Document:

TLLP EX.10.31 12.31.2012

Exhibit 10.31
AMENDED AND RESTATED MASTER TERMINALLING SERVICES AGREEMENT
This Amended and Restated Master Terminalling Services Agreement (the “Agreement”) is dated as of February 22, 2013, by and among Tesoro Refining & Marketing Company LLC, a Delaware limited liability company (“TRMC”), Tesoro Alaska Company, a Delaware corporation (“TAK” and, together with TRMC, “Tesoro”) and Tesoro Logistics Operations LLC, a Delaware limited liability company (“TLO”).
RECITALS
WHEREAS, by virtue of their indirect ownership interests in Tesoro Logistics LP (the “Partnership”), TLO's parent entity, each of TAK and TRMC have an economic interest in the financial and commercial success of the Partnership and its operating subsidiary, TLO; and
WHEREAS, the Parties (as defined below and in the case of TRMC, its predecessor corporate entity) entered into a Master Terminalling Services Agreement as of April 26, 2011, and desire to amend and restate that agreement in its entirety as set forth herein to memorialize the terms of their ongoing commercial relationship.
NOW, THEREFORE, in consideration of the covenants and obligations contained herein, the parties to this Agreement hereby agree as follows:
		
	1.
	DEFINITIONS

Capitalized terms used throughout this Agreement shall have the meanings set forth below, unless otherwise specifically defined herein.
“Additive Facilities” has the meaning set forth in Section 17(a).
“Additized Gasoline” has the meaning set forth in Section 18(a).
“Adjusted Minimum Volume Commitment” means Tesoro's Minimum Throughput Commitment, adjusted by deducting the applicable Stipulated Volume for each Terminal that is no longer subject to this Agreement at any time.
“Agreement” has the meaning set forth in the Preamble.
“Ancillary Services” means the following services to be provided by TLO to Tesoro: ethanol receipt (rail and truck), ethanol storage, ethanol blending, generic gasoline additization, jet additization, jet certification, lubricity/conductivity additization, Product receipt  (barge), proprietary additive additization, red dye additization, transmix loading (truck) and winter flow improver additization.
"Applicable Law” means any applicable statute, law, regulation, ordinance, rule, determination, judgment, rule of law, order, decree, permit, approval, concession, grant, franchise, license, requirement, or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued by any Governmental Authority 

having or asserting jurisdiction over the matter or matters in question, whether now or hereafter in effect.
“Base Gasoline” has the meaning set forth in Section 18(a).
“Blending Instructions” has the meaning set forth in Section 21(c).
“bpd” means barrels per day.
“Business Day” means a day, other than a Saturday or Sunday, on which banks in New York, New York are open for the general transaction of business.
“Capacity Resolution” has the meaning set forth in Section 32(c).
“Carrier” means a third-party agent or contractor hired by Tesoro, who is in the business of transporting Products via tank trucks.
“Commencement Date” has the meaning set forth in Section 2.
“Confidential Information” means all confidential, proprietary or non-public information of a Party, whether set forth in writing, orally or in any other manner, including all non-public information and material of such Party (and of companies with which such Party has entered into confidentiality agreements) that another Party obtains knowledge of or access to, including non-public information regarding products, processes, business strategies and plans, customer lists, research and development programs, computer programs, hardware configuration information, technical drawings, algorithms, know-how, formulas, processes, ideas, inventions (whether patentable or not), trade secrets, schematics and other technical, business, marketing and product development plans, revenues, expenses, earnings projections, forecasts, strategies, and other non-public business, technological, and financial information.
“Credit” has the meaning set forth in Section 7(b).
“Curtailment Fee” has the meaning set forth in Section 30(b).
“DCA” has the meaning set forth in Section 18(a).
“EPA” has the meaning set forth in Section 14(a).
“Ethanol Services” has the meaning set forth in Section 21(a).
“Excess Amounts” means, for any Month, the aggregate volumes throughput by Tesoro in excess of the Minimum Throughput Commitment, multiplied by the weighted average Terminalling Service Fee paid by Tesoro during such Month.
“Extension Period” has the meaning set forth in Section 3.
“First Offer Period” has the meaning set forth in Section 34(b).

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“Force Majeure” means circumstances not reasonably within the control of TLO and which, by the exercise of due diligence, TLO is unable to prevent or overcome that prevent performance of TLO's obligations, including: acts of God, strikes, lockouts or other industrial disturbances, wars, riots, fires, floods, storms, orders of courts or Governmental Authorities, explosions, terrorist acts, breakage, accident to machinery, storage tanks or lines of pipe and inability to obtain or unavoidable delays in obtaining material or equipment and similar events.
“Force Majeure Notice” has the meaning set forth in Section 31(a).
“Force Majeure Period” has the meaning set forth in Section 31(a).
“Governmental Authority” means any federal, state, local or foreign government or any provincial, departmental or other political subdivision thereof, or any entity, body or authority exercising executive, legislative, judicial, regulatory, administrative or other governmental functions or any court, department, commission, board, bureau, agency, instrumentality or administrative body of any of the foregoing.
“Initial Term” has the meaning set forth in Section 3.  
“LAC” has the meaning set forth in Section 18(a).
“Minimum Throughput Commitment” means an aggregate amount of Products equal to 100,000 bpd (on a monthly average basis); provided however, that the Minimum Throughput Commitment during the Month in which the Commencement Date occurs shall be prorated in accordance with the ratio of the number of days including and following the Commencement Date in such Month to the total number of days in such Month.
“Month” means a calendar month.
“Notice Period” has the meaning set forth in Section 30(a).
“Offer Period” has the meaning set forth in Section 32(g).
“OPIS” has the meaning set forth in Section 8(a).
“Partnership” has the meaning set forth in the Recitals to this Agreement.
“Partnership Change of Control” means Tesoro Corporation ceases to possess, directly or indirectly, the power to direct or cause the direction of the management and policies of the general partner of the Partnership, whether through ownership of voting securities, by contract, or otherwise.
“Party” or “Parties” means that each of TAK, TRMC and TLO is a “Party” and collectively are the “Parties” to this Agreement.
“Person” means any individual, partnership, limited partnership, joint venture, corporation, limited liability company, limited liability partnership, trust, unincorporated organization or Governmental Authority or any department or agency thereof.

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“Product” or “Products” means the petroleum products, ethanol or biofuels described herein as being handled under this Agreement.
“Purchase Order” has the meaning set forth in Section 5(a).
“Receiving Party Personnel” has the meaning set forth in Section 37(d).
“Red Dye” has the meaning set forth in Section 19(a).
“Refineries” means the Tesoro refineries located in Anacortes, Washington; Kenai, Alaska; Mandan, North Dakota; Salt Lake City, Utah; and Martinez and Los Angeles, California.
“Restoration” has the meaning set forth in Section 32(b).
“Right of First Refusal” has the meaning set forth in Section 32(g).
“Shortfall Payment” has the meaning set forth in Section 7(b).
“Stipulated Volume” means the stipulated volume in bpd as set forth for each Terminal on Schedule A attached hereto.
“Storage Contract” has the meaning set forth in Section 32(g).
“Subject Tank” has the meaning set forth in Section 32(g).
“Suspension Notice” has the meaning set forth in Section 30(a).
“TAK” has the meaning set forth in the Preamble.
“Term” has the meaning set forth in Section 3.
“Terminalling Right of First Refusal” has the meaning set forth in Section 34(b).
“Terminalling Service Fee” means, for any Month during the Term, the total fee per barrel of throughput paid by Tesoro during that Month for terminalling, dedicated storage and Ancillary Services provided by TLO.
“Terminals” means the Terminals set forth on Schedule A attached hereto.
“Termination Notice” has the meaning set forth in Section 31(a).
“Tesoro” has the meaning set forth in the Preamble.
“Tesoro Termination Notice” has the meaning set forth in Section 31(b).
“TLO” has the meaning set forth in the Preamble.
“Transmix” has the meaning set forth in Section 13.

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“TRMC” has the meaning set forth in the Preamble.
2.COMMENCEMENT DATE
The Parties agree that the “Commencement Date” was April 26, 2011.
3.TERM
The initial term of this Agreement shall commence on the Commencement Date and shall continue through April 30, 2021 (the “Initial Term”); provided, however, that Tesoro may, at its option, extend the Initial Term for up to two (2) renewal terms of five (5) years each (each, an “Extension Period”) by providing written notice of its intent to TLO no less than ninety (90) days prior to the end of the Initial Term or the then-current Extension Period.  The Initial Term, and any extensions of this Agreement as provided above, shall be referred to herein as the “Term.”
4.MINIMUM THROUGHPUT COMMITMENT
(a)During the Term and subject to the terms and conditions of this Agreement, Tesoro shall throughput the Minimum Throughput Commitment at the Terminals, and TLO shall make available to Tesoro commingled storage and throughput capacity at each respective Terminal, sufficient to allow Tesoro to throughput the Stipulated Volume of Products at such Terminal.
(b)Allocation of storage and throughput capacity for separate Products at each Terminal shall be in accordance with current practices, or as otherwise may be set forth in a Purchase Order, as described below.
(c)Tesoro may throughput volumes in excess of its Minimum Throughput Commitment, up to the then-available capacity of each Terminal, net of any third-party commitments, as determined by TLO at any time, which allocation of any excess capacity shall be in accordance with current practices, or as otherwise may be set forth in a Purchase Order, as described below.
(d)In the event at any time this Agreement is terminated as to one or more Terminals, as provided herein, then the Minimum Throughput Commitment shall thereafter be adjusted to be the Adjusted Minimum Volume Commitment.
5.PURCHASE ORDERS
(a)In addition to the throughput subject to the Minimum Volume Commitment set forth in this Agreement, TLO and Tesoro may enter into purchase orders substantially in the form attached hereto as Exhibit 1 (each, a “Purchase Order”).  Upon a request by Tesoro pursuant to this Agreement or as deemed necessary or appropriate by TLO in connection with the services to be delivered pursuant hereto, TLO shall generate a Purchase Order to set forth the specific terms and conditions for providing the applicable services described therein and the applicable fees to be charged for such services.  No Purchase Order shall be effective until fully executed by both TLO and Tesoro.

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(b)Items available for inclusion on a Purchase Order include, but are not limited to, the following:
(i)allocation of storage and throughput capacity for separate Products at each Terminal, other than pursuant to current practices;
(ii)per-barrel fees for the volumes Tesoro throughputs at the Terminals;
(iii)if dedicated storage tanks are to be utilized and the fees payable by Tesoro therefor;
(iv)any allocation of excess capacity, other than pursuant to current practices;
(v)fees to be paid by Tesoro for the use of any allocation of excess capacity;
(vi)any Ancillary Services for each Terminal and the fees for such Ancillary Services;
(vii)any surcharge not otherwise imposed by TLO pursuant to Section 6;
(viii)any capital expenditures and related costs subject to reimbursement pursuant to Section 9;
(ix)any cleaning of tanks or the conversion of a dedicated tank to storage of a different Product pursuant to Section 9 and the fees related thereto;
(x)any special or proprietary additive injection services or higher additive injection rates and the fees for such services pursuant to Sections 16 and 18;
(xi)any fees to be paid by Tesoro to TLO for lubricity and conductivity additive and injection services (including DCA injection) provided pursuant to Section 17 and 18 for Low Sulfur Diesel/Ultra Low Sulfur Diesel Fuel delivered to trucks for Tesoro's account; 
(xii)any fees for the operation of special additive equipment described in Section 20; 
(xiii)the receipt, storage and blending of ethanol into Tesoro's gasoline pursuant to Section 21; 
(xiv)the reimbursement of any costs incurred by TLO for periodic software updates, replacement of loading systems or software or other upgrades pursuant to Section 22; and
(xv)any dedicated storage to be provided and applicable fees therefor.

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(c)  Any fees set forth in this Agreement and any Purchase Order shall be increased on July 1 of each year of the Term, by a percentage equal to the greater of zero or the positive change in the CPI-U (All Urban Consumers), as reported by the U.S. Bureau of Labor Statistics.
(d)  In case of any conflict between the terms of this Agreement and the terms of any Purchase Order, the terms of the applicable Purchase Order shall govern.
6.SURCHARGES
If, during the Term, new laws or regulations are enacted that require TLO to make substantial and unanticipated capital expenditures with respect to the Terminals, TLO may impose a monthly surcharge to cover Tesoro's pro rata share of the cost of complying with these laws or regulations, based upon the percentage of Tesoro's use of the services or facilities impacted by such new laws or regulations.  TLO and Tesoro shall use their reasonable commercial efforts to comply with these laws and regulations, and shall negotiate in good faith to mitigate the impact of these laws and regulations and to determine the level of the monthly surcharge.
7.PAYMENT; SHORTFALL PAYMENTS
(a)TLO shall invoice Tesoro on a monthly basis and Tesoro shall pay all amounts due under this Agreement and any Purchase Order (including Shortfall Payments and Curtailment Fees, each as defined herein) no later than ten (10) calendar days after Tesoro's receipt of TLO's invoices.  Any past due payments owed by Tesoro to TLO shall accrue interest, payable on demand, at the rate of eight percent (8%) per annum from the due date of the payment through the actual date of payment.
(b)If, during any Month during the Term, Tesoro throughputs aggregate volumes less than the Minimum Throughput Commitment for such Month, then Tesoro shall pay TLO an amount (a “Shortfall Payment”) for any shortfall.  Shortfall Payments shall be equal to the weighted average Terminalling Service Fee paid by Tesoro during that Month across all of the Terminals, multiplied by the aggregate monthly shortfall across all Terminals.  The dollar amount of any Shortfall Payment paid by Tesoro shall be posted as a credit (a “Credit”) to Tesoro's account and may be applied against any Excess Amounts owed by Tesoro during any of the succeeding three (3) Months. For informational purposes only, attached as Exhibit 2 hereto is a sample calculation demonstrating the Shortfall Payment and its application. Credits will be applied in the order in which such Credits accrue and any remaining portion of the Credit that is not used by Tesoro during the succeeding three (3) Months shall expire (e.g., a Credit that accrues in January will be available in February, March and April, will expire at the end of April, and must be applied prior to applying any Credit which accrues in February).
(c)If at any time during the Term, any tank, rack or other equipment or facility of TLO that is dedicated to Tesoro or otherwise being used to provide services hereunder, is removed from service for reasons other than routine repair and maintenance, and if removal of such tank, rack or other equipment or facility from service restricts Tesoro from being able to throughput its Stipulated Volume and receive associated Ancillary Services at the Terminal where such tank, rack or other equipment or facility is located, then until such tank, rack or other 

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equipment or facility is restored to service, Tesoro's Minimum Throughput Commitment shall be reduced by the difference between the Stipulated Volume and the amount that Tesoro can effectively throughput at such location without restriction until such tank, rack or other equipment or facility is restored to service.
8.VOLUME LOSSES
(a)With respect only to the Anchorage, Boise, Burley, Stockton and Vancouver Terminals and on a per Terminal basis, not based on the aggregate of all Terminals, TLO shall bear the risk of any actual volume losses of each Product to the extent that such losses exceed 0.25% of the volumes of such Product received at the Terminal, to be pro rated among users of such Terminal, during any Month during the Term.  Volumes and losses of each Product shall be determined and accounted for as of the end of each Month.  To the extent that actual losses of any Product are less than 0.25% during any particular Month, Tesoro shall repurchase from TLO the difference between the actual loss and the 0.25% allowance at a price per barrel for that Product as reported by the Oil Price Information Service (“OPIS”) using the monthly average OPIS unbranded contract rack posting for that Product during the Month in which the volume difference was accounted for.  All such sales shall be “AS IS”, “WHERE IS”, without any warranty, express or implied, including warranties of merchantability, fitness or title, all of which are expressly excluded. If volume losses of any Product exceed 0.25% during any particular Month, TLO shall pay Tesoro for the difference between the actual loss and the 0.25% allowance at a price per barrel for that Product as reported by OPIS using the monthly average OPIS unbranded contract rack posting for that Product during the Month in which the volume difference was accounted for. Deliveries on Saturday, Sunday or federal holidays shall be excluded from the calculation for the applicable Month.
(b)For all other Terminals, TLO shall have no obligation to measure volume gains and losses and shall have no liability whatsoever for physical losses, except if such losses are caused by the gross negligence or willful misconduct of TLO, as further described in Section 27 herein.
9.REIMBURSEMENT
(a)Tesoro shall reimburse TLO for: (i) the actual cost of any regulatory fees incurred by TLO based on Tesoro's proportionate share of the actual volumes Tesoro throughputs based upon the percentage of Tesoro's use of the services or facilities impacted by regulatory fees; (ii) the actual cost of any capital expenditures that TLO agrees to make upon Tesoro's request pursuant to a Purchase Order to provide services hereunder, other than capital expenditures required for TLO to continue to provide those services specified hereunder; and (iii) the actual cost of any third-party fees, including port fees, incurred in connection with carrying out the terms of this Agreement or any Purchase Order.
(b)If cleaning of any tanks is performed by TLO at the specific request of Tesoro, a Purchase Order shall provide for Tesoro to bear (or reimburse TLO) for all costs to clean, degas or otherwise prepare the tank(s) including, without limitation, the cost of removal, processing, transportation, disposal, of all waste and the cost of any taxes or charges TLO may be required to pay in regard to such waste.  For any tanks that are dedicated to Tesoro for segregated storage of 

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Tesoro's Products as set forth in any Purchase Order, Tesoro agrees to reimburse TLO for the reasonable cost of changes necessary to return the segregated storage tanks to TLO on termination of their dedication for segregated storage under this Agreement or any Purchase order, in the same condition as originally received less normal wear and tear.  If Tesoro requests that any such dedicated tank be converted to storage of a different Product, then a Purchase order shall provide for Tesoro to be responsible for reimbursing TLO for all costs of such conversion, including all costs to clean, degas or otherwise prepare the tank(s) including, without limitation, the cost of removal, processing, transportation, disposal, of all waste and the cost of any taxes or charges TLO may be required to pay in regard to such waste.  Tesoro shall not be responsible to TLO for any throughput fees and dedicated tank storage fees associated with any dedicated storage tanks taken out of service during the period that such tank is out of service.
(c)All of the foregoing reimbursements shall be made in accordance with the payment terms set forth in Section 7(a) herein.
10.CUSTODY TRANSFER AND TITLE
(a)Pipeline
(i)Receipts.  For Product received into a Terminal by pipeline, custody of the Product shall pass to TLO at the flange where it enters the Terminal's receiving line.  For receipts of Product at a Terminal rack at Mandan, Salt Lake City or Wilmington, custody shall transfer at the point where the pipeline from the Refinery crosses onto the property controlled by TLO.
(ii)Deliveries.  For Product delivered by a Terminal into pipeline, custody of the Product shall pass to Tesoro at the flange where it exits the Terminal's delivery line.
(b)Rail Receipts.  For Product received by rail, custody shall pass to TLO when the locomotive used to transfer Tesoro's rail cars to the Terminal is uncoupled from such rail cars at the Terminal.
(c)Truck.  For receipts and deliveries to or from trucks, custody shall pass at the flange where the hoses at TLO's facility interconnect with the truck.
(d)Marine.  For receipts and deliveries to or from marine vessel at Vancouver, custody shall pass at the flange where TLO's facility interconnects with the hoses connected to the marine vessel; for receipts and deliveries to or from marine vessel at Anchorage, custody shall pass at the flange where TLO's facility interconnects with the Port of Anchorage Valve Yard.
(e)General. Upon re-delivery of any Product to Tesoro's account, Tesoro shall become solely responsible for any loss, damage or injury to person or property or the environment, arising out of transportation, possession or use of such Product after transfer of custody and the loss allowance provisions hereof shall apply to Product while in TLO's custody.  Title to all Tesoro's Product received in the Terminals shall remain with Tesoro at all times.  Both Parties acknowledge that this Agreement and any Purchase Orders represent a bailment of Products by Tesoro to TLO and not a consignment of Products, it being understood that TLO has

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no authority hereunder to sell or seek purchasers for the Products of Tesoro, except as provided in Section 8 above and Section 13 below.  Tesoro hereby warrants that it shall, at all times, have good title to and the right to deliver, throughput, store and receive Products pursuant to the terms of this Agreement or any applicable Purchase Order.
11.PRODUCT QUALITY
(a)Tesoro warrants that all Products delivered under this Agreement or any Purchaser Order shall meet the latest applicable pipeline specifications for that Product upon receipt at the applicable Terminal and contain no deleterious substances or concentrations of any contaminants that may make it or its components commercially unacceptable in general industry application.  Tesoro shall not deliver to any of the Terminals any Products which:  (a) would in any way be injurious to any of the Terminals; (b) would render any of the Terminals unfit for the proper storage of similar Products; (c) would contaminate or otherwise downgrade the quality of the Products stored in commingled storage; (d) may not be lawfully stored at the Terminals; or (e) otherwise do not meet applicable Product specifications for such Product that are customary in the location of the Terminal.  If, however, there are Products that do not have such applicable specifications, the specifications shall be mutually agreed upon by the Parties.  Should Tesoro's commingled Products not meet or exceed the minimum quality standards set forth in this Agreement or any applicable Purchase Order, Tesoro shall be liable for all loss, damage and cost incurred thereby, including damage to Products of third parties commingled with Tesoro's unfit Products.
(b)TLO shall have the right to store compatible Products received for Tesoro's account with Products belonging to TLO or third parties in TLO's commingled storage tanks.  TLO shall handle Tesoro's fungible Products in accordance with TLO's prevailing practices and procedures for handling such Products.  The quality of all Products tendered into commingled storage for Tesoro's account shall be verified either by Tesoro's refinery analysis or supplier's certification, such that Products so tendered shall meet TLO's Product specifications.  All costs for such analysis shall be borne solely by Tesoro.  TLO shall have the right to sample any Product tendered to the Terminals hereunder.  The cost of such sampling shall be borne solely by TLO.  All Products returned to Tesoro shall meet or exceed Product specifications in effect on the date the Products are delivered to Tesoro.  Notwithstanding any other provision herein, any and all Products that leave the Terminals shall meet all relevant ASTM, EPA, federal and state specifications, and shall not leave the Terminals in the form of a sub-octane grade Product.
(c)TLO shall exercise reasonable care to ensure that all Products delivered by third Parties into commingled storage with Tesoro's Products meet applicable Product specifications for such Product that are customary in the location of the Terminal. In the event that Tesoro's Products are commingled with third-party Products that do not meet or exceed the minimum quality standards set forth in this Agreement or any Purchase Order, TLO shall be liable for all loss, damage and cost incurred thereby.
12.MEASUREMENT
All quantities of Products received or delivered by  or into truck, rail, or marine vessel shall be measured and determined based upon the meter readings at each Terminal, as reflected 

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by delivery tickets or bills of lading, or if such meters are unavailable, by applicable calibration tables.  All quantities of Products received and delivered by pipeline shall be measured and determined based upon the meter readings of the pipeline operator, as reflected by delivery tickets, or if such meters are unavailable, by applicable calibration tables.  Deliveries to a Terminal rack at Mandan, Salt Lake City or Wilmington from a Refinery shall be deemed to be the same as the corresponding volumes delivered contemporaneously from the Terminal rack.  Deliveries by book transfer shall be reflected by entries in the books of TLO.  All quantities shall be adjusted to net gallons at 60° F in accordance with ASTM D-1250 Petroleum Measurement Tables, or latest revisions thereof.  A barrel shall consist of 42 U.S. gallons and a gallon shall contain 231 cubic inches.  Meters and temperature probes shall be calibrated according to applicable API standards.  Tesoro shall have the right, at its sole expense, and in accordance with rack location procedure, to independently certify such calibration.  Storage tank gauging shall be performed by TLO's personnel.  TLO's gauging shall be deemed accurate unless challenged by an independent certified gauger.  Tesoro may perform joint gauging at its sole expense with TLO's personnel at the time of delivery or receipt of Product, to verify the amount involved.  If Tesoro should request an independent gauger, such gauger must be acceptable to TLO and such gauging shall be at Tesoro's sole expense.
13.PRODUCT DOWNGRADE AND INTERFACE
Product downgraded as a result of ordinary Terminal or pipeline operations including line flushing, rack meter provings or other necessary Terminals operations shall not constitute losses for which TLO is liable to Tesoro.  TLO shall account for the volume of Product downgraded, and Tesoro's inventory of Products and/or interface shall be adjusted, provided that, in some cases interface volume (“Transmix”) received shall be ratably shared between Tesoro and other customers receiving Products in the same shipment or stored in commingled storage.  Tesoro shall remove its Transmix upon notice from TLO and shall be subject to applicable throughput fees upon its removal.  If Transmix is not removed within fifteen (15) days after notification, TLO shall have the right to sell such Transmix at market rates and return any proceeds to Tesoro, less applicable throughput fees and delivery costs in effect at the time of such sale.
14.PRODUCT DELIVERIES, RECEIPTS AND WITHDRAWALS
(a)All supervised deliveries, receipts and withdrawals hereunder shall be made within the normal business hours of each Terminal and at such times as may be required by Tesoro upon prior notice and approval by TLO, all in accordance with the agreed-upon scheduling.  Unsupervised deliveries, receipts and withdrawals shall be made only with TLO's prior approval and in strict accordance with TLO's current operating procedures for the Terminals.  Tesoro warrants that all vehicles permitted to enter the Terminals on behalf of Tesoro shall meet all requirements and standards promulgated by applicable regulatory authority including the Department of Transportation, the Occupational Safety and Health Administration, and the Environmental Protection Agency (the “EPA”).  Tesoro further warrants that it shall only send to the Terminals those employees, agents and other representatives acting on behalf of and at Tesoro's direction who have been properly instructed as to the characteristics and safe hauling methods associated with the Products to be loaded and hauled.  Tesoro further agrees to be responsible to TLO for the performance under this Agreement or any Purchase Order by its agents and/or representatives receiving Products at the Terminals.

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(b)Tesoro shall withdraw from the Terminals only those Products that it is authorized to withdraw hereunder.  Tesoro shall neither duplicate nor permit the duplication of any loading device (i.e., card lock access) provided hereunder. Tesoro shall be fully and solely responsible for all Products loaded through the use of the loading devices issued to Tesoro in accordance with this Agreement or pursuant to any Purchase Order; provided, however; that Tesoro shall not have any responsibility or liability hereunder in the event that the load authorization system provided hereunder fails or malfunctions in any way unless a credit department override is provided, which authorizes Tesoro to load the Products.
(c)Both Parties shall abide by all federal, state and local statutes, laws and ordinances and all rules and regulations which are promulgated by TLO and which are either furnished to Tesoro or posted at the Terminals, with respect to the use of the Terminals as herein provided.  It is understood and agreed by Tesoro that these rules and regulations may be changed, amended or modified by TLO at any time.  All changes, amendments and modifications shall become binding upon Tesoro ten (10) days following the posting of a copy at the affected Terminals or the receipt by Tesoro of a copy, whichever occurs sooner.
(d)For all purposes hereunder, Tesoro's jobbers, distributors, Carriers, haulers and other customers designated in writing or otherwise by Tesoro to have loading privileges under this Agreement or any Purchase Order or having possession of any loading device furnished to Tesoro pursuant to this Agreement or any Purchase Order, together with their respective officers, servants and employees, shall, when they access the Terminals, be deemed to be representatives of Tesoro.
15.DELIVERIES INTO TRANSPORT TRUCKS
Prior to transporting any Products loaded into transport trucks at the Terminals, Tesoro and its Carriers shall make or cause to be made, the following certifications on the delivery receipt or bill of lading covering the Products received:
“If required by 49 CFR 172.204, this is to certify that the above-named materials are property classified, described, packaged, marked and labeled, and are in proper condition for transportation according to the applicable regulations of the Department of Transportation.  Carrier hereby certifies that the cargo tank used for this shipment is a proper container for the commodity loaded therein and complies with Department of Transportation specifications and certifies that cargo tank is properly placarded and marked to comply with regulations pertaining to hazardous materials.”
TLO may require each Carrier coming into the Terminals to expressly agree in writing to be bound by the provisions of this Agreement or any Purchase Order with respect to withdrawals and loading of Products hereunder or thereunder, to conduct its operations at the Terminals in a safe manner, in accordance with all Applicable Laws and regulations, and to carry the levels and types of insurance, with appropriate endorsements and certificates, specified for Tesoro hereunder.

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16.ADDITIZATION OPTIONS
At each Terminal, TLO shall provide equipment for the injection of generic additives, as provided below.  Subject to the other provisions set forth herein, and the availability of suitable space in a Terminal and its equipment, Tesoro shall have the option of installing its own proprietary additive systems at the Terminals which TLO shall operate, or utilizing the generic additive service provided by TLO, or a combination of both.  Tesoro shall designate pursuant to a Purchase Order which additive injection service it desires.  TLO shall be responsible for providing generic additives as provided herein, and Tesoro shall be responsible for providing any special or proprietary additives requested by Tesoro.
17.LUBRICITY AND CONDUCTIVITY ADDITIVE
(a)TLO owns, maintains and operates diesel lubricity and conductivity additive injection facilities (the “Additive Facilities”) at each of the Terminals. TLO shall continue to maintain and operate such Additive Facilities in accordance with customary industry standards during the Term or pursuant to an applicable Purchase Order, including all required reporting and record keeping prescribed by Applicable Law.
(b)During the Term or pursuant to an applicable Purchase Order, TLO shall arrange for purchase and delivery of any and all required lubricity and conductivity additive for injection through the Additive Facilities at the Terminals.
(c)During the Term or pursuant to an applicable Purchase Order, TLO shall inject into all Ultra Low Sulfur Diesel delivered to Tesoro at the Terminals an amount of lubricity and conductivity additive that TLO determines to be sufficient to comply with current ASTM diesel lubricity and conductivity specifications.  TLO shall, upon request, provide Tesoro with documentation of additive specifications and additive injection, which TLO shall keep on file at each Terminal.
18.DCA ADDITIVE INJECTION
(a)All gasoline Product leaving the Terminals shall be additized (“Additized Gasoline”).  As an exception, TLO shall accommodate a request from Tesoro to lift base gasoline from the Terminals.  In that case, the bill of lading issued by TLO shall label all such Product as base gasoline (“Base Gasoline”).  TLO shall provide a generic Deposit Control Additive (“DCA”) injection service, including all required reporting and record keeping prescribed by Applicable Law.  The additive supplied shall be a an EPA certified DCA. Subject to the other provisions hereof, Tesoro may request TLO to instead inject a different proprietary DCA into certain gasoline delivered hereunder, instead of the generic DCA provided by TLO, and TLO shall accommodate such requests pursuant to a Purchase Order specifying the specific additization required and fees to be charged for its injection, subject to Tesoro providing a suitable Additized Gasoline system for such proprietary additive.  TLO shall ensure that such additive is injected into all appropriate gasoline Product delivered to Tesoro at a rate no lower than the Lowest Allowable Concentration (“LAC”) at which such additive was certified.  The gasoline additization rate shall be determined by Tesoro, but shall not be less than 1.1 times the LAC specified by the respective additive manufacturer or supplier.

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(b)Notwithstanding the above, Tesoro shall be solely responsible for registering with the EPA or any other government agency its use of generic or proprietary additive in its fuels, as required by Applicable Law.  Tesoro shall submit, to each applicable Terminal, evidence of registration in compliance with 40 C.F.R. Part 80.  Tesoro shall also be responsible for full compliance with any quarterly or other regulatory reporting, and any other requirements under Applicable Law, rule or regulation related to use of generic or proprietary additive in Tesoro's Product.
		
	19.
	RED DYE INJECTION

(a)TLO shall provide a generic red dye additive (“Red Dye”) injection service for diesel, including all required reporting and recordkeeping prescribed by Applicable Law.  TLO shall be responsible for determining the injection rates, Red Dye inventory levels, meter readings, and calculations of actual treat rates, in compliance with the minimum levels prescribed by the Internal Revenue Service.
(b)Tesoro is responsible for designating which of its accounts shall be authorized to use Red Dye diesel injection services.  TLO equipment shall enable designated Carriers and accounts to inject Red Dye upon request prior to loading diesel Product at Terminals.  Tesoro's Carrier shall be solely responsible for designating that a load of diesel Product be injected with Red Dye, and TLO shall have no liability with regard to whether a load of Product is additized with Red Dye. TLO shall not be responsible for any loss, damage or liability that arises from Carrier injecting or failing to inject Red Dye into Tesoro's Product.
		
	20.
	SPECIAL ADDITIVE EQUIPMENT

As set forth in a Purchase Order, and subject to the other provisions set forth herein and the availability of suitable space in a Terminal, TLO shall install and maintain at the Terminals, at Tesoro's sole risk, cost and expense, such special additive equipment as may be desirable for Products to be delivered to Tesoro's account hereunder.  The engineering and installation of any fixture, equipment or appurtenance placed on the Terminals in respect thereof shall be subject to TLO's prior approval and supervision.  During the Term, TLO shall operate the special additive equipment with any fees therefor to be set forth in a Purchase Order.
(a)Any such gasoline additive system shall include one above ground storage tank (and any necessary modifications thereto), one additive injection pump, any and all necessary piping and injectors.  For the avoidance of doubt, the above ground storage tank shall be supplied by Tesoro.
(b)Subject to the supervision of TLO, TLO or its designee shall install the additive system.  Tesoro shall be responsible for 100% of all costs of the Additized Gasoline system, including without limitation, costs associated with any required piping, nozzles, fittings, equipment, injection panels, labor and/or installation thereof, and if any existing load rack equipment will not support such additional additive system, then Tesoro shall bear all costs of enlarging or renovating such load rack to support the additional additive system requested by Tesoro pursuant to a Purchase Order.  Tesoro shall reimburse TLO for all such costs within ten days after receipt of an invoice from TLO for such costs.  Upon completion of the installation of 

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the Additized Gasoline system, the Additized Gasoline system shall become the property of TLO, free and clear of any security interest or lien.
(c)Tesoro shall reimburse TLO for any and all necessary modifications to an additional additive system required by Tesoro during the Term.
		
	21.
	ETHANOL BLENDING SERVICES

(a)Where ethanol receiving, storage and blending facilities are available at a Terminal, and upon Tesoro's request pursuant to a Purchase Order, TLO shall receive, store and blend ethanol into Tesoro's gasoline at a Terminal (“Ethanol Services”).  TLO shall provide and operate all equipment required for the Ethanol Services.  The equipment shall consist of truck and/or rail unloading racks, tanks, pumps, motors, injectors, computer control, and any other ancillary equipment necessary for the providing of the Ethanol Services.
(b)Tesoro shall be solely responsible for supplying inventories of ethanol at its own expense, including the scheduling and transporting of ethanol into the Terminals, subject to mutually agreeable notice and scheduling procedures.  TLO shall receive Tesoro's ethanol into fungible ethanol storage at the Terminal.
(c)Upon a request from Tesoro for Ethanol Services, a Purchase Order shall provide the desired blending ratio of ethanol to gasoline at each applicable Terminal, including the minimum Octane (R+M/2) rating (“Blending Instructions”), for each grade of Tesoro's gasoline Product, prior to blending.  TLO shall not change the blending ratios without the prior written authorization of Tesoro.
(d)TLO shall maintain for a minimum of five (5) years written or electronic records of the type and volume of oxygenate blended into Tesoro's gasoline.
(e)TLO shall maintain an industry standard quality assurance oversight program of the ethanol blending process.  TLO shall provide Tesoro  with an end-of-year report that, at a minimum, summarizes the volume of Tesoro's gasoline received by TLO, the volume of oxygenate added to Tesoro's gasoline, and total volume of blended gasoline.
(f)TLO shall allow Tesoro or its agents to monitor the oxygenate blending operation by periodic audit, sampling, testing and/or records review to ensure the overall volumes and type of oxygenate blended into gasoline is consistent with the oxygenate claimed by Tesoro as required by 40 CFR 80.101(d)(4)(ii)(B)(2).
(g)TLO shall rely on Blending Instructions and data provided by Tesoro in performing its obligations under this Agreement and any Purchase Order.  Tesoro agrees to be solely responsible for all claims arising from TLO's use of or reliance on these Blending Instructions and data.
(h)When performing the Ethanol Services as per Tesoro's Blending Instructions, TLO shall not certify to Tesoro or any third-party that blended gasoline does or shall meet ASTM D 4814 or any federal, state, or local regulatory specifications.  Tesoro agrees that it is receiving from TLO the Blended Gasoline in an “AS IS, WHERE IS” condition without 

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warranties of any kind, including any warranties of merchantability or fitness for a particular purpose, or its ability to meet ASTM or regulatory specifications.
22.ACCOUNTING PROVISIONS AND DOCUMENTATION
(a)TLO shall furnish Tesoro with the following reports covering services hereunder involving Tesoro's Products:
(i)within ten (10) Business Days following the end of the Month, a statement showing, by Product:  (A) Tesoro's monthly aggregate deliveries into the Terminals; (B) Tesoro's monthly receipts from the Terminals; (C) calculation of all Tesoro's monthly storage and handling fees; (D) Tesoro's opening inventory for the preceding Month; (E) appropriate monthly loss allowance adjustments (as applicable in accordance with Section 8); and (vi) Tesoro's closing inventory for the preceding Month;
(ii)a copy of any meter calibration report, to be available for inspection upon reasonable request by Tesoro at the Terminals following any calibration;
(iii)upon delivery from the Terminals, a hard copy bill of lading to the Carrier for each truck, barge, or rail delivery.  Upon reasonable request only, a hard copy bill of lading shall be provided to Tesoro's accounting group.  Upon each truck delivery from the Terminals, bill of lading information shall be sent electronically through General Electric Information Services Petroex System or other mutually agreeable system; 
(iv)for each marine shipment, all bills of lading (or other appropriate document in the case of barges) and inspection reports (if conducted by independent inspector); and
(v)transfer documents for each in-tank transfer.
(b)TLO shall be required to maintain the capabilities to support truck load authorization technologies at each Terminal.  However, costs incurred by TLO for periodic software updates, replacement of loading systems or software or other upgrades made at the request of Tesoro shall be recoverable from Tesoro pursuant to a Purchase Order either as a lump sum payment or through an increase in terminalling fees. Notwithstanding the foregoing, if an update, replacement or upgrade is made other than at Tesoro's request, TLO and Tesoro shall mutually agree pursuant to a Purchase Order on a fee for such update, replacement or upgrade.
23.AUDIT AND CLAIMS PERIOD
Each Party and its duly authorized agents and/or representatives shall have reasonable access to the accounting records and other documents maintained by the other Party which relate to this Agreement and any Purchase Order, and shall have the right to audit such records at any reasonable time or times during the Term and for a period of up to three years after termination of this Agreement or any applicable Purchase Order.  Claims as to shortage in quantity or defects in quality shall be made by written notice within thirty (30) days after the delivery in question or shall be deemed to have been waived.

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	24.
	LIENS

To secure any fees due and Tesoro's performance of its obligations under this Agreement or any Purchase Order, Tesoro hereby grants to TLO an irrevocable lien and security interest in and on all of its Products in the care and custody of TLO and further grants TLO a limited power-of-attorney to dispose of such Products at fair market value to the extent of any and all amounts owed by Tesoro to TLO hereunder, after providing Tesoro with reasonable advance notice of any such sale.  At TLO's request, Tesoro shall sign a UCC-1 financing statement acknowledging TLO's security interest in Tesoro's Product in the Terminals.
		
	25.
	TAXES

Tesoro shall pay or cause to be paid all taxes, levies, royalties, assessments, licenses, fees, charges, surcharges and sums due of any nature whatsoever (other than income taxes, gross receipt taxes and similar taxes) imposed by any federal, state or local government that TLO incurs on Tesoro's behalf for the services provided by TLO under this Agreement or any Purchase Order.  If TLO is required to pay any of the foregoing, Tesoro shall promptly reimburse TLO in accordance with the payment terms set forth in this Agreement or any Purchase Order.
		
	26.
	LIMITATION ON LIABILITY

Notwithstanding anything to the contrary contained herein, neither Party shall be liable or responsible to the other Party or such other Party's affiliated Persons for any consequential, incidental, or punitive damages, or for loss of profits or revenues (collectively referred to as “special damages”) incurred by such Party or its affiliated Persons that arise out of or relate to this Agreement or any Purchase Order, regardless of whether any such claim arises under or results from contract, tort, or strict liability; provided that the foregoing limitation is not intended and shall not affect special damages imposed in favor of unaffiliated Persons that are not Parties to this Agreement.
		
	27.
	INDEMNITIES

(a)Notwithstanding anything else contained in this Agreement or any Purchase Order, TLO shall release, defend, protect, indemnify, and hold harmless Tesoro from and against any and all demands, claims (including third-party claims), losses, costs, suits, or causes of action (including, but not limited to, any judgments, losses, liabilities, fines, penalties, expenses, interest, reasonable legal fees, costs of suit, and damages, whether in law or equity and whether in contract, tort, or otherwise) for or relating to (i) personal or bodily injury to, or death of the employees of Tesoro and, as applicable, its Carriers, customers, representatives, and agents, (ii) loss of or damage to any property, products, material, and/or equipment belonging to Tesoro and, as applicable, its Carriers, customers, representatives, and agents, and each of their respective affiliates, contractors, and subcontractors (except for those volume losses provided for in Section 8), (iii) loss of or damage to any other property, products, material, and/or equipment of any other description (except for those volume losses provided for in Section 8), and/or personal or bodily injury to, or death of any other Person or Persons; and with respect to clauses (i) through (iii) above, which is caused by or resulting in whole or in part from the acts and omissions of TLO in connection with the ownership or operation of the Terminals and the services provided 

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hereunder, and, as applicable, its carriers, customers (other than Tesoro), representatives, and agents, or those of their respective employees with respect to such matters, and (iv) any losses incurred by Tesoro due to violations of this Agreement or any Purchase Order by TLO, or, as applicable, its customers (other than Tesoro), representatives, and agents; PROVIDED THAT TLO SHALL NOT BE OBLIGATED TO INDEMNIFY OR HOLD HARMLESS TESORO FROM AND AGAINST ANY CLAIMS TO THE EXTENT THEY RESULT FROM THE BREACH OF CONTRACT, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF TESORO.
(b)Notwithstanding anything else contained in this Agreement or any Purchase Order, Tesoro shall release, defend, protect, indemnify, and hold harmless TLO and, and each of its respective affiliates, officers, directors, shareholders, agents, employees, successors-in-interest, and assignees from and against any and all demands, claims (including third-party claims), losses, costs, suits, or causes of action (including, but not limited to, any judgments, losses, liabilities, fines, penalties, expenses, interest, reasonable legal fees, costs of suit, and damages, whether in law or equity and whether in contract, tort, or otherwise) for or relating to (i) personal or bodily injury to, or death of the employees of TLO and, as applicable, its carriers, customers, representatives, and agents; (ii) loss of or damage to any property, products, material, and/or equipment belonging to TLO and, as applicable, its carriers, customers, representatives, and agents, and each of their respective affiliates, contractors, and subcontractors (except for those volume losses provided for in Section 8); (iii) loss of or damage to any other property, products, material, and/or equipment of any other description (except for those volume losses provided for in Section 8), and/or personal or bodily injury to, or death of any other Person or Persons; and with respect to clauses (i) through (iii) above, which is caused by or resulting in whole or in part from the acts and omissions of Tesoro, in connection with Tesoro's and its customers' use of the Terminals and the services provided hereunder and Tesoro's Products stored hereunder, and, as applicable, its Carriers, customers, representatives, and agents, or those of their respective employees with respect to such matters; and (iv) any losses incurred by TLO due to violations of this Agreement or any Purchase Order by Tesoro, or, as applicable, its Carriers, customers, representatives, and agents;  PROVIDED THAT TESORO SHALL NOT BE OBLIGATED TO INDEMNIFY OR HOLD HARMLESS TLO FROM AND AGAINST ANY CLAIMS TO THE EXTENT THEY RESULT FROM THE BREACH OF CONTRACT, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF TLO. For the avoidance of doubt, nothing herein shall constitute a release by Tesoro of any volume losses that are caused by the TLO's gross negligence, breach of this Agreement or any Purchase Order or willful misconduct.
28.INSURANCE
(a)At all times during the Term and for a period of two (2) years after termination of this Agreement for any coverage maintained on a “claims-made” or “occurrence” basis, Tesoro and/or its Carrier (if applicable) shall maintain at their expense the below listed insurance in the amounts specified below which are minimum requirements. Tesoro shall require that Carrier cause all of its contractors providing authorized drivers or authorized vehicles, to carry such insurance, and Tesoro shall be liable to TLO for their failure to do so.  Such insurance shall provide coverage to TLO and such policies, other than Worker's Compensation Insurance, shall include TLO as an Additional Insured.  Each policy shall provide that it is primary to and not contributory with any other insurance, including any self-insured retention, maintained by TLO 

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(which shall be excess) and each policy shall provide the full coverage required by this Agreement and any Purchase Order.  All such insurance shall be written with carriers and underwriters acceptable to TLO, and eligible to do business in the states where the Terminals are located and having and maintaining an A.M. Best financial strength rating of no less than “A-” and financial size rating no less than “VII”; provided that Tesoro and/or the Carrier may procure worker's compensation insurance from the state fund of the state where the Terminal(s) are located. All limits listed below are required MINIMUM LIMITS:
(i)Workers Compensation and Occupational Disease Insurance which fully complies with  Applicable Law of the state where each Terminal is located, in limits not less than statutory requirements;
(ii)Employers Liability Insurance with a minimum limit of $1,000,000 for each accident, covering injury or death to any employee which may be outside the scope of the worker's compensation statute of the jurisdiction in which the worker's service is performed, and in the aggregate as respects occupational disease;
(iii)Commercial General Liability Insurance, including contractual liability insurance covering Carrier's indemnity obligations under this Agreement or any Purchase Order, with minimum limits of $1,000,000 combined single limit per occurrence for bodily injury and property damage liability, or such higher limits as may be required by TLO or by Applicable Law from time to time.  This policy shall include Broad Form Contractual Liability insurance coverage which shall specifically apply to the obligations assumed in this Agreement and any Purchase Order by Tesoro;
(iv)Automobile Liability Insurance covering all owned, non-owned and hired vehicles, with minimum limits of $1,000,000 combined single limit per occurrence for bodily injury and property damage liability, or such higher limit(s) as may be required by Tesoro or by Applicable Law from time to time.  Coverage must assure compliance with Sections 29 and 30 of the Motor Carrier Act of 1980 and all applicable rules and regulations of the Federal Highway Administration's Bureau of Motor Carrier Safety and Interstate Commerce Commissioner (Form MCS 90 Endorsement).  Limits of liability for this insurance must be in accordance with the financial responsibility requirement of the Motor Carrier Act, but not less than $1,000,000 per occurrence;
(v)Excess (Umbrella) Liability Insurance with limits not less than $4,000,000 per occurrence.  Additional excess limits may be utilized to supplement inadequate limits in the primary policies required in items (ii), (iii), and (iv) above;
(vi)Pollution Legal Liability with limits not less than $25,000,000 per loss with an annual aggregate of $25,000,000.  Coverage shall apply to bodily injury and property damage including loss of use of damaged property and property that has not been physically injured; clean up costs, defense, including costs and expenses incurred in the investigation, defense or settlement of claim; and

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(vii)Property Insurance, with a limit of no less than $1,000,000, which property insurance shall be first-party property insurance to adequately cover Tesoro's owned property; including personal property of others.
(b)All such policies must be endorsed with a Waiver of Subrogation endorsement, effectively waiving rights of recovery under subrogation or otherwise, against TLO, and shall contain where applicable, a severability of interest clause and a standard cross liability clause.
(c)Upon execution of this Agreement and prior to the operation of any equipment by Tesoro, Carrier or its authorized drivers at the Terminals, Tesoro and/or Carrier will furnish to TLO, and at least annually thereafter (or at any other times upon request by TLO) during the Term (and for any coverage maintained on a “claims-made” basis, for two (2) years after the termination of this Agreement or any applicable Purchase Order), insurance certificates and/or certified copies of the original policies to evidence the insurance required herein, including on behalf of Carrier's contractors providing authorized vehicles or authorized drivers.  Such certificates shall be in the form of the “Accord” Certificate of Insurance, and reflect that they are for the benefit of TLO and shall provide that there will be no material change in or cancellation of the policies unless TLO is given at least thirty (30) days prior written notice.  Certificates providing evidence of renewal of coverage shall be furnished to TLO prior to policy expiration.
(d)Tesoro and/or Carrier shall be solely responsible for any deductibles or self-insured retention.
		
	29.
	GOVERNMENT REGULATIONS

(a)Product Certification.  Each Party certifies that none of the Products covered by this Agreement or any Purchase Order were derived from crude petroleum, petrochemical, or gas which was produced or withdrawn from storage in violation of any federal, state or other governmental law, nor in violation of any rule, regulation or promulgated by any governmental agency having jurisdiction in the premises.
(b)Applicable Law.  The Parties are entering into this Agreement and any Purchase Order in reliance upon and shall fully comply with all Applicable Law which directly or indirectly affects the Products throughput hereunder, or any receipt, throughput delivery, transportation, handling or storage of Products hereunder or the ownership, operation or condition of each Terminal.  Each Party shall be responsible for compliance with all Applicable Laws associated with such Party's respective performance hereunder and the operation of such Party's facilities.  In the event any action or obligation imposed upon a Party under this Agreement and any Purchase Order shall at any time be in conflict with any requirement of Applicable Law, then this Agreement and any Purchase Order shall immediately be modified to conform the action or obligation so adversely affected to the requirements of the Applicable Law, and all other provisions of this Agreement and any Purchase Order shall remain effective.
(c)New Or Changed Applicable Law:  If during the Term, any new Applicable Law becomes effective or any existing Applicable Law or its interpretations is materially changed, which change is not addressed by another provision of this Agreement or any Purchase Order and which has a material adverse economic impact upon a Party, either Party, acting in good 

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faith, shall have the option to request renegotiation of the relevant provisions of this Agreement or any Purchase Order with respect to future performance.  The Parties shall then meet to negotiate in good faith amendments to this Agreement or to an applicable Purchase Order that will conform to the new Applicable Law while preserving the Parties' economic, operational, commercial and competitive arrangements in accordance with the understandings set forth herein.
		
	30.
	SUSPENSION OF REFINERY OPERATIONS

(a)In the event that Tesoro decides to permanently or indefinitely suspend refining operations at any of Tesoro's Refineries for a period that shall continue for at least twelve (12) consecutive Months, Tesoro may provide written notice to TLO of Tesoro's intent to terminate that part of this Agreement or any Purchase Order relating to the applicable associated Terminal (the “Suspension Notice”).  Such Suspension Notice shall be sent at any time after Tesoro has publicly announced such suspension and, upon the expiration of the twelve (12)-Month period following the date such notice is sent (the “Notice Period”), that part of this Agreement or any Purchase Order relating to such Terminal shall terminate.  If Tesoro publicly announces, more than two Months prior to the expiration of the Notice Period, its intent to resume operations at the applicable Refinery, then the Suspension Notice shall be deemed revoked and the applicable portion of this Agreement or any Purchase Order shall continue in full force and effect as if such Suspension Notice had never been delivered.
(b)During the Notice Period, for any Month during which Tesoro does not throughput any volumes of Products at an affected Terminal, Tesoro shall be permitted to reduce its Minimum Throughput Commitment by an amount equal to the Stipulated Volume for such affected Terminal(s), provided that Tesoro pays TLO a fee for such Month (a “Curtailment Fee”).  Curtailment Fees for each applicable Month shall be equal to (i) such Terminal's Stipulated Volume multiplied by (ii) the number of days in the Month, multiplied by (iii) the weighted average monthly Terminalling Service Fee incurred by Tesoro at such Terminal during the twelve (12) calendar Months immediately preceding the Refinery's suspension of operations.  For the purposes of calculating Shortfall Payments during any Month in which Tesoro pays TLO a Curtailment Fee, volume shortfalls shall be determined by deducting volumes throughput at the Terminals by TRMC during such Month from the Adjusted Minimum Throughput Commitment.
(c)Upon the expiration of the Notice Period, Tesoro shall no longer owe TLO any future Curtailment Fees and shall have no throughput obligation with respect to the affected Terminal, and Tesoro's Minimum Throughput Commitment shall be adjusted to the Adjusted Minimum Volume Commitment for the remaining unaffected Terminals, by deducting the applicable Stipulated Volume for the Terminal removed from this Agreement or any Purchase Order under this Section 30.  If refining operations at any of the Refineries are suspended for any reason (including Refinery turnarounds and other scheduled maintenance), then Tesoro shall remain liable for Shortfall Payments under this Agreement or any applicable Purchase Order for the duration of the suspension, unless and until this Agreement or applicable Purchase Order is terminated as provided above.  Schedule B attached hereto includes a list of the Terminals associated with each of the Refineries.

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	31.
	FORCE MAJEURE

(a)As soon as possible upon the occurrence of a Force Majeure, TLO shall provide Tesoro with written notice of the occurrence of such Force Majeure (a “Force Majeure Notice”).  TLO shall identify in such Force Majeure Notice the approximate length of time that TLO reasonably believes in good faith such Force Majeure shall continue (the “Force Majeure Period”). If TLO advises in any Force Majeure Notice that it reasonably believes in good faith that the Force Majeure Period shall continue for more than twelve (12) consecutive Months, then, subject to Section 32 below, at any time after TLO delivers such Force Majeure Notice, either Party may terminate that portion of this Agreement or any Purchase Order relating to the affected Terminal(s), but only upon delivery to the other Party of a notice (a “Termination Notice”) at least twelve (12) Months prior to the expiration of the Force Majeure Period; provided, however; that such Termination Notice shall be deemed cancelled and of no effect if the Force Majeure Period ends prior to the expiration of such twelve (12)-Month period.  If this Agreement or any Purchase Order is terminated as to a Terminal under this Section 31, then Tesoro's Minimum Throughput Commitment shall be adjusted to the Adjusted Minimum Volume Commitment for the remaining unaffected Terminals, by deducting the applicable Stipulated Volume for the Terminal so removed from this Agreement or any Purchase Order. For the avoidance of doubt, neither Party may exercise its right under this Section 31(a) to terminate this Agreement or any Purchase Order as a result of a Force Majeure with respect to any Terminal that has been unaffected by, or has been restored to working order since, the applicable Force Majeure, including pursuant to a Restoration under Section 32.
(b)Notwithstanding the foregoing, if Tesoro delivers a Termination Notice to TLO (the “Tesoro Termination Notice”) and, within thirty (30) days after receiving such Tesoro Termination Notice, TLO notifies Tesoro that TLO reasonably believes in good faith that it shall be capable of fully performing its obligations under this Agreement or any Purchase Order within a reasonable period of time, then the Tesoro Termination Notice shall be deemed revoked and the applicable portion of this Agreement or any Purchase Order shall continue in full force and effect as if such Tesoro Termination Notice had never been given.
(c)If either Party terminates a portion of this Agreement or any Purchase Order related to one or more specific Terminals, then the Minimum Throughput Commitment shall be reduced by the Stipulated Volume for the applicable Terminal(s).
		
	32.
	CAPABILITIES OF FACILITIES

(a)Interruptions of Service.  TLO shall use reasonable commercial efforts to minimize the interruption of service at each Terminal and any portion thereof.  TLO shall promptly inform Tesoro operational personnel of any anticipated partial or complete interruption of service at any Terminal, including relevant information about the nature, extent, cause and expected duration of the interruption and the actions TLO is taking to resume full operations, provided that TLO shall not have any liability for any failure to notify, or delay in notifying, Tesoro of any such matters except to the extent Tesoro has been materially prejudiced or damaged by such failure or delay.

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(b)Maintenance and Repair Standards.  Subject to Force Majeure and interruptions for routine repair and maintenance, consistent with customary terminal industry standards, TLO shall maintain each Terminal in a condition and with a capacity sufficient to throughput a volume of Tesoro's Products at least equal to the respective Stipulated Volume for such Terminal. TLO's obligations may be temporarily suspended during the occurrence of, and for the entire duration of, a Force Majeure or other interruption of service that prevents TLO from terminalling the Minimum Throughput Commitment hereunder.  To the extent TLO is prevented from terminalling volumes equal to the full Minimum Throughput Commitment for reasons of Force Majeure or other interruption of service, then Tesoro's obligation to throughput the Minimum Throughput Commitment and pay any Shortfall Payment shall be reduced proportionately in an amount not to exceed the Stipulated Volume for the affected Terminal.  At such time as TLO is capable of terminalling volumes equal to the Minimum Throughput Commitment, Tesoro's obligation to throughput the full Minimum Throughput Commitment shall be restored.  If for any reason, including, without limitation, a Force Majeure event, the throughput or storage capacity of any Terminal should fall below the capacity required for throughput of the Stipulated Volume for that Terminal, then within a reasonable period of time after the commencement of such reduction, TLO shall make repairs to the Terminal to restore the capacity of such Terminal to that required for throughput of the Stipulated Volume (“Restoration”).  Except as provided below in Section 32(c), all of such Restoration shall be at TLO's cost and expense, unless the damage creating the need for such repairs was caused by the negligence or willful misconduct of Tesoro, its employees, agents or customers.
(c)Capacity Resolution.  In the event of the failure of TLO to maintain any Terminal in a condition and with a capacity sufficient to throughput a volume of Tesoro's Products equal to the respective Stipulated Volume for such Terminal, then either Party shall have the right to call a meeting between executives of both Parties by providing at least two (2) Business Days' advance written notice.  Any such meeting shall be held at a mutually agreeable location and will be attended by executives of both Parties each having sufficient authority to commit his or her respective Party to a Capacity Resolution (hereinafter defined).  At the meeting, the Parties will negotiate in good faith with the objective of reaching a joint resolution for the Restoration of capacity on the Terminal which will, among other things, specify steps to be taken by TLO to fully accomplish Restoration and the deadlines by which the Restoration must be completed (the “Capacity Resolution”).  Without limiting the generality of the foregoing, the Capacity Resolution shall set forth an agreed upon time schedule for the Restoration activities.  Such time schedule shall be reasonable under the circumstances, consistent with customary terminal industry standards and shall take into consideration TLO's economic considerations relating to costs of the repairs and Tesoro's requirements concerning its refining and marketing operations.  TLO shall use commercially reasonable efforts to continue to provide storage and throughput of Tesoro's Products at the affected Terminal, to the extent the Terminal has capability of doing so, during the period before Restoration is completed.  In the event that Tesoro's economic considerations justify incurring additional costs to restore the Terminal in a more expedited manner than the time schedule determined in accordance with the preceding sentence, Tesoro may require TLO to expedite the Restoration to the extent reasonably possible, subject to Tesoro's payment, in advance, of the estimated incremental costs to be incurred as a result of the expedited time schedule.  In the event the Parties agree to an expedited Restoration plan in which Tesoro agrees to fund a portion of the Restoration cost, then neither Party shall have the right to terminate this Agreement or any applicable Purchase Order pursuant to Section 31 above, so 

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long as such Restoration is completed with due diligence, and Tesoro shall pay its portion of the Restoration costs to TLO in advance based on an estimate based on reasonable engineering standards promulgated by the Association for Facilities Engineering. Upon completion, Tesoro shall pay the difference between the actual portion of Restoration costs to be paid by Tesoro pursuant to this Section 32(c) and the estimated amount paid under the preceding sentence within thirty (30) days after receipt of TLO's invoice therefor, or, if appropriate, TLO shall pay Tesoro the excess of the estimate paid by Tesoro over TLO's actual costs as previously described within thirty (30) days after completion of the Restoration.
(d)Tesoro's Right To Cure.  If at any time after the occurrence of (x) a Partnership Change of Control or (y) a sale of a Refinery, TLO either (i) refuses or fails to meet with Tesoro within the period set forth in Section 32(c), (ii) fails to agree to perform a Capacity Resolution in accordance with the standards set forth in Section 32(c), or (iii) fails to perform its obligations in compliance with the terms of a Capacity Resolution, Tesoro may, as its sole remedy for any breach by TLO of any of its obligations under Section 32(c), require TLO to complete a Restoration of the affected Terminal, subject to and to the extent permitted under the terms, conditions and/or restrictions of applicable leases, permits and/or Applicable Law.  Any such Restoration required under this Section 32(d) shall be completed by TLO at Tesoro's cost. TLO shall use commercially reasonable efforts to continue to provide storage and throughput of Tesoro's Products at the affected Terminal, during the period while such Restoration is being completed.  Any work performed by TLO pursuant to this Section 32(d) shall be performed and completed in a good and workmanlike manner consistent with applicable industry standards and in accordance with all applicable laws, rules and/or regulations.  Additionally, during such period after the occurrence of (x) a Partnership Change of Control or (y) a sale of a Refinery, Tesoro may exercise any remedies available to it under this Agreement or any Purchase Order (other than termination), including the right to immediately seek temporary and permanent injunctive relief for specific performance by TLO of the applicable provisions of this Agreement or any Purchase Order, including, without limitation, the obligation to make Restorations as described herein.
(e)Commingled Storage.  Unless otherwise specified in a Purchase Order, all storage and throughput of Tesoro's volumes shall be on a fungible commingled basis, and TLO may commingle such Products with Products of like grade and kind. All tank heels shall be allocated among all storage users on a pro rata basis. TLO shall have the right to enter into arrangements with third parties to throughput and store volumes of Products at each Terminal, provided however, that TLO shall not enter into any third party arrangements that would restrict or limit the ability of Tesoro to throughput the Stipulated Volume at each Terminal each Month without proration or allocation, on reasonable schedules consistent with Tesoro's requirements, and to receive the Ancillary Services provided herein.
(f)Dedicated Storage.  In the event that the Parties determine to use dedicated storage tanks during the Term pursuant to a Purchase Order, such storage tanks and capacities identified on a Purchase Order shall be dedicated and used exclusively for the storage and throughput of Tesoro's Product.  For those dedicated tanks, Tesoro shall be responsible for providing all tank heels required for operation of such tanks.  Tesoro shall pay the fees specified on a Purchase Order for the dedication of such tanks.

24

(g)First Refusal.  In the event that TLO desires to enter into a third-party dedicated storage arrangement (a “Storage Contract”) for any storage tank subject to this Agreement and existing on the Commencement Date (a “Subject Tank”), TLO shall provide Tesoro with (i) written notice of its intent to enter into a Storage Contract and the general terms of such transaction and (ii) a thirty (30)-day period (beginning upon Tesoro's receipt of such written notice) (the “Offer Period”) in which Tesoro may make a good faith offer to enter into a Storage Contract with TLO with respect to such Subject Tank (the “Right of First Refusal”).  If Tesoro makes an offer on terms no less favorable to TLO than the third-party offer for a Storage Contract with respect to such Subject Tank during the Offer Period, then TLO shall be obligated to enter into a Storage Contract with Tesoro. If Tesoro does not exercise its Right of First Refusal in the manner set forth above, TLO may, for the next ninety (90) days, proceed with the negotiation of the third-party Storage Contract. If no third-party Storage Contract is consummated during such ninety-day period, then the terms and conditions of this Section 32(g) shall again become effective with respect to such Storage Tank.
		
	33.
	TERMINATION

(a)A Party shall be in default under this Agreement or any Purchase Order if:
(i)the Party materially breaches any provision of this Agreement or applicable Purchase Order and such breach is not cured within fifteen (15) Business Days after notice thereof (which notice shall describe such breach in reasonable detail) is received by such Party;
(ii)the Party (A) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy, insolvency, reorganization or similar Applicable Law, or has any such petition filed or commenced against it, (B) makes an assignment or any general arrangement for the benefit of creditors, (C) otherwise becomes bankrupt or insolvent (however evidenced) or (D) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets; or
(iii)if any of the Parties is in default as described above, then (A) if Tesoro is in default, TLO may or (B) if TLO is in default, Tesoro may: (1) terminate this Agreement or applicable Purchase Order upon notice to the defaulting Parties; (2) withhold any payments due to the defaulting Parties under this Agreement or applicable Purchase Order; and/or (3) pursue any other remedy at law or in equity.
(b)Tesoro shall, upon expiration or termination of this Agreement or any Purchase Order, promptly remove all of its Products including any downgraded and interface Product from the Terminals within thirty (30) days of such termination or expiration.  In the event all of the Product is not removed within such thirty (30) day period, Tesoro shall be assessed a storage fee to all Products held in storage more than thirty (30) days beyond the termination or expiration of this Agreement or applicable Purchase Order until such time Tesoro's entire Product is removed from the Terminals.

25

(c)Tesoro shall, upon expiration or termination of this Agreement or any Purchase Order, promptly remove any and all of its owned equipment not purchased by TLO pursuant to Section 13 above, and restore the Terminals to their condition prior to the installation of such equipment.
		
	34.
	RIGHT TO ENTER INTO A NEW TERMINALLING AGREEMENT

(a)Upon termination of this Agreement or a Purchase Order for reasons other than (x) a default by Tesoro and (y) any other termination of this Agreement or a Purchase Order initiated by Tesoro pursuant to Sections 30 or 31.  Tesoro shall have the right to require TLO to enter into a new terminalling services agreement with Tesoro that (i) is consistent with the terms set forth in this Agreement, (ii) relates to the same Terminals that are the subject matter of this Agreement, and (iii) has commercial terms that are, in the aggregate, equal to or more favorable to TLO than fair market value terms as would be agreed by similarly-situated parties negotiating at arm's length; provided, however; that the term of any such new terminalling services agreement shall not extend beyond April 30, 2031.
(b)In the event that TLO proposes to enter into a terminalling services agreement with a third party upon the termination of this Agreement or any Purchase Order for reasons other than (x) by default by Tesoro and (y) any other termination of this Agreement or any Purchase Order initiated by Tesoro pursuant to Sections 30 or 31, TLO shall give Tesoro 90 days' prior written notice of any proposed new terminalling services agreement with a third party, including (i) details of all of the material terms and conditions thereof and (ii) a thirty (30)-day period (beginning upon Tesoro's receipt of such written notice) (the “First Offer Period”) in which Tesoro may make a good faith offer to enter into a new terminalling agreement with TLO (the “Terminalling Right of First Refusal”).  If Tesoro makes an offer on terms no less favorable to TLO than the third-party offer with respect to such terminalling services agreement during the First Offer Period, then TLO shall be obligated to enter into a terminalling services agreement with Tesoro on the terms set forth in subsection (a) above. If Tesoro does not exercise its Terminalling Right of First Refusal in the manner set forth above, TLO may, for the next ninety (90) days, proceed with the negotiation of the third-party terminalling services agreement. If no third party agreement is consummated during such ninety-day period, the terms and conditions of this Section 34(b) shall again become effective.
		
	35.
	ASSIGNMENT; PARTNERSHIP CHANGE OF CONTROL

(a)Tesoro shall not assign all of its obligations hereunder or under a Purchase Order without TLO's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however; that Tesoro may assign this Agreement or any Purchase Order, without TLO's consent, in connection with a sale by Tesoro of a Refinery associated with one of TLO's Terminals so long as the transferee: (i) agrees to assume all of Tesoro's obligations under this Agreement and any Purchase Order with respect to the associated Terminal(s); and (ii) is financially and operationally capable of fulfilling the terms of this Agreement and any Purchase Order, which determination shall be made by Tesoro in its reasonable judgment.

26

(b)TLO shall not assign its rights or obligations under this Agreement or any Purchase Order without Tesoro's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that (i) TLO may assign this Agreement or any Purchase Order without Tesoro's consent in connection with a sale by TLO of one or more of its Terminals so long as the transferee: (A) agrees to assume all of TLO's obligations under this Agreement and any Purchase Order with respect to the associated Terminal(s); (B) is financially and operationally capable of fulfilling the terms of this Agreement and any Purchase Order, which determination shall be made by TLO in its reasonable judgment; and (C) is not a competitor of Tesoro; and (ii) TLO shall be permitted to make a collateral assignment of this Agreement or any Purchase Order solely to secure working capital financing for TLO.
(c)If either Tesoro or TLO assigns its rights or obligations under this Agreement or any Purchase Order relating to a specific Terminal, then: (i) the Minimum Throughput Commitment shall be converted to the Adjusted Minimum Volume Commitment for the Terminals remaining subject to this Agreement or applicable Purchase Order by reducing by the amount of the Stipulated Volume for such assigned Terminal, and both Tesoro's and TLO's obligations shall continue with respect to the remaining Terminals and the Adjusted Minimum Throughput Commitment; and (ii) the rights and obligations relating to the affected Terminal, and its Stipulated Volume, shall be novated into a new agreement with the assignee, and such assignee shall be responsible for the performance of the assigning Party's obligations relating to the affected Terminal.
(d)Any assignment that is not undertaken in accordance with the provisions set forth above shall be null and void ab initio.  A Party making any assignment shall promptly notify the other Party of such assignment, regardless of whether consent is required.  This Agreement and any Purchase Order shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns.
(e)Tesoro's obligations hereunder shall not terminate in connection with a Partnership Change of Control, provided however, that in the case of a Partnership Change of Control, Tesoro shall have the option to extend the Term as provided in Section 3. TLO shall provide Tesoro with notice of any Partnership Change of Control at least sixty (60) days prior to the effective date thereof.
		
	36.
	NOTICE

All notices, requests, demands, and other communications hereunder will be in writing and will be deemed to have been duly given: (a) if by transmission by facsimile or hand delivery, when delivered; (b) if mailed via the official governmental mail system, five (5) Business Days after mailing, provided said notice is sent first class, postage pre-paid, via certified or registered mail, with a return receipt requested; (c) if mailed by an internationally recognized overnight express mail service such as Federal Express, UPS, or DHL Worldwide, one (1) Business Day after deposit therewith prepaid; or (d) if by e-mail, one Business Day after delivery with receipt confirmed.  All notices will be addressed to the Parties at the respective addresses as follows:

27

If to TRMC or TAK, to:
c/o Tesoro Refining & Marketing Company LLC
19100 Ridgewood Parkway
San Antonio, Texas 78259
For legal notices:
Attention:  Charles S. Parrish, General Counsel
phone:  (210) 626-4280
fax:  (210) 745-4494
email: charles.s.parrish@tsocorp.com
For all other notices and communications:
Attention:  Richard D. Weyen, Vice President, Logistics
phone:  (210) 626-4379
fax:  (210) 745-4631
email: Rick.D.Weyen@tsocorp.com
If to TLO, to:
Tesoro Logistics Operations LLC
19100 Ridgewood Parkway
San Antonio, Texas 78259
For legal notices:
Attention:  Charles S. Parrish, General Counsel
phone:  (210) 626-4280
fax:  (210) 745-4494
email: charles.s.parrish@tsocorp.com
For all other notices and communications:
Attention:  Victoria R. Somers, Contracts Administrator - Logistics
phone:  (210) 626-6390
fax: (210) 745-4490
email: victoria.r.somers@tsocorp.com
or to such other address or to such other Person as either Party will have last designated by notice to the other Party.
		
	37.
	CONFIDENTIAL INFORMATION

(a)Obligations. Each Party shall use reasonable efforts to retain the other Parties' Confidential Information in confidence and not disclose the same to any third party nor use the same, except as authorized by the disclosing Party in writing or as expressly permitted in this Section 37.  Each Party further agrees to take the same care with the other Party's Confidential Information as it does with its own, but in no event less than a reasonable degree of care.  Excepted from these obligations of confidence and non-use is that information which:

28

(i)is available, or becomes available, to the general public without fault of the receiving Party;
(ii)was in the possession of the receiving Party on a non-confidential basis prior to receipt of the same from the disclosing Party (it being understood, for the avoidance of doubt, that this exception shall not apply to information of TLO that was in the possession of Tesoro or any of its affiliates as a result of their ownership or operation of the Terminals prior to the Commencement Date);
(iii)is obtained by the receiving Party without an obligation of confidence from a third party who is rightfully in possession of such information and, to the receiving Party's knowledge, is under no obligation of confidentiality to the disclosing Party; or
(iv)is independently developed by the receiving Party without reference to or use of the disclosing Party's Confidential Information.
For the purpose of this Section 37, a specific item of Confidential Information shall not be deemed to be within the foregoing exceptions merely because it is embraced by, or underlies, more general information in the public domain or in the possession of the receiving Party.
(b)Required Disclosure. Notwithstanding Section 37(a) above, if the receiving Party becomes legally compelled to disclose the Confidential Information by a court, Governmental Authority or Applicable Law, or is required to disclose by the listing standards of the New York Stock Exchange, any of the disclosing Party's Confidential Information, the receiving Party shall promptly advise the disclosing Party of such requirement to disclose Confidential Information as soon as the receiving Party becomes aware that such a requirement to disclose might become effective, in order that, where possible, the disclosing Party may seek a protective order or such other remedy as the disclosing Party may consider appropriate in the circumstances. The receiving Party shall disclose only that portion of the disclosing Party's Confidential Information that it is required to disclose and shall cooperate with the disclosing Party in allowing the disclosing Party to obtain such protective order or other relief.
(c)Return of Information. Upon written request by the disclosing Party, all of the disclosing Party's Confidential Information in whatever form shall be returned to the disclosing Party upon termination of this Agreement or destroyed with destruction certified by the receiving Party, without the receiving Party retaining copies thereof except that one copy of all such Confidential Information may be retained by a Party's legal department solely to the extent that such Party is required to keep a copy of such Confidential Information pursuant to Applicable Law, and the receiving Party shall be entitled to retain any Confidential Information in the electronic form or stored on automatic computer back-up archiving systems during the period such backup or archived materials are retained under such Party's customary procedures and policies; provided, however, that any Confidential Information retained by the receiving Party shall be maintained subject to confidentiality pursuant to the terms of this Section 37, and such archived or back-up Confidential Information shall not be accessed except as required by Applicable Law.

29

(d)Receiving Party Personnel. The receiving Party will limit access to the Confidential Information of the disclosing Party to those of its employees, attorneys and contractors that have a need to know such information in order for the receiving Party to exercise or perform its rights and obligations under this Agreement or any Purchase Order (the “Receiving Party Personnel”).  The Receiving Party Personnel who have access to any Confidential Information of the disclosing Party will be made aware of the confidentiality provision of this Agreement, and will be required to abide by the terms thereof.  Any third party contractors that are given access to Confidential Information of a disclosing Party pursuant to the terms hereof shall be required to sign a written agreement pursuant to which such Receiving Party Personnel agree to be bound by the provisions of this Agreement, which written agreement will expressly state that it is enforceable against such Receiving Party Personnel by the disclosing Party.
(e)Survival. The obligation of confidentiality under this Section 37 shall survive the termination of this Agreement for a period of two (2) years.
		
	38.
	MISCELLANEOUS

(a)Modification; Waiver.  This Agreement or any Purchase Order may be terminated, amended or modified only by a written instrument executed by the Parties.  Any of the terms and conditions of this Agreement or any Purchase Order may be waived in writing at any time by the Party entitled to the benefits thereof.  No waiver of any of the terms and conditions of this Agreement or any Purchase Order, or any breach thereof, will be effective unless in writing signed by a duly authorized individual on behalf of the Party against which the waiver is sought to be enforced.  No waiver of any term or condition or of any breach of this Agreement or any Purchase Order will be deemed or will constitute a waiver of any other term or condition or of any later breach (whether or not similar), nor will such waiver constitute a continuing waiver unless otherwise expressly provided.
(b)Entire Agreement.  This Agreement, together with the Schedules and Purchase Orders, constitutes the entire agreement among the Parties pertaining to the subject matter hereof and supersedes all prior agreements and understandings of the Parties in connection therewith.
(c)Governing Law; Jurisdiction.  This Agreement and any Purchase Order shall be governed by the laws of the State of Texas without giving effect to its conflict of laws principles. Each Party hereby irrevocably submits to the exclusive jurisdiction of any federal court of competent jurisdiction situated in the United States District Court for the Western District of Texas, San Antonio Division, or if such federal court declines to exercise or does not have jurisdiction, in the district court of Bexar County, Texas. The Parties expressly and irrevocably submit to the jurisdiction of such Courts and irrevocably waive any objection which they may now or hereafter have to the laying of venue of any action, suit or proceeding arising out of or relating to this Agreement or any Purchase Order brought in such Courts, irrevocably waive any claim that any such action, suit or proceeding brought in any such Court has been brought in an inconvenient forum and further irrevocably waive the right to object, with respect to such claim, action, suit or proceeding brought in any such Court, that such Court does not have jurisdiction over such Party.  The Parties hereby irrevocably consent to the service of process by registered 

30

mail, postage prepaid, or by personal service within or without the State of Texas.  Nothing contained herein shall affect the right to serve process in any manner permitted by law.
(d)Counterparts.  This Agreement and any Purchase Order may be executed in one or more counterparts (including by facsimile or portable document format (pdf)) for the convenience of the Parties hereto, each of which counterparts will be deemed an original, but all of which counterparts together will constitute one and the same agreement.
(e)Severability.  Whenever possible, each provision of this Agreement and any Purchase Order will be interpreted in such manner as to be valid and effective under applicable law, but if any provision of this Agreement or any Purchase Order or the application of any such provision to any Person or circumstance will be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision hereof, and the Parties will negotiate in good faith with a view to substitute for such provision a suitable and equitable solution in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid, illegal or unenforceable provision.
(f)No Third Party Beneficiaries.  It is expressly understood that the provisions of this Agreement and any Purchase Order do not impart enforceable rights in anyone who is not a Party or successor or permitted assignee of a Party.
(g)WAIVER OF JURY TRIAL. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDINGS RELATING TO THIS AGREEMENT OR ANY PURCHASE ORDER OR ANY PERFORMANCE OR FAILURE TO PERFORM OF ANY OBLIGATION HEREUNDER.
(h)Schedules and Purchase Order(s).  Each of the Schedules and Purchase Order(s) attached hereto and referred to herein is hereby incorporated in and made a part of this Agreement as if set forth in full herein.
[Remainder of this page intentionally left blank.]

31

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the date first written above.
	
						
	TESORO ALASKA COMPANY
	 
	TESORO REFINING & MARKETING
COMPANY LLC

	 
	 
	 
	 
	 
	 

	By: 
	  /s/ GREGORY J. GOFF
	 
	By: 
	  /s/ GREGORY J. GOFF

	 
	Gregory J. Goff
	 
	 
	Gregory J. Goff

	 
	President
	 
	 
	President

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	TESORO LOGISTICS OPERATIONS LLC
	 
	 

	 
	 
	 
	 
	 
	 

	By: 
	TESORO LOGISTICS LP,
	 
	 
	 

	               
	 
	its sole member
	 
	 
	 

	 
	 
	 
	 
	 
	 

	By: 
	TESORO LOGISTICS GP, LLC,
	 
	 
	 

	               
	 
	its general partner
	 
	 
	 

	 
	 
	 
	 
	 
	 

	By: 
	  /s/ PHILLIP M. ANDERSON
	 
	 
	 

	 
	Phillip M. Anderson
	 
	 
	 

	 
	President
	 
	 
	 

	
		
	SCHEDULE A

	 

	STIPULATED VOLUMES

	Terminal
	Stipulated Volume (bpd)

	Anchorage
	9,000

	Boise
	7,200

	Burley
	2,300

	Los Angeles
	33,300

	Mandan
	8,900

	Salt Lake City
	25,300

	Stockton
	7,600

	Vancouver
	6,400

	TOTAL
	100,000

If there are multiple Terminals at any of the above locations, the reference to that location shall include all of such Terminals.

	
		
	SCHEDULE B

	 

	TERMINALS ASSOCIATED WITH REFINERIES

	 
	 

	Refineries
	Associated Terminal

	Alaska Refinery
	Anchorage Terminal

	Anacortes Refinery
	Vancouver Terminal

	Golden Eagle Refinery
	Stockton Terminal

	Los Angeles Refinery
	Los Angeles Terminal

	Mandan Refinery
	Mandan Terminal

	Salt Lake City Refinery
	Salt Lake City, Boise and Burley Terminals

EXHIBIT 1
FORM OF PURCHASE ORDER
PURCHASE ORDER PURSUANT TO MASTER TERMINALLING AGREEMENT
This Purchase Order is entered as of ___, 20__, by and among Tesoro Refining & Marketing Company LLC, a Delaware limited liability company (“TRMC”), Tesoro Alaska Company, a Delaware corporation (“TAK” and, together with TRMC, “Tesoro”) and Tesoro Logistics Operations LLC, a Delaware limited liability company (“TLO”), pursuant to and in accordance with the terms of the Amended and Restated Master Terminalling Agreement dated as of February 22, 2013, among such parties (the “Agreement).
Capitalized terms not otherwise defined herein shall have the meaning set forth in the Agreement.
Pursuant to Section 5 of the Agreement, the parties hereto agree to the following provisions:
[Insert applicable provisions:
Allocation of storage and throughput capacity for separate Products at each Terminal:
Per-Barrel fees for the volumes Tesoro throughputs at the Terminals:
Dedicated storage tanks and applicable fees:
Allocation of excess capacity and applicable fees:
Ancillary Services and applicable fees:
Surcharges pursuant to Section 6 of the Agreement:
Capital expenditures and related costs subject to reimbursement pursuant to Section 9;
Cleaning of tanks or the conversion of a dedicated tank to storage of a different Product pursuant to Section 9 of the Agreement and applicable fees:
Special or proprietary additive injection services or higher additive injection rates pursuant to Sections 16 and 18 and the fees for such services:
Fees for lubricity and conductivity additive and injection services (including for DCA injection) pursuant to Section 17 or 18 of the Agreement:
Fees for operation of special additive equipment pursuant to Section 20:
Receipt, storage and blending of ethanol into Tesoro's gasoline pursuant to Section 21:
Periodic software updates, replacement of loading systems or software or other upgrades pursuant to Section 22 and applicable costs:

Dedicated storage to be provided and applicable fees:
Other:]
Except as set forth in this Purchase Order, the other terms of the Agreement shall continue in full force and effect and shall apply to the terms of this Purchase Order.

IN WITNESS WHEREOF, the parties hereto have duly executed this Purchase Order as of the date first written above.
	
						
	TESORO ALASKA COMPANY
	 
	TESORO REFINING & MARKETING COMPANY LLC

	 
	 
	 
	 
	 
	 

	By: 
	 
	 
	By: 
	 

	 
	Gregory J. Goff
	 
	 
	Gregory J. Goff

	 
	President
	 
	 
	President

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	TESORO LOGISTICS OPERATIONS LLC
	 
	 

	 
	 
	 
	 
	 
	 

	By: 
	TESORO LOGISTICS LP,
	 
	 
	 

	               
	its sole member
	 
	 
	 

	 
	 
	 
	 
	 
	 

	By: 
	TESORO LOGISTICS GP, LLC,
	 
	 
	 

	               
	its general partner
	 
	 
	 

	 
	 
	 
	 
	 
	 

	By: 
	 
	 
	 
	 

	 
	Phillip M. Anderson
	 
	 
	 

	 
	President
	 
	 
	 

EXHIBIT 2
SHORTFALL PAYMENTSexh10axx.htm

	
Return by  Mail ( x  )  Pickup (   )  To:

Bilzin Sumberg Baena Price & Axelrod LLP

200 South Biscayne Boulevard, Suite 2500

Miami, Florida 33131-5340

Attn:  Post-Closing Department                                                                                                                                                                                                       This document contains 47  pages

Tax Map Key No.: (1) 8-6-001-005; 055 and 045

NOTE AND MORTGAGE

 ASSUMPTION AGREEMENT

(MSCI 2006-IQ11; Loan No. 710202870)

THIS NOTE AND MORTGAGE ASSUMPTION AGREEMENT ("Agreement") is executed JAN 15___, 2013, effective as of JAN 22__, 2013 (the "Effective Date"), and is entered into among U.S. BANK NATIONAL ASSOCIATION, A NATIONAL BANKING ASSOCIATION ORGANIZED AND EXISTING UNDER THE LAWS OF THE UNITED STATES OF AMERICA, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY IN ITS CAPACITY AS TRUSTEE FOR MORGAN STANLEY CAPITAL I INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-IQ11 ("Lender"), having an address at 190 South LaSalle Street, 7th Floor, Mail Station: MK-IL-SL7R, Corporation Trust Services, Chicago, IL 60603, Re: MSCI 2006-IQ11; Loan No 710202870; TNP SRT WAIANAE MALL, LLC, a Delaware limited liability company ("Current Borrower"), having an address at 1900 Main Street, Suite 700, Irvine, California  92614 and A&B WAIANAE LLC, a Delaware limited liability company ("New Borrower"), having an address at 822 Bishop Street, Honolulu, Hawaii  96813.  Current Borrower and New Borrower are hereinafter sometimes collectively referred to as "Borrower Parties".

 

PRELIMINARY STATEMENT

 

A. Current Borrower is the current owner of fee title to that certain real property ("Land") and the buildings and improvements thereon ("Improvements"), commonly known as "Waianae Mall" located in the City and County of Honolulu, State of Hawaii, more particularly described in Exhibit A attached hereto and made a part hereof (the Land and the Improvements are hereinafter sometimes collectively referred to as the "Project").

 

B. Lender is the current owner and holder of a loan ("Loan") in the original principal amount of $22,200,000.00, as evidenced and/or secured by the documents described on Exhibit B attached hereto (together with any and all other agreements, documents, instruments evidencing, securing or in any manner relating to the Loan, as all of the same may be amended, restated, supplemented or otherwise modified from time to time, shall hereinafter be collectively referred to as the "Loan Documents").  The Loan is secured in part by the Project, which Project is described in and encumbered by the "Security Instrument" described on Exhibit B.

 

C. New Borrower desires to purchase the Project from Current Borrower and to assume Current Borrower's obligations under the Loan Documents (except for items 7, 8, 9 and 11 as shown on Exhibit B) as provided herein.

 

D. A sale of the Project to, and the assumption of the Loan by, a third party without the consent of the holder of the Security Instrument is prohibited by the terms thereof.

 

E. The Lender has agreed to consent to the following requested actions (collectively the "Requested Actions"): (i) Current Borrower selling the Project to New Borrower, and (ii) New Borrower assuming all of Current Borrower's obligations under the Loan Documents (except for items 7, 8, 9 and 11 as shown on Exhibit B), on the terms and conditions hereinafter set forth.

 

In consideration of $10.00 paid by each of the parties to the other, the mutual covenants set forth below, and other good and valuable consideration, receipt and sufficiency of which are acknowledged, the parties agree as follows:

 

ARTICLE 1

 

 

ACKNOWLEDGMENTS, WARRANTIES AND REPRESENTATIONS

 

1.1 Current Borrower Representations.  As a material inducement to Lender and New Borrower to enter into this Agreement and to consent to the Requested Actions, Current Borrower acknowledges, warrants, represents and agrees to and with Lender as follows:

 

(a) Incorporation of Recitals.  All of the facts set forth in the Preliminary Statement of this Agreement are true and correct and incorporated into this Agreement by reference.

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

  

  

  

(b) Authority of Current Borrower.

 

(i) Current Borrower.  Current Borrower is a duly organized, validly existing limited liability company in good standing under the laws of the State of Delaware and is qualified to transact business in the State of Hawaii.  TNP Strategic Retail Operating Partnership ("Current Borrower Member") is the sole member of Current Borrower.  Current Borrower Member, acting alone without the joinder of any manager of Current Borrower or any other party, has the power and authority to execute this Agreement on behalf of and to duly bind Current Borrower under this Agreement.  The execution and delivery of, and performance under, this Agreement by Current Borrower have been duly and properly authorized pursuant to all requisite limited liability company action and will not (x) violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to Current Borrower or the articles of organization, certificate of formation, operating agreement, limited liability company agreement or any other organizational document of Current Borrower or (y) result in a breach of or constitute or cause a default under any indenture, agreement, lease or instrument to which Current Borrower is a party or by which the Project may be bound or affected.

 

(ii) Current Borrower Member.  Current Borrower Member is a duly organized, validly existing limited partnership in good standing under the laws of the State of Delaware and is not required by law to become qualified to conduct business in the State of Hawaii.  TNP Strategic Retail Trust, Inc. ("Current Borrower Member's GP") is the sole general partner of Current Borrower Member.  Current Borrower Member's GP, acting alone without the joinder of any other partner of Current Borrower Member or any other party, has the power and authority to execute this Agreement on behalf of and to duly bind Current Borrower Member and Current Borrower under this Agreement.  The execution and delivery of, and performance under, this Agreement by Current Borrower Member have been duly and properly authorized pursuant to all requisite partnership action and will not (x) violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to Current Borrower Member or the certificate of limited partnership or the limited partnership agreement or any other organizational document of Current Borrower Member or (y) result in a breach of or constitute or cause a default under any indenture, agreement, lease or instrument to which Current Borrower Member is a party or by which the Project may be bound or affected.

 

(iii) Current Borrower Member's GP.  Current Borrower Member's GP is a duly organized, validly existing corporation in good standing under the laws of the State of Maryland and is not required by law to become qualified to conduct business in the State of Hawaii.  Dee R. Balch ("Authorized Officer") as the CFO of Current Borrower Member's GP.  Authorized Officer, acting alone without the joinder of any other officer, director or shareholder of Current Borrower Member's GP or any other party, has the power and authority to execute this Agreement on behalf of and to duly bind Current Borrower Member's GP, Current Borrower Member and Current Borrower under this Agreement.  The execution and delivery of, and performance under, this Agreement by Authorized Officer on behalf of Current Borrower Member's GP have been duly and properly authorized pursuant to all requisite corporate action and will not (x) violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to Current Borrower Member's GP or the articles of incorporation or bylaws or any other organizational document of Current Borrower Member's GP or (y) result in a breach of or constitute or cause a default under any indenture, agreement, lease or instrument to which Current Borrower Member's GP is a party or by which the Project may be bound or affected.

 

(c) Compliance with Laws.  To Current Borrower's knowledge, all permits, licenses, franchises or other evidences of authority to use and operate the Project as it is presently being operated and as contemplated by the Loan Documents are current, valid and in full force and effect.  Current Borrower has not received any written notice from any governmental entity claiming that Current Borrower or the Project is not presently in compliance with any laws, ordinances, rules and regulations bearing upon the use and operation of the Project, including, without limitation, any notice relating to any violations of zoning, building, environmental, fire, health, or other laws, ordinances, rules, codes or regulations.

 

(d) Rent Roll.  The Rent Roll ("Rent Roll") attached hereto and made a part hereof as Exhibit C is a true, complete and accurate summary of all tenant leases ("Leases") affecting the Project as of the date of this Agreement.

 

(e) Leases.  The Leases are the only leases affecting the Project and are currently in full force and effect.  Current Borrower has not been notified of any landlord default under any of the Leases; there are no leasing broker's or finder's commissions of any kind due or to become due with respect to the Leases or the Project, other than those due in connection with the Longs Drug Store and the Ark of Safety expansions; the rents and security deposits under the Leases shown on the Rent Roll are true and correct; Current Borrower has not received any prepaid rents, except for the $816.46 shown on the January Aged Delinquencies report dated January 16, 2013, or given any concessions for free or reduced rent under the Leases and will not accept any prepaid rents for more than one month in advance; the Longs Drug Store expansion does not require the landlord to perform, or reimburse tenant for performing, any tenant improvement or related work.  All tenants at the Project are currently in possession of and are operating businesses from their leased premises.

 

(f) Title to Project and Legal Proceedings.  Current Borrower is the current owner of fee title in the Project.  There are no pending or threatened suits, judgments, arbitration proceedings, administrative claims, executions or other legal or equitable actions or proceedings against Current Borrower or the Project, or any pending or threatened condemnation proceedings or annexation proceedings affecting the Project, or any agreements to convey any portion of the Project, or any rights thereto to any person, entity, or government body or agency not disclosed in this Agreement.

 

(g) Loan Documents.  The Loan Documents constitute valid and legally binding obligations of Current Borrower enforceable against Current Borrower, as limited herein, and the Project in accordance with their terms. Current Borrower acknowledges and agrees that nothing contained in this Agreement, nor the Requested Actions, shall release or relieve Current Borrower from its obligations, agreements, duties, liabilities, covenants and undertakings under the Loan Documents arising prior to the date hereof.  Current Borrower has no defenses, setoffs, claims, counterclaims or causes of action of any kind or nature whatsoever against Lender, and Wells Fargo Bank, N.A. ("Wells Fargo") and LNR Partners, LLC ("LNR") and any and all other parties appointed and/or serving as servicers of the Loan ("Servicer"), all subsidiaries, parents and affiliates of Lender and Servicer and each of the foregoing parties' predecessors in interest, and each and all of their respective past, present and future partners, members, certificate holders, officers, directors, employees, agents, contractors, representatives, participants and heirs and each and all of the successors and assigns of each of the foregoing (collectively, "Lender Parties") or with respect to (i) the Loan, (ii) the Loan Documents, or (iii) the Project.  To the extent Current Borrower would be deemed to have any such defenses, setoffs, claims, counterclaims or causes of action as of the date hereof, Current Borrower knowingly waives and relinquishes them. Current Borrower has delivered all of the Loan Documents to New Borrower.

 

(h) Bankruptcy.  Current Borrower has no intent to (i) file any voluntary petition under any Chapter of the Bankruptcy Code, Title 11, U.S.C.A. ("Bankruptcy Code"), or in any manner to seek any proceeding for relief, protection, reorganization, liquidation, dissolution or similar relief for debtors ("Debtor Proceeding") under any local, state, federal or other insolvency law or laws providing relief for debtors, (ii) directly or indirectly cause any involuntary petition under any Chapter of the Bankruptcy Code to be filed against Current Borrower or any members thereof or (iii) directly or indirectly cause the Project or any portion or any interest of Current Borrower in the Project to become the property of any bankrupt estate or the subject of any Debtor Proceeding.

 

(i) No Default.  To Current Borrower's knowledge, no event, fact or circumstance has occurred or failed to occur which constitutes, or with the lapse or passage of time, giving of notice or both, could constitute a default or Event of Default under the Loan Documents.

 

(j) Post-Closing Agreement.  Current Borrower has complied with all obligations under the Post-Closing Agreement described in item 9 of Exhibit B, and delivered satisfactory evidence of such compliance to Lender or a predecessor to Lender.

 

(k) Reaffirmation. Current Borrower reaffirms and confirms the truth and accuracy of all representations and warranties set forth in the Loan Documents, in all material respects, as if made on the date hereof.

 

1.2 Acknowledgments, Warranties and Representations of New Borrower. As a material inducement to Lender to enter into this Agreement and to consent to the Requested Actions, New Borrower acknowledges, warrants, represents and agrees to and with Lender as follows:

 

(a) Incorporation of Recitals.  All of the facts set forth in the Preliminary Statement of this Agreement are true and correct and incorporated into this Agreement by reference.

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

 

  

  

  

(b) Authority of New Borrower.

 

(i) New Borrower.  New Borrower is a duly organized, validly existing limited liability company in good standing under the laws of the State of Delaware and is qualified to transact business in the State of Hawaii.  Alexander & Baldwin, LLC ("New Borrower Member") is the sole member and manager of New Borrower.  New Borrower Member, acting alone without the joinder of any other manager or member of New Borrower or any other party, has the power and authority to execute this Agreement on behalf of and to duly bind New Borrower under this Agreement and the Loan Documents.  The execution and delivery of, and performance under, this Agreement and the Loan Documents by New Borrower have been duly and properly authorized pursuant to all requisite company action and will not (x) violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to New Borrower or the articles of organization, certificate of formation, operating agreement, limited liability company agreement, or any other organizational document of New Borrower or (y) result in a breach of or constitute or cause a default under any indenture, agreement, lease or instrument to which New Borrower is a party or by which the Project may be bound or affected. Notwithstanding anything in the Loan Documents to the contrary, New Borrower Member is not a Special Purpose Bankruptcy Remote Entity (as such term is defined in the Loan Agreement).

 

(ii) New Borrower Member.  New Borrower Member is a duly organized, validly existing limited liability company in good standing under the laws of the State of Hawaii and is qualified to transact business in the State of Hawaii.  Nelson N.S. Chun and Charles W. Loomis ("New Borrower Member Officers") are, respectively, Senior Vice President and an Assistant Secretary of New Borrower Member. New Borrower Member Officers, acting together, without the joinder of any manager or member of New Borrower Member or any other party, has the power and authority to execute this Agreement on behalf of and to duly bind New Borrower under this Agreement and the Loan Documents.  The execution and delivery of, and performance under, this Agreement by New Borrower Member on behalf of New Borrower have been duly and properly authorized pursuant to all requisite company action and will not (i) violate any provi­sion of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to New Borrower Member or the articles of organization, certificate of formation, limited liability company agreement, or the operating agreement of New Borrower Member or any other organizational document of New Borrower Member or (ii) result in a breach of or constitute or cause a default under any indenture, agreement, lease or instrument to which New Borrower Member is a party or by which the Project may be bound or affected.

 

(c) Financial Statements.  The financial statements and other information ("Financial Statements") of Alexander & Baldwin, Inc., a Hawaii corporation ("Principal") which have been previously delivered to Lender are, to New Borrower's actual knowledge, true, complete and accurate in all material respects and accurately represent the financial condition of Principal as of the date thereof.  All of the assets shown on Principal's Financial Statements are owned by Principal, individually, as its sole and separate property, and not otherwise jointly with any other person or entity.  There has not been any material adverse change to the financial condition of Principal between the date of the Financial Statements and the date of this Agreement.  New Borrower also acknowledges and agrees to cause Principal to timely comply with all financial, bookkeeping and reporting requirements set forth in the Loan Documents, including, without limitation, those set forth in Section 6.3 of the Loan Agreement (as defined in Exhibit B attached hereto).  New Borrower acknowledges that the Financial Statements have been provided to Lender to induce Lender to enter into this Agreement and are being relied upon by Lender for such purposes.  To the extent that the balance sheets and financial statement of New Borrower are consolidated with those of New Borrower Member or Principal, that the consolidated balance sheets and financial statements will clearly identify the assets and liabilities of New Borrower as belonging to New Borrower and will provide Lender with copies of said consolidated balance sheets and financial statements.   Lender has been advised that New Borrower and New Borrower Member are disregarded entities and do not file tax returns. Lender agrees that New Borrower shall not be required to deliver tax returns to Lender, provided that Principal delivers to Lender its annual audited financial statements and any other financial statements or information required by the terms of the Guaranty, as amended by the terms hereof.

 

(d) Bankruptcy Proceedings.  None of New Borrower, New Borrower Member nor Principal nor any of New Borrower Member's or Principal's managers, members, shareholders (other than shareholders of Principal), affiliates or other entities which may be owned or controlled directly or indirectly by New Borrower, New Borrower Member or Principal (collectively, the "Related Entities") has been a party to any Debtor Proceeding  within seven (7) years prior to the date of this Agreement.

 

(e) Defaults on Other Indebtedness.  Neither New Borrower nor any of the Related Entities has materially defaulted under its or their obligations with respect to any other indebtedness.

 

(f) New Borrower's Organizational Documents.  New Borrower has not transacted any business in New Borrower's name since its formation.  New Borrower is and will continue to be in full compliance with all of its organizational documents and the single purpose entity and separateness requirements of the Loan Documents and such organizational documents do not conflict with any of such single purpose entity and separateness requirements of the Loan Documents.

 

(g) Assets of New Borrower.  The only assets of New Borrower are the Project, the personal property owned by New Borrower and used in connection with the Project and cash or cash equivalents.

 

(h) Management of Project.  New Borrower is entering into that certain Management Agreement with Colliers International Real Estate Management Services (HI), LLC, a Delaware limited liability company, doing business as Colliers International ("Project Manager") for the management of the Project (the "New Management Agreement").  The term "Management Agreement" or "management agreement" or such other similar term in the Loan Documents shall hereafter refer to the New Management Agreement.  The term "Property Manager" or such other similar term in the Loan Documents shall hereafter refer to the Project Manager.  New Borrower covenants and agrees to comply with and to cause the Project Manager to comply with all terms and conditions of the Loan Documents concerning the management of the Project, including without limitation the obligation to obtain Lender's consent to the management of the Project by any entity other than Project Manager.  Project Manager shall execute and deliver to Lender a subordination of the New Management Agreement in form acceptable to Lender.

 

(i) Loans to Related Entities.  There are no loans payable by New Borrower to any of the Related Entities or any other entities or persons.

 

(j) Non-Consolidation Opinion.  New Borrower will comply with each of the assumptions made with respect to it in that certain substantive non-consolidation opinion letter, dated the date hereof, delivered by New Borrower's counsel in connection with the Requested Actions (the "Non-Consolidation Opinion"), including but not limited to, any exhibits attached hereto, any certificates referred to therein and any subsequent non-consolidation opinion delivered in accordance with the terms and conditions of the Security Instrument.  New Borrower has caused and shall cause each entity other than New Borrower with respect to which an assumption is made in the Non-Consolidation Opinion, including but not limited to, any exhibits attached thereto, and to comply with each of the assumptions made with respect to it in the Non-Consolidation Opinion, including, but not limited to, any exhibits attached thereto, and any certificates referred to therein. All of the assumptions made in the Non-Consolidation Opinion, including, but not limited to, any exhibits attached thereto, and any certificates referred to therein are true and correct.

 

(k) New Borrower Parties' Interests.  None of New Borrower nor any of the other Related Entities is obtaining a loan to finance its direct or indirect interest in New Borrower or the Project or pledging its direct or indirect interest in New Borrower to any party, and none of the Related Entities have any right to take over direct or indirect control of New Borrower or the Project.

 

(l) Prohibited Person.  New Borrower warrants and represents, after review of the website identified below, that none of New Borrower, New Borrower Member nor Principal nor any of their respective officers, directors, shareholders (other than shareholders of Principal), members or affiliates (including the holders of indirect equity interests in New Borrower, but excluding any shareholders of Principal) is an entity or person (i) that is listed in the Annex to, or is otherwise subject to the provisions of, Executive Order 13224, issued on September 24, 2001 (“EO13224“), (ii) whose name appears on the United States Treasury Department’s Office of Foreign Assets Control (“OFAC“) most current list of “Specifically Designated Nationals and Blocked Persons“ (which list may be published from time to time in various media including but not limited to, the OFAC website, http://www.treas.gov/offices/enforcement/ofac/sdn/t11sdn.pdf, (iii) who commits, threatens to commit or supports “terrorism“, as that term is defined in EO13224, or (iv) who, to the actual knowledge of New Borrower, is otherwise affiliated with any entity or person listed above (any and all parties or persons described in clauses [i] – [iv] above are herein referred to as a “Prohibited Person“).  New Borrower covenants and agrees that none of New Borrower, New Borrower Member nor Principal nor any of their respective officers, directors, shareholders (other than shareholders of Principal), members or affiliates (including the holders of indirect equity interests in New Borrower, but excluding shareholders of Principal) will (a) knowingly conduct any business, or engage in any transaction or dealing, with any Prohibited Person, including, but not limited to, the making or receiving of any contribution of funds, goods, or services, to or for the benefit of a Prohibited Person, or (b) knowingly engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in EO13224.  New Borrower further covenants and agrees to deliver (from time to time) to Lender any such certification as may be requested by Lender in its reasonable discretion, confirming that, based on reasonable inquiry (x) none of New Borrower, New Borrower Member nor Principal nor any of their respective officers, directors, shareholders (other than shareholders of Principal), members or affiliates (including the holders of indirect equity interests in New Borrower, but excluding shareholders of Principal) is a Prohibited Person and (y) none of New Borrower, New Borrower Member nor Principal nor their respective officers, directors, shareholders (other than shareholders of Principal), members or affiliates (including the holders of indirect equity interests in New Borrower, but excluding any shareholders of Principal) has (a) knowingly conducted any business, or engaged in any transaction or dealing, with any Prohibited Person, including,  but not limited to, the making or receiving of any contribution of funds, goods, or services, to or for the benefit of a Prohibited Person or (b) knowingly engaged in or conspired to engage in any transaction that evaded or avoided, or had the purpose of evading or avoiding, or attempted to violate, any of the prohibitions set forth in EO13224.

 

(m) Loan Documents.  The Loan Documents (excluding items 5,7,8,9 and 11 on Exhibit B), from and after the date hereof, are valid and legally binding obligations of New Borrower, enforceable against New Borrower and the Project in accordance with their terms.  This Agreement and the execution of other documents contemplated hereby do not constitute the creation of a new debt or the extinguishment of the debt evidenced by the Loan Documents, nor will they in any way affect or impair the liens and security interests created by the Loan Documents, which New Borrower acknowledges to be valid and existing liens and security interests in the Project.  New Borrower agrees that the lien and security interests created by the Loan Documents continue to be in full force and effect, unaffected and unimpaired by this Agreement or by the transfer of the Project or any collateral described in financing statements filed in connection with the Loan Documents and that said liens and security interests shall so continue in their perfection and priority until the debt secured by the Loan Documents is fully discharged.  New Borrower has no defenses, affirmative defenses, setoffs, claims, counterclaims, crossclaims or causes of action of any kind or nature whatsoever against the Lender Parties with respect to (i) the Loan, (ii) the Debt (as such term is defined in the Loan Agreement), (iii) the Loan Documents, or (iv) the Project.  To the extent New Borrower would be deemed to have any such defenses, affirmative defenses, setoffs, claims, counterclaims, crossclaims or causes of action as of the date hereof, New Borrower knowingly waives and relinquishes them.  New Borrower acknowledges that it has received copies of all of the Loan Documents (excluding items 5,7,8,9 and 11 on Exhibit B).

 

(n) No Default.  To New Borrower's actual knowledge, except as set forth in this Agreement, no event, fact or circumstance has occurred or failed to occur which constitutes, or with the lapse or passage of time, giving of notice or both, could constitute a default or Event of Default under the Loan Documents.

 

(o) Inspections.  Other than that certain Property Condition Assessment for the Project dated December 21, 2012, prepared by Marx/Okubo Associates, Inc. under Project No. 12-9228 (the "PCA"), that certain Phase 1 Environmental Site Assessment for the Project dated December 20, 2012, prepared by Bureau Veritas North America, Inc. under Project No. 17012-012175.00 (the "Phase 1") and that certain Limited Phase II Environmental Investigation for the Project dated January 10, 2013, prepared by Bureau Veritas North America, Inc. under Project No. 17012-012175.00 (the "Phase II"), New Borrower has not obtained any other written inspection reports relating to the Project.  Additionally, New Borrower has not obtained any tenant estoppel certificates from the tenants located at the Project that have not been delivered to Lender.

 

(p) Subdivision and Designation of Easements.  New Borrower may undertake the subdivision and designation of the easements granted in Documents 732618, 773920 and 200769 filed in the Records (as defined in Exhibit B attached hereto). Such subdivision and designation of the easements shall not expand, enlarge, limit, amend or other- wise modify or affect the scope, purpose, location, or size of the easement. The only purpose of such subdivision and designation is to ensure that such easements will be recognized by the Land Court of the State of Hawaii.

 

(q) Reaffirmation. To New Borrower's actual knowledge, New Borrower affirms and confirms the truth and accuracy of all representations and warranties set forth in the Loan Documents, in all material respects, as if made on the date hereof provided, however, that Lender has been advised that Alexander & Baldwin, Inc., is a publicly traded corporation and therefore is unable to make any representations regarding and on behalf of its shareholders.

 

ARTICLE 2

 

 

ACKNOWLEDGMENTS AND COVENANTS OF BORROWER PARTIES

 

As a material inducement to Lender to enter into this Agreement and to consent to Requested Actions each of Borrower Parties, as to itself only, acknowledges, warrants, represents, covenants and agrees to and with Lender as follows:

 

2.1 Assumption of Loan.  New Borrower hereby assumes the indebtedness due under the Note (as defined in Exhibit B attached hereto), the Loan and all of Current Borrower’s other obligations, as grantor, mortgagor, borrower, assignor, trustor, indemnitor, guarantor, or maker, as the case may be, under the Loan Documents to the same extent as if New Borrower had signed such instruments.  New Borrower agrees to comply with and be bound by all the terms, covenants and agreements, conditions and provisions set forth in the Loan Documents.

 

2.2 Indebtedness.  As of January 11, 2013, the outstanding principal balance of the Loan was $19,716,932.89 and the following escrow and reserve balances (collectively, "Escrow Balances") are being held by Lender: (a) a tax escrow balance of $153,930.15; (b) an insurance escrow balance of $55,717.10; (c) a capital reserve balance of $9,531.91; (d) a tenant reserve balance of $190,063.82; and (d) a deferred maintenance reserve of $37.44.  Further, Borrower Parties acknowledge and agree that Lender will continue to hold the Escrow Balances for the benefit of New Borrower in accordance with the terms of the Loan Documents.  In the event of any error in,  or omission from, the foregoing, Lender shall not be prejudiced, limited, or estopped, in any way in its right to charge, collect and receive any and all monies lawfully due Lender under the Loan Documents.  By its execution hereof, Lender represents and warrants to New Borrower that to Lender's actual knowledge (i) the amounts set forth above are correct, (ii) Lender has not issued any written notices of default to Current Borrower which have not been cured, and (iii) there are no existing material defaults under the Loan Documents, other than any defaults that may arise or may have arisen based on Current Borrower's failure to comply with the terms of Section 3.2 of the 2010 Assumption Agreement (as defined on Exhibit B attached hereto).

 

2.3 Assumption Fee.  Simultaneously with or prior to the execution hereof, any or both of Borrower Parties shall pay to or has paid Lender: (i) an application fee equal to $5,000.00, (ii) an assumption fee equal to $98,584.66, which is 0.5% of the outstanding principal balance of the Loan; (iii) a consent fee equal to: $49,292.33; (iv) a consent fee in the amount of $50,000.00 to be paid by Current Borrower; (v) an administration fee equal to $125.00; (vi) a flood determination fee equal to $15.00; (vii) a credit review fee equal to $590.00; and (viii) an insurance review fee equal to $400.00, each of which Borrower Parties agrees are fees for new consideration and are not interest charged in connection with the Loan.

 

2.4 Payment of Transaction Costs and Expenses.  Any or both of Borrower Parties shall pay at the time of execution of this Agreement by Lender:  (a) the legal fees and disbursements of Lender's counsel, Bilzin Sumberg Baena Price & Axelrod LLP, in connection with the preparation of this Agreement and the transactions contemplated in this Agreement; (b) all recording costs and documentary stamps, or other taxes if any, due upon the recording of this Agreement; and (c) the costs of updating Lender's policy of title insurance insuring the Security Instrument to a current date and endorsing such policy to include this Agreement in the description of the Security Instrument with no additional exceptions, or, at Lender's option, the cost of obtaining a new Lender's policy of title acceptable to Lender insuring the Loan Documents as affected by this Agreement.

 

2.5 Information.  All information provided to Lender, Wells Fargo,  LNR or any other Servicer of the Loan by or on behalf of any of Borrower Parties, Current Indemnitor (as hereinafter defined), New Indemnitor (as hereinafter defined) or any of their respective employees, officers, directors, partners, members, managers or representatives, in connection with or relating to (i) the Requested Actions, (ii) this Agreement or the transactions contemplated hereby or (iii) the Project, contains no untrue statement of material fact and does not omit a material fact necessary in order to make such information not misleading, and the provision of any such information by  Lender or any Servicer,  including, but not limited to, Master Servicer or LNR, to any rating agency is expressly consented to by Borrower Parties, Current Indemnitor and  New Indemnitor will not infringe upon or violate any intellectual property rights of any party.  Borrower Parties, Current Indemnitor and  New Indemnitor by their execution of this Agreement or the Joinders attached hereto, jointly and severally, agree to reimburse, indemnify and hold Lender Parties harmless from and against any and all liabilities, judgments, costs, claims, damages, penalties, expenses, losses or charges (including, but not limited to, all legal fees and court costs) (collectively, “Indemnification Costs”), which may now or in the future be undertaken, suffered, paid, awarded, assessed or otherwise incurred as a result of or arising out of any breach or inaccuracy of the foregoing representations and warranties or any fraudulent or tortuous conduct of any Borrower Parties, Current Indemnitor and  New Indemnitor in connection with the Requested Actions, this Agreement or the transactions contemplated hereby, or the Project, including the misrepresentation of financial data presented to Lender or any Servicer.

 

2.6 Release and Covenant Not To Sue.  Each of Borrower Parties, as to itself and all of its heirs, successors and assigns only, remises, releases, acquits, satisfies and forever discharges Lender Parties from any and all manner of debts, accountings, bonds, warranties, representations, covenants, promises, contracts, controversies, agreements, liabilities, obligations, expenses, damages, judgments, executions, actions, inactions, claims, demands and causes of action of any nature whatsoever, whether at law or in equity, whether known or unknown, either now accrued or subsequently maturing, which any of Borrower Parties now has or hereafter can, shall or may have by reason of any matter, cause or thing, from the beginning of the world to and including the date of completion of the Requested Actions ("Acquisition Date"), including, without limitation, matters arising out of or relating to (a) the Loan, (b) the Loan Documents, (c) the Debt, (d) the Project, and (e) any other agreement or transaction between Borrower Parties or any one of them and any of Lender Parties concerning matters arising out of or relating to the items set forth in subsections (a) – (d) above.  Each of Borrower Parties, as to itself and all of its respective heirs, successors and assigns only, covenants and agrees never to institute or cause to be instituted or continue prosecution of any suit or other form of action or proceeding of any kind or nature whatsoever against any of Lender Parties by reason of or in connection with any of the foregoing matters, claims or causes of action.

 

2.7 Further Assurances.  Borrower Parties shall execute and deliver to Lender such agreements, instruments, documents, financing statements and other writings as may be requested from time to time by Lender to perfect and to maintain the perfection of Lender's security interest in and to the Project, and to consummate the transactions contemplated by or in the Loan Documents and this Agreement.

ARTICLE 3

 

 

ADDITIONAL PROVISIONS

 

3.1 Modifications to Loan Agreement.  For so long as New Borrower owns the Project and Principal controls New Borrower, the following modifications to the Loan Agreement shall apply:

 

(a) Control.  The reference to forty-nine percent (49%) in the definition of "Control" set forth in Section 1.1.2 of the Loan Agreement is hereby revised to read "fifty-one percent (51%)."

 

(b) Borrower Representative.   The references to “Borrower Representative” in the Loan Agreement shall be changed to be New Borrower Member, provided, however, that the reference to "Borrower Representative" in Section 5.12 of the Loan Agreement shall be deleted in its entirety.

 

(c) Guarantor.  The definition of the term "Guarantor" set forth in Section 1.1. of the Loan Agreement shall hereafter mean and refer to Alexander & Baldwin, Inc., a Hawaii corporation.

 

(d) Key Principal.  The definition of the term "Key Principal" shall hereafter mean and refer to Alexander & Baldwin, Inc., a Hawaii corporation.

 

(e) Capital Expense Reserve Subaccount.  Commencing with the first Payment Date following the date hereof, the monthly payment into the Capital Reserve Subaccount shall be increased to $69,114.00 per month which shall be due and payable on each Payment Date (as such term is defined in the Loan Agreement) in accordance with Section 3.4 of the Loan Agreement.

 

(f) Foundation Escrow. New Borrower shall complete the remediation work being undertaken by Current Borrower to repair the foundation of the American Savings Bank (the "Foundation Work").  Lender has been advised that the parties have agreed that the cost to complete the Foundation Work is $292,555.00 (the "Foundation Escrow").  Simultaneously with its execution hereof, New Borrower agrees to deposit with Lender the Foundation Escrow. Lender shall deposit the Foundation Escrow into the Capital Reserve Subaccount (as such term is defined in the Loan Agreement) held by Lender or Servicer, and such funds shall be deemed to constitute part of the "Capital Reserve Subaccount" as described in and for all purposes under Section 3.4, 3.9 and any other applicable provision of the Loan Agreement.  Notwithstanding anything in this Agreement or the Loan Documents to the contrary, the Foundation Escrow shall be disbursed in accordance with Section 3.4 of the Loan Agreement. Any funds in the Foundation Escrow not used to complete the Foundation Work shall be returned by Lender to New Borrower upon acceptance by Lender of satisfactory evidence of the full and timely completion of such Foundation Work.

 

(g) Immediate Capital Needs.

 

(i) Simultaneously with the execution hereof, New Borrower shall deposit with Lender the sum of Fifty Thousand and 00/100 Dollars ($50,000.00) (the "Immediate Capital Needs Deposit") as additional security for the payment of the Debt and performance by New Borrower of all other terms, conditions and provisions of the Loan Documents.  Lender has been advised, and New Borrower hereby represents and warrants to Lender, that the Capital Needs Deposit represents 125% of the amount necessary for New Borrower to the Immediate Deferred Maintenance and Capital Costs described in the PCA (the "Immediate Capital Needs"). Lender shall deposit the Immediate Capital Needs Deposit into the Capital Reserve Subaccount held by Lender or Servicer and such funds shall be deemed to constitute part of the "Capital Reserve Subaccount" as described in and for all purposes under Section 3.4, 3.9 and any other applicable provision of the Loan Agreement.  Notwithstanding anything in this Agreement or the Loan Documents to the contrary, the Immediate Capital Needs Deposit shall be disbursed in accordance with Section 3.4 of the Loan Agreement.

 

(ii) Except to the extent required to correct the Unsafe Conditions (as defined below) or any other conditions that cause a violation of the terms of any of the Loan Documents with respect to the maintenance of the Project, within three hundred sixty five (365) days from the date hereof, New Borrower shall commence, and provide Lender with satisfactory evidence of such commencement of, the Immediate Capital Needs described in the PCA.  Within ninety (90) days from the date hereof, New Borrower shall complete or cause the completion of the Foundation Work.  If the Immediate Capital Needs cannot be completed within said 365-day period, or if the Foundation Work cannot be completed within said 90-day period despite diligent efforts by New Borrower to achieve the same, then and in either of such events, upon written request (accompanied by satisfactory evidence that New Borrower has been exercising diligent efforts to timely complete the Foundation Work and/or the Immediate Capital Needs, as applicable), Lender shall extend the time period to complete any then remaining and outstanding Immediate Capital Needs or the Foundation Work so long as New Borrower continues to use diligent efforts to complete or cause the completion of any such remaining Immediate Capital Needs and the Foundation Work, and provide Lender with evidence of such efforts, but in no event shall such extended period exceed a period of three (3) months from the expiration of the 365-day period or the 90-day period, whichever is applicable.  Upon completion of the Immediate Capital Needs and the Foundation Work, New Borrower shall pay for a Lender approved inspection company ("Inspector") to inspect the Project to determine if the Immediate Capital Needs and the Foundation Work have been timely and fully completed.  If the Immediate Capital Needs or the Foundation Work have not been timely and fully completed, the Inspector shall provide a written report (the "Report") regarding the status of the Immediate Capital Needs and/or the Foundation Work, as applicable, and shall specifically outline the work necessary to complete the Immediate Capital Needs and/or the Foundation Work and a time frame for doing so.  New Borrower shall complete the Immediate Capital Needs and the Foundation Work, if applicable, set forth in the Inspector's report within the time frame set forth in the Report or New Borrower shall be in default hereunder, whereupon, Lender, in addition to all other rights and remedies for default under the Loan Documents, shall have the right, but not the obligation, to use the funds being held in any of the escrow accounts being held by Lender to complete the Immediate Capital Needs and/or the Foundation Work.

 

(iii) In addition to repairing and /or replacing the Immediate Capital Needs listed in the PCA, New Borrower shall repair and/or replace or New Borrower shall cause the repair or replacement of the items set forth in the on the Immediate Deferred Maintenance and Capital Costs Chart (the "Capital Costs Chart") in the PCA (the "Deferred Maintenance Items") within the time frames set forth on the Capital Costs Chart.  New Borrower shall promptly upon completion provide satisfactory evidence to Lender of the full and timely repair and/or replacement of such items.  If the Deferred Maintenance Items cannot be completed within the aforesaid time frames despite diligent efforts by New Borrower to achieve the same, then and in such event, the time period to complete any then remaining and outstanding Deferred Maintenance Items shall be extended so long as New Borrower continues to use diligent efforts to complete or cause the completion of any such remaining Deferred Maintenance Items and provides Lender with notice and satisfactory evidence of such diligent efforts and provided further that in event shall any such extended period exceed a period of six (6) months beyond the time frame given for such completion in the Capital Costs Chart.  Failure to fully and timely complete such repairs and/or replacements shall constitute a default under the Loan Documents.

 

(h) Rollover Reserve Subaccount.  Commencing with the first Payment Date following the date hereof, the monthly payment into the Rollover Reserve Subaccount shall be increased to $24,223.00 per month which shall be due and payable on each Payment Date (as such term is defined in the Loan Agreement) in accordance with Section 3.5 of the Loan Agreement.  In addition, from and after the date hereof, New Borrower agrees that the reference to the cap of $220,000.00 in the third sentence of Section 3.5 of the Loan Agreement is hereby increased to $600,000.00.

 

(i) Rollover Reserve Deposit

 

(i) Simultaneously with the execution hereof, New Borrower shall deposit with Lender the sum of Three Hundred Thousand and 00/100 Dollars ($300,000.00) (the "Rollover Reserve Deposit") as additional security for the payment of the Debt and performance by New Borrower of all other terms, conditions and provisions of the Loan Documents.  Lender agrees that the Rollover Reserve Deposit shall be counted towards the $600,000 cap referenced in Section (h) above.  Lender has been advised, and New Borrower hereby represents and warrants to Lender, that the Rollover Reserve Deposit represents a portion of the funds needed for leasing commissions and tenant's improvements which New Borrower will be required to pay in connection with the extension and expansion of the Long's Drug Store currently located at the Project.  Lender shall deposit the Rollover Reserve Deposit into the Rollover Reserve Subaccount held by Lender or Servicer and such funds shall be deemed to constitute part of the "Rollover Reserve Subaccount" as described in and for all purposes under Section 3.5, 3.9 and any other applicable provision of the Loan Agreement, provided, however, New Borrower acknowledges and agrees that the Rollover Reserve Deposit can only be used by New Borrower in connection with the extension and expansion of the Long's Drug Store.  Notwithstanding anything in this Agreement or the Loan Documents to the contrary, the Rollover Reserve Deposit shall be disbursed in accordance with Section 3.5 of the Loan Agreement.

 

(j) Reserve Deposits.  The deposit by New Borrower of the Immediate Capital Needs and the Rollover Reserve Deposits shall not relieve New Borrower from any of its obligations under the Loan Agreement or any of the other Loan Documents to make any deposit into any of the other Subaccounts (as such term is defined in the Loan Agreement) as required under the Loan Agreement, including, but not limited to, the monthly payments required to be deposited into the Tax and Insurance Subaccount under Section 3.3 of the Loan Agreement, Capital Reserve Subaccount under Section 3.4 of the Loan Agreement or the Rollover Reserve Subaccount under Section 3.5 of the Loan Agreement.

 

(k) Deleted Reserves.    Sections 3.11, 3.12 and 3.13 of the Loan Agreement and any and all references to such Sections or to any defined terms therein, in the Loan Agreement or in any of the other Loan Documents are hereby deleted in their entirety

 

(l) Flood Zone.  The last sentence of Section 4.14 of the Loan Agreement is hereby deleted.

 

(m) Annual Reports.  Section 6.3.2 shall be amended as follows:

 

(i) the first sentence of Section 6.3.2 of the Loan Agreement shall be deleted in its entirety and amended to read as follows:

 

Guarantor shall furnish to Lender annually within ninety (90) days after each calendar year, a complete copy of Guarantor’s audited annual financial statements prepared by an independent certified public accountant and certified by Borrower and by Guarantor in form and content reasonably acceptable to Lender, in accordance with GAAP or any other accounting method, consistently applied, and containing balance sheets and statements of profit and loss for Guarantor in such detail as Lender may reasonably request.

 

(ii) the first phrase of the second sentence of Section 6.3.2 which reads “Each such statement” shall be replaced with “For the Property, Borrower shall furnish an unaudited operating statement which statement...”

 

(n) Quarterly Reports.  Section 6.3.3, which shall be retitled "Quarterly Reports," shall be amended as follows:

 

(i) Borrower shall furnish to Lender the documents described in Section 6.3.3 within thirty (30) days after the end of each quarter instead of twenty (20) days;

 

(ii) Section 6.3.3(ii) shall be deleted in its entirety and amended to read "intentionally omitted";

 

(iii) Section 6.3.3(i) shall be amended such that Borrower shall not be required to furnish Lender with monthly operating statements.  Borrower shall only be required to furnish to Lender quarterly and year-to-date operating statements in accordance with the remainder of Section 6.3.3(i); and

 

(iv) Section 6.3.3(vii) shall be amended such that Borrower shall only be required to furnish the rent rolls on a quarterly basis and not on a monthly basis, provided, however, Lender reserves the right to reasonably request such rent rolls on a monthly basis, from time to time.

 

(o) Annual Budget.  Section 6.3.5 shall be amended as follows:

 

(i) Borrower shall be required to submit the Annual Budget by December 1st of each year; and

 

(ii) Borrower's Operating Budget shall be on an accrual basis rather than a cash and accrual basis.

 

(p) Borrower Notices.  The reference to two (2) Business days in Section 6.2(b)(i) of the Loan Agreement is hereby amended to read: "ten (10) days."

 

(q) Key Bank Credit Facility.  All references in the Loan Documents to the Key Bank Credit Facility and any obligations pertaining to the Key Bank Credit Facility are hereby deleted in their entirety.

 

(r) Ownership of Borrower. Schedule 3 referenced in Section 4.17 of the Loan Agreement is deleted in its entirety and replaced with Schedule 3 attached hereto.

 

(s) Insurance. Section 7.1 of the Loan Agreement shall be amended as follows:

 

(i) The third sentence of Section 7.1.1(a) of the Loan Agreement is hereby replaced with the following:

 

Each such insurance policy (other than Terrorism which shall be in an amount no less than $10,00,000.00 and Flood which shall be in an amount no less than $22,200,000.00) shall (i) be in an amount equal to the greater of (A) one hundred percent (100%) of the then replacement cost of the Improvements without deduction for physical depreciation, and (B) such amount as is necessary so that the insurer would not deem Borrower a co-insurer under such policies, (ii) have deductibles no greater than the lesser of $100,000 or five percent (5%) of Net Operating Income per occurrence, (iii) be paid annually in advance and (iv) contain an agreed amount replacement cost endorsement with a waiver of depreciation, and shall cover, without limitation, all tenant improvements and betterments that Borrower is required to insure pursuant to any Lease on a replacement cost basis.

 

(ii) Section 7.1.1(d)(iii) of the Loan Agreement is hereby replaced with the following:

 

iii) containing an extended reporting period of indemnity endorsement which provides that after the physical loss to the Property has been repaired, the continued loss of income will be insured until such income either returns to the same level it was prior to the loss, or the expiration of twelve (12) months from the date that the Property is damaged, whichever first occurs, and notwithstanding that the policy may expire prior to the end of such period.

 

 

(iii) Section 7.1.2(i) of the Loan Agreement is hereby replaced with the following:

 

(i) issued by companies approved by Lender and authorized to do business in the State, with a minimum AM Best rating of A-, VII;

 

 

(iv) Section 7.1.2(v)  of the Loan Agreement is hereby replaced with the following:

 

(v) be assigned as permitted under Borrower’s policies and the originals thereof delivered to Lender;

 

 

(v) The third sentence of Section 7.1.2 of the Loan Agreement is hereby replaced with the following:

 

If Borrower does not furnish such evidence and receipts at least thirty (30) days after the renewal, then Lender may, but shall not be obligated to, procure such insurance and pay the Insurance Premiums therefor, and Borrower shall reimburse Lender for the cost of such Insurance Premiums promptly on demand, with interest accruing at the Default Rate.

 

 

(vi) The fourth sentence of Section 7.1.2 of the Loan Agreement is hereby replaced with the following:

 

Borrower shall submit to Lender a copy of each Policy required under Section 7.1.1 within 90 days of its effective date.

 

 

3.2 O&M Plan.  Within ninety (90) days from the date hereof, New Borrower shall cause to be prepared and commence to implement an operations and maintenance plan (an "O&M Plan") in form and substance reasonably acceptable to Lender for maintaining the asbestos containing materials referenced in the Phase 1 and Phase II. Failure to timely commence the implementation of the approved O&M Plan shall constitute an Event of Default under the Loan Documents.

 

3.3 Legal Description. The legal description for the Project, the Premises (as such term is defined in the Security Instrument), the Property (as such term is defined in the Assignment of Leases (as defined on Exhibit B attached hereto) and any and all other similar terms for the Project in any and all other Loan Documents shall hereafter be revised to mean and refer to real property legally described on Exhibit A attached hereto.

 

3.4 City Mill Company Lease Estoppel.  New Borrower shall use diligent efforts to obtain, within ninety (90) days from the date hereof, a revised estoppel letter from City Mill Company, Limited ("City Mill"), the tenant under that certain lease (the "City Mall Lease") between Original Borrower, as landlord and City Mill, as tenant or other satisfactory evidence that City Mill no longer has any claims against the landlord under the City Mall Lease for (a) the cost of the water valve replacement which occurred in October 2005 in the amount of $37,272.00, or (b) the unsafe condition of the pavement and parking lot light fixtures in the parking lot fronting the City Mill store (the "Unsafe Conditions"). Failure to use such diligent efforts to obtain such revised estoppel letter or other satisfactory evidence shall constitute an Event of Default under the Loan Documents.

 

3.5 Consent of Lender.  Subject to the terms of this Agreement, Lender hereby consents to the Requested Actions.  Each of Borrower Parties, Current Indemnitor (as defined in the Joinder by and Agreement of Current Indemnitor attached hereto (the "Current Indemnitor Joinder")) and New Indemnitor (as hereinafter defined) agree that neither this Agreement nor Lender’s consent to the Requested Actions shall be deemed Lender’s consent or a waiver of Lender’s right to consent to any other action requiring Lender consent under the Loan Documents that may be contained in any of the documents or items delivered to Lender in connection with the Requested Actions, whether or not such documents or items were reviewed and/or accepted by Lender.  Neither this Agreement nor Lender’s consent to the Requested Actions shall constitute a modification of any of the terms or conditions of the Loan Documents, except as provided in Section 3.1 hereof.

 

3.6 Release of Current Indemnitor and Current Borrower.  By its execution hereof, Lender hereby releases (i) Current Indemnitor from its obligations under the Guaranty (as defined in Exhibit B attached hereto) in accordance with and subject to the terms of the Current Indemnitor Joinder and (ii) Current Borrower for any acts or events occurring or obligations arising under the Loan Documents after the Acquisition Date with the exception of any liability of Current Borrower based upon (a) any material misrepresentation of Current Borrower in this Agreement or any other document executed in connection herewith and/or (b) its obligations under Section 1(b) of the Guaranty as it relates to Section 10.1(c) of the Loan Agreement (the "Environmental Indemnity Obligations Under Guaranty") that are caused by Current Borrower or any of its agents or result from the existence of conditions existing prior to the Acquisition Date or migrating to or from any portion of the Project prior to the Acquisition Date, or result from a violation of Environmental Laws (as such term is defined in the Loan Agreement) prior to the Acquisition Date.

 

3.7 UCC Filings.  New Borrower hereby grants and confirms unto Lender a first lien priority security interest in all of New Borrower's assets, including but not limited to all of its (i) personal property and all of the fixtures located at the Project and (ii) the Mortgaged Property (as such term is defined in the Security Instrument) to the maximum extent permitted by the Uniform Commercial Code as enacted in the states of Hawaii and Delaware ("UCC").  Borrower Parties hereby consent to the filing of any financing statements or UCC forms required to be filed in the applicable states or any other applicable filing office, including, but not necessarily limited to, the state of organization of New Borrower and in the Bureau of Conveyances of the State of Hawaii (collectively "Filings") in order to perfect or continue the perfection of said interest and, notwithstanding anything contained in any of the Loan Documents to the contrary, in accordance with the UCC, as amended subsequent to the making of the Loan, said Filings may be made by Lender without the consent of either of the Borrower Parties.

 

3.8 References to Loan Documents.  All references to the term Loan Documents in the Security Instrument and the other Loan Documents shall hereinafter be modified to include this Agreement and all documents executed and/or required in connection with the Requested Actions.

 

ARTICLE 4

 

 

MISCELLANEOUS PROVISIONS

 

4.1 No Limitation of Remedies.  No right, power or remedy conferred upon or reserved to or by Lender in this Agreement is intended to be exclusive of any other right, power or remedy conferred upon or reserved to or by Lender under this Agreement, the Loan Documents or at law, but each and every remedy shall be cumulative and concurrent, and shall be in addition to each and every other right, power and remedy given under this Agreement, the Loan Documents or now or subsequently existing at law.

 

4.2 No Waivers.  Except as otherwise expressly set forth in this Agreement, nothing contained in this Agreement shall constitute a waiver of any rights or remedies of Lender under the Loan Documents or at law.  No delay or failure on the part of any party hereto in the exercise of any right or remedy under this Agreement shall operate as a waiver, and no single or partial exercise of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy.  No action or forbearance by any party hereto contrary to the provisions of this Agreement shall be construed to constitute a waiver of any of the express provisions.  Any party hereto may in writing expressly waive any of such party's rights under this Agreement without invalidating this Agreement.

 

4.3 Successors or Assigns.  Whenever any party is named or referred to in this Agreement, the heirs, executors, legal representatives, successors, successors-in-title and assigns of such party shall be included.  All covenants and agreements in this Agreement shall bind and inure to the benefit of the heirs, executors, legal representatives, successors, successors-in-title and assigns of the parties, whether so expressed or not.

 

4.4 Construction of Agreement.  Each party hereto acknowledges that it has participated in the negotiation of this Agreement and no provision shall be construed against or interpreted to the disadvantage of any party hereto by any court or other governmental or judicial authority by reason of such party having or being deemed to have structured, dictated or drafted such provision.  Borrower Parties at all times have had access to an attorney in the negotiation of the terms of and in the preparation and execution of this Agreement and have had the opportunity to review and analyze this Agreement for a sufficient period of time prior to execution and delivery.  No representations or warranties have been made by or on behalf of Lender, or relied upon by Borrower Parties, pertaining to the subject matter of this Agreement, other than those set forth in this Agreement.  All prior statements, representations and warranties, if any, are totally superseded and merged into this Agreement, which represents the final and sole agreement of the parties with respect to the subject matters.  All of the terms of this Agreement were negotiated at arm's length, and this Agreement was prepared and executed without fraud, duress, undue influence or coercion of any kind exerted by any of the parties upon the others.  The execution and delivery of this Agreement are the free and voluntary act of Borrower Parties.

 

4.5 Invalid Provision to Affect No Others.  If, from any circumstances whatsoever, fulfillment of any provision of this Agreement or any related transaction at the time performance of such provision shall be due, shall involve transcending the limit of validity presently prescribed by any applicable usury statute or any other applicable law, with regard to obligations of like character and amount, then ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity.  If any clause or provision operates or would prospectively operate to invalidate this Agreement, in whole or in part, then such clause or provision only shall be deemed deleted, as though not contained herein, and the remainder of this Agreement shall remain operative and in full force and effect.

 

4.6 Notices.  Notwithstanding anything to the contrary contained in any of the Loan Documents, any and all notices, elections, approvals, consents, demands, requests and responses ("Communications") permitted or required to be given under this Agreement and the Loan Documents shall not be effective unless in writing, signed by or on behalf of the party giving the same, and sent by certified or registered mail, postage prepaid, return receipt requested, or by hand delivery or a nationally recognized overnight courier service (such as FedEx), to the party to be notified at the address of such party set forth below or at such other address within the continental United States as such other party may designate by notice specifically designated as a notice of change of address and given in accordance with this Section.  Any Communications shall be effective upon the earlier of their receipt or three days after mailing in the manner indicated in this Section.  Receipt of Communications shall occur upon actual delivery but if attempted delivery is refused or rejected, the date of refusal or rejection shall be deemed the date of receipt.  Any Communication, if given to Lender, must be addressed as follows, subject to change as provided above:

 

	
                                U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE

                                c/o Wells Fargo Bank, N.A.

                                Wells Fargo Commercial Mortgage Servicing

                                1901 Harrison Street, 7th Floor

                                Oakland, California 94612

                                Re:  MSCI 2006-IQ11; Loan No.:  710202870

 

With a copy to:

 

LNR Partners, LLC

1601 Washington Avenue, Suite 700

Miami Beach, Florida 33139

Attn:           Director of Servicing

Re:  MSCI 2006-IQ11 Loan No.:  710202870

 

and, if given to Current Borrower, must be addressed as follows, notwithstanding any other address set forth in the Loan Documents to the contrary, subject to change as provided above:

 

	
TNP SRT WAIANAE MALL, LLC

1900 Main Street, Suite 700

Irvine, California  92614

Attn:  Tim O'Brien

Facsimile:  (949) 252-0212

 

 

With a copy to:

 

	
Kaplan Voekler Cunningham & Frank PLC

7 East Second Street

Richmond, Virginia  23224

Attn:  D. Zachary Grabill

Facsimile:  (804) 525-1798

 

and, if given to New Borrower, must be addressed as follows, subject to change as provided above:

 

	
A&B WAIANAE LLC

822 Bishop Street

Honolulu, Hawaii  96813

Attn:  Lance Parker

Facsimile:  (808) 525-8447

 

With a copy to:

 

	
Alexander & Baldwin, LLC

822 Bishop Street

Honolulu, Hawaii  96813

Attn:  Charles Loomis, Esq.

Facsimile:  (808) 525-6678

4.7 Governing Law.  This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State in which the Project is located.

 

4.8 Headings; Exhibits.  The headings of the articles, sections and subsections of this Agreement are for the convenience of reference only, are not to be considered a part of this Agreement and shall not be used to construe, limit or otherwise affect this Agreement.

 

4.9 Modifications.  The terms of this Agreement may not be changed, modified, waived, discharged or terminated orally, but only by an instrument or instruments in writing, signed by the Party against whom the enforcement of the change, modification, waiver, discharge or termination is asserted. Lender's consent to the Requested Actions shall not be deemed to constitute Lender's consent to any provisions of the organizational documents that would be in violation of the terms and conditions of any of the Loan Documents.

 

4.10 Time of Essence; Consents.  Time is of the essence of this Agreement and the Loan Documents.  Any provisions for consents or approvals in this Agreement shall mean that such consents or approvals shall not be effective unless in writing and executed by Lender.

 

4.11 Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which will constitute the same agreement.  Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more additional signature pages.

 

4.12 New Indemnitor Joinder.  New Indemnitor (as defined in the Joinder By and Agreement of New Indemnitor attached hereto) shall assume the obligations of Current Borrower and/or Current Indemnitor under the Guaranty pursuant to the Joinder by and Agreement of New Indemnitor attached hereto.

 

4.13 WAIVER OF TRIAL BY JURY.  BORROWER PARTIES HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE NOTE, THE SECURITY INSTRUMENT, THIS AGREEMENT, OR ANY OTHER LOAN DOCUMENT, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH.   THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER PARTIES, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE.  LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER PARTIES.

 

 

(REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

 

  

  

  

The parties have executed and delivered this Agreement as of the day and year first above written.

 

Witnesses:                                                                                             LENDER:

 

	 	
U.S. BANK NATIONAL ASSOCIATION, A NATIONAL BANKING ASSOCIATION ORGANIZED AND EXISTING UNDER THE LAWS OF THE UNITED STATES OF AMERICA, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY IN ITS CAPACITY AS TRUSTEE FOR MORGAN STANLEY CAPITAL I INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-IQ11

 

	
  

	
By:

	
LNR Partners, LLC, a Florida limited liability company, successor by statutory conversion to LNR Partners, Inc., a Florida corporation, as attorney-in-fact

 

By:              /s/ Arnold Shulkin

                           Arnold Shulkin, VP

STATE OF FLORIDA                                         )

) SS:

COUNTY OF MIAMI-DADE                            )

The foregoing instrument was acknowledged before me this 15th day of January, 2013, by Arnold Shulkin, as VP of LNR Partners, LLC, a Florida limited liability company, successor by statutory conversion to LNR Partners, Inc., a Florida corporation, on behalf of said limited liability company, as attorney-in-fact for U.S. BANK NATIONAL ASSOCIATION, A NATIONAL BANKING ASSOCIATION ORGANIZED AND EXISTING UNDER THE LAWS OF THE UNITED STATES OF AMERICA, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY IN ITS CAPACITY AS TRUSTEE FOR MORGAN STANLEY CAPITAL I INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-IQ11, on behalf of the said trust.  He x is personally known to me or _____ has produced a driver’s license as identification.

 

    /s/ Ciney Torres

    Notary Public, State of Florida

    Print Name:_Ciney Torres

My Commission Expires:05/17/16

 

[AFFIX NOTARY STAMP ABOVE]

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

  

  

  

 

The parties have executed and delivered this Agreement as of the day and year first above written.

 

Witnesses:                                                                                                           CURRENT BORROWER:

	 	
TNP SRT WAIANAE MALL, LLC,

a Delaware limited liability company

	
  

	
By:

	
TNP Strategic Retail Operating Partnership, LP, a Delaware limited partnership, its Member

By:          TNP Strategic Retail Trust, Inc.,

a Maryland corporation,

its General Partner

   By:           /s/ Dee Balch                                           

Print Name:                                                          Name:           Dee Balch                                           

Title:           CFO                                           

Print Name:                                                      

STATE OF                      California                      )

 ) SS.:

COUNTY OF                  Orange                           )

On the 11 day of January, in the year 2013, before me Thuy Nguyen, the undersigned, a Notary Public in and for said State, personally appeared Dee Balch, as CFO of TNP Strategic Retail Trust, Inc., a Maryland corporation, general partner of TNP Strategic Retail Operating Partnership, LP, a Delaware limited partnership, sole member of TNP SRT Waianae Mall, LLC, a Delaware limited liability company, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

 

/s/ Thuy Nguyen                                                               

                Notary Public, State of California                                

                My Commission Expires: 06/27/2014 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

  

  

  

The parties have executed and delivered this Agreement as of the day and year first above written.

 

                    NEW BORROWER:

 

                   A&B WAIANAE LLC,

 

                   a Delaware limited liability company

 

	
  

	
By:

	
Alexander & Baldwin, LLC,

 

	
  

	
a Hawaii limited liability company

 

	
  

	
Its Sole Member/Manager

 

By:   /s/ Nelson N.S. Chun

Nelson N.S. Chun

Its Senior Vice President

 

By:   /s/ Charles W. Loomis

Charles W. Loomis

Its Assistant Secretary

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

  

  

  

STATE OF HAWAII                                                          )

)      SS:

CITY AND COUNTY OF HONOLULU                            )

 

On this 14th day of January, 2013, before me personally appeared NELSON N. S. CHUN, to me personally known, who, being by me duly sworn or affirmed, did say that such person executed the foregoing instrument as the free act and deed of such person, and if applicable in the capacity shown, having been duly authorized to execute such instrument in such capacity.

 

	 	
/s/ Leimomi Clark                                                                         

Notary Public, State of Hawaii

Printed Name:  Leimomi Clark

My commission expires:  01/30/2016

 

(Official Stamp or Seal)

 

	
NOTARY CERTIFICATION STATEMENT

Document Identification or Description:  Note and Mortgage Assumption Agreement

Doc. Date: ___________________ or x Undated at time of notarization.

No. of Pages: 43 Jurisdiction:  First Circuit

                        (in which notarial act is performed)

/s/ Leimomi Clark                                                                  January 14, 2013

Signature of Notary                                                             Date of Notarization and

Certification Statement

Leimomi Clark                                                                                                                                               (Official Stamp or Seal)

Printed Name of Notary

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

  

  

  

STATE OF HAWAII                                                           )

)      SS:

CITY AND COUNTY OF HONOLULU                             )

 

On this 14th day of January, 2013, before me personally appeared CHARLES W. LOOMIS, to me personally known, who, being by me duly sworn or affirmed, did say that such person executed the foregoing instrument as the free act and deed of such person, and if applicable in the capacity shown, having been duly authorized to execute such instrument in such capacity.

 

	 	
/s/ Leimomi Clark                                                                         

Notary Public, State of Hawaii

Printed Name:  Leimomi Clark

My commission expires:  01/30/2016

 

 

(Official Stamp or Seal)

 

	
NOTARY CERTIFICATION STATEMENT

Document Identification or Description:  Note and Mortgage Assumption Agreement

Doc. Date: ___________________ or x Undated at time of notarization.

No. of Pages: 43 Jurisdiction:  First Circuit

                         (in which notarial act is performed)

/s/ Leimomi Clark                                                                     January 14, 2013

Signature of Notary                                                                Date of Notarization and

   Certification Statement

Leimomi Clark                                                                                                                                         (Official Stamp or Seal)

Printed Name of Notary

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

  

  

  

EXHIBIT A

 

LEGAL DESCRIPTION

 

Tax Map Key: -                                 (1) 8-6-001-005 (Lots 672-A & 514-C-2)

                (1) 8-6-001-055 (Lot 514-B-2)

All of those certain parcels of land situate at Waianae and Lualualei, District of Waianae, City and County of Honolulu, State of Hawaii, described as follows:

LOTS           672-A, area 10.000 acres, more or less, as shown on Map 75,

     514-C-2, area 1.000 acre, more or less, as shown on Map 59, and

     514-B-2, area 83,908 square feet, more or less, as shown on Map 276, together with access and utility easements over Easement "197" affecting Lot 873-A and Easement "198" affecting Lot 873-B, as set forth by Land Court Order No. 90248, filed June 21, 1988

the maps referred to herein by numbers are filed in the Office of the Assistant Registrar of the Land Court of the State of Hawaii with Land Court Application No. 1102 (amended) of Waianae Company;

Being land(s) described in Transfer Certificate of Title No. 1054608 issued to A&B Waianae LLC, a Delaware limited liability company.

BEING THE PREMISES ACQUIRED BY LIMITED WARRANTY DEED

GRANTOR:                              TNP SRT WAIANAE MALL, LLC, a Delaware limited liability company

GRANTEE:                               A&B WAIANAE LLC, a Delaware limited liability company

DATED:                                    January 22, 2013

RECORDED:                             Land Court Document No. T-8422249

Tax Map Key:- (1) 8-6-001-045 (Lot 672-B-1)

All of that certain parcel of land situate at Waianae and Lualualei, District of Waianae, City and County of Honolulu, State of Hawaii, described as follows:

Lot 672-B-1, area 2.689 acres, more or less, as shown on Map 386, filed in the Office of the Assistant Registrar of the Land Court of the State of Hawaii with Land Court Application No. 1102 (amended) of Waianae Company;

Being land(s) described in Transfer Certificate of Title No. ___1054608_____ issued to A&B Waianae LLC, a Delaware limited liability company.

BEING THE PREMISES ACQUIRED BY LIMITED WARRANTY DEED

GRANTOR:                                TNP SRT WAIANAE MALL, LLC, a Delaware limited liability company

GRANTEE:                                A&B WAIANAE LLC, a Delaware limited liability company

DATED:                                     January 22, 2013

 

               RECORDED:                              Land Court Document No.  T-8422249

 

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

  

  

  

 

EXHIBIT B

 

LOAN DOCUMENTS

 

1. Promissory Note dated September 19, 2005, in the principal amount of $22,200,000.00, executed by West Oahu Mall Associates LLC, a Hawaii limited liability company ("Original Borrower") in favor of IXIS Real Estate Capital Inc. ("Original Lender"), and endorsed to the order of Lender, the obligations of Original Borrower thereunder being assumed by Current Borrower pursuant to the terms of that certain Note and Mortgage Assumption Agreement (the "2010 Assumption Agreement") dated as of May 28, 2010, effective as of June 4, 2010, by and among Bank of America, N.A., a national banking association, successor by merger to LaSalle Bank National Association, as Trustee for Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through Certificates, Series 2006-IQ11 ("2010 Lender"), Original Borrower and Current Borrower, filed on June 8, 2010, with the Office of the Assistant Registrar of the Land Court, State of Hawaii (the "Records"), as Document No. 3969395 (the "Note").

 

2. Mortgage, Assignment of Leases and Rents and Security Agreement dated as of September 19, 2005, executed by Original Borrower in favor of Original Lender and recorded September 19, 2005 as Document No. 3328441 filed in the Records, the obligations of Original Borrower thereunder being assumed by Current Borrower pursuant to the terms of the 2010 Assumption Agreement and assigned to Lender ("Security Instrument").

 

3. Loan Agreement dated as of September 19, 2005, by and between Original Borrower in favor of Original Lender, the obligations of Original Borrower thereunder being assumed by Current Borrower pursuant to the terms of the 2010 Assumption Agreement and assigned to Lender (the "Loan Agreement").

 

4. Assignment of Leases and Rents dated as of September 19, 2005, executed by Original Borrower in favor of Original Lender and filed on September 19, 2005 as Document No. 3328442 in the Records, the obligations of Original Borrower thereunder being assumed by Current Borrower pursuant to the terms of the 2010 Assumption Agreement and assigned to Lender, and assigned to Lender.

 

5. UCC Financing Statement reflecting Original Borrower, as debtor, and Original Lender, as secured party and filed with the Secretary of State of Hawaii under Document No. 2005-195180 in the Bureau of Conveyances of the State of Hawaii, and assigned to Lender.

 

6. Guaranty of Recourse Obligations dated as of September 19, 2005, executed by Joseph Daneshgar ("Original Indemnitor") in favor of Original Lender, the obligations of Original Indemnitor thereunder being modified and assumed by Current Borrower pursuant to the terms of the Joinder by and Agreement of New Indemnitor attached to the 2010 Assumption Agreement executed by Current Indemnitors and assigned to Lender (the "Guaranty").

 

7. Consent and Subordination of Manager dated as of September 19, 2005, executed by CBI, Inc., dba Grubb & Ellis/CBI ("Grub & Ellis"), as Project Manager and Original Borrower in favor of Original Lender, and assigned to Lender.

 

8. Consent and Subordination of Manager dated as of June 4, 2010, executed by TNP Property Manager, LLC, as Property Manager and Current Borrower in favor of 2010 Lender, and assigned to Lender.

 

9. Consent and Subordination of Sub-Manager dated as of June 4, 2010, executed by Consent and Subordination of Manager dated as of September 19, 2005, executed by Grubb & Ellis, as Sub- Manager, TNP Property Manager, LLC, as Property Manager, and Current Borrower in favor of Original Lender, and assigned to Lender.

 

10. Assignment of Agreements, Licenses, Permits and Contracts dated as of September 19, 2005 (the "Assignment of Agreements") executed by Original Borrower in favor of Original Lender, the obligations of Original Borrower thereunder being assumed by Current Borrower pursuant to the terms of the 2010 Assumption Agreement, and assigned to Lender.

 

11. Post-Closing Agreement dated September 19, 2005 (the "Post-Closing Agreement") executed by Original Borrower in favor of Original Lender, and assigned to Lender.

 

 

MIAMI 3481702.7 72496/41980

 

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EXHIBIT C

 

RENT ROLL

 

(INTENTIONALLY DELETED FOR PURPOSES OF RECORDING)

 

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

  

  

  

JOINDER BY AND AGREEMENT OF CURRENT INDEMNITOR

The undersigned, TNP STRATEGIC RETAIL OPERATING PARTNERSHIP, L.P. a Delaware limited  partnership (the "TNP Operating Partnership"), TNP STRATEGIC RETAIL TRUST, INC., a Maryland corporation (the "TNP REIT"), TNP PROPERTY MANAGER, LLC, a Delaware limited liability company, ("Project Manager") and ANTHONY THOMPSON ("Thompson," together with the TNP Operating Partnership, the TNP REIT, the TNP Property Manager sometimes collectively referred to herein "Current Indemnitor") under the Guaranty executed in connection with the Loan described in the Note and Mortgage Assumption Agreement ("Agreement") to which this Joinder by and Agreement of Current Indemnitor ("Current Indemnitor Joinder") is attached, hereby represents and warrants to, and acknowledges and agrees with, Lender the following:

1. Defined Terms.  All capitalized terms used in this Current Indemnitor Joinder, unless defined herein, shall have the meanings given such terms in the Agreement.

 

2. Reaffirmation of Guaranty.  The Guaranty constitutes the valid, legally binding joint and several obligation of Current Indemnitor, enforceable against Current Indemnitor in accordance with its terms.  By Current Indemnitor's execution hereof, Current Indemnitor waives and releases any and all defenses, affirmative defenses, setoffs, claims, counterclaims and causes of action of any kind or nature which Current Indemnitor has asserted, or might assert, against any of Lender Parties which in any way relate to or arise out of the Guaranty or any of the other Loan Documents.

 

3. Agreements of Current Indemnitor.  Current Indemnitor consents to the execution and delivery of the Agreement by Current Borrower and New Borrower and agrees and acknowledges that, except as set forth in paragraph 5 below, the liability of Current Indemnitor under the Guaranty shall not be diminished in any way by the execution and delivery of the Agreement or by the consummation of any of the transactions contemplated therein, including but not limited to the Requested Actions.

 

4. Authority Representations by the Current Indemnitor.  The execution and delivery of, and performance under, this Current Indemnitor Joinder, the Guaranty by Current Indemnitor will not (a) violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to Current Indemnitor or (b) result in a breach of or constitute or cause a default under any indenture, agreement, lease or instrument to which  Current Indemnitor is a party or by which the Project may be bound or affected.

 

5. Release of Current Indemnitor under Guaranty.  Notwithstanding anything to the contrary in this Current Indemnitor Joinder, the Loan Agreement, the Security Instrument, or the other Loan Documents, each Current Indemnitor's obligations under the Guaranty shall not apply with respect to, and by acceptance of this Original Indemnitor Joinder, Lender agrees that Current Indemnitor is hereby released from any and all of Current Indemnitor's obligations (the "Guaranteed Obligations") under the Guaranty for acts or events occurring or obligations arising after the Acquisition Date, except (i) if such Guaranteed Obligations are caused by Original Borrower and/or Current Indemnitor and/or any of their agents, or (ii) for the Environmental Indemnity Obligations Under Guaranty occurring after the Acquisition Date if such Environmental Indemnity Obligations Under Guaranty are (a) caused by Current Borrower, Current Indemnitor and/or any of their agents or (b) result from the existence of conditions existing prior to the Acquisition Date or migrating to or from any portion of the Project prior to the Acquisition Date, or result from a violation of Environmental Law (as defined in the Loan Agreement) prior to the Acquisition Date.

 

 

(REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

  

  

  

The undersigned Current Indemnitor has executed and delivered this Current Indemnitor Joinder to be effective as of the date of the Agreement.

      CURRENT INDEMNITOR:

	 	
TNP STRATEGIC RETAIL OPERATING PARTNERSHIP, L.P., a Delaware limited partnership

	 	
 

By:      TNP Strategic Retail Trust, Inc.,

            a Maryland corporation,

            its General Partner

 

	 	
           By:       /s/ Dee Balch                                                                

	 	
           Name:  Dee Balch                                                           

	 	
           Title:    CFO                                                                         

 

	  
	  
	  
	  
	  
	  
	  

STATE OF                      California                                )

           ) SS.:

COUNTY OF                  Orange                                     )

The foregoing instrument was acknowledged before me this 11th  day of  January, 2013, by  Dee Balch,  as _____________ of TNP Strategic Retail Trust, Inc., a Maryland corporation, as General Partner of TNP STRATEGIC RETAIL OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, on behalf of the limited partnership.  He/She is ____ personally known to me or has produced ________________________ as identification and did not take an oath.

                /s/ Thuy Nguyen                                                                                          

                                                                            Notary Public, State of California                                

                                                                            Print Name: Thuy Nguyen

 

                                                                            My Commission Expires:  06/27/2014                                

 

 

[Notarial Seal]

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

CURRENT INDEMNITOR EXECUTION PAGE TO JOINDER

  

  

  

The undersigned Current Indemnitor has executed and delivered this Current Indemnitor Joinder to be effective as of the date of the Agreement.

      CURRENT INDEMNITOR:

 

	  
	  
	  
	  
	  
	  
	  

	 	
TNP STRATEGIC RETAIL TRUST, INC., a         Maryland corporation

 

	 	
By:            /s/ Dee Balch                                                    

	 	
Name:       Dee Balch                                

	 	
Title:         CFO

STATE OF                      California                                 )

            ) SS.:

COUNTY OF                  Orange                                      )

The foregoing instrument was acknowledged before me this 11th day of  January, 2013, by Dee Balch, as _____________ of TNP STRATEGIC RETAIL TRUST, INC., a Maryland corporation, on behalf of the corporation.  He/She is ____ personally known to me or has produced ________________________ as identification and did not take an oath.

 

 

                                   /s/ Thuy Nguyen                                                                                                                     
                                                                            Notary Public, State of California                                

                                                                            Print Name: Thuy Nguyen

 

                                                                            My Commission Expires:  06/27/2014                                

[Notarial Seal]

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

CURRENT INDEMNITOR EXECUTION PAGE TO JOINDER

  

  

  

The undersigned Current Indemnitor has executed and delivered this Current Indemnitor Joinder to be effective as of the date of the Agreement.

      CURRENT INDEMNITOR:

 

	 	
TNP PROPERTY MANAGER, LLC,

a Delaware limited liability company

 

By:   Thompson National Properties, LLC,

         its sole member

	 	  
	 	
        By:      /s/ Anthony Thompson

	 	
        Name: Anthony Thompson

	 	
        Title:   CEO                                                      

 

	  
	  
	  
	  
	  
	  
	  

STATE OF                      California                                 )

            ) SS.:

COUNTY OF                  Orange                                      )

The foregoing instrument was acknowledged before me this 11 day of  January, 2013, by  Anthony W. Thompson , as _____________ of Thompson National Properties, LLC, a Delaware limited liability company, as sole member of TNP PROPERTY MANAGER, LLC, a Delaware limited liability company, on behalf of the limited liability company.  He/She is ____ personally known to me or has produced California DL as identification and did not take an oath.

                                  /s/ Bhriza Camacho

                              Notary Public, State of California 

                               Print Name: Bhirza Camacho

                                   

                                                My Commission Expires: 11/16/16                                

[Notarial Seal]

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

CURRENT INDEMNITOR EXECUTION PAGE TO JOINDER

  

  

  

The undersigned Current Indemnitor has executed and delivered this Current Indemnitor Joinder to be effective as of the date of the Agreement.

	  
	  
	  
	  
	  
	  
	  

CURRENT INDEMNITOR:

	 	  
	 	
/s/ Anthony Thompson

	 	
ANTHONY THOMPSON

	 	  

STATE OF                      California                      )

 ) SS.:

COUNTY OF                  Orange                          )

The foregoing instrument was acknowledged before me this 11th  day of  January, 2013, by ANTHONY THOMPSON.  He is ____ personally known to me or has produced California DL  as identification and did not take an oath.

 

                                   /s/ Bhriza Camacho

                                    Notary Public, State of California 

                                    Print Name: Bhirza Camacho                       

                                        My Commission Expires:  11/16/16                                

[Notarial Seal]

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

CURRENT INDEMNITOR EXECUTION PAGE TO JOINDER

  

  

  

JOINDER BY AND AGREEMENT OF NEW INDEMNITOR

The undersigned, ALEXANDER & BALDWIN, INC., a Hawaii corporation ("New Indemnitor"), being the Principal referred to in the Agreement to which this Joinder (the "New Indemnitor Joinder") is attached, intending to be legally bound under the terms and provisions of the Guaranty and pursuant to the provisions of this New Indemnitor Joinder, hereby represents and warrants to and acknowledges and agrees with Lender the following:

1. Defined Terms.  All capitalized terms used in this New Indemnitor Joinder, unless defined herein, shall have the meanings given such terms in the Agreement.

 

1. Benefit to New Indemnitor.  New Indemnitor, owning a direct and/or indirect interest in New Borrower as a result of the Requested Actions, shall receive a substantial benefit from Lender's consent to the Requested Actions.

 

2. Modifications to Guaranty.  In addition to the amendments to the Guaranty set forth in Section 3, the following modifications to the Guaranty shall apply:

 

(a)           Governing Law.  Each reference to “California” set forth in Section 9 of the Guaranty is hereby revised to read “Hawaii." and

 

(b)           California Matters.  Section 19 of the Guaranty is hereby deleted

 

3.           Assumption by New Indemnitor of Amended Guaranty.  Except as provided below with respect to the Environmental Indemnity Obligations Under Guaranty, from and after the Acquisition Date, New Indemnitor hereby assumes and agrees to be liable and responsible for and bound by all of Current Indemnitor's obligations, agreements and liabilities, including but not limited to the jury waiver and other waivers set forth therein, under the Guaranty, as amended hereby and by the terms of the Joinder by and Agreement of New Indemnitor (the "2010 Joinder") attached to the 2010 Assumption Agreement (collectively, the "Amended Guaranty"), as fully and completely as if New Indemnitor had originally executed and delivered such Amended Guaranty, as the guarantor thereunder.  New Indemnitor further agrees to pay, perform and discharge each and every obligation of payment and performance of any guarantor under, pursuant to and as set forth in the Amended Guaranty, at the time, in the manner and otherwise in all respects as therein provided.  With respect to the Environmental Indemnity Obligations Under Guaranty, the liability of New Indemnitor shall be joint and several with that of New Borrower and shall not be limited to the Environmental Indemnity Obligations Under Guaranty occurring from and after the Acquisition Date. From and after the date hereof, the Guaranty is amended to provide that all references to the term "Borrower" used in the Guaranty shall mean and refer to New Borrower and the term "Guarantor" used in the Guaranty shall mean and refer to New Indemnitor.  Except as modified by the terms of this New Indemnitor Joinder, the Amended Guaranty remains unmodified and in full force and effect.

 

4. Additional Payment Guaranty.  In addition to, and not in substitution for or modification or amendment of the Guaranty, New Indemnitor hereby absolutely, unconditionally and irrevocably guarantee to Lender the full and prompt payment of the Loan Obligations (as defined in the Security Instrument), when due, whether at stated maturity, upon acceleration, or otherwise, and at all times thereafter, provided, however, liability under the provisions of this Section 3 shall not exceed ten percent (10%) of the outstanding principal balance of the Loan upon the occurrence of an Event of Default under the Loan Agreement, plus any cost incurred by Lender in connection with the enforcement of this additional payment guaranty and/or the Loan Documents, which costs shall include, but not be limited to, attorneys fees and costs incurred by Lender at all levels of appeal and in bankruptcy of New Borrower and/or New Indemnitor (collectively, "Additional Payment Guaranty").  The 10% limitation on the debt guaranty provided herein is not intended to limit any liability of New Borrower for any Borrower Recourse Liabilities or Springing Recourse Events described in Section 10.1 of the Loan Agreement nor of New Indemnitor under the Guaranteed Obligations as defined in the Amended Guaranty.

 

5. Confirmation of Representations.  By its execution hereof, New Indemnitor confirms the representations and warranties and agrees to the covenants regarding New Indemnitor set forth in the Agreement.

 

6. Representations by New Indemnitor

 

a.   The execution and delivery of this New Indemnitor Joinder, and performance by New Indemnitor under the New Indemnitor Joinder and the Guaranty will not (a) violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to New Indemnitor or (b) result in a breach of or constitute or cause a default under any indenture, agreement, lease or instrument to which New Indemnitor is a party or by which the Project may be bound or affected

 

b. The Financial Statements of New Indemnitor which have been previously delivered to Lender are, to New Indemnitor's actual knowledge, true, complete and accurate in all material respects and accurately represent the financial condition of Principal as of the date thereof.  All of the assets shown on the Financial Statements of New Indemnitor are owned by New Indemnitor, individually, as its sole and separate property, and not otherwise jointly with any other person or entity.  There has not been any material adverse change to the financial condition of New Indemnitor  between the date of the Financial Statements and the date of this Agreement.  New Indemnitor shall timely comply with all financial, bookkeeping and reporting requirements set forth in the Loan Documents, including, without limitation, those set forth in Section 6.3 of the Loan Agreement, as amended by the terms of the Agreement.

 

c. Lender acknowledges and agrees that the representations set forth in Sections 6(d)-(f) of the 2010 Joinder are not applicable to New Indemnitor.

 

7. Notices to New Indemnitor.  From and after the Acquisition Date, Lender shall deliver any notices to New Indemnitor which are required to be delivered pursuant to the Guaranty, or are otherwise delivered by the Lender thereunder at Lender's sole discretion, to the New Indemnitor at the following address:

 

	 	
ALEXANDER & BALDWIN, INC.

	  
	 	
822 Bishop Street

	  
	 	
Honolulu, Hawaii 96813

	  
	 	
Attn:  Lance Parker

	  
	 	
Facsimile:  (808) 525-8447

	  

All notices to be sent by New Indemnitor to Lender under the Guaranty and the other Loan Documents shall be sent to Lender in the manner set forth in and at the address shown in Section 4.6 of the Agreement to which this New Indemnitor Joinder is attached.

 (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)

 

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

  

  

  

The undersigned New Indemnitor has executed and delivered this New Indemnitor Joinder to be effective as of the date of the Agreement.

 

NEW INDEMNITOR:

 

ALEXANDER & BALDWIN, INC.,

 

a Hawaii corporation

 

By:  /s/ Nelson N.S. Chun_______________

          Nelson N.S. Chun

                        Its Senior Vice President

 

By:  /s/ Charles W. Loomis                                  

          Charles W. Loomis

                        Its Assistant Secretary

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

NEW INDEMNITOR EXECUTION PAGE TO JOINDER

  

  

  

STATE OF HAWAII                                                          )

)      SS:

CITY AND COUNTY OF HONOLULU                            )

 

On this 14th day of January, 2013, before me personally appeared NELSON N.S. CHUN, to me personally known, who, being by me duly sworn or affirmed, did say that such person executed the foregoing instrument as the free act and deed of such person, and if applicable in the capacity shown, having been duly authorized to execute such instrument in such capacity.

 

	 	
/s/ Leimomi Clark                                                                         

Notary Public, State of Hawaii

Printed Name:  Leimomi Clark

My commission expires:  1/30/2016

 

 

(Official Stamp or Seal)

 

	
NOTARY CERTIFICATION STATEMENT

Document Identification or Description:  Joinder By and Agreement of New Indemnitor

Doc. Date: ___________________ or  x Undated at time of notarization.

No. of Pages: 6                                                                           Jurisdiction:  First Circuit

                                     (in which notarial act is performed)

/s/ Leimomi Clark                                                                       January 14, 2013                

Signature of Notary                                                                  Date of Notarization and

     Certification Statement

Leimomi Clark                                                                                                                               (Official Stamp or Seal)

Printed Name of Notary

 

 

MIAMI 3481702.7 72496/41980

 

EXECUTION COPY

  

  

  

STATE OF HAWAII                                                           )

)      SS:

CITY AND COUNTY OF HONOLULU                            )

 

On this 14th day of January, 2013, before me personally appeared Charles W. Loomis, to me personally known, who, being by me duly sworn or affirmed, did say that such person executed the foregoing instrument as the free act and deed of such person, and if applicable in the capacity shown, having been duly authorized to execute such instrument in such capacity.

 

	 	
/s/ Leimomi Clark                                                                         

Notary Public, State of Hawaii

Printed Name:  Leimomi Clark

My commission expires:  01/30/2016

 

(Official Stamp or Seal)

 

	
NOTARY CERTIFICATION STATEMENT

Document Identification or Description:  Joinder By and Agreement of New Indemnitor

Doc. Date: ___________________ or  x Undated at time of notarization.

No. of Pages: __6________                                              Jurisdiction:  First Circuit

                                (in which notarial act is performed)

/s/ Leimomi Clark                                                                   January 14, 2013                           

Signature of Notary                                                             Date of Notarization and

Certification Statement

Leimomi Clark                                                                                                                                         (Official Stamp or Seal)

Printed Name of Notary

-  -

ImanageDB:2294234.10

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