4f attach

LEASE AGREEMENT
Between
PORT OF SEATTLE
And
CONGLOBAL INDUSTRIES, INCLLC. 










POS Term Lease Agreement, AGREEMENT# 
Tenant's Name
XX/XX/201X

TABLE OF CONTENTS

SECTION 1 : LEASED PREMISES .............................................................................................. 1
SECTION 2 : TERM ...................................................................................................................... 1
SECTION 3 : RENT ....................................................................................................................... 2
SECTION 4 : SECURITY ............................................................................................................ 43 
SECTION 5 : USE OF PREMISES .............................................................................................. 54 
SECTION 6 : UTILITIES ............................................................................................................. 65 
SECTION 7 : ALTERATIONS; OWNERSHIP OF CERTAIN INSTALLATIONS .................. 75 
SECTION 8 : MAINTENANCE AND REPAIR ......................................................................... 86 
SECTION 9 : TAXES ................................................................................................................... 96 
SECTION 10 : COMMON AREAS ........................................................................................... 107 
SECTION 11 : INSURANCE AND INDEMNITY ................................................................... 107 
SECTION 12 : DAMAGE OR DESTRUCTION ..................................................................... 1310 
SECTION 13 : ASSIGNMENT AND SUBLEASE ................................................................. 1411 
SECTION 14 : DEFAULT ....................................................................................................... 1512 
SECTION 15 : TERMINATION OTHER THAN FOR DEFAULT ....................................... 1613 
SECTION 16 : ACCESS; EASEMENTS ................................................................................. 1814 
SECTION 17 : NONWAIVER; RIGHT TO PERFORM......................................................... 1815 
SECTION 18 : SURRENDER AND HOLDING OVER ......................................................... 1916 
SECTION 19 : ENVIRONMENTAL STANDARDS .............................................................. 2016 
SECTION 20 : MISCELLANEOUS ........................................................................................ 2118 
SECTION 21 : SIGNATURES ................................................................................................. 2421 
SECTION 22 : ACKNOWLEDGMENTS ............................................................................... 2521 










POS Term Lease Agreement, AGREEMENT#            - i - 
Tenant's Name
XX/XX/201X

LEASE AGREEMENT
THIS LEASE AGREEMENT (the "Lease") is made as of this ____ day of ___________,
20___, by and between the PORT OF SEATTLE, a Washington municipal corporation ("the
Port"), and CONGLOBAL INDUSTRIES, INCLLC., a Delaware corporation limited liability
company ("Lessee").
For and in consideration of the mutual promises, covenants and conditions hereinafter set
forth, the parties agree as follows:
SECTION 1: LEASED PREMISES
1.1.   Premises. The Port hereby leases to Lessee, and Lessee hereby leases from the
Port, the following described premises ("the Premises") located at the Port property commonly
known as Terminal 106 West and Terminal 108, a legal description of which is attached hereto
as Exhibit A:
Approximately 479,550 square feet of land area located at Terminal 108 (Area A) and
approximately 378,026 square feet of land area, inclusive of a 32,640 square-foot
shop building, located at Terminal 106 West (Area B), _____ space, commonly
referred to as Suite _____ within Building _____, all as shown on the attached
Exhibit B. 

Subject to the rights reserved to the Port in this Lease, the Premises extend to the centerline of
party/demising walls and to the exterior faces of any exterior walls and from the structural
flooring to ceiling, specifically including any plenum above a drop/suspended ceiling. The Port
and Lessee agree that the Premises are, and shall be deemed for all purposes to be, 857,576
square feet as set forth above. 
1.2.   Street Use Area. The Port has the right upon thirty (30) days advance notice to
Lessee to delete the 2,678 square feet street right of way area shown on Exhibit B in the event
the current street use permit number 34821 with the City of Seattle Department of Transportation
is terminated. In the event the Port deletes this area, the Port will revise the rent under paragraph
3.1 of this lease. 
1.3.   This Lease is subject and subordinate to the provisions of the Port Management
Agreement between the Port and the Washington Department of Natural Resources, attached as
Exhibit _____ and incorporated by this reference.
1.4.1.3.Acceptance of the Premises. Lessee has examined the Premises, accepts them in
their present condition, and agrees to make any changes in the Premises necessary to conform to
federal, state and local law applicable to Lessee's use of the Premises.
1.5.1.4.Quiet Enjoyment. So long as Lessee is not in default under this Lease and subject
to the specific provisions, covenants and agreements contained in this Lease, the Port covenants
and agrees that the quiet and peaceful possession and enjoyment of the Premises by Lessee shall
not be disturbed or interfered with by the Port or by any other party claiming by or through the
Port.
SECTION 2: TERM
2.1.   Lease Term. This Lease shall be for a term of tentwelve (1012) years, beginning
January 1, 2015[JBC1], and ending December 31, 202426. 
material [tht2] 180365
2.1.   Option to Extend. If Lessee is in compliance with the terms and conditions of this
Lease, Lessee has, upon written notice to the Port given not less than ___ days or more than ___
days in advance of expiration of the initial (or extended) Lease term, the option to renew this
Lease for _____ (___) additional _____ (___) year terms.

POS Term Lease Agreement, AGREEMENT#            - 1 - 
Tenant's Name
XX/XX/201X

2.2.   Possession. If the Port shall be unable for any reason to deliver possession of the
Premises, or any portion thereof, at the time of the commencement of the term of this Lease, the
Port shall not be liable for any damage caused thereby to Lessee, nor shall this Lease thereby
become void or voidable, nor shall the term specified herein be in any way extended, but in such
event Lessee shall not be liable for any Rent until such time as the Port can deliver possession. If
Lessee shall, in the interim, take possession of any portion of the Premises, Lessee shall pay as
Rent the full rent specified herein reduced pro rata for the portion of the Premises not available
for possession by Lessee. If the Port shall be unable to deliver possession of the Premises at the
commencement of the term of this Lease, Lessee shall have the option to terminate this Lease by
at least thirty (30) days' written notice, unless the Port shall deliver possession of the Premises
prior to the effective date of termination specified in such notice. If Lessee shall, with the Port's
consent, take possession of all or any part of the Premises prior to the commencement of the term
of this Lease, all of the terms and conditions of this Lease shall immediately become applicable,
with the exception that Lessee shall not be obligated to pay any Rent for the period prior to the
commencement of the term of this Lease unless otherwise mutually agreed.
SECTION 3: RENT
3.1.   Base Rent. Commencing on the commencement date January 1, 2015, Lessee
agrees to pay as rent ("Base Rent") for the Premises the sum of set forth below _____ AND
_____/100 DOLLARS ($_____) per per month, plus applicable taxes. The monthly Base Rent is
generally computed as follows:
857,576 sq. ft. x monthly rate = monthly Base rRent
Monthly rent x 12 = annual rent
LEASE   MONTHLY RATE:   MONTHLY    ANNUAL
YEAR    PER SQ.FT.     RENT     RENT
1         $.1100       $94,333.36    $1,132,000.32
2         $.1155       $99,050.03    $1,188,600.34
3         $.1213       $104,023.97    $1,248,287.63
4         $.1273       $109,169.42    $1,310,033.10
5         $.1337       $114,657.91    $1,375,894.93
6         $.1404       $120,403.67    $1,444,844.04
7         $.1474       $126,406.70    $1,516,880.43
8         $.1548       $132,752.76    $1,593,033.18
9         $.1625       $139,356.10    $1,672,273.20
10         $.1706       $146,302.47    $1,755,629.59
11         $.1792       $153,677.62    $1,844,131.43
12         $.1881       $161,310.05    $1,935,720.55

TBD - negotiations

Base Rent is generally computed as follows:
_____ sf _____ @ $_____/sf/yr = $_____/yr  12 = $_____/mo.*
*plus applicable taxes.
The Base Rent shall be paid to the Port in advance on the first day of each and every month
during the term, at such place as the Port may designate, without any prior demand, and without
any abatement, deduction or setoff whatsoever. If the term commences on any day other than the
first day of a calendar month, Base Rent for any fractional month shall be prorated based upon
the actual number of days in such fractional month.
3.1.3.2.Adjustments to Base Rent.
3.2.1.     Consumer Price Index. If Lessee, with the consent of the Port, holds
over after the expiration or sooner termination of this Lease, tThe Base Rent stated in Section
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XX/XX/201X

3.13.1 shall be adjusted October 1, 2026on the anniversary of the commencement date and every
twelfth (12th) month thereafter through the term of this Lease, including any extension term (if
any), by a percentage equal to the percentage increase for the previous twelve (12) month period
in the Consumer Price Index for All Urban Consumers, U.S. City Average, all items, as
published by the United States Department of Labor, Bureau of Labor Statistics, or at the Port's
option for the Seattle-Tacoma-Bremerton Area (19824= 100) (the "CPI"). In no event will the
Port adjust the Base Rent downward as a result of a change in the CPI. If the CPI is not
published for any month pertinent to such calculation, the percentage adjustment shall be
calculated with reference to the most recent month for which the CPI has been published. If the
CPI is discontinued or revised during the Lease term, the Port, at its sole option may use such
other government index or computation with which it is replaced shall be used in order to obtain
substantially the same results as would be obtained if the CPI had not been discontinued or
revised. Duwamish River industrial area [tht3] Except for the stormwater control project
improvements set forth in Section 7.2, [tht4]tfair market value of
Port and Lessee shall each appoint one (1) appraiser within fifteen
(15) days after a written notice requesting dispute resolution shall have been given by one party
to the other. Each party shall notify the other of the name of its selected appraiser. If either the
Port or Lessee fails to appoint an appraiser within ten (10) days after receipt of the other party's
notice identifying its appraiser, the appraiser selected by the other party shall be the sole
appraiser and his or her determination of Value shall be final and binding on both parties. No
appraiser shall act as an advocate for either party but shall be directed to act impartially and
objectively.
If two (2) appraisers are selected, the appraisers shall be given
identical instructions directing each to prepare an appraisal of the relevant Value in accordance
with the requirements of the applicable provision of this Lease. Each appraiser shall be directed
to complete the appraisal within thirty (30) days after the appointment of the last appointed
appraiser and shall simultaneously exchange their reports. The appraisers shall then meet and
confer in good faith to determine the Value in writing. If the appraisers agree on a Value, they
shall notify Lessor and Lessee thereof and the joint determination shall be conclusive and
binding on Lessor and Lessee.
If the two (2) appraisers cannot reach agreement within thirty (30)
days after their first meeting, the parties shall again meet and attempt to agree on the relevant
Value. If they cannot agree on the Value within a period of fifteen (15) additional days, then the
two appraisers shall agree upon and appoint a third qualified appraiser. The third appraiser shall
be given the instructions provided to the initial appraisers and the appraisals prepared by the first
two appraisers. The third appraiser shall be instructed to select which of the two appraisals
submitted most closely reflects the Value being appraised within thirty (30) days after the
appointment of the third appraiser. The third appraiser shall not be permitted to propose a middle
ground or any modification of either of the proposed valuations or modify them in any way and
must select one of the two valuation reports. The third appraiser shall not conduct a hearing but,
in the presence of the parties and the other appraisers, may ask each of the appraisers questions
concerning its appraisal and the methodology employed. The determination of the third appraiser
shall be conclusive and binding on Lessor and Lessee.
If the two (2) appraisers appointed by the parties fail to agree upon
and appoint a third appraiser, the third appraiser shall be appointed the parties or if they cannot
agree then the third appraiser shall be appointed by the presiding judge of the King County
Superior Court or any successor court having jurisdiction of the Property upon application by
either party upon ten (10) days' notice to the other party.
3.1.1.     All appraisers appointed pursuant to this Paragraph 28 shall be
members in good standing of the Appraisal Institute who hold the MAI designation ("MAI")
with an office in the greater Seattle area. If the Appraisal Institute ceases to exist then the parties
shall select appraisers having qualifications substantially equivalent to the qualifications of
members in good standing of the Appraisal Institute who hold the MAI designation on the date
hereof. Each appraiser appointed shall be knowledgeable and experienced with appraisal
procedures relating to ground leases and property values in Seattle, Washington and the
Duwamish industrial district sub-market.

POS Term Lease Agreement, AGREEMENT#            - 3 - 
Tenant's Name
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3.1.2.     Market Rate. The Base Rent stated in Section 3.1 shall be subject to
renegotiation effective at the end of the _____ month following the commencement of this Lease
and every _____ months thereafter in the event that the Port gives to Lessee written notice of the
Port's election to renegotiate the Base Rent applicable to the forthcoming rent period not less
than 180 nor more than 270 days prior to an effective date of the commencement of the rent
period. In the absence of such notice, the Base Rent applicable for the prior rent period shall
apply to the forthcoming rent period also. Promptly following such a notice of renegotiation, the
parties shall negotiate in good faith for a renegotiated Base Rent for the forthcoming rent period.
Unless expressly provided to the contrary in another paragraph of this Lease, such renegotiated
Base Rent shall be the fair market rental value of the Premises (determined on a square footage
or other appropriate basis customarily used for comparable properties) as compared with such
rental value being obtained on other premises for similar use in the Greater Seattle area. The
value of any improvements to the Premises financed by Lessee at no cost to the Port shall be
excluded in determining the fair market rental value of the Premises. In the event that the parties
cannot agree on the Base Rent prior to sixty (60) days before the effective date for rent
renegotiation, the Base Rent shall be determined, according to the foregoing formula, by three
arbitrators, each of whom shall be a member of either the Society of Industrial Realtors or of the
Washington-British Columbia Chapter of the American Institute of Real Estate Appraisers and
shall be experienced in the evaluation of the type of premises subject to this Lease. Each party
shall select and fully compensate one of these arbitrators, and the third arbitrator shall be selected
by the other two and compensated in equal shares by the parties.
3.2.3.3.Late Charges.
3.2.1.3.3.1. Lessee hereby acknowledges that late payment by Lessee to the Port
of Rent, or any portion thereof, or any other sums due hereunder will cause the Port to incur
costs not otherwise contemplated by this Lease. Accordingly, if any installment of Rent, or any
portion thereof, or any other sum due from Lessee shall not be received by the Port within
fifteenten (1015) days after notice from the Port such amount shall be due is overdueshall be due,
then, without requirement for notice to Lesseewithout any requirement for notice to Lessee,
[JBC5]Lessee shall pay the Port a late charge equal to 5% of such overdue amount. The parties
agree that such late charge represents a fair and reasonable estimate of the costs the Port will
incur by reason of late payment by Lessee. Acceptance of such late charge by the Port shall in no
event constitute a waiver of Lessee's default with respect to such overdue amount, nor prevent
the Port from exercising any of the other rights and remedies granted hereunder.
3.2.2.     In the event that a late charge is payable in this Lease or otherwise,
whether or not collected, for three (3) installments of Rent and/or other remuneration in any 12-
month period, then Rent and/or other remuneration shall automatically become due and payable
quarterly in advance, rather than monthly, notwithstanding Section 3.1 or any other provision of
this Lease to the contrary.
3.2.3.3.3.2. In addition to the late charges provided for in this Section, interest
shall accrue on any unpaid Rent and/or other remuneration, or any other sums due hereunder, at
the rate of 18% per annum or the maximum rate provided by law, whichever is less, ("the
Default Rate") from the date due until paid.
3.3.3.4.Use of Term Rent. The Port and Lessee agree that the term "Rent" shall mean and
refer collectively to sums denominated as either Base Rent, Percentage Rent (if any), Additional
Rent (if any) or any such other sums or charges otherwise payable by Lessee under the terms of
this Lease. Failure by Lessee to pay any sum denominated as Rent shall entitle the Port to pursue
any or all remedies specified in this Lease as well as remedies specified in RCW Chapter 59.12
or otherwise allowed by law.
SECTION 4: SECURITY
4.1.   Security. Lessee shall, upon execution of this Lease, obtain and deliver to the Port
a good and sufficient corporate surety company bond, irrevocable stand-by letter of credit, cash
deposit or other security in an amount equal to three (3) months' the Base Rent_____ Base Rent
(hereinafter referred to as "Security"), to secure Lessee's full performance of this Lease,
including the payment of all fees and other amounts now or hereafter payable to the Port
hereunder. The amount, form, provisions and nature of the Security, and the identity of the surety
or other obligor thereunder, shall at all times be subject to the Port's approval. The Security shall
POS Term Lease Agreement, AGREEMENT#            - 4 - 
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XX/XX/201X

remain in place at all times throughout the full term of this Lease and throughout any holdover
period. If the Security is in a form that periodically requires renewal, Lessee must renew the
Security not less than 45 days before the Security is scheduled to expire. No interest shall be paid
on the Security and the Port shall not be required to keep the Security separate from its other
accounts. No trust relationship is created with respect to the Security.
4.2.   Return of Security. The Security is a part of the consideration for execution of this
Lease. If Lessee shall have fully performed all terms and conditions of this Lease, any cash
deposit security shall be paid to Lessee within thirty (30) days following the termination (or
expiration) date without interest; otherwise the Port shall, in addition to any and all other rights
and remedies available under this Lease or at law or equity, retain title thereto.
4.3.   Application of Security. The Port may apply all or part of the Security to unpaid
Rent or any other unpaid sum due hereunder, or to cure other defaults of Lessee. If the Port uses
any part of the Security, Lessee shall restore the Security to its then-currently required amount
within fifteen (15) days after the receipt of the Port's written request to do so. The retention or
application of such Security by the Port pursuant to this Section does not constitute a limitation
on or waiver of the Port's right to seek further remedy under law or equity.
SECTION 5: USE OF PREMISES
5.1.   Use of Premises. Lessee shall use the areas A and B of the Premises for _____
receiving and dispatching intermodal transportation equipment cargo containers and truck chassis;
storage, repair, leasing and sale of intermodal transportation equipmentcargo containers and chassis,
and activities reasonably related or incidental thereto including without limitation [tht6]office and
administrative uses. Lessee and shall not use them the Premises for any other purpose than stated
above without the written consent of the Port. 
5.2.   General Standards Regarding Use.
5.2.1.     Lessee shall occupy and use the entire Premises for the purpose set
forth in Section 5.1 in a first-class manner continuously during the entire term of this Lease, with
the exception of temporary closures for such periods as may reasonably be necessary for repairs
or redecorating or for reasons beyond Lessee's reasonable control.
5.2.2.     Lessee shall not use or occupy or permit the Premises or any part
thereof to be used or occupied, in whole or in part, in a manner which would in any way: (i)
violate any present or future Legal Requirements, (ii) violate any of the covenants, agreements,
provisions and conditions of this Lease, (iii) violate the certificate of occupancy then in force
with respect thereto, (iv) as will constitute a public or private nuisance, or (v) [tp37] impair, in the
Port's reasonable judgment, with the character, reputation or appearance of the Port, or (vi)
occasion commercially unreasonable discomfort, inconvenience or annoyance to either the Port
or its adjoining tenants. discomfort, inconvenience or annoyance to either the Port or its
adjoining tenants [tht8]. For purposes of this Lease, the term "Legal Requirements" shall mean and
refer to all laws, statutes and ordinances including building codes and zoning regulations and
ordinances and the orders, rules, regulations and requirements of all federal, state, county, city or
other local jurisdiction departments, agencies, bureaus, offices and other subdivisions thereof, or
any official thereof, or of any other governmental, public or quasi-public authority, which may
be applicable to or have jurisdiction over the Premises, or the sidewalks or streets adjacent
thereto and all requirements, obligations and conditions of all instruments of record on the date
of this Lease.
5.2.3.     Lessee shall not conduct or permit to be conducted without the prior
written consent of the Port, any auction, fire, bankruptcy, "going out of business" or other
distress sales of any nature upon or from the Premises, whether voluntary, involuntary, pursuant
to any assignment for the payment of creditors, or pursuant to any bankruptcy or other
insolvency proceeding, unless ordered by a court of competent jurisdiction.
5.3.   Continuing Compliance. Throughout the term of this Lease, Lessee shall, at its
own cost and expense, promptly and diligently observe and comply with: (i) all Legal
Requirements (including, without limitation, those relating to environmental matters) and the
requirements of any fire insurance rating organization and all insurance companies writing
policies covering the Premises or any part or parts thereof; (ii) all applicable rules and
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regulations of the Port pertaining to the building or other realty of which the Premises are a part
now in existence or hereafter promulgated for the general safety and convenience of the Port, its
various tenants, invitees, licensees and the general public so long as such rules are reasonable
and [tht9] uniformly applicable to and enforced against all Port tenants; and (iii) all permits,
licenses, franchises and other authorizations required for Lessee's use of the Premises or any part
thereof. Lessee shall comply with each of these whether or not they are now in force or at any
time in the future may be passed, enacted, or directed.
5.4.   Terminal Security.
5.4.1.     Without limiting the generality of either Section 5.2 or 5.3, Lessee
shall comply at all times with all local, state and federal laws, rules and regulations relating to
homeland security ("Security Laws") applicable to the Premises or any larger facility of which
the Premises are a part. If the Premises, either directly or as a result of its location within a larger
Port facility, are subject to a government-required security plan ("Security Plan"), Lessee will
fully and promptly comply with the Security Plan. Lessee shall be solely responsible for all of its
costs of complying with any applicable Security Laws or Security Plan as well as any fines or
penalties incurred (whether by Lessee or the Port) as result of its failure to comply with such
Security Laws or Security Plan.
5.4.2.     Lessee shall notwithout the Port's separate, express written
agreementundertake any activities or handle any cargo that would either: (i) subject the
Premises, or any larger facility of which the Premises are a part, to any Security Laws to which it
is not already then-subject, or (ii) require the adoption of, or any material modification to, a
Security Plan applicable to the Premises, or any larger facility of which the Premises are a part
(together, "Additional Security Requirement"). In addition to its own costs of complying with
any Additional Security Requirement, Lessee shall further be responsible to the Port for any
costs it incurs in complying with any Additional Security Requirement or any fines or penalties
incurred as a result of its failure to implement, or comply with, such Additional Security
Requirement.
5.5.   No Liens. Lessee will not directly or indirectly create or permit to be created
and/or to remain, a Lien upon the Premises, including any Alterations (as defined below in
Section 7.1), fixtures, improvements or appurtenances thereto, except those Liens expressly
permitted by in writing by the Port. In the event any such Lien(s) have been created by or
permitted by Lessee in violation of this provision, Lessee shall immediately discharge as of
record, by bond or as otherwise allowed by law, any such Lien(s). Lessee shall also defend (with
counsel approved by the Port), fully indemnify, and hold entirely free and harmless the Port from
any action, suit or proceeding brought on or for the enforcement of such lien(s). As used in this
Section, "Lien" shall mean and refer to any mortgage, lien, security interest, encumbrance,
charge on, pledge of, conditional sale or other encumbrance on the Premises, any Alteration,
fixture, improvement or appurtenance thereto, or any larger building and/or property of which
the Premises may be a part.
5.6.   Signs. No sign, symbols or other advertising matter shall be attached to or painted
on or within the Premises, including windows and doors thereof, without the prior written
approval of the Port. At the expiration or sooner termination of this Lease, all signs, symbols,
advertising matter or canopies placed on or in the Premises by Lessee shall be removed by
Lessee at its expense, and Lessee shall repair any damage or injury to the Premises and correct
any unsightly condition caused by the maintenance or removal of said signs or other advertising
matter.
SECTION 6: UTILITIES
6.1.   Utilities. Lessee shall be liable for and shall pay throughout the term of this Lease,
all charges for all utility services furnished to the Premises, including, but not limited to, light,
heat, electricity, ADT or equivalent, gas, water, sewerage, recycling, garbage disposal and
janitorial services. In the event that the Premises are part of a building or part of any larger
premises to which any utility services are furnished on a consolidated or joint basis, Lessee
agrees to pay to the Port Lessee's pro rata share of the cost of any such utility services,
specifically including a reasonable cost associated with management of such utility services. 
Such management fee shall not exceed 2% of the cost of Lessee's pro rata utility charges.
Lessee's pro rata share of any such services may shall be computed based the percentage of
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Lessee's square footage of the Premises actually served by and utilizing such utility relative to
the square footage of other tenant's premises served by the utility. by the Port on any reasonable
basis, and separate metering or other exact segregation of cost shall not be required. Lessee shall
have the right to auditaudit the Port's pro rata al location of charges. In the event such auditaudit
[tht10] determines Lessee over-paid its pro rata share, then the Port shall reimburse such
overpayment and Lessee's reasonable audit costs within thirty (30) days of Lessee's notice. If
the audit determines the Lessee underpaid its pro rata allocation then Lessee shall remit such
underpayment to the Port within (30) days of receipt of the audit report. 
6.2.   Utility Interruptions. With respect to any utility service provided to the Premises
as a part of a building or any larger premises of which the Premises are a part, the Port shall have
the right to shut down electrical or other utility services to the Premises when necessitated by
safety, repairs, alterations, connections, upgrades, relocations, reconnections, or for any other
reason, with respect to any such utility system (singularly or collectively, "Utility Work"),
regardless of whether the need for such Utility Work arises in respect of the Premises, any other
part of the building or larger premises. Whenever possible, the Port shall give Lessee no less than
two (2)thirtyten (310) [tht11]days prior notice for such utility shutdown. The Port shall not be
liable to Lessee for any losses, including loss of income or business interruption, resulting from
any interruptions or failure in the supply of any utility to the Premises, except when such losses
result from the Port's gross gross [tht12]negligence or intentional misconduct. Base Rent and
Additional Rent shall abate for any portion of the Premises untenantable due to Utility Work
from the third consecutive day of the Utility Work until restoration of utility service. 
6.3.   Energy Conservation. The Port shall have the right to institute, at no cost to
Lessee, such reasonable policies, programs and measures as may be necessary or desirable, in the
Port's discretion, for the conservation and/or preservation of energy or energy related services, or
as may be required to comply with any applicable codes, rules and regulations, whether
mandatory or voluntary.. Lessee shall be required to comply with any applicable mandatory City
codes, rules, and regulations, at Lessee's cost. 
SECTION 7: ALTERATIONS; OWNERSHIP OF CERTAIN INSTALLATIONS
7.1.   Limitation on Alterations. Lessee shall make no changes, alterations, additions,
substitutions or improvements (collectively referred to as "Alterations") to the Premises in
excess of $250,000.00, unless Lessee shall first deliver to the Port plans and specifications for,
and obtain the Port's prior written approval of, such Alterations. All such Alterations shall be
done at Lessee's sole cost and expense and at such times and subject to such conditions as the
Port may from time to time designate. 
7.2.   Storm Water Improvements. New Section. Insert wording.
7.2.1.     Lessee shall permit and construct that certain storm water treatment
and control project for the Property in substantially the form described in [INSERT RELEVANT
TECHNICAL REPORT OUTLINING THE STORMWATER PROJECT] (the "Storm Water
Project").
7.2.2.      Lessee shall pay the cost to permit and construct the Storm Water
project.
7.2.3.     Upon the expiration or termination of this Lease, the Storm Water
Project improvements will be the property of the Port.
7.3.   INSERT REGARDING SYSTEM AND INVOICES REQUIRED?
If this Lease expires or is earlier terminated in accordance with the
terms and condition hereof, then the Port shall reimburse Tenant for the Storm Water Project
development, installation and capital costs (both hard and soft costs) in accordance with the
following schedule:
Lease Year   Percentage of Storm Water
Termination  Project Costs Reimbursed
1        100%
2        80%
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3        60%
4        40%
5        20%

7.1.7.4. [tht13]Requirements for All Alterations. In addition to, and not in lieu of, conditions
imposed by the Port pursuant to Section 7.1, any alterations or improvements permitted by the
Port shall be performed: (i) in a good and workmanlike manner; (ii) in compliance with all Legal
Requirements; and (iii) in a manner which will not unreasonably interfere with or disturb other
tenants of the Port. In addition, prior to commencement of any Alterations, Lessee shall furnish
to the Port proof of insurance for any and all contractors working on behalf of Lessee in the
minimum form and limits as set forth in Sections 11.2.1.1 and 11.2.1.2. Any Alterations shall
immediately become the property of the Port without any obligation on its part to pay therefor,
and shall not be removed by Lessee unless directed to do so in connection with any consent
issued under Section 7.1 or pursuant to Section 18:17:.
7.5.   Trade Fixtures. Lessee shall retain ownership of all trade fixtures and business
equipment and furnishings from time to time installed by Lessee at its expense. Lessee may
remove any of such fixtures, equipment or furnishings at any time during the term and shall
remove all thereof prior to the expiration of the term. Any such property not removed at the
expiration of the term shall, at the election of the Port, become the property of the Port without
payment to Lessee, or be deemed abandoned and removed by the Port, at Lessee's expense.
Upon any removal of such property, Lessee shall promptly repair any and all damage to the
Premises caused thereby and reimburse the Port for its costs and expenses in removing any such
property not removed by Lessee and repairing any such damage not repaired by Lessee; this
covenant shall survive the termination of this Lease. 
7.2. 
SECTION 8: MAINTENANCE AND REPAIR
8.1.   Maintenance and Repair by Lessee.
8.1.1.  Lessee shall, at its sole cost and expense, keep the Premises  both outside
and inside, together with all Alterations, equipment and installations  in good order, condition
and repair at all times. Lessee shall make all repairs and replacements (ordinary as well as
extraordinary, foreseen and unforeseen) which may be necessary or required so that at all times
the Premises are in good order, condition and repair. Without limiting the generality of the
foregoing, Lessee shall keep the glass of all windows and doors on the Premises clean and
presentable, shall replace all cracked or broken glass in the Premises, shall keep the mechanical
and electrical systems and all drains [JBC14] clean free of obstructions and in a good state of repair,
shall protect the sprinkler system and all pipes and drains so that they will not freeze or become
clogged and shall not permit or suffer any waste, damages, or disfigurement to or upon the
Premises or any part thereof. 
8.1.2.  Lessee will be solely and continuously responsible for performing ongoing
maintenance of the Premises storm water system and in compliance with its industrial
stormwater permits. Lessee will also be responsible for the performance and cost of sweeping,
cleaning of pipes and catch basins, and other activities that may be necessary to maintain
compliance with its industrial stormwater permits.

8.1.1.8.1.3.   Lessee shall also keep the Premises and entryways neat, clean and
in sanitary condition, free from infestation of pests and conditions which might result in
harborage for, or infestation of pests. As used in this Section, the word "pests," as used herein,
shall include without limitation, rodents, insects, and birds in numbers to the extent that a
nuisance is created. Lessee shall also specifically remove all snow and ice from the sideway in
front of the Premises.
8.2.   Maintenance and Repair by Port. The Port is under no obligation to undertake
maintenance repairs to the Premises and will only do so upon Lessee's request and agreement to
fully reimburse the Port, or upon such cost sharing as may be agreed to between the Port and
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Lessee. There shall be no abatement or reduction of Rent, except to the extent of the Port's gross
sole [tht15] negligence or intentional misconduct, and the Port shall not be responsible for any loss
or damages to Lessee's business, arising by reason of the Port making any repairs, alterations or
improvements except to the extent of the Port's gross negligence or intentional misconduct.
Notwithstanding anything to the contrary in Section 8.1, the Port shall repair and maintain the
roof (both structure and covering/membrane), exterior walls, foundation and building structure of
the Premises in good order, condition and repair. The Port shall perform this work at its sole cost
and expense, except to the extent that any such repairs may be required as a result of damage
caused by negligence of Lessee or its agents, employees, invitees or licensees, in which event the
work shall be at the cost or expense of Lessee. The Port shall perform such repair or maintenance
work called to its attention by Lessee within a reasonable period of time after receipt of such
notice by Lessee. There shall be no abatement or reduction of Rent, and the Port shall not be
responsible for any loss or damages to Lessee's business, arising by reason of the Port making
any repairs, alterations or improvements. 
SECTION 9: TAXES
9.1.   Payment of Taxes. Lessee shall be liable for, and shall pay throughout the term of
this Lease, all license fees and all taxes payable for, or on account of, the activities conducted on
the Premises and all taxes on the property of Lessee on the Premises and any taxes on the
Premises and/or on the leasehold interest created by this Lease and/or any taxes levied in lieu of
a tax on said leasehold interest and/or any taxes levied on, or measured by, the rentals payable
hereunder, whether imposed on Lessee or on the Port. With respect to any such taxes payable by
the Port which are on or measured by the Rent payments hereunder, Lessee shall pay to the Port
with each Rent payment an amount equal to the tax on, or measured by, that particular payment.
All other tax amounts for which the Port is or will be entitled to reimbursement from Lessee
shall be payable by Lessee to the Port at least fifteen (15) days prior to the due dates of the
respective tax amounts involved; provided, that Lessee shall be entitled to a minimum of ten (10)
days' written notice of the amounts payable by it.
9.2.   Personal Property Taxes. Lessee shall pay or cause to be paid, prior to
delinquency, any and all taxes and assessments levied upon all trade fixtures, inventories and
other real or personal property placed or installed in and upon the Premises by Lessee. If any
such taxes on Lessee's personal property or trade fixtures are levied against the Port or the Port's
property, and if the Port pays the taxes based upon such increased assessment, Lessee shall, upon
demand, repay to the Port the taxes so levied. 
9.3.   If [tht16] Lessee desires to contest any tax, assessment, reassessment, charge or other
item to be paid by it under this Lease, whether payable in the name of the Port, Lessee or both,
Lessee shall notify the Port of its intention to do so within thirty (30) days after it receives notice
of the filing of such lien or at least thirty (30) days prior to the delinquency of such tax,
assessment, charge or other item, as applicable. In either case, Lessee shall not be in default
under this Lease. Port shall not satisfy and discharge such lien or pay any such tax, assessment,
charge or other item until twenty (20) days after the later of the final determination of the
validity thereof or written notice from Port that it will satisfy or discharge the lien if Lessee fails
to do so. Within such period, Lessee shall satisfy and discharge such lien or pay and discharge
such tax, assessment, charge or other item, to the extent held valid, and all penalties, interest and
costs in connection therewith. The satisfaction and discharge of any such lien shall not, in any
case, be delayed until after execution of any judgment on the lien, nor shall the payment of any
such tax, assessment, charge or other item, together with penalties, interest and costs, in any case
be delayed until sale is made or threatened to be made of the whole or any part of the Premises or
improvements on account of such employment. Any such delay shall be a default of Lessee
under this Lease.[JBC17] 
9.4.   Indemnity of Port - Cooperation. Lessee shall protect, defend (with counsel
reasonably acceptable to the Port) and indemnify Lessor against all loss, cost, expense and
damage resulting from any contest under Paragraph 9.3, including reasonable attorneys' fees
incurred prior to the date Lessee undertakes Port's defense. If the amount at issue is greater than
$150,000 (increasing 3% per year over the Term), then upon notice from the Port to do so,
Lessee shall furnish the Port a corporate surety bond payable to the Port (or other security
acceptable to the Port) in an amount sufficient to pay the amount of the lien, tax, assessment,
charge or item contested, together with any penalties, interest and costs as the case may be.
Notwithstanding the issuance of such bond, Lessee shall satisfy and discharge such lien or pay
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such tax assessment, charge or other item and all penalties, interest and costs in connection
therewith, and shall protect and indemnify the Port as required herein. The Port shall cooperate
with Lessee in any such contest, including signing petitions or applications necessary to institute
or prosecute any such contest and providing Lessee with such information as Lessee may
reasonably request, provided Lessee pays all of the Port's reasonable out of pocket costs and
expenses incurred in connection with such contest.

SECTION 10: COMMON AREAS
10.1.  Control of Common Areas by Port. The parties acknowledge and agree that there
are no Common Areas within the Premises. [JBC18]The Port shall at all times have the exclusive
control and management of all parking areas, access roads, driveways, sidewalks, entrances,
exits, loading docks, signs, drainage facilities, landscaped areas, washrooms, stairways, hallways
and other areas, improvements, facilities and/or special services provided by the Port for the
general use, in common, of tenants of any larger property of which the Premises are a part
("common areas and facilities"). Without limiting the Port's right of control and management,
the Port specifically reserves the right to: (i) establish, modify from time to time, and enforce
reasonable rules and regulations governing the use of the common areas and facilities; (ii) police
the common areas and facilities; (iii) change the area, level, location and arrangement of parking
and other areas or facilities within common areas and facilities; (iv) provided Lessee is not
deprived of reasonable access to and use and enjoyment of its Premises, close all or any portion
of the common areas and facilities; and (v) do and perform such other acts in and to the common
areas and facilities as, in the use of good business judgment, the Port shall determine to be
advisable with a view to the improvement of the convenience and use thereof by the Port and
tenants of any larger property of which the Premises are a part.
10.2.  Outside Areas and Roof. The use of the outside area of the walls (other than the
front of the Premises) and the roof of the building in which the Premises are located is reserved
to the Port, which shall have the right to utilize the same for any purpose, including the
maintenance of signs.
10.3.10.2.    License. All common areas and facilities which Lessee is permitted to use
and occupy are used and occupied under a revocable license. If the amount of such areas or
facilities is revised or diminished, such revision or diminution shall not be deemed a constructive
or actual eviction, and the Port shall not be subject to any liability, nor shall Lessee be entitled to
any compensation or reduction or abatement of Rent except to the extent that such revision or
diminishment adversely affects Lessee's ingress, egress, use or quiet enjoyment of the Premises.
SECTION 11: INSURANCE AND INDEMNITY
11.1.  Indemnity.
11.1.1.    Except as otherwise provided in this Lease, TtThe Port, its officers,
employees and agents shall not be liable for any injury (including death) to any persons or for
damage to any property regardless of how such injury or damage be caused, sustained or alleged
to have been sustained by Lessee or by others, including but not limited to all persons directly or
indirectly employed by Lessee, or any agents, contractors, subcontractors, licensees or invitees of
Lessee, as a result of any condition (including existing or future defects in the Premises) or
occurrence (including failure or interruption of utility service) whatsoever related in any way to
Lessee's use or occupancy of the Premises and of areas adjacent thereto.
11.1.2.    Lessee shall defend (with counsel approved by the Port), fully
indemnify, and hold entirely free and harmless the Port and its Commissioners, officers, agents
and employees from any and all loss, damages, expenses, attorneys' fees, consultants' fees, court
costs and other costs for or from: (a) anything and everything whatsoever arising from the
condition of the Premises or out of thethe condition the Premises or out of the the use or
occupancy of the Premises by the Lessee or subtenant, licensee, invitee or concessionaire of
Lessee; and (b) any accident, injury, death or damage to any party however caused in or about
the Premises or upon the sidewalks adjacent to the Premises, whether or not caused by the
negligence of Lessee or any third party; and (c) any fault or negligence by Lessee or any
sublessee, licensee, invitee or concessionaire of the Lessee or of any officer, agent, employee,
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guest or invitee of any such person; and (d) any failure on Lessee's part to comply with any of
the covenants, terms and conditions contained in this Lease; provided, however, nothing herein
shall require Lessee to indemnify the Port from: (i) any accident, injury, death or damage to the
extent arising out of the solesole negligence of the Port or its Commissioners, officers, agents
and employees. Lessee agrees that the foregoing indemnity specifically covers actions brought
by its own employees, and thus Lessee expressly waives its immunity under industrial insurance,
Title 51, as necessary to effectuate this indemnity.; (ii) any liability, costs, expenses, damages,
administrative costs, investigation, response or remedial actions or costs arising from the Lower
Duwamish Waterway Superfund Site proceeding including without limitation any natural
resource damages.. 
11.1.3.    Notwithstanding anything to the contrary in Section 11.1.2, in the
event of the concurrent negligence of Lessee, its subtenants, licensees, assignees,
concessionaires, agents, employees, or contractors on the one hand and the negligence of the
Port, its agents, employees or contractors on the other hand, which concurrent negligence results
in injury or damage to persons or property of any nature and howsoever caused, and relates to the
construction, alteration, repair, addition to, subtraction from, improvement to or maintenance of
the Premises such that RCW 4.24.115 is applicable, Lessee's obligation to indemnity the Port as
set forth in this Section shall be limited to the extent of Lessee's negligence and that of Lessee's
officers, sublessees, assignees, agents, employees, contractors or licensees, including Lessee's
proportional share of costs, court costs, attorneys' fees, consultants' fees and expenses incurred
in connection with any claim, action or proceeding brought with respect to such injury or
damage.[JBC19] 
11.1.4.    LESSEE AND PORT AGREE AND ACKNOWLEDGE THAT
THIS PROVISION IS THE PRODUCT OF MUTUAL NEGOTIATION. Lessee's obligations
under this Section shall survive the expiration or earlier termination of this Lease.
11.2.  Insurance.
11.2.1.    Required Policies. Lessee shall obtain and keep in force, at its sole
cost and expense the following types of insurance, in the amounts specified and in the form
hereinafter provided for:
11.2.1.1.     General Liability Insurance. Lessee shall obtain and keep
in force a commercial general liability policy of insurance, written on ISO Form CG 00 01 10 01
(or equivalent), that protects Lessee and the Port, as an additional insured using ISO Form 20 26
(either 11 85 or 07 04 revision) or equivalent, against claims for bodily injury, personal injury
and property damage based upon, involving or arising out of the tenancy, use, occupancy or
maintenance of the Premises and all areas appurtenant thereto, and specifically including the
action/inaction of any subtenant, licensee or concessionaire. Such insurance shall be on an
occurrence basis providing single limit coverage in an amount not less than _____ two million
dollars ($2___,000,000) per occurrence. The policy shall not contain any intra-insured exclusions
as between insured persons or organizations. The policy shall contain a minimum $250,000 sublimit
that covers damage to premises rented or leased to Lessee, including fire damage. This limit
shall be identified on the Certificate of Insurance.
11.2.1.2.     Automobile Liability Insurance. Lessee shall obtain and
keep in force a commercial automobile liability policy of insurance, written on ISO Form CA 00
01 07 97 (or equivalent), that protects Lessee and the Port against claims for bodily injury and
property damage based upon, involving or arising out of motor vehicle operations on or about the
Premises and all areas appurtenant thereto. Lessee shall provide a Waiver of Subrogation on this
policy in favor of the Port. Such insurance shall cover any "Auto" (i.e. owned, hired and nonowned
) and shall be on an occurrence basis providing single limit coverage in an amount not less
than two _____ million dollars ($2___,000,000) per occurrence. The policy shall not contain any
intra-insured exclusions as between insured persons or organizations.
11.2.1.3.     Property Insurance. Lessee shall obtain and keep in force
"Special Extended" or "all risk" property insurance insuring loss or damage to Lessee's personal
property on or about the Premises and any Alterations (specifically including "betterments" and
"improvements") made by or for Lessee to the Premises. The policy shall include coverage for
any additional costs resulting from debris removal and reasonable amounts of coverage for the
enforcement of any ordinance or law regulating the reconstruction or replacement of the
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Premises including any undamaged sections of the Premises required to be demolished or
removed by reason of the enforcement of any Legal Requirement as the result of a covered cause
of loss. The amount of such insurance shall be equal to the full replacement cost of the Premises
(or the commercially reasonable and available insurable value thereof if, by reason of the unique
nature or age of the improvements involved, such latter amount is less than full replacement
cost). The policy shall also contain an agreed valuation provision in lieu of any coinsurance
clause. The Port of Seattle shall be included as an Additional Insured and Loss Payee on
Lessee's property insurance policy with respect to the Port's interest in Alterations.
11.2.1.4.     Protection and Indemnity Liability Insurance. Lessee shall
obtain and keep in force Protection and Indemnity liability insurance, written on a form
acceptable to the Port, protecting Lessee and the Port, as an Additional Assured, against claims
involving or arising out of operations in which owned or non-owned vessels, boats, work skiffs,
or floating platforms, are used on or about the Premises. Such insurance shall be on an
occurrence basis providing single limit coverage in an amount not less than _____ million dollars
($___,000,000) per occurrence. The policy shall not contain any intra-insured exclusions as
between insured persons or organizations.
11.2.1.5.     Liquor Liability Insurance. Lessee shall obtain and keep in
force liquor liability insurance, written on a form acceptable to the Port, protecting Lessee and
the Port, as an additional insured using ISO Form 20 26 (either 11 85 or 07 04 revision) or
equivalent, against claims involving or arising out of the service of liquor on or about the
Premises. Such insurance shall be on an occurrence basis providing single limit coverage in an
amount not less than _____ million dollars ($___,000,000) per occurrence. The policy shall not
contain any intra-insured exclusions as between insured persons or organizations.
11.2.1.6.11.2.1.4.    Other Insurance. Lessee shall further obtain and
keep in force such other and further insurance as the Port may from time to time reasonably
request for the protection by insurance of its interest in the Premises provided that such insurance
is generally available in the market at commercially reasonable terms, conditions, rates and
deductibles.
The limits of insurance specified in this Section shall be subject to periodic adjustment no more
frequently than every 5 years to reflect changes in insuring practices for similar properties in the
same geographic area and changes in insurance products.
11.2.2.    Insurance Policies.
11.2.2.1.     Insurance Companies. Insurance required hereunder shall
be in companies duly licensed to transact business in the State of Washington, and maintaining
during the policy term a General Policyholders Rating of 'A-' or better and a financial rating of
'IX' or better, as set forth in the most current issue of "Best's Insurance Guide."
11.2.2.2.     Policies Primary; Deductibles;. Per Location
Endorsement. All insurance to be carried by Lessee shall be primary to and not contributory with
any similar insurance carried by the Port, whose insurance shall be considered excess insurance
only. No insurance required herein shall contain a deductible or self-insured retention in excess
of $10150,000 without the prior written consent of the Port. If at any time during the term,
Lessee shall have in full force and effect a blanket policy of commercial general liability and
umbrella liability insurance covering the Premises and other premises and/or properties of
Lessee, such insurance shall satisfy the requirements hereof, provided said policy contains a
specific endorsement providing a minimum amount of coverage applicable to the Premises equal
to or greater than the amount required above (i.e. a "per location" endorsement).
11.2.2.3.     Termination; Renewal. No policy of insurance required
under this Lease shall be cancelable or subject to non-renewal or modification except after forty
five (45) days prior written notice to the Port. Lessee shall at least forty five (45) days prior to
the expiration of such policies, furnish the Port with evidence of renewals or "insurance binders"
evidencing renewal thereof, or the Port may order such insurance and charge the cost thereof to
Lessee, which amount shall be payable by Lessee to the Port upon demand.
11.2.2.4.     Evidence of Insurance. Lessee shall deliver, or cause to be
delivered, to the Port, certificates of insurance, additional insured endorsements, loss payee
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endorsements for property insurance, waivers of subrogation and any other documentation or
endorsement that provides evidence of the existence and amounts of such insurance, the
inclusion of the Port as an insured as required by this Lease, and the amounts of all deductibles
and/or self- insured retentions. Upon request by the Port, Lessee shall deliver or cause to be
delivered to the Port, certified copies of the policies of insurance that Lessee has purchased in
order for the Port to verify insurance coverage, limits, and endorsements or view any exclusions
to the Lessee's insurance policies.
11.2.2.5.     No Limitation of Liability. The limits of insurance required
by this Lease or as carried by Lessee shall not limit the liability of Lessee nor relieve Lessee of
any obligation hereunder.[JBC20] 
11.3.  Waiver of Subrogation. Without affecting any other rights or remedies, the Port
and Lessee (respectively for itself and on behalf of anyone claiming through or under it by way
of subrogation or otherwise) hereby waives any rights it may have against the Portother, its
officers, agents and employees (whether in contract or in tort) on account of any loss or damage
occasioned to Lessee the other arising out of or incident to the perils required to be insured
against under this Lease. Accordingly, the Port and Lessee shall cause each insurance policy
required by this Section 11.2 to further contain a waiver of subrogation clause. The effect of such
release and waiver of the right to recover damages shall not be limited by the amount of
insurance carried or required, or by any deductibles applicable thereto.
11.4.  Increase in Port's Cost of Insurance. Lessee shall not use the Premises in such a
manner as to increase the existing rates of insurance applicable to the buildings or structures of
which the Premises are a part. If it nevertheless does so, then, at the option of the Port, the full
amount of any resulting increase in premiums paid by the Port with respect to the buildings or
structures of which the Premises are a part, and to the extent allocable to the term of this Lease,
may be added to the amount of Rent and shall be paid by Lessee to the Port upon the monthly
rental day next thereafter occurring.
SECTION 12: DAMAGE OR DESTRUCTION
12.1.  Duty to Repair. If the Premises or any buildings or structures of which the
Premises are a part are damaged by fire, the elements, earthquake, accident or other casualty
(collectively, "Casualty"), the Port shall, except to the extent either party has the right to
terminate this Lease under Section 12.2, use reasonable efforts to repair and restore the Premises
and/or the buildings or structures of which the Premises are a part to substantially their former
condition to the extent permitted by then-applicable Legal Requirements; provided, however, the
Port's obligation to repair and restore shall not extend to any Alterations or any of Lessee's
personal property, specifically including that which Lessee retains ownership of under
Section 7.57.4.
12.2.  Right to Terminate. The Port or Lessee [tht21]may elect to terminate this Lease in
the event that the Port or Lessee, either in its sole judgment, concludes that the damage to the
Premises or any buildings or structures of which the Premises are a part cannot be repaired
within ninety thirty (390) days of the Casualty (with the repair work and the preparations
therefor to be done during regular working hours on regular work days). In the event that the Port
or Lessee elects to terminate this Lease, the terminating party Port shall advise the other party
Lessee of that fact within thirty (30) days of the date of the Casualty and such notice notify
Lessee shall include of the date, not more than ninety (90) days after the Casualty, on which the
Lease will terminate.
12.3.  Abatement of Rent. Unless Except to the extent the casualty results from Lessee's
negligence or breach of the terms of this Lease, the Base Rent and Additional Rent, if any, shall
be abated for any portion of the Premises that is rendered untenantable or inaccessible from the
period from the date of the Casualty through the date of substantial completion of the repairs to
the Premises (or to the date of termination of the Lease if either party shall elect to terminate the
Lease). Except to the extent of the Port's negligence or intentional misconduct, Tthe Port shall
not otherwise be liable to Lessee for any loss in the use in the whole or any part of the Premises
(including loss of business) and/or any inconvenience or annoyance occasioned by the Casualty,
by any damage resulting from the Casualty, or by any repair, reconstruction or restoration.

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12.4.  Waiver. Except as specifically set forth in this Lease, Lessee hereby waives any
right that Lessee may have, under any applicable existing or future law, to terminate this Lease in
the event of any damage to, or destruction of, the Premises or any buildings or structures of
which the Premises are a part.
SECTION 13: ASSIGNMENT AND SUBLEASE
13.1.  Prohibition. Lessee shall not, in whole or in part, assign, sublet, license or permit
occupancy by any party other than Lessee of all or any part of the Premises, without the prior
written consent of the Port in each instance. Lessee shall at the time the Lessee requests the
consent of the Port, deliver to the Port such information in writing as the Port may reasonably
require respecting the proposed assignee, subtenant or licensee including, without limitation, the
name, address, nature of business, ownership, financial responsibility and standing of such
proposed assignee, subtenant or licensee. Within twenty (20) business days after receipt of all
required information, the Port shall, in its sole discretion, elect one of the following: (a) to
consent to such proposed assignment, sublease or license or (b) to refuse such consent.
13.1.1.    As a condition for the Port's consent to any assignment, encumbrance
or sublease, the Port may require that the assignee, sublessee or licensee remit directly to the Port
on a monthly basis, all monies due to Lessee by said assignee, sublessee or licensee (except with
respect to excess rentals otherwise due Lessee pursuant to Section 13.2). In addition, a condition
to the Port's consent to any assignment, sublease or license of this Lease or the Premises shall be
the delivery to the Port of a true copy of the fully executed instrument of assignment, sublease or
license and an agreement executed by the assignee, sublessee or licensee in form and substance
satisfactory to the Port and expressly enforceable by the Port, whereby the assignee, sublessee or
licensee assumes and agrees to be bound by the terms and provisions of this Lease and perform
all the obligations of Lessee hereunder.
13.1.2.    In the event of any assignment, Lessee and each respective assignor,
waives notice of default by the tenant in possession in the payment and performance of the Rent,
covenants and conditions of this Lease and consents that the Port may in each and every instance
deal with the tenant in possession, grant extensions of time, waive performance of any of the
terms, covenants and conditions of this Lease and modify the same, and in general deal with the
tenant then in possession without notice to or consent of any assignor, including Lessee; and any
and all extensions of time, indulgences, dealings, modifications or waivers shall be deemed to be
made with the consent of Lessee and of each respective assignor.
13.1.3.    Lessee agrees that any sublease or license will contain a provision in
substance that if there be any termination whatsoever of this Lease then the subtenant or licensee,
at the request of the Port, will attorn to the Port and the sublessee or licensee, if the Port so
requests, shall continue in effect with the Port, but the Port shall be bound to the subtenant or
licensee in such circumstances only by privity of estate. Nothing herein shall be deemed to
require the Port to accept such attornment.
13.1.4.    No assignment, subletting or license by Lessee shall relieve Lessee of
any obligation under this Lease, including Lessee's obligation to pay Rent or any other sum
hereunder. Any purported assignment, subletting or license contrary to the provisions hereof
without consent shall be void. The consent by the Port to any assignment or subletting shall not
constitute a waiver of the necessity for such consent to any subsequent assignment or subletting.
13.1.5.    Lessee shall reimburse the Port in the sum of Five Hundred Dollars
($500.00) plus any reasonable plus any reasonable third party professionals' fees and expenses
incurred by the Port in connection with professionals' fees and expenses incurred by the Port in
connection withfor [tht22]any request by Lessee for consent to an assignment, subletting or license.
13.2.  Excess Rental. If in connection with any assignment, sublease or license, Lessee
receives rent or other monetary consideration, either initially or over the term of the assignment
or sublease, in excess of the Rent called for hereunder, or in case of the sublease of a portion of
the Premises, in excess of such Rent fairly allocable to such portion, after appropriate
adjustments to assure that all other payments called for hereunder and out-of-pocket
expenditures, operating costs or concessions incurred by Lessee in connection with such
assignment, sublease or license, are appropriately taken into account, Lessee shall pay to the

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Port, as Additional Rent hereunder, seventyfifty [tht23]-five percent (7550%) of the excess of each
such payment of excess rent or other consideration received by Lessee after its receipt.
13.3.  Scope. The prohibition against assigning or subletting contained in this Section 13
shall be construed to include a prohibition against any assignment or subletting by operation of
law. Furthermore, for purposes of this Section 13, any sale, transfer or other disposition in the
aggregate of fifty percent (50%) or more of the equity ownership in Lessee (i.e. stock with
respect to tenant corporation, partnership interests with respect to a tenant partnership, etc.) shall
be deemed an assignment. If this Lease be assigned, or if the underlying beneficial interest of
Lessee is transferred, or if the Premises or any part thereof be sublet or occupied by anybody
other than Lessee, the Port may collect Rent from the assignee, subtenant or occupant and apply
the net amount collected to the Rent herein reserved and apportion any excess Rent so collected
in accordance with the terms of Section 13.2, but no such assignment, subletting, occupancy or
collection shall be deemed a waiver of this covenant, or the acceptance of the assignee, subtenant
or occupant as tenant, or a release of Lessee from the further performance by Lessee of
covenants on the part of Lessee herein contained. No assignment or subletting shall affect the
continuing primary liability of Lessee (which, following assignment, shall be joint and several
with the assignee), and Lessee shall not be released from performing any of the terms, covenants
and conditions of this Lease.
SECTION 14: DEFAULT
14.1.  Defaults. Time is of the essence of this Lease. The occurrence of any one or more
of the following events constitutes a default of this Lease by Lessee with or without notice from
the Port:
14.1.1.    The vacating or abandonment of the Premises by Lessee.
14.1.2.    The failure by Lessee to make any payment of Rent, or any other
payment required by this Lease, when due.
14.1.3.    The failure by Lessee to observe or perform any covenant, condition,
or agreement to be observed or performed by Lessee in this Lease.
14.1.4.    The discovery by the Port that any required report, financial statement
or background statement provided to the Port by Lessee, any successor, grantee, or assign was
materially false.
14.1.5.    The filing by Lessee of a petition in bankruptcy, Lessee being
adjudged bankrupt or insolvent by any court, a receiver of the property of Lessee being
appointed in any proceeding brought by or against Lessee, Lessee making an assignment for the
benefit of creditors, or any proceeding being commenced to foreclose any mortgage or other lien
on Lessee's interest in the Premises or on any personal property kept or maintained on the
Premises by Lessee.
14.2.  Remedies.
14.2.1.    Whenever any default (other than a default under Section 14.1.5
above, upon which termination of this Lease shall, at the Port's option, be effective immediately
without further notice) continues unremedied in whole or in part for thirty (30) days after written
notice is provided by the Port to Lessee (or for ten (10) days after written notice in the case of
default for failure to pay any Rent, or other required payment when due), this Lease and all of
Lessee's rights under it will automatically terminate if the written notice of default so provides.
Upon termination, the Port may reenter the Premises using such force as may be necessary and
remove all persons and property from the Premises. The Port will be entitled to recover from
Lessee all unpaid Rent or other payments and damages incurred because of Lessee's default
including, but not limited to, the costs of re-letting, including tenant improvements, necessary
renovations or repairs, advertising, leasing commissions, and attorney's fees and costs
("Termination Damages"), together with interest on all Termination Damages at the Default
Rates from the date such Termination Damages are incurred by the Port until paid.
14.2.2.    In addition to Termination Damages, and notwithstanding termination
and reentry, Lessee's liability for all Rent or other charges which, but for termination of the
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Lease, would have become due over the remainder of the Lease term ("Future Charges") will not
be extinguished and Lessee agrees that the Port will be entitled, upon termination for default, to
collect as additional damages, a Rental Deficiency. "Rental Deficiency" means, at the Port's
election, either:
14.2.2.1.     An amount equal to Future Charges, less the amount of
actual rent, if any, which the Port receives during the remainder of the Lease term from others to
whom the Premises may be rented, in which case such Rental Deficiency will be computed and
payable at the Port's option either:
14.2.2.1.1 In an accelerated lump-sum payment; or
14.2.2.1.2 In monthly installments, in advance, on the first day of
each calendar month following termination of the Lease and continuing until the date on which
the Lease term would have expired but for such termination, and any suit or action brought to
collect any portion of Rental Deficiency attributable to any particular month or months, shall not
in any manner prejudice the Port's right to collect any portion of Rental Deficiency by a similar
proceeding; or
14.2.2.2.     An amount equal to Future Charges less the aggregate fair
rental value of the Premises over the remaining Lease term, reduced to present worth. In this
case, the Rental Deficiency must be paid to the Port in one lump sum, on demand, and will bear
interest at the Default Rate until paid. For purposes of this subparagraph, "present worth" is
computed by applying a discount rate equal to one percentage point above the discount rate then
in effect at the Federal Reserve Bank in, or closest to, Seattle, Washington.
14.2.3.    If this Lease is terminated for default as provided in this Lease, the
Port shall use reasonable efforts to re-let the Premises in whole or in part, alone or together with
other premises, for such term or terms (which may be greater or less than the period which
otherwise would have constituted the balance of the Lease term), for such use or uses and,
otherwise on such terms and conditions as the Port, in its sole discretion, may determine, but the
Port will not be liable for, nor will Lessee's obligations under this Lease be diminished by reason
for any failure by the Port to re-let the Premises or any failures by the Port to collect any rent due
upon such re-letting.
14.2.4.    In addition to the rights granted by Section 7.57.4, if upon any reentry
permitted under this Lease, there remains any personal property upon the Premises, the Port, in
its sole discretion, may remove and store the personal property for the account and at the expense
of Lessee. In the event the Port chooses to remove and store such property, it shall take
reasonable steps to notify Lessee of the Port's action. All risks associated with removal and
storage shall be on Lessee. Lessee shall reimburse the Port for all expenses incurred in
connection with removal and storage as a condition to regaining possession of the personal
property. The Port has the right to sell any property which has been stored for a period of 30 days
or more, unless Lessee has tendered reimbursement to the Port for all expenses incurred in
removal and storage. The proceeds of sale will be applied first to the costs of sale (including
reasonable attorney's fees), second to the payment of storage charges, and third to the payment
of any other amounts which may then be due and owing from Lessee to the Port. The balance of
sale proceeds, if any, will then be paid to Lessee.
14.3.  Remedies Cumulative. All rights, options and remedies of the Port contained in
this Lease shall be construed and held to be distinct, separate and cumulative, and no one of them
shall be exclusive of the other, and the Port shall have the right to pursue any one or all of such
remedies or any other remedy or relief which may be provided by law or in equity, whether or
not stated in this Lease.
SECTION 15: TERMINATION OTHER THAN FOR DEFAULT
15.1.  Major Capital Improvement. In the event that the Port, at its sole discretion, shall
require the use of the Premises for a major capital improvement for public or private use in
connection with the operation of the business of the Port, then this Lease may be terminated by
the Port by written notice delivered or mailed by the Port to Lessee not less than two_____ 
(2___) daysyears before the termination date specified in the notice. If Lessee is not in default
under any of the provisions of this Lease on the effective date of such termination, any Rent
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prepaid by Lessee shall, to the extent allocable to any period subsequent to the effective date of
the termination, be promptly refunded to Lessee. Lessee shall not be entitled to any
compensation at termination for the bargain value of the leasehold or any relocation expenses. 
15.2.  If this Lease expires or is earlier terminated in accordance with section 15.1
above, then the Port shall reimburse Lessee for the Storm Water Project development outlined in
Section 7.2 (Storm Water Improvements), for installation and capital costs (both hard and soft
costs) in accordance with the following schedule, provided that such reimbursed amount will be
based on costs not exceeding three million dollars ($3,000,000):
Lease Year   Percentage of Storm Water
Termination  Project Costs Reimbursed
1     100%
2     80%
3     60%
4     40%
5     20%

15.2.1.1.  In the event of termination, Lessee will provide the Port with
invoices directly relating to the design and construction costs for the Storm Water Project at the
Premises. The Port may review and investigate the invoices for thirty (30) days. After such
review, the Port will approve and pay its required share based on its reasonable determination
that such expenses are directly related to the design and construction costs for the Storm Water
Project at the Premises.

15.1.15.3.    Condemnation.
15.1.1.15.3.1. Total Taking. In the case of a taking by eminent domain of either
all of the Premises or such portion of either the Premises or any buildings or structures of which
the Premises are a part as shall, in the Port's sole judgment, be required for reasonable use of the
Premises, this Lease shall terminate as of the date of such taking. If Lessee is not in default under
any of the provisions of this Lease on said date, any Rent prepaid by Lessee shall, to the extent
allocable to any period subsequent to the effective date of the termination, be promptly refunded
to Lessee.
15.1.2.15.3.2. Partial Taking. In the case of a taking of portion of the Premises or
any buildings or structures of which the Premises are a part as shall not, in the Port's sole
judgment, be required for reasonable use of the Premises, this Lease shall continue in full force
and effect, and the Base Rent shall, as of the date of such taking, be equitably reduced based on
the proportion by which the Premises (but not the buildings or structures of which the Premises
are a part) is reduced.
15.1.3.15.3.3. Damages. The Port reserves all right to the entire damage award or
payment for taking by eminent domain, and provided however that Lessee may make waives all
claims whatsoever against the Port and/or the authority exercising eminent domain for damages
for termination of its leasehold or for interference with its business. The Port and Lessee further
agree that all decisions regarding how the eminent domain proceeding should be handled shall be
made in the sole discretion of the Port (specifically including any response to a motion for order
adjudicating public use and necessity or and request for immediate possession), and Lessee shall
take no actions or steps which interfere with the Port's ability to control the handling of the
eminent domain proceeding. Notwithstanding the foregoing, nNothing in this Section shall be
considered to be a waiver or assignment by Lessee of any right to relocation assistance payments
or relocation advisory services which may be available in connection with the eminent domain
proceeding.
15.1.4.15.3.4. Eminent Domain. The term "eminent domain" as used in this
Section 15.314.4 shall including taking or damaging of property by, through or under any
governmental or quasi-governmental authority and the purchase or acquisition in lieu thereof.

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15.2.15.4.    Court Decree. In the event that any court having jurisdiction in the matter
shall render a decision which has become final and which will prevent the performance by the
Port or Lessee of any of its obligations under this Lease, then either party hereto may terminate
this Lease by written notice, and all rights and obligations hereunder (with the exception of any
undischarged rights and obligations that accrued prior to the effective date of termination) shall
thereupon terminate. If Lessee is not in default under any of the provisions of this Lease on the
effective date of such termination, any Rent prepaid by Lessee shall, to the extent allocable to
any period subsequent to the effective date of the termination, be promptly refunded to Lessee.
Lessee is not entitled to any compensation at termination for the bargain value of the leasehold.
SECTION 16: ACCESS; EASEMENTS
16.1.  Access to Premises. The The Port shall have the right to show the Premises at all
reasonable times during business hours of Lessee to any prospective purchasers, tenants or
mortgagees of the same, and may at any time enter upon the Premises, or any part thereof, for the
purpose of ascertaining the condition of the Premises or whether Lessee is observing and
performing the obligations assumed by it under this Lease, all without hindrance or molestation
from the Lessee. The Port shall also have the right to enter upon the Premises for the purpose of
making any necessary repairs and performing any work that may be necessary by reason of
Lessee's failure to make any such repairs or perform any such work. The above-mentioned rights
of entry shall be exercisable upon request made on reasonable advance notice of not less than 24
hours to Lessee (except that no notice shall be required in the event of an emergency) or an
authorized employee of Lessee at the Premises, which notice may be given orally.
16.2.  Easements.
16.2.1.    The Parties recognize that the Port facilities are continuously being
modified to improve the utilities, services and premises [tht24]used and provided by the Port. The
Port and its authorized utility service providers are hereby granted a continuous easement or
easements that the Port believes is necessary within the Premises of Lessee, without any
additional cost to the Port, for the purposes expressed hereinabove. The Port, its authorized
utility service provider, and their respective agents, shall have the right for the purposes
expressed hereinabove. The Port, its authorized utility service provider, and their respective
agents, shall have the right [tht25]to enter the Premises of Lessee, and to cross over, construct,
move, reconstruct, rearrange, alter, maintain, repair and operate the sewer, water, and drainage
lines, the electrical service, the roadways (specifically including routes of ingress and egress) and
all other services and facilities required by the Port for its own use. Provided, however, that the
Port by virtue of such use, does not substantially deprive Lessee from its beneficial use or
occupancy of its leased area for an unreasonable period of time, not to exceed thirty (30)
working days, without consent of Lessee.[JBC26] 
16.2.2.    In the event that the Port permanently deprives Lessee from such
beneficial use or occupancy, then an equitable adjustment in Rent, or in the cost required to
modify its Premises to allow the Lessee to operate its business, will be negotiated and paid by the
Port to Lessee. In the event that such entry by the Port is temporary in nature, then the Port shall
reimburse Lessee for the cost required to modify its Premises for the temporary period that
Lessee is inconvenienced by such Port entry and a proportional abatement of Base Rent for the
period. The Port will not be responsible to Lessee for any reduced efficiency or loss of business
occasioned by such entry.
SECTION 17: NONWAIVER; RIGHT TO PERFORM
17.1.  Receipt of Monies Following Termination. No receipt of monies by the Port from
Lessee after the termination or cancellation of this Lease in any lawful manner shall (i) reinstate,
continue or extend the term of this Lease; (ii) affect any notice theretofore given to Lessee;
(iii) operate as a waiver of the rights of the Port to enforce the payment of any Rent and fees then
due or thereafter falling due; or (iv) operate as a waiver of the right of the Port to recover
possession of the Premises by proper suit, action, proceeding or remedy; it being agreed that
after the service of notice to terminate or cancel this Lease, or after the commencement of suit,
action or summary proceedings, or any other remedy, or after a final order or judgment for the
possession of the Premises, the Port may demand, receive and collect any monies due, or
thereafter falling due, without in any manner affecting such notice, proceeding, suit, action or

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judgment; and any and all such monies collected shall be deemed to be payments on account of
the use and occupation and/or Lessee's liability hereunder.
17.2.  No Waiver of Breach. The failure of the Port to insist in any one or more
instances, upon a strict performance of any of the covenants of this Lease, or to exercise any
option herein contained, shall not be construed as a waiver of or relinquishment for the future of
the performance of such covenant, or the right to exercise such option, but the same shall
continue and remain in full force and effect. The receipt by the Port of the Rent or fees, with
knowledge of the breach of any covenant hereof, shall not be deemed a waiver of such breach,
and no waiver by the Port of any provision hereof shall be deemed to have been made unless
expressed in writing and signed by the Port. The consent or approval of the Port to or of any act
by Lessee requiring the Port's consent or approval shall not be deemed to waive or render
unnecessary the Port's consent or approval to or of any subsequent similar acts by Lessee.
17.3.  No Waiver of Rent. The receipt by the Port of any installment of Rent or of any
amount shall not be a waiver of any Rent or other amount then due.
17.4.  Application of Payments. The Port shall have the right to apply any payments
made by Lessee to the satisfaction of any debt or obligation of Lessee to the Port, in the Port's
sole discretion and regardless of the instructions of Lessee as to application of any such sum,
whether such instructions be endorsed upon Lessee's check or otherwise, unless otherwise
agreed upon by both parties in writing. The acceptance by the Port of a check or checks drawn
by others than Lessee shall in no way affect Lessee's liability hereunder nor shall it be deemed
an approval of any assignment of this Lease or subletting by Lessee.
17.5.  Port's Right to Perform. Upon Lessee's failure to perform any obligation or make
any payment required of Lessee hereunder, the Port shall have the right (but not the obligation)
to perform such obligation of Lessee on behalf of Lessee and/or to make payment on behalf of
Lessee to such parties. Lessee shall reimburse the Port the reasonable cost of the Port's
performing such obligation on Lessee's behalf, including reimbursement of any amounts that
may be expended by the Port, plus interest at the Default Rate.
SECTION 18: SURRENDER AND HOLDING OVER
18.1.  Surrender. At the expiration or sooner termination of this Lease, Lessee shall
promptly: (i) surrender possession of the Premises to the Port in the same condition in which
received (or, if altered, then the Premises shall be returned in such altered condition unless
otherwise directed), reasonable wear and tear excepted, and (ii) deliver to the Port all keys that it
may have to any and all parts of the Premises . If the Premises are not surrendered as provided in
this Section, Lessee shall indemnify and hold the Port harmless against loss or liability resulting
from the delay by Lessee in so surrendering the Premises, including, without limitation, any
claims made by any succeeding occupant founded on such delay.[tht27] 
18.2.  Removal of Wires. Within ten (10) days following the expiration or earlier
termination of this Lease, the Port may elect by written notice to Lessee to either:
18.2.1.    Retain, without necessity of payment, any or all wiring, cables,
conduit, risers and similar installations installed by Lessee ("Wiring") in either the Premises or
any larger property (including buildings or structures) of which the Premises are a part. In the
event that the Port elects to retain the wiring, Lessee covenants that: (i) it is the sole owner of the
assets transferred or passing to the Port, (ii) it shall have right to surrender the assets transferred
or passing to the Port, (iii) the Wiring transferred or passing to the Port are free from all liens and
encumbrances, (iv) the Wiring transferred or passing to the Port is in good condition, working
order, in safe condition and comply with the requirements of this Agreement, and (v) that all
wiring or cables included within the Wiring transferred or passing to the Port is properly labeled
at each end, in each telecommunications/electrical closet and junction box, and otherwise as may
be required by Port regulations. OR
18.2.2.    Remove, or required Lessee to remove, all such Wiring and restore
the Premises and any larger property of which the Premises are a part to their condition existing
prior to the installation of the Wiring, all at Lessee's sole cost and expense.
This Section shall survive the expiration or earlier termination of this Lease.
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18.3.  Holding Over. If Lessee, with the consent of the Port, holds over after the
expiration or sooner termination of this Lease, the resulting tenancy will, unless otherwise
mutually agreed, be for an indefinite period of time on a month-to-month basis. Notwithstanding
Section 3.2.1, Dduring such month-to-month tenancy, Lessee shall pay to the Port, at the Port's
sole discretion, the same rental rate that was in effect immediately prior to the month-to-month
tenancy up to times 150%. Lessee will continue to be bound by all of the additional provisions of
this Lease insofar as they may be pertinent.
18.4.  For Rent Signs. The Port shall have the right to place and maintain "For Rent"
signs in conspicuous places on the Premises for ninety (90) days prior to the expiration or sooner
termination of this Lease.
SECTION 19: ENVIRONMENTAL STANDARDS
19.1.  Definitions. "Law or Regulation" as used herein shall mean any environmentally
related local, state or federal law, regulation, ordinance or order (including without limitation any
final order of any court of competent jurisdiction), now or hereafter in effect. "Hazardous
Substances" as used herein shall mean any substance or material defined or designated as a
hazardous waste, toxic substance, or other pollutant or contaminant, by any Law or Regulation.
19.2.  Hazardous Substances. Lessee shall not allow the presence in or about the
Premises of any Hazardous Substance in any manner that could be a detriment to the Premises or
in violation of any Law or Regulation. Lessee shall not allow any Hazardous Substances to
migrate off the Premises, or the release of any Hazardous Substances into adjacent surface
waters, soils, underground waters or air, except as allowed pursuant to applicable Law or
Regulation including without limitation of any permits, authorizations, approvals, orders or
agreements issued or entered into pursuant to applicable Law or Regulation. Lessee shall provide
the Port with Lessee's USEPA Waste Generator Number, and with copies of all Material Safety
Data Sheets (MSDS), Generator Annual Dangerous Waste Reports, environmentally related
regulatory permits or approvals (including revisions or renewals) and any correspondence Lessee
receives from, or provides to, any governmental unit or agency in connection with Lessee's
handling of Hazardous Substances or the presence, or possible presence, of any Hazardous
Substance on the Premises.
19.3.  Violation of Environmental Law. If Lessee, or the Premises, is in violation of any
Law or Regulation concerning the presence or use of Hazardous Substances or the handling or
storing of hazardous wastes arising from Lessee's use and occupancy of the Premises, Lessee
shall promptly take such action as is necessary to mitigate and correct the violation. If Lessee
does not act in a prudent and prompt manner, the Port reserves the right, but not the obligation,
to come onto the Premises, to act in place of the Lessee (Lessee hereby appoints the Port as its
agent for such purposes) and to take such action as the Port deems necessary to ensure
compliance or to mitigate the violation. If the Port has a reasonable belief that Lessee is in
violation of any Law or Regulation, or that Lessee's actions or inactions present a threat of
violation or a threat of damage to the Premises, the Port reserves the right to enter onto the
Premises and take such corrective or mitigating action as the Port deems necessary. All
reasonable and necessary costs and expenses incurred by the Port in connection with any such
actions shall become immediately due and payable by Lessee upon presentation of an invoice
therefor.
19.4.  Inspection; Test Results. Upon reasonable advanced notice of not less than two
(2) weeks, Tthe Port shall have access to the Premises to conduct an annual environmental
inspection. In addition, Lessee shall permit the Port access to the Premises at any time upon
reasonable notice of not less than two (2) weeks for the purpose of conducting environmental
testing at the Port's expense. Lessee shall not conduct or permit others to conduct environmental
testing on the Premises without first obtaining the Port's written consent; provided that, if the
testing is being performed by a Federal, State or Local governmental agency operating pursuant
to inspection authority under applicable Laws or Regulations. Lessee shall provide notice to the
Port prior to testing. Lessee shall promptly inform the Port of the existence of any environmental
study, evaluation, investigation or results of any environmental testing conducted on the
Premises whenever the same becomes known to Lessee, and Lessee shall provide copies to the
Port.

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19.5.  Removal of Hazardous Substances. Prior to vacation of the Premises, in addition
to all other requirements under this Lease, Lessee shall remove any Hazardous Substances then
stored atplaced on the Premises by Lessee during the term of this Lease or Lessee's possession of
the Premises, and shall demonstrate such removal to the Port's satisfaction. This removal and
demonstration shall be a condition precedent to the Port's payment of any Security to Lessee
upon termination or expiration of this Lease.
12.1   Remedies Not Exclusive. No remedy provided herein shall be deemed exclusive.
In addition to any remedy provided above, the Port shall be entitled to full reimbursement from
Lessee whenever the Port incurs any costs resulting from Lessee's use or management of
Hazardous Substances on the Premises, including but not limited to, costs of clean-up or other
remedial activities, fines or penalties assessed directly against the Port, injuries to third persons
or other properties, and loss of revenues resulting from an inability to re-lease or market the
property due to its environmental condition (even if such loss of revenue occurs after the
expiration or earlier termination of this Lease). Remedies Not Exclusive. No remedy provided
herein shall be deemed exclusive. In addition to any remedy provided above but without
duplication of any rights under Section 18.6, the Port shall be entitled to full reimbursement from
Lessee for Damages (as defined in Section 18.6) whenever the Port incurs any costs resulting
from Lessee's failure to comply with Section 18.2.

19.6.  Environmental Indemnity. In addition to all other indemnities provided in this
Lease, Lessee agrees to defend, indemnify and hold the Port free and harmless from any and all
claims, causes of action, regulatory demands, liabilities, fines, penalties, losses, and expenses,
including without limitation cleanup or other remedial costs (and including attorneys' fees, costs
and all other reasonable litigation expenses when incurred and whether incurred in defense of
actual litigation or in reasonable anticipation of litigation), arising from the existence or
discovery of any Hazardous Substance on the Premises, or the migration of any Hazardous
Substance from the Premises to other properties or into the surrounding environment, whether if
(1) made, commenced or incurred during the term of this Lease, or (2) made, commenced or
incurred after the expiration or termination of this Lease if arising out of events occurring during
the term of this Lease and (3) such Hazardous Substance was an unpermitted release or discharge
by Lessee.
SECTION 20: MISCELLANEOUS
20.1.  Notice. All notices hereunder shall be in writing and shall be delivered personally,
by certified or registered mail, by facsimile or by recognized overnight courier addressed as
follows:
To Lessor:
Port of Seattle
Attention: Lease Administration
P. O. Box 1209
2711 Alaskan Way
Seattle, WA 98111
Facsimile: (206) 787-3280
For payments only, the following mailing address should be used:
Port of Seattle
P. O. Box 34249
Seattle, WA 98124-1249
To Lessee:
ConGlobal Industries, Inc.
1 South Idaho Street
Seattle, WA 98134
Facsimile: (206) 624-0431
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With a Copy To:
David Michael BaldwinERen Etcharren
ConGlobal Industries, Inc.
2000 Crow Canyon Place
Suite 4302633 Camino Ramon, Suite 450
San Ramon, CA 94583
or to such other respective addresses as either party hereto may hereafter from time to time
designate in writing. Notices shall be deemed delivered (i) when personally delivered; (ii) on the
third day after mailing when sent by certified or registered mail and the postmark affixed by the
United States Postal Service shall be conclusive evidence of the date of mailing; (iii) on the date
transmitted by facsimile, if the facsimile is confirmed received; or (iv) on the first business day
after deposit with a recognized overnight courier if deposited in time to permit overnight delivery
by such courier as determined by its posted cutoff times for receipt of items for overnight
delivery to the recipient.
Payments may be made in the manner provided for notice or may be delivered by regular mail
(postage prepaid); provided, payments made by regular mail (postage prepaid) shall be deemed
delivered when actually received by the Port.
20.2.  Brokers. The Port and Lessee each warrant to the other that it has had no
discussions, negotiations and/or other dealings with any real estate broker or agent other than
_____ in connection with the negotiation of this Lease, and that it knows of no other real estate
broker or agent who is or may be entitled to any commission or finder's fee in connection with
this Lease. The Port and Lessee each agree to indemnify and hold the other harmless from and
against any and all claims, demands, losses, liabilities, lawsuits, judgments, costs and expenses
(including without limitation, attorneys' fees and costs) with respect to any leasing commission
or equivalent compensation alleged to be owing on account of such party's discussions,
negotiations and/or dealings with any real estate broker or agent other than Broker(s). This
Section is not intended to benefit any third parties and shall not be deemed to give any rights to
brokers or finders. No commission(s) or finder's fee(s) shall be paid to Lessee, employee(s) of
Lessee or any unlicensed representative of Lessee. The Port and Lessee shall each pay its
respective Broker pursuant to their respective separate agreements with such Broker; provided,
however, the Port's Broker (if any) shall be free (but without obligation, except as separately
agreed between the Port's Broker and Lessee's Broker) to share the commission payable to it
with Lessee's Broker as the Port's Broker sees fit. 
20.3.  Consent. Whenever the Port's prior consent or approval is required by this Lease,
the same shall not be unreasonably delayed but may, unless otherwise specifically provided by
this Lease, be granted or denied in the Port's sole and absolute discretion.
20.4.  Wireless Devices. Lessee shall not install any wireless devices and/or transmitters
on or about the Premises without the prior written consent of the Port and subject to any and all
conditions in such consent. Lessee specifically grants to the Port the power to regulate and
control the use of unlicensed frequency bands (including, but not limited to, FCC Part 15
Subpart C, FCC Part 15 Subpart D (both asynchronous and Isochronous), IEEE 802.11 and
BlueTooth (ISM), and FCC UNII 1 and UNII 2 (IEEE 802.11a)) on or about the Premises.
20.5.  Relationship to the Port and Lessee. Nothing contained herein shall be deemed or
construed as creating the relationship of principal and agent, partnership, or joint venture
partners, and no provision contained in this Lease nor any acts of Lessee and the Port shall be
deemed to create any relationship other than that of Lessee and the Port.
20.6.  Time. Time is of the essence of each and every one of Lessee's obligations,
responsibilities and covenants under this Lease.
20.7.  Recording. Lessee shall not record this Lease or any memorandum thereof
without the Port's prior written consent.

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20.8.  Subordination, Attornment. Unless otherwise designated by the Port, this Lease
shall be subordinate to all existing or future mortgages and deeds of trust on the Premises or any
larger property of which the Premises may be a part, and to all extensions, renewals or
replacements thereof. Within ten (10) days of the Port's request, Lessee shall execute and deliver
all instrument or certificates which may be necessary or appropriate to reflect such
subordination. Notwithstanding the foregoing, Lessee shall not be required to subordinate to
future mortgages or deeds of trust unless the mortgagee or beneficiary under the deed of trust
agrees that if it becomes the owner of the property, it will recognize the Lease as long as Lessee
is not in default. Within ten (10) days of the Port's request, Lessee shall also execute and deliver
to third parties designated by the Port an estoppel certificate or letter in the form requested by the
Port or any lender the correctly recites the facts with respect to the existence, terms and status of
this Lease. Lessee agrees to attorn to any successor to the Port following any foreclosure, sale or
transfer in lieu thereof.
20.9.  Promotion of Port Commerce. Lessee agrees that throughout the term of this
Lease it will, insofar as practicable, promote and aid the movement of passengers and freight
through facilities within the territorial limits of the Port. Lessee further agrees that all incoming
shipments of commodities that it may be able to control or direct shall be made through facilities
within the territorial limits of the Port if there will be no resulting cost or time disadvantage to
Lessee.
20.10. Nondiscrimination  Services.
20.10.1.   Lessee agrees that it will not discriminate by segregation or otherwise
against any person or persons because of race, sex, age, creed, color or national origin in
furnishing, or by refusing to furnish to such person or persons, the use of the facility herein
provided, including any and all services, privileges, accommodations, and activities provided
thereby.
20.10.2.   It is agreed that Lessee's noncompliance with the provisions of this
clause shall constitute a material breach of this Lease. In the event of such noncompliance, the
Port may take appropriate action to enforce compliance, may terminate this Lease, or may pursue
such other remedies as may be provided by law.
20.11. Nondiscrimination  Employment. Lessee covenants and agrees that in all matters
pertaining to the performance of this Lease, Lessee shall at all times conduct its business in a
manner which assures fair, equal and nondiscriminatory treatment of all persons without respect
to race, sex, age, color, creed or national origin and, in particular:
20.11.1.   Lessee will maintain open hiring and employment practices and will
welcome applications for employment in all positions from qualified individuals who are
member of racial or other minorities, and
20.11.2.   Lessee will comply strictly with all requirements of applicable
federal, state and local laws or regulations issued pursuant thereto relating to the establishment of
nondiscriminatory requirements in hiring and employment practices and assuring the service of
all patrons or customers without discrimination as to any person's race, sex, age, creed, color or
national origin.
20.12. Labor Unrest. Lessee agrees to join with the Port and use its best efforts in
avoiding labor unrest, or in the event of a wildcat strike or other labor difficulty, to use its good
offices in negotiating and bringing to a swift and satisfactory conclusion any kind of labor
dispute that may affect the interests of the Port.
20.13. Federal Maritime Commission Regulations. This Lease may be subject to the
Shipping Act of 1984, the Shipping Act of 1916, the Ocean Shipping Reform Act of 1998, and
their respective implementing regulations. No future amendment or modification to this
instrument will be effective until the appropriate procedures, if any, have been completed in
accordance with the procedures of the appropriate federal agency which has jurisdiction over the
Shipping Acts.
20.14. Joint and Several Liability. Each and every party who signs this Lease, other than
in a representative capacity, as Lessee, shall be jointly and severally liable hereunder. It is
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understood and agreed that for convenience the word "Lessee" and verbs and pronouns in the
singular number and neuter gender are uniformly used throughout this Lease, regardless of the
number, gender or fact of incorporation of the party who is, or of the parties who are, the actual
lessee or lessees under this agreement.
20.15. Captions. The captions in this Lease are for convenience only and do not in any
way limit or amplify the provisions of this Lease.
20.16. Governing Law; Venue. This Lease shall be construed under the laws of
Washington. Exclusive jurisdiction and venue for any action relating hereto shall be in the state
or federal courts located in King County, Washington.
20.17. Attorneys' Fees. In the event that either party shall be required to bring any action
to enforce any of the provisions of this Lease, or shall be required to defend any action brought
by the other party with respect to this Lease, and in the further event that one party shall
substantially prevail in such action, the losing party shall, in addition to all other payments
required therein, pay all of the prevailing party's actual costs in connection with such action,
including such sums as the court or courts may adjudge reasonable as attorneys' fees in the trial
court and in any appellate courts.
20.18. Invalidity of Particular Provisions. If any term or provision of this Lease or the
application thereof to any person or circumstance shall, to any extent, be invalid or enforceable,
the remainder of this Lease or 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.
20.19. Survival of Indemnities. All indemnities provided in this Lease shall survive the
expiration or any earlier termination of this Lease. In any litigation or proceeding within the
scope of any indemnity provided in this Lease, Lessee shall, at the Port's option, defend the Port
at Lessee's expense by counsel satisfactory to the Port.
20.20. Entire Agreement; Amendments. This Lease, together with any and all exhibits
attached hereto, shall constitute the whole agreement between the parties. There are no terms,
obligations, covenants or conditions other than those contained herein. No modification or
amendment of this agreement shall be valid or effective unless evidenced by an agreement in
writing signed by both parties.
20.21. Exhibits. Exhibits A, and B and _____ are attached to this Lease after the
signatures and by this reference incorporated herein.
SECTION 21: SIGNATURES
IN WITNESS WHEREOF the parties hereto have signed this Lease as of the day and
year first above written.
PORT OF SEATTLE              CONGLOBAL INDUSTRIES, INCLLC. 

By: _________________________________    By: _________________________________
Its: ______________________________      Its: ______________________________





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SECTION 22: ACKNOWLEDGMENTS

STATE OF WASHINGTON )
) ss
COUNTY OF KING )
On this ____ day of ___________________, 20_______, before me personally appeared Michael Burke, to
me known to be the Director, Leasing and Asset Management of the PORT OF SEATTLE, the municipal
corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and
voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that s/he
was authorized to execute said instrument.
In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year first above
written.

_____________________________________________
(Signature)
_____________________________________________
(Print Name)
Notary Public, in and for the State of Washington,
residing at _____________________________________
My Commission expires: _________________________

STATE OF WASHINGTON )
) ss
COUNTY OF KING )
On this ____ day of ___________________, 20_______, before me personally appeared
____________________________, to me known to be the _________________________________ of the
___________________________________, the individual/entity that executed the within and foregoing instrument
as Lessee, and acknowledged said instrument to be the free and voluntary act and deed of said individual/entity, for
the uses and purposes therein mentioned, and on oath stated that s/he was authorized to execute said instrument.
In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year first above
written.

_____________________________________________
(Signature)
_____________________________________________
(Print Name)
Notary Public, in and for the State of Washington,
residing at _____________________________________
My Commission expires: _________________________










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EXHIBIT A
LEGAL DESCRIPTION 























POS Term Lease Agreement, AGREEMENT#            A-1 Printed 11/4/2014 3:28 PM11/4/2014 3:28:00 PM0/0/0000 0:00 AM 
Tenant's Name
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EXHIBIT B
PREMISES 























POS Term Lease Agreement, AGREEMENT#            B-1 Printed 11/4/2014 3:28 PM11/4/2014 3:28:00 PM0/0/0000 0:00 AM 
Tenant's Name
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