Document:

Form of Senior Vice President Confidentiality

 Exhibit 10.1 
 PAETEC COMMUNICATIONS, INC. 
 SENIOR VICE PRESIDENT CONFIDENTIALITY, NON-SOLICITATION AND

 NON-COMPETITION AGREEMENT 
 This Senior Vice President Confidentiality, Non-Solicitation and Non-Competition Agreement (this “Agreement”) is entered into as of the date set forth on the signature page hereto between PAETEC
Communications, Inc., a Delaware corporation, including any subsidiary, successor or affiliate of the Company with which I work (collectively, the “Company”), and
                                     
    (“I” or “me”)). 
 WHEREAS, the Company now has and expects to develop confidential and proprietary
materials and highly sensitive information of immeasurable value, which I recognize must be carefully protected as set forth below for the Company to be successful; 
 NOW, THEREFORE, to induce the Company to employ me and in consideration of my employment or continued employment by the Company and other good and valuable consideration the sufficiency of which I expressly
acknowledge, the Company and I hereby agree, intending to be legally bound, as follows: 
 1. Company Confidential Materials and Information

 The following materials and information, whether having existed, now existing, or to be developed or created during the term of my
employment by Company (herein referred to collectively as the “Company Confidential Information”) are covered by this Senior Vice President Confidentiality, Non-Solicitation and Non-Competition Agreement (“Agreement”):

 1.1. Products and Services. All information to which the Company gave me access, all information disclosed to me by the Company, and
all information developed for the Company by me, alone or with others, that directly or indirectly relates to the business, products and/or services that the Company engages in, plans to engage in or contemplates engaging in, including but not
limited to research, development, manufacture, sale and/or licensing of products and services related to communications, integrated communications, long-distance services, Internet access, eCommerce, hardware and software (whether owned or licensed
by the Company), and data services, including but not limited to local, domestic, and international long-distance services, local exchange services, wholesale long-distance services, IP/ISP services, high-speed Internet access, DSL services,
eCommerce, web hosting, ASP services, data networking, systems integration services, and data communications services and other proprietary products or services, whether existing or in any stage of research and development (such as trade secrets,
inventions, ideas, methods, technical and laboratory data, engineering data and information, engineering information related to the integration of communications devices and equipment, benchmark test results, processes, design specifications,
algorithms, technical data, technical formulas, engineering data, processes, manufacturing data, procedures, techniques, methodologies, information processing processes, and strategies). 
 1.2. Business and Marketing Procedures and Customer Information. All information concerning or relating to the way Company conducts its business,
markets 

 
its products and services, and all information relating to any Company customers and sales agents or prospective customers and sales agents (such as internal
business procedures, business strategies, marketing plans and strategies, controls, plans, licensing techniques and practices, supplier, subcontractor and prime contractor names and contracts and other vendor information, customer information and
requirements, sales agent information, computer system passwords and other computer security controls, financial information, distributor information, information supplied by clients and customers of Company and employee data). 
 1.3. Not Generally Known. Any information in addition to the foregoing which is not generally known to the public or within the industry or trade
areas in which Company competes, through no fault of mine, which gives the Company any advantage over its competitors. 
 1.4. Third-Party
Information. Any information that is confidential and proprietary to a third party that the Company has and in the future will receive from such third party subject to the Company’s duty to maintain the confidentiality of such information
and to use it for certain limited purposes. 
 1.5. All Physical Embodiments of Products, Services, Business, Marketing, Customer and
Other Information. All the physical embodiments of all of the information included in Sections 1.1, 1.2, 1.3 and 1.4 above, including but not limited to research programs, research data, testing data, software, compositions, compounds, hardware,
works of authorship, source code, other computer code, correspondence, check lists, samples, forms, ledgers, financial data, financial statements, financial reports, forecasts and projections, discounts, margins, costs, credit terms, pricing
practices, pricing policies and procedures, goals and objectives, quoting practices, quoting procedures and policies, financial and operational analyses and studies, management reports of every kind, databases, employment records pertaining to
employees other than myself, customer data including customer lists, contracts, representatives, requirements and needs, specifications, data provided by or about prospective, existing or past customers and contract terms applicable to such
customers, engineering notebooks, notes, drawings, work sheets, schematics, load modules, schematics, annotations, flow charts, logic diagrams, procedural diagrams, coding sheets, requirements, proposals, instructor manuals, course materials, video
cassettes, transparencies, slides, presentations, proposals, printouts, studies, contracts, maintenance manuals, operational manuals, documentation, license agreements, marketing practices, marketing policies and procedures, marketing plans and
strategies, marketing reports, strategic business plans, marketing analyses, seminar and class attendee rosters, trade show or exhibit attendee listings, listings of customer leads, and any other written or machine-readable expressions of such
information as are fixed in any tangible media. 
 1.6. Trade Secrets. I acknowledge and agree that the Company Confidential
Information identified in paragraphs 1.1, 1.2, 1.3 and 1.5, above, constitutes trade secrets of the Company. 
  

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 2. General Knowledge 
 The general skills, knowledge and experience gained during my employment with Company, and information publicly available or generally known within the industry or trade areas in which the Company competes, are not
considered Company Confidential Information. 
 3. Employee Obligations 
 During my employment with Company, I acknowledge and agree that I will have access to and become acquainted with Company Confidential Information and materials, including its trade secrets, and will occupy a position
of trust and confidence with respect to Company’s affairs, business and customer goodwill, and Company Confidential Information. I acknowledge and agree that the interests afforded protection by this Agreement are Company’s legitimate
business interests, deserving of protection. I further acknowledge that the Company would not have entered into or continued its employment relationship with me without my execution of and agreement to this Agreement. I agree to take the following
steps to preserve the confidential and proprietary nature of Company Confidential Information and materials and to preserve the Company’s goodwill: 
 3.1. Non-Disclosure. During and after my employment with Company, I will not misuse, misappropriate, disclose or transfer in writing, orally or by electronic means, any Company Confidential Information,
directly or indirectly, to any other person, or use Company Confidential Information in any way, except as is required in the course of my employment with Company, nor will I accept any employment or other professional engagement that likely will
result in the use or disclosure, even if inadvertent, of Company Confidential Information. I further agree that Company Confidential Information includes information or material received by Company from others, including its affiliates, and intended
by the Company to be kept in confidence by its recipients. I understand that I am not allowed to sell, license or otherwise exploit any products (including hardware or software in any form) which embody or otherwise exploit in whole or in part any
Company Confidential Information or materials. I acknowledge and agree that the sale, misappropriation, or unauthorized use or disclosure in writing, orally or by electronic means, at any time of Company Confidential Information obtained by me
during the course of my employment constitutes unfair competition. I agree and promise not to engage in any unfair competition with Company, either during my employment or at any other time thereafter. I further acknowledge and agree that the
Company’s products and services can be developed and marketed nationwide, and therefore, the protection afforded the Company must likewise be nationwide. 
 3.2. Preservation, Removal and Return of Information. I agree to take all reasonable steps to preserve the confidential and proprietary nature of Company Confidential Information and to prevent the inadvertent
or accidental disclosure of Company Confidential Information. I acknowledge and agree that all Company Confidential Information, whether prepared by me or otherwise coming into my possession while I am employed by the Company, shall remain the
exclusive property of Company. I agree that during my employment with the Company and thereafter, I will not use, disclose, transfer, or remove from the Company’s premises any Company 

  

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Confidential Information other than as authorized by the Company. I agree to return to the Company all Company Confidential Information and copies thereof,
in whatever form, at any time upon the request of the Company, and at the time of my termination of employment for any reason. I agree not to retain any copies of any Company Confidential Information and Company-owned materials after my termination
of employment for any reason whatsoever. My obligations under this Section 3 shall continue after termination of my employment with the Company. 
 3.3. Additional Covenants. I acknowledge the highly competitive nature of the industry in which the Company is involved, and I acknowledge that: my services to the Company will be special and unique; my work
for the Company will allow me access to the Company Confidential Information, including trade secrets, and customers; the Company’s business is conducted throughout the United States and over the Internet and World Wide Web, enabling the
Company and me to regularly provide services to customers nationwide; the Company would not have entered into this Agreement but for the covenants and agreements contained in this Section 3; and the agreements and covenants contained in this
Section 3 are reasonable and are necessary and essential to protect the business, trade secrets, Company Confidential Information, and goodwill of the Company. I further acknowledge that this Agreement does not restrict my ability to be
gainfully employed, and I acknowledge that the geographic boundaries, scope of prohibited activities, and time duration of this subsection 3.3 are reasonable in nature and no broader than are necessary to protect the legitimate business interests of
the Company. I agree not to raise any objection to the reasonableness of this subsection 3.3 in any action or proceeding to enforce the terms of this Agreement. In order to induce the Company to enter into this Agreement, I covenant and agree that:

 (a) During my employment and for twelve (12) months following the termination of my employment with Company, whether voluntary or
involuntary, without Company’s written express consent, I will not directly or indirectly solicit (other than on behalf of the Company) business or contracts for any products or services of the type provided, developed or under development by
the Company during my employment by the Company, from or with (1) any person or entity which was a customer or sales agent of the Company for such products or services as of, or within one year prior to the my date of termination with the
Company, or (2) any prospective customer or sales agent which the Company was soliciting as of, or within one year prior to my termination. Additionally, during my employment and for twelve (12) months thereafter, I will not directly or
indirectly contract with any such customer, prospective customer, sales agent or prospective sales agent for any product or service of the type provided, developed or which was under development by the Company during my employment with the Company.
I will not during my employment or for twelve (12) months thereafter knowingly interfere or attempt to interfere with any transaction, agreement or business relationship in which the Company was involved or was contemplating during my
employment with the Company, including but not limited to relationships with sales agents, independent sales agents, customers, prospective customers, contractors, vendors, service providers, and suppliers. 
 (b) During my employment and for 12 months after my employment with Company is terminated for any reason, I agree not to, directly or indirectly,
solicit, 

  

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recruit, or hire, or in any manner assist in the hiring, solicitation or recruitment of: (1) any of the Company’s employees, or any individuals who
were employed by the Company within twelve (12) months of my termination of employment; or (2) any of the Company’s sales agents or the independent sales agents of any affiliate of the Company, or any person or entity which was a
Company sales agent or independent sales agent of a Company affiliate within twelve (12) months prior to the termination of my employment with the Company. 
 (c) To prevent the misuse, misappropriation, or unauthorized disclosure of Company’s trade secrets, including Company Confidential Information, and to protect the goodwill of Company, I will not, during my
employment and for twelve (12) months after termination of my employment, without Company’s express written consent, directly or indirectly, individually or as an officer, director, employee, shareholder (except if as a shareholder of less
than 1% of a publicly traded company), consultant, contractor, partner, joint venturer, agent, equity owner, or in any capacity whatsoever, engage in or promote any business or contemplated business that is competitive with the “Company’s
Business.” “Company’s Business” is the research, development, manufacture, sale and/or licensing of products and services related to communications, integrated communications, long-distance services, Internet access, eCommerce,
hardware and software (whether owned or licensed by the Company), and data services, including but not limited to local, domestic, and international long-distance services, local exchange services, wholesale long-distance services, IP/ISP services,
high-speed Internet access, DSL services, eCommerce, web hosting, ASP services, data networking, systems integration services, and data communications services, together with any other businesses that Company engages in, plans to engage in or
contemplates engaging in from the date hereof to the date of termination of my employment. 
 3.4. The parties agree that if a Court of
competent jurisdiction finds that any term of this Section 3 is for any reason excessively broad in scope or duration, such term shall be construed in a manner to enable it to be enforced to the maximum extent possible. Further, the covenants
in this Section shall be deemed to be a series of separate covenants and agreements, one for each and every region of each state and political division worldwide. If, in any judicial proceeding, a court of competent jurisdiction shall refuse to
enforce any of the separate covenants deemed included herein, then at the option of the Company, wholly unenforceable covenants shall be deemed eliminated from the provision hereof for the purpose of such proceeding to the extent necessary to permit
the remaining separate covenants to be enforced in such proceeding. In addition, if a court or other enforcement body finds that any provision of this Agreement may not be enforced as written because of some public policy, I agree that such court or
enforcement body shall modify and construe such provision to permit its enforcement to the maximum extent permitted by law. 
 3.5.
Compensation. The Company agrees that if my employment is terminated voluntarily by me, or by the Company without Cause, as defined below for purposes of this Section only, the Company shall, during the one-year period during which the
“Additional Covenants” stated in subsections 3.3(a), 3.3(b) and 3.3(c) above are in effect, (i) pay me an amount equal to the annualized base salary paid to me immediately prior to termination of my employment, (ii) pay me, if
applicable, an amount equal to the total 

  

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amount of all commissions paid to me during the twelve-month period immediately preceding the first day of the month of the date of termination of my
employment with the Company, (iii) pay me, if applicable, the amount I would have been eligible to receive under the Company’s bonus plan for the calendar year of the year in which the termination of my employment occurred, as if I had
been an employee of the Company during the entire applicable bonus year (i.e., the payment shall not be pro-rated in any manner and any requirements of the bonus plan that I be employed by the Company during all of the calendar year covered by the
bonus plan and/or be on the Company’s payroll as of the date the bonus payments are actually paid out are expressly waived for me in this circumstance), and (iv) count the one-year period during which the “Additional Covenants”
stated in subsections 3.3(a), 3.3(b), and 3.3(c) above are in effect as one year of service for purposes of calculating the vested portion of any Company stock options that have been granted to me (collectively, the “Non-Competition
Compensation”). Payment of my annualized base salary shall be made in accordance with the Company’s customary payroll practices, and the Company shall be entitled to make any withholdings from such payments required by law or otherwise
authorized by me, except that the Company shall have no obligation to accommodate my request for direct deposit or voluntary deductions for any purposes. Payment of my commission amount (as described above) shall be made in twelve installments and
will be paid to me according to the Company’s normal commission payment cycle during the one-year period in which the “Additional Covenants” stated in subsections 3.3(a), 3.3(b), and 3.3(c) above are in effect. Payment of my bonus
amount (as described above) shall be made in accordance with the Company’s established bonus payout practices for the applicable calendar year, and payment shall be made to me at the same time and in the same manner as that calendar year bonus
is paid out to the Company’s employees generally. Continued payment of my base salary, payment of my commissions and/or bonus, and continued vesting of my stock options, all under this subparagraph, shall not occur if termination of my
employment is due to my death, disability, or termination for “Cause,” as defined below. 
 (a) Enforcement. Should I
violate any terms of this Agreement, the Company, in addition to any other remedies available under law, may discontinue any payments being made to me pursuant to this Agreement and may discontinue any continuing vesting of stock options
occurring pursuant to this Agreement. 
 (b) Termination for “Cause.” Termination for “Cause” in this subsection
3.5 shall mean termination of my employment with the Company due to: (i) failure or refusal to perform the duties assigned to me, including but not limited to failure to reach assigned goals, quotas and/or objectives; (ii) my refusal to
follow the reasonable directives of the Board of Directors or Chief Executive Officer of Company or other insubordination; (iii) conviction or plea of guilty or nolo contendere of a felony, or of a misdemeanor involving dishonesty or violence;
(iv) misappropriation of any funds or property of the Company; (v) violation of any Company policies; (vi) breach of this Agreement; or (vii) commission of any act which could materially injure the business or reputation of, or
materially adversely affect the interests, of Company. 
 (c) Redundancy. Notwithstanding the foregoing, the payment of all or any
portion (as the case may be) of my Non-Competition Compensation pursuant to this 

  

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Agreement will cease if such payment would duplicate continued payments provided pursuant to any prior or subsequent agreement of any kind between me and the
Company. 
 3.6. E-Mail. I understand that the Company maintains an electronic mail system, Internet system and related facilities for
the purpose of business communications. I acknowledge that said systems and related facilities, as well as all electronic communications transmitted thereon, are Company property, that I have no right to or expectation of privacy related to my use
of such systems and facilities, and the Company retains the right to review any and all electronic mail communications, and my use of Internet and other electronic media, with or without notice, at any time. 
 4. Prior Proprietary Information and Conflicting Obligations 
 During my employment with Company, I agree that I will not knowingly improperly use or disclose any proprietary information or trade secrets of any former employer or other person or entity intended by such person or entity not to be
disclosed to Company. I further agree that I will not bring onto Company’s premises any unpublished document or proprietary information belonging to any such former employer, person or entity unless consented to in writing by such employer,
person or entity. I agree to inform the Company of any apparent conflicts between my work for Company and any obligations I may have to preserve the confidentiality of another’s proprietary information or materials; otherwise, the Company may
conclude that no such conflict exists and I agree thereafter to make no such claim against Company. Company shall receive such disclosures in confidence and consistent with the objectives of avoiding any conflict of obligations and rights or the
appearance of any conflict of interest. 
 Inventions directly relating and applicable and useful to the Company’s business, if any,
patented or unpatented, which I made prior to the commencement of my employment with the Company are excluded from the scope of this Agreement. To preclude any possible uncertainty, I have set forth on Exhibit 1 (Prior Inventions) attached hereto a
complete list of all such Inventions that I have, alone or jointly with others, conceived, developed or reduced to practice or caused to be conceived, developed or reduced to practice prior to the commencement of my employment with the Company, that
I consider to be my property or the property of third parties and that I wish to have excluded from the scope of this Agreement (collectively referred to as “Prior Inventions”). If disclosure of any such Prior Invention would cause me to
violate any prior confidentiality agreement, I understand that I am not to list such Prior Inventions in Exhibit 1 but am only to disclose a cursory name for each such invention, a listing of the party(ies) to whom it belongs and the fact that full
disclosure as to such inventions has not been made for that reason. A space is provided on Exhibit 1 for such purpose. If no such disclosure is attached, I represent that there are no such Prior Inventions. If, in the course of my employment with
the Company, I incorporate a Prior Invention into a Company product, test, service or process, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with rights to sublicense through
multiple tiers of sublicensees) to make, have made, modify, use and sell such Prior Invention. Notwithstanding the foregoing, I agree that I will not incorporate, or permit to be incorporated, Prior Inventions in any Company Inventions without the
Company’s prior written consent. 
  

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 I represent that, to the best of my knowledge, my performance of all of the terms of this Agreement and
as an employee of the Company does not and will not breach any agreement to keep in confidence proprietary information acquired by me prior to my employment by the Company. Further, I represent that, to the best of my knowledge, the performance of
my duties with the Company will not breach any contractual or other legal obligation I have to any third person. 
 5. Ideas and Inventions

 5.1. I agree that any and all intellectual properties, including, but not limited to, all ideas, concepts, themes, inventions, designs,
tests, procedures, research methods, improvements, discoveries, developments, formulas, patterns, devices, processes, software programs, hardware information, engineering and other information related to the integration of hardware and software,
software program codes, logic diagrams, flow charts, decision charts, drawings, procedural diagrams, coding sheets, documentation manuals, technical data, client, customer and supplier lists, and compilations of information, records, and
specifications, and other matters constituting trade secrets or Company Confidential Information, that relate in any way to the actual or prospective business of the Company or to any experimental or developmental work carried on by Company, and
that are conceived, developed or written by me, either individually or jointly in collaboration with others during my employment, and all designs, plans, reports, specifications, drawings, inventions, processes, test data and/or other information or
items produced by me while performing my duties for the Company, shall belong to and be the sole and exclusive property of Company, are “works for hire”, and to the extent they are not “works for hire”, I hereby assign all of my
rights, title and interest in such intellectual properties to the Company, including without limitation, all patent, copyright or trade secret rights therein. 
 5.2. I further agree to assist Company in obtaining patents on all inventions, designs, improvements and discoveries that are patentable, or copyright registrations on all works of authorship, and to execute all
documents and do all things necessary to vest Company with full and exclusive title and protect against infringement by others. I agree to give the Company or its designees all assistance reasonably required to perfect such rights provided that
following termination of my employment, the Company shall reimburse me for my reasonable time and expense in assisting with such matters. I further agree that if the Company is unable, after reasonable effort, to secure my signature on any such
papers, any executive officer of the Company shall be entitled to execute any such papers as my agent and attorney-in-fact, and I hereby irrevocably designate and appoint each executive officer of the Company as my agent and attorney-in-fact to
execute any such papers on my behalf, and to take any and all actions as the Company may deem necessary or desirable in order to protect its rights and interests in any work, under the conditions described in this sentence. I promise and agree that
I will promptly and fully inform the Company of and disclose to Company all intellectual properties described in Section 5.1 above that I make during my employment with Company, whether individually or jointly in collaboration with others, that
pertain or 

  

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relate to the actual or potential business of Company or to any experimental or developmental work carried on by Company, whether or not conceived during
regular working hours. I agree to make full disclosure to Company immediately after creating or making any of the intellectual properties identified in Section 5.1, and shall thereafter keep Company fully informed at all times of all progress
in connection therewith. I also promise and agree that I will promptly disclose to Company all patent applications filed by me or on my behalf within a year after termination of my employment that relate to or concern actual or contemplated business
of the Company. 
 5.3. Moral Rights. I understand that the term “moral rights” means any rights of attribution or
integrity, including any right to claim authorship of a copyrightable work, to object to a modification of such copyrightable work, and any similar right existing under the judicial or statutory law of any country in the world or under any treaty,
regardless of whether or not such right is denominated or generally referred to as a “moral right.” I forever hereby waive and agree never to assert any moral rights I may have in any copyrightable work that is assigned to Company as a
result of this Section, even after any termination of my employment with Company. 
 6. “At Will” Nature of Relationship 
 Nothing herein shall be construed as constituting an agreement, understanding or commitment of any kind that the Company shall continue to employ me for
any period of time. I hereby acknowledge and agree that my employment with the Company is and shall be “at will,” terminable by me or by the Company at any time with or without cause and with or without notice. Without limiting the
generality of the foregoing, I acknowledge that I will be subject to immediate dismissal for any breach of this Agreement. 
 7. Enforcement

 I acknowledge and agree that the restrictions contained in this Agreement are reasonable and necessary to protect the business, trade
secrets, Confidential Information, goodwill and other interests of the Company and that any violation of these restrictions would cause the Company substantial irreparable injury. Accordingly, I agree that a remedy at law for any breach of the
covenants or other obligations in this Agreement would be inadequate and that the Company, in addition to any other remedies available, shall be entitled to obtain preliminary and permanent injunctive relief to secure specific performance of such
covenants and to prevent a breach or threatened breach of this Agreement without the necessity of proving actual damage and without the necessity of posting bond or security, which I expressly waive. I will provide the Company a full accounting of
all proceeds and profits received by me as a result of or in connection with a breach of this Agreement. Unless prohibited by law, the Company shall have the right to retain any amounts otherwise payable by the Company to me to satisfy any of my
obligations as a result of any breach of this Agreement. I hereby agree to indemnify and hold harmless the Company from and against any damages incurred by the Company as assessed by a court of competent jurisdiction as a result of any breach of
this Agreement by me. I agree that each of my obligations specified in this Agreement is a separate and independent covenant that shall survive termination of my employment for any reason and that the unenforceability of any of them shall not
preclude the enforcement of any other covenants in this Agreement. 
  

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 8. Notification of New Employer 
 In the event that I leave the employ of Company, voluntarily or involuntarily, I agree to inform any subsequent employer of my rights and obligations under this Agreement. I further hereby authorize Company to notify
my new employer about my rights and obligations under this agreement. The foregoing consent is limited to the delivery by Company to my new employer a signed copy of this Agreement, and any written modifications thereto, and not to any
characterization thereof made by Company. 
 9. Choice of Law 
 This Agreement and its terms will be construed, enforced and governed by the laws of the State of Delaware without regard to conflict or choice of law rules or other principles that might otherwise refer construction
or interpretation of this Agreement to the substantive law of a jurisdiction other than Delaware. 
 10. Forum Selection 
 With regard to any claims, complaints or proceedings brought related to my obligations under this Agreement, at all times each party hereto
(a) irrevocably submits to the exclusive jurisdiction of any New York court or Federal court sitting in the State of New York in any action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, and
irrevocably agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York or Federal court; (b) to the extent permitted by law irrevocably consents to the service of any and all process in any
such action or proceeding by the mailing of copies of such process to such party at the address specified at the end of this Agreement; (c) to the extent permitted by law irrevocably confirms that service of process out of such courts in such
manner shall be deemed due service upon such party for the purposes of such action or proceeding; (d) to the extent permitted by law irrevocably waives (i) any objection such party may have to the laying of venue of any such action or
proceeding in any of such courts, or (ii) any claim that such party may have that any such action or proceeding has been brought in an inconvenient forum; and (e) to the extent permitted by law irrevocably agrees that a final nonappealable
judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Section 10 shall affect the right of any party hereto to
serve legal process in any manner permitted by law. 
 11. Successors and Assigns 
 This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors and permitted assigns, including any
corporation or entity with which or into which the Company may be merged or which may succeed to its assets or business, provided, however, that my obligations, as an employee, are personal and shall not be assigned by me. 

 

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 12. General Terms 
 This is my entire agreement with Company with respect to its subject matter, superseding any prior oral or written, express or implied negotiations and agreements. This Agreement may not be changed in any respect
except by a written agreement signed by both myself and an officer of Company. If any provision of the Agreement is held to be invalid, illegal or unenforceable for any reason, the validity, legality and enforceability of the remaining provisions
will not in any way be affected or impaired thereby. The delay or omission by the Company or me in exercising its/my rights under this Agreement, or the failure of either party to insist on strict compliance with any of the terms, covenants, or
conditions of this Agreement by the other party, shall not be deemed a waiver of any terms, covenants or conditions of this Agreement, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or
relinquishment of that right or power for all times or any other time. The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this
Agreement. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. It is the express intention and agreement of the parties hereto
that all covenants, agreements and statements made by any party in this Agreement shall survive the execution and delivery of this Agreement. In addition, the covenants, agreements and statements made in this Agreement shall survive termination of
my employment with the Company for any reason. 
 By my signature below, I acknowledge that I have reviewed this Agreement carefully and
understand that the covenants and obligations it contains are binding on me. 
 IN WITNESS WHEREOF, the parties hereto have executed and
delivered this Senior Vice President Confidentiality, Non-Solicitation and Non-Competition Agreement as of the      day of             ,
20    . 
 EMPLOYEE 
  

			
	 Signature
	 	  

	 Printed Name
	 	  

	 Home Address
	 	  

	 Social Security #
	 	  

			
	 Division/Company/Location
	 	  

 Exhibit 1 attached hereto:                    
Yes                
                No                 
  

					
	PAETEC COMMUNICATIONS, INC.
			
	By:	 	  
	 	
		 	Jolanda Chesonis	 	
		 	Vice President of Human Resources	 	

  

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 EXHIBIT 1 
 PRIOR INVENTIONS 
 This Exhibit 1 sets forth a complete list of all Inventions that I have, alone or
jointly with others, conceived, developed or reduced to practice or caused to be conceived, developed or reduced to practice prior to the commencement of my Employment with the Company, that I consider to be my property or the property of third
parties and that I wish to have excluded from the scope of the Senior Vice President Confidentiality, Non-Solicitation and Non-Competition Agreement (“Agreement”) (collectively referred to as “Prior Inventions”). 
 I understand that if disclosure of any such Prior Invention would cause me to violate any prior confidentiality agreement, I am not to list such Prior
Inventions in this Exhibit 1 but am only to disclose a cursory name for each such invention, a listing of the party(ies) to whom it belongs and the fact that full disclosure as to such inventions has not been made for that reason. A space is
provided below for such purpose. 
 If no such disclosure is attached, I represent that there are no Prior Inventions. 
 Description of Prior Inventions And Related Documents (if applicable): 
  

							
	 Title and Description
 of Invention And Related Document
	  	 Date of
 Invention/ Document
	  	 Owners of
 Invention/Document
	  	 Name of
 Witness(es) to
 Invention/ Document

		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

 If no information is listed herein, I hereby affirm that I do not have any such prior intellectual
properties, inventions or other works to identify. 
  

			
	Signature	 	  

		
	Name	 	  

		
	DateGround Lease

 Exhibit 10.38 
 GROUND LEASE 
 BETWEEN 
 The City of Pocatello, 
 a municipal corporation of Idaho 
 (“Landlord”) 
 and

 Hoku Materials, Inc., 
 a Delaware corporation 
 (“Tenant”) 
 as of 
 March 22, 2007 

 TABLE OF CONTENTS 
  

							
	 1.
	    	PREMISES; LEASEHOLD IMPROVEMENTS; CONSENT TO FINANCING.	  	1
				
		    	1.1  	    	Premises.	  	1
				
		    	1.2  	    	Construction of Leasehold Improvements by Tenant.	  	1
				
		    	1.3  	    	Construction of Infrastructure by Tenant; Reimbursement Through TIF.	  	2
				
		    	1.4  	    	Landlord’s Consent to Leasehold Improvement Financing.	  	2
			
	 2.
	    	LEASE TERM; CONSENT; ACCESS.	  	2
				
		    	2.1  	    	Term.	  	2
				
		    	2.2  	    	Pre-Term Access.	  	3
				
		    	2.3  	    	Inspections and Due Diligence.	  	3
				
		    	2.4  	    	Landlord’s Covenant of Quiet Enjoyment.	  	4
				
		    	2.5  	    	No Subordination.	  	4
			
	 3.
	    	RENTAL AMOUNTS.	  	4
				
		    	3.1  	    	Base Rent.	  	4
				
		    	3.2  	    	Payment of Additional Rent.	  	4
				
		    	3.3  	    	Interest on Past Due Amounts.	  	5
			
	 4.
	    	TAXES AND ASSESSMENTS; PRORATIONS.	  	5
				
		    	4.1  	    	Taxes and Assessments on Land and Leasehold Improvements.	  	5
				
		    	4.2  	    	Right to Contest.	  	5
				
		    	4.3  	    	Personal Property Taxes.	  	6
				
		    	4.4  	    	Other Taxes.	  	6
				
		    	4.5  	    	Exclusion From Taxes.	  	6
				
		    	4.6  	    	Prorations.	  	6
			
	 5.
	    	MAINTENANCE.	  	7
				
		    	5.1  	    	Maintenance of Leasehold Improvements.	  	7
				
		    	5.2  	    	Mechanic’s Liens.	  	7
				
		    	5.3  	    	Alteration of Leasehold Improvements.	  	8
				
		    	5.4  	    	Maintenance and Repair; Surrender Condition.	  	8
				
		    	5.5  	    	Right of Entry.	  	8
			
	 6.
	    	USE.	  	8
				
		    	6.1  	    	Use.	  	8
				
		    	6.2  	    	Security for Premises.	  	9

 TABLE OF CONTENTS 
 (CONTINUED) 
  

							
				
		    	6.3  	    	Signage.	  	9
				
		    	6.4  	    	Compliance With Laws.	  	9
			
	 7.
	    	REPRESENTATIONS AND WARRANTIES.	  	9
				
		    	7.1  	    	No Violation.	  	9
				
		    	7.2  	    	Landlord’s Covenants, Representations and Warranties.	  	10
				
		    	7.3  	    	Tenant’s Representations and Warranties.	  	10
			
	 8.
	    	INDEMNIFICATION.	  	10
				
		    	8.1  	    	Tenant Indemnification.	  	10
				
		    	8.2  	    	Landlord Indemnification.	  	11
			
	 9.
	    	INSURANCE.	  	11
				
		    	9.1  	    	General Liability.	  	11
				
		    	9.2  	    	Fire and Extended Coverage.	  	12
				
		    	9.3  	    	Tenant’s Personal Property.	  	12
				
		    	9.4  	    	Policies and Certificate of Insurance.	  	12
				
		    	9.5  	    	Workman’s Compensation.	  	13
			
	 10.
	    	DAMAGE OR DESTRUCTION.	  	13
				
		    	10.1  	    	Obligation to Restore.	  	13
				
		    	10.2  	    	Reconstruction and Repair Requirements.	  	14
				
		    	10.3  	    	Mutual Release.	  	14
			
	11.	    	CONDEMNATION.	  	14
				
		    	11.1  	    	Total/Partial Condemnation.	  	14
				
		    	11.2  	    	Temporary Condemnation.	  	14
			
	 12.
	    	OCCUPANCY TRANSACTIONS; TRANSFERS AND SUBLETTING.	  	15
				
		    	12.1  	    	Definitions.	  	15
				
		    	12.2  	    	Restrictions.	  	16
				
		    	12.3  	    	Condition Precedent.	  	16
				
		    	12.4  	    	Procedures.	  	16
				
		    	12.5  	    	No Release of Tenant.	  	17
				
		    	12.6  	    	Documentation and Expenses.	  	17
				
		    	12.7  	    	Nullity.	  	18
				
		    	12.8  	    	Permitted Transfers.	  	18
				
		    	12.9  	    	Leasehold Mortgages.	  	18
				
		    	12.10	    	Financing of FF&E; Waiver of Landlord’s Lien.	  	23
				
		    	12.11	    	No Sharing of Bonus Rent.	  	23

  

 ii 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

							
			
	 13.
	    	SUBLEASES OF PREMISES BY TENANT.	  	23
				
		    	13.1  	    	Right To Sublet.	  	23
				
		    	13.2  	    	Tenant’s Right to Sublease.	  	24
			
	 14.
	    	TENANT’S DEFAULT.	  	24
				
		    	14.1  	    	Tenant’s Default.	  	24
				
		    	14.2  	    	Cumulative Remedies.	  	25
				
		    	14.3  	    	Tenant’s Right to Possession Not Terminated.	  	25
				
		    	14.4  	    	Termination of Tenant’s Right to Possession.	  	26
			
	 15.
	    	LANDLORD’S DEFAULT.	  	26
			
	 16.
	    	HOLDING OVER.	  	27
			
	 17.
	    	SUBORDINATION.	  	27
			
	 18.
	    	UTILITIES AND SERVICES.	  	28
			
	 19.
	    	ESTOPPEL CERTIFICATES.	  	28
			
	 20.
	    	MISCELLANEOUS PROVISIONS.	  	28
				
		    	20.1  	    	Notices.	  	28
				
		    	20.2  	    	Headings.	  	29
				
		    	20.3  	    	Force Majeure.	  	29
				
		    	20.4  	    	Binding Effect.	  	30
				
		    	20.5  	    	Modifications.	  	30
				
		    	20.6  	    	Applicable Law.	  	30
				
		    	20.7  	    	Partial Invalidity.	  	30
				
		    	20.8  	    	Brokerage Commission.	  	30
				
		    	20.9  	    	Covenants Running with the Land.	  	30
				
		    	20.10	    	Memorandum of Lease.	  	30
				
		    	20.11	    	Relationship of the Parties.	  	31
				
		    	20.12	    	Entire Agreement.	  	31
				
		    	20.13	    	Sale of Premises.	  	31
				
		    	20.14	    	Legal Fees and Costs.	  	31

  

 iii 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

									
				
		    	20.15	    	Time.	  	32
				
		    	20.16	    	Counterparts.	  	32
				
		    	20.17	    	Waiver.	  	32
				
		    	20.18	    	Accord and Satisfaction.	  	32
				
		    	20.19	    	Execution of Lease.	  	32
				
		    	20.20	    	Tenant’s Good Standing; Due Authorization.	  	32
				
		    	20.21	    	Diligent Construction.	  	33
				
		    	20.22	    	Limitation on Landlord’s Liability.	  	33
				
		    	20.23	    	Joint and Several.	  	33
				
		    	20.24	    	Landlord’s Title.	  	33
			
	 21.
	    	HAZARDOUS MATERIALS.	  	34
				
		    	21.1  	    	Use, Storage, Handling and Disposal of Hazardous Materials.	  	34
				
		    	21.2  	    	Compliance with Laws.	  	34
				
		    	21.3  	    	Exculpation of Landlord.	  	34
				
		    	21.4  	    	Disclosure and Notification.	  	34
				
		    	21.5  	    	Inspection of Premises.	  	35
				
		    	21.6  	    	Indemnification.	  	35
				
		    	21.7  	    	Remediation.	  	36
				
		    	21.8  	    	Surrender of Premises.	  	37
				
		    	21.9  	    	Definition of Hazardous Materials.	  	37
				
		    	21.10	    	Hazardous Materials Use by Transferee.	  	37

  

 iv 

 EXHIBITS 
  

			
	Exhibit “A”	 	Legal Description of Premises
		
	Exhibit “B”	 	Map
		
	Exhibit “C”	 	Approved Exceptions
		
	Exhibit “D”	 	Memorandum of Lease

 GROUND LEASE 
 THIS GROUND LEASE
(“Lease”) is made as of the 22nd day of March, 2007 by and between THE
CITY OF POCATELLO, a municipal corporation of Idaho (“Landlord”), and HOKU MATERIALS, INC., a Delaware
corporation (“Tenant”), hereinafter “Party” or “Parties” as appropriate. 
 THE PARTIES HERETO HEREBY MUTUALLY COVENANT AND AGREE AS FOLLOWS: 
 1. PREMISES; LEASEHOLD
IMPROVEMENTS; CONSENT TO FINANCING. 
 1.1 Premises. 
 Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, that certain vacant land consisting of approximately sixty-seven (67) acres
located near S. Philbin Road, in the County of Bannock, State of Idaho, legally described in attached Exhibit “A” attached hereto as hereinafter provided and depicted on the Map attached as Exhibit “B”,
together with all easements which are now or in the future may be appurtenant thereto (“Premises”). Landlord represents and warrants to Tenant that, notwithstanding anything to the contrary on Exhibit C to this Lease, Tenant
has a legal right to access the premises from South Philbin Road over an “at grade” railroad crossing (the “Access Right”). In addition, Landlord covenants to use its best efforts to obtain and record one or more
easements to the real property described in Exhibit A for ingress, egress, and utilities in form and substance reasonably satisfactory to Tenant (the “Easement”). Landlord acknowledges and agrees that time is of the essence
in obtaining and recording the Easement. Landlord represents to Tenant that the Premises, and each of Tenant and all of the Tenant Parties as defined in Section 8.1, as well as their customers and guests shall have non-exclusive ingress and
egress to and from the Premises and, except to the extent set forth in this Lease or to the extent that Tenant enters into an agreement with any third party, the Premises shall not be burdened in any manner by any access or other rights granted to
any third parties; provided, however, that the foregoing shall not apply to: (i) agreements reached in cooperation with Landlord and other third parties for easement rights for utilities or other similar easements, provided that such
agreements and instruments are disclosed prior to the Effective Date and do not materially interfere with Tenant’s use of the Premises for purposes permitted under Section 6.1 below, Tenant’s occupancy of the Premises and do not
otherwise materially and adversely increase Tenant’s obligations or decrease Tenant’s rights under this Lease, and (ii) other rights or obligations of Landlord or Tenant which may be contained in this Lease. Tenant agrees to accept
possession of the Premises from Landlord on the terms and conditions of this Lease upon the Effective Date hereof subject to (a) all current matters of public record (subject to the provisions in the immediately following paragraph), and
(b) all applicable zoning, municipal, county, state and federal laws, ordinances and regulations governing and regulating the use of the Premises which exist or which are hereinafter enacted. 
  

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 1.2 Construction of Leasehold Improvements by Tenant. 
 Landlord and Tenant acknowledge and agree that Landlord is leasing the Premises to Tenant with the expectation that Tenant shall develop the Premises with
a polysilicon manufacturing facility and related improvements, including, without limitation, loading areas, perimeter sidewalks, parking areas, landscaping, trash enclosures and signage (all of such buildings and related improvements, collectively,
the “Leasehold Improvements”), all of which development shall be subject to the express terms and conditions of this Lease. For purposes of this Lease, the “Project” means the Premises and such Leasehold
Improvements. 
 1.3 Construction of Infrastructure by Tenant; Reimbursement Through TIF. 
 Tenant shall cause to be constructed such roadways, railroad lines, power lines, natural gas, sewer, water and utility transmission structures as Tenant
reasonably determines are required in connection with the Project (“Infrastructure”), at Tenant’s cost and expense, subject to Tenant’s right under the tax increment financing agreement to be negotiated between the
parties prior to the Effective Date (the “TIF Agreement”) to have (i) a portion of the Taxes (as defined in Section 4.1 below) and assessments on the Leasehold Improvements and (ii) costs and expenses incurred
by Tenant in connection with the Infrastructure, reimbursed in the manner and amount to be set forth in the TIF Agreement. 
 1.4
Landlord’s Consent to Leasehold Improvement Financing. 
 Landlord hereby consents to Tenant’s grant of a security interest in
Tenant’s leasehold interest under this Lease in connection with the senior secured credit facility (“Leasehold Improvement Financing”) between Tenant as Borrower and any lender to Tenant
(“Lender”), the proceeds of which will be used to fund a portion of the costs and expenses of the Project, and any modification or refinancing thereof. Landlord agrees to execute such further assurances in connection with
such Leasehold Improvement Financing and any amendments or refinancing thereof as Lender, or any successive lender, may reasonably require. 
 2. LEASE TERM; CONSENT; ACCESS. 
 2.1 Term. 
 This Lease shall be effective upon the date (“Effective Date”) that the last Party hereto executes this document. The term of this
Lease (“Term”) shall expire on December 31, 2106, unless this Lease shall sooner terminate or be extended pursuant to the terms and conditions herein. Notwithstanding anything to the contrary herein, Tenant may terminate
this lease and surrender the Premises upon written notice to Landlord, with no further liability to Landlord, at any time prior to Landlord obtaining and recording the Easement; provided, however that if Tenant has commenced Leasehold Improvements,
Tenant shall comply with Section 5.4(b) in connection with such termination and surrender of the Premises. For purposes of this Lease, the term “Lease Year” shall mean each calendar year during the Lease Term commencing on the
Effective Date. 
  

 2 

 2.2 Pre-Term Access. 
 Tenant shall be entitled to enter the Premises at any time following mutual execution of this Lease for purposes of conducting such investigations, tests and/or studies as Tenant deems desirable. Such access to the
Premises shall be subject to all terms and conditions of this Lease. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not perform or cause to be performed any tests or studies affecting or relating to the soils or
subsurface areas below the Premises or any other portion of the Project without providing prior written notice to Landlord. Tenant hereby indemnifies and holds Landlord harmless from any and all costs, losses, damages or expenses of any kind or
nature arising out of or resulting from such activities upon the Premises or Project by Tenant, or its agents, employees or contractors other than to the extent caused by (i) the negligence, willful act or omission of Landlord or Landlord
Parties (as defined in Section 8.1 hereof); or (ii) as a result of the discovery by Tenant of a pre-existing condition on the Premises or the Project. 
 2.3 Inspections and Due Diligence. 
 Except as otherwise provided herein, Tenant acknowledges and
agrees that prior to its execution of this Lease, it has had ample opportunity to inspect the Premises and to perform such due diligence as it deemed appropriate and necessary to satisfy it that the Premises and Project are suitable for its intended
use. In connection with Tenant’s due diligence, Landlord and Tenant agree as follows: 
 (a) Title, Survey, Soils. Prior to the
Effective Date, Landlord shall provide to Tenant the following: (a) a current preliminary ALTA report acceptable to Tenant (“Title Report”) from First American Title Company (“Title Company”),
showing Landlord as the fee owner of the Premises, together with copies of all easements, covenants, restrictions, agreements or other documents which affect the Premises; (b) a copy of the subdivision map of the Project, if any, and an ALTA
survey prepared by a civil engineer that shows the boundaries and location of the Premises as a legal parcel and the locations of all easements, certified by a licensed surveyor or civil engineer licensed in Idaho, in form reasonably acceptable to
Tenant and Lender; (c) such soil tests and/or environmental audits as are in Landlord’s possession; and (d) Phase I and Limited Phase II environmental site assessment reports in form and substance satisfactory to Tenant and Lender.
Attached hereto as Exhibit “C” is a list of the exceptions approved by Tenant (the “Approved Exceptions”). Tenant shall obtain a commitment for the issuance of an ALTA policy of title insurance issued by
the Title Company, insuring the priority of Tenant’s leasehold interest over all matters of record set forth in the preliminary ALTA report other than the Approved Exceptions and a commitment for the issuance of an ALTA lender’s policy of
title insurance issued by the Title Company, insuring the priority of Lender’s security interest in Tenant’s leasehold interest over all matters of record set forth in the preliminary ALTA report other than the Approved Exceptions.
Landlord shall be liable for the cost of the ALTA leasehold and lender’s policies and all reasonable and customary endorsements thereto. 
 (b) Permit Approvals and Feasibility Contingencies; Tenant’s Right to Terminate. This Lease is subject to Landlord’s recording the Easement and to Tenant’s ability to obtain the approvals and permits necessary to
permit it to construct and operate the Leasehold Improvements (“Required Permits”). Tenant will use commercially reasonable good faith 

  

 3 

 
efforts to diligently pursue receipt of the Required Permits. Notwithstanding the nature of the delaying cause (including Force Majeure delays as defined in
Section 20.3), in the event that either the Easement has not been recorded by the Effective Date or such Required Permits as are necessary to commence construction of the polysilicon manufacturing facility that is a part of the Leasehold
Improvements (the “Preliminary Permits”) have not been obtained during the period between the date of this Lease and December 31, 2010 (“Permit Period”), then Tenant may elect to terminate this
Lease upon written notice to the Landlord, and the Parties will be released from further obligations to one another under this Lease, except for those which accrued prior to the date of termination and which by law or the terms of this Lease survive
such termination. 
 2.4 Landlord’s Covenant of Quiet Enjoyment. 
 Landlord covenants and warrants that, so long as Tenant performs the obligations of Tenant contained herein and is not in default in the performance of
any of such terms, conditions, obligations, liabilities, or covenants, Landlord shall not interfere with Tenant’s (and its permitted subtenants’, successors’ and assigns’) free, peaceable, exclusive and quiet use and enjoyment of
the Premises, subject to the terms and conditions herein, and subject to: (a) the rights of the Parties as set forth in this Lease; and (b) the Approved Exceptions and any agreements and encumbrances to which this Lease is or will be
subordinate in accordance with the provisions of this Lease. 
 2.5 No Subordination. 
 Fee title to the Leased Premises is held by Landlord, free and clear of all encumbrances other than the Approved Exceptions. Landlord shall not attempt to
grant any right that is superior to Tenant’s rights under this Lease and Tenant shall not be required to subordinate its interest hereunder. 
 3. RENTAL AMOUNTS. 
 3.1 Base Rent. 
 Tenant’s obligation to pay Base Rent for the Premises shall commence on the Effective Date (“Rent Commencement Date”).
Beginning on the Rent Commencement Date and thereafter throughout the Term, Tenant shall pay to Landlord as annual base rent (“Base Rent”) for the Premises the sum of One and 00/100 Dollars ($1.00) per Lease Year, payable on
each anniversary of the Effective Date, in advance, without any notice, abatement, set-off, demand or deduction whatsoever. Tenant may prepay the Base Rent for the remaining Term in whole or in part at any time. The Base Rent for the first partial
Lease Year (since the Effective Date is not January 1) shall be paid upon execution of this Lease. 
 3.2 Payment of Additional Rent.

 Beginning on the Rent Commencement Date, any and all charges and sums other than the payment of Base Rent payable by Tenant under this
Lease (including, but not limited to, Tenant’s utility expenses, personal property taxes and Taxes on the Leasehold Improvements pursuant to Section 4.1), shall constitute additional rent hereunder (“Additional
Rent”). Except as otherwise expressly provided herein, all costs, expenses, and obligations of every kind or 

  

 4 

 
nature whatsoever relating to the Premises, or any improvements thereon which may arise or become due during the Term of this Lease, shall be paid by Tenant
as set forth herein. Nothing herein contained shall be deemed to require Tenant to pay or discharge any liens or mortgages of any character whatsoever which may exist or hereafter be placed upon the Premises by an affirmative act or omission of
Landlord. Should a rental period commence and/or end on a day other than the first (1st) or last day of a year, then the installment of annual rent for such partial year shall be prorated on the basis of a three hundred and sixty five
(365) day year. 
 3.3 Interest on Past Due Amounts. 
 Except as provided below, if Tenant shall neglect or fail to pay any amount required to be paid under this Lease by Tenant, and if Landlord pays such
amount, Tenant promises to pay to Landlord, in addition to such unpaid amounts, interest upon such unpaid amounts from the date paid by Landlord until the date Landlord receives reimbursement from Tenant, at the rate of six percent (6%) per
year (the “Interest Rate”). 
 4. TAXES AND ASSESSMENTS; PRORATIONS.

 4.1 Taxes and Assessments on Land and Leasehold Improvements. 
 Under no circumstances shall Tenant be responsible for paying real property taxes on the land described in Exhibit “A” (the
“Land”). Landlord hereby confirms that the Land is tax exempt as a result of being owned by Landlord. In the event that Landlord were to transfer the fee title to the land to a third party and such transfer were to result in
the Land losing its tax exempt status, the owner of fee title to the Land, and Landlord’s successor in interest to the Landlord’s interest under this Lease shall pay any and all real property taxes on such Land directly to the appropriate
governmental authority prior to the delinquency date established by the applicable taxing authority. Tenant shall pay one hundred percent (100%) of the real property taxes assessed against the Leasehold Improvements (together with the personal
property taxes required to be paid by Tenant pursuant to Sections 4.3 and 4.4 below, the “Taxes”) directly to the appropriate governmental authority prior to the delinquency date established by the applicable taxing
authority, subject to Tenant’s right under the TIF Agreement to have a portion of the Taxes and assessments on the Leasehold Improvements reimbursed in the manner and amount set forth in the TIF Agreement. Tenant’s liability to pay such
Taxes shall be prorated on the basis of a three hundred sixty-five (365) day year to account for any fractional portion of any calendar year. 
 4.2 Right to Contest. 
 Tenant shall have the right to contest the amount or validity of any Taxes payable with respect to
the Leasehold Improvements, in whole or in part, by appropriate administrative and legal proceedings, either in its own name, Landlord’s name or jointly with Landlord, without any cost or expense to Landlord and Tenant may postpone payment of
any such contested Taxes pending the prosecution of such proceedings and any appeals so long as Landlord’s property interest is not jeopardized. Tenant may elect to pay such Taxes under protest. Landlord shall execute and deliver to the Tenant
whatever documents may be reasonably necessary or proper to permit Tenant to so contest any such Taxes or which may be necessary to secure payment of any refund (with respect to a tax year or portion thereof during the Term of this Lease) which may
result from any such proceedings. 
  

 5 

 4.3 Personal Property Taxes. 
 Tenant shall also pay before delinquency all taxes (including sales and use taxes), assessments, license fees and public charges levied, assessed or
imposed upon its business operation as well as upon its merchandise, furniture, fixtures, equipment and other personal property. In the event any such items of property are assessed with property of Landlord, such assessment shall be equitably
divided between Landlord and Tenant. In such event, Tenant shall pay Landlord Tenant’s equitable contribution towards such taxes and assessments, in addition to (but not as a component of) any other contributions, personal property taxes,
Tenant’s insurance, repairs, maintenance or replacements of personal property or improvements or any other charge under this Lease. 
 4.4 Other Taxes. 
 If at any time during the Term of this Lease the methods of taxation prevailing at the execution hereof
shall be altered so that in lieu of, or as a supplement to, or a substitution for, the whole or any part of the Taxes now levied, assessed or imposed on the Leasehold Improvements, there shall be levied, assessed or imposed a tax, assessment, levy,
imposition or charge, wholly or partially as a capital levy or otherwise, on the rents received therefrom, or a tax, assessment, levy (including but not limited to any municipal, state or federal levy), imposition or charges measured by or based in
whole or in part upon the Leasehold Improvements or Premises and imposed upon Landlord, or a license fee measured by the Rent payable under this Lease, then all such taxes, assessments, levies, impositions, charges or the part thereof so measured or
based, shall be deemed to be included within the term “Taxes” as defined in Section 4.1, and Tenant shall pay and discharge the same as herein provided in respect of the payment of Taxes, to the extent that any of the foregoing taxes
or excises are in lieu of, or in substitution (in whole or in part), for ordinary property Taxes, and the amount of such tax or excise on rents that Tenant is required to pay as “Taxes” under this Section 4.4 will be computed as if
the Leasehold Improvements were the only property subject to such taxes and excises. 
 4.5 Exclusion From Taxes. 
 Nothing contained in this Lease shall require Tenant to pay any franchise, estate, gift, corporate, inheritance, or succession tax of Landlord or any
income, value added, or excess profits tax of Landlord or on the Land. 
 4.6 Prorations. 
 In the event of commencement or termination of this Lease at a time other than the beginning or end of one of the specified rental periods, Base Rent and
Additional Rent shall be prorated as of the date of commencement or termination, and in the event of termination for reasons other than default and except as otherwise expressly provided in this Lease, all prepaid rent shall be refunded to Tenant.

  

 6 

 5. MAINTENANCE. 
 5.1 Maintenance of Leasehold Improvements. 
 The Leasehold Improvements and the Premises shall be maintained at the sole cost and expense of Tenant in accordance with Section 5.4, below. Except as otherwise expressly provide in this Lease, Tenant shall further be solely
responsible for any and all repairs, alterations and/or corrective work as may be required from time to time after the Effective Date. All such improvements shall be owned by Tenant during the Term and shall be subject to Tenant’s right to
remove at the end of the Term. 
 5.2 Mechanic’s Liens. 
 Tenant agrees that it will pay or cause to be paid all costs and expenses for work done or caused to be done by it on the Premises and for Leasehold
Improvements, and will keep the Premises, the Leasehold Improvements, and Tenant’s leasehold interest free and clear of all mechanic’s, materialmen’s, contractor’s or subcontractor’s liens, and other liens on account of any
work done for Tenant or persons claiming under it. No such payment shall be construed as Base Rent or Additional Rent. Tenant agrees to, and shall, indemnify, defend and hold Landlord harmless from and against all liability, loss, damage, costs and
attorneys’ fees, and all other expenses by reason of claims of lien of laborers or materialmen or others for work performed or materials or supplies furnished for Tenant or persons validly claiming under it, together with reasonable
attorneys’ fees and all costs and expenses incurred by Landlord to negotiate, settle, defend or otherwise protect itself against such claims. 
 (a) In the event a lien shall be recorded against the Premises on account of work done or caused to be done by Tenant, Tenant shall have the right to contest the same by appropriate action so long as Landlord’s property interest
is not jeopardized. If the lien claimant commences foreclosure of the lien, Tenant will have twenty (20) days after commencement of such action in which to (i) cause said lien to be removed or (ii) post a bond or cash deposit equal to
one hundred fifty percent (150%) of the amount of the disputed claim with a company or companies reasonably satisfactory to Landlord and thereafter diligently contest the validity of the lien. If Tenant shall fail to cause said lien to be
removed or post the bond within said twenty (20) day period, Landlord may (but shall not be so required to), upon an additional five (5) day notice to Tenant, pay the claim giving rise to such lien and any costs associated therewith, and
the amounts so paid by Landlord, together with reasonable attorneys’ fees incurred in connection therewith, shall be immediately due and owing from Tenant to Landlord, as Additional Rent, and Tenant shall pay the same to Landlord within twenty
(20) days after receipt of an invoice showing the costs incurred, and if not paid within such time period, such costs will bear interest from the dates of Landlord’s payments at the Interest Rate. 
 (b) Should Tenant receive notice of any claims of lien filed against the Premises or of any action affecting the title to the Premises, Tenant
shall immediately give Landlord written notice thereof. 
  

 7 

 5.3 Alteration of Leasehold Improvements. 
 Landlord agrees that Tenant may, at its own expense, from time to time during the term hereof, make such alterations, additions and changes in and to the
Premises and Leasehold Improvements as Tenant may elect. All work with respect to any alterations, additions and changes must be done in a good and workmanlike manner and diligently prosecuted to completion. Any such changes, alterations and
improvements shall be performed and done in accordance with the laws and ordinances relating thereto. 
 5.4 Maintenance and Repair;
Surrender Condition. 
 (a) Tenant agrees that, at all times from and after the Effective Date, at no cost or expense to Landlord,
it will repair, replace and maintain the Leasehold Improvements located on the Premises, and any utility lines located on or under or exclusively serving the Premises, in good, first-class condition and repair, and in accordance with the
requirements of any governmental authority or agency having jurisdiction thereof. 
 (b) Upon any surrender of the Premises, Tenant
may remove, but shall not be required to remove, all or any portion of the Leasehold Improvements and shall redeliver to Landlord the Premises and all Leasehold Improvements not removed by Tenant in neat and clean condition free of debris, in good
order and state of repair, ordinary wear and tear and casualty excepted, and in compliance with Article 21. 
 5.5 Right of Entry.

 (a) Landlord reserves the right at all reasonable times and upon not less than 48 hours prior written notice to Tenant (except
in the case of an emergency) to enter the Premises to (i) inspect them; (ii) show the Premises to prospective purchasers, mortgagees; (iii) show the Premises to prospective tenants during the last twelve (12) months of the Term;
(iv) post notices of non-responsibility, (v) perform services required of Landlord; and (vi) perform any covenants of Tenant which Tenant fails to perform (subject to any notice and/or grace periods contained in this Lease). Landlord
may make any such entries without the abatement of Rent and may take such reasonable steps as required to accomplish the stated purposes; provided, however, each such entry shall be made in reasonable manner which, to the maximum extent
reasonably possible, does not interfere with Tenant’s business operations or security systems or those of Tenant’s subtenants. Further, Tenant shall have the right to accompany Landlord during any such entry (except in the case of an
emergency). Nothing herein contained shall imply any duty on the part of Landlord to do any such work which under any provision of this Lease Tenant may be required to do, nor shall it constitute a waiver of Tenant’s default in failing to do
the same. 
 6. USE. 
 6.1 Use. 
 Tenant shall have the right to use the Project for any legal use, including, without
limitation, the construction and operation of a polysilicon manufacturing facility. 
  

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 6.2 Security for Premises. 
 Tenant acknowledges that Landlord shall have no obligation whatsoever to provide guard service or other security measures for the benefit of the Premises.
Tenant assumes all responsibility for the protection of Tenant, its agents, employees, tenants and invitees, and the property of Tenant and its agents, employees, tenants and invitees, from the action of third parties. 
 6.3 Signage. 
 (a) Subject to
Tenant’s compliance with applicable codes, zoning ordinances and any other governmental requirements, Tenant may affix and maintain such signs, advertising placards, names, insignia, trademarks and descriptive materials as it may elect.

 (b) Tenant acknowledges that the entire cost of installation, maintenance and removal of all Tenant’s signage permitted
hereunder shall be borne solely by Tenant and Tenant shall maintain or cause to be maintained all such signage in good and proper condition. All Tenant signs shall at all times be and remain the property of Tenant and may be removed at Tenant’s
election, cost and expense at any time on, or prior to, the expiration or earlier termination of the Term of this Lease. 
 6.4 Compliance
With Laws. 
 Tenant shall comply with all governmental laws, ordinances and regulations now in force, or which may hereafter be in force,
applicable to the Premises as a result of Tenant’s use of the Premises and with any order, directive, or certificate of occupancy properly issued as a result of Tenant’s use of the Premises, all at Tenant’s sole expense. In the event
of any changes in laws, ordinances or regulations after the Effective Date, Tenant shall be obligated to comply with such changes when and if such compliance is required under the applicable laws, ordinances and regulations. Without limiting the
foregoing, Tenant shall be responsible for compliance with all requirements of the Americans with Disabilities Act of 1990 as it may be amended and as supplemented by further laws from time to time. Notwithstanding anything to the contrary contained
in this Lease, Tenant’s obligations to comply with governmental laws, ordinances, regulations, orders, or directives relating to Hazardous Materials, as defined in Section 21.9, are governed by Article 21, and not this Section 6.4.

 7. REPRESENTATIONS AND WARRANTIES. 
 7.1 No Violation. 
 Landlord and Tenant
hereby each represent and warrant to the other that their respective performance and compliance with the terms, provisions and conditions of this Lease does not and will not conflict with or result in any violation of any of the terms, conditions,
or revisions of an agreement, obligation, judgment, decree, order, statute, rule or regulation applicable to Landlord or to Tenant. 
  

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 7.2 Landlord’s Covenants, Representations and Warranties. 
 Landlord hereby covenants, represents and warrants to Tenant that: 
 (a) Landlord is the owner in fee of the Premises and will not transfer its interest in the Premises without first giving one hundred and eighty (180) days prior notice to Tenant. 
 (b) Landlord has the full power, right and authority to enter into and execute this Lease. 
 (c) Those persons whose signatures are hereinafter evidenced on this Lease on behalf of Landlord are duly authorized signatories of Landlord,
fully empowered to commit and bind Landlord to those certain terms, covenants and conditions set forth herein for the Term of this Lease. 
 (d) To Landlord’s actual knowledge, the Premises are not contaminated by any Hazardous Materials as defined in Section 21.9. 
 (e) To Landlord’s actual knowledge, there are no suits, proceedings, litigation (including zoning or other land use regulation proceedings), condemnation or investigations pending or threatened against or
affecting Landlord or the Premises which would prevent Landlord from meeting any of its obligations under this Lease or adversely affect Tenant’s use or occupancy of the Premises or prohibit Tenant from developing or operating the Premises.

 (f) To Landlord’s actual knowledge there are no liens, encumbrances, or any other defects in title pertaining to the Premises
which are not shown on the Preliminary Title Report, and that documents delivered by Landlord to Tenant are true and correct copies of the originals thereof. 
 7.3 Tenant’s Representations and Warranties. 
 Tenant hereby represents and warrants to Landlord
that: 
 (a) Tenant has the full power, right and authority to enter into and execute this Lease; and 
 (b) Those persons whose signatures are hereinafter evidenced on this Lease on behalf of Tenant are duly authorized signatories of Tenant, fully
empowered to commit and bind Tenant to those certain terms, covenants and conditions set forth herein for the Term of this Lease. 
 8.
INDEMNIFICATION. 
 8.1 Tenant Indemnification. 
 Tenant agrees to protect, defend, indemnify and hold Landlord and Landlord’s interest in the Premises harmless from and against any and all loss,
damage and liability arising 

  

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from (i) Tenant’s failure to perform and observe its covenants hereunder, (ii) any act or omission of Tenant or its officers, agents,
employees, independent contractors, licensees, subtenants and the subtenants’ employees, concessionaires or assignees (collectively, “Tenant Parties”) causing loss or damage to the Premises or the Project or any acts or
omissions of patrons or customers of Tenant or any subtenants causing loss or damage to the Premises or the Project, (iii) the occupation, use, possession, conduct or management of the Premises and Project by Tenant or the Tenant Parties or
(iv) any work or thing whatsoever done in or on the Premises and Project by Tenant or the Tenant Parties; provided that the terms of the foregoing indemnity shall not apply to the negligence or willful misconduct of Landlord or its officers,
agents, employees, independent contractors, licensees, concessionaires or assignees (collectively, “Landlord Parties”). The provisions of this Article 8 shall survive the expiration or sooner termination of this Lease with
respect to any claims or liability occurring prior to such expiration or termination. 
 8.2 Landlord Indemnification. 
 Landlord agrees to protect, defend, indemnify and hold Tenant and Tenant’s interest in the Premises and Project harmless from and against any and all
loss, damage and liability arising from (i) Landlord’s failure to perform and observe its covenants hereunder, (ii) any act or omission of Landlord or any Landlord Parties causing loss or damage to the Premises or the Project,
(iii) any work or thing whatsoever done in or on the Premises or Project by Landlord or Landlord Parties; (iv) any action by a third party, including an action pursuant to a court order or the enforcement of applicable law that restricts
or otherwise limits the Access Right; and (v) any actual or alleged violation of the National Historic Preservation Act (16 U.S.C. 470) or other state or federal law concerning the preservation or protection of historic properties; provided
that the terms of the foregoing indemnity shall not apply to the negligence or willful misconduct of Tenant or Tenant Parties. The provisions of this Article 8 shall survive the expiration or sooner termination of this Lease with respect to any
claims or liability occurring prior to such expiration or termination. 
 9. INSURANCE. 
 9.1 General Liability. 
 Commencing
upon Tenant’s entry upon the Premises and thereafter during the Term of this Lease, Tenant shall carry and maintain commercial general public-liability insurance against claims for personal injury, death or property damage upon or about the
Premises and the Leasehold Improvements thereon. The amount of coverage shall be not less than Three Million Dollars ($3,000,000.00) per person, per occurrence. Notwithstanding the foregoing amount of coverage required, Tenant’s coverage
hereunder may be part of a blanket or umbrella policy(ies) if the combination of Tenant’s underlying and umbrella or blanket policies meet the coverage requirements hereunder and further contain a per location endorsement (or other similar
endorsement reasonably acceptable to Landlord) which would guarantee Landlord the amount of the coverage required herein. In the event that Tenant elects to utilize any blanket or umbrella policy(ies), Tenant’s underlying policy for such
coverage shall not be less than One Million Dollars ($1,000,000.00) per person, per occurrence. During any construction, Tenant shall obtain a “course of construction” endorsement to such policies. The policies shall also 

  

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insure Tenant’s contractual liability under the indemnity provisions of this Lease and contain a cross-liability endorsement. Tenant may carry and
maintain during the entire Term, at Tenant’s sole cost and expense, increased amounts of the insurance required to be carried by Tenant pursuant to this Article 9, and such other reasonable types of insurance coverage and in such reasonable
amounts covering the Premises and Tenant’s operations therein, as Tenant may elect. 
 9.2 Fire and Extended Coverage.

 Upon the commencement of construction of the Leasehold Improvements and continuing thereafter during the Term of this Lease, Tenant
shall carry and maintain fire and extended coverage (“All-Risks”) insurance on the Premises and Leasehold Improvements located thereon, in an amount not less than the full replacement costs of the Leasehold Improvements. Any
policy proceeds shall be used for the repair or replacement of the property damaged or destroyed unless this Lease shall cease and terminate under the provisions of Article 11. 
 9.3 Tenant’s Personal Property. 
 During the Term of this Lease, Tenant shall maintain in full force and effect on all Tenant’s Property from time to time in, on or upon the Premises, fire and extended coverage (“All-Risks”) insurance in the
amount of the full replacement value thereof. Any policy proceeds shall be used for the repair or replacement of Tenant’s Property damaged or destroyed unless this Lease shall cease and terminate under the provisions of Article 11. 

9.4 Policies and Certificate of Insurance. 
 Evidence of all such insurance shall be promptly provided to Landlord upon Landlord’s request. The policies of insurance required under this Article 9 shall be issued by good, responsible companies, qualified to do business in the
State of Idaho, with a general policy holders’ rating of at least A and a financial rating of at least Class VIII as rated in the most currently available “Best’s Key Rating Guide”. Tenant shall use commercially reasonable
efforts to cause all policies of insurance of Tenant and its subtenants to name, as additional insureds, Landlord and such persons and affiliated entities and lenders of Landlord that are parties in interest or otherwise have an insurable interest,
as Landlord may reasonably request. As often as any such policy shall expire or terminate, renewal or additional policies shall be procured and maintained by Tenant in like manner and to like extent. All policies required under this Lease shall be
written as primary coverage not contributing with or being in excess of any other coverage carried by Landlord. Tenant’s coverage hereunder may be part of a blanket or umbrella policy if the same meets the requirements set forth, above. All
policies of casualty insurance required hereunder shall include a clause or endorsement denying the insurer any rights of subrogation against the other party to the extent rights have been waived by the insured before the occurrence of injury or
loss. Each party waives any rights of recovery against the other for injury or loss to property arising from any peril to the extent insured against under any casualty insurance policy carried by it, or required to be carried hereunder. Tenant shall
cause the insurance companies issuing property damage insurance to waive any rights of subrogation that such companies may have against Landlord. 
  

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 9.5 Workman’s Compensation. 
 Tenant shall carry workman’s compensation insurance in such amounts as are required by applicable law. 
 10. DAMAGE OR DESTRUCTION. 
 10.1 Obligation to Restore. 
 In case
of damage to or destruction of the Leasehold Improvements by a risk that is not required to be covered by insurance as set forth in Article 9 of this Lease, the repair costs for which Tenant reasonably believes will be in excess of five percent
(5%) of the replacement costs thereof, Tenant shall have the right to terminate this Lease by giving written notice to Landlord within ninety (90) days of such damage or destruction. In case of damage to or destruction of the Leasehold
Improvements by a risk required to be covered by insurance as set forth in Article 9 of this Lease, this Lease shall not terminate. If this Lease is not terminated, Tenant shall promptly, restore, rebuild, replace or repair the Leasehold
Improvements with improvements of comparable value and quality as existed immediately prior to such damage or destruction. Tenant shall promptly and diligently process applicable insurance claims. Such restoration, repair or rebuilding shall be
commenced as promptly as possible following Tenant’s receipt of the proceeds of insurance, and shall thereafter be prosecuted with due diligence. Notwithstanding the foregoing, however, in the case of: (i) damage to or destruction of the
Leasehold Improvements during the last five (5) years of the Lease Term that renders them inaccessible or unusable for purposes of conducting Tenant’s business; or (ii) in the event that the reasonable cost estimate to reconstruct the
Leasehold Improvements exceeds fifty percent (50%) of the replacement value of the Leasehold Improvements, Tenant may elect to terminate this Lease by giving Landlord written notice of such election within ninety (90) days following the
casualty, in which event Tenant shall have no obligation to restore, rebuild, replace or repair the Leasehold Improvements, provided, however, Tenant shall either, at its cost or with the proceeds of casualty insurance, clear the Premises of
debris and return the same to a safe and neat and clean condition. 
 Notwithstanding the foregoing, the proceeds of insurance payable on
account of the casualty required to be carried under this Lease, whether actually carried or not (plus the amount of any deductible or self-insured retention level, which will be paid by Tenant) will be the “Restoration Fund.” The
Restoration Fund will be made available to pay the costs of such work, in the same manner including, but not limited to, fund control, as proceeds of a construction loan are subject to disbursement. 
 Tenant will not be required to incur costs for the restoration in excess of the Restoration Fund proceeds, but will cause the Leasehold Improvements, to
the extent feasible, to be restored: (i) to a complete architectural unit, (ii) in condition appropriate to permit continuation of Tenant’s business operation, and (iii) to substantially the same value and utility as immediately
before the casualty, to the extent feasible (taking into consideration, among other matters, the amount of the Restoration Fund). 
  

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 10.2 Reconstruction and Repair Requirements. 
 Tenant shall notify Landlord in writing prior to commencing its plan for reconstruction or repair. 
 10.3 Mutual Release. 
 Upon any
termination of this Lease under any of the provisions of this Article 10, or Article 2.1, the Parties shall be released thereby without further obligations to the other Party coincident with the surrender of possession of the Premises by Tenant to
Landlord, except for financial obligations which have accrued prior to the surrender and remain unpaid and any and all obligations of Landlord or Tenant accruing prior to the date of surrender which by law or through the provisions of this Lease
shall survive any termination of this Lease. Furthermore, in the event of termination, all proceeds from insurance policies maintained under Section 9.2 shall be disbursed and paid to Tenant. 
 11. CONDEMNATION. 
 11.1 Total/Partial Condemnation. 
 In case all of the Premises, or such part thereof as shall materially and substantially
interfere with Tenant’s and/or its subtenants’ ability to conduct its business upon the Premises, shall be taken for any public or quasi-public purpose by any lawful power or authority by exercise of the right of appropriation,
condemnation or eminent domain, or sold to prevent such taking, Tenant shall have the right to terminate this Lease effective as of the date possession is required to be surrendered to said authority; provided, however, that Landlord and
Tenant shall each remain liable for financial obligations which have accrued prior to the surrender and remain unpaid and any and all obligations of Landlord or Tenant accruing prior to the date of surrender which by law or through the provisions of
this Lease shall survive any termination of this Lease. Tenant’s allocation shall be a sum attributable to the fair market value of Tenant’s interest in the Premises and the fair market value of Tenant’s interest in all Leasehold
Improvements. 
 In the event the amount of property or the type of estate taken shall not materially and substantially interfere with the
ability of Tenant and/or its subtenants to conduct its business upon the Premises, Tenant may not terminate this Lease and Landlord shall be entitled to the entire amount of the award relating to Landlord’s fee interest in the Premises without
abatement, set-off or deduction for any estate or interest of Tenant, provided, however, Tenant shall be entitled to that portion of an award allocable to the Leasehold Improvements and allocable to the value of Tenant’s leasehold
estate. Tenant shall restore the Premises to substantially their same condition prior to such partial taking to the extent of any award proceeds received by Tenant. 
 11.2 Temporary Condemnation. 
 In the event of a taking of the Premises or any part thereof for
temporary use, (i) this Lease shall be and remain unaffected thereby and Rent shall not abate, and (ii) Tenant shall be entitled to receive for itself such portion or portions of any award made for such use with respect to the period of
the taking which is within the Term. For purposes of this Section 11.2, a “temporary taking” shall be defined as a taking for a period of one hundred eighty (180) days and not beyond the Term. 
  

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 12. OCCUPANCY TRANSACTIONS; TRANSFERS AND
SUBLETTING. 
 12.1 Definitions. 
 As used in this Article 12, the following definitions shall apply: 
 “Transfer” means
any voluntary, unconditional and present transfer of some or all of Tenant’s interest, rights and duties in this Lease and/or the Leasehold Improvements and/or Premises, including Tenant’s right to use, occupy and possess the Premises and
Leasehold Improvements, but shall not mean (i) Tenant’s delegation of rights and duties to or possession of the Premises by management companies engaged by Tenant, (ii) transfers contemplated or permitted by the governing
documents of Tenant or within and between Tenant and its members or shareholders, (iii) a sublease of Tenant’s right to use, occupy and possess the Premises, in whole or in part, including a sub-sublease thereof or any assignment of a
sublease or sub-sublease, or (iv) Permitted Transfers, as defined in Section 12.8 below; 
 “Encumbrance”
means any mortgage, deed of trust, pledge, hypothecation, lien, or other security arrangement encumbering Tenant’s interest under this Lease; 
 “Change of Control” means the transfer by sale, assignment, death, incompetency, trust, operation of law, or otherwise of any shares, voting rights or ownership interest which will result in a change in persons
exercising, or who may exercise, effective control of Tenant, unless such change results (i) from a transaction which is excluded from the definition of “Transfer” set forth above, or (ii) from the trading of shares listed on a
recognized public stock exchange. If Tenant is a private corporation whose stock becomes publicly held, the transfers of such stock from private to public ownership shall not be deemed a Change of Control; 
 “Occupancy Transaction” means any Transfer or Change of Control, or other arrangement whereby the identity of the person or
persons using, occupying or possessing the Premises or Leasehold Improvement changes, excluding (i) Permitted Transfers, as defined in Section 12.8 below, (ii) Leasehold Mortgages, which are subject to the express provisions of
Section 12.9 below, (iii) any financings of furniture, fixtures, equipment and other personal property (“Tenant’s FF&E”) which are subject to the express provisions of Section 12.10 below; and

 “Transferee” means the proposed assignee, subtenant, mortgagee, beneficiary, pledgee or other recipient of
Tenant’s interests, rights or duties in this Lease or the Premises in the Occupancy Transaction. 
 “Permitted
Transfer” has the definition set forth in Section 12.8 below. 
  

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 12.2 Restrictions. 
 (a) Occupancy Transactions Other Than Encumbrances. Tenant shall not enter into, or consent to, an Occupancy Transaction without first procuring Landlord’s written consent, which Landlord shall not
withhold unreasonably. The Parties agree, however, that the manner of operation of the Premises and conduct of business thereon by Tenant will have an impact on the quality, reputation and financial condition of the City of Pocatello. Accordingly,
the Parties agree that in approving or disapproving of any proposed Occupancy Transaction, it shall not be unreasonable for Landlord to withhold its consent if any of the following situations exist or may exist: 
 (i) Use. The Transferee’s contemplated use of the Premises following the proposed Occupancy Transaction is not the Permitted Use or a change
in use that has been approved by Landlord pursuant to Section 21.10 below regarding Hazardous Materials; 
 (ii) Business
Experience. In Landlord’s reasonable business judgment, the transferee or those to whom Transferee delegates management functions lacks sufficient business reputation or experience to operate a successful business of the type and quality
permitted under this Lease; 
 (iii) Amendment to Lease. The Transferee requests an amendment of this Lease other than the identity
of Tenant; 
 (iv) Breach of Agreements. The proposed Occupancy Transaction would involve a change from the Permitted Use that would
breach any covenant of Landlord respecting radius, location, use or exclusivity in any other lease, financing agreement or other agreement relating to the Project or obligation existing as of the Effective Date; or 
 (v) Financial Strength. The proposed Transferee of Tenant’s obligations hereunder does not demonstrate to Landlord’s reasonable
satisfaction sufficient financial strength to meet the monetary obligations of Tenant hereunder, or, in lieu thereof, does not provide reasonable guarantees or security therefor. 
 12.3 Condition Precedent. 
 Tenant
shall not have the right or power to request Landlord’s consent to, or to enter into, an Occupancy Transaction if there exists an uncured Event of Default, after expiration of any applicable notice and/or grace period, at the time of such
request, and/or if Tenant is not in compliance with any of its obligations under this Lease. 
 12.4 Procedures. 
 (a) Request for Consent. Should Tenant desire to enter into an Occupancy Transaction, Tenant shall give notice thereof to Landlord by requesting in
writing Landlord’s consent to such Occupancy Transaction at least twenty (20) business days before the proposed effective date of any such Occupancy Transaction (and, if such Occupancy Transaction must be approved by Landlord at a city
council meeting, then provided that Landlord’s receipt of such request and data occurred at least fifteen (15) business days before a scheduled city council meeting), and shall provide Landlord with the following: 
 (i) Description of Transaction. A summary of the full particulars of the proposed Occupancy Transaction including its nature, proposed use,
effective date, terms and conditions; 
  

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 (ii) Description of Transferee. A description of the identity, net worth and previous business
experience of the Transferee, including copies of Transferee’s latest income statement, balance sheet and change-of-financial-position statements, and certified as accurate by the Transferee; 
 (iii) Hazardous Materials. A description of the types and quantities of Hazardous Materials, if any, which the Transferee intends to bring onto
the Premises; and 
 (iv) Additional Information. Any further information relevant to the transaction which Landlord shall have
requested in writing within ten (10) business days after receipt of Tenant’s request for consent. 
 (b) Period for Review.
Within twenty (20) business days after receipt of Tenant’s request for consent (and, if such Occupancy Transaction must be approved by Landlord at a city council meeting, then provided that Landlord’s receipt of such request occurred
at least fifteen (15) business days before a scheduled city council meeting), Landlord shall respond in writing as follows: 
 (i)
Consent to the Occupancy Transaction; or 
 (ii) Refuse to consent to the Occupancy Transaction, provided that such refusal
includes Landlord’s reasonable objections to such Occupancy Transaction. 
 Landlord’s failure to respond to Tenant’s request within such
twenty (20) business day period shall be deemed Landlord’s consent to the Occupancy Transaction. 
 12.5 No Release of Tenant.

 In the event of an Occupancy Transaction that has received Landlord’s prior written consent, Tenant shall not be released
therefrom from its obligations under this Lease, notwithstanding the Transferee’s express written assumption of Tenant’s rights and obligations hereunder. 
 12.6 Documentation and Expenses. 
 Each Occupancy Transaction to which Landlord has consented shall be
evidenced by an instrument made in such written form as is reasonably satisfactory to Landlord and executed by Tenant and Transferee. If such instrument is an assignment, Transferee shall assume and promise to perform all the terms, covenants and
conditions of this Lease which are obligations of Tenant. 
  

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 12.7 Nullity. 
 Any purported Occupancy Transaction consummated in violation of the provisions of this Article 12 shall, at the written election of Landlord be null and void and of no force or effect. 
 12.8 Permitted Transfers. 
 Notwithstanding anything to the contrary contained in this Lease, none of the following (each a “Permitted Transfer”) shall be deemed a Transfer under this Article 12, and no consent of Landlord shall be required in
connection with any Permitted Transfer: (i) an assignment Tenant’s rights under this Lease to a transferee which is the resulting entity of a merger or consolidation of Tenant with another entity; (ii) an assignment, or subletting of
all or a portion of the Premises, to an affiliate of Tenant (i.e., an entity which is controlled by, controls, or is under common control with, Tenant); (iii) an assignment of Tenant’s interest in this Lease to an entity which
continues to operate the Leasehold Improvements for the purpose to which they are being put immediately prior to such assignment; (iv) an assignment of Tenant’s interest in this Lease to an entity which continues to operate the Leasehold
Improvements for a use that does not create substantially greater risk of violations of applicable Environmental Laws and that requires the employment of substantially the same number of employees as were required by the operation of the Leasehold
Improvements immediately prior to such assignment; and (v) with respect to any sublease approved by Landlord, any assignment, sublease, transfer, change of control or other event or circumstance that by the provisions of such sublease or
assignment does not require consent. “Control,” as used in this Section 12.8, shall mean the ownership, directly or indirectly, of at least fifty-one percent (51%) of the voting securities of, or possession of the right to vote,
in the ordinary direction of its affairs, of at least fifty-one percent (51%) of the voting interest in, any person or entity. Notwithstanding the provisions of this Section 12.8, nothing contained herein shall act to release Tenant from
liability under this Lease. 
 12.9 Leasehold Mortgages. 
 (a) Definitions. For purposes of this Section 12.9, the following definitions shall be applicable: 
 (1) “Leasehold Mortgage” shall mean and include a mortgage, a deed of trust, deed to secure debt, including, but not limited to, a purchase money obligation, or other security instrument by which Tenant’s
leasehold estate or any portion thereof is mortgaged, conveyed, assigned or otherwise transferred to secure a debt or other obligation. 
 (2) “Leasehold Mortgagee” shall mean a holder of a Leasehold Mortgage. 
 (3)
“Tenant” shall mean the Tenant under this Lease; a permitted assignee, transferee or subtenant of the Tenant under this Lease; or any further permitted assignee, transferee or subtenant of any permitted assignee,
transferee or subtenant of the Tenant under this Lease. 
  

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 (b) Tenant’s Right To Encumber Leasehold. Tenant may, at any time during the Term of this
Lease, or any extension as provided herein, without Landlord’s consent, encumber to any Leasehold Mortgagee by Leasehold Mortgage or other security instrument all of Tenant’s right, title and interest in and to the Leasehold Improvements,
this Lease and the leasehold estate hereby created in Tenant; provided, however, that: (i) no Leasehold Mortgage incurred by Tenant pursuant to this Section shall, and Tenant shall not have the power, to incur any encumbrance that will
constitute in any way a lien or encumbrance on Landlord’s fee interest in the Premises; (ii) the Leasehold Mortgage and all rights acquired under it shall be subject to each and all of the terms, covenants, conditions and restrictions
stated in this Lease, and to all of the rights and interests of Landlord, except as otherwise expressly provided in this Lease. Landlord shall cooperate in including in this Lease by suitable amendment from time to time, any provision which any
proposed Leasehold Mortgagee reasonably requests for the purposes of implementing the Leasehold Mortgagee protection provisions contained in this Article and allowing such Leasehold Mortgagee reasonable protection of its Leasehold Mortgage lien in
the event of a default by Tenant. Landlord agrees to execute and deliver (and to acknowledge, if necessary, for recording purposes) any document or agreement reasonably necessary to effect any such amendment; provided, however, that any such
amendment shall not in any material respect adversely affect any rights of Landlord under this Lease. A Leasehold Mortgagee may enforce its Leasehold Mortgage and acquire title to the leasehold estate in any lawful way and, pending foreclosure of
such Leasehold Mortgage, such Leasehold Mortgagee may take possession of and operate the Premises, performing all obligations of Tenant under this Lease arising from and after the date such Leasehold Mortgagee takes possession of the Premises, and
upon foreclosure of such Leasehold Mortgage by power of sale, judicial foreclosure, or upon acquisition of the leasehold estate by deed in lieu of foreclosure, the Leasehold Mortgagee may, upon notice to Landlord, sell and assign the leasehold
estate hereby created subject to the requirements of this Lease (including subsection (d) below). In no event shall such Leasehold Mortgagee be responsible or liable to Landlord under this Lease unless and until such time as the Leasehold
Mortgagee acquires all rights of Tenant under this Lease pursuant to a foreclosure or other proceeding. Notwithstanding any such Leasehold Mortgage, in no event shall Tenant be released from any of its obligations under this Lease (even in the event
any Leasehold Mortgagee or any successor acquires title to such leasehold estate). 
 (c) Request for Notice of Loan Default.
Immediately after the recording of any Leasehold Mortgage executed by Tenant containing a “power of sale”, Tenant shall at Tenant’s own cost and expense record in the office of the Bannock County Recorder of the State of Idaho, a
written request executed and acknowledged by Landlord for a copy of any notice of sale under such Leasehold Mortgage to be mailed to Landlord at the address specified in the request by Landlord. 
 (d) Notices to Landlord. If Tenant shall on one or more occasions obtain a purchase money Leasehold Mortgage upon a sale or assignment of the
leasehold estate or any portion thereof, or shall mortgage its leasehold estate, the holder of such Leasehold Mortgage shall provide Landlord with notice of such Leasehold Mortgage together with a true copy of such Leasehold Mortgage and the name
and address of the Leasehold Mortgagee. Landlord and Tenant agree that, following receipt of the notice from the holder of the Leasehold Mortgage by Landlord, the provisions of this Section 12.9 shall apply with regard to each such Leasehold
Mortgage. In the event of any assignment of a Leasehold Mortgage or in the event of a change of address of a Leasehold Mortgagee or of an assignee, notice thereof shall be promptly provided to Landlord, and in no event later than sixty
(60) days following such assignment. 
  

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 (e) Copies of Mortgage Documents. Following Landlord’s request therefor, Tenant shall provide
Landlord with copies of the note or other obligation secured by any Leasehold Mortgage and of any other documents pertinent to the Leasehold Mortgage which were not previously provided to Landlord, including conformed copies of all documents of
record regarding such Leasehold Mortgage. Tenant shall thereafter also provide Landlord with a copy of each amendment or other modification or supplement to such instruments upon their execution, promptly following Landlord’s request.

 (f) Notice of Default or Breach. Landlord, concurrently with the delivery to Tenant of any notice of a default or breach under this
Lease, shall provide a copy of such notice to any Leasehold Mortgagee, so long as Landlord has previously been informed of the name and address of such Leasehold Mortgagee in the manner and by the means provided for in Section 20.1 of this
Lease and Tenant has previously delivered a copy of such Leasehold Mortgage to Landlord. No such notice by Landlord to Tenant shall be deemed to have been duly given unless and until a copy thereof has been so provided to any Leasehold Mortgagee of
which Landlord has notice. Landlord may not terminate this Lease because of Tenant’s default or breach if, within the Cure Period (as provided below), any such Leasehold Mortgagee shall have: (i) cured all defaults or breaches described in
said notice which can be cured by the payment of money; or (ii) if any such defaults or breaches are not curable by the payment of money and require possession of the Premises, commenced to cure such defaults or breaches and continue diligently
to prosecute the same towards completion (including foreclosure if necessary to gain possession of Premises); provided, however, such Leasehold Mortgagee shall not be obligated to cure any non-monetary default which is not susceptible of cure
by such Leasehold Mortgagee. If the Leasehold Mortgagee ceases its effort to cure any such default, fails to keep all Rent, including Base Rent, Additional Rent, insurance premiums and Taxes current, or discontinues the foreclosure proceedings
without effecting the cure of such default, then Landlord shall have no further obligation hereunder to forebear the termination of this Lease. The “Cure Period” under this Section 12.9 will commence on receipt of written notice by
the Leasehold Mortgagee as to the default or breach by Tenant and end ninety (90) days after the running of any notice or grace period permitted to Tenant in this Lease. Notwithstanding anything to the contrary contained in this Lease, in no
event shall any Leasehold Mortgagee be obligated to cure (nor shall any rights of such Leasehold Mortgagee be conditioned upon Leasehold Mortgagee’s cure of) any default under this Lease, unless such Leasehold Mortgagee received written notice
of such default within thirty (30) days of the occurrence of such default. 
 (g) Leasehold Mortgagee’s Right to New Lease.
Upon a Leasehold Mortgagee’s request to Landlord within thirty (30) days after such Leasehold Mortgagee’s acquisition of such leasehold, Landlord shall enter into a new lease with such Leasehold Mortgagee covering the Premises covered
by the foreclosed Lease if such Leasehold Mortgagee: (i) gives notice of request prior to or concurrently with such termination or foreclosure; (ii) pays all costs resulting from or associated with such new lease (including Landlord’s
attorneys’ fees and costs); and (iii) remedies all defaults construed as though this Lease had not been terminated (including, but not limited to, the payment of all Rent, including Base Rent, Additional Rent, insurance premiums, Taxes and
all other charges that, but for such termination, would have 

  

 20 

 
become due under this Lease up to and including the commencement of the term of such new lease). The new lease shall be for the remainder of the Term of this
Lease, effective at the date of termination or foreclosure, and in the form of this Lease, including, but not limited to, payment by such Leasehold Mortgage of the Rent and performance of all of the covenants, agreements, conditions, provisions,
restrictions and limitations contained in this Lease (including the restrictions on use contained in Article 6). Any new lease made pursuant to this Section 12.9(g), and any renewal lease entered into with a Leasehold Mortgagee, shall have the
same right, title and interest in and to this Lease, the Premises and the Leasehold Improvements thereon as Tenant had under this Lease. 
 (h) Multiple Leasehold Mortgages. If more than one Leasehold Mortgagee shall make a written request upon Landlord for a new lease in accordance with the provisions of Section 12.9(g) above, then such new lease shall be entered
into pursuant to the request of the Leasehold Mortgagee or its designee whose Leasehold Mortgage shall be junior in lien provided: (i) all Leasehold Mortgagees senior in lien shall have been paid all installments of interest and amortization of
principal then due and owing to such Leasehold Mortgagees plus all expenses, including reasonable attorneys’ fees, incurred by such senior Leasehold Mortgagees in connection with the termination of this Lease and with the execution and delivery
of such new lease; (ii) the new Tenant will assume, in writing, all of the covenants, agreements and obligations on the part of such mortgagor(s), subject nevertheless to the terms and conditions of such senior Leasehold Mortgages (which may
contain exculpatory provisions which shall inure to the benefit of such new Tenant); (iii) such new lease shall contain all of the same provisions and rights in favor of and for the benefit of Leasehold mortgagees thereof, as are contained in
this Lease, including, but not limited to, the right to obtain a new lease in the event of the termination of said lease, and the right to receive notices of default, and to cure the same, in the same manner as provided in this Lease; and
(iv) the senior Leasehold Mortgagees (at no expense to such senior Leasehold Mortgagees or to Landlord) shall have received from the respective title insurance companies insuring the respective senior Leasehold Mortgages and any assignment of
rents and other security instruments executed in connection therewith will continue, with respect to such new lease, in the same manner and order of priority of lien as was in existence with respect to this Lease; and thereupon the leasehold estate
of the new Tenant created by such new lease shall be subject to the lien of the senior leasehold Mortgages in the same manner and order of priority of lien as was in existence with respect to this Lease. 
 In the event not all of the foregoing provisions shall have been satisfied by or with respect to any such junior Leasehold Mortgagee, the Leasehold
Mortgagee immediately senior in lien to such junior Leasehold Mortgagee shall have paramount rights to the benefits set forth in Section 12.9(b) above, subject nevertheless to the provisions hereof respecting the senior Leasehold Mortgagees, if
any. In the event of any dispute as to the respective senior and junior priorities of any such Leasehold Mortgages, the certification of such priorities by a title company doing business in the State of Idaho shall be conclusively binding on all
parties concerned. Should there be a dispute among Leasehold Mortgagees as to compliance with the foregoing provisions, Landlord may rely on the affidavit of the most senior Leasehold Mortgagees as to compliance by any junior Leasehold Mortgagee.
Landlord’s obligation to enter into a new lease with any junior Leasehold Mortgagee shall be subject to the receipt by Landlord of evidence reasonably satisfactory to it that the conditions of this Section 12.9(h) have been satisfied with
respect to each such senior Leasehold Mortgagee. 
  

 21 

 The right of a senior Leasehold Mortgagee under Section 12.9(g), above, to request a new lease may,
notwithstanding any limitation of time set forth above in this Section 12.9(h) be exercised by the senior leasehold Mortgagee within twenty (20) days following the failure of a junior Leasehold Mortgagee to have exercised such right, but
no more than sixty (60) days after giving of notice by Landlord of termination of this Lease as set forth in Section 12.9(f), above. 
 Except as provided in Section 12.9(f), above, if a junior Leasehold Mortgagee shall fail or refuse to exercise the rights set forth in this Section 12.9(h), said senior Leasehold Mortgages, in the inverse order of the seniority of
their respective liens, shall have the right to exercise such rights subject to the provisions of this Lease. 
 (i) Foreclosure
Purchasers. For purposes of this Section 12.9, a Leasehold Mortgagee or other acquirer of the leasehold estate of Tenant, pursuant to foreclosure, assignment in lieu of foreclosure or other like proceedings (“Foreclosure
Purchaser”) shall be deemed to be subject to and to have agreed to perform all of the terms, covenants and conditions of this Lease on the part of Tenant to be performed hereunder from and after the date of such purchase or assignment,
but only for so long as such Foreclosure Purchaser is the owner of the leasehold estate. Any Foreclosure Purchaser may thereafter sell and assign the leasehold estate provided that the purchaser or assignee (i) assumes the performance of all of
the terms, covenants and conditions of this Lease, and expressly confirms in writing that the same are in full force and effect; (ii) agrees to use the Premises for its Permitted Use (or such other use as may reasonably be approved by Landlord;
and (iii) otherwise satisfies the requirements of this Article 12 and all other provisions of this Lease concerning an assignment hereof. Upon such sale or assignment, the Foreclosure Purchaser shall be relieved of all obligations under this
Lease. 
 (j) Protection of Landlord’s Estate. Despite anything in this Lease to the contrary, the foregoing provisions do not
give to any person whatsoever the right to mortgage, hypothecate or otherwise to encumber or to cause any liens to be placed against the fee simple title of Landlord, nor shall said provisions be construed as resulting in a subordination in whole or
in part of the fee simple estate of Landlord to any indebtedness of Tenant. 
 (k) Mortgagee Clauses. A standard mortgagee clause or
endorsement naming each Leasehold Mortgagee may be added to any and all insurance policies required to be carried by Tenant hereunder on condition that the insurance proceeds are to be applied in the manner specified in this Lease and each Leasehold
Mortgage shall so provide, except that such Leasehold Mortgage may provide in a manner for the disposition of such proceeds, if any, otherwise payable directly to Tenant (but not such proceeds, if any, payable jointly to Landlord and Tenant)
pursuant to the provisions of this Lease. 
 (l) Notice of Proceedings. Landlord shall give each Leasehold Mortgagee whose name and
address for notice has been given to Landlord, prompt notice of any legal proceedings between Landlord and Tenant involving the enforcement or declaration of obligations under this Lease. Each Leasehold Mortgagee shall have the right to intervene in
any such proceedings and be made a party to such proceedings, and the Parties hereto do hereby consent to such intervention. In the event that any Leasehold Mortgagee shall not elect to 

  

 22 

 
intervene or become a party to any such proceedings, Landlord shall give the Leasehold Mortgagee notice of, and a copy of, any award or decision made in any
such proceedings, which shall be binding on all Leasehold Mortgagees not intervening after receipt of such notice of such proceedings. 
 12.10 Financing of FF&E; Waiver of Landlord’s Lien. 
 Within ten (10) business days after written request from
Tenant, Landlord shall execute and deliver any document reasonably required by any supplier, lessor, or lender in connection with the granting, creating, or perfecting by Tenant of a security interest in and to the Leasehold Improvements,
Tenant’s leasehold interest under this Lease and/or Tenant’s personal property, and/or any trade fixtures, furniture, fixtures and equipment, inventory, signs or other personal property installed by Tenant, subtenant or Transferee, and any
proceeds therefrom, pursuant to which Landlord shall waive, or subordinate, as the case may be, any rights it may have or acquire with respect to such items, and any proceeds therefrom. 
 12.11 No Sharing of Bonus Rent. 
 Tenant shall be entitled to retain all consideration it receives in connection with any Permitted Transfer or Occupancy Transaction, and shall not be obligated to pay any portion thereof to Landlord. 
 13. SUBLEASES OF PREMISES BY TENANT. 
 13.1 Right To Sublet. 
 In addition to
Tenant’s right, without Landlord’s consent, to enter into any sublease that is a Permitted Transfer, Tenant shall have the right to sublet all or any part of the Premises, provided that: (i) each sublease other than a Permitted
Transfer contains a provision satisfactory to Landlord and to each Leasehold Mortgagee having an interest at the time the sublease is executed that requires the subtenant to attorn to Landlord or, in the event of any proceeding to foreclose any
Leasehold Mortgage, to the Leasehold Mortgagee, or any person designated in a notice from Leasehold Mortgagee, if Tenant defaults under this Lease and if the subtenant is notified of Tenant’s default and instructed to make subtenant’s
rental payments to Landlord or Leasehold Mortgagee or other designee; (ii) Tenant shall not accept, directly or indirectly, more than three (3) months’ prepaid rent from any subtenant; and (iii) Tenant shall not utilize the
sublease process to subvert the occupancy transaction provisions concerning assignment and transfer, and Landlord’s rights thereunder as set forth above. 
 Landlord shall have the right to approve the form of the sublease to be utilized with such subtenants, which approval shall not be unreasonably withheld, delayed or conditioned. The sublease shall require that each
subtenant and the sublease associated with such subtenant is subordinate to the terms of this Lease. In the event of any conflict between this Lease and any sublease of Tenant, the provisions of this Lease shall prevail. Tenant agrees that it will
provide Landlord with a copy of each sublease for any portion of the Premises upon execution thereof and to the extent the provision of any sublease are in conflict with this Lease the provisions of this Lease shall control. 
  

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 13.2 Tenant’s Right to Sublease. 
 Notwithstanding anything to the contrary, Tenant may sublease a portion of the Premises to a subtenant upon the following provisions: 
 (i) The Sublease shall be documented on a form reasonably acceptable to Landlord; 
 (ii) Tenant shall provide that information pertaining to such proposed subtenant as described in Sections 12.2(a)(i) and 12.2(a)(iv), as well as
Sections 12.4(a) (i) and (ii) (including a description of such subtenant’s use), and Sections 12.4(a)(iii) and 12.4(a)(iv); 
 (iii) Landlord shall either consent or refuse to consent to such sublease based on commercially reasonable standards and shall do so during the period of time applicable to Landlord’s review of an Occupancy Transaction under
Section 12.4(b) above. Landlord’s failure to respond within such period shall constitute Landlord’s consent thereto; and 
 (iv) It shall be considered commercially reasonable for Landlord to refuse to approve any sublease if in Landlord’s reasonable judgment, the proposed subtenant’s use would violate the permitted use provisions of
Section 6.1 above. 
 14. TENANT’S DEFAULT. 
 14.1 Tenant’s Default. 
 Each of
the following shall, subject to the notice and cure provisions set forth hereunder with respect thereto, constitute an “Event of Default” by Tenant hereunder: 
 (a) If Tenant shall fail to make payment of Rent or any other amount due and owing hereunder when and as the same shall become due and payable, and such failure shall continue for a period of ten (10) days
following written notice of such default by Landlord to Tenant; 
 (b) If Tenant shall fail in the performance of or compliance with
any of the covenants, agreements, terms, or conditions contained in this Lease and/or its Exhibits, other than that referred to in the foregoing subsection 14.1(a), and such failure shall continue for a period of thirty (30) days following
written notice of such failure by Landlord to Tenant, provided that if the nature of such default is such that the same cannot reasonably be cured within a 30-day period, Tenant shall not be deemed to be in default if it diligently commences such
cure within such 30-day period and thereafter diligently proceeds to rectify and cure said default as soon as possible; 
 (c) To the
extent permitted by law, if a general assignment has been made by Tenant or any guarantor of this Lease for the benefit of creditors, or if there is a filing by or against Tenant or any guarantor of any proceeding under an insolvency or bankruptcy
law, unless in the case of a proceeding filed against Tenant or any guarantor the same is dismissed within sixty (60) days, or the appointment of a trustee or receiver to take possession of all or substantially all of the assets of Tenant or
any guarantor, unless possession is restored to Tenant 

  

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or such guarantor within sixty (60) days, or in the event of any execution or other judicially authorized seizure of all or substantially all of
Tenant’s assets located upon the Premises or of Tenant’s interest in this Lease, unless such seizure is discharged within sixty (60) days; 
 (d) Tenant’s failure to have completed construction of a polysilicon manufacturing facility on the Premises and commenced operation thereof by December 31, 2010; or 
 (e) Tenant’s abandonment of the Premises. Abandonment shall be deemed to have occurred if, following completion of construction and
commencement of operation of the polysilicon manufacturing facility Tenant ceases operations on the Premises for a period of twelve (12) consecutive months. 
 14.2 Cumulative Remedies. 
 Upon the occurrence of an Event of Default, Landlord shall have all the
remedies set forth in this Article 14 and as provided under Idaho law. These remedies are not exclusive; they are cumulative and in addition to any and all remedies now or later allowed by law or in equity. 
 14.3 Tenant’s Right to Possession Not Terminated. 
 Upon the occurrence of an Event of Default, Landlord may continue this Lease in effect after Tenant’s breach and abandonment and recover Rent as it becomes due, if Tenant has right to sublet or assign, subject
only to reasonable limitations. Landlord can continue this Lease in full force and effect, and this Lease will continue in effect as long as Landlord does not terminate Tenant’s right to possession by written notice thereof to Tenant, and
Landlord shall have the right to enforce Tenant’s obligations hereunder and to collect Rent and all other amounts hereunder when due. During the existence of an Event of Default, Landlord can enter the Premises and re-let them, or any part of
them, to third parties for Tenant’s account. In such event, Tenant shall be liable immediately to Landlord for all costs Landlord incurs in re-letting the Premises, including, without limitation, broker’s commissions and like costs.
Re-letting can be for a period shorter or longer than the remaining Term of this Lease, but Tenant shall only be responsible for broker’s commissions attributable to the remaining Term of this Lease. No act by Landlord allowed by this
Section 14.3 shall terminate this Lease unless Landlord notifies Tenant in writing that Landlord elects to terminate this Lease. If Landlord elects to re-let the Premises as provided in this Section 14.3, the Rent that Landlord receives
from re-letting shall be applied to the payment of: first, any indebtedness or other costs and expenses hereunder owing from Tenant to Landlord other than Rent due from Tenant; second, all costs, including for maintenance, incurred by Landlord in
re-letting, and third, Rent due and unpaid under this Lease. After deducting the payments referred to in this Section 14.3, any sum remaining from the rent Landlord receives from re-letting shall be held by Landlord (without interest thereon or
liability therefor) and applied in payment of future Rent as Rent becomes due under this Lease. In no event shall Tenant be entitled to any excess rent received by Landlord. If, on the date Rent is due under this Lease, the rent received from the
re-letting is less than the Rent due on that date, Tenant shall pay to Landlord, in addition to the remaining Rent due, all costs, including for maintenance, incurred by Landlord in re-letting that remain after applying the Rent received from the
re-letting as provided in this Section 14.3. 
  

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 14.4 Termination of Tenant’s Right to Possession. 
 Upon the occurrence of an Event of a Default, Landlord can terminate this Lease and Tenant’s right to possession of the Premises at any time.
Termination under the circumstances set forth in this Section will not occur unless and until Landlord provides written notice of termination to Tenant. Acts of maintenance, efforts to re-let the Premises, or the appointment of a receiver on
Landlord’s initiative to protect Landlord’s interest under this Lease shall not constitute a termination of this Lease or of Tenant’s right to possession. On termination, Landlord has the right, in addition to any and all other rights
of Landlord hereunder, in equity, or at law, to recover from Tenant the following: 
 (a) The worth, at the time of the award, of the
unpaid Rent that had been earned at the time of termination of this Lease; 
 (b) The worth, at the time of the award, of the amount
by which the unpaid Rent that would have been earned after the date of termination of this Lease until the time of award exceeds the amount of the loss of Rent that Tenant proves could have been reasonably avoided; 
 (c) The worth, at the time of the award, of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the
amount of the loss of Rent that Tenant proves could have been reasonably avoided; and 
 (d) Any other amount, and court costs,
necessary to compensate Landlord for all detriment proximately caused by Tenant’s default. 
 “The worth, at the time of the
award,” as used in (a) and (b) of this Section 14.4, is to be computed by allowing interest at the Interest Rate. “The worth, at the time of the award,” as referred to in (c) of this Section 14.4, is to be
computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award plus one percent (1%). 
 15. LANDLORD’S DEFAULT. 
 Should Landlord default in
the payment of any obligation of Landlord under any mortgage, trust deed, judgment, assessment, tax or other encumbrance affecting the Premises, or fail to perform any obligation of Landlord specified under this Lease, and if such default is not
cured by Landlord within thirty (30) days after Tenant has notified Landlord in writing of such default (excepting therefrom the event when Landlord may be in default of a nonmonetary obligation but has undertaken to cure the default and
thereafter diligently pursues the cure to completion), Tenant shall have the right, but not be obligated, to pay or discharge any such obligation following delivery to Landlord of an additional written notice of Tenant’s election to do so.
Should Tenant elect to pay or discharge any such obligation, Landlord shall, within thirty (30) calendar days from the date of Tenant’s written demand, reimburse Tenant for the reasonable costs incurred by Tenant in connection therewith,
including, but not limited to, 

  

 26 

 
reasonable attorneys’ fees. Tenant shall supply such documentation regarding Tenant’s costs as Landlord may reasonably request. Tenant’s
written demand shall specify and breakdown in reasonable detail the nature of all sums expended. Nothing herein contained shall be interpreted to mean that Tenant is excused from paying Rent due hereunder by reason of any default by Landlord. Tenant
will not have the right to terminate this Lease for such default. In the event of such default, Tenant shall have all remedies available under law or equity, including (without limitation) the right of specific performance; provided, however,
that in no event shall Landlord be liable under any circumstance to Tenant for any loss of profits arising in connection with such default by Landlord, unless acts within the control of Landlord render Tenant’s use and occupancy impracticable
or infeasible. In addition, Landlord will be liable for a late charge and interest at the Interest Rate, on the same basis as provided above for non-payment of Rent. 
 In the event of a default on the part of Landlord hereunder, Tenant shall give notice to any mortgagee or ground lessor of Landlord which has notified Tenant of its address in the manner provided for notices in this
Lease and said mortgagee or ground lessor will have the right to cure Landlord’s defaults under this Article 15. The cure period will commence on notice to such mortgagee of the default and extend for a period ending twenty (20) days after
the end of the time period for Landlord to cure a default. 
 16. HOLDING OVER. 
 Any holding over by Tenant after this Lease has expired shall, at Landlord’s option, be considered an extension of this Lease on a month to month
basis only, on the same terms and conditions set forth herein except for annual Base Rent, which shall thereafter be at the rate of one hundred twenty five percent (125%) of the fair market rental value as determined by an MAI appraiser with at
least five years of experience in appraising industrial properties in Idaho, to be selected by Landlord. 
 17.
SUBORDINATION. 
 This Lease shall (subject to Landlord’s obligation to deliver to Tenant a nondisturbance agreement
as provided below) be subject and subordinate to the terms and provisions of the lien of any mortgage or trust deed, now or hereafter in force against the Premises, if any, and to all renewals, extensions, modifications, consolidations and
replacements thereof, and to all advances made or hereafter to be made upon the security of such mortgages or trust deeds, unless the holders of such mortgages or trust deeds, or the lessors under such ground lease or underlying lease, require in
writing that this Lease be superior thereto provided, however, no subordination of this Lease to a mortgage or trust deed shall result in Tenant being disturbed in its possession of the Premises or in the enjoyment of its rights under this
Lease so long as Tenant is not in default beyond any applicable cure period with respect to its obligations hereunder, and any subordination agreement which Landlord, any mortgagee or beneficiary requests Tenant to execute to effect or confirm such
subordination shall so provide. Tenant covenants and agrees in the event any proceedings are brought for the foreclosure of any such mortgage or trust deed or deed in lieu thereof, to attorn, without any deductions or set-offs whatsoever, to the
purchaser or any successors thereto upon any such foreclosure sale or deed in lieu thereof if requested to do so by such purchaser, and to recognize such purchaser as Landlord under this Lease, provided that Tenant shall not be disturbed in its
possession of the Premises or 

  

 27 

 
in the enjoyment of its rights under this Lease. Tenant shall, within fifteen (15) days of receipt of such a request by Landlord, execute and deliver to
Landlord such further instruments or assurances as Landlord may reasonably deem necessary to evidence or confirm the subordination or superiority of this Lease to any such mortgages or trust deeds, ground leases or underlying leases and
Tenant’s agreement to attorn, conditioned upon Tenant’s obtaining from such mortgagee or beneficiary a nondisturbance and attornment agreement executed by such mortgagee or beneficiary in form and substance satisfactory to Tenant, that
provides, among other things, that, as long as Tenant is not in default hereunder beyond any applicable cure period, this Lease shall remain in effect for the full Lease Term. 
 18. UTILITIES AND SERVICES. 
 Tenant agrees to pay all charges for utilities and services used by it at the Project, including, but not limited to, gas, electricity, telephone,
sanitary sewer, storm drainage, domestic water, fire protection, water flow and trash collection. Landlord shall not be liable in damages or otherwise for any failure, interruption or lack of availability of any utility or other service. No such
failure, interruption or lack of availability shall entitle Tenant to terminate this Lease or withhold or abate Rent or other sums due hereunder. 
 19. ESTOPPEL CERTIFICATES. 
 Each Party agrees at any time, and from time to time, upon not
less than ten (10) business days’ notice by the other Party to execute, acknowledge and deliver to such Party a statement in writing certifying that: (i) this Lease is unmodified and in full force and effect (or if there have been
modifications that the same is in full force and effect as modified and stating the modifications); (ii) whether or not there are then existing any defaults, set-offs or defenses against the enforcement of any of the terms, covenants or
conditions hereof upon the part of Tenant to be performed (and if so specifying the same); (iii) the dates to which the Rent and other charges have been paid; and (iv) such other matters as may reasonably be requested, it being intended
that any such statement delivered pursuant to this Section may be relied upon by the Parties, their lenders, and any prospective purchaser of the fee or leasehold interest or proposed lender on the security of the fee or leasehold interest of the
real property comprising the Premises. The provisions of this Article 19 are hereby deemed to be reciprocal to the extent contextually applicable. 
 20. MISCELLANEOUS PROVISIONS. 
 20.1 Notices. 
 All notices, approvals, requests, demands and other communications permitted or required to be given under this Lease shall be in writing and shall be
deemed and duly served or given when actually delivered, if personally delivered (including delivery by Federal Express, Express Mail or other similar overnight courier which confirms delivery in writing), or if sent by certified mail, postage
prepaid, return receipt requested, then (a) when delivered to the address of the Party by the U.S. Postal Service, or (b) in the case of refusal to accept delivery or inability to deliver the notice, the date of the attempted delivery or
refusal to accept delivery. Such notices 

  

 28 

 
shall be addressed to the addresses of the Parties set forth below. Landlord and Tenant may, from time to time by notice to the other, designate another
place for receipt of future notices. 
  

							
		 	To Landlord:	 	City of Pocatello	  	
		 		 	911 N. 7th Street	  	
		 		 	P.O. Box 4169	  	
		 		 	Pocatello, Idaho 83205-4169	  	
				
		 	with a copy to:	 	City Attorney	  	
		 		 	Attn: Dean Tranmer, Esq.	  	
		 		 	Email: dtranmer@pocatello.us	  	
		 		 	Fax No.: 208-239-6986	  	
		 		 	Telephone No.: 208-232-6149	  	
				
		 	To Tenant:	 	Hoku Materials, Inc	  	
		 		 	At the Premises	  	
		 		 	Attn: Plant Manager	  	
				
		 	with a copy to:	 	Hoku Scientific, Inc	  	
		 		 	1075 Opakapaka Street	  	
		 		 	Kapolei, HI 96707-1887 USA	  	
		 		 	Telephone No.: 808 682 7800	  	

 20.2 Headings. 
 The headings of each of the Articles and Sections of this Lease are for convenience only and do not in any way limit, amplify or otherwise affect the
covenants and agreements contained in this instrument. 
 20.3 Force Majeure. 
 Except as expressly provided herein, in the event that Landlord or Tenant shall be delayed, hindered in or prevented from the performance of any act
required hereunder (excluding Tenant’s obligations to pay Rent or any other amounts due hereunder) by reason of acts of god or inclement weather which Tenant could not reasonably have foreseen, strikes, lockouts, labor troubles, inability to
procure materials, failure of power, restrictive governmental laws or regulations to the extent that they cause delay and are not within Tenant’s control, riots, insurrection, war or other reason beyond their control (financial ability
excepted), then performance of such act shall be extended for a period equivalent to the period of such delay (“Force Majeure”). 
  

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 20.4 Binding Effect. 
 The provisions of this instrument shall be binding upon and inure to the benefit of the Parties and their respective heirs, legal representatives, successors and assigns, subject to Article 12. 
 20.5 Modifications. 
 Any alteration,
change or modification of or to this Lease, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each Party. 
 20.6 Applicable Law. 
 This Lease
shall be governed by, and construed in accordance with, the laws of the State of Idaho. Bannock County District Court shall be the proper venue for any dispute arising in connection with this Lease. 
 20.7 Partial Invalidity. 
 If any
term, provision, condition or covenant of this Lease or the application thereof to any Party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this Lease, or the application of such term, provision, condition
or covenant to persons or circumstances under those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and enforceable to the fullest extent permitted by
law. 
 20.8 Brokerage Commission. 
 The Parties warrant that neither is, or has been, represented by a real estate broker on this transaction and no commissions are, or shall be, owed in connection herewith. Each Party shall indemnify and hold the other
Party harmless from and against any and all losses, damages, liabilities, losses, costs and expenses (including, but not limited to, reasonably attorney’s fees and related costs) resulting from any claims that may be asserted against such other
Party by any real estate broker, finder or intermediary arising from any act of the indemnifying Party in connection with this Lease. 
 20.9 Covenants Running with the Land. 
 All of the covenants, agreements, conditions and restrictions set forth in this Lease
are intended to be and shall be construed as covenants running with the land, binding upon, inuring to the benefit of, and enforceable by and against, the Parties and their successors-in-interest. 
 20.10 Memorandum of Lease. 
 This
Lease shall not be recorded; however, Landlord and Tenant will execute and acknowledge a memorandum of this Lease in the form attached as Exhibit “D”. Tenant shall 

  

 30 

 
pay any recording charges or other costs incurred in connection with or as a result of the recordation of the Memorandum of Lease. Other than the original
form of Exhibit “D”, when signed by all of the parties thereto, Tenant shall not record any other instrument affecting the Premises or the Project without the prior written consent of Landlord, which consent shall not be reasonably
withheld. Tenant shall, upon the expiration or earlier termination of this Lease, execute, acknowledge and deliver to Landlord a quit-claim deed to the Premises. 
 20.11 Relationship of the Parties. 
 The provisions of this instrument shall be binding upon and inure
to the benefit of the Parties and their respective heirs, legal representatives, successors and assigns, subject to Article 12. 
 The
relationship of the Parties is that of Landlord and Tenant, and it is expressly understood and agreed that Landlord does not in any way, nor for any purpose, become a partner of Tenant or a joint venturer with Tenant in the conduct of Tenant’s
business, or otherwise, and that the provisions of any agreement between Landlord and Tenant relating to Rent are made solely for the purpose of providing a method whereby rental payments are to be measured and ascertained. 
 20.12 Entire Agreement. 
 This Lease
and the other documents referenced herein contains the entire agreement of the Parties with respect to the matters covered hereby, and no other agreement, statement or promise made by any Party, or to any employee, officer, or agent of any Party,
with respect to the lease of the Premises which is not contained herein, shall be binding or valid. 
 20.13 Sale of Premises.

 In the event Landlord shall sell, convey, transfer or exchange its fee title to the Premises, Tenant agrees to recognize and attorn to
the purchaser or transferee as Landlord hereunder (provided that this Lease and all its terms and conditions are recognized by such purchaser or assignee by execution of a nondisturbance and attornment agreement reasonably satisfactory to Tenant,
and provided the transaction is a bona fide sale, not a transfer to avoid liability by Landlord to Tenant) and Landlord shall be and is hereby relieved and released from any liability, under any and all of its covenants and obligations hereunder
arising out of any act, occurrence or event arising after such sale, conveyance, transfer or exchange. 
 20.14 Legal Fees and Costs.

 In the event an action or suit is brought by a Party against the other Party to enforce the terms and provisions of this Lease, or the
Parties agree to arbitrate a dispute arising out of or related to this Lease, the Party in whose favor final award or judgment is entered shall be entitled to have and recover from the other Party or Parties all costs and expenses of suit or
arbitration, including reasonable attorneys’ fees (“Costs”), all of which shall be deemed to have accrued upon the commencement of such action. Any judgment or order entered in such action shall contain a specific
provision providing for the recovery of all Costs incurred in enforcing, perfecting and executing such judgment. For the purposes of this Section, Costs shall include, 

  

 31 

 
without limitation, attorneys’ fees, costs and expenses incurred in the following: (i) post-judgment motions; (ii) contempt proceedings;
(iii) garnishment, levy and debtor and third party examinations; (iv) discovery; and (v) bankruptcy litigation, subject to applicable Idaho law. The provisions contained in this Section 20.14 shall survive the expiration or
earlier termination of this Lease, and in the event any action or proceeding is instituted to recover possession of the Premises following the expiration or earlier termination of this Lease, the provisions contained in this Section 20.14 shall
be applicable. 
 20.15 Time. 
 Time is of the essence with respect to the performance of every provision of this Lease, as well as its Exhibits. 
 20.16
Counterparts. 
 At the option of either Party, this Lease may be executed in multiple counterparts, all of which shall be deemed
originals. 
 20.17 Waiver. 
 No covenant, term or condition of this Lease shall be deemed to have been waived by Landlord or Tenant unless such waiver be in writing and signed by Landlord or Tenant, as the case may be. 
 20.18 Accord and Satisfaction. 
 No
payment by Tenant or receipt by Landlord of a lesser amount than the full amount of Rent shall be deemed to be other than on account due under this Lease, nor shall any endorsement or statement on any check or any letter accompanying any check or
payment of Rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such Rent or pursue any other remedy, whether provided in this Lease or
otherwise. 
 20.19 Execution of Lease. 
 This Lease shall not be binding until execution and delivery thereof by Landlord and Tenant and the occurrence of the Effective Date. 
 20.20 Tenant’s Good Standing; Due Authorization. 
 As of the date of execution of this Lease,
Tenant hereby warrants and represents that: (i) Tenant is in good standing as of the date hereof; (ii) Tenant is qualified to do business in Idaho; (iii) the individuals signing on behalf of Tenant have been duly and validly
authorized to execute and deliver this Lease and any and all other documents contemplated by this Lease on behalf of such entity; and (iv) this Lease and all documents executed by Tenant are and will be duly authorized, executed, and delivered
by such entity, in compliance with all applicable laws. Landlord hereby warrants and represents that: (i) the individuals signing on behalf of Landlord have been duly and validly authorized to execute and deliver this Lease and any and all
other 

  

 32 

 
documents contemplated by this Lease on behalf of such entity; and (ii) this Lease and all documents executed by Landlord are and will be duly
authorized, executed, and delivered by such entity, in compliance with all applicable laws. 
 20.21 Diligent Construction.

 Tenant shall use reasonable efforts to perform or cause Tenant’s contractor to perform all work in the making and/or installation
of any repairs, alterations or Leasehold Improvements in a manner so as to avoid any labor disputes which causes or is likely to cause stoppage or impairment of work or delivery services or any other services in the Project. In the event there shall
be any such stoppage or impairment as the result of any such labor dispute or potential labor dispute, Tenant shall use reasonable efforts to immediately undertake such action as may be necessary to eliminate such dispute or potential dispute,
including, but not limited to: (i) removing all disputants from the job site until such time as the labor dispute no longer exists; (ii) seeking an injunction in the event of a breach of contract between Tenant and Tenant’s
contractor; and (iii) filing appropriate unfair labor practice charges in the event of a union jurisdictional dispute. 
 20.22
Limitation on Landlord’s Liability. 
 In consideration of the benefits accrued hereunder, Tenant covenants and agrees that, in the
event of any actual or alleged failure, breach or default hereunder by Landlord, Tenant’s sole and exclusive remedy shall be against Landlord’s interest in the Premises, and monetary judgments against Landlord shall be limited to the value
of the Premises, and the obligations of Landlord under this Lease do not constitute personal obligations of the individual partners, directors, trustees, officers, staff, council persons or shareholders of Landlord, and Tenant shall not seek
recourse against the individual partners, directors, trustees, officers, staff, council persons or shareholders of Landlord or any of their personal assets for satisfaction of any liability in respect to this Lease. 
 20.23 Joint and Several. 
 If there is
or shall be more than one party constituting Tenant, then each of such party’s obligations hereunder shall be joint and several, and any one of them shall act for all others in every regard with respect to this Lease (including, but not limited
to, any renewal, extension, expiration, termination or modification hereof). 
 20.24 Landlord’s Title. 
 Landlord’s title is and always shall be paramount to the title of Tenant. Nothing herein contained shall empower Tenant to do any act which can,
shall or may encumber the title of Landlord. 
  

 33 

 21. HAZARDOUS MATERIALS. 
 21.1 Use, Storage, Handling and Disposal of Hazardous Materials. 
 Tenant and/or Tenant Parties shall neither cause nor permit any Hazardous Materials (as such term is defined in Section 21.9) to be used, generated, stored, transported, handled or disposed of in or about the
Premises at any time following the Effective Date (such activities are hereinafter referred to as “Environmental Activities”), except in compliance with Hazardous Materials Laws, as defined in Section 21.2 below. This
prohibition shall extend to the Tenant Parties and Tenant shall be responsible for assuring compliance by such persons with the foregoing prohibition. 
 21.2 Compliance with Laws. 
 Tenant, at its sole cost and expense, shall comply, and shall cause the
Tenant Parties to comply, with all federal, state and local laws, ordinances and regulations and all rules, licenses, permits, orders, decrees and judgments relating to Environmental Activities (collectively referred to as “Hazardous
Materials Laws”) conducted by Tenant or any of the Tenant Parties on the Project. Tenant’s breach of any of its covenants or obligations under this Article 21 shall constitute a material default under this Lease. The obligations of
Tenant under this Article 21 shall: (i) survive the expiration or earlier termination of this Lease without any limitation, (ii) constitute obligations that are independent and severable from Tenant’s covenants and obligations to pay
Rent under this Lease, and (iii) inure to the benefit of, and be enforceable by, Landlord, its assignees and successors-in-interest to the Premises. 
 21.3 Exculpation of Landlord. 
 Landlord acquired fee title to the Premises on March 7, 2007.
Some owners, tenants or prior occupants of the Project and surrounding properties may have used or be using, handling or storing certain Hazardous Materials. The failure of any such persons to comply with applicable laws and procedures could result
in a release of Hazardous Materials and contamination to the Project, the soil and groundwater thereunder. In the event of such release, the person causing such release, and not Landlord (except to the extent of Landlord’s negligence, willful
acts or omissions), shall be solely responsible for any claim, damage or expense incurred by Tenant by reason of such contamination. 
 21.4 Disclosure and Notification. 
 Landlord may, from time to time, but not more often than annually, (each such date being
hereafter referred to as a “Disclosure Date”), reasonably request that Tenant disclose to Landlord the names and amounts of all Hazardous Materials other than general supplies referred to in Section 21.1, which were
used, generated, treated, handled, stored or disposed of on the Premises or which Tenant intends to use, generate, treat, handle, store or dispose of in, on or about the Premises, for the year prior to and after such Disclosure Date. 
 Tenant shall immediately advise Landlord in writing of, and provide Landlord with a copy of: (i) any notices of violation or potential or alleged
violation of any Hazardous Materials Laws which are received by Tenant from any governmental agency concerned with 

  

 34 

 
Tenant’s or Tenant’s Agent’s Environmental Activities; (ii) any and all inquiry, investigation, enforcement, clean-up, removal or other
governmental or regulatory actions instituted or threatened relating to Tenant or the Premises; (iii) all claims made or threatened by any third party against Tenant or the Premises relating to any Hazardous Materials; and (iv) any release
of Hazardous Materials in, on or about the Premises or the Project of which Tenant is aware or reasonably believes may have occurred. 
 21.5 Inspection of Premises. 
 In the event that Landlord reasonably believes that Tenant is in violation of any of
Tenant’s duties or obligations under this Article 21, Landlord may require that Tenant retain a registered environmental consultant (the “Consultant”) reasonably acceptable to Landlord to conduct an investigation of the
Premises (“Environmental Assessment”): (i) for Hazardous Materials contamination in, about or beneath the Premises; and (ii) to assess all Environmental Activities on the Premises for compliance with all applicable
laws, ordinances and regulations and for the use of procedures intended to reasonably reduce the risk of a release of Hazardous Materials. The Environmental Assessment shall be performed in a manner reasonably calculated to discover the presence of
Hazardous Materials contamination and shall be of a scope and intensity reflective of the general standards of professional environmental consultants who regularly provide environmental assessment services in connection with the transfer or
releasing of real property. Additionally, the Environmental Assessment shall take into full consideration the past and present uses of the Premises by Tenant or any of the Tenant Parties and other factors unique to the Premises. The cost of the
Environmental Assessment shall be paid by Landlord unless Landlord reasonably determines that Hazardous Materials contamination is found to exist as a result of the acts of Tenant or any Tenant Party, in which event the entire cost thereof shall be
paid by Tenant as Additional Rent. Tenant shall comply, at its sole cost and expense, with all reasonable recommendations contained in the Environmental Assessment, including any recommendation with respect to the precautions which should be taken
with respect to Environmental Activities on the Premises by Tenant or any of the Tenant Parties or any recommendations for additional testing and studies to detect the presence of Hazardous Materials. Tenant covenants to reasonably cooperate with
the Consultant and to allow entry and reasonable access to all portions of the Premises for the purpose of Consultant’s investigation. 
 21.6 Indemnification. 
 (a) Tenant shall indemnify, defend (with counsel satisfactory to Landlord) and hold Landlord,
its directors, officers, employees, agents, assigns and any successors to Landlord’s interest in the Premises, harmless from and against any and all loss, cost, damage, expense (including reasonable attorneys’ fees), claim, cause of
action, judgment, penalty, fine or liability directly or indirectly relating to or arising from (i) any Environmental Activity on the Premises by Tenant, Tenant’s subtenants, or any of the Tenant Parties during the Term of this Lease,
(ii) any remedial or clean-up work undertaken by or for Tenant, Tenant’s subtenants, any of the Tenant Parties or the directors, officers, employees, assigns, successors or agents of Tenant, Tenant Parties or Tenant’s subtenants in
connection with any Environmental Activities or its compliance with Hazardous Materials Laws or (iii) the breach by Tenant, Tenant’s subtenants, any of the Tenant Parties or the directors, officers, employees, assigns, successors or agents
of Tenant, Tenant Parties or Tenant’s subtenants of any of the obligations and covenants 

  

 35 

 
set forth in this Article 21. Notwithstanding the foregoing, Tenant shall not be required to indemnify Landlord with respect to any Hazardous Materials which
were not used, generated, stored, transported, handled or disposed of in or about the Premises by Tenant, Tenant’s subtenants, any of the Tenant Parties or the directors, officers, employees, assigns, successors or agents of Tenant, Tenant
Parties or Tenant’s subtenants, such as Hazardous Materials which may migrate onto or under the Premises from another source. Landlord shall have the right but not the obligation to join and participate in any legal proceedings or actions
initiated in connection with Tenant’s Environmental Activities. Landlord may also negotiate, defend, approve and appeal any action taken or issued by any applicable governmental authority with regard to contamination of the Premises by
Hazardous Materials. Any costs or expenses incurred by Landlord for which Tenant is responsible under this Article 21 or for which Tenant has indemnified Landlord shall be reimbursed by Tenant on demand as Additional Rent. 
 (b) To the extent that any Hazardous Materials contamination directly affects the Premises, Landlord shall indemnify, defend (with counsel
reasonably satisfactory to Tenant) and hold Tenant, its directors, officers, employees and agents harmless from and against any and all loss, cost, damage, expense (including reasonable attorneys’ fees), claim, cause of action, judgment,
penalty, fine or liability directly relating to or arising from (i) any Environmental Activity on the Premises by Landlord or any Landlord Parties during the Term of this Lease, (ii) any remedial or clean-up work undertaken by or for
Landlord in connection with its Environmental Activities or its compliance with Hazardous Materials Laws on the Premises; provided that Landlord is not performing such remedial or clean up work as a result of (a) any action, negligence, willful
act or omission of Tenant, Tenant’s subtenants, any of the Tenant Parties or the directors, officers, employees, assigns, successors or agents of Tenant, Tenant Parties or Tenant’s subtenants, (b) any breach by Tenant, Tenant’s
subtenants, any of the Tenant Parties or the directors, officers, employees, assigns, successors or agents of Tenant, Tenant Parties or Tenant’s subtenants, and (iii) the breach by Landlord of any of its obligations and covenants set forth
in this Article 21. 
 21.7 Remediation. 
 If any Environmental Activities undertaken by Tenant or any of the Tenant Parties result in contamination of the Premises or any other portion of the Project or the soil or groundwater thereunder, subject to
Landlord’s prior written approval and any commercially reasonable conditions imposed by Landlord, Tenant shall promptly take all actions required by any governmental authority requiring specific actions, otherwise all commercially reasonable
actions, at its sole expense and without abatement of Rent, as are necessary to remediate the affected portion of the Premises and to return the affected portion of the Project, the Premises and the soil and ground water to the condition existing
prior to the introduction of the contaminating Hazardous Material as required by then-applicable Hazardous Materials Laws. Landlord’s approval of such remedial work shall not be unreasonably withheld so long as such actions will not cause a
material adverse effect on the Premises after expiration of the Term or any material adverse effect on the Project. Landlord shall also have the right to approve any and all contractors hired by Tenant to perform such remedial work. All such
remedial work shall be performed in compliance with all applicable laws, ordinances and regulations and in such a manner as to minimize any interference with the use and enjoyment of the Project. Appearance of a Hazardous Material in or about the
Premises shall not be deemed an occurrence of damage or destruction subject to the terms of this Lease respecting damage or destruction caused by act of God, force of nature, fire, flood, earthquake or other casualty. 
  

 36 

 21.8 Surrender of Premises. 
 Prior to or after the expiration or earlier termination of the Term, Landlord may have an Environmental Assessment of the Premises performed in accordance
with Section 21.5. Tenant shall perform, at its sole cost and expense, any clean-up or remedial work recommended by the Consultant which is necessary to remove, mitigate or remediate any Hazardous Materials contamination of the Premises caused
by Tenant’s or any of the Tenant Parties’ Environmental Activities, to the satisfaction of the governmental agencies with jurisdiction over such matters. Prior to surrendering possession of the Premises, Tenant shall also remove any
personal property, equipment, fixture and/or storage device or vessel on or about the Premises which is contaminated by or which contains Hazardous Materials as a result of Tenant’s or any of the Tenant Parties Environmental Activities.

 21.9 Definition of Hazardous Materials. 
 “Hazardous Materials” shall mean asbestos, any petroleum fuel and any hazardous or toxic substances, material or waste which now is or may become regulated by any local governmental authority,
the State of Idaho or the United States Government, including, but not limited to, any material or substance defined as a “hazardous waste,” “extremely hazardous waste,” “restricted hazardous waste,” “hazardous
substance,” “hazardous material” or “toxic pollutant” under the Idaho Code Title 39, Health and Safety and/or under the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §9601, et
seq. The term “Hazardous Materials” will not include cleaning products, landscape fertilizers and other products in ordinary quantities that are customarily used in the ordinary course of business of operating and maintaining
commercial properties (but which will nevertheless be used in compliance with all applicable Hazardous Materials Laws). 
 21.10 Hazardous
Materials Use by Transferee. 
 If a proposed Transferee’s activities in or about the Project involve the use, handling, storage or
disposal of any Hazardous Materials other than those used by Tenant and in quantities and processes similar to Tenant’s uses in compliance with this Lease: (i) it shall be reasonable for Landlord to withhold its consent to such assignment
or sublease in light of the risk of contamination posed by such activities unless Tenant satisfies the condition described in the following clause; and/or (ii) Landlord may impose an additional condition to such assignment or sublease which
requires Tenant to establish beyond a reasonable doubt that such Transferee’s activities pose no significantly greater risk of contamination to the Premises than do Tenant’s permitted activities in view of the: (a) quantities,
toxicity and other properties of the Hazardous Materials to be used by such Transferee, (b) the precautions against a release of Hazardous Materials such Transferee agrees to implement, (c) such Transferee’s financial condition as it
relates to its ability to fund a major clean-up and (d) such Transferee’s policy and historical record respecting its willingness to respond to and remediate a release of Hazardous Materials to the satisfaction of the governmental
regulatory agencies with jurisdiction over same. 
  

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 [REMAINDER OF PAGE INTENTIONALLY
BLANK] 
  

 38 

 IN WITNESS WHEREOF, the Parties hereto
have executed this Lease as of the day and year first above written. 
  

			
	LANDLORD
	
	 The City of Pocatello,
 a municipal
corporation of Idaho

		
	By:	 	 /s/ Roger W. Chase

		 	Roger W. Chase
	Its:	 	Mayor

  

			
	 ATTEST:

		
	By:	 	 /s/ Anne Nichols

		 	Anne Nichols, Deputy City Clerk

  

			
	TENANT
	
	 Hoku Materials, Inc.,
 a Delaware
corporation

		
	By:	 	 /s/ Darryl Nakamoto

	Its:	 	CFO

  

 39 

 EXHIBIT “A” 
 LEGAL DESCRIPTION: 
 PARCEL 1: 
 A PARCEL OF LAND LOCATED IN THE EAST  1/2 OF SECTION 17, AND IN THE WEST  1/2 OF
THE WEST  1/2 OF SECTION 16, T 6 S, R 34 E, B.M., BANNOCK COUNTY, IDAHO, SAID PARCEL BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS (ALL ANGLE POINTS BEING MARKED BY A  1/2-INCH DIAMETER REBAR WITH A YELLOW PLASTIC CAP
STAMPED “PE/LS 4440”, UNLESS OTHERWISE NOTED): 
 COMMENCING AT
THE WEST  1/4 CORNER OF SAID SECTION 16, SAID CORNER BEING MARKED BY A FOUND 5/8-INCH DIAMETER REBAR WITH NO
MARKINGS, SAID REBAR BEING REFERENCED BY A BANNOCK COUNTY BRASS CAP MONUMENT 25 FEET EAST OF THE CORNER; 
 THENCE S 0°11’07" W ALONG THE
WEST LINE OF SECTION 16, 280.55 FEET TO A POINT ON THE SOUTHWESTERLY RIGHT-OF-WAY LINE OF THE OREGON SHORT LINE RAILROAD (NOW OPERATING AS THE UNION PACIFIC RAILROAD), SAID POINT BEING 50 FEET DISTANT, MEASURED AT RIGHT ANGLES, FROM THE CENTERLINE
OF THE NO. 1 MAINLINE TRACK (FORMERLY THE WEST BOUND MAINLINE), AND SAID POINT BEING MARKED BY A SET 5/8-INCH REBAR WITH AN ALUMINUM CAP STAMPED “PLS 8075”, SAID POINT BEING THE TRUE POINT OF BEGINNING; 
 THENCE N 56°36’03" W ALONG THE SOUTHWESTERLY RIGHT-OF-WAY LINE OF THE OREGON SHORT LINE RAILROAD, 2557.86 FEET TO AN ANGLE POINT ON THE NORTHEASTERLY DEED LINE
DESCRIBED IN CORPORATION WARRANTY DEED INSTRUMENT NO. 96009187; 
 THENCE SOUTHEASTERLY ALONG THE SAID NORTHEASTERLY DEED LINE THE FOLLOWING 10 COURSES AND
DISTANCES: 
 S 21°52’28" E, 267.87 FEET TO AN ANGLE POINT; THENCE S 30°43’41" E,
1457.94 FEET TO AN ANGLE POINT; THENCE S 40°27’08" E, 201.74 FEET TO AN ANGLE POINT; THENCE S 54°06’17" E, 336.24 FEET TO AN ANGLE POINT; THENCE S43°50’53" E, 313.03 FEET TO AN ANGLE POINT; THENCE S 55°07’18" E, 664.68 FEET TO AN ANGLE POINT; THENCE S 42°27’08" E, 177.06 FEET TO AN ANGLE POINT; THENCE S
59°48’13" E, 280.11 FEET TO AN ANGLE POINT; THENCE S 71°50’27" E, 699.97 FEET TO AN ANGLE POINT; THENCE S 72°36’36" E, 428.65 FEET TO AN ANGLE POINT ON THE WEST 1/16 LINE OF SECTION 16; THENCE N 0°03’36" E ALONG
THE WEST 1/16 LINE OF SECTION 16, 653.00 FEET TO THE SOUTHWEST 1/16 CORNER OF SAID SECTION 16, SAID CORNER BEING MARKED BY A 6-INCH DIAMETER STEEL FENCE CORNER POST; 
 THENCE S 89°05’05" W ALONG THE SOUTH 1/16 LINE OF SECTION 16, 43.11 FEET TO A POINT ON THE SOUTHWESTERLY DEED LINE DESCRIBED IN INSTRUMENT NO. 27678, SAID POINT BEING MARKED BY A SET 5/8-INCH DIAMETER REBAR
WITH AN ALUMINUM CAP STAMPED “PLS 8075”; 
 THENCE N 56°36’03" W ALONG SAID SOUTHWESTERLY DEED LINE, 1519.62 FEET TO A POINT ON THE WEST
DEED DESCRIBED IN SAID INSTRUMENT NO. 27678, SAID POINT ALSO BEING ON THE WEST LINE OF SECTION 16, AND SAID POINT BEING MARKED BY A SET 5/8-INCH DIAMETER REBAR WITH AN ALUMINUM CAP STAMPED “PLS 8075”; THENCE N 0°11’17" E ALONG THE
WEST LINE OF SAID SECTION 16, 179.29 FEET TO THE TRUE POINT OF BEGINNING. 
  

 Exhibit “A” 
 Page 1 

 EXHIBIT “B” 
 MAP 
 

 

 Exhibit “B” 
 Page 1 

 EXHIBIT “C” 
 APPROVED EXCEPTIONS 
  

	1.	Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records.

  

	2.	Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in
possession thereof. 

  

	3.	Easements, claims of easement or encumbrances which are not shown by the public records. 

  

	4.	Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records.

  

	5.	(A) Unpatented mining claims; (B) Reservations or exceptions in patents or in Acts authorizing the issuance thereof; (C) Water rights, claims or title to water; whether or
not the matters excepted under (A), (B) or (C) are shown by the public records. 

  

	6.	Any lien, or rights to a lien, for services, labor or materials theretofore or hereafter furnished, imposed by law and not shown by the public records. 

  

	7.	2007 taxes are an accruing lien not yet due or payable. 

  

	8.	Any claim arising from the difference in the mean high water line of the Portneuf River and the meander line as shown by the Original Government Survey. 

  

	9.	Lack of a right of access to and from said land. 

  

	10.	Easement for Communication Facilities granted to Mountain States Telephone and Telegraph Company, recorded April 5, 1916 in Book 31 , Page 40. (Affects Section 17).

  

	11.	Easement for Power Lines granted to Idaho Power Company, recorded November 1, 1929 in Book 62 , Page 408. (Affects Section 17). 

  

	12.	Easement for Pole Lines granted to Mountain States Telephone and Telegraph Company, recorded May 25, 1940 in Book 80 , Page 386. (Affects Sections 16 and 17).

  

	13.	Easement for Ingress and Egress granted to American Telephone and Telegraph Company of Wyoming, recorded October 28, 1941 in Book 84 , Page 521. (Affects Sections 16 and 17).

  

	14.	Easement for Power Lines granted to Idaho Power Company, recorded March 2, 1950 in Book 108 , Page 126. (Affects Section 16). 

	15.	Easement for Power Lines granted to Idaho Power Company, recorded March 2, 1950 in Book 108 , Page 153. (Affects Section 16). 

  

	16.	Easement for Sewer Lines and Water Lines granted to City of Pocatello, recorded October 15, 1958 as Instrument No. 337333. (Affects Sections 16 and 17).

  

	17.	Easement for Passage and deposit of dust vapors, smoke, fumes, gases, chemicals, minerals, compounds, particulates fluoride in gaseous or particulate form or other elements or
substances discharged granted to Food Machinery and Chemical Corporation, recorded February 10, 1959 as Instrument No. 341195. (Affects Sections 16 and 17). 

  

	18.	Easement for Passage and deposit of dust vapors, smoke, fumes, gases, chemicals, minerals, compounds, particulates fluoride in gaseous or particulate form or other elements or
substances discharged granted to J. R. Simplot Company, recorded February 12, 1959 as Instrument No. 341301. (Affects Sections 16 and 17). 

  

	19.	Easement for Passage and deposit of dust vapors, smoke, fumes, gases, chemicals, minerals, compounds, particulates fluoride in gaseous or particulate form or other elements or
substances discharged granted to FMC Corporation, recorded January 4, 1974 as Instrument No. 517667. 

  

	20.	Easement for Passage and deposit of dust vapors, smoke, fumes, gases, chemicals, minerals, compounds, particulates fluoride in gaseous or particulate form or other elements or
substances discharged granted to J. R. Simplot Company, recorded January 21, 1974 as Instrument No. 518204. 

  

	21.	Easement for water lines for transmission of domestic or industrial water granted to City of Pocatello, recorded June 12, 1980 as Instrument No. 648938.

  

	22.	All matters, and any rights, easements, interests or claims which may exist by reason thereof, disclosed by an ALTA/ACSM survey made by A&E Engineering, Inc. on March 6,
2007, designated Job No. 2007-008. 

 EXHIBIT “D” 
 RETURN RECORDED DOCUMENT TO: 
 Hoku Scientific, Inc. 
 Attn: Ken Shimada 
 1075 Opakapaka Street 
 Kapolei, HI 96707-1887 
 MEMORANDUM OF GROUND LEASE 
 THIS MEMORANDUM OF GROUND
LEASE (“Memorandum”) is deemed made the 22nd day of March,
2007, between THE CITY OF POCATELLO, a municipal corporation of Idaho (“Landlord”), and HOKU MATERIALS,
INC., a Delaware corporation (“Tenant”), with reference to the following facts: 
 A. Landlord is the owner of that certain real property located near S. Philbin Road, in the County of Bannock, State of Idaho, depicted on the Map attached hereto as Schedule “1” and legally described in attached
Schedule “2” together with all easements which are now or in the future may be appurtenant thereto (“Premises”). 
 B. Landlord desires to lease the Premises to Tenant, and Tenant desires to lease the Premises from Landlord, all subject to the terms and provisions of this Memorandum. 
 NOW, THEREFORE, the parties hereto hereby agree as follows: 
  

	 	1.	Lease of the Premises. Landlord hereby leases the Premises to Tenant, and Tenant hereby leases the Premises from Landlord for a term of approximately ninety-nine
(99) years commencing on the Effective Date, and terminating on December 31, 2106, all subject to and on terms and conditions more fully set forth in that certain Ground Lease executed by and between Landlord and Tenant and dated as of the
Effective Date (the “Ground Lease”). The Ground Lease is incorporated herein by this reference. In the event of any inconsistency between the terms and conditions of this Memorandum and the terms and conditions of the Ground
Lease, the terms and conditions of the Ground Lease shall govern and control. 

 IN WITNESS WHEREOF, the parties have executed this
Memorandum, as of the day and year first above written. 
  

			
	LANDLORD
	
	 THE CITY OF POCATELLO,
 a municipal corporation of Idaho

		
	By:	 	  
		 	Roger W. Chase
		
	Its:	 	Mayor

  

	
	ATTEST:
	
	   
	Anne Nichols, Deputy City Clerk

  

			
	TENANT
	
	 Hoku Materials, Inc.,
 a Delaware
corporation

		
	By:	 	  
	Its:	 	  

  

			
	STATE OF IDAHO	  	)
		  	ss:
	County of Bannock	  	)

 On this ______ day of March, 2007, before me, the undersigned, a Notary Public for the State,
personally appeared Roger W. Chase and Anne Nichols, known to me to be the Mayor and Deputy City Clerk of the City of Pocatello, respectively, and acknowledged to me that they executed the foregoing instrument for and on behalf of said municipal
corporation and that said municipal corporation executed the same. 

 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the date and year in this
certificate first above written. 
  

	
	
	   
	 NOTARY PUBLIC FOR IDAHO
 Residing in Pocatello,
Idaho
 My commission expires: ______________

  

			
	STATE OF __________	  	)
		  	ss:
	County of ___________	  	)

 On this ______ day of March, 2007, before me, the undersigned, a Notary Public for the State,
personally appeared _______________________, known to me or proved to me to be the __________________________ of Hoku Materials, Inc., and, being duly sworn, acknowledged to me that he executed the foregoing instrument by authority of said
corporation and that such corporation executed the same. 
  

	
	
	   
	 NOTARY PUBLIC FOR _____________
 Residing in
_________________________
 My commission expires: ______________

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