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MnDOT Agreement #06820 B. It must contain a provision setting forth the statutory authority under which the Grant Recipient is entering into the Use Contract, and must comply with the substantive and procedural provisions of such statute. C. It must contain a provision stating that the Use Contract is being entered into in order to carry out the purpose for which the Grant was allocated, and must recite the purpose. D. It must be for a term, including any renewals that are solely at the option of the Usee, that is, if applicable, substantially less than the useful life of the structures and improvements that make up the Facility, but may allow for renewals beyond the original term upon a determination by the Grant Recipient that the use continues to carry out the specific purpose for which the Grant was allocated. A term that is equal to or shorter than 50% of the useful life of the structures and improvements that make up the Facility will meet the requirement that it be for a time period that is substantially shorter than the useful life of such structures and improvements. E. It must allow for termination by the Grant Recipient in the event of a default thereunder by the Usee, or in the event that the specific purpose for which the Grant was allocated is terminated or changed. F. It must require the Usee to pay all costs of operation and maintenance of the Real Property and, if applicable, the Facility, unless the Grant Recipient is authorized by law to pay such costs and agrees to pay such costs. G. If the Grant Recipient pays monies to a Usee under a Use Contract, such Use Contract must meet the requirements of Rev. Proc. 97-13, 1997-1 CB 632, so that such Use Contract does not result in "private business use" under Section 141(b) of the Code. H. It must be approved, in writing, by the Commissioner of Management and Budget, and any Use Contract that is not approved, in writing, by the Commissioner of Management and Budget shall be null and void and of no force or effect. I. It must contain a provision requiring that each and every party thereto shall, upon direction by the Commissioner of Management and Budget, take such actions and furnish such documents to the Commissioner of Management and Budget as the Commissioner of Management and Budget determines to be necessary to ensure that the interest to be paid on the G.O. Bonds is exempt from federal income taxation. J. It must contain a provision that prohibits the Usee from creating or allowing any lien or encumbrance that is prior and superior to the Declaration to be created on or imposed upon the Real Property or, if applicable, Facility, whether such lien or encumbrance is voluntary or involuntary and including but not limited to a mechanic's lien or a mortgage lien, without the prior written consent of the State Entity and the Commissioner of Management and Budget. Little Caanda GO Bond Proceeds Grant Agreement Ver — 5/06/15 for MnDOT Antiquated Equipment Grants 1 9