TERMINATION OF LEASE

WHEREAS, on March 1, 1990, the City of Lawrence, Kansas (the “City”) issued its Industrial Revenue Bonds (Kinedyne Project) Series 1995A, in the aggregate original principal amount of $1,850,000 (the “Bonds”), to finance and refinance the acquisition, construction and equipping of certain manufacturing facilities, including the real property described in Exhibit A hereto (the real property, building, equipment and improvements financed or refinanced in whole or in part out of proceeds of the Bonds being collectively referred to as the “Project”); and

WHEREAS, the Bonds were issued pursuant to Ordinance No. 6100 (the “Ordinance”) and a Trust Indenture dated as of March 1, 1990 (the “Indenture”), between the City and Merchants National Bank of Topeka, Topeka, Kansas, as trustee (the “Trustee”); and

WHEREAS, in connection with the issuance of the Bonds, the City, as lessor, and James M. Klausmann and Jacklyn S. Klausmann, as lessee (the “Lessee”), entered into a Lease dated as of March 1, 1990 (the “Lease”); and

WHEREAS, the City filed a Notice of such Lease with the Douglas County Register of Deeds on March 1, 1990, which Notice was recorded in Book 442, Page 997; and

WHEREAS, the City assigned its interest in the Lease (except for certain rights set forth therein) to the Trustee pursuant to an Assignment of Lease dated as of March 22, 1990; and

WHEREAS, the Lessee has made provision for payment of all amounts payable under the Lease, including payment of all outstanding Bonds and all fees, taxes, penalties, costs and expenses of the Trustee and the City, and the City is conveying the Project to the Lessee;

NOW, THEREFORE, THE CITY, THE TRUSTEE AND THE LESSEE DO HEREBY STATE AND DECLARE:

That as of the date hereof the Lease shall terminate and be of no further force and effect. The real property located in Douglas County, Kansas affected by the Lease is described in Exhibit A attached hereto and incorporated herein by reference.

IN WITNESS WHEREOF, the parties named above have caused this Termination of Lease to be duly executed in their respective names and their respective seals to be hereunto affixed and attested by their duly authorized officers, as of the ____ day of August, 2013.

CITY OF LAWRENCE, KANSAS

_______________________________________

Vice Mayor

[SEAL]

ATTEST:

_______________________________________

City Clerk

STATE OF KANSAS )

) SS.

COUNTY OF DOUGLAS )

On this ____ day of August, 2013, before me, a Notary Public in and for said State, personally appeared MIKE AMYX and JONATHAN M. DOUGLASS, to me personally known, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Lawrence, Kansas, a municipal corporation duly authorized, incorporated and existing under and by virtue of the Constitution and laws of the State of Kansas, and that the seal affixed to the foregoing instrument is the seal of said City, and that said instrument was signed and sealed on behalf of said City by authority of its governing body, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said City.

IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above written.

_______________________________________

Notary Public - State of Kansas

[SEAL]

My appointment expires _______________________.

JAMES M. KLAUSMANN

STATE OF KANSAS )

) SS.

COUNTY OF DOUGLAS )

On this ______ day of July, 2013, before me, a Notary Public in and for said State, personally appeared James M. Klausmann, to me personally known, and that said instrument was signed by him said person acknowledged said instrument to be the free act and deed.

IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above written.

_______________________________________

Notary Public–State of Kansas

Commissioned in __________________

[SEAL]

My commission or appointment expires _______________________.

JACKLYN S. KLAUSMANN

STATE OF KANSAS )

) SS.

COUNTY OF DOUGLAS )

On this ______ day of July, 2013, before me, a Notary Public in and for said State, personally appeared Jacklyn S. Klausmann, to me personally known, and that said instrument was signed by her said person acknowledged said instrument to be the free act and deed.

IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my notarial seal the day and year last above written.

_______________________________________

Notary Public–State of Kansas

Commissioned in __________________

[SEAL]

My commission or appointment expires _______________________.