Document:

2007 Employee Stock Purchase Plan and Related Agreements

 Exhibit 10.6 
 IMPERIUM RENEWABLES, INC. 
 2007 Employee Stock Purchase Plan 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page
	1.	  	Establishment, Purpose and Term of Plan	  	1
				
		  	1.1	  	Establishment	  	1
		  	1.2	  	Purpose	  	1
		  	1.3	  	Term of Plan	  	1
			
	2.	  	Definitions and Construction	  	1
				
		  	2.1	  	Definitions	  	1
		  	2.2	  	Construction	  	5
			
	3.	  	Administration	  	5
				
		  	3.1	  	Administration by the Committee	  	5
		  	3.2	  	Authority of Officers	  	6
		  	3.3	  	Policies and Procedures Established by the Company	  	6
		  	3.4	  	Indemnification	  	6
			
	4.	  	Shares Subject to Plan	  	7
				
		  	4.1	  	Maximum Number of Shares Issuable	  	7
		  	4.2	  	Adjustments for Changes in Capital Structure	  	7
			
	5.	  	Eligibility	  	8
				
		  	5.1	  	Employees Eligible to Participate	  	8
		  	5.2	  	Exclusion of Certain Shareholders	  	8
		  	5.3	  	Determination by Company	  	8
			
	6.	  	Offerings	  	8
			
	7.	  	Participation in the Plan	  	9
				
		  	7.1	  	Initial Participation	  	9
		  	7.2	  	Continued Participation	  	9
			
	8.	  	Right to Purchase Shares	  	10
				
		  	8.1	  	Grant of Purchase Right	  	10
		  	8.2	  	Calendar Year Purchase Limitation	  	10
			
	9.	  	Purchase Price	  	10
			
	10.	  	Accumulation of Purchase Price through Payroll Deduction	  	11
				
		  	10.1	  	Amount of Payroll Deductions	  	11
		  	10.2	  	Commencement of Payroll Deductions	  	11
		  	10.3	  	Election to Decrease or Stop Payroll Deductions	  	11
		  	10.4	  	Administrative Suspension of Payroll Deductions	  	11
		  	10.5	  	Participant Accounts	  	12

  

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 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page
		  	10.6	  	No Interest Paid	  	12
			
	11.	  	Purchase of Shares	  	12
				
		  	11.1	  	Exercise of Purchase Right	  	12
		  	11.2	  	Pro Rata Allocation of Shares	  	13
		  	11.3	  	Delivery of Certificates	  	13
		  	11.4	  	Return of Plan Account Balance	  	14
		  	11.5	  	Tax Withholding	  	14
		  	11.6	  	Expiration of Purchase Right	  	14
		  	11.7	  	Provision of Reports and Shareholder Information to Participants	  	14
			
	12.	  	Withdrawal from Plan	  	14
				
		  	12.1	  	Voluntary Withdrawal from the Plan	  	14
		  	12.2	  	Return of Plan Account Balance	  	15
			
	13.	  	Termination of Employment or Eligibility	  	15
			
	14.	  	Effect of Change in Control on Purchase Rights	  	15
			
	15.	  	Nontransferability of Purchase Rights	  	15
			
	16.	  	Compliance with Securities Law	  	16
			
	17.	  	Rights as a Shareholder and Employee	  	16
			
	18.	  	Legends	  	16
			
	19.	  	Notification of Disposition of Shares	  	17
			
	20.	  	Designation of Beneficiary	  	17
				
		  	20.1	  	Designation Procedure	  	17
		  	20.2	  	Absence of Beneficiary Designation	  	17
			
	21.	  	Notices	  	17
			
	22.	  	Amendment or Termination of the Plan	  	18

  

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 IMPERIUM RENEWABLES, INC. 
 2007 Employee Stock Purchase Plan 
 1. ESTABLISHMENT,
PURPOSE AND TERM OF PLAN. 
 1.1 Establishment. The
Imperium Renewables, Inc. 2007 Employee Stock Purchase Plan (the “Plan”) is hereby established effective as of the effective date of the initial registration by the Company of its Stock under Section 12 of
the Securities Exchange Act of 1934, as amended (the “Effective Date”). 
 1.2 Purpose. The
purpose of the Plan is to advance the interests of the Company and its shareholders by providing an incentive to attract, retain and reward Eligible Employees of the Participating Company Group and by motivating such persons to contribute to the
growth and profitability of the Participating Company Group. The Plan provides such Eligible Employees with an opportunity to acquire a proprietary interest in the Company through the purchase of Stock. The Company intends that the Plan qualify as
an “employee stock purchase plan” under Section 423 of the Code (including any amendments or replacements of such section), and the Plan shall be so construed. 
 1.3 Term of Plan. The Plan shall continue in effect until its termination by the Committee. 
 2. DEFINITIONS AND CONSTRUCTION. 
 2.1 Definitions. Any term not expressly defined in the Plan but defined for purposes of Section 423 of the Code shall have the same definition
herein. Whenever used herein, the following terms shall have their respective meanings set forth below: 
 (a)
“Board” means the Board of Directors of the Company. 
 (b) “Cash Exercise
Notice” means a written notice in such form as specified by the Company which states a Participant’s election to exercise, as of the next Purchase Date, a Purchase Right granted to such Participant with respect to a
Pre-Registration Offering Period. 
 (c) “Change in Control” means the occurrence of any of the
following: 
 (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the
“beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total combined voting power of the
Company’s then-outstanding securities entitled to vote generally in the election of Directors; provided, however, that the following acquisitions shall not constitute a Change in Control: (1) an acquisition by any such person who on the
Effective Date is the beneficial owner of more than fifty percent (50%) of such voting power, (2) any acquisition directly from the Company, 
  

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 including, without limitation, a public offering of securities, (3) any acquisition by the Company, (4) any
acquisition by a trustee or other fiduciary under an employee benefit plan of a Participating Company or (5) any acquisition by an entity owned directly or indirectly by the shareholders of the Company in substantially the same proportions as
their ownership of the voting securities of the Company; or 
 (ii) an Ownership Change Event or series of related Ownership Change Events
(collectively, a “Transaction”) in which the shareholders of the Company immediately before the Transaction do not retain immediately after the Transaction direct or indirect beneficial ownership of more than
fifty percent (50%) of the total combined voting power of the outstanding securities entitled to vote generally in the election of Directors or, in the case of an Ownership Change Event described in Section 2.1(o)(iii), the entity to which
the assets of the Company were transferred (the “Transferee”), as the case may be; or 
 (iii) a
liquidation or dissolution of the Company; 
 provided, however, that a Change in Control shall be deemed not to include a transaction described in
subsections (i) or (ii) of this Section 2.1(c) in which a majority of the members of the board of directors of the continuing, surviving or successor entity, or parent thereof, immediately after such transaction is comprised of
Incumbent Directors. 
 For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest
resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company or the Transferee, as the case may be, either directly or through one or more subsidiary corporations or other business
entities. The Committee shall have the right to determine whether multiple sales or exchanges of the voting securities of the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and conclusive.

 (d) “Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations
promulgated thereunder. 
 (e) “Committee” means the Compensation Committee and such other committee
or subcommittee of the Board, if any, duly appointed to administer the Plan and having such powers in each instance as shall be specified by the Board. If at any time there is no committee of the Board then authorized or properly constituted to
administer the Plan, the Board shall exercise all of the powers of the Committee granted herein, and, in any event, the Board may in its discretion exercise any or all of such powers. 
 (f) “Company” means Imperium Renewables, Inc., a Washington corporation, or any successor corporation thereto.

 (g) “Compensation” means, with respect to any Offering Period, base salary, overtime, bonuses and
commissions. Compensation shall be limited to amounts actually payable in cash directly to the Participant, provided however, that Compensation shall include, unless otherwise provided below, amounts voluntarily deferred by a Participant to a plan
described in Section 401(k) of the Code, Section 125 of the Code, or a nonqualified deferred compensation plan maintained primarily for the benefit of a select group of management or 
  

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 highly paid employees (a “Top-Hat Plan”). Compensation shall not include any amounts required by
the Company to be deferred to a Top-Hat Plan, any Participating Company discretionary contribution to a Top-Hat Plan, other incentive payments, shift premiums, long-term disability, workers’ compensation, moving allowances, payments pursuant to
a severance agreement, termination pay, relocation payments, sign-on bonuses, expense reimbursements, the cost of employee benefits paid by a Participating Company, tuition reimbursements, imputed income arising under any benefit program,
contributions made by a Participating Company under any employee benefit plan, income directly or indirectly received pursuant to the Plan or any other stock purchase or stock option plan, or any other compensation not included in base salary,
overtime, bonuses and commissions. 
 (h) “Eligible Employee” means an Employee who meets the
requirements set forth in Section 5 for eligibility to participate in the Plan. 
 (i) “Employee”
means a person treated as an employee of a Participating Company for purposes of Section 423 of the Code. A Participant shall be deemed to have ceased to be an Employee either upon an actual termination of employment or upon the corporation
employing the Participant ceasing to be a Participating Company. For purposes of the Plan, an individual shall not be deemed to have ceased to be an Employee while on any military leave, sick leave, or other bona fide leave of absence approved by
the Company of ninety (90) days or less. If an individual’s leave of absence exceeds ninety (90) days, the individual shall be deemed to have ceased to be an Employee on the ninety-first (91st) day of such leave unless the
individual’s right to reemployment with the Participating Company Group is guaranteed either by statute or by contract. 
 (j)
“Fair Market Value” means, as of any date: 
 (i) If the Stock is then listed on a national or regional
securities exchange or market system or is regularly quoted by a recognized securities dealer, the closing sale price of a share of Stock (or the mean of the closing bid and asked prices if the Stock is so quoted instead) as quoted on the national
or regional securities exchange or market system constituting the primary market for the Stock, or by such recognized securities dealer, as reported in The Wall Street Journal or such other source as the Company deems reliable. If the
relevant date does not fall on a day on which the Stock has traded on such securities exchange or market system or has been quoted by such securities dealer, the date on which the Fair Market Value is established shall be the last day on which the
Stock was so traded or quoted prior to the relevant date, or such other appropriate day as determined by the Board, in its discretion. 
 (ii) If, on the relevant date, the Stock is not then listed on a national or regional securities exchange or market system or regularly quoted by a recognized securities dealer, the Fair Market Value of a share of Stock shall be as
determined in good faith by the Board. 
 (iii) Notwithstanding the foregoing, if the initial Offering Period commences on the Effective
Date, then the Fair Market Value of a share of Stock on such date shall be deemed to be the public offering price set forth in the final prospectus filed with the 

  

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Securities and Exchange Commission in connection with the Company’s initial public offering of the Stock. 
 (k) “Incumbent Director” means a director who either (i) is a member of the Board as of the Effective Date or
(ii) is elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination, but who was not elected or nominated in connection with an actual
or threatened proxy contest relating to the election of directors of the Company. 
 (l) “Offering”
means an offering of Stock pursuant to the Plan, as provided in Section 6. 
 (m) “Offering Date”
means, for any Offering Period, the first day of such Offering Period. 
 (n) “Offering Period” means
a period, established by the Committee in accordance with Section 6, during which an Offering is outstanding. 
 (o)
“Ownership Change Event” means the occurrence of any of the following with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related transactions by the
shareholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; or (iii) the sale, exchange, or transfer of all or substantially all of
the assets of the Company (other than a sale, exchange or transfer to one or more subsidiaries of the Company). 
 (p)
“Parent Corporation” means any present or future “parent corporation” of the Company, as defined in Section 424(e) of the Code. 
 (q) “Participant” means an Eligible Employee who has become a participant in an Offering Period in accordance with
Section 7 and remains a participant in accordance with the Plan. 
 (r) “Participating Company”
means the Company and any Parent Corporation or Subsidiary Corporation designated by the Board as a corporation the Employees of which may, if Eligible Employees, participate in the Plan. The Board shall have the sole and absolute discretion to
determine from time to time which Parent Corporations or Subsidiary Corporations shall be Participating Companies. 
 (s)
“Participating Company Group” means, at any point in time, the Company and all other corporations collectively which are then Participating Companies. 
 (t) “Pre-Registration Offering Period” means an Offering Period commencing prior to the Registration Date with
respect to the shares of Stock issuable pursuant to such Offering Period. 
 (u) “Purchase Date”
means, for any Offering Period, the last day of such Offering Period, or, if so determined by the Committee, the last day of each Purchase Period occurring within such Offering Period. 
  

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 (v) “Purchase Period” means a period, established by the Committee
in accordance with Section 6, included within an Offering Period and on the final date of which outstanding Purchase Rights are exercised. 
 (w) “Purchase Price” means the price at which a share of Stock may be purchased under the Plan, as determined in accordance with Section 9. 
 (x) “Purchase Right” means an option granted to a Participant pursuant to the Plan to purchase such shares of
Stock as provided in Section 8, which the Participant may or may not exercise during the Offering Period in which such option is outstanding. Such option arises from the right of a Participant to withdraw any payroll deductions or other funds
accumulated on behalf of the Participant and not previously applied to the purchase of Stock under the Plan, and to terminate participation in the Plan at any time during an Offering Period. 
 (y) “Registration Date” means the effective date of the registration on Form S-8 of shares of Stock issuable
pursuant to the Plan. 
 (z) “Section 409A” means Section 409A of the Code and all
applicable guidance promulgated thereunder. 
 (aa) “Securities Act” means the Securities Act of 1933,
as amended. 
 (bb) “Stock” means the common stock of the Company, as adjusted from time to time in
accordance with Section 4.2. 
 (cc) “Subscription Agreement” means a written agreement in such
form as specified by the Company, stating an Employee’s election to participate in the Plan and authorizing payroll deductions under the Plan from the Employee’s Compensation or other method of payment authorized by the Committee pursuant
to Section 11.1(c). 
 (dd) “Subscription Date” means the last business day prior to the Offering
Date of an Offering Period or such earlier date as the Company shall establish. 
 (ee) “Subsidiary
Corporation” means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code. 
 2.2 Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context,
the singular shall include the plural and the plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise. 
 3. ADMINISTRATION. 
 3.1 Administration by the Committee. The Plan shall be administered by the Committee. All questions of interpretation of the Plan, of any form of agreement or other document employed by the Company in the administration of the Plan,
or of any Purchase Right 
  

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 shall be determined by the Committee, and such determinations shall be final, binding and conclusive upon all persons
having an interest in the Plan or the Purchase Right, unless fraudulent or made in bad faith. Subject to the provisions of the Plan, the Committee shall determine all of the relevant terms and conditions of Purchase Rights; provided, however, that
all Participants granted Purchase Rights pursuant to an Offering shall have the same rights and privileges within the meaning of Section 423(b)(5) of the Code. Any and all actions, decisions and determinations taken or made by the Committee in
the exercise of its discretion pursuant to the Plan or any agreement thereunder (other than determining questions of interpretation pursuant to the second sentence of this Section 3.1) shall be final, binding and conclusive upon all persons
having an interest therein. All expenses incurred in connection with the administration of the Plan shall be paid by the Company. The Company intends for this Plan to be exempt from the substantive requirements of Section 409A which would
generally be applicable to nonqualified deferred compensation plans, and this Plan shall be construed and interpreted accordingly. The Company intends for this Plan to be administered and operated, with respect to any Offering Period and unless
otherwise provided by the Committee, as a noncompensatory employee share purchase plan for financial accounting purposes, and this Plan shall be construed and interpreted accordingly. 
 3.2 Authority of Officers. Any officer of the Company shall have the authority to act on behalf of the Company with respect to any matter, right,
obligation, determination or election that is the responsibility of or that is allocated to the Company herein, provided that the officer has apparent authority with respect to such matter, right, obligation, determination or election. 

3.3 Policies and Procedures Established by the Company. Without regard to whether any Participant’s Purchase Right may be considered
adversely affected, the Company may, from time to time, consistent with the Plan and the requirements of Section 423 of the Code, establish, change or terminate such rules, guidelines, policies, procedures, limitations, or adjustments as deemed
advisable by the Company, in its discretion, for the proper administration of the Plan, including, without limitation, (a) a minimum payroll deduction amount required for participation in an Offering, (b) a limitation on the frequency or
number of changes permitted in the rate of payroll deduction during an Offering, (c) an exchange ratio applicable to amounts withheld or paid in a currency other than United States dollars, (d) a payroll deduction greater than or less than
the amount designated by a Participant in order to adjust for the Company’s delay or mistake in processing a Subscription Agreement or in otherwise effecting a Participant’s election under the Plan or as advisable to comply with the
requirements of Section 423 of the Code, and (e) determination of the date and manner by which the Fair Market Value of a share of Stock is determined for purposes of administration of the Plan. All such actions by the Company shall be
taken consistent with the requirement under Section 423(b)(5) of the Code that all Participants granted Purchase Rights pursuant to an Offering shall have the same rights and privileges within the meaning of such section. 
 3.4 Indemnification. In addition to such other rights of indemnification as they may have as members of the Board or the Committee or as officers
or employees of the Participating Company Group, members of the Board or the Committee and any officers or employees of the Participating Company Group to whom authority to act for the Board, the Committee or the Company is delegated shall be
indemnified by the Company against all 
  

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 reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of
any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any right granted hereunder, and against
all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to
matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of
such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same. 
 4. SHARES SUBJECT TO PLAN. 
 4.1 Maximum Number of Shares Issuable. Subject to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be five hundred thousand (500,000), cumulatively
increased on January 1, 2008 and on each subsequent January 1, through and including January 1, 2017, by a number of shares (the “Annual Increase”) equal to the lesser of (a) one percent
(1.0%) of the number of shares of Stock issued and outstanding on the immediately preceding December 31, (b) one hundred thousand (100,000) shares or (c) an amount determined by the Board, and shall consist of authorized but
unissued or reacquired shares of Stock, or any combination thereof. If an outstanding Purchase Right for any reason expires or is terminated or canceled, the shares of Stock allocable to the unexercised portion of that Purchase Right shall again be
available for issuance under the Plan. 
 4.2 Adjustments for Changes in Capital Structure. Subject to any required action by the
shareholders of the Company, in the event of any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock
dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the
shareholders of the Company in a form other than Stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate and proportionate adjustments shall be made in the number and kind of shares
subject to the Plan, the Annual Increase, the limit on the shares which may be purchased by any Participant during an Offering (as described in Sections 8.1 and 8.2) and each Purchase Right, and in the Purchase Price in order to prevent
dilution or enlargement of Participants’ rights under the Plan. For purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as “effected without receipt of consideration by the Company.”
If a majority of the shares which are of the same class as the shares that are subject to outstanding Purchase Rights are exchanged for, converted into, or otherwise become (whether or not pursuant to an Ownership Change Event) shares of another
corporation (the “New Shares”), the Committee may unilaterally amend the outstanding Purchase Rights to provide that such Purchase Rights are for New Shares. In the event of any such amendment, the number of
shares subject to, and the exercise price per share of, the outstanding Purchase Rights shall be adjusted in a fair and equitable manner as determined by the Committee, in its discretion. Any fractional 
  

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 share resulting from an adjustment pursuant to this Section 4.2 shall be rounded down to the nearest whole number,
and in no event may the Purchase Price be decreased to an amount less than the par value, if any, of the stock subject to the Purchase Right. The adjustments determined by the Committee pursuant to this Section 4.2 shall be final, binding and
conclusive. 
 5. ELIGIBILITY. 
 5.1 Employees Eligible to Participate. Each Employee of a Participating Company is eligible to participate in the Plan and shall be deemed an
Eligible Employee, except the following: 
 (a) Any Employee who is customarily employed by the Participating Company Group for twenty
(20) hours or less per week; or 
 (b) Any Employee who is customarily employed by the Participating Company Group for not more than
five (5) months in any calendar year. 
 5.2 Exclusion of Certain Shareholders. Notwithstanding any provision of the Plan to the
contrary, no Employee shall be treated as an Eligible Employee and granted a Purchase Right under the Plan if, immediately after such grant, the Employee would own or hold options to purchase stock of the Company or of any Parent Corporation or
Subsidiary Corporation possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of such corporation, as determined in accordance with Section 423(b)(3) of the Code. For purposes of this
Section 5.2, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of such Employee. 
 5.3 Determination by Company. The Company shall determine in good faith and in the exercise of its discretion whether an individual has become or has ceased to be an Employee or an Eligible Employee and the effective date of such
individual’s attainment or termination of such status, as the case may be. For purposes of an individual’s participation in or other rights, if any, under the Plan as of the time of the Company’s determination of whether or not the
individual is an Employee, all such determinations by the Company shall be final, binding and conclusive as to such rights, if any, notwithstanding that the Company or any court of law or governmental agency subsequently makes a contrary
determination as to such individual’s status as an Employee. 
 6.
OFFERINGS. 
 The Plan shall be implemented by sequential Offerings
of approximately six (6) months duration or such other duration as the Committee shall determine. However, the initial Offering Period shall commence on the Effective Date and end on or about December 31, 2007, provided that the Committee
may establish different commencement or ending dates. Subsequent Offering Periods shall commence on or about January 1 and July 1 of each year and end on or about the last day of the next June and December, respectively, occurring
thereafter. Notwithstanding the foregoing, the Committee may establish additional or alternative sequential or overlapping Offering Periods, a different duration for one or more Offering Periods or different commencing or ending dates for such
Offering Periods; provided, however, that no Offering Period may have a duration exceeding fourteen (14) months or such lesser number as 
  

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 determined by the Committee to ensure that the Plan be exempt from the substantive requirements of Section 409A. If
the Committee shall so determine in its discretion, each Offering Period may consist of two (2) or more consecutive Purchase Periods having such duration as the Committee shall specify, and the last day of each such Purchase Period shall be a
Purchase Date. If the first or last day of an Offering Period or a Purchase Period is not a day on which the principal stock exchange or market system on which the Stock is then listed is open for trading, the Company shall specify the trading day
that will be deemed the first or last day, as the case may be, of the Offering Period or Purchase Period. 
 7.
PARTICIPATION IN THE PLAN. 
 7.1 Initial
Participation. 
 (a) Generally. Except as provided in Section 7.1(b), an Eligible Employee may become a Participant in an
Offering Period by delivering a properly completed written or electronic Subscription Agreement to the office designated by the Company not later than the close of business for such office on the Subscription Date established by the Company for that
Offering Period. An Eligible Employee who does not deliver a properly completed Subscription Agreement to the Company’s designated office on or before the Subscription Date for an Offering Period shall not participate in the Plan for that
Offering Period or for any subsequent Offering Period unless the Eligible Employee subsequently delivers a properly completed Subscription Agreement to the appropriate office of the Company on or before the Subscription Date for such subsequent
Offering Period. An Employee who becomes an Eligible Employee after the Offering Date of an Offering Period shall not be eligible to participate in that Offering Period but may participate in any subsequent Offering Period provided the Employee is
still an Eligible Employee as of the Offering Date of such subsequent Offering Period. 
 (b) Automatic Participation in Pre-Registration
Offering Period. Notwithstanding Section 7.1(a), each Employee who is an Eligible Employee as of the Offering Date of a Pre-Registration Offering Period shall automatically become a Participant in the Pre-Registration Offering Period and
shall be granted automatically a Purchase Right consisting of an option to purchase the lesser of (a) a number of whole shares of Stock determined in accordance with Section 8 or (b) a number of whole shares of Stock determined by
dividing fifteen percent (15%) of such Participant’s Compensation paid during the Pre-Registration Offering Period by the Purchase Price applicable to the Pre-Registration Offering Period. The Company shall not require or permit any
Participant to deliver a Subscription Agreement for participation in the Pre-Registration Offering Period; provided, however, that following the applicable Registration Date a Participant may deliver a Subscription Agreement to the office designated
by the Company if the Participant wishes to change the terms of the Participant’s participation in the Pre-Registration Offering Period. Such changes may include, for example, an election to commence payroll deductions in accordance with
Section 10. 
 7.2 Continued Participation. 
 (a) Generally. Except as provided in Section 7.2(b), a Participant shall automatically participate in the next Offering Period commencing immediately after the final Purchase Date of each Offering Period
in which the Participant participates provided that 
  

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 the Participant remains an Eligible Employee on the Offering Date of the new Offering Period and has not either
(a) withdrawn from the Plan pursuant to Section 12.1 or (b) terminated employment or otherwise ceased to be an Eligible Employee as provided in Section 13. A Participant who may automatically participate in a subsequent Offering
Period, as provided in this Section, is not required to deliver any additional Subscription Agreement for the subsequent Offering Period in order to continue participation in the Plan. However, a Participant may deliver a new Subscription Agreement
for a subsequent Offering Period in accordance with the procedures set forth in Section 7.1(a) if the Participant desires to change any of the elections contained in the Participant’s then effective Subscription Agreement. 
 (b) Participation Following Pre-Registration Offering Period. Notwithstanding Section 7.2(a), an Eligible Employee who was automatically
enrolled in a Pre-Registration Offering Period and who wishes to participate in an Offering Period which begins after the Pre-Registration Offering Period shall deliver a Subscription Agreement in accordance with Section 7.1(a) no earlier than
the applicable Registration Date and no later than the Subscription Date for such Offering Period, unless such Employee was a Participant in the Pre-Registration Offering Period who delivered a Subscription Agreement with respect to the
Pre-Registration Offering Period as provided in Section 7.1(b). 
 8. RIGHT TO
PURCHASE SHARES. 
 8.1 Grant of Purchase Right. Except as provided in
Section 7.1 with respect to a Pre-Registration Offering Period or as otherwise provided below, on the Offering Date of each Offering Period, each Participant in such Offering Period shall be granted automatically a Purchase Right consisting of
an option to purchase the lesser of (a) that number of whole shares of Stock determined by dividing the Dollar Limit (determined as provided below) by the Fair Market Value of a share of Stock on such Offering Date or (b) Share Limit
(determined as provided below). The Committee may, in its discretion and prior to the Offering Date of any Offering Period, (i) change the method of, or any of the foregoing factors in, determining the number of shares of Stock subject to
Purchase Rights to be granted on such Offering Date or (ii) specify a maximum aggregate number of shares that may be purchased by all Participants in an Offering or on any Purchase Date within an Offering Period. No Purchase Right shall be
granted on an Offering Date to any person who is not, on such Offering Date, an Eligible Employee. For the purposes of this Section, the “Dollar Limit” shall be determined by multiplying $2,083.33 by the number of months
(rounded to the nearest whole month) in the Offering Period and rounding to the nearest whole dollar, and the “Share Limit” shall be determined by multiplying 500 shares by the number of months (rounded to the nearest whole
month) in the Offering Period and rounding to the nearest whole share. 
 8.2 Calendar Year Purchase Limitation. Notwithstanding any
provision of the Plan to the contrary, no Participant shall be granted a Purchase Right which permits his or her right to purchase shares of Stock under the Plan to accrue at a rate which, when aggregated with such Participant’s rights to
purchase shares under all other employee stock purchase plans of a Participating Company intended to meet the requirements of Section 423 of the Code, exceeds Twenty-Five Thousand Dollars ($25,000) in Fair Market Value (or such other limit, if
any, as may be imposed by the Code) for each calendar year in which such Purchase Right is outstanding at any time. For purposes of the preceding sentence, the Fair Market Value of shares 
  

 10 

 purchased during a given Offering Period shall be determined as of the Offering Date for such Offering Period. The
limitation described in this Section shall be applied in conformance with applicable regulations under Section 423(b)(8) of the Code. 
 9. PURCHASE PRICE. 
 The Purchase Price at which each share of Stock may
be acquired in an Offering Period upon the exercise of all or any portion of a Purchase Right shall be established by the Committee; provided, however, that the Purchase Price on each Purchase Date shall not be less than eighty-five percent
(85%) of the lesser of (a) the Fair Market Value of a share of Stock on the Offering Date of the Offering Period or (b) the Fair Market Value of a share of Stock on the Purchase Date. Subject to adjustment as provided below or in
Section 22 and unless otherwise provided by the Committee, the Purchase Price for each Offering Period shall be ninety-five percent (95%) of the Fair Market Value of a share of Stock on the Purchase Date. 
 10. ACCUMULATION OF PURCHASE PRICE THROUGH PAYROLL
DEDUCTION. 
 Except as provided in Section 11.1(b) with respect to a Pre-Registration Offering
Period and in Section 11.1(c) with respect to non-United States Participants for whom payroll deductions are prohibited by applicable law, shares of Stock acquired pursuant to the exercise of all or any portion of a Purchase Right may be paid
for only by means of payroll deductions from the Participant’s Compensation accumulated during the Offering Period for which such Purchase Right was granted, subject to the following: 
 10.1 Amount of Payroll Deductions. Except as otherwise provided herein, the amount to be deducted under the Plan from a Participant’s
Compensation on each pay day during an Offering Period shall be determined by the Participant’s Subscription Agreement. The Subscription Agreement shall set forth the percentage of the Participant’s Compensation to be deducted on each pay
day during an Offering Period in whole percentages of not less than one percent (1%) (except as a result of an election pursuant to Section 10.3 to stop payroll deductions effective following the first pay day during an Offering) or more
than fifteen percent (15%). The Committee may change the foregoing limits on payroll deductions effective as of any Offering Date. 
 10.2
Commencement of Payroll Deductions. Payroll deductions shall commence on the first pay day following the Offering Date and shall continue to the end of the Offering Period unless sooner altered or terminated as provided herein; provided,
however, that with respect to a Pre-Registration Offering Period, payroll deductions shall commence as soon as practicable following the Company’s receipt of the Participant’s Subscription Agreement (delivered no earlier than the
applicable Registration Date), if any. 
 10.3 Election to Decrease or Stop Payroll Deductions. During an Offering Period, a
Participant may elect to decrease the rate of or to stop deductions from his or her Compensation by delivering to the Company’s designated office an amended Subscription Agreement authorizing such change on or before the “Change Notice
Date.” The “Change Notice Date” shall be a date prior to the beginning of the first pay period for which such election is to be effective as established by the Company from time to time and announced to the

  

 11 

 Participants. A Participant who elects, effective following the first pay day of an Offering Period, to decrease the rate
of his or her payroll deductions to zero percent (0%) shall nevertheless remain a Participant in such Offering Period unless the Participant withdraws from the Plan as provided in Section 12.1. 
 10.4 Administrative Suspension of Payroll Deductions. The Company may, in its sole discretion, suspend a Participant’s payroll deductions
under the Plan as the Company deems advisable to avoid accumulating payroll deductions in excess of the amount that could reasonably be anticipated to purchase the maximum number of shares of Stock permitted (a) under the Participant’s
Purchase Right or (b) during a calendar year under the limit set forth in Section 8.2. Unless the Participant has either withdrawn from the Plan as provided in Section 12.1 or has ceased to be an Eligible Employee, payroll deductions
shall be resumed at the rate specified in the Participant’s then effective Subscription Agreement either (i) at the beginning of the next Offering Period if the reason for suspension was clause (a) in the preceding sentence or
(ii) at the beginning of the next Offering Period having a first Purchase Date that falls within the subsequent calendar year if the reason for suspension was clause (b) in the preceding sentence. 
 10.5 Participant Accounts. Individual bookkeeping accounts shall be maintained for each Participant. All payroll deductions from a
Participant’s Compensation (and other amounts received from the Participant in a Pre-Registration Offering Period pursuant to Section 11.1(b) or a non-United States Participant pursuant to Section 11.1(c)) shall be credited to such
Participant’s Plan account and shall be deposited with the general funds of the Company. All such amounts received or held by the Company may be used by the Company for any corporate purpose. 
 10.6 No Interest Paid. Interest shall not be paid on sums deducted from a Participant’s Compensation pursuant to the Plan or otherwise
credited to the Participant’s Plan account. 
 11. PURCHASE OF
SHARES. 
 11.1 Exercise of Purchase Right. 
 (a) Generally. Except as provided in Section 11.1(b) and Section 11.1(c), on each Purchase Date of an Offering Period, each Participant
who has not withdrawn from the Plan and whose participation in the Offering has not otherwise terminated before such Purchase Date shall automatically acquire pursuant to the exercise of the Participant’s Purchase Right the number of whole
shares of Stock determined by dividing (a) the total amount of the Participant’s payroll deductions accumulated in the Participant’s Plan account during the Offering Period and not previously applied toward the purchase of Stock by
(b) the Purchase Price. However, in no event shall the number of shares purchased by the Participant during an Offering Period exceed the number of shares subject to the Participant’s Purchase Right. No shares of Stock shall be purchased
on a Purchase Date on behalf of a Participant whose participation in the Offering or the Plan has terminated before such Purchase Date. 
  

 12 

 (b) Purchase in Pre-Registration Period. Notwithstanding Section 11.1(a), on the Purchase
Date of a Pre-Registration Offering Period, each Participant who has not withdrawn from the Plan and whose participation in such Offering Period has not otherwise terminated before such Purchase Date shall automatically acquire pursuant to the
exercise of the Participant’s Purchase Right (i) a number of whole shares of Stock determined in accordance with Section 11.1(a) to the extent of the total amount of the Participant’s payroll deductions accumulated in the
Participant’s Plan account during the Pre-Registration Offering Period, if any, and not previously applied toward the purchase of Stock and (ii) such additional shares of Stock (not exceeding in the aggregate the Participant’s
Purchase Right) as determined in accordance with a Cash Exercise Notice delivered to the office designated by the Company no earlier than the applicable Registration Date and not later than the close of business for such office on the business day
immediately preceding the Purchase Date or such earlier date as the Company shall establish, accompanied by payment of the Purchase Price for such additional shares in cash or by check. However, in no event shall the number of shares purchased by a
Participant during the Pre-Registration Offering Period exceed the number of shares subject to the Participant’s Purchase Right. In addition, if a Participant delivers a Subscription Agreement to the Company after the applicable Registration
Date, the Participant may not elect to exercise a Purchase Right pursuant to a Cash Exercise Notice in an amount which, when aggregated with payroll deductions pursuant to such Subscription Agreement, exceeds fifteen percent (15%) of the
Participant’s Compensation during the Pre-Registration Offering Period. The Company shall refund to the Participant in accordance with Section 11.4 any excess Purchase Price payment received from the Participant. 
 (c) Purchase by Non-United States Participants for Whom Payroll Deduction Are Prohibited by Applicable Law. Notwithstanding Section 11.1(a),
where payroll deductions on behalf of Participants who are residents for income tax purposes of countries other than the United States are prohibited by applicable law (each, a “non-United States Participant”),
the Committee shall provide another method for payment of the Purchase Price of the shares with such terms and conditions as shall be administratively convenient and comply with applicable law. On each Purchase Date of an Offering Period, each such
non-United States Participant who has not withdrawn from the Plan and whose participation in such Offering Period has not otherwise terminated before such Purchase Date shall automatically acquire pursuant to the exercise of the Participant’s
Purchase Right (i) a number of whole shares of Stock determined in accordance with Section 11.1(a) to the extent of the total amount of the Participant’s Plan account balance accumulated during the Offering Period in accordance with
the method established by the Committee and not previously applied toward the purchase of Stock. However, in no event shall the number of shares purchased by a non-United States Participant during the Offering Period exceed the number of shares
subject to the Participant’s Purchase Right. The Company shall refund to the non-United States Participant in accordance with Section 11.4 any excess Purchase Price payment received from such Participant. 
 11.2 Pro Rata Allocation of Shares. If the number of shares of Stock which might be purchased by all Participants on a Purchase Date exceeds the
number of shares of Stock available in the Plan as provided in Section 4.1 or the maximum aggregate number of shares of Stock that may be purchased on such Purchase Date pursuant to a limit established by the Committee pursuant to
Section 8.1, the Company shall make a pro rata allocation of the shares available in as uniform a manner as practicable and as the Company determines to be equitable. 

  

 13 

 
Any fractional share resulting from such pro rata allocation to any Participant shall be disregarded. 
 11.3 Delivery of Certificates. As soon as practicable after each Purchase Date, the Company shall arrange the delivery to each Participant of a
certificate representing the shares acquired by the Participant on such Purchase Date; provided that the Company may deliver such shares to a broker designated by the Company that will hold such shares for the benefit of the Participant. Shares to
be delivered to a Participant under the Plan shall be registered in the name of the Participant, or, if requested by the Participant, in the name of the Participant and his or her spouse, or, if applicable, in the names of the heirs of the
Participant. 
 11.4 Return of Plan Account Balance. Any cash balance remaining in a Participant’s Plan account following any
Purchase Date shall be refunded to the Participant as soon as practicable after such Purchase Date. However, if the cash balance to be returned to a Participant pursuant to the preceding sentence is less than the amount that would have been
necessary to purchase an additional whole share of Stock on such Purchase Date, the Company may retain the cash balance in the Participant’s Plan account to be applied toward the purchase of shares of Stock in the subsequent Purchase Period or
Offering Period. 
 11.5 Tax Withholding. At the time a Participant’s Purchase Right is exercised, in whole or in part, or at the
time a Participant disposes of some or all of the shares of Stock he or she acquires under the Plan, the Participant shall make adequate provision for the federal, state, local and foreign tax withholding obligations, if any, of the Participating
Company Group which arise upon exercise of the Purchase Right or upon such disposition of shares, respectively. The Participating Company Group may, but shall not be obligated to, withhold from the Participant’s compensation the amount
necessary to meet such withholding obligations. 
 11.6 Expiration of Purchase Right. Any portion of a Participant’s Purchase
Right remaining unexercised after the end of the Offering Period to which the Purchase Right relates shall expire immediately upon the end of the Offering Period. 
 11.7 Provision of Reports and Shareholder Information to Participants. Each Participant who has exercised all or part of his or her Purchase Right shall receive, as soon as practicable after the Purchase Date,
a report of such Participant’s Plan account setting forth the total amount credited to his or her Plan account prior to such exercise, the number of shares of Stock purchased, the Purchase Price for such shares, the date of purchase and the
cash balance, if any, remaining immediately after such purchase that is to be refunded or retained in the Participant’s Plan account pursuant to Section 11.4. The report required by this Section may be delivered in such form and by
such means, including by electronic transmission, as the Company may determine. In addition, each Participant shall be provided information concerning the Company equivalent to that information provided generally to the Company’s common
shareholders. 
 12. WITHDRAWAL FROM PLAN. 
 12.1 Voluntary Withdrawal from the Plan. A Participant may withdraw from the Plan by signing and delivering to the Company’s designated office
a written or 
  

 14 

 electronic notice of withdrawal on a form provided by the Company for this purpose. Such withdrawal may be elected at any
time prior to the end of an Offering Period; provided, however, that if a Participant withdraws from the Plan after a Purchase Date, the withdrawal shall not affect shares of Stock acquired by the Participant on such Purchase Date. A Participant who
voluntarily withdraws from the Plan is prohibited from resuming participation in the Plan in the same Offering from which he or she withdrew, but may participate in any subsequent Offering by again satisfying the requirements of Sections 5 and 7.1.
The Company may impose, from time to time, a requirement that the notice of withdrawal from the Plan be on file with the Company’s designated office for a reasonable period prior to the effectiveness of the Participant’s withdrawal.

 12.2 Return of Plan Account Balance. Upon a Participant’s voluntary withdrawal from the Plan pursuant to Section 12.1,
the Participant’s accumulated Plan account balance which has not been applied toward the purchase of shares of Stock shall be refunded to the Participant as soon as practicable after the withdrawal, without the payment of any interest, and the
Participant’s interest in the Plan and the Offering shall terminate. Such amounts to be refunded in accordance with this Section may not be applied to any other Offering under the Plan. 
 13. TERMINATION OF EMPLOYMENT OR ELIGIBILITY.

 Upon a Participant’s ceasing, prior to a Purchase Date, to be an Employee of the Participating Company Group for any reason, including
retirement, disability or death, or upon the failure of a Participant to remain an Eligible Employee, the Participant’s participation in the Plan shall terminate immediately. In such event, the Participant’s Plan account balance which has
not been applied toward the purchase of shares shall, as soon as practicable, be returned to the Participant or, in the case of the Participant’s death, to the Participant’s beneficiary designated in accordance with Section 20, if
any, or legal representative, and all of the Participant’s rights under the Plan shall terminate. Interest shall not be paid on sums returned pursuant to this Section 13. A Participant whose participation has been so terminated may again
become eligible to participate in the Plan by satisfying the requirements of Sections 5 and 7.1. 
 14. EFFECT
OF CHANGE IN CONTROL ON PURCHASE RIGHTS. 
 In the event of a Change in Control, the surviving, continuing, successor, or purchasing corporation or parent thereof, as the case may be (the “Acquiring Corporation”), may,
without the consent of any Participant, either assume or continue the Company’s rights and obligations under outstanding Purchase Rights or substitute substantially equivalent purchase rights for the Acquiring Corporation’s stock. If the
Acquiring Corporation elects not to assume or continue the Company’s rights and obligations under outstanding Purchase Rights, the Purchase Date of the then current Offering Period shall be accelerated to a date before the date of the Change in
Control specified by the Committee, but the number of shares of Stock subject to outstanding Purchase Rights shall not be adjusted. All Purchase Rights which are neither assumed or continued by the Acquiring Corporation in connection with the Change
in Control nor exercised as of the date of the Change in Control shall terminate and cease to be outstanding effective as of the date of the Change in Control. 
  

 15 

 15. NONTRANSFERABILITY OF PURCHASE
RIGHTS. 
 Neither payroll deductions or other amounts credited to a Participant’s Plan account nor
a Participant’s Purchase Right may be assigned, transferred, pledged or otherwise disposed of in any manner other than as provided by the Plan or by will or the laws of descent and distribution. (A beneficiary designation pursuant to
Section 20 shall not be treated as a disposition for this purpose.) Any such attempted assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from the
Plan as provided in Section 12.1. A Purchase Right shall be exercisable during the lifetime of the Participant only by the Participant. 
 16. COMPLIANCE WITH SECURITIES LAW. 
 The
issuance of shares under the Plan shall be subject to compliance with all applicable requirements of federal, state and foreign law with respect to such securities. A Purchase Right may not be exercised if the issuance of shares upon such exercise
would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any securities exchange or market system upon which the Stock may then be listed. In addition, no Purchase
Right may be exercised unless (a) a registration statement under the Securities Act shall at the time of exercise of the Purchase Right be in effect with respect to the shares issuable upon exercise of the Purchase Right, or (b) in the
opinion of legal counsel to the Company, the shares issuable upon exercise of the Purchase Right may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. The inability of the
Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares under the Plan shall relieve the Company of any liability
in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to the exercise of a Purchase Right, the Company may require the Participant to satisfy any qualifications that
may be necessary or appropriate, to evidence compliance with any applicable law or regulation, and to make any representation or warranty with respect thereto as may be requested by the Company. 
 17. RIGHTS AS A SHAREHOLDER AND
EMPLOYEE. 
 A Participant shall have no rights as a shareholder by virtue of the Participant’s
participation in the Plan until the date of the issuance of the shares purchased pursuant to the exercise of the Participant’s Purchase Right (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such shares are issued, except as provided in Section 4.2. Nothing herein shall confer upon a
Participant any right to continue in the employ of the Participating Company Group or interfere in any way with any right of the Participating Company Group to terminate the Participant’s employment at any time. 
  

 16 

 18. LEGENDS. 
 The Company may at any time place legends or other identifying symbols referencing any applicable federal, state or foreign securities law restrictions or
any provision convenient in the administration of the Plan on some or all of the certificates representing shares of Stock issued under the Plan. The Participant shall, at the request of the Company, promptly present to the Company any and all
certificates representing shares acquired pursuant to a Purchase Right in the possession of the Participant in order to carry out the provisions of this Section. Unless otherwise specified by the Company, legends placed on such certificates may
include but shall not be limited to the following: 
 “THE SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED BY THE CORPORATION TO THE REGISTERED HOLDER
UPON THE PURCHASE OF SHARES UNDER AN EMPLOYEE STOCK PURCHASE PLAN AS DEFINED IN SECTION 423 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. THE TRANSFER AGENT FOR THE SHARES EVIDENCED HEREBY SHALL NOTIFY THE CORPORATION IMMEDIATELY OF ANY
TRANSFER OF THE SHARES BY THE REGISTERED HOLDER HEREOF. THE REGISTERED HOLDER SHALL HOLD ALL SHARES PURCHASED UNDER THE PLAN IN THE REGISTERED HOLDER’S NAME (AND NOT IN THE NAME OF ANY NOMINEE).” 
 19. NOTIFICATION OF DISPOSITION OF SHARES.

 The Company may require the Participant to give the Company prompt notice of any disposition of shares acquired by exercise of a Purchase
Right. The Company may require that until such time as a Participant disposes of shares acquired upon exercise of a Purchase Right, the Participant shall hold all such shares in the Participant’s name (or, if elected by the Participant, in the
name of the Participant and his or her spouse but not in the name of any nominee) until the later of two years after the date of grant of such Purchase Right or one year after the date of exercise of such Purchase Right. The Company may direct that
the certificates evidencing shares acquired by exercise of a Purchase Right refer to such requirement to give prompt notice of disposition. 
 20. DESIGNATION OF BENEFICIARY. 
 20.1 Designation
Procedure. Subject to local laws and procedures, a Participant may file a written designation of a beneficiary who is to receive (a) shares and cash, if any, from the Participant’s Plan account if the Participant dies subsequent to a
Purchase Date but prior to delivery to the Participant of such shares and cash or (b) cash, if any, from the Participant’s Plan account if the Participant dies prior to the exercise of the Participant’s Purchase Right. If a married
Participant designates a beneficiary other than the Participant’s spouse, the effectiveness of such designation may be subject to the consent of the Participant’s spouse. A Participant may change his or her beneficiary designation at any
time by written notice to the Company. 
 20.2 Absence of Beneficiary Designation. If a Participant dies without an effective
designation pursuant to Section 20.1 of a beneficiary who is living at the time of the 

  

 17 

 
Participant’s death, the Company shall deliver any shares or cash credited to the Participant’s Plan account to the Participant’s legal
representative or as otherwise required by applicable law. 
 21. NOTICES. 
 All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when
received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 
 22.
AMENDMENT OR TERMINATION OF THE PLAN. 
 The Committee may at any time amend, suspend or terminate the Plan, except that (a) no such amendment, suspension or termination shall affect Purchase Rights previously granted under the Plan unless expressly
provided by the Committee and (b) no such amendment, suspension or termination may adversely affect a Purchase Right previously granted under the Plan without the consent of the Participant, except to the extent permitted by the Plan or as may
be necessary to qualify the Plan as an employee stock purchase plan pursuant to Section 423 of the Code or to comply with any applicable law, regulation or rule. In addition, an amendment to the Plan must be approved by the shareholders of the
Company within twelve (12) months of the adoption of such amendment if such amendment would authorize the sale of more shares than are then authorized for issuance under the Plan or would change the definition of the corporations that may be
designated by the Committee as Participating Companies. Notwithstanding the foregoing, in the event that the Committee determines that continuation of the Plan or an Offering would result in unfavorable financial accounting consequences to the
Company, the Committee may, in its discretion and without the consent of any Participant, including with respect to an Offering Period then in progress: (a) terminate the Plan or any Offering Period, (b) accelerate the Purchase Date of any
Offering Period, (c) reduce the discount or the method of determining the Purchase Price in any Offering Period (e.g., by determining the Purchase Price solely on the basis of the Fair Market Value on the Purchase Date), (d) reduce the
maximum number of shares of Stock that may be purchased in any Offering Period or (e) take any combination of the foregoing actions. 
 IN WITNESS WHEREOF, the undersigned Secretary of the Company certifies that the foregoing sets forth the Imperium Renewables, Inc. 2007 Employee Stock Purchase Plan as duly adopted by the Board on
                    , 2007. 
  

	
	  

	 Secretary

  

 18 

 PLAN HISTORY 
  

			
	May 22, 2007	  	Board adopts Plan with a reserve of 500,000 shares, cumulatively increased on January 1, 2008 and each subsequent January 1, through and including January 1, 2017 by a number of shares equal to
the lesser of (i) 1.0% of the number of shares of Stock issued and outstanding on the immediately preceding March 31, (ii) 100,000 shares or (ii) an amount determined by the Board.
		
	                    , 2007	  	Shareholders approve Plan.
		
	                    , 2007	  	Date on which initial Offering Period commenced.

 APPENDIX A 
 Participating Companies 
 Imperium Renewables, Inc. 
 Imperium Holdco I, LLC 
 NewRefCo Northwest Inc. 
 Seattle Biodiesel, LLC 
 Imperium Logistics, LLC 
 Imperium Renewables Hawaii LLC 
 Imperium Services LLC 
 Imperium Process Technologies, LLC 
 Imperium Grays Harbor, LLC 

 APPENDIX B 
 FORMS OF 
 SUBSCRIPTION AGREEMENT 
 AND 
 NOTICE OF WITHDRAWAL 

 IMPERIUM RENEWABLES, INC. 
 2007 EMPLOYEE STOCK PURCHASE PLAN 
 SUBSCRIPTION AGREEMENT 
 NAME (Please
print):                                       
                                        
                                        
                                        
                    
           (Last)                            
                                      (First) 
                                        
                       (Middle) 
  

	  ̈
	 Original application for the Offering Period beginning on (date):
                             

  

	  ̈
	 Decrease payroll deduction rate effective with the pay period beginning on or after (date):
                             

  

	  ̈
	 Stop payroll deductions effective with the pay period beginning on or after (date):
                             

  

	  ̈
	 Change of beneficiary. 

 I. SUBSCRIPTION 
 I elect to participate in the 2007 Employee Stock Purchase Plan (the
“Plan”) of Imperium Renewables, Inc. (the “Company”) and to subscribe to purchase shares of the Company’s Common Stock in accordance with this Subscription Agreement and the Plan. Capitalized terms used in this
Subscription Agreement have the meanings assigned by the Plan. 
 I authorize payroll deductions of
             percent (in whole percentages, not less than 1%, unless an election to stop deductions is being made, and not more than 15%) of my Compensation on each pay day
throughout the Offering Period in accordance with the Plan. I understand that these payroll deductions will be accumulated for the purchase of shares of Common Stock at the applicable purchase price determined in accordance with the Plan. Except as
otherwise provided by the Plan, I will automatically purchase shares on each Purchase Date unless I withdraw from the Plan by giving written notice on a form provided by the Company or unless my eligibility or employment terminates. 
 I understand that any election I make is subject to the terms and conditions of the Plan and the Plan’s administrative practices and procedures.

 I understand that I will automatically participate in each subsequent Offering that commences immediately after the last day of an
Offering in which I am participating until I withdraw from the Plan by giving written notice on a form provided by the Company or my eligibility or employment terminates. 
 Shares I purchase under the Plan should be issued in the name(s) set forth below. (Shares may be issued in the participant’s name alone or together with the participant’s spouse as community property or in
joint tenancy.) 
 NAME(S) (please print):                                 
                                        
                                        
                                        
              
 ADDRESS:                                     
                                        
                                        
                                        
                                
 MY SOCIAL SECURITY NUMBER:                               
                                        
                                        
                                   
 I agree to make adequate provision for the federal, state, local and foreign tax withholding obligations, if any, which arise upon my purchase of shares
under the Plan and/or my disposition of shares. The Company may withhold from my compensation the amount necessary to meet such withholding obligations. 
  

 1 

 I agree that, unless otherwise permitted by the Company, until I dispose of shares I purchase under the
Plan, I will hold such shares in the name(s) entered above (and not in the name of any nominee) until the later of (i) two years after the first day of the Offering Period in which I purchased the shares and (ii) one year after the
Purchase Date on which I purchased the shares. This restriction only applies to the name(s) in which shares are held and does not affect my ability to dispose of Plan shares. 
 I agree that I will notify the Chief Financial Officer of the Company in writing within 30 days after any sale, gift, transfer or other disposition of
any kind prior to the end of the periods referred to in the preceding paragraph (a “Disqualifying Disposition”) of any shares I purchased under the Plan. If I do not respond within 30 days of the date of a Disqualifying Disposition Survey
delivered to me by certified mail, the Company is authorized to treat my nonresponse as my notice to the Company of a Disqualifying Disposition and to compute and report to the Internal Revenue Service the ordinary income I must recognize upon such
Disqualifying Disposition. 
 II. BENEFICIARY DESIGNATION 
 In the event of my death, I designate the following as my beneficiary to receive all payments and shares then due me under the Plan: 
  

							
	 BENEFICIARY’S NAME (please print):
	  	  

		  	(First)                    	  	 (Middle)
	  	(Last)

  

							
	RELATIONSHIP:
                                    	  	SOC. SEC. NO.:                                  
                                   
	
	ADDRESS:                                     
                                        
                                        
                                       
 

 If you are married and your beneficiary is someone other than your spouse, then your spouse must
sign and date this form as indicated below. If you are not married when you designate a beneficiary and you later become married, or if you later become married to a different person, the beneficiary designation previously made will be automatically
revoked. Payments and shares then due you upon your death will be delivered to your legal representative unless you have completed a new beneficiary designation and it is consented to by your then spouse. 
 III. CONSENT OF SPOUSE 
 I am the spouse of
                                        
         . I consent to the above designation of a beneficiary other than me to receive payments and shares due my spouse under the Plan. 
  

					
	 Date:
                            
	 		 	  

		 		 	Signature of Participant’s Spouse

 IV. PARTICIPANT DECLARATION 
 Any election I have made on this form revokes all prior elections with regard to this form. 
 I am familiar
with the provisions of the Plan and agree to participate in the Plan subject to all of its provisions. I understand that the Board of Directors of the Company reserves the right to terminate the Plan or to amend the Plan and my right to purchase
stock under the Plan to the extent provided by the Plan. I understand that the effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the Plan. 
  

					
	 Date:
                            
	 		 	  

		 		 	Signature of Participant

  

 2 

 IMPERIUM RENEWABLES, INC. 
 2007 EMPLOYEE STOCK PURCHASE PLAN 
 NOTICE OF WITHDRAWAL 
 NAME (Please
print):                                       
                                        
                                        
                                        
                    
           (Last)                            
                                      (First) 
                                        
                       (Middle) 
 I elect to withdraw from the Imperium Renewables, Inc. 2007 Employee Stock Purchase Plan (the “Plan”) and the Offering which began on (date)
                             and in which I am participating (the “Current
Offering”). 
 I understand that I am terminating immediately my interest in the Plan and the Current Offering, and that no further
payroll deductions will be made (provided I have given sufficient notice before the next pay day). My payroll deductions not previously used to purchase shares will not be used to purchase shares in the Current Offering, but instead will be
paid to me as soon as practicable. I understand that I will not participate in the Plan unless I elect to become a participant in another Offering by filing a new Subscription Agreement with the Company. I understand that I will receive no interest
on the amounts paid to me from my Plan account, and that I may not apply such amounts to any other Offering under the Plan or any other employee stock purchase plan of the Company. I understand that any election I make is subject to the terms and
conditions of the Plan and the Plan’s administrative practices and procedures. 
  

					
	 Date:
                            
	 		 	Signature:Construction Agreement

 Exhibit 10.7 
 IMPERIUM GRAYS HARBOR LLC 
 CONSTRUCTION AGREEMENT 
 COST PLUS FEE 
 THIS AGREEMENT is made
effective this 25th day of August, 2006, by and between Imperium Grays Harbor LLC, a Washington limited liability company (the “Owner”) and JH Kelly LLC, a Washington limited liability company (the “Contractor”). Each of the
Owner and the Contractor may be referred to as a “Party” and collectively as the “Parties.” 
 1. The Work. The
Contractor agrees to furnish and pay for all supervision, contract administration, services, labor, materials, equipment, tools, and other costs necessary to perform all requirements of the Contract Documents (as hereinafter defined) for the scope
of work described on Exhibit A, a form of which is attached hereto, said Work (hereinafter defined) to performed as part of Owner’s biodiesel production facility located at Grays Harbor, Washington (the “Project”). The Contractor
shall perform the Work in a workmanlike manner and in strict accordance with this Agreement. The Contractor shall be solely responsible for all construction means, methods, techniques, sequences, procedures, and safety precautions or programs, and
for supervising, coordinating and performing all of the work. The Agreement contains the general terms and conditions which will govern all future specifications and scope intended to be issued to and performed by Contractor with respect to the
Project. The parties acknowledge and agree that the Project involves several discrete “phases” of Work, and each phase to be performed by Contractor shall be incorporated into this Agreement by an amendment executed by both Parties. Each
amendment shall be consecutively numbered (e.g. Exhibit A1, Exhibit A2, etc) and shall describe and detail: (i) the scope of work to be performed; (ii) the Cost of the Work (as defined in Section 5) and the Contractor’s Fee (as
defined in Section 4) for the work to be performed; (iii) any attendant and requisite changes to the Project Schedule, Preliminary Schedule of Values, required completion dates, liquidated damages, or fees; and (iv) any other changes
to the Agreement terms and conditions necessitated by the particular phase of work. All work described and incorporated on any Exhibit A hereto shall be collectively referred to as the “Work”. 
 1.1 The Contractor agrees that Steve Dahl shall serve as the Project Manager of the Contractor for the Work and, in that capacity, he shall be responsible
for personally managing and administering the performance of the Contractor’s obligations under this Agreement, subject to his continuing employment by Contractor and the needs, staffing and skill requirements of the specific Project stage).
The Project Superintendent of the Contractor for the Project will be mutually agreed upon by the Parties. Provided they remain in the employ of or otherwise affiliated with the Contractor, the persons referenced in this Section shall not be replaced
without the prior written approval of the Owner. The Owner shall have the right to approve persons proposed as replacements for the Project Manager and Project Superintendent. The Owner’s approvals under this Section shall not unreasonably be
withheld. Furthermore, the Contractor agrees that the primary members of the Contractor’s Project team will be available to perform the Work on throughout its duration. 

 1.2 The Contractor agrees that throughout the Project’s duration, the Contractor will have
sufficient resources available to perform and complete the Work in accordance with the Project Schedule (as defined in Exhibit D). Furthermore, the Contractor represents and warrants that any labor or other agreement it may have with its employees
or any entity representing them does not expire prior to the Guaranteed Completion Date (as hereinafter defined); provided however, that the collective bargaining agreements governing craft labor required for the performance of the Work do contain
wage escalation provisions that may increase wage rates and, accordingly, the costs of labor over the course of the Project. Copies of these agreements will be made available to the Owner upon request. 
 2. Contract Documents. The Contract Documents shall be defined as the following, which are all incorporated herein by this reference: 

This Agreement. 
 Scope of Work or
“Work”, including without limitation the Drawings and Specifications listed therein, attached as Exhibit A. 
 Preliminary
Schedule of Values, attached as Exhibit B, provided solely as a preliminary estimate of cash flow needs for the Owner 
 Form of
Waivers and Releases, attached as Exhibit C. 
 Project Schedule, attached as Exhibit D. 
 Contractor Rates as of the effective date of Agreement: Craft Rates, Equipment Rates and Fabrication Rates, , attached as Exhibit E. 
 Form of Subcontractors’ Express Warranties, attached as Exhibit F. 
 In the event of conflicts or inconsistencies between or among the Contract Documents, this Agreement shall take precedence over the Scope of Work (including without limitation its Drawings and Specifications), the
Drawings shall take precedence over the Specifications, and larger-scale detailed Drawings shall take precedence over smaller scale general Drawings. In the event of any remaining conflicts or inconsistencies between or among the Contract Documents,
the Contractor shall perform the higher quality and the greater quantity of the Work except as directed in advance of the Work in writing by the Owner to do otherwise. 
 3. Total Price. The Owner shall pay the Contractor for the Contractor’s performance of its obligations under this Agreement the Cost of the Work (as defined in Section 5) plus the
Contractor’s Fee (as defined in Section 4). 
  

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 4. Contractor’s Fee. The Contractor’s Fee shall be as specified on Exhibit A (the
“Contractor’s Fee”). The Contractor’s Fee shall be compensation for all of the Contractor’s costs not included in the Cost of the Work. In the event that change orders and/or added or deleted Work increase or decrease the
total Cost of Work over the sum specified on the applicable Exhibit A, then Contractor’s Fee shall be increased or decreased in accordance with the formula set forth in Section 10.2 for all amounts over or below said threshold. 

5. Cost of the Work. The Cost of the Work shall be limited to costs reasonably incurred by the Contractor in the proper performance of the Work
(as further described below, the “Cost of the Work”), which shall exclude any components supplied by Owner or others. Contractor equipment, labor and supervision shall in be billed in accordance with Contractor’s then current rate
schedules (the version effective as of the execution date of this Agreement is attached hereto as Exhibit E). All remaining costs shall be at rates comparable to the standard paid at the place of the Project . Contractor is directed to employ a
forty (40) hour work week and not utilize overtime or premium time rates or incur material or equipment expediting costs, unless the Owner has approved the use of such overtime or premium time or expediting costs in writing in advance. In
addition, Contractor shall keep Owner regularly apprised of crew sizes and shall provide written monthly reports documenting actual versus estimated man-hours expended in the course of the Work. The Cost of the Work shall include only the items set
forth in this Section 5, as follows: 
 5.1 Wages of construction workers directly employed by the Contractor to perform the construction
of the Work at the site or in Contractor’s fabrication facilities. 
 5.2 Wages of construction workers directly employed by the
Contractor to perform the construction of the Work at locations other than the site, provided that the nature and scope of such off-site Work is approved in writing in advance by the Owner. 
 5.3 Wages or salaries of the Contractor’s supervisory and administrative personnel wherever located or engaged, but only for that portion of their
time required for and directly related to the performance of the Work. 
 5.4 Costs paid or incurred by the Contractor for employee-related
insurance, contributions, assessments, travel, subsistence and benefits required by law or collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as employee-related insurance, contributions,
assessments, sick leave, medical and health benefits, holidays, vacations and pensions, provided such costs are based on wages and salaries included in the Cost of the Work under Paragraphs 5.1, 5.2, and 5.3. 
 5.5 Actual payments made by the Contractor to Subcontractors in accordance with the requirements of the applicable subcontracts and supply contracts, and
subject to the provisions of Section 26 and its subparagraphs. As used in this Agreement, the term “Subcontractors” shall include all subcontractors and suppliers under a direct contract with Contractor. 
  

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 5.6 Costs, including transportation and installation, of materials and equipment incorporated or to be
incorporated in the completed Project. Costs, including transportation, installation, maintenance, dismantling and removal, of materials, supplies, temporary facilities, machinery, equipment and hand tools not customarily owned by the construction
workers which are provided by the Contractor at the site and fully consumed in the performance of the Work; and cost less salvage value on such items if not fully consumed, whether sold to others or retained by the Contractor. Cost for items
previously used by the Contractor shall be fair market value. 
 5.7 Rental costs of machinery and equipment used in the performance of the
Work; provided that in no event shall such rental costs paid for particular items of machinery or equipment exceed the market rate purchase price of such items. 
 5.8 Costs of installing equipment and components furnished by the Owner (“Owner-Furnished Components”). 
 5.9 Costs of removal and disposal of debris from the Project site. 
 5.10 Premiums for insurance, to the extent of the portion
directly attributable to this Agreement. 
 5.11 Costs of permits, fees, tests and inspections paid by the Contractor pursuant to
Section 20. 
 5.12 Costs relating to any general conditions and overhead reasonably allocable to the Work and not to any other project.
These costs include items such as utilities, telecommunications, water coolers, portable toilets, etc. 
 5.13 Cost of the building permit,
if obtained by the Contractor; provided, that this cost shall not be subject to Contractor’s markup or fee. 
 5.14 Other costs incurred
in the performance of the Work if and to the extent approved in advance in writing by the Owner. 
 6. Costs Not to be Reimbursed. The
Cost of the Work shall, except to the extent reasonably allocable to the Work or the Project, exclude the following: 
 6.1 Wages, salaries
and other compensation of the Contractor’s and Subcontractors’ personnel for their time not required for the performance of the Work. 
 6.2 Expenses of the Contractor’s principal office and other offices, 
 6.3 Overhead, “soft” general conditions
costs, and other general expenses. 
  

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 6.4 The Contractor’s capital expenses, including interest on the Contractor’s capital employed
for the Work. 
 6.5 The Owner’s costs in furnishing Owner-Furnished Components. 
 6.6 Costs due to the fault or negligence of the Contractor, Subcontractors, or anyone directly or indirectly employed by any of them or for whose acts
any of them may be liable, including but not limited to costs of correcting, retesting and reinspecting damaged, defective or nonconforming Work, disposal and replacement of materials and equipment incorrectly ordered or supplied, and making good
damage to property not forming part of the Work. 
 6.7 Any cost not specifically and expressly described in Section 5. 
 7. Financing Arrangements. The Owner either has or will obtain financing for the work to be performed under this Agreement. Upon execution of this
Agreement or as soon thereafter as reasonably possible, the Owner shall provide the Contractor with evidence of financing in a mutually agreeable form, which shall include a deposit of the Contract Price, including any bonus potentially payable to
the Contractor, in a bank account in the name of the Contractor or its affiliate. Evidence of such financing shall be a condition precedent to the Contractor’s commencing or continuing the Work. The Contractor shall be notified prior to any
material change in financing. 
 8. Payment. The Owner shall pay the Contractor the Contract Price in monthly progress payments plus a
final payment, as set out in this Section 8. Progress payments shall reflect the actual Cost of Work and the allocable portion of Contractor’s Fee for said period, but Contractor shall endeavor to perform the Work and bill in accordance
with the Preliminary Schedule of Values attached as Exhibit B. The Preliminary Schedule of Values shall be updated from time to time by the Contractor to account for actual Work progress, changes in the Work or Project Schedule, Change Orders
(as defined in Section 10) and allocation of contingencies. Final payment shall be made upon Mechanical Completion of the Work, subject to the provisions of Section 8.2. 
 8.1 The Contractor’s applications for progress payments, together with such waivers and releases, Cost of the Work documentation and cost data, and
other documentation as the Owner or its lender or engineer reasonably shall require, shall be submitted to the Owner no later than the fifth (5th) day of each month, and the Owner shall make payment via wire transfer to the Contractor no later
than fifteen (15) days after receipt of Contractor’s application for a progress payment. The Owner shall make final payment no later than fifteen (15) days after receipt of Contractor’s application for final payment, together
with such waivers and releases, Cost of the Work documentation and cost data, warranties, operations and maintenance manuals, keys, record drawings, and other documentation and items as the Owner reasonably shall require. The Owner and Contractor
agree that the waivers and releases to be submitted under this Paragraph 8.1 shall be in the form set out in Exhibit C. The Owner and Contractor also agree 

  

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that such waivers and releases shall be executed by the Contractor and those from whom the Owner may reasonably require them. 
 8.2 The Owner may withhold all or a portion of a progress payment or final payment on account of (1) incomplete Work, (2) defective or
nonconforming Work, (3) claims filed or a reasonable basis to believe that such claims will be filed imminently, (4) failure of the Contractor to make payments properly for labor, services, materials, equipment or subcontracts, (5) damages
caused to the Owner or another party by Contractor or those under Contractor’s control, or (6) failure to carry out the Work in accordance with this Agreement, all as determined by Owner in its reasonable discretion. In so doing, the Owner
may withhold up to one hundred fifty percent (150%), respectively, of (1) the cost to complete such incomplete Work, (2) the cost to cure such defective or nonconforming Work, (3) the amount of such claims, (4) the amount of such
payments not made, (5) the amount of such damages, and (6) all costs reasonably necessary to cure any failure to carry out the Work in accordance with this Agreement. 
 8.3 The making of final payment shall constitute a waiver of all claims by the Owner except those expressly reserved in writing by the Owner at the time
of final payment and those arising from (1) unsettled construction lien or other claims, (2) defective, deficient, or nonconforming Work, (3) failure of the Work to comply with the requirements of this Agreement or (4) breach of
warranty. 
 8.4 Cash discounts obtained on payments made by the Contractor shall accrue to the Owner if, before making the payment, the
Contractor included them in an application for payment and received payment therefor from the Owner. The Contractor shall timely notify the Owner of all opportunities for such cash discounts. Trade discounts, rebates, refunds and amounts received
from sales of surplus materials and equipment shall accrue to the Owner, and the Contractor shall make provisions so that they can be secured. Amounts which accrue to the Owner in accordance with this provision shall be credited to the Owner as a
deduction from the Cost of the Work. 
 9. Contract Times. Time is of the essence of this Agreement, and specifically of the
provisions of this Section 9, which sets forth the times of performance for various components of this Agreement (the “Contract Times”). 
 9.1 The Contractor has already commenced performance of the Work pursuant to a Limited Notice to Proceed executed by the Owner and the Contractor on July 14, 2006. 
 9.2 Both the Owner and Contractor shall perform their obligations under this Agreement in compliance with the Project Schedule attached as Exhibit
D, subject to modifications of such Project Schedule consistent with changes in the Contract Times pursuant to Sections 10 and 13. 
  

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 9.3 The Contractor shall achieve Mechanical Completion (as hereinafter defined) of the Work not later
than the applicable date specified on Exhibit A, subject to changes in these Contract Times pursuant to Sections 10 and 13 (the “Guaranteed Mechanical Completion Date”). Mechanical Completion shall be achieved when: (i) the Work is
completed in accordance with this Agreement, except for punch list items; (ii) the Owner has received any required temporary or final certificate of occupancy from the governmental agency with jurisdiction over the Project; and (iii) the
registered architects or engineers who designed portions or components of the Work have issued certificates of Mechanical Completion as to those portions or components. The Owner shall not occupy or utilize the Work until it is mechanically
completed except as agreed in writing in advance by the Contractor. 
 9.4 The Contractor shall achieve Final Completion (as hereinafter
defined) of the Work not later than the applicable date specified on Exhibit A, subject to changes in these Contract Times pursuant to Sections 10 and 13 (the “Guaranteed Final Completion Date”). Final Completion shall be achieved when:
(i) Mechanical Completion of the Work has been acknowledged by the Owner and engineer in writing; (ii) final lien waivers and releases and other documents or inspections reasonably required by Owner’s engineer or lender have been
delivered; (iii) the Contractor has delivered the job books and as-built drawings; (iv) all the Contractor’s supplies, personnel and rubbish have been removed from the site; (v) all punch list items have been completed (or
otherwise resolved by agreement of the Owner and the Contractor; and (vi) Liquidated Damages, if applicable, have paid to Owner. 
 9.5
In lieu of actual delay damages, the Owner and Contractor agree that if Mechanical Completion is not achieved by the applicable Guaranteed Mechanical Completion Date, the amount of the Owner’s actual damages will be difficult to determine.
Accordingly, the Owner and the Contractor agree that in the event the Contractor fails to achieve Mechanical Completion by the applicable Guaranteed Mechanical Completion Date, the Contractor shall pay to the Owner as liquidated damages to
compensate the Owner for damages related to the delayed completion of the Work (“Liquidated Damages”) seventy-five thousand dollars per week ($75,000/week) for every calendar week Contractor fails to meet the Guaranteed Mechanical
Completion Date referenced in paragraph 9.3 (less then full weeks shall be pro-rated; provided, however, that the aggregate amount of liquidated damages cannot exceed six hundred thousand dollars ($600,000). 
 9.6 The Owner and Contractor agree that if Mechanical Completion for the Work occurs prior to the Guaranteed Mechanical Completion Date, the Owner shall
pay to the Contractor as a bonus seventy-five thousand dollars per week ($75,000/week) for every calendar week the Work reaches Mechanical Completion prior to its Guaranteed Mechanical Completion Date (less then full weeks shall be pro-rated);
provided that the aggregate amount of the bonus shall not exceed three hundred thousand dollars ($300,000). 
 10. Changes. Without
invalidating this Agreement, the Owner or Contractor may order changes in the Work within the general scope of this Agreement consisting of additions, deletions or other revisions (each a “Change Order”). It is expressly understood and
agreed that the Contractor shall not be entitled to additional compensation or an extension of the Contract 

  

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Times for any extra or additional work or for work outside the scope of the Agreement, except as set out in this Section 10. 
 10.1 The Owner and Contractor shall enter into a written Change Order signed by both parties stating the changed Work to be performed, any agreed changes
in the Contractor’s Fee, and any agreed changes in the Contract Times. Any extra or changed work performed without prior written direction or approval of Owner shall not be compensated by Owner. 
 10.2 If the Owner and Contractor are unable to agree on the changes in the Contractor’s Fee or the changes in the Contract Times, the Owner may
direct the Contractor in writing to perform the changed Work and the Contractor shall immediately perform such Work. In such case, and subject to Section 4 above, (i) the Contractor’s Fee shall be calculated in accordance with the
following mark-up schedule, as applied to the actual change in the Costs of the Work: 20% on staff labor and supervision; 15% on direct and fabrication labor; 10% on materials and equipment and 5% on Subcontractors; and (ii) the Contract Times
shall be adjusted based on the reasonable actual impact on the Contractor’s performance of the Work. If the parties are unable to agree on the changes in the Contractor’s Fee or in the Contract Times, the Owner shall determine any such
changes, which shall be subject to arbitration if demanded by the Contractor. 
 11. Site Investigation. The Contractor warrants that,
by examination, it has satisfied itself as to the general nature and location of the Work, the general character, quantity and kind of materials to be encountered, the equipment required and the general conditions and other matters which may in any
manner affect the Work. The Owner shall furnish all site surveys and legal descriptions required for the Work, if any, and Contractor shall be entitled to rely upon the same. Contractor expressly disclaims all liability for latent or subsurface
conditions. Notwithstanding the foregoing, Contractor shall be responsible for locating and managing the Work around any existing underground pipes and electrical lines. 
 12. Claims for Damages. If the Contractor has any claim for additional compensation or other damages against the Owner, the Contractor shall give the Owner written notice of such claim within ten (10) days
after the Contractor obtains knowledge of the event alleged to have given rise to the claim. If the Contractor fails to give such notice, the claim shall be deemed waived and forever discharged. 
 13. Delay. If the Contractor is ready, able and willing to work but is delayed at any time during the progress of the Work by any act or neglect
of the Owner, changes ordered in the Work or an event of Force Majeure (as defined in Section 38), the Contract Times shall be extended by the number of calendar days that the Work as a whole is delayed pursuant to this Section 13. The
Contractor shall submit any claim for an extension of time to the Owner, in writing, within ten (10) days after the commencement of the delay. Only one claim is necessary in the event of a continuing delay. The written claim for extension of
time shall state the number of days claimed and the reason for the delay. Any claim for a time extension which is not 

  

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presented in accordance with all requirements of this paragraph shall be deemed waived and forever discharged. 
 13.1 If adverse weather conditions or other events of Force Majeure are the basis for a claim for an extension of the Contract Times, such claim shall be
allowed only to the extent it is documented by data substantiating that the weather conditions (i) were unusually severe for the Aberdeen area during the period of time in question, (ii) unusually severe to be defined as occurrences of in
excess of 1.50 inches of precipitation for 2 or more consecutive days, and/or precipitation in excess of 2.00 inches of precipitation for 1 or more consecutive days, and/or precipitation in excess of 1.00 inches for 3 or more consecutive days, as
measured at Hoquiam’s Bowerman Airport, (iii) could not have been reasonably anticipated and (iiii) had an adverse effect on the scheduled performance of the Work. 
 13.2 An extension of the Contract Times shall be allowed only to the extent that such delay was not caused by any fault or negligence of the Contractor,
Subcontractors, anyone directly or indirectly employed by any of them or for whose acts any of them may be liable. 
 13.3 If the Work is
stopped or suspended by order of any court or governmental authority, within seven (7) days after receipt of notice that such Work stoppage or suspension is removed, the Contractor shall complete the Work as expeditiously as reasonably
possible. In the event of such stoppage or suspension, the Contractor shall be entitled to an extension in the Contract Times equal to the length of the delay (the length of the stoppage or suspension plus the seven (7) or fewer days after
notice within which the Contractor recommences the Work) plus an equitable increase in the Contractor’s Fee. 
 14. Contractor’s
Payment Obligations. The Contractor shall pay all of its obligations arising out of or in connection with the Work in a timely manner. Upon reasonable evidence that one or more Subcontractors have not been or will not be paid, the Owner may pay
any of the Contractor’s payment obligations directly to the claimant or by multiple payee check to the Contractor and the claimant and parties in intervening tiers, if any, and deduct the amount of such payment from amounts due or to become due
to the Contractor. Upon the Owner’s written request, the Contractor shall furnish to the Owner all information required to facilitate such direct or multiple payee payments, including without limitation a complete listing of outstanding amounts
owed to all Subcontractors. 
 15. Liens. The Contractor shall keep the Project and Project property free and clear of all
construction liens arising out of the Work. If any liens arising out of the Work are filed by any person or entity, including without limitation any Subcontractor, the Contractor shall, at its cost and within ten (10) days after demand from the
Owner, satisfy said lien or post and perfect a bond under applicable law so as to remove the lien from the Project and Project property. The above notwithstanding, nothing herein shall preclude or deprive Contractor of the right to file and maintain
a lien on the Project or Project property in the event of non-payment by Owner. 
 16. Warranty. 
  

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 16.1 The Contractor warrants to the Owner that the materials and equipment furnished under this Agreement
will be (a) new and of good quality; (b) free from defects in materials and workmanship, unless otherwise approved in writing in advance by the Owner, and (c) that the Work will be performed in a good and workmanlike manner and in
accordance with the Plans and all applicable codes, laws and standards. The Contractor shall collect and submit to the Owner, upon Mechanical Completion of the Work, all warranties from Subcontractors supplying materials, equipment or components
incorporated into the Project, and the Contractor hereby assigns to the Owner all of the Contractor’s rights under such warranties. The Contractor agrees that such warranties from those Subcontractors referenced in Exhibit F shall comply
with the requirements set out in Exhibit F. 
 16.2 The Contractor will recommend to Owner all process and construction improvements
that it believes in good faith would optimize the Project construction and operations, provided that Contractor’s liability for breaches of such warranty shall be limited to instances of gross negligence or willful misconduct. 
 16.3 The following shall govern the durations of the warranties described above. The base warranty period will commence when Mechanical Completion has
been achieved and will continue for the lesser of (i) twelve (12) months from the applicable Guaranteed Mechanical Completion Date; or 18 months after the applicable Final Completion Date (“Base Warranty Period”). Warranty for
any repairs or replacements shall commence on the date the repair or replacement is completed and continue until the later of the expiration of the Base Warranty Period or six (6) months from the date of completion of the repair or replacement
and shall not exceed a maximum of thirty (30) months from the Mechanical Completion Date (the “Repair Warranty Period”) (the Base Warranty Period plus the Repair Warranty Period are collectively referred to as the “Warranty
Period”). Contractor shall, as mitigation of the damages suffered by the Owner, at Contractor’s own cost and expense (including the cost of labor and equipment) promptly repair or replace with materials of new and good quality any Work or
materials which fail to comply with the warranty during the Warranty Period. 
 17. Defective Work. The Work shall be subject to
observation and approval by the Owner and representatives of governmental agencies with jurisdiction over the Project. Without limiting the effect of the prior sentence, all portions or components of the Work designed by registered architects or
engineers shall also be subject to their observation and approval. The Contractor shall promptly correct, at no cost to the Owner, all Work reasonably rejected by the Owner and all Work rejected by such agency representatives. Should the Contractor
fail to correct rejected Work, the Owner may correct such Work and the Contractor shall pay the Owner’s actual costs of correction. 
 18. Cleanup. The Contractor at all times shall keep the Project premises reasonably free from waste, debris and other excess materials caused by the Work, and shall leave the premises in “broom clean” condition at the end
of each day of Work. Upon both substantial and final completion of the Work, the Contractor shall remove all waste, debris, tools, equipment and excess materials from the Project site, shall properly dispose of all such items, and shall leave the

  

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site in a neat and orderly condition. Should the Contractor fail to perform its obligations under this Section, the Owner may do so at the Contractor’s
expense. 
 19. Site Access. The Contractor shall allow the Owner and its representatives access at all reasonable times to the
Project site and to the Work wherever being performed. In visiting the Project site and the Work, the Owner and its representatives shall not unreasonably interfere with or delay the performance of the Work, whether performed by the Contractor or
Subcontractors. 
 20. Permits and Inspections. If requested by Owner, the Contractor shall secure and initially pay for the building
permit, plan check fees, and all other permits and fees, tests and inspections by governmental agencies required and necessary for the performance and completion of the Work by the Contractor and Subcontractors. The Owner shall reimburse the
Contractor for the cost of the building permit (but there shall be no Contractor fee or markup thereon). The Contractor’s other costs incurred under this Section 20 shall be reimbursed by the Owner as part of the Cost of the Work, except
to the extent tests or inspections hereunder disclose defective or nonconforming Work caused by the fault or negligence referenced in Section 6.6. 
 20.1 The Owner shall contract and pay for all tests and inspections of the Work by third parties required and necessary for the performance and completion of the Work by the Contractor and Subcontractors; provided
that the Contractor rather than the Owner shall pay for such tests and inspections to the extent they disclose defective or nonconforming Work. The Contractor’s costs incurred under this Section 20.1 shall be reimbursed as part of the Cost
of the Work, except to the extent the defective or nonconforming Work is caused by the fault of negligence referenced in Section 6.6. The Contractor shall give the Owner reasonable notice of the time for the tests and inspections referenced in
this Section 20.1. 
 20.2 Observations or approvals by the Owner, architect or others (including third parties) shall not relieve
Contractor of its sole responsibility for construction means, methods, techniques, sequences, safety issues, and procedures, and for supervising, coordinating and performing all of the Work. 
 21. As-Built Drawings. The Contractor shall maintain during the progress of the Work as-built drawings indicating the current status of the Work
as actually performed. Upon Mechanical Completion of the Work, the Contractor shall prepare a final version of such as-built drawings and submit them to the Owner. Upon final completion of the Work, the Contractor shall prepare and submit to the
Owner revised as-built drawings as necessary such that the Owner has received from the Contractor a set of as-built drawings of the Work as actually performed at Final Completion. 
 22. Owner’s Construction and Separate Contracts. The Owner reserves the right to perform construction or operations related to the Project
with the Owner’s own forces or by separate contracts. 
  

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 22.1 The Contractor agrees to cooperate with the Owner and the Owner’s separate contractors, and the
Owner agrees to cooperate with the Contractor and to require its separate contractors to do the same, with respect to scheduling, material and equipment deliveries and storage, security, cleanup, work activities and other aspects of the Project. The
Contractor shall be responsible for any avoidable interference in or delays to the work related to the Project performed by the Owner’s own forces or separate contractors caused by the Contractor. The Owner shall be responsible for any
avoidable interference in or delays to the Work caused by the Owner’s own forces or separate contractors. 
 22.2 Any work performed by
the Owner’s own forces or separate contractors shall not be covered by the Contractor’s warranties under this Agreement. In the event the Owner furnishes Owner-Furnished Components, the Contractor’s warranties under this Agreement
shall extend to the installation but not to the materials, equipment, or components per se. 
 23. Safety and Environment. The
Contractor shall be responsible for all safety precautions and programs in connection with the performance of the Work, including without limitation precautions and programs to prevent damage, injury and loss to those performing the Work and other
persons, to the Work and materials and equipment to be incorporated into the Project, and to other personal and real property at the Project site and adjacent thereto. 
 23.1 Immediately upon discovery, the Contractor shall cease performance of the Work in that area of the Project where there are, or reasonably appear to be, the following: (a) materials which are or which it
reasonably believes are hazardous materials which are not controlled or have not been rendered harmless; or (b) a condition which is or which it reasonably believes is a wetland condition which is not protected; or (c) items or a
circumstance which is or that it reasonably believes is a Native American archeological site which is not protected. 
 23.2 As used in this
Section 23: (a) the term “hazardous materials” shall mean and include all “hazardous substances” as defined in the federal Comprehensive Environmental Response Compensation Liability Act (CERCLA), all “hazardous
waste” as defined in the federal Resource Conservation Recovery Act (RCRA), and similar terms as used in applicable federal, state and local statutes, rules and regulations; and (b) the term “wetland condition” shall mean and
include all “wetlands” and “waterbodies” subject to regulation under the federal Clean Water Act and similar terms as used in applicable federal, state and local statutes, rules and regulations; and (c) the term “Native
American archeological site” shall mean and include any cairn, burial, human remains, funerary objects, sacred objects or objects of cultural patrimony of any native Indian, as referenced in applicable federal, state and local statutes, rules
and regulations. 
 23.3 Upon ceasing the Work in the circumstances described in Section 23.1, or upon discovery of any occurrence or
condition which constitutes or reasonably could constitute an immediate danger to persons, property or the environment, the Contractor shall take such emergency actions as are reasonably necessary to contain any suspected hazardous materials 

  

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or limit their effects, to protect the suspected wetland condition or the suspected Native American archeological site, or to otherwise minimize the danger,
shall take such temporary measures as are reasonably necessary to secure the involved area of the Project site from further disturbance, and shall notify the Owner in person, by telephone or by telecopy as soon as possible with prompt confirmation
in writing. The Contractor shall not resume the Work in the affected area until it has received a written order from the Owner to do so. 
 24. Compliance with Laws. The Contractor shall comply with all applicable federal, state and local laws, statutes, codes, regulations, rules, orders and rulings as well as all applicable construction industry standards, including
without limitation those governing labor, materials, equipment, construction procedures, safety, health, sanitation and the environment. 
 25. Independent Contractor. The Contractor is an independent contractor and employing unit and shall be responsible for taxes or contributions payable on its employees, including without limitation employee contributions under
federal or state laws and full compliance with record keeping, reporting and other requirements of such laws. 
 26. Subcontracts.
Each Subcontractor whose work on a single project is anticipated to exceed $500,000 , or whose work in the aggregate is expected to exceed $1,000,000 must be approved in writing by the Owner before the Contractor signs the subcontract and before the
Subcontractor begins any work on the Project. The Contractor shall, when practicable, solicit competitive bids from qualified subcontractors before seeking the Owner’s approval for work of the magnitude described in the previous sentence. The
Contractor shall be responsible for all the acts and omissions of Subcontractors and their employees and agents. The Contractor’s subcontracts and supply contracts shall require the Subcontractor, to the extent of the Work to be performed by
the Subcontractor, to be bound to the Contractor by the terms of the Contract Documents and to assume toward the Contractor all of the obligations which the Contractor, by the Contract Documents, assumes toward the Owner. The Contractor’s
subcontracts and supply contracts shall include a provision whereby the Subcontractor consents to the assignment of the subcontract or supply contract to the Owner contingent upon the Contractor’s default pursuant to Section 37. Nothing in
this Agreement shall be construed to establish a contractual relationship between the Owner and any Subcontractor, except for the Owner being a third-party beneficiary of the subcontracts and supply contracts hereunder. 
 27. Assignment. The Contractor shall not delegate its obligations to the Owner under this Agreement in whole or in part, nor shall any rights of
the Contractor under this Agreement be assigned, without the prior written approval of the Owner. The Owner’s approval shall not unreasonably be denied. The Owner’s approval of any such delegation or assignment shall not relieve the
Contractor of any of its obligations under this Agreement. Notwithstanding the foregoing, the Owner may assign this Agreement, in whole or in part, without the Contractor’s consent, (i) to a Lender or any trustee or agent of a lender or
financier as collateral security (and in connection therewith, Contractor shall execute and deliver to the lender or financier a consent agreement in a form reasonably requested by such lender or financier) or (ii) to an affiliated or
subsidiary company, or to a company growing out of a consolidation or acquisition by or of, or merger with, the assigning party. 
  

 13 

 28. Aesthetics. The Owner’s decisions in matters relating to aesthetic effect shall be final
if reasonably consistent with the Contract Documents. 
 29. Intentionally omitted. 
 30. Ownership of Drawings and Specifications. 
 30.1 The Owner, through its architect or engineer, shall provide all Drawings, Specifications and other design, architectural and engineering documents included in the Contract Documents, whether in print, CADD, or other computerized or
other form of memory or recording, describing and necessary for the Work to be performed (the “Plans”). The Contractor shall not be required to provide professional services which constitute the practice of architecture or engineering
unless the Contractor needs to provide such services in order to carry out its responsibilities for construction means, methods, techniques, sequences and procedures or unless such services are specifically called for by the Contract Documents. If
professional services are required of the Contractor, the Owner shall indicate all performance and design criteria to be satisfied. The Contractor shall not be responsible for the adequacy of such performance and design criteria. The Contractor
shall obtain professional services and any design certifications required from licensed design professionals. All drawings, specifications, calculations, certifications and submittals prepared by such design professionals shall bear the signature
and seal of such design professionals and the Owner and the architect/engineer shall be entitled to rely upon the adequacy, accuracy and completeness of such design services absent violation of existing laws, rules and regulations in the
jurisdiction where the Project is located; provided, however, that nothing in this Section 30.1 shall be construed to limit the Contractor’s obligations under Section 16.2. 
 30.2 The Plans are to be used by the Contractor and Subcontractors for the limited purpose of describing the Work to be performed. The Contractor may
maintain one (1) record set of such documents; all other sets and copies of such documents shall be returned to the Owner upon Mechanical Completion of the Work. Neither the Contractor nor Subcontractors shall have any copyright or other
property interest in such documents, shall not provide the documents or copies thereof to any third parties for any purpose except as necessary or required to perform the Work, and shall not use the documents on any other project or for any work
under any other contract without the specific approval of the Owner in writing in advance. 
 30.3 All information and Plans to be provided
by the Owner or its agents under this Agreement (collectively, the “Work Product”) shall be the exclusive property of the Owner. Furthermore, all Developments shall be the exclusive Property of the Owner. “Developments” means
(i) all products, devices, computer programs, original video content, information, inventions, ideas, concepts, discoveries, designs, improvements, techniques, data, technology, know-how, algorithms or procedures, whether or not patentable or
copyrightable and whether reduced to practice, (ii) all patents and patent rights, copyrights, trade secrets, trademarks, and other similar property rights, and (iii) all Project process or operational writings, records, journals,
laboratory notebooks, data, texts, drawings, specifications, source code, data and other 

  

 14 

 
recorded information and other materials (in written, electronic or other medium), in preliminary or final form, that (a) are within the scope of or
directly related to the Project process or operation or process-related research or investigations or results that are from or are suggested by the Contractor’s or Subcontractors’ performance of the Work, and (b) that are created,
conceived, reduced to practice, developed, discovered, invented or made by the Contractor or Subcontractors during the term of this Agreement, whether solely or jointly with others, and whether or not while engaged in performing the Work. The
Contractor agrees and does hereby assign, grant, transfer and convey to the Owner, its successors and assigns, the Contractor’s entire right, title, interest and ownership in and to such Developments, including all intellectual property rights
associated with such Developments and specifically including the right to secure patent and copyright registration. The Contractor confirms that the Owner and its successors and assigns shall own the Contractor’s right, title and interest in
and to, including the right to manufacture, use, reproduce, distribute by sale, rental lease or lending or by other transfer of ownership, to perform publicly, and to display, all such Developments, whether or not such items constitute all
“work made for hire” as defined in 17 U.S.C. Section 201(b). The Owner shall have, and the Contractor hereby grants to the Owner, an unrestricted, transferable, fully paid up, perpetual license and right to use, reproduce and make
derivative works from all Developments. This license shall survive termination of this Agreement by either Party for any reason. The above notwithstanding, in no event shall the provisions of this Section 30 in any way apply to
Contractor’s means and methods in performing the Work, the rights to and ownership of which shall solely reside with and belong to Contractor. 
 31. Indemnity. To the fullest extent permitted by law, the Contractor shall defend, hold harmless, reimburse and indemnify the Owner, and its architect and engineer, and their partners, owners, members, officers, agents and employees
(the “ Owner Indemnified Parties”) from, for and against any and all claims, demands, losses, costs, damages, expenses, penalties, actions, suits and liabilities, including without limitation investigation costs, attorneys’ and expert
witnesses’ fees and other legal expenses, arising out of or related to this Agreement or the Work, including without limitation injury or death to persons or damage to property of any kind, to the extent such claims, demands, losses, costs,
damages, expenses, penalties, actions, suits or liabilities are caused by the negligence, breach of contract, breach of warranty, or other wrongful acts or omissions, whether active or passive, including but not limited to failure to comply with
applicable laws, on the part of the Contractor, Subcontractors, or the partners, officers, directors, agents, or employees of any of them, or anyone for whose acts Contractor is responsible. 
 If claims are asserted against any Owner Indemnified Party by an employee of the Contractor, a Subcontractor, anyone directly or indirectly employed by
them, or anyone for whose acts they may be liable, the Contractor’s indemnification obligation under this section shall not be limited by any limitation on the amount or type of damages, compensation, or benefits payable to the employee by or
for the Contractor or a Subcontractor under workers’ compensation acts, disability benefit acts, or other employee benefit acts. The Contractor agrees that its indemnification obligations extend to claims, demands, and causes of action
brought by or on behalf of its employees or agents. Only to the extent necessary to fulfill 

  

 15 

 
those obligations, the Contractor, by mutual negotiation, hereby waives any immunity that would otherwise be available against claims brought by employees
or agents under the Industrial Insurance provisions of RCW Title 51. 
 To the fullest extent permitted by law, Owner shall defend, hold
harmless, reimburse and indemnify the Contractor, and its partners, owners, members, officers, agents and employees (the “ Contractor Indemnified Parties”) from, for and against any and all claims, demands, losses, costs, damages,
expenses, penalties, actions, suits and liabilities, including without limitation investigation costs, attorneys’ and expert witnesses’ fees and other legal expenses, arising out of or related to this Agreement or the Work, including
without limitation injury or death to persons or damage to property of any kind, to the extent such claims, demands, losses, costs, damages, expenses, penalties, actions, suits or liabilities are caused by the negligence, breach of contract, breach
of warranty, or other wrongful acts or omissions, whether active or passive, including but not limited to failure to comply with applicable laws, on the part of the Owner, its contractors, or the partners, officers, directors, agents, or employees
of any of them, or anyone for whose acts Owner is responsible. 
 If claims are asserted against any Contractor Indemnified Party by an
employee of the Owner or anyone directly or indirectly employed by Owner, or anyone for whose acts Owner may be liable, the Owner’s indemnification obligation under this section shall not be limited by any limitation on the amount or type of
damages, compensation, or benefits payable to the employee by or for the Owner under workers’ compensation acts, disability benefit acts, or other employee benefit acts. The Owner agrees that its indemnification obligations extend to claims,
demands, and causes of action brought by or on behalf of its employees or agents. Only to the extent necessary to fulfill those obligations, the Owner, by mutual negotiation, hereby waives any immunity that would otherwise be available against
claims brought by employees or agents under the Industrial Insurance provisions of RCW Title 51. 
 32. Limitation of Liability.
Notwithstanding any provision of this Agreement and to the extent permitted by law, neither the Owner nor the Contractor, nor any of each of their subsidiaries, affiliates, directors, officers, employees or agents, be liable to the other party for
any punitive, indirect, incidental, consequential, reliance or special damages or for lost revenues, lost savings or lost profits of any kind, regardless of the form of action. 
 33. Title and Risk of Loss. 
 33.1
Title to all equipment and materials to be incorporated into the Project shall pass to Owner upon delivery of such equipment and materials to the Project site or when Contractor receives payment relating to the equipment and materials, whichever
occurs first. Notwithstanding the timing of passage of title, the Contractor and the Subcontractors providing equipment pursuant to this Agreement shall clearly mark all Work in progress and during the manufacturing and assembly as being prepared
for the Project so as to distinguish such material from material in preparation for other facilities or projects. 
 33.2 Notwithstanding the
provisions of Section 33.1, the Contractor shall bear the risk of loss of and damage to, and shall be obligated to repair, replace, or reconstruct, or pay for, 

  

 16 

 
all or any portion of the Work, including any equipment or other item of Work which is lost, damaged or destroyed due to Contractor’s negligence, prior
to the Final Completion of the Facility. Contractor’s building risk shall cover stolen property up to $250,000. 
 34.
Contractor’s Insurance Obligations. The Contractor shall purchase from and maintain insurance for protection from claims under workers’ compensation acts and other employee benefit acts which are applicable, claims for damages
because of bodily injury, including death, and claims for damages, other than to the Work itself, to property which may arise out of or result from the Contractor’s operations under this Agreement, whether such operations be by the Contractor
or a Subcontractor or anyone directly or indirectly employed by any of them. This insurance shall be written for not less than limits of liability specified in this Section 34 or required by law, whichever coverage is greater, and shall include
contractual liability insurance applicable to the Contractor’s obligations under Sections 23 and 33. Certificates of such insurance shall be filed with the Owner prior to the commencement of the Work. 
 34.1 The insurance required by this Section 34 shall be provided by an insurance company or companies lawfully authorized to conduct business in the
state where the Project is located which have a policy-holder’s rating of not less than “A” in the most recent edition of Best’s Rating Guide. Such insurance shall be written on an occurrence basis and shall be maintained
without interruption from the date of commencement of the Work until at least one (1) year following the date of Final Payment and at all times thereafter when the Contractor may be correcting, removing or replacing defective or rejected Work,
or longer if required below. The Contractor shall name the Owner and its agents and employees as additional insureds on all insurance policies, except the Workers’ Compensation policy. The Contractor shall obtain from the Owner the list of
names to appear on the insurance policies. The Contractor shall pay all deductibles. The insurance shall be written for not less than the following limits, or greater if required by law, and otherwise shall comply with the following requirements:

 34.1.1 Workers’ Compensation: 
 a. State: Statutory. 
 b. Employer’s Liability: $1,000,000. 
 34.1.2 Commercial General Liability, applicable to all premises and operations, including Bodily Injury, Property Damage, Independent Contractors,
Blanket Contractual, Personal Injury, Products and Completed Operations, Broad Form Property Damage (including Completed Operations) and coverage for explosion, collapse, and underground hazards, with limits of liability of not less than the
following: 
 a. $1,000,000 combined single limit per occurrence. 
 b. $2,000,000 aggregate applicable specifically to the Project. 
  

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 c. The Commercial General Liability insurance shall be primary and non-contributory with the
Owner’s policies carried for their sole benefit and include umbrella liability coverage of not less than $10 million for per occurrence. 
 34.1.3 Comprehensive Automobile Liability, applicable to any automobile, including owned, non-owned, and hired automobiles, with limits of liability of not less than $1,000,000 combined single limit for Bodily Injury and Property Damage
each accident. 
 34.1.4 Builders All-Risk insurance, with limits of liability as specified in Exhibit A (the “Builders All-Risk
Insurance Limits of Liability”) naming Owner as the insured. 
 34.1.5 Each policy shall contain a provision that the policy will not be
canceled or allowed to expire until at least thirty (30) days’ prior written notice to the Owner. Such notices and any endorsements subsequently issued amending coverage or limits shall be delivered to the Owner by certified mail. Upon
receipt of any notice of cancellation, non-renewal or reduction in coverage, the Contractor shall within five (5) days procure other policies of insurance, similar in all respects to the policy or policies about to be canceled, non-renewed or
reduced in coverage. If the Contractor fails to provide acceptable policies of insurance, the Owner may obtain such insurance at the cost and the expense of the Contractor. 
 34.1.6 The Contractor shall require each Subcontractor to purchase and maintain insurance of the types and for the durations stipulated hereinabove with
policy limits as established by Contractors Master Subcontract Agreements. All general liability policies carried by Subcontractors shall be endorsed to include as additional insured parties the Owner and its agents and employees. 
 35. Owner’s Insurance Obligations. The Owner shall be responsible for purchasing and maintaining the Owner’s usual liability insurance,
as well as a builder’s all-risk policy form naming the Contractor as an additional insured. The Owner in its sole discretion may purchase and maintain other insurance for self-protection against claims which may arise from operations under this
Agreement. The Owner may purchase and maintain, in a company or companies lawfully authorized to conduct business in the state where the Project is located, property insurance upon the entire Work at the site. Owner shall provide Contractor with all
applicable policy specifications and endorsements with respect to the builder’s all-risk policy within ten (10) days of the effective date of this Agreement. Owner shall also be fully responsible for all deductibles or retentions
thereunder 
 36. Owner’s Failure to Pay. If the Owner fails to make payment as required by this Agreement, i.e., a payment that
is not withheld pursuant to section 8.2 hereof or as a result of an apparent error in the relevant invoice for a period of thirty (30) days after the payment due date, the Contractor upon ten (10) days written notice to the Owner may
terminate this Agreement unless the Owner makes payment in full during the ten day period. In the event of such termination for nonpayment, the Owner shall pay the Contractor the Cost of the Work plus 

  

 18 

 
the Contractor’s Fee, in an amount equal to the Cost of the Work performed up to the effective date of termination multiplied by the proportion of the
Cost of the Work performed up to the effective date of the termination (Contractor’s Fee at termination = (Contractor’s Fee) x (Cost of the Work performed up to the effective date of termination / Sum of Payments in Exhibit B, as
amended)), thereon for the Work performed up to the effective date of termination, plus the Contractor’s demobilization and other costs directly relating to the termination. 
 37. Termination and Cancellation. 
 37.1 Termination. 
 37.1.1 Termination for Bankruptcy Events. If any proceeding is instituted against the Contractor
seeking to adjudicate the Contractor as bankrupt or insolvent and such proceeding is not dismissed within sixty (60) days of filing, or if the Contractor makes a general assignment for the benefit of its creditors, or if a receiver is appointed
on account of the insolvency of the Contractor, or if the Contractor files a petition seeking to take advantage of any other law relating to bankruptcy, insolvency, reorganization, winding up or composition or readjustment of debts, or if the
Contractor is unable to pay its debts when due or as they mature, then the Owner may, without prejudice to any other right or remedy the Owner may have, terminate this Agreement effective immediately upon giving written notice of such termination to
Contractor. 
 As an alternative to termination if any of the above events occur, the Owner in its sole and absolute discretion may require
(i) Contractor, its trustee or other successor, to furnish, upon Owner’s request, adequate assurance of Contractor’s ability to perform all further material obligations under this Agreement, which assurances shall be provided within
five (5) calendar days after receiving notice of the request and (ii) Contractor to file an appropriate action within the bankruptcy court to seek assumption or rejection of the Agreement within ten (10) calendar days of the
institution of the bankruptcy filing and to diligently prosecute such action. If Contractor fails to comply with its above obligations, Owner shall be entitled to request the bankruptcy court to reject this Agreement, declare this Agreement
terminated and pursue any other recourse available to Owner under this Section 37. The rights and remedies under this Section 37 shall not be deemed to limit Owner’s ability to seek any other rights and remedies provided by this
Agreement or by Law, including its ability to seek relief from any automatic stays under the United States Bankruptcy Code. Because of the urgent nature of the Work, Contractor will not oppose or object to any attempt by Owner to seek relief from
any automatic stays. 
 37.1.2 Termination for Failure to Perform. If the Contractor refuses or fails to supply enough properly
skilled workers or enough proper materials or equipment, fails to make prompt payment to Subcontractors or for labor, materials or equipment, violates or disregards laws, statutes, codes, ordinances, rules, regulations or orders of any public
authority having jurisdiction of the Project, or otherwise defaults on any of its obligations under this Agreement, and fails to remedy or take bona fide actions to commence the remediation of such default within five (5) days after receipt of
written notice of default from the Owner, then the Owner may take 

  

 19 

 
possession of the site and all of the Contractor’s materials, equipment, tools, construction equipment and machinery and complete all or any part of the
Work, and the Contractor to the extent requested by the Owner shall assign the Contractor’s subcontracts and supply contracts to the Owner for the purpose of so completing Work. In the event the Owner takes over the Work pursuant to this
Section, the Owner may dispose of excess materials and debris as it determines appropriate, in its sole discretion. The Contractor shall have no rights in the proceeds of such materials, unless they exceed the Owner’s costs of completing the
Work and such other damages as the Owner may sustain as a result of the Contractor’s default. The Owner’s rights under this Section shall be subject to the rights of the Contractor’s surety and the Contractor’s
trustee-in-bankruptcy, if any. The Owner’s election to take over all or any part of the Work shall not constitute the Owner’s sole remedy upon any such default. The Owner expressly reserves all other rights and remedies under this
Agreement at law and in equity upon default, including without limitation the right to terminate this Agreement for cause. 
 37.2
Cancellation for Convenience. The Owner may cancel this Agreement at any time and for any reason, without cause and for its convenience, upon written notice to the Contractor. In the event of such cancellation for the Owner’s
convenience, the Owner shall pay the Contractor the reasonable Cost of the Work plus the Contractor’s Fee, in an amount equal to the Cost of the Work performed up to the effective date of termination multiplied by the proportion of the Cost of
the Work performed up to the effective date of the termination (Contractor’s Fee at termination = (Contractor’s Fee) x (Cost of the Work performed up to the effective date of termination / Sum of Payments in Exhibit B, as amended)),
thereon for the Work performed up to the date of termination, plus the Contractor’s demobilization and other costs directly relating to the termination, minus any cost incurred by the Owner to the extent caused by Contractor or those for whom
Contractor is responsible. 
 38. Force Majeure. 
 38.1 Excused Performance. Each Party shall be excused from performance and shall not be considered to be in default with respect to any obligation hereunder, except the obligation to pay money in a timely
manner, if and to the extent that its failure of, or delay in, performance is due to an event of Force Majeure, which shall be defined as any event or circumstance or combinations of events or circumstances beyond the reasonable control of a party
that materially and adversely affects the performance by that party of its obligations under or pursuant to this Agreement, including, but not limited to, any act of God; act of civil or military authority; act of war whether declared or undeclared;
act (including delay, failure to act or priority) of any governmental authority; civil disturbance; insurrection or riot; sabotage; fire; earthquake; flood; strike (excluding strikes against Contractor by its employees ); or embargo. Event;
provided, that: 
 38.1.1 The affected Party shall give timely notice of any event or circumstance that it believes is or might
become an event of Force Majeure, which notice shall include any information that may be required to justify a Change Order. Such notice shall be issued promptly but in no event later than five (5) days following actual knowledge of such
condition. 
  

 20 

 38.1.2 The affected Party shall use reasonable efforts to remove or mitigate the effects of any Force
Majeure Event. 
 38.2 Suspension of Performance. Any suspension of performance and Change Orders shall be of no greater scope and of
no longer duration than is reasonably required by the event of Force Majeure, taking into account the circumstances which existed prior to the occurrence of the event of Force Majeure. 
 38.3 Owner Self-Help. If within a reasonable time after the occurrence of an event of Force Majeure Event that has caused Contractor to suspend or
delay performance of the Work, reasonable action that Contractor could lawfully and reasonably initiate to remove or relieve either the Force Majeure Event or its direct or indirect effects has been identified and recommended to Contractor, and
Contractor has failed to take such action, then Owner may, in its sole discretion and after three (3) days written notice to Contractor, at Contractor’s expense, initiate such reasonable measures as will be designed to remove or relieve
such Force Majeure Event or its direct or indirect effects, and thereafter require Contractor to resume full or partial performance of the Work in accordance with the provisions of this Agreement. 
 39. Exclusivity. Contractor will agree to perform contracting services relating to biodiesel and glycerin exclusively for Owner so long as
Contractor is engaged in the Project and for a period of twelve (12) months after the Mechanical Completion Date (the “Exclusivity Period”); provided that during the post-Project Exclusivity Period (i) Owner will endeavor to
propose a new biodiesel or glycerin project for which it will engage Contractor and (ii) Contractor may present to Owner other biodiesel or glycerin projects proposed to it, and Contractor may engage in such projects only upon Owner’s
consent, which shall be given in Owner’s sole discretion. 
 40. Dispute Resolution. Unless otherwise agreed in writing, the
Contractor shall continue the Work and maintain the Schedule of the Work during any dispute resolution proceedings. If the Contractor continues to perform, the Owner shall continue to make payments in accordance with this Agreement. 
 40.1 Initial Dispute Resolution. If a dispute arises out of or relates to this Agreement or its breach, the parties shall endeavor to settle the
dispute first through direct discussions between the parties’ representatives, who shall have the authority to settle the dispute. If the parties’ representatives are not able to promptly settle the dispute, the senior executives of the
parties, who shall have the authority to settle the dispute, shall meet within fifteen (15) days after the dispute first arises. If the dispute is not settled within ten (10) days from the referral of the dispute to the senior executives,
the parties shall submit the dispute to arbitration in accordance with Section 40.2. 
 40.2 Arbitration. If the dispute cannot
be settled pursuant to Section 40.2, the parties shall settle the dispute by binding arbitration under the current Construction Industry Arbitration Rules of the American Arbitration Association. Once one party files a request for arbitration
with the other party and with the American Arbitration Association, the parties agree 

  

 21 

 
to conclude such arbitration within sixty (60) days of filing of the request. The parties shall request arbitration by a panel of three
(3) arbitrators, selected in accordance with the Rules of the American Arbitration Association. The decision of the arbitrators shall be final and judgment upon the award may be entered into any court having jurisdiction thereof. Any
construction lien foreclosure suit shall be stayed pending the arbitration. 
 40.2.1 Arbitration proceedings and any trial court suit or
action arising out of or related to this Agreement shall be commenced and conducted in Olympia, Washington. 
 40.2.2 In addition to
negotiation and arbitration as required herein, the Owner and Contractor agree to a single consolidated negotiation or, if necessary, arbitration of disputes between and among the Owner; Contractor; all Subcontractors and suppliers; architect,
engineer and their consultants and their subconsultants; Owner’s separate consultants and contractors, and their respective subconsultants, subcontractors, suppliers and all other persons and entities performing labor, services, materials,
equipments or other performance for the Project. Such consolidated mediation and arbitration otherwise shall be governed by the terms of this Section 40. 
 41. Governing Law; Forum; Attorney Fees. This Agreement and all disputes arising out of or related to this Agreement and the Work shall be governed by the laws of the State of Washington. Any arbitration, suit
or action arising out of or related to this Agreement shall be commenced and conducted in Olympia, Washington. Should any suit, action or arbitration be commenced in connection with any dispute arising out of this Agreement, to obtain a judicial
construction of any provision of this Agreement, to rescind this Agreement, or to enforce or collect any judgment or decree of any court or any award obtained during arbitration, the prevailing party shall be entitled to recover its costs and
disbursements, together with such investigation costs and fees, expert witness costs and fees, and attorney costs and fees, as the court or arbitrator may adjudge reasonable, incurred in connection with such dispute before trial or arbitration, at
trial or arbitration, upon any motion for reconsideration, upon any appeal or petition for review, and upon any collection efforts or proceedings. 
 42 Modification; Entire Agreement. No oral communication, promise, understanding, or agreement before, contemporaneous with or after the execution of this Agreement shall affect or modify any of its terms or obligations. This
Agreement shall be conclusively considered to contain and express all the terms and conditions agreed upon by the parties, notwithstanding any prior or contemporaneous written communication, promise, understanding or agreement. This Agreement shall
be modified only by a subsequent writing signed by both parties. 
 43. Audit. Owner shall have the right to conduct an independent
audit of Contractor’s records, books and all other cost documentation at any time during or after the Project. Contractor shall allow reasonable access to Contractor’s offices and other sites where the documentation is kept, and Contractor
shall cooperate fully in the audit. Contractor understands and agrees that the audit may require more than one visit to Contractor’s offices or other sites. 

  

 22 

 
Owner and its audit representatives will endeavor to minimize interference to Contractor’s operations while the audit is being conducted. 
 44. Waiver. Either party’s waiver of any breach of any provision of this Agreement by the other party shall not constitute a waiver of any
further or additional breach of such provision or of any other provision of this Agreement. 
 45. Severance. Should any provision of
this Agreement at any time be in conflict with any law, statute, rule, regulation, order or ruling and thus be unenforceable, or be unenforceable for any other reason, then the remaining provisions of this Agreement shall remain in full force and
effect and the court or arbitrator shall give the offending provision the fullest meaning and effect permitted by law. 
 46. Joint
Drafting. The parties expressly agree that this Agreement was jointly drafted, and that both had opportunity to negotiate its terms and to obtain the assistance of counsel in reviewing its terms prior to execution. Therefore, this
Agreement shall be construed neither against nor in favor of either party, but shall be construed in a neutral manner. 
 46. Notices.
Any notices required to be given under this Agreement shall be deemed conclusively given if transmitted to the other party in person or at the following address or telecopy number or at such other address or telecopy number as may be given
hereunder. Each party to this Agreement shall have the right to change the place to which notice shall be sent or delivered by notice sent to the other party. The effective date of any notice issued pursuant to this Agreement shall be the earlier of
(i) the addressee’s receipt of such notice and (ii) the date three days after such notice was sent by properly addressed, registered or certified mail: 
  

	
	 To Owner:

	
	 Imperium Grays Harbor LLC

	 3122 Port Industrial Road

  

	
	 Hoquiam, WA 98550

	 Tel:

	 Fax:

	 Email:

	
	 With a copy to:

	
	 Imperium Renewables, Inc.

	 1418 Third Avenue, Seattle, WA 98101

	 Tel: 206-254-0203

	 Fax: 206-254-0204

	 Email:

	
	 To Contractor:

  

 23 

	
	
	 JH Kelly LLC

	 2311 East First St

	 Vancouver, WA 98661

	 Attention: Mark Fleischauer

	 Tel: 360-423-5510

	 Fax: 360-423-9170

	 Email: mfleisch@jhkelly.com

 IN WITNESS WHEREOF, the Owner and the Contractor have caused this Agreement to be executed in two
(2) original copies on the above date and year. 
  

									
	 IMPERIUM GRAYS HARBOR LLC
	 		 	JH KELLY LLC
			
	 OWNER
	 		 	CONTRACTOR
			
	 /s/ John Plaza
	 		 	 /s/ Terry Major

	 Title:
	 	President	 		 	Title:	 	Sr. VP
	 Date:
	 	8/25/06	 		 	Date:	 	8/25/06

  

 24

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