 2001 Debt   Service

Account   created   within the Debt Service   Fund   pursuant to SECTION 601 of this

Indenture.

 

      "SERIES   2001   PROJECT   ACCOUNT"   means the Series   2001   Project   Account

created within the Project Fund pursuant to SECTION 501 of this Indenture.

 

      "SERIES 2001 PLACEMENT AGENT" means U.S. Bancorp Piper Jaffray, Inc.

 

      "STATE" means the State of Kansas.

 

      "SUBLEASE"   means the US   Government   Lease for Real   Property,   Lease No.

GS-06P-00027,   executed on December 8, 2000,   as   supplemented   by   Supplemental

Lease   Agreement No. 1 executed on December 8, 2000 and any further   supplements

and   amendments   thereto,   whereby   the   Tenant   subleases   the   Project   to the

Subtenant.

 

      "SUBTENANT"   means the United States of America   acting by and through the

General Services Administration for the benefit of the Environmental   Protection

Agency, and its successors and assigns.

 

      "SUPPLEMENTAL INDENTURE" means any indenture supplemental or amendatory to

this Indenture entered into by the Issuer and the Trustee pursuant to ARTICLE XI

of this Indenture.

 

      "TAX AND INSURANCE   FUND" has the meaning set forth in SECTION 601 of this

Indenture.

 

      "TENANT" means Kansas EPA Laboratory,   LLC, a Missouri   limited   liability

company, and its successors and assigns.

 

      "TERM" means, collectively, the Basic Term and the Additional Term.

 

      "TRUST   ESTATE" has the meaning set forth in the Granting   Clauses of this

Indenture.

 

      "TRUSTEE"   means Security Bank of Kansas City, in the City of Kansas City,

Kansas,   in its   capacity as bond   registrar   and trustee and its   successor   or

successors and any other   corporation   or   association   which at the time may be

substituted   in its place   pursuant to and at the time serving as Trustee   under

this Indenture.

 

      "VALUE" means:

 

            (a) as to   investments   for   which   the bid   and   asked   prices   are

      published on a regular basis in The Wall Street Journal (or, if not in The

      Wall Street Journal,   then in The New York Times), the average of the most

      recently   published bid and asked prices for such   investments at the time

      of determination;

 

            (b) as to   investments   the bid and   asked   prices   of which are not

      published   on a regular   basis in The Wall Street   Journal or The New York

      Times,   the   average   bid   price   at the   time of   determination   for such

      investments by any two nationally recognized government securities dealers

      (selected   by the Trustee in its absolute   discretion)   making a market in

      such   investments   at the time or the bid price   published by a nationally

      recognized pricing service;

 

            (c) as to certificates of deposit and bankers acceptances,   the face

      amount thereof, plus accrued interest; and

 

            (d) as to any   investment   not   specified   above,   the value thereof

      established by prior agreement between the Issuer and the Trustee.

 

                                        9

<PAGE>

 

      SECTION 102 RULES OF INTERPRETATION.

 

            (a) Words of the   masculine   gender shall be deemed and construed to

      include   correlative words of the feminine and neuter genders.   Unless the

      context shall indicate otherwise,   the words importing the singular number

      shall include the plural and vice versa, and words importing persons shall

      include firms, associations and corporations,   including public bodies, as

      well as natural persons.

 

            (b)   Wherever in this   Indenture   it is provided   that either   party

      shall or will make any payment or perform or refrain from   performing   any

      act   or   obligation,   each   such   provision   shall,   even   though   not   so

      expressed,   be construed as an express covenant to make such payment or to

      perform, or not to perform, as the case may be, such act or obligation.

 

            (c) All   references in this   instrument   to   designated   "Articles,"

      "Sections" and other subdivisions are, unless otherwise specified,   to the

      designated   Articles,   Sections and   subdivisions   of this   instrument   as

      originally executed.   The words "herein," "hereof,"   "hereunder" and other

      words of similar   import refer to this Indenture as a whole and not to any

      particular Article, Section or subdivision.

 

            (d) The Table of Contents   and the   Article and Section   headings of

      this   Indenture   shall not be   treated as a part of this   Indenture   or as

      affecting the true meaning of the provisions hereof.

 

                                   ARTICLE II

 

                                    THE BONDS

 

      SECTION 201. TITLE AND AMOUNT OF BONDS.   No Bonds may be issued under this

Indenture   except in accordance   with the provisions of this Article.   The Bonds

authorized   to be issued   under   this   Indenture   shall be issued in one or more

separate   series,   the first   series of which   shall be   designated   as "Unified

Government of Wyandotte   County/Kansas   City, Kansas Taxable   Industrial Revenue

Bonds (EPA Laboratory Project), Series 2001," and any subsequent series of which

may   contain   such   other   appropriate    particular    designation   added   to   or

incorporated   in such   title as the Issuer may   determine.   The total   principal

amount of Bonds that may be issued hereunder is hereby expressly   limited to the

$22,075,000   principal   amount of Series 2001 Bonds and the permitted   principal

amount of any Additional Bonds issued hereunder as set forth in the Supplemental

Indenture related thereto.

 

      SECTION 202. LIMITED NATURE OF OBLIGATIONS.

 

      (a) The Bonds and the interest thereon shall be limited obligations of the

Issuer   payable   solely   and only from the Trust   Estate,   and are   secured by a

pledge and assignment of the Trust Estate to the Trustee in favor of the Owners,

as provided in this Indenture. The Bonds and the interest thereon shall not be a

debt   or   general   obligation   of the   Issuer   or the   State,   or any   municipal

corporation   or   political   subdivision   thereof,   and   neither   the Bonds,   the

interest thereon,   nor any judgment thereon or with respect thereto, are payable

in any manner from tax   revenues of any kind or   character.   The Bonds shall not

constitute   an   indebtedness   or a pledge of the faith and credit of the Issuer,

the State or any municipal corporation or political subdivision thereof,   within

the meaning of any constitutional or statutory limitation or restriction.

 

      (b) No provision, covenant or agreement contained in this Indenture or the

Bonds,   or any   obligation   herein or therein   imposed   upon the Issuer,   or the

breach   thereof,   shall   constitute   or give rise to or impose upon the Issuer a

pecuniary   liability or a charge upon its general   credit or powers of taxation.

In making the agreements,   provisions and covenants set forth in this Indenture,

the Issuer has not   obligated   itself except with respect to the Project and the

application   of the   payments,   revenues and receipts   therefrom as   hereinabove

provided.   Neither the officers of the Issuer nor any person executing the Bonds

shall be liable personally on the Bonds by reason of the issuance thereof.

 

      SECTION 203. DENOMINATION, NUMBERING AND DATING OF BONDS.

 

      (a) The Bonds shall be issuable in the form of fully   registered   Bonds in

the   denomination   of   $100,000   or any   integral   multiple   of $5,000 in excess

thereof   not   exceeding   the   principal   amount   of the   Bonds   maturing   on any

Principal   Payment Date. The Bonds shall be substantially in the forms set forth

in   ARTICLE IV of this   Indenture.   The Bonds of each   series of Bonds   shall be

numbered in such manner as the Trustee shall determine.

 

      (b) The Bonds of each   series of Bonds   shall be dated as provided in this

Indenture or the Supplemental   Indenture authorizing the issuance of such series

of   Bonds.    The   Bonds   shall   bear   interest   from   their   effective   date   of

registration. The effective date of registration shall be set forth on each such

Bond, such effective date of registration to be as of the Interest   Payment Date

next preceding the date of   authentication   thereof by the Trustee,   unless such

date of   authentication   shall be an Interest   Payment   Date,   in which case the

effective date of registration   shall be as of such date of   authentication,   or

unless the date of   authentication   shall be prior to the first Interest Payment

Date for such series of Bonds,   in which case the effective date of registration

shall be either the dated date of such   series of Bonds or the date such   series

of Bonds is   issued   and   delivered,   as   provided   in   SECTION   208(D)   of this

Indenture   or the   Supplemental   Indenture   authorizing   such   series   of Bonds;

provided,   however,   that if payment of the   interest on any Bonds of any series

shall be in default at the time of   authentication of any fully registered Bonds

issued in lieu of Bonds surrendered for transfer or exchange, the effective date

of registration   shall be as of the date to which interest has been paid in full

on the Bonds surrendered.

 

      SECTION   204.   METHOD   AND   PLACE OF   PAYMENT   OF   BONDS.   Payment   of the

principal and premium,   if any, on the Bonds shall be made (a) by check or draft

upon the   presentation   and   surrender   of such   Bonds as the same   respectively

become due and payable at the principal  

 

                                       10

<PAGE>

 

office of any Paying Agent named in the Bonds or (b) upon written request to the

Trustee of any Owner owning Bonds in an aggregate   principal   amount of at least

$500,000,   by   electronic   transfer to a bank for credit to the   account   number

filed with the Trustee no later than the Business Day immediately   preceding the

applicable   Record   Date (which   request   shall be signed by the Owner and shall

include the name of the bank, its address,   its ABA routing number and the name,

phone   number and contact   name   related to the Owner's   account at such bank to

which the payment is to be credited). Payment of the interest on each Bond shall

be made by the Trustee on each Interest   Payment Date to the person appearing as

the Owner thereof on the Bond Register by check or draft mailed to such Owner at

his   address as it appears on such Bond   Register   as of the   applicable   Record

Date.

 

      SECTION 205. EXECUTION AND AUTHENTICATION OF BONDS.

 

      (a) The Bonds   shall be   executed on behalf of the Issuer by the manual or

facsimile   signature   of its   Mayor/CEO   and attested by the manual or facsimile

signature of its Unified Clerk,   and shall have the corporate seal of the Issuer

affixed   thereto or imprinted   thereon.   In case any officer whose   signature or

facsimile thereof appears on any Bonds shall cease to be such officer before the

delivery of such Bonds, such signature or facsimile   thereof shall   nevertheless

be   valid   and   sufficient   for all   purposes,   the same as if such   person   had

remained in office   until   delivery.   Any Bond may be signed by such   persons as

shall   be the   proper   officers   to sign   such   Bond at the   actual   time of the

execution   of such Bond   although on the date of such Bond such   persons may not

have been such officers.

 

      (b) The Bonds shall have endorsed thereon a Certificate of   Authentication

substantially   in the form set   forth   in   ARTICLE   IV   hereof,   which   shall be

manually   executed by the Trustee.   No Bond shall be entitled to any security or

benefit   under this   Indenture or shall be valid or   obligatory   for any purpose

unless   and   until   such   Certificate   of   Authentication   shall   have been duly

executed by the Trustee.   Such executed   Certificate of Authentication   upon any

Bond shall be conclusive evidence that such Bond has been duly authenticated and

delivered under this Indenture.   The Certificate of   Authentication   on any Bond

shall be deemed to have been duly executed if signed by any   authorized   officer

or employee of the Trustee,   but it shall not be necessary that the same officer

or employee sign the Certificate of   Authentication on all of the Bonds that may

be issued hereunder at any one time.

 

      SECTION 206. REGISTRATION, TRANSFER AND EXCHANGE OF BONDS.

 

      (a) The   Trustee   shall keep books for the   registration   and   transfer of

Bonds as provided in this Indenture.

 

      (b)   Any   Bond   may be   transferred   or   exchanged   only   upon   the   books

maintained by Trustee for the   registration and transfer of Bonds upon surrender

thereof   to   the   Trustee   duly   endorsed   for   transfer   or   accompanied   by an

assignment duly executed by the Owner or his attorney or legal representative in

such form as shall be   satisfactory   to the Trustee.   Upon any such   transfer or

exchange,   the Issuer   shall   execute and the   Trustee   shall   authenticate   and

deliver   in   exchange   for   such   Bond a new   fully   registered   Bond or   Bonds,

registered in the name of the transferee,   of any   denomination or denominations

authorized   by this   Indenture   in an   aggregate   principal   amount equal to the

principal   amount of such Bond,   of the same   series and   maturity   and   bearing

interest at the same rate.

 

      (c) The Bonds and any interest in the Bonds shall be transferable   only to

a "qualified   institutional   buyer" as defined in Rule 144A   promulgated   by the

SEC.

 

      (d) In all   cases   in   which   Bonds   shall   be   exchanged   or   transferred

hereunder,   the Issuer   shall   execute and the Trustee   shall   authenticate   and

deliver   at the   earliest   practicable   time new   Bonds in   accordance   with the

provisions   of this   Indenture.   All Bonds   surrendered   in any such exchange or

transfer   shall   forthwith be   cancelled by the Trustee.   The Trustee may make a

charge for every such   exchange or transfer of Bonds   sufficient to reimburse it

for any tax, fee or other   governmental   charge required to be paid with respect

to such exchange or transfer,   and such charge shall be paid by the Owner before

a new Bond shall be   delivered.   The fees and   charges of the Trustee for making

any   transfer   or   exchange   hereunder   and the   expense   of any   bond   printing

necessary   to effect such   transfer   or exchange   shall be paid by the Tenant as

Additional   Rent (as   defined   in the   Lease).   In the event any Owner   fails to

provide a correct taxpayer identification number to the Trustee, the Trustee may

make a charge   against   such Owner   sufficient   to pay any   governmental   charge

required to paid as a result of such failure. In compliance with Section 3406 of

the Code,   such amount may be deducted by the   Trustee   from   amounts   otherwise

payable to such Owner   hereunder or under the Bonds.   Neither the Issuer nor the

Trustee   shall be required   to make any   exchange or transfer of Bonds (i) on or

after a Record Date and   preceding   the Payment Date   immediately   subsequent to

such Record Date or (ii) in the case of any proposed redemption of Bonds, during

the 15 days immediately   preceding the selection of Bonds for such redemption or

after such Bonds or any portion thereof has been selected for redemption.

 

      SECTION 207.   PERSONS DEEMED OWNERS OF BONDS. The person in whose name any

Bond shall be   registered   as shown on the   registration   books   required   to be

maintained   by the Trustee by this   Section   shall be deemed and regarded as the

absolute   owner   thereof   for all   purposes.   Payment   of, or on   account of the

principal of and premium,   if any, and,   interest on any such Bond shall be made

only to or upon the order of the Owner thereof or his legal representative.   All

such   payments   shall be valid   and   effectual   to   satisfy   and   discharge   the

liability upon such Bond,   including the interest thereon,   to the extent of the

sum or sums so paid.

 

      SECTION 208. AUTHORIZATION OF SERIES 2001 BONDS.

 

      (a) There shall be initially issued and secured pursuant to this Indenture

a series   of Bonds in the   aggregate   principal   amount of   $22,075,000   for the

purpose of   providing   funds to pay Costs of Issuance and Project   Costs,   which

Bonds shall be designated as provided in SECTION 201 hereof.

 

 

                                       11

<PAGE>

 

       The Series 2001 Bonds shall be dated   February 1, 2001,   shall   become due

(subject to prior   redemption as hereinafter   provided in ARTICLE III) and shall

bear interest from the dated date or the Interest Payment Date to which interest

has been paid at the rates as follows:

 

                                   TERM BONDS

 

               $680,000 6.750% TERM BONDS MATURING OCTOBER 1, 2005

 

              $1,720,000 7.000% TERM BONDS MATURING OCTOBER 1, 2009

 

              $6,690,000 7.410% TERM BONDS MATURING OCTOBER 1, 2016

 

             $12,985,000 7.650% TERM BONDS MATURING OCTOBER 1, 2022

 

      (b)   Interest   on the   Series   2001   Bonds   shall be payable to the Owners

thereof in accordance with the provisions of SECTION 204 hereof.

 

      (c) The Trustee is hereby   designated as the Issuer's Paying Agent for the

payment of the   principal of,   premium,   if any, and interest on the Series 2001

Bonds.

 

      (d) Upon the original   issuance and delivery of the Series 2001 Bonds, the

effective   date of   registration   of the Series   2001 Bonds shall be February 1,

2001.

 

      (e) The Series   2001 Bonds shall be   substantially   in the form and manner

set forth in ARTICLE IV hereof and delivered to the Trustee for   authentication,

but prior to or   simultaneously   with the   authentication   and   delivery   of the

Series   2001 Bonds by the   Trustee,   there   shall be filed with the   Trustee the

following:

 

            (i) an   original   or   certified   copy of the   Ordinance   adopted   by

      Issuer's   governing   body   authorizing   the   issuance of the Bonds and the

      execution of this Indenture and the Lease;

 

            (ii) an original executed counterpart of this Indenture;

 

            (iii) an original executed counterpart of the Lease;

 

            (iv) an original executed counterpart of the Sublease;

 

            (v) an opinion or   opinions   of Bond   Counsel to the effect that the

      Series 2001 Bonds constitute valid and legally binding   obligations of the

      Issuer and that the   interest on the Bonds is exempt   from   Kansas   income

      taxation,   subject   to such   limitations   and   restrictions   as   shall   be

      described therein;

 

            (vi) a request   and   authorization   to the   Trustee on behalf of the

      Issuer to   authenticate   the Bonds and to deliver   the Bonds to the Series

      2001 Placement   Agent upon payment to the Trustee,   for the account of the

      Issuer,   of the purchase   price thereof (and the Trustee shall be entitled

      to conclusively   rely upon such request and authorization as to the amount

      of such purchase price); and

 

            (vii) such other certificates, statements, receipts and documents as

      the Trustee or Bond Counsel shall   reasonably   require for the delivery of

      the Series 2001 Bonds.

 

      (f) When the documents   specified in subsection   (e) of this Section shall

have been filed with the Trustee, and when the Series 2001 Bonds shall have been

executed and   authenticated   as required by this   Indenture,   the Trustee   shall

deliver the Series 2001 Bonds to or upon the order of the Series 2001   Placement

Agent,   but only upon payment to the Trustee of the purchase price of the Series

2001 Bonds. The proceeds of the sale of the Series 2001 Bonds, including accrued

interest and premium   thereon,   if any,   shall be   immediately   paid over to the

Trustee,   and the Trustee   shall   deposit and apply such proceeds as provided in

ARTICLE V hereof.

 

      SECTION 209. AUTHORIZATION OF ADDITIONAL BONDS.

 

      (a) Additional   Bonds may be issued under and equally and ratably   secured

by this   Indenture   on a   parity   with   the   Series   2001   Bonds   and any   other

Additional Bonds   Outstanding at any time and from time to time, upon compliance

with   the   conditions   hereinafter   provided   in   this   Section,   for any of the

following purposes:

 

            (i) to provide funds to pay the costs of completing the construction

      of the Project,   the total of such costs to be evidenced by a   certificate

      signed by the Authorized Tenant Representative and the Project


 
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