UNITED  STATES SECURITIES  AND  EXCHANGE  COMMISSION Washington,  D.C.  20549 FORM  8-­K CURRENT  REPORT Pursuant  to  Section  13  or  15(d) of  the  Securities  Exchange  Act  of  1934 Date  of  Report  (date  of  earliest  event  reported):  January  14,  2014 Arc  Logistics  Partners  LP (Exact  name  of  registrant  as  specified  in  its  charter) Delaware   (State  or  Other  Jurisdiction  of Incorporation  or  Organization) 001-­36168   (Commission File  Number)   36-­4767846   (I.R.S.  Employer Identification  No.) 725  Fifth  Avenue,  19  th  Floor New  York,  New  York   10022 (Address  of  Principal  Executive  Offices)   (Zip  Code) Registrant’s  telephone  number,  including  area  code:  (212)  993-­1290 Check  the  appropriate  box  below  if  the  Form  8-­K  filing  is  intended  to  simultaneously  satisfy  the  filing  obligation  of  the registrant  under  any  of  the  following  provisions: ¨ Written  communications  pursuant  to  Rule  425  under  the  Securities  Act  (17  CFR  230.425) ¨ Soliciting  material  pursuant  to  Rule  14a-­12  under  the  Exchange  Act  (17  CFR  240.14a-­12) ¨ Pre-­commencement  communications  pursuant  to  Rule  14d-­2(b)  under  the  Exchange  Act  (17  CFR  240.14d-­2(b)) ¨ Pre-­commencement  communications  pursuant  to  Rule  13e-­4(c)  under  the  Exchange  Act  (17  CFR  240.13e-­4(c)) Item  1.01. Entry  Into  a  Material  Definitive  Agreement. On  October  17,  2013,  LCP  Oregon  Holdings,  LLC  (“  LCP  Oregon  ”),  a  wholly  owned  subsidiary  of  Lightfoot  Capital Partners,  LP  (“  Lightfoot  ”)  and  Lightfoot  Capital  Partners  GP  LLC,  entered  into  a  Purchase  and  Sale  Agreement  (the  “ Purchase  Agreement  ”)  with  the  current  owner  of  a  petroleum  products  terminals  located  in  Portland,  Oregon  (the  “  Portland Terminal  Facility  ”).  The  Purchase  Agreement  provides  for  LCP  Oregon  to  acquire  the  Portland  Terminal  Facility  and  certain associated  non-­real  property  rights  (the  “  Ancillary  Assets  ”)  for  a  purchase  price  of  $40  million. On  January  14,  2014,  Arc  Terminals  Holdings  LLC  (“  Arc  Terminals  ”),  a  wholly  owned  subsidiary  of  Arc  Logistics Partners  LP  (“  Arc  Logistics  ”),  Lightfoot  and  CorEnergy  Infrastructure  Trust,  Inc.  (“  CorEnergy  ”)  entered  into  an  agreement whereby  CorEnergy  will  acquire  from  Lightfoot  100%  of  the  ownership  interests  in  LCP  Oregon  (the  “  Membership  Interests Purchase  Agreement  ”)  for  nominal  consideration  and  reimbursement  of  approximately  $1  million  of  amounts  paid  and expenses  incurred  by  Lightfoot  in  connection  with  due  diligence  for  the  acquisition  of  the  Portland  Terminal  Facility  and whereby  upon  and  subject  to  the  closing  of  the  acquisition  of  the  Portland  Terminal  Facility,  Arc  Terminals  will  enter  into  a 15  year  triple  net  operating  lease  agreement  relating  to  the  use  of  the  Portland  Terminal  Facility.  Arc  Logistics  will  guaranty the  obligations  of  Arc  Terminals  under  the  Lease  Agreement.  Further  at  such  time,  LCP  Oregon  will  sell  certain  Ancillary Assets  to  Arc  Terminals  for  a  purchase  price  of  $116,000.  The  transactions  are  expected  to  close  in  late  January  2014. CorEnergy  holds  a  direct  investment  in  Lightfoot  (6.6  percent)  and  Lightfoot  Capital  Partners  GP  LLC,  the  general partner  of  Lightfoot  (1.5  percent).  Lightfoot’s  assets  include  common  units  and  subordinated  units  representing  an approximately  40  percent  aggregate  limited  partner  interest,  and  a  non-­economic  general  partner  interest,  in  Arc  Logistics.  An employee  of  an  affiliate  of  CorEnergy  currently  serves  as  a  director  on  the  board  of  directors  of  Arc  Logistics  GP  LLC,  the general  partner  of  Arc  Logistics. The  foregoing  description  of  the  Membership  Interests  Purchase  Agreement  is  not  complete  and  is  qualified  in  its entirety  by  reference  to  the  full  text  of  the  Membership  Interests  Purchase  Agreement,  which  is  filed  as  Exhibit  2.1  to  this Current  Report  on  Form  8-­K  and  incorporated  in  this  Item  1.01  by  reference. Item  7.01. Regulation  FD  Disclosure. The  following  disclosure  was  made  in  connection  with  CorEnergy’s  financing  of  the  acquisition  of  the  Portland Terminal  Facility: THE  PORTLAND  TRANSACTION The  Purchase  Agreement  and  Acquisition  of  LCP  Oregon On  October  17,  2013,  LCP  Oregon,  which  at  the  time  was  a  wholly  owned  subsidiary  of  Lightfoot,  entered  into  the Purchase  Agreement  with  the  current  owner  of  the  Portland  Terminal  Facility.  The  Purchase  Agreement  provides  for  LCP Oregon  to  acquire  the  Portland  Terminal  Facility  and  certain  of  the  Ancillary  Assets  for  a  purchase  price  of  $40  million.  The Purchase  Agreement,  as  amended,  is  described  in  more  detail  below. Subsequent  to  the  execution  of  the  Purchase  Agreement  and  in  contemplation  of  the  acquisition  of  the  Portland Terminal  Facility  and  Ancillary  Assets  and  the  lease  of  the  Portland  Terminal  Facility  to  Arc  Terminals  (together  the  “ Portland  Transaction  ”)  as  described  herein,  CorEnergy  has  entered  into  the  Membership  Interests  Purchase  Agreement  with Lightfoot  to  acquire  100%  of  the  ownership  interests  in  LCP  Oregon  for  nominal  consideration  and  reimbursement  of approximately  $1  million  of  amounts  paid  and  expenses  incurred  by  Lightfoot  in  connection  with  due  diligence  for  the acquisition  of  the  Portland  Terminal  Facility.  Upon  the  closing  of  the  acquisition  of  LCP  Oregon,  LCP  Oregon  will  be  a wholly  owned  subsidiary  of  CorEnergy. The  Purchase  Agreement  defines  the  varying  assets  that  are  included  within  the  Portland  Terminal  Facility  and  contains certain  representations  and  warranties  from  the  seller  related  to  the  proposed  acquisition.  LCP  Oregon  also  has  the  option  to terminate  the  Purchase  Agreement  at  any  time,  subject  only  to  forfeiture  of  an  applicable  termination  fee. Upon  and  subject  to  the  closing  of  the  acquisition  of  the  Portland  Terminal  Facility,  the  Lease  Agreement  (as  further described  below)  will  be  signed.  Further,  at  such  time,  LCP  Oregon  will  also  close  on  an  Asset  Purchase  Agreement  with  Arc Terminals  to  sell  certain  of  the  Ancillary  Assets  to  Arc  Terminals  for  a  purchase  price  of  $116,000. The  Lease  Agreement Terms  of  the  Lease  Agreement The  Lease  Agreement  will  be  executed  upon  the  closing  of  the  acquisition  of  the  Portland  Terminal  Facility  and  its initial  term  will  begin  contemporaneously  with  the  closing  of  the  acquisition  of  the  Portland  Terminal  Facility.  Arc Terminals’  obligations  under  the  Lease  Agreement  will  be  guaranteed  by  Arc  Logistics  pursuant  to  the  terms  of  the  Guaranty. The  Lease  Agreement  has  a  fifteen  year  initial  term  and  may  be  extended  for  additional  five  year  terms  at  the  sole  discretion  of Arc  Terminals.  The  rent  will  be  renegotiated  for  any  extended  term  but  in  the  event  that  the  parties  are  unable  to  negotiate rent,  the  rent  will  increase  each  year  according  to  a  formula  described  below.  During  the  initial  term,  Arc  Terminals  will  make base  monthly  rental  payments  (to  be  increased  on  the  fifth  anniversary  by  the  change  in  the  consumer  price  index  for  the  prior five  years,  and  every  year  thereafter  by  the  greater  of  2  percent  or  the  change  in  the  consumer  price  index)  and  variable  rent payments  based  on  the  volume  of  liquid  hydrocarbons  that  flowed  through  the  Portland  Terminal  Facility  in  a  prior  month. The  base  rent  in  the  initial  year  of  the  Lease  Agreement  will  be  a  minimum  of  approximately  $230,000  per  month  through July  2014  (prorated  for  the  partial  month  of  January  2014)  and  approximately  $417,522  for  the  month  of  August  2014  and each  month  thereafter.  The  base  rent  is  also  expected  to  increase  each  month  starting  with  the  month  of  August  at  a  rate  of one-­twelfth  of  11.5%  of  the  costs  incurred  by  LCP  Oregon  at  the  Portland  Terminal  Facility  for  specified  construction  costs, estimated  at  $10  million.  Assuming  such  improvements  are  completed,  the  base  rent  will  increase  by  approximately  $96,000 per  month.  Variable  rent  will  result  from  the  flow  of  hydrocarbons  through  the  Portland  Terminal  Facility  in  excess  of  a designated  threshold  of  12,500  barrels  per  day  of  oil  equivalent.  The  base  rent  is  not  influenced  by  the  flow  of  hydrocarbons. Variable  rent  is  capped  at  30%  of  total  rent,  which  is  the  equivalent  of  the  Portland  Terminal  Facility’s  expected  throughput capacity. The  Lease  Agreement  provides  that  Arc  Terminals  will  be  responsible  for,  among  other  matters,  maintaining  the  Portland Terminal  Facility  in  good  operating  condition,  paying  all  utilities  for  the  Portland  Terminal  Facility,  insuring  the  Portland Terminal  Facility  and  repairing  the  Portland  Terminal  Facility  in  the  event  of  any  casualty  loss,  paying  property  and  similar taxes  resulting  from  ownership  of  the  Portland  Terminal  Facility,  and  causing  the  Portland  Terminal  Facility  to  comply  with all  environmental  and  other  regulatory  laws,  rules  and  regulations.  The  obligations  of  Arc  Terminals  under  the  Lease Agreement  will  be  guaranteed  by  Arc  Logistics.  The  Lease  Agreement  grants  Arc  Terminals  substantially  all  authority  to operate,  and  imposes  on  them  the  responsibility  for  the  operation  of,  the  Portland  Terminal  Facility.  The  Lease  Agreement provides  LCP  Oregon  no  control  over  the  operation,  maintenance,  management,  or  regulatory  compliance  of  the  Portland Terminal  Facility. The  Lease  Agreement  imposes  numerous  obligations  on  LCP  Oregon,  including  keeping  confidential  certain information  provided  to  it  by  Arc  Terminals  and  keeping  the  Portland  Terminal  Facility  free  of  certain  liens.  The  Lease Agreement  also  provides  that  LCP  Oregon  will  not  be  indemnified  against  or  reimbursed  for  the  first  $200,000  of  any environmental  liability  it  may  incur  related  to  the  Portland  Terminal  Facility,  to  the  extent  such  liability  is  not  covered  by  an agreement  with  a  prior  owner  or  by  insurance.  Thereafter,  Arc  Terminals  is  responsible  for  any  and  all  such  liability. So  long  as  Arc  Terminals  is  not  in  default  under  the  Lease  Agreement,  it  shall  have  the  right  to  purchase  the  Portland Terminal  Facility  at  the  end  of  the  third  year  of  the  Lease  Agreement  and  at  the  end  of  any  month  thereafter  by  delivery  of  90 days’  notice.  The  purchase  price  shall  be  nine  times  the  greater  of  (i)  the  total  of  base  rent  and  variable  rent  for  the  12  months immediately  preceding  the  notice,  or  (ii)  $7,300,000.  If  the  purchase  right  is  not  exercised,  the  Lease  Agreement  shall  remain in  place  and  Arc  Terminals  shall  continue  to  pay  rent  as  provided  above.  Arc  Terminals  also  has  the  option  to  terminate  the Lease  Agreement  on  the  fifth  and  tenth  anniversaries  by  providing  written  notice  12  months  in  advance  for  a  termination  fee of  $4  million  and  $6  million,  respectively. In  addition,  a  portion  of  the  pipelines  that  connect  to  a  neighboring  facility  will  be  the  subject  of  a  separate  lease agreement  between  the  parties,  which  will  be  co-­terminus  with  the  Lease  Agreement.  A  portion  of  the  total  rent  under  the Lease  Agreement  will  be  allocated  to  this  separate  pipeline  lease  agreement. 2 The  Portland  Terminal  Facility The  Portland  Terminal  Facility  is  a  rail/marine  facility  property  adjacent  to  the  Willamette  River  in  Portland,  Oregon. The  39-­acre  site  has  84  tanks  with  a  total  storage  capacity  of  1,466,000  barrels.  The  Portland  Terminal  Facility  is  capable  of receiving,  storing  and  delivering  heavy  and  refined  petroleum  products.  Products  are  received  and/or  delivered  via  railroad, marine  (up  to  Panamax  size  vessels)  or  truck  loading  rack.  The  marine  facilities  are  accessed  through  a  neighboring  terminal facility  via  an  owned  pipeline.  The  Portland  Terminal  Facility  offers  heating  systems,  emulsions  and  an  on-­site  product testing  laboratory  as  ancillary  services. Terminal  Improvement  Projects After  the  closing  of  the  Portland  Transaction,  CorEnergy  anticipates  funding  an  additional  $10  million  of  terminal related  improvement  projects  in  support  of  Arc  Terminals’  commercial  strategy  to  optimize  the  Portland  Terminal  Facility  and generate  stable  cash  flows,  including:  i)  clean,  inspect  and  upgrade  a  portion  of  the  existing  storage  assets;;  ii)  enhance existing  terminal  infrastructure;;  and  iii)  develop,  design,  engineer  and  construct  throughput  expansion  opportunities. Environmental  Considerations The  Portland  Terminal  Facility  (the  “  Facility  ”)  historically  has  operated  as  a  petroleum  products  storage  terminal  since 1947.  The  current  owner  acquired  the  Facility  in  2005.  A  12,000  barrel  per  day  (bbl/d)  refining  operation  that  previously  was used  in  the  asphalt  manufacturing  and  finishing  process  ceased  operations  in  November  2006  and  was  officially  closed  in December  2008.  Over  the  last  decade,  the  Facility  has  been  used  principally  for  the  storage  of  crude  oil,  asphalt,  VGO,  jet-­fuel and  other  refined  petroleum  products.  As  the  site  has  been  in  operation  since  1947,  numerous  releases  have  occurred,  resulting in  localized  impacts  to  soil  and  groundwater  at  the  site  by  petroleum  hydrocarbons,  volatile  organic  compounds  (“  VOCs  ”), polycyclic  aromatic  hydrocarbons  (“  PAHs  ”),  and  metals.  Most  of  the  known  releases  occurred  prior  to  the  current  owner’s purchase  of  the  Facility  in  2005.  The  prior  owners  of  the  Facility  have  investigated  the  environmental  conditions  in consultation  with  the  Oregon  Department  of  Environmental  Quality  (“  ODEQ  ”).  In  addition,  the  prior  owners  have  been remediating  the  Facility  to  address  the  recommendations  of  the  ODEQ.  While  these  actions  have  improved  the  environmental conditions  at  the  Facility,  due  to  changing  environmental  regulations,  additional  costs  could  be  incurred  related  to  future remediation  efforts. Additionally,  while  it  does  not  occupy  river  frontage,  the  Facility  is  located  approximately  1,000  feet  south  of  the Willamette  River.  The  section  of  the  Willamette  River  near  the  facility  is  a  portion  of  the  Portland  Harbor,  which  was designated  as  a  Superfund  site  by  the  Environmental  Protection  Agency  (the  “  EPA  ”)  in  2000.  Portland  Harbor  is contaminated  with  PAH’s,  heavy  metals,  PCBs  and  other  contaminants  as  the  result  of  more  than  a  century  of  industrial  use along  the  Willamette  River.  The  Superfund  site  is  currently  in  the  Remedial  Investigation/Feasibility  Study  phase  of  the Superfund  process,  and  its  final  boundaries  have  not  yet  been  determined.  The  Remedial  Investigation/Feasibility  Study  is being  performed  by  a  group  of  14  potentially  responsible  parties  (“  PRPs  ”)  identified  by  the  EPA  (the  “  Lower  Willamette Group  ”  or  “  LWG  ”).  The  current  owner  of  the  Facility  is  not  a  member  of  the  LWG.  Under  the  terms  of  the  Purchase Agreement,  any  potential  future  liabilities  related  to  the  Portland  Harbor  Superfund  site  and  assessed  against  the  current owner  of  the  Portland  Terminal  Facility  would  become  the  responsibility  of  LCP  Oregon.  After  LCP  Oregon  acquires  the Portland  Terminal  Facility  and  if  that  facility  is  subsequently  made  part  of  the  Portland  Harbor  Superfund  site,  LCP  Oregon could  become  a  responsible  party  under  the  terms  of  the  Purchase  Agreement. After  LCP  Oregon  acquires  the  Facility  and  the  Facility  is  subsequently  made  part  of  the  Superfund  Site,  LCP  Oregon could  become  a  liable  party  as  a  current  “owner  or  operator”  of  a  Superfund  facility,  in  addition  to  being  responsible  for  any liabilities  assumed  from  the  current  owner  as  either  a  former  “owner  or  operator”  or  a  person  who  “arranged  for”  disposal  into the  River. 3 The  Lease  Agreement  includes  provisions  whereby  LCP  Oregon  has  agreed  to  indemnify  Arc  Terminals  up  to  $200,000 of  future  remediation  for  the  environmental  conditions  outlined  above  not  covered  by  agreements  with  prior  owners  or insurance,  after  which  Arc  Terminals  would  be  responsible  for  any  additional  remediation  related  costs.  This  figure  was developed  in  consultation  with  Arc  Terminals,  legal  counsel  and  third-­party  advisors. The  Franchise  Agreement LCP  Oregon  has  received  approval  from  the  City  Council  of  the  City  of  Portland,  Oregon  for  the  transfer  of  the  franchise agreement,  which  is  an  the  agreement  that  provides  authorization  for  the  pipelines  at  the  Portland  Terminal  Facility  to traverse  the  rights-­of-­way  associated  with  public  roadways  owned  by  the  City  of  Portland,  Oregon,  to  LCP  Oregon  from  the current  owner  of  the  Portland  Terminal  Facility.  Such  approval  could  potentially  be  made  subject  to  a  public  referendum through  the  close  of  business  on  January  17,  2014. Item  9.01. Financial  Statements  and  Exhibits. Exhibits. Exhibit   Number     2.1     Description Membership  Interests  Purchase  Agreement,  dated  January  14,  2014,  by  and  among  Lightfoot  Capital  Partners, L.P.,  CorEnergy  Infrastructure  Trust,  Inc.  and  Arc  Terminals  Holdings  LLC. 4 SIGNATURES Pursuant  to  the  requirements  of  the  Securities  Exchange  Act  of  1934,  the  registrant  has  duly  caused  this  report  to  be signed  on  its  behalf  by  the  undersigned  hereunto  duly  authorized.       Date:  January  14,  2014  ARC  LOGISTICS  PARTNERS  LP  By:   Arc  Logistics  GP  LLC,     its  general  partner            By:   /s/  Vincent  T.  Cubbage Name:          Vincent  T.  Cubbage     Title:              Chief  Executive  Officer INDEX  TO  EXHIBITS Exhibit   Number     2.1     Description Membership  Interests  Purchase  Agreement,  dated  January  14,  2014,  by  and  among  Lightfoot  Capital  Partners, L.P.,  CorEnergy  Infrastructure  Trust,  Inc.  and  Arc  Terminals  Holdings  LLC. Exhibit  2.1 EXECUTION  VERSION MEMBERSHIP  INTERESTS  PURCHASE  AGREEMENT THIS  MEMBERSHIP  INTERESTS  PURCHASE  AGREEMENT  (this  “  Agreement  ”)  is  made  and  entered  into  as  of  the 14th  day  of  January,  2014  by  and  among  LIGHTFOOT  CAPITAL  PARTNERS,  L.P.,  a  Delaware  limited  partnership  (“  Seller ”),  CORENERGY  INFRASTRUCTURE  TRUST,  INC.,  a  Maryland  corporation  (“  Buyer  ”),  and  ARC  TERMINALS HOLDINGS  LLC,  a  Delaware  limited  liability  company  (“  Lessee  ”). RECITALS A.  Seller  holds  100%  of  the  issued  and  outstanding  membership  interests  of  LCP  Oregon  Holdings,  LLC,  a  Delaware limited  liability  company  (the  “  Company  ”  and,  such  membership  interests,  the  “  Interests  ”). B.  The  Company  is  a  party  to  that  certain  Purchase  and  Sale  Agreement,  dated  as  of  October  17,  2013  (the  “  Willbridge Facility  PSA  ”),  with  Paramount  of  Oregon,  LLC  (“  Paramount  Oregon  ”),  pursuant  to  which  the  Company  has  agreed,  subject to  specified  terms  and  conditions,  to  purchase  (i)  a  terminal  facility  located  in  Portland,  Oregon  (the  “  Willbridge  Facility  ”), (ii)  a  pipeline  system  that  serves  the  Willbridge  Facility,  and  that  is  operated  in  or  below  the  public  streets  in  the  City  of Portland  pursuant  to  a  franchise  granted  by  the  City  of  Portland  (the  “  Pipeline  System  ),  and  (iii)  certain  other  assets, contracts,  and  rights  relating  to  the  Willbridge  Facility  (the  “  Ancillary  Assets  ”). C.  Seller  desires  to  sell  to  Buyer,  and  Buyer  desires  to  purchase  from  Seller,  the  Interests,  subject  to  and  in  accordance with  the  terms  and  conditions  of  this  Agreement,  such  sale  and  purchase  to  occur  immediately  prior  to  the  closing  of  the transactions  contemplated  by  the  Willbridge  Facility  PSA  (the  “  Willbridge  Facility  Closing  ”). D.  Immediately  following  the  Willbridge  Facility  Closing,  the  Company  and  Lessee  (an  affiliate  of  Seller)  will  enter  into a  Lease  in  the  form  attached  hereto  as  Exhibit  A  (the  “  Willbridge  Facility  Lease  ”),  pursuant  to  which  the  Company  will  lease to  Lessee,  and  Lessee  will  lease  from  the  Company,  the  Willbridge  Facility. E.  Immediately  following  the  Willbridge  Facility  Closing,  the  Company  and  Lessee  (an  affiliate  of  Seller)  will  enter  into a  Pipeline  System  Lease  on  terms  agreed  to  by  Buyer  and  Lessee  as  of  the  date  hereof  (the  “  Pipeline  System  Lease  ”), pursuant  to  which  the  Company  will  lease  to  Lessee,  and  Lessee  will  lease  from  the  Company,  the  Pipeline  System. F.  Immediately  following  the  Willbridge  Facility  Closing,  the  Company  and  Lessee  will  enter  into  an  Asset  Purchase Agreement  on  terms  agreed  to  by  Buyer  and  Lessee  as  of  the  date  hereof  (the  “  Willbridge  APA  ”),  pursuant  to  which  the Company  will  sell  to  Lessee,  and  Lessee  will  purchase  from  the  Company,  certain  of  the  Ancillary  Assets. G.  Immediately  following  the  Willbridge  Facility  Closing,  the  Company  and  Lessee  will  enter  into  a  Project Management  Agreement  on  terms  agreed  to  by  Buyer  and  Lessee  as  of the  date  hereof  (the  “  Willbridge  PMA  ”),  pursuant  to  which  Lessee  will  provide  project  management  services  to  the  Company in  the  coordination  and  management  of  the  design,  construction,  equipment  procurement  and  installation,  commissioning, start-­up,  and  testing  of  the  certain  project  improvements  at  the  Willbridge  Facility. H.  In  this  Agreement,  the  Willbridge  Facility  Lease,  the  Pipeline  System  Lease,  the  Willbridge  APA,  and  the  Willbridge PMA  are  collectively  referred  to  as  the  “  Arc  Transaction  Agreements  .” AGREEMENT NOW,  THEREFORE,  in  consideration  of  the  covenants  and  agreements  set  forth  herein,  and  for  other  good  and  valuable consideration,  the  receipt  and  sufficiency  of  which  are  hereby  acknowledged  by  the  parties  hereto,  the  parties  agree  as follows: 1.  Sale  and  Transfer  of  Interests  .  Subject  to  the  terms  and  conditions  set  forth  in  this  Agreement,  at  the  Closing  (as defined  below),  Buyer  shall  purchase  the  Interests  from  Seller,  and  Seller  shall  sell  and  transfer  the  Interests  to  Buyer,  free  and clear  of  any  liens,  claims,  rights,  charges,  security  interests,  options,  pledges,  restrictions,  or  encumbrances  of  any  nature whatsoever,  whether  imposed  by  contract,  legal  requirement,  equity,  or  otherwise  (collectively,  “  Encumbrances  ”). 2.  Purchase  Price  .  The  purchase  price  for  the  Interests  shall  be  TEN  DOLLARS  ($10.00)  (the  “  Purchase  Price  ”).  At  the Closing,  Buyer  shall  pay  the  Purchase  Price  to  Seller  in  cash  or  by  such  other  manner  as  the  parties  agree. 3.  Closing  .  Subject  to  the  conditions  set  forth  in  Sections  8  and  9  below,  the  closing  of  the  purchase  and  sale  of  the Interests  hereunder  (the  “  Closing  ”)  shall  take  place  on  the  date  of  the  Willbridge  Facility  Closing  (the  “  Closing  Date  ”),  and immediately  prior  to,  the  Willbridge  Facility  Closing  (it  being  the  intent  of  the  parties  that  the  Closing  will  not  occur  unless Willbridge  Facility  Closing  occurs  immediately  after  the  Closing).  The  Closing  shall  take  place  at  the  offices  of  Husch Blackwell  LLP  in  Kansas  City,  Missouri,  or  at  such  other  place  as  the  parties  agree.  Lessee  agrees  to  deliver  to  Buyer  the  Arc Transaction  Agreements  at  the  Closing,  duly  signed  by  Lessee,  and  Buyer  agrees  to  cause  the  Company  to  deliver  to  Lessee the  Arc  Transaction  Agreements  immediately  after  the  Willbridge  Facility  Closing,  duly  signed  by  the  Company. 4.  Representations  and  Warranties  of  Seller  .  Seller  hereby  represents  and  warrants  to  Buyer,  as  of  the  date  hereof  and  as of  the  Closing  Date,  as  follows: (a)  Authority;;  Execution  and  Delivery;;  Enforceability  .  Seller  is  a  limited  partnership  duly  organized  and  in  good standing  under  the  laws  of  the  State  of  Delaware.  Seller  has  all  requisite  power  and  authority  to  own  the  Interests  and  to execute,  deliver,  and  perform  its  obligations  under  this  Agreement.  The  execution,  delivery,  and  performance  by  Seller of  this  Agreement  have  been  duly  authorized  by  all  necessary  action  on  the  part  of  Seller.  Seller  has  duly  executed  and delivered  this  Agreement,  and  this  Agreement  constitutes  the  legal,  valid,  and  binding  obligation  of  Seller,  enforceable against  Seller  in  accordance  with  its  terms  (subject  to  applicable  legal  and  equitable  limitations). 2 (b)  Ownership  of  Shares  .  Seller  owns  the  Interests  free  and  clear  of  any  Encumbrances,  and,  except  as  contemplated by  this  Agreement,  Seller  has  not  directly  or  indirectly  sold  or  otherwise  transferred  any  interest  in  (including  as  security for  any  debt  or  other  obligation),  or  granted  any  right  to  purchase  or  otherwise  acquire  any  interest  in,  any  of  the Interests.  The  Interests  are  uncertificated. (c)  No  Conflicts  .  No  authorization,  consent,  notice,  registration,  or  filing  with  any  governmental,  regulatory, administrative,  judicial  entity  or  authority  or  any  other  person  or  entity  is  required  for  or  in  connection  with  the execution,  delivery,  and  performance  of  this  Agreement  by  Seller,  or  for  or  in  connection  with  the  transfer  of  the  Interests to  Buyer  hereunder,  and  Seller  is  not  subject  to  any  legal,  regulatory,  administrative,  judicial,  contractual,  equitable  or other  prohibition,  restriction,  limitation,  or  impediment  of  any  nature  whatsoever  relating  to  or  in  respect  of  the execution,  delivery,  or  performance  of  this  Agreement  by  Seller. (d)  Organization  and  Existence  of  the  Company  .  The  Company  is  a  limited  liability  company  duly  organized  and in  good  standing  under  the  laws  of  the  States  of  Delaware  and  Oregon.  Seller  has  delivered  to  Buyer  true,  correct,  and complete  copies  of  all  of  the  organizational  documents  of  the  Company,  including  the  Company’s  certificate  of organization,  limited  liability  company  agreement,  and  all  member  resolutions  (whether  adopted  by  consent  action  or otherwise). (e)  Capitalization  of  the  Company  .  The  Interests  represent  100%  of  the  outstanding  membership  interests  of  the Company,  and  no  other  membership  interests  have  ever  been  issued  by  the  Company.  The  Interests  have  been  duly authorized  and  validly  issued  and  are  fully  paid  and  nonassessable,  and  have  been  issued  in  accordance  with  all applicable  law.  The  Interests  were  issued,  and  remain,  free  from  preemptive,  purchase  option,  call  option,  subscription, right  of  first  refusal  or  offer,  or  other  similar  rights.  There  never  have  been  any,  and  there  are  no,  outstanding arrangements,  calls,  commitments,  contracts,  options,  rights  to  subscribe  to,  understandings,  warrants,  or  other  binding obligations  of  any  kind  whatsoever  (i)  relating  to,  or  securities  or  rights  convertible  into  or  exercisable  or  exchangeable for,  membership  interests  or  other  equity  securities  or  interests  in  the  Company,  or  (ii)  by  which  the  Company  is  or  may be  bound  to  issue  additional  membership  interests  or  other  equity  securities  or  interests  in  the  Company.  There  never have  been  any,  and  there  are  no,  (x)  outstanding  or  authorized  equity  interest  appreciation,  phantom  equity  interest, profit  participation,  or  other  similar  rights  with  respect  to  the  Company,  or  (y)  voting  agreements,  voting  trusts, membership  agreements,  proxies,  or  other  agreements  or  understandings  in  effect  with  respect  to  the  governance  of  the Company  or  the  voting  or  transfer  of  the  Interests. (f)  Sole  Purpose  Entity;;  No  Liabilities  . (i)  The  Company  was  formed  for  the  sole  purpose  of  (A)  entering  into  and  performing  the  Willbridge  Facility PSA  and  (B)  from  and  after  the  Willbridge  Facility  Closing,  owning,  operating,  and  further  developing  the Willbridge  Facility. 3 (ii)  Other  than  the  Willbridge  Facility  PSA  and  the  Company’s  obligations  thereunder,  the  Company  (A)  does not  own  or  lease  any  asset  or  property,  whether  real,  personal,  or  intangible,  (B)  is  not  a  party  to  any  contract,  lease, or  other  legally  binding  commitment  or  obligation  whatsoever,  and  (C)  has  no  liabilities  or  obligations  whatsoever (whether  known  or  unknown,  absolute  or  contingent). (iii)  The  Company  duly  executed  and  delivered  the  Willbridge  Facility  PSA,  the  Company  has  not  breached any  covenant  under  the  Willbridge  Facility  PSA,  and  all  of  the  Company’s  representations  and  warranties  under  the Willbridge  Facility  PSA  are  true  and  correct.  To  Seller’s  knowledge,  Paramount  Oregon  duly  executed  and delivered  the  Willbridge  Facility  PSA,  Paramount  Oregon  has  not  breached  any  covenant  under  the  Willbridge Facility  PSA,  and  all  of  Paramount  Oregon’s  representations  and  warranties  under  the  Willbridge  Facility  PSA  are true  and  correct.  The  conditions  to  the  Willbridge  Facility  Closing  specified  in  clauses  (h),  (i),  (k),  and  (m)  of Section  10.1  of  the  Willbridge  Facility  PSA  have  been  satisfied  to  Seller’s  and  the  Company’s  satisfaction.  No Holdback  Amount  (as  defined  in  Section  3.4  of  the  Willbridge  Facility  PSA)  is  payable  into  escrow  under Section  3.4  of  the  Willbridge  Facility  PSA. (iv)  The  Company  does  not  have,  and  has  never  had  any,  employees. (g)  Compliance  with  Laws  .  The  Company  is  in  compliance  with  all  applicable  laws  and  all  other  legal,  regulatory, judicial,  and  administrative  orders,  judgments,  decrees,  and  requirements. (h)  No  Proceedings  .  Seller  is  not  a  party  to  any  action,  suit,  claim,  litigation,  investigation,  or  other  proceeding relating  to  this  Agreement  (or  the  transactions  contemplated  hereby),  its  ownership  of  the  Interests,  or  any  matter  relating in  any  way  to  the  Company  or  the  Willbridge  Facility  PSA.  The  Company  is  not  a  party  to  any  action,  suit,  claim, litigation,  investigation,  or  other  proceeding  whatsoever.  To  Seller’s  knowledge,  no  such  action,  suit,  claim,  litigation, investigation,  or  other  proceeding  is  threatened. (i)  No  Brokers  .  No  broker,  finder,  or  other  person  is  entitled  to  any  brokerage  fees,  finder’s  fees,  or  commission  for which  the  Company  or  Buyer,  by  reason  of  any  action  taken  by  Seller  or  any  of  its  affiliates,  could  become  liable  or obligated  in  connection  with  the  transactions  contemplated  by  this  Agreement,  the  Willbridge  PSA,  or  any  of  the  Arc Transaction  Agreements. 5.  Representations  and  Warranties  of  Lessee  .  Lessee  hereby  represents  and  warrants  to  Buyer,  as  of  the  date  hereof  and  as of  the  Closing  Date,  as  follows: (a)  Authority;;  Execution  and  Delivery;;  Enforceability  .  Lessee  is  a  limited  liability  company  duly  organized  and  in good  standing  under  the  laws  of  the  State  of 4 Delaware.  Lessee  has  all  requisite  power  and  authority  to  execute,  deliver,  and  perform  its  obligations  under  this Agreement  and  the  Arc  Transaction  Agreements.  The  execution,  delivery,  and  performance  by  Lessee  under  this Agreement  and  the  Arc  Transaction  Agreements  have  been  duly  authorized  by  all  necessary  action  on  the  part  of  Lessee. Lessee  has  duly  executed  and  delivered  this  Agreement,  and  this  Agreement  constitutes  the  legal,  valid,  and  binding obligation  of  Lessee,  enforceable  against  Lessee  in  accordance  with  its  terms  (subject  to  applicable  legal  and  equitable limitations). (b)  No  Conflicts  .  No  authorization,  consent,  notice,  registration,  or  filing  with  any  governmental,  regulatory, administrative,  judicial  entity  or  authority  or  any  other  person  or  entity  is  required  for  or  in  connection  with  the execution,  delivery,  and  performance  of  this  Agreement  or  the  Arc  Transaction  Agreements  by  Lessee,  and  Lessee  is  not subject  to  any  legal,  regulatory,  administrative,  judicial,  contractual,  equitable  or  other  prohibition,  restriction, limitation,  or  impediment  of  any  nature  whatsoever  relating  to  or  in  respect  of  the  execution,  delivery,  or  performance  of this  Agreement  or  the  Arc  Transaction  Agreements  by  Lessee. (c)  No  Proceedings  .  Lessee  is  not  a  party  to  any  action,  suit,  claim,  litigation,  investigation,  or  other  proceeding relating  to  this  Agreement  (or  the  transactions  contemplated  hereby).  To  Lessee’s  knowledge,  no  such  action,  suit,  claim, litigation,  investigation,  or  other  proceeding  is  threatened. (d)  No  Brokers  .  No  broker,  finder,  or  other  person  is  entitled  to  any  brokerage  fees,  finder’s  fees,  or  commission  for which  the  Company  or  Buyer,  by  reason  of  any  action  taken  by  Lessee,  could  become  liable  or  obligated  in  connection with  the  transactions  contemplated  by  this  Agreement,  the  Willbridge  PSA,  or  any  of  the  Arc  Transaction  Agreements. 6.  Representations  and  Warranties  of  Buyer  .  Buyer  hereby  represents  and  warrants  to  Seller,  as  of  the  date  hereof  and  as of  the  Closing  Date,  as  follows: (a)  Authority;;  Execution  and  Delivery;;  Enforceability  .  Buyer  is  a  corporation  duly  incorporated  and  in  good standing  under  the  laws  of  the  State  of  Maryland.  Buyer  has  all  requisite  power  and  authority  to  execute,  deliver,  and perform  its  obligations  under  this  Agreement.  The  execution,  delivery,  and  performance  by  Buyer  under  this  Agreement have  been  duly  authorized  by  all  necessary  action  on  the  part  of  Buyer.  Buyer  has  duly  executed  and  delivered  this Agreement,  and  this  Agreement  constitutes  the  legal,  valid,  and  binding  obligation  of  Buyer,  enforceable  against  Buyer in  accordance  with  its  terms  (subject  to  applicable  legal  and  equitable  limitations). (b)  No  Conflicts  .  No  authorization,  consent,  notice,  registration,  or  filing  with  any  governmental,  regulatory, administrative,  judicial  entity  or  authority  or  any  other  person  or  entity  is  required  for  or  in  connection  with  the execution,  delivery,  and  performance  of  this  Agreement  by  Buyer,  and  Buyer  is  not  subject  to  any  legal,  regulatory, administrative,  judicial,  contractual,  equitable  or  other  prohibition,  restriction,  limitation,  or  impediment  of  any  nature whatsoever  relating  to  or  in  respect  of  the  execution,  delivery,  or  performance  of  this  Agreement  by  Buyer. 5 (c)  No  Proceedings  .  Buyer  is  not  a  party  to  any  action,  suit,  claim,  litigation,  investigation,  or  other  proceeding relating  to  this  Agreement  (or  the  transactions  contemplated  hereby).  To  Buyer’s  knowledge,  no  such  action,  suit,  claim, litigation,  investigation,  or  other  proceeding  is  threatened. (d)  No  Brokers  .  No  broker,  finder,  or  other  person  is  entitled  to  any  brokerage  fees,  finder’s  fees,  or  commission  for which  Seller  or  any  of  its  affiliates,  by  reason  of  any  action  taken  by  Buyer,  could  become  liable  or  obligated  in connection  with  the  transactions  contemplated  by  this  Agreement,  the  Willbridge  PSA,  or  any  of  the  Arc  Transaction Agreements. 7.  Covenants  .  In  addition  to  other  covenants  of  the  parties  in  this  Agreement,  the  parties  agree  as  follows: (a)  Negative  Covenants  .  The  parties  agree  not  to  take  any  action  that  would  cause,  or  that  would  be  reasonably likely  to  cause,  any  of  their  respective  representations  and  warranties  in  Sections  4,  5,  or  6  above,  as  the  case  may  be,  to become  inaccurate  prior  to  or  as  of  the  Closing.  Seller  agrees  not  to  allow  the  Company  to  amend  any  of  its organizational  documents  without  Buyer’s  prior  written  consent. (b)  Cooperation  and  Information  .  The  parties  agree  to  work  together  cooperatively,  and  to  use  commercially reasonable  efforts  (without  being  required  to  make  any  payment  to  any  third  party  or  incur  any  other  economic  burden), to  satisfy,  as  soon  as  reasonably  practicable,  the  closing  conditions  specified  in  Sections  8  and  9  below.  Seller  agrees  to provide  Buyer,  or  to  cause  the  Company  to  provide  Buyer,  such  information  as  Buyer  may  reasonably  request,  and  to which  Seller  or  the  Company  has  access,  directly  or  indirectly  through  its  affiliates,  relating  to  the  Willbridge  Facility. (c)  Willbridge  Facility  Documents  . (i)  Seller  agrees  that  the  Company  will  not,  and  Seller  agrees  not  to  permit  the  Company  to,  grant  any  consent or  approval  under,  waive  any  right  under,  or  amend,  supplement,  or  otherwise  modify  in  any  respect  the  Willbridge Facility  PSA  without  the  prior  written  consent  of  Buyer.  Seller  agrees  to  notify  Buyer  promptly  after  Seller  or  the Company  receives  notice  of,  or  otherwise  becomes  aware  of,  (A)  any  breach  of  the  Willbridge  Facility  PSA  by  either party  thereto,  or  (B)  any  event  or  circumstance  that  will  cause,  or  that  is  reasonably  likely  to  cause,  the  failure  of any  closing  condition  under  the  Willbridge  Facility  PSA.  Seller  agrees  to  promptly  deliver  to  Buyer  any  notice  or other  communication  delivered  by  either  party  under  the  Willbridge  Facility  PSA.  Seller  agrees  to  cause  the Company  to  enforce  its  rights  under  the  Willbridge  Facility  PSA  as  directed  by  Buyer,  at  Buyer’s  sole  cost. (ii)  Seller  agrees  that  the  Company  will  not,  and  Seller  agrees  not  to  permit  the  Company  to,  without  the  prior written  consent  of  Buyer,  (A)  terminate  the  Willbridge  Facility  PSA  pursuant  to  Section  13.1(a)  or  Section  13.1(c)  of the  Willbridge  Facility  PSA,  (y)  terminate  the  Willbridge  Facility  PSA  pursuant  to 6 Section  13.1(b)  of  the  Willbridge  Facility  PSA  as  a  result  of  the  failure  to  be  satisfied  of  any  of  the  conditions  to  the Willbridge  Facility  Closing  specified  in  clauses  (h),  (i),  (k),  or  (m)  of  Section  10.1  of  the  Willbridge  Facility  PSA,  or (z)  terminate  the  Willbridge  Facility  PSA  pursuant  to  Section  13.1(b)  of  the  Willbridge  Facility  PSA  as  a  result  of the  failure  to  be  satisfied  of  any  of  the  conditions  to  the  Willbridge  Facility  Closing  specified  in  any  other  clause  of Section  10.1  of  the  Willbridge  Facility  PSA,  unless,  in  the  case  of  this  clause  (z),  such  failure  has  the  effect  of causing,  or  being  reasonably  likely  to  cause,  a  reduction  of  more  than  $3  million  in  the  value  to  Lessee  of  the operations  of  Willbridge  Facility  under  the  Willbridge  Facility  Lease. (d)  Deposit  Reimbursement  .  On  the  Closing  Date,  but  before  the  Closing,  Buyer  shall  pay  Seller  $400,000  (the  “ Reimbursement  Amount  ”)  to  reimburse  Seller  for  its  payment  of  the  Fee  (as  defined  in  Section  3.1  of  the  Willbridge Facility  PSA),  such  payment  to  be  made  by  wire  transfer  of  immediately  available  funds  to  an  account  specified  by Seller.  If  Buyer  pays  the  Reimbursement  Amount  and  either  (i)  this  Agreement  is  subsequently  terminated  without  the Closing  having  occurred  or  (ii)  the  Closing  occurs  but  the  Willbridge  Facility  PSA  is  subsequently  terminated  without the  Willbridge  Facility  Closing  having  occurred,  then  Seller  will,  no  later  than  the  first  business  day  after  such termination,  repay  Buyer  the  Reimbursement  Amount  to  Buyer  by  wire  transfer  of  immediately  available  funds  to  an account  specified  by  Buyer. (e)  Transfer  Taxes  .  Seller  agrees  to  pay  any  transfer  taxes,  charges,  or  fees  payable  with  respect  to  the  sale  and transfer  of  the  Interests  pursuant  to  this  Agreement. (f)  Reimbursement  of  Costs  .  Not  later  than  one  business  day  after  the  date  of  the  Willbridge  Facility  Closing,  Buyer agrees  to  pay,  or  to  cause  the  Company  to  pay,  Seller  for  costs  and  expenses  (including  attorneys’  fees)  reasonably incurred  by  Seller  and  its  affiliates  prior  to  the  Closing  Date  for  its  due  diligence  evaluation  of  the  Willbridge  Facility, and  for  its  negotiation  and  documentation  of  the  Willbridge  Facility  PSA  and  the  consents  and  approvals  required thereunder,  as  evidenced  by  reasonable  supporting  documentation  provided  by  Seller  to  Buyer  at  least  two  business days  prior  to  the  Closing  Date,  and  subject  to  a  cap  of  $1  million.  For  clarity,  such  costs  and  expenses  shall  not  include attorneys’  fees  or  other  costs  and  expenses  incurred  by  Seller  and  its  affiliates  to  document  and  implement  the transactions  contemplated  by  this  Agreement  or  the  Arc  Transaction  Agreements.  The  payment  made  by  Buyer  or  the Company  under  this  Section  7(f)  shall  be  made  by  wire  transfer  of  immediately  available  funds  to  an  account  specified by  Seller. (g)  Put  Right  .  If,  notwithstanding  the  intent  of  the  parties,  the  Closing  occurs  but  the  Willbridge  Facility  Closing does  not  occur  immediately  thereafter,  then  for  the  period  ending  the  earlier  of  (i)  30  days  after  the  Closing  Date  or (ii)  the  time  of  the  Willbridge  Facility  Closing,  Buyer  shall  have  the  right  to  cause  Seller  to  repurchase  the  Interests  for $10.00.  Buyer  shall  exercise  such  right  by  delivering  written  notice  to  Seller,  together  with  a  transfer  instrument,  signed by  Buyer,  and  in  form  and  substance  substantially  similar  to  the  transfer  instrument  by  which  Seller  transferred  the Interests  to  Buyer  at  the  Closing. (h)  Environmental  Reports  .  Seller  and  Lessee  will  use  commercially  reasonable  efforts  to  cause  the  authors  of  the reports  listed  in  Schedule  7(h)  (the  “  Environmental  Reports  ”)  to  agree  that  Buyer  and  the  Company  may  rely  on  such Environmental  Reports. 7 8.  Conditions  Precedent  to  Buyer’s  Obligation  to  Close  .  Buyer’s  obligation  to  proceed  with  the  Closing  is  subject  to  the satisfaction,  on  or  prior  to  the  Closing  Date,  of  each  of  the  following  conditions  (any  or  all  of  which  may  be  waived  by  Buyer in  whole  or  in  part): (a)  Accuracy  of  Representations  and  Warranties  .  All  representations  and  warranties  made  by  Seller  and  Lessee  in this  Agreement  shall  be  true  and  correct  on  and  as  of  the  Closing  Date  with  the  same  effect  as  if  such  representations  and warranties  had  been  made  on  and  as  of  the  Closing  Date. (b)  Performance  of  Covenants  .  Seller  and  Lessee  shall  have  performed  or  complied  with  all  covenants  and agreements  in  this  Agreement  required  to  be  performed  or  complied  with  by  Seller  and  Lessee  at  or  prior  to  the  Closing. (c)  Satisfaction  of  Willbridge  Facility  PSA  Closing  Conditions  .  (i)  The  Willbridge  Facility  PSA  shall  not  have  been terminated,  (ii)  the  conditions  to  the  obligations  of  the  Company  and,  to  the  best  of  Seller’s  knowledge,  Paramount Oregon  to  close  the  transactions  contemplated  by  the  Willbridge  PSA  shall  have  been  satisfied  (without  regard  to  the waiver  of  any  such  condition),  and  (iii)  the  Company  and,  to  the  best  of  Seller’s  knowledge,  Paramount  Oregon  shall stand  ready  to  undertake  the  Willbridge  Facility  Closing. (d)  Closing  Certificates  .  Seller  shall  have  delivered  to  Buyer  a  certificate,  dated  as  of  the  Closing  Date,  signed  by the  Chief  Operating  Officer  of  Seller,  confirming  that  the  conditions  set  forth  in  Sections  8(a)  (with  respect  to  the representations  and  warranties  of  Seller),  8(b)  (with  respect  to  the  covenants  and  agreements  of  Seller),  and  8(c)  have been  satisfied.  Lessee  shall  have  delivered  to  Buyer  a  certificate,  dated  as  of  the  Closing  Date,  signed  by  President  of Lessee,  confirming  that  the  conditions  set  forth  in  Sections  8(a)  (with  respect  to  the  representations  and  warranties  of Lessee)  and  8(b)  (with  respect  to  the  covenants  and  agreements  of  Lessee)  have  been  satisfied. (e)  No  Proceedings  .  No  litigation,  regulatory,  or  administrative  proceeding  shall  be  pending  or  threatened,  and  no investigation  shall  have  been  commenced  and  be  pending,  by  any  governmental  authority,  non-­governmental  entity,  or person  seeking  to  restrain  or  prohibit,  or  questioning  the  validity  or  legality  of,  the  consummation  of  the  transactions contemplated  by  this  Agreement  or  any  of  the  Arc  Transaction  Agreements. (f)  Transfer  Instrument  .  Seller  shall  have  duly  signed  and  delivered  to  Buyer  a  transfer  instrument,  in  form  and substance  satisfactory  to  Buyer,  transferring  the  Interests  to  Buyer. (g)  Title  Policy  .  The  Company  shall  have  received  an  ALTA  Owner’s  Policy  of  Title  Insurance  in  respect  of  the Willbridge  Facility  and  appurtenant  rights  that  is  satisfactory  in  form  and  substance  to  Buyer. 8 (h)  Resignations  .  The  officers  of  the  Company  shall  have  resigned  from  their  offices  as  of  the  Closing  Date pursuant  to  signed  resignations  delivered  to  the  Company. (i)  Arc  Transaction  Agreements  .  The  Arc  Transaction  Agreements  shall  have  been  delivered  to  Buyer,  duly  signed by  Lessee. (j)  Environmental  Reports  .  The  authors  of  the  Environmental  Reports  shall  have  agreed  that  Buyer  and  the Company  may  rely  on  the  Environmental  Reports. (k)  Financing  .  Buyer  shall  have  raised  funds  through  an  equity  offering  in  an  amount  determined  by  Buyer  to  be sufficient,  together  with  cash  on  hand  or  borrowed  under  credit  facilities,  to  enable  Buyer  to  (i)  pay  the  Reimbursement Amount  to  Seller  in  accordance  with  Section  7(d),  (ii)  pay,  or  contribute  to  the  Company  for  the  payment  by  the Company  of,  the  Closing  Cash  Consideration  (as  defined  in  the  Willbridge  Facility  PSA),  and  (iii)  pay,  or  contribute  to the  Company  for  the  payment  by  the  Company  of,  the  amount  to  be  paid  in  accordance  with  Section  7(f). 9.  Conditions  Precedent  to  Seller’s  and  Lessee’s  Obligation  to  Close  .  The  obligation  of  Seller  and  Lessee  to  proceed with  the  Closing  is  subject  to  the  satisfaction,  on  or  prior  to  the  Closing  Date,  of  each  of  the  following  conditions  (any  or  all of  which  may  be  waived  by  Seller  or  Lessee,  as  the  case  may  be,  in  whole  or  in  part): (a)  Accuracy  of  Representations  and  Warranties  .  All  representations  and  warranties  made  by  Buyer  in  this Agreement  shall  be  true  and  correct  on  and  as  of  the  Closing  Date  with  the  same  effect  as  if  such  representations  and warranties  had  been  made  on  and  as  of  the  Closing  Date. (b)  Performance  of  Covenants  .  Buyer  shall  have  performed  or  complied  with  all  covenants  and  agreements  in  this Agreement  required  to  be  performed  or  complied  with  by  Seller  at  or  prior  to  the  Closing. (c)  Closing  Certificate  .  Buyer  shall  have  delivered  to  Seller  a  certificate,  dated  as  of  the  Closing  Date,  signed  by  the Managing  Director  of  Buyer,  confirming  that  the  conditions  set  forth  in  Sections  9(a)  and  9(b)  have  been  satisfied. (d)  No  Proceedings  .  No  litigation,  regulatory,  or  administrative  proceeding  shall  be  pending  or  threatened,  and  no investigation  shall  have  been  commenced  and  be  pending,  by  any  governmental  authority,  non-­governmental  entity,  or person  seeking  to  restrain  or  prohibit,  or  questioning  the  validity  or  legality  of,  the  consummation  of  the  transactions contemplated  by  this  Agreement  or  any  of  the  Arc  Transaction  Agreements. 10.  Termination  . (a)  Prior  to  the  Closing,  Buyer  may  terminate  this  Agreement  by  written  notice  to  Seller  at  any  time  and  for  any  or no  reason. (b)  Prior  to  the  Closing,  this  Agreement  will  terminate  automatically  upon  the  termination  of  the  Willbridge Facility  PSA. (c)  Any  provision  of  this  Agreement  that,  by  its  nature,  should  survive  the  termination  of  this  Agreement  shall survive  the  termination  of  this  Agreement,  including  Seller’s  repayment  obligation  under  Section  7(d),  this  Section  10, and  Sections  11  and  12  below. 9 11.  Liability  for  Damages  .  A  party  that  breaches  any  of  its  representations,  warranties,  or  covenants  in  this  Agreement will  be  liable  for  any  and  all  losses,  damages,  liabilities,  obligations,  fines,  penalties,  costs,  and  expenses  suffered  by  the  other parties  to  the  extent  caused  by  or  resulting  from  the  breach. 12.  Miscellaneous  . (a)  Costs  .  Except  as  set  forth  herein,  and  irrespective  of  whether  the  Closing  occurs,  each  party  will  be  solely responsible  for  all  of  its  own  costs  and  expense  incurred  in  connection  with  this  Agreement  and  the  Arc  Transaction Agreements,  and  the  transactions  contemplated  hereby  and  thereby  (including  the  fees  and  expenses  of  legal  counsel, accountants,  and  other  advisors). (b)  Assignment  .  This  Agreement  and  all  of  the  provisions  hereof  will  be  binding  upon  and  inure  to  the  benefit  of the  parties  hereto  and  their  respective  successors  and  permitted  assigns,  provided  that  neither  this  Agreement  nor  any  of the  rights,  interests,  or  obligations  hereunder  may  be  assigned  by  any  party  without  the  prior  written  consent  of  the  other parties.  Notwithstanding  the  foregoing,  Buyer  may,  without  the  consent  of  Seller  or  Lessee,  assign  this  Agreement  and Buyer’s  rights,  interests,  and  obligations  hereunder  to  one  or  more  of  Buyer’s  affiliates;;  provided  that,  notwithstanding any  such  assignment,  Buyer  shall  not  be  released  from  its  obligations  hereunder.  Buyer  agrees  to  notify  Seller  and  Lessee promptly  following  any  such  assignment. 10 (c)  Notices  .  Any  notice,  consent,  waiver,  or  other  communication  to  a  party  hereunder  shall  be  in  writing  and  shall be  deemed  to  have  been  duly  given  when  delivered,  postage  or  other  delivery  costs  prepaid,  to  such  party  at  the  address set  forth  below  (or  at  such  other  address  as  such  party  may  designate  by  notice  to  the  other  parties): If  to  Seller:                     With  a  copy  to:     Lightfoot  Capital  Partners,  L.P. Attn:  Vince  Cubbage 725  Fifth  Avenue 19  th  Floor New  York,  New  York  10022                 If  to  Buyer: Jackson  Kelly  PLLC Attn:  Louis  S.  Southworth  II  and    Elizabeth  Osenton  Lord 500  Lee  Street  E.,  Suite  1600 Charleston,  WV  25301                 CorEnergy  Infrastructure  Trust,  Inc. Attn:  David  J.  Schulte,  Managing  Director 4200  W.  115  th  Street,  Suite  210 Leawood,  KS  66211 With  a  copy  to:                 If  to  Lessee: Husch  Blackwell  LLP Attn:  Steven  F.  Carman,  Esq. 4801  Main  St.,  Suite  1000 Kansas  City,  MO  64112                 Arc  Terminals  Holdings  LLC Attn:  Mark  Feldman,  Corporate  Controller 3000  Research  Forest  Drive,  Suite  250 The  Woodlands,  TX  77381 With  a  copy  to:                 Arc  Terminals  Holdings  LLC Attn:  John  Blanchard 3000  Research  Forest  Drive,  Suite  250 The  Woodlands,  TX  77381 (d)  Governing  Law;;  Submission  to  Jurisdiction  .  This  Agreement  shall  be  governed  by  and  construed  and  enforced in  accordance  with  the  laws  of  the  State  of  New  York  without  regard  to  the  conflicts  of  laws  provisions  thereof.  Each party  hereby  submits  to  the  non-­exclusive  jurisdiction  of  the  United  States  District  Court  and  the  courts  of  the  State  of New  York,  in  either  case  sitting  in  the  Borough  of  Manhattan  for  the  purposes  of  all  actions  or  proceedings  arising  out  of or  relating  to  this  Agreement  or  the  transactions  contemplated  hereby.  Each  party  irrevocably  waives,  to  the  fullest extent  permitted  by  law,  any  objection  which  it  may  now  or  hereafter  have  to  the  laying  of  the  venue  of  any  such proceeding  brought  in  such  a  court  and  any  claim  that  any  such  action  or  proceeding  brought  in  such  a  court  has  been brought  in  an  inconvenient  forum. (e)  WAIVER  OF  JURY  TRIAL  .  EACH  OF  THE  PARTIES  HERETO  HEREBY  IRREVOCABLY  WAIVES,  TO  THE FULLEST  EXTENT  PERMITTED  BY  LAW,  ANY  AND  ALL  RIGHT  TO  TRIAL  BY  JURY  IN  ANY  LEGAL  ACTION  OR PROCEEDING  ARISING  OUT  OF  OR  RELATING  TO  THIS  AGREEMENT  OR  ANY  OF  THE  TRANSACTIONS CONTEMPLATED  HEREBY. 11 (f)  Entire  Agreement;;  Amendments  .  This  Agreement  contains  the  entire  agreement  and  understanding  between  the parties  with  respect  to  the  subject  matter  hereof,  and  supersedes  all  prior  and  contemporaneous  agreements  and understandings  relating  to  such  subject  matter.  This  Agreement  may  not  be  modified  or  amended  other  than  by  an agreement  in  writing  signed  by  the  parties  hereto. (g)  Exhibits  and  Schedules  .  All  schedules  and  exhibits  hereto,  if  any,  are  deemed  a  part  of  this  Agreement  and  are incorporated  herein  and  made  a  part  hereof  for  all  purposes. (h)  Severability  .  The  provisions  of  this  Agreement  will  be  deemed  severable,  and  the  invalidity  or  unenforceability of  any  provision  in  any  jurisdiction  will,  as  to  that  jurisdiction,  be  ineffective  only  to  the  extent  of  such  invalidity  or unenforceability,  and  will  not  affect  the  validity  or  enforceability  of  that  or  any  other  provision  in  any  other  jurisdiction. If  any  provision  of  this  Agreement,  or  the  application  thereof  to  any  person  or  any  circumstance,  is  invalid  or unenforceable  in  any  jurisdiction,  (i)  a  suitable  and  equitable  provision  will  be  substituted  for  the  invalid  or unenforceable  provision  in  order  to  carry  out  in  that  jurisdiction,  so  far  as  may  be  valid  and  enforceable,  the  intent  and purpose  of  the  invalid  or  unenforceable  provision,  and  (ii)  the  remainder  of  this  Agreement,  and  the  application  of  that provision  to  other  persons  or  circumstances  or  in  other  jurisdictions,  will  not  be  affected. (i)  Waiver  .  Any  waiver  by  any  party  of  any  breach  of  this  Agreement  by  any  other  party,  or  of  any  condition  under this  Agreement,  must  be  in  writing,  and  shall  not  be  construed  as  or  constitute  a  waiver  of  any  subsequent  breach  or  any other  condition. (j)  Specific  Performance  .  In  the  event  of  any  default  under  this  Agreement,  or  any  breach  of  any  of  the  terms, conditions  and  provisions  of  this  Agreement,  the  party  who  is  thereby  aggrieved  will  have  the  right  of  specific performance  and  injunctive  relief  giving  effect  to  its  rights  under  this  Agreement,  in  addition  to  any  and  all  other  rights and  remedies  at  law  or  in  equity,  and  all  such  rights  and  remedies  will  be  cumulative.  The  parties  agree  that  any  such default  or  breach  would  cause  irreparable  injury,  that  the  remedies  at  law  for  any  such  default  or  breach,  including monetary  damages,  would  be  inadequate  compensation  for  any  loss,  and  that  any  defense  in  any  action  for  specific performance  that  a  remedy  at  law  would  be  adequate  is  waived. (k)  Further  Assurances  .  Each  party  will  take  such  action  as  any  other  party  may  reasonably  request  to  carry  out  or perfect  the  transactions  contemplated  by  this  Agreement. (l)  Execution  and  Delivery  .  This  Agreement  may  be  executed  in  one  or  more  counterparts,  all  of  which  will  be considered  one  and  the  same  agreement.  This  Agreement  may  be  delivered  by  the  electronic  exchange,  receipt confirmed,  of  executed  signature  pages  (e.g.,  by  fax  transmission  or  email),  and  any  printed  or  copied  version  of  any signature  page  so  delivered  will  have  the  same  force  and  effect  as  an  originally  executed  version  of  such  signature  page. 12 (m)  Headings  .  The  captions  and  headings  in  this  Agreement  are  for  convenience  of  reference  only  and  shall  not  be utilized  in  construing  or  interpreting  this  Agreement. (n)  Construction  .  This  Agreement  will  be  construed  as  the  joint  and  equal  work  product  of  each  party  and  will  not be  construed  more  or  less  favorably  on  account  of  its  preparation  or  drafting.  In  this  Agreement,  (i)  the  word  “including” means  “including  without  limitation”  and  (ii)  words  such  as  “herein,”  “hereof,”  “hereby,”  and  “hereunder”  refer  to  this Agreement  as  a  whole  and  not  to  any  particular  section  or  subsection. 13 IN  WITNESS  WHEREOF,  the  undersigned  have  executed  this  Agreement  as  of  the  date  first  set  forth  above. BUYER: CorEnergy  Infrastructure  Trust,  Inc. /s/  David  J.  Schulte Name:  David  J.  Schulte Title:  President SELLER: Lightfoot  Capital  Partners,  L.P. By Lightfoot  Capital  Partners  GP  LLC,  its  General  Partner /s/  Vincent  T.  Cubbage Name:  Vincent  T.  Cubbage Title:  Chief  Executive  Officer LESSEE: Arc  Terminals  Holdings  LLC /s/  John  Blanchard Name:  John  Blanchard Title:  President Schedule  7(h) Environmental  Reports 1. Phase  I  Environmental  Site  Assessment  and  Limited  Environmental  Compliance  Review,  Paramount  Petroleum Corporation,  5501  NW  Front  Avenue,  Portland,  Oregon  prepared  for  Lightfoot  Capital  dated  October  2013. 2. Technical  Memorandum,  dated  October  29,  2013,  to  Brad  Oswald,  Lightfoot  Capital,  regarding  Evaluation  of  Potential Future  Costs  Related  to  On-­site  and  Off-­site  Contamination  Paramount  Petroleum  Corporation  Site,  Portland,  Oregon. 3. Memorandum,  dated  October  30,  2013,  regarding  Review  of  Portland  Harbor  Draft  RI/FS  for  Paramount  Petroleum Facility. Exhibit A Form of Willbridge Facility Lease LEASE between Arc  Terminals  Holdings  LLC as  Lessee and LCP  Oregon  Holdings,  LLC as  Lessor TABLE  OF  CONTENTS             Page   ARTICLE  I.  FUNDAMENTAL  LEASE  PROVISIONS 1.1 1.2           Definitions     Certain  Interpretive  Provisions       1         11   ARTICLE  II.  LEASE  CHARACTERIZATION 2.1 1         11       Lease  Characterization       11   ARTICLE  III.  LEASED  PROPERTY       13   3.1 3.2     Lease  of  Leased  Property     Additional  Encumbrances       13         13   ARTICLE  IV.  REPRESENTATIONS  AND  WARRANTIES 4.1 4.2       14       Representations  and  Warranties  of  Lessor     Representations  and  Warranties  of  Lessee       14         15   ARTICLE  V.  RENT 5.1 5.2 5.3 5.4                       15   Base  Rent,  Variable  Rent  and  Additional  Rent Account  for  Payment  of  Base  and  Variable  Rent Payment  to  Party  Claiming  Rent Past  Due  Rent                 ARTICLE  VI.  TAXES 6.1 6.2 6.3 6.4 6.5 6.6                         Taxes Payment Exclusions  from  Taxes Payment  of  Taxes Abatements Right  to  Contest  Taxes                             Lessee  Maintenance  of  Leased  Property     No  Trespass 16   17   17   18   18   18         19         20       Payment  of  Utility  Charges       20   ARTICLE  IX.  USE 9.1 9.2                   19         19   ARTICLE  VIII.  UTILITIES 8.1 15   16   16   16         16   ARTICLE  VII.  CONDITION  OF  LEASED  PROPERTY;;  MAINTENANCE 7.1 7.2               20       Lessee  Use     Operating  Requirement       20         20   i TABLE  OF  CONTENTS (continued)             Page   ARTICLE  X.  PERMITTED  CAPITAL  IMPROVEMENTS,  PARTS 10.1 10.2 10.3     Permitted  Capital  Improvements     Replacement  of  Parts     Lessor  Capital  Improvements  Construction       20         21         22   ARTICLE  XI.  REGULATORY  ISSUES 11.1 11.2 11.3       22       Lessee’s  Rights     Lessor’s  Rights     No  Application  to  Condemnation       22         23         23   ARTICLE  XII.  MECHANIC’S  LIENS 12.1 12.2       23       Lessee’s  Obligations     Lessor’s  Obligations       23         23   ARTICLE  XIII.  LESSEE  PROPERTY 13.1 13.2 13.3       23       No  Lien     Sole  Risk  of  Lessee     Lessee’s  Ability  to  Grant  Liens  on  Lessee  Property  and  Lessee’s  Interest  in  Lease ARTICLE  XIV.  INSURANCE 14.1 14.2 14.3 14.4 14.5                     Insurance  Coverage Environmental  Insurance Insurance  Requirements  Generally Waiver  of  Subrogation No  Release  from  Liability                         Fire  and  Other  Casualty     Restoration  Conditions       28       Condemnation  Damages  and  Awards     General  Taking  Provisions     Restoration  Conditions       28         28         28       Assignment  and  Subletting  by  Lessee     Cure  Rights  Upon  Assignee  Default       29         29         29   ARTICLE  XVIII.  LESSEE’S  SURRENDER  OF  LEASED  PROPERTY 18.1 24   25   26   26   26         27         27   ARTICLE  XVII.  LIMITS  ON  TRANSFERS,  ASSIGNMENTS,  LEASES  AND  LIENS 17.1 17.2                 27   ARTICLE  XVI.  CONDEMNATION 16.1 16.2 16.3       23         24         24         24   ARTICLE  XV.  FIRE  AND  OTHER  CASUALTY 15.1 15.2       20       Surrender       30         30   ii TABLE  OF  CONTENTS (continued)             Page   ARTICLE  XIX.  LESSOR  ASSIGNMENT  OF  LEASE 19.1       30       Assignment  of  Lease       30   ARTICLE  XX.  LEASE  SUBORDINATION 20.1 20.2 20.3       30       No  Subordination  of  Lessor’s  Fee  Simple  Estate;;  Fee  Mortgages     Leasehold  Mortgages     Protection  of  Leasehold  Mortgagees ARTICLE  XXI.  INDEMNIFICATION 21.1 21.2 21.3 21.4 21.5                           32   Indemnification  by  Lessee Release  and  Indemnification  by  Lessor Concurrent  Negligence Survival Claims  Procedure                     ARTICLE  XXII.  ENVIRONMENTAL  LAWS 22.1 22.2 22.3 22.4 22.5 22.6                                         Environmental  Undertakings Environmental  Covenants Lessee  Environmental  Indemnity Claims  Procedure Survival Lessee’s  Environmental  Obligations                         Lessee  Events  of  Default Lessor’s  Remedies  for  a  Lessee  Event  of  Default Lessor  Events  of  Default Lessee’s  Remedies  for  a  Lessor  Event  of  Default                     Notices     Deemed  Receipt     Delivery;;  Time  of  Notice                                 34   34   34   34   35   35           35   36   39   39         40         40         41         41   ARTICLE  XXV.  RENEWAL  AND  END  OF  TERM  OPTIONS 25.1 25.2 25.3 25.4 25.5 32   33   33   33   33         35   ARTICLE  XXIV.  NOTICE 24.1 24.2 24.3                 34   ARTICLE  XXIII.  DEFAULTS  AND  REMEDIES 23.1 23.2 23.3 23.4       30         31         31         41   Renewal  Option Procedure  Upon  Purchase Lessee  as  Operator  After  Term Lessee  Buy-­Out Lessee  Termination  Options                     iii           41   42   42   42   43   TABLE  OF  CONTENTS (continued)             Page   ARTICLE  XXVI.  MISCELLANEOUS  PROVISIONS 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23                                                                                                   43   Memorandum/Notice  of  Lease Force  Majeure Consequential  Damages Holding  Over Quiet  Enjoyment Cost  and  Expense Access;;  Reporting Accord  and  Satisfaction Prevailing  Party Confidentiality Consent  of  Lessor  and  Lessee Permitted  Lessee  Contests Waiver Interpretation No  Derivative  Liability Successors  and  Assigns Rights  of  Third  Parties No  Offer;;  Entire  Agreement Headings Counterparts Governing  Law;;  Venue;;  Service  of  Process;;  Waiver  of  Jury  Trial Time  of  the  Essence Estoppel  Certificates ARTICLE  XXVII.  OTHER  AGREEMENTS  OF  LESSOR  AND  LESSEE 27.1 27.2     Additional  Lessor  Covenants     Additional  Lessee  Covenants Schedule  1     Minimum  Rent                                                                               43   43   44   44   44   44   44   46   46   46   47   47   47   48   48   48   48   48   49   49   49   50   50         50         50         51   Schedules  and  Exhibits Exhibit  A Exhibit  B Exhibit  C Exhibit  D Exhibit  E Exhibit  F Exhibit  G Exhibit  H                                                                                             Improvements Guaranty  of  Lease Memorandum  of  Lease Services  Agreement Map  of  Terminal  Facilities Legal  Description  of  Land Form  of  Estoppel  Certificate Form  of  Office  Lease  Agreement iv LEASE This  Lease  (as  amended,  restated,  replaced,  supplemented,  or  otherwise  modified  from  time-­to-­time,  this  “  Lease  ”)  is dated  as  of                            ,  2014  (the  “  Effective  Date  ”),  and  is  made  by  and  between: Lessor LCP  Oregon  Holdings,  LLC  ,  Delaware  limited  liability  company;; :     and     Lessee Arc  Terminals  Holdings  LLC  ,  a  Delaware  limited  liability  company. :     In  consideration  of  the  rents  and  the  other  terms,  covenants  and  conditions  set  forth  in  this  Lease,  Lessor  leases  to  Lessee and  Lessee  leases  from  Lessor  all  of  Lessor’s  rights,  title,  and  interests  in  and  to  the  Leased  Property  (defined  below)  upon  the following  terms  and  conditions: ARTICLE  I. FUNDAMENTAL  LEASE  PROVISIONS 1.1  Definitions  .  For  all  purposes  of  this  Lease,  except  as  may  be  expressly  set  forth  herein  or  unless  the  context  clearly indicates  a  contrary  intent,  the  following  terms  have  the  following  definitions: “  Actual  Daily  Volume  ”  means  for  any  calendar  month  the  actual  average  daily  volume  of  barrels  of  oil  equivalent received  by  the  Portland  Terminal. “  Additional  Rent  ”  means  all  amounts,  costs,  expenses,  Losses,  liabilities,  indemnities  and  other  monetary  obligations (including  Lessee’s  obligation  to  pay  any  interest  at  the  Default  Interest  Rate  hereunder)  which  Lessee  is  required  to  pay pursuant  to  the  terms  of  this  Lease,  other  than  Base  Rent  or  Variable  Rent. “  Adjustment  Date  ”  means  the  first  day  of  the  month  following  the  month  in  which  the  fifth  yearly  anniversary  of  the Effective  Date  occurs,  and  every  yearly  anniversary  of  such  first  day  of  the  month  thereafter  during  the  Term. “  Affiliate  ”  has  the  meaning  ascribed  to  such  term  in  Rule  12b-­2  of  General  Rules  and  Regulations  under  the  Exchange Act  (and,  with  respect  to  a  Person,  includes  any  subsidiary  of  that  Person). “Agreed  FMV  Rent”  has  the  meaning  given  in  Section  25.1(b). “  Applicable  Legal  Requirements  ”  mean  all  statutes,  ordinances,  regulations  and  codes  of  any  Governmental  Authority having  jurisdiction,  including,  without  limitation,  Environmental  Laws,  zoning,  health,  fire,  safety  and  building  codes, applicable  or  that  may  become  applicable  to  the  Leased  Property  (or  portion  thereof  at  issue). “  Base  Daily  Volume  ”  means  a  notional  average  daily  volume  of  barrels  of  oil  equivalent  received  by  the  Portland Terminal,  equal  to  12,500. “  Base  Rent  ”  means  (i)  during  the  Initial  Term,  the  Minimum  Rent,  and  (ii)  during  any  Renewal  Term,  the  amount determined  pursuant  to  Section  25.1  hereof. “  Business  Day  ”  means  any  day  that  is  not  a  Saturday,  Sunday  or  other  day  on  which  commercial  banks  in  New  York City  are  authorized  or  required  by  law  to  remain  closed.  If  the  last  day  of  any  time  period  under  this  Lease,  or  the  last  day  for performance  of  any  obligation,  or  for  giving  any  notice,  or  for  taking  any  other  action  under  this  Lease  falls  on  a  day  that  is not  a  Business  Day,  then  the  last  day  of  such  time  period  shall  be  extended  to  the  first  day  thereafter  that  is  a  Business  Day. “  Capital  Improvements  ”  means  such  alterations,  additions  and  replacements  to  any  of  the  Leased  Property  as  Lessee may  from  time-­to-­time  desire  or  be  required  to  make. “  Casualty  Date  ”  means  the  date  fire  or  other  casualty  damages  any  portion  of  the  Leased  Property. “  Casualty  Proceeds  ”  means  the  insurance  proceeds  actually  received  by  or  payable  to  Lessee  with  respect  to  a  fire  or other  casualty  of  the  Leased  Property,  but  excluding  from  such  insurance  proceeds  (a)  Lessee’s  reasonable  third  party  costs and  expenses  (including  reasonable  attorneys’  fees  and  expenses)  incurred  in  collecting  same,  (b)  as  of  any  date,  proceeds previously  paid  to  Lessee  and  used  to  repair,  restore  or  replace  the  Leased  Property  as  a  result  of  such  fire  or  other  casualty, and  (c)  the  proceeds  of  any  business  interruption  or  similar  insurance  with  respect  to  such  fire  or  other  casualty. “  Confidential  Information  ”  means  all  information  relating  to  Lessee,  the  Lessee  Guarantor  or  the  operation  of  the Leased  Property  by  Lessee  furnished  to  Lessor  by  or  on  behalf  of  Lessee,  Lessee  Guarantor  or  any  of  their  respective  Affiliates prior  to,  on  or  after  the  Effective  Date  and  designated  as  confidential.  Notwithstanding  the  foregoing,  Confidential Information  shall  not  include  information  that  is  publicly  available  other  than  as  a  result  of  actions  in  violation  of Section  26.10  hereof. “  Control  ”  or  any  derivation  thereof  has  the  meaning  set  forth  in  Rule  12b-­2  under  the  Exchange  Act.  “  Controlling  ” and  “  Controlled  ”  have  meanings  correlative  thereto. “  Corrective  Action  ”  means  environmental  investigation  and/or  remediation,  including  Phase  II  testing,  sampling, engineering,  consulting,  reporting,  active  remediation,  passive  remediation,  monitoring  and  risk  assessment  or  any combination  of  these  activities. “  Current  Lease  Term  End  ”  means  the  end  of  the  then  current  Term  assuming  that  there  will  not  be  a  Renewal  Term  at the  end  thereof. “  Debtor  Relief  Law  ”  means  the  Bankruptcy  Code  of  the  United  States  of  America,  and  all  other  liquidation, conservatorship,  bankruptcy,  assignment  for  the  benefit  of  creditors,  moratorium,  rearrangement,  receivership,  insolvency, reorganization,  or  similar  debtor  relief  laws  of  the  United  States  of  America  or  other  applicable  jurisdictions  from time-­to-­time  in  effect  and  affecting  the  rights  of  creditors  generally. “  Default  Interest  Rate  ”  means  fifteen  percent  (15%). “  Discount  Rate  ”  means  the  greater  of  (a)  the  interest  rate  (on  the  date  of  termination  of  this  Lease  by  Lessor  pursuant  to its  remedies  under  Section  23.2(a)  )  on  overnight  Federal  funds  transactions  with  members  of  the  Federal  Reserve  System arranged  by  Federal  funds  brokers,  as  published  by  the  Federal  Reserve  Bank  of  New  York,  plus  one  half  of  one  percent (0.5%),  and  (b)  the  Prime  Rate  on  the  date  of  termination  of  this  Lease  by  Lessor  pursuant  to  its  remedies  under Section  23.2(a)  . “  Due  Date  for  Other  Additional  Rent  ”  has  the  meaning  given  in  Section  5.4  . 2 “  ERA  ”  has  the  meaning  given  in  Section  22.6  . “  Effective  Date  ”  means  the  date  of  this  Agreement,  which  shall  be  the  same  date  as  the  date  of  conveyance  of  the Terminal  System  to  Lessor  pursuant  to  the  PSA. “  Effective  Date  Recorded  Documents  ”  means  all  restrictions  and  charges  created  or  imposed  pursuant  to  documents and  instruments  recorded  in  the  Official  Public  Records  against  the  Leased  Property  as  of  the  time  of  conveyance  of  the Leased  Property  to  Lessor  pursuant  to  the  PSA. “  Environmental  Laws  ”  means  all  federal,  state,  and  local  laws,  statutes,  rules,  regulations,  orders,  judgments, ordinances,  codes,  injunctions,  decrees,  and  other  legally  enforceable  requirements  relating  to  (a)  pollution  or  protection  of the  environment  or  natural  resources,  (b)  any  actual  or  threatened  depositing,  spilling,  leaking,  pumping,  pouring,  placing, emitting,  discarding,  abandoning,  emptying,  discharging,  migrating,  injecting,  escaping,  leaching,  dumping  or  disposing  into the  environment  of,  or  any  exposure  to,  any  Hazardous  Materials,  or  (c)  the  generation,  manufacture,  processing,  distribution, use,  treatment,  storage,  transport,  disposal  or  handling  of  any  Hazardous  Materials;;  including  the  federal  Comprehensive Environmental  Response,  Compensation  and  Liability  Act,  the  Superfund  Amendments  and  Reauthorization  Act,  the Resource  Conservation  and  Recovery  Act,  the  Clean  Air  Act,  the  Clean  Water  Act,  the  Safe  Drinking  Water  Act,  the  Toxic Substances  Control  Act,  the  Oil  Pollution  Act  of  1990,  the  Federal  Hazardous  Materials  Transportation  Law,  the  Marine Mammal  Protection  Act,  the  Endangered  Species  Act,  and  the  National  Environmental  Policy  Act,  each  as  amended  through the  Effective  Date. “  Excess  Product  Volume  Factor  ”  means  for  any  calendar  month  during  the  Term  from  and  after  the  Effective  Date,  the greater  of  (a)  zero,  or  (b)  71%  of  (i)  the  decimal  fraction  obtained  by  dividing  the  Actual  Daily  Volume  by  the  Base  Daily Volume,  minus  (ii)  one  (1)  [i.e.,  ((Actual  Daily  Volume  /  Base  Daily  Volume)  -­  1)  *  71%]. “  Exchange  Act  ”  means  the  Securities  Exchange  Act  of  1934. “  Excluded  Matters  ”  has  the  meaning  given  in  Section  6.3  . “Fair  Market  Rent”  means  the  rent  that  would  be  agreed  on  between  a  willing  lessor  and  a  willing  lessee,  with  neither being  required  to  act,  and  both  having  reasonable  knowledge  of  the  relevant  facts. “  Fair  Market  Value  ”  or  “  fair  market  value  ”  means  the  price  that  would  be  agreed  on  between  a  willing  buyer  and  a willing  seller,  with  neither  being  required  to  act,  and  both  having  reasonable  knowledge  of  the  relevant  facts. “  Flow  and  Volume  Information  ”  means  the  flow  and  volume  information  of  the  type  to  be  furnished  by  Lessee pursuant  to  Section  26.7(b)(i)  . “  Franchise  ”  means  that  certain  franchise  granted  by  the  City  of  Portland  to  Paramount  of  Oregon,  Inc.  on  August  16, 2006,  pursuant  to  Ordinance  No.  180378,  to  construct,  operate,  and  maintain  the  Pipeline  System,  as  well  as  the  consent  of  the City  of  Portland  pursuant  to  Ordinance  186387  to  the  assignment  of  such  franchise  to  Lessor. “  Force  Majeure  ”  has  the  meaning  given  in  Section  26.2  . 3 “  GAAP  ”  means  generally  accepted  accounting  principles  in  effect  from  time-­to-­time  in  the  United  States  of  America. “  Good  Condition  and  Repair  ”  means  a  state  of  condition  and  repair  consistent  with  the  condition  and  repair  that  a reasonably  prudent  operator  would  maintain  for  a  terminal  system  of  similar  size,  nature,  use,  age  and  location,  taking  into consideration  the  condition  of  the  Terminal  Facility  as  of  the  Effective  Date  and  the  Improvements  made  pursuant  to  this Lease. “  Governmental  Authority  ”  means  any  governmental  authority,  agency,  department,  commission,  bureau,  board, instrumentality,  court,  arbitrator  or  quasi-­governmental  authority  having  jurisdiction  or  supervisory  or  regulatory  authority over  any  of  the  Leased  Property,  applicable  to  Lessee  (with  respect  only  to  Lessee’s  (rather  than  Lessor’s)  obligations hereunder  regarding  compliance  or  interaction  with  Governmental  Authority),  or  applicable  to  Lessor  (with  respect  only  to Lessor’s  (rather  than  Lessee’s)  obligations  hereunder  regarding  compliance  or  interaction  with  Governmental  Authority). “  Hazardous  Materials  ”  means  (a)  any  substance  that  is  designated  as  a  hazardous  waste,  solid  waste,  hazardous material,  pollutant,  contaminant  or  toxic  or  hazardous  substance,  as  those  terms  are  used  in  the  Environmental  Laws,  (b)  any petroleum,  petroleum  hydrocarbons,  petroleum  products,  petrochemical  products  and  any  components,  fractions  or derivatives  thereof,  any  oil  or  gas  exploration  or  production  waste,  and  any  natural  gas,  synthetic  gas,  and  any  mixtures thereof,  and  (c)  radioactive  materials  or  polychlorinated  biphenyls. “  Improvements  ”  means  the  improvements  described  in  Exhibit  A  . “Indemnified  Party”  means  a  Lessor  Indemnified  Party  or  a  Lessee  Indemnified  Party,  as  applicable. “  Indemnifying  Party  ”  has  the  meaning  given  in  Section  21.3. “  Index  ”  means  the  Consumer  Price  Index  which  is  designated  for  the  applicable  month  of  determination  as  the  United States  City  Average  for  All  Urban  Consumers,  All  Items,  Not  Seasonally  Adjusted,  with  a  base  period  equaling  100  in 1982-­1984,  as  published  by  the  United  States  Department  of  Labor’s  Bureau  of  Labor  Statistics  or  any  successor  agency. “  Index  Adjustment  ”  means  the  quotient  (expressed  as  a  percentage)  of: (a)  for  the  first  Adjustment  Date,  the  change,  if  any,  between  (i)  the  average  of  the  Index  for  the  twelve  months  ended  two months  prior  to  such  Adjustment  Date,  and  (ii)  the  average  of  the  Index  for  the  twelve  months  ended  sixty-­two  months  prior such  Adjustment  Date  (the  “  Initial  Base  Index  ”),  and  (b)  the  Initial  Base  Index;;  and (b)  for  each  subsequent  Adjustment  Date,  the  change,  if  any,  between  (i)  the  average  of  the  Index  for  the  twelve  months ended  two  months  prior  to  such  Adjustment  Date,  and  (ii)  the  average  of  the  Index  for  the  twelve  months  ended  fourteen months  prior  to  such  Adjustment  Date  (the  “  Base  Index  ”),  and  (b)  the  Base  Index. If  the  statistics  are  not  available  or  if  publication  of  the  Index  is  modified  or  discontinued  in  its  entirety,  the  Index  Adjustment shall  be  determined  on  the  basis  of  an  index  chosen  by  Lessor  as  a  comparable  and  recognized  index  of  the  purchasing  power of  the  United  States  consumer  dollar  published  by  the  United  States  Department  of  Labor  or  other  governmental  agency.  If  the Index  contemplated  herein  is  not  reported  for  the  months  required  for  the  calculation  set  forth  above,  the  parties  agree  to  use the  Index  reported  for  the  month(s)  nearest  preceding  the  month(s)  required  for  such  calculation. 4 “  Initial  Term  ”  means  that  period  beginning  on  the  Effective  Date  and  ending  on  the  last  day  of  the  180th  full  calendar month  thereafter. “  Institutional  Investor  ”  means  any  of  the  following: (a)  a  bank,  savings  institution,  investment  bank,  financial  services  company,  nationally  recognized  conduit  lender,  trust company,  commercial  bank  or  national  banking  association  acting  for  its  own  account  or  in  a  fiduciary  capacity,  or  a  real estate  investment  trust;; (b)  a  trustee  or  similar  Person  in  connection  with  securitization  of  a  mortgage  loan  or  a  nationally  recognized  conduit lender,  so  long  as  the  trustee  or  similar  Person  is  an  entity  that  otherwise  would  be  an  Institutional  Investor  under  clause  (a)  of this  definition  and  which,  in  each  case  of  clauses  (a)  and  (b)  of  this  definition,  is  regularly  engaged  in  the  business  of  making or  owning  commercial  loans  (including  commercial  real  estate  loans);;  or (c)  any  other  entity  approved  by  Lessor  as  a  Leasehold  Mortgagee  under  the  Lease. “Involuntary”  and  “Involuntarily”  includes,  with  respect  to  a  Transfer  or  Lien,  any  transaction,  proceeding  or  action  by or  in  which  a  Person  is  involuntarily  deprived  or  divested  of  any  right,  title  or  interest  in  and  to  its  applicable  property,  rights or  interests  (including  any  seizure  under  levy  of  attachment  or  execution,  transfer  in  connection  with  bankruptcy  or  other court  proceeding  to  a  trustee  or  receiver  or  other  officer  or  agency  or  any  transfer  to  a  state  or  to  a  public  officer  or  agency pursuant  to  any  statute  pertaining  to  escheat  or  abandoned  property). “  Land  ”  means  the  land  underlying,  subject  to  and  covered  by,  the  Terminal  System. “  Lease  ”  has  the  meaning  given  in  the  preamble. “  Lease  Assignment  ”  means  a  direct  or  indirect  Transfer  of  Lessee’s  interest  under  this  Lease  or  its  interest  in  the  Leased Property  hereunder.  For  the  avoidance  of  doubt,  any  change  in  Control  of  the  Lessee  shall  constitute  a  Lease  Assignment. “  Leased  Property  ”  means  the  Terminal  System,  the  Improvements  and  the  Personal  Property. “  Leasehold  ”  means  the  estate  for  years  and  leasehold  estate  and  other  interests  in  the  Leased  Property  conveyed  to  or held  by  Lessee  pursuant  to  this  Lease. “  Leasehold  Mortgage  ”  means  a  mortgage,  a  deed  of  trust,  a  deed  to  secure  debt,  or  other  security  instrument  by  which the  Leasehold  is  mortgaged,  conveyed,  assigned,  or  otherwise  transferred  to  secure  a  debt  or  other  obligation. “  Leasehold  Mortgagee  ”  means  the  holder  of  a  Leasehold  Mortgage. “  Lessee  ”  has  the  meaning  given  in  the  preamble. “  Lessee  Condemnation  Proceeds  ”  has  the  meaning  given  in  Section  16.1  . “  Lessee  Environmental  Liabilities  ”  means  Losses  arising  or  resulting  from  (a)  the  actual  presence,  use,  storage, generation  or  Release  of  any  Hazardous  Materials  on,  under,  from  or  at  the  Leased 5 Property  or  any  portion  thereof  both  before  and  during  the  Term  for  which  Lessee  or  Lessor  has  any  legal  obligation, (b)  allegations  made  in  writing  by  a  third  party  not  Lessor,  another  Lessor  Party  or  a  Lessor  Lender  (but  only  so  long  as  neither Lessor,  any  Lessor  Party  nor  any  Lessor  Lender  has  affirmatively  caused  such  third  party  to  raise  such  allegation  unless  such allegation  is  required  to  be  made  by  such  third  party  under  applicable  law)  regarding  the  presence,  use,  storage,  generation  or Release  of  any  Hazardous  Materials  on,  under,  from  or  at  the  Leased  Property  or  any  portion  thereof  both  before  and  during the  Term  for  which  Lessee  or  Lessor  has  any  legal  obligation,  or  (c)  any  violation  of  Environmental  Laws  occurring  both before  and  during  the  Term  at  or  adversely  affecting  any  portion  of  the  Leased  Property  for  which  Lessee  or  Lessor  has  any legal  obligation.  It  is  further  understood  and  agreed  that  Lessee  Environmental  Liabilities  shall  include  any  and  all  such matters  or  claims  arising  or  occurring  prior  to  the  Effective  Date. “  Lessee  Event  of  Default  ”  has  the  meaning  given  in  Section  23.1  . “  Lessee  Guarantor  ”  means  ARC  Logistics  Partners  LP,  a  Delaware  limited  partnership. “  Lessee  Guaranty  ”  means  that  certain  Guaranty  of  Lease  executed  by  Arc  Logistics  Partners  LP,  a  Delaware  limited partnership,  and  dated  as  of  the  Effective  Date  and  any  subsequent  Guaranty  of  Lease  executed  after  the  Effective  Date  and  in substantially  the  form  of  Guaranty  of  Lease  attached  as  Exhibit  B  . “  Lessee  Indemnified  Parties  ”  means  Lessee,  Lessee  Guarantor  and  their  respective  Related  Parties  (solely  in  their capacity  as  such),  Leasehold  Mortgagee  (in  its  capacity  as  Lessee)  and  permitted  successors  and  assigns  of  any  of  the foregoing,  including  any  permitted  successors  by  merger,  consolidation  or  acquisition  of  all  or  substantially  all  of  the Lessee’s  rights  under  this  Lease. “  Lessee  Party  ”  means  Lessee,  any  direct  or  indirect  owner  of  Lessee,  and  their  respective  officers,  employees,  agents, servants,  invitees,  sublesssees,  licenses  or  assignees. “  Lessee  Property  ”  means  (a)  the  Permitted  Capital  Improvements  which  Lessor  does  not  purchase  and  which, accordingly,  do  not  become  a  part  of  the  Leased  Property  during  the  Lease  Term  as  provided  in  Section  10.1,  and  (b)  the  other real  and  personal  property  now  or  hereafter  owned  or  used  by  Lessee  or  its  Affiliates  in  connection  with  operation  of  the Leased  Property  upstream  or  downstream  of  the  Terminal  System  by  Lessee  or  its  Affiliates. “  Lessor  ”  has  the  meaning  given  in  the  preamble. “  Lessor  Event  of  Default  ”  has  the  meaning  given  in  Section  23.3  . “  Lessor  Indemnified  Parties  ”  means  Lessor  and  its  Related  Parties  (solely  in  their  capacity  as  such),  and  permitted successors  and  assigns. “  Lessor  Interests  ”  means  (a)  all  or  any  portion  of  Lessor’s  right,  title  and  interest  in  and  to  the  Leased  Property,  and (b)  all  or  any  portion  of  Lessor’s  right,  title  and  interest  under  this  Lease. “  Lessor  Lender  ”  means  a  lender  or  other  creditor  to  Lessor  or  any  other  Lessor  Party. “  Lessor  Party  ”  means  Lessor,  any  direct  or  indirect  owner  of  Lessor,  and  their  respective  officers,  employees,  agents, servants,  or  assignees. 6 “Lien”  means  any  mortgage  lien,  deed  of  trust  lien,  deed  to  secure  debt,  vendor’s  lien,  security  interest,  pledge, collateral  assignment,  mechanic’s  or  materialman’s  lien,  or  other  similar  instruments  and  all  restatements,  modifications, amendments,  consolidations,  extensions,  renewals  or  substitutions  thereto  or  thereof. “  Loss  ”  or  “  Losses  ”  means  mean  any  actual  losses,  costs,  expenses  (including  court  costs,  reasonable  fees  and  expenses of  attorneys,  technical  experts  and  expert  witnesses  and  the  cost  of  investigation),  liabilities,  damages,  demands,  suits,  claims, and  sanctions  of  every  kind  and  character  (including  civil  fines)  arising  from,  related  directly  or  indirectly  or  reasonably incident  to,  matters  indemnified  against,  excluding  however  all  of  the  following: (d)  Consequential  and  Similar  Damages  .  Any  special,  consequential,  punitive  or  exemplary  damages,  except  to  the extent  owed  to  a  third  party;;  and (e)  Excluded  Matters  .  Any  such  losses,  costs,  expenses,  liabilities,  damages,  demands,  suits,  claims  and  sanctions  which constitute  an  Excluded  Matter;;  and (f)  Section  2.1  Waivers  .  Any  such  losses,  costs,  expenses,  liabilities,  damages,  demands,  suits,  claims  and  sanctions  with respect  to  claims  and  other  matters  waived  in  Section  2.1  . “  Material  Adverse  Event  ”  means,  for  purposes  of  the  definition  of  “Permitted  Liens”  herein,  any  event  or  circumstance resulting  in  a  material  adverse  effect  on  (a)  the  ability  of  Lessee  to  perform  the  monetary  and  other  material  obligations  under this  Lease,  or  (b)  the  ownership,  financial  condition  or  operation  of  the  Leased  Property  taken  as  a  whole. “  Memo  of  Lease  ”  means  the  Memorandum  of  Lease  in  the  form  attached  to  this  Agreement  as  Exhibit  C  . “  Minimum  Rent  ”  means  the  amounts  specified  in  Schedule  1  of  this  Lease  for  the  month  in  which  the  Effective  Date occurs  and  the  sixty  (60)  full  months  thereafter,  adjusted  as  provided  in  Section  10.3  ;;  provided  that  : (a)  on  the  first  Adjustment  Date,  Minimum  Rent  shall  be  adjusted  by  increasing  the  Minimum  Rent  for  the  month immediately  preceding  such  Adjustment  Date  by  the  Index  Adjustment,  and  such  adjusted  amount  shall  become  the Minimum  Rent  for  the  following  twelve  payments  (beginning  with  the  payment  due  on  such  Adjustment  Date),  and  the Minimum  Rent  as  so  adjusted  shall  constitute  the  Minimum  Rent  hereunder  until  the  next  Adjustment  Date;;  and (b)  on  each  subsequent  Adjustment  Date,  Minimum  Rent  shall  be  adjusted  by  increasing  the  Minimum  Rent  for  the month  immediately  preceding  such  Adjustment  Date  by  the  greater  of  2.00%  or  the  Index  Adjustment,  and  such  adjusted amount  shall  become  the  Minimum  Rent  for  the  following  twelve  payments  (beginning  with  the  payment  due  on  such Adjustment  Date),  and  the  Minimum  Rent  as  so  adjusted  shall  constitute  the  Minimum  Rent  hereunder  until  the  next Adjustment  Date. “  Non-­Consent  Matters  ”  means  a  change  of  direct  or  indirect  ownership  of  Lessee  as  a  result  of  a  merger,  consolidation, reorganization,  sale,  distribution,  contribution  or  other  transfer  of  assets  or  equity  interests,  joint  venture,  public  offering  of common  stock  or  other  equity  interests,  foreclosure  or  deed  in  lieu  of  foreclosure,  or  the  sale  by  a  purchaser  after  a  foreclosure;; provided  that  the  primary  purpose  of  the  transaction  which  results  in  a  change  in  ownership  of  Lessee  is  not  to  circumvent  or avoid  Lessor’s  approval  rights  with  respect  to  a  Lease  Assignment  or  Sublease. 7 “  Non-­Removable  Addition  ”  has  the  meaning  given  in  Section  10.1(b  ). “  Official  Public  Records  ”  means  the  applicable  Official  Public  Records  of  Multnomah  County,  Oregon. “  Other  Recorded  Document  ”  means  any  easement  agreement,  restrictive  covenant,  declaration,  right-­of-­way  or  any other  similar  agreement  or  document  affecting,  benefiting  or  burdening  all  or  any  portion  of  the  Terminal  System  or  the  Land. “  Parts  ”  has  the  meaning  given  in  Section  10.2  . “  Permitted  Capital  Improvements  ”  means  Capital  Improvements  which  (a)  will  not  materially  and  adversely  affect  the structural  integrity  of  the  then  existing  Improvements,  (b)  will  not  materially  and  adversely  affect  the  use  or  functionality  of the  Leased  Property,  and  (c)  will  not  adversely  affect  the  value  of  the  Leased  Property  in  any  material  respect. “  Permitted  Lease  Assignment  ”  has  the  meaning  given  in  Section  17.1(a  ). “  Permitted  Lessee  Contest  ”  means  any  contest  made  in  accordance  with  Section  26.12  . “  Permitted  Lessee  Transferee  ”  means  either:  (i)  any  Person  approved  by  Lessor  and  the  Lessor  Lender,  or  (ii)  an Affiliate  to  which  a  transfer  occurs  in  a  Non-­Consent  Matter,  (iii)  any  Leasehold  Mortgagee,  or  (iv)  any  purchaser  under foreclosure  or  deed  in  lieu  of  foreclosure,  in  any  case  so  long  as  Lessee  Guarantor  is  not  released  from  liability  hereunder. “  Permitted  Lessor  Contest  ”  has  the  meaning  given  in  Section  27.1  . “Permitted  Liens”  means,  for  purposes  of  Sections  3.1  and  3.2(a)(v  )  and  the  definition  of  the  term  “Material  Adverse Event”,  (a)  liens  imposed  by  law  for  taxes,  assessments,  or  similar  charges,  incurred  in  the  ordinary  course  of  business  that  are not  yet  due  and  payable,  (b)  liens  of  mechanics,  materialmen,  warehousemen,  carriers,  landlords  or  other  like  Liens,  securing obligations  incurred  in  the  ordinary  course  of  business  that  are  not  yet  due  and  payable,  (c)  covenants,  zoning  restrictions, rights,  easements,  governmental  environmental  permitting  and  operation  restrictions,  the  exercise  by  governmental  bodies  or third  parties  of  eminent  domain  or  condemnation  rights,  or  any  other  restrictions  on  the  use  of  real  property  in  effect  on  the Effective  Date,  or,  that  are  imposed  after  the  Effective  Date,  provided  that  any  of  the  foregoing  that  are  imposed  after  the Effective  Date  would  not  individually  or  in  the  aggregate  result  in  a  Material  Adverse  Event,  (d)  any  Lien  securing indebtedness  of  the  Lessor,  subject  to  compliance  with  Section  20.1,  (e)  the  following,  if  the  validity  or  amount  thereof  is being  contested  in  good  faith  by  appropriate  and  lawful  proceedings  and  with  respect  to  which  adequate  reserves  are  set  aside on  its  books,  and  so  long  as  they  would  not,  individually  or  in  the  aggregate,  result  in  a  Material  Adverse  Event:  (1)  claims  or liens  for  taxes,  assessments,  or  charges  due  and  payable  and  subject  to  interest  or  penalty,  (2)  claims,  liens  upon,  and  defects of  title  to,  real  or  personal  property,  including  any  attachment  of  personal  or  real  property  or  other  legal  process  prior  to adjudication  of  a  dispute  on  the  merits,  (3)  claims  or  liens  of  mechanics,  materialmen,  warehousemen,  carriers,  or  other  like liens,  and  (4)  adverse  judgments  on  appeal,  and  (f)  inchoate  liens  in  respect  of  royalty  owners. “  Permitted  Sublease  ”  has  the  meaning  given  in  Section  17.1(b  ). “  Person  ”  means  any  individual,  firm,  corporation,  partnership,  limited  liability  company,  incorporated  or unincorporated  association,  joint  venture,  governmental  authority  or  any  other  entity  of  any  kind. 8 “  Personal  Property  ”  means  (a)  the  monitoring  equipment  located  in  or  on  the  Terminal  System,  (b)  the  computer hardware  located  for  each  portion  of  the  Terminal  System  to  which  such  monitoring  equipment  connects,  (c)  the  wires  and other  connectors  for  such  monitoring  equipment  between  such  computer  hardware  and  such  monitoring  equipment,  (d)  all office  furniture  in,  and  (e)  the  Records,  all  as  of  the  Effective  Date  and  as  such  personal  property  may  be  modified  or  replaced as  permitted  or  required  by  this  Lease. “  Pipeline  System  ”  means  a  pipeline  system  in  or  below  the  public  streets  in  the  City  of  Portland,  as  defined  with  greater particularity  in  the  Franchise. “  Pipeline  System  Lease  ”  means  that  certain  Pipeline  System  Lease,  dated  as  of  the  Effective  Date,  between  Lessor  and Lessee,  pursuant  to  which  Lessor  has  agreed  to  lease  to  Lessee,  and  Lessee  has  agreed  to  lease  from  Lessor,  the  Pipeline System. “  Prime  Rate  ”  means  the  prime  rate  of  interest  as  reported  in  The  Wall  Street  Journal  or,  if  The  Wall  Street  Journal  is  no longer  published  or  no  longer  reports  such  prime  rate,  the  prime  rate  of  interest  as  reported  in  other  authoritative  publication or  news  retrieval  service. “  Project  Costs  ”  means  the  “Project  Costs”  as  defined  in  the  Project  Management  Agreement. “  Project  Improvements  ”  means  the  “Project,”  as  defined  in  the  Project  Management  Agreement. “  Project  Management  Agreement  ”  means  the  Project  Management  Agreement  entered  into  between  Lessor  and  Lessee on  the  Effective  Date,  pursuant  to  which  Lessor  with  contract  for  and  pay  for  the  design  and  construction  of  the  Project Improvements  and  Lessee  will  provide  project  management  services  in  the  coordination  and  management  of  the  design, construction,  equipment  procurement  and  installation,  commissioning,  start-­up,  and  testing  of  the  Project  Improvements. “  PSA  ”  means  that  certain  Purchase  and  Sale  Agreement,  dated  October  17,  2013,  between  Lessor  and  Paramount  of Oregon,  LLC. “  Real  Property  ”  means  the  Terminal  System,  other  than  any  personal  property  (under  applicable  Oregon  law)  included in  such  definition. “  Record  Agreements  ”  shall  mean  the  agreements  constituting  (a)  the  Effective  Date  Recorded  Documents,  (b)  any Other  Recorded  Document  executed  by  Lessee  after  the  Effective  Date  other  than  in  violation  of  this  Lease,  and  (c)  any  Other Recorded  Document  executed  by  Lessor  other  than  in  violation  of  this  Lease.  In  no  event  shall  any  Lien  constitute  a  “Record Agreement.” “  Records  ”  means  the  following  information,  to  the  extent  acquired  by  Lessor  (a)  from  Lessee,  (b)  pursuant  to  the  PSA, or  (c)  in  connection  with  construction  of  Permitted  Capital  Improvements  paid  for  by  Lessor  and  constructed  by  Lessee  for Lessor  hereunder:  all  engineering  drawings  or  plans  and  specifications  of  or  covering  the  Terminal  System  or  any  component thereof,  site  assessments  and  environmental  reports  regarding  or  covering  the  Terminal  System  or  any  component  thereof, manuals  relating  to  the  operation  of  the  Leased  Property,  and  “as-­built”  surveys  and  drawings  of  the  Terminal  System. “  Related  Parties  ”  of  a  Person  means  its  Affiliates  and  its  and  their  respective  directors,  officers,  employees,  managers, members,  partners,  agents,  trustees,  administrators,  advisors,  accountants,  attorneys  and  representatives. 9 “  Release  ”  means  any  leaking,  spilling,  pouring,  pumping,  emitting,  injecting,  escaping,  leeching,  dumping, discharging,  depositing  or  disposing  of  any  Hazardous  Materials  into  the  environment  (including  the  air,  soil,  groundwater  or surface  water)  in  sufficient  quantity  or  concentration  such  that  notification  to  a  Governmental  Authority  is  required  under Environmental  Laws. “  Renewal  Notice  Date  ”  has  the  meaning  given  in  Section  25.1(b)  . “  Renewal  Option  ”  has  the  meaning  given  in  Section  25.1(a  ). “  Renewal  Term  ”  has  the  meaning  given  in  Section  25.1(a)  . “  Services  Agreement  ”  means  the  Services  Agreement  in  the  form  attached  hereto  as  Exhibit  D  . “  Sublease  ”  means  a  Transfer  by  Lessee  of  a  portion  or  less  than  all  of  Lessee’s  rights  under  this  Lease  or  in  the  Leased Property  hereunder. “  Subsidiaries  ”  means,  with  respect  to  any  Person  (the  “  parent  ”)  at  any  date,  any  corporation,  limited  liability company,  partnership,  association  or  other  entity  the  accounts  of  which  would  be  consolidated  with  those  of  the  parent  in  the parent’s  consolidated  financial  statements  if  such  financial  statements  were  prepared  in  accordance  with  GAAP  as  of  such date,  as  well  as  any  other  corporation,  limited  liability  company,  partnership,  association  or  other  entity  (a)  of  which  securities or  other  ownership  interests  representing  more  than  fifty  percent  (50%)  of  the  equity  or  more  than  fifty  percent  (50%)  of  the ordinary  voting  power  or,  in  the  case  of  a  partnership,  more  than  fifty  percent  (50%)  of  the  general  partnership  interests  are,  as of  such  date,  owned,  controlled  or  held,  or  (b)  that  is,  as  of  such  date,  otherwise  Controlled,  by  the  parent  or  one  or  more subsidiaries  of  the  parent  or  by  the  parent  and  one  or  more  subsidiaries  of  the  parent. “  Taking  ”  means  acquisition  of  all  or  any  portion  of  the  Leased  Property  for  any  public  or  quasi-­public  use  through taking  by  condemnation,  eminent  domain  or  any  like  proceeding,  or  purchase  in  lieu  thereof. “  Taking  Proceeds  ”  means  damages  and  proceeds  accruing  and  paid  by  or  on  behalf  of  the  applicable  Governmental Authority  on  account  of  any  Taking  of  the  Leased  Property,  save  and  except  (a)  the  reasonable  third  party  costs  and  expenses (including  reasonable  attorneys’  fees  and  expenses)  incurred  by  Lessee  in  connection  with  the  collection  of  same,  (b)  the amount  incurred  by  Lessee  prior  to  the  date  of  payment  of  such  Taking  Proceeds  to  repair  or  restore  the  Leased  Property,  and (c)  any  Lessee  Condemnation  Proceeds. “  Tax  ”  means  any  fee  (including,  without  limitation,  any  documentation,  license  or  registration  fee),  any  tax  (including, without  limitation,  any  income  tax,  capital  gains  tax,  value-­added  tax,  gross  receipts  tax,  sales  tax,  use  tax,  employment  tax, withholding  tax,  property  tax  (including  personal  and  real,  tangible  and  intangible),  gift  tax,  estate  tax  or  stamp  tax),  levy, impost,  duty,  charge,  assessment,  or  withholding  of  any  nature  whatsoever,  together  with  any  penalty,  fine,  addition  to  tax  or interest  on  any  of  the  foregoing. “  Tax  Challenge  ”  has  the  meaning  given  in  Section  6.6  . “  Term  ”  means  the  Initial  Term,  as  it  may  be  extended  by  Lessee’s  exercise  of  the  extension  and  renewal  rights  set  forth in  Section  25.1  ,  or  as  it  may  be  sooner  terminated  as  provided  in  this  Lease. 10 “  Terminal  System  ”  means  generally,  the  facilities  depicted  on  the  map  attached  as  Exhibit  E  as  they  exist  as  of  the Effective  Date  and  as  they  may  be  subsequently  modified  as  permitted  by  this  Lease.  Further,  the  Terminal  System  shall include  the  Land,  which  is  legally  described  on  Exhibit  F  ,  the  pipelines  and  all  agreements  granting  rights  to  Lessor  to  use and  operate  the  Terminal  System.  However,  the  Terminal  System  shall  not  include  the  Pipeline  System  or  the  Franchise. “  Transfer  ”  means  with  respect  to  any  property  or  rights,  the  direct  or  indirect  sale,  conveyance,  transfer,  exchange,  gift, contribution  or  assignment,  in  whole  or  in  part,  of  any  right,  title  or  interest  in  and  to  such  property  or  rights,  whether voluntary  or  Involuntary,  by  operation  of  law  or  otherwise. “  Variable  Rent  ”  means,  for  August  2014  and  each  calendar  month  thereafter  during  the  Term,  the  product  of  (a)  Base Rent  for  such  month  times  (b)  the  Excess  Product  Volume  Factor  for  such  month;;  provided,  however  ,  that  Variable  Rent  shall not,  for  any  month,  exceed  the  difference,  if  any,  between  (x)  the  quotient  obtained  by  dividing  (i)  Base  Rent  by  (ii)  one (1)  minus  30%,  less  (y)  Base  Rent  [i.e.,  (Base  Rent  /  (1  –  30%))  –  Base  Rent]. 1.2  Certain  Interpretive  Provisions  . As  used  in  this  Lease:  (a)  the  word  “or”  is  not  exclusive  and  the  word  “including”  is  not  limiting,  (b)  references  to  a  law include  any  rule  or  regulation  issued  under  the  law  and  any  amendment  to  the  law,  rule  or  regulation,  (c)  whenever  the  words “include,”  “includes,”  or  “including”  appear,  they  shall  be  deemed  to  be  followed  by  the  words  “without  limitation,” (d)  personal  pronouns  shall  be  deemed  to  include  the  other  genders  and  the  singular  shall  include  the  plural  and  vice  versa, and  (e)  the  words  “herein,”  “hereof’  and  “hereunder”  and  other  words  of  similar  import  refer  to  his  Lease  as  a  whole  and  not  to any  particular  Article,  Section  or  other  subdivision.  Wherever  a  period  of  time  is  stated  in  this  Lease  as  commencing  or  ending on  specified  dates,  such  period  of  time  shall  be  deemed  (i)  inclusive  of  such  stated  commencement  and  ending  dates,  and (ii)  to  commence  at  12:00  A.M.  Central  Time  on  such  stated  commencement  date  and  to  end  at  11:59  P.M.  Central  Time  on such  stated  ending  date.  Unless  the  context  otherwise  requires,  (A)  any  definition  or  reference  to  any  agreement,  instrument  or other  document  shall  be  construed  as  referring  to  such  agreement,  instrument  or  other  document  as  from time-­to-­time  amended,  supplemented  or  otherwise  modified  (subject  to  any  restrictions  on  such  amendments,  supplements  or modifications  set  forth  herein),  (B)  subject  to  the  restrictions  on  Transfers,  Liens  and  assignments  in  this  Lease,  any  reference herein  to  any  Person  shall  be  construed  to  include  such  Person’s  successor  and  assigns,  and  (C)  any  reference  to  any  law  shall include  all  statutory  and  regulation  provisions  consolidating,  amending,  replacing  or  interpreting  such  law  and  reference  to any  law  or  regulation  shall,  unless  otherwise  specified,  refer  to  such  law  or  regulation  as  amended,  modified  or  supplemented from  time-­to-­time.  Section  headings  herein  are  included  for  convenience  of  reference  only  and  shall  not  affect  the interpretation  of  this  Agreement  or  any  other  document  executed  in  connection  herewith. ARTICLE  II. LEASE  CHARACTERIZATION 2.1  Lease  Characterization  . (a)  True  Lease  .  Lessor  and  Lessee  intend  that  this  Lease  is  a  “true  lease”  for  federal  tax  purposes  and  not  a  financing lease,  capital  lease,  mortgage,  equitable  mortgage,  deed  of  trust,  trust  agreement,  security  agreement  or  other  financing  or  trust arrangement,  and  the  economic  realities  of  this  Lease  are  those  of  a  true  lease.  Notwithstanding  anything  herein  to  the contrary,  Lessee  agrees  that 11 neither  it  nor  any  Affiliate  of  Lessee  will  take,  or  will  be  permitted  to  take,  at  any  time  any  action  that  will  cause  this  Lease not  to  be  treated  as  a  “true  lease”  for  Federal  income  tax  purposes  including,  without  limitation,  the  filing  of  any  return  or statement  inconsistent  with  this  lease  being  treated  as  a  “true  lease”.  Lessor  and  Lessee  intend  that  the  business  relationship created  by  this  Lease  and  any  related  documents  is  solely  that  of  a  long-­term  commercial  lease  between  Lessor  and  Lessee. Further,  Lessor  and  Lessee  intend  that  this  Lease  be  an  operating  lease  for  GAAP  purposes. (b)  Waivers  and  Stipulations  .  Each  of  the  parties  (i)  waives  any  claim  or  defense  based  upon  the  characterization  of  this Lease  as  anything  other  than  a  “true  lease”  or  an  “operating  lease”  or  that  asserts  that  this  Lease  is  anything  other  than  a  “true lease”  or  an  “operating  lease,”  (ii)  waives  any  claim  or  defense  based  upon  the  characterization  of  all  or  any  portion  of  the Leased  Property  as  real  or  personal  property,  (iii)  stipulates  and  agrees  not  to  challenge  the  validity,  enforceability  or characterization  of  the  lease  of  the  Leased  Property  as  a  “true  lease”  or  “operating  lease,”  (iv)  stipulates  and  agrees  that nothing  contained  in  this  Lease  creates  or  is  intended  to  create  a  joint  venture,  partnership  (either  de  jure  or  de  facto), equitable  mortgage,  trust,  financing  device  or  arrangement,  security  interest  or  the  like,  and  (v)  shall  support,  at  such  party’s sole  cost  and  expense,  the  intent  of  the  parties  that  the  lease  of  the  Leased  Property  pursuant  to  this  Lease  is  a  true  lease  and does  not  create  a  joint  venture,  partnership  (either  de  jure  or  de  facto),  equitable  mortgage,  trust,  financing  device  or arrangement,  security  interest  or  the  like,  if,  and  to  the  extent  that,  any  challenge  occurs. (c)  Material  Inducement  .  The  expressions  of  intent,  the  waivers,  the  representations  and  warranties,  the  covenants,  the agreements  and  the  stipulations  set  forth  in  this  Section  are  a  material  inducement  to  each  of  Lessor  and  Lessee  in  entering into  this  Lease. (d)  Lease  Continuation  .  Except  as  limited  in  and  otherwise  provided  in  this  Lease  (and  including,  without  limitation, Lessee’s  rights  under  Articles  XXIII  and  XXV  ),  this  Lease  shall  not  terminate  and  Lessee  shall  not  have  any  right  to  terminate this  Lease  during  the  Term.  Except  as  limited  in  and  otherwise  provided  in  this  Lease  (and  including,  without  limitation, Lessee’s  rights  under  Articles  XXI,  XXII,  XXIII  and  XXV  ):  (1)  this  is  a  triple  net  lease  and  Lessee  shall  not  be  entitled  to  any setoff,  counterclaim,  recoupment,  abatement,  suspension,  deferment,  diminution,  deduction,  reduction  or  defense  of  or  to  Base Rent,  Variable  Rent  or  Additional  Rent,  and  (2)  the  obligations  of  Lessee  under  this  Lease  shall  not  be  affected  by  any circumstance  or  event,  or  for  any  reason,  including  but  not  limited  to  the  following:  (i)  any  damage  to  or  destruction  of  any  of the  Leased  Property  by  any  cause  whatsoever,  (ii)  any  Taking,  (iii)  the  prohibition,  limitation  or  restriction  of,  or  interference with,  Lessee’s  use  of  any  of  the  Leased  Property,  (iv)  any  eviction  by  paramount  title  or  otherwise,  (v)  Lessee’s  acquisition  of ownership  of  any  of  the  Leased  Property  other  than  pursuant  to  an  express  provision  of  this  Lease,  (vi)  any  default  on  the  part of  Lessor  under  this  Lease  or  under  any  other  agreement  related  thereto,  (vii)  any  default  of  any  representation  or  warranty  on the  part  of  Lessor  under  any  other  agreement  to  which  Lessee  is  a  party  related  thereto,  (viii)  any  latent  or  other  defect  in,  or any  theft  or  loss  of,  any  of  the  Leased  Property,  (ix)  the  breach  of  any  warranty  of  any  seller  or  manufacturer  of  any  of  the Improvements  or  Personal  Property  or  Lessee  Property,  or  (x)  any  other  cause,  whether  similar  or  dissimilar  to  the  foregoing, any  present  or  future  Applicable  Legal  Requirement  to  the  contrary  notwithstanding.  It  is  the  intention  of  the  parties  hereto that  except  as  limited  in  and  otherwise  provided  in  this  Lease  (and  including,  without  limitation,  Lessee’s  rights  under Articles  XXIII  and  XXV  ):  (A),  the  obligations  of  Lessee  under  this  Lease  shall  be  separate  and  independent  covenants  and agreements,  (B)  Base  Rent,  Variable  Rent  and  Additional  Rent  shall  continue  to  be  payable  in  all  events  (or,  in  lieu  thereof, Lessee  shall  pay  amounts  equal  thereto),  and  (C)  the  obligations  of  Lessee  under  this  Lease  shall  continue  unaffected,  unless this  Lease  shall  have  been  terminated  pursuant  to  an  express  provision  of  this  Lease. 12 ARTICLE  III. LEASED  PROPERTY 3.1  Lease  of  Leased  Property  .  Lessor  leases  to  Lessee  and  Lessee  leases  from  Lessor  the  Leased  Property,  subject  to  the Record  Agreements  and  the  Permitted  Liens,  for  the  Term,  upon  the  terms  and  conditions  of  this  Lease.  Lessee  shall  have exclusive  use  and  possession  of  the  Leased  Property  subject  to  the  Record  Agreements  and  the  Permitted  Liens.  The  Leased Property  is  leased  to  Lessee  subject  to  the  Record  Agreements,  the  Permitted  Liens  and  all  Applicable  Legal  Requirements now  or  hereafter  in  effect.  LESSOR  LEASES  AND  WILL  LEASE  AND  LESSEE  TAKES  AND  WILL  TAKE  POSSESSION  OF THE  LEASED  PROPERTY  “AS  IS”,  AND  LESSEE  ACKNOWLEDGES  THAT  LESSOR  (WHETHER  ACTING  AS  LESSOR HEREUNDER  OR  IN  ANY  OTHER  CAPACITY)  HAS  NOT  MADE  AND  WILL  NOT  MAKE,  NOR  SHALL  LESSOR  BE DEEMED  TO  HAVE  MADE,  ANY  WARRANTY  OR  REPRESENTATION,  EXPRESS  OR  IMPLIED,  WITH  RESPECT  TO ANY  OF  THE  LEASED  PROPERTY,  INCLUDING  ANY  WARRANTY  OR  REPRESENTATION  AS  TO  ITS  FITNESS  FOR USE  OR  DESIGN  OR  CONDITION  FOR  ANY  PARTICULAR  USE  OR  PURPOSE,  AS  TO  THE  QUALITY  OF  THE MATERIAL  OR  WORKMANSHIP  THEREIN,  LATENT  OR  PATENT,  AS  TO  LESSOR’S  TITLE  THERETO,  OR  AS  TO VALUE,  COMPLIANCE  WITH  SPECIFICATIONS,  LOCATION,  USE,  CONDITION,  MERCHANTABILITY,  QUALITY, DESCRIPTION,  DURABILITY  OR  OPERATION,  IT  BEING  AGREED  THAT  ALL  RISKS  INCIDENT  THERETO  ARE  TO  BE BORNE  BY  LESSEE.  FURTHERMORE,  AND  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY  HEREIN,  LESSEE ACKNOWLEDGES  THAT  LESSOR  MAKES  NO  REPRESENTATION,  WARRANTY,  OR  COVENANT  THAT  THE  LEASED PROPERTY  INCLUDES  THE  “SUBLEASE  PREMISES”  OR  ANY  RIGHTS  WHATSOEVER  THERETO  (INCLUDING WITHOUT  LIMITATION  ANY  RIGHTS  OF  ACCESS  THERETO  OR  USE  THEREOF),  AND  PROVIDED  THAT  FOR  THIS PURPOSE  “SUBLEASE  PREMISES”  HAS  THE  MEANING  SET  FORTH  IN  THAT  CERTAIN  PORTLAND  HARBOR SUBLEASE,  DATED  AS  OF  MARCH  1,  2005,  BETWEEN  CHEVRON  U.S.A.  INC.  AND  PARAMOUNT  PETROLEUM CORPORATION.  In  the  event  of  any  defect  or  deficiency  in  any  of  the  Leased  Property  of  any  nature,  whether  patent  or  latent, except  as  otherwise  expressly  provided  herein,  Lessor  shall  not  have  any  responsibility  or  liability  with  respect  thereto  or  for any  incidental  or  consequential  damages  (including  strict  liability  in  tort).  The  provisions  of  this  Section  3.1  have  been negotiated,  and  the  foregoing  provisions  are  intended  to  be  a  complete  exclusion  and  negation  of  any  warranties  by  Lessor, express  or  implied,  with  respect  to  the  physical  condition  or  sufficiency  of  any  of  the  Leased  Property,  and  arising  pursuant  to the  Uniform  Commercial  Code  or  any  other  Applicable  Legal  Requirements  now  or  hereafter  in  effect  or  otherwise. 3.2  Additional  Encumbrances  . (a)  Execution  of  Additional  Record  Agreements  . (i)  Execution  by  Lessor  .  Lessor  shall  not  during  the  Term  enter  into,  create,  place  of  record,  amend,  assign,  restate, modify,  or  terminate  any  Record  Agreement  or  any  Other  Recorded  Document  except  (A)  as  reasonably  requested  by  Lessee in  writing,  or  (B)  as  consented  to  by  Lessee  in  writing  prior  to  the  date  of  Lessor’s  execution  thereof. (ii)  Execution  by  Lessee  .  Lessee  shall  not  during  the  Term  enter  into,  create,  place  of  record,  amend,  assign,  restate, modify,  or  terminate  any  Record  Agreement  or  any  Other  Recorded  Document  except  as  Lessee  from  time-­to-­time  in  good faith  deems  necessary  or  appropriate  for  (A)  use  and  operation  of  the  Terminal  System  by  Lessee  and  its  Affiliates, (B)  compliance  with  Applicable  Legal 13 Requirements  and  contractual  arrangements  with  third  parties  regarding  operation  of  the  Terminal  System,  (C)  compliance  by Lessee  with  its  obligations  under  this  Lease,  or  (D)  compliance  with  the  requirements  of  this  Lease  regarding  Tax  Challenges and  Permitted  Lessee  Contests. (iii)  Notice  Prior  to  Execution;;  Special  Provisions  .  Lessor  and  Lessee  shall  each  give  the  other  Party  not  less  than ten  (10)  Business  Days’  notice  prior  to  executing  any  document  creating,  amending,  assigning,  restating,  modifying  or terminating  any  Record  Agreement  or  Other  Recorded  Document,  and  in  the  event  Lessor  and  Lessee  disagree  on  the  need  for, or  benefit  or  adverse  effects  of,  any  such  document,  Lessor  and  Lessee  shall  work  together  in  good  faith  to  resolve  their differences,  but  in  any  event  in  a  manner  consistent  with  the  rights  and  obligations  of  Lessor  and  Lessee  under  this  Lease. (iv)  Lessor  Delegation  of  Enforcement  Authority  .  Lessor  authorizes  Lessee  to  enforce  all  Record  Agreements  and any  Other  Recorded  Documents  on  Lessor’s  or  Lessee’s  behalf,  and  Lessor  shall  reasonably  cooperate  and  furnish  any pertinent  information  needed  toward  Lessee’s  enforcement  of  same,  at  no  cost  or  expense  to  Lessor  other  than  any  de  minimus cost  or  expense. (v)  Lessee  Compliance  .  During  the  Term,  Lessee  shall  be  obligated  to  comply  in  all  material  respects  with  the  terms and  conditions  of  each  of  the  Record  Agreements  and  the  Permitted  Liens. (b)  Creation  of  Liens  by  Lessee  on  Lessor’s  Interest  in  the  Leased  Property  .  Subject  to  the  provisions  of  Sections  6.6 and  12.1  ,  without  the  prior  written  consent  of  Lessor  (which  consent  shall  not  be  unreasonably  withheld)  and  Lessor  Lender, Lessee  shall  not,  directly  or  indirectly,  create  or  permit  to  be  created  or  to  remain,  and  shall  promptly  discharge,  any  Lien  on Lessor’s  interest  in  (i)  the  Leased  Property,  (ii)  this  Lease,  or  (iii)  the  Base  Rent,  the  Variable  Rent  or  any  Additional  Rent,  in the  case  of  subsections  (i  ),  (  ii  )  or  (  iii  ),  preceding,  created  by  or  resulting  from  any  act  or  omission  of  Lessee  or  those claiming  by,  through  or  under  Lessee  (except  Lessor  and  its  Affiliates).  Notice  is  hereby  given  that  Lessor  shall  not  be  liable for  any  labor,  services  or  materials  furnished  or  to  be  furnished  to  Lessee,  or  to  anyone  holding  any  of  the  Leased Property  through  or  under  Lessee,  and  that  no  mechanic’s  or  other  liens  for  any  such  labor,  services  or  materials  shall attach  to  or  affect  the  interest  of  Lessor  in  and  to  any  of  the  Leased  Property.  Notwithstanding  the  foregoing,  Lessee  has  no liability  for,  or  any  obligation  to  cause  to  be  paid  or  discharged,  any  Lien  created  by,  through  or  under  Lessor  or  any  Lessor Party,  other  than  under  the  terms  and  conditions  of  this  Lease  and  any  documents  or  instruments  that  are  ancillary  thereto. Nothing  in  this  Section  3.2(b)  shall  limit  Lessee’s  express  rights  under  this  Lease,  including  Section  3.2(a)(ii)  and  Article  XX. ARTICLE  IV. REPRESENTATIONS  AND  WARRANTIES 4.1  Representations  and  Warranties  of  Lessor  .  Lessor  represents  and  warrants  to  Lessee  as  of  the  Effective  Date  as follows,  it  being  understood  and  agreed  that  the  following  representations  and  warranties  shall  be  deemed  to  be  remade  by  a successor  Lessor  as  of  the  effective  date  of  any  assignment  by  Lessor  (and  with  applicable  revisions  to  subsection  (a)    with respect  to  such  successor  Lessor’s  organization  and  owners): (a)  Existence  and  Ownership  .  Lessor  is  duly  organized,  validly  existing  and  in  good  standing  under  the  laws  of  the  state of  Delaware,  is  qualified  to  do  business  and  in  good  standing  in  the  State  of  Oregon  (to  the  extent  Lessor  is  required  to  be  so by  Applicable  Legal  Requirements)  and  has  full  power,  authority  and  legal  right  to  execute  and  deliver  and  to  perform  and observe  the  provisions  of  this  Lease  to  be  observed  and/or  performed  by  Lessor. 14 (b)  Binding  Obligation  .  This  Lease  has  been  duly  authorized,  executed  and  delivered  by  Lessor,  and  constitutes  the valid  and  binding  obligations  of  Lessor  enforceable  against  Lessor  in  accordance  with  its  terms,  subject  to  applicable bankruptcy,  insolvency,  reorganization,  moratorium  and  other  laws  affecting  creditors’  rights  generally  and  subject  to  general principles  of  equity,  whether  considered  in  a  proceeding  in  equity  or  at  law. (c)  No  Violations  .  The  performance  by  Lessor  of  its  obligations  hereunder  will  not  violate  any  provision  of  the Governing  Documents  of  Lessor  and,  will  not  (i)  result  in  a  material  breach  of  any  agreement  to  which  Lessor  is  a  party, (ii)  violate  in  any  material  respect  any  provision  of  any  judgment  or  order  binding  on  Lessor,  or  (iii)  constitute  a  material violation  by  Lessor  of  any  Applicable  Legal  Requirements. 4.2  Representations  and  Warranties  of  Lessee  .  Lessee  represents  and  warrants  to  Lessor  as  of  the  Effective  Date  as follows,  it  being  understood  and  agreed  that  the  following  representations  and  warranties  shall  be  deemed  to  be  remade  by  a successor  Lessee  as  of  the  effective  date  of  any  Permitted  Lease  Assignment: (a)  Existence  .  Lessee  is  duly  organized,  validly  existing  and  in  good  standing  under  the  law  of  the  State  of  Delaware,  is qualified  to  do  business  in  and  is  in  good  standing  in  the  State  of  Oregon  and  has  the  requisite  power  and  authority  to  execute and  deliver  this  Lease  and  perform  its  obligations  hereunder. (b)  Binding  Obligation  .  This  Lease  has  been  duly  authorized,  executed  and  delivered  by  Lessee,  and  constitutes  the valid  and  binding  obligations  of  Lessee  enforceable  against  Lessee  in  accordance  with  its  terms,  subject  to  applicable bankruptcy,  insolvency,  reorganization,  moratorium  and  other  laws  affecting  creditors’  rights  generally  and  subject  to  general principles  of  equity,  whether  considered  in  a  proceeding  in  equity  or  at  law. (c)  Financial  Statements  .  The  financial  statements  for  fiscal  years  ended  December  31,  2011,  and  December  31,  2012, and  for  the  nine  month  period  ended  September  30,  2013,  for  ARC  Terminals  LP  (predecessor  to  Lessee  Guarantor),  copies  of which  were  provided  to  Lessor  by  Lessee  prior  to  such  Lessee  becoming  the  Lessee  hereunder  and  prior  to  the  date  of  this representation,  present  fairly  in  all  material  respects  the  financial  conditions  and  results  of  operations  for  such  Person  and  its consolidated  subsidiaries  on  a  consolidated  basis  in  accordance  with  GAAP  consistently  applied  for  such  periods,  and  with respect  to  quarterly  statements,  subject  to  normal  year-­end  audit  adjustments  and  absence  of  footnotes. (d)  No  Violations.  The  performance  by  Lessee  of  its  obligations  hereunder  will  not  violate  any  provision  of  the Governing  Documents  of  Lessee  and  will  not  (i)  result  in  a  material  breach  of  any  agreement  to  which  Lessee  is  a  party, (ii)  violate  in  any  material  respect  any  provision  of  any  judgment  or  order  binding  on  Lessee,  or  (iii)  constitute  a  material violation  by  Lessee  of  any  Applicable  Legal  Requirements. ARTICLE  V. RENT 5.1  Base  Rent,  Variable  Rent  and  Additional  Rent  .  Lessee  agrees  to  pay  to  Lessor  the  Base  Rent,  Variable  Rent  and Additional  Rent  without  setoff,  deduction,  notice  or  demand.  Base  Rent  shall  be  payable  on  the  first  day  of  each  calendar month,  in  advance,  during  the 15 Term,  with  the  first  payment  payable  on  the  Effective  Date  (pro-­rated  for  the  month  in  which  the  Effective  Date  occurs). Variable  Rent,  for  each  month  shall  be  payable  in  arrears  on  the  first  day  of  the  third  month  following  the  end  of  the  calendar month  for  which  it  is  calculated.  By  way  of  example,  Variable  Rent  due  on  June  1  would  be  based  on  the  Excess  Product Volume  Factor  calculated  for  the  preceding  month  of  March.  Additional  Rent  shall  be  payable  as  called  for  in  this  Lease.  If Lessee  is  obligated  to  pay  Base  Rent  or  Variable  Rent,  as  the  case  may  be  for  less  than  a  full  calendar  month,  Base  Rent  or Variable  Rent,  as  the  case  may  be,  shall  be  prorated  on  a  daily  basis  based  upon  the  actual  number  of  days  in  the  prorated month.  For  the  avoidance  of  doubt,  Variable  Rent  which  is  due  after  the  Term  shall  be  paid  by  Lessee. 5.2  Account  for  Payment  of  Base  and  Variable  Rent.  All  payments  of  Base  Rent  and  Variable  Rent  shall  be  made  to Account  No.  359681349643,  Account  Name  “CorEnergy  Infrastructure  Trust,  Inc.”,  reference  “Portland  Rent  Payment”, attention  Jennifer  Duke,  held  at  KeyBank  National  Association,  4910  Tiedeman  Road  3  rd  Floor,  Brooklyn,  OH  44144,  ABA No.  041001039,  or  such  other  account  as  Lessor  shall  advise  Lessee  in  writing  from  time-­to-­time,  but  at  least  ten  (10)  Business Days  before  the  date  any  payment  is  due. 5.3  Payment  to  Party  Claiming  Rent  .  If  any  party  other  than  Lessor,  or  subject  to  Section  20.1,  any  Lessor  Lender, demands  payment  of  Base  Rent,  Variable  Rent  or  Additional  Rent  due  hereunder  and  alleges  its  right  to  receive  the  Base Rent,  Variable  Rent  or  Additional  Rent  as  a  result  of  a  Transfer  of  Lessor’s  interest  in  this  Lease  or  otherwise,  Lessee  shall  not be  obligated  to  honor  the  demand  unless  Lessee  receives  written  instructions  to  do  so  from  the  party  to  whom  Lessee  is  then paying  Base  Rent,  Variable  Rent  or  Additional  Rent  or  shall  have  otherwise  received  evidence  acceptable  to  Lessee  of  the right  of  the  party  making  the  demand.  So  long  as  due  notice  is  provided  to  Lessor  regarding  Lessee’s  intention  to  withhold any  rents  due  under  this  Lease,  withholding  by  Lessee  of  Base  Rent,  Variable  Rent  or  Additional  Rent  pending  the determination  of  the  rights  of  the  party  making  the  demand  shall  not  be  a  default  by  Lessee  and  no  interest  at  the  Default Interest  Rate  or  otherwise  shall  be  due  with  respect  to  the  delay  pending  such  determination. 5.4  Past  Due  Rent  .  If  any  installment  of  Base  Rent  or  Variable  Rent,  as  the  case  may  be,  is  not  paid  when  due,  Lessee shall  pay  to  Lessor  (other  than  as  provided  in  Section  5.3  ),  on  demand,  as  Additional  Rent,  interest  on  such  installment  from the  date  such  installment  was  due  to  the  date  such  installment  is  paid  at  the  Default  Interest  Rate.  If  any  other  Additional  Rent (except  for  such  payments  as  Lessee  is  contesting  in  good  faith  or  pursuant  to  a  Tax  Challenge  or  a  Permitted  Lessee  Contest) is  not  paid  within  ten  (10)  Business  Days  following  written  demand  from  Lessor  to  Lessee  (the  “  Due  Date  for  Other Additional  Rent  ”),  Lessee  shall  pay  to  Lessor,  on  demand,  as  Additional  Rent,  interest  on  such  installment  from  the applicable  Due  Date  for  Other  Additional  Rent  to  the  date  such  other  Additional  Rent  is  paid  at  the  Default  Interest  Rate. ARTICLE  VI. TAXES 6.1  Taxes  .  Except  as  provided  in  Sections  6.2  and  6.3  ,  the  Lessee  shall  pay,  and  on  written  demand  shall  indemnify  and hold  each  Lessor  Indemnified  Party  harmless  from,  any  Tax  imposed  on  or  with  respect  to  any  Lessor  Indemnified  Party, Lessee,  the  Leased  Property  and  or  any  portion  thereof  or  interest  therein,  by  any  Federal,  state  or  local  government  or  other taxing  authority  in  the  United  States  in  connection  with  or  relating  to  (i)  the  construction,  financing,  refinancing,  purchase, acquisition,  acceptance,  rejection, 16 delivery,  nondelivery,  transport,  ownership,  assembly,  possession,  repossession,  operation,  use,  condition,  maintenance, repair,  sale,  dismantling,  return,  abandonment,  preparation,  installation,  storage,  replacement,  redelivery,  manufacture, leasing,  subleasing,  modification,  transfer  of  title,  rebuilding,  rental,  importation,  exportation  or  other  application  or disposition  of,  or  the  imposition  of  any  Lien  created  as  a  result  of  the  failure  of  Lessee  to  make  a  payment  under  this  Lease  (or incurrence  of  any  liability  to  refund  or  pay  over  any  amount  as  a  result  of  any  Lien)  on,  the  Leased  Property  or  any  portion thereof  or  interest  therein,  including  any  franchise,  sales  or  use  tax,  (ii)  any  payment  of  Base  Rent,  Additional  Rent,  Variable Rent  or  the  receipts  or  earnings  arising  from  or  received  with  respect  to  the  Leased  Property  or  any  portion  thereof  or  any interest  therein  or  any  applications  or  dispositions  thereof,  (iii)  any  other  amount  paid  or  payable  pursuant  to  this  Lease, (iv)  this  Lease  or  any  other  portion  of  Leased  Property  or  such  interest  therein,  (v)  all  or  any  of  this  Lease,  any  other documents  contemplated  hereby,  and  amendments  and  supplements  hereto  or  (vi)  otherwise  with  respect  to  or  in  connection with  this  Lease. 6.2  Payment  .  In  the  event  that  any  Taxes  against  any  of  the  Leased  Property  may  be  paid  in  installments,  Lessee  shall have  the  option  to  pay  such  Taxes  in  installments;;  and  in  such  event,  Lessee  shall  be  liable  only  for  those  installments  which become  due  and  payable  during  the  Term  and  which  accrue  or  arise  with  respect  to  the  Leased  Property  during  the  Term. Lessee  shall  prepare  and  file  all  tax  reports  required  by  Governmental  Authorities  which  relate  to  the  Taxes  which  accrue  or arise  with  respect  to  the  Leased  Property  during  the  Term.  Lessee  shall  be  deemed  to  have  satisfied  its  obligation  to  pay  Taxes as  required  hereby  by  paying  such  Taxes  before  the  earlier  of  the  date  (i)  any  penalty  (other  than  non-­delinquent  interest) accrues  thereon,  or  (ii)  any  Lien  is  imposed  against  any  Leased  Property  pursuant  to  Applicable  Legal  Requirements  as  a result  of  such  failure  (excluding  Liens  arising  and  attaching  as  a  matter  of  law  prior  to  the  date  such  Taxes  are  due). 6.3  Exclusions  from  Taxes  .  Notwithstanding  the  foregoing  and  for  the  avoidance  of  doubt,  in  no  event  will  Lessee  be required  to  pay,  and  the  term  “Taxes”  shall  exclude  any  and  all  of  the  following  (collectively,  the  “  Excluded  Matters  ”). (a)  net  income  taxes  (however  denominated),  gross  receipts,  net  receipts  or  gross  income  taxes  (however  denominated, that  are  imposed  in  lieu  of  net  or  gross  receipts  or  income  taxes)  of  Lessor  or  any  Affiliate  of  Lessor;;  and (b)  so  long  as  no  Lessee  Event  of  Default  shall  have  occurred  and  be  continuing,  any  tax  imposed  with  respect  to  the sale,  exchange,  financing  or  other  disposition  by  Lessor  or  any  Affiliate  of  Lessor,  in  whole  or  in  part,  of  the  Leased  Property or  Lessor’s  interest  in  this  Lease;;  and (c)  taxes  on,  or  with  respect  to  or  measured  by  the  capital  or  net  worth  of  Lessor  or  any  Affiliate  of  Lessor  or  in  the  nature of  a  use,  or  margin  tax  or  a  tax  for  the  privilege  of  doing  business;;  and (d)  taxes  imposed  with  respect  to  any  period  after  the  Term;;  and (e)  excess  profits  taxes,  accumulated  earnings  taxes,  capital  gains  taxes,  succession  or  estate  taxes  or  personal  holding company  taxes;;  and (f)  taxes  imposed  as  a  result  of  any  voluntary  sale,  financing,  Transfer  or  other  conveyance  by  Lessor  or  any  Affiliate  of Lessor;;  and 17 (g)  taxes  that  are  interest,  penalties  or  additions  to  tax  (or  similar  fees  or  charges)  that  are  imposed  as  a  result  of  the failure  of  Lessor  or  any  Affiliate  of  Lessor  to  file  any  return  or  other  filing  properly  and  timely  unless  such  failure  is  caused  by Lessee  failing  to  fulfill  its  obligations  under  this  Lease;;  and (h)  any  tax  resulting  from  or  that  would  not  have  been  imposed  but  for  the  existence  of  Liens  attributable  to  Lessor  or any  Affiliate  of  Lessor;;  and (i)  sales,  transfer,  recording,  mortgage  and  similar  taxes  if  and  to  the  extent  Lessor  is  required  to  pay  such  taxes  pursuant to  the  PSA;;  and (j)  assessments,  charges  or  other  matters  due  and  owning  under  any  Other  Recorded  Documents  executed  by,  through  or under  Lessor  in  violation  of  this  Lease;;  and (k)  any  Tax  that  is  being  contested  in  accordance  with  the  provisions  of  Section  6.6,  during  the  pendency  of  such contest;;  provided  ,  however  ,  that  such  contest  shall  not  result  in  any  danger  of  sale,  forfeiture  or  loss  of  the  Leased  Property  or any  portion  thereof  or  interest  therein. 6.4  Payment  of  Taxes  .  If  bills  or  invoices  in  respect  of  a  Tax  are  received  by  Lessor,  Lessor  shall,  within  ten (10)  Business  Days  of  Lessor’s  receipt  thereof,  but  in  any  event  at  least  ten  (10)  Business  Days  prior  to  the  due  date  for  the related  Tax  (provided  that  Lessor  has  received  such  bill  or  invoice  prior  to  ten  (10)  Business  Days  preceding  such  due  date), deliver  to  Lessee  any  bill  or  invoice  with  respect  to  any  Tax.  All  taxing  authorities  shall  be  instructed  to  send  all  Tax  invoices to  Lessee.  Within  thirty  (30)  days  after  Lessor  or  Lessee  has  received  confirmation  of  payment  on  account  of  Taxes,  such  Party shall  provide  to  the  other  Party  a  copy  of  such  confirmation  that  such  Tax  was  paid. 6.5  Abatements  .  For  the  purpose  of  determining  payments  due  from  Lessee  under  this  Article  VI,  Taxes  shall  be  the Taxes  assessed  until  such  time  as  the  Taxes  are  reduced  by  abatement,  refund  or  rebate.  If  any  abatement,  refund  or  rebate  is granted,  the  Taxes,  as  applicable,  shall  be  the  Taxes  as  so  reduced.  Any  rebate,  refund  or  abatement  received  subsequent  to payment  of  such  Taxes  by  Lessee  shall  be  refunded  to  Lessee  by  Lessor  within  ten  (10)  Business  Days  of  receipt  by  Lessor, even  if  the  abatement  is  received  after  the  expiration  or  earlier  termination  of  this  Lease,  and  such  obligations  shall  survive termination  of  this  Lease.  If  Lessor  or  any  taxing  authority  applies  any  rebate,  refund  or  abatement  as  a  credit  against  Taxes due  for  a  period  following  the  termination  of  this  Lease,  then  the  rebate,  refund  or  abatement  shall  be  deemed  received  by Lessor  upon  granting  of  the  rebate,  refund  or  abatement.  If  Lessor  or  any  taxing  authority  fails  to  refund  any  rebate,  refund  or abatement  to  Lessee  within  thirty  (30)  days  after  receipt  (other  than  any  rebate,  refund  or  abatement  that  will  be  applied  as  a credit  against  Taxes  due  for  another  period),  Lessee  shall  be  entitled  to  interest  calculated  at  the  Default  Interest  Rate  from  the date  payment  was  due  until  the  date  payment  is  made.  Any  rebate,  refund  or  abatement  realized  by  Lessor  prior  to  payment  of the  Taxes  by  Lessee  shall  result  in  the  immediate  reduction  of  Taxes  then  due  from  Lessee  to  Lessor. 6.6  Right  to  Contest  Taxes  .  Lessee  shall  have  the  right  to  file  and  prosecute  to  completion  an  application  contesting  the amount,  validity,  or  application  of  any  Taxes,  contesting  the  assessed  value  of  all  or  any  portion  of  any  Leased  Property,  or seeking  an  abatement  of  any  Taxes  (any  such  application,  a  “  Tax  Challenge  ”)  either  in  its  own  name  or  in  the  name  of Lessor,  at  no  cost  or  expense  to  Lessor  other  than  any  de  minimus  cost  or  expense  and  throughout  all  administrative  and judicial  proceedings  (trial  court  and  all  appeals)  until  there  is  a  final,  nonappealable  determination.  Lessee  may  discontinue  a Tax 18 Challenge  at  any  time.  If  Lessee  files  or  prosecutes  a  Tax  Challenge,  Lessor  and  its  Affiliates  shall  cooperate  and  furnish  any pertinent  information  needed  for  the  Tax  Challenge,  at  no  cost  or  expense  to  Lessor  other  than  any  de  minimus  cost  or expense.  Lessee  shall  be  entitled  to  be  reimbursed  out  of  the  award  for  the  reasonable  costs  and  expenses  occurred  in connection  with  a  Tax  Challenge.  Lessor  shall  not  have  the  right  to  file  a  Tax  Challenge  with  respect  to  any  Taxes  accruing during  the  Term  unless  the  taxing  authority  requires  the  Tax  Challenge  to  be  filed  by  Lessor  and  Lessee  requests  Lessor  to  do so.  Lessor  shall  immediately  provide  Lessee  with  a  copy  of  any  notices  or  demands  from  any  Governmental  Authority  or  other Persons  which  concerns  Taxes.  Upon  request  of  Lessor  at  any  time  or  from  time-­to-­time,  Lessee  shall  provide  a  written  report to  Lessor  regarding  the  status  of  any  such  Tax  Challenge. In  no  event  shall  the  manner  in  which  Lessee  pursues  any  Tax  Challenge  exacerbate  in  any  respect  the  risk  to  Lessor  of civil  or  criminal  liability,  penalty  or  sanction,  in  addition  to  such  risks  as  may  exist  for  the  matters  that  are  the  subject  of  the Tax  Challenge  prior  to  such  Tax  Challenge,  and  except  for  liabilities,  penalties  or  sanctions  for  which  Lessee  may,  and  in  fact does,  post  a  bond.  Further,  the  manner  in  which  Lessee  pursues  a  Tax  Challenge  shall  not  exacerbate  in  any  respect  the  risk  to Lessor  of  defeasance  of  its  interest  in  the  Leased  Property  in  addition  to  the  risk  of  such  defeasance  as  may  exist  for  the matters  that  are  the  subject  of  the  Tax  Challenge  prior  to  such  Tax  Challenge  and  except  for  such  risk  which  Lessee  may,  and in  fact  does,  bond  around.  Lessee  agrees  that  Lessee  shall  use  commercially  reasonable  efforts  to  diligently  prosecute  any such  Tax  Challenge  to  a  final  conclusion,  except  that  Lessee  shall  have  the  right  to  attempt  to  settle  or  compromise  such contest  through  negotiations  and  to  discontinue  any  such  Tax  Challenge  at  any  time.  Lessee  shall  promptly  after  the  final determination  of  such  Tax  Challenge,  fully  pay  and  discharge  the  amounts  which  shall  be  levied,  assessed,  charged  or imposed  or  be  determined  to  be  payable  therein  or  in  connection  therewith,  together  with  all  penalties,  fines,  interest,  costs and  expenses  thereof  or  in  connection  therewith,  and  perform  all  acts  the  performance  of  which  shall  be  ordered  or  decreed  as a  result  thereof. ARTICLE  VII. CONDITION  OF  LEASED  PROPERTY;;  MAINTENANCE 7.1  Lessee  Maintenance  of  Leased  Property  .  During  the  Term,  Lessee  shall  (a)  maintain  the  Leased  Property  in  Good Condition  and  Repair,  subject  to  the  provisions  of  Articles  X,  XV  and  XVI  ,  and  (b)  pay  all  maintenance  and  operating  costs of  the  Leased  Property  in  the  ordinary  course  of  business.  Lessee  waives  any  right  to  (i)  require  Lessor  to  maintain,  repair, replace  or  rebuild  all  or  any  part  of  the  Leased  Property  or  (ii)  make  repairs  at  the  expense  of  Lessor  pursuant  to  any Applicable  Legal  Requirements  at  any  time  in  effect.  Subject  to  Permitted  Lessee  Contests  and  the  other  provisions  of  this Lease,  Lessee,  at  its  own  expense,  will  make  (or  cause  to  be  made)  such  alterations  and  modifications  in  and  additions  to  the Improvements  and  Personal  Property  as  may  be  required  from  time-­to-­time  to  satisfy  Applicable  Legal  Requirements  in  all material  respects  in  a  manner  consistent  with  Article  X  . 7.2  No  Trespass  .  Lessor  authorizes  Lessee  to  enforce  any  no  trespass  actions  regarding  any  Real  Property  and  to  initiate any  proceedings  to  remove  any  third  parties  from  the  Land  which  Lessee,  in  Lessee’s  reasonable  business  judgment,  deems necessary  or  appropriate  for  Lessee’s  continued  quiet  enjoyment  of  the  Leased  Property.  Lessee  shall  give  Lessor  notice  when exercising  rights  under  this  Section  7.2  . 19 ARTICLE  VIII. UTILITIES 8.1  Payment  of  Utility  Charges  .  Lessee  shall  contract  for,  in  its  own  name,  and  pay  when  due,  all  charges  for  the connection  and  use  of  water,  gas,  electricity,  and  other  utility  services,  if  any,  supplied  to  the  Leased  Property  during  the Term.  Under  no  circumstances  shall  Lessor  be  responsible  for  any  interruption  of  any  such  utility  service  unless  caused  by  the gross  negligence  or  willful  acts  or  omissions  of  Lessor.  If  utilities  serving  the  Leased  Property  are  so  disrupted  on  account  of the  gross  negligence,  or  willful  act  or  omission  of  Lessor,  Lessor  shall  promptly  restore  the  utilities  at  Lessor’s  sole  cost  and expense.  The  term  “negligence”  as  used  in  this  Section  8.1  shall  not  include  negligence  imputed  as  a  matter  of  law  to  Lessor solely  by  reason  of  Lessor’s  failure  to  act  in  respect  of  matters  which  are  or  were  the  obligation  of  Lessee  under  this  Lease  or solely  as  a  result  of  Lessor’s  ownership  of  the  Leased  Property. ARTICLE  IX. USE 9.1  Lessee  Use  .  The  Leased  Property  may  be  used  for  any  use  permitted  by  Applicable  Legal  Requirements,  but  subject to  the  restrictions  in  that  certain  Equitable  Servitude  and  Easement  dated  March  1,  2005  by  and  between  Chevron  U.S.A,  Inc. and  Paramount  of  Oregon,  Inc.  During  such  time  as  this  Lease  is  in  effect,  Lessee  shall,  at  Lessee’s  sole  cost  and  expense  and subject  to  Permitted  Lessee  Contests,  comply  in  all  material  respects  with  all  Applicable  Legal  Requirements  now  or  hereafter in  force  relating  to  or  affecting  the  Leased  Property  and  Lessee’s  use,  occupancy,  operation,  maintenance,  alteration  and/or improvement  thereof.  Notwithstanding  the  preceding  or  any  other  provision  of  this  Lease  to  the  contrary,  (a)  Lessor  shall  be fully  responsible  for  any  violation  of  Applicable  Legal  Requirements  caused  at  any  time  by  any  Lessor  and  (b)  Lessee  shall have  no  responsibility  for  any  such  matter  described  in  subsection  (a  ).  Lessee  shall  have  the  right  to  delay  making  the changes,  alterations  and/or  additions  Lessee  is  responsible  for  making  pursuant  to  the  immediately  preceding  provisions  of this  Section  9.1  while  Lessee  is  contesting  in  good  faith  the  action  or  actions  being  taken  by  a  Governmental  Authority pursuant  to  a  Permitted  Lessee  Contest. 9.2  Operating  Requirement  .  In  no  event  shall  Lessee  be  obligated  to  keep  all  or  any  part  of  any  Leased  Property operating  during  the  Term.  If  Lessee  discontinues  operations,  Lessee  shall  comply  in  all  material  respects  with  all  Applicable Legal  Requirements  and  otherwise  comply  in  all  material  respects  with  the  terms  and  conditions  of  this  Lease  except  as  to  the continuing  operation  of  the  Leased  Property.  If  Lessee  discontinues  operations,  Lessee  shall  secure  the  Terminal  System  in  a manner  approved  by  Lessor.  Notwithstanding  anything  herein  to  the  contrary,  Lessee  shall  pay  the  Base  Rent,  Variable Rent  and  Additional  Rent  as  and  when  due  under  this  Lease  during  any  period  in  which  Lessee  discontinues  operations  in whole  or  in  part. ARTICLE  X. PERMITTED  CAPITAL  IMPROVEMENTS,  PARTS 10.1  Permitted  Capital  Improvements  . (a)  Permitted  Capital  Improvements  .  Notwithstanding  anything  set  forth  in  this  Lease,  Lessee,  at  its  own  expense  and without  Lessor’s  approval,  shall  have  the  right,  at  any  time  and  from 20 time-­to-­time  as  Lessee  deems  necessary  or  desirable,  to  make  Permitted  Capital  Improvements.  Any  Lien  created  by  the financing  of  any  such  improvements  that  are  Non-­Removable  Additions  shall  be  subordinated  to  any  Lessor  Lender  Lien. (b)  End  of  Term  Ownership  .  If  Lessee  proposes  to  construct  Permitted  Capital  Improvements  that  are  not  readily removable  or  cannot  be  detached  from  the  Terminal  System  without  adversely  affecting  the  structural  integrity  or functionality  of  the  Terminal  System  (each,  a  “  Non-­Removable  Addition  ”),  Lessee  shall  provide  Lessor  written  notice thereof.  If  Lessee  proposes  to  construct  Permitted  Capital  Improvements  that  are  not  Non-­Removable  Additions  (each,  a  “ Removable  Addition  ”),  Lessee  shall  provide  Lessor  written  notice  thereof.  At  the  end  of  the  Term,  (i)  all  Non-­Removable Additions  will  become  the  property  of  Lessor  without  compensation  or  reimbursement  to  Lessee,  and  (ii)  all  Removable Additions  may  be  removed  by  Lessee  from  the  Terminal  System  unless  otherwise  agreed  by  Lessor  in  writing,  and  Lessee  shall repair  any  damage  to  the  Leased  Property  caused  by  such  removal.  The  transfer  of  all  such  property  to  Lessor  at  the  end  of  the Term  (A)  shall,  subject  to  Section  18.1,  be  made  on  an  AS  IS  WHERE  IS  basis,  without  any  express  or  implied  warranties  from Lessee  other  than  special  warranties  of  title  (except  as  otherwise  expressly  agreed  between  the  parties  at  the  time  of  such transfer),  provided,  however,  that  such  conveyance  shall  in  any  event  be  made  by  Lessee  to  Lessor  free  and  clear  of  (I)  any Liens  placed  on  the  Leased  Property  by,  through  or  under  Lessee,  and  (II)  any  Other  Recorded  Documents  executed  by, through  or  under  Lessee  in  violation  of  this  Lease,  and  (B)  shall  be  evidenced  by  Lessee’s  execution  of  such  deeds,  bills  of sale,  or  other  appropriate  documents  conveying  title  to  such  property  as  Lessor  and  Lessee  may  reasonably  agree,  consistent with  subsection  (A)  of  this  sentence. 10.2  Replacement  of  Parts  .  Lessee  may,  at  its  own  cost  and  expense,  remove  in  the  ordinary  course  of  maintenance, service,  repair,  overhaul  or  testing,  or  as  otherwise  required  or  permitted  by  this  Lease,  any  Parts,  whether  or  not  worn  out,  lost, stolen,  destroyed,  seized,  confiscated,  damaged  beyond  repair  or  permanently  rendered  unfit  for  use.  Lessee  will,  at  its  own cost  and  expense,  replace  any  such  Parts  as  is  necessary  to  maintain  the  Leased  Property  in  accordance  with  the  standards  for Lessee’s  maintenance  obligations  as  set  forth  in  Section  7.1  of  this  Lease.  All  replacement  Parts  shall  be  in  as  good  operating condition  as,  and  shall  have  a  value  (including  the  residual  value),  utility  and  remaining  useful  life  at  least  equal  to  the  Parts replaced,  assuming  such  replaced  Parts  were  in  condition  and  repair  required  to  be  maintained  by,  and  otherwise  in compliance  with,  the  terms  of  this  Lease  (nothing  in  this  Lease,  however,  shall  be  construed  to  require  Lessee  to  replace  any Parts  having  a  useful  life  adequate  to  operate  the  Leased  Property  through  the  end  of  the  Term).  All  Parts  at  any  time  removed from  any  item  or  portion  of  the  Leased  Property  shall  remain  the  property  of  Lessor  until  such  time  as  such  Parts  shall  be replaced  by  Parts  which  have  been  incorporated  or  installed  in  or  attached  to  such  item  or  portion  of  the  Leased  Property  and which  meet  the  requirements  for  replacement  Parts  specified  above.  Immediately  upon  any  replacement  Part  becoming incorporated  into  or  installed  in  or  attached  to  any  item  or  portion  of  the  Leased  Property,  without  further  act  (except  in  the case  of  replacement  property  temporarily  installed  on  an  emergency  basis),  (a)  title  to  such  replacement  Part  shall  thereupon vest  in  Lessor,  (b)  such  replacement  Part  shall  become  subject  to  this  Lease  and  be  deemed  part  of  the  Leased  Property  for  all purposes  to  the  same  extent  as  the  Parts  originally  incorporated  or  installed  in  or  attached  to  the  Leased  Property,  and  (c)  title to  the  removed  Part  shall  thereupon  vest  in  Lessee  AS  IS  WHERE  IS  ,  free  and  clear  of  all  rights  of  Lessor,  and  shall  no  longer be  deemed  a  part  of  the  Leased  Property.  Notwithstanding  the  foregoing,  “  Parts  ”  means  all  appliances,  parts,  instruments, appurtenances,  accessories,  furnishings,  spare  parts,  and  other  equipment  and  property  of  whatever  nature  which  constitute  a portion  of  the  Improvements  or  Personal  Property  and  any  replacements  or  substitutions  therefor  made  under  this  Section  10.2 .  “  Parts  ”  shall  not  in  any  event  include  (i)  any  Lessee  Property,  (ii)  removed  Parts  as  provided  in  subsection  (c  ),  above,  or (iii)  any  Permitted  Capital  Improvements  and  Additional  Lines,  which  Permitted  Capital  Improvements  and  Additional  Lines shall  be  governed  by  Section  10.1  ,  above  .  Title  to  replacements  and  substitutions  for  Parts  made  under  this  Section  10.2 shall  remain  a  portion  of  the  Leased  Property. 21 10.3  Lessor  Capital  Improvements  Construction  .  Lessee  agrees  that  Lessor  shall  have  the  exclusive  right  to,  and Lessor  has  agreed  to,  construct  and  pay  for  the  Project  Improvements  in  accordance  with  the  Project  Management  Agreement. Lessor  and  Lessee  agree  that  total  Project  Costs  are  estimated  to  be  Ten  Million  dollars  ($10  million)  (“  Base  Cost  ”),  and  that the  target  completion  date  of  such  construction  is  July  1,  2014. By  no  later  than  the  21  st  day  of  July  2014,  Lessor  will  provide  Lessee  with  written  notice  of  Project  Costs  incurred  by Lessor  for  the  Project  Improvements.  Beginning  the  month  of  August  2014  and  for  each  month  thereafter  during  the  Term, monthly  Minimum  Rent  will  increase  by  one-­twelfth  of  11.5%  of  the  Project  Costs  set  forth  in  such  notice.  If  additional Project  Costs  are  incurred  by  Lessor  for  the  Project  Improvements,  Lessor  will  provide  Lessee  with  written  notice  of  such  costs by  no  later  than  the  21  st  day  of  any  month,  and  beginning  the  next  month  and  for  each  month  thereafter  during  the  Term, monthly  Minimum  Rent  will  increase  by  one-­twelfth  of  11.5%  of  the  costs  set  forth  in  such  notice.  However,  the  total  amount of  Project  Costs  set  forth  in  all  such  notices  provided  under  this  Section  10.3  shall  not  exceed  the  Base  Cost,  and  therefore  the total  increase  in  monthly  Minimum  Rent  shall  not  exceed  $95,833  [i.e.,  ($10  million  *  11.5%)  /  12]. For  the  avoidance  of  doubt,  Lessor  and  Lessee  agree  that  Lessor  shall  be  the  owner  of,  and  Lessee  shall  be  the  Lessee  of, the  Project  Improvements,  which  shall  be  part  and  parcel  of  the  Terminal  System. ARTICLE  XI. REGULATORY  ISSUES 11.1  Lessee’s  Rights  .  Except  (i)  as  provided  in  Section  11.2  ,  below,  and  (ii)  to  the  extent  Lessor  is  required  to  engage  in such  communications  by  Applicable  Legal  Requirements  which  are  not  the  subject  of  a  Permitted  Lessee  Contest  and  after consultation  with  Lessee  regarding  Lessor’s  concern  that  Lessor’s  communication  with  Governmental  Authorities  is  required by  Applicable  Legal  Requirements,  but  notwithstanding  any  other  provision  of  this  Lease  to  the  contrary: (a)  Leased  Property  .  Lessee  shall  have  the  right  and  obligation  to  (I)  deal  with  all  Governmental  Authorities,  and  (II) conduct  all  regulatory  proceedings,  governing  or  affecting  the  Leased  Property  or  the  ownership,  use  or  operation  thereof. (b)  Lessee  Property  .  Lessee  shall  have  the  right  and  obligation  to  (I)  deal  with  all  Governmental  Authorities,  and  (II) conduct  all  regulatory  proceedings,  governing  or  affecting  the  ownership,  use  or  operation  of  the  Lessee  Property. At  Lessee’s  request,  Lessor  shall  execute  all  such  documents  and  take  all  such  action  as  may  be  necessary  to  ensure  and/or evidence  Lessee’s  rights  under  this  Section  11.1  unless,  in  Lessor’s  reasonable  and  good  faith  judgment,  such  documents  or actions  will  directly  result  in  payments  required  to  be  made  by  Lessor  which  Lessee  is  unwilling  to  pay  on  behalf  of  Lessor and,  upon  such  determination  by  Lessor  and  prior  to  taking  any  such  action,  Lessor  shall  promptly  notify  Lessee  in  writing  of such  determination  by  Lessor,  and  Lessor  and  Lessee  shall  work  diligently  and  in  good  faith  to  resolve  their  differences  with respect  to  the  requested  action  or  document(s).  Notwithstanding  the  foregoing,  Lessor  shall  in  any  event  be  required  to execute  such  documents  and  take  all  such  actions  as  may  be  required  for  Lessee  to  pursue  a  Tax  Challenge  or  a  Permitted Lessee  Contest. 22 11.2  Lessor’s  Rights  .  Notwithstanding  the  foregoing  Section  11.1  ,  but  subject  in  any  event  to  Lessee’s  right  to  pursue Tax  Challenges  and  Permitted  Lessee  Contests,  if  Lessor  determines,  in  Lessor’s  reasonable  judgment,  that  Lessee  has  not taken  sufficient  action  to  protect  the  interests  of  Lessor  in  regard  to  any  such  regulatory  matter  (including,  without  limitation, regulatory  proceedings)  with  respect  to  the  Leased  Property,  upon  prior  written  notice  to  Lessee,  Lessor  may  take  such  action as  may  be  necessary  in  order  for  Lessor  to  be  and  remain  in  compliance  with  Applicable  Legal  Requirements  as  they  relate  to Lessor  and  the  Leased  Property.  Lessor  shall  promptly  provide  Lessee  with  a  copy  of  any  notices  or  demands  received  by Lessor  from  any  Governmental  Authority  which  concerns  any  Applicable  Legal  Requirement. 11.3  No  Application  to  Condemnation  .  Lessor  and  Lessee  acknowledge  and  agree  that  the  provisions  of  this  Article  XI shall  not  prohibit  Lessor  from  cooperating  in  condemnation  proceedings  as  required  by  Article  XVI  . ARTICLE  XII. MECHANIC’S  LIENS 12.1  Lessee’s  Obligations  .  If  any  mechanic’s,  materialmen’s  or  other  Liens  against  any  of  the  Lessor’s  interest  in  the Leased  Property  in  connection  with  any  materials,  labor  or  equipment  furnished  or  claimed  to  have  been  furnished  to  or  for any  Lessee  Party  are  filed  against  Lessor’s  interests  in  the  Leased  Property  on  account  of  action  or  inaction  by  any  Lessee Party  (including  by  Lessee  in  its  capacity  as  Lessor’s  construction  agent  for  Removable  Additions  or  Non-­Removable Additions  under  Article  X  ,  other  than  any  such  Liens  filed  as  a  result  of  materials,  labor  or  services  for  Removable  Additions or  Non-­Removable  Additions  and  for  which  Lessor  has  failed  to  pay  the  cost  of  such  materials,  labor  or  services),  then  Lessee shall  promptly  cause  such  Lien  to  be  discharged  (whether  by  payment  or  bond),  or,  if  Lessee  desires  to  contest  the  Lien, Lessee  may  do  so  as  long  as  the  enforcement  of  the  Lien  is  stayed  pursuant  to  a  Permitted  Lessee  Contest,  and  (b)  if  a  Lessor Lender  requires  Lessor’s  interest  in  the  Leased  Property  to  be  free  of  such  mechanic’s  or  materialmen’s  liens,  then  upon request  of  Lessor  or  such  Lessor  Lender,  Lessee  shall  either  discharge  the  Lien  or  post  a  bond  sufficient  to  cover  the  amount  of the  Lien  and  interest,  penalties  and  costs  that  will  be  payable  to  discharge  the  Lien  assuming  its  validity. 12.2  Lessor’s  Obligations  .  Lessor  shall  not  permit  any  mechanic’s,  materialmen’s  or  other  Liens  against  any  Leased Property  in  connection  with  any  materials,  labor  or  equipment  furnished,  or  claimed  to  have  been  furnished,  to  or  for  Lessor, and  if  any  such  Liens  shall  be  filed  against  any  Leased  Property  on  account  of  any  action  or  inaction  by  Lessor  (other  than any  action  or  inaction  alleged  against  Lessor  resulting  from  the  failure  of  Lessee  to  perform  its  obligations  hereunder),  Lessor shall  cause  the  Lien  to  be  discharged,  provided  that  if  Lessor  desires  to  contest  any  such  Lien  (whether  by  payment  or  bond), it  may  do  so  as  long  as  enforcement  of  the  Lien  is  stayed  pursuant  to  a  Permitted  Lessor  Contest. ARTICLE  XIII. LESSEE  PROPERTY 13.1  No  Lien  .  Lessee  is  and  shall  remain  the  owner  of  the  Lessee  Property,  other  than  Non-­Removable  Additions  at  the end  of  the  Term  as  provided  in  Section  10.1(e  ).  Lessor  shall  not  have  any  Lien  on  any  of  the  Lessee  Property  for  the performance  of  Lessee’s  obligations  under  this  Lease  or  otherwise.  LESSOR 23 WAIVES  AND  DISCLAIMS  ALL  STATUTORY  AND  CONTRACTUAL  LIEN  RIGHTS  IN  LESSEE  PROPERTY  NOW OR  HEREAFTER  PLACED  AT  OR  WITH  THE  LEASED  PROPERTY.  Lessor  agrees  to  execute  an  agreement  with  Lessee or  Lessee’s  lender  to  evidence  such  waiver  of  Lessor’s  Lien  rights  in  Lessee  Property  and,  following  a  default  by  Lessee  under any  Lessee  mortgage,  allow  Lessee’s  lender  access  to  the  Leased  Property  to  seize  and  remove  Lessee  Property  subject  to  the terms  of  such  agreement,  provided  that  the  form  and  substance  of  any  such  agreement  is  reasonably  satisfactory  to  Lessor, Lessee  and  Lessee’s  lender  (including  in  such  agreement  reasonable  conditions  and  time  periods  within  which  such  Lessee Property  may  be  removed).  Lessee  shall  have  the  right  to  remove  Lessee  Property  at  any  time  or  times  during  the  Term  and  for a  period  of  thirty  (30)  days  after  the  expiration  of  the  Term,  without  any  obligation  to  pay  Lessor  holdover  rent  under Section  26.4  . 13.2  Sole  Risk  of  Lessee  .  All  of  Lessee  Property  is  at  Lessee’s  sole  risk  and  if  any  of  the  Lessee  Property  is  destroyed  or damaged  other  than  as  a  result  of  the  gross  negligence  or  willful  misconduct  of  a  Lessor  Party,  no  part  of  the  destruction  or damage  shall  be  the  responsibility  of  Lessor.  If  the  damage  is  caused  by  the  gross  negligence  or  willful  misconduct  of  a  Lessor Party,  Lessor  shall  be  responsible  for  any  damage  or  destruction,  subject,  however,  to  the  waiver  of  subrogation  provisions  of Section  14.4  .  The  term  “negligence”  as  used  in  this  Section  13.2  shall  not  include  negligence  imputed  as  a  matter  of  law  to Lessor  solely  by  reason  of  Lessor’s  failure  to  act  in  respect  of  matters  which  are  or  were  the  obligation  of  Lessee  under  this Lease  or  solely  as  a  result  of  Lessor’s  ownership  of  the  Leased  Property. 13.3  Lessee’s  Ability  to  Grant  Liens  on  Lessee  Property  and  Lessee’s  Interest  in  Lease  .  Nothing  contained  in  this Lease  shall  be  deemed  to  limit  or  otherwise  restrict  Lessee’s  ability  to  grant  a  Lien  on  Lessee  Property  or  Lessee’s  interest  in this  Lease,  in  any  such  case  to  a  lender  not  Affiliated  with  Lessee  for  the  purpose  of  securing  indebtedness  of  Lessee  or  its Affiliates  to  such  lender.  Lessor  acknowledges  and  agrees,  following  a  default  by  Lessee  under  any  Lessee  mortgage,  to  allow Lessee’s  lender  access  to  the  Leased  Property  to  seize  and  remove  all  or  any  of  the  Lessee  Property  and  Lessor  agrees  to execute  an  agreement  with  Lessee’s  lender  to  evidence  such  right  as  provided  in  Section  13.1  . ARTICLE  XIV. INSURANCE 14.1  Insurance  Coverage  .  Subject  to  Section  14.3  below,  from  and  after  the  Effective  Date,  Lessee  shall  maintain  with respect  to  the  Leased  Property  and  the  Pipeline  System  at  all  times  during  the  Term,  at  no  cost  or  expense  to  Lessor,  the following  types  and  amounts  of  insurance: (a)  Liability  Insurance  .  Commercial  general  liability  insurance  against  claims  for  bodily  injury,  death  or  property damage  occurring  on,  in  or  about  the  Leased  Property  and/or  the  Pipeline  System,  which  insurance  shall  (i)  be  written  on  an “Occurrence  Basis”,  and  shall  provide  minimum  protection  with  a  combined  single  limit  in  the  amount  of  $1,000,000  per occurrence  and  $2,000,000  annual  aggregate;;  and  (ii)  include  premises  and  operations  liability  coverage,  products  and completed  operations  liability  coverage,  and  blanket  contractual  liability  coverage.  In  addition,  Lessee  shall  maintain  auto liability  insurance  in  an  amount  not  less  than  $1,000,000.  Any  policy  hereunder  shall  include  the  following  endorsements: 30  days  written  notice  of  cancellation  to  Lessor  and  its  lenders  (or  10  days  in  the  event  of  non-­payment),  and  coverage  for injury  to  leased  workers. (b)  Worker’s  Compensation  and  Employer’s  Liability  Insurance  .  Worker’s  Compensation  and  Employer’s  Liability Insurance  in  accordance  with  all  applicable  federal  and  state  law,  which  shall 24 cover  all  Lessee’s  personnel,  invitees,  sublessors,  guests,  consultants,  and  similar  Persons  performing  under  this  Lease,  with  an Employer’s  Liability  limit  shall  of  not  less  than  one  million  Dollars  ($1,000,000)  or  such  greater  amount  as  may  be  required by  law.  Any  policy  will  include  the  following  endorsements  or  equivalents  on  an  “if  any”  basis  or  as  noted: (i)  Longshore  and  Harbor  Workers’  Compensation  Act  Coverage  Endorsement  (WC  00  01  06  A);; (ii)  Outer  Continental  Shelf  Lands  Act  Coverage  Endorsement  (WC  00  01  09  B);; (iii)  Alternate  Employer  Endorsement  (WC  00  03  01  A);; (iv)  Voluntary  Compensation  and  Employers  Liability  Coverage  Endorsement  (WC  00  03  11  A);;  And (v)  Workers  Compensation  Insurance  Plan—Other  States  Endorsement  (WC  00  03  24)  -­  Listing  all  other  states where  Lessor  does  not  have  operations. (c)  Property  Insurance  .  “All  Risk”  Insurance,  equal  to  the  full  replacement  value  (as  declared)  of  the  Terminal  System, which  shall  be  payable  in  case  of  loss  and  held,  paid  or  applied  as  provided  in  Section  15.1  hereof.  The  policy  shall  provide that  no  act  or  omission  of  any  Person  named  as  insured  shall  invalidate  the  interest  of,  or  be  a  defense  against,  any  other Person  named  as  insured.  Lessor  and  all  Lessor  Lenders  shall  be  shown  as  “loss  payee”  and  such  insurance  shall  include  the following  coverages:  agreed  amount  valuation,  sixty  days  written  notice  of  cancellation  to  Lessor  and  all  Lessor  Lenders  (or ten  days  in  the  event  of  non-­payment),  earthquake  for  at  least  $20,000,000  for  each  occurrence,  coverage  for  underground equipment  at  least  $20,000,000,  flood  for  at  least  $30,000,000,  Lessor  and  all  Lessor  Lenders  to  be  provided  mortgagee status. (d)  Excess  Liability  Insurance  .  Excess  Liability  Insurance  covering  liabilities  arising  out  of  operations  worldwide,  with a  combined  minimum  limit  of  not  less  than  $25,000,000  over  and  above  the  primary  liability  limits  of  all  underlying insurance  policies  as  required  in  this  Section. (e)  Builders  Risk  Insurance  .  For  any  alteration,  addition,  repair  or  replacement  to  the  Leased  Property  or  the  Pipeline System  by  Lessee  (but  excluding  any  Removable  Additions  or  Non-­Removable  Additions  for  which  Lessee  is  acting  as Lessor’s  construction  agent  under  Article  X  )  for  which  the  estimated  cost  exceeds  $500,000,  completed  value  builder’s  risk insurance  or  similar  insurance  upon  the  entire  work  for  the  full  insurable  value  replacement  cost  coverage.  Coverage  shall include  hot  and  cold  testing  for  at  least  three  months  for  a  limit  of  at  least  15%  of  the  total  completed  limit. Lessor  and  Lessee  acknowledge  and  agree  that  the  coverage  required  hereunder  may  be  provided  through  a  combination  of policies  that  is  different  than  those  described  above.  In  addition,  Lessee  may,  at  its  election,  maintain  insurance  covering additional  casualties  and  events. 14.2  Environmental  Insurance.  Subject  to  Section  14.3  below,  from  and  after  the  Effective  Date,  Lessee  shall  maintain with  respect  to  the  Leased  Property  and  the  Pipeline  System  at  all  times  during  the  Term,  at  no  cost  or  expense  to  Lessor, Pollution  and  Premises  Liability  Insurance  for  the  protection  of  the  Leased  Property  and  the  Pipeline  System,  with  an aggregate  policy  limit  of  at  least  $25,000,000  and  an  excess  policy  limit  of  $25,000,000. 25 14.3  Insurance  Requirements  Generally  .  The  insurance  required  by  Section  14.1  shall  be  written  by  companies  having an  A.M.  Best  Insurance  Reports  rating  of  not  less  than  “A-­”  and  a  financial  size  category  of  at  least  “VII”,  and  all  such companies  shall  be  authorized  to  do  an  insurance  business  in  the  State  of  Oregon,  or  as  otherwise  agreed  to  by  Lessor.  All insurance  policies  required  to  be  maintained  pursuant  to  the  terms  of  this  Lease  (other  than  the  Worker’s  Compensation Insurance),  shall  be  endorsed  to  name  Lessor  and  its  successors  and  assigns  as  additional  named  insureds  and  to  provide  that such  insurance  shall  be  primary  over  any  insurance  that  may  be  maintained  by  Lessor,  and,  except  during  the  Term  (when  all insurance  proceeds  are  delivered  and  paid  to  Lessee,  as  loss  payee).  All  insurance  required  by  this  Article  may  be  blanket  with other  insurance  maintained  by  Lessee  or  any  Affiliate  of  Lessee  and  may  be  effected  by  any  combination  of  basic  and  excess or  umbrella  coverage  provided  :  (i)  the  total  amount  of  the  insurance  available  shall  be  at  least  the  protection  equivalent  of separate  policies  in  the  amounts  required;;  and  (ii)  in  all  other  respects,  all  of  the  policies  shall  comply  with  the  applicable provisions  of  this  Article. Lessee  shall  pay  as  they  become  due  all  premiums  for  the  insurance  required  by  this  Article  XIV  ,  shall  renew  or  replace each  policy  if  required  to  comply  with  the  insurance  requirements  of  this  Lease,  and  shall  deliver  to  Lessor  a  certificate  or other  evidence  of  the  existing  policy  and  any  renewal  or  replacement  policy  (on  an  ACORD  27  form,  in  the  case  of  property insurance,  and  on  an  ACORD  25  form,  in  the  case  of  liability  insurance,  and,  in  either  case,  otherwise  reasonably  satisfactory to  Lessor,  to  the  extent  reasonably  available)  as  soon  as  available,  but  in  any  event  not  later  five  (5)  Business  Days  after  the date  the  new  coverage  is  effective  (  it  being  understood  that  in  no  event  shall  Lessee  allow  any  insurance  coverage  to  lapse  if and  to  the  extent  such  insurance  is  necessary  to  comply  with  the  requirements  of  this  Lease).  In  the  event  of  Lessee’s  failure  to comply  with  any  of  the  foregoing  requirements  of  this  Article  XIV  within  five  (5)  Business  Days  of  the  giving  of  written notice  by  Lessor  to  Lessee  (or  such  shorter  period  as  may  be  required  to  maintain  the  insurance  required  by  this  Article  XIV  in full  force  and  effect),  Lessor  shall  be  entitled  to  procure  such  insurance.  Any  sums  expended  by  Lessor  in  procuring  such insurance  shall  be  Additional  Rent  and  shall  be  repaid  by  Lessee  upon  written  demand  therefor  by  Lessor,  together  with interest  thereon  from  the  applicable  Due  Date  for  Other  Additional  Rent  at  the  Default  Interest  Rate. 14.4  Waiver  of  Subrogation  .  Each  of  Lessor  and  Lessee  hereby  releases  the  other  from  any  and  all  liability  for  loss  or damage  caused  by  fire  or  any  of  the  extended  coverage  casualties  or  any  other  casualty  which  shall  be  brought  about  by  the fault  or  negligence  of  the  other  party  or  any  persons  for  whom  such  other  party  is  responsible,  provided  that  this  release  shall be  in  force  and  effect  only  with  respect  to  loss  or  damage  occurring  during  such  time  as  the  respective  party’s  policies  of property  insurance  shall  contain  a  clause  to  the  effect  that  this  release  shall  not  affect  such  policies  or  right  of  the  releasing party  to  recover  thereunder,  and  the  release  shall  apply  only  to  the  extent  of  the  releasing  party’s  insurance  coverage, provided  that,  with  respect  to  Lessee’s  release  of  Lessor  hereunder.  Any  insurance  policy  held  by  Lessee  or  Lessor,  to  the extent  that  waiver  is  reasonably  and  customary  for  the  policy  in  question,  shall  include  a  waiver  of  subrogation  clause  so  long as  the  same  is  obtainable.  Nothing  herein  shall  be  deemed  an  obligation  on  the  part  of  Lessor  to  maintain  any  insurance  and any  insurance  maintained  by  Lessor  shall  serve  as  excess  coverage. 14.5  No  Release  from  Liability  .  Except  as  provided  in  Section  14.4  ,  nothing  in  this  Article  XIV  shall  be  deemed  to release  either  party  from  liability  for  damages  resulting  from  the  negligence  or  willful  misconduct  of  such  party  or  from responsibility  for  repairs  necessitated  by  such  negligence  or  willful  misconduct.  By  requiring  insurance  as  provided  herein, neither  Lessor  nor  Lessee  represents  that  coverage  and  limits  will  necessarily  be  adequate  to  protect  Lessee  or  Lessor,  and such 26 coverage  and  limits  shall  not  be  deemed  as  a  limitation  of  the  liability  of  Lessee  or  Lessor  under  any  indemnification provisions  in  this  Lease.  Failure  of  Lessor  to  demand  such  certificate  or  other  evidence  of  full  compliance  with  these insurance  requirements  or  failure  of  Lessor  to  identify  a  deficiency  from  evidence  that  is  provided  shall  not  be  construed  as  a waiver  of  Lessee’s  obligation  to  maintain  such  insurance. ARTICLE  XV. FIRE  AND  OTHER  CASUALTY 15.1  Fire  and  Other  Casualty  . (a)  General  Provisions  .  If  all  or  any  part  of  the  Leased  Property  is  damaged  or  destroyed  by  fire  or  other  casualty  during the  Term,  then  Lessee  shall  give  prompt  notice  of  such  event  to  Lessor  and  Lessee  shall,  at  Lessee’s  cost  and  expense, promptly  thereafter  repair,  restore  or  replace  the  Leased  Property,  or  any  such  part  thereof,  to  substantially  the  same  condition it  was  in  immediately  prior  to  the  casualty  (subject  to  any  changes  to  all  or  any  such  part  of  the  Leased  Property  that  Lessee intends  to  make  to  the  extent  permitted  under  this  Lease).  Notwithstanding  any  such  fire  or  other  casualty,  this  Lease  shall remain  in  effect  following  such  fire  or  other  casualty,  the  rights  and  obligations  of  Lessor  and  Lessee  shall  remain  in  effect without  abatement,  all  Base  Rent  shall  continue  unabated,  and  subject  to  Section  15.2  ,  below,  all  Casualty  Proceeds recovered  on  account  of  any  damage  or  destruction  to  all  or  any  part  of  the  Leased  Property  by  fire  or  other  casualty  shall  be paid  to  Lessee. 15.2  Restoration  Conditions  .  Lessee’s  repair,  restoration  or  replacement  of  the  Leased  Property  shall  be  subject  to  the following  requirements: (a)  Payment  of  Casualty  Proceeds  to  Lessee  .  All  Casualty  Proceeds  shall  be  paid  to  Lessee. (b)  Repair  Costs  in  Excess  of  $3,000,000  .  If  the  cost  of  such  repairs,  restoration  or  replacement  as  a  result  of  a  casualty exceeds  $3,000,000  with  respect  to  such  casualty,  (A)  Lessee  shall  provide  to  Lessor  and  Lessor  Lender  (or  the  agent  for  such Lessor  Lender  if  requested  in  writing  by  Lessor)  such  reasonable  documentation  related  to  such  repairs,  restoration  or replacement  as  Lessor  and  Lessor  Lender  (or  the  agent  for  such  Lessor  Lender  if  requested  in  writing  by  Lessor)  may reasonably  request  to  confirm  that  such  repairs,  restoration  or  replacements  have  been  made  in  the  manner  required  by  this Lease,  (B)  if  such  repairs,  restoration  or  replacement  have  not  been  completed  within  one  hundred  eighty  (180)  days following  the  date  of  such  casualty,  Lessee  shall  pay  to  the  Lessor  the  amount  by  which  the  total  cost  of  such  repairs, restoration  or  replacement  exceeds  $3,000,000,  reduced  by  repairs,  restoration  and  replacement  costs  in  excess  of  $3,000,000 completed  and  paid  as  of  such  date,  which  amounts  shall  be  held  and  disbursed  by  such  Lessor  Lender  to  Lessee  as  such repairs,  restoration  or  replacements  progress,  and  (C)  Lessor  and  Lessor  Lender  (or  the  agent  for  such  Lessor  Lender  if requested  in  writing  by  Lessor)  will  have  the  right  to  inspect  the  Leased  Property  during  normal  business  hours  and  after  prior reasonable  written  notice,  with  Lessee’s  representative  present  and  upon  the  condition  that  Lessor  and  Lessor  Lender  (or  the agent  for  such  Lessor  Lender  if  requested  in  writing  by  Lessor)  comply  with  Lessee’s  rules  and  regulations,  including  safety, (I)  to  inspect  the  damage,  and  (II)  to  confirm  that  such  repairs,  restoration  or  replacements  are  being  or  have  been  made  in  the manner  required  by  this  Lease;;  provided  that  no  such  inspection  shall  interfere  with  the  normal  operation  of  the  Leased Property  or  the  business  of  Lessee  or  its  Affiliates. 27 ARTICLE  XVI. CONDEMNATION 16.1  Condemnation  Damages  and  Awards  .  Except  to  the  extent  Lessor  may  be  required  to  make  the  same  available  to Lessee  under  this  Article  XVI  and  as  otherwise  set  forth  in  this  Article  XVI  ,  Lessee  assigns  to  Lessor  any  and  all  rights  it  may have  to  any  Taking  Proceeds  and  agrees  to  execute  such  instruments  as  may  be  requested  by  Lessor  to  evidence  the assignment  of  such  Taking  Proceeds  to  Lessor.  Notwithstanding  the  foregoing,  Lessee  may  make  a  separate  claim  for  any damages  payable  for  any  of  the  Lessee  Property,  any  so-­called  special  damages  to  Lessee  for  interruption  to  Lessee’s operations  or  otherwise,  any  damages  for  relocation,  or  any  damages  for  Lessee’s  leasehold  interest  (collectively,  the  “  Lessee Condemnation  Proceeds  ”),  and  none  of  such  Lessee  Condemnation  Proceeds  shall  constitute  Taking  Proceeds. Notwithstanding  any  Taking,  this  Lease  shall  remain  in  effect,  and  the  rights  and  obligations  of  Lessor  and  Lessee  shall remain  in  effect  without  abatement.  Lessor  and  Lessee  shall  cooperate  in  good  faith  to  maximize  the  Taking  Proceeds consistent  with  the  terms  of  this  Lease. 16.2  General  Taking  Provisions  .  If  all  or  any  part  of  the  Leased  Property  is  subject  to  a  Taking  during  the  Term,  then Lessee  shall  give  prompt  notice  of  such  event  to  Lessor  and  except  as  otherwise  provided  in  this  Article,  Lessee  shall,  at Lessee’s  cost  and  expense,  promptly  thereafter  repair,  restore  or  replace  the  Leased  Property,  or  any  such  part  thereof,  to substantially  the  same  condition  it  was  in  immediately  prior  to  the  Taking  (subject  to  any  changes  to  all  or  any  such  part  of the  Leased  Property  that  Lessee  intends  to  make  to  the  extent  permitted  under  this  Lease).  This  Lease  shall  remain  in  effect following  such  Taking,  the  rights  and  obligations  of  Lessor  and  Lessee  shall  remain  in  effect  without  abatement,  all  Base  Rent shall  continue  unabated,  and  all  Lessee  Condemnation  Proceeds  and,  subject  to  Section  16.3  ,  below,  Taking  Proceeds recovered  on  account  of  such  Taking  shall  be  paid  to  Lessee. 16.3  Restoration  Conditions  .  Lessee  shall  repair,  restore  or  replace  the  Leased  Property  damaged  as  a  result  of  such Taking,  as  and  to  the  extent  required  by  Section  16.2  and  the  Taking  Proceeds  shall  be  paid  as  follows: (a)  Payment  of  Taking  Proceeds  to  Lessee  .  All  Taking  Proceeds  shall  be  paid  to  Lessee. (b)  Repair  Costs  in  Excess  of  $3,000,000  .  If  the  cost  of  repairs,  restoration  or  replacement  of  the  Taking  exceeds $3,000,000  with  respect  to  such  Taking,  (A)  Lessee  shall  provide  to  Lessor  and  Lessor  Lender  (or  the  agent  for  such  Lessor Lender  if  requested  in  writing  by  Lessor)  such  reasonable  documentation  related  to  such  repairs,  restoration  or  replacement  as Lessor  and  Lessor  Lender  (or  the  agent  for  such  Lessor  Lender  if  requested  in  writing  by  Lessor)  may  reasonably  request  to confirm  that  such  repairs,  restoration  or  replacements  have  been  made  in  the  manner  required  by  this  Lease,  (B)  if  such  repairs, restoration  or  replacement  have  not  been  completed  within  one  hundred  eighty  (180)  days  following  the  date  of  such  Taking, Lessee  shall  pay  to  the  Lessor  the  amount  by  which  the  total  cost  of  such  repairs,  restoration  or  replacement  exceeds $3,000,000,  reduced  by  repairs,  restoration  and  replacement  costs  in  excess  of  $3,000,000  completed  and  paid  as  of  such  date, which  amounts  shall  be  held  and  disbursed  by  such  Lessor  Lender  to  Lessee  as  such  repairs,  restoration  or  replacements progress,  and  (C)  Lessor  and  Lessor  Lender  (or  the  agent  for  such  Lessor  Lender  if  requested  in  writing  by  Lessor)  will  have the  right  to  inspect  the  Leased  Property  during  normal  business  hours  and  after  prior  reasonable  written  notice,  with  Lessee’s representative  present  and  upon  the  condition  that  Lessor  and  Lessor  Lender  (or  the  agent  for  such  Lessor  Lender  if  requested in  writing  by  Lessor)  comply  with  Lessee’s  rules  and  regulations,  including  safety,  (I)  to  inspect  the  damage,  and  (II)  to confirm  that  such  repairs,  restoration  or 28 replacements  are  being  or  have  been  made  in  the  manner  required  by  this  Lease;;  provided  that  no  such  inspection  shall interfere  with  the  normal  operation  of  the  Leased  Property  or  the  business  of  Lessee  or  its  Affiliates. (c)  Payment  of  Taking  Proceeds  .  If  not  already  paid  to  Lessor  or  Lessor’s  Lender  as  required  by  Section  16.3(b  ),  above, upon  completion  of  the  repairs,  restoration  and  replacement  of  the  Leased  Property  damaged  as  a  result  of  a  Taking,  Lessee shall  pay  to  Lessor  the  amount  by  which  such  Taking  Proceeds  exceed  the  cost  of  repairs,  restoration  and  replacement  of  the Leased  Property  by  Lessee. ARTICLE  XVII. LIMITS  ON  TRANSFERS,  ASSIGNMENTS,  LEASES  AND  LIENS 17.1  Assignment  and  Subletting  by  Lessee  . (a)  Lease  Assignments  .  At  any  time  and  from  time-­to-­time,  and  without  any  further  consent  from  or  approval  by  Lessor, Lessee  may  cause  or  permit  to  occur  a  Permitted  Lease  Assignment.  For  purposes  hereof,  the  term  “  Permitted  Lease Assignment  ”  means  either  (i)  a  Lease  Assignment  for  which  (A)  the  successor  Lessee  is  a  Permitted  Lessee  Transferee,  and (B)  within  ten  (10)  Business  Days  after  the  date  of  such  Lease  Assignment,  Lessee  provides  to  Lessor  a  copy  of  the  written assignment  of  lease  or  similar  agreement,  including  an  assumption  by  the  successor  Lessee  of  the  obligations  of  Lessee  under this  Lease  arising  from  and  after  the  date  of  such  Lease  Assignment,  (ii)  a  Lease  Assignment  by  foreclosure  or  deed  in  lieu  of foreclosure  or  (iii)  any  other  Lease  Assignment  approved  in  writing  by  Lessor.  Lessee  shall  not  enter  into  or  otherwise  become subject  to  any  Lease  Assignment  other  than  a  Permitted  Lease  Assignment,  and  any  Lease  Assignment  other  than  a  Permitted Lease  Assignment  shall  be  null  and  void  ab  initio  . (b)  Subleases  .  At  any  time  and  from  time-­to-­time,  and  without  any  consent  from  or  approval  by  Lessor,  Lessee  may  enter into  a  Permitted  Sublease.  For  purposes  hereof,  the  term  “  Permitted  Sublease  ”  means  a  Sublease  which  is  either  (i)  a  Sublease with  a  Permitted  Lessee  Transferee  so  long  as  within  ten  (10)  Business  Days  after  Lessee’s  entering  into  any  such  Sublease with  a  Permitted  Lessee  Transferee,  Lessee  shall  provide  Lessor  with  a  copy  of  the  executed  sublease  agreement,  or  (ii)  any other  Sublease  approved  in  writing  by  Lessor.  Lessee  shall  not  enter  into  any  Sublease  other  than  a  Permitted  Sublease,  and any  Sublease  other  than  a  Permitted  Sublease  shall  be  null  and  void  ab  initio  .  Renewals  of  any  Permitted  Sublease  shall  be deemed  to  be  a  new  Sublease  for  purposes  of  this  Section  17.1(b  )  and  shall  not  constitute  a  Permitted  Sublease  unless  such renewal  otherwise  qualifies  as  a  Permitted  Sublease  at  the  time  of  such  renewal. (c)  Lessor  Consent  to  Certain  Proposed  Permitted  Lessee  Transferees  . No  Lessor  Consent  Required  .  No  Lessor  consent  shall  be  required  with  respect  to  any  Permitted  Lessee  Transferee  as described  in  the  definition  of  the  term  “Permitted  Lessee  Transferee”. 17.2  Cure  Rights  Upon  Assignee  Default  .  Notwithstanding  anything  to  the  contrary  set  forth  in  Article  XXIII  of  this Lease  or  otherwise,  upon  the  occurrence  of  an  event  or  circumstance  which  would,  with  the  giving  of  notice  or  passage  of time,  or  both,  constitute  a  Lessee  Event  of  Default,  Lessor  shall  not  declare  a  Lessee  Event  of  Default  or  exercise  any  rights  or remedies  on  account  of  such  Lessee  Event  of  Default  unless  and  until  Lessor  gives  notice  of  such  default  to  such  prior Lessee(s)  and  their  respective  Lessee  Guarantors  and  the  opportunity  to  cure  such  default,  within  the  period  of  time  permitted under  Section  23.1  of  this  Lease  for  curing  such  event  or  circumstance,  but  with  such  cure  period  as  to  such  prior  Lessee  and such  prior  Lessee  Guarantors  beginning  only  upon  receipt  by  such  prior  Lessee(s)  or  its  Lessee  Guarantors,  as  applicable,  of such  notice. 29 ARTICLE  XVIII. LESSEE’S  SURRENDER  OF  LEASED  PROPERTY 18.1  Surrender  .  Upon  the  expiration  of  the  Term  or  the  earlier  termination  of  this  Lease,  Lessee  shall  surrender  to  Lessor in  Good  Condition  and  Repair  the  Leased  Property  and  any  Permitted  Capital  Improvements  that  become  Lessor’s  property upon  termination  of  this  Lease  as  provided  in  Section  10.1(e  )  hereof,  in  all  such  cases  subject  to  reasonable  and  ordinary  wear and  tear.  Any  removal  of  all  or  any  of  the  Lessee  Property  by  Lessee  shall  be  done  in  material  compliance  with  Environmental Laws  and  other  Applicable  Legal  Requirements,  including  Lessee’s  obligation  to  file  all  reports  and  documentation  required to  be  filed  with  any  Governmental  Authority  in  connection  with  the  removal  of  Lessee  Property,  and  in  accordance  with  the requirements  of  Article  X  hereof.  Lessee  shall  repair  any  material  damage  to  the  Leased  Property  caused  by  the  removal  of Lessee  Property.  After  the  expiration  of  the  Term  or  the  earlier  termination  of  this  Lease,  neither  Lessee  nor  Lessor  shall  have any  rights,  liabilities  or  obligations  hereunder  (except  for  any  that  survive  the  expiration  or  any  earlier  termination  of  this Lease  including,  without  limitation,  the  terms  and  provisions  of  Sections  25.2  ,  and  25.3  if  and  to  the  extent  applicable). ARTICLE  XIX. LESSOR  ASSIGNMENT  OF  LEASE 19.1  Assignment  of  Lease  .  Lessor  may  Transfer  all  or  any  portion  of  its  right,  title  or  interest  under  this  Lease  without the  consent  of  the  Lessee,  except  that  an  assignment  to  any  company  engaged  in  the  terminalling,  storage,  throughput  and/or transloading  of  crude  oil  and  petroleum  products  shall  require  Lessee’s  consent  unless  (a)  a  Lessee  Event  of  Default  has occurred,  (b)  Lessee  has  delivered  a  termination  notice  to  Lessor  under  Section  25.5  ,  or  (c)  Lessee  has  failed  to  exercise  its Renewal  Option  prior  to  the  date  that  is  twenty-­one  (21)  months  before  the  Current  Lease  Term  End.  Upon  any  such  Transfer Lessor  shall  be  released  from  all  future  liability  in  or  arising  out  of  this  Lease  to  the  extent  of  its  assignment. ARTICLE  XX. LEASE  SUBORDINATION 20.1  No  Subordination  of  Lessor’s  Fee  Simple  Estate;;  Fee  Mortgages  .  Lessor  shall  not  be  required  to  subordinate  its interest  and  estate  in  the  Leased  Property  to  any  Leasehold  Mortgage,  or  enter  into  or  join  in  the  execution  of  any  Leasehold Mortgage,  but  Lessor  shall  provide  Leasehold  Mortgagees  the  protections  described  in  this  Article  XX.  Lessor  is  entitled  to encumber,  from  time  to  time,  without  the  consent  or  approval  of  Lessee,  its  interest  in  the  Land  and  Lessor’s  interest  in  this Lease  with  such  Mortgages  as  Lessor,  in  its  sole  discretion,  deems  appropriate  (any  such  Mortgage  by  Lessor  being  hereinafter referred  to  as  a  “  Fee  Mortgage  ”);;  provided,  however,  that  any  Fee  Mortgage  shall  be  subject  to  this  Lease,  the  rights  of Lessee  hereunder,  the  attornment  of  any  successor  Lessee  to  Lessor,  and  the  rights  of  any  Leasehold  Mortgagee  arising  under or  by  virtue  of  this  Lease  (whether  the  Leasehold  Mortgage  was  created  before  or  after  the  Fee  Mortgage),  including  the  right, title  and  estate  of  any  Leasehold  Mortgagee  under  any  new  lease  entered  into  pursuant  to  Section  20.3.  Lessee  shall  have  the right  to  request  and,  Lessor  shall  use  its  commercially  reasonable  efforts  to  obtain,  a  non-­disturbance  agreement  from  the holder  of  such  Fee  Mortgage,  in  favor  of  Lessee  and  any  Leasehold  Mortgagee,  confirming  that  the  provisions  of  this  Lease, including  the  provisions  of 30 this  Section  20.1,  will  be  honored  by  and  binding  upon  any  holder  of  a  Fee  Mortgagee,  and  further  containing  such  other terms  and  conditions  as  such  Leasehold  Mortgagee  shall  reasonably  request,  including  Lessor’s  acceptance  of  Leasehold Mortgagee  as  lessee  in  the  event  Leasehold  Mortgagee  succeeds  to  the  interest  of  Lessee  hereunder.  At  the  request  of  Lessor, Lessee  agrees  to  cause  the  holder  of  each  Fee  Mortgage  to  be  named  as  an  additional  insured  to  any  and  all  insurance  policies required  to  be  carried  by  Lessee  under  Article  XIV.  At  the  request  of  Lessor,  and  without  cost  to  Lessee,  Lessee  agrees  to  make a  good  faith  effort  to  cause  any  Leasehold  Mortgagee  to  agree  to  disburse  any  insurance  proceeds  which  would  otherwise  be payable  to  Lessor  hereunder  to  the  holder  of  any  Fee  Mortgage,  subject  to  Lessor  directing  the  Leasehold  Mortgagee  to  do  so in  writing,  which  written  request  shall  identify  the  holder  of  the  Fee  Mortgage  and  provide  an  address  for  delivery  of  such proceeds. 20.2  Leasehold  Mortgages  .  Subject  to  the  requirements  of  this  Article  XX,  Lessee  may  assign  or  encumber  Lessee’s interest  in  the  Leasehold  as  security  for  any  debt  or  obligation  of  Lessee  [to  an  Institutional  Investor]  by  a  Leasehold Mortgage  containing  such  terms  and  provisions  as  Lessee  may,  in  its  sole  discretion,  deem  fit  and  proper;;  provided,  however, that  all  right,  title  and  interest  acquired  by  such  Leasehold  Mortgagee  under  such  Leasehold  Mortgage  from  Lessee  shall  be subject  to  this  Lease  and  to  the  rights  and  interests  of  Lessor  herein  and  to  the  rights  of  any  holder  of  a  Fee  Mortgage  arising under  or  by  virtue  of  this  Lease.  Lessor  shall  have  the  right  to  request  and,  Lessee  shall  use  its  commercially  reasonable  efforts to  obtain,  a  non-­disturbance  agreement  from  any  Leasehold  Mortgagee,  in  favor  of  Lessor  and  any  holder  of  a  Fee  Mortgage, confirming  that  the  provisions  of  this  Lease,  including  the  provisions  of  this  Section  20.2,  will  be  honored  by  and  binding upon  any  Leasehold  Mortgagee,  and  further  containing  such  other  terms  and  conditions  as  the  holder  of  a  Fee  Mortgage  shall reasonably  request,  including  attornment  of  Lessee  to  the  holder  of  the  Fee  Mortgage  in  the  event  the  holder  of  the  Fee Mortgage  succeeds  to  the  interest  of  Lessor  hereunder. 20.3  Protection  of  Leasehold  Mortgagees  . (a)  New  Lease  . (i)  In  the  event  that  this  Lease  is  terminated  as  a  result  of  any  default  by  Lessee  hereunder  or  any  other  cause (including,  without  limitation,  a  rejection  of  this  Lease  by  Lessee’s  trustee  in  bankruptcy  pursuant  to  11  U.S.C.  §365  or  any equivalent  provision  of  law),  Lessor  shall  provide  each  Leasehold  Mortgagee  with  Notice  that  this  Lease  has  been  terminated, together  with  a  statement  of  all  sums  which  would  at  that  time  be  due  under  this  Lease  but  for  such  termination,  and  of  all other  defaults,  if  any,  then  known  to  Lessor.  Lessor  agrees,  at  the  option  of  the  Leasehold  Mortgagee,  to  immediately  enter into  a  new  lease  (hereinafter  referred  to  as  the  “  New  Lease  ”)  of  the  Leased  Property  with  such  Leasehold  Mortgagee  or  its designee  for  the  remainder  of  the  term  of  this  Lease  with  the  same  covenants,  conditions  and  agreements  (including,  without limitation,  any  and  all  options  to  extend  or  renew  the  term  of  this  Lease,  but  excluding  any  requirements  which  have  been satisfied  by  Lessee  prior  to  termination)  as  are  contained  herein,  subject  only  to  (A)  the  conditions  of  title  as  the  Leased Property  is  subject  to  on  the  date  of  the  execution  of  the  New  Lease  and  which  do  not  arise  from  a  voluntary  breach  by  Lessor of  this  Lease,  and  (B)  the  right,  if  any,  of  any  parties  under  Subleases.  Thereafter,  the  lessee  under  the  New  Lease  shall  have the  same  right,  title  and  interest  in  and  to  the  Leased  Property  as  Lessee  had  under  this  Lease.  The  obligations  of  Lessor  to enter  into  a  New  Lease  shall  be  subject  to  the  following  conditions: (A)  Such  Leasehold  Mortgagee  or  its  designee  shall  pay  or  cause  to  be  paid  to  Lessor  at  the  time  of  the execution  and  delivery  of  such  New  Lease  any  and  all  sums  which  would  at  the  time  of  execution  and  delivery  thereof  be  due pursuant  to  this  Lease  but  for  such  termination  and,  in  addition  thereto,  all  expenses,  including  reasonable  attorney’s  fees, which  Lessor  shall  have  incurred  by 31 reason  of  Lessee’s  default  and  such  termination  and  the  execution  and  delivery  of  the  New  Lease  and  which  have  not otherwise  been  received  by  Lessor  from  Lessee  or  any  other  party  in  interest  under  Lessee;;  and (B)  Such  Leasehold  Mortgagee  or  its  designees  shall  agree  to  cure  as  soon  as  reasonably  possible  any  defaults of  Lessee  under  the  terminated  Lease  of  which  Lessor  shall  have  notified  Leasehold  Mortgagee  other  than  those  defaults which,  by  their  nature,  are  not  susceptible  to  cure  by  a  Leasehold  Mortgagee  and  which,  if  not  cured,  will  not  materially  harm or  prejudice  Lessor  or  its  rights  under  this  Lease  or  in  the  Leased  Property. (ii)  The  new  lessee  under  any  such  New  Lease  shall  be  liable  to  perform  the  obligations  imposed  on  the  lessee  by such  New  Lease  only  during  the  period  such  person  has  an  ownership  of  the  leasehold  estate  created  by  such  New  Lease. (iii)  The  new  lessee  under  such  New  Lease  shall,  upon  entering  into  such  New  Lease,  acquire  all  of  the  right,  title and  interest  of  Lessee  in  and  to  any  and  all  Subleases  and  upon  the  request  of  such  new  lessee,  Lessee  shall  execute, acknowledge  and  deliver  to  such  new  lessee  an  assignment  in  recordable  form  evidencing  such  conveyance. (b)  Subordination  of  Lessor’s  Lien  .  Lessor  does  hereby  agree  not  to  foreclose  any  liens  or  claims  of  lien  against  Lessee, the  Leased  Property,  the  Permitted  Capital  Improvements  and  all  other  trade  fixtures  and  equipment  of  Lessee  located  on  or  in the  Leased  Property  created  pursuant  to  Oregon  Revised  Statutes  Section  87.162  until  such  time  as  Lessor  shall  have  afforded any  Leasehold  Mortgagee  the  opportunities  to  cure  as  set  forth  in  this  Article  XX  and  neither  Lessee  nor  such  Leasehold Mortgagee  has  cured  the  same  within  the  time  limits  afforded  herein. ARTICLE  XXI. INDEMNIFICATION 21.1  Indemnification  by  Lessee  . (a)  Lessee’s  Indemnification  Obligations  .  Subject  to  the  waiver  of  subrogation  provisions  in  Section  14.4  ,  the remainder  of  this  Article  XXI  ,  and  Section  26.3  ,  and  except  for  Losses  for  which  Lessor  is  responsible  pursuant  to Section  21.2  ,  Lessee,  to  the  fullest  extent  permissible  by  Applicable  Legal  Requirements,  agrees  to  indemnify,  hold  harmless and  defend  Lessor  Indemnified  Parties  and  Lessor  Lender  (in  Lessor  Lender’s  capacity  as  such)  from  and  against  any  and  all Losses  arising  out  of  or  based  upon,  in  whole  or  in  part  (i)  a  Lease  Assignment  or  Sublease  made  by  Lessee  in  violation  of  this Lease,  (ii)  a  Lessee  Event  of  Default,  (iii)  any  negligent  acts  or  omissions  of  Lessee  or  any  other  Lessee  Party  with  respect  to this  Lease  or  the  Leased  Property,  (iv)  the  fraud,  gross  negligence  or  willful  misconduct  of  Lessee  or  any  Lessee  Party  in connection  with  the  Leased  Property  or  the  transactions  contemplated  by  this  Lease,  (v)  the  operation,  possession,  use, non-­use,  maintenance,  modification,  alteration,  construction,  reconstruction,  restoration,  condition,  design  or  replacement  of the  Leased  Property  (or  any  portion  thereof)  by  Lessee  or  any  other  Lessee  Party,  or  (vi)  the  business  and  activities  of  Lessee or  of  any  other  Person  permitted  on  or  about  the  Leased  Property  by  Lessee  (whether  as  an  invitee,  sublessee,  licensee  or otherwise). (b)  Environmental  Matters  Not  Included  .  For  the  avoidance  of  doubt,  this  Section  21.1  is  not  intended  to  provide  any indemnification  to  Lessor  or  any  Lessor  Indemnified  Party  for  any  matters  related  to  Environmental  Laws  or  Hazardous Materials  or  any  other  matters  covered  by  Article  XXII  . 32 21.2  Release  and  Indemnification  by  Lessor  .  Subject  to  the  waiver  of  subrogation  provisions  in  Section  14.3  ,  and except  for  Losses  for  which  Lessee  is  responsible  pursuant  to  Section  21.1  ,  and  subject  to  the  provisions  in  Article  XIV  and Section  26.3  ,  Lessor,  to  the  fullest  extent  permissible  by  Applicable  Legal  Requirements: (a)  Release  of  Lessee  and  Lessee  Indemnified  Parties  .  Releases  Lessee  and  each  other  Lessee  Indemnified  Party  from any  Losses  from  any  source  arising  out  of  or  based  upon,  in  whole  or  in  part  (i)  any  acts  or  omissions  by  any  Lessor  Party  or Lessor  Indemnified  Party,  (ii)  any  acts  or  omissions  of  any  Lessor  Party,  Lessor  Indemnified  Party  or  Lessor  Lender  with respect  to  this  Lease,  (iii)  any  Lessor  Event  of  Default,  or  (iv)  the  fraud,  gross  negligence  or  willful  misconduct  of  any  Lessor Party  or  Lessor  Indemnified  Party  in  connection  with  the  Leased  Property  or  the  transactions  contemplated  by  this  Lease;;  and (b)  Lessor  Indemnification  of  Lessee  and  Lessee  Indemnified  Parties  .  Agrees  to  indemnify,  hold  harmless  and  defend Lessee  and  each  other  Lessee  Indemnified  Party  from  and  against  any  and  all  Losses  arising  out  of  or  based  upon,  in  whole  or in  part  (i)  any  acts  or  omissions  by  any  Lessor  Party  or  Lessor  Indemnified  Party  in  violation  of  the  terms  of  this  Lease,  (ii)  any Lessor  Event  of  Default,  or  (iii)  the  fraud,  gross  negligence  or  willful  misconduct  of  any  Lessor  Party  or  Lessor  Indemnified Party  in  connection  with  the  Leased  Property;; Provided,  however,  that  in  the  case  of  subsections  (a  )  and  (  b  )  above,  to  the  extent  and  in  the  proportion  such  Losses  also arise  out  of  or  are  based  upon  (A)  any  breach  of  this  Lease  by  Lessee,  (B)  the  fraud,  gross  negligence  or  willful  misconduct  of Lessee  or  any  other  Lessee  Party  with  respect  to  the  Leased  Property,  (C)  Taxes  for  which  Lessee  is  responsible  pursuant  to this  Lease,  or  (D)  breach  by  Lessee  of  any  representations  made  by  it  in  this  Lease,  then  Lessor’s  release  and  indemnification under  this  subsection  (b  )  shall  not  apply. 21.3  Concurrent  Negligence  .  Notwithstanding  the  provisions  of  Section  21.1  and  Section  21.2,  in  the  event  of  the concurrent  negligence  or  intentional  misconduct  of  Lessee,  any  other  Lessee  Party  or  any  Lessee  Indemnified  Party  on  the  one hand  and  the  concurrent  negligence  or  intentional  misconduct  of  Lessor,  any  other  Lessor  Party  or  Lessor  Indemnified  Party, on  the  other  hand,  a  party’s  (the  “  Indemnifying  Party  ”)  obligation  to  indemnify  the  other  as  set  forth  in  this  Article  XXI  shall be  limited  to  the  extent  of  the  Indemnifying  Party’s  negligence  and/or  intentional  misconduct  (and  that  of  the  Lessee Indemnified  Parties  (if  Lessee  is  the  Indemnifying  Party)  or  the  Lessor  Indemnified  Parties  (if  Lessor  is  the  Indemnifying Party)),  including  the  Indemnifying  Party’s  proportionate  share  of  reasonable  costs,  attorneys’  fees,  and  expenses  incurred  in connection  with  any  claim,  action,  or  proceeding  brought  with  respect  to  such  injury  or  damage. 21.4  Survival  .  The  obligations  of  Lessee  and  Lessor  under  this  Article  XXI  shall  survive  the  expiration  or  earlier termination  of  this  Lease. 21.5  Claims  Procedure  .  In  the  case  of  any  Losses  asserted  by  an  Indemnified  Party  under  this  Article  XXI  ,  such Indemnified  Party  shall  give  prompt  notice  thereof  to  the  Indemnifying  Party  and  in  any  event  within  no  less  than  60  days after  the  Indemnified  Party  receives  notice  of  such  assertion;;  provided  that  failure  to  so  notify  the  Indemnifying  Party  shall not  reduce  the  Indemnifying  Party’s  obligations  to  indemnify  any  Indemnified  Party  hereunder  except  to  the  extent  such failure  adversely  affects  the  Indemnifying  Party’s  rights,  or  materially  compromises  such  Indemnifying  Party’s  ability,  to defend  such  Losses  or  results  in 33 additional  liability  on  such  Indemnifying  Party’s  part.  The  Indemnifying  Party  shall  be  entitled,  at  its  expense,  acting  through counsel  selected  by  it  (and  reasonably  satisfactory  to  such  Indemnified  Party),  to  participate  in  or  to  assume  and  control  (if  it promptly  so  elects  upon  notice  of  the  Losses),  the  negotiation,  litigation  and/or  settlement  of  any  such  Losses.  Such Indemnified  Party  may  (but  shall  not  be  obligated  to)  participate  at  its  own  expense  and  with  its  own  counsel  in  any proceeding  conducted  by  the  Indemnifying  Party  in  accordance  with  the  foregoing,  in  which  case  the  Indemnifying  Party shall  keep  such  Indemnified  Party  and  its  counsel  fully  informed  of  all  proceedings  and  filings.  Notwithstanding  the foregoing,  but  subject  to  Article  XI  and  the  right  of  Lessee  to  pursue  Tax  Challenges  and  Permitted  Lessee  Contests  and  the right  of  Lessor  to  pursue  Permitted  Lessor  Contests,  the  Indemnifying  Party  shall  not  be  entitled  to  assume  and  control  the defense  of  any  Losses  if  (a)  Lessee  is  the  Indemnifying  Party,  a  Lessee  Event  of  Default  has  occurred  and  is  continuing,  or,  if Lessor  is  the  Indemnifying  Party,  a  Lessor  Event  of  Default  has  occurred  and  is  continuing,  (b)  the  proceeding  involves possible  imposition  of  any  criminal  liability  or  penalty  or  unindemnified  civil  penalty  on  the  Indemnified  Party,  or  (c)  the proceeding  involves  the  granting  of  injunctive  relief  against  the  Indemnified  Party  not  related  to  this  Lease. ARTICLE  XXII. ENVIRONMENTAL  LAWS 22.1  Environmental  Undertakings  .  Lessee’s  operations  on  the  Leased  Property  from  and  after  the  Effective  Date  shall comply  with  Environmental  Laws  in  all  material  respects.  Lessor  will  conduct  no  operations  on  the  Leased  Property.  If  either party  discovers  or  is  informed  of  the  existence  of  a  material  violation  of  Environmental  Laws  with  respect  to  the  Leased Property,  or  receipt  of  any  notices  alleging  non-­ordinary  course  of  business  liabilities  under  Environmental  Laws  with  respect to  the  Leased  Property,  that  party  shall  give  prompt  notice  to  the  other  party  of  such  event. 22.2  Environmental  Covenants  . (a)  Lessee’s  Obligations  for  Certain  Corrective  Actions  .  Lessee  shall  be  responsible  for  performing  Corrective  Action required  under  Environmental  Law  to  the  extent  arising  from  Lessee  Environmental  Liabilities,  such  Corrective  Actions  to  be performed  in  material  compliance  with  Environmental  Laws.  Lessee’s  obligations  to  conduct  Corrective  Action  shall  be limited  to  those  activities  designed  to  achieve  the  least  stringent  remediation  permitted  under  Environmental  Laws  for  a property  in  similar  use  as  the  property  requiring  Corrective  Action. 22.3  Lessee  Environmental  Indemnity  .  Lessee  shall,  at  no  cost  to  Lessor,  protect,  defend,  indemnify,  release  and  hold harmless  each  of  the  Lessor  Indemnified  Parties  and  each  Lessor  Lender  for,  from  and  against  any  and  all  Losses  (including engineers’  fees,  environmental  consultants’  fees,  and  costs  of  investigation  (including  sampling,  testing,  and  analysis  of  soil, water,  air,  building  materials  and  other  materials  and  substances  whether  solid,  liquid  or  gas))  imposed  upon  or  incurred  by  or asserted  against  any  Lessor  Indemnified  Parties,  but  only  to  the  extent  arising  out  of  any  one  or  more  of  the  following: (a)  Lessee  Environmental  Liabilities;;  or (b)  Lessee  breach  of  its  covenants  in  this  Article  XXII  (including  Lessee’s  obligation  to  take  Corrective  Action  under Section  22.2(a))  . 22.4  Claims  Procedure  .  In  the  case  of  any  Losses  asserted  by  an  Indemnified  Party  under  this  Article  XXII, 34 such  Indemnified  Party  shall  give  prompt  notice  thereof  to  the  Indemnifying  Party  and  in  any  event  within  no  less  than  60 days  after  the  Indemnified  Party  receives  notice  of  such  assertion;;  provided  that  failure  to  so  notify  the  Indemnifying  Party shall  not  reduce  the  Indemnifying  Party’s  obligations  to  indemnify  any  Indemnified  Party  hereunder  except  to  the  extent  such failure  adversely  affects  the  Indemnifying  Party’s  rights,  or  materially  compromises  such  Indemnifying  Party’s  ability,  to defend  such  Losses  or  results  in  additional  liability  on  such  Indemnifying  Party’s  part.  The  Indemnifying  Party  shall  be entitled,  at  its  expense,  acting  through  counsel  selected  by  it  (and  reasonably  satisfactory  to  such  Indemnified  Party),  to participate  in  or  to  assume  and  control  (if  it  promptly  so  elects  upon  notice  of  the  Losses),  the  negotiation,  litigation  and/or settlement  of  any  such  Losses.  Such  Indemnified  Party  may  (but  shall  not  be  obligated  to)  participate  at  its  own  expense  and with  its  own  counsel  in  any  proceeding  conducted  by  the  Indemnifying  Party  in  accordance  with  the  foregoing,  in  which  case the  Indemnifying  Party  shall  keep  such  Indemnified  Party  and  its  counsel  fully  informed  of  all  proceedings  and  filings. Notwithstanding  the  foregoing,  but  subject  to  Article  XI  and  Lessee’s  right  to  pursue  Tax  Challenges  and  Permitted  Lessee Contests  and  Lessor’s  right  to  pursue  Permitted  Lessor  Contests,  the  Indemnifying  Party  shall  not  be  entitled  to  assume  and control  the  defense  of  any  Losses  if  (a)  Lessee  is  the  Indemnifying  Party,  Lessee  Event  of  Default  has  occurred  and  is continuing,  or,  if  Lessor  is  the  Indemnifying  Party,  a  Lessor  Event  of  Default  has  occurred  and  is  continuing,  (b)  the proceeding  involves  possible  imposition  of  any  criminal  liability  or  penalty  or  unindemnified  civil  penalty  on  the Indemnified  Party,  or  (c)  the  proceeding  involves  the  granting  of  injunctive  relief  against  the  Indemnified  Party  not  related  to this  Lease. 22.5  Survival  .  It  is  expressly  understood  and  agreed  that  Lessee’s  and  Lessor’s  obligations  under  this  Article  XXII  shall survive  the  expiration  or  earlier  termination  of  this  Lease. 22.6  Lessee’s  Environmental  Obligations  .  Notwithstanding  anything  herein  stated  to  the  contrary,  Lessee’s obligations  under  this  Article  XXII  are  reduced  by  any  cash  received  by  Lessor,  and  any  quantifiable  liability  of  Lessor extinguished,  pursuant  to  any  contractual  indemnity  arrangements,  plus  any  cash  received  by  Lessor,  and  any  quantifiable liability  of  Lessor  extinguished,  pursuant  to  the  insurance  policy  described  in  Section  14.2  .  Further,  Lessor  shall  be responsible  for  the  first  $200,000  in  the  aggregate  of  liability  hereunder  during  the  term  of  this  Lease  that  is  not  covered  by such  contractual  indemnity  arrangements  and  insurance  policy.  If  Lessor  receives  Notice  from  the  operator  of  the  Terminal System  or  a  third  party  regarding  any  environmental  claim,  Lessor  shall  timely  make  a  claim  to  the  indemnifying  party  under any  such  contractual  indemnity  arrangement,  and  shall  deliver  copies  of  all  such  notices  and  claims  to  Lessee.  Lessor  shall include  Lessee  in  all  discussions  and  negotiations  with  any  parties  involved  in  such  contractual  indemnity  arrangements. ARTICLE  XXIII. DEFAULTS  AND  REMEDIES 23.1  Lessee  Events  of  Default  .  Each  of  the  following  shall  be  an  event  of  default  under  this  Lease  (each,  a  “  Lessee Event  of  Default  ”): (a)  Lessee  fails  to  make  any  payment  of  Base  Rent  or  Variable  Rent,  as  the  case  may  be,  when  due  and  such  failure continues  for  three  (3)  Business  Days  after  Lessee’s  receipt  of  written  notice  from  Lessor  of  such  failure;;  or (b)  Lessee  fails  to  make  any  Additional  Rent  (other  than  a  failure  to  pay  Base  Rent  or  Variable  Rent  and  except  for  such payments  as  Lessee  is  contesting  in  good  faith  or  pursuant  to  a  Tax  Challenge  or  a  Permitted  Lessee  Contest)  and  such  failure continues  for  seven  (7)  Business  Days  after  Lessee’s  receipt  of  written  notice  of  such  failure  from  Lessor;;  or 35 (c)  any  representation  and  warranty  made  by  Lessee  under  this  Lease  is  false  at  the  time  made  and  which,  individually  or in  the  aggregate  with  respect  to  each  other  such  false  representation  or  warranty,  is  material;;  or (d)  Lessee  makes  or  permits  a  Lease  Assignment  or  a  Sublease  in  violation  of  Article  XVII  of  this  Lease,  and  fails  to unwind  or  terminate  such  Lease  Assignment  or  Sublease  within  sixty  (60)  days  after  Lessee’s  receipt  of  written  notice  from Lessor  of  such  breach;;  or (e)  Lessee  fails  to  maintain  insurance  on  the  Leased  Property  in  compliance  with  this  Lease,  and  such  failure  continues for  five  (5)  Business  Days  after  Lessee’s  receipt  of  written  notice  of  such  failure  from  Lessor;;  or (f)  Lessee  fails  to  maintain  the  Terminal  System  in  Good  Condition  and  Repair  and  that  failure  continues  for  five (5)  Business  Days  after  Lessee’s  receipt  of  written  notice  thereof  from  Lessor (g)  Lessee  fails  to  observe  or  perform  any  other  covenant  of  Lessee  under  this  Lease  and  that  failure  continues  for  fifteen (15)  days  after  Lessee’s  receipt  of  written  notice  of  that  breach  from  Lessor  (or  if  the  cure  of  that  failure  reasonably  requires more  than  fifteen  (15)  days  to  complete,  if  Lessee  fails  to  commence  the  cure  within  such  fifteen  (15)  day  period  and  thereafter diligently  pursue  such  cure  to  completion);;  or (h)  the  filing  by  or  against  Lessee  or  Lessee  Guarantor  of  a  petition  for  relief  under  any  Debtor  Relief  Laws  (unless,  in  the case  of  a  petition  filed  against  Lessee  or  Lessee  Guarantor,  the  same  is  dismissed  within  ninety  (90)  days  after  filing),  or  the appointment  of  a  trustee  or  receiver  to  take  possession  of  all,  or  substantially  all,  of  Lessee’s  or  Lessee  Guarantor’s  assets  or  of Lessee’s  interest  in  this  Lease,  where  such  appointment  is  not  discharged  in  ninety  (90)  days  after  appointment  of  said  trustee or  receiver,  or  the  voluntary  filing  of  a  petition  for  the  appointment  of  the  same;;  or (i)  Lessee  or  Lessee  Guarantor  (i)  fails  to  make  any  payment  of  principal  or  interest  with  respect  to  any  debt  after  giving effect  to  any  applicable  cure  period  or  (ii)  fails  to  observe  or  perform  any  other  agreement  contained  in  any  agreement  or instrument  relating  to  that  debt  that  is  a  default  (other  than  a  failure  to  pay  specified  in  clause  (i)  of  this  paragraph)  and  such default  continues  after  the  applicable  grace  or  cure  period,  if  any,  specified  in  such  agreement  or  instrument,  if  the  effect  of  the failure  specified  in  clause  (i)    or  (ii)    is  to  accelerate  the  maturity  of  that  debt  and  such  debt  is  not  reinstated  within  seven (7)  days  after  Lessee’s  receipt  of  written  notice  from  Lessor  of  such  acceleration;;  or (j)  A  “Lessee  Event  of  Default”  has  occurred  under  the  Pipeline  System  Lease. 23.2  Lessor’s  Remedies  for  a  Lessee  Event  of  Default  .  Upon  the  occurrence  and  during  the  continuance  of  a  Lessee Event  of  Default,  with  or  without  notice  or  demand,  except  such  notice  as  may  be  required  by  statute  and  cannot  be  waived  by Lessee  and  such  notice  as  is  specifically  required  by  the  terms  of  this  Lease  (all  other  notices  being  hereby  waived),  Lessor shall  be  entitled  to  exercise,  at  its  option,  any  or  all  of  the  following  remedies: (a)  Lessor’s  Remedies  for  a  Lessee  Event  of  Default  .  Upon  the  occurrence  and  during  the  continuance  of  a  Lessee Default,  Lessor  may  give  Lessee  written  notice  of  Lessor’s  intention  to  terminate  this  Lease  as  a  result  of  such  Lessee  Event  of Default  (except  for  the  terms  and  provisions  hereof  which 36 survive  termination)  on  a  date  specified  in  such  notice  (which  date  shall  be  no  sooner  than  ten  (10)  days  after  the  date  of  the notice),  in  which  case,  upon  the  date  therein  specified,  the  Term  and  the  estate  hereby  granted  shall  expire  and  terminate  as  if such  date  were  the  date  hereinabove  fixed  for  the  expiration  of  the  Term  except  the  terms  and  provisions  hereof  which  survive the  Term.  Upon  such  termination,  Lessee  shall  surrender  possession  of  the  Leased  Property  to  Lessor  and  Lessor  may  (i)  take possession  of  the  same  on  the  termination  date  without  being  deemed  guilty  in  any  manner  of  trespass  or  becoming  liable  for any  loss  or  damage  resulting  therefrom,  without  resort  to  legal  or  judicial  process,  procedure  or  action,  and  (ii)  substitute  a replacement  operator  to  operate  the  Terminal  System. In  addition  to  the  foregoing  right  to  terminate  this  Lease,  and  without  being  obligated  to  terminate  this  Lease  and without  limiting  any  other  rights  or  remedies  that  may  be  available  to  Lessor  as  a  result  of  a  Lessee  Default,  Lessor  shall  be entitled  to  the  following  remedies,  and  may  bring  an  action  against  Lessee,  for  any  or  all  of  the  following: (i)  Accrued  and  Unpaid  Base  Rent  .  All  Base  Rent  and  Variable  Rent  accrued  and  unpaid  to  the  termination  date and  not  otherwise  paid  by  Lessee;;  and (ii)  Accrued  and  Unpaid  Additional  Rent  .  All  Additional  Rent  accrued  and  unpaid  to  the  termination  date  and  not otherwise  paid  by  Lessee  (including  Lessee’s  indemnity  obligations  under  Sections  21.2  and  22.3  with  respect  to  matters  or circumstances  arising  prior  to  the  expiration  of  the  Term  or  date  of  Lease  termination,  as  applicable,  whether  or  not  Lessor  has asserted  such  indemnity  claims  prior  to  the  expiration  of  the  Term  or  date  of  Lease  termination,  as  applicable),  but  without duplication  for  amounts  for  which  Lessor  seeks  damages  under  this  Lease;;  and (iii)  Failure  to  Surrender  Leased  Property  .  Losses  resulting  from  Lessee’s  failure  to  surrender  the  Leased  Property as  required  by  Section  18.1  ,  but  without  duplication  for  amounts  for  which  Lessor  seeks  damages  or  indemnification  under this  Lease;;  and (iv)  Collection  Costs  .  All  reasonable  out-­of-­pocket  expenses  incurred  by  Lessor  in  enforcing  its  remedies  under  this Section  23.2(a)  with  respect  to  such  Lessee  Event  of  Default,  including  retention  of  a  third  party  to  operate  the  Terminal System,  reasonable  attorneys’  fees,  court  costs,  expert  witness  fees,  costs  of  tests  and  analyses,  travel  and  accommodation expenses,  deposition  and  trial  transcripts,  copies  and  other  similar  costs  and  fees,  paid  or  incurred  by  Lessor  as  a  result  of  its exercise  of  remedies  under  this  subsection  (a)    with  respect  to  such  Lessee  Event  of  Default,  regardless  of  whether  or  not  legal proceedings  are  actually  commenced,  subject  to  Section  26.9  of  this  Lease;;  and (v)  Termination  Damages  .  The  amount,  if  any,  by  which  (1)  the  unpaid  Base  Rent  and  Variable  Rent  (as  calculated below)  payable  under  this  Lease  which  would  have  been  earned  after  termination  for  the  balance  of  the  Term  (had  this  Lease not  been  terminated  and  without  giving  effect  to  any  unexercised  extension  options),  discounted  to  present  value  at  the Discount  Rate  exceeds  (2)  the  Fair  Market  Rent  for  such  period,  also  discounted  to  present  value  at  the  Discount  Rate.  The Variable  Rent  which  would  have  been  earned  after  termination  for  the  balance  of  the  Term  under  (1)  above,  shall  be calculated  based  on  the  average  Variable  Rent  payable  during  the  one  year  period  prior  to  the  termination  of  this  Lease;;  and (vi)  Specific  Performance  .  Lessor  may  bring  an  action  against  Lessee  for  specific  performance  by  Lessee  of  its unperformed  obligations  under  this  Lease,  but  without  duplication  for  other  amounts  for  which  Lessor  seeks  damage  or indemnification  under  this  Lease.  All  covenants  and  agreements  of  Lessee  in  this  Lease  shall  be  deemed  special,  unique  and extraordinary,  and  any  breach  of  any  covenant  or  agreement  by  Lessee  shall  be  deemed  to  cause  Lessor  irreparable  injury  not properly  compensable  by  damages  in  an  action  at  law,  such  that  the  rights  and  remedies  of  Lessor  may  be  enforced  both  at  law or  in  equity;;  and 37 (vii)  Self-­Help  Remedies  .  Lessor  may  perform  (or  cause  another  Person  to  perform),  on  Lessee’s  behalf,  any unperformed  covenant  or  obligation  under  this  Lease  constituting  such  Lessee  Event  of  Default  if  such  covenant  or obligation  remains  unperformed  at  any  time  during  which  a  Lessee  Event  of  Default  has  occurred  and  is  continuing  and/or Lessor  may  substitute  a  replacement  operator  to  operate  the  Terminal  System  at  any  time  during  which  a  Lessee  Event  of Default  has  occurred  and  is  continuing,  in  which  event,  Lessee  shall  reimburse  Lessor  for  all  reasonable  costs,  expenses  and disbursements  incurred  by  Lessor  in  doing  so  (including,  without  limitation,  the  cost  of  any  replacement  operator),  plus together  with  interest  thereon  at  the  Default  Interest  Rate  from  the  due  date  for  Additional  Rent,  but  in  any  event  without duplication  for  amounts  for  which  Lessor  seeks  damages  or  indemnification  under  this  Lease. For  the  avoidance  of  doubt,  Lessor  may  exercise  any  or  all  of  the  remedies  set  forth  in  Section  23.2(a)(i)  through (vii)  without  terminating  this  Lease  and  Lessee’s  obligations  under  this  Lease  including  the  obligation  to  pay  the  Base Rent,  Variable  Rent  and  Additional  Rent  as  and  when  due  under  this  Lease  shall  remain  in  full  force  and  effect notwithstanding  Lessor’s  exercise  of  any  of  the  foregoing  remedies. Notwithstanding  the  foregoing  or  anything  to  the  contrary  set  forth  in  this  Lease,  the  amount  required  to  be  paid  by  Lessee pursuant  to  Sections  23.2(a)(i)  through  (v)  shall  be  limited  as  follows:  The  Inception  Date  Present  Value  of  the  amount  paid by  Lessee  pursuant  to  Sections  23.2(a)(i)  through  (v)  plus  the  Inception  Date  Present  Value  of  the  Aggregate  Minimum  Rent shall  not  in  any  event  exceed  $37,170,000  (the  “Maximum  Loss  Amount”);;  provided,  however  ,  that  the  Maximum  Loss Amount  shall  increase  by  ninety  percent  (90%)  of  the  Project  Costs.  As  used  herein,  (I)  “Aggregate  Minimum  Rent”  means  the Minimum  Rent  paid  by  Lessee  during  the  period  beginning  on  the  Effective  Date  and  continuing  through  the  date  of termination  of  the  Initial  Term,  (II)  “Inception  Date  Present  Value”  of  an  amount  means  the  present  value  of  such  amount  as  of the  Effective  Date,  calculated  using  the  Specified  Discount  Rate,  and  (III)  “Specified  Discount  Rate”  means            percent  (        %). The  Maximum  Loss  Amount  will  be  renegotiated  for  any  Renewal  Term. In  addition,  and  notwithstanding  the  foregoing,  in  the  event  that  as  of  the  Lease  termination  date  specified  in  Lessor’s  notice to  Lessee  such  Lessee  Event  of  Default  has  been  cured,  such  termination  notice  shall  be  deemed  to  have  been  rescinded,  this Lease  shall  remain  in  effect  and  Lessor  shall  only  be  entitled  to  Base  Rent,  Variable  Rent  and  Additional  Rent  which  has accrued  under  this  Lease  under  subsections  (i  )  and  (  ii  ),  above,  and  Lessor’s  reasonable  out-­of-­pocket  expenses  under subsection  (iv  )  above. (b)  No  Waiver  or  Election  of  Remedies  .  No  delay  or  omission  of  Lessor  to  exercise  any  right  or  power  accruing  upon  the occurrence  and  during  the  continuance  of  any  Lessee  Event  of  Default  shall  impair  any  other  or  subsequent  Lessee  Event  of Default  or  impair  any  rights  or  remedies  consequent  thereto  unless  such  Lessee  Event  of  Default  is  cured.  Every  power  and remedy  given  by  this  Section  to  Lessor  may  be  exercised  from  time-­to-­time,  and  as  often  as  may  be  deemed  expedient,  by Lessor,  subject  at  all  times  to  Lessor’s  right  to  change  any  course  of  action  undertaken  by  Lessor. 38 23.3  Lessor  Events  of  Default  .  Each  of  the  following  shall  be  an  event  of  default  under  this  Lease  (each,  a  “  Lessor Event  of  Default  ”): (a)  Monetary  Defaults  .  Lessor  fails  to  make  any  payment  due  to  Lessee  under  this  Lease  and  such  failure  continues  for seven  (7)  Business  Days  after  Lessor’s  receipt  of  written  notice  of  such  failure  from  Lessee;;  or (b)  Representations  .  Any  representation  and  warranty  made  by  Lessor  under  this  Lease  is  false  at  the  time  made  and which,  individually  or  in  the  aggregate  with  respect  to  each  other  such  false  representation  or  warranty,  is  material;;  or (c)  Certain  Specified  Lessor  Event  of  Defaults  .  Any  breach,  default  or  failure  of  performance  by  Lessor  under Section  3.2(a  )  (  Prohibited  Other  Record  Agreement  s),  and  such  breach,  default  or  failure  of  performance  remains  uncured  for sixty  (60)  days  after  Lessor’s  receipt  of  written  notice  of  such  breach,  default  or  failure  of  performance;;  or (d)  Other  Lessor  Covenant  Defaults  .  Lessor  fails  to  observe  or  perform  any  other  covenant  of  Lessor  under  this  Lease  in any  material  respect  (other  than  those  specified  in  other  subsections  of  this  Section  23.3  )  which  failure  continues  for  fifteen (15)  days  after  Lessor’s  receipt  of  written  notice  of  such  breach  from  Lessee  (or  if  the  cure  of  such  failure  reasonably  requires more  than  fifteen  (15)  days  to  complete,  if  Lessor  fails  to  commence  the  cure  within  such  fifteen  (15)  day  period  and  thereafter diligently  pursue  such  cure  to  completion);;  or (e)  Debtor  Relief  Laws  .  The  filing  by  or  against  Lessor  of  a  petition  for  relief  under  any  Debtor  Relief  Laws  (unless,  in the  case  of  a  petition  filed  against  Lessor,  the  same  is  dismissed  within  ninety  (90)  days  after  filing),  or  the  appointment  of  a trustee  or  receiver  to  take  possession  of  all,  or  substantially  all,  of  Lessor’s  assets  or  of  Lessor’s  interest  in  this  Lease,  where such  appointment  is  not  discharged  in  ninety  (90)  days  after  appointment  of  said  trustee  or  receiver,  or  the  voluntary  filing  of a  petition  for  the  appointment  of  the  same;;  or (f)  Pipeline  System  Lease  .  A  “Lessor  Event  of  Default”  has  occurred  under  the  Pipeline  System  Lease. 23.4  Lessee’s  Remedies  for  a  Lessor  Event  of  Default  . (a)  Lessee  Remedies  .  Upon  the  occurrence  and  during  the  continuance  of  a  Lessor  Event  of  Default,  with  or  without notice  or  demand,  except  such  notice  as  may  be  required  by  statute  and  cannot  be  waived  by  Lessor  and  such  notice  as  is specifically  required  by  the  terms  of  this  Lease  (all  other  notices  being  hereby  waived),  this  Lease  shall  remain  in  full  force and  effect,  Lessee  shall  be  entitled  to  remain  in  possession  of  the  Leased  Property  hereunder  and  shall  remain  obligated  and liable  for  Lessee’s  obligations  hereunder  (subject  to  Lessee’s  offset  rights  set  forth  below),  and  Lessee  shall  have  and  may exercise  the  following  remedies,  concurrently,  successively,  or  in  any  combination,  Lessee  hereby  waiving  all  other  rights  and remedies  to  which  Lessee  may  be  entitled  at  law  or  in  equity: (i)  Amounts  Due  by  Lessor  under  the  Lease  .  Lessee  may  collect  and  bring  an  action  against  Lessor  for  all  amounts due,  owing  and  unpaid  by  Lessor  as  of  the  date  of  such  action,  including  Lessor’s  indemnity  obligations  under  this  Lease  with respect  to  matters  or  circumstances  arising  prior  to  the  date  of  such  action,  but  in  any  case  without  duplication  for  claims made  under  subsection  (a)(ii  )  below;;  and (ii)  Damages  .  Lessee  may  bring  an  action  against  Lessor  for  Lessee’s  damages  which  are  proximately  caused  by such  Lessor  Event  of  Default,  but  without  duplication  for  other  amounts  and  indemnities  for  which  Lessor  may  be  obligated under  this  Lease;;  and 39 (iii)  Enforcement  Costs  .  Lessee  shall  be  entitled  to  recover  from  Lessor  all  out-­of-­pocket  costs  and  expenses, including  reasonable  attorneys’  fees,  court  costs,  expert  witness  fees,  costs  of  tests  and  analyses,  travel  and  accommodation expenses,  deposition  and  trial  transcripts,  copies  and  other  similar  costs  and  fees,  paid  or  incurred  by  Lessee  in  exercising  its remedies  under  this  Section  23.4(a  )  as  a  result  of  such  Lessor  Event  of  Default,  regardless  of  whether  or  not  legal  proceedings are  actually  commenced,  subject  to  Section  26.9  of  this  Lease;;  and (b)  Delays  and  Waivers  of  Other  Remedies  .  No  delay  or  omission  of  Lessee  to  exercise  any  right  or  power  accruing  upon the  occurrence  and  during  the  continuance  of  any  Lessor  Event  of  Default  shall  impair  any  other  or  subsequent  Lessor  Event of  Default  or  impair  any  rights  or  remedies  consequent  thereto  unless  such  Lessor  Event  of  Default  is  cured.  Subject  to  the provisions  of  subsection  (a  ),  above,  which  provide  that  such  remedies  are  available  without  duplication  of  certain  other claims,  every  power  and  remedy  given  by  this  Section  23.4  to  Lessee  may  be  exercised  from  time-­to-­time,  and  as  often  as  may be  deemed  expedient,  by  Lessee,  subject  at  all  times  to  Lessee’s  right  to  change  any  course  of  action  undertaken  by  Lessee. Lessee  hereby  irrevocably  waives  and  releases  any  and  all  rights  and  remedies  with  respect  to  any  Lessor  Event  of  Default other  than  as  expressly  granted  in  this  Section  23.4  .  provided,  however,  that  this  sentence  shall  not  be  deemed  to  prohibit collection  by  Lessee  of  amounts  due  and  owing  from  Lessor  which  payment  obligation  has  accrued  or  arisen  with  respect  to facts  or  circumstances  during  the  Term,  including  indemnification  claims  which  arose  during  the  Term  pursuant  to Sections  21.2  and  22.4  ,  but  without  duplication  of  any  such  amounts  or  claims  and  such  remedies. ARTICLE  XXIV. NOTICE 24.1  Notices  .  Except  where  otherwise  specifically  provided  in  this  Lease,  all  notices,  demands,  requests  or  other communications  (each,  a  “  Notice  ”)  which  either  party  is  required  to  or  may  desire  to  give  to  the  other  shall  be  in  writing  and shall  be  given  by  (a)  personal  delivery,  (b)  mailing  a  copy  thereof  by  certified  or  registered  mail,  postage  prepaid,  return receipt  requested,  or  (c)  nationally  recognized  overnight  courier  service  (such  as  Federal  Express  or  UPS),  all  charges  prepaid, furnishing  a  receipt  upon  delivery,  in  each  case  addressed  to  the  party  to  whom  the  notice  is  directed  at  the  Notice  address  of such  party  set  forth  below.  A  notice  given  by  Lessee  may  be  given,  in  addition  to  the  methods  set  forth  in  the  preceding sentence,  via  electronic  mail,  and  any  Notice  sent  by  Lessee  via  electronic  mail  shall  be  deemed  to  have  been  received  by  the addressee  upon  Lessee  sending  the  email  to  the  addressee’s  designated  email  address  below.  The  Notice  address  of  each  party is: Lessee  : Arc  Terminals  Holdings  LLC 3000  Research  Forest  Drive Suite  250 The  Woodlands,  TX  77381 Attn:  Mark  Feldman,  Corporate  Controller With  a  copy  to: Elizabeth  Osenton  Lord Jessica  R.  Alsop Jackson  Kelly  PLLC 500  Lee  Street  East,  Suite  1600 Charleston,  WV  25301 40 Lessor  : LCP  Oregon  Holdings,  LLC 4200  W.  115  th  Street,  Suite  210 Leawood,  KS  66211 Attn:  Mr.  Rick  Green With  a  copy  to: David  A.  Fenley Husch  Blackwell  LLP 4801  Main,  Suite  1000 Kansas  City,  Missouri  64112 The  addresses  to  which  notices  and  demands  shall  be  delivered  or  sent  may  be  changed  from  time-­to-­time  by  notice served  by  either  party  upon  the  other  as  provided  above. 24.2  Deemed  Receipt  .  Unless  otherwise  provided  in  this  Lease,  and  except  for  deemed  receipt  of  email  notices  as provided  in  Section  24.1  ,  notice  shall  be  deemed  to  have  been  received  by  the  addressee  as  follows:  (a)  if  a  Notice  is delivered  in  person,  or  sent  by  registered  or  certified  mail,  or  nationally  recognized  overnight  courier,  upon  receipt  by  the addressee  or  delivery  to  the  address  of  the  addressee;;  and  (b)  if  the  addressee  rejects  or  otherwise  refuses  to  accept  the  Notice, or  if  the  Notice  cannot  be  delivered  because  of  a  change  in  address  for  which  no  Notice  was  given,  then  upon  the  rejection, refusal,  or  inability  to  deliver  the  Notice. 24.3  Delivery;;  Time  of  Notice  .  Notwithstanding  the  foregoing,  if  any  Notice  is  received  after  5:00  p.m.  on  a  Business Day  where  the  addressee  is  located,  or  on  a  day  that  is  not  a  Business  Day  where  the  addressee  is  located,  then  the  Notice  is deemed  received  at  9:00  a.m.  local  time  on  the  next  business  day  where  the  addressee  is  located. ARTICLE  XXV. RENEWAL  AND  END  OF  TERM  OPTIONS 25.1  Renewal  Option  . (a)  Renewal  Rights  .  Provided  no  Lessee  Event  of  Default  has  occurred  and  remains  uncured  as  of  the  end  of  the  Current Lease  Term,  Lessee  shall  have  the  right  and  option  (the  “  Renewal  Option  ”)  to  extend  the  term  of  this  Lease  with  respect  to all  (but  not  less  than  all)  of  the  Leased  Property  for  consecutive  renewal  terms,  each  for  a  length  of  time  equal  to  five  (5)  years (each,  hereafter  referred  to  as  the  “  Renewal  Term  ”),  provided,  however,  that  the  maximum  aggregate  Term  shall  in  no  event exceed  99  years. (b)  Lessee  Renewal  Notice  .  Prior  to  the  date  that  is  twenty-­one  (21)  months  before  the  Current  Lease  Term  End  (the  “ Renewal  Notice  Date  ”),  Lessee  may  exercise  its  Renewal  Option  if  Lessee  and  Lessor  agree  in  writing  upon  the  Fair  Market Rent  for  the  applicable  Renewal  Term  (the  “  Agreed  FMV  Rent  ”). 41 (c)  Determination  of  Agreed  FMV  Rent  .  Lessor  and  Lessee  shall  negotiate  in  good  faith  to  reach  agreement  as  to  the Fair  Market  Rent  and,  if  requested  by  Lessee,  one  or  more  senior  officers  of  Lessor  shall  meet  with  one  or  more  senior  officers of  Lessee  at  Lessor’s  offices  in  Kansas  City,  Missouri  or  such  other  location  as  the  parties  shall  mutually  agree  to  conduct such  negotiations  in  person.  The  Agreed  FMV  Rent  shall  be  the  Base  Rent  for  the  Leased  Property  for  the  applicable  Renewal Term.  If  Lessor  and  Lessee  are  unable  to  agree  upon  the  Agreed  FMV  Rent  on  or  prior  to  the  Renewal  Notice  Date,  then  the first  day  of  the  Renewal  Term  shall  be  an  Adjustment  Date  and  Base  Rent  (including  its  Minimum  Rent  component)  for  each year  of  the  Renewal  Term,  including  the  first  year  of  the  Renewal  Term,  shall  be  adjusted  in  the  same  manner,  using  the  same methodology,  as  Base  Rent  (including  its  Minimum  Rent  component)  was  adjusted  during  the  Initial  Term. 25.2  Procedure  Upon  Purchase  . (a)  If  Lessee  shall  purchase  the  Leased  Property  pursuant  to  this  option  described  in  Section  25.4,  Lessor  need  not transfer  and  convey  to  Lessee  any  better  title  thereto  than  existed  on  the  date  of  the  commencement  of  the  term  of  this  Lease, and  Lessee  or  its  designee  shall  accept  such  title,  subject,  however,  to  the  state  of  title  to  the  Leased  Property  on  the  date  on which  this  Lease  commenced;;  the  condition  of  the  Leased  Property  on  the  date  of  purchase;;  all  charges,  liens,  security interests  and  encumbrances  on  the  Leased  Property  and  all  Applicable  Legal  Requirements. (b)  Upon  the  date  fixed  for  any  purchase  of  the  Leased  Property,  Lessee  shall  pay  to  Lessor  the  purchase  price  therefor specified  herein,  and  Lessor  shall  deliver  to  Lessee  an  instrument  of  assignment  and  conveyance  which  is  sufficient  to  vest  in Lessee  the  Leased  Property  and  any  other  instruments  necessary  to  convey  the  title  thereto  described  in  this  Section  25  and  to assign  any  other  property  then  required  to  be  assigned  by  Lessor  pursuant  hereto.  Lessee  shall  pay  all  charges  incident  to  such conveyance  and  assignment,  including  counsel  fees,  escrow  fees,  recording  fees,  title  insurance  premiums  and  all  applicable taxes  (other  than  any  income  or  franchise  taxes  of  Lessor)  which  may  be  imposed  by  reason  of  such  conveyance  and assignment  and  the  delivery  of  said  instrument  of  assignment  and  conveyance  and  other  instruments.  Upon  the  completion  of any  purchase  of  the  Leased  Property  but  not  prior  thereto  (whether  or  not  any  delay  or  failure  in  the  completion  of  such purchase  shall  be  the  fault  of  Lessor),  this  Lease  shall  terminate,  except  with  respect  to  obligations  and  liabilities  of  Lessee hereunder,  actual  or  contingent,  which  have  arisen  on  or  prior  to  such  date  of  purchase. 25.3  Lessee  as  Operator  After  Term  .  If  Lessor  elects  by  written  notice  to  Lessee  given  no  later  than  90  days  prior  to  the end  of  the  Lease  Term,  then  following  the  termination  of  his  Lease,  Lessee  or  its  Affiliate  will  continue  to  operate  the  Leased Property  after  the  Term  as  an  operator  and  not  a  lessee,  pursuant  to  the  Services  Agreement,  for  a  monthly  operating  fee  equal to  the  fair  market  value  for  applicable  services  and  use  under  the  Services  Agreement  as  Lessor  and  Lessee  shall  negotiate  in good  faith,  for  a  period  of  up  to  two  (2)  years  following  the  end  of  the  Lease  Term,  as  specified  in  the  notice  from  Lessor,  but subject  in  any  event  to  the  termination  rights  provided  in  the  Services  Agreement.  Upon  timely  written  request  from  Lessor,  as provided  in  this  Section  25.3,  Lessor  and  Lessee  shall  execute  and  deliver  the  Services  Agreement  and  pay  or  cause  to  be  paid the  monthly  operating  fee  in  connection  therewith. 25.4  Lessee  Buy-­Out  .  So  long  as  no  Lessee  Event  of  Default  shall  exist  under  this  Lease  and  no  notice  shall  have  been given  to  Lessee  of  a  default  hereunder  which  has  not  been  corrected,  Lessee  shall  have  the  right  to  purchase  the  Leased Property  concurrently  with  the  purchase  by  Lessee  of  the  property  leased  by  Lessee  under  the  Pipeline  System  Lease  and terminate  this  Lease  at  the  end  of  the  thirty-­six  (36) 42 month  period  beginning  the  first  day  of  the  month  following  the  month  in  which  the  Effective  Date  occurs,  or  at  the  end  of any  month  thereafter  during  the  Term,  upon  giving  Lessor  ninety  (90)  days’  written  notice  before  such  termination  date.  The purchase  price  shall  be  nine  (9)  times  the  greater  of  (a)  total  of  Base  Rent  and  Variable  Rent  invoiced  for  the  immediately preceding  twelve  (12)  months  prior  to  the  Notice  or  (b)  $6,964,887.  The  closing  of  such  buy-­out  shall  proceed  as  is  otherwise described  in  this  Article. 25.5  Lessee  Termination  Options  . (a)  Lessee  shall  have  the  right  to  terminate  this  Lease  as  of  the  fifth  (5  th  )  anniversary  of  the  first  day  of  the  month following  the  month  in  which  the  Effective  Date  occurs,  by  providing  written  notice  of  such  termination  to  Lessor  at  least twelve  (12)  months  prior  to  the  termination  date,  and  provided  that,  as  of  the  date  of  such  notice,  no  Lessee  Event  of  Default shall  exist  under  this  Lease  and  no  notice  shall  have  been  given  to  Lessee  of  a  default  hereunder  which  has  not  been corrected.  On  the  date  of  termination  under  this  Section  25.5(a)  ,  Lessee  shall  pay  Lessor  a  termination  fee  of  $3,816,377,  by wire  transfer  of  immediately  available  funds  to  an  account  specified  by  Lessor. (b)  Lessee  shall  have  the  right  to  terminate  this  Lease  as  of  the  tenth  (10  th  )  anniversary  of  the  first  day  of  the  month following  the  month  in  which  the  Effective  Date  occurs,  by  providing  written  notice  of  such  termination  to  Lessor  at  least twelve  (12)  months  prior  to  the  termination  date,  and  provided  that,  as  of  the  date  of  such  notice,  no  Lessee  Event  of  Default shall  exist  under  this  Lease  and  no  notice  shall  have  been  given  to  Lessee  of  a  default  hereunder  which  has  not  been corrected.  On  the  date  of  termination  under  this  Section  25.5(b)  ,  Lessee  shall  pay  Lessor  a  termination  fee  of  $5,724,565,  by wire  transfer  of  immediately  available  funds  to  an  account  specified  by  Lessor. ARTICLE  XXVI. MISCELLANEOUS  PROVISIONS 26.1  Memorandum/Notice  of  Lease  .  Simultaneously  with  the  execution  of  this  Lease,  Lessor  and  Lessee  shall  execute and  deliver  the  Memo  of  Lease  and  cause  it  to  be  recorded  in  the  Official  Public  Records.  Upon  termination  of  this  Lease, upon  the  request  of  either  party,  the  other  party  will  execute  an  instrument  in  recordable  form  indicating  that  this  Lease  has been  terminated.  No  mortgages,  deeds  of  trust,  fixture  filings,  UCC  financing  statements  or  other  Lien  filings  will  be  recorded by  Lessor  or  any  Lessor  Lender  in  the  Official  Public  Records  or  in  personal  property  UCC  records  naming  Lessee  as  a  debtor with  respect  to  any  of  the  Leased  Property. 26.2  Force  Majeure  .  If  either  party  shall  be  delayed  or  hindered  in,  or  prevented  from,  the  performance  of  any  act required  under  this  Lease  by  reason  of  strikes,  lockouts,  labor  troubles,  riots,  insurrection,  war  or  other  reasons  of  a  like  nature beyond  the  reasonable  control  of  the  party  delayed  in  performing  work  or  doing  acts  required  under  the  terms  of  this  Lease (any  such  delay,  hindrance  or  prevention  being  referred  to  as  “  Force  Majeure  ”),  then  performance  of  such  act  shall  be excused  for  the  period  of  delay,  and  the  period  of  the  performance  of  any  such  act  shall  be  extended  for  a  period  equivalent  to the  period  of  such  delay  unless  otherwise  specifically  provided  to  the  contrary  in  this  Lease.  The  provisions  of  this  Section shall  not  apply  to  delays  in  the  payment  of  amounts  due  and  owing  by  Lessee  or  Lessor  hereunder  or  resulting  from  the inability  of  a  party  to  obtain  financing  or  to  satisfy  its  obligations  under  this  Lease  because  of  a  lack  of  funds. 43 26.3  Consequential  Damages  .  Notwithstanding  anything  in  this  Lease  to  the  contrary,  in  no  event  shall  Lessor  or Lessee  be  liable  or  responsible  for  consequential,  punitive,  special  or  indirect  damages  except  to  the  extent  owed  to  a  third party. 26.4  Holding  Over  .  If  Lessee  remains  in  possession  of  any  Leased  Property  after  the  expiration  of  the  Term  without having  timely  executed  its  right,  if  any,  to  extend  the  Term,  such  continuing  possession  shall  create  a  month  to  month tenancy  on  the  terms  of  this  Lease  except  that  the  monthly  Base  Rent  shall  be  125%  of  the  Base  Rent  applicable  as  of  the  end of  the  Term,  and  such  tenancy  may  be  terminated  at  the  end  of  any  month  thereafter  by  either  party  giving  at  least  sixty (60)  days’  notice  to  the  other  party. 26.5  Quiet  Enjoyment  .  Lessor  agrees  that  so  long  as  this  Lease  is  in  effect,  Lessee  shall  and  may  peaceably  and  quietly have,  hold  and  enjoy  the  Leased  Property  and  all  rights  of  Lessee  hereunder  during  the  Term  without  any  manner  of  hindrance or  molestation  from  Lessor,  Lessor  Lender,  or  anyone  claiming  by,  through  or  under  Lessor  or  Lessor  Lender. 26.6  Cost  and  Expense  .  Wherever  it  is  provided  in  this  Lease  that  an  act  is  to  be  undertaken  by  any  Person,  such  act shall  be  done  by  such  Person  or  caused  to  be  done  by  such  Person  at  no  cost  or  expense  to  the  other  party. 26.7  Access;;  Reporting  . (a)  Access  and  Inspection  Rights  .  Lessor  or  its  agents  and  Lessor  Lender  (or  the  agent  for  such  Lessor  Lender  if requested  in  writing  by  Lessor)  may,  at  their  sole  cost  and  expense,  inspect  the  Leased  Property  during  normal  business  hours at  such  locations  where  the  same  is  located  or  kept  in  Lessee’s  ordinary  course  of  business,  after  not  less  than  five  (5)  Business Days  prior  notice  to  Lessee;;  provided  ,  however  ,  neither  Lessor,  any  Lessor  Lender  nor  any  agent  for  any  Lessor  Lender  shall have  any  right  to  inspect  any  of  the  Leased  Property  without  a  representative  of  Lessee  being  present  and  Lessor  and  Lessor Lender  (or  its  agent,  if  applicable)  shall  abide  by  Lessee’s  reasonable  rules  and  regulations  (including  those  governing  matters of  health  and  safety)  when  making  such  inspections;;  provided,  further,  that,  unless  (i)  Lessee’s  interest  under  this  Lease  has been  assigned  to  a  Person  that  is  not  a  Permitted  Lessee  Transferee,  (ii)  a  Lessee  Event  of  Default  has  occurred  and  is continuing  (or  Lesser  has  reason  to  believe  that  a  Lessee  Event  of  Default  may  have  occurred  and  be  continuing)  or (iii)  Lessee  discontinues  operations  of  the  Leased  Property,  and  excluding  inspections  made  with  respect  to  restorations following  a  casualty  or  condemnation  as  such  inspections  are  permitted  by  and  pursuant  to  Article  XV  or  Article  XVI  ,  Lessor Lender  (or  the  agent  for  such  Lessor  Lender  if  requested  in  writing  by  Lessor)  may  inspect  the  Leased  Property  no  more frequently  than  once  per  calendar  year  and  Lessor  may  inspect  the  Leased  Property  no  more  frequently  than  twice  per  calendar year.  Lessee  shall  use  commercially  reasonable  efforts  to  cause  its  representative  to  be  present  for  Lessor’s  inspection  when notice  is  given  as  required  by  this  subsection  (a)  .  In  the  event  Lessee  is  unable  to  provide  a  representative  of  Lessee  to  be present  for  a  Lessor  or  Lessor  Lender  inspection  at  any  time  during  a  thirty  (30)  consecutive  day  period,  Lessee  shall  pay  to Lessor  a  $10,000  penalty.  Under  no  circumstances  shall  Lessor  permit  its  inspection  or  any  inspection  by  Lessor  Lender  (or the  agent  for  such  Lessor  Lender  if  requested  in  writing  by  Lessor)  to  interfere  with  Lessee’s  ordinary  operation  of  the  Leased Property  or  with  Lessee’s  business. 44 (b)  Lessee  Reporting  Obligations  .  Lessee  shall: (i)  furnish,  not  later  than  60  days  after  the  end  of  each  calendar  month  during  the  Term,  a  report  stating  the  Actual Daily  Volume  for  such  prior  month;; (ii)  furnish,  no  later  than  60  days  after  the  end  of  each  calendar  quarter  during  the  Term,  a  report  discussing maintenance,  integrity  management  and  any  special  operational  procedures  performed  on  the  Terminal  System  for  such quarter;; (iii)  furnish,  not  later  than  60  days  after  the  end  of  each  calendar  quarter  during  the  Term,  a  report  listing  any  capital expenditures  made  related  to  the  Terminal  System  for  such  quarter;; (iv)  cause  Lessee  Guarantor  (or,  if  there  is  no  Lessee  Guarantor,  then  Lessee)  to  furnish,  not  later  than  120  days  after the  end  of  each  fiscal  year  of  such  Person,  such  Person’s  unaudited  consolidated  balance  sheet  and  related  statements  of operations,  stockholders’  equity  and  cash  flows  as  of  the  end  of  and  for  such  year;; (v)  cause  Lessee  Guarantor  (or,  if  there  is  no  Lessee  Guarantor,  then  Lessee)  to  furnish,  not  later  than  60  days  after the  end  of  each  of  the  first  three  fiscal  quarters  of  each  fiscal  year  of  such  Person,  such  Person’s  unaudited  consolidated balance  sheet  and  related  statements  of  operations,  stockholders’  equity  and  cash  flows  as  of  the  end  of  and  for  such  fiscal quarter  and  the  then  elapsed  portion  of  the  fiscal  year;; (vi)  cause  Lessee  Guarantor  (or,  if  there  is  no  Lessee  Guarantor,  then  Lessee)  to  furnish,  as  promptly  as  reasonably practicable  such  unaudited  or  audited  financial  statements  as  may  be  required  by  Lessor  or  a  direct  or  indirect  owner  of  an interest  in  Lessor  to  permit  it  to  file  a  registration  statement  with  the  Securities  and  Exchange  Commission  (along  with  any required  auditor  consent);;  and (vii)  provide  prompt  written  notice  to  Lessor  of  any  failure  by  Lessee  or  Lessee  Guarantor  to  pay  any  installment  of principal  or  interest  under  its  debt  when  due  if  such  failure  is  not  cured  or  waived  within  the  applicable  grace  period  with respect  to  such  debt. Financial  statements,  reports  and  other  information  required  or  permitted  to  be  furnished  by  Lessee  or  Lessee  Guarantor pursuant  to  this  Lease,  including  the  financial  statements  and  other  information  furnished  pursuant  to  this  Section  26.7(b  ), may  be  submitted  by  Lessee  or  Lessee  Guarantors  by  email  addressed  to  Lessor.  In  the  event  that  any  information  or documents  furnished  by  Lessee  or  Lessee  Guarantor  pursuant  to  this  Lease  is  publicly  available  on  the  Securities  and Exchange  Commission  EDGAR  database  (or  any  successor  database),  such  documents  or  information  shall  be  deemed  to  have been  delivered  to  Lessor  by  Lessee  on  the  date  on  which  Lessee  or  Lessee  Guarantor  files  such  financial  statements  or  other information  with  the  Securities  and  Exchange  Commission  and  provides  notice  to  Lessor  of  such  filing,  which  notice  may  be given  by  email. (c)  Periodic  Discussions  .  In  addition  to  the  reports  and  statements  to  be  delivered  by  Lessee  pursuant  to  Section  26.7(b) ,  Lessor  and  Lessee  agree,  within  fifteen  (15)  Business  Days  after  the  end  of  each  calendar  quarter  during  the  Term,  to  convene a  conference  call  with  at  least  one  senior  officer  of  each  party  to  discuss  the  operations  and  financial  performance  of  the Terminal  System,  the  reports  and  statements  delivered  by  Lessee  pursuant  to  Section  26.7(b)  and  other  relevant  information regarding  the  Leased  Property,  provided,  however,  that  the  senior  officers  of  Lessee  may  delegate  participation  in  such  calls  to other  representatives  of  Lessee  who  are  appropriate  to  participate  in  discussions  of  the  operation  and  performance  of  the Terminal  System. 45 26.8  Accord  and  Satisfaction  . (a)  Lessor  .  Acceptance  by  Lessor  of  any  partial  payment  of  any  amount  payable  by  Lessee  hereunder  shall  not  constitute an  accord  and  satisfaction  by  Lessor  of  any  of  Lessee’s  obligations  hereunder  and  Lessor  shall  be  entitled  to  collect  from Lessee  the  balance  of  any  amount  remaining  due. (b)  Lessee  .  Acceptance  by  Lessee  of  any  partial  payment  of  any  amount  due  from  Lessor  hereunder  shall  not  constitute an  accord  and  satisfaction  by  Lessee  of  any  of  Lessor’s  obligations  hereunder  and  Lessee  shall  be  entitled  to  collect  from Lessor  the  balance  of  any  amount  remaining  due. 26.9  Prevailing  Party  .  If  any  action  at  law  is  necessary  to  enforce  or  interpret  the  terms  of  this  Lease,  the  prevailing party  shall  be  entitled  to  reasonable  attorneys’  fees  and  costs  of  the  proceeding  up  to  and  including  all  trial  and  appellate levels  in  addition  to  any  other  relief  to  which  it  may  be  entitled.  If  any  action  in  equity  is  necessary  to  enforce  or  interpret  the terms  of  this  Lease,  the  prevailing  party  shall  be  entitled  to  reasonable  attorneys’  fees  and  costs  up  to  and  including  all  trial and  appellate  levels  in  addition  to  any  other  relief  to  which  it  may  be  entitled.  For  purposes  of  this  Section,  a  party  will  be considered  to  be  the  “prevailing  party”  if  (a)  such  party  initiated  the  litigation  and  substantially  obtained  the  relief  which  it sought  (whether  by  judgment,  voluntary  agreement  or  action  of  the  other  party,  trial,  or  alternative  dispute  resolution process),  (b)  such  party  did  not  initiate  the  litigation  and  either  (i)  received  a  judgment  in  its  favor,  or  (ii)  did  not  receive judgment  in  its  favor,  but  the  party  receiving  the  judgment  did  not  substantially  obtain  the  relief  which  it  sought,  or  (c)  the other  party  to  the  litigation  withdrew  its  claim  or  action  without  having  substantially  received  the  relief  which  it  was  seeking. 26.10  Confidentiality  . (a)  General  Confidentiality  Provisions  .  Lessor  shall,  and  shall  cause  any  Person  receiving  Confidential  Information directly  or  indirectly  from  Lessor,  to  hold  all  Confidential  Information  in  strict  confidence.  Lessor  may  (i)  disclose Confidential  Information  only  to  its  direct  and  indirect  owners  and  prospective  owners,  Lessor  Lenders  and  prospective Lessor  Lenders,  and  any  prospective  purchaser  of  the  Leased  Property  and,  on  a  need  to  know  basis,  to  their  respective Affiliates,  directors,  officers,  employees,  accountants,  legal  counsel  and  other  advisors  who  are  involved  in  the  administration, analysis  and  accounting  for  this  Lease,  and  (ii)  in  the  event  Lessee  is  no  longer  the  operator  of  the  Leased  Property,  disclose  to a  successor  operator  of  the  Terminal  System  and  its  advisors  and  consultants  the  Records  and  such  other  portions  of  the Confidential  Information  as  are  necessary  or  prudent  to  permit  them  to  safely  and  effectively  manage  and  operate  the  Leased Property,  provided  that  in  the  case  of  both  subsections  (i  )  and  (  ii  ),  Lessor  shall  be  responsible  for  the  compliance  by  each such  Person  to  whom  disclosure  is  made  with  the  confidentiality  provisions  of  this  Section  26.10  (including  the acknowledgments  and  stipulations  under  subsection  (b)    of  this  Section),  and  Lessor  shall  remain  liable  for  any  breach  of  the provisions  of  this  Section  by  any  such  Person.  Neither  Lessor  nor  any  Person  to  whom  disclosure  is  made  pursuant  to  this subsection  (a)    may  disclose  Confidential  Information  to  any  other  Person  or  entity  except  (A)  to  the  extent  required  by  any regulatory  authority,  (B)  to  the  extent  required  by  applicable  laws  or  regulations  or  by  subpoena  or  similar  legal  process,  in each  case  after  adequate  notice  to  Lessee  in  order  to  allow  Lessee  to  seek  a  protective  order  or  other  protection  therefor, (C)  with  the  prior  written  consent  of  Lessee,  (D)  to  the  extent  such  Information  becomes  publicly  available  other  than  as  a result  of  a  breach  of  this  Section,  or  (E)  to  the  extent  disclosure  of  such  Confidential  Information  is  necessary  or  appropriate pursuant  to  the  provisions  of  the  federal  securities  laws  or  the  rules  or  regulations  promulgated  thereunder.  For  the  avoidance of  doubt,  nothing  contained  in  this  Section  26.10  shall  limit  the  ability  of  Lessee  or  any  of  its  Affiliates  to  disclose Confidential  Information. 46 (b)  Survival,  Specific  Performance  and  Equitable  Remedies  .  The  obligations  under  this  Section  26.10  of  Lessor,  and  of all  Persons  to  whom  Confidential  Information  is  disclosed,  shall  survive  the  expiration  and  termination  of  this  Lease.  Lessor acknowledges  and  stipulates  (and  all  Persons  to  whom  Confidential  Information  is  disclosed  shall  be  deemed  to  acknowledge and  stipulate)  that  Lessee  may  suffer  irreparable  harm  in  the  event  of  a  breach  of  the  provisions  of  this  Section  26.10  by Lessee,  or  by  a  disclosure  of  Confidential  Information  by  any  other  Person  to  whom  Confidential  Information  is  disclosed hereunder,  in  each  case  for  which  Lessee  has  no  adequate  remedy  at  law.  Therefore,  in  addition  to  all  other  remedies  available pursuant  to  the  terms  of  this  Lease  or  at  law,  Lessee  shall  have  the  right  to  obtain  immediate  injunctive  or  other  equitable relief  upon  a  breach  of  this  Section  26.10  by  Lessor  or  any  other  Person  to  whom  Confidential  Information  is  disclosed. 26.11  Consent  of  Lessor  and  Lessee  .  Unless  specified  otherwise  herein  and  except  for  consents  or  approvals  for  which  a specific  standard  is  expressly  set  forth  herein  (such  as  “not  unreasonably  withheld”,  “sole  discretion”,  etc.)  and  specific provisions  which  describe  the  issues  which  may  be  considered  when  making  or  withholding  approval,  Lessor’s  consent  to  any request  of  Lessee  shall  not  be  unreasonably  withheld,  conditioned,  or  delayed  and  Lessee’s  consent  to  any  request  of  Lessor shall  not  be  unreasonably  withheld,  conditioned,  or  delayed. 26.12  Permitted  Lessee  Contests  .  Lessee  shall  not  be  required  to  pay  any  cost,  expense  or  charge  or  perform  any obligation  so  long  as  Lessee  contests  in  good  faith  and  at  its  own  expense  the  amount  or  validity  thereof  by  appropriate proceedings  which  shall  operate  to  prevent  the  collection  thereof  or  realization  thereon  and  the  sale,  foreclosure  or  forfeiture of  the  Leased  Property  or  any  part  thereof  to  satisfy  the  same,  and  Lessee  shall  have  furnished  any  security  as  may  be  required in  the  applicable  proceeding,  and,  pending  any  such  proceedings,  Lessor  shall  not  have  the  right  to  pay  or  perform  the  same. In  no  event  shall  the  manner  in  which  Lessee  pursues  any  such  contest  exacerbate  in  any  material  respect  the  risk  to  Lessor  of civil  or  criminal  liability,  penalty  or  sanction,  in  addition  to  such  risks  as  may  exist  for  the  matters  that  are  the  subject  of  such contest  prior  to  such  contest,  and  except  for  liabilities,  penalties  or  sanctions  for  which  Lessee  may,  and  in  fact  does,  post  a bond.  Further,  the  manner  in  which  Lessee  pursues  any  such  contest  shall  not  exacerbate  in  any  material  respect  the  risk  to Lessor  of  defeasance  of  its  interest  in  the  Leased  Property  in  addition  to  the  risk  of  such  defeasance  as  may  exist  for  the matters  that  are  the  subject  of  such  contest  prior  to  such  contest  and  except  for  such  risk  which  Lessee  may,  and  in  fact  does, bond  around.  Lessee  shall  use  commercially  reasonable  efforts  to  diligently  prosecute  any  such  contest  to  a  final  conclusion, except  that  Lessee  shall  have  the  right  to  attempt  to  settle  or  compromise  such  contest  through  negotiations  and  to discontinue  any  such  contest  at  any  time.  Lessee  shall  promptly  after  the  final  determination  of  such  contest,  fully  pay  any amounts  determined  to  be  payable  thereon  and/or  fully  perform  any  obligations  to  be  performed  thereon,  together  will  all penalties,  fines,  interest,  costs  and  expenses  resulting  from  such  contest.  Upon  Lessee’s  request,  Lessor  shall  prosecute  such contest,  if  required  by  Applicable  Legal  Requirements,  at  no  cost  or  expense  to  Lessor.  Upon  reasonable  request  of  Lessor  at any  time  or  from  time-­to-­time,  Lessee  shall  provide  a  written  report  to  Lessor  regarding  the  status  of  any  such  contests. 26.13  Waiver  .  Failure  of  either  party  to  complain  of  any  act  or  omission  by  the  other  party,  no  matter  how  long  the same  may  continue,  shall  not  be  deemed  to  be  a  waiver  by  the  party  of  any  of  its  rights  hereunder.  No  waiver  by  either  party  at any  time,  whether  express  or  implied,  of  any  breach  of  any  provision  of  this  Lease  shall  be  deemed  a  waiver  of  a  breach  of  any other  provision  of  this  Lease  or  a  consent  to  any  subsequent  breach  of  the  same  or  any  other  provision.  All  rights  and  remedies which  either  party  may  have  under  this  Lease  or  by  law  upon  a  breach  hereunder  shall  be  distinct,  separate  and  cumulative and  shall  not  be  deemed  inconsistent  with  each  other.  Except  as  and  to  the  extent  this  Lease  provides  that  certain  rights  or 47 remedies  are  limited  or  exclusive,  no  right  or  remedy,  whether  exercised  by  a  party  or  not,  shall  be  deemed  to  be  in  exclusion of  any  other  right  or  remedy  and  any  two  (2)  or  more  or  all  of  such  rights  and  remedies  may  be  exercised  at  the  same  time,  but without  duplication  of  recovery  for  any  such  matter. 26.14  Interpretation  .  If  any  provision  of  this  Lease  or  the  application  of  any  provision  to  any  Person  or  any circumstance  shall  be  determined  to  be  invalid  or  unenforceable,  then  such  determination  shall  not  affect  any  other  provision of  this  Lease  or  the  application  of  such  provision  to  any  other  Person  or  circumstance,  all  of  which  other  provisions  shall remain  in  full  force  and  effect.  It  is  the  intention  of  the  parties  that  if  any  provision  of  this  Lease  is  capable  of  two constructions,  one  of  which  would  render  the  provision  void  and  the  other  of  which  would  render  the  provision  valid,  the provision  shall  have  the  meaning  which  renders  it  valid.  This  Lease  shall  be  interpreted  and  enforced  without  the  aid  of  any canon,  custom  or  rule  of  law  requiring  or  suggesting  construction  against  the  party  drafting  or  causing  the  drafting  of  the provision  in  question. 26.15  No  Derivative  Liability  .  Notwithstanding  anything  set  forth  in  this  Lease  or  otherwise,  no  direct  or  indirect (through  tiered  ownership  or  otherwise)  advisor,  trustee,  director,  officer,  employee,  beneficiary,  shareholder,  participant, partner,  member,  owner,  investor,  representative  or  agent  of  a  party  or  its  applicable  Affiliates  shall  have  any  personal liability,  directly  or  indirectly,  under  or  in  connection  with  this  Lease  or  the  Lessee  Guaranty  or  any  amendment  or amendments  to  any  of  the  foregoing  made  at  any  time  or  times,  heretofore  or  hereafter,  and  the  other  party  and  its  successors and  assigns  and,  without  limitation,  all  other  persons  and  entities,  shall  look  solely  to  the  assets  of  such  party  or  its  applicable Affiliates  for  the  payment  of  any  claim  or  for  any  performance,  and  each  other  party,  on  behalf  of  itself  and  its  successors  and assigns,  hereby  waive  any  and  all  such  personal  liability.  Nothing  hereunder  is  intended  to  limit  the  obligations  of  the  Lessee Guarantors  under  the  Lessee  Guaranty. 26.16  Successors  and  Assigns  .  The  words  “  Lessor  ”  and  “  Lessee  ”  and  the  pronouns  referring  thereto,  as  used  in  this Lease,  shall  mean  where  the  context  requires  or  admits,  the  Persons  named  herein  as  Lessor  and  as  Lessee  respectively,  and (subject  to  the  provisions  hereof  prohibiting  certain  Transfer,  leases,  subleases,  assignments  and  Liens)  their  respective successors  and  assigns,  irrespective  of  whether  singular  or  plural,  masculine,  feminine  or  neuter.  The  agreements  and conditions  to  be  performed  by  Lessor  shall  be  binding  upon  Lessor  and  its  successors  and  assigns  and  shall  inure  to  the benefit  of  Lessee  and  its  successors  and  assigns,  and  the  agreements  and  conditions  to  be  performed  by  Lessee  shall  be binding  upon  Lessee  and  its  successors  and  assigns  and  shall  inure  to  the  benefit  of  Lessor  and  its  successors  and  assigns. 26.17  Rights  of  Third  Parties  .  Except  to  the  extent  set  forth  below,  notwithstanding  anything  contained  in  this  Lease to  the  contrary,  nothing  in  this  Lease,  expressed  or  implied,  is  intended  to  confer  upon  any  Person  other  than  the  parties hereto  or  their  successors  and  permitted  assigns,  or  the  parties’  respective  related  Indemnified  Parties  hereunder  any  rights, remedies,  obligations  or  liabilities  under  or  by  reason  of  this  Lease;;  provided,  that  (a)  a  party  hereto  and  its  respective successors  and  permitted  assigns  will  have  the  right  to  enforce  the  provisions  of  this  Lease  on  its  own  behalf  or  on  behalf  of any  of  its  related  Indemnified  Parties  (but  shall  not  be  obligated  to  do  so)  and  (b)  any  Lessor  Lender  is  an  intended  third-­party beneficiary. 26.18  No  Offer;;  Entire  Agreement  .  This  Lease  is  transmitted  for  examination  only  and  does  not  constitute  an  offer  to lease  and  shall  become  effective  only  upon  execution  and  unconditional 48 delivery  by  Lessor  and  Lessee  and  delivery  of  the  Lessee  Guaranty  required  hereby.  This  Lease  represents  the  entire agreement  between  the  parties  with  respect  to  the  subject  matter  hereof,  and  no  oral  statements  or  representations  or  prior written  matter  not  contained  in  this  Lease  shall  have  any  force  or  effect.  This  Lease  shall  not  be  modified  in  any  way  except by  a  writing  subscribed  by  both  parties. 26.19  Headings  .  The  headings  for  the  various  articles  and  sections  of  this  Lease  are  used  only  as  a  matter  of convenience  for  reference  and  are  not  to  be  considered  a  part  of  this  Lease  or  used  in  determining  the  intent  of  the  parties  to this  Lease. 26.20  Counterparts  .  This  Lease  may  be  executed  in  one  or  more  counterparts,  any  one  or  all  of  which  shall  constitute one  and  the  same  instrument. 26.21  Governing  Law;;  Venue;;  Service  of  Process;;  Waiver  of  Jury  Trial  . (a)  THIS  LEASE  AND  ANY  DISPUTES,  CLAIMS  OR  CONTROVERSY  ARISING  OUT  OF  OR  RELATING  TO  THIS LEASE  (WHETHER  SOUNDING  IN  CONTRACT  OR  TORT  LAW)  SHALL  BE  GOVERNED  BY  THE  LAW  OF  THE  STATE OF  OREGON  WITHOUT  REGARD  TO  CONFLICT  OF  LAW  PRINCIPLES. (b)  EACH  OF  LESSOR  AND  LESSEE  IRREVOCABLY  AND  UNCONDITIONALLY  SUBMITS,  FOR  ITSELF  AND  ITS PROPERTY,  TO  THE  NON-­EXCLUSIVE  JURISDICTION  OF  ANY  OREGON  STATE  COURT  OR  FEDERAL  COURT  OF THE  UNITED  STATES  OF  AMERICA  SITTING  IN  THE  STATE  OF  OREGON  AND  ANY  APPELLATE  COURT  FROM  ANY THEREOF,  AND  EACH  OF  THE  PARTIES  HERETO  HEREBY  IRREVOCABLY  AND  UNCONDITIONALLY  AGREES  THAT ALL  CLAIMS  IN  RESPECT  OF  ANY  SUCH  ACTION  OR  PROCEEDING  MAY  BE  HEARD  AND  DETERMINED  IN  SUCH STATE  OR,  TO  THE  EXTENT  PERMUTED  BY  LAW,  IN  SUCH  FEDERAL  COURT.  EACH  OF  THE  PARTIES  HERETO AGREES  THAT  A  FINAL  JUDGMENT  IN  ANY  SUCH  ACTION  OR  PROCEEDING  SHALL  BE  CONCLUSIVE  AND  MAY BE  ENFORCED  IN  OTHER  JURISDICTIONS  BY  SUIT  ON  THE  JUDGMENT  OR  IN  ANY  OTHER  MANNER  PROVIDED  BY LAW. (c)  EACH  OF  LESSOR  AND  LESSEE  HEREBY  IRREVOCABLY  CONSENTS  TO  SERVICE  OF  PROCESS  BY  MAIL, PERSONAL  SERVICE  OR  IN  ANY  OTHER  MANNER  PERMITTED  BY  APPLICABLE  LEGAL  REQUIREMENTS,  AT  THE ADDRESS  SPECIFIED  IN  ARTICLE  XXIV  HEREOF. (d)  EACH  OF  LESSOR  AND  LESSEE  HEREBY  AGREES  TO  WAIVE  ITS  RESPECTIVE  RIGHTS  TO  A  JURY  TRIAL OF  ANY  CLAIM  OR  CAUSE  OF  ACTION  BASED  UPON  OR  ARISING  HEREUNDER  OR  ANY  DEALINGS  BETWEEN THEM  RELATING  TO  THE  SUBJECT  MATTER  OF  THIS  LEASE,  INCLUDING  CONTRACT  CLAIMS,  TORT  CLAIMS, BREACH  OF  DUTY  CLAIMS  AND  ALL  OTHER  COMMON  LAW  AND  STATUTORY  CLAIMS.  EACH  PARTY  HERETO (I)  CERTIFIES  THAT  NO  REPRESENTATIVE,  AGENT  OR  ATTORNEY  OF  ANY  OTHER  PARTY  HAS  REPRESENTED, EXPRESSLY  OR  OTHERWISE,  THAT  SUCH  OTHER  PARTY  WOULD  NOT,  IN  THE  EVENT  OF  LITIGATION,  SEEK  TO ENFORCE  THE  FOREGOING  WAIVER,  AND  (II)  ACKNOWLEDGES  THAT  IT  AND  THE  OTHER  PARTIES  HERETO HAVE  BEEN  INDUCED  TO  ENTER  INTO  THIS  LEASE  BY,  AMONG  OTHER  THINGS,  THE  MUTUAL  WAIVERS  AND CERTIFICATIONS  IN  THIS  SECTION.  EACH  PARTY  HERETO  FURTHER 49 WARRANTS  AND  REPRESENTS  THAT  IT  HAS  REVIEWED  THIS  WAIVER  WITH  ITS  LEGAL  COUNSEL  AND  THAT  IT KNOWINGLY  AND  VOLUNTARILY  WAIVES  ITS  JURY  TRIAL  RIGHTS  FOLLOWING  CONSULTATION  WITH  LEGAL COUNSEL. 26.22  Time  of  the  Essence  .  TIME  IS  OF  THE  ESSENCE  AS  TO  ANY  ACT  TO  BE  PERFORMED  WITHIN  A SPECIFIC  TIME  FRAME  UNDER  THIS  LEASE  . 26.23  Estoppel  Certificates  . (a)  Lessee  agrees  upon  not  less  than  fifteen  (15)  days  prior  notice  by  Lessor  or  any  Lessor  Lender  to  execute, acknowledge  and  deliver  to  Lessor  or  the  Lessor  Lender  a  statement  in  writing  by  Lessee  in  substantially  the  form  of Exhibit  G  .  If  Lessee  is  required  to  provide  such  certificate  more  than  twice  in  any  twelve  (12)  month  period,  Lessor  shall  pay Lessee  a  processing  fee  of  $500  for  each  additional  certificate  requested  in  such  twelve  (12)  month  period. (b)  Lessor  agrees  upon  not  less  than  fifteen  (15)  days  prior  notice  by  Lessee  to  execute,  acknowledge  and  deliver  to Lessee  or  to  such  party  as  Lessee  may  designate  a  statement  in  writing  by  Lessor  similar  to  the  form  of  Exhibit  G  (with appropriate  changes  to  reflect  that  it  is  being  signed  by  Lessor).  If  Lessor  shall  be  required  to  provide  such  certificate  more than  twice  in  any  twelve  (12)  month  period,  Lessee  shall  pay  Lessor  a  processing  fee  of  $500  for  each  additional  certificate requested  in  such  twelve  (12)  month  period. ARTICLE  XXVII. OTHER  AGREEMENTS  OF  LESSOR  AND  LESSEE 27.1  Additional  Lessor  Covenants  .  At  all  times  during  the  Term,  Lessor  covenants  and  agrees  as  follows: (a)  Notice  of  Lessor  Loan  Default  .  Lessor  shall  promptly  advise  Lessee  in  writing  of  any  breach,  default  or  failure  of performance  under  any  material  agreement  to  which  Lessor  is  a  party,  and  immediately  provide  Lessee  a  copy  of  any  written notice  of  default  or  intent  to  enforce  remedies  given  by  or  on  behalf  of  any  Lessor  Lender. (b)  Maintenance  of  Existence  .  Lessor  shall  at  all  times  (i)  maintain  its  existence  in  good  standing  under  the  laws  of  the State  of  its  organization,  (ii)  be  qualified  to  do  business  in  the  State  of  Oregon  to  the  extent  Lessor  is  required  to  so  under Applicable  Legal  Requirements,  and  (iii)  except  to  the  extent  it  is  prohibited  by  this  Lease  from  doing  so  without  Lessee’s consent  and  Lessee  fails  to  give  such  consent,  maintain  and  renew  all  of  its  respective  rights,  powers,  privileges  and  franchises except  where  the  failure  to  do  so  would  not  have  a  material  adverse  effect  on  Lessor’s  ability  to  perform  its  obligations  under this  Lease  or  on  Lessee’s  ability  to  possess  and  operate  the  Leased  Property  in  accordance  with  the  terms  and  conditions  of this  Lease. (c)  Lessor  Compliance  with  Law;;  Permitted  Lessor  Contests  .  Subject  to  Section  11.1  hereof,  Lessor  shall  comply  with all  Applicable  Legal  Requirements  relating  to  Lessor  except  where  (i)  Lessee  is  contesting  such  Applicable  Legal Requirements  in  accordance  with  a  Permitted  Lessee  Contest,  (ii)  such  compliance  could  reasonably  be  expected  to  impair  in any  material  respect  Lessee’s  use  or  operation  of  the  Leased  Property  unless  Lessee  consents  to  such  compliance,  which consent  shall  not  be  unreasonably  withheld,  delayed  or  conditioned,  or  (iii)  such  failure  to  do  so  results  from  a  Lessee 50 Event  of  Default.  For  purposes  hereof,  “  Permitted  Lessor  Contest  ”  means  a  Lessor  contest  of  (A)  an  Applicable  Legal Requirement,  or  (B)  a  Lien  on  Lessor’s  right,  title  or  interest  in  this  Lease,  in  either  case  in  good  faith  and  at  its  own  expense by  appropriate  proceedings  which  shall  operate  to  prevent  the  immediate  application  of  such  Applicable  Legal  Requirements or  Lien  and  the  sale,  foreclosure  or  forfeiture  of  the  Leased  Property  or  the  Lessor’s  interest  in  this  Lease  or  Lessee’s  leasehold estate  therein  or  hereunder  or  Lessee’s  use  or  operation  of  the  Leased  Property,  or  any  part  thereof.  In  no  event  shall  any Permitted  Lessor  Contest  be  undertaken  in  violation  of  Article  XI  .  Further,  in  no  event  shall  the  manner  in  which  Lessor pursues  any  such  contest  exacerbate  in  any  material  respect  the  risk  to  Lessee  of  civil  or  criminal  liability,  penalty  or  sanction, in  addition  to  such  risks  as  may  exist  for  the  matters  that  are  the  subject  of  such  contest  prior  to  such  contest,  and  except  for liabilities,  penalties  or  sanctions  for  which  Lessor  may,  and  in  fact  does,  post  a  bond.  Further,  the  manner  in  which  Lessor pursues  any  such  contest  shall  not  exacerbate  in  any  material  respect  the  risk  to  Lessor  of  defeasance  of  its  interest  in  the Leased  Property  or  impair  its  use  or  operation  thereof  in  addition  to  the  risk  of  such  defeasance  or  impairment  as  may  exist  for the  matters  that  are  the  subject  of  such  contest  prior  to  such  contest  and  except  for  such  risk  which  Lessor  may,  and  in  fact does,  bond  around.  Lessor  shall  use  commercially  reasonable  efforts  to  diligently  prosecute  any  such  contest  to  a  final conclusion,  except  that  Lessor  shall  have  the  right  to  attempt  to  settle  or  compromise  such  contest  through  negotiations  and to  discontinue  any  such  contest  at  any  time.  Lessor  shall  promptly  after  the  final  determination  of  such  contest,  fully  pay  any amounts  determined  to  be  payable  thereon  and/or  fully  perform  any  obligations  to  be  performed  thereon,  together  will  all penalties,  fines,  interest,  costs  and  expenses  resulting  from  such  contest.  Lessor  shall  prosecute  any  such  Permitted  Lessor Contest  at  no  cost  or  expense  to  Lessee.  Upon  reasonable  request  of  Lessee  at  any  time  or  from  time-­to-­time,  Lessor  shall provide  a  written  report  to  Lessor  regarding  the  status  of  any  such  contests. (d)  Temporary  Office  Lease  .  Pursuant  to  its  acquisition  of  the  Leased  Property,  Lessor  has  agreed  to  lease  temporary office  space  to  Paramount  of  Oregon,  LLC  as  provided  for  in  Exhibit  H  .  Lessee  hereby  consents  to  such  temporary  office Lease  per  the  terms  described  in  Exhibit  H  . 27.2  Additional  Lessee  Covenants  .  At  all  times  during  and  after  the  Term,  Lessee  covenants  and  agrees  as  follows: (a)  Costs  of  Acquisition  .  Lessee  shall  pay  or  reimburse  Lessor  for  all  costs  incurred  by  Lessor  (other  than  the  purchase price)  in  connection  with  Lessor’s  acquisition  of  the  Leased  Property  under  the  PSA.  Such  costs,  shall  include,  but  shall  not  be limited  to,  all  title  insurance  or  endorsement  fees,  survey  costs,  franchise  fees,  and  transfer  taxes  in  connection  with  the acquisition,  etc. (b)  Consents  to  Own  and  Operate  .  Lessee  agrees  to  obtain  any  and  all  consents  necessary  to  operate  (or  for  Lessor  to own)  the  Leased  Property  as  a  Terminal  System. (c)  Contracts  or  Permits  .  Lessee  agrees  to  obtain  any  and  all  contracts  and  permits  necessary  for  Lessor  to  own  and  for Lessee  to  operate  the  Leased  Property  as  a  Terminal  System. (d)  Transfer  Taxes  .  Lessee  shall  pay  any  and  all  so-­called  transfer  taxes  associated  with  this  Lease. (e)  Liabilities  .  Lessee  shall  pay,  reimburse  or  otherwise  indemnify  Lessor  as  to  any  and  all  liabilities  related  to pre-­closing  ownership  or  operation  of  the  Leased  Property  by  Lessor’s  predecessors  in  title. [Remainder  of  Page  Intentionally  Blank Signature  Pages  Follow] 51 IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  this  Lease  to  be  duly  executed  as  of  the  date  first  above  written. LESSOR: LCP  Oregon  Holdings,  LLC, a  Delaware  limited  liability  company By:     Name:     Title:     LESSEE: Arc  Terminals  Holdings  LLC, a  Delaware  limited  liability  company By:     Name:     Title:     Schedule  1 Minimum  Rent Month(s)     Minimum  Rent*   1/1/14 2/1/14 3/1/14 4/1/14 5/1/14 6/1/14 7/1/14 8/1/14 9/1/14 10/1/14 11/1/14 12/1/14 1/1/15  –  the  month  preceding  the  first  Adjustment  Date                                                     $ $ $ $ $ $ $ $ $ $ $ $ $ * As  adjusted  per  Section  10.3  of  the  Lease. 219,442     219,442     219,442     219,442     219,442     219,442     219,442     398,355     398,355     398,355     398,355     398,355     398,355