LEASE Date: 5Tl/O/l//5[ LESSOR: LESSEE: PORT OF TACOMA NORTHWEST INNOVATION WORKS, A Washington port district TACOMA, LLC One Sitcum Way (98421) 13215 SE. Mill Plain Blvd, Suite 08331 PO Box 1837 Vancouver, Washington 98684 Tacoma WA 98401 919.605.5360 253.383.5841 1. Premises: Lessor hereby leases and grants to Lessee, and Lessee hereby leases and accepts from Lessor, on the terms and conditions stated in this Lease, the following described area and use rights in the Port of Tacoma, Tacoma, Pierce County, Washington (collectively the "Premises?): 1.1 Primam Premises: Approximately 90 acres of land located at 3400 Taylor Way, Tacoma, Pierce County, Washington 98421, as shown and described in EXHIBITA attached hereto (?Primary Premises?). The actual area of the Primary Premises shall be determined by a survey to be completed during the Feasibility Period pursuant to Section 1.3 below. 1.2 Non-Exclusive Preferential Use Area: The non-exclusive preferential use of the East Blair 1 Terminal (?Non-Exclusive Preferential Use Area?), containing approximately 16 acres as shown and described in EXHIBIT A attached hereto, for berthing, loading, and discharging of vessels with Permitted Products (as de?ned below), the conveyance of such Permitted Products to and from the Non-Exclusive Preferential Use Area and for the installation and operation of a pipeline connecting the Non-Exclusive Preferential Use Area with the Primary Premises for the conveyance of such Permitted Products. Preferential Use is defined as the use of the pier and adjoining area for the account of the Lessee (and its contractors, suppliers and customers in connection with Lessee?s business) over other users (Port of Tacoma included) so as not to interrupt the business of the Lessee. When the pier and/or adjoining area is not in use by Lessee (or its contractors, suppliers or customers), the Port of Tacoma or other customers of the Port of Tacoma shall have an option to berth a vessel, provided that they do not interfere with or delay any scheduled usage by Lessee (or its contractors, suppliers or customers). Any improvements or modi?cations to the Non-Exclusive Preferential Use Area need to be pre-approved by the Lessor prior to construction. Lessee?s non-exclusive preferential use right shall be subject to the superior right of the United States military to use the berth and East Blair 1 Terminal (EB-1) for military purposes. Lessee shall report all barge and vessel activity in advance to the Port of Tacoma wharfinger in accordance with the Waterway Management Program for the Port of Tacoma. Lessor shall use reasonable commercial efforts to schedule military usage of the Non-Exclusive Preferential Use Area and the supporting infrastructure in a manner that minimizes disruption of Lessee?s business 1 and use of the Non-Exclusive Preferential Use Area. To the extent practical, Lessor will endeavor to consult with Lessee prior to scheduling military usage of EB-1. If at any time during this Lease, Lessee?s operations on, or use of, the Non-Exclusive Preferential Use Area will be suspended for 30 days or more, then Lessee shall immediately notify Lessor in writing stating the anticipated duration of such suspension, and shall provide written updates to Lessor of any and all changes in the anticipated duration of such suspension. 1.3 Actual Acreage. The actual acreage of the Premises (Primary Premises and Non-Exclusive Preferential Use Area) shall be determined by a survey to be conducted by Lessee, at Lessee?s expense, during the Feasibility Period (as defined below), which survey shall be subject to review and approval by Lessor and Lessee. Construction Period Rent and Rent for the Primary Premises and the Non-Exclusive Preferential Use Area shall be based on the actual acreage of the Primary Premises and the Non-Exclusive Preferential Use Area, except as provided in Section 37. 2. Use Rights in Addition to Premises: In connection with the operation of Lessee's business on the Premises, Lessee will require certain easements, licenses, or other rights as described below ("Usage Rights?). To the extent they are to be obtained from the City of Tacoma and/or other third parties, Lessee will be responsible for obtaining them at Lessee?s sole cost and expense. To the extent they involve land or improvements owned by Lessor (?Usage Rights Area"), Lessor shall grant to Lessee the Usage Rights described below during the Feasibility Period subject to ?nal mutual agreement between Lessor and Lessee regarding the location and terms of such grant thereof during the Feasibility Period, and subject to all required agency authorizations. Any Usage Rights agreement between the Lessor and Lessee shall be documented by a separate written agreement to be negotiated by the parties and subject to all required agency authorizations. If the parties are unable to reach an agreement with respect to the Usage Rights during the Feasibility Period, Lessee shall have the right to terminate this Lease in accordance with Section 3.3 hereof. The existence and location of the Usage Rights shall also be memorialized in the Memorandum of Lease to be executed by the parties and recorded during the Feasibility Period. 2.1 Pipeline Easements: Lessee will use its commercially reasonable efforts to obtain, on terms and conditions acceptable to Lessee in Lessee?s sole discretion, a non-exclusive pipeline easement (?Pipeline Easement?) from the City of Tacoma and certain other third parties for the purpose of installing, operating, inspecting, maintaining, repairing, and removing multiple pipelines and associated ?xtures and equipment along Taylor Way and other properties not owned by Lessor. In addition, Lessor shall grant to Lessee an associated Pipeline Easement ("Port Pipeline Easement"), as generally shown in EXHIBIT B, across land owned by the Lessor, subject to ?nal mutual agreement between Lessor and Lessee regarding the location and terms thereof during the Feasibility Period and subject to all required agency authorizations. The terms of such agreement with Lessor shall include, but shall not be limited to, the following: the Port Pipeline Easement shall terminate no later than the termination of this Lease; an annual fee subject to annual adjustment on the same date and in the same percentage as de?ned in Section 4.3; Lessee at its sole cost 2 140417Lease(NWlW-v5) and expense shall be responsible for securing all agency and other permits and approvals required for such easement and for all construction related thereto including, but not limited to, mitigation and remediation required by any agency as a result of the construction. and for completing and performing all construction, mitigation, remediation, and other conditions required by any agency as a result of the construction (for historical contamination in the Port Pipeline Easement, remediation by Lessee is limited to removal and authorized disposition of contaminated soil encountered or exposed during the construction and which was or will be impacted by the construction); Lessee at its sole cost and expense shall be required to perform all construction, maintenance, repairs and monitoring related to its pipeline and equipment located in the Pipeline Easement and Port Pipeline Easement; Lessee at its sole cost and expense shall be responsible for removal and authorized disposition of contaminated soil encountered or exposed as a result of Lessee?s construction and which was or will be impacted by the construction, including historical contamination, and taking any other reasonable actions required to keep from exacerbating any historical contamination as a result of the construction; Lessee at its sole cost and expense shall be responsible for monitoring related to historical contamination that is or may be impacted by Lessee?s pipeline or equipment or its construction or installation, if and to the extent such monitoring is required by any agency in connection with or arising from such construction and/or Lessee?s activities or improvements; (9) Lessee shall relocate or remove the Port Pipeline Easement (and Pipeline Easement to the extent then located on property owned or controlled by the Port) and all improvements and equipment located therein if required by Lessor based on future redevelopment, provided that the costs of such relocation or removal shall be paid by Lessor; and at the end of the term, Lessee at its sole cost and expense shall be required to remove all improvements and product from the Usage Rights Area for the Port Pipeline Easement (and Pipeline Easement to the extent then located on property owned or controlled by the Port), perform all remediation which is required to be performed by Lessee under this Lease, and restore the property to its condition prior to the commencement of the Port Pipeline Easement (and Pipeline Easement to the extent then located on property owned or controlled by the Port). Except as otherwise provided above, Lessor, at its sole cost and expense, shall be required to perform all monitoring and remediation relating to historical contamination which predates this Lease (except to the extent that Lessee's construction activities exacerbate any historical contamination, and except for removal and disposition of contaminated soil encountered or exposed as a result of Lessee?s construction activities and which was or will be impacted by the construction). The initial fees for the Port Pipeline Easement shall be $7.00 per lineal foot per year, subject to annual adjustment on the same date and in the same percentage as defined in Section 4.3. 2.2 Stormwater Easement: Stormwater discharge from the Primary Premises shall be as generally shown on EXHIBIT hereto. Lessee shall be responsible for constructing the stormwater system for the Primary Premises, and for monitoring, maintaining, and maintaining the permit for, the stormwater system for the Primary Premises, and for complying with all requirements related thereto. If required, and subject to Lessor?s review and approval of Lessee?s descriptions, plans, and specifications for Lessee?s stormwater system for the Primary Premises, which approval 3 140417Lease(NWlw-v5) shall not be unreasonably withheld, conditioned or delayed, Lessor will grant Lessee a non-exclusive easement during the Term of this Lease for stormwater discharge from the Primary Premises (?Stormwater Easement?). The Stormwater Easement will be documented by a separate easement agreement on mutually agreeable terms to be negotiated and executed during the Feasibility Period, and subject to all required agency authorizations. The terms of such Stormwater Easement for the Primary Premises shall include, but shall not be limited to, the following: the Stormwater Easement shall terminate no later than the termination of this Lease; no fee shall be charged for the Stormwater Easement; Lessee shall be responsible for the repair and maintenance of those portions of the stormwater system, drain lines, and outfalls that serve exclusively Lessee?s Premises, and Lessor shall be responsible for the repair and maintenance of those portions of the stormwater system, drain lines, and outfalls that do not serve exclusively Lessee?s Premises; Lessee at its sole cost and expense shall be responsible for securing all agency and other permits required for such easement and the construction related thereto including, but not limited to, mitigation and remediation required by any agency as a result of the construction, and for completing and performing all construction, mitigation, remediation. and other conditions required by any agency as a result of the construction (for historical contamination, remediation by Lessee is limited to removal and authorized disposition of contaminated soil encountered or exposed during the construction and which was or will be impacted by the construction); Lessee at its sole cost and expense shall be required to perform all construction, maintenance, repairs and monitoring related to its stormwater pipeline for the Primary Premises and the related equipment; Lessee at its sole cost and expense shall be responsible for removal and authorized disposition of contaminated soil encountered or exposed as a result of Lessee?s construction and which was or will be impacted by the construction, including historical contamination, and taking any other reasonable actions required to keep from exacerbating any historical contamination as a result of the construction; (9) Lessee at its sole cost and expense shall be responsible for monitoring related to historical contamination that is or may be affected by Lessee?s stormwater system (including but not limited to pipelines, catchbasins, and other appurtenances) or its construction or installation, if and to the extent such monitoring is required by any agency; except as othenNise provided above, Lessor, at its sole cost and expense, shall be required to perform all monitoring and remediation relating to historical contamination which predates this Lease (except to the extent that Lessee?s construction activities exacerbate any historical contamination, and except for removal and disposition of contaminated soil encountered or exposed as a result of Lessee?s construction activities and which was or will be impacted by the construction); and Lessee shall relocate or remove the easement and all improvements and equipment located therein if required by Lessor based on future redevelopment, provided that the costs of such relocation or removal shall be paid by Lessor. Lessee shall also be responsible for monitoring, maintaining, and maintaining the permit for, the stormwater system for the Non-Exclusive Preferential Use Area, and for complying with all requirements related thereto. Lessor shall reimburse Lessee for Lessee?s reasonable costs for monitoring of the Non-Exclusive Preferential Use Area during any Third Party Usage of such area, and for any reasonable costs or damages incurred by Lessee as a result of such Third Party Usage. Lessee shall also be responsible for constructing the stormwater system for the EB-1 4 140417Lease(NWlW-v5) Access Road (de?ned below), and after its completion by Lessee and acceptance by Lessor, Lessor shall be responsible for monitoring, maintaining, and maintaining the permit for, the stormwater system for the EB-1 Access Road, and for complying with all requirements related thereto, provided that such system is designed and constructed as a completely separate system; othenNise, Lessor shall only be responsible for such system up to the point that it connects to another system. 2.3 EB-1 Access Road: The parties acknowledge that Lessee?s development of the site may interfere with access to other sites at the Port of Tacoma. Lessee at its sole cost and expense shall construct as part of Lessee's Tenant Improvements (as defined below) an access road around the Premises and to the property line of the parcel on which the Primary Premises is located, to provide alternative access routes to these sites, as generally shown in EXHIBIT hereto Access Road?) which construction will be in accordance with the standards as de?ned in EXHIBIT hereto. Lessee?s construction of the EB-1 Access Road shall be subject to Lessor's prior written approval of all plans and specifications in accordance with Lessor?s Tenant Improvement Procedure which approval shall not be unreasonably withheld, conditioned or delayed. Lessee?s construction of the EB-1 Access Road shall be completed during the Construction Period (as de?ned in Section 3.4 below). Lessor, at Lessor's expense, shall have the right, during construction of the EB-1 Access Road and at any time and from time to time thereafter, to add utilities, communications, and other lines, wires, facilities, equipment, and appurtenances; provided however, that any such additions by Lessor shall be subject to Lessee's review to ensure such additions are compatible with Lessee?s existing and planned developments and existing and planned operations on the Primary Premises. Upon acceptance of the EB-1 Access Road by Lessor, which approval shall not be unreasonably withheld, conditioned or delayed, Lessor shall be responsible for maintaining the EB-1 Access Road and the storm drain system related to the EB-1 Access Road (as stated in Section 2.2 above), and for complying with all requirements related thereto. 2.4 Third Party Usage: The provisions of this Lease and all exhibits thereto regarding indemnity, repair, maintenance and insurance are not intended to impose liability or responsibility on Lessee for any loss or damage resulting from any usage of the Primary Premises during the Feasibility Period or the Non-Exclusive Preferential Use Area or any of the nonexclusive Usage Rights Areas herein granted or Alexander Avenue by third parties or their employees, agents, contractors, subcontractors, customers, suppliers, sub-tenants, licensees, invitees, visitors or guests for purposes unrelated to this Lease or Lessee?s business (?Third Party Usage"), except to the extent caused by the negligence or other wrongful act or omission of Lessee or its employees, agents, contractors, subcontractors, customers, suppliers, subtenants, licensees, invitees, visitors, or guests. The term ?Third Party Usage" does not apply to Lessee's employees, agents, contractors, subcontractors, customers, suppliers, sub-tenants, licensees, invitees, visitors or guests acting under or for Lessee in the context of Lessee's business or related to this Lease or Lessee?s business. With the exception of the EB-1 Access Road and associated stormwater system, no third party shall have the right to utilize any Tenant Improvements, or any of Lessee?s equipment or property 5 140417Lease(NWlW-v5) which may be located at the Non?Exclusive Preferential Use Area or on any Usage Rights Area. 2.5 Alexander Avenue. If Alexander Avenue is vacated by the City of Tacoma after the effective date of this Lease, then Lessor and Lessee will consider amending this Lease to add part or all of the land received by Lessor in such vacation to the Premises, subject to mutual agreement regarding all terms of such amendment. 2.6 Other Usage Rights: If Lessee requires additional easements, licenses, or other usage rights on Lessor?s property in connection with Lessee's business on the Premises, then Lessor agrees to consider and enter into good faith negotiations with Lessee regarding the same. 3. Term: 3.1 Initial Term: The term of this Lease shall commence on May 1, 2014 (?Commencement Date?), subject to Lessor's receipt of the ?rst month of Feasibility Period Rent, security deposits in a form acceptable to Lessor, and proof of insurance in a form acceptable to Lessor. The term (as same may be extended, ?Term") of this Lease shall be for a period of thirty (30) years and shall terminate on April 30, 2044, subject to early termination during the Feasibility Period as defined below, subject to extension as described below, and subject to earlier termination pursuant to this Lease. 3.2 Extension Term: The term of this Lease may be extended for one (1) additional period of twenty ?ve (25) years, on and subject to the following conditions: The extension shall be subject to the mutual agreement of Lessor and Lessee, each acting in its sole and absolute discretion. (ii) The extension term shall be on the same terms and conditions as the Initial Term, except that Rent shall continue to increase pursuant to Section 4 below, and except as mutually agreed to by the parties. Lessee shall notify Lessor in writing by certi?ed mail of Lessee?s intent to extend the Lease no later than three (3) years prior to the expiration of the Initial Term (?Extension Notice?). (iv) Lessee shall not be entitled to extend this Lease if Lessee is in default (after applicable notice and cure time) of the performance of its obligations under this Lease or under any Usage Rights or other rights of Lessee related to this Lease at the date notice of extension is due or at the date the extension term is to commence. Lessee shall not be entitled to extend this Lease if Lessee is a corporation, limited liability company, or other entity whose stated duration will expire prior to the end of the extension term. Lessor shall notify Lessee in writing within one (1) year from receipt of an Extension Notice whether or not Lessor intends to extend the Term. 3.3. Feasibility Period: 3.3.1 Lessee acknowledges that some or all of the Premises and Usage Rights Areas are currently in use by others or may be in use by others during the Feasibility Period (as de?ned below). Lessee agrees that it shall not unduly interfere with any such uses during the Feasibility Period. During the initial Term, Lessee shall have the right, commencing on the Commencement Date and continuing for eighteen (18) months after 6 140417Lease(NWIW-v5) the Commencement Date (as the same may be extended, the "Feasibility Period"), to inspect the Premises, obtain all necessary permits, conduct feasibility studies, ?nalize the locations for Usage Rights and terms of the agreements evidencing the Usage Rights and execute same, review title, conduct surveys, verify the berth arrangements and fees, conduct environmental studies and perform other necessary due diligence. Any physically intrusive boring, testing or other activity on the Premises or any Usage Rights Area designated for an easement or other Usage Right shall be subject to Lessee?s prior submittal to Lessor of a written scope of work, which shall be subject to Lessor?s approval prior to any such activity occurring and which approval shall not be unreasonably withheld, delayed or conditioned. 3.3.2 The Feasibility Period may be extended by Lessee by written notice to Lessor on a month to month basis until thirty (30) days after all permits to be obtained by Lessee have been received and for such other period as may be agreed to by the parties in writing; provided that the total Feasibility Period shall not be longer than twenty-four (24) months unless othenivise agreed to by the parties in writing. During the Feasibility Period, the exact locations for all Usage Rights shall be determined and correct legal descriptions substituted for existing Exhibits for the Usage Rights where necessary and the exact acreage of the Premises shall be determined and agreed to between the parties. 3.3.3 Lessee may terminate this Lease upon written notice to Lessor at any time prior to the expiration of the Feasibility Period, but Lessor shall be entitled to retain all Feasibility Period Fees accrued through the termination date and the Feasibility Period Termination Fee described in Section 3.3.4. 3.3.4 If this Lease is terminated on or before expiration of the Feasibility Period, then Lessee shall pay Lessor a Feasibility Period Termination Fee in the amount equal to: $1,800,000, minus the aggregate amount of all Feasibility Period Fee payments previously paid by Lessee to Lessor. The Feasibility Period Termination Fee shall be secured by a letter of credit, cash deposit, or other security acceptable to Lessor in its sole and absolute discretion, in the amount of $1 ,800,000, under Section 5. 3.3.5 If this Lease continues to the Construction Period, then (in addition to Construction Period Rent and full Rent) Lessee shall pay Lessor a Deferred Feasibility Period Fee in installments on the ?rst day of each month during the Construction Period and continuing thereafter for the number of months equal to the number of months in the Feasibility Period, in an amount equal to the difference between $100,000.00 and the amount of the Feasibility Period Fee paid by Lessee for the corresponding month of the Feasibility Period with partial months being prorated in all cases. For illustrative purposes, if the Feasibility Period lasted for a period of 17 months and Lessee made all Feasibility Period Fee payments when due, then for the ?rst 17 months of the Construction Period, the Deferred Feasibility Period Fee payable to Lessor would equal $76,000.00 per month for the ?rst 6 months of the Construction Period ($100,000 - $24,000); $84,000.00 per month for the next 6 months of the Construction Period ($100,000 - $16,000); and (0) $92,000.00 per month for the next 5 months of the Construction Period ($100,000 - $8,000). If the length of 7 140417Lease(NWlW-v5) the Feasibility Period exceeded the length of the Construction Period, then Deferred Feasibility Period Fee payments shall continue after the end of the Construction Period until paid in full. 3.3.6 In addition to the above payments, Lessee shall pay Lessor a Feasibility Period Completion Payment in the amount of $4,000,000, which payment shall be made on the last day of the Construction Period. 3.3.7 If Lessee does not give written notice of termination to Lessor prior to the expiration of the Feasibility Period, then this Lease shall automatically continue. 3.3.8 At any time during the Feasibility Period, Lessee may notify Lessor that the Premises are acceptable for its purposes and that Lessee desires to proceed to the Construction Period. No construction may be commenced on the Premises or any Usage Rights Area until expiration or termination of the Feasibility Period. 3.4 Construction Period: During the initial Term, if Lessee does not terminate this Lease during the Feasibility Period, then the construction period (?Construction Period?) shall commence immediately following the expiration or termination of the Feasibility Period. During the Construction Period, Lessee may construct or cause to be constructed all or a portion of the tenant improvements (?Tenant Improvements") described in the Scope of Development Schedule attached hereto as EXHIBIT E. It is nevertheless anticipated by the parties that construction under the Scope of Development Schedule may continue after the Construction Period has ended and that certain portions of the Tenant Improvements re?ected on the Scope of Development Schedule may be constructed as and when needed after the Construction Period based on customer demand and other business considerations. The Construction Period shall end on the earlier to occur of the delivery of Permitted Product for transport or storage; or (ii) January 1, 2019. Notwithstanding the foregoing or anything else to the contrary, construction on the Non-Exclusive Preferential Use Area shall not commence until July 1, 2018. 4. Rent and Other Fees: 4.1 Feasibility Period: Commencing on the Commencement Date, and on the ?rst day of each month thereafter during the Feasibility Period, Lessee shall pay in advance to Lessor, as consideration for the Feasibility Period under this Lease, $24,000.00 per month for the ?rst six months of the Feasibility Period, $16,000.00 per month for the next six months of the Feasibility Period, and $8,000.00 per month for the remainder of the Feasibility Period, including any extensions, with partial months being prorated in all cases (?Feasibility Period Fee?). The Feasibility Period Fee is not refundable under any circumstances and shall not be applied to any other period or charge. 4.2 Construction Period: Commencing on the ?rst day following the end of the Feasibility Period, except as provided below, and on the first day of each month thereafter during the Construction Period, Lessee shall pay in advance to Lessor, 8 140417Lease(NWIW-v5) rent (?Construction Period Rent?) in the amount of the one-half of the full Rent for the Premises under Section 4.3 below (with partial months being prorated). Notwithstanding the foregoing or anything else to the contrary, construction on, and Construction Period Rent for, the Non-Exclusive Preferential Use Area shall not commence until July 1, 2018. 4.3 Full Rent Commencement: Commencing on the ?rst day following the end of the Construction Period ("Full Rent Commencement Date") and on the ?rst day of each month thereafter during the remaining Term of the Lease, Lessee shall pay in advance to Lessor rent (?Rent?) in the amount of $6,000.00 per acre per month for the Primary Premises, and $8,000.00 per acre per month for the Non-Exclusive Preferential Use Area (with partial months being prorated). Rent shall be automatically adjusted (during the Term and all extensions thereof) effective as of each anniversary of the Full Rent Commencement Date or effective as of each anniversary of the ?rst day of the month following the Full Rent Commencement Date if the Full Rent Commencement Date does not fall on the ?rst day of the month (each such date being a "Rent Adjustment Date") by the percent change over the one (1) year period immediately preceding such date in the Consumer Price Index (CPI) for the Seattle-Tacoma- Bremerton area, All Items, Not Seasonally Adjusted, 1982-84=100, All Urban Consumers (CPI-U), as issued by the US. Department of Labor, Bureau of Labor Statistics, or the successor index or closest comparable index if the above index is no longer published. The ?gure for the month closest to and preceding the Rent Adjustment Date, and the 1 year period based on such month, shall be used if no ?gure is published for the exact date or month described above. The manner of calculating the adjustment is illustrated by the following example: Current CPI Index (December 2013) 241.055 Less previous CPI Index (December 2012) - 237.993 Equals index point change 3.062 Divided by previous CPI Index 237.993 Equals 0.0128659 Result multiplied by 100 100 Percent Change 1.29% The resulting product, or the percent change, rounded to 2 places after the decimal point, shall be multiplied by the existing Rent, and the product thereof shall be added to such Rent to determine the Rent for the one (1) year period immediately following the applicable Rent Adjustment Date. Each adjustment shall be calculated as soon as the figures for the applicable Rent Adjustment Date become available, and shall be effective as of the applicable Rent Adjustment Date. Within thirty (30) days of the date of Lessor?s notice of adjustment after completion of an adjustment calculation, Lessee shall pay to Lessor the amount of any de?ciency in rent paid by Lessee for the period following the subject Rent Adjustment Date, and shall thereafter pay the adjusted rent until receiving the next notice of adjustment from Lessor. 4.4 Leasehold Excise Tax and Rent Payments: All payments by Lessee to Lessor shall be by an electronic funds transfer process satisfactory to the Lessor. 9 140417Lease(NWIW-v5) Washington State leasehold excise tax as now or hereafter assessed (currently assessed at 12.84% of taxable rent) shall be payable to the extent required by law on amounts becoming due during the Term, as the same may be extended, and shall be payable with the or other payment of such amounts. Feasibility Period Fee, Construction Period Rent, and Rent shall be prorated for partial months during the Term. All payments not received when due shall incur a late charge of 1.5% per month of the amount past due. Lessor and Lessee understand that only the Construction Period Rent and Rent for the Primary Premises is subject to leasehold excise tax; however, Lessor and Lessee acknowledge that the issue may be determined otherwise by governmental agencies and courts, and Lessee further acknowledges and agrees that Lessee shall be responsible for payment of any and all leasehold excise tax as now or hereafter assessed. 4.5 Wharfage: In addition to Rent, Lessee shall pay a wharfage fee in the following amount per metric ton of Permitted Products (as defined in Section 6.1 below) other than zinc sulfide as set forth below. a) For volume moved across the East Blair 1 Terminal and outbound from the Port of Tacoma: $2.00 per metric ton up to and including 1.8 million metric tons per calendar year, subject to annual adjustment of the wharfage rate as provided below. (ii) For volume per calendar year above 1.8 million metric tons and up to and including 3.6 million metric tons, the wharfage fee shall be 90% of the then applicable rate under above. For volume per calendar year above 3.6 million metric tons, the wharfage fee shall be 90% of the then applicable rate under (ii) above. b) Lessee shall pay an equivalent fee per metric ton of Permitted Products other than zinc sul?de departing the Primary Premises by any means other than across the East Blair Terminal, or (ii) moved in any vessel to vessel transfer at the East Blair 1 Terminal. c) Wharfage for all other items shall be according to Port of Tacoma Tariff. The above wharfage fee for Permitted Products shall be in lieu of any wharfage fee imposed by Port of Tacoma tariff as currently in effect or as hereafter amended or adopted. Lessee shall report its throughput by calendar month in arrears on or before the third day of the immediately following month, and shall pay to Lessor wharfage fees, and the aforementioned equivalent fee, due on its throughput in arrears on or before the ?fteenth day of the immediately following month. Lessee shall measure and report its throughput based on metered volume handled per day. Wharfage shall be increased on the same dates and in the same percentage as Rent under Section 4.3 above. Payments not received when due shall incur interest at 1.5% per month from the date due until paid in full. Upon request by Lessor made at any time during this Lease and up to 2 years after the termination or expiration of this Lease, Lessor and its representatives are entitled to review all books and records of Lessee related to all volumes of all products handled by Lessee at the Premises and all wharfage paid to Lessor during the term of this Lease. If the review determines that volumes have been understated or wharfage underpaid, then Lessee shall immediately pay the amount underpaid with interest at 1 0 140417Lease(NWlW-v5) 1.5% per month from the date when such payment should have been made until paid in full, plus the reasonable costs and attorney fees related to the review and the collection of amounts due. 4.6 Dockage: Dockage will not be charged by the Port of Tacoma against vessels berthing at East Blair 1 Terminal pursuant to the Tariffs (as de?ned below) if loading or discharging Permitted Products (as de?ned in Section 6.1 below). 4.7 Tariffs: ?Tariffs? mean the tariffs of the Port of Tacoma, as now in effect or as from time to time amended or adopted. The Lessor?s Tariffs include various fees and charges for services and additional rules and regulations. To the extent that the Tariffs cover charges, fees, etc. for services not covered in this Lease, the fees and charges, etc. under the Tariffs will apply. To the extent that the fees or charges are covered by this Lease, they will supersede the Tariffs and will be in lieu of the fees and charges under the Tariffs for such items. Further, to the extent clearly inconsistent with the provisions hereof, the provisions of this Lease will take precedence and control over the Tariffs. 5. Security: Lessee shall at all times during the term of this Lease maintain in effect a letter of credit, cash deposit, or other security acceptable to Lessor in its sole discretion, which shall be on file with Lessor at all such times. On the Commencement Date of this Lease, the amount of the security shall be $1,800,000. On the commencement of the Construction Period, the amount of the security shall be an amount equal to twelve (12) months? rent for the Primary Premises and the Non- Exclusive Preferential Use Area, based on the survey of the Premises to be completed under Section 1.3 of this Lease and the Rent provided for in Section 4.3 of this Lease, plus Washington State leasehold excise tax. The amount shall be adjusted to reflect rental adjustments and other changes affecting Lessee's obligations under this Lease. The security shall be conditioned on the performance of all covenants, conditions, and obligations to be observed and performed by Lessee under this Lease. If the security is in the form of a cash deposit, then Lessor?s obligations with respect to the security are those of a debtor and not a trustee, and Lessor may commingle the security deposit with its other funds. If Lessee complies with all covenants, conditions, and obligations to be observed and performed by Lessee under this Lease, then the security shall be released or returned without interest or other payment within ninety (90) days after surrender of the Premises by Lessee in the condition required by this Lease. 6. Permitted Use: Lessee may use the Primary Premises and the Non- Exclusive Preferential Use Area for the uses stated in Sections 6.1 and 6.2 below, respectively, and may use the Usage Rights Areas for the uses stated in Section 2 above, as applicable for each such area, collectively the ?Permitted Uses?. The Primary Premises, Non-Exclusive Use Area, and Usage Rights Areas, shall not be used for any other purpose without the prior written consent of Lessor, in its sole and absolute discretion. Lessee shall not under any circumstances use or permit the Primary Premises, Non-Exclusive Use Area, or Usage Rights Areas to be used, for any illegal purpose; provided that Lessee shall not be responsible for any Third Party Usage of the Non-Exclusive Preferential Use Area or any Usage Rights Area. 1 1 140417Lease(NWlW-v5) 6.1 Primarv Premises. The Primary Premises may be used as a full service storage, processing and terminal facility ("Facility") including of?ces, other buildings, parking, storage tanks, secondary containment systems, related pipelines, truck loading and other infrastructure for the receipt, storage and processing of natural gas, excluding Lique?ed Natural Gas (LNG) and Compressed Natural Gas (CNG), and the storage, transport and distribution of methanol and zinc sul?de (collectively, ?Permitted Products"). 6.2 Non-Exclusive Preferential Use Area. The Non-Exclusive Preferential Use Area may be used by Lessee for the purposes set forth in Section 1.2 of this Lease, provided that no products, tools, or equipment of any kind may be stored on the Non- Exclusive Preferential Use Area. 7. Condition of Premises: Lessee has inspected the Premises, is aware of their condition, and accepts them as they are. The condition of the Premises includes the items set forth in EXHIBIT attached hereto, and Lessee shall observe and perform all conditions and obligations as set forth in such EXHIBIT F. At the expiration or sooner termination of this Lease, Lessee, subject to the provisions of Section 8, shall return the Premises to Lessor in the same condition in which received (or, if altered by Lessee with Lessor?s consent, then in accordance with Section 8 herein), reasonable wear and tear excepted. 8. Alterations and Improvements: During the Feasibility Period, Lessee will provide for Lessor approval detailed descriptions, plans, and speci?cations for the Tenant Improvements covered by the Scope of Development Schedule attached hereto as EXHIBIT E. Upon approval by Lessor, no further approval of such Tenant Improvements shall be required, except where any such descriptions, plans, or specifications are modi?ed, due to permitting requirements or otherwise. Any alterations or improvements to be made by Lessee which are not on the Scope of Development Schedule shall be subject to Lessor?s prior written approval of detailed descriptions, drawings, and speci?cations for such improvements in accordance with Lessor's Tenant Improvement Procedure, which approval shall not be unreasonably withheld, conditioned or delayed. Except as expressly provided above, Lessee shall make no alterations, additions, or improvements in or to the Premises without the prior written consent of Lessor, which will not be unreasonably withheld, and upon approval, such improvements shall be included in the term ?Tenant Improvements". Lessee at its sole cost and expense shall be responsible for obtaining all permits and performing all construction and implementing any mitigation and remediation required by any agency as a result of the construction to complete any Tenant Improvement in full compliance with all applicable laws and permit requirements (for historical contamination, remediation by Lessee is limited to removal and authorized disposition of contaminated soil encountered or exposed during the construction and which was or will be impacted by the construction). Lessee shall also be responsible for removal and authorized disposal of contaminated soil, including historical contamination, encountered or exposed in the course of construction and which was or will be impacted by the construction, in full compliance with applicable laws and permit requirements, and any other reasonable actions required to keep from exacerbating any historical 1 2 140417Lease(NWlW-v5) contamination as a result of the construction. Lessee at its sole cost and expense shall be responsible for monitoring related to historical contamination that is or may be affected by Lessee?s Tenant Improvements or construction, if and to the extent such monitoring is required by any agency. Except as othewvise herein set forth, Lessee shall have no responsibility for remediation or monitoring of historical contamination which predates the Lease. No approvals shall be required for maintenance, repair, replacement (with same) on the Primary Premises to the extent such work occurs above the ground surface or for maintenance, repair or replacements (with same) for maintenance or repair purposes below the surface; provided that Lessee shall give Lessor prior written notice of any activity below the surface. Notwithstanding the foregoing, if Lessor fails to respond to any written request for approval relating to Tenant Improvements or any other improvements for a period of thirty (30) days, such approval shall be deemed granted. At the expiration or earlier termination of this Lease, Lessee shall have the right to remove any Tenant Improvements. If Lessee does not elect to remove the Tenant Improvements, Lessor may require the removal of the Tenant Improvements by Lessee at its expense or such Tenant Improvements shall remain in place and become the property of Lessor, at Lessor?s option in its sole discretion and at no cost to Lessor. All equipment and trade ?xtures of Lessee and all personal property of Lessee shall remain the property of Lessee and may be removed on or before the expiration or termination of this Lease, or any renewal thereof, provided that Lessee makes any repairs necessary to restore the Premises to its original condition upon removal. If required to be removed by Lessee and Lessee fails to remove, Lessor may remove and dispose of such items at Lessee's expense or such items shall become the property of the Lessor, at Lessor?s option in its sole discretion and at no cost to Lessor. 9. Maintenance: Certain obligations regarding maintenance are allocated to Lessor and Lessee in EXHIBIT hereto. Each party shall perform all necessary maintenance, repairs, renewals, and replacements regarding each item allocated to such party as and when needed to preserve the Premises and improvements thereon in good and safe working order and condition. Except as othen~ise expressly provided above and in EXHIBIT hereto, Lessee shall at all times at its sole cost and expense keep the Premises and all buildings and other improvements located thereon, including, but not limited to, security systems, HVAC, mechanical, plumbing and electrical systems in good repair and condition during the term of this Lease. Lessee agrees to protect plumbing and wiring against damage caused by freezing or other weather conditions. The above obligations include maintenance, repair, renewal, and replacement as and when necessary. If Lessee should fail or neglect to commence to maintain or make such repairs, renewals or replacements within fifteen (15) days following receipt of written notice from Lessor or should fail or neglect to prosecute the completion of such maintenance, repairs, renewals or replacements with reasonable diligence, then Lessor may (but shall not be obligated to) perform such maintenance or make such repairs, renewals or replacements as may be necessary and Lessee shall be liable to Lessor for the cost thereof. Notwithstanding the foregoing or anything contained in this Lease to the contrary, the Lessee shall be responsible for the repair, maintenance and replacement of any Tenant Improvements installed by Lessee in the Usage Rights Areas and Lessor 1 3 140417Lease(NWlW-v5) shall be responsible for the repair, maintenance and replacement of any facilities installed by the Lessor in the Usage Rights Areas and the Premises which are not for the exclusive use of Lessee including without limitation, the pier structure, roadways and utility infrastructure and shall also be responsible for the maintenance of the EB-1 Access Road to be constructed by Lessee around the Premises. Lessee shall report all incidents of damage to the Premises and Usage Rights Areas, and to any improvements owned by Lessor. Lessee shall be responsible for payment for any damage (other than due to normal usage) caused by Lessee or its employees, agents, contractors or subcontractors, customers, licensees. invitees, visitors, or guests to any improvements which Lessor has the obligation to maintain. 10. Compliance with all Laws: Lessee shall keep the Premises in a clean and safe condition and shall comply with all applicable laws, rules, regulations, ordinances, permits and permit requirements, orders, and decrees of all governmental bodies having authority over the Premises or any activity conducted thereon including, but not limited to, those pertaining to police, safety, sanitation, environment, storm water, odor, dust emissions, noise, and track-out as currently in effect or as may be hereafter amended or issued. Lessee?s obligations under this section include, but shall not be limited to, and Lessee shall observe and perform, all conditions and obligations as set forth in this Lease and in EXHIBIT F. Lessee shall defend, indemnify, and hold Lessor harmless against all claims, costs (including but not limited to reasonable attorney fees), fees, ?nes, penalties, liabilities, losses, and damages that Lessor may incur by reason of any charge, claim, litigation, or enforcement action related to any actual or claimed violation of any of the foregoing to the extent related to Lessee?s tenancy under this Lease; provided that this indemnity shall not apply to any such claims, reasonable costs (including but not limited to reasonable attorney fees), fees, fines, penalties, liabilities, losses, and damages to the extent proven by Lessee to arise from the negligence or willful misconduct of Lessor or any employee, agent, contractor or subcontractor of Lessor, or (ii) any Third Party Usage of any Usage Rights Area or Non-Exclusive Preferential Use Area. 11. Taxes: Lessee agrees to pay and save Lessor harmless from any tax, assessment, or charge imposed on the interest of either party in the Premises and any Usage Rights Area during the term of this Lease or imposed on the parties or either of them by reason of this Lease or any improvement now or hereafter located on the Premises or any Usage Rights Area or other area affected by any use right of Lessee; provided that with respect to Washington State leasehold excise tax the provisions of Section 4.4 with respect to such tax shall also apply; and provided that Lessee shall not be liable for any tax, assessment, or charge based on any improvement constructed by Lessor or any third party after the Commencement Date of this Lease and not used by Lessee. Taxes, assessments, and charges imposed on an annual basis and subject to pro-ration shall be prorated based on the term of this Lease. 12. Utilities: Lessee shall be liable for, and shall pay during the term of this Lease, all charges for all utility services furnished to the Premises, including. but not limited to. light, heat, electricity, gas, water, sewage, storm sewer, storm water, waste water, janitorial services. and garbage disposal. All charges for utility installation shall 1 4 HOU23410546.8 140417Lease(NWlW-v5) be paid by Lessee. The location of utilities shall be subject to the prior written approval of Lessor. Lessor or any other users of the Non-Exclusive Preferential Use Area shall reimburse Lessee for all charges for utility services utilized by such other users and all charges for any utility installation required by other such other users; provided that for Lessee to be reimbursed for such amounts Lessee shall install separate sub-meters and obtain and provide separate statements for such utility services and utility installations, and request reimbursement based on such sub-meters and statements. 13. We: Lessee shall, at its own expense, purchase and maintain Commercial General Liability Insurance and/or Marine Terminal Operator's Liability Insurance or equivalent, with a reputable company(ies) with an AM. Best Rating of A- or better (or equivalent) with minimum limits of Six Million Dollars ($6,000,000) from the Commencement Date through the Construction Period, and with minimum limits of Fifty Million Dollars ($50,000,000) thereafter, and deductible or self-insured retention not greater than twenty percent of the required minimum limits for bodily injury, death, and property damage, combined single limit per occurrence, and which shall name Lessor as an additional insured; provided, however, that during the Feasibility Period Lessee shall be required to purchase and maintain only Commercial General Liability Insurance. Prior to commencement of construction of any Tenant Improvements, Lessee shall purchase and maintain Pollution Legal Liability insurance providing coverage for bodily injury and property damages with limits of not less than Twenty-Five Million Dollars ($25,000,000) and deductible or self-insured retention not greater than twenty percent of the required minimum limits, per occurrence and including coverage for environmental damage and related remediation and cleanup costs, which shall become effective upon commencement of construction of the Tenant Improvements, and which shall name Lessor as additional insured. Commencing on the Full Rent Commencement Date, Lessee shall also purchase and maintain an All- Risk property insurance policy insuring all improvements placed on the Premises by Lessee at their full replacement cost and with a deductible not greater than ?fteen percent of the value of the improvements. Lessee shall also maintain Business Auto Liability coverage insuring all owned, rented or leased vehicles to minimum limits of Three Million Dollars ($3,000,000) Combined Single Limit per occurrence. Lessee shall maintain Workers? Compensation Insurance as required by law, and Employer's Liability Insurance with minimum limit of One Million Dollars ($1,000,000) each accident. Lessee shall insure all personal property, equipment, and ?xtures on the Premises or kept or stored thereon in such amounts as deemed reasonable by Lessee. All policies issued on a claims-made basis shall remain in effect through the end of the Lease Term and provide for extended reporting periods of not less than two (2) years following the end of the Lease Term. Lessee shall deliver to Lessor certi?cates of such insurance and policy endorsements evidencing all required coverage and Lessor?s additional insured status to be in effect. Lessor shall be given at least thirty (30) days (ten (10) days for non-payment of premiums) prior written notice of any cancellation or non- renewal of any policy required to be maintained by Lessee. Lessee is not responsible for, and Lessee?s insurance is not required to cover, claims for bodily injury, death, property damage, or environmental damage caused by Third Party Usage of the Non- Exclusive Preferential Use Area Premises or any Usage Rights Areas, except to the extent any injury, death, damage, or loss is attributable to the negligence or other 1 5 140417Lease(NWlW-v5) wrongful act or omission of Lessee or its employees, agents, contractors, subcontractors, customers, suppliers, subtenants, licensees, invitees, visitors, or guests. Commencing on the ?fth anniversary date of this Lease, Lessor, at its reasonable discretion, may increase or decrease the amounts of insurance coverage required herein at any time during the Term hereof (but no more often than once every ?ve (5) years) by giving one hundred twenty (120) days notice to Lessee. 14. Waiver of Subrogation: If either Lessor or Lessee experience any injury, loss or damage to themselves or their respective real or personal property, and if that injury, loss or damage was then insured against under any or all of their respective insurance policies, including any extended coverage endorsements thereto, then the appropriate insurance company(ies), and not Lessor or Lessee, shall be solely liable to compensate the party(ies) who experienced the injury, loss or damage, and this shall be so regardless of whether Lessor or Lessee was responsible for such injury, loss or damage. To this end, Lessor and Lessee hereby waive any rights each may have against the other as a result of any injury, loss or damage which is then insured against by either. This waiver is effective only to the extent that the insurance company(ies) actually pay(s) for such injury, loss or damage. In addition, Lessor and Lessee agree to (1) cause their respective insurance companies to waive any right of subrogation, and (2) provide proof to the other party within thirty (30) days after the execution of this Lease that such waivers have been successfully obtained from the respective insurance companies (if such proof is not provided within this thirty (30) day period, the other party shall have the right to declare this paragraph to be ineffective). This paragraph shall be inapplicable if it would have the effect, but only to the extent that it would have the effect, of invalidating any insurance coverage of Lessor or Lessee. 15. Hold Harmless and Indemn?y: All personal property and Tenant Improvements on the Premises and any Usage Rights Area shall be at the sole risk of Lessee. Lessor, its employees and agents shall not be liable for any injury to or death of any person, or damage to property, sustained or alleged to have been sustained by Lessee or others as a result of any condition (including future conditions) in the Premises or any Usage Rights Area or any improvement owned by Lessor in the Premises or any Usage Rights Area, or due to the happening of any accident or occurrence of whatsoever kind or nature and from whatsoever cause in and about the Premises or any Usage Rights Area, except to the extent caused by the negligence or willful misconduct of Lessor or any employee, agent, contractor or subcontractor of Lessor. Lessee agrees to indemnify, defend and hold Lessor, its commissioners, employees and agents harmless from any and all claims for injuries and/or damages suffered by any person, ?rm or corporation on or about the Primary Premises or related to Lessee?s tenancy under the Lease; and from any and all claims for injuries and/or damages suffered by any person, ?rm or corporation on or about the Non-Exclusive Preferential Use Area or on or about any Usage Rights Area, to the extent caused by Lessee or related to Lessee?s tenancy under this Lease or Lessee's rights in any Usage Rights Area, including but not limited to any and all claims for damages for loss of access, business interruption or loss, death, personal injuries, property damage, natural 16 140417Lease(NWlW-v5) resource damages, attorney fees, consultant fees. ?nes, penalties, and any other costs or damages; provided that the indemnities in and above shall not apply to any injury, loss or damage to the extent proven by Lessee to result from the negligence or willful misconduct of Lessor or any employee, agent. contractor or subcontractor of Lessor; or (ii) the act or omission of any person or entity while engaged in any Third Party Usage of any Usage Rights Area or the Non-Exclusive Preferential Use Area or the Primary Premises during the Feasibility Period. The provisions of and Lessee?s obligations under this section shall survive expiration or other termination of this Lease. 16. Property Conservation: Lessee agrees to comply with all occupancy and use restrictions as may be required by its insurance property undenNriter or its agent and all applicable laws. With respect to the Non-Exclusive Preferential Use Area, Lessee shall also comply with all occupancy and use restrictions as may be required by Lessor?s insurance property undenlvriter or its agent and all applicable laws, provided that any occupancy or use restrictions imposed by its insurance undenrvriter shall not unreasonably interfere with the operation of the Premises. At the request of Lessee. and at Lessee's sole cost and expense, Lessor may (but shall not be required to) install or upgrade systems or other improvements including but not limited to sprinkler or ?re suppression systems as may be required to reduce occupancy or use restrictions. 17. Inspection and Access: Lessee shall allow Lessor or Lessor?s agent free access to the Premises upon twenty-four (24) hours prior written notice or such lesser notice period as Lessee may agree to (except in case of emergencies when no notice shall be required) for the purpose of inspection of the Premises, monitoring or sampling the ground water, stormwater, or soil on the Premises in accordance with Section 22(e), making repairs, additions, or alterations to the Premises or for other purposes permitted by this Lease or applicable law. With any entry upon the Premises, Lessor shall comply with Lessee?s health and safety rules for the Premises. 18. Default: A default of this Lease shall occur if any of the following occurs: a) Lessee fails to pay any installment of rent or any other amount due under this Lease and such failure is not cured within ten (10) days after Lessee?s receipt of written notice thereof from Lessor. b) Lessee fails to comply with any term, provision, or covenant of this Lease other than payment of rent or other amount, and such failure is not cured within thirty (30) days after Lessee?s receipt of written notice thereof from Lessor; provided that if the nature of the default cannot reasonably be cured within thirty (30) days, then Lessee shall have such additional cure period as is reasonably necessary to cure the default, provided that Lessee commences and continuously and diligently pursues the cure to completion. 0) Lessee becomes insolvent, or allows placement of any liens arising out of any work performed or materials furnished or obligations incurred by Lessee and fails to cause the release of same or provide adequate bond or other security for the payment of same within ten (10) days after notice of the placement of said lien, or shall make a transfer in fraud of creditors, or shall make an assignment for the bene?t of creditors, or 1 7 140417Lease(NWlW-v5) a receiver, assignee or other liquidating officer is appointed for the business of Lessee and same is not discharged within sixty (60) days after appointment, or shall file a petition in bankruptcy under any section of the Bankruptcy Laws, provided that any involuntary insolvency, bankruptcy or similar ?ling against Lessee shall not be a default unless Lessee fails to discharge same within sixty (60) days after such filing. 19. Remedies: Upon any default by Lessee and expiration of any applicable cure period, Lessor's remedies are to: a) Terminate this Lease, in which case Lessee shall immediately surrender the Premises and Usage Rights Areas to Lessor. If Lessee fails to surrender the Premises and Usage Rights Areas, Lessor may, in compliance with applicable law, enter upon and take possession of the Premises and Usage Rights Areas and expel and remove Lessee, Lessee?s property, and any parties occupying all or any part of the Premises and Usage Rights Areas. In case of termination, Lessor shall receive as damages the sum of all Rent and other amounts accrued under this Lease through the date of termination of this Lease and not yet received by Lessor, the Feasibility Period Termination Fee, Deferred Feasibility Period Fee, and Feasibility Period Completion Payment, to the extent not yet received by Lessor, and an amount equal to the total Rent that Lessee would have been required to pay for the remainder of the Term (escalating at 3% per year) discounted to present value based upon a mutually agreed interest rate, minus the amount of damages (rent and other amounts) that Lessee proves could reasonably have been avoided (mitigation), similarly discounted; or b) Terminate Lessee?s right to possession of the Premises and Usage Rights Areas (without terminating the Lease), and, in compliance with applicable law, expel and remove Lessee, Lessee?s property, and any parties occupying all or any part of the Premises and Usage Rights Areas. lf Lessor terminates Lessee's possession of the Premises and Usage Rights Areas, Lessor shall take reasonable efforts to relet the Premises and Usage Rights Areas for such uses and such parts as Lessor in its absolute discretion shall determine. Lessor may collect and receive all rents and other income from the reletting. Lessee shall pay Lessor all Rent and other amounts as and when becoming due hereunder (with a credit being given for any rent or other income received by Lessor as a result of reletting or the granting of any other use rights to the Premises and Usage Rights Areas to third parties, up to the Rent and other amounts due under this Lease), and all reasonable costs of reletting (which shall be prorated if the Premises and Usage Rights Areas are relet for a longer term that the remaining Term of this Lease). Lessor shall not be responsible or liable for the failure to relet all or any part of the Premises or Usage Rights Areas or for the failure to collect any Rent, but shall make reasonable efforts to mitigate its damages. The re-entry or taking of possession of the Premises and Usage Rights Areas shall not be construed as an election by Lessor to terminate this Lease unless a written notice of termination of this Lease is given to Lessee; or c) Cure such event of default and recover the costs thereof pursuant to Section 20 below. 1 8 140417Lease(NWlW-v5) 20. Lessor's Right to Cure: At any time and without notice, Lessor may, but need not, cure any failure by Lessee to perform its obligations under this Lease. Whenever Lessor chooses to do so, all reasonable costs and expenses incurred by Lessor in curing any such failure, including, without limitation, reasonable attorneys' fees and interest on the costs and expenses so incurred at the rate of 12% per year shall be paid by Lessee to Lessor on demand and shall be recoverable as additional rent. 21. Assignments and Subleases: Lessee shall not, except by prior written consent of Lessor, assign any part or all of this Lease or sublease any part or all of the Premises, or encumber any part or all of the Premises, which consent shall not be unreasonably withheld, delayed or conditioned. This Lease may not be assigned or transferred by operation of law or by any process or proceeding of any court or othenrvise. Lessor agrees to use good faith efforts to respond to any request for consent under this Section within sixty (60) days from the date of the request. If Lessee is a partnership, limited liability company, corporation, or other entity, any transfer of this Lease by merger or consolidation where Lessee is not the surviving entity, redemption, or liquidation, or any change(s) in ownership of, or power to vote, which singularly or collectively represents a majority of the bene?cial interest in Lessee, shall constitute an assignment under this section. Lessee shall pay Lessor?s reasonable attorney fees and other reasonable costs incurred as a result of any request to assign or sublet with respect to this Lease. If Lessee assigns or subleases the Premises or any portion thereof for a greater rent than is due under this Lease, Lessor shall be entitled to ?fty percent of any rent in excess of the Rent due under this Lease as and when collected by Lessee. Notwithstanding the foregoing, Lessor acknowledges that Lessee may seek to obtain ?nancing for its business on the Premises and may be requested to assign its interest in this Lease to secure such ?nancing, and Lessor agrees that it will in good faith negotiate with Lessee and Lessee?s ender(s) commercially reasonable terms of a consent and agreement regarding such financing and assignment, which terms may include, but are not limited to: Lessor providing an estoppel certi?cate in favor of lender; (ii) Lessor providing notices of any defaults under the Lease to lender; and Lender having the right to cure defaults of Lessee within applicable cure periods. 22. Hazardous Substances: a) Hazardous Substances De?ned: As used in this Lease, the term "Hazardous Substance" means any hazardous, toxic, dangerous or extremely dangerous substance, material, vapor, or waste, pollutant, or pollution, which is or becomes regulated by the United States Government, the State of Washington, or any local governmental authority. The term includes, without limitation, any substance containing constituents regulated as speci?ed above. b) Release De?ned: As used in this Lease, the term "Release" shall be defined as provided in 42 U.S.C. 9601 and RCW 70.105D.020. In the event a conflict 1 9 exists between the two de?nitions, the broader de?nition shall apply. For purposes of this Lease, the term Release shall also include a threatened Release. c) Use, Storage and Disposal: Notwithstanding any other provision of this Lease, Lessee shall not use, store, treat, generate, sell or dispose of any Hazardous Substances in violation of any applicable Laws (as de?ned below) or this Lease on or. in any manner that materially affects the Premises or any Usage Rights Area, improvements, and common areas without the prior written consent of the Lessor. Notwithstanding the foregoing, Lessor acknowledges that use of the Premises and Usage Rights Areas for its Permitted Uses as speci?ed in Section 6 in accordance with this Lease and all applicable law does not violate this section. d) Compliance with Laws: Lessee shall, at its sole cost and expense, comply with all laws, rules, regulations, ordinances, permit and permit requirements, orders, decrees and other governmental requirements regarding the proper and lawful generation, use, sale, transportation, storage, treatment and disposal of Hazardous Substances (hereinafter "Laws") on or in any manner that affects the Premises or any Usage Rights Area. . e) Monitoring: Lessor or its designated agents may, at Lessor's sole discretion and at reasonable times, enter upon the Premises and Usage Rights Areas for the purpose of (1) monitoring Lessee's activities conducted thereon, and (2) conducting environmental testing and sampling to determine compliance with applicable Laws and the terms of this Lease (collectively ?Monitoring Activities?). If such Monitoring Activities disclose the Release of Hazardous Substances caused by Lessee or related to Lessee's tenancy under this Lease in violation of either applicable Laws or this Lease, the cost of such Monitoring Activities shall be paid by Lessee pursuant to subsection In addition, within five (5) days of Lessor's written request, Lessee shall provide Lessor with a detailed written description of Lessee's generation, use, sale, transportation, storage, treatment, and disposal of Hazardous Substances on or which may othenrvise affect the Premises or any Usage Rights Area, and any Release of Hazardous Substances on or which may otherwise affect the Premises or any Usage Rights Area, and copies of any correspondence or other communications, if any, between Lessee and any regulatory agency with respect thereto. Lessor's discretionary actions pursuant to this subsection shall not constitute a release waiver or modi?cation of Lessee's obligations othenNise speci?ed in this Lease, or of any of Lessor's rights under this Lease. f) Noti?cations: Lessee shall notify Lessor and any governmental agency required to be noti?ed under applicable Law within 24 hours of any Release of Hazardous Substances that may affect the Premises or any Usage Rights Area, and shall provide Lessor with a copy of any noti?cations given to any governmental entity regarding any such Release. Lessee' shall provide Lessor with copies of any inspection report, order, fine, request, notice or other correspondence from any governmental entity regarding the Release of Hazardous Substances that may affect the Premises or any Usage Rights Area. Lessee shall provide Lessor with a copy of all reports, manifest, material safety data sheets (MSDs), and identi?cation numbers 20 140417Lease(NWlW-v5) regarding Hazardous Substances at the same time they are submitted to the appropriate governmental authorities. 9) Environmental Assessment: Subject to mm below, Lessee shall, upon written request from Lessor, based on a reasonable reason to believe there has been a Release on the Premises or any Usage Rights Area during the Term of this Lease and related to Lessee?s tenancy under this Lease, or (ii) a discovery (either during or after the Term of this Lease) of Hazardous Substances reasonably believed by Lessor to be related to Lessee?s tenancy under this Lease, provide Lessor with an environmental assessment prepared by a qualified professional approved in advance by Lessor. The environmental assessment shall, at a minimum, certify that a diligent investigation of the Premises and/or Usage Rights Areas (as applicable) has been conducted, including a speci?c description of the work performed, and either (1) certify that diligent investigation of the Premises and/or Usage Rights Areas (as applicable) has revealed no evidence of a Release of Hazardous Substances or violation of applicable Laws, or (2) if a Release or violation of applicable Laws is detected, identify and describe: the types and levels of Hazardous Substances detected; (ii) the nature and extent of the Release, including the physical boundaries thereof and whether the Release extends to or othenNise impacts property other than the Premises or Usage Rights Areas; the actual and potential risks to human health and/or the environment from such Release or violation; and (iv) the procedures and actions necessary to fully remedy the Release or violation in compliance with applicable Laws. Lessee shall pay the expense of obtaining the environmental assessment and of performing all remediation related to such Release in accordance with subsection provided that the Release occurred during the Term hereof or was related to Lessee?s occupancy of the Premises or Usage Rights Areas under this Lease. Lessee shall also conduct an environmental assessment of the Premises and Usage Rights Areas at the termination of this Lease pursuant to subsection below. h) Hold Harmless and Indemnity: Subject to subsection below, Lessee shall defend (with attorneys approved in writing by Lessor in the case of third party claims, including without limitation claims and notices of alleged violations by agencies), indemnify and hold Lessor and its agents harmless from any loss, claim, ?ne or penalty arising from the Release of Hazardous Substances or any violation of applicable Laws affecting the Premises or any Usage Rights Area to the extent caused by Lessee or related to Lessee's tenancy under this Lease, provided that this indemnity shall not apply to the extent that Lessee proves that any such loss, claim, fine or penalty is attributable to the negligence or willful misconduct of Lessor or any employee, agent, contractor or subcontractor of Lessor or (ii) the fault of or caused by any person or entity while engaged in any Third Party Usage of any Usage Rights Area or the Non-Exclusive Preferential Use Area or the Primary Premises during the Feasibility Period. Such obligation shall include, but shall not be limited to, environmental response and remedial costs, other cleanup costs, environmental consultants' fees, attorneys' fees, ?nes and penalties, laboratory testing fees, claims by third parties and governmental authorities for death, personal injuries, property damage, natural resource damages, and any other costs, and Lessor's expenses as provided in subsections and Lessee's 21 140417Lease(NWlW-v5) obligation pursuant to this subsection shall survive expiration or other termination of this Lease. Lessee shall have no obligation under this subsection if the Lessee can establish that the Release or threat of Release of a hazardous substance and the damages resulting therefrom were caused solely by: (1) An act of God; (2) An act of war; (3) An act or omission of a third party other than an employee or agent of the Lessee, or (ii) any person whose act or omission occurs in connection with a contractual relationship existing, directly or indirectly, with the Lessee (except where the sole contractual arrangement arises from a published tariff and acceptance for carriage by a common carrier by rail), if the Lessee establishes by a preponderance of the evidence that Lessee exercised due care with respect to the Hazardous Substance concerned, taking into consideration the characteristics of such Hazardous Substance, in light of all relevant facts and circumstances, and took reasonable precautions against foreseeable acts or omissions of any such third party and the foreseeable consequences of such acts or omissions; or (4) Any combination of the foregoing paragraphs. i) Default and Cure: Notwithstanding any other provision of this Lease, in event of a Release of Hazardous Substances or a violation of applicable Laws affecting the Premises or any Usage Rights Area caused by Lessee or related to Lessee's tenancy under this Lease, Lessor shall give written notice of default to Lessee, and Lessee shall diligently pursue the cure of such violation or remediation and/or monitoring of any such Release (as applicable) in accordance with the requirements of any governmental entity with jurisdiction over such Release or violation; provided that if such Release or violation affects any area outside the Primary Premises, or if such Release or violation affects the Primary Premises and any remedial activity may continue for longer than the remaining Term of the Lease, then at Lessor?s request Lessee shall pursue a cure as quickly as commercially practicable, notwithstanding that any governmental entity may allow a longer period for a cure. Lessor shall not be entitled to exercise its remedies under Section 19 unless or until Lessee fails to remediate the Release in accordance with the terms of this Provision. If Lessee fails to diligently pursue the cure as stated above, then Lessor may cure such Release of Hazardous Substances or any violation of applicable Laws and impose a rent surcharge suf?cient to recover such expenses together with interest at 18 percent per annum, for such portion of the unexpired term of this Lease as the Lessor may reasonably deem proper, and such remedy if elected by Lessor shall be in lieu of other remedies under Section 19. j) Assignments and Subleases: Lessor may withhold its consent to any assignment. sublease, or other transfer if the proposed transferee's use of the Premises 22 140417Lease(NWlW-v5) or any Usage Rights Area may involve the generation, storage, use, treatment, or disposal of Hazardous Substances, as de?ned in this Lease, other than as permitted under Section 6. k) Release of Hazardous Substances: Notwithstanding any other provision of this Lease, and without prejudice to any other such remedy, Lessor, in the event of a Release of Hazardous Substances, a violation of applicable Laws, or a breach of Section 22 of this Lease, shall be entitled to the following rights and remedies, at Lessor?s option: (1) Except as otherwise herein provided, to recover any and all damages associated with the default, including but not limited to all reasonable cleanup costs and charges, civil and criminal penalties and fees, any and all damages and claims asserted by third parties, and Lessor's reasonable attorneys' fees and costs. (2) To renegotiate the terms of this Lease to recover any return on reasonable expenditures made by Lessor which were reasonably necessary to ensure that the Premises and Usage Rights Areas and the use of such Premises and Usage Rights Areas comply with all applicable Laws. Benchmark Environmental Assessments: Prior to the expiration of the Feasibility Period, Lessee, at Lessee?s option and cost, may obtain a Phase I and/or Phase II environmental assessment on the Premises and any Usage Rights Area and other areas subject to Lessee?s use rights, in order to establish an environmental baseline at the commencement of Lessee?s occupancy. Upon termination of this Lease, Lessee, at its sole cost and expense, shall provide Lessor with a Phase II environmental assessment (prepared by a quali?ed professional approved in advance by Lessor) reasonably satisfactory to Lessor to verify Lessee's compliance with the requirements of Section 22 of this Lease. Lessee shall be responsible for remediation of all Hazardous Substances on or about the Premises and Usage Rights Areas caused by Lessee or related to Lessee's tenancy under this Lease. Lessee?s obligations under this subsection shall survive the termination of this Lease. m) Limitation of Liability: Nothing contained herein is intended to make Lessee responsible for any Release or contamination of the Premises or any Usage Rights Area from Hazardous Substances which ?rst arose prior to the date of this Lease or after the Term of this Lease or which migrated from other properties and speci?cally, Lessee has no liability or obligations with respect to any historical contamination affecting the Premises or any Usage Rights Area as described in EXHIBIT hereto, except to the extent such Release or contamination or migration or historical contamination is or was contributed to or exacerbated by, Lessee or the employees, agents, contractors, subcontractors, customers, licensees, invitees, visitors, or guests of Lessee. Lessor shall provide Lessee with environmental assessments and background data with respect to such contamination. 23 140417Lease(NWlW-v5) 23. Waiver of Lessor's Lien and Security Interest. Lessor waives any constitutional, statutory or contractual landlord's lien or security interest on or in the assets of Lessee located on the Premises. 24. Signs: All signs or symbols placed by Lessee in the windows or doors of the Premises, upon any exterior part of any building, or in any other location on the Premises, shall be subject to the prior written consent of Lessor, which shall not be unreasonably withheld and will be consistent with Lessor?s signage policy and all applicable law. Any signs so placed on the Premises shall be so placed upon the understanding and agreement that Lessee will remove the same at the termination of this Lease and repair any damage or injury to the Premises caused thereby, and if not so removed by Lessee, then Lessor may remove the same at Lessee's expense. 25. Waiver: No word, act or omission of Lessor shall be deemed to be a waiver of any default or noncompliance by Lessee under the terms of this Lease or of any right of Lessor hereunder or of any notice given by Lessor hereunder unless Lessor so advises Lessee in writing. The acceptance of rental by Lessor for any period or periods after a default or non-compliance by Lessee hereunder shall not be deemed a waiver of such default. No waiver by Lessor of any default or noncompliance hereunder by Lessee shall be construed to be or act as a waiver of any subsequent default or noncompliance by Lessee. 26. Entire Agreement; Amendments: This Lease constitutes the complete agreements between Lessor and Lessee regarding its subject matter. There are no terms, obligations, covenants or conditions regarding its subject matter other than those contained herein. No modi?cation or amendment of this Lease shall be valid and effective unless evidenced by an agreement in writing signed by the party to be bound. 27. Invaliditv of Particular Provision: It is the intention of the parties that each term or provision of this Lease be enforceable to the fullest extent permitted by law. If any term or provision of this Lease or the application thereof to any person or circumstance is, to any extent, invalid or unenforceable, the remainder of this Lease and the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and shall continue in full force and effect. 28. Real Estate Commission: Each party represents and warrants that it is not represented by any broker, agent, or other person in connection with any of the transactions contemplated by this Lease, and that it has not dealt with any broker, agent, or other person to which a commission or other fee is due in connection with any of the transactions contemplated by this Lease, and that insofar as it knows, no broker, agent, or other person is entitled to any commission, charge, or fee in connection with any of the transactions contemplated by this Lease. Each party agrees to indemnify, defend, and hold harmless the other party against any loss, liability, damage, cost, claim, or expense, including interest, penalties, and reasonable attorney fees, that the other party incurs or suffers by reason of a breach by the ?rst party of the representations and warranties set forth in this section. 24 140417Lease(NWlW-v5) 29. Attorney Fees: The substantially prevailing party in any and all actions and proceedings related to this Lease, including but not limited to arbitrations, lawsuits, bankruptcy proceedings, and all appeals, shall be awarded its reasonable attorney fees and costs. 30. Venue; Applicable Law: All actions and proceedings related to this Lease shall be ?led and held in Pierce County, Washington. This Lease shall be governed by Washington law, without regard to doctrines regarding choice of law. 31. Notices: All notices permitted or required under this Lease may be given by personal service, by certi?ed or registered mail, or by email if so provided by a party, at the addresses stated on Page 1 of this Lease. Notice by personal service or certi?ed or registered mail shall be effective on receipt or refusal by the addressee. Notice by email shall be effective upon written acknowledgment of receipt by the addressee. Each party may change its notice address and information by written notice to the other party pursuant to this section. 32. Casualty: If the Premises or any Usage Rights Area are damaged by ?re or other casualty, then Lessor shall have no obligation to repair the Tenant Improvements, but shall be responsible for the repair of Lessor-owned improvements such as the wharf; provided that Lessee shall be responsible for repairing any damage caused by the negligence or other wrongful act or omission of Lessee or its employees, agents, customers, suppliers, contractors, subcontractors, subtenants, licensees, invitees, visitors, or guests. Lessee shall repair or restore the Tenant Improvements located on the Premises or any Usage Rights Area or shall construct replacement improvements, subject to Lessor?s prior written approval pursuant to Section 8 above; provided however: if the Premises or any Usage Rights Area are damaged by earthquake, lahar, tsunami, or other catastrophe to such an extent that the Premises or any Usage Rights Area and improvements cannot be restored; or (ii) if the damage occurs in the last ?ve (5) years of the Term, then Lessee shall have no obligation to repair the Tenant Improvements located on the Premises or the Usage Rights Areas, and at its option, may terminate the Lease by giving written notice to Lessor within forty ?ve (45) days from such damage. Any termination under this Section is effective as of the date of such notice of termination. Upon such termination, Lessee will be entitled to be reimbursed for any prepaid rent on a pro rata basis based on the date of termination. No damages or other compensation shall be payable by Lessor for any inconvenience, loss of use, loss of business, annoyance, or any other loss or claim, by Lessee directly, incidentally, or consequentially arising from any damage to the Premises or any Usage Rights Area or any improvements or Tenant Improvements, by ?re or other casualty or from any repair to the Premises, any Usage Rights Area, any Lessor-owned improvements, any Tenant Improvements, or any part of any of the above. In the event of damage or destruction to the Premises or any Usage Rights Area, the Rent will be proportionately reduced during the period of damage and any repair or restoration pursuant to this Lease, and the reduction shall be based upon the extent to which the damage or the making of the repairs or restoration will interfere with Lessee's business conducted on the Premises or Usage Rights Area damaged or destroyed. 25 140417Lease(NWIW-v5) The parties acknowledge that other parties including the military will be utilizing the East Blair 1 Wharf and terminal. Notwithstanding any provisions of the Tariffs to the contrary, no damage to the Non-Exclusive Preferential Use Area will be assumed to have been caused by Lessee or any of its customers, suppliers or contractors on the grounds that any such party failed to notify Lessor of the damage at the time of the arrival of a vessel at the pier or othenlvise. 33. Condemnation: If all or any part of the Premises or this Lease is taken by condemnation or conveyed under a threat of condemnation, then this Lease shall automatically terminate with respect to such part affected by the condemnation as of the earlier of the date title vests in the condemning authority or the condemning authority ?rst takes possession of the Premises. If all or any part of the Premises or this Lease is taken by condemnation or conveyed under a threat of condemnation and Lessee in its reasonable discretion deems the remaining Premises unsuitable for Lessee?s use, then this Lease shall automatically terminate as of the earlier of the date title vests in the condemning authority or the condemning authority ?rst takes possession of the Premises. If this Lease is not terminated following any condemnation or conveyance in lieu of condemnation the Rent shall be reduced by the percentage of the Premises so taken. All proceeds from any taking or condemnation related to the land and any improvements not constructed or installed by Lessee shall belong to and be paid to Lessor, and all proceeds from any taking or condemnation related to the Tenant Improvements or Lessee's personal property and equipment shall belong to Lessee; provided that any award to Lessee shall be separately designated and shall not reduce Lessor's recovery with respect to the land and the improvements not constructed or installed by Lessee. Lessee waives any and all claims to any portion of such proceeds related to the land and any improvements not constructed or installed by Lessee, including but not limited to any claim related to any value of the leasehold or unexpired term of this Lease. All awards shall be separately designated to each party. 34. Successors and Assigns: Subject to Section 21 above, this Lease is binding upon the parties hereto and their respective successors and permitted assigns. 35. Conseguential Damages: Except as othenrvise provided in this Lease, in no event shall Lessor or Lessee have any liability for any consequential, indirect, incidental, special, punitive or exemplary damages suffered by the other party, arising from or in connection with this Lease. 36. Holdover: If Lessee without written consent of Lessor stays in possession of the Premises after the expiration or termination of this Lease, the tenancy shall be a holdover tenancy on a month-to-month basis, on the terms and conditions of this Lease, except that rent shall be increased to 200% of the rent last payable under this Lease. This section does not grant any right to Lessee to holdover, and Lessee is liable to Lessor for any and all damages and expenses of Lessor as a result of any holdover. 37. Relocation: Throughout the term of this Lease, Lessor may continue to market the East Blair 1 Terminal for alternative uses. At Lessor's request at any time upon six (6) months prior written notice, Lessee shall relocate from the East Blair 1 26 140417Lease(NWlW-v5) wharf to any other facility (?New Facility") provided by Lessor in the same vicinity and functionally comparable to the East Blair 1 wharf and which shall be in good repair. In no case shall Lessee be required to relocate prior to the New Facility being ready for use and occupancy by Lessee. Lessee shall sign all documents reasonably required by Lessor with respect to such relocation, including but not limited to a new lease or an amendment to this Lease with respect thereto and any other terms affected by the relocation. Lessor shall be responsible for all costs associated with relocation including the costs of permitting, obtaining any required consents and easements, moving Lessee?s movable equipment from the current East Blair 1 wharf to the New Facility, the functional replacement at the New Facility of any Tenant Improvements lost as a result of such relocation and necessary for Lessee?s operations at the New Facility (including pipelines), and costs, if any, incurred by Lessee from any service interruption caused by Lessor during such relocation. Relocation shall be planned and scheduled in a manner that causes the least disruption to Lessee?s business. The New Facility shall be an exclusive use area for the remaining Term of the Lease. The amount of rent per month for the New Facility shall be equal to the total Full Rent amount payable by Lessee to Lessor for the Non-Exclusive Preferential Use Area for the month preceding the relocation to the New Facility, subject to annual adjustment as described in Section 4.3. 38. Memorandum of Lease: At either party's request, the parties will sign and record a Memorandum of Lease in substantially the form set forth in EXHIBIT attached hereto. 39. Premises Security: Lessee at its sole cost and expense shall provide security for the Premises, including the preparation and maintenance of a US. Coast Guard approved Facility Security Plan And Assessment for the Premises. Provided, however, that if Lessor and Lessee enter into a mutually satisfactory premises security agreement, Lessor shall provide such security services, all at Lessee?s cost, to the extent provided in such premises security agreement. Any premises security agreement, if and when executed, shall conform to all applicable requirements of the Customs-Trade Partnership Against Terrorism (C-TPAT). Lessor and Lessee shall maintain the confidentiality of the Facility Security Plan And Assessment to the greatest extent allowed by applicable law. SIGNATURES APPEAR ON FOLLOWING PAGES 27 140417Lease(NWlW?v5) LESSOR: State of Washington ss County of Pierce I certify that I know or have satisfactory evidence that a} is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the CE. 0 of the PORT OF TACOMA to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: 2 2 i ton APPR VED AS TO FORM: Counsel for Port of Tacoma 28 140417Lease(NWlW-v5) LESSEE: NORTHWEST INNOVATION WORKS, TACOMA, LLC Its: rem-Q? Date: 9? State of Washington) ss County of Clark I certify that I know or have satisfactory evidence that Jae. fruity? is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated at he/she was authorized to execute the instrument and acknowledged it as the {?(SI?dm?rL of NORTHWEST INNOVATION WORKS, TACOMA. LLC to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: .9 0 ry: tary Public in and for the Stat of vyshington My commission expires on 5 27?, JUDITH L. DOREMUS Notary Public State of Washington My Commiuion Expires .iuo'ry 22. 2016 29 140417Lease(NWIW-v5) EXHIBIT A PREMISES 90 acres of land located at 3400 Taylor Way and East Blair Terminal (EB1) Port of Tacoma, Pierce County, Washington Exhibit A will be completed during the Feasibility Period based on the completion and approval by the parties of a survey under Section 1.3 of the Lease. Exhibit A will include a legal description of the land located at 3400 Taylor Way excluding the following: 1. Adjacent Port rail track system 2. Stormwater systems not associated with Lessee?s Tenant Improvements 3. EB-1 Access Road and associated stormwater system 4. Wetlands Lessor and Lessee additionally agree as follows: 1. Existing Port-owned modules and buildings which comprise the Port's Project Of?ce will be removed by Lessor at Lessor?s cost during the Construction Period unless Lessee requests all or a portion of these modules and/or buildings remain until a later date, in which case Lessee and Lessor will enter into a separate written agreement regarding such modules and buildings. 2. The Port, and others, retain ownership of construction equipment and materials including asphalt, crushed rock and concrete, soil, sand, and gravel. Lessee and Lessor agree that portions of this material may be used by the Port. Until commencement of the Construction Period, the Port reserves the right, at its sole discretion, to access, remove, and/or redeploy this equipment and material. Any equipment and material remaining on-site after commencement of the Construction Period, and not subject to use by the Port for site remediation, become elements of the leased Premises. 30 140417Lease(NWlW-v5) EXHIBIT PORT PIPELINE EASEMENT This exhibit will be a separate agreement to be prepared by the parties during the Feasibility Period. 31 140417Lease(NWIW-v5) EXHIBIT STORMWATER EASEMENT This exhibit will be a separate agreement to be prepared by the parties during the Feasibility Period. 32 140417Lease(NWIW-v5) EXHIBIT EB-1 ACCESS ROAD Figure and standards for EB-1 Access Road to be prepared by parties during the Feasibility Period. 33 140417Lease(NWIw-v5) EXHIBIT SCOPE OF DEVELOPMENT SCHEDULE This exhibit will be prepared by the parties during the Feasibility Period. 34 140417Lease(NWlW-v5) EXHIBIT ENVIRONMENTAL REQUIREMENTS 90 acres of land (and E31 pier and land) located at 3400 Taylor Way and 2340 Alexander Avenue, Tacoma Port of Tacoma, Pierce County, Washington 98402 Use The Primary Premises, Non-Exclusive Preferential Use Area and the Usage Rights Areas (hereinafter collectively ?Premises"), as defined in the Lease may be used for the purposes stated in Section 6 of the Lease and the purposes for which Usage Rights were granted. The Premises shall not be used for any other purpose without the prior written consent of Lessor, in its sole and absolute discretion. General During the term of this Lease, Lessee and Lessee?s employees, agents, customers, contractors, subcontractors, licensees, invitees, visitors, and guests (collectively ?Lessee Parties?) shall, at Lessee?s sole cost and expense, comply with all federal, state, and local laws, statutes, ordinances, regulations, rules, permits and permit requirements, orders, and decrees, of all governmental bodies having authority over the Premises or any activity conducted thereon, and other governmental requirements regarding the proper and lawful generation, use, sale, transportation, storage, treatment and disposal of Hazardous Substances on or in any manner that affects the Premises, as currently in effect or as may be hereafter amended or issued. Some areas of, or adjacent to, the Premises (as used herein, the term Premises includes Premises existing at the commencement of the Lease and areas added to the Premises thereafter) are or may be within the boundaries of a current or future remediation (or cleanup) "site" or ?sites? under the oversight of the United States Environmental Protection Agency (EPA) and/or Washington State Department of Ecology (Ecology) due to historical contamination. These include, but are not necessarily limited to, the following: a Port of Tacoma (Former Kaiser Aluminum Facility, Remedial Actions), Agreed Order, Number DE-5698. 0 Kaiser Aluminum Chemical Corporation (Wet Scrubber Sludge), Consent Decree, Number 90 2 06209 C. 0 Kaiser Spent Potliner Management Area, EPA/Ecology ID No. WAD 00188298. 0 Port of Tacoma, Puyallup Land Transfer (Blair Backup Property Environmental Cap), Consent Decree, Number 094-5648 (September 1994). - Louisiana?Paci?c Corporation, Manke Lumber Company& Weyerhaeuser Company, Re. Hylebos (wood waste), Consent Decree, Number 01 2 04714 6(January 2005). - Louisiana-Paci?c Corporation (LP-Pony Environmental Cap), Enforcement Order, Number DE 92TC-S312 (December 1992). 35 140417Lease(NWlW-v5) 0 Port of Tacoma (former Arkema 3009 Taylor Way Site), Arkema Containment Cell Removal (Dunlap Mound). Agreed Order, Number DE-6129 (November 2008) 0 Port of Tacoma (Arkema Manufacturing Site), Agreed Order, Number DE-5688 (July 2011). Penwalt Corporation, Inc. (Arkema Manufacturing Plant), Consent Decree, Number 87 2 01199 0 (June 1987). Ato?na Chemicals, Inc. and General Metals of Tacoma, Consent Decree Head Of Hylebos Waterway Problem Area Commencement Bay Nearshore/Tideflats Superfund Site - Consent Decree, Civil Action Number CO4- 5319-RBL (September2004). Portac, Inc. and Port of Tacoma (Portac Environmental Cap), Order on Consent, Docket Number DE 88-8326 (September 1988). Commencement Bay Nearshore/Tideflats Superfund Site (EPA ID WA0980726368). Lessee acknowledges and agrees that: i) Lessee shall not alter, damage, or destroy any currently installed remediation infrastructure groundwater extraction and monitoring wells and associated vaults and piping) and shall not alter, damage, or destroy any remediation infrastructure installed on the Premises at a later date. ii) The Lessor, Ecology, or EPA may require access by Potentially Responsible Parties, and/or by the agencies or their assigns to portions of the Premises for remediation activities investigations, remedial actions, inspections, maintenance, and monitoring). The required access may be for short or extended periods, may be for small or larger areas, may require Lessee to move equipment and/or material of Lessee and Lessee Parties located on the Premises, and may vary from time to time. Upon reasonable request for such access, Lessee shall use reasonable efforts to provide the required access, upon reasonable terms, and at no cost or expense to Lessor. Lessee shall inform the Lessor of any environmental/ regulatory issues, including spills or releases, and copy the Lessor on all environmental compliance related notices and correspondence related to the Premises. iv) Lessee and Lessee Parties shall assist and not interfere with any source control or institutional controls required as part of the remediation site. v) Releases of hazardous substances into the water and/or sediments of Commencement Bay, or upland where they can migrate to Commencement Bay or to adjacent remediation sites could result in Lessee liability under federal Superfund and/or Clean Water Act laws and/or under State MTCA laws. Permitting for Developmenthe-development Except as othenivise provided in the Lease, Lessee must obtain project approval from the Lessor?s Facilities Development Department for any development or re?development projects or other tenant improvement projects at the Premises, in accordance with Lessor's Tenant Improvement Procedure, as now in effect or hereafter amended or adopted. Lessee shall coordinate with the Lessor for all permitting, design, and 36 HOU1341 0546.8 140417Lease(NWlW-v5) construction activities. Lessee is responsible for obtaining pertinent federal, state and local environmental permits associated with the Lessor approved project. Lessee must have all permit applications or documents reviewed and approved by the Lessor's Facilities Development Department prior to the submission of any such documents to the permitting agency (or agencies). The Lessor can serve as SEPA lead agency per Port of Tacoma Commission Resolution 2011-06, Revised State Environmental Policy Act (SEPA) and Procedures adopted September 15, 2011, as amended or revised. Hazardous Substances Hazardous substances shall be managed (including but not limited to, handling, secondary containment, and disposal requirements) in accordance with Lessee?s operating permits, all pertinent federal, state, and local regulatory requirements, and as stated in the Lease. Air Quality Lessee shall, at its sole cost and expense, comply with all federal, state, and local laws, statutes, ordinances, regulations, rules, permits and permit requirements, orders, and decrees, including, but not limited to, air quality and odor, of all governmental bodies having authority over the Premises or any activity conducted thereon. Water and Sediment Quality Protection Stormwater Permits: Environmental Permits for Lessor-owned stormwater systems are maintained by the Lessor or amended in accordance with the applicable permit process. Lessee recognizes the Lessor as a municipality, and shall satisfy all requirements of the Washington State Department of Ecology's (Ecology) National Pollution Discharge Elimination System (NPDES) General Municipal Stormwater (M84) Permit to the extent applicable to the Premises. Based on Lessee's facilities, operations, and activities, Lessee may be required to obtain an Industrial Stormwater General Permit (ISGP) from Ecology which facilitates the NPDES and State Waste Discharge General Permit for Stormwater Associated with Industrial Activities. In addition, other types of general stormwater permits or individual stormwater permits are available from or may be required by Ecology. It is Lessee's responsibility, during the term of the Lease, to comply with the applicable storm water permit based on Lessee's facilities, activities, and operations, or as required by Ecology, at the sole cost of Lessee. A Stormwater Pollution Prevention Plan is a requirement of the Lessor?s MS4 Permit. Lessee must submit a and all subsequent revisions to the to the Lessor's Environmental Programs Department that is compliant with the Lessor?s MS4 Permit, or if applicable, Lessee?s ISGP or other applicable Ecology issued stormwater permit. The Lessor will provide a M84 or ISGP template at Lessee?s request. Lessee shall defend, indemnify, and hold harmless Lessor against any and all costs (including but not limited to attorney fees), expenses, damages, fines, penalties, and liabilities of any kind incurred by Lessor as a result of Lessee's stormwater discharge. To the extent available, stormwater training is available from the Lessor, as are other environmental compliance and permitting services. 37 140417Lease(NWlW-v5) Wastewater Discharge: Lessee shall, at its sole cost and expense, comply with the City of Tacoma Municipal Sewer System Industrial Wastewater Discharge Permit requirements, as applicable. Coatings for Galvanized Metals: Un?coated galvanized metals shall not be used on new equipment or structure surfaces exposed to natural elements in order to reduce the potential of exceeding standards for zinc or other metals in stormwater runoff. Coating shall be factory-coated with a baked-on enamel, or equivalent, protective coating. Damaged coatings atop galvanized metal shall be repaired Lessee will not be responsible for replacing existing un-coated galvanized metals; however, new galvanized metal surfaces installed by the Lessee shall be coated. Emergency/Spill Response: Lessee and Lessee Parties shall have an effective spill response plan in accordance with all federal, state, and local regulations and permits. Lessee shall initiate spill response immediately after a spill and notify Port of Tacoma Security (253?383-9472) during any incident or event. If a spill response undertaken by the Lessor is requested by Lessee, or is determined to be necessary by the Lessor to protect Lessor property, Lessee shall reimburse the Lessor for spill response to spills originating from Lessee and Lessee Parties, whether on or off the Premises. Lessee shall have all necessary equipment and supplies on-hand to conduct an emergency or spill response. Environmental Safety Personnel Protection and Liability Management: All subsurface disturbances or excavations must be pre-approved by the Lessor?s Facilities Development Department. In addition, all activities on the Premises shall be conducted in accordance with Occupational Safety and Health Administration (OSHA), Washington Industrial Safety and Health Act (WISHA), and/or other occupational safety and health laws or regulations, as applicable. To the extent available, the Lessor can offer different levels of OSHA HAZWOPER training and refreshers. Noise control: Lessee shall comply with the City of Tacoma?s Ordinance No. 27673 and Tacoma Municipal Code Title 8, Chapter 8.122, entitled ?Noise Enforcement". Traf?c Control: As necessary or requested by the Lessor, Lessee shall develop, maintain, and comply with a traffic control plan reviewed by the Lessor (and the Washington State Department of Transportation (WSDOT) if a WSDOT approved traf?c control plan is required). Environmental Stewardship Invasive Species Control: Lessee shall take measures to prevent and control invasive species from entering or infesting the Premises or surrounding areas. If an invasive species infestation is discovered originating from Lessee or Lessee Parties, Lessee shall take measures to control and eliminate the invasive species from infected areas whether on or off the Premises at the sole cost of Lessee. 38 140417Lease(NWlw-v5) Habitat and Critical Areas Protection: The Lessor shall identify and update locations of, and Lessee shall protect all known critical habitats and jurisdictional wetlands adjacent to or on the Premises from damage caused by Lessee or Lessee Parties. The Premises is located on or near the shoreline of Commencement Bay and may therefore be subject to the City of Tacoma?s Critical Areas Preservation Ordinance area (Ordinance 27728), the City of Tacoma?s Shoreline Management Area of Washington State?s Shoreline Management Act of 1971 (RCW 90.58) propagated under the Tacoma Municipal Code 13.10.130, and may be classified as jurisdictional wetlands or "Waters of the United States" under the Clean Water Act of 1972 (33 U.S.C. ?1251 et seq.) and as amended and clari?ed. These aforementioned ordinances, codes, and acts restrict certain land uses or activities within these areas and may require an exemption or development permits be obtained for approved uses or activities. Lessee shall confirm the presence or absence of critical habitats or jurisdictional wetlands on the Premises prior to use or development of the Premises. The Lessee is required to comply with all requirements and restrictions of these ordinances, codes, and acts, as applicable. Resource Conservation: Lessee agrees to implement reasonable resource conservation practices, including reduce, reuse, recycle, and compost practices, in accordance with all federal, state, and local regulations. Renewable Energy: Lessee agrees to consider the use of renewable energy or cleaner fuel, such as ULSD, LNG, biodiesel, or electric energy for powered equipment where practical and feasible. Energy Conservation: At the request of the Port, Lessee shall make reasonable effort to provide information on Lessee-directed energy conservation initiative and terminal ef?ciency studies. Low Impact Development: Lessee will consider adopting low impact practices including LEED Certi?cation and sustainable building practices for all Lessee-directed improvements. Emission Control Northwest Ports Clean Air Strategy: Lessee shall assist Lessor meet the goal and objectives of the Northwest Ports Clean Air Strategy by implementing programs, policies, plans or procedures to meet Actions and Perforrnace Targets as listed in the Northwest Ports Clean Air Strategy 2013 update, as ammeded or revised. At reasonable request by Lessor, Lessee shall participate in small scale emission reduction pilot studies or projects that tests the feasibility and effectiveness of technology or change in operation. Lessor and Lessee will mutually explore potential pilot technology and funding. Emission Inventory: At reasonable request by Lessor, Lessee shall provide equipment data, terminal activity data, and available air testing results needed for the Lessor?s air quality assessment, and provide access to allow monitoring by Lessor?s staff and consultants and contractors. 39 Anti-Idling and Energy Conservation: Lessee agrees to post anti-idle signs and develop and implement, as feasible and practicable, an anti-idle policy for all equipment on the premises. Lessor and Lessee will mutually explore technical idle reduction technology and funding. Periodic Review The Lessor and Lessee shall periodically review and adjust Lessee?s environmental performance requirements at the Lessor?s request. 40 140417Lease(NWIW-v5) EXHIBIT MAINTENANCE RESPONSIBILITIES Responsibility Primary Premises (Lease Section 1.1) Port Lessee 1 All Tenant Improvements 2 All improvements made and owned by Port; not for use by Lessee 3 Access controls 4. Potable water service 5. Sanitary sewer 6 Fire water service 7 Electrical distribution and service (including lighting) 8 Fire suppression and spill containment systems and equipment 9 Alarms and alarm monitoring 10. Perimeter fencing and gates 11. Sweeping and snow removal 12. Pest control 13. Storm water systems, including cleaning. maintenance. repair and maintenance of permits 14. Security and access controls Responsibility Non-Exclusive, Preferential Use Area (Lease Section 1.2) Port Lessee 1 Fender systems, bull-rails, bollards and ladders 2 Life rings 3 Pier structure (including piles, pile caps and decking) 4. Pavement(uniess damaged as a result of Third Party use) 5. Electrical utility distribution (Port-owned only) 6 Electrical service 7 Buildings (unless solely for Third Party us_age) 8 Potable water service to buildings and piers (Port-owned only) 9 Fire water service 10. Data systems (Lessee-owned) 11. Data systems (Port-owned) 12. Sanitary sewer (Port-owned) 13. Spill containment and response systems 14. Fire suppression and all alarm and monitoring (incl. ?re and security) 15. Camera and surveillance monitoring (Port-owned) 16. Camera and surveillance monitoring (Lessee-owned) 17. Tenant improvements (incl. pipelines, containment and transfer systems) 18. All improvements made and owned by Port; not for use by Lessee 19. Perimeter fencing and gates 20. Sweeping and sn_ow removal (except as required due to Third Party use) 21. Striping (unless solely for purposes of Lessee operations) 22. Security and access controls (except durigglhird Party usage) 23. Yard pole lighting and re-lamping (annual) 24. Sig?ge (unless solely for purposes of Lessee operations) 25. Storm water systems, including cleaning, maintenance, repair and maintenance of permits 41 H0U23410546.8 140417Lease(NWIW-v5) Responsibility Usage R_ights Area (Lease Section 2) Port Lessee 1. EB-1 Access Road; including pavement 2. Area Lighting (if applicable) including re-lamping (annual) 3. Fire water service 4. Lessee easements and related pipelines and systems. including but not limited to culverts 5. Access controls (except to areas used solely by Lessee) 6. Sweepingand snow removal 7. Pest control 8. Storm water and related easements supporting Premises 9. Storm water outfalls (unless exclusively serving Premises) 10. Storm water systems, including cleaning, maintenance, repair and maintenance of permits (except systems solely supporting the Premises) Notes: 1. This Exhibit is intended to allocate and clarify maintenance responsibilities pursuant to the Lease. In the event of any conflict between this Exhibit and the Lease terms, the Lease shall control. 2. If any improvements are added to the Premises in the future for which maintenance is not allocated pursuant to this Exhibit, Lessee shall perform all maintenance. repair and replacement of such improvements at Lessee?s cost. 3. Responsibilities for potable and fire water services shall include annual inspections and back-?ow prevention, testing and certi?cation. 4. Annual certi?cation of all fire hydrants required to be done by certi?ed technicians. 5. All electrical and plumbing work is required to be done by certified or licensed technicians. 6. Protections, inspection, repair and maintenance of all Lessee-owned improvements is the sole responsibility of Lessee. 7. To the extent practical, all maintenance and repair work accomplished by the Port will be undertaken and completed in a timely manner during normal business/operating hours. Work scheduled outside of normal business/operating hours for the sole convenience of the Lessee and contrary to usual practice may involve charges to the Lessee for extra costs due to scheduling. 8. Structural Best Management practices (associated with catch basins, coalescing plate systems, tide gates, etc.) and Best Management operations and maintenance are NPDES storm water permit compliance requirements. 42 140417Lease(NWlW-v5) EXHIBIT MEMORANDUM OF LEASE THE STATE OF WASHINGTON KNOW ALL MEN BY THESE PRESENTS: COUNTY OF PIERCE Date: Lessor: PORT OF TACOMA Lessor's Address: PO. Box 1837, Tacoma, WA. 98401 Lessee: NORTHWEST INNOVATION WORKS, TACOMA, LLC Lessee?s Address: 13215 SE. Mill Plain Blvd. Suite 08331, Vancouver. WA. 98684 Date of Lease: Premises: See Exhibit A attached hereto Term: 30 years plus 1 renewal term of 25 years subject to mutual agreement of the parties each acting in its sole and absolute discretion. Additional Provisions: The Lease is incorporated by reference and is binding on Lessor and Lessee. If a con?ict exists between any term of this Memorandum of Lease and the Lease, the Lease controls. LESSOR: PORT OF TACOMA By: Name: Title: LESSEE: NORTHWEST INNOVATION WORKS, TACOMA, LLC By: Name: Title: 43 140417Lease(NWlW-v5) State of Washington) ss County of Pierce I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that helshe signed this instrument. on oath stated that helshe was authorized to execute the instrument and acknowledged it as the of the PORT OF TACOMA to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: Printed Name of Notary: Notary Public in and for the State of Washington My commission expires on State of Washington) 55 County of Clark I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that helshe signed this instrument, on oath stated that helshe was authorized to execute the instrument and acknowledged it as the of NORTHWEST INNOVATION WORKS. TACOMA. LLC to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated Printed Name of Notary: Notary Public in and for the State of Washington My commission expires on [Attach Exhibits] 44 140417Lease(NWlW-v5)