of Seattte

September 16, 2011

Steve Pelleur
Cannon Commerciat Real Estate
520 Pike Street, Suite 1505
Seattle, WA 98101

Dear Steve:

Thank you for the Letter of Intent on behatf of Fremont Maritime Services, lnc. (FMS).
The Port of Seattle is willing to offer the following terms to FMS for 3,357 square feet of
office space in the Fishermen's Center Building at Fisherman's Terminat.

1. Premises

Approximately 3,357 sf rentable square feet of ofce space in the Fisherman's
Center Building at Fisherman's Terminai' located at 1900 West Nickerson Street,
Suite 200' Seattle, WA 98119.

2. Use

The Premises will be used as general office/classroom space for a maritime
training facility.

3. Term

Five year tease effective December 1, 2011 and ending November 30, 2016.

4. Option to Renew

FMS shalt have the option to renew the tease for two (2) additional ve (5) year
terms by providing the Port with written notice no less than one hundred twenty
(120) days prior to Termination Date.

The rate for the first two years of the first renewal term (year 5 and year 6) shall
be subject to annuat adjustments in proportion to the percentage change in the
Consumer Price tndex for alt Urban Consumers The rate for remainder of the
term (beginning in year seven) and for the second five year option (year 15) shall
be at fair market rental value of the Premises The Lease will contain an
arbitration provision to resolve disputes regarding "fair market rental value" in the
event that the parties cannot agree on the rent


1'1). Box 1209
Seattle, WA 981/]
(206) 728-3005
(206,) 728~3290

5. Lease Rate

Leases at Fisherman's Terminal are structured on a triple net basis

The monthly base rent is $3,916.50/mo. NNN
Base rent is computed as follows: (5"year term lease, triple net)

3.357 approxr sf office space @ $14.00/sf/yr.= $;,~9_1 50.7/mo, plus applicable
taxes and utilities.

Approximate costs for utilities and taxes are $5.25/sf/yr.

The above stated base rent for this period shall be subject to annual adiustments
in proportion to the percentage change in the Consumer Price Index for all Urban
Consumers.

6. Tenant Improvements

The Port will provide an allowance of $33,570.00 to cover the costs of tenant
improvements as outlined in the estimate provided by Joseph Simmons
Construction dated 8/31/2011.

7. Security Deposit

The Port requires six (6) months security deposit in the form of a letter of credit,
surety bond or cash, at the effective date of a consummated lease agreement, per
Port of Seattle.

. 8. Assignment and Subletting

Lessee shall not assign or transfer this lease or any interest therein nor sublet the
whole or any part of the Premises, nor shall this lease Or any interest thereunder be
assignable or transferable by operation of law or by any process or proceeding of
any court, or otherwise without the written consent of the Port first had and
obtained. Said consent shall not be unreasonably withheld.

9. Utilities and Maintenance

Lessee wilt pay for all utilities (including water, electrical, gas, and sewer).
Lessee shall be responsible for its own janitorial and garbage collection services,
as applicable, or as prorated by the Port,

Lessee assumes all liability for maintenance and repairs to the lease Premises,
provided that said obligations shall not extend to any repairs to the roof (structure
or coveringli walls, or to the foundations of which the Premises are a part.

10. Parking


RC). Box 1209
Seattle, WA 98/11
(206) 787-3713
(206) 78 7-329!) 1% X

Vehicle parking at Fishermen's Terminal is designated for the use of its
customers, tenants and the community, in accordance with procedures
established by the Port of Seattle. There is no reserved parking. The staff of
'
FMS will use the parking facilities at Fisherman's Terminal and the Port and
FMS will agree upon a percentage of students/classes that can be shuttled back
and forth to the facility.

11. Real Estate Commission

Port agrees to pay a commission not to exceed $11,749.50, based on a five year
term lease with a rental of $14.00/sf/yr. (5%)

12' Effect of Letter

This letter is not binding on either party. it is merely a statement of interest and
understanding of the Port and proposed Lessee, The contemplated transaction
will be binding upon the Port and FMS only when both parties have executed a
denitive lease agreement This proposal expires on September 19, 2011.

Once l have received a signed proposal l will prepare a lease for your signature Please
call me at (206) 787'3713 if you have any questions         A {3'
if
Sincerel                          AGREED:
,,
,                                                                           inc
mFremont MaritimefServiees
Rebecca Schwan
, Real Estate Manager
Fishermen's Terminal 

cc: Melinda Miller M Director, Portfolio Management













RO. Box 1209
Swirls, WA 98111
(206) 787-3713
(206) 787-3290 FAX