Document:

Melbourne Tower Lease, dated November 22, 2005

 EXHIBIT 10.18 
 MELBOURNE TOWER 
 LEASE 
 1. PARTIES. This Lease bearing formal date of November 22, 2005 is made by and between DONCASTER INVESTMENTS NV, INC., a Delaware corporation, or assignee, (herein called
“Landlord”), and HQ SUSTAINABLE MARITIME INDUSTRIES, INC. a Delaware corporation (herein called “Tenant”). Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the following described premises according
to the terms and conditions set forth below. Landlord also grants to Tenant, the non-exclusive right in common with other tenants to use all common elements and common facilities located at the Property (as hereinafter defined). 
 2. PREMISES. 
  

	 	2.1	Description. The Premises consist of approximately 4,170 square feet in Suite 788 of the Melbourne Tower in Seattle, King County, Washington, located on the following
described real estate: said building with entrance numbered 1511 Third Avenue, situate on Lots 10 & 11, Block 23, of Addition to the Town of Seattle, as laid out by A. A. Denny (commonly known as A. A. Denny’s 3rd Addition to the Town
of Seattle) as per plat recorded in Volume I of Plats, page 33, records of King County; EXCEPT those portions condemned for street purposes (with the building and real estate upon which it is located collectively called the “Building”).
The areas so leased are hereinafter called the “Premises” and are delineated in blue on Exhibit A attached hereto. 

 3. TERM.
The term of this Lease shall be Five (5) Years and One (1) Month commencing on December 1, 2005, the first day of the Lease term, and ending on December 31, 2010, the last day of the Lease term. 

4. RENT. 
 4.1 Monthly Base Rent. Subject to
the provisions of Article 4.2 and Article 4.4 hereof, Tenant agrees to pay to Landlord as Monthly Base Rent, without notice or demand and without deduction or offset, at such address as Landlord may designate from time to time, in advance on or
before the first day of each calendar month during the lease term. 
 (a) Commencing December 1, 2005, the Monthly Base Rent
payable by Tenant to Landlord shall be Twenty-Five and No/100 Dollars ($25.00); and 
 (b) Commencing January 1, 2007 the
Monthly Base Rent referred to in (a) herein above shall be increased by Three Thousand Four Hundred Fifty and No/l00 ($3,450.00); and 

 (c) Commencing January 1, 2009 the Monthly Base Rent of Three Thousand Four Hundred
Seventy-Five and No/100 Dollars ($3,475.00), as adjusted in accordance with Article 4.2 and Article 4.4, shall be further increased by Three Thousand Four Hundred Seventy-Five and No/100 Dollars (33,475.00). 
 4.2 Direct Operating Costs. Commencing in the year 2006 based on the fiscal year July 1, 2005 through June 30, 2006, in addition to the
Monthly Base Rent payable hereunder, Tenant also shall pay to Landlord, as additional rent, Tenants proportionate share of the increase in the direct operating costs for the Building estimated by Landlord to accrue during the then current fiscal
year. Landlord may send a monthly statement to Tenant for its proportionate share of such costs, calculated as set forth in Article 4.2.1 below. 
 Direct
operating costs include but are not limited to: Real property taxes: personal property taxes (excluding those for which Tenant and other tenants of the Building are responsible under their respective leases, but including those related to
Landlord’s Building management); assessments; rates and charges payable to any governmental authority in respect to the real property or Building: Building security, insurance on the Building or any part or parts thereof or any equipment or
appliances therein (excluding those for which Tenant and other tenants of the Building are responsible under their respective leases, but including those related to Landlord’s Building management); refuse and garbage collection; and the
provision of heat, light, water, elevator service, janitorial service and all other costs properly constituting direct operating costs for the Building according to standard accounting practices. 
 Depreciation of Building or equipment, commissions, Interest, and expenditures required to be capitalized for Federal Income Tax purposes shall not be considered
operating costs; provided, however, that if any such expenditure is made for the purpose of reducing operating costs, or is made in compliance with any law or governmental regulation, then such expenditure (including related interest and other
financing costs) shall be amortized over the useful life of such improvement and the annual amortized amount shall be included in operating costs each year during such useful life. In addition, if Landlord undertakes any action which results in a
reduction in the real property taxes as defined in this Article 4.2, the expenses incurred by such action (including related interest and other financing costs) shall be included in operating costs commencing the first year during which said
reduction occurs. 
 4.2.1 Method of Calculation. At the end of each of Landlord’s fiscal years (July 1 through June 30),
Landlord will compare its direct operating costs for the year just ended with the direct operating costs for the immediately preceding fiscal year. If there is an increase in the amount of such costs, then the amount of additional rent payable by
Tenant for each of the succeeding twelve (12) months on account of direct operating costs will be increased by an amount equal to 0.014 percent (0.00014) of any such increase in direct operating costs for every one hundred (900) square
feet (or prorated portion thereof) of the Premises. The percentage figure of 0.014 percent is an arbitrary amount specifically agreed to between Tenant and Landlord and is not intended to represent Tenants prorata portion of the square footage of
the Building. 

 In no event shall Monthly Base Rent be reduced pursuant to the terms of this Article 4.1. 
 4.2.2 Effective Date of Increases. Except as provided above for the initial partial fiscal year occurring at the commencement of the Lease Term,
any such increases in Monthly Base Rent attributable to increases in direct operating costs shall automatically become due commencing on the first day of each August falling within the Lease Term and shall be payable immediately following notice of
demand by Landlord to Tenant for payment of the amount of such increase, subject to the terms of Article 4.7, “Failure to Make Demand.” 
 4.2.3 Annual Reconciliation. At the end of each of Landlord’s fiscal years as set forth above, Landlord shall account to Tenant for the amounts paid by Tenant pursuant to this Article 4.1. If Tenant has paid an insufficient
amount for such fiscal years increase in direct operating costs, Tenant shall pay Landlord such shortage within ten (10) days after notice thereof. If Tenant has paid in excess of the amounts required, such overage shall be credited against the
next years additional charges or, if this Lease has been terminated, then paid to Tenant 
 4.3 Definition of Real Property Taxes. As
used in this Lease, the term “real property tax” shall include any form of assessment, license fee, rent tax, levy, penalty, or tax (other than inheritance, estate, net income or franchise taxes) imposed by any authority having the direct
or indirect power to tax, including any city, county, state or, federal government or any school, agricultural, lighting, drainage, street or other improvement district thereof, whether such tax is: 
 (i) Upon, allocable to, or measured by the area of the Building or the rent payable to Landlord for rental of the Building, including without limitation any gross income
tax or excise tax levied by the state, any political subdivision thereof, city or federal government with respect to the receipt of such rental; or 
 (ii)
Upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy by any of the Building’s tenants (including Landlord’s Building management) of the Building or any portion thereof
(excluding those for which tenants of the Building are responsible under their respective leases, but including those related to Landlord’s Building management); or 
 (iii) Upon or measured by the value of the Building’s tenants’ personal property, equipment or fixtures located in the Building (excluding those for which tenants of the Building are responsible under their
respective leases, but including those related to Landlord’s Building management); or 
 (iv) Upon this transaction or any document to which any of the
Building’s tenants are a party creating or transferring an interest or an estate in the Building; or 
 (v) Whether or not now customary or within the
contemplation of the parties. 
 4.4 CPI Adjustments. Commencing January 2007 and in every year thereafter during the Lease
term and any extension thereof, in January (“month of 

 adjustment”) the Monthly Base Rent shall be changed to reflect increases, if any, in the Consumer Price
Index—All Urban Consumers for the U.S. City Average (“Index”), as published by the United States Department of Labor, Bureau of Labor Statistics. For the initial year of adjustment (January 2007) the increase will be measured
from the January 2006 level of said Index. For years thereafter, the Index for the month of adjustment will be compared to the Index for the month of January in the year prior to the year of adjustment. If there has been an Increase in
said Index when compared as indicated above; then the Monthly Base Rent shall be increased by the identical percentage of change, commencing with the first day of January. In no event shall the monthly rent be reduced. 
 Should the publication of the said Index be discontinued, or should it be published less frequently, or altered in some other manner, then Landlord shall adopt a
substitute index or substitute procedure which reasonably reflects and monitors consumer prices. 
 4.5 Tax on Rental. The rent
specified in this Lease is exclusive of any sales, business and occupation or other taxes upon, based upon or measured by rents payable to Landlord hereunder. If, during the lease term and any extension thereof, any such taxes become payable by
Landlord to any governmental authority, the rent hereunder shall be increased to net Landlord the same rental after payment by Landlord of any such tax as-would have been payable to Landlord prior to the imposition of any such tax. The foregoing
does not apply to income, inheritance, gift or succession taxes payable by Landlord. 
 4.6 Personal Property Taxes. Tenant shall pay
prior to delinquency all taxes assessed against and levied upon leasehold improvements, fixtures, furnishings, equipment and all other personal property of Tenant contained in the Premises or elsewhere In the Building, This shall be the case
regardless of whether said improvements were installed or constructed either by Landlord or Tenant, except those items included with the original Premises. When possible, Tenant shall cause said leasehold improvements, trade fixtures, furnishings,
equipment and all other personal property to be assessed and billed separately from the property of Landlord. 
 4.7 Failure to Make
Demand. The failure of Landlord to give notice of demand for increased rent for the time periods specified in this Article 4 shall not act as a waiver of Landlord’s right to make demand for these increases at a later date; provided,
however, that such notice may not be given by Landlord later than twelve (12) months following each such fiscal-year-end reconciliation. 
 5.
SECURITY DEPOSIT. 
 5.1 Amount. Landlord acknowledges that it holds for Tenants account the sum of Six Thousand Nine Hundred
Fifty and No/100 Dollars ($6,950.00) as security for Tenant’s faithful performance of Tenant’s obligations hereunder. In the event that Tenant has not performed all its obligations under this Lease, said deposit shall not be refundable
and, at Landlord’s sole discretion, may be credited toward payment of the Base Monthly Rent due for the last month of the Lease Term. 
  

 5.2 Deposit of Funds. Landlord shall not be required to keep said deposit separate from its
general accounts. Tenant agrees that Landlord may deposit the security deposit in an interest-bearing account and that any accrued interest shall belong to Landlord. In the event of termination of Landlord’s interest in this Lease, Landlord
shall transfer said deposit to Landlord’s successor in interest, whereupon Tenant shall, ipso facto, release Landlord from all liability for the return of such deposit or the accounting therefor, provided Landlord’s successor
succeeds to Landlord’s interest under this Lease. 
 5.3 Default. If Tenant fails to pay Rent or other charges due, or otherwise
defaults with respect to any provision of this Lease; Landlord may use, apply or retain all or any portion of said deposit for the payment of any other sum to which Landlord may become obligated by reason of Tenant’s default, or to compensate
Landlord for any loss or damage which Landlord may suffer thereby. If Landlord so uses or applies all or any portion of said deposit, provided this Lease has not been terminated, Tenant shall within ten (10) days after written demand therefor
deposit cash with Landlord in an amount sufficient to restore said deposit to the full amount specified above. Tenants failure to restore said deposit shall be a breach of this Lease and Landlord may, at its option, terminate this Lease. 

6. USE OF THE PREMISES. 
 6.1 Use. Tenant
shall use the Premises during the entire lease term only for the purpose of general office use and for no other purpose without the prior written consent of Landlord. Tenant further agrees at all times to comply with any and all local, state
and federal laws, regulations, statutes and ordinances with respect to the Premises (herein called “Applicable Laws”), or with any insurance company or organization, for the maintenance of reasonable fire and other insurance covering the
Building. 
 6.2 Prohibited Uses. In no event will Tenant provide or permit the following: (i) the operation of a drug store or a
so-called prescription pharmacy or for any other purpose requiring a qualified pharmacist or other person authorized by law to dispense medicinal drugs, directly or indirectly, for a fee or remuneration of any kind, (ii) the sale of so-called
health and/or beauty aids and/or drug sundries except a beauty salon, which may sell health and/or beauty aids as an incidental part of its business, (iii) the operation of a business in which photo finishing services and/or photographic film
are offered for sale, (iv) the operation of a business in which greeting cards and/or gift wrap are offered for sale, provided however that the “Incidental Sale” for (ii), (iii) and (iv) herein shall be permitted.
“Incidental Sale” shall be defined as no more than twenty-five (25) square feet of counter space. This Article, as it applies to medicinal drugs, shall not apply to doctors, opthalmologists, dentists or veterinarians who provide
sample doses of medicinal drugs to their patients during office visits, or to doctors, opthalmologists, dentists or veterinarians who administer medicinal drugs to their patients during office visits whether or not any fee or remuneration is
received therefor. 
 6.3 Prohibited Acts. In no event shall Tenant use or permit any use to be made of the Premises, nor shall Tenant
allow any acts to be done in or about the Premises, which is unlawful or which will increase or cancel the existing rates of any or 

 all insurance upon the Building; provided, however, that if Landlord provides Tenant with written consent to use the
Premises in a manner that causes an increase in said insurance rates, Tenant shall pay any such increase. In addition, Tenant shall not commit or allow to be committed any waste upon the Premises, or any public or private nuisance or other act or
thing which disturbs the quiet enjoyment of any other tenant in building. 
 6.4 Rules and Regulations. Tenant shall faithfully
observe and comply with the rules and regulations that Landlord may from, time to time promulgate. A copy of the current form of said rules and regulations is attached hereto as Exhibit B, the terms of which are hereby incorporated by reference.
Landlord reserves the right from time to time to make all reasonable modifications (including additions and/or deletions) to said rules and regulations for the safety, care and cleanliness of the Premises and/or the Building, and the preservation of
good order therein. This shall include the right to make reasonable restrictions on access for the orderly delivery of goods and merchandise to the Premises. Any such modifications shall be binding upon Tenant upon delivery of a copy of them to
Tenant. In no event shall Landlord be obligated to enforce or be liable for failure to enforce said rules and regulations, whether against Tenant or any other tenants or other occupants of the Building. 
 7. ACCEPTANCE AND CONDITION OF PREMISES. Tenant hereby accepts the Premises in an “as is” condition existing on the commencement of the Lease term. This
includes acceptance of the Premises subject to all applicable zoning, municipal, county, and state laws, ordinances and regulations governing and regulating the use of the Premises, and to all matters disclosed thereby. Tenant further accepts the
Premises subject to any Exhibits attached hereto, and to all matters disclosed thereby. Tenant acknowledges that neither Landlord’s nor Tenant’s agent has made any representation or warranty as to the suitability of the Premises for the
conduct of Tenant’s business. Tenant warrants that no alterations or changes will be made to the Premises during the term hereof. 
 8. SERVICES
PROVIDED BY LANDLORD. 
 8.1 Maintenance of Premises. Landlord shall maintain the Premises and the public and common areas of the
Building, such as, lobbies, stairs, corridors and restrooms, in reasonably good order and condition except for damage caused by the acts of Tenant, including any of Tenant’s employees, clients, customers and/or guests. Landlord shall provide
janitorial services to keep the Premises, as well as public and common areas, reasonably clean, and Landlord shall be the sole judge as to the standard of janitorial services so provided. 
 8.2 Normal Utility Needs. Landlord shall furnish the Premises, during the ordinary business hours of the Building, from 8:00 a.m. to 6:00 p.m.
(excluding Saturdays, Sundays and holidays), with electricity, for lighting and operation of standard office machines, heat, and normal office air conditioning (if and only if the Premises are air conditioned at the commencement of the Lease Term).

 8.3 Extraordinary Utility Needs. Air conditioning units which are for special air conditioning
requirements, such as computer centers, and electricity and water used to operate them shall be provided by Tenant at its sole expense. Tenant shall also pay for electricity and water used for any equipment which Landlord designates as other than
standard office machines, including stoves, hot water heaters, washers and dryers. Where it is possible to separately meter such air conditioning units and/or other equipment, Tenant-shall install such meters at its sole expense, said meters to be
installed at the same time that any of said equipment is installed. The Monthly Base Rent stated in Article 4 does not include any amount to cover the cost of furnishing such electricity and/or water unless expressly so stated herein. 
 8.3.1 Metered by Utility Company. Where meters are read and billed by a utility company, Tenant shall be billed directly by that company for any
usage; Tenant agrees to pay before delinquency all charges attributable thereto. 
 8.3.2 Metered by Landlord. Where meters are not
read and billed by a utility company then they shall be read by Landlord who shall then bill Tenant for any usage. Meters shall be read approximately every thirty (30) days, and the rate that shall apply will be that then used by Seattle City
Light for electricity and Seattle Combined Utilities for water (or any of their respective successors in interest) as of the date Landlord takes a reading. Payment will be due upon receipt by Tenant of an invoice setting forth the respective
billing. 
 8.3.3 Non-metered. If, such units and/or equipment are not separately metered, Tenant shall, in advance, on the first day
of each month during the Lease Term, pay Landlord as additional rent the reasonable amount estimated by Landlord as the cost of furnishing electricity and/or water for the operation of such units and/or equipment. 
 8.4 Utility Usage During Off-Hours. Tenant shall pay the cost of any electricity and/or water used on or for the benefit of the Premises
during other than normal business hours of the Building. Tenant will keep a monthly log of the hours the Premises are occupied other than during such normal business hours and promptly submit copies of this log to Landlord at the end of each month
so that Landlord can provide proper invoicing to Tenant Payment will be due upon receipt by Tenant of said invoice. The determination of the hourly costs (or other appropriate unit cost) of excess electricity and/or water will be estimated by
Landlord. The monthly base rent stated in Article 4 does not include any amount to cover the cost of furnishing such electricity and/or water unless expressly so stated therein. 
 8.5 Other Amenities. Landlord shall also provide passenger elevator service and public restroom facilities in the Building. In addition, Landlord
will, on a one-time basis, provide Building-standard signage on the Building’s Main Lobby Directory and respective Floor Lobby Directory. Landlord shall arrange for Building-standard signage, at Tenant’s sole cost and expense, for the
primary entrance to the Premises. 
 8.6 Interruption of Service. Landlord shall not be liable to Tenant for any loss or damage caused
by, or resulting from any variation, interruption or any failure of 

 said services due to any cause whatsoever. In addition, any temporary interruption or failure of such services incident
to the making of repairs, alterations or improvements, or due to accident or strike or conditions or events not under Landlord’s control, shall not be deemed an eviction of Tenant or relieve Tenant from any of Tenant’s obligations under
this Lease. 
 9. CARE AND REPAIR OF PREMISES; CONDITION AT TERMINATION. 
 9.1 Care. Tenant shall take good care of the Premises. 
 9.2 Waiver of Right to Repair. Tenant
hereby waives any right to make repairs at Landlord’s expense. All normal repairs necessary to maintain the Premises in a tenable condition shall be done by or under the direction of Landlord and at Landlord’s expense unless otherwise
provided for in this Lease. Landlord shall be the sole judge as to what repairs are necessary. 
 9.3 Condition at Termination.
Tenant, at the termination of this Lease by expiration of time or otherwise, shall surrender and deliver up the Premises to Landlord in a condition as good as when received by Tenant from Landlord or as thereafter improved, reasonable use and wear
and damage by fire or other casualty excepted; provided, however, that all damage done to the Premises by Tenant, or by persons who may be in or upon the Premises with the consent of Tenant, shall be paid for by Tenant, and Tenant shall pay for all
damage to the Building caused by Tenant’s misuse of the Premises or the appurtenances thereto. 
 10. ALTERATIONS; TENANT IMPROVEMENTS.

 10.1 Restrictions on Alterations. Tenant shall not, without first obtaining Landlord’s written consent, make or install any
alterations, additions, changes, partitions (including moveable partition fixtures), tenant improvements, equipment or fixtures (including trade fixtures), make changes to locks on doors, add, disturb or in any way change any plumbing, wiring,
floors, partitions or ceilings, or put any curtains, draperies or other hanging on or beside windows (all of which are herein called “Improvements’). Tenant will submit to Landlord all plans for Improvements contemplated by Tenant, upon
which Landlord’s consent shall be predicated. 
 10.2 Compliance. Tenant shall ensure that any Improvements comply with all
building standards and that all construction will be done in accordance with all Applicable Laws. 
 10.3 Lien and Completion Bond. If
Tenant either desires or is required to make any repairs, utility installations or other Improvements in or to the Premises, and the total project cost will exceed $500, then before any work commences, Tenant must undertake, at Tenants sole cost and
expense, to obtain and provide to Landlord a lien and completion bond in an amount equal to one and one-half (1 1/2) times the estimated cost of such repairs or improvements, to insure Landlord against liability for mechanics’ and materialmen’s liens and to ensure completion of the work. 

 10.4 Lien Waivers and Insurance. Before commencing any work relating to repairs or Improvements,
Tenant shall notify Landlord in writing of the expected date of commencement thereof. Landlord shall then have the right at any time and from time to time to post and maintain on the Premises such notices as Landlord reasonably deems necessary to
protect the Premises and Landlord from mechanics’ liens, materialmen’s liens or any other liens. 
 Tenant shall provide Landlord with signed lien
waivers from all contractors, subcontractors and suppliers performing work or providing, materials for the job. Such lien waivers and bonds, or copies of such, must be sent to the Landlord or Landlord’s agent All contractors must be licensed
and bonded with a reliable bonding company. 
 In addition, Tenant shall ensure that the contractor provides Landlord with a certificate of insurance with an
insurer acceptable to Landlord naming Landlord as an additional Insured for all work performed by such contractor. 
 10.5 Improvements by
Tenant. In the event Tenant desires, for Tenants own use and benefit, or is required to make any repairs, utility installations or other Improvements in or to the Premises, and the total project cost will exceed $500, all such work shall comply
with the following: 
 (a) All work shall be performed at Tenants sole cost and expense, by bonded contractors approved by Landlord, in strict
accordance with plans and specifications approved by Landlord. 
 (b) Tenant, shall submit to Landlord, prior to commencement of work on any
improvements, complete plans and specifications, including engineering, mechanical, electrical and plumbing work, in such detail as Landlord may require and in compliance with all Applicable Laws and Building standards, certified by both a licensed
registered architect and a licensed registered professional engineer and including interior and exterior sample boards Illustrating the materials to be used for floor and wall coverings, countertops, lighting fixtures, signage, and other furnishings
proposed to be installed by Tenant in or upon the Premises. As soon as reasonably possible thereafter, Landlord shall notify Tenant of any failure of Tenants plans and specifications or interior or exterior sample board to meet with Landlord’s
approval. Tenant, within five (5) days after receipt of any such notice, shall cause Tenant’s plans and specifications or sample boards to be revised and resubmitted to Landlord for Landlord’s approval. Tenant shall not commence any
work upon or within the Premises until (i) Landlord has approved Tenant’s plans and specifications and interior and exterior sample boards, and (ii) Tenant has provided Landlord with evidence satisfactory to landlord that the
Insurance coverage described in Article 11 and required to be maintained by Tenant is in effect. 
 (c) Prior to commencement of any work or
delivery of any materials to the Premises or the Building, Tenant shall furnish to Landlord for approval the names and addresses of all contractors and subcontractors, copies of all contracts, necessary permits and licenses, certificates of
insurance and instrument of Indemnification and waivers of lien against any and all costs, claims, expenses, damages and liabilities which 

 may arise in connection with such work, all in such form and amount as are satisfactory to Landlord. Landlord shall have
the right to require Tenant to deliver to Landlord cash or other security acceptable to Landlord, in amount and form acceptable to Landlord (which may include but not be limited to a payment and performance bond), to hold as security for the prompt
payment for, and to insure the completion of, the Improvements. Upon completion of such Improvements, Tenant shall furnish Landlord with contractors’ affidavits accompanied by full and final waivers of lien, receipted bills covering all labor
and materials expended and used in connection with such work, and copies of all permits which are required to evidence the proper completion of such work All such work shall comply with all insurance requirements and with all Applicable Laws and all
occupancy permits applicable to the Premises, and be done in a good and workmanlike manner, and with the use of good grades of materials: 
 (d) Landlord shall have the right to engage, at Tenant’s sole cost and expense, an architect or project manager of Landlord’s choice (herein called “Landlord’s Designee”) to approve all plans and specifications on
Landlord’s behalf, and to supervise the progress of the construction of the Improvements, including disbursement of payments to contractors, subcontractors, suppliers, materialmen and laborers; provided, however, that Tenant’s total cost
and expense for Landlord’s Designee with respect to supervision of construction of the Improvements shall not exceed two percent (2%) of the total cost of the Improvements, and provided further that nothing herein contained shall be deemed
to impose any liability or obligation on Landlord or Landlord’s Designee, and nothing herein contained shall be deemed to release Tenant from any of Tenant’s obligations under the terms of this Lease. 
 (e) Tenant hereby agrees that (i) no payments will be made by Tenant or Tenant’s lender (in the event such Improvements are financed by a
lender) to Tenant, its contractors, subcontractors, suppliers, laborers or materialmen without prior written authorization from Landlord or Landlord’s Designee, and that a certificate of such disbursement shall be provided to Landlord or
Landlord’s Designee; (ii) Tenant shall instruct-the lender or disbursing agent of construction moneys that lender shall retain from each application for draw certificate a retainage of ten percent (10%), including fees of Landlord’s
Designee and of Tenants architect, pending- final completion and inspection by Landlord of the Improvements; and (iii) upon completion of Improvements, Tenants lender or disbursing agent of construction moneys shall provide Landlord or
Landlord’s Designee with a certification that there are no unpaid contractors, subcontractors, suppliers, materialmen or laborers, or other claims, costs or expenses unpaid or unprovided for as a result of construction of the Improvements.

 (f) Upon completion of the Improvements, Tenant’s architect shall certify to Landlord in writing that such Improvements have been
completed in accordance with the plans and specifications and free of any liens, and said certificate shall be subject to approval by Landlord or Landlord’s Designee. 
 Improvements to be made by Tenant hereunder shall not restrict access by Landlord or Landlord’s agents or engineers’ for the purpose of structural inspection and/or repair 

 from time to time. Landlord shall be permitted to leave within the Premises unobtrusive monitoring devices which
Landlord’s engineer may inspect from time to time. 
 10.6 Tenant’s Duty to Pay Claim. Tenant shall pay, when due, all
claims for labor or materials furnished to or for Tenant at or for use in the Premises. Tenant shall not permit any mechanics’ or materialmen’s liens to be levied against the Premises for any labor or material furnished to Tenant or
claimed to have been furnished to Tenant or to Tenant’s agents or contractors in connection with work of any character performed or claimed to have been performed on the Premises by or at the direction of Tenant. 
 Without waiving any of Landlord’s remedies, if any such lien is filed against the Premises, Tenant shall immediately cause such lien to be discharged by payment,
bonding or otherwise. If Tenant fails to cause such lien to be discharged within ten (10) days after notice to Tenant of the existence of such lien: then Landlord may cause such lien to be discharged by payment, bonding or otherwise, without
investigation as to its validity or of any offsets or defenses applicable thereto. In addition, Landlord shall have the right to collect from Tenant, as Additional Rent. 
 (a) All amounts paid to discharge the lien; plus 
 (b) All costs and expenses paid or incurred in connection
with said ken, including reasonable attorneys fees and disbursements; plus 
 (c) Interest on all of said sums in the amount provided for in
Article 25 from the time or times of payment 
 Any such sums paid by (or due to) Landlord shall be paid by Tenant upon receipt of invoices for same. If
Tenant fails to pay said invoices upon receipt, Landlord may at its option add the amount of the invoices to the next installment of Rent due under this Lease. 
 10.7 Cost and Ownership. All such permitted Improvements shall become a part of the Premises and shall be, and remain the property of Landlord upon termination of the Lease; provided, however, that Landlord
may, by written notice to Tenant prior to or after termination of the Lease, require the removal, at the sole cost and expense of Tenant, of any or all of such Improvements and/or the restoration of the Premises to the same condition they were in
before any such Improvements were made, erected or, installed, such removal to be performed in accordance with the terms of this Article 10 as to repair and restoration of the Premises, and subject to the provisions of Article 17, “Removal of
Property.” 
 It is specifically understood and agreed that all such Improvements to be made, erected or installed are for Tenant’s use and benefit
and to meet Tenants own requirements, and are at Tenant sole cost and expense. 
 10.8 Responsibility to Restore. Where Landlord
elects to require Tenant to remove said Improvements, then Tenant shall restore the Premises to a condition as good as when received by Tenant from Landlord, reasonable use and wear excepted. All 

 damage or injury done to the Premises by Tenant or by any person or persons who may be in or on the Premises with
Tenant’s consent, shall be paid for by Tenant, and Tenant shall pay for all damage to the Building caused by Tenants misuse of the Premises or the appurtenances thereto. 
 10.9 Alterations by Landlord. Landlord may make any alterations or additions or improvements which Landlord may deem necessary, or advisable for
the preservation, safety or improvement of the Premises of the Building. These will be made at times convenient to Tenant if reasonably possible, and shall become the property of Landlord upon termination of the Lease. 
 10.10 Removal of Property. If Tenant shall fall to remove any property of any nature whatsoever which Tenant is permitted or required to remove
from the Premises or the Building at the termination of this Lease or when Landlord has the right of re-entry, Landlord may, at its sole option, remove and store said property without liability for loss thereof or, damage thereto, such storage to be
for the account and at the expense of Tenant A notice containing the name and address of Landlord and the place where the property is stored shall be mailed promptly by Landlord to the last known address of Tenant If Tenant shall not pay the cost of
storing any such property after it has been stored for a period of thirty (30) days or more, Landlord may, at its sole, option, sell or permit to be sold any and all of such property at public or private sale, in such manner and at such times
and places as Landlord, in its sole discretion, may deem proper, without notice to Tenant, and shall apply the proceeds of such sale, first, to the cost and expense of such sale, including reasonable attorneys’ fees actually, incurred; second,
to the payment of the costs or charges for storing any such property; third, to the payment of any other sums of money which may then be or thereafter become due to Landlord from Tenant under any of the terms hereof; and fourth, the balance, if any,
to Tenant. 
 11. ENTRY AND INSPECTION. 
 11.1 Right of Entry. Tenant will permit Landlord and/or its agents to enter into and upon the Premises at all reasonable times for the purpose of inspecting the same or for the purpose of cleaning, repairing, altering or improving
the Premises or the Building; provided, however, that nothing contained in this provision shah be deemed to impose any obligation upon Landlord not expressly stated elsewhere in this Lease. 
 11.2 Temporary Closure. When reasonably necessary, Landlord may temporarily close entrances, doors, corridors, elevators or other facilities
without liability to Tenant by reason of such closure. Furthermore, any such action by Landlord shall not be construed as an eviction of Tenant or relieve the Tenant from the duty of observing and performing any of the provisions of this Lease.

 11.3 Right to Show. Landlord shall have the right to enter the Premises for the purpose of showing them to prospective tenants for
a period of 180 days prior to the expiration of the Lease term. 

 11.4 Waiver of Claim. Tenant hereby waives any claim for damages or for any injury or
inconvenience to, or interference with Tenants business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned by any of Landlord’s (or its agents’) actions discussed in this Provision. 
 11.5 Retention of Keys. Landlord shall at all times have and retain keys with which to unlock all of the doors in, upon, and about the Premises,
excluding Tenant’s vaults, safes, and/or files. In addition, Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency in order to obtain entry to the Premises without liability to
Tenant except for failure to exercise due care for Tenant’s property. 
 11.6 No Eviction. Any entry to the Premises obtained by
Landlord by any means, whether specified in this Provision or otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer or an eviction of Tenant from, the Premises or any portion
thereof. 
 12. INSURANCE INDEMNITY. 
 12.1 Liability Insurance. At its sole cost and expense, Tenant shall obtain and keep In force during the term of this Lease a Commercial General Liability policy or Comprehensive General Liability policy insuring Tenant against any
liability arising out of the ownership, use, occupancy or maintenance of the Premises. Such policy shall include an endorsement naming Landlord as an additional insured and stating that the insurance provided for Landlord is primary insurance and
non-contributory with any other insurance available to Landlord. Such insurance shall be in an amount not less than $1,000,000 for injury to or death of one person in any one accident or occurrence and in an amount not less than $1,000,000 for
injury to or death of more than one person in anyone accident or occurrence. Such Insurance shall further insure Landlord and Tenant against liability for property damage of at least $1,000,000. From time to time, but no more often than every
twenty-four (24) months during the lease term, the Landlord shall have the right, as recommended by Landlord’s insurance broker serving the Building, to require increases in the minimum insurance requirements stated in this Provision. The
limits of said insurance shall not, however, limit the liability of Tenant hereunder, If the Tenant shall fail to procure and maintain said insurance the Landlord may, but shall not be required to, procure and maintain the same, but at the expense
of Tenant. 
 12.2 Property Insurance; Coverage by Landlord. Landlord shall obtain and keep in force during the term of the Lease a
policy or policies of insurance, on a form reasonably acceptable to Landlord, covering loss or damage to the building of which the Premises form a part (but not including any of Tenant’s personal property and trade fixtures), in the amount of
the full replacement value thereof. Said insurance shall provide for payment for loss thereunder to Landlord or to the holder of a first mortgage or deed of trust on the Premises. 
 12.3 Personal Property; Coverage by Tenant. Tenant shall, at Tenants expense, obtain and keep in force during the term of this Lease a policy or
policies of 

 insurance covering loss or damage to its personal property on the Premises, including trade fixtures, in the amount of
the full replacement value thereof, providing “all risk” protection: Such insurance shall be written with a co-insurance clause of not less than ninety percent (90%), and Tenant shall maintain an amount of Insurance under such policy or
policies which will equal at least ninety percent (90%) of the replacement value of the insured property at the time of loss. 
 12.4
Other Insurance. Landlord may procure and maintain such other insurance as may be required by the Landlord to insure against hazards which are commonly insured against in leases of this type, and in amounts as may from time to time be determined
by the Landlord, and charge the cost thereof to Tenant. As provided by the terms of Article 6.2, “Prohibited Acts,” and as otherwise set forth in this provision, Tenant agrees to pay for any increase in Insurance premium costs resulting
from its occupancy. 
 12.5 Insurance Policies. Insurance required hereunder shall be in companies acceptable to Landlord. Tenant
shall deliver to Landlord prior to possession certificates evidencing the existence and amounts of such insurance. No such policy shall be cancelable or subject to reduction of coverage or other modification except after thirty (30) days’
prior written notice to Landlord. Provided, however, that any such cancellation or reduction with any particular insurer shall not relieve Tenant of its duty to provide the full amount of insurance required to be provided by Tenant under this Lease.

 Tenant shall, within ten (10) days prior to the expiration of such policies, furnish Landlord with renewals thereof or Landlord may order such
insurance and charge the cost thereof to Tenant, which amount shall be payable by Tenant on demand. 
 Tenant shall not do or permit to be done anything
which shall invalidate the insurance policies referred to In this Provision. Tenant shall immediately upon Landlord’s demand, reimburse Landlord for any additional premiums attributable to any act or omission or operation of Tenant causing such
increase in the cost of insurance, If Landlord is the insuring party, and if the insurance policies maintained hereunder cover other improvements in addition to the Premises, Landlord shall deliver to Tenant a written, statement setting forth the
amount of any such cost increase and showing in reasonable detail the manner in which it has been computed. 
 12.6 Waiver of
Subrogation. Whether the loss or damage is due to the negligence of Landlord, Tenant, their agents or employees, or any other cause, Landlord and Tenant do hereby release the other from responsibility for, and waive their entire claim of
recovery for: 
 (a) Any loss or damage to the real or personal property of either located anywhere in the Building and including the Building
itself, arising out of or incident to the occurrence of any of the perils which may be covered by the Property Insurance policy, with extended coverage endorsement, in common use in the Seattle locality; or 

 (b) Loss resulting from business interruption at the Premises or loss of rental income from the Building,
arising out of or incident to the occurrence of any of the perils which may be covered by the business interruption policy and by the loss of rental income insurance policy in common use in the Seattle locality. 
 To the extent that the risks specified under paragraphs (a) and (b) above are, in fact, covered by insurance, each party shall cause its insurance carriers to
consent to such waiver and to waive all rights of subrogation against the other party. Tenant shall upon obtaining the policies of insurance required hereunder, give notice to the insurance carriers that the foregoing waiver of subrogation is
contained in this Lease. Landlord may, but is not obligated to, notify Tenants insurance carriers that this waiver of subrogation is contained in this Lease. 
 12.7 Hold Harmless. Tenant will and does hereby indemnify the Landlord from and against all actions, claims, demands, losses, damages, penalties, assessments, costs, attorneys’ fees and all other expenses
for which Tenant shall or maybe or become liable, whether such liability arises or will arise during the term of this Lease or any extension thereof, or at any time after termination thereof, in respect of or arising from: 
 (a) The negligent use, misuse, waste or abuse by Tenant or any of its servants, agents, contractors, employees, invitees, sublessees or any other person
claiming through or under Tenant of any water, gas, electricity, oil, lighting and/or other services and facilities of the Premises and/or the Building; 
 (b) Overflow or leakage of any material (including but not limited to water) in or from the Premises but having origin within the Premises or caused or contributed to by any act or omission on the part of Tenant or
any of its servants, agents, contractors, employees, invitees, sublessees or other person as aforesaid; 
 (c) Loss, damage or injury from
any cause whatsoever to any property or person caused or contributed to by the occupation, use of and activities on the Premises and common areas by Tenant or any of its servants, agents, contractors, employees, invitees, sublessees or any other
person as aforesaid; 
 (d) Loss, damage or injury from any cause whatsoever to any property or person within or without the Premises
occasioned or contributed to by any act omission, neglect, breach or default of Tenant or any of its servants, agents, contractors, employees, invitees, subtenants or any other person as aforesaid; 
 (e) Loss, damage or injury as a result of Tenant contravening and/or not fully complying with all Applicable Laws; or 
 (f) Loss, damage or injury as a result of any breach or default in the performance of any obligation on Tenant’s part to be performed under the
provisions of this Lease. 
 12.8 Exemption of Landlord from Liability. Tenant hereby agrees that Landlord shall not be liable for
injury to Tenants business or any loss of income 

 therefrom, or for damage to the goods, wares, merchandise, or other property of Tenant, Tenant’s employees,
invitees, customers, or other person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water, or rain, or from the breakage, leakage, obstruction or other defects of pipes,
sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, and Tenant hereby waives any and all claims it may have against Landlord for said damages. 
 In addition, Landlord shall not be liable for injury to the person of Tenant, Tenants employees, agents, contractors, and/or invitees for any of the causes specified in
this subsection (h), unless such injury results from the adjudicated gross negligence or intentional conduct of Landlord. Tenant hereby waives any and all claims it may have against Landlord for said damages except as specifically permitted herein.

 This exclusion of Landlord from liability shall be true whether or not such damage or injury results from conditions arising upon the Premises or upon
other portions of the Building of which the Premises are a part, or from other sources or places, and regardless of whether the cause of such damage or injury or the means of repairing the same is accessible to Landlord or Tenant also, as part of
such exclusion, Landlord shall not be liable for any damages arising from any act or neglect of any other tenant of the Premises or the Building. 
 13.
DAMAGE OR DESTRUCTION. 
 13.1 Partial Damage; Insured. In the event improvements on the Premises are partially damaged by any
casualty that is covered under an insurance policy required to be maintained by the insuring party pursuant to Article 12, “Insurance Indemnity,” and such insurance proceeds available to Landlord after all other claims upon such proceeds
have been satisfied are adequate to pay the cost of repair, then Landlord shall repair such damage as soon as reasonably possible and this Lease shall continue in full force and effect. 
 13.2 Partial Damage; Uninsured. In the event the Premises are partially damaged by any casualty not covered under an insurance policy required to
be maintained pursuant to Article 12 above, or if the insurance proceeds available to Landlord after all other claims upon such proceeds have been satisfied are riot adequate to pay the cost of repair, then Landlord may, at Landlord’s option,
either 
 (a) Repair such damage as soon as reasonably possible at Landlord’s expense (to the extent any insurance proceeds are
inadequate), in which event this Lease shall continue in full force and effect; or 
 (b) Give written notice to Tenant within thirty
(30) days after the date of occurrence of such damage of Landlord’s intention to cancel and terminate this Lease as of the date of the occurrence of the damage. 
 In the event Landlord elects to terminate this Lease pursuant to this Article 13.2 where there is no insurance coverage, Tenant shall, have the right within ten (10) days after 

 receipt of the required notice to notify Landlord in writing of Tenants intention to repair such damage at Tenants
expense, without reimbursement from Landlord, in which event this Lease shall continue in full force and effect, and Tenant shall proceed to make such repairs as soon as reasonably possible. 
 In the event Landlord elects to terminate this Lease pursuant to this Article 13.2 where there is not sufficient insurance coverage to pay the full cost of repairs,
Tenant may notify Landlord in writing within ten (10) days after receipt of the required notice of Tenants intention to pay Landlord the difference between the amount needed to repair such damage and the available insurance proceeds.

 Upon notification by Tenant of Tenant’s intent to pay the cost of repairs in full where there is no insurance coverage, or to pay the differential to
the extent available insurance proceeds are inadequate to pay for such repairs, Landlord shall, within thirty (30) days after receipt of such notice, notify Tenant in writing of Landlord’s confirmation to accept Tenant’s payment of
the cost of repair. Pursuant to Landlord’s receipt of Tenants payment of the cost of repair, Landlord shall repair such damage as soon as reasonably possible. 
 If Tenant does not notify Landlord of its intention either to repair at Tenants expense or to pay Landlord the difference between the amount needed to repair such damage and the available insurance proceeds within the ten (10) day
period, this Lease shall be canceled and terminated as of the date of the occurrence of such damage. 
 13.3 Total Destruction;
Landlord’s Option to Terminate. If at any time during the term hereof the Premises (or the improvements of a substantial portion of the Building, even when the Premises are not damaged) are totally destroyed from any cause whether or not
covered by the insurance required to be maintained pursuant to Article 12, “Insurance Indemnity,” including any total destruction required by any authorized public authority, Landlord may, at its option, cancel and terminate this Lease as
of the date of occurrence of such destruction by giving written notice to Tenant of Landlord’s election to do so within thirty (30) days after the date of occurrence of such damage. 
 13.4 Abatement of Rent. In the event of partial or total destruction of the Premises as set out hereinabove, and where this Lease is to remain in
effect, the rent shall be abated only during such time as the use of the Premises is impaired. 
 13.5 Uninsured Damage; Acts or Omissions
of Tenant. If uninsured damage, whether partial or total, is by reason of a negligent or willful act or omission of Tenant or any of Tenant’s agents, invitees, contractors or employees, then in addition to the terms of Articles 12 and 13
hereof and any of Landlord’s other remedies, Landlord may, at its option: 
 (a) Require Tenant to repair the same at its sole cost and
expense, and without any abatement of rent; or 
 (b) Repair the same and charge the Tenant for the cost thereof with interest as hereinafter
established, again without any abatement of rent. 

 Landlord shall make an, election between paragraphs (a) and (b) above within thirty (30) days of such
occurrence or within thirty (30) days of the establishment of the cause if later. 
 13.6 Damage Near End of Term. Regardless of
any other provisions to the contrary, if the Premises are partially, destroyed or damaged during the last six (6) months of the term of this Lease, Landlord may, at its option, cancel and terminate this Lease as of the date of occurrence of
such damage by giving written notice to Tenant of Landlord’s election to do so within thirty (30) days after the date of 
 13.7
Landlord’s Obligations. Landlord shall not be required to repair any damage for which insurance proceeds available to Landlord, after all other claims upon such proceeds have been satisfied, are inadequate to pay the cost of repair except
as described in Article 13.2 hereof. In addition, Landlord shall not be required to repair any injury or damage by fire or other cause, or to make any restoration or replacement of any paneling, decorations, office fixtures, partitions, railings,
ceiling, floor covering, equipment, machinery or fixtures or any other improvements or property installed in the Premises by Tenant or at the direct or indirect expense of Tenant. Tenant shall be required to restore or replace same in the event of
damage. 
 13.8 Termination; Advance Payments. Upon termination of this Lease pursuant to this Article 13, an equitable adjustment
shall be made concerning advance rent and any advance payments made by Tenant to Landlord. Any prorata adjustments of rent shall be based upon a thirty (30) day month as specified in Article 4.1. In addition, Landlord shall return to Tenant so
much of Tenant’s security deposit as has not been, or will not be, applied by Landlord. 
 14. ASSIGNMENT AND SUBLETTING. Tenant shall not
voluntarily or by operation of law assign, transfer, mortgage, sublet, or otherwise transfer or encumber all or any part of Tenants interest in this Lease or in the Premises without the express written consent of the Landlord. Any transfer of
Tenant’s interest in this Lease or in the Premises from Tenant by merger, consolidation, or liquidation or, if Tenant is a corporation, by any subsequent change in the ownership of twenty percent (20%) or more of the capital stock of
Tenant through one or more transactions (whether through transfer of existing shares, issuance of new shares, or otherwise) shall be deemed a prohibited assignment within the meaning of this Article 14; provided, however, that this provision shall
not apply if Tenant’s stock is listed on a recognized security exchange or if at least eighty percent (80%) of its stock is owned by a corporation whose stock is listed on a recognized security exchange. Any attempted assignment, transfer,
mortgage, encumbrance, or subletting which does not comply with the terms of this Article 14 shall be void and shall constitute a breach of the Lease. 
 15. DEFAULT BY TENANT. The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant: 
 15.1 Abandonment. The vacating or abandonment of the Premises by Tenant 

 15.2 Failure to Pay Rent. The failure by Tenant to make any payment of rent or any other payment
required, to be made by Tenant under this Lease, as and when due, where such failure shall continue for a period of three (3) days after written notice thereof from Landlord to Tenant. Said notice shall constitute notice of all sums past due,
including those additional sums which become past due subsequent to receipt of said notice, but before payment of said sums. 
 15.3
Nonperformance of Other Covenants. The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant (other than the failure to make payment of rent or other payments),
where such failure shall continue for a period of ten (10) days after written notice thereof from Landlord to Tenant provided, however, that if the nature of Tenant’s default is such that more than ten (10) days are reasonably
required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said ten (10) day period and thereafter diligently prosecutes such cure to completion. 
 15.4 Assignments, Attachments, Bankruptcy. For example, (i) the making by Tenant of any general assignment, or general arrangement for the
benefit of creditors; or (ii) the filing by or against Tenant of a petition to have Tenant adjudged bankrupt or a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against
Tenant, the same is dismissed within sixty (60) days); or (iii) the appointment of a trustee or receiver to take possession of substantially all of Tenants assets located at the Premises or of Tenants interest In this Lease, where
possession is not restored to Tenant within thirty (30) days; or (iv) the attachment execution, or other judicial seizure of substantially all of Tenants assets located at the Premises or of Tenants interest in this Lease, where such
seizure is not discharged within thirty (30) days. 
 16. REMEDIES FOLLOWING DEFAULT BY TENANT. In the event of default or breach by Tenant,
Landlord may at any time thereafter, with or without notice or demand and without limiting Landlord in the exercise of any right or remedy which Landlord may have by reason of such default or breach. 
 16.1 Terminate Possession. Terminate Tenant’s right to possession of the Premises by any lawful means in which case this Lease shall
terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event, Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenants default including, but not limited to,
the following: 
 (a) The cost of recovering possession of the Premises; plus 
 (b) Any expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys’ fees, and any real estate
commission actually paid; plus 

 (c) Any unpaid rent which had been earned at the time of such termination together with interest and late
charges as established in Article 16.4, “Late Charges;” plus 
 (d) The worth at the time of award of the amount by which the
unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that is proved could have been reasonably avoided; plus 
 (e) The worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such
rental loss that is proved could be reasonably avoided; plus 
 (f) Any other amount necessary to compensate Landlord for all damages
proximately caused by Tenant’s failure to perform its obligations under this Lease; plus 
 (g) Interest at the rate established in
Article 25, “Interest on Past-Due Obligations;” plus 
 (h) At Landlord’s election, such other amounts in addition to or in
lieu of the foregoing as may be permitted from time to time by applicable state law. 
 Upon any such re-entry, Landlord shall have the right to make any
reasonable repairs, alterations or modifications to the Premises, which Landlord in its reasonable discretion deems necessary. As used in paragraphs (d) and (e) above, the “worth at the time of award” shall be computed by
discounting such amount at the discount rate of the U.S. Federal Reserve Bank at the time of award plus one percent (1%), but not to exceed a rate of twelve percent (12%) per annum. The term “rent, as used in this Article 16,
“Remedies Following Default by Tenant,” shall be deemed to be and to mean the rent to be paid pursuant to Article 4, “Rent,” and all other monetary sums required to be paid by Tenant pursuant to the terms of this Lease.

 16.2 Maintain Possession. Maintain Tenants right to possession, in which case this Lease shall continue in effect whether or not
Tenant shall have abandoned the Premises. In such event, Landlord shall be entitled to enforce all of Landlord’s rights and remedies under this Lease, including the right to recover rent as it becomes due hereunder. 
 16.3 Other Remedies. Pursue any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the jurisdiction in
which the Premises are located. 
 16.4 Late Charges. Tenant hereby acknowledges that late payment by Tenant of rent and other sums
due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting, charges, and late charges
which may be imposed on Landlord by the terms of any mortgage or trust deed covering the Premises. Therefore, if any installment of rent or other sum due Landlord from 

 Tenant is not received by Landlord by the 10th day of the month (or, if any such payment is not due on the 1st of the
month, then within 10 days from the date it is due) Tenant shall pay to Landlord a late charge equal to one percent (1%) over the prime rate of such overdue amount, or One Hundred Dollars ($100.00), whichever is greater; the prime rate shall be
that used by Bank of America (or any of its successors in interest, if applicable) as of the date that any such payment is due. 
 The parties hereby agree
that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. Acceptance of such late charge by Landlord shall in no event constitute a waiver of Tenant’s default with
respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder. 
 16.5
Returned Checks. A Twenty-five Dollar ($25.00) charge shall be paid Landlord for any returned check. This is separate from any applicable late charges or interest due under this Lease. 
 16.6 Waiver of Damages. 
 Tenant hereby waives all
claims for damages that may be caused by Landlord’s re-entering and taking possession of the Premises or removing and storing Tenant’s property as provided in this Lease. In addition, Tenant agrees to save Landlord harmless from losses,
costs, or damages occasioned by Landlord from such reentry and/or storage of property. Further, no such re-entry or retaking of possession shall be construed to be a forcible entry. 
 16.7 Compliance Incentive. In addition to and regardless of any other Provision of this Lease to the contrary, if at any time during the term of
this Lease and any extension thereof, Tenant is more than sixty (60) days in arrears on any of the payments due from Tenant to Landlord under this Lease (including any extensions), and the amount of said arrearage is more than one month of the
then current monthly rent, Landlord shall have the right to make written demand of Tenant for payment of same. If Tenant fails to make payment in full within ten (10) days from the date of said notice, Landlord shall have the right to declare
the entire unpaid balance of the Lease for the full term thereof immediately due and payable. Further, and notwithstanding anything to the contrary herein contained, if at any time during the term of this Lease or any extension thereof Tenant is
(i) more than sixty (60) days in arrears on any of the payments due from Tenant to Landlord under this Lease or any extension thereof, or (ii) more than thirty (30) days in arrears on any of such payments more than once in any
twelve-month period during the term of this Lease or any extension thereof, then the provisions of Article 16.8 below automatically shall become applicable and shall remain in force during the remaining term of the Lease and any extension thereof.

 16.8 Termination for Nonpayment. In the event that any arrearage pursuant to the provisions of Article 16.7 (i) or
(ii) above has occurred during the Lease term or any extension thereof, and whether or not Tenant shall have remedied any or all of such arrearages, Landlord shall have the right, at its sole discretion and at any time thereafter 

 during the term of this Lease or any extension thereof, to terminate this Lease upon thirty (30) days written notice
to Tenant. Tenant hereby agrees to release and forever discharge Landlord and to indemnify and hold Landlord harmless, from and against any claim or claims whatsoever wising from such termination. 
 17. REMOVAL OF PROPERTY. 
 17.1 Right of Removal
and Storage. If Tenant shall fall to remove any of its property of any nature whatsoever from Premises or the Building at the termination of this Lease or when Landlord has the right of re-entry, Landlord may, at its option, remove and store
said property without liability for loss thereof or damage thereto. Such storage will be for the account and at the expense of Tenant. 
 17.2 Notice. A notice containing the name and address of Landlord and the place where the property is stored shall be mailed promptly by Landlord to the last known address of Tenant. 
 17.3 Disposition. If Tenant shall not pay the cost of storing any such property after it has been stored for a period of thirty (30) days or
more, Landlord may at its option sell, or permit to be sold, any or all of such property at public or private sale. In such manner and at such times and places as Landlord in its sole discretion may deem proper, without notice to Tenant Proceeds of
the sale shall be applied as follows: 
 (a) First, to the cost and expense of such sale, including reasonable attorneys’ fees actually
incurred; 
 (b) Second, to the payment of the costs or charges for storing any such property; 
 (c) Third, to the payment of any other sums of money which may then be or thereafter become due Landlord from Tenant under any of the terms of this
Lease; and 
 (d) Fourth, the balance, if any, to Tenant. 
 18. DEFAULT BY LANDLORD. Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event later than thirty (30) days after
written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall be furnished to Tenant in writing, specifying the obligation(s) Landlord has failed to perform;
provided, however, that If the nature of Landlord’s obligation is such that more than thirty (30) days are required for performance then Landlord shall not be in default if Landlord commences performance within such thirty (30) day
period and thereafter diligently prosecutes the same to completion. 
 19. QUIET ENJOYMENT. Landlord covenants and agrees with Tenant that upon Tenant
paying rent and other monetary sums due under the Lease and performing its covenants and conditions, Tenant shall and may peaceably and quietly have, hold, and enjoy the Premises for the Lease term, subject however, to the terms of the Lease and of
any ground lease, mortgages or deeds of trust that are prior to this Lease. 

 20. RECOGNITION OF PURCHASER; ATTORNMENT. In the event any proceedings are brought for default under any ground or
underlying lease, or in the event of foreclosure or the exercise of the power of sale under any mortgage or deed of trust made by the Landlord covering the Premises, the Tenant hereby agrees, upon such foreclosure or sate, to recognize the purchaser
as the Landlord under this Lease and to execute such documents evidencing such fact on forms supplied by Landlord; provided, however, that said purchaser must expressly agree in writing to be bound by the terms of this Lease. 
 21. INABILITY TO PERFORM. This Lease and the obligations of Tenant hereunder shall not be affected or Impaired because Landlord is unable to fulfill any of its
obligations hereunder or is delayed in doing so, if such inability or delay is caused by reason of strike, labor troubles, force majeure, weather and acts of God, or any other cause beyond the reasonable control of Landlord, and Landlord shall not
be liable for any such delay. 
 22. SURRENDER OF POSSESSION. Upon the expiration of the term of this Lease, whether by lapse of time or otherwise,
Tenant shall promptly and peacefully surrender the Premises to the Landlord. 
 23. RELOCATION. Landlord shall have the right to relocate Tenant into
substantially equivalent premises located elsewhere in the Building upon six (6) months written notice. Landlord shall reimburse Tenant for reasonable direct moving expenses directly attributable to said relocation. 
 24. EXTENDED TERM; HOLDOVER; SURRENDER OF POSSESSION. 
 24.1 Extended Term. Unless either party shall, not later than Two Hundred Seventy (270) Days prior to the expiration of the term of this Lease, give notice in writing to the other party that no extension of the Lease term hereby
created is desired by it, such term shall be deemed to have been extended for a further period of Five (5) Years (herein called the “Extended Term”), commencing on the day following the last day of the initial term of this Lease, and
all provisions of this Lease (except this Article 24.1) shall continue to apply, except that the amount of the Monthly Base Rent due during the Extended Term shall be six-fifths (6/5) of the amount of the last monthly rent. All other terms and
conditions of the Lease, except for this Article 24.1, shall remain in full force and effect. 
 24.2 Hold-Over. If Tenant remains in
possession of the Premises or any part thereof after the expiration of the term of this Lease or any extension thereof and such possession is with the express written consent of Landlord, such occupancy shall be a tenancy from month to month. The
rental for such tenancy shall be four thirds (4/3) of the amount of the last monthly rent (unless a different rate is set by Landlord), and upon the terms, covenants, and conditions as set forth in this Lease to the extent they are 

 applicable to a month-to-month tenancy. Such tenancy may be terminated as provided by the Laws of the State of Washington
for month-to-month tenancies in addition to other methods of termination as provided for in this Lease. 
 24.3 Surrender of Premises.
Upon the expiration of the term of this Lease, whether by lapse of time or otherwise, Tenant shall promptly and peacefully surrender the Premises to the Landlord. 

 25. INTEREST ON PAST-DUE OBLIGATIONS. Unless expressly provided otherwise in this Lease, any amount due to
Landlord not paid when due shall bear interest at the highest lawful rate of interest, or if no limit applies, then at the greater of either the per annum prime rate used by Bank of America (or any of its successors in interest, if applicable) plus
six percent (6%); or eighteen percent (18%) per annum. In establishing the variable rate of interest (prime plus 6%), the rate shall be adjusted on each date that Bank of America adjusts its prime rate. Payment of such interest shall not excuse
or cure any default by Tenant under this Lease. 
 26. BINDING EFFECT ON SUCCESSORS. This Lease shall bind and shall enure to the benefit of the
parties hereto, their personal representatives, heirs, successors and assigns. 
 27. LANDLORD’S INTERESTS. The term “Landlord” as used
in this Lease shall mean only the owner or owners of the fee title to the Premises at the time in question of any event or occurrence regarding this Lease. In the event of any transfer of such title or interest, Landlord as named in this Lease (and
in case of any subsequent transfers, the then grantor) shall be relieved of all liability as respects the obligations to be performed by the Landlord from and after the date of such transfer. Provided, however, that any funds in which Tenant has an
interest and which are in the hands of Landlord or the then grantor at the time of such transfer shall be delivered to the grantee. The obligations contained in this Lease to be performed by Landlord shall be binding on Landlord’s successors
and assigns only during their respective periods of ownership. 
 28. WAIVERS. No waiver by Landlord of any provision of this Lease shall be deemed a
waiver of any other provision, or of any subsequent breach by Tenant of the same or any other provision. Landlord’s consent to or approval of any act shall not be deemed to render unnecessary the obtaining of Landlord’s consent to or
approval of any subsequent act by Tenant. The acceptance of rent hereunder by Landlord shall not be a waiver of any preceding breach by Tenant of any Provision of this Lease, other than the failure of Tenant to pay the particular rent so accepted,
regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such rent 
 29. RECORDING. Tenant shall not record this
Lease. Any such recordation shall be a breach under this Lease 
 30. CUMULATIVE REMEDIES. No remedy or election hereunder shall be deemed exclusive,
but shall wherever possible, be cumulative with all other remedies at law or inequity. 
 31. COVENANTS AND CONDITIONS. Each provision of this Lease
performable by Tenant shall be deemed both a covenant and a condition. 
 32. CHOICE OF LAW AND VENUE. This Lease shall be governed by the laws of the
State of Washington. Venue for any action brought under this Lease shall be in King County, Washington, and Tenant specifically agrees to submit to the jurisdiction of the courts within said place of venue even if Tenant is not a resident of King
County and/or the State of Washington at the time any such action is commenced. 

 33. NO OFFSET. No amount due from Tenant under this Lease shall be subject to any right of offset or deduction,
whether the amount is part of the monthly rent, adjustments, additional charges, or any other amounts or obligations due from Tenant under this Lease. 
 34. ATTORNEYS’ FEES. If either party to this Lease brings an action to enforce the terms hereof or declare rights hereunder, the prevailing party in any such action, on trial or appeal, shall be entitled to its reasonable
attorneys’ fees to be paid by the losing party as fixed by the court. This clause contemplates that only one party shall recover reasonable fees in any action. The prevailing party shall be tie one who receives the “net” judgment in
its behalf at the end of any action. Should Tenant be in default on the payment of any sums due to Landlord under this Lease and Landlord turns the matter over to a third party for collection and said third party prevails on the collection, then In
addition to other damages including attorneys’ fees, Landlord shall be entitled to collect from Tenant the costs and fees charged by the third party performing said collection. 
 35. BROKER’S COMMISSION. Tenant represents and warrants that it has incurred no liabilities or claims for brokerage commissions or finder’s fees in connection with the execution of this Lease. Tenant
further represents and warrants that it has not dealt with any real estate broker, agent or salesperson in connection with this Lease nor does Tenant have knowledge of any such person or persons connected with this Lease. Tenant agrees to indemnify
and hold Landlord harmless from all such liabilities or claims including, without limitation, attorneys’ fees. Tenant’s obligations under this Article 35 shall survive termination of this Lease. 
 36. LANDLORD’S RIGHT TO CANCEL It is hereby agreed that in the event Landlord, or Landlord’s successor in interest, decides at any time to sell or
demolish the Building, then Landlord or said successor may terminate this Lease by giving Tenant not less than six (6) months prior written notice of said termination. Said notice shall specify the date of termination, which date may be
on any day of the month. Tenant shall vacate the Promises on or before the termination date; provided, however, that Rent shall be owed and paid up to and including the termination date. 
 In the event this Lease Is terminated by Landlord as provided in this Article 36, and provided that Tenant shall not be in default of any of the covenants, terms and conditions in this Lease contained, and shall
vacate the Premises on or before the termination date, Tenant shall be entitled to receive from Landlord one hundred percent (100%) of that unamortized portion of Tenant’s Improvements made during the term hereof, depreciated on a
straight-line basis not to exceed five (5) years. Tenant hereby releases and forever discharges Landlord, and indemnifies and, holds Landlord harmless, from and against any and all claims arising from such termination of the Lease
pursuant to this Article 36. 

 37. SUBORDINATION. 
 37.1 Subordination. This Lease, at Landlord’s option, shall be subject and subordinate to the lien of any mortgages or deeds of trust in any amount or amounts whatsoever now or hereafter placed on or
against the land or improvements or either thereof, of which the Premises are a part, or on or against Landlord’s interest or estate therein, without the necessity of the execution and delivery of any further instruments on the part of Tenant
to effectuate such subordination. If any mortgagee or trustee shall elect to have this Lease prior to the lien of its mortgage or deed of trust, and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such mortgage or
deed of trust, whether this Lease is dated prior or subsequent to the date of said mortgage or deed of trust or the date of the recording thereof. 
 37.2 Subordination Agreements. Tenant covenants and agrees to execute and deliver upon demand on forms supplied by Landlord without charge therefor, such further instruments evidencing such subordination of this Lease to the lien of
any such mortgages or deeds of trust as may be required by Landlord. Tenant hereby appoints Landlord as its attorney-in-fact, irrevocably, to execute and deliver any such agreements, instruments, releases or other documents. 
 37.3 Quiet Enjoyment. Landlord covenants and agrees with Tenant that upon Tenant’s paying Rent and other monetary sums due under the Lease
and performing Tenant’s covenants and conditions, Tenant shall and may peaceably and quietly have, hold and enjoy the Premises for the Lease Term, subject however, to the terms of the Lease and of any ground lease, that may be prior to this
Lease, and any mortgage or deed of trust as per Paragraph 37.1 of this Lease. 
 37.4 Estoppel Certificate. 
 37.4.1 Tenant shall at any time and from time to time upon not less than three (3) days prior written notice from Landlord execute,
acknowledge and deliver to Landlord a statement in writing: (i) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and, certifying that this Lease as so modified is in
full force and effect) and the date to which the rental, security deposit and other charges are paid in advance, if any; and (ii) acknowledging that there are not, to Tenant’s knowledge, any uncured defaults on the part of the Landlord
hereunder, or specifying such defaults, if any are claimed; and (iii) setting forth the date of commencement of rents and expiration of the Lease Term. Any such statement may be conclusively relied upon by any prospective purchaser or
encumbrancer of all or any portion of the Premises or the Building. 
 37.4.2 If Landlord desires to finance or refinance the Building
or any part thereof, Tenant hereby agrees to deliver to any lender designated by Landlord such financial statements of Tenant as may be reasonably required by such lender or, if acceptable to the lending institution, a certified statement signed by
Tenant (if Tenant is a corporation, by an authorized officer) setting forth the net worth of Tenant. All such financial statements shall be received by Landlord in confidence and shall be used only for the purposes herein set forth. 

 37.5 Mortgagee Protection. Tenant agrees to give any mortgagee and/or trust deed holder, by
certified mail, return receipt requested, a copy of any, notice of default served upon Landlord, provided that prior to such notice Tenant has been notified in writing (by way of Notice of Assignment of Rents and Leases or otherwise) of the address
of such mortgagee and/or trust deed holder. Tenant further agrees that if Landlord shall have failed to cure such default within the time provided for in this Lease, then any such mortgagee and/or trust deed holder shall have an additional thirty
(30) days within which to cure such default, or, if such default cannot be cured within that time then such additional time as may be necessary, provided that within such additional thirty-day period such mortgagee and/or trust need holder has
commenced and is diligently pursuing the remedies necessary to cure such default (including but not limited to commencement of foreclosure proceedings if necessary to effect such cure), in which event this Lease shall not be terminated. 

38. CONDEMNATION. If the Premises or any portion thereof shall be taken under the power of eminent domain, or sold by Landlord under the threat of the exercise
of said power (all of which is herein referred to as “condemnation”), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than twenty-five
percent (25%) of the Floor Area of the Premises; or more than twenty-five percent (25%) of the Building’s land area, or more than twenty-five percent (25%) of the physical structure of the Building shall be taken by condemnation,
either Landlord or Tenant may terminate this Lease as of the date the condemning authority takes possession by providing the other with written notice of such election within sixty (60) days after Landlord shall have notified Tenant of the
taking or, in the absence of such notice, then within sixty (60) days after the condemning authority shall have taken possession. 
 If this Lease is
not terminated by either Landlord or Tenant, it shall remain in full force and effect as to the portion of the Premises remaining provided, however, that Base Monthly Rent shall be reduced in the proportion that the Floor Area of the Premises taken
bears to the total Floor Area of the Premises as specified in Article 1.1 hereof. In the event this Lease is not so terminated, Landlord agrees, at its sole cost and as soon as reasonably possible, to restore the Premises to a complete unit of like
quality and character to that existing prior to the condemnation. All awards for the taking of any part of the Premises or any payment made under the threat of the exercise of power of eminent domain shall be the property of Landlord, whether made
as compensation for diminution of value of the leasehold or for the taking of the fee or as severance damages; provided, however, that Tenant shall be entitled to any award for loss of or damage to Tenants trade fixtures and removable personal
property. Tenant may prosecute Tenant’s own claims against the taking authority for depreciation thereof and costs of removal and relocation. 
 39.
NOTICES. Whenever under this Lease provision is made for any demand, notice or declaration of any kind, or where it is deemed desirable or necessary by either party to 

 give or serve any such notice, demand or declaration to the other party, it shall be in writing and either
(1) served personally, or (ii) sent by first-class mail, postage prepaid, in which event notice shall be deemed to have been served five (5) days after having been deposited in the United States Mail, or (iii) by Federal Express,
Airborne Express, DHL or other comparable courier. All notices shall be sent to the addresses set forth below or at such other addresses as provided in writing by the parties hereto to the other 
  

			
	TO LANDLORD:	  	Doncaster Investments NV, Inc.
		  	Melbourne Tower, Suite 500
		  	1511 Third Avenue
		  	Seattle, WA 98101
		
	TO TENANT:	  	HQ Sustainable Maritime Industries, Inc.
		  	Melbourne Tower, Suite 788
		  	Third Avenue
		  	Seattle, WA 98101

 40. ENUMERATION OF EXHIBITS. The Exhibits enumerated in this provision and attached to this Lease are
incorporated by reference. Each party agrees to perform any obligations on its part stated in any and all of these Exhibits: 
 EXHIBIT A
– Premises 
 EXHIBIT B - Rules and Regulations 
 41. CORPORATE AUTHORITY. If Tenant is a corporation, each individual executing this Lease on behalf of said corporation represents and warrants that he or she is duly authorized to execute and deliver this
Lease on behalf of said corporation in accordance with a duly adopted resolution its Board of Directors or in accordance with its Bylaws, and that this Lease is binding upon said corporation in accordance with its terms. A certified copy of such
resolution or appropriate provision of said Bylaws shall be furnished to Landlord within ten (10) days of the full execution of this Lease. 
 41.1 TIME. Time is of the essence of this Lease and each and 311 of its provisions in which performance is a factor, except as to the conditions relating to delivery of possession of the Premises to Tenant. 
 42. CAPTIONS. Captions to Articles (including subsections within Articles) are not a part of this Lease and shall have no effect upon the construction or
interpretation of any part of this Lease. 
 43. SEVERABILITY. The invalidity of any provision of this Lease, as determined by a court of competent
jurisdiction, shall in no way affect the validity of any other provision hereof. 
 44. ENTIRE AGREEMENT; MODIFICATION. This Lease, including all
attachments hereto, contains the entire agreement of the parties, and no representations, promises or agreements, oral or otherwise, made by or between the parties (or any of their representatives, actual or purported) not embodied herein shall be
of any force and effect 

 Neither this Lease nor any provision hereof may be changed, waived, discharged or terminated orally, but only by
instrument in writing executed by Landlord and Tenant. 
 IN WITNESS WHEREOF, the parties hereto have executed this Lease on the dates set forth below.

  

			
	 DONCASTER INVESTMENTS NV, INC.
 as
Landlord
	  	 HQ SUSTAINABLE MARITIME
 INDUSTRIES, INC. as
Tenant

		
	 /s/ Lawrence Katz
	  	 /s/ Norbert Sporns

	Lawrence Katz, Vice President	  	Norbert Sporns, President and CEO
		
	 November 30, 2005
	  	 November 22, 2005

	Date	  	Date

 (Acknowledgments Attached)Form of Stock Purchase Agreement

 EXHIBIT 10.19 
  
 STOCK PURCHASE AGREEMENT 
 BETWEEN 
  

 AND 
  CERTAIN INVESTORS

 (AS LISTED ON SCHEDULE A) 
 DATED 
  

  

 STOCK PURCHASE AGREEMENT 
 This STOCK PURCHASE AGREEMENT (the “Agreement”) is made and entered into as of 21st day of April 4, 2004 by
and among Process Equipment, Inc., a corporation organized and existing under the laws of the State of Nevada (the “Company”), and certain investors, (hereinafter referred to collectively as “Investor”
or “Investors”) as listed on Schedule A herein (each agreement with an Investor being deemed a separate and independent agreement between the Company and such Investor). 
 PRELIMINARY STATEMENT: 
 WHEREAS, the Investors wish to purchase, upon the terms and subject to the conditions of this Agreement, a minimum of One Million Dollars ($1,000,000) and a maximum of One Million Two Hundred Ninety Two Thousand Dollars ($1,292,000)
of investment units (“Units”), at a price of $34,000 per Unit consisting of (i) 200,000 shares of the Company’s Common Stock (on a when-issued basis) (ii) 80,000 Class C Common Stock Purchase Warrants and (iii) 80,000
Class D Common Stock Purchase Warrants; and 
 WHEREAS, the parties intend to memorialize the purchase and sale of such Units;

 NOW, THEREFORE, in consideration of the mutual covenants and premises contained herein, and for other good and valuable
consideration, the receipt and adequacy of which are hereby conclusively acknowledged, the parties hereto, intending to be legally bound, agree as follows: 
 ARTICLE I 
 INCORPORATION BY REFERENCE, SUPERSEDER AND DEFINITIONS 
 1.1 Incorporation by Reference. The foregoing recitals, Schedule A and the Exhibits attached hereto and referred to herein, are hereby acknowledged to be
true and accurate, and are incorporated herein by this reference. 
 1.2 Superseder. This Agreement, to the extent that it is inconsistent with any
other instrument or understanding among the parties governing the affairs of the Company, shall supersede such instrument or understanding to the fullest extent permitted by law. A copy of this Agreement shall be filed at the Company’s
principal office. 
 1.3 Certain Definitions. For purposes of this Agreement, the following capitalized terms shall have the following meanings (all
capitalized terms used in this Agreement that are not defined in this Article 1 shall have the meanings set forth elsewhere in this Agreement): 
  

	 	1.3.1	“1933 Act” means the Securities Act of 1933, as amended. 

  

 1.3.2 “1934 Act” means the Securities Exchange Act of 1934, as amended.

 1.3.3 “Affiliate” means a Person or Persons directly or indirectly, through one or more intermediaries,
controlling, controlled by or under common control with the Person(s) in question. The term “control,” as used in the immediately preceding sentence, means, with respect to a Person that is a corporation, the right to the exercise,
directly or indirectly, of more than 50 percent of the voting rights attributable to the shares of such controlled corporation and, with respect to a Person that is not a corporation, the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of such controlled Person. 
 1.3.4 “Articles”. The Articles of
Incorporation of the Company, as the same may be amended from time to time. 
 1.3.6 “Common Stock” means the shares
of common stock of the Company, par value $0.001 per share. 
 1.3.7 “Effective Date” shall mean the date the
Registration Statement of the Company covering the Shares being subscribed for hereby is declared effective. 
 1.3.7 “Final
Closing” means the earlier of April 30, 2004 or upon all of the conditions of Article VIII and Article IX herein are satisfied, unless extended by mutual consent by the Company and the Investors until May 15, 2004. 
 1.3.8 “Material Adverse Effect” shall mean any adverse effect on the business, operations, properties or financial condition of
the Company that is material and adverse to the Company and its subsidiaries and affiliates, taken as a whole and/or any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the ability of the Company to
perform any of its material obligations under this Agreement or the Registration Rights Agreement or to perform its obligations under any other material agreement. 
 1.3.9 “Nevada Act” means the Nevada revised Statutes, as amended. 
 1.3.10
“Person” means an individual, partnership, firm, limited liability company, trust, joint venture, association, corporation, or any other legal entity. 
 1.3.11 “Purchase Price” means the purchase price for the Units. 
 1.3.12 Registration Rights Agreement” shall mean the registration rights agreement between the Investors and the Company attached
hereto as Exhibit B. 
 1.3.13 “Registration Statement” shall mean the registration statement under the 1933
Act to be filed with the Securities and Exchange Commission for the registration of the Shares pursuant to the Registration Rights Agreement. 
  
  
 STOCK PURCHASE AGREEMENT BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 PAGE 2 OF 22 
  
  

 1.3.14 “SEC” means the Securities and Exchange Commission. 
 1.3.15 “SEC Documents” shall mean the Company’s latest Form 10-K or 10-KSB as of the time in question, all Forms 10-Q or
10-QSB and 8-K filed thereafter, and the Proxy Statement for its latest fiscal year as of the time in question until such time as the Company no longer has an obligation to maintain the effectiveness of a Registration Statement as set forth in the
Registration Rights Agreement. 
 1.3.16 “Shares” shall mean, collectively, the shares of Common Stock of the
Company being subscribed for hereunder and those shares of Common Stock issuable to the Investor upon exercise of each of the Warrants. 
 1.3.17 “Units” shall mean the Common Stock and the Warrants collectively included in each investment unit purchased hereunder. 
 1.3.18 “Warrants” shall mean, collectively, the Class C and D Common Stock purchase warrants in the form attached hereto as Exhibit A. 
 ARTICLE II 
 SALE AND PURCHASE OF
THE COMPANY’S UNITS 
 AND PURCHASE PRICE 
 2.1 Sale of Units Upon the terms and subject to the conditions set forth herein, and in accordance with applicable law, the Company agrees to sell, and the Investors, severally and not jointly, agree to purchase the following
Units with an aggregate principal amount of a minimum of One Million Dollars ($1,000,000) and a maximum of One Million Two Hundred Ninety Two Thousand Dollars ($1,292,000) in accordance with the commitments set forth on Schedule A attached
hereto, at the Purchase Price on or prior to the Final Closing, each Unit consisting of: 
 2.1.1 Common Stock Upon execution
and delivery of this Agreement and the Company’s receipt of the Purchase Price (as described herein), each Investor shall have the right receive shares of Common Stock of the Company, when issued, at a value of $ 0.17 per share. The
Company shall register those shares of Common Stock pursuant to the terms and conditions of a Registration Rights Agreement attached hereto as Exhibit B. The Registration Rights Agreement shall include, but not be limited to, such terms and
conditions as the registration of the shares of Common Stock sold hereunder, unlimited “piggy back” registration rights, and liquidated damages to the Investor of twenty-four percent (24%) of the Purchase Price per annum payable on a
monthly basis if the shares of Common Stock are not registered pursuant to an effective Registration Statement within six months of the Closing Date or if the shares of Common Stock are registered pursuant to an effective Registration Statement and
such 
  
  
 STOCK PURCHASE AGREEMENT BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 PAGE 3 OF 22 

 
Registration Statement or other Registration Statement including the shares of Common Stock is not effective in the period from six months following the
Final Closing through two years following the Closing Date, except that the obligation of the Company terminates when the holder of shares of Common Stock no longer holds more than twenty percent (20%) of their shares of Common Stock as
acquired herein. 
 2.1.2 Warrants Upon execution and delivery of this Agreement and the Company’s receipt of the
Purchase Price (as described herein), each Investor shall receive (i) four-tenths (0.4) Class C Warrant and (ii) four-tenths (0.4) Class D Warrant for every share of Common Stock purchased hereunder. The Warrants, forms of which are
attached hereto as Exhibit A shall include, but not be limited to, such terms and conditions as the exercise price of $0.42 per share for the Class C Warrant and $0.84 per share for the Class D Warrant (as adjusted for each Warrant from time
to time as provided in the Warrant), an expiration date of five (5) years from the date of issuance or eighteen months from effectiveness of a Registration Statement, whichever is longer, with a cashless exercise provision. 
 2.2 Purchase Price. The purchase price to be paid by each Investor shall be $34,000 per Unit, as the case may be, in accordance with Schedule
A attached hereto, and shall be payable in United States Dollars. Payment of the Purchase Price shall be made at or prior to each Closing (as hereinafter defined) according to the following instructions: 
 Payment by check shall be as follows: 
 _______________ as
Escrow Agent for __________________ 
 Payment by wire shall be as follows: 
 ____________ 
 ABA# ______________ 
 FAO: _______________ 
 Acct # ______________

 FFC: _______________ 
 2.3
Escrow. The funds received by Feldman Weinstein LLP (the “Escrow Agent”) in accordance with Section 2.2 of this Agreement shall be held in escrow pursuant to the terms and conditions of the Escrow Agreement attached
hereto as Exhibit D. 
 ARTICLE II 
 FINAL CLOSING AND DELIVERIES AT CLOSING 
 3.1 Final Closing The closing of the transactions contemplated by this Agreement
(each, a “Closing”), unless expressly determined herein, shall be held at mutually agreeable locations in New York, NY, at or prior to 5:00 P.M. local time, on the Final Closing or on such other date 
  
  
 STOCK
PURCHASE AGREEMENT BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 PAGE 4 OF 22 

 and at such other place as may be mutually agreed by the parties, including closing by facsimile with originals to
follow. 
 3.2 Deliveries by the Company. In addition to and without limiting any other provision of this Agreement, the Company agrees to
deliver, or cause to be delivered, to the Investors, the following: 
  

	 	(a)	When Issued, Certificates representing the Common Stock purchased hereunder, which certificates shall be duly issued in the name of each Investor; 

	 	(b)	At or prior to Closing, an executed Agreement; 

	 	(c)	Within seven (7) business days of each Closing, executed Warrants in the name of each Investor in the form attached hereto as Exhibit A; 

	 	(d)	At or prior to Closing, an executed Registration Rights Agreement between the Investor and the Company in the form attached hereto as Exhibit B; 

	 	(e)	At or prior to Closing, confirmation that the provisions of Paragraph 6.6 herein have been satisfied or commenced, as appropriate; and 

	 	(f)	Such other documents or certificates as shall be reasonably requested by the each Investor or its counsel. 

 3.3 Deliveries by Investor. In addition to and without limiting any other provision of this Agreement, each Investor agrees to deliver, or cause to be
delivered, to the Company, as appropriate, the following: 
  

	 	(a)	At or prior to Closing, the Purchase Price; 

	 	(b)	At or prior to Closing, an executed Agreement; and 

	 	(c)	At or prior to Closing, an executed Registration Rights Agreement between the Investor and the Company in the form attached hereto as Exhibit B. 

 In the event any document provided to the other party in Paragraphs 3.2 and 3.3 herein are provided by facsimile, the party shall forward an original document to the
other party within seven (7) business days. 
 3.4 Further Assurances. The Company and each Investor shall, upon request, on or after the
Final Closing, cooperate with each other (specifically, the Company shall cooperate with each Investor, and each Investor shall cooperate with the Company, and no Investor is required to cooperate with any other Investor) by furnishing any
additional information, executing and delivering any additional documents and/or other instruments and doing any and all such things 
  
  
 STOCK PURCHASE AGREEMENT BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 PAGE 5 OF 22 

 as may be reasonably required by the parties or their counsel to consummate or otherwise implement the transactions
contemplated by this Agreement. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 The Company represents and warrants to the Investors
(which warranties and representations shall survive the Closing regardless of what examinations, inspections, audits and other investigations the Purchaser has heretofore made or may hereinafter make with respect to such warranties and
representations) as follows: 
 4.1 Organization and Qualification. The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Nevada, and has the requisite corporate power and authority to own, lease and operate its properties and to carry on its business as it is now being conducted and is duly qualified to do business in any other
jurisdiction by virtue of the nature of the businesses conducted by it or the ownership or leasing of its properties, except where the failure to be so qualified will not, when taken together with all other such failures, have a Material Adverse
Effect on the business, operations, properties, assets, financial condition or results of operation of the Company and its subsidiaries taken as a whole. 
 4.2 Certificate of Incorporation and By-Laws. The complete and correct copies of the Company’s Certificate of Incorporation and By-Laws, as amended or restated to date which have been filed with the Securities and
Exchange Commission are a complete and correct copy of such document as in effect on the date hereof and as of each Closing. 
  

	4.3	Capitalization. 

 4.3.1 The authorized and
outstanding capital stock of the Company is set forth below. All shares of capital stock have been duly authorized and are validly issued, and are fully paid and no assessable, and free of preemptive rights. 
 4.3.2 Except pursuant to this Agreement, and as set forth below, as of the date hereof and as of each Closing, there are not now outstanding options,
warrants, rights to subscribe for, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exchangeable for, shares of any class of capital stock of the Company, or agreements, understandings or
arrangements to which the Company is a party, or by which the Company is or may be bound, to issue additional shares of its capital stock or options, warrants, scrip or rights to subscribe for, calls or commitment of any character whatsoever
relating to, or 
  
  
 STOCK PURCHASE AGREEMENT BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 PAGE 6 OF 22 

 
securities or rights convertible into or exchangeable for, any shares of any class of its capital stock. The Company agrees to inform the Investors in
writing of any additional warrants granted prior to each Closing. 
  

					
	 Stockholder Schedule --/--/----
	  	No Shares	  	Type
			
		  	__________	  	Common
			
		  	__________	  	Common
			
		  	__________	  	Common
			
		  	__________	  	Common
			
	 	  	__________	  	Common
			
	 Total
	  	__________	  	
			
	 Warrantholder Schedule --/--/----
	  	No Shares	  	 
			
	 Total
	  	__________	  	

  
 4.3.3 For a period of the
earlier of two years from Final Closing or until 80% of the Warrants have been exercised, the Company will not: (i) issue any convertible preferred stock, convertible debt, floating conversion options, nor any other debt instrument that
converts into equity, (ii) include non-employees in any S-8 registration statement, or (iii) issue any common stock purchase warrants or options (other than in connection with an Employee Stock Option or Director’s Stock Option Plan)
with an exercise price below $0.35 per share. Any of these clauses may be waived, in whole or in part, at the option of the purchasers of 75% of the Units. 
 4.3.4 The Company (i) upon each Closing will have full right, power, and authority to sell, assign, transfer, and deliver, by reason of record and beneficial ownership, to each Investor, the Warrants hereunder,
free and clear of all liens, charges, claims, options, pledges, restrictions, and encumbrances whatsoever; and (ii) upon issuance, will have full right, power, and authority to sell, assign, transfer, and deliver, by reason of record and
beneficial ownership, to each Investor, the Common Stock subscribed for hereunder, free and clear of all liens, charges, claims, options, pledges, restrictions, and encumbrances whatsoever. Upon delivery of and payment by each Investor of the
Purchase Price to the Company, such Investor will acquire good and marketable title to such Shares, free and clear of all liens, charges, claims, options, pledges, restrictions, and encumbrances whatsoever, other than restrictions under the 1933 Act
and restrictions upon exercise of the Warrants and issuance of the Common Stock subject to the Company’s obligation to increase its authorized share capital pursuant to Section 6.2 below. 
 4.4 Authority. The Company has all requisite corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and
to consummate the transactions contemplated hereby, except that the Company must obtain shareholder approval for an 
  
  
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 amendment to its Certificate of Incorporation to increase its authorized number of shares of Common Stock prior to
issuance of the Common Stock purchased hereunder and prior to any exercise of the Warrants, pursuant to Section 6.2 below. The execution and delivery of this Agreement by the Company and the consummation of the transactions contemplated hereby
have been duly authorized by all necessary corporate action and no other corporate proceedings on the part of the Company is necessary to authorize this Agreement or to consummate the transactions contemplated hereby except as disclosed in this
Agreement. This Agreement has been duly executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as may be limited by
bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting the enforcement of creditors’ rights generally and general principles of equity. 
 4.5 No Conflict; Required Filings and Consents. The execution and delivery of this Agreement by the Company does not, and the performance by the Company of their respective obligations hereunder will
not: (i) conflict with or violate the Articles or By-Laws of the Company, except as noted in Section 4.4 above; (ii) conflict with, breach or violate any federal, state, foreign or local law, statute, ordinance, rule, regulation,
order, judgment or decree (collectively, “Laws”) in effect as of the date of this Agreement and applicable to the Company; or (iii) result in any breach of, constitute a default (or an event that with notice or lapse of
time or both would become a default) under, give to any other entity any right of termination, amendment, acceleration or cancellation of, require payment under, or result in the creation of a lien or encumbrance on any of the properties or assets
of the Company pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which the Company is a party or by the Company or any of its properties or assets is bound.
Excluding from the foregoing are such violations, conflicts, breaches, defaults, terminations, accelerations, creations of liens, or incumbency that would not, in the aggregate, have a Material Adverse Effect. 
 4.6 Report and Financial Statements. The Company’s Annual Report on Form 10-KSB, filed on April 30, 2003 with the Securities and Exchange
Commission contains the audited financial statements of the Company as of December 31, 2002 (the “Financial Statements”). Each of the balance sheets contained in or incorporated by reference into any such Financial
Statements (including the related notes and schedules thereto) fairly presented the financial position of the Company as of its date, and each of the statements of income and changes in stockholders’ equity and cash flows or equivalent
statements in such Financial Statements (including any related notes and schedules thereto) fairly presents and will fairly present the results of operations, changes in stockholders’ equity and changes in cash flows, as the case may be, of the
Company for the periods to which they relate, in each case in accordance with United States generally accepted accounting principles (“U.S. GAAP”) consistently applied during the periods involved, except in each
case as may be noted therein, subject to normal year-end audit adjustments in the case of unaudited statements. The books and records of the Company have been, and are being, maintained in all material respects in accordance with U.S. GAAP or such
other applicable internationally accepted legal and accounting requirements that the Company is subject to. 
  
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 4.7 Compliance with Applicable Laws. The Company is not in violation of, or, to the knowledge of the
Company is under investigation with respect to or has been given notice or has been charged with the violation of any Law of a governmental agency, except for violations which individually or in the aggregate do not have a Material Adverse Effect.

 4.8 Brokers. Except for Westminster Securities Corporation, no broker, finder or investment banker is entitled to any brokerage,
finder’s or other fee or Commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company. 
 4.9 SEC Documents. The Company acknowledges that it is a publicly held company and has made available to the Investors after demand true and complete copies of any requested SEC Documents. The Company
has registered its Common Stock pursuant to Section 12 of the 1934 Act, and the Common Stock is traded on the OTC Bulletin Board Market of the National Association of Securities Dealers, Inc. The Company has received no notice, either oral or
written, with respect to the continued eligibility of the Common Stock for such trading, and the Company has maintained all requirements for the continuation of such trading. The Company has not provided to the Investors any information that,
according to applicable law, rule or regulation, should have been disclosed publicly prior to the date hereof by the Company, but which has not been so disclosed. As of their respective dates, the SEC Documents complied in all material respects with
the requirements of the 1934 Act, and rules and regulations of the SEC promulgated thereunder and the SEC Documents did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made, not misleading that the Investor has received from the Company reports with the Securities and Exchange Commission and with the NASD. 
 4.10 Litigation. To the knowledge of the Company, no litigation, claim, or other proceeding before any court or governmental agency is pending or
threatened against the Company. 
 4.11 Exemption from Registration. Subject to the accuracy of the Investors’ representations in Article
V, except as required pursuant to the Registration Rights Agreement, the sale of the Units will not require registration under the 1933 Act and/or any applicable state securities law. When validly converted in accordance with the terms of the
Warrants, the Shares underlying the Warrants will be duly and validly issued, fully paid, and non-assessable. The Company is issuing the Units in accordance with and in reliance upon the exemption from securities registration afforded, inter alia,
by Rule 506 under Regulation D as promulgated by the SEC under the 1933, and/or Section 4(2) of the 1933 Act. 
 4.12 No General Solicitation or
Advertising in Regard to this Transaction. Neither the Company nor any of its Affiliates nor, to the knowledge of the Company, any Person acting on its or their behalf (i) has conducted or will conduct any general solicitation (as that
term is used 
  
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 in Rule 502(c) of Regulation D as promulgated by the SEC under the 1933 Act) or general advertising with respect to the
sale of the Units, or (ii) made any offers or sales of any security or solicited any offers to buy any security under any circumstances that would require registration of the Units, under the 1933 Act, except as required herein. 
 4.13 No Material Adverse Change. Since December 31, 2003, no Material Adverse Effect has occurred or exists with respect to the Company that has not
been disclosed in the SEC Documents. No material supplier has given notice, oral or written, that it intends to cease or reduce the volume of its business with the Company from historical levels. Since December 31, 2003, no event or
circumstance has occurred or exists with respect to the Company or its businesses, properties, prospects, operations or financial condition, that, under any applicable law, rule or regulation, requires public disclosure or announcement prior to the
date hereof by the Company but which has not been so publicly announced or disclosed in writing to the Investors. 
 4.14 Internal Controls And
Procedures. To the Company’s knowledge, it is in compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it. The Company maintains books and records and internal accounting controls which provide
reasonable assurance that (i) all transactions to which the Company or any subsidiary is a party or by which its properties are bound are executed with management’s authorization; (ii) the recorded accounting of the Company’s
consolidated assets is compared with existing assets at regular intervals; (iii) access to the Company’s consolidated assets is permitted only in accordance with management’s authorization; and (iv) all transactions to which the
Company or any subsidiary is a party or by which its properties are bound are recorded as necessary to permit preparation of the financial statements of the Company in accordance with U.S. generally accepted accounting principles. 
 4.15 Full Disclosure. No representation or warranty made by the Company in this Agreement and no certificate or document furnished or to be furnished to
the Purchaser pursuant to this Agreement contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading. 
 ARTICLE V 
 REPRESENTATIONS AND
WARRANTIES OF THE INVESTORS 
 Each Investor, severally and not jointly, as to himself or itself and not as to any other Investor, represents and warrants
to the Company that: 
 5.1 Organization and Standing of the Investor. Where the Investor is a corporation, such Investor is duly incorporated,
validly existing and in good standing under the laws of the state in which it was formed. The state in which any offer to purchase shares hereunder was made or 
  
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 accepted by such Investor is the state shown as such Investor’s address. If an entity, the Investor was not formed
for the purpose of investing solely in the Units the subject of this Agreement. 
 5.2 Authorization and Power. The Investor has the requisite
power and authority to enter into and perform this Agreement and to purchase the Units being sold to it hereunder. The execution, delivery and performance of this Agreement by the Investor and the consummation by the Investor of the transactions
contemplated hereby have been duly authorized by all necessary corporate action where appropriate. This Agreement and the Registration Rights Agreement have been duly executed and delivered by the Investor and at the Closing shall constitute valid
and binding obligations of the Investor enforceable against the Investor in accordance with their terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application. 
 5.3 No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Investor of the transactions contemplated hereby or relating hereto do not and will not
(i) result in a violation of such Investor’s charter documents or bylaws where appropriate or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give
to others any rights of termination, amendment, acceleration or cancellation of any agreement, indenture or instrument to which the Investor is a party, or result in a violation of any law, rule, or regulation, or any order, judgment or decree of
any court or governmental agency applicable to the Investor or its properties (except for such conflicts, defaults and violations as would not, individually or in the aggregate, have a Material Adverse Effect on such Investor). The Investor is not
required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of such Investor’s obligations under this Agreement or to
purchase the Units in accordance with the terms hereof, provided that for purposes of the representation made in this sentence, the Investor is assuming and relying upon the accuracy of the relevant representations and agreements of the Company
herein. 
 5.4 Financial Risks. The Investor acknowledges that such Investor is able to bear the financial risks associated with an investment
in the Units and that it has been given full access to such records of the Company and the subsidiaries and to the officers of the Company and the subsidiaries as it has deemed necessary or appropriate to conduct its due diligence investigation. The
Investor is capable of evaluating the risks and merits of an investment in the Units by virtue of its experience as an investor and its knowledge, experience, and sophistication in financial and business matters and the Investor is capable of
bearing the entire loss of its investment in the Units. 
 5.5 Accredited Investor. The Investor is (i) an “accredited investor”
as that term is defined in Rule 501 of Regulation D promulgated under the 1933 Act by reason of Rule 501(a)(3) and 
  
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 (6), (ii) experienced in making investments of the kind described in this Agreement and the related documents,
(iii) able, by reason of the business and financial experience of its officers (if an entity) and professional advisors (who are not affiliated with or compensated in any way by the Company or any of its affiliates or selling agents), to
protect its own interests in connection with the transactions described in this Agreement, and the related documents, and (iv) able to afford the entire loss of its investment in the Units. 
 5.6 Brokers. Except for Westminster Securities Corporation, who shall be paid by the Company, no broker, finder or investment banker is entitled to any
brokerage, finder’s or other fee or Commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Investors. 
 5.7 Knowledge of Company. Each Investor and such Investor’s advisors, if any, have been, upon request, furnished with all materials relating to the business, finances and operations of the Company
and materials relating to the offer and sale of the Units. Each Investor and such Investor’s advisors, if any, have been afforded the opportunity to ask questions of the Company and have received complete and satisfactory answers to any such
inquiries. 
 5.8 Risk Factors Each Investor understands that such Investor’s investment in the Units involves a high degree of risk. Each
Investor understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Units. Each Investor warrants that such Investor is able to bear the
complete loss of such Investor’s investment in the Units. 
 5.9 Full Disclosure. No representation or warranty made by the Investor in
this Agreement and no certificate or document furnished or to be furnished to the Company pursuant to this Agreement contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact necessary to make
the statements contained herein or therein not misleading. Except as set forth or referred to in this Agreement, each Investor does not have any agreement or understanding with any person relating to acquiring, holding, voting or disposing of any
equity securities of the Company. 
 ARTICLE VI 
 COVENANTS OF THE COMPANY 
 6.1. Registration Rights. The Company shall cause the Registration Rights
Agreement to remain in full force and effect and the Company shall comply in all material respects with the terms thereof. 
 6.2. Increase in Share
Capital. The Company shall hold a meeting of its stockholders as soon as practical, at which meeting the Company shall seek the approval of its shareholders for the issuance of the Shares in accordance with Nevada or other applicable law.
The Company’s board of directors shall recommend to the stockholders that they vote in favor of such proposal, 
  
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 and the Company shall use all efforts the Company’s Board of Directors determines to be commercially reasonable to
solicit proxies in favor of such proposal and to secure such favorable vote. In addition, holders of a minimum of fifty percent (50%) of the Company’s outstanding shares agree to vote in favor of such proposal, such binding agreements
attached hereto as Exhibit C. In the event a favorable vote is achieved, the Company agrees thereafter to reserve and keep available at all times, free of preemptive rights, shares of Common Stock for the purpose of enabling the Company to issue the
Shares. 
 6.3. Listing Of Common Stock. The Company hereby agrees to maintain the listing or trading of the Common Stock on a publicly traded
market. The Company will take all action to continue the listing or trading of its Common Stock on a publicly traded market and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of
such publicly traded market. 
 6.4. Exchange Act Registration. The Company will cause its Common Stock to continue to be registered under
Section 12(b) or (g) of the 1934 Act, will use its best efforts to comply in all respects with its reporting and filing obligations under the 1934 Act, and will not take any action or file any document (whether or not permitted by the 1934
Act or the rules thereunder) to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under the 1934 until the Investors have disposed of all of their Shares. 
 6.5. Corporate Existence; Conflicting Agreements. The Company will take all steps necessary to preserve and continue the corporate existence of the
Company. The Company shall not enter into any agreement, the terms of which agreement would restrict or impair the right or ability of the Company to perform any of its obligations under this Agreement or any of the other agreements attached as
exhibits hereto. 
 6.6 Independent Directors. The Company will cause the appointment of at least two independent directors within sixty
(60) days. If no such Directors are appointed, the Company shall pay to the Investors, pro rata, as liquidated damages and not as a penalty, an amount equal to twelve percent (12%) of the Purchase Price per annum, payable monthly. The
parties agree that the only damages payable for a violation of the terms of this Agreement with respect to which liquidated damages are expressly provided shall be such liquidated damages. Nothing shall preclude the Investor from pursuing or
obtaining specific performance or other equitable relief with respect to this Agreement. The parties hereto agree that the liquidated damages provided for in this Section 6.6 constitute a reasonable estimate of the damages that may be incurred
by the Investor by reason of the failure of the Company to appoint at least two independent directors in accordance with the provision hereof. 
 6.7
Use of Proceeds. The Company will use the proceeds from the sale of the Units (excluding amounts paid by the Company for legal and administrative fees in connection with the sale of the Units) for working capital. 
  
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 6.8 Right of First Refusal. So long as the Registration Statement is not effective for the Shares
subsequent to the Required Effectiveness Date (other than pursuant to a Black-Out Period) and any Investor holds Registrable Shares, each such Investor shall have the right to participate in any financing by the Company on a pro rata basis on the
same terms and conditions as other investors in such offering. Unless defined herein, capitalized terms in this Section 6.8 shall have the meanings ascribed to them in the Registration Rights Agreement. 
 6.9 Price Adjustment. If, within the 24 months following the Final Closing, the Company closes on the sale of a convertible note or notes, shares of Common
Stock, or shares of Preferred Stock, or warrants, rights or options to purchase Common Stock (other than pursuant to an Employee Stock Option Plan or Directors’ Stock Option Plan) at a price per share of Common Stock, or with a conversion or
exercise right to acquire Common Stock at a price per share of Common Stock, that is less than the Purchase Price (as adjusted for any stock splits, stock dividends, or the like subsequent to the Final Closing) (collectively, the “Subsequent
Purchase Price”), the Company shall make a post-Closing adjustment in the Purchase Price so that the effective price per share paid by the Investors at Closing is reduced to the Subsequent Purchase Price as applied to the Investors’ then
current holdings. Within five business days following the closing of the subsequent sale, the Company shall pay to the Investors the product of the number of Shares owned by Investors on the date of the subsequent sale times the difference between
the Purchase Price and the Subsequent Purchase Price. Payment shall be made in cash or issuance of the notes, Preferred Stock, Common Stock, unit offering or whichever financing is causing the triggering of this provision, at the option of each
individual Investor. 
 ARTICLE VII 
 COVENANTS OF THE INVESTORS 
 7.1 Compliance with Law. The Investor’s trading activities with
respect to shares of the Company’s Common Stock will be in compliance with all applicable state and federal securities laws, rules and regulations and rules and regulations of any public market on which the Company’s Common Stock is listed
or traded. 
 7.2 Transfer Restrictions. The Investors acknowledge that (1) the Warrants and Shares have not been registered under the
provisions of the 1933 Act, and may not be transferred unless (A) subsequently registered thereunder or (B) the Investors shall have delivered to the Company an opinion of counsel, reasonably satisfactory in form, scope and substance to
the Company, or Company’s counsel shall have delivered to the Investors an opinion of counsel, to the effect that the Shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration; and (2) any
sale of the Shares made in reliance on Rule 144 promulgated under the 1933 Act may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any resale of such Securities under circumstances in which the
seller, or the person through whom the sale is made, may be deemed to be an underwriter, as that term is 
  
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 used in the 1933 Act, may require compliance with some other exemption under the 1933 Act or the rules and regulations of
the SEC thereunder. 
 7.3 Restrictive Legend. The Investor’s acknowledge and agree that the Shares, and, until such time as the Shares
have been registered under the 1933 Act and sold in accordance with an effective Registration Statement, certificates and other instruments representing any of the Shares shall bear a restrictive legend in substantially the following form (and a
stop-transfer order may be placed against transfer of any such Securities): 
 “THE SHARES OF COMMON STOCK REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, OR (3) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.” 
 7.4 Removal of Legend. The Company agrees to issue or cause its transfer
agent to issue certificates without restrictive legend within five (5) business days of the Company’s (or its transfer agent’s) receipt of a legended certificate at any time following the Effective Date accompanied by an appropriate
certificate of sale, or following any sale pursuant to Rule 144 accompanied by appropriate 144 paperwork and a legal opinion. 
 ARTICLE
VIII 
 CONDITIONS PRECEDENT TO THE COMPANY’S OBLIGATIONS 
 The obligation of the Company to consummate the transactions contemplated hereby shall be subject to the fulfillment, on or prior to each Closing, of the
following conditions: 
  

	8.1	No Termination. This Agreement shall not have been terminated pursuant to Article X hereof. 

 8.2 Representations True and Correct. The representations and warranties of the Investors contained in this Agreement shall be true and correct in all
material respects on and as of the each Closing with the same force and effect as if made on the each Closing. 
 8.3 Compliance with
Covenants. The Investors shall have performed and complied in all material respects with all covenants, agreements, and conditions required by this Agreement to be performed or complied by it prior to or at each Closing. 
  
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 8.4 No Adverse Proceedings. On each Closing, no action or proceeding shall be pending by any public
authority or individual or entity before any court or administrative body to restrain, enjoin, or otherwise prevent the consummation of this Agreement or the transactions contemplated hereby or to recover any damages or obtain other relief as a
result of the transactions proposed hereby. 
 ARTICLE IX 
 CONDITIONS PRECEDENT TO INVESTOR’S OBLIGATIONS 
 The obligation of the Investors to consummate
the transactions contemplated hereby shall be subject to the fulfillment, on or prior to each Closing unless specified otherwise, of the following conditions: 
  

	9.1	No Termination. This Agreement shall not have been terminated pursuant to Article X hereof. 

 9.2 Representations True and Correct. The representations and warranties of the Company contained in this Agreement shall be true and correct in all
material respects on and as of each Closing with the same force and effect as if made on the date of Closing. 
 9.3 Compliance with Covenants
. The Company shall have performed and complied in all material respects with all covenants, agreements, and conditions required by this Agreement to be performed or complied by it prior to or at each Closing. 
 9.4 No Adverse Proceedings. On each Closing, no action or proceeding shall be pending by any public authority or individual or entity before any court or
administrative body to restrain, enjoin, or otherwise prevent the consummation of this Agreement or the transactions contemplated hereby or to recover any damages or obtain other relief as a result of the transactions proposed hereby. 
 ARTICLE X 
 TERMINATION, AMENDMENT
AND WAIVER 
  

	10.1	Termination. This Agreement may be terminated at any time prior to the Closing Date: 

  

	 	10.1.1	by mutual written consent of the Investors and the Company; 

  
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 10.1.2 by the Company upon a material breach of any representation, warranty, covenant or agreement on
the part of any Investor set forth in this Agreement, or the Investor upon a material breach of any representation, warranty, covenant or agreement on the part of the Company set forth in this Agreement, or if any representation or warranty of the
Company or any Investor, respectively, shall have become untrue, in either case such that any of the conditions set forth in Article VIII or Article IX hereof would not be satisfied (a “Terminating Breach”), and such breach shall,
if capable of cure, not have been cured within five (5) days after receipt by the party in breach of a notice from the non-breaching party setting forth in detail the nature of such breach; 
 10.1.3 by either party, if the Final Closing is after April 30, 2004. 
 10.2 Effect of Termination. In the event of the termination of this Agreement pursuant to Paragraph 10.1 hereof, there shall be no liability on the part of the Company or the Investors or any of their
respective officers, directors, agents or other representatives and all rights and obligations of any party hereto shall cease. 
 10.3
Amendment. This Agreement may be amended by the parties hereto any time prior to each Closing by an instrument in writing signed by the parties hereto. 
 10.4 Waiver. At any time prior to the Final Closing, the Company or the Investors, as appropriate, may: (a) extend the time for the performance of any of the obligations or other acts of other party
or; (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto which have been made to it or them; or (c) waive compliance with any of the agreements or conditions
contained herein for its or their benefit. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the party or parties to be bound hereby. 
 ARTICLE XI 
 GENERAL PROVISIONS 
 11.1 Transaction Costs. Except as otherwise provided herein, each of the parties shall pay all of his or its costs and expenses (including attorney fees
and other legal costs and expenses and accountants’ fees and other accounting costs and expenses) incurred by that party in connection with this Agreement. 
 11.2 Indemnification. Each Investor, severally and not jointly agrees to defend and hold the Company (following each Closing) and its officers and directors harmless against and in respect 
  
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 of any and all claims, demands, losses, costs, expenses, obligations, liabilities or damages, including interest,
penalties and reasonable attorney’s fees, that it shall incur or suffer, which arise out of, result from or relate to any breach of this Agreement by such Investor or failure by such Investors to perform with respect to any of its
representations, warranties or covenants contained in this Agreement or in any exhibit or other instrument furnished or to be furnished under this Agreement. The Company agrees to defend and hold the Investor harmless against and in respect of any
and all claims, demands, losses, costs, expenses, obligations, liabilities or damages, including interest, penalties and reasonable attorney’s fees, that it shall incur or suffer, which arise out of, result from or relate to any breach of this
Agreement or failure by the Company to perform with respect to any of its representations, warranties or covenants contained in this Agreement or in any exhibit or other instrument furnished or to be furnished under this Agreement. 
 11.3 Headings. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement. 
 11.4 Entire Agreement. This Agreement (together with the Schedule, Exhibits, Warrants and documents
referred to herein) constitute the entire agreement of the parties and supersede all prior agreements and undertakings, both written and oral, between the parties, or any of them, with respect to the subject matter hereof. 
 11.5 Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been given (i) on the date they are
delivered if delivered in person; (ii) on the date initially received if delivered by facsimile transmission followed by registered or certified mail confirmation; (iii) on the date delivered by an overnight courier service; or
(iv) on the third business day after it is mailed by registered or certified mail, return receipt requested with postage and other fees prepaid as follows: 
 If to the Company: 
 Process Equipment, Inc. 
 14 Wall Street, 20th Floor 
 New York, NY
10005 
  
 With a copy to: 
 Baker McKenzie 
 805 Third Avenue 

New York, NY 10022 
 Attn: Howard H. Jiang,
Esq. 
  
 If to the Investors: 
  
 To the address listed on Schedule A herein or to the address
provided to the Company by an Investor. 
  
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 11.6 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of
being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any party. Upon such determination that any such term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as
to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible. 
 11.7 Binding Effect. All the terms and provisions of this Agreement whether so expressed or not, shall be binding upon, inure to the benefit of, and be enforceable by the parties and their respective
administrators, executors, legal representatives, heirs, successors and assignees. 
 11.8 Preparation of Agreement. This Agreement shall not
be construed more strongly against any party regardless of who is responsible for its preparation. The parties acknowledge each contributed and is equally responsible for its preparation. 
 11.9 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to
applicable principles of conflicts of law. 
 11.10 Jurisdiction. Any dispute, controversy or claim arising out of or relating to this
Agreement, or the interpretation, breach, termination or validity hereof, shall first be resolved through friendly consultation, if possible. Such consultation shall begin immediately after one party has delivered to the other party a written
request for such consultation (the “Consultation Date”). If the dispute cannot be resolved within 30 days following the Consultation Date, the dispute shall be submitted to arbitration upon the request of either party, with written notice
to the other party. The arbitration shall be conducted by a tribunal (the “Tribunal”) in New York, New York under the auspices of the American Arbitration Association (“AAA”) in accordance with the commercial arbitration rules
and supplementary procedures for international commercial arbitration of the AAA. All arbitration proceedings shall be conducted in English. Each party shall cooperate with the other in making full disclosure of and providing complete access to all
information and documents requested by the other party in connection with the arbitration proceedings. Arbitration shall be the sole, binding, exclusive and final remedy for resolving any dispute between the parties; either party may apply to any
court of competent jurisdiction in relevant jurisdictions for enforcement of any award granted by the Tribunal. During the period when a dispute is being resolved, except for the matter being disputed, the parties shall in all other respects
continue to abide by the terms of this Agreement. It is agreed that the prevailing party shall be entitled to reasonable attorney’s fees to be fixed by the arbitrator. 
  
  
 STOCK
PURCHASE AGREEMENT BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 PAGE 19 OF 22 

 11.11 Further Assurances, Cooperation. Each party shall, upon reasonable request by the other party,
execute and deliver any additional documents necessary or desirable to complete the transactions herein pursuant to and in the manner contemplated by this Agreement. The parties hereto agree to cooperate and use their respective best efforts to
consummate the transactions contemplated by this Agreement. 
 11.12 Survival. The representations, warranties, covenants and agreements made
herein shall survive the Closing of the transaction contemplated hereby. 
 11.13 Third Parties. Except as disclosed in this Agreement, nothing
in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the parties hereto and their respective administrators, executors, legal representatives,
heirs, successors and assignees. Nothing in this Agreement is intended to relieve or discharge the obligation or liability of any third persons to any party to this Agreement, nor shall any provision give any third persons any right of subrogation
or action over or against any party to this Agreement. 
 11.14 Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on
the part of any party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant or agreement herein, nor shall any single or
partial exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 11.15 Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate
counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. A facsimile transmission of this signed Agreement shall be legal and binding on all parties
hereto. 
 [SIGNATURES ON FOLLOWING PAGE] 
  
 STOCK PURCHASE AGREEMENT BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 PAGE 20 OF 22 
  

 IN WITNESS WHEREOF, the Investors and the Company have as of the date first written above executed
this Agreement. 
  
 THE COMPANY 
 Process Equipment, Inc. 
 By: ___________________ 
 Title:__________________ 
 INVESTORS 
  

			
	 ___________________________________________
	  	____________________________________________
	 Print Name:
	  	Print Name:
		
	 Entity (if appropriate): _________________________
	  	Entity (if appropriate): __________________________
		
	 ___________________________________________
	  	____________________________________________
		
	 Title: (if appropriate):__________________________
	  	Title: (if appropriate):___________________________
		
	 ___________________________________________
	  	____________________________________________
	 Print Name:
	  	Print Name:
		
	 Entity (if appropriate): _________________________
	  	Entity (if appropriate):___________________________
		
	 ___________________________________________
	  	_____________________________________________
		
	 Title: (if appropriate):__________________________
	  	Title: (if appropriate): ___________________________
		
	 ___________________________________________
	  	_____________________________________________
	 Print Name:
	  	Print Name:
		
	 Entity (if appropriate):_________________________
	  	Entity (if appropriate):___________________________
		
	 ___________________________________________
	  	____________________________________________
		
	 Title: (if appropriate):__________________________
	  	Title: (if appropriate):___________________________

  
 STOCK PURCHASE AGREEMENT
BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 PAGE 21 OF 22 

 Schedule A 
  

									
	 NAME AND ADDRESS
	  	AMOUNT OF
INVESTMENT	    	NUMBER OF
UNITS	    	NUMBER OF
SHARES OF
COMMON
STOCK	    	NUMBER OF
WARRANTS
(CLASS C & D
EACH)

  
  
  
  
 STOCK
PURCHASE AGREEMENT BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 PAGE 22 OF 22 

 Exhibit A 
 Form of Warrant 
  
  
  
  
 STOCK
PURCHASE AGREEMENT BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 EXHIBIT PAGE 

 Exhibit B 
 Registration Rights Agreement 
  
  
  
  
  
  
  
 STOCK
PURCHASE AGREEMENT BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 EXHIBIT PAGE 

 Exhibit C 
 Voting Agreement 
 April     , 2004 
  

	Re:	Voting of shares of Process Equipment, Inc. pursuant to that certain Stock Purchase Agreement (the “Agreement”), made and entered into as of the April
    , 2004, by and among Process Equipment, Inc. (the “Company”) and those certain investors (collectively, the “Investors”) listed on Schedule A of the Agreement. 

 Dear Investors: 
 This letter is to confirm that Red Coral Limited currently
owns a majority of the voting common stock of the Company and hereby agrees, pursuant to the Agreement, to vote such common stock in favor of an increase of the share capital of the Company for purposes of enabling the Company to issue the Shares.
Terms used herein but not defined shall have the meanings set forth in the Agreement. 
 Sincerely, 
 _________________________________ 
  
 By:______________________________ 
 Name: 
 Title: 
  
 STOCK PURCHASE AGREEMENT
BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 EXHIBIT PAGE 
  

 Exhibit D 
 Escrow Agreement 
  
  
  
  
  
  
 STOCK PURCHASE AGREEMENT BETWEEN 
 ___________________ AND CERTAIN INVESTORS 
 EXHIBIT PAGE

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