Document:

EX-10.4

 Exhibit 10.4 

EXECUTION VERSION 

INVENTORY FIRST LIEN SECURITY AGREEMENT 

DATED AS OF SEPTEMBER 25, 2013 

Between 
 TESORO HAWAII,
LLC, 
 as Grantor, 

and 
 WELLS FARGO BANK,
NATIONAL ASSOCIATION 
 as Inventory Collateral Agent 

 
 Allen & Overy LLP 

 Table of Contents 
  

							
	SECTION 1.	    	INTERPRETATION	  	 	1	  
			
	 1.1
	    	 Definitions
	  	 	1	  
	 1.2
	    	 Construction
	  	 	8	  
	 1.3
	    	 Recitals
	  	 	9	  
			
	SECTION 2.	    	 CREATION OF SECURITY
	  	 	9	  
			
	 2.1
	    	 Security Interest
	  	 	9	  
	 2.2
	    	 Permitted Security
	  	 	10	  
	 2.3
	    	 General
	  	 	10	  
	 2.4
	    	 Consideration and enforceability
	  	 	10	  
			
	SECTION 3.	    	 PERFECTION AND FURTHER ASSURANCES
	  	 	10	  
			
	 3.1
	    	 General Perfection
	  	 	10	  
	 3.2
	    	 Filing of Financing Statements
	  	 	11	  
	 3.3
	    	 Filing of Patents, Trademarks and Copyrights
	  	 	11	  
	 3.4
	    	 Control
	  	 	12	  
	 3.5
	    	 Delivery of Possessory Collateral
	  	 	12	  
	 3.6
	    	 Perfection - Special Steps for Tangible Chattel Paper
	  	 	13	  
	 3.7
	    	 Bailee Letters
	  	 	13	  
	 3.8
	    	 Further Assurances
	  	 	14	  
			
	SECTION 4.	    	 SURETYSHIP PROVISIONS
	  	 	16	  
			
	 4.1
	    	 Nature of Grantor’s Obligations
	  	 	16	  
	 4.2
	    	 Waiver of Defenses
	  	 	16	  
	 4.3
	    	 Immediate Recourse
	  	 	17	  
	 4.4
	    	 Appropriations
	  	 	17	  
	 4.5
	    	 Non-competition
	  	 	18	  
	 4.6
	    	 Waiver of Subrogation
	  	 	18	  
	 4.7
	    	 Additional Security
	  	 	19	  
	 4.8
	    	 Election of Remedies
	  	 	19	  
	 4.9
	    	 Information Concerning the Grantors
	  	 	19	  
			
	SECTION 5.	    	 REPRESENTATIONS AND WARRANTIES
	  	 	19	  
			
	 5.1
	    	 Representations and Warranties
	  	 	19	  
	 5.2
	    	 No Liability
	  	 	22	  
	 5.3
	    	 Necessary Filings
	  	 	22	  
			
	SECTION 6.	    	 UNDERTAKINGS
	  	 	22	  
			
	 6.1
	    	 Undertakings
	  	 	22	  
	 6.2
	    	 Certification of Limited Liability Company and Limited Partnership Interests
	  	 	25	  
	 6.3
	    	 Indemnity
	  	 	25	  
	 6.4
	    	 Indemnity Obligations Secured by Collateral; Survival
	  	 	26	  
			
	SECTION 7.	    	 WHEN SECURITY MAY BE ENFORCED
	  	 	26	  
			
	SECTION 8.	    	 ENFORCEMENT OF SECURITY
	  	 	26	  
			
	 8.1
	    	 General
	  	 	26	  

  
 i 

							
	 8.2
	    	 Distributions and Voting Rights
	  	 	28	  
	 8.3
	    	 Collections after a Trigger Event
	  	 	28	  
	 8.4
	    	 Inventory Collateral Agent’s Rights upon Trigger Event
	  	 	28	  
	 8.5
	    	 No Marshaling
	  	 	31	  
	 8.6
	    	 Grant of License to Use Intellectual Property
	  	 	31	  
	 8.7
	    	 Securities Act
	  	 	31	  
	 8.8
	    	 Registration
	  	 	32	  
	 8.9
	    	 [Reserved
	  	 	32	  
	 8.10
	    	 Waiver of Claims
	  	 	32	  
			
	SECTION 9.	    	 APPLICATION OF PROCEEDS
	  	 	33	  
			
	SECTION 10.	    	 MISCELLANEOUS
	  	 	33	  
			
	 10.1
	    	 Amendments
	  	 	33	  
	 10.2
	    	 No Waiver; Remedies Cumulative
	  	 	33	  
	 10.3
	    	 No Third Party Beneficiaries
	  	 	33	  
	 10.4
	    	 Successors and Assigns; Benefit of Agreement
	  	 	34	  
	 10.5
	    	 Additional Grantor
	  	 	34	  
	 10.6
	    	 Counterparts
	  	 	34	  
	 10.7
	    	 Severability
	  	 	34	  
	 10.8
	    	 Notices
	  	 	35	  
	 10.9
	    	 Choice of Law
	  	 	35	  
	 10.10
	    	 Jurisdiction
	  	 	35	  
	 10.11
	    	 Waiver of Immunity
	  	 	35	  
	 10.12
	    	 WAIVER OF TRIAL BY JURY
	  	 	35	  
	 10.13
	    	 Survival
	  	 	35	  
	 10.14
	    	 Complete Agreement
	  	 	35	  
			
	Schedules	    		  			
			
	Schedule 1:	    	Grantors	  			
	Schedule 2:	    	Commercial Tort Claims	  			
	Schedule 3:	    	Intellectual Property Rights	  			
	Schedule 4:	    	Pledged Capital Stock	  			
	Schedule 5:	    	Executive Offices; Collateral Locations	  			
	Schedule 6:	    	States in which Collateral Consisting of Goods is Located	  			
	Schedule 7:	    	Chattel Paper	  			
	Schedule 8:	    	Letter of Credit Rights Constituting Collateral	  			
	Schedule 9:	    	Negotiable Instruments	  			
	Schedule 10:	    	Form of Security Supplement	  			
	Schedule 11:	    	Form of Trademark Security Agreement	  			
	Schedule 12:	    	Form of Patent Security Agreement	  			
	Schedule 13:	    	Form of Copyright Security Agreement	  			
	Schedule 14:	    	Form of Joinder Agreement	  			

  
 ii 

 THIS INVENTORY FIRST LIEN SECURITY AGREEMENT (this Agreement) is dated as of
September 25, 2013, between Persons identified in Schedule 1 (Grantors) (such Persons together with any additional Persons who join this Agreement pursuant to Section 10.5 (Additional Grantor), (the Grantors and each a
Grantor) and Wells Fargo Bank, National Association (the Inventory Collateral Agent) as Inventory Collateral Agent for and on behalf of the First Lien Secured Parties. 

Recitals: 
 WHEREAS, the
Lenders (as defined in the ABL Loan Credit Agreement), the Administrative Agent, the ABL Loan Collateral Agent and the Borrowers are parties to the ABL Loan Credit Agreement, pursuant to which the Lenders have agreed to extend a credit amount to the
Borrowers of $125,000,000 or such larger amount as mutually agreed between the Lenders and the Borrowers and is otherwise permitted under the Basic Documents; 

WHEREAS, the Inventory Facility Counterparty, the Inventory Collateral Agent and the Inventory Party are entering into the Inventory
Documents, pursuant to which they will enter into Inventory transactions and transactions related to the Inventory and the Inventory Documents; 

WHEREAS, the Grantors, the First Lien Secured Parties and the Inventory Collateral Agent, among others, have entered into the Intercreditor
Agreement to, among other things, define the rights, duties, authority and responsibilities of the Inventory Collateral Agent and the priority of payments and security between the Loan Parties and the Inventory Party; 

WHEREAS, the Grantors are entering into this Agreement for purposes of establishing a first-priority Lien (subject to Permitted Security) over
the collateral described herein in favor of the Inventory Collateral Agent for and on behalf of the First Lien Secured Parties to secure the First Lien Obligations; 

WHEREAS, it is a condition precedent to (a) the Inventory Party performing its obligations under the Inventory Documents and (b) the
Loan Parties performing their respective obligations under the Credit Agreement that the Grantors enter into this Agreement. 
 NOW,
THEREFORE, for and in consideration of the premises and the mutual covenants herein contained, the Parties hereto covenant and agree as follows: 
  

	 	SECTION 1.	Interpretation. 

 1.1 Definitions. Except as otherwise expressly provided
herein, each capitalized term used herein and not otherwise defined will have the meaning assigned to such term in Section 1.1 (Definitions) of the Intercreditor Agreement. In this Agreement and its Schedules the following terms will
have the following meanings: 
 ABL Loan Collateral means “Collateral” under the ABL Loan First Lien Security Agreement and
under the ABL Loan Second Lien Security Agreement. 
 Accounts has the meaning given to such term in the ABL Loan First Lien Security
Agreement and the ABL Loan Second Lien Security Agreement. 

  
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 Authorized Officer means (a) with respect to any Person that is a corporation or a
limited liability company, the chairman, president, the chief executive officer, the chief operating officer, the treasurer, the chief financial officer, any vice president or the secretary (or assistant secretary) of such Person and (b) with
respect to any Person that is a partnership, the president, any vice president or the secretary (or assistant secretary) of a general partner or managing partner of such Person, in each case, who has authority to act for or bind such Person under
such Person’s charter documents and applicable law. 
 Collateral means all personal property, wherever located, in which any
Grantor now has or later acquires any right, title or interest, including all: 
 (a) Inventory and all other hydrocarbons; 

(b) Intellectual Property; 
 (c)
intangible assets and proceeds thereof (but excluding payment intangibles); 
 (d) Inventory Insurance Collateral; 

(e) Takings Proceeds; 
 (f)
Pledged Capital Stock (other than of any Retail Business Subsidiary); 
 (g) chattel paper (including tangible chattel paper and electronic
chattel paper); 
 (h) goods (including equipment, inventory and fixtures), which, for the avoidance of doubt, includes the catalyst,
supplies, spare parts, and any other goods relating to, comprising part of or used in the System; 
 (i) instruments (including promissory
notes) other than instruments received in satisfaction of, or in lieu of payment for, or otherwise received in respect of or constituting proceeds of, any Account; 

(j) documents; 
 (k) all rights
and claims of any Grantor, now or hereafter existing, under any indemnity, warranty, letter of credit, performance bond, credit support or guaranty including those provided for or arising out of or in connection with the Refinery, the Storage
Facilities or the Collateral or any transaction contemplated in any Inventory Document; 
 (l) accounts arising under or in relation to any
Inventory Document; 
 (m) general intangibles (including payment intangibles, licenses, concession rights and software); 

(n) the commercial tort claims described in Schedule 2 (Commercial Tort Claims); 

(o) supporting obligations other than supporting obligations arising in respect of or in connection with any Accounts; 

  
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 (p) records other than records used or useful in connection with the accounting for, or the
collection of, the Accounts; 
 (q) all policies of insurance, including those relating to the Inventory Collateral, the ABL Loan
Collateral, the Refinery and/or the Storage Facilities (including those required by Section 7.7 (Insurance) of the Framework Agreement); 

(r) all Permits now or hereafter held in the name, or for the benefit, or inuring to the benefit, of any Grantor; 

(s) other assets (including the Inventory Collateral Holding Account, inventions, discoveries, trade secrets, and all associated goodwill)
(other than the ABL Loan Collateral); and 
 (t) to the extent not listed above as original Collateral, proceeds and products of, and
accessions to, each of the above assets. 
 The term Collateral excludes (i) any property, right or interest in which a security
interest may not be granted under applicable law; and (ii) any Excluded Collateral. 
 Control Agreement means (x) before
the Discharge of Second Lien Obligations, an agreement, in form and substance satisfactory to the Inventory Collateral Agent and the Second Lien Agent, between the Inventory Collateral Agent, the Second Lien Agent, the applicable Grantor(s) and any
other Person who is necessary or whom the Inventory Collateral Agent may reasonably require, with the provisions necessary to establish the Inventory Collateral Agent’s control and (y) thereafter, an agreement, in form and substance
satisfactory to the Inventory Collateral Agent, between the Inventory Collateral Agent, the applicable Grantor(s) and any other Person who is necessary or whom the Inventory Collateral Agent may reasonably require, with the provisions necessary to
establish the Inventory Collateral Agent’s control of the Insurance Proceeds Account and the Inventory Insurance Collateral and any other Collateral consisting of: 

(a) deposit account; 
 (b)
investment property; 
 (c) letter of credit rights; or 

(d) electronic chattel paper. 

Copyright License means any written agreement, now or hereafter in effect, granting to any Person any right under any Copyright owned
by any Grantor or that such Grantor otherwise has the right to license, or granting any right to any Grantor under any Copyright owned by any other Person, or that any other Person now or hereafter otherwise has the right to license and all rights
of such Grantor under any such agreement. 
 Copyrights means, with respect to any Person, all of the following now owned or
hereafter acquired by such Person: (a) all copyright rights in any work subject to the copyright laws of the United States of America or any other country, whether as author, assignee, transferee or otherwise, and (b) all registrations and
applications for registration of any such copyright in the United States of America or any other country, including registrations, recordings, supplemental registrations and pending applications for registration in the United States Copyright Office
(or any similar office in any other country), including any of the foregoing listed on Schedule 3 (Intellectual Property Rights). 

  
 3 

 Discharge of First Lien Obligations means: 

(a) payment in full in cash of the principal of and interest (including interest accruing on or after the commencement of an Insolvency
Proceeding, whether or not such interest would be allowed in the proceeding) on all outstanding Indebtedness included in the First Lien Obligations; 

(b) payment in full of other amounts (including termination and closing out payments) included in the First Lien Obligations; 

(c) payment in full in cash of all other First Lien Obligations that are due and payable or otherwise accrued and owing at or before the time
such principal and interest and other amounts are paid (other than (i) contingent indemnification First Lien Obligations that expressly survive such payment for which no claim or demand for payment, whether oral or written, has been made at
such time, and (ii) First Lien Obligations in respect of Derivative Transactions (as defined in the Framework Agreement) as to which alternative security arrangements satisfactory to the applicable First Lien Party have been agreed in writing
and are in effect); and 
 (d) termination or expiration of any commitments to extend credit or transactions under Basic Documents
constituting First Lien Documents that would be First Lien Obligations. 
 Discharge of Second Lien Obligations means: 

(a) payment in full in cash of the principal of and interest (including interest accruing on or after the commencement of an Insolvency
Proceeding, whether or not such interest would be allowed in the proceeding) on all outstanding Indebtedness included in the Second Lien Obligations; 

(b) payment in full of other amounts (including termination and closing out payments) included in the Second Lien Obligations; 

(c) payment in full in cash of all other Second Lien Obligations that are due and payable or otherwise accrued and owing at or before the time
such principal and interest and other amounts are paid (other than (i) contingent indemnification Second Lien Obligations that expressly survive such payment and for which no claim or demand for payment, whether oral or written, has been made
at such time, and (ii) Secured Cash Management Obligations, Secured Hedging Obligations, and obligations in respect of Letters of Credit (in each case, as defined in the Credit Agreement) as to which arrangements satisfactory to the applicable
Second Lien Secured Parties have been made); and 
 (d) termination or expiration of any commitments to extend credit or transactions under
Basic Documents constituting Second Lien Document that would be Second Lien Obligations. 
 Equity Interest has the meaning given to
such term in paragraph (a) of the definition of Pledged Capital Stock. 
 First Lien Documents means the Inventory Documents and
the Intercreditor Agreement. 
 First Lien Obligations means the Inventory Obligations. 

  
 4 

 First Lien Secured Parties means the Inventory Collateral Agent and the Inventory Party.

 Governmental Authority means any federal, regional, provincial, state, local or municipal government, governmental body, agency,
instrumentality, authority or other entity established or controlled by any of the foregoing or subdivision thereof, including any legislative, administrative, regulatory or judicial body. 

Insurance Proceeds means all amounts paid or payable to any Grantor or the relevant Collateral Agent in respect of (a) any
(i) casualty insurance required to be maintained (or caused to be maintained) or otherwise maintained pursuant to Section 7.7 (Insurance) of the Framework Agreement or Section 9.03 of the ABL Loan Credit Agreement,
(ii) delay in start-up insurance or (iii) business interruption insurance or (b) any other compensation, awards damages or other payments related to an Event of Loss, but excluding in all cases proceeds from third-party liability,
employer’s liability and automobile liability insurance to the extent that such amounts are or are to be paid to the person who incurred the liability or to any person who has previously discharged such liability. 

Insurance Proceeds Account means a special, segregated U.S. dollar account of Tesoro Hawaii, LLC entitled “Insurance Proceeds
Account” (or such other name approved by the Inventory Party) to be maintained with a bank approved by the Inventory Party and having the account number set forth in the Inventory Account Control Agreement. 

Intellectual Property means all intellectual and similar property of every kind and nature, including inventions, designs, Patents,
Copyrights, Licenses, Trademarks, trade secrets, domain names, confidential or proprietary technical and business information, know-how, show-how or other data or information, software and databases and all embodiments or fixations thereof and
related documentation, registrations and franchises, and all additions, improvements and accessions to, and books and records describing or used in connection with, any of the foregoing. 

Intercreditor Agreement means the Intercreditor Agreement dated as of September 25, 2013 by and among, among others, Barclays Bank
PLC, Deutsche Bank AG New York Branch, the ABL Loan Collateral Agent, the Inventory Collateral Agent and the Grantors. 
 Inventory
means Crude Oil and Products. 
 Inventory Collateral Agent has the meaning given to it in the introductory paragraph hereof. 

Inventory Insurance Collateral means (a) Insurance Proceeds and (b) the Insurance Proceeds Account and (c) all cash,
instruments, investment property and other financial assets at any time on deposit in or credited to the Insurance Proceeds Account, including all income, earnings, dividends, interest, gain, profit and distributions thereon and all proceeds,
products and accessions of and to any and all of the foregoing, including whatever is received or receivable upon any collection, exchange, sale or other disposition of any of the foregoing and any property or assets into which any of the foregoing
is converted, whether cash or non-cash proceeds, and any and all other amounts paid or payable under or in connection with any of the foregoing and all security entitlements in connection therewith. 

Inventory Party means Barclays Bank PLC. 

  
 5 

 Issuer has the meaning given to such term in paragraph (a) of the definition of
Pledged Capital Stock. 
 Joinder Agreement has the meaning given to it in Section 10.5 (Additional Grantor). 

License means any Patent License, Trademark License, Copyright License or other license or sublicense agreement to which any Grantor is
a party, including those listed on Schedule 3 (Intellectual Property Rights). 
 Lien means any mortgage, pledge, security
interest, encumbrance, lien or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof). 

Party means a party to this Agreement. 

Patent License means any written agreement, now or hereafter in effect, granting to any Person any right to make, use or sell any
invention on which a Patent, owned by any Grantor or that any Grantor otherwise has the right to license, is in existence, or granting to any Grantor any right to make, use or sell any invention on which a Patent owned by any other Person, or that
any other Person otherwise has the right to license, is in existence, and all rights of any Grantor under any such agreement. 

Patents means with respect to any Person all of the following now owned or hereafter acquired by such Person: (a) all letters
patent of the United States of America or the equivalent thereof in any other country, all registrations and recordings thereof, and all applications for letters patent of the United States of America or the equivalent thereof in any other country,
including registrations, recordings and pending applications in the United States Patent and Trademark Office or any similar offices in any other country, including those listed on Schedule 3 (Intellectual Property Rights), and (b) all
reissues, continuations, divisions, continuations-in-part, renewals or extensions thereof, and the inventions disclosed or claimed therein, including the right to make, use and/or sell the inventions disclosed or claimed therein. 

Permits means any authorization, consent, approval, clearance, approval, license, ruling, permit, certification, exemption, filing,
claim, order, judgment, decree, publication, notice, declaration of or with, or registration by or with, any Governmental Authority. 

Permitted Security means “Permitted Security” under and as defined in the Framework Agreement. 

Pledged Capital Stock means any and all of the following: 

(a) the shares, interests, rights to purchase, warrants, options, participations or other equivalents of each Grantor’s interests in
(however designated) equity of a Person (each, an Issuer), including any preferred stock and partnership or limited liability company interests but excluding any debt securities convertible into such equity (collectively, the Equity
Interests and each an Equity Interest), as set out in Schedule 4 (Pledged Capital Stock); 
 (b) all additional Equity
Interests in which a Grantor at any time has or obtains any interest; and 

  
 6 

 (c) all dividends, interest, revenues, income, distributions and proceeds of any kind, whether
cash, instruments, securities or other property, received by or distributed to the Grantor in respect of, or in exchange for the items listed in clause (a) of this definition or any other Pledged Capital Stock. 

Possessory Collateral means all Collateral consisting of: 

(a) certificated securities; 

(b) instruments, other than instruments received by any Grantor in the ordinary course of business and with an aggregate face amount not
exceeding one million U.S. dollars ($1,000,000.00); 
 (c) tangible chattel paper, other than tangible chattel paper that has been legended
in compliance with Section 3.6 (Perfection - Special Steps for Tangible Chattel Paper); and 
 (d) negotiable documents, other
than negotiable documents received by any Grantor in the ordinary course of business and relating to underlying goods with an aggregate face value not exceeding one million U.S. dollars ($1,000,000.00). 

Relevant States means each of: 

(a) the state of a Grantor’s incorporation or organization; and 

(b) any state in which Collateral consisting of goods is located. 

Second Lien Agent means the ABL Loan Collateral Agent acting on behalf of itself and the Loan Parties under the Inventory Second Lien
Security Agreement. 
 Second Lien Documents means the ABL Loan Documents and the Intercreditor Agreement. 

Second Lien Obligations means the ABL Loan Obligations. 

Second Lien Secured Parties means the ABL Loan Collateral Agent and the Loan Parties. 

Security means any Lien created by this Agreement. 

Security Supplement means any supplement to this Agreement in substantially the form of Schedule 10 (Form of Security
Supplement), executed by an Authorized Officer of a Grantor. 
 Taking means any circumstance or event, or series of circumstances or
events, in consequence of which the Collateral or any part thereof is condemned, nationalized, seized, taken, compulsorily acquired or otherwise expropriated by any Governmental Authority under power of eminent domain or otherwise. 

Takings Proceeds means, with respect to a Taking, any compensation, award, damages or other payment or relief with respect to such
Taking 

  
 7 

 Trademark License means any written agreement, now or hereafter in effect, granting to any
Person any right to use any Trademark owned by any Grantor or that any Grantor otherwise has the right to license, or granting to any Grantor any right to use any Trademark owned by any other Person or that any other Person otherwise has the right
to license, and all rights of any Grantor under any such agreement. 
 Trademarks means, with respect to any Person, all of
the following now owned or hereafter acquired by such Person: (a) all trademarks, service marks, trade names, corporate names, company names, business names, fictitious business names, trade styles, trade dress, logos, other source or business
identifiers, designs and general intangibles of like nature, all registrations and recordings thereof, and all registration and recording applications filed in connection therewith, including registrations and registration applications in the United
States Patent and Trademark Office or any similar offices in any State of the United States of America or any other country or any political subdivision thereof, and all extensions or renewals thereof, including those listed on Schedule 3
(Intellectual Property Rights), (b) all goodwill associated therewith or symbolized thereby and (c) all other assets, rights and interests that uniquely reflect or embody such goodwill. 

UCC means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that, if by reason of
mandatory provisions of applicable law, the perfection or priority of the security interest granted hereunder in any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of New York, the term
UCC will mean the Uniform Commercial Code as in effect in such other jurisdiction solely for the purposes of the provisions hereof relating to such perfection or priority. 

1.2 Construction. 
 (a)
Any term defined in the UCC and not defined in this Agreement has the meaning given to that term in the UCC. 
 (b) Any term defined in the
Intercreditor Agreement and not defined in this Agreement or the UCC has the meaning given to that term in the Intercreditor Agreement. 

(c) In addition, in this Agreement, unless the contrary intention appears, a reference to: 

(i) an amendment includes a supplement, novation, extension (whether of maturity or otherwise), restatement or
re-enactment or replacement (however fundamental and whether or not more onerous) and amended will be construed accordingly; 

(ii) assets includes present and future properties, revenues and rights of every description; 

(iii) unless the contrary intention appears, a reference to fraudulent transfer law means any applicable bankruptcy law
or state fraudulent transfer or conveyance statute, and the related case law; 
 (iv) the terms include,
includes and including are deemed to be followed by the phrase “without limitation”; 

  
 8 

 (v) indebtedness includes any obligation (whether incurred as principal or
as surety and whether present or future, actual or contingent) for the payment or repayment of money; 
 (vi) control
means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person, whether through the ability to exercise voting power, by contract or otherwise; 

(vii) the term law includes any applicable law, statute, regulation, regulatory requirement, rule, ordinance, ruling,
decision, treaty, directive, order, guideline, policy, writ, judgment, injunction or request (whether or not having the force of law but, if not having the force of law, being of a type with which any person to which it applies is accustomed to
comply) of any court or other governmental, inter-governmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organization, officer or official, fiscal or monetary authority, or other ministry or
public entity (and their interpretation, administration and application), whether or not having the force of law; 
 (viii) a
provision of law is a reference to that provision as extended, applied, amended or re-enacted and includes any successor law; 

(ix) a Trigger Event being outstanding or continuing means that it has not been remedied or waived; 

(x) a Section or an Annex is a reference to a section of, or an annex to, this Agreement; 

(xi) a Party or any other Person includes its successors in title, permitted assigns and permitted transferees, and a
reference to a Party will not include that Party if it has ceased to be a Party under this Agreement; 
 (xii) no reference
to proceeds in this Agreement authorized any sale, transfer or other disposition of Collateral by any Grantor; 

(xiii) a reference to a document or security includes (without prejudice to any prohibition on amendments) any amendment or
supplement to or renewal or restatement thereof; 
 (xiv) the singular includes the plural and vice versa and each gender
includes the other gender; 
 (xv) a time of day is a reference to New York City time; and 

(xvi) The headings in this Agreement do not affect its interpretation. 

1.3 Recitals. The whereas clauses contained in the “Recitals” section (as detailed on page 1 of this Agreement) are hereby
incorporated into this Agreement in full. 
  

	 	SECTION 2.	Creation of Security. 

 2.1 Security Interest. As security for the prompt
and complete payment and performance of the First Lien Obligations in full when due (whether due because of stated maturity, 

  
 9 

 
termination, settlement, acceleration, mandatory prepayment, or otherwise) and to induce the First Lien Secured Parties to enter into the First Lien Documents, each Grantor hereby assigns by way
of security to the Inventory Collateral Agent for the benefit of the First Lien Secured Parties, and hereby grants to the Inventory Collateral Agent for the benefit of the First Lien Secured Parties a continuing first-priority (subject to Permitted
Security) security interest in the Collateral. 
 2.2 Permitted Security. For the avoidance of doubt, nothing in this Section 2
(Creation of Security) will prevent the Grantors from permitting to subsist or granting any other Permitted Security. 
 2.3
General. All the Security created under this Agreement: 
 (a) is continuing security for the irrevocable and indefeasible payment in
full of the ultimate balance of the First Lien Obligations, regardless of any intermediate payment or discharge in whole or in part; 
 (b)
is in addition to, and not in any way prejudiced by, any other security now or subsequently held by any First Lien Secured Party. 
 (c)
This Agreement will remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of
any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of any Grantor’s assets, and will continue to be effective or be reinstated, as the case may be, if at any time payment and performance of
the obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the obligations, whether as a “voidable preference,” “fraudulent
conveyance,” or otherwise, all as though such payment or performance had not been made. To the extent that any First Lien Secured Party receives any payment by or on behalf of any Grantor, which payment or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to any other Grantor or to its estate, trustee, receiver, custodian or any other Person under any Bankruptcy Law or otherwise, then to the extent of the
amount so required to be repaid, the obligation or part thereof which has been paid, reduced or satisfied by the amount so repaid will be reinstated by the amount so repaid and will be included within the obligations as of the date such initial
payment, reduction or satisfaction occurred. 
 2.4 Consideration and enforceability. (a) Each Grantor acknowledges and agrees
that each of the First Lien Secured Parties has acted in good faith in connection with this Agreement and the transactions contemplated by the Basic Documents. 

(b) This Agreement is enforceable against each Grantor to the maximum extent permitted by the fraudulent transfer laws. 

 

	 	SECTION 3.	Perfection and Further Assurances. 

 3.1 General Perfection. 

(a) Each Grantor must take, at its own expense, promptly, and in any event within any applicable time limit whatever action is necessary or
reasonably requested by the Inventory Collateral Agent or any other First Lien Secured Party to ensure that this Security is as of the date hereof, and will continue to be until the Discharge of First Lien Obligations, a validly created, attached,
enforceable and 

  
 10 

 
perfected first-priority (subject to Permitted Security) continuing security interest in the Collateral in favor of the First Lien Secured Parties, in all relevant jurisdictions, securing payment
and performance of the First Lien Obligations and in each case, to protect this Security, to enable the Inventory Collateral Agent to exercise and enforce its rights, powers and remedies under this Agreement with respect to any of the Collateral and
to facilitate the assignment or transfer of any rights and/or obligations of the Inventory Collateral Agent or the applicable First Lien Secured Parties under this Agreement. The Grantors will pay, jointly and severally any applicable filing fees,
recordation taxes and related expenses relating to the Collateral. 
 (b) Without limiting the generality of the foregoing, this includes
the giving of any notice, order or direction, the making of any filing or registration, the passing of any resolution and the execution and delivery of any documents or agreements which are necessary or the Inventory Collateral Agent reasonably
deems desirable and the taking of any of the actions described in the following provisions of this Section 3 (Perfection and Further Assurances). 

3.2 Filing of Financing Statements. 

(a) Each Grantor authorizes the Inventory Collateral Agent to prepare and file, at the Grantor’s expense, jointly and severally, and
without the signature of such Grantor: 
 (i) financing statements describing the Collateral; 

(ii) continuation statements; and 

(iii) any amendment in respect of those statements. 

(b) Each Grantor expressly authorizes the Inventory Collateral Agent, if it so elects, to file financing statements with the collateral
description “all assets of the Grantor”, “all personal property of the Grantor” or other words to that effect. 
 (c)
Promptly after filing a financing statement, the Grantors must provide the Inventory Collateral Agent with a search report, from a reputable search company reasonably satisfactory to the Inventory Collateral Agent, of the UCC records of the
Secretary of State (or other relevant government office) of each Relevant State indicating that the Inventory Collateral Agent’s security interest is before all other security interests or other interests reflected in the report. 

3.3 Filing of Patents, Trademarks and Copyrights. 

(a) Each Grantor will deliver to the Inventory Collateral Agent for the benefit of the First Lien Secured Parties a Trademark Security
Agreement in the form of Schedule 11 (Form of Trademark Security Agreement), a Patent Security Agreement in the form of Schedule 12 (Form of Patent Security Agreement) and a Copyright Security Agreement in the form of Schedule 13
(Form of Copyright Security Agreement), in each case containing a description of the Collateral consisting of United States Patents and Patent Licenses, United States registered Trademarks and Trademark Licenses (and Trademarks for which
United States registration applications are pending) and United States registered Copyrights and Copyright Licenses, as applicable, and executed by each Grantor owning any such Collateral for recording with the United States Patent and Trademark
Office and the United States Copyright Office pursuant to 35 U.S.C. § 261, 15 U.S.C. § 1060 or 17 U.S.C. § 205 and the regulations thereunder, as applicable, to protect the validity of and to establish a legal, valid
and perfected security interest in favor of the Inventory Collateral Agent 

  
 11 

 
(for the benefit of the Secured Parties) in respect of all Collateral consisting of Patents, Trademarks, Copyrights and Licenses, if applicable, in which a security interest may be perfected by
filing, recording or registration with the United States Patent and Trademark Office or the United States Copyright Office, and represents and warrants no further or subsequent filing, refiling, recording, rerecording, registration or reregistration
is necessary (other than such actions as are necessary to perfect the security interest with respect to any Collateral consisting of Patents, Trademarks, Copyrights and Licenses (or registration or application for registration thereof), if
applicable, acquired or developed after the date hereof); provided, however, that the foregoing requirements will not apply to any License that can be purchased and readily replaced in the ordinary course of business by the general
public. 
 (b) Each Grantor expressly authorizes the Inventory Collateral Agent to prepare and file, at the Grantor’s expense, with the
United States Patent and Trademark Office or United States Copyright Office (or any successor office or any similar office in any other country) any documents as may be necessary or advisable for the purpose of perfecting, confirming, continuing,
enforcing or protecting the security interest granted by each Grantor in its Intellectual Property, without the signature of any Grantor and naming any Grantor or Grantors as debtors and the Inventory Collateral Agent as secured party. 

3.4 Control. 
 (a) The
applicable Grantor and each other necessary party have entered into (or in the case of the Insurance Proceeds Account and the other Inventory Insurance Collateral will enter into in accordance with the Framework Agreement) an appropriate Control
Agreement and have taken all other actions necessary for such agent to have control of the Insurance Proceeds Account and the other Inventory Insurance Collateral and any other Collateral consisting of: 

(i) deposit accounts; 

(ii) investment property; 

(iii) letter of credit rights; 

(iv) electronic chattel paper; and 

(v) all monies, securities and investments deposited therein as required to be deposited in any of the foregoing 

(b) If, after the date of this Agreement, any Grantor acquires Collateral consisting of any of the Collateral listed in paragraph
(a) above, and the new Collateral is not covered by an existing Control Agreement, such Grantor must before or concurrently with acquiring such Collateral enter into a Control Agreement in respect of that new Collateral and take all other
actions necessary for the Inventory Collateral Agent to have control of the new Collateral. 
 3.5 Delivery of Possessory Collateral.

 (a) The Grantors have delivered to the Inventory Collateral Agent (or as directed by such agent) the originals of all Possessory
Collateral (including all original certificates and instruments evidencing or representing the Pledged Capital Stock) existing on the date of this Agreement. 

  
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 (b) The Grantors must deliver to the Inventory Collateral Agent (or as directed by such agent),
promptly upon and in any case within two (2) Business Days after receipt, originals of any other Possessory Collateral (including Pledged Capital Stock) arising or acquired by any Grantor after the date of this Agreement. 

(c) All Possessory Collateral delivered under this Agreement will be either: 

(i) duly endorsed and in suitable form for transfer by delivery; or 

(ii) accompanied by undated instruments of transfer endorsed in blank, and 

in form and substance satisfactory to the Inventory Collateral Agent. 

(d) Until the Discharge of First Lien Obligations, the Inventory Collateral Agent will hold (directly or through an agent) all Possessory
Collateral and related instruments of transfer delivered to it. At any time and from time to time, such agent will have the right to exchange certificates or instruments evidencing or representing Pledged Capital Stock for certificates or
instruments of smaller or larger denominations. 
 (e) Each Grantor authorizes the Inventory Collateral Agent at any time and from time to
time to communicate with any issuer of Equity Interests with regard to any matter relating to the Pledged Capital Stock. 
 (f) [Reserved.]

 3.6 Perfection - Special Steps for Tangible Chattel Paper. 

(a) Each Grantor must deliver to the Inventory Collateral Agent the originals of all tangible chattel paper which constitutes Possessory
Collateral and each such item of tangible chattel paper which constitutes Possessory Collateral must be properly marked with a legend indicating that it is the original and must be properly endorsed to the order of such agent. 

(b) Each Grantor agrees that it will not permit copies of tangible chattel paper which constitute Possessory Collateral and which are not
delivered to such agent in accordance with paragraph (a) above to be marked “original” or “chattel paper” or with words of similar import. Each Grantor further agrees that it will permit no Person other than itself to have
possession of any tangible chattel paper which constitutes Possessory Collateral. 
 (c) [Reserved.] 

3.7 Bailee Letters. 
 (a)
Each Grantor has obtained, or will obtain if required under Section 6.21 of the Framework Agreement within the timeframe required under such Section, a landlord’s agreement, mortgagee agreement or bailee letter, as applicable, from the
lessor of each leased property, mortgagee of owned property or bailee with respect to any warehouse, processor or converter facility or other location where Collateral is stored or located, which agreement or letter contains a waiver or
subordination of all Liens or claims that the landlord, mortgagee or bailee may assert against the Collateral at that location and is otherwise satisfactory in form and substance to the Inventory Collateral Agent. 

  
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 (b) After the date of this Agreement, no real property or warehouse space will be leased by any
Grantor and no inventory or other property of any Grantor will be shipped to a processor or converter or stored with a bailee under arrangements established after the date of this Agreement without the prior written consent of the Inventory
Collateral Agent or unless and until a landlord agreement or mortgagee agreement or bailee letter, as appropriate, in form and substance reasonably satisfactory to the Inventory Collateral Agent, shall first have been obtained with respect to such
location. 
 (c) Each Grantor will timely and fully pay and perform its obligations under all leases and other agreements with respect to
each leased location or public warehouse where any Collateral is or may be located. 
 3.8 Further Assurances. 

(a) Each Grantor must take, at its own expense, promptly, and in any event within any applicable time limit, whatever action the Inventory
Collateral Agent may reasonably require for: 
 (i) creating, attaching, perfecting and protecting, and maintaining the
applicable priority of, any security interest intended to be created by this Agreement; 
 (ii) facilitating the enforcement
of this Security or the exercise of any right, power or discretion exercisable by the Inventory Collateral Agent or any of its delegates or sub-delegates in respect of any Collateral; 

(iii) obtaining possession of any Possessory Collateral and control of any Collateral described in Section 3.4
(Control); and 
 (iv) facilitating the assignment or transfer of any rights and/or obligations of the Inventory
Collateral Agent or any other First Lien Secured Party under this Agreement. 
 This includes the execution and delivery of any transfer,
assignment or other agreement or document, whether to the Inventory Collateral Agent or its nominee, which is necessary or the Inventory Collateral Agent reasonably deems advisable. 

(b) With respect to Collateral consisting of Intellectual Property, each Grantor must: 

(i) refrain from doing any act or omitting to do any act (and exercise commercially reasonable efforts to prevent its licensees
from doing any act or omitting to do any act) whereby any Patent material to the conduct of the business of any Grantor or its Subsidiaries may become invalidated or dedicated to the public (except as a result of expiration of such Patent at the end
of its statutory term), and agree that it will continue to mark any products covered by any such Patent with the relevant patent number as necessary and sufficient to establish and preserve its maximum rights under applicable patent laws; 

(ii) for each Trademark material to the conduct of the business of any Grantor or its Subsidiaries: 

(A) maintain such Trademark in full force free from any valid claim of abandonment or invalidity for non-use; 

  
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 (B) maintain the quality of products and services offered under such Trademark;

 (C) if registered, display such Trademark with notice of Federal or foreign registration to the extent necessary and
sufficient to establish and preserve its maximum rights under applicable law; and 
 (D) not knowingly use or knowingly
permit the use of such Trademark in violation of any third party rights; 
 (iii) for each work covered by a Copyright
material to the conduct of the business of any Grantor or its Subsidiaries, use commercially reasonable efforts to continue to publish, reproduce, display, adopt and distribute the work with appropriate copyright notice as necessary and sufficient
to establish and preserve its maximum rights under applicable copyright laws; 
 (iv) promptly notify the Inventory
Collateral Agent if it knows that any Patent, Trademark or Copyright material to the conduct of the business of any Grantor or its Subsidiaries may become abandoned, lost or dedicated to the public, or of any materially adverse determination or
development (including the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, United States Copyright Office or any court or similar office of any country) regarding any
Grantor’s ownership of such Patent, Trademark or Copyright, its right to register the same, or its right to keep and maintain the same; 

(v) take all necessary steps that are consistent with its current practice (A) in any proceeding before the United States
Patent and Trademark Office, United States Copyright Office or any office or agency in any political subdivision of the United States of America or in any other country or any political subdivision thereof, to maintain and pursue each material
application relating to the Patents, Trademarks and/or Copyrights (and to obtain the relevant grant or registration) and (B) to maintain each issued Patent and each registration of the Trademarks and Copyrights that is material to the conduct
of any Grantor’s business, including timely filings of applications for renewal, affidavits of use, affidavits of incontestability and payment of maintenance fees, and, if consistent with good business judgment, to initiate opposition,
interference and cancelation proceedings against third parties; 
 (vi) promptly notify the Inventory Collateral Agent in the
event that it has reason to believe that any Collateral consisting of a Patent, Trademark or Copyright material to the conduct of its business has been or is about to be infringed, misappropriated or diluted by a third party and, if consistent with
good business judgment, promptly sue for infringement, misappropriation or dilution and to recover any and all damages for such infringement, misappropriation or dilution, and take such other actions as are appropriate under the circumstances to
protect such Collateral; and 
 (vii) upon the occurrence an Trigger Event that is continuing and at the request of the
Inventory Collateral Agent, use its best efforts to obtain all requisite consents or approvals by the licensor of each Copyright License, Patent License or Trademark License under which such Grantor is a licensee to effect the assignment of all such
Grantor’s right, title and interest thereunder to the Inventory Collateral Agent or its designee. 

  
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	 	SECTION 4.	Suretyship Provisions. 

 4.1 Nature of Grantor’s Obligations. 

(a) The obligations of each Grantor under this Agreement are independent of any obligation of any Grantor or any other Person. 

(b) A separate action or actions may be brought and prosecuted against a Grantor under this Agreement whether or not any action is brought or
prosecuted against any other Grantor or any other Person and whether or not any other Grantor or any other Person is joined in any action under this Agreement. 

4.2 Waiver of Defenses. 

(a) The obligations of each Grantor under this Agreement will not be affected by, and each Grantor irrevocably waives any defense it might
have by virtue of, any act, omission, matter or thing which, but for this Section 4.2(a) (Waiver of Defenses), would reduce, release or prejudice any of its obligations under this Agreement (whether or not known to it or any First Lien
Secured Party). Such waiver includes: 
 (i) any time, forbearance, extension or waiver granted to, or composition or
compromise with, any Grantor or any other Person; 
 (ii) any taking, variation, compromise, exchange, renewal or release of,
or any refusal or neglect to perfect, take-up or enforce, any rights against, or security over assets of, any other Grantor or any other Person; 

(iii) any non-presentation or non-observance of any formality or other requirement in
respect of any instrument or any failure to realize the full value of any security; 
 (iv) any disability, incapacity or
lack of powers, authority or legal personality of or dissolution or change in the members or status of any Grantor or any other Person; 

(v) any amendment, variation (however fundamental), restatement, replacement and novation of any Basic Document or any other
document so that references to that document in this Agreement will include each amendment, variation, restatement, replacement and novation; 

(vi) any unenforceability, illegality or invalidity of any First Lien Obligation of any Person under any Basic Document or any
other document, the intent of the parties being that the Inventory Collateral Agent’s Lien in the Collateral and each Grantor’s obligations under this Agreement are to remain in full force and be construed accordingly, as if there were no
unenforceability, illegality or invalidity; 
 (vii) any avoidance, postponement, discharge, reduction, non-provability or other similar circumstance affecting any obligation of any other Grantor under any Basic Document resulting from any bankruptcy, insolvency, receivership, liquidation or dissolution proceedings or
from any law, regulation or order so that each such obligation is for the purposes of the Grantor’s obligations under this Agreement construed as if there were no such circumstance; or 

(viii) the acceptance or taking of other guaranties or security for the First Lien Obligations, or the settlement, release or
substitution of any guarantee or security or of any endorser, guarantor or other obligor in respect of the First Lien Obligations. 

  
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 (b) Each Grantor unconditionally and irrevocably waives: 

(i) diligence, presentment, demand for performance, notice of non-performance, protest, notice of protest, notice of dishonor,
notice of the creation or incurring of new or additional Indebtedness of the Grantors to the Inventory Collateral Agent or the other First Lien Secured Parties, notice of acceptance of this Agreement, and notices of any other kind whatsoever; 

(ii) the filing of any claim with any court in the event of a receivership, insolvency or bankruptcy; 

(iii) the benefit of any statute of limitations affecting any Grantor’s Obligations or the enforcement of this Agreement
or the Inventory Collateral Agent’s Lien in the Collateral; and 
 (iv) any offset or counterclaim or other right,
defense, or claim based on, or in the nature of, any obligation now or later owed to such Grantor by another Grantor, the Inventory Collateral Agent or any other First Lien Secured Party. 

(c) Each Grantor irrevocably and unconditionally authorizes the Inventory Collateral Agent and the other First Lien Secured Parties to take
any action in respect of the First Lien Obligations or any collateral or guaranties securing them or any other action that might otherwise be deemed a legal or equitable discharge of a surety, without notice to or the consent of such Grantor and
irrespective of any change in the financial condition of any Grantor. 
 4.3 Immediate Recourse. Each Grantor waives any right it may
have of first requiring the Inventory Collateral Agent or any other First Lien Secured Party (or any agent on their behalf) to proceed against or enforce any other rights, security or other guaranty or claim payment from any Person before claiming
from such Grantor under this Agreement and enforcing the Inventory Collateral Agent’s Lien in the Collateral. 
 4.4
Appropriations. Subject to the Intercreditor Agreement, until the Discharge of First Lien Obligations, the Inventory Collateral Agent and each other First Lien Secured Party (or any trustee or agent on their behalf) may: 

(a) refrain from applying or enforcing any other moneys, security, guaranties or rights held or received by the Inventory Collateral Agent or
that other First Lien Secured Party (or any agent on their behalf) in respect of the First Lien Obligations; 
 (b) apply and enforce them
in such manner and order as it sees fit (whether against the First Lien Obligations or otherwise); and 
 (c) hold in a suspense account any
moneys received from any realization of the Collateral, from any Grantor or on account of any Grantor’s liability under this Agreement, the Inventory Documents, the Intercreditor Agreement or the First Lien Security Documents to which the
Inventory Collateral Agent is a party, without liability to pay interest on those moneys. 

  
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 4.5 Non-competition. Unless: 

(a) the Discharge of First Lien Obligations has occurred, or 

(b) the Inventory Collateral Agent otherwise directs in writing: 

none of the Grantors will, after a claim has been made by the Inventory Collateral Agent or any other First Lien Secured Party against any Grantor, or by
virtue of any payment or performance by a Grantor under this Agreement: 
 (i) be subrogated to any rights, security or
moneys held, received or receivable by the Inventory Collateral Agent or any other First Lien Secured Party; 
 (ii) be
entitled to any right of contribution or indemnity in respect of any payment made or moneys received on account of any other Grantor’s Obligations; 

(iii) claim, rank, prove or vote as a creditor of any other Grantor or its estate in competition with the Inventory Collateral
Agent or any other First Lien Secured Party (or any trustee or agent on its behalf); or 
 (iv) receive, claim or have the
benefit of any payment, distribution or security from or on account of any other Grantor, or exercise any right of set-off as against any other Grantor. 

Each Grantor must hold in trust for and immediately pay or transfer to the Inventory Collateral Agent (or as directed by the Inventory
Collateral Agent) for the First Lien Secured Parties any payment or distribution or benefit of Security received by it contrary to this Section 4.5 (Non-competition) or in accordance with any directions given by the Inventory Collateral
Agent under this Section 4.5 (Non-competition). Each Grantor further agrees that, to the extent the agreement to withhold exercise of its rights of subrogation, reimbursement, indemnification and contribution as set forth herein is found
by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation, reimbursement or indemnification such Grantor may have against any other Grantor or against any other collateral or security, and any rights of
contribution such Grantor may have against any such guarantor, will be junior and subordinate to any rights the Inventory Collateral Agent or any First Lien Secured Party may have against any Grantor, to all right, title and interest the Inventory
Collateral Agent or any First Lien Secured Party may have in any such other collateral or security, and to any right the Inventory Collateral Agent or any First Lien Secured Party may have against any such guarantor. 

4.6 Waiver of Subrogation. Notwithstanding any provision to the contrary in any guaranty given by any Grantor in respect of the First
Lien Obligations, each Grantor: 
 (a) irrevocably and unconditionally waives, for the benefit of the Inventory Collateral Agent and the
other First Lien Secured Parties; and 
 (b) agrees not to claim or assert after the Inventory Collateral Agent has exercised its rights
under Section 8 (Enforcement of Security), 
 any right of subrogation, contribution or indemnity it may have against any other
Grantor as a result of any payment under that guaranty or in respect of the First Lien Obligations. 

  
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 4.7 Additional Security. This Agreement is in addition to and is not in any way prejudiced
by any other guarantee or security now or subsequently held by any First Lien Secured Party. 
 4.8 Election of Remedies. 

(a) Each Grantor understands that the exercise by the Inventory Collateral Agent and the other First Lien Secured Parties of certain rights
and remedies contained in the Basic Documents, the Intercreditor Agreement and the Security Documents may affect or eliminate such Grantor’s right of subrogation and reimbursement against another Grantor and that such Grantor may therefore
incur a partially or totally non-reimbursable liability under this Agreement. 
 (b) Each Grantor expressly authorizes the Inventory
Collateral Agent and the other First Lien Secured Parties to pursue their rights and remedies with respect to the First Lien Obligations in any order or fashion they deem appropriate, in their sole and absolute discretion. 

(c) Each Grantor waives any defense arising out of the absence, impairment, or loss of any or all rights of recourse, reimbursement,
contribution, exoneration or subrogation or any other rights or remedies of such Grantor against any other Grantor, any other Person or any security, whether resulting from any election of rights or remedies by the Inventory Collateral Agent or the
other First Lien Secured Parties, or otherwise. 
 4.9 Information Concerning the Grantors. 

(a) Each Grantor represents and warrants to the Inventory Collateral Agent and the other First Lien Secured Parties that the Grantor is
affiliated with each other Grantor or is otherwise in a position to have access to all relevant information bearing on the present and continuing creditworthiness of each other Grantor and the risk that any Grantor will be unable to pay the First
Lien Obligations when due. 
 (b) Each Grantor waives any requirement that the Inventory Collateral Agent or the other First Lien Secured
Parties advise the Grantor of information known to the Inventory Collateral Agent or any other First Lien Secured Party regarding the financial condition or business of any other Grantor, or any other circumstance bearing on the risk of non-performance of the First Lien Obligations. 
 (c) Each Grantor assumes sole responsibility for keeping
itself informed of the financial condition and business of each other Grantor. 
  

	 	SECTION 5.	Representations and Warranties. 

 5.1 Representations and Warranties. Each
Grantor makes the following representations and warranties set out in this Section 5 (Representations and Warranties) to each First Lien Secured Party. 

(a) As of the date of this Agreement, each Grantor’s name as it appears in official filings in its jurisdiction of organization,
organization type, organization number, if any, issued by its jurisdiction of organization, and the current location of such Grantor’s chief executive office, places of business and warehouses and premises at which any Collateral or books and
records are located are set forth in Schedule 5 (Executive Offices; Collateral Locations), none of such locations has changed within the five (5) years preceding the date of this Agreement and such Grantor has not operated in any
jurisdiction under any other trade name or fictitious or other name within the five (5) years preceding the date of this Agreement, except as set forth in Schedule 5 (Executive Offices; Collateral Locations), and each Grantor has only
one jurisdiction of organization. 

  
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 (b) Each Grantor has exclusive possession and control of the Collateral pledged by it hereunder,
except for: 
 (i) Collateral subject to a Control Agreement in compliance with Section 3.4 (Control); and 

(ii) Possessory Collateral delivered to the ABL Loan Collateral Agent in compliance with Section 3.5 (Delivery of
Possessory Collateral); and 
 (iii) Collateral held by a bailee, which has delivered to the Inventory Collateral Agent a
bailee letter covering that Collateral in accordance with Section 3.7 (Bailee Letters). 
 (c) With respect to the Pledged Capital
Stock: 
 (i) all Equity Interests have been duly authorized and are validly issued, fully-paid and non-assessable; 

(ii) the Equity Interests constitute all of the issued and outstanding equity or ownership interests in their respective
issuer, and there are no other equity or ownership interests in the issuer, options or rights to acquire or subscribe for any such interests, or securities or instruments convertible into or exchangeable or exercisable for any such interests; 

(d) except as permitted under the First Lien Documents: 

(i) such Grantor is the sole legal and beneficial owner of, and has the power to transfer and grant a Lien in the Collateral
then in existence; 
 (ii) none of the Collateral is subject to any Lien other than Permitted Security, and such Grantor
shall defend the Collateral against all claims and demands of all Persons at any time claiming the same or any interest therein adverse to the Inventory Collateral Agent; 

(iii) such Grantor has not agreed or committed to sell, assign, pledge, transfer, license, lease or encumber any of the
Collateral, or granted any option, warrant, or right with respect to any of the Collateral; and 
 (iv) no effective
mortgage, deed of trust, financing statement, security agreement or other instrument similar in effect is on file or of record with respect to any Collateral, except for those that create, perfect or evidence the Inventory Collateral Agent’s
Lien or the Second Lien Agent’s Lien. 
 (e) [Reserved]. 

(f) None of the Pledged Capital Stock constitutes “margin stock” within the meaning of Regulation U or X issued by the Board of
Governors of the United States Federal Reserve System. 

  
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 (g) As of the date hereof and each date on which such Grantor is required to deliver a Security
Supplement under Section 6.1(j) (Undertakings): 
 (i) all Collateral consisting of equipment, inventory and
goods is located in the places listed in Schedule 6 (States in which Collateral Consisting of Goods is Located), except for inventory which in the ordinary course of business is in transit either (i) from a supplier to such Grantor,
(ii) between locations set forth on Schedule 6 (States in which Collateral Consisting of Goods is Located) or (iii) to customers of such Grantor; 

(ii) Schedule 4 (Pledged Capital Stock) sets forth a true and complete list with respect to each Grantor of all the
Equity Interests owned by such Grantor; 
 (iii) each issuer of any Equity Interests keeps at its address listed in Schedule
4 (Pledged Capital Stock) its company records, stock ledger and all records, documents and instruments relating to or evidencing such Equity Interests; 

(iv) such Grantor has no interest in any chattel paper, except as set forth on Schedule 7 (Chattel Paper); 

(v) the Grantor has no interest in any letter-of-credit rights constituting Collateral, except as set forth on Schedule 8
(Letter of Credit Rights Constituting Collateral); 
 (vi) the Grantor has no interest in any intellectual property
rights, except as set forth on Schedule 3 (Intellectual Property Rights); 
 (vii) no negotiable documents are
outstanding with respect to any of the inventory, except as set forth on Schedule 9 (Negotiable Instruments); and 

(viii) the Grantor has no commercial tort claims except as set forth on Schedule 2 (Commercial Tort Claims). 

(h) Each Grantor has the power and authority to pledge the Collateral pledged by it hereunder in the manner hereby done or contemplated. 

(i) No consent or approval of any Governmental Authority, any securities exchange or any other Person was or is necessary to the validity of
the security interest effected hereby (other than such as have been obtained and are in full force and effect). 
 (j) By virtue of the
execution and delivery by the Grantors of this Agreement, when any Possessory Collateral is delivered to the Inventory Collateral Agent in accordance with this Agreement the Inventory Collateral Agent will obtain a legal, valid and perfected
first-priority lien upon and security interest in such Possessory Collateral as security for the payment and performance of the First Lien Obligations. 

  
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 5.2 No Liability. 

(a) Except as provided for herein, none of the Grantors’ rights, interests, liabilities and obligations under contractual obligations
that constitute part of the Collateral are affected by this Agreement or the exercise by the Inventory Collateral Agent of its rights under this Agreement; 

(b) Neither the Inventory Collateral Agent nor any other First Lien Secured Party, unless it expressly agrees in writing, will have any
liabilities or obligations under any contractual obligation that constitutes part of the Collateral as a result of this Agreement, the exercise by the Inventory Collateral Agent of its rights under this Agreement or otherwise; and 

(c) Neither the Inventory Collateral Agent nor any other First Lien Secured Party has or will have any obligation to collect upon or enforce
any contractual obligation or claim that constitutes part of the Collateral, or to take any other action with respect to the Collateral. 

5.3 Necessary Filings. All filings, registrations, recordings and other actions necessary or appropriate to create, preserve and
perfect the security interest granted by such Grantor to the Inventory Collateral Agent hereby in respect of the Collateral have been accomplished, in each case within the time frames required by this Agreement and the Credit Agreement, and the
security interest granted to the Inventory Collateral Agent pursuant to this Agreement in and to the Collateral creates a valid and, together with all such filings, registrations, recordings and other actions, a perfected security interest therein
prior to the rights of all other Persons therein and subject to no other Liens (other than Permitted Security) and is entitled to all the rights, priorities and benefits afforded by the UCC or other relevant law as enacted in any relevant
jurisdiction to perfected security interests, in each case to the extent that the Collateral consists of the type of property in which a security interest may be perfected by possession or control (within the meaning of the UCC as in effect on the
date hereof in the State of New York), by filing a financing statement under the UCC as enacted in any relevant jurisdiction or by a filing of a Grant of Security Interest in the respective form attached hereto in the United States Patent and
Trademark Office or in the United States Copyright Office. 
  

	 	SECTION 6.	Undertakings. 

 6.1 Undertakings. Each Grantor agrees to be bound by the
covenants set out in this Section 6 (Undertakings) until the Discharge of First Lien Obligations. 
 (a) Except as otherwise
permitted under the First Lien Documents, no Grantor will: 
 (i) change its or any Issuer’s name as it appears in
official filings in the jurisdiction of its incorporation or organization; 
 (ii) do business under any name other than a
name authorized under sub-paragraph (i) above; 
 (iii) change its or any Issuer’s chief executive office,
principal place of business, corporate offices or warehouses or locations at which Collateral is held or stored, or the location of its records concerning the Collateral, in each case, from that set forth in the relevant schedules to this Agreement;

 (iv) change its or any Issuer’s jurisdiction of incorporation or organization or incorporate or organize in any
additional jurisdictions; 

  
 22 

 (v) otherwise amend its or any Issuer’s charter documents or the rights
attaching to its or any Issuer’s Equity Interests or grant any waiver thereunder in any way that is materially adverse to the interests of the First Lien Secured Parties; 

(vi) directly or indirectly liquidate, wind up, terminate, reorganize or dissolve itself or any Issuer (or suffer any
liquidation, winding up, termination, reorganization or dissolution) or otherwise wind up itself or any Issuer; or 
 (vii)
cancel, terminate or permit the cancellation or termination of any of its or any Issuer’s charter documents; 
 unless, in the case of each of
sub-paragraphs (i) through (iv) any such new location is in Hawaii and the relevant Grantor will have given the Inventory Collateral Agent at least thirty (30) days’ prior written notice of such change and all action necessary or
reasonably requested by the Inventory Collateral Agent to preserve and perfect any Lien with respect to the Collateral will have been completed or taken. 

(b) Each Grantor permits the Inventory Collateral Agent and its agents and representatives, during normal business hours and upon reasonable
notice, to inspect Collateral, to examine and make copies of and abstracts from the records of the Collateral, and to discuss matters relating to the Collateral directly with such Grantor’s officers and employees. 

(c) Each Grantor will cause each Issuer to keep and maintain, at its address indicated in Schedule 4 (Pledged Capital Stock) its
company records and all records, documents and instruments constituting, relating to, or evidencing such Pledged Capital Stock. Each Grantor agrees to cause each Issuer to permit the Inventory Collateral Agent and its agents and representatives
during normal business hours and upon reasonable notice, to examine and make copies of and abstracts from the records and stock ledgers and to discuss matters relating to the Pledged Capital Stock of such issuer and its records directly with its
officers and employees. 
 (d) At the Inventory Collateral Agent’s request, any Grantor must provide it with any information concerning
the Collateral that it may reasonably request. 
 (e) Except as otherwise permitted under the First Lien Documents, each Grantor: 

(i) must maintain sole legal and beneficial ownership of the Collateral; 

(ii) must not permit any Collateral to be subject to any Lien other than Permitted Security and must at all times warrant and
defend the Inventory Collateral Agent’s Lien in the Collateral against all other Liens and claimants (other than the Liens created under the Inventory Second Lien Security Agreement); 

(iii) must not sell, assign, transfer, pledge, license, lease or encumber, or grant any option, warrant, or right with respect
to, any of the Collateral, or agree or contract to do any of the foregoing; 
 (iv) must not waive, amend or terminate, in
whole or in part, any accessory or ancillary right or other right in respect of any Collateral; and 
 (v) must not take any
action which would result in a reduction in the value of any Collateral. 

  
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 (f) Except as otherwise permitted under the First Lien Documents, each Grantor must pay when due
(and in any case before any penalties are assessed or any Lien is imposed on any Collateral) all taxes, assessments and charges imposed on or in respect of the Collateral and all claims against the Collateral, except to the extent such tax,
assessment or charge (i) is being contested in good faith with due diligence and by appropriate proceedings, (ii) is adequately disclosed and fully provided for in the financial statements of each Grantor in accordance with generally
accepted accounting principles in the United States of America, (iii) enforcement is stayed (or bonded in full) for so long as each Grantor is pursuing such contest and (iv) such contest does not involve any material risk of the forfeiture
or loss of any material portion of the Collateral and an adequate reserve is set aside for payment of such tax, assessment or charge and the costs required to contest them. 

(g) Except as otherwise permitted under the First Lien Documents, in any suit, legal action, arbitration or other proceeding involving the
Collateral or the Inventory Collateral Agent’s Lien, each Grantor must take all lawful action to avoid impairment of the Inventory Collateral Agent’s Lien or the Inventory Collateral Agent’s rights under this Agreement or the
imposition of a Lien on any of the Collateral. 
 (h) Except for dividends or distributions permissible under Section 10.03 of the
Credit Agreement and Section 6.19 (Distributions and redemptions of membership interests) of the Framework Agreement and made in compliance with those sections, no Grantor will permit any Issuer: 

(i) to make, declare, or pay any dividends, distributions, or returns of capital, or purchase, redeem, or otherwise acquire for
value any shares of capital stock or other ownership interests in such issuer now or later outstanding, or make any distribution of assets or property to its members or shareholder as such; 

(ii) to cancel or change the terms of any Equity Interests; or 

(iii) to effect or permit the change of control of any Issuer, except as expressly permitted under both the Credit Agreement
and the Framework Agreement,. 
 (i) No Grantor will take any action, or permit any issuer of Equity Interests to take any action, that
could cause any of the Pledged Capital Stock to constitute “margin stock” within the meaning of Regulation U or X issued by the Board of Governors of the United States Federal Reserve System. 

(j) Annually on each anniversary of the date of this Agreement and from time to time on written demand from the Inventory Collateral Agent,
each Grantor will deliver to the Inventory Collateral Agent (i) a Security Supplement executed by an Authorized Officer of such Grantor, together with supplements to all of the Schedules attached to this Agreement or (ii) a written
confirmation executed by an Authorized Officer of such Grantor confirming that there has been no change in the information provided in this Agreement since the date of the execution and delivery of this Agreement or the date of the most recent
Security Supplement or written confirmation delivered pursuant to this Section 6.1(j) (Undertakings). 
 (k) At any time that
any Grantor acquires, leases or otherwise utilizes any real property, such Grantor will, promptly but in any case within two (2) Business Days, notify in writing the Inventory Collateral Agent and the Inventory Party of such acquisition, lease
or other utilization and whether such real property is material to the operation or value of the Refinery and the System or Tesoro Hawaii’s ability to perform its obligations under the Basic Documents. 

  
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 6.2 Certification of Limited Liability Company and Limited Partnership Interests. Each
Grantor acknowledges and agrees that (a) to the extent each interest in any limited liability company or limited partnership controlled now or in the future by such Grantor and pledged hereunder is a “security” within the meaning of
Article 8 of the New York UCC and is governed by Article 8 of the New York UCC, such interest will be certificated and (b) each such interest will at all times hereafter continue to be such a security and represented by such certificate. Each
Grantor further acknowledges and agrees that with respect to any interest in any limited liability company or limited partnership controlled now or in the future by such Grantor and pledged hereunder that is not a “security” within the
meaning of Article 8 of the New York UCC, such Grantor will promptly elect to treat any such interest as a “security” within the meaning of Article 8 of the New York UCC, and will promptly make such interest be represented by a
certificate, but will not do so unless and until such Grantor provides prior written notification to the Inventory Collateral Agent of such election and such interest is thereafter represented by a certificate that is promptly delivered to the
Inventory Collateral Agent pursuant to the terms hereof. 
 6.3 Indemnity. 

(a) Each Grantor jointly and severally agrees to indemnify, reimburse and hold the Inventory Collateral Agent, each other First Lien Secured
Party and their respective successors, assigns, employees, officers, directors, affiliates and agents (each, an Indemnitee, and collectively the Indemnitees) harmless from any and all liabilities, obligations, damages, injuries,
penalties, claims, demands, actions, suits, judgments and any and all costs, expenses or disbursements (including reasonable attorneys’ fees and expenses) (collectively, expenses) of whatsoever kind and nature imposed on, asserted
against or incurred by any of the Indemnitees in any way relating to or arising out of this Agreement, any other Basic Document or any other document executed in connection herewith or therewith or in any other way connected with the administration
of the transactions contemplated hereby or thereby or the enforcement of any of the terms of, or the preservation of any rights under any thereof, or in any way relating to or arising out of the manufacture, ownership, ordering, purchase, delivery,
control, acceptance, lease, financing, possession, operation, condition, sale, return or other disposition, or use of the Collateral (including, without limitation, latent or other defects, whether or not discoverable), the violation of the laws of
any country, state or other governmental body or unit, any tort (including, without limitation, claims arising or imposed under the doctrine of strict liability, or for or on account of injury to or the death of any Person (including any
Indemnitee), or property damage), or contract claim; provided that no Indemnitee shall be indemnified pursuant to this Section 6.3 (Indemnity) for losses, damages or liabilities to the extent caused by the gross negligence or willful
misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision). Each Grantor agrees that upon written notice by any Indemnitee of the assertion of such a liability, obligation, damage,
injury, penalty, claim, demand, action, suit or judgment, the relevant Grantor shall assume full responsibility for the defense thereof. Each Indemnitee agrees to promptly notify the relevant Grantor of any such assertion of which such Indemnitee
has knowledge. 
 (b) Without limiting the application of paragraph (a) above, each Grantor agrees, jointly and severally, to pay or
reimburse the Inventory Collateral Agent for any and all reasonable fees, costs and expenses of whatever kind or nature incurred in connection with the creation, preservation or protection of the Inventory Collateral Agent’s Liens on, and
security interest in, the Collateral, including, without limitation, all fees and taxes in connection with the recording or filing of instruments and documents in public offices, payment or discharge of any taxes or Liens upon or in respect of the
Collateral, premiums for insurance with respect to the Collateral and all other fees, costs and expenses in connection with protecting, maintaining or preserving the Collateral and the Inventory Collateral Agent’s interest therein, whether
through judicial proceedings or otherwise, or in defending or prosecuting any actions, suits or proceedings arising out of or relating to the Collateral. 

  
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 (c) Without limiting the application of paragraphs (a) and (b) above, each Grantor
agrees, jointly and severally, to pay, indemnify and hold each Indemnitee harmless from and against any loss, costs, damages and expenses which such Indemnitee may suffer, expend or incur in consequence of or growing out of any misrepresentation by
any Grantor in this Agreement, any other Basic Document or in any writing contemplated by or made or delivered pursuant to or in connection with this Agreement or any other Basic Document. 

(d) If and to the extent that the obligations of any Grantor under this Section 6.3 (Indemnity) are unenforceable for any reason,
such Grantor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law. 

6.4 Indemnity Obligations Secured by Collateral; Survival. Any amounts paid by any Indemnitee as to which such Indemnitee has the right
to reimbursement shall constitute obligations secured by the Collateral. The indemnity obligations of each Grantor contained in Section 6.3 (Indemnity) shall continue in full force and effect notwithstanding the full payment of all of
the other Obligations and notwithstanding the full payment of all the Notes issued, and Loans made, under the Credit Agreement, and the termination of all letters of credit issued under the Credit Agreement. 

 

	 	SECTION 7.	When Security May Be Enforced. 

 Subject to the Intercreditor Agreement, this
Security may be enforced by the Inventory Collateral Agent at any time after a Trigger Event has occurred and is continuing. 
  

	 	SECTION 8.	Enforcement of Security. 

 8.1 General. 

(a) After this Security has become enforceable, subject to the Intercreditor Agreement, the Inventory Collateral Agent may immediately, in its
absolute discretion, exercise any right under: 
 (i) applicable law; or 

(ii) this Agreement, 
 to enforce
all or any part of the Security in respect of any Collateral in any manner or order it sees fit. 
 (b) This includes: 

(i) any rights and remedies available to the Inventory Collateral Agent under applicable law and under the UCC (whether or not
the UCC applies to the affected Collateral and regardless of whether or not the UCC is the law of the jurisdiction where the rights or remedies are asserted) as if those rights and remedies were set forth in this Agreement in full; 

(ii) transferring or assigning to, or registering in the name of, the Inventory Collateral Agent or its nominees any of the
Collateral; 
 (iii) exercising any consent and other rights relating to any Collateral; 

  
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 (iv) performing or complying with any contractual obligation that constitutes
part of the Collateral; 
 (v) receiving, endorsing, negotiating, executing and delivering or collecting upon any check,
draft, note, acceptance, chattel paper, account, instrument, document, letter of credit, contract, agreement, receipt, release, bill of lading, invoice, endorsement, assignment, bill of sale, deed, security, share certificate, stock power, proxy, or
instrument of conveyance or transfer constituting or relating to any Collateral; 
 (vi) asserting, instituting, filing,
defending, settling, compromising, adjusting, discounting or releasing any suit, action, claim, counterclaim, right of set off or other right or interest relating to any Collateral; 

(vii) executing and delivering acquittances, receipts and releases in respect of Collateral; 

(viii) entering onto the property where any Collateral is located to take possession thereof without judicial process; 

(ix) before disposition of the Collateral, processing or otherwise preparing the Collateral for disposition in any manner to
the extent the Inventory Collateral Agent deems appropriate; 
 (x) taking possession of the Grantor’s premises or place
custodians in exclusive control thereof, remaining on such premises and using the same and any of the Grantor’s equipment for the purpose of completing any work in process, taking any actions described in sub-paragraph (ix) and collecting
any First Lien Obligations; 
 (xi) without notice except as specified in Section 8.4(b) (Inventory Collateral
Agent’s Rights upon Trigger Event), selling the Collateral or any part thereof in one or more parcels at public or private sale, at any of the First Lien Secured Party’s offices or elsewhere, for cash, on credit or for future delivery,
at such time or times and at such price or prices and upon such other terms as the Inventory Collateral Agent may deem commercially reasonable; 

(xii) exercising dominion and control over and refusing to permit further withdrawals from any deposit account maintained with
the Inventory Collateral Agent or any First Lien Secured Party and providing instructions directing the disposition of funds in any deposit account not maintained with the Inventory Collateral Agent or any First Lien Secured Party; 

(xiii) providing entitlement orders with respect to security entitlements and other investment property constituting a part of
the Collateral and, without notice to the Grantor, transfer to or register in the name of the Inventory Collateral Agent or any of its nominees any or all of the Equity Interest or any other investment property; and 

(xiv) exercising any other right or remedy available to the Inventory Collateral Agent under the Basic Documents, the
Intercreditor Agreement and the other Inventory Security Documents or any other agreement between the parties. 

  
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 8.2 Distributions and Voting Rights 

(a) So long as no Trigger Event has occurred and is continuing, each Grantor will be entitled to exercise all voting and other consensual
rights with respect to the Pledged Capital Stock for any purpose not inconsistent with the terms of any Basic Document, the Intercreditor Agreement or any Security Document and to receive and retain all dividends, interest, revenues, income,
distributions and proceeds of any kind in respect of the Pledged Capital Stock to the extent permitted by such documents. 
 (b) Upon the
occurrence and during the continuation of a Trigger Event, all rights of each Grantor to exercise voting and other consensual rights with respect to the Pledged Capital Stock and to receive dividends, interest, revenues, income, distributions and
proceeds of any kind in respect of the Pledged Capital Stock will cease, and all these rights will immediately become vested solely in the Inventory Collateral Agent or its nominees, and such Grantor grants the Inventory Collateral Agent or its
nominees the Grantor’s irrevocable and unconditional proxy for this purpose. After the occurrence and during the continuation of a Trigger Event, any dividends, interest, revenues, income, distribution and proceeds of any kind in respect of the
Pledged Capital Stock received by such Grantor will be held in trust for the Inventory Collateral Agent, and such Grantor will keep all such amounts separate and apart from all other funds and property so as to be capable of identification as the
property of the Inventory Collateral Agent and will deliver these amounts at such time as the Inventory Collateral Agent may request to the Inventory Collateral Agent in the identical form received, properly endorsed or assigned if required to
enable the Inventory Collateral Agent to complete collection. 
 8.3 Collections after a Trigger Event. 

(a) Following the occurrence of a Trigger Event that is continuing, until the Inventory Collateral Agent exercises its right to collect the
proceeds of and amounts payable in respect of Collateral, each Grantor will collect, or will cause to be collected on its behalf pursuant to the Inventory Documents, the Intercreditor Agreement and the other First Lien Security Documents to which it
is a party, with diligence, and at its own expense, all such proceeds and amounts as they become due or payable. The parties to this Agreement expressly agree that each Grantor must diligently collect the proceeds of and amounts payable in respect
of Collateral and enforce (before the occurrence of a Trigger Event) its rights in respect of Collateral. 
 (b) If a Trigger Event occurs
and is continuing, each Grantor must hold all funds and other property received or collected in respect of the Collateral in trust for the Inventory Collateral Agent, and must keep these funds and this other property segregated from all other funds
and property so as to be capable of identification. 
 (c) Each Grantor must deliver those funds and that other property to the Inventory
Collateral Agent in the identical form received, properly endorsed or assigned when required to enable the Inventory Collateral Agent to complete collection. 

(d) After the occurrence and during the continuation of a Trigger Event, no Grantor may settle, compromise, adjust, discount or release any
claim in respect of Collateral and must not accept any returns of merchandise other than in the ordinary course of business. 
 8.4
Inventory Collateral Agent’s Rights upon Trigger Event. 
 (a) Each Grantor irrevocably constitutes and appoints the Inventory
Collateral Agent, with full power of substitution, as such Grantor’s true and lawful attorney in fact, in such 

  
 28 

 
Grantor’s name or in the Inventory Collateral Agent’s name or otherwise, and at such Grantor’s expense, to take any of the actions authorized by this Agreement or permitted under
applicable law upon the occurrence and during the continuation of a Trigger Event (in the name of such Grantor or otherwise) to act, require, demand, receive, compound and give acquittances for any and all moneys and claims for moneys due or to
become due to such Grantor under or arising out of the Collateral, to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any action or institute any proceedings which the Inventory Collateral
Agent may deem to be necessary or advisable to protect the interests of the First Lien Secured Parties, including the right to act, require, demand, receive, compound and give acquittance for any and all moneys and claims for moneys due or to become
due to such Grantor under or arising out of the Collateral, to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any action or institute any proceedings which the Inventory Collateral Agent may
deem to be necessary or advisable to protect the interests of the Secured Parties, and to take any action and to execute any instrument that the Inventory Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement,
without notice to or the consent of such Grantor. This power of attorney is a power coupled with an interest and cannot be revoked. Each Grantor ratifies and confirms all actions taken by the Inventory Collateral Agent or its agents under its
respective power of attorney. 
 (b) The Inventory Collateral Agent or any First Lien Secured Party may be the purchaser of any or all of
the Collateral at any sale referred to in Section 8.1(b)(xi) (General) and the Inventory Collateral Agent, as agent for and representative of the First Lien Secured Parties (but not any First Lien Secured Party in its individual capacity),
will be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the First Lien Obligations as a credit on account of
the purchase price for any Collateral payable by the Inventory Collateral Agent at such sale. Each purchaser at any such sale will hold the property sold absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby
waives (to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. Each Grantor agrees that,
to the extent notice of sale will be required by applicable law, at least ten (10) days’ notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made will constitute reasonable
notification. The Inventory Collateral Agent will not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Inventory Collateral Agent may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. Each Grantor hereby waives any claims against the Inventory Collateral Agent arising by reason of the fact
that the price at which any Collateral may have been sold at such a private sale was less that in the price which might have been obtained at a public sale, even if the Inventory Collateral Agent accepts the first offer received and does not offer
such Collateral to more than one offeree. If the proceeds of any sale or other disposition of the Collateral are insufficient to pay all the First Lien Obligations, the applicable Grantor(s) will be jointly and severally liable for the deficiency
and the fees of any attorneys employed by the Inventory Collateral Agent to collect such deficiency. 
 (c) The Inventory Collateral Agent
may comply with any applicable state or federal law requirements in connection with a disposition of Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any sale of Collateral. 

(d) The grant to the Inventory Collateral Agent under this Agreement of any right, power or remedy does not impose upon the Inventory
Collateral Agent any duty to exercise that right, power or remedy. The Inventory Collateral Agent will have no obligation to take any steps to preserve any claim or other right against any Person or with respect to any Collateral. 

  
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 (e) The applicable Grantor bears the risk of loss, damage, diminution in value, or destruction of
the Collateral. 
 (f) The Inventory Collateral Agent will have no responsibility for any act or omission of any courier, bailee, broker,
bank, investment bank or any other Person chosen by it with reasonable care. 
 (g) The Inventory Collateral Agent makes no express or
implied representations or warranties with respect to any Collateral or other property released to any Grantor or its successors and assigns. 

(h) Each Grantor agrees that the Inventory Collateral Agent will have met its duty of care under applicable law if it holds, maintains and
disposes of Collateral in the same manner that it holds, maintains and disposes of property for its own account. 
 (i) Except as set forth
in this Section 8.4 (Inventory Collateral Agent’s Rights upon Trigger Event) or as required under applicable law, the Inventory Collateral Agent will have no duties or obligations under this Agreement or otherwise with respect to the
Collateral. 
 (j) The sale, transfer or other disposition under this Agreement of any right, title, or interest of each Grantor in any item
of Collateral will: 
 (i) operate to divest such Grantor permanently and all Persons claiming under or through such Grantor
of that right, title, or interest, and 
 (ii) be a perpetual bar, both at law and in equity, to any claims by the relevant
Grantor or any Person claiming under or through the Grantor with respect to that item of Collateral. 
 (k) Each Grantor further agrees that
a breach of any of the covenants contained in this Section 8 (Enforcement of Security) will cause irreparable injury to the Inventory Collateral Agent, that the Inventory Collateral Agent has no adequate remedy at law in respect of such
breach and, as a consequence, that each and every covenant contained in this Section 8 (Enforcement of Security) will be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any defenses
against an action for specific performance of such covenants except for a defense that no default has occurred giving rise to the First Lien Obligations becoming due and payable before their stated maturities. 

(l) By accepting the benefits of this Agreement and each other Inventory Security Document, the First Lien Secured Parties expressly
acknowledge and agree that this Agreement and each other Inventory Security Document may be enforced only by the action of the Inventory Collateral Agent and that no other First Lien Secured Party shall have any right individually to seek to enforce
or to enforce this Agreement or to realize upon the security to be granted hereby, it being understood and agreed that such rights and remedies may be exercised by the Inventory Collateral Agent for the benefit of the First Lien Secured Parties upon
the terms of this Agreement and the other Inventory Security Document. 

  
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 (m) Subject to the terms of the Intercreditor Agreement, each Grantor agrees that, if any Trigger
Event shall have occurred and be continuing, then without limiting any other rights or remedies of the Inventory Collateral Agent, the Inventory Collateral Agent may instruct the obligor or obligors on any agreement, instrument or other obligation
constituting the Collateral to make any payment required by the terms of such agreement, instrument or other obligation, directly to the Inventory Collateral Agent and may exercise any and all remedies of such Grantor in respect of such Collateral.

 8.5 No Marshaling. 

(a) The Inventory Collateral Agent need not, and each Grantor irrevocably waives and agrees that it will not invoke or assert any law
requiring the Inventory Collateral Agent to: 
 (i) attempt to satisfy the First Lien Obligations by collecting them from any
other Person liable for them; or 
 (ii) marshal any security or guarantee securing payment or performance of the First Lien
Obligations or any particular asset of the Grantor. 
 (b) The Inventory Collateral Agent may release, modify or waive any collateral or
guarantee provided by any other Person to secure any of the First Lien Obligations, without affecting the Inventory Collateral Agent’s rights against the Grantor. 

8.6 Grant of License to Use Intellectual Property. For the purpose of enabling the Inventory Collateral Agent to exercise rights and
remedies under this Agreement at such time as the Inventory Collateral Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to the Inventory Collateral Agent an irrevocable, nonexclusive license
(exercisable without payment of royalty or other compensation to the Grantors) to use, license or sublicense any of the Collateral consisting of Intellectual Property now owned or hereafter acquired by such Grantor, and wherever the same may be
located, and including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof. The use of such license by the
Inventory Collateral Agent may be exercised, at the option of the Inventory Collateral Agent, upon the occurrence and during the continuation of a Trigger Event; provided that any license, sublicense or other transaction entered into by the
Inventory Collateral Agent in accordance herewith shall be binding upon the Grantors notwithstanding any subsequent cure of a Trigger Event. 

8.7 Securities Act. In view of the position of the Grantors in relation to the Pledged Capital Stock, or because of other current or
future circumstances, a question may arise under the Securities Act of 1933, as now or hereafter in effect, or any similar statute hereafter enacted analogous in purpose or effect (such Act and any such similar statute as from time to time in effect
being called the Federal Securities Laws) with respect to any disposition of the Pledged Capital Stock permitted hereunder. Each Grantor understands that compliance with the Federal Securities Laws might very strictly limit the course of
conduct of the Inventory Collateral Agent if the Inventory Collateral Agent were to attempt to dispose of all or any part of the Pledged Capital Stock, and might also limit the extent to which or the manner in which any subsequent transferee of any
Pledged Capital Stock could dispose of the same. Similarly, there may be other legal restrictions or limitations affecting the Inventory Collateral Agent in any attempt to dispose of all or part of the Pledged Capital Stock under applicable Blue Sky
or other state securities laws or similar laws analogous in purpose or effect. Each Grantor recognizes that in light of such restrictions and limitations the Inventory Collateral Agent may, with respect to any sale of the Pledged Capital Stock,
limit the purchasers to those who will agree, among other things, to acquire 

  
 31 

 
such Pledged Capital Stock for their own account, for investment, and not with a view to the distribution or resale thereof. Each Grantor acknowledges and agrees that in light of such
restrictions and limitations, the Inventory Collateral Agent, in its sole and absolute discretion, (a) may proceed to make such a sale whether or not a registration statement for the purpose of registering such Pledged Capital Stock or part
thereof shall have been filed under the Federal Securities Laws and (b) may approach and negotiate with a single potential purchaser to effect such sale. Each Grantor acknowledges and agrees that any such sale might result in prices and other
terms less favorable to the seller than if such sale were a public sale without such restrictions. In the event of any such sale, the Inventory Collateral Agent shall incur no responsibility or liability for selling all or any part of the Pledged
Capital Stock at a price that the Inventory Collateral Agent, in its sole and absolute discretion, may in good faith deem reasonable under the circumstances, notwithstanding the possibility that a substantially higher price might have been realized
if the sale were deferred until after registration as aforesaid or if more than a single purchaser were approached. The provisions of this Section 8.7 will apply notwithstanding the existence of a public or private market upon which the
quotations or sales prices may exceed substantially the price at which the Inventory Collateral Agent sells. 
 8.8 Registration.
Each Grantor agrees that, upon the occurrence and during the continuance of an Enforcement Event, if for any reason the Inventory Collateral Agent desires to sell any of the Pledged Capital Stock at a public sale, it will, at any time and from time
to time, upon the written request of the Inventory Collateral Agent, use its best efforts to take or to cause the issuer of such Pledged Capital Stock to take such action and prepare, distribute and/or file such documents, as are required or
advisable in the reasonable opinion of counsel for the Inventory Collateral Agent to permit the public sale of such Pledged Capital Stock. Each Grantor further agrees to indemnify, defend and hold harmless the Inventory Collateral Agent, each other
Secured Party, any underwriter and their respective affiliates and their respective officers, directors, affiliates and controlling persons from and against all loss, liability, expenses, costs of counsel (including reasonable fees and expenses to
the Inventory Collateral Agent of legal counsel), and claims (including the costs of investigation) that they may incur insofar as such loss, liability, expense or claim arises out of or is based upon any alleged untrue statement of a material fact
contained in any prospectus (or any amendment or supplement thereto) or in any notification or offering circular, or arises out of or is based upon any alleged omission to state a material fact required to be stated therein or necessary to make the
statements in any thereof not misleading, except insofar as the same may have been caused by any untrue statement or omission based upon information furnished in writing to such Grantor or the issuer of such Pledged Capital Stock by the Inventory
Collateral Agent or any other Secured Party expressly for use therein. Each Grantor further agrees, upon such written request referred to above, to use its best efforts to qualify, file or register, or cause the issuer of such Pledged Capital Stock
to qualify, file or register, any of the Pledged Capital Stock under the Blue Sky or other securities laws of such states as may be requested by the Inventory Collateral Agent and keep effective, or cause to be kept effective, all such
qualifications, filings or registrations. Each Grantor will bear all costs and expenses of carrying out its obligations under this Section 8.8 (Registration). Each Grantor acknowledges that there is no adequate remedy at law for failure
by it to comply with the provisions of this Section 8.8 (Registration) and that such failure would not be adequately compensable in damages, and therefore agrees that its agreements contained in this Section 8.8
(Registration) may be specifically enforced. 
 8.9 [Reserved]. 

8.10 Waiver of Claims. Except as otherwise provided in this Agreement, EACH GRANTOR HEREBY WAIVES, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN CONNECTION WITH THE INVENTORY COLLATERAL AGENT’S TAKING POSSESSION OR THE INVENTORY COLLATERAL AGENT’S DISPOSITION OF ANY 

  
 32 

 
OF THE COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES, and each Grantor hereby further waives, to the extent permitted by
law: 
 (a) all damages occasioned by such taking of possession or any such disposition except any damages which are the direct result of
the Inventory Collateral Agent’s gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision); 

(b) all other requirements as to the time, place and terms of sale or other requirements with respect to the enforcement of the Inventory
Collateral Agent’s rights hereunder; and 
 (c) all rights of redemption, appraisement, valuation, stay, extension or moratorium now or
hereafter in force under any applicable law in order to prevent or delay the enforcement of this Agreement or the absolute sale of the Collateral or any portion thereof, and each Grantor, for itself and all who may claim under it, insofar as it or
they now or hereafter lawfully may, hereby waives the benefit of all such laws. 
 Any sale of, or the grant of options to purchase, or any
other realization upon, any Collateral shall operate to divest all right, title, interest, claim and demand, either at law or in equity, of the relevant Grantor therein and thereto, and shall be a perpetual bar both at law and in equity against such
Grantor and against any and all Persons claiming or attempting to claim the Collateral so sold, optioned or realized upon, or any part thereof, from, through and under such Grantor. 

 

	 	SECTION 9.	Application of Proceeds. 

 Any moneys received in connection with the Collateral
by the Inventory Collateral Agent after this Security has become enforceable must be applied in accordance with the terms of the Intercreditor Agreement. 
  

	 	SECTION 10.	Miscellaneous. 

 10.1 Amendments. Subject to the Intercreditor Agreement,
this Agreement may be modified or supplemented or waived only by an instrument or instruments in writing consented to and signed by each Grantor and the Inventory Collateral Agent. 

10.2 No Waiver; Remedies Cumulative. The rights of the Inventory Collateral Agent under this Agreement (a) may be exercised as
often as necessary; (b) are cumulative and not exclusive of its rights under law or in equity, and (c) may be waived only in writing and specifically. Delay in exercising or non-exercise of any right is not a waiver of that right. Any
waiver, consent or amendment shall be effective only in the specific instance and for the specific purpose for which it was given and shall not entitle any Grantor to any further or subsequent waiver, consent or amendment. 

10.3 No Third Party Beneficiaries. The agreement of the parties hereto are solely for the benefit of the Grantors, the Inventory
Collateral Agent, and the other First Lien Secured Parties and their respective successors and assigns, and no other Person will have any rights hereunder. 

  
 33 

 10.4 Successors and Assigns; Benefit of Agreement. 

(a) All of the terms of this Agreement will be binding upon and inure to the benefit of and be enforceable by the Parties and their respective
successors and permitted assigns, and will be binding upon and inure to the benefit of and be enforceable by any holder or holders at any time of the Obligations owed to a First Lien Secured Party, or any part thereof. 

(b) None of the Grantors may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the prior
written consent of the ABL Loan Collateral Agent (acting on the instructions of the Administrative Agent) and the Inventory Collateral Agent (acting on the instructions of the Inventory Party), and any purported assignment, delegation or other
transfer in violation of this provision will be void and of no effect. 
 (c) The Inventory Collateral Agent may assign or transfer its
rights under this Agreement in the manner permitted under the Intercreditor Agreement. 
 (d) Each Grantor waives and will not assert
against any assignee of the Inventory Collateral Agent any claims, defenses or set offs which such Grantor could assert against the prior Inventory Collateral Agent except for defenses which cannot be waived under applicable law. 

(e) The Inventory Collateral Agent and the other First Lien Secured Parties will hold in accordance with this Agreement (and to the extent
applicable, the Intercreditor Agreement) all items of the Collateral at any time received under this Agreement. It is expressly understood and agreed that the obligations of the Inventory Collateral Agent as holder of the Collateral and interests
therein and with respect to the disposition thereof, and otherwise under this Agreement, are only those expressly set forth in this Agreement, the Inventory Facility Documents and the Intercreditor Agreement. The Inventory Collateral Agent shall act
hereunder on the terms and conditions set forth herein, in the Inventory Facility Documents and in the Intercreditor Agreement. 
 10.5
Additional Grantor. Other than any Retail Business Subsidiary, any direct or indirect Subsidiary of the Lead Borrower that is created, acquired or otherwise comes into existence after the date of this Agreement will immediately upon becoming
a direct or indirect Subsidiary of the Lead Borrower become a Grantor for the purposes of this Agreement concurrently with becoming a borrower under the Credit Agreement and a party to the Framework Agreement by (a) executing and delivering to
the Inventory Collateral Agent a joinder agreement in the form of the Joinder Agreement (Joinder Agreement) attached hereto as Schedule 10 (Form of Joinder Agreement), and (b) delivering to the Inventory Collateral Agent evidence
that appropriate UCC financing statements and/or amendments thereto, in form and substance satisfactory to the First Lien Secured Parties have been filed. Accordingly, upon the execution and delivery of any such Joinder Agreement by any such Person,
such Person will automatically and immediately become a Grantor under and for all purposes of this Agreement. 
 10.6 Counterparts.
This Agreement may be executed in one or more counterparts, including by means of facsimile or other electronic transmission, each of which will be an original and all of which will together constitute one and the same document. Delivery of an
executed signature page to this Agreement by facsimile or other electronic transmission will be as effective as delivery of a manually signed counterpart of this Agreement. 

10.7 Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction will, as to such
jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or affecting the validity or enforceability of such provision in any
other jurisdiction. 

  
 34 

 10.8 Notices. All notices, requests, demands, consents, authorizations, directions,
waivers and other communications made pursuant to the provisions hereof will be in writing and will be delivered personally or mailed by first class registered or certified mail, postage prepaid or by overnight courier or facsimile at the address
specified in the Intercreditor Agreement or such other address as may be furnished in accordance with the Intercreditor Agreement. All notices, requests, demands, consents, authorizations, directions, waivers and other written communications will be
effective on receipt. 
 10.9 Choice of Law. This Agreement, the relationship between the Parties and any claim or dispute (whether
sounding in contract, tort, statute or otherwise) relating to this Agreement or that relationship will be governed by and construed in accordance with law of the State of New York including section 5-1401 of
the New York General Obligations Law but excluding any other conflict of law rules that would lead to the application of the law of another jurisdiction. 

10.10 Jurisdiction. Each Party irrevocably submits to the exclusive jurisdiction of any New York State or U.S. Federal court sitting in
the City and County of New York for the settlement of any dispute in connection with this Agreement. The New York courts are the most appropriate and convenient courts to settle any such dispute and each Party waives objection to those courts on the
grounds of inconvenient forum or otherwise in relation to proceedings in connection with this Agreement. To the extent allowed by law, the Inventory Collateral Agent or any other Secured Party may take (i) proceedings in any other court and
(ii) concurrent proceedings in any number of jurisdictions. 
 10.11 Waiver of Immunity. Each Grantor irrevocably and
unconditionally: 
 (a) agrees not to claim any immunity from proceedings brought by any First Lien Secured Party against such Grantor in
relation to this Agreement and to ensure that no such claim is made on its behalf; 
 (b) consents generally to the giving of any relief or
the issue of any process in connection with those proceedings; and 
 (c) waives all rights of immunity in respect of it or its assets. 

10.12 WAIVER OF TRIAL BY JURY. EACH PARTY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION IN CONNECTION
WITH ANY INVENTORY DOCUMENT OR ANY TRANSACTION CONTEMPLATED BY ANY INVENTORY DOCUMENT. THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO TRIAL BY THE COURT. 

10.13 Survival. The provisions of Section 3.2(a)(iii) (Filing of Financing Statements), Section 10.9 (Choice of
Law), Section 10.10 (Jurisdiction), 10.11 (Waiver of Immunity), 10.12 (Waiver of Trial by Jury) and this Section 10.13 (Survival) will survive execution and delivery of this Agreement, the transactions
contemplated in the ABL Loan Documents and the Inventory Documents, and the termination of this Agreement. 
 10.14 Complete
Agreement. This Agreement contains the complete agreement between the Parties on the matters to which it relates and supersedes all prior commitments, agreements and understandings, whether written or oral, on those matters. 

*                    *   
                 * 

  
 35 

 IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and
deliver this Agreement on the date stated at the beginning of this Agreement. 
  

					
	TESORO HAWAII, LLC,
	a Hawaii limited liability company, as Grantor
		
	By:	 	 /s/ Geoffrey Beal

		 	Name:	 	Geoffrey Beal
		 	Title:	 	Vice President and Treasurer

 [Signature Page to Inventory First Lien Security Agreement] 

 
					
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Inventory Collateral Agent

		
	By:	 	 /s/ Julius Zamora

		 	Name:	 	Julius Zamora
		 	Title:	 	Vice President

 [Signature Page to Inventory First Lien Security Agreement]EX-10.5

 Exhibit 10.5 
  

			
	 	  	
	 	  	
	 	  	
	 	  	
	 	  	
	 	  	
	 	  	
	 	  	
	 	  	
	 	  	
	 	  	
	 	  	
	 	  	
	LAND COURT	  	REGULAR SYSTEM
	Return By Mail  x  Pick-Up   ̈  To:
		
	 Allen & Overy LLP

1221 Avenue of the Americas

New York, New York 10020
  

Attention:            Derek Poon, Esq.

Telephone:           212.610.6300

 
	  	 

 TITLE OF DOCUMENT: 

FEE FIRST MORTGAGE AND 

FIXTURE FILING 
  

			
	PARTIES TO DOCUMENT:
		
	MORTGAGOR:	  	TESORO HAWAII, LLC, a Hawaii limited liability company
		
	MORTGAGEE:	  	 WELLS FARGO BANK, NATIONAL ASSOCIATION, a national

banking association, as collateral agent for and on behalf of the Inventory

Party
 150 East 42nd Street, 40th Floor

New York, New York 10017
  

 Tax Map Key: Oahu 9-1-031-003; 9-1-032-084, 099             (This
document consists of      pages.) 
        Certificate of Title No. 776,063;
327,773; 307,865 

 FEE FIRST MORTGAGE AND FIXTURE FILING 

THIS FEE FIRST MORTGAGE AND FIXTURE FILING (this “Mortgage”) is made as of this 25th day of September, 2013, by
TESORO HAWAII, LLC, a Hawaii limited liability company, having its principal place of business at 800 Gessner Road, Suite 875, Houston, TX 77024 (“Tesoro Hawaii”; also referred to herein as “Mortgagor”), for
the benefit of WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as collateral agent for and on behalf of the Inventory Party (“Mortgagee”), having its principal place of business at 150 East 42nd
Street, 40th Floor, New York, New York 10017. 
 W I T N E S S E T
H: 
 WHEREAS, Tesoro Hawaii and Barclays Bank PLC are entering into the Inventory Documents, pursuant to which they will
enter into Inventory transactions and transactions related to the Inventory and the Inventory Documents; 
 WHEREAS, Deutsche Bank AG
New York Branch, Hawaii Pacific Energy, LLC and the other Borrowers referred to the Credit Agreement dated as of September 25, 2013, and the Lenders referred to therein are parties thereto; 

WHEREAS, Mortgagor, the other Grantors, the First Lien Secured Parties and the Mortgagee, among others, have entered into the
Intercreditor Agreement dated on or about the date hereof (the “Intercreditor Agreement”) to, among other things, define the rights, duties, authority and responsibilities of the Mortgagee and the priority of payments and security
between the Loan Parties and the Inventory Party; 
 WHEREAS, Mortgagor is entering into this Mortgage for purposes of establishing a
first-priority Lien over the collateral described herein in favor of the Mortgagee for and on behalf of the First Lien Secured Parties to secure the First Lien Obligations; 

WHEREAS, it is a condition precedent to the Inventory Party performing its obligations under the Inventory Documents that Mortgagor
enters into this Mortgage; and 
 WHEREAS, Mortgagor desires to secure the Inventory Obligations of Mortgagor to Mortgagee under the
First Lien Documents; 
 NOW, THEREFORE, in consideration of the covenants, agreements, representations and warranties set forth in
this Mortgage: 
 ARTICLE 1 - GRANTS OF SECURITY 

Section 1.1 Property Mortgaged. Mortgagor does hereby irrevocably mortgage, grant, bargain, sell, pledge, assign,
warrant, transfer and convey to Mortgagee, and its successors and assigns, all of Mortgagor’s right, title and interest in and to the following property, rights, interests and estates now owned, or hereafter acquired by Mortgagor, to the extent
assignable or transferable under applicable law (collectively, the “Property”): 
 (a) Land. The real property
described in Exhibit A-1 attached hereto and made a part hereof (the “Land”); 

 (b) Additional Land. All additional lands, estates and development rights hereafter
acquired by Mortgagor for use in connection with the Land and the development of the Land and all additional lands and estates therein which may, from time to time, by supplemental mortgage or otherwise be expressly made subject to the lien of this
Mortgage; 
 (c) Improvements. The buildings, structures, fixtures, additions, enlargements, extensions, modifications, repairs,
replacements and improvements now or hereafter erected or located on the Land (collectively, the “Improvements”); 
 (d)
Easements. All easements, rights-of-way or use, rights, strips and gores of land, streets, ways, alleys, passages, sewer rights, water, water courses, water rights and powers, air rights and development rights, and all estates, rights,
titles, interests, privileges, liberties, servitudes, tenements, hereditaments and appurtenances of any nature whatsoever, in any way now or hereafter belonging, relating or pertaining to the Land and the Improvements and the reversions and
remainders, and all land lying in the bed of any street, road or avenue, opened or proposed, in front of or adjoining the Land, to the center line thereof and all the estates, rights, titles, interests, rights of dower, rights of curtesy, property,
possession, claim and demand whatsoever, both at law and in equity, of Mortgagor of, in and to the Land and the Improvements and every part and parcel thereof, with the appurtenances thereto; 

(e) Fixtures. All “fixtures,” as such term is defined in Article 9 of the Uniform Commercial Code (as hereinafter defined),
now owned or hereafter acquired by Mortgagor, which is used at or in connection with the Improvements or the Land or is located thereon or therein (including, but not limited to, all machinery, equipment, furnishings, and electronic data-processing
and other office equipment now owned or hereafter acquired by Mortgagor and any and all additions, substitutions and replacements of any of the foregoing), together with all attachments, components, parts, equipment and accessories installed thereon
or affixed thereto, that is now owned, or the ownership of which is hereafter acquired, by Mortgagor which is so related to the Land and Improvements forming part of the Property that it is deemed fixtures or real property under the law of the
particular state in which the Equipment is located, including, without limitation, all building or construction materials intended for construction, reconstruction, alteration or repair of or installation on the Property, construction equipment,
appliances, machinery, plant equipment, fittings, apparatuses, fixtures and other items now or hereafter attached to, installed in or used in connection with (temporarily or permanently) any of the Improvements or the Land, including, but not
limited to, engines, devices for the operation of pumps, pipes, plumbing, call and sprinkler systems, fire extinguishing apparatuses and equipment, heating, ventilating, incinerating, electrical, air conditioning and air cooling equipment and
systems, gas and electric machinery, appurtenances and equipment, pollution control equipment, security systems, disposals, dishwashers, refrigerators and ranges, recreational equipment and facilities of all kinds, and water, gas, electrical, storm
and sanitary sewer facilities, utility lines and equipment (whether owned individually or jointly with others, and, if owned jointly, to the extent of Mortgagor’s interest therein) and all other utilities whether or not situated in easements,
all water tanks, water supply, water power sites, fuel stations, fuel tanks, fuel supply, and all other structures, together with all 

  
 2. 

 
accessions, appurtenances, additions, replacements, betterments and substitutions for any of the foregoing and the proceeds thereof (collectively, the “Fixtures”). The Fixtures
include, without limitation, any fixtures relating to, comprising part of or used in the System and specifically those fixtures listed in Exhibit A-2, attached to and made a part hereof. Notwithstanding
the foregoing, “Fixtures” shall not include any property which tenants are entitled to remove pursuant to leases except to the extent that Mortgagor shall have any right or interest therein; 

(f) After-Acquired Interests. All interests or estate which Mortgagor may hereafter acquire in the Property and all additions and
accretions thereto; and 
 (g) Products and Proceeds. All products and proceeds of any of the foregoing. 

(h) Other Rights. Any and all other rights of Mortgagor in and to the items set forth in Subsections (a) through
(h) above. 
 AND without limiting any of the other provisions of this Mortgage, to the extent permitted by applicable law,
Mortgagor expressly grants to Mortgagee, as secured party, a security interest in the portion of the Property which is or may be subject to the provisions of the Uniform Commercial Code, as adopted and enacted by the state or states where any of the
Property is located (as amended, the “Uniform Commercial Code”), which are applicable to secured transactions; it being understood and agreed that the Improvements and Fixtures are part and parcel of the Land (the Land, the
Improvements and the Fixtures collectively referred to as the “Real Property”) appropriated to the use thereof and, whether affixed or annexed to the Real Property or not, shall for the purposes of this Mortgage be deemed
conclusively to be real estate and mortgaged hereby. 
 Section 1.2 Fixture Filing. Certain of the Property is or will
become “fixtures” (as that term is defined in the Uniform Commercial Code) on the Land, and this Mortgage, upon being filed for record in the real estate records of the city or county wherein such fixtures are situated, shall operate also
as a financing statement filed as a fixture filing in accordance with the applicable provisions of said Uniform Commercial Code upon such of the Property that is or may become fixtures. 

CONDITIONS TO GRANT 

TO HAVE AND TO HOLD the above granted and described Property unto and to the use and benefit of Mortgagee and its successors and
assigns, forever; 
 PROVIDED, HOWEVER, these presents are upon the express condition that, if Mortgagor shall perform the First Lien
Obligations as set forth in this Mortgage and shall abide by and comply with each and every covenant and condition set forth herein, the other First Lien Documents, these presents and the estate hereby granted shall cease, terminate and be void;
provided, however, that Mortgagor’s obligation to indemnify, defend, and hold harmless Mortgagee pursuant to the provisions hereof shall survive any such payment, performance, or release except as set forth in the last sentence of
Section 11.5; provided, further, that if Mortgagor shall perform the First Lien Obligations and pay the cost of release hereof, Mortgagee shall promptly and properly execute and deliver such release to Mortgagor. 

  
 3. 

 ARTICLE 2 - OBLIGATIONS SECURED 

Section 2.1 Obligations Secured. This Mortgage and the grants, assignments and transfers made in Article 1 are given
for the purpose of securing the Inventory Obligations and any other obligations owed to Mortgagee in connection with the Inventory Obligations (collectively, the “First Lien Obligations”) under the First Lien Documents
(“First Lien Documents” means the Inventory Documents, the Intercreditor Agreement, and this Mortgage.) 

Section 2.2 First Lien Obligations. With respect to the Property the obligations secured by this Mortgage shall include all
amounts payable under the First Lien Documents including, without limitation, the payment of the maximum amount of ONE HUNDRED FIFTY MILLION AND NO/100 DOLLARS ($150,000,000.00) (the “Payment Amount”). 

Section 2.3 Obligations. The term “obligations” is used herein in its broadest and most comprehensive sense and
shall be deemed to include, without limitation, all interest and charges, prepayment charges (if any) late charges and fees at any time accruing or assessed on any of the First Lien Obligations. 

Section 2.4 Incorporation. All terms of the First Lien Obligations and the documents evidencing such obligations are
incorporated herein by this reference. All persons who may have or acquire an interest in the Property shall be deemed to have notice of the terms of the First Lien Obligations. 

ARTICLE 3 - MORTGAGOR COVENANTS 

Mortgagor covenants and agrees that: 

Section 3.1 Performance of First Lien Obligations. Mortgagor will perform all First Lien Obligations at the time and in the
manner provided in the First Lien Documents, including, without limitation, the payment of the Payment Amount at the time and in the manner provided in the First Lien Documents. 

Section 3.2 Incorporation by Reference. All the covenants, conditions and agreements contained in all and any of
the other First Lien Documents and the Intercreditor Agreement are hereby made a part of this Mortgage to the same extent and with the same force as if fully set forth herein. 

Section 3.3 Insurance. Mortgagor shall obtain and maintain, or cause to be maintained, in full force and effect at all
times insurance with respect to Mortgagor and the Property as required pursuant to the First Lien Documents. 
 Section 3.4
Maintenance of Property. Mortgagor shall cause the Property to be maintained in a good and safe condition and repair in all material respects, normal wear and tear excepted. Except as otherwise provided in the First Lien
Documents, the Improvements and the Fixtures shall not be removed, demolished or materially altered (except for normal replacement of the Fixtures, tenant finish and refurbishment of the Improvements) without the consent of Mortgagee. Subject to and
in accordance with the terms and conditions of the First Lien Documents, Mortgagor shall promptly repair, replace or rebuild, if applicable, any part of the Property which may be destroyed by any casualty or become damaged, worn or dilapidated or
which may be affected by any condemnation. 

  
 4. 

 Section 3.5 Waste. Mortgagor shall not commit or suffer any material waste of
the Property or make any change in the use of the Property which reasonably might be expected to materially increase the risk of fire or other hazard arising out of the operation of the Property, or take any action that reasonably might be expected
to invalidate or allow the cancellation of any Policy, or do or permit to be done thereon anything that reasonably might be expected to in any way materially impair the value of the security of this Mortgage. Except as required by the laws of the
State of Hawaii, Mortgagor will not, without the prior written consent of Mortgagee, permit any drilling or exploration for or extraction, removal, or production of any minerals from the surface or the subsurface of the Land, regardless of the depth
thereof or the method of mining or extraction thereof. 
 Section 3.6
Payment for Labor and Materials.  
 (a) Except as permitted below, Mortgagor will promptly pay when
due all bills and costs for labor, materials, and specifically fabricated materials (“Labor and Material Costs”) incurred in connection with the Property and, except as otherwise provided in the Second Mortgage, never permit to
exist beyond the due date thereof in respect of the Property or any part thereof any lien or security interest, even though inferior to the liens and the security interests hereof, and, except as otherwise provided in the Second Mortgage, never
permit to be created or exist in respect of the Property or any part thereof any other or additional lien or security interest other than the liens or security interests hereof. 

(b) After prior written notice to Mortgagee, Mortgagor, at its own expense, may contest by appropriate legal proceeding, promptly initiated
and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any of the Labor and Material Costs, provided that (i) no Trigger Event has occurred and is continuing, (ii) Mortgagor is
permitted to do so under the provisions of any other mortgage, deed of trust or deed to secure debt affecting the Property, (iii) such proceeding shall suspend the collection of the Labor and Material Costs from Mortgagor and from the Property
or Mortgagor shall have paid all of the Labor and Material Costs under protest or posted the bond or cash security in the full amount of the Labor and Material Costs in accordance with applicable law, (iv) such proceeding shall be permitted
under and be conducted in accordance with the provisions of any other instrument to which Mortgagor is subject and shall not constitute a default thereunder, (v) neither the Property nor any part thereof or interest therein will be in danger of
being sold, forfeited, terminated, canceled or lost, and (vi) Mortgagor shall have furnished the security as may be required in the proceeding, or as may be reasonably requested by Mortgagee to insure the payment of any contested Labor and
Material Costs, together with all interest and penalties thereon. 
 Section 3.7
Performance of Other Agreements. Mortgagor shall observe and perform each and every term, covenant and provision to be observed or performed by Mortgagor pursuant to any First Lien Document and any other agreement or
recorded instrument affecting or pertaining to the Property and any amendments, modifications or changes thereto. 

  
 5. 

 Section 3.8 Title. Mortgagor has good, marketable and insurable fee simple
title to the Property and has good title to the balance of such Property, free and clear of all liens whatsoever except the liens created by the First Lien Documents or noted in the Bureau of Conveyances of the State of Hawaii and/or the Office of
the Assistant Registrar of the State of Hawaii as of the date hereof and reflected in Mortgagee’s title insurance policy. Except as otherwise disclosed in the title insurance policies, there are no claims for payment for work, labor or
materials affecting the Property, which are past due and are or, to the best of Mortgagor’s knowledge, may become a lien prior to, or of equal priority with, the liens created by the First Lien Documents unless such claims for payments are
being contested in accordance with the terms and conditions of this Mortgage. 
 Section 3.9 Partial Release.
Mortgagee reserves the right, at any time, to release portions of the Property in accordance with the Intercreditor Agreement, with or without consideration, at Mortgagee’s election, without waiving or affecting any of its rights hereunder or
under the First Lien Documents and any such release shall not affect Mortgagee’s rights in connection with the portion of the Property not so released. 

Section 3.10 Title Insurance. Mortgagor agrees, at its sole cost and expense, including without limitation Mortgagee’s
reasonable attorneys’ fees, to (a) execute any and all documents or instruments necessary to subject its fee title to the Property to the lien of this Mortgage; and (b) provide a title insurance policy which shall insure that the lien
of the Mortgage is a first lien on Mortgagor’s fee title to the Property. 
 ARTICLE 4 - OBLIGATIONS AND RELIANCES 

Section 4.1 Relationship of Mortgagor and Mortgagee. The relationship between Mortgagor and Mortgagee
is solely that of obligor and obligee, and Mortgagee has no fiduciary or other special relationship with Mortgagor, and no term or condition of any of the First Lien Documents shall be construed so as to deem the relationship between Mortgagor and
Mortgagee to be other than that of obligor and obligee. 
 Section 4.2 No Mortgagee Obligations.
Mortgagee is not undertaking the performance of any obligations with respect to any agreements, contracts, certificates, instruments, franchises, permits, trademarks, licenses and other documents. 

ARTICLE 5 - INTERCREDITOR AGREEMENT 

Section 5.1 Intercreditor Agreement. Notwithstanding anything in this Mortgage to the contrary, the mortgage lien granted
to Mortgagee pursuant to this Mortgage with respect to the Property shall be first in priority to the mortgage lien granted to the Second Lien Agent on behalf of the Second Lien Secured Parties. The exercise of any right or remedy by Mortgagee or
any other First Lien Secured Party hereunder is subject to the provisions of the Intercreditor Agreement. In the event of any conflict or inconsistency between the terms of the Intercreditor Agreement and this Mortgage, the terms of the
Intercreditor Agreement shall govern and control. For the avoidance of doubt, the absence of any specific reference to Section 5.1 in any other provision of this Mortgage shall not be deemed to limit the generality of this Section
5.1. 

  
 6. 

 ARTICLE 6 - FURTHER ASSURANCES 

Section 6.1 Recording of Mortgage, etc. Mortgagor forthwith upon the execution and delivery of this Mortgage
and thereafter, from time to time, will cause the First Lien Documents creating a lien or security interest or evidencing the lien hereof upon the Property and each instrument of further assurance to be filed, registered or recorded in such manner
and in such places as may be required by any present or future law in order to publish notice of and fully to protect and perfect the first lien or security interest hereof upon, and the interest of Mortgagee in, the Property. Mortgagor will pay all
taxes, filing, registration or recording fees, and all expenses incident to the preparation, execution, acknowledgment and/or recording of the First Lien Documents, any note, deed of trust or mortgage supplemental hereto, any mortgage with respect
to the Property and any instrument of further assurance, and any modification or amendment of the foregoing documents, and all federal, state, county and municipal taxes, duties, imposts, assessments and charges arising out of or in connection with
the execution and delivery of this Mortgage, any deed of trust or mortgage supplemental hereto, any mortgage with respect to the Property or any instrument of further assurance, and any modification or amendment of the foregoing documents, except
where prohibited by law so to do. 
 Section 6.2 Further Acts, etc. Subject to the provisions of the
Intercreditor Agreement, Mortgagor will, at the cost of Mortgagor, and without expense to Mortgagee, do, execute, acknowledge and deliver all and every further acts, deeds, conveyances, deeds of trust, mortgages, assignments, notices of assignments,
transfers and assurances as Mortgagee shall, from time to time, reasonably require, for the better assuring, conveying, assigning, transferring, and confirming unto Mortgagee the property and rights hereby mortgaged, deeded, granted, bargained,
sold, conveyed, confirmed, pledged, assigned, warranted and transferred or intended now or hereafter so to be, or which Mortgagor may be or may hereafter become bound to convey or assign to Mortgagee, or for carrying out the intention or
facilitating the performance of the terms of this Mortgage or for filing, registering or recording this Mortgage, or for complying with all legal requirements. Mortgagor hereby authorizes Mortgagee to file one or more financing statements to
evidence more effectively the first-priority security interest of Mortgagee in the Property. Mortgagor grants to Mortgagee an irrevocable power of attorney coupled with an interest for the purpose of exercising and perfecting any and all rights and
remedies available to Mortgagee at law and in equity, including without limitation, such rights and remedies available to Mortgagee pursuant to this Section 6.2.  

Section 6.3 Changes in Tax, Debt, Credit and Documentary Stamp Laws. 

(a) If any law is enacted or adopted or amended after the date of this Mortgage which deducts all or any portion of the Payment Amount from
the value of the Property for the purpose of taxation or which imposes a tax, either directly or indirectly, on the Payment Amount or Mortgagee’s interest in the Property, Mortgagor will pay the tax, with interest and penalties thereon, if any
(provided that nothing hereunder shall require Mortgagor to pay any income tax imposed on Mortgagee by reason of its interest in the Property). If Mortgagee is advised in writing by counsel chosen by it that the payment of tax by Mortgagor would be
unlawful or taxable to Mortgagee or unenforceable or provide the basis for a defense of usury then, subject to the Intercreditor Agreement, Mortgagee shall have the option, by written notice of not less than one hundred eighty (180) days (but
not more than two hundred forty (240) days) after providing Mortgagor with a copy of such written advice of counsel, to declare the Payment Amount immediately due and payable. 

  
 7. 

 (b) Mortgagor will not claim or demand or be entitled to any credit or credits on account of the
Payment Amount for any taxes or other charges assessed against the Property, or any part thereof, and no deduction shall otherwise be made or claimed from the assessed value of the Property, or any part thereof, for real estate tax purposes by
reason of this Mortgage or the Payment Amount. If such claim, credit or deduction shall be required by law, Mortgagee shall have the option, by written notice of not less than one hundred eighty (180) days, to declare the Payment Amount
immediately due and payable. 
 (c) If at any time the United States of America, any State thereof or any subdivision of any such State
shall require revenue or other stamps to be affixed to the First Lien Documents or impose any other tax or charge on the same, Mortgagor will pay for the same, with interest and penalties thereon, if any. 

Section 6.4 Severing of Mortgage. This Mortgage may, at any time until the same shall be fully paid and
satisfied, at the sole election of Mortgagee, be severed into two or more mortgages in such denominations as Mortgagee shall determine in its sole discretion, each of which shall cover all or a portion of the Property to be more particularly
described therein. To that end, Mortgagor, upon written request of Mortgagee, shall execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered by the then owner of the Property, to Mortgagee and/or its designee or
designees substitute notes and mortgages in such principal amounts, aggregating not more than the then unpaid principal amount of this Mortgage, and containing terms, provisions and clauses similar to those contained herein and in such other
documents and instruments as may be required by Mortgagee. 
 Section 6.5 Replacement Documents. Upon receipt
of an affidavit of an officer of Mortgagee as to the loss, theft, destruction or mutilation of any First Lien Document which is not of public record, and, in the case of any such mutilation, upon surrender and cancellation of such First Lien
Document, Mortgagor will issue, in lieu thereof, a replacement First Lien Document, dated the date of such lost, stolen, destroyed or mutilated First Lien Document in the same principal amount thereof and otherwise of like tenor.  

ARTICLE 7 - DUE ON SALE/ENCUMBRANCE 

Section 7.1 Mortgagee Reliance. Mortgagor acknowledges that Mortgagee has examined and relied on the experience of
Mortgagor and its respective general partners, members, principals and (if Mortgagor is a trust) beneficial owners in owning and operating properties such as the Property in agreeing to enter into the transactions, and will continue to rely on
Mortgagor’s ownership of the Property as a means of maintaining the value of the Property as security for the performance of the First Lien Obligations. Mortgagor acknowledges that Mortgagee has a valid interest in maintaining the value of the
Property so as to ensure that, should Mortgagor default in the performance of the First Lien Obligations, Mortgagee can recover on the First Lien Obligations by a sale of the Property. 

Section 7.2 No Sale/Encumbrance. Mortgagor shall not transfer the Property or any part thereof or any interest therein or
permit or suffer the Property or any part thereof or any interest therein to be transferred, except as expressly permitted under the Framework Agreement and the Credit Agreement, which consent may be withheld in Mortgagee’s sole and absolute
discretion. Any purported transfer in violation of this provision will be void and of no effect. 

  
 8. 

 ARTICLE 8 - RIGHTS AND REMEDIES 

Section 8.1 When Mortgage Becomes Enforceable. Subject to Section 3 of the Intercreditor Agreement, this Mortgage may be
enforced by Mortgagee at any time after a Trigger Event has occurred and is continuing. 
 Section 8.2 Remedies.
Upon the occurrence and during the continuance of any Trigger Event, Mortgagor agrees that Mortgagee may take such action, without notice or demand, as it deems advisable to protect and enforce its rights against Mortgagor and in and to the
Property, including, but not limited to, the following actions, each of which may be pursued concurrently or otherwise, at such time and in such order as Mortgagee may determine, in its sole discretion, without impairing or otherwise affecting the
other rights and remedies of Mortgagee: 
 (a) declare the entire unpaid Payment Amount to be immediately due and payable; 

(b) institute proceedings, judicial or otherwise, for the complete foreclosure of this Mortgage under any applicable provision of law, in
which case the Property or any interest therein may be sold for cash or upon credit in one or more parcels or in several interests or portions and in any order or manner; 

(c) with or without entry, to the extent permitted and pursuant to the procedures provided by applicable law, institute proceedings for the
partial foreclosure of this Mortgage for the portion of the Payment Amount then due and payable, subject to the continuing lien and security interest of this Mortgage for the balance of the Payment Amount not then due, unimpaired and without loss of
priority; 
 (d) sell for cash or upon credit the Property or any part thereof and all estate, claim, demand, right, title and interest of
Mortgagor therein and rights of redemption thereof, pursuant to power of sale or otherwise, at one or more sales, as an entirety or in parcels, at such time and place, upon such terms and after such notice thereof as may be required or permitted by
law; 
 (e) institute an action, suit or proceeding in equity for the specific performance of any covenant, condition or agreement contained
herein, in the First Lien Documents; 
 (f) recover judgment on the First Lien Documents either before, during or after any proceedings for
the enforcement of this Mortgage or the other First Lien Documents; 
 (g) apply for the appointment of a receiver, trustee, liquidator or
conservator of the Property, without notice and without regard for the adequacy of the security for the First Lien Obligations and without regard for the solvency of Mortgagor, any guarantor, or of any Person liable for the performance of the First
Lien Obligations; 

  
 9. 

 (h) enter into or upon the Property, either personally or by its agents, nominees or attorneys
and dispossess Mortgagor and its agents and servants therefrom, without liability for trespass, damages or otherwise and exclude Mortgagor and its agents or servants wholly therefrom, and take possession of all books and records relating thereto and
Mortgagor agrees to surrender possession of the Property and of such books and records to Mortgagee upon demand, and thereupon Mortgagee may (i) use, operate, manage, control, insure, maintain, repair, restore and otherwise deal with all and
every part of the Property and conduct the business thereat; (ii) complete any construction on the Property in such manner and form as Mortgagee deems advisable; (iii) make alterations, additions, renewals, replacements and improvements to
or on the Property; (iv) exercise all rights and powers of Mortgagor with respect to the Property, whether in the name of Mortgagor or otherwise, including, without limitation, the right to make, cancel, enforce or modify leases, obtain and
evict tenants, and demand, sue for, collect and receive all rents of the Property and every part thereof; (v) require Mortgagor to pay monthly in advance to Mortgagee, or any receiver appointed to collect any rents, the fair and reasonable
rental value for the use and occupation of such part of the Property as may be occupied by Mortgagor; (vi) require Mortgagor to vacate and surrender possession of the Property to Mortgagee or to such receiver and, in default thereof, Mortgagor
may be evicted by summary proceedings or otherwise; and (vii) apply the receipts from the Property to the payment of the First Lien Obligations, in such order, priority and proportions as provided under Section 4 of the Intercreditor
Agreement; 
 (i) exercise any and all rights and remedies granted to a secured party upon default under the Uniform Commercial Code,
including, without limiting the generality of the foregoing: (i) the right to take possession of the Fixtures or any part thereof, and to take such other measures as Mortgagee may deem necessary for the care, protection and preservation of the
Fixtures, and (ii) request Mortgagor at its expense to assemble the Fixtures and make it available to Mortgagee at a convenient place acceptable to Mortgagee. Any notice of sale, disposition or other intended action by Mortgagee with respect to
the Fixtures sent to Mortgagor in accordance with the provisions hereof at least ten (10) days prior to such action, shall constitute commercially reasonable notice to Mortgagor; 

(j) apply any sums then deposited or held in escrow or otherwise by or on behalf of Mortgagee in accordance with Section 4 of the
Intercreditor Agreement; or 
 (k) pursue such other remedies as Mortgagee may have under applicable law and as provided under the
Intercreditor Agreement. 
 In the event of a sale, by foreclosure, power of sale or otherwise, of less than all of the Property, this Mortgage shall
continue as a lien and security interest on the remaining portion of the Property. 
 Section 8.3
Application of Proceeds. The purchase money, proceeds and avails of any disposition of the Property, and/or any part thereof, or any other sums collected by Mortgagee pursuant to the First Lien Documents, may be applied by
Mortgagee in accordance with Section 4 of the Intercreditor Agreement. 

  
 10. 

 Section 8.4 Right to Cure. Upon the occurrence and during the
continuance of any Trigger Event, and in accordance with the Intercreditor Agreement, Mortgagee may, but without any obligation to do so and without notice to or demand on Mortgagor and without releasing Mortgagor from any obligation hereunder, make
any payment or do any act required of Mortgagor hereunder in such manner and to such extent as Mortgagee may deem reasonably necessary to protect the security hereof. Mortgagee is authorized to enter upon the Property for such purposes, or appear
in, defend, or bring any action or proceeding to protect its interest in the Property or to foreclose this Mortgage or collect the Payment Amount, and the cost and expense thereof (including reasonable attorneys’ fees to the extent permitted by
law), with interest as provided in this Section 8.4, shall constitute a portion of the Payment Amount and shall be due and payable to Mortgagee upon demand. All such costs and expenses incurred by Mortgagee in remedying such Trigger
Event or such failed payment or act or in appearing in, defending, or bringing any such action or proceeding shall bear interest at the “Default Rate” as defined in the ISDA Master Agreement as defined in the Framework Agreement.

 Section 8.5 Actions and Proceedings. Only upon the occurrence and during the continuance of a Trigger
Event, Mortgagee has the right to appear in and defend any action or proceeding brought with respect to the Property and to bring any action or proceeding, in the name and on behalf of Mortgagor, which Mortgagee, in its discretion, decides should be
brought to protect its interest in the Property. 
 Section 8.6
Recovery of Sums Required to Be Paid. Mortgagee shall have the right from time to time to take action to recover any sum or sums which constitute a part of the Payment Amount, without regard to whether or not
the balance of the Payment Amount shall be due, and without prejudice to the right of Mortgagee thereafter to bring an action of foreclosure, or any other action, for a default or defaults by Mortgagor existing at the time such earlier action was
commenced. 
 Section 8.7 Examination of Books and Records. Subject to the terms and conditions of the
Framework Agreement, Mortgagee, its agents, accountants and attorneys shall have the right to examine the records, books, management and other papers of Mortgagor which reflect upon its financial condition, at the Property or at any office regularly
maintained by Mortgagor where the books and records are located. Mortgagee and its agents shall have the right to make copies and extracts from the foregoing records and other papers. In addition, at reasonable times and upon reasonable notice,
Mortgagee, its agents, accountants and attorneys shall have the right to examine and audit the books and records of Mortgagor pertaining to the income, expenses and operation of the Property during reasonable business hours at any office of
Mortgagor where the books and records are located. This Section 8.7 shall apply as long as any portion of the First Lien Obligations is outstanding and without regard to whether a Trigger Event has occurred or is continuing. 

  
 11. 

 Section 8.8 Other Rights, etc. 

(a) The failure of Mortgagee to insist upon strict performance of any term hereof shall not be deemed to be a waiver of any term of this
Mortgage. Mortgagor shall not be relieved of Mortgagor’s obligations hereunder by reason of (i) the failure of Mortgagee to comply with any request of Mortgagor or any guarantor or indemnitor with respect to the First Lien Obligations to
take any action to foreclose this Mortgage or otherwise enforce any of the provisions hereof or of the other First Lien Documents, (ii) the release, regardless of consideration, of the whole or any part of the Property, or of any person liable
for any portion thereof or the First Lien Obligations or any portion thereof, or (iii) any agreement or stipulation by Mortgagee extending the time of payment or otherwise modifying or supplementing the terms of the First Lien Documents. 

(b) It is agreed that the risk of loss or damage to the Property is on Mortgagor, and Mortgagee shall have no liability whatsoever for decline
in value of the Property, for failure to maintain the title insurance policies, or for failure to determine whether insurance in force is adequate as to the amount of risks insured. Possession by Mortgagee shall not be deemed an election of judicial
relief if any such possession is requested or obtained with respect to any Property or collateral not in Mortgagee’s possession. 
 (c)
Mortgagee may resort for the payment of the Payment Amount to any other security held by Mortgagee in such order and manner as Mortgagee, in its discretion, may elect. Mortgagee may take action to recover the Payment Amount, or any portion thereof,
or to enforce any covenant hereof without prejudice to the right of Mortgagee thereafter to foreclose this Mortgage. The rights of Mortgagee under this Mortgage shall be separate, distinct and cumulative and none shall be given effect to the
exclusion of the others. No act of Mortgagee shall be construed as an election to proceed under any one provision herein to the exclusion of any other provision. Mortgagee shall not be limited exclusively to the rights and remedies herein stated but
shall be entitled to every right and remedy now or hereafter afforded at law or in equity. 
 Section 8.9
Right to Release Any Portion of the Property. Subject to the terms of the Intercreditor Agreement, Mortgagee may release any portion of the Property for such consideration as Mortgagee may require
without, as to the remainder of the Property, in any way impairing or affecting the lien or priority of this Mortgage, or improving the position of any subordinate lienholder with respect thereto, except to the extent that the obligations hereunder
shall have been reduced by the actual monetary consideration, if any, received by Mortgagee for such release, and may accept by assignment, pledge or otherwise any other property in place thereof as Mortgagee may require without being accountable
for so doing to any other lienholder. This Mortgage shall continue as a lien and security interest in the remaining portion of the Property. 

Section 8.10 Recourse and Choice of Remedies. Notwithstanding any other provision of the First Lien
Documents, and subject to Section 3 of the Intercreditor Agreement, Mortgagee and the other Indemnified Parties (as hereinafter defined) are entitled to enforce the obligations of Mortgagor contained in Sections 10.2 and 10.3
herein without first resorting to or exhausting any security or collateral and without first having recourse to any of the Property, through  

  
 12. 

 
foreclosure or acceptance of a deed in lieu of foreclosure or otherwise, and in the event Mortgagee commences a foreclosure action against the Property, Mortgagee is entitled to pursue a
deficiency judgment with respect to such obligations against Mortgagor with respect to the First Lien Obligations. Nothing herein shall inhibit or prevent Mortgagee from foreclosing or exercising any other rights and remedies pursuant to the First
Lien Documents, whether simultaneously with foreclosure proceedings or in any other sequence. A separate action or actions may be brought and prosecuted against a Person pursuant to Sections 10.2 and 10.3 herein whether or not action
is brought against any other Person or whether or not any other Person is joined in the action or actions. In addition, Mortgagee shall have the right but not the obligation to join and participate in, as a party if it so elects, any administrative
or judicial proceedings or actions initiated in connection with any matter addressed in Article 10 herein. 
 Section 8.11
Right of Entry. Subject to the terms and conditions of the Framework Agreement, upon reasonable notice to Mortgagor and compliance with all reasonable safety and security protocols of Mortgagor, Mortgagee and its agents shall
have the right to enter and inspect the Property at all reasonable times, provided that there is no material disruption of Mortgagor’s operations at the Property unless a Trigger Event has occurred and is continuing. 

ARTICLE 9 - ENVIRONMENTAL HAZARDS 

Section 9.1 Environmental Representations, Warranties and Covenants; Mortgagee’s Rights; Environmental
Indemnification. Mortgagor has concurrently herewith delivered to Mortgagee that certain Framework Agreement in connection with the transactions, the terms and provisions of which that are contained in Section 15 are hereby fully
incorporated herein by reference. 
 ARTICLE 10 - INDEMNIFICATION 

Section 10.1 General Indemnification. Mortgagor shall, at its sole cost and expense, protect, defend, indemnify,
release and hold harmless the Indemnified Parties from and against any and all claims, suits, liabilities (including, without limitation, strict liabilities), actions, proceedings, obligations, debts, damages, losses, costs, expenses, diminutions in
value, fines, penalties, charges, fees, expenses, judgments, awards, amounts paid in settlement, punitive damages, foreseeable and unforeseeable consequential damages, of whatever kind or nature (including but not limited to reasonable
attorneys’ fees and other costs of defense) (collectively, the “Losses”) imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly arising out of or in any way relating to any one or
more of the following: (a) ownership of this Mortgage, the Property or any interest therein or receipt of any rents; (b) any amendment to, or restructuring of, any First Lien Obligation, or any First Lien Document, each to the extent
required by Mortgagee; (c) any and all lawful action that may be taken by Mortgagee in connection with the enforcement of the provisions of the First Lien Documents, each to the extent required by Mortgagor, whether or not suit is filed in
connection with same, or in connection with Mortgagor, any guarantor or indemnitor and/or any partner, joint venturer or shareholder thereof becoming a party to a voluntary or involuntary federal or state bankruptcy, insolvency or similar
proceeding; (d) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets
or ways;  

  
 13. 

 
(e) any use, nonuse or condition in, on or about the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways;
(f) any failure on the part of Mortgagor to perform or be in compliance with any of the terms of the First Lien Documents; (g) performance of any labor or services or the furnishing of any materials or other property in respect of the
Property or any part thereof; (h) the failure of any person to file timely with the Internal Revenue Service an accurate Form 1099-B, Statement for Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which may be
required in connection with this Mortgage, or to supply a copy thereof in a timely fashion to the recipient of the proceeds of the transaction in connection with which this Mortgage is made; (i) any failure of the Property to be in compliance
with any legal requirements; (j) the enforcement by any Indemnified Party of the provisions of this Article 10; (k) any and all claims and demands whatsoever which may be asserted against Mortgagee by reason of any alleged
obligations or undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained in the First Lien Documents; (l) the payment of any commission, charge or brokerage fee to anyone claiming through Mortgagor
which may be payable in connection with any First Lien Obligation; or (m) any misrepresentation made by Mortgagor in any First Lien Document, except to the extent such Losses were caused solely as a result of the gross negligence or willful
misconduct of any Indemnified Party. Any amounts payable to Mortgagee by reason of the application of this Section 10.1 shall become immediately due and payable and shall bear interest at the rate of Barclays’ cost of funds plus
1% per annum from the date loss or damage is sustained by Mortgagee until paid. For purposes of this Article 10, the term “Indemnified Parties” means Mortgagee and any Person who is or will have been involved in the
origination of the First Lien Obligations, any Person in whose name the encumbrance created by this Mortgage is or will have been recorded, persons and entities who may hold or acquire or will have held a full or partial interest in the First Lien
Obligations secured hereby (including, but not limited to, custodians, trustees and other fiduciaries who hold or have held a full or partial interest in the First Lien Obligations secured hereby for the benefit of third parties) as well as the
respective directors, officers, shareholders, partners, employees, agents, servants, representatives, contractors, subcontractors, affiliates, subsidiaries, participants, successors and assigns of any and all of the foregoing (including, but not
limited to, any other Person who holds or acquires or will have held a participation or other full or partial interest in the First Lien Obligations, whether during the term of the Mortgage or as a part of or following a foreclosure of the Mortgage
and any successors by merger, consolidation or acquisition of all or a substantial portion of Mortgagee’s assets and business).  

Section 10.2 Mortgage and/or Intangible Tax. Mortgagor shall, at its sole cost and expense, protect, defend,
indemnify, release and hold harmless the Indemnified Parties from and against any and all Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly arising out of or in any way relating to any tax on
the making and/or recording of any First Lien Document, but excluding any income, franchise or other similar taxes. 

Section 10.3 ERISA Indemnification. Mortgagor shall, at its sole cost and expense, protect, defend, indemnify, release
and hold harmless the Indemnified Parties from and against any and all Losses (including, without limitation, reasonable attorneys’ fees and costs incurred in the investigation, defense, and settlement of Losses) incurred in correcting any
prohibited transaction or in the sale of a prohibited loan, and in obtaining any individual prohibited transaction exemption under ERISA that may be required, in Mortgagee’s sole discretion, that Mortgagee may incur, directly or indirectly.

  
 14. 

 Section 10.4 Duty to Defend; Attorneys’ Fees and Other Fees and Expenses.
In connection with any indemnification obligations of Mortgagor hereunder, upon written request by any Indemnified Party, Mortgagor shall defend such Indemnified Party (if requested by any Indemnified Party, in the name of the Indemnified Party) by
attorneys and other professionals reasonably approved by the Indemnified Parties. Notwithstanding the foregoing, if the defendants in any such claim or proceeding include Mortgagor and any Indemnified Party and Mortgagor and such Indemnified Party
shall have reasonably concluded that there are any legal defenses available to it and/or other Indemnified Parties that are different from or additional to those available to Mortgagor, such Indemnified Party shall have the right to select separate
counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such Indemnified Party, provided that no compromise or settlement shall be entered without Mortgagor’s consent, which consent shall
not be unreasonably withheld. Upon demand, Mortgagor shall pay or, in the sole and absolute discretion of the Indemnified Parties, reimburse, the Indemnified Parties for the payment of reasonable fees and disbursements of attorneys, engineers,
environmental consultants, laboratories and other professionals in connection therewith. 
 ARTICLE 11 - WAIVERS 

Section 11.1 Waiver of Counterclaim. To the extent permitted by applicable law, Mortgagor hereby waives the right
to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any action or proceeding brought against it by Mortgagee arising out of or in any way connected with any of the First Lien Documents, or the First Lien Obligations.

 Section 11.2 Marshalling and Other Matters. To the extent permitted by applicable law, Mortgagor
hereby waives the benefit of all appraisement, valuation, stay, extension, reinstatement and redemption laws now or hereafter in force and all rights of marshalling in the event of any sale hereunder of the Property or any part thereof or any
interest therein. Further, Mortgagor hereby expressly waives any and all rights of redemption from sale under any order or decree of foreclosure of this Mortgage on behalf of Mortgagor, and on behalf of each and every person acquiring any interest
in or title to the Property subsequent to the date of this Mortgage and on behalf of all persons to the extent permitted by applicable law. 

Section 11.3 Waiver of Notice. To the extent permitted by applicable law, Mortgagor shall not be entitled to any
notices of any nature whatsoever from Mortgagee except with respect to matters for which any First Lien Documents or the Intercreditor Agreement specifically and expressly provides for the giving of notice by Mortgagee to Mortgagor and except with
respect to matters for which Mortgagee is required by applicable law to give notice, and Mortgagor hereby expressly waives the right to receive any notice from Mortgagee with respect to any matter for which this Mortgage does not specifically and
expressly provide for the giving of notice by Mortgagee to Mortgagor. 

  
 15. 

 Section 11.4 Waiver of Statute of Limitations. To the extent permitted by
applicable law, Mortgagor hereby expressly waives and releases to the fullest extent permitted by law, the pleading of any statute of limitations as a defense to performance of its First Lien Obligations. 

Section 11.5 Bankruptcy Matters. In any case commenced by or against Mortgagor (in such capacity, the “Reorganized
Party”) under Chapter 11 of the Bankruptcy Code or any similar provision thereof or any similar federal or state statute (a “Reorganization Proceeding”), Mortgagee shall have the exclusive right to exercise any voting
rights in respect of this Mortgage and the First Lien Obligations and Mortgagor shall not have the right to, and may not, vote affirmatively in favor of any plan of reorganization unless Mortgagee grants its permission thereto or Mortgagee votes to
accept such plan. 
 Section 11.6 Survival. The indemnifications made pursuant to Sections 10.1, 10.3
and 10.4 herein and the representations and warranties, covenants, and other obligations arising under Article 10, shall continue indefinitely in full force and effect and shall survive and shall in no way be impaired by any of the
following: any satisfaction or other termination of this Mortgage, any assignment or other transfer of all or any portion of this Mortgage or Mortgagee’s interest in the Property (but, in such case, shall benefit both Indemnified Parties and
any assignee or transferee), any exercise of Mortgagee’s rights and remedies pursuant hereto including, but not limited to, foreclosure or acceptance of a deed in lieu of foreclosure, any exercise of any rights and remedies pursuant to any of
the First Lien Documents or the Intercreditor Agreement, any transfer of all or any portion of the Property (whether by Mortgagor or by Mortgagee following foreclosure or acceptance of a deed in lieu of foreclosure or at any other time), any
amendment to the First Lien Documents or the Intercreditor Agreement, and any act or omission that might otherwise be construed as a release or discharge of Mortgagor from the obligations pursuant hereto. Notwithstanding the provisions of this
Mortgage to the contrary, the liabilities and obligations of Mortgagor shall not apply to the extent such liabilities and obligations arise on or after the date any Indemnified Party or its nominee acquired title to the Property, whether by
foreclosure, exercise of power of sale or otherwise. 
 ARTICLE 12 - SECOND MORTGAGE 

Section 12.1 Second Mortgage. It is hereby acknowledged and agreed that the Property will be subject to the following
second mortgage: 
 Fee Second Mortgage and Fixture Filing dated September 25, 2013, in favor of DEUTSCHE BANK AG NEW YORK
BRANCH, a branch, duly licensed by the New York State Department of Financial Services, of Deutsche Bank AG, a German banking corporation, as collateral agent for and on behalf of the Loan Parties, as mortgagee (“Mortgage Second Lien
Agreement”). 
 ARTICLE 13 - MORTGAGEE AND NOTICES 

Section 13.1 No Waiver; Remedies Cumulative. The rights of Mortgagee under this Mortgage (a) may be exercised as often
as necessary; (b) are cumulative and not exclusive of its  

  
 16. 

 
rights under law or in equity; and (c) may be waived only in writing and specifically. Delay in exercising or non-exercise of any right is not a waiver of that right. Any waiver, consent or
amendment shall be effective only in the specific instance and for the specific purpose for which it was given and shall not entitle any Mortgagor to any further or subsequent waiver, consent or amendment. 

Section 13.2 Notices. Notices to Mortgagee hereunder and under First Lien Documents shall be sent as follows: 

 

			
	Address:	  	Wells Fargo Bank, National Association
	Attention:	  	Specialized Agency and Trust
		  	150 East 42nd Street, 40th Floor
		  	New York, New York 10017
	Attention:	  	Julius R. Zamora
	Phone:	  	+1 917 260 1539
	Fax number:	  	+1 917 260 1594 or 917 260 1593
	Email:	  	julius.r.zamora@wellsfargo.com

 All notices or other written communications hereunder shall be delivered in accordance with Section 15.2 of the
Intercreditor Agreement. 
 ARTICLE 14 - APPLICABLE LAW 

Section 14.1 Governing Law.  

(a) THIS MORTGAGE SHALL BE DEEMED TO BE A CONTRACT ENTERED INTO PURSUANT TO THE LAWS OF THE STATE OF NEW YORK AND SHALL IN ALL
RESPECTS BE GOVERNED, CONSTRUED, APPLIED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK; PROVIDED, HOWEVER, THAT WITH RESPECT TO THE CREATION, VALIDITY, ATTACHMENT PERFECTION, PRIORITY, AND ENFORCEMENT OF THE LIEN OF
THIS MORTGAGE, AND THE DETERMINATION OF DEFICIENCY JUDGMENTS, THE LAWS OF THE STATE OF HAWAII SHALL APPLY. TO THE FULLEST EXTENT PERMITTED BY LAW, MORTGAGOR HEREBY UNCONDITIONALLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION
GOVERNS THIS MORTGAGE. 
 (b) MORTGAGOR, TO THE FULL EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY,
WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, (i) SUBMITS TO PERSONAL JURISDICTION IN THE STATE OF HAWAII AND THE STATE OF NEW YORK, AS APPLICABLE, OVER ANY SUIT, ACTION OR PROCEEDING BY ANY PERSON ARISING FROM OR RELATING TO THIS MORTGAGE,
(ii) AGREES THAT ANY SUCH ACTION, SUIT OR PROCEEDING MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION PRESIDING OVER THE CITY AND COUNTY OF HONOLULU, HAWAII OR THE CITY AND COUNTY OF NEW YORK, NEW YORK, AS APPLICABLE,
(iii) SUBMITS TO THE JURISDICTION OF 

  
 17. 

 
SUCH COURTS, AND (iv) AGREES THAT IT WILL NOT BRING ANY ACTION, SUIT OR PROCEEDING IN ANY OTHER FORUM (BUT NOTHING HEREIN SHALL AFFECT THE RIGHT OF MORTGAGEE TO BRING ANY ACTION, SUIT OR
PROCEEDING IN ANY OTHER FORUM). TO THE FULL EXTENT PERMITTED BY LAW, MORTGAGOR FURTHER CONSENTS AND AGREES TO SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER LEGAL PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING BY REGISTERED OR CERTIFIED U.S. MAIL,
POSTAGE PREPAID, TO MORTGAGOR AT THE ADDRESS FOR NOTICES DESCRIBED IN SECTION 13.2 HEREOF, AND CONSENTS AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE IN EVERY RESPECT VALID AND EFFECTIVE SERVICE (BUT NOTHING HEREIN SHALL AFFECT THE
VALIDITY OR EFFECTIVENESS OF PROCESS SERVED IN ANY OTHER MANNER PERMITTED BY LAW). 
 (c) MORTGAGOR, TO THE FULL EXTENT
PERMITTED BY LAW, HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY
WAY RELATING TO THE FIRST LIEN OBLIGATIONS SECURED HEREBY OR ANY CONDUCT, ACT OR OMISSION OF MORTGAGEE OR MORTGAGOR, OR ANY OF THEIR DIRECTORS, OFFICERS, PARTNERS, MANAGERS, MEMBERS, EMPLOYEES, AGENTS OR ATTORNEYS, OR ANY OTHER PERSONS AFFILIATED
WITH MORTGAGEE OR MORTGAGOR, IN EACH OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. 
 Section 14.2
Usury Laws. Notwithstanding anything to the contrary, (a) all agreements and communications between Mortgagor and Mortgagee are hereby and shall automatically be limited so that, after taking into account all amounts deemed
interest, the interest contracted for, charged or received by Mortgagee shall never exceed the maximum lawful rate or amount, (b) in calculating whether any interest exceeds the lawful maximum, all such interest shall be amortized, prorated,
allocated and spread over the full amount and term of all principal indebtedness of Mortgagor to Mortgagee, and (c) if through any contingency or event, Mortgagee receives or is deemed to receive interest in excess of the lawful maximum, any
such excess shall be deemed to have been applied toward payment of the principal of any and all then outstanding indebtedness of Mortgagor to Mortgagee, or if there is no such indebtedness, shall immediately be returned to Mortgagor. 

Section 14.3 Provisions Subject to Applicable Law. All rights, powers and remedies provided in this
Mortgage may be exercised only to the extent that the exercise thereof does not violate any applicable provisions of law and are intended to be limited to the extent necessary so that they will not render this Mortgage invalid, unenforceable or not
entitled to be recorded, registered or filed under the provisions of any applicable law. If any term of this Mortgage or any application thereof shall be invalid or unenforceable, the remainder of this Mortgage and any other application of the term
shall not be affected thereby. 

  
 18. 

 ARTICLE 15 - DEFINITIONS 

All capitalized terms not defined herein shall have the respective meanings set forth in the Intercreditor Agreement. Unless the
context clearly indicates a contrary intent or unless otherwise specifically provided herein, words used in this Mortgage may be used interchangeably in singular or plural form and the word “Mortgagor” shall mean “each
Mortgagor and any subsequent owner or owners of the Property or any part thereof or any interest therein”, the word “Mortgagee” shall mean “Mortgagee and any subsequent successor to or holder of the First Lien Obligations
and any other evidence of indebtedness secured by this Mortgage”, the word “Property” shall include any portion of the Property and any interest therein, and the phrases “attorneys’ fees”,
“legal fees” and “counsel fees” shall include any and all reasonable attorneys’, paralegal and law clerk fees and disbursements, including, but not limited to, fees and disbursements at the pre-trial, trial and
appellate levels incurred or paid by Mortgagee in protecting its interest in the Property, the leases and the rents and enforcing its rights hereunder. 

ARTICLE 16 - MISCELLANEOUS PROVISIONS 

Section 16.1 No Oral Change. This Mortgage, and any provisions hereof, may not be modified, amended, waived,
extended, changed, discharged or terminated orally or by any act or failure to act on the part of Mortgagor or Mortgagee, but only by an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver,
extension, change, discharge or termination is sought. 
 Section 16.2 Successors and Assigns. This Mortgage
shall be binding upon and inure to the benefit of Mortgagor and Mortgagee and their respective successors and assigns forever. 

Section 16.3 Inapplicable Provisions. If any term, covenant or condition of this Mortgage is held to be invalid,
illegal or unenforceable in any respect, this Mortgage shall be construed without such provision. 
 Section 16.4
Headings, etc. The headings and captions of various Sections of this Mortgage are for convenience of reference only and are not to be construed as defining or limiting, in any way, the scope or intent of the provisions hereof.

 Section 16.5 Number and Gender. Whenever the context may require, any pronouns used herein shall include
the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice versa. 

Section 16.6 Subrogation. If any or all of the proceeds of the Payment Amount have been used to extinguish, extend or renew
any indebtedness heretofore existing against the Property, then, to the extent of the funds so used, Mortgagee shall be subrogated to all of the rights, claims, liens, titles, and interests existing against the Property heretofore held by, or in
favor of, the holder of such indebtedness and such former rights, claims, liens, titles, and interests, if any, are not waived but rather are continued in full force and effect in favor of Mortgagee and are merged with the lien and security interest
created herein as cumulative security for the payment of the Payment Amount, the performance and discharge of Mortgagor’s obligations hereunder, under the First Lien Documents and the performance and discharge of the First Lien Obligations.

  
 19. 

 Section 16.7 Entire Agreement. This Mortgage contains the complete
agreement between Mortgagor and Mortgagee on the matters to which it relates and supersedes all prior commitments, agreements and understandings, whether written or oral, on those matters. 

Section 16.8 Limitation on Mortgagee’s Responsibility. No provision of this Mortgage shall operate to place any
obligation or liability for the control, care, management or repair of the Property upon Mortgagee, nor shall it operate to make Mortgagee responsible or liable for any waste committed on the Property by the tenants or any other Person, or for any
dangerous or defective condition of the Property, or for any negligence in the management, upkeep, repair or control of the Property resulting in loss or injury or death to any tenant, licensee, employee or stranger. Nothing herein contained shall
be construed as constituting Mortgagee a “Mortgagee in possession”. 
 Section 16.9
Conflict of Terms. In case of any conflict between the terms of this Mortgage and the terms of the Intercreditor Agreement, the terms of the Intercreditor Agreement shall prevail. 

Section 16.10 Disclaimers. 

(a) The relationship of Mortgagor and Mortgagee under the First Lien Documents is, and shall at all times remain, solely that of obligor and
obligee; and Mortgagee neither undertakes nor assumes any responsibility or duty to Mortgagor or to any third party with respect to the Property. Notwithstanding any other provisions of the First Lien Documents: (i) Mortgagee is not, and shall
not be construed to be, a partner, joint venturer, member, alter ego, manager, controlling person or other business associate or participant of any kind of Mortgagor, and Mortgagee does not intend to ever assume such status; (ii) Mortgagee does
not intend to ever assume any responsibility to any person for the quality, suitability, safety or condition of the Property; and (iii) Mortgagee shall not be deemed responsible for or a participant in any acts, omissions or decisions of
Mortgagor. 
 (b) During the effectiveness of this Mortgage, Mortgagee shall not be directly or indirectly liable or responsible for any
loss, claim, cause of action, liability, indebtedness, damage or injury of any kind or character to any person or property arising from any construction on, or occupancy or use of, the Property, whether caused by or arising from: (i) any defect
in any building, structure, grading, fill, landscaping or other improvements thereon or in any on-site or off-site improvement or other facility therein or thereon; (ii) any act or omission of Mortgagor or any of Mortgagor’s agents,
employees, independent contractors, licensees or invitees; (iii) any accident in or on the Property or any fire, flood or other casualty or hazard thereon; (iv) the failure of Mortgagor or any of Mortgagor’s licensees, employees,
invitees, agents, independent contractors or other representatives to maintain the Property in a safe condition; or (v) any nuisance made or suffered on any part of the Property. 

Section 16.11 Last Dollars Secured. The parties hereto agree that any payments of the Payment Amount by Mortgagor shall be
deemed to apply first to the portion of the Payment Amount that is not secured by this Mortgage, it being the parties’ intent that the portion of the Payment Amount last remaining unpaid shall be deemed secured hereto. 

  
 20. 

 ARTICLE 17 - STATE-SPECIFIC PROVISIONS 

Section 17.1 Debtor and Secured Party. Mortgagor is, for the purpose of this Mortgage, deemed to be the “debtor”,
and Mortgagee is deemed to be the “secured party”, as those terms are used in the Uniform Commercial Code. The addresses of the secured party and the debtor are set forth in the initial paragraph of this Mortgage.  

Section 17.2 Procurement of Insurance. Pursuant to Hawaii Revised Statutes Section 431:13-104, Mortgagee may not make
its entering into the contemplated transactions contingent upon the procuring of any insurance required by this Mortgage with an insurance company designated by Mortgagee or through a designated agent or procurer. 

Section 17.3 Principles of Construction. In the event of any inconsistencies between the terms and conditions of this
Article 17 and the other terms and conditions of this Mortgage, the terms and conditions of this Article 17 shall control and be binding. 

Section 17.4 First Lien Obligations. With respect to the Property the obligations secured by this Mortgage shall include
all amounts payable under the First Lien Documents including, without limitation, the repayment of all future advances or costs in an amount not to exceed ONE HUNDRED FIFTY MILLION DOLLARS AND NO/100 DOLLARS ($150,000,000.00) (which future advances
shall include, without limitation, advances to pay for such items as real property taxes, insurance premiums, attorneys’ fees, or any other sums) which Mortgagee may, but is not obligated to, make or incur in accordance with the terms of any of
the First Lien Documents. 
 Section 17.5 Remedies. Without limiting any other remedies available under any of the
First Lien Documents or under applicable law, upon the occurrence and during the continuance of any Trigger Event, Mortgagee shall be entitled to exercise any remedies available under Hawaii Revised Statutes Chapter 667, as amended, including,
without limitation, a power of sale foreclosure pursuant to such Chapter 667. 
 Section 17.6 Mortgage Recording
Fee. Without limiting the generality of the fees and expenses described herein, Mortgagor will pay the special mortgage recording fee, if any, required by Hawaii Revised Statutes Section 431P-16. 

[NO FURTHER TEXT ON THIS PAGE] 

  
 21. 

 IN WITNESS WHEREOF, this Mortgage has been executed by Mortgagor as of the day and year
first above written. 
  

					
	MORTGAGOR:
	
	TESORO HAWAII, LLC
		
	By:	 	 /s/ William Monteleone

		 	Name:	 	William Monteleone
		 	Title:	 	Vice President

			
	STATE OF TEXAS	  	    )
		  	    ) SS
	COUNTY OF HARRIS	  	    )

 On this 25th day of September, 2013, before me, the undersigned notary public, personally appeared William
Monteleone, to me personally known, who, being by me duly sworn, did say that such person is the Vice President of TESORO HAWAII, LLC, a Hawaii limited liability company, and that the instrument was signed on behalf of the limited liability company
by authority of its board of directors and William Monteleone acknowledged the instrument to be the free act and deed of the limited liability company. 
  

			
	 /s/ Maria Hadjialexiou

		
	Name:	 	Maria Hadjialexiou
	
	Notary Public, State of Texas
	
	My commission expires: 12/27/14

 (Notary Stamp or Seal) 
  

					
	 
	NOTARY CERTIFICATION STATEMENT
	 	 
	Document Identification or Description:      	 	 Fee First Mortgage and Fixture
Filing

	 
	    

					
	 	 	 
	Document Date:	 	September 25, 2013	 	 
	 		 
	No. of Pages:	 	49	 	 
	 	 
	Jurisdiction (in which notarial act is performed): Harris County, TX	 	 
	 	 
	/s/ Maria Hadjialexiou	 	 
	Signature of Notary	 	 Date of Notarization and    

Certification Statement       
	 	 
	 Maria Hadjialexiou 
	 	    (Notary Stamp or Seal)    
	Printed Name of Notary

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