Document:

Microsoft OEM Mobile Windows Distribution Agreement

 Exhibit 10.19 
 SCHEDULE TO EXHIBIT 10.19 
 BSQUARE CORPORATION 

FORM 10-K FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010 
 Filed herewith as Exhibit 10.19 to the Form 10-K for the annual period ended December 31, 2010, is a copy of the Microsoft OEM Windows Mobile Distribution Agreement between Microsoft Licensing, GP,
an affiliate of Microsoft Corporation (“Microsoft”), and Bsquare Corporation (the “Company”), entered into effective as of November 1, 2009, as amended by Amendment No. 1 dated as of September 1, 2010
and Amendment No. 2 dated as of November 1, 2010 (collectively, the “Distribution Agreement”). The Company has also entered into three additional distribution agreements, as amended, with Microsoft that are substantially
identical in all material respects to the Distribution Agreement except as to the parties thereto, the dates of execution and other details, including the territories covered (the “Additional Agreements”). Per Instruction 2 to
Item 601 of Regulation S-K, the Company is not filing the Additional Agreements as exhibits to the Form 10-K, but is filing this Schedule with Exhibit 10.19 describing the differences between the Distribution Agreement and the Additional
Agreements. In addition, the Company is seeking confidential treatment of the same portions of the Additional Agreements as requested for the Distribution Agreement. 
  

													
	 Name of Agreement
	 	 Parties to
 Agreement
	  	Territory	  	 Signatories
	  	Filed
Herewith?
							
	Microsoft OEM Windows Mobile Distribution Agreement, as amended by Amendment No. 1 dated as of September 1, 2010 and Amendment No. 2 dated as of
November 1, 2010	 	•	 	Bsquare Corporation	  	Americas	  	 •
	 	Brian Crowley	  	YES
	 	 •
	 	 Microsoft Licensing, GP
	  		  	 •
	 	Microsoft eSign Team	  	
							
	Microsoft OEM Windows Mobile Distribution Agreement, as amended by Amendment No. 1 dated as of September 1, 2010 and Amendment No. 2 dated as of
November 1, 2010	 	 •
	 	Bsquare Corporation	  	Japan	  	 •
	 	Brian Crowley	  	NO
	 	 •
	 	 Microsoft Licensing, GP
	  		  	 •
	 	Microsoft eSign Team	  	
							
	Microsoft OEM Windows Mobile Distribution Agreement, as amended by Amendment No. 1 dated as of September 1, 2010 and Amendment No. 2 dated as of
November 1, 2010	 	 •
	 	Bsquare Corporation	  	Europe,
 Middle

East,
 Africa
	  	 •
	 	Brian Crowley	  	NO
	 	 •
	 	 Microsoft Ireland Operations Limited
	  	  	 •
	 	Cristina Gregorin	  	
							
	Microsoft OEM Windows Mobile Distribution Agreement, as amended by Amendment No. 1 dated as of September 1, 2010 and Amendment No. 2 dated as of
November 1, 2010	 	 •
	 	Bsquare Corporation	  	Asia	  	 •
	 	Brian Crowley	  	NO
	 	 •
	 	 Microsoft Licensing, GP
	  		  	 •
	 	Microsoft eSign Team	  	

			
	Company Name:	  	Bsquare Corporation (Mobility - Americas)
	MS Agreement Number:	  	***
	Start Date:	  	November 1, 2009
	End Date:	  	October 31, 2011
	Territory:	  	Americas

 MICROSOFT OEM WINDOWS
MOBILE DISTRIBUTION AGREEMENT 
 MICROSOFT LICENSING, GP (“MS”), and the undersigned company (“Company”) agree to
be bound by the terms of this MICROSOFT OEM WINDOWS MOBILE DISTRIBUTION AGREEMENT (“Agreement”) effective as of the date above (“Start Date”). 
 This Agreement consists of the following: 
  

	 	•	 	 This Signature Page 

  

	 	•	 	 Reporting and Payment Schedule 

  

	 	•	 	 Notices Schedule 

  

	 	•	 	 Terms 

  

	 	•	 	 OEM Volume Royalty Program Schedule 

  

	 	•	 	 Use of MOO and ECE Schedule 

  

									
	 MICROSOFT LICENSING
 A general partnership organized under the laws of:
 State of Nevada, U.S.A.
	 	 	 	 Bsquare Corporation
 A company organized under the laws of: Washington

					
	By:	 	 /s/ Microsoft eSign Team
	 		 	By:	 	 /s/ Brian Crowley

		 	(signature)	 		 		 	(signature)
					
	Name:	 	  
	 		 	Name:	 	 Brian Crowley

		 	(printed)	 		 		 	(printed)
					
	Title:	 	  
	 		 	Title:	 	 President and CEO

		 	(printed)	 		 		 	(printed)
					
	Date:	 	_________                    	 		 	Date:	 	November 4, 2009
		 	(printed)	 		 		 	(printed)

  

CONFIDENTIAL 
  

	
	05/04/09 59528v11 Microsoft OEM Windows Mobile Distribution Agreement
	 Form 2.8. 1
 Document Tracking Number: ***

 Confidential treatment has been requested for
portions of this agreement. This agreement omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange
Commission. 

 REPORTING AND PAYMENT SCHEDULE 

Shipping, Billing, Rebates, Support 

Company’s VAT Number: 805 0228 70 
  

			
	Company “Ship To” Address	  	Company Billing Address
		
	 110
110th Ave NE, Suite 200

Bellevue, WA 98004
	  	 110
110th Ave NE, Suite 200

Bellevue, WA 98004

 Company
Technical Support Number: (425) 519-5900 
 Payment 
 Company shall include applicable MS invoice numbers and its VAT number on all payments. 
 Send
Payments via Wire Transfer Only to: 
 Microsoft Licensing, GP 
 *** 
 Or to such other address or account as MS may specify from time to time. 

MOO and ECE Company Administrator 
 Company designates as its ECE and MOO Company Administrator the following individuals. 
 Name: *** 
 Name: *** 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #*** dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 3 

 NOTICES SCHEDULE 
 The parties must address any notices related to this Agreement to the contacts and locations listed below. Either party may change these contacts by providing *** days prior notice to the other party. All
written notices must be in the English language. 
  

			
	Company Information	  	MS Information
		
	 Bsquare Corporation
 110
110th Ave NE, Suite 200

Bellevue, WA 98006 USA
  
 Contact Name: ***
 Phone Number: ***
 Fax Number: 425-519-5999
 Email Address (required): ***
	  	 Microsoft Licensing, GP

***
  
  

With a copy to:
 Microsoft Licensing,
GP
 ***

		
	 With a copy to: Bsquare Corporation
 110 110th Ave
NE, Suite 200
 Bellevue, WA 98006 USA

Contact Name: ***
 Phone Number: ***

Fax Number: 425-519-5999
 Email Address
(required):***
	  	

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #*** dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 4 

 TERMS 

 

	1.	Definitions 

“APM” means associated product materials MS designates from time to time as a part of the Products. Examples of APM include
documentation and external media. Company acquires APM from an AR. 
 “ARA” means additional rights agreements such as
the Microsoft OEM Customer License Agreement for Use of Third Party Brand Names and Trademarks and the Microsoft OEM Customer License Agreement for Field Upgrades. 
 “AR” means an MS-authorized replicator and supplier of APM or COAs. 

“Benefits” are defined in section 14.(i) 
 “CIETAC” means China International Economic & Trade Arbitration Commission. 
 “CLA” means the serialized OEM Customer License Agreement for Devices as made available by MS. For additional information on the CLA, Company should contact its MS account manager. 

“Claim” is defined in section 8.a. 
 “COA” means the certificate of authenticity designated by MS. 

“Channel” means OEM Customer’s distributors, dealers, resellers, and others in OEM Customer’s distribution chain for
Devices. 
 “Company Parties” is defined in Section 14.(i) 

“Default Charge” means an amount owed as liquidated damages for the unauthorized distribution of Products under this Agreement.
The Default Charge for each Product is *** of the royalty for the Product (excluding discounts and rebates), less any royalty paid for the unauthorized distribution. 
 “Device” means OEM Parties’ computing system or device that 
  

	 	(a)	is designed for and distributed with Product; 

  

	 	(b)	meets the design requirements; and 

  

	 	(c)	passes the Mobile Logo Test Program. 

 “Distributor ALTs” means the additional licensing terms and conditions for a Product that are set forth in Section 2(w) below. 

“ECE” means the Mobile & Embedded Communications Extranet, which is the Internet site located at ***. MS may designate
a successor URL from time to time. The ECE is made available to Company as an informational resource. 
 “EFTA” means
European Free Trade Association. 
 “Embedded Application” means an industry- or task-specific software program and/or
functionality with all of the following attributes: 
  

	 	(a)	It provides the primary functionality of the Device. 

  

	 	(b)	It is designed to meet the functionality requirements of the specific industry into which the Device is marketed. 

 

	 	(c)	It offers significant functionality in addition to the Product software. 

 “Device” means OEM Customer’s computing system or device with an Image that 
  

	 	(a)	is designed for and distributed with an Embedded Application; and 

  

	 	(b)	is not marketed or useable as a general purpose personal computing device (such as a personal computer), a multi-function server or a commercially viable
substitute for one of these systems. 

 “End User Documentation” means end user information about the
Product as described in the Documentation. 
 “EU” means the European Union. 

“Image” means the binaries for the Product included on an Device and the OEM Customer’s binaries. 

“Material Amount” means ***. 
 “MCCL” means Microsoft (China) Company Limited, a company organized under the laws of the People’s Republic of China. MCCL is a wholly-owned subsidiary of MSCORP. 

“Minimum Requirements” means ***. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 5 

 “MIOL” means Microsoft Ireland Operations Limited, a company organized under the
laws of Ireland. MIOL is an indirect, wholly-owned subsidiary of MSCORP. 
 “Misappropriate” has the same meaning given
in the Uniform Trade Secrets Act. 
 “Mobile Logo Test Program” means MSCORP’s compliance tests for each Device.

 “Mobile Operator” means a wireless telecommunication service provider. 

“MOO” means the MS OEM Online website located at *** (or any successor URL provided by MS). 

“MS Affiliate” means any entity that directly or indirectly controls, is controlled by, or is under common control with MS,
including MSCORP. 
 “MS Getting Started Disk” or “MS GSD” means a CD acquired by Company from an AR. The CD
contains the following: 
  

	 	(a)	MS software that the end user installs on a personal computer. This software enables data exchange between the personal computer and the Device;

  

	 	(b)	End User Documentation in electronic format; and 

  

	 	(c)	Other MS software. 

“MS Parties” means MS, Suppliers, and/or their respective officers, employees, and agents. 

“MSCORP” means Microsoft Corporation, a company organized under the laws of the State of Washington, U.S.A. 

“MSLI” means Microsoft Licensing, GP, a general partnership organized under the laws of the State of Nevada, U.S.A., of which
MSCORP is a general partner. 
 “New Device” means a Device model that has not been previously distributed by OEM
Customer. It also means a Device model that has been distributed previously by OEM Customer, but must pass the Mobile Logo Test Program again before further distribution. 
 “OAK” means the OEM adaptation kit for a Product, which includes, where applicable, Product software and Supplements, image build instructions, installation instructions, and utilities.

 “OEM ALPs” means licensing terms and conditions for the Product on the “Additional Licensing Provisions”
affixed to the Runtime License Envelope. Courtesy copies of the ALPs are available on the ECE. 
 “OEM Customer” means
an original equipment manufacturer of one or more Devices that has signed a current CLA. 
 “OEM Customer Getting Started
Disk” or “OEM Customer GSD” means a CD distributed by the OEM with the Device that contains the following 
  

	 	(a)	Contents from the MS GSD. The Documentation describes which contents may be distributed; 

 

	 	(b)	OEM’s logo; and 

  

	 	(c)	If desired, software owned or licensed by OEM other than MS or MSCORP software (“OEM Customer Software”). 

 

	 	(d)	OEM Customer GSD is called Company GSD in the CLA. 

 “OEM Volume Royalty Program” has the meaning specified in the OEM Volume Royalty Program Schedule. 
 “Outsource Manufacturer” or “OM” is an entity approved by MS in writing that an OEM Customer engages to: 

 

	 	(a)	install an Image on a Device, 

  

	 	(b)	manufacture a Device, 

  

	 	(c)	prepare the Device for distribution, and 

  

	 	(d)	distribute Devices on behalf of OEM Customer to: OEM Customer, the Channel , and End Users (as defined in the CLA). 

An Outsource Manufacturer can be a third party or owned by the OEM Customer. In order to maintain status as an approved OM, the OM must
not develop or build the Image. 
 “Payments” is defined in section 14(i). 

“PRC” means the People’s Republic of China. 
 “Prior Agreement” is defined in section 13(c). 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 6 

 “Products” means the MS Windows Mobile products identified as licensed in the
Product Viewer Tool. Products are available from an AR or an MS Affiliate for redistribution to OEM Customers. Products include MS software (including Supplements), COAs, and APM. 

“Product Viewer Tool” means the Product Viewer in MOO. It is a search tool that allows users to search for MS part numbers, and
bills of materials for Products. 
 “Recovery Image” means a copy of the Image as originally installed on the Device. A
Recovery Image is used to reinstall the Image. 
 “Reporting Guidelines” means the Sales-Out and Royalty Reporting
Guidelines posted on the ECE. These guidelines provide for electronic submission to MS of sales-out information as reasonably requested by MS. MS reserves the right to modify such guidelines with *** days notice. Any part of the Reporting Guidelines
that conflicts with any term or condition of this Agreement shall not apply to this Agreement. 
 “Resource Guide”
means the Microsoft Windows Mobile Distributor Resource Guide posted on the ECE. It contains general licensing, operational, and Product ordering information, but not licensing terms. MS reserves the right to modify the Resource Guide with *** days
notice. Any part of the Resource Guide that conflicts with any term or condition of this Agreement shall not apply to this Agreement. 
 “Royalty Rate List” means the list of royalty-bearing Products and royalty rates. This list also contains Distributor ALPs and other information. 

“Runtime License” means a license to distribute a single Image on a Device. 

“Runtime License Envelope” means the envelope that contains the ALPs for the Product. A Runtime License Envelope may contain
COAs. 
 “Sample Code” means the software marked as “sample” or delivered in a folder marked
“sample” that may be included as a part of the Product. Sample Code may be in source code or object code format. Sample Code is not “covered software” under MS’ published indemnification policy. 

“Standards” means telecom and CODEC standards (including any successors or derivatives) as well as any rights offered by patent
pool licensing agencies such as MPEGLA, VIA Licensing and HDMI Licensing. 
 Examples include, without
limitation: 
 - Global System for Mobile (Communications) (GSM) 

- General Packet Radio Services (GPRS) 

- Code Division Multiple Access (CDMA) 

- Single Carrier Radio Transmission Technology (CDMA/1xRTT) 

- MPEG (audio and video) 
 MS may update this list for Company’s reference purposes on the ECE. 

“Successor Agreement” is defined in section 13(b). 
 “Supplement” means a supplement to or replacement of any part of a Product that MS provides to Company. Additional terms for Supplements, if any, are set forth in Supplement letters
(“Supplement Letters”). 
 “Suppliers” means MSCORP, MSLI, and other licensors or suppliers of Product or
portions of Product. 
 “Territory” means the specific countries or regions of the world on the Signature Page.

 “Trade Secret” has the same meaning given in the Uniform Trade Secrets Act. 

“Update Image” means an Image that consists of an updated version of the Product binaries such as supplement code and/or an
updated version of the OEM Customer binaries. An Update Image may include the previously distributed version of the Product binaries or the OEM Customer binaries, but not both. 
 “Variance” means each instance in which the Product does not substantially comply with the End User Documentation. 
 “VAT Number” is defined in section 3(f)(i). 
 “Windows Mobile
Distributor” means a MS Distributor that is authorized to distribute Windows Mobile Products. 
  

	2.	License Grant and Limitations 

  

	 	(a)	License Grant. MS grants to Company a non-exclusive, limited license to distribute Products solely: 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 7 

	 	(i)	to OEM Customer into or within the Territory, and 

  

	 	(ii)	worldwide (subject to section 17) to OMs. 

 Company may only distribute Products (released prior to Windows Mobile 6) with MS prior consent. 
  

	 	(b)	Ordering 

  

	 	(i)	Company shall only accept orders from OEM Customers or on behalf of OEM Customers from OMs. 

 

	 	(ii)	Company shall verify via the MOO tool that all orders are from (or on behalf of) parties that have current OEM Customer status. 

 

	 	(iii)	Additional countries may be added to the Territory only after Company’s MS regional channel manager approves the addition and it is added to MOO.

  

	 	(iv)	Company shall not execute a CLA. Company is not permitted to act as an OEM Customer. 

 

	 	(c)	ARs and Available Products 

  

	 	(i)	Company may only acquire APM and COAs from ARs (or MS Party). A list of ARs is available on the ECE. MS may update that listing from time to time.

  

	 	(ii)	Company shall order and acquire from an AR (or MS Affiliate) only Products listed on the Product Viewer Tool. 

 

	 	(iii)	If MS has removed a Product from the Product Viewer Tool, Company may only continue to distribute the Product until the earlier of: 

 

	 	(1)	The Product distribution end date that is set by MS; and 

  

	 	(2)	Termination or expiration of this Agreement. 

  

	 	(iv)	Company may order Recovery Images and Update Images (on behalf of OEM Customers) that are based on Products listed on the Product Viewer Tool. Recovery Images
and Update Images may only be distributed to OEM Customers, or OMs on behalf of OEM Customers. 

  

	 	(d)	Packaging Intact 

  

	 	(i)	Company shall distribute the Product in the unopened form/packaging as received from the AR and/or MS Party. 

 

	 	(ii)	Company shall not modify or remove any part of the contents or packaging of the Product. 

 

	 	(e)	Inventory Control. Company shall maintain a level of security sufficient to prevent loss or unauthorized distribution of Product. 

 

	 	(f)	No Conflicts. Company shall not provide to OEM Customers any non-MS information that conflicts with or supersedes or purports to supersede the CLA, any ARAs or
the OEM ALPs. 

  

	 	(g)	Product-Specific Terms. Company shall comply with the Distributor ALTs. 

 

	 	(h)	Potential OEM Customers. Company shall perform the following steps for each potential OEM Customer. Company shall: 

 

	 	(i)	Ensure that it uses the most current CLA and ARA forms. 

  

	 	(ii).	Before any potential OEM Customer signs a CLA, ensure that the company is within the Territory. 

 

	 	(iii)	Notify each potential OEM Customer that only an authorized signatory of the prospective OEM Customer may execute the CLA or ARA. 

 

	 	(iv)	Provide the potential OEM Customer a courtesy copy of the applicable OEM ALPs before the OEM Customer first licenses any Product. 

 

	 	(v)	Verify that: 

  

	 	(1)	The information provided by the potential OEM Customer is complete and correct; 

 

	 	(2)	No changes or alterations have been made to the CLA or ARA; and 

  

	 	(3)	Each such agreement has been properly completed and executed by an authorized representative of the potential OEM Customer. 

 

	 	(i)	New OEM Customers. Company shall perform the following steps for each new OEM Customer. Company shall: 

 

	 	(i)	If the OEM Customer requests ARAs, comply with the instructions described in the Resource Guide. 

 

	 	(ii)	Provide Recovery Images and Update Images to OEM Customers as received from an AR and in accordance with the Resource Guide. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 8 

	 	(iii)	Provide Supplements on external media as received from an AR and any related OEM ALPs for OEM Customer only in the manner set forth in the applicable Supplement
Letter from MS. 

  

	 	(iv)	Forward to MS OEM Customer-signed originals of any CLAs and ARAs returned to Company in time for sales-out reporting. 

 

	 	(j)	Interim Shipments. MS agrees that between the time Company obtains the OEM Customer’s signature on the CLA and the date MS countersigns:

  

	 	(i)	Company may distribute Products to the OEM Customer, and 

  

	 	(ii)	***. CLAs should be processed in time for sales-out reporting. 

  

	 	(k)	OEM Customer Notices. Company shall instruct each OEM Customer that: 

 

	 	(i)	Design Restrictions on High Risk Activities. The Products are not fault-tolerant and are not designed, manufactured or intended for any use requiring fail-safe
performance in which the failure of a Product could lead to death, serious personal injury, or severe physical or environmental damage (“High Risk Activities”). This includes the operation of aircraft or nuclear facilities. OEM
Customer agrees not to use, or license the use of, the Product in connection with any High Risk Activities. 

  

	 	(ii)	OEM Customers may only distribute Products: 

  

	 	(1)	As part of the OEM Customers’ Devices; 

  

	 	(2)	That were obtained by the OEM Customers directly from an MS-authorized distributor; and 

 

	 	(3)	In accordance with the CLA, the OEM ALPs, and the ARAs. 

  

	 	(iii)	OEM Customers may only reproduce and distribute Update Images, Supplements, and Recovery Images in accordance with the CLA. 

 

	 	(l)	IP Notices 

 Company shall
not remove or obscure any copyright, trademark or patent notices that appear on the Product as delivered to Company. 
  

	 	(m)	MS Logos. Company’s use of any logo of MS or MSCORP requires a separate logo license from MSCORP. Logo licenses and standard guidelines are posted at ***.

  

	 	(n)	Unauthorized Distribution. Upon notice from MS, Company shall promptly discontinue distribution of Product to OEM Customers or to a potential OEM Customer.
Company shall cooperate with MS in investigating instances of unauthorized distribution of Products. Company shall make commercially reasonable efforts to retrieve any Products previously distributed to such OEM Customers or potential OEM Customer.

  

	 	(o)	No Reverse Engineering 

  

	 	(i)	Company must not reverse engineer, decompile, or disassemble the Product, except and only to the extent applicable law expressly permits the activity.

  

	 	(ii)	If Company is located in the EU, and it elects to exercise its rights under applicable laws that implement Article 6 of the European Community’s Directive
for the Legal Protection of Computer Programs, OJL 122/42 (17 May 1991) (the “Directive”) then section 2.o.(iii) applies. 

  

	 	(iii)	Before exercising any possible rights under the Directive, Company shall do both of the following things. 

 

	 	(1)	Notify MS of the Company’s good faith belief that: 

  

	 	(A)	Information required to achieve the interoperability of an independently created computer program is not otherwise available; and 

 

	 	(B)	Decompilation is indispensable within the meaning of the Directive. 

 

	 	(2)	Provide MS with a commercially reasonable amount of time to respond to Company regarding such assertions. 

 

	 	(p)	No Representations for MS 

Company shall not make any representation or warranty (express or implied) to OEM Customer, or any other third party, on behalf of MS.
Company shall defend, indemnify, and hold MS and its Suppliers harmless from any claim or damages and reasonable attorneys’ fees arising out of any warranty or representation by Company. 

 

	 	(q)	This Agreement does not give Company title to any Product, packaging, papers, materials, or other property of MS related to a Product.

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 9 

	 	(i)	MS retains title to all APM and COAs (and related materials) from the time that the Product is acquired by Company until Company distributes the
Products to or for the OEM Customers.

  

	 	(ii)	In no circumstances will any receiver or trustee of Company be entitled to sell or distribute any Product obtained by Company pursuant to this Agreement.

  

	 	(r)	Unless otherwise provided in writing from MS, Company may not deliver Product to any other company that has an effective Microsoft OEM Windows Mobile
Distribution Agreement. 

  

	 	(s)	Company agrees that it has received and reviewed a courtesy copy of the Minimum Requirements (if applicable in the Territory). Company further agrees to achieve
compliance with the Minimum Requirements (if any) within *** days of the Start Date and to maintain such compliance after that. *** 

  

	 	(t)	Drop Ship Option Available. OEM Customers may request that orders from Company be shipped directly from the AR to an OM (whether or not situated within the
Territory). Company must forward this request using the “Drop Ship Request Form” to the MS account manager for approval. If approved, notice will be sent to Company and the AR to begin processing of the purchase order.

  

	 	(u)	Outsource Manufacturer Placement of Purchase Orders. Under certain circumstances an OM may place a purchase order directly with a Microsoft approved distributor.
The OM is required to include the following information of the purchase order: the name of the OEM Customer, CLA number of the OEM Customer, and the activity to be performed on behalf of the OEM Customer. If Company receives such a purchase order,
Company must i) verify that OEM Customer has an active CLA and that the OM has already been approved as part of the OM ARA process by MS; and ii) when shipping the order to the OM, Company must notify the OEM Customer of the shipment.

  

	 	(v)	OEM Customer GSD 

  

	 	(i)	Company must use an AR to reproduce the OEM Customer GSD for each OEM Customer. 

 

	 	(ii)	Company may not modify, obscure or omit any files contained on the MS GSD. 

 

	 	(iii)	Company may replace defective OEM Customer GSDs. Company or OEM Customers must send the replacement directly to the End User. OEM Customers must not use the
Channel to send replacements. 

  

	 	(w)	Distributor ALTs 

  

	 	(i)	Limited Distribution. The Traditional Chinese language version of any Windows Mobile Product may not be distributed by or for Company within or to the
People’s Republic of China. Company will defend, indemnify and hold MS Parties harmless against any third party claims, demands, liability or damages resulting from Company’s failure to notify any OEM Customer of these limits.

  

	 	(ii)	Upgrade Products. If the name of a Windows Mobile Product includes “UPGRADE”, then an OEM Customer must have in effect a Microsoft OEM Customer
License Agreement for Field Upgrade prior to distributing that Product. 

  

	3.	Reports and Payments 

  

	 	(a)	Royalty Rate List 

  

	 	(i)	MS will post the Royalty Rate List on the ECE. 

  

	 	(ii)	MS may modify the Royalty Rate List upon *** notice to Company. Submission of Product orders to ARs or distribution of Product after the effective date of any
modifications to the Royalty Rate List shall constitute Company’s acceptance of such modifications. The new Royalty Rate List will be effective on the date specified on the Royalty Rate List or, if no date is specified, *** after notice of the
change. 

  

	 	(iii)	If Company elects to participate in the OEM Volume Royalty Program, Company shall comply with the terms and conditions in the OEM Volume Royalty Program Schedule.

  

	 	(iv)	MS may offer a performance rebate program (“Rebate Program”) to encourage its distributors to promote and expand sales of Products. Company may qualify to
participate in the Rebate Program and earn rebates for achieving defined objectives as outlined on ECE. Company should contact its MS account manager with any questions about the Rebate Program. 

 

	 	(b)	Sales-Out Reports 

  

	 	(i)	Within *** days after the end of each calendar month, Company shall provide a report as required by the then-current Reporting Guidelines. Company shall provide its
final report *** days after this Agreement terminates or expires. 

 If Company fails to submit a sales-out
report, Company may receive daily notices from MS to correct the problem. MS may invoice Company based on Product shipment reports submitted to MS by the ARs. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 10 

 By the end of each calendar month, for the prior month Company must provide to MS a Mobile
Indirect Channel Landed Revenue Report posted on the ECE. 
  

	 	(ii)	Company shall ensure that all reports under this Agreement: 

  

	 	(1)	are accurate and complete, 

  

	 	(2)	are in compliance with the requirements in the Reporting Guidelines, and 

  

	 	(3)	are in compliance with any Minimum Requirements applicable in the Territory. 

 

	 	(iii)	Company shall take all steps necessary to ensure that they comply with all applicable local and national data protection laws when collecting and providing data to MS.

  

	 	(c)	Royalty Payments. For each unit of Product distributed by Company, Company agrees to pay MS the royalty rate in the Royalty Rate List in effect during the month
in which Product is shipped by Company. Company shall pay royalties within *** days after the end of each calendar month in which Product was shipped. Company shall pay royalties within *** days after the termination or expiration date of this
Agreement for all Product distributed in the final full or partial month, as well as all inventory not returned to MS. 

  

	 	(d)	Monthly Payments. For each calendar month, Company shall remit payment to MS via wire transfer, as specified in the Payment section of the Reporting and Payment
Schedule. 

  

	 	(e)	Late Payments 

  

	 	(i)	If Company does not meet MS payment terms, MS may, without limiting its remedies, do any of the following: 

 

	 	(1)	require the AR to suspend all pending Company orders; or 

  

	 	(2)	terminate this Agreement. 

  

	 	(ii)	If Company fails to pay any royalty or other payment due under this Agreement by the applicable due date, then MS may apply a late charge on the past due amount. To the
extent permitted by applicable law, the late charge will be assessed at an annual rate equal to ***%. The late charge will accrue monthly (before and after any judgment) from the due date through the date of actual payment (both dates inclusive).
Late charges will be applied and without prejudice to any other right or remedy available to MS. 

  

	 	(f)	Currency 

 All payments
must be in U.S. dollars and amounts owed will not be satisfied by a tender or any recovery pursuant to any judgment that is expressed in or converted by MS to any currency other than U.S. dollars. 

 

	 	(g)	Withholding Tax 

  

	 	(i)	If Company is required by any foreign tax authority to withhold taxes on payments to MS, then Company may deduct such taxes from the amount owed MS and pay them to that
authority. Company must deliver to MS an official receipt for any taxes withheld (or other documents necessary) for MS to claim a foreign tax credit. Company must deliver the receipt within *** days of payment of the tax. If MS is defined as MSLI or
MCCL, a foreign tax authority is a non-U.S. authority. If MS is defined as MIOL, a foreign tax authority is a non-Irish authority. If Company does business in a jurisdiction that uses the Value Added Tax or sales tax numbers (“VAT Number”)
for tax identification purpose, Company must provide its VAT Number in the Reporting and Payment Schedule. 

  

	 	(ii)	Tax Certificate. If Company conducts business in the U.S.A. and qualifies for a state resale tax exempt certificate, then Company shall provide MS with a copy of
its U.S.A. state resale tax exempt certificate, if applicable, with this Agreement when it is returned for signature by MS. 

  

	 	(h)	Credit Review. MS reserves the right to review Company’s financial condition, payment history, and overall credit worthiness during the term of this
Agreement. By signing this Agreement Company authorizes MS to access any credit bureaus or agencies to inquire about Company’s financial condition. Upon request, Company shall provide its current audited financial statements. After review of
Company’s financial condition, payment history and overall credit worthiness, MS may require any of the following payment assurances: 

  

	 	(i)	An initial payment equal to the estimated Product royalties for the first calendar quarter of the Agreement (or the quarter following the review). Company may not
recoup any of that payment against royalties due to MS or apply it against payments to any AR. If Company has complied with all material terms of this Agreement when it expires, MS will refund the initial payment amount (net of amounts due MS)
within *** days of Company’s final royalty report and payment for Products distributed during the term of this Agreement. 

  

	 	(ii)	A third party guarantee, performance bond, letter of credit, prepayment of royalties, or other security. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 11 

	 	(iii)	Periodic updated financial statements. 

  

	 	(iv)	Written assurances of due performance. 

 Until the deposit amount and/or payment assurances is/are received and acceptable to MS, MS may suspend Company’s license rights or require ARs to refuse to fill Company’s orders. 

 

	 	(i)	Over- Reporting Error. If Company discovers an over-reporting error, Company shall report the error to MS in writing within *** calendar months after the end of
the calendar month in which the Product was distributed. 

  

	 	(j)	Order Limits. MS may require ARs to refuse or limit orders placed by Company in quantities greater than Company will be able to make timely payment for or
distribute. MS will give Company written notice if it takes this action. 

  

	 	(k)	Taxes and AR Charges Excluded. Royalties exclude any taxes, duties, fees, excises or tariffs imposed on any of the Company’s activities in connection with
this Agreement. Company must pay these charges, taxes and other fees. Royalties also exclude any charges by the AR for COAs or APM. 

  

	 	(l)	Default Charge. Company must pay the Default Charge for each unit of Product distributed in violation of the terms of this Agreement. If Company cannot account
for Product, those missing Products will be deemed to have been distributed in violation of this Agreement. The parties agree that the unauthorized distribution of Product would result in damages to MS that are impractical and difficult to
ascertain. The parties also agree that the Default Charge is a reasonable and genuine estimate of the loss to MS. Payment of the Default Charge shall constitute MS’ sole and exclusive compensatory remedy in case of unauthorized distribution of
Product, provided, that this does not limit MS’ ability to seek equitable relief in case of unauthorized distribution of same. 

  

	 	(n)	Damaged Materials. For COAs and APM damaged irreparably during the ordinary course of Company’s business, Company shall: 

 

	 	(i)	Maintain a log of each damaged or destroyed COA. For each such COA, the log must include the date damaged or destroyed, Product name, COA number and cause of damage or
destruction. 

  

	 	(ii)	Return each damaged COA to the AR and/or MS Affiliate from which the COA was acquired As outlined in the Returns and Destruction Process on ECE.

  

	 	(o)	Materials in Transit. Company assumes all risk of loss or damage to COAs and APM in transit between AR and Company. 

 

	 	(p)	 Exchange Rate. All payments shall be made in the currency set forth in the Agreement. All amounts in the Agreement listed in RMB are based on
U.S. Dollars. Company will pay invoices in RMB. MS will determine the exchange rate at the end of each calendar quarter. MS will use the foreign exchange mid-range rate published in The Wall Street Journal on the 7th day of the month before the last day of the calendar quarter. If the
Wall Street Journal does not publish that rate on the 7th
day of the month before the end of the quarter, MS will use the last Wall Street Journal rate published prior to the
7th day of the month. 

 

	4.	No Warranties 

  

	 	(a)	Each Product is licensed “as-is.” The OEM Customer and its end users bear the risk of using it. MS gives no express warranties, guarantees or conditions.
To the extent permitted under applicable laws, MS excludes the implied warranties of merchantability, fitness for a particular purpose and non-infringement. 

 

	 	(b)	Neither MS nor its Suppliers shall have any liability for failure to deliver any Product by any particular date. 

 

	5.	Product Discontinuance and Returns 

  

	 	(a)	If MS or its Suppliers determine that a Product should not be distributed in a market, Company shall immediately stop distributing upon written notice.

  

	 	(b)	Company shall defend, indemnify, and hold MS and its Suppliers harmless from and against all damages, costs and expenses, including reasonable attorneys’
fees, incurred due to Company’s continued distribution of Product after MS has notified Company to stop distributing the Product. 

  

	 	(c)	Replacement Units. No additional royalty shall accrue to MS for a Device or Recovery Image media that is shipped to replace a defective unit. Company must
distribute such replacement units directly to OEM Customer and at no charge, except for the reasonable costs Company incurs for materials, shipping, and handling. 

 

	 	(d)	Returns. Company shall manage any returns of Product in accordance with the then-current Returns and Destruction Policy on the ECE. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 12 

	6.	Limitations of Liability 

  

	 	(a)	Liability Cap 

  

	 	(i)	MS Parties have limited liability under this Agreement. 

  

	 	(1)	MS Parties’ liability is limited for each Product. 

  

	 	(2)	MS Parties’ liability will not exceed *** of the amount of actual payments by Company for such Product. This amount is also limited to payments during the original
term of this Agreement. 

  

	 	(3)	This limit includes MS’ duties arising under section 8. 

  

	 	(ii)	The liability limit in this section 6.a. does not apply to any attorneys’ fees and expenses incurred by MS under section 8 only. 

 

	 	(b)	Exclusion Of Certain Damages And Limitation Of Types Of Liability 

  

	 	(i)	Company agrees that the MS Parties shall not be liable to Company or to any third party for any of the following. 

 

	 	(1)	Economic damages ((i)e., damages from loss of profits or revenues, business interruption and loss of business information or data). 

 

	 	(2)	Consequential damages. 

  

	 	(3)	Special damages. 

  

	 	(4)	Incidental damages. 

  

	 	(5)	Indirect damages. 

  

	 	(6)	Punitive damages. 

  

	 	(ii)	Company agrees that the foregoing limitations apply: 

  

	 	(1)	Even if MS Parties have been advised of the possibility of such damages; 

 

	 	(2)	Even in the event of any MS Parties’ fault, tort (including negligence), misrepresentation, strict liability or product liability; and

  

	 	(3)	Even if any remedies fail of their essential purpose. 

  

	 	(c)	Release. Company releases MS Parties from all liability in excess of the limits in this section 6. This release includes any claim for indemnification or
contribution even if such claims arise under local law. 

  

	7.	Product Support  

  

	 	(a)	This Agreement does not include technical support by MS to Company, OEM Customers or any end users. Company may be able to purchase technical support services
from MS or a MS Party, under a separate agreement. 

  

	 	(b)	Company shall provide commercially reasonable support for the Products to OEM Customers or seek verification from MS that an OEM Customer has an ongoing
agreement with MS to provide support for the Products. Company shall advise OEM Customers to contact Company for support, except for those OEM Customers that have a support agreement directly with MS. 

 

	 	(c)	During the term of this Agreement, Company must enter into a Microsoft Premier Support Services Agreement for support of the Windows Mobile Products.

  

	 	(d)	Upon request, Company shall provide a copy of its current OEM Customer support policy for the Products. Company shall provide MS with *** days’ prior
written notice of any substantive change in Company’s support policy for Products. 

  

	8.	Defense of Intellectual Property Infringement Claims 

  

	 	(a)	Coverage. MS agrees to defend, at MS’ expense, Company in a lawsuit or other judicial action, and pay the amount of any adverse final judgment (or
settlement that MS consents to) from the lawsuit or judicial action, for any third party claims that Products (excluding Sample Code): 

  

	 	(i)	misappropriate a trade secret, 

  

	 	(ii)	infringe any copyright or trademark rights, or 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 13 

	 	(iii)	infringe any patents (except for patents that are alleged to be infringed by or essential to an implementation of a Standard - provided that this exception does not
apply to third party claims where Customer has merely distributed the Products in compliance with this Agreement and in the form as it was provided to Customer by MS). 

Each of these individually referred to in this Agreement as a “Claim”. 

 

	 	(b)	Conditions. In order for MS to have obligations for any Claim: 

  

	 	(i)	Company must promptly notify MS of the Claim; 

  

	 	(ii)	MS must have sole control over defense and/or settlement of the Claim; and 

 

	 	(iii)	Company must give MS reasonable assistance in the defense of the Claim (MS will reimburse Company for its reasonable out-of-pocket expenses that Company incurs in
providing that assistance, excluding employee compensation or attorney’s fees). 

  

	 	(c)	Limitations 

  

	 	(i)	Trade Secret Claims. The terms “misappropriates” or “misappropriation” and “trade secret” are used as defined in the Uniform Trade
Secrets Act. If this Agreement is governed by the laws of a jurisdiction outside the United States, in which case “misappropriation” will mean “intentionally unlawful use” and “trade secret” will mean “undisclosed
information” as specified in Article 39.2 of the Agreement on Trade-Related Aspects of Intellectual Property Rights, including Trade in Counterfeit Goods (TRIPS Agreements). 

MS has no duty or liability to the extent that the trade secret Claim is based on Company acquiring a trade secret 

 

	 	(1)	through improper means; 

  

	 	(2)	under circumstances giving rise to an independent duty by Company to maintain secrecy or limit the use of the trade secrets; or 

 

	 	(3)	from a party (other than MS or its suppliers) that owed a duty to maintain the secrecy or limit the use of the trade secret to the party asserting the trade secret
Claim. 

  

	 	(ii)	Patent Claims 

  

	 	(1)	MS obligations for any patent Claims are limited to patent Claims where the Product (excluding Sample Code) software alone, without combination or modification,
constitutes direct or contributory infringement of the patent. 

  

	 	(2)	MS has no responsibility for damages attributable to the value of the use or distribution of a non-Microsoft product. 

 

	 	(iii)	Excluded Claims. MS has no duty or liability for any intellectual property infringement claim (including a Claim) based on Company’s manufacture, use, sale,
offer for sale, importation or other disposition or promotion of Products or trademark in violation of the applicable Agreement, but only to the extent that such infringement claim results from such violation. 

 

	 	(iv)	Mitigation. MS may give Company notice recommending that Company stop the manufacture, use, sale, offer for sale, importation or other disposition or promotion
of Products or trademark due to a claim (including a Claim). MS has no duty or liability for an intellectual property infringement claim (including a Claim) based on Company’s manufacture, use, sale, offer for sale, importation or other
disposition or promotion of a Product or trademark after such *** day notice. 

  

	 	(v)	Failure to Mitigate. Company must reimburse MS and MSCORP for all damages, costs, and expenses (including reasonable attorneys’ fees) incurred because of
Company’s manufacture, use, sale, offer for sale, importation or other disposition or promotion of Product or trademark after such *** day notice. 

  

	 	(d)	Additional Options. If MS receives information concerning a Claim, MS may, at its option and expense, but without obligation to do so, undertake further actions
such as 

  

	 	(i)	procure the copyright, trademark or patent rights or licenses to address the Claim, or 

 

	 	(ii)	replace or modify the Product or trademark to make it non-infringing. 

  

	 	(e)	Injunctions. If (i) as a result of a Claim, a court enjoins Company or MS for distributing any Products, or (ii) as a result of a regulatory action, a
regulatory agency prohibits or geographically restricts Company or MS from distributing any Products, and within *** days 

  

	 	(1)	the injunction, prohibition or restriction is not lifted, 

  

	 	(2)	MS has not procured a license or arranged a settlement that enables the shipment of the Products, and 

 

	 	(3)	MS has not modified the Products to make them non-infringing, 

 then Company may return the corresponding Products for credit as allowed in this Agreement and the then-current Resource Guide, solely for the remaining duration of the injunction relief, prohibition, or
restriction. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 14 

	9.	Records; Audit 

  

	 	(a)	Product Records. Company will maintain accurate and complete Product records. 

 

	 	(b)	Product Returns. Company may return Products. Each return must comply with the returns policy and procedure in the then-current Returns and Destruction Policy on
the ECE. 

  

	 	(c)	Product Reports. Company will account for Products in inventory on a monthly basis. Products in inventory include Products at all Company facilities. Company
will make this accounting available to MS upon request. The Product accounting will reconcile beginning and ending Product inventory. It will also include: 

 

	 	(i)	Product and APM acquisitions from ARs and MS Affiliates. 

  

	 	(ii)	COA serial number ranges on the Runtime License envelopes with corresponding shipment dates. 

 

	 	(iii)	OEM Customers’ returns. 

  

	 	(iv)	COAs, Product and APM that cannot be distributed for any reason. 

  

	 	(v)	Product shipped as replacement units. 

  

	 	(d)	Payments. If Company discovers a discrepancy resulting in an underpayment to MS, Company will pay MS if there is a difference between the number of Runtime
Licenses acquired by Company from ARs and MS Affiliates and: 

  

	 	(i)	The number of Runtime Licenses distributed by Company pursuant to this Agreement; plus 

 

	 	(ii)	The number of Runtime Licenses that Company can verify are in the possession of Company; plus 

 

	 	(iii)	The number of Runtime Licenses properly returned to the AR (or MS Affiliate, if applicable). 

The payment amount will be the difference in units multiplied by the royalty rates that apply for the units. Company will submit a revised
sales-out report and pay in accordance with section 3. If Company can show (to the reasonable satisfaction of MS) that Product was destroyed due to a Force Majeure Event, then it will not pay for those units of Product. 

 

	 	(e)	Company Records; MS Inspection 

  

	 	(i)	MS may inspect Company’s records related to compliance with this Agreement. MS will provide written notice to Company at least *** days before MS inspects these
records. 

  

	 	(ii)	During the term of this Agreement, and for *** years after, Company must keep complete and accurate records relating to its performance under this Agreement.

  

	 	(iii)	Company will make the records available to MS at a single, readily accessible location. 

 

	 	(iv)	MS may ask third parties to help inspect these records. These third parties will be certified or chartered public accountants. They will be independent from MS. The
third parties will not be hired on a contingent fee basis. 

  

	 	(v)	MS will inspect the records during regular business hours. 

  

	 	(vi)	MS may also inspect Company’s premises. Company will grant access to MS with the following limits. 

 

	 	(1)	MS will give Company *** days’ prior notice. 

  

	 	(2)	MS’ access shall be limited. MS may only access areas where: 

  

	 	•	 	 Product is stored and used; 

  

	 	•	 	 the Products are copied (if Company is an OM), stored, installed (if Company is an OM), used, and distributed; and 

 

	 	•	 	 Company maintains its records. 

  

	 	(3)	Company personnel may escort MS and the third parties helping MS. MS agrees that it will not unreasonably interfere with Company’s normal course of business.

  

	 	(f)	Amounts Owed. MS will provide Company with a summary of MS’ findings and conclusions of each audit. 

 

	 	(i)	MS may determine Company did not report correctly. If so, Company will immediately pay the amount owed to MS. 

 

	 	(ii)	MS may determine Company has intentionally breached this Agreement (or a previous Microsoft OEM Windows Mobile Distribution Agreement), or that the amount owed exceeds
the Material Amount. If so, Company will also pay the costs of the audit plus a Default Charge for each unreported copy of Product. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 15 

	 	(g)	MS will not do an audit more than once a year. However, MS may audit more than once a year if an audit finished during the preceding year revealed a Material
Amount or an intentional breach of this Agreement. 

  

	10.	Non-Disclosure 

Company shall keep confidential: 
  

	 	(a)	the terms of this Agreement, including, without limitation, the Royalty Rate Lists; 

 

	 	(b)	information on the ECE, MOO and in the Resource Guide; 

  

	 	(c)	information concerning current and potential OEM Customers; 

  

	 	(d)	any of the following with regard to MS or any of its Suppliers: 

  

	 	•	 	 royalty rate information, 

  

	 	•	 	 the terms of agreements concerning products, 

  

	 	•	 	 license negotiations, 

  

	 	•	 	 any information relating to released or unreleased software products, 

 

	 	•	 	 the marketing or promotion of any product, 

  

	 	•	 	 and business policies or practices that MS or its Suppliers disclose to Company that is non-public information, and 

 

	 	(e)	any other information that, in the circumstances surrounding the disclosure or in the nature of the information, ought in good faith to be treated as confidential.

  

	11.	Assignment  

Company may not assign this Agreement in whole or in part (by contract, merger, operation of law, or otherwise). Any attempted assignment
in violation of this section shall have no effect. MS may assign any license agreement to a MS Affiliate as long as the assignment does not unreasonably and materially impair performance under the assigned agreement. MS must give Company prior
notice of the assignment. Failure to give notice will not affect the effectiveness of the assignment 
  

	12.	MOO and ECE 

Company shall comply with the terms and conditions in the MOO and ECE Schedule. 

 

	13.	Term 

  

	 	(a)	This Agreement is effective from the Start Date until the End Date. MS may extend the term of this Agreement for up to one year period upon notice to Company.
Company’s acquisition or distribution of Product during an extension signifies Company’s agreement to the terms of the extension. Both parties agree to be bound by the terms of any extension notification, if accepted by Company.

  

	 	(b)	If Company enters into a new distribution agreement with MS that grants substantially similar rights for Products licensed under this Agreement (a “Successor
Agreement”), Company may retain Product, if all the following are true. 

  

	 	(i)	The Products, are used in accordance with the terms and conditions of the Successor Agreement, including without limitation applicable royalties.

  

	 	(ii)	The Successor Agreement has an effective date no later than *** days following the termination or expiration of this Agreement. 

 

	 	(iii)	MS has not objected in writing to such use within *** days following the effective date of the Successor Agreement. 

 

	 	(c)	If Company is currently licensed to distribute the Product under a valid agreement with MS (“Prior Agreement”), then as of the Start Date of this Agreement:

  

	 	(i)	Company’s license to order and distribute the Product under the Prior Agreement shall cease; and 

 

	 	(ii)	Company shall report and pay for the Product under the terms and conditions of this Agreement. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 16 

	 	(d)	This Agreement does not create any express or implied obligation to renew or extend the Agreement or to continue the parties’ relationship on the same terms.
Regardless of the number of renewals, this Agreement will always be a fixed term agreement and not an indefinite term agreement. 

  

	14.	Termination 

  

	 	(a)	Either party may terminate this Agreement at any time without cause by giving the other 60 days prior written notice. 

 

	 	(b)	MS may, in its’ sole discretion: 

  

	 	(i)	suspend any rights granted to Company under this Agreement; 

  

	 	(ii)	require ARs to refuse to fulfill or to limit orders placed by Company; and/or 

 

	 	(iii)	terminate this Agreement in its entirety or as to any individual Products. 

 

	 	(c)	MS may terminate this Agreement if Company submits “zero dollar” royalty reports for *** calendar months. 

 

	 	(d)	Notice for Bankruptcy. If Company becomes insolvent, enters bankruptcy or similar proceedings under applicable law; admits in writing its inability to pay its
debts; or makes or attempts to make an assignment for the benefit of creditors, then: 

  

	 	(i)	Company’s distribution rights under this Agreement will be suspended as of the date such event occurs; and 

 

	 	(ii)	Termination is effective upon notice to Company or, if later, as soon as permitted by applicable law. 

 

	 	(e)	End of Agreement. Termination will be effective 

  

	 	(i)	*** days after notice (including reasons for termination) by the non-breaching party, provided the defaults have not been cured within that period; or

  

	 	(ii)	If the cause for termination is not curable during that time, termination will take effect promptly upon notice from the party who is not in breach.

  

	 	(f)	Effect of Termination. Upon termination or expiration of this Agreement, all Company’s license rights shall immediately cease. 

 

	 	(i)	Company shall immediately cease distribution of all Product. 

  

	 	(ii)	Within *** business days from expiration or termination of the Agreement, Company shall return: 

 

	 	(1)	All Products in inventory to an AR per the Returns and Destruction Policy on ECE. 

 

	 	(2)	All CLA and ARA forms to MS at the address indicated in the Notices Schedule. 

 

	 	(3)	Any other property of any MS Party that Company possesses to MS at the address indicated in the Notices Schedule. 

 

	 	(g)	Upon notice that this Agreement is expiring or to be terminated, each party must assist the other to wind-down their respective obligations under this Agreement in an
orderly manner. 

  

	 	(h)	When this Agreement terminates or if MS suspends Company’s distribution rights, MS may take any actions that may be advisable to prevent unauthorized distribution
of Products then in Company’s inventory and to ensure timely return or destruction of such Products. 

  

	 	(i)	Company agrees that the termination or expiration of this Agreement shall not cause any MS Party to pay any indemnification, severance or termination payment or benefit
to Company, or any of its subsidiaries or affiliates, or a third party (together “Company Parties”). If any MS Party is required to pay Company Parties any compensation, severance pay or benefit other than those in this Agreement
(“Benefits”), Company shall indemnify the MS Party for the payment as well as from any reasonable costs and expenses (including attorneys’ fees and expenses) incurred by it in connection with its involvement in any judicial or
administrative proceeding (the Benefits, together with any costs and expenses indemnifiable by Company in this section are referred to collectively as the “Payments”). Company irrevocably authorizes MS: 

 

	 	(i)	To set off against the payment of any obligations of MS under this Agreement, the amount of any and all Payments, and 

 

	 	(ii)	To hold, pending final determination of the amount of the Payments, the payment of any obligations of MS under this Agreement as security for the payment of all
Payments by Company to MS, if MS, in its sole discretion, determines that there are reasonable grounds to believe that MS is or shall be required to pay any Payments. 

 

	 	(j)	The remedies available to MS under this Agreement are not exclusive. In addition to such remedies, MS may exercise any and all legal, equitable or other remedies
available. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 17 

	15.	Notices 

  

	 	(a)	By MS. MS may give Company notices, authorizations, and requests in connection with this Agreement by: 

 

	 	(i)	Fax to the fax number listed in the Notices Schedule; or 

  

	 	(ii)	In writing to the addresses indicated in Notices Schedule. 

 In addition, only for updates or changes to information, instructions or forms (but not this Agreement), MS may give Company notices, authorizations and requests by: 

 

	 	•	 	 Posting them to the ECE or MOO, or 

  

	 	•	 	 Email to the email address listed in the Notices Schedule. 

 

	 	(b)	By Company. Company may give MS notices, authorizations, and requests in connection with this Agreement by: 

 

	 	(i)	Fax on Company letterhead signed by an authorized representative of Company to the fax number listed in the Notices Schedule; 

 

	 	(ii)	Email at the email address listed in the Notices Schedule as a scanned document on Company letterhead signed by an authorized representative of Company; or

  

	 	(iii)	In writing on Company letterhead signed by an authorized representative of Company to the addresses indicated in the Notices Schedule. 

 

	 	(c)	Deemed Received. Notices are deemed received *** business days after they are: 

 

	 	(i)	Posted on the ECE or MOO by MS; 

  

	 	(ii)	Transmitted by fax or email; 

  

	 	(iii)	Deposited in the U.S.A. mails, postage prepaid, certified or registered, return receipt requested, provided Company’s address for notices is located in the U.S.A.;
deposited in the European Union (EU) or European Free Trade Association (EFTA) mail, prepaid recorded delivery, provided Company’s address for notices is located in the EU or EFTA; sent by same-day ground express courier; or

  

	 	(iv)	Sent by international air express courier, charges prepaid. 

  

	 	(d)	Address Schedule. Company shall keep all information in the Notices Schedule and the Reporting and Payment Schedule complete and current. Company shall notify MS
of such change as set forth in section 15.b. 

  

	 	(e)	If there has been a Company ownership (by contract, merger, operation of law or otherwise) or Company name change, then MS may require Company:

  

	 	(i)	to provide MS with additional information and relevant documents relating to the circumstances of the change; and 

 

	 	(ii)	to enter into a new Microsoft OEM Windows Mobile Distribution Agreement. 

  

	 	(f)	Information posted on the ECE and MOO may change without notice until the effective date of such information. MS may correct errors in information posted on the ECE and
MOO or update posted documents after the Start Date by sending notice to Company. 

  

	16.	Choice of Law; Jurisdiction and Venue; Attorneys’ Fees 

  

	 	(a)	MSLI If MS is defined as MSLI, Washington State law governs this Agreement and any claims for breach of this Agreement, regardless of conflict of laws
principles. The federal courts in Washington State or New York State are the exclusive venues for all disputes arising from this Agreement. The state courts of Washington State are the exclusive venue if there is no federal subject matter
jurisdiction. Each party consents to the exercise of personal jurisdiction by these courts. Each party agrees that it cannot revoke this consent. 

  

	 	(b)	MIOL. If MS is defined as MIOL, the laws of Ireland govern this Agreement and any claims for breach of this Agreement, regardless of conflict of laws principles.
The courts of Ireland are the exclusive venues for all disputes arising from this Agreement. Each party consents to the exercise of personal jurisdiction by these courts. Company agrees, for the benefit of MS and MS Affiliates, that the courts of
Ireland will have jurisdiction to hear and determine any suit, action, or proceedings that may arise out of or in connection with this Agreement. For those purposes, Company submits to the jurisdiction of those courts. Each party agrees that it
cannot revoke this consent. 

  

	 	(c)	 MCCL. If MS is defined as MCCL, the laws of the People’s Republic of China govern this Agreement. Company consents to submit any disputes
arising from and/or in connection with this Agreement, and all related matters to the binding arbitration at the China International Economic and Trade Arbitration Commission (CIETAC) in Beijing. Proceedings will be held in accordance with

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 18 

	 	 
CIETAC’s arbitration rules in effect at the time of applying for arbitration. The arbitration award is final and binding upon both parties as long as the arbitration rules were substantially
complied with in all material respects. Nothing in this Agreement shall prevent MS or its Suppliers from seeking injunctive or provisional relief with respect to a violation of intellectual property rights, the confidentiality obligations under
those agreements, or enforcement or recognition of any award or order in any appropriate jurisdiction. 

  

	 	(d)	Injunctive Relief. MS may pursue injunctive relief against Company in any forum to protect intellectual property rights. If MS pursues injunctive relief in a
forum other than those specified in this section, MS will give prior notice to Company. No notice is required if MS reasonably determines that doing so will prevent it from reasonably protecting its intellectual property. 

 

	 	(e)	UN Convention. The United Nations Convention on Contracts for the International Sale of Goods does not apply to this Agreement. 

 

	 	(f)	Attorneys Fees. If either party employs attorneys to enforce any rights related to this Agreement, the primarily prevailing party will be entitled to recover its
reasonable attorneys’ fees, costs and other expenses. 

  

	 	(g)	This Agreement shall be written and executed only in the English language, which shall be controlling in all respects. If MS provides a translation or summary of this
Agreement in any other language to Company, such translation or summary shall be non-binding and for reference purposes only, and shall not constitute an amendment, modification or interpretation of this Agreement. 

 

	17.	Government Regulations  

  

	 	(a)	Applicable Laws and Regulations. The Products are subject to U.S. and European Union export jurisdiction. Releases or versions of certain Products may be subject
to particular restrictions under the laws and regulations of a certain country or territory. MS Parties and Company will comply with all international and national laws and regulations that apply to the Products. These laws include

  

	 	•	 	 U.S. Export Administration Regulations; 

  

	 	•	 	 all applicable anti-corruption laws, including the U.S. Foreign Corrupt Practices Act; and 

 

	 	•	 	 importation, manufacturing, end user, end-use and destination restrictions issued by U.S. and other governments. 

For additional information on exporting Products from the U.S., see ***. 

 

	 	(b)	Government Approvals. Company must obtain any required local government approvals, at their own expense. 

 

	 	(c)	Additional Information. Company may require additional information about the Products in order to comply with applicable laws and regulations. Upon request, MS
will provide Company with non-confidential Product information that Company reasonably requires, if available. 

  

	18.	General 

  

	 	(a)	Entire Agreement. This Agreement constitutes the entire agreement between the parties for the Products. Except as expressly provided in this Agreement, this
Agreement may be modified only by a writing executed by each of the parties. 

  

	 	(b)	Relationship of the Parties. The parties agree that this Agreement will not be construed as creating a partnership, joint venture or agency relationship or as
granting a franchise. 

  

	 	(c)	No Waiver. No waiver of any breach of any part of this Agreement will be a waiver of any other breach. Any waiver must be in writing and signed by an authorized
representative of the waiving party. 

  

	 	(d)	Severability. If a court of competent jurisdiction finds any term of this Agreement illegal, invalid or unenforceable, the remaining terms will remain in full
force and effect. 

  

	 	(e)	Interpretation. The headings and titles of the provisions of this Agreement are for convenience only and do not affect the interpretation of any provision.
Unless specifically stated, the plural shall include the singular. 

  

	 	(f)	 Force Majeure. “Force Majeure Event” means fire, casualty, or an act caused exclusively by forces of nature, riot, terrorist
act, war, labor dispute, material changes in applicable law or regulation, or decree of any court. Force Majeure Event does not include theft. Neither party will be liable for failing to perform under this Agreement to the extent that a Force
Majeure Event caused the failure. The party subject to the Force Majeure Event must give the other party notice within a commercially reasonable time. As soon as the Force Majeure Event stops, the party must perform the obligations that were not
performed. If COAs are damaged or destroyed due to a Force Majeure Event, Company may be eligible to receive a royalty credit for those COAs. To receive a royalty credit Company must (i) provide the COA ID numbers and (ii) reasonably
demonstrate to MS that the COAs were damaged or destroyed due to a Force Majeure Event. Company must provide documentation related to the damaged or destroyed COAs (e.g., insurance claim documentation, police reports, etc.). If any of those COAs are
found to have not been damaged or destroyed as claimed, Company agrees that it will immediately repay to MS the entire amount of the credit or refund received and a Default Charge for each of those

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 19 

 
COAs. Company must report any destroyed COAs and return any damaged COAs in accordance with the COA return timeframe requirements of the Resource Guide. 

 

	 	(g)	MS Affiliate. Some provisions in this Agreement include Company’s covenants and obligations to MS and MS Affiliates. Some provisions are for the benefit of
MS and MS Affiliates. Company acknowledges and agrees that each MS Affiliate is entitled to its own right to require due performance by Company. To the extent necessary to establish an MS Affiliate’s rights and benefits, MS enters into this
Agreement, not only in its own right, but also as an agent for each such MS Affiliate. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 20 

 OEM VOLUME ROYALTY PROGRAM SCHEDULE 

MS may offer an OEM Volume Royalty Program (“OVRP”). The OVRP enables Company to offer a *** royalty (“OVRP royalty rate”) to OEM
Customers that commit to distributing a specified high volume of Products (“OVRP Customer”) . 
 Company may qualify to participate in
the OVRP as described in the OVRP Guidelines on ECE and by registering in the OVRP tool in MOO. 
 Company and OVRP Customer can participate in
the OVRP provided that: 
  

	 	(i)	Company has a valid Microsoft OEM Windows Mobile Distribution Agreement, and 

 

	 	(ii)	OVRP Customer has a valid CLA in place. 

  

	1.	Term and Termination 

 Each OVRP period (“OVRP Period”) is ***. 
 The term of each OVR Period
begins on the agreed start date until the earlier of: 
  

	 	(a)	*** from that date, unless both Company and MS agree to extend the OVRP Period to a *** OVRP Period; 

 

	 	(b)	termination or expiration of the CLA (if the OVRP Customer and MS do not enter into a successor agreement); or 

 

	 	(c)	OVRP is cancelled as notified by MS. 

 Any violation of the terms of this Schedule is grounds for termination under section 14 of this Agreement. 
  

	2.	*** Royalty Terms  

  

	 	(a)	The OVRP royalty rate applies only to Products shipped for the specified OVR Period, as registered and approved by MS in the OVRP Tool in MOO. Company will offer the
OVRP royalty rate to OVRP Customers only. The volume commitments and royalty rates for OVRP are listed in the OVRP Royalty Rate List on ECE. 

  

	 	(b)	Company agrees to pay MS the total royalties due for the Products distributed for the specified OVR Period to the OVRP Customer at the OVRP royalty rate as posted on
ECE at the time the OVRP is registered. 

  

	 	(c)	Company will be notified via ECE or email if MS changes its OVRP royalty rates. Such royalty rate changes will be effective on the first date of the calendar month
following such notice. 

  

	3.	Written Agreement with OVRP Customer  

 *** 
  

	4.	Reporting  

Company shall include Product shipped under each OVRP in its monthly sales-out report as described in the Reporting Guidelines on the ECE.

  

	5.	*** 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 21 

 MOO AND ECE SCHEDULE 

 

	1.	In this Schedule, MOO and the ECE may be called a “Site” or collectively as the “Sites.” The term “User” means an officer, employee,
consultant or other person or agent of Company who has, or who creates the appearance of having been authorized by Company, to use the Site on behalf of Company. The term “Company Administrator” means the Users designated in the
Reporting and Payment Schedule. Company shall give MS not less than 48 house notice that Company has made a change to such authority. Notices for Company Administrator changes should be sent to *** for MOO or *** for the ECE, as appropriate.

  

	2.	MS may provide guidelines from time to time in connection with Company’s use of the Sites. 

 

	3.	Company Administrator is solely responsible for granting access and other authorities for Users. This includes creating or arranging for all passwords, encryption keys
or other identifiers used for Site or Company security (collectively, “Password Info”). Company Administrator shall keep Password Info secure from unauthorized access. Company Administrator shall do all of the following:

  

	 	(a)	Protect Password Info as confidential information and not disclose any part of it to any person or entity (internal or external) without a need to know.

  

	 	(b)	Only take actions at a Site that the Company has authorized. 

  

	 	(c)	Instruct and ensure that Users do both (a) and (b) above. Company shall designate at least one but no more than two Administrators. 

 

	4.	MS may suspend or terminate authorities, or suspend or block access to all or any part of a Site to any information. Whenever possible, MS will provide prior notice of
such action. 

  

	5.	Neither MS nor any of its agents shall have any liability for any failure to provide a level of security greater in connection with the ECE than that generally afforded
by the use of: 

  

	 	(a)	*** 

  

	 	(b)	***.

  

	6.	Company and its Users shall not cause any harm to a Site. 

  

	7.	MS provides each Site “as is”. Warranty disclaimers, damage exclusions and limitations of remedies in this Agreement all apply to each Site (and to
their information, functionality, services, and availability or lack thereof). Company will not rely on or treat any Site information as an express warranty.

 

	8.	MS reserves the right to change or discontinue all or any portion of the MOO Site at any time. Users may make a copy of MOO information to document Company’s
transactions or other information. MS will retain *** years of transactional records. MS will have no duty to retain or make available Site information or records for later access. 

 

	9.	The Sites are not open to the public and the way they function and all information on them shall be treated as confidential information under section 10 of the
Agreement. Company agrees not to distribute any Supplement Code accessed on ECE to any third party, unless expressly authorized by MS to do so. 

  

	10.	(a) Company must access and use MOO for all transactions and purposes contemplated by MOO until the earlier of: 

 

	 	(i)	The date MS ceases to provide MOO to similarly situated embedded distributors, or 

 

	 	(ii)	The date Company has satisfied all of its obligations under the Agreement. 

 

	 	(b)	All actions taken by any User at or in relation to a Site shall legally bind Company if any of the following are true. 

 

	 	(i)	The User has supplied Password Info. 

  

	 	(ii)	Company or Users failed to keep Password Info secure. The failure caused or contributed to creation of an appearance that actions taken on a Site were being taken by,
or on behalf of, Company. 

  

	 	(iii)	Company had approved, allowed or accepted benefits or use of the Site by a person purporting to be its agent.

 

	11.	If Password Info is used to cause harm or damage to Company or MS by a person who obtained it by means that could not have been prevented by complying with this
Schedule, then such acts taken with Password Info will not be attributed to Company under section 10.b. However, these acts may be attributed to MS, Company or others under principles of equity or law pertinent to the act in
question.

  

	12.	As part of the MS OEM operations initiative called “Shasta.” MS may provide additional or successor online tools or websites to be used by Company in the
normal course of its business with MS. Company agrees to use such resources for all intended purposes. 

  

	13.	Privacy and Data Protection. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 22 

	 	(a)	In this section, “Personal Information” means any information provided by MS or collected or processed for MS by Company in connection with this Agreement:

  

	 	(i)	That identifies or can be used to identify, contact, or locate the person to whom such information pertains, or 

 

	 	(ii)	From which identification or contact information of an individual person can be derived. 

Personal Information includes, but is not limited to: name, address, phone number, fax number, email address, social security number or
other government-issued identifier, and credit card information. In addition, to the extent any other information (such as a personal profile, unique identifier, biometric information, or IP address) is associated or combined with Personal
Information, then such information also will be considered Personal Information. 
  

	 	(b)	Any Personal Information collected, processed or accessed by Company in compliance with this Agreement shall be limited to that which is strictly necessary to perform
such services or to fulfill any legal requirements. 

  

	 	(c)	Company shall use such Personal Information only as necessary to perform the services in accordance with this Agreement and not for any other purpose whatsoever.
Company shall maintain such Personal Information in strict confidence in accordance with the provisions of section 10. Company shall not share any Personal Information with any third parties for any reason except as authorized by MS in writing. If
Company is served with a court order compelling disclosure of any Personal Information or with notice of proceedings for such an order, 

  

	 	(i)	Will oppose the order, 

  

	 	(ii)	Will notify MS of such order or notice, and 

  

	 	(iii)	Will provide MS the opportunity to intervene before Company files any response to the order or notice. 

 

	 	(d)	Company will take reasonable steps to protect any Personal Information in Company’s possession and immediately notify MS of any known security breach from:

  

	 	•	 	 Unauthorized use, 

  

	 	•	 	 Access, 

  

	 	•	 	 Disclosure, 

  

	 	•	 	 Alteration, or 

  

	 	•	 	 Destruction. 

Security measures shall include access controls, encryption or other means, where appropriate. Company agrees to conduct an audit on at
least an annual basis to evaluate the security of Personal Information in Company’s possession and to verify that the terms of this Agreement with respect to Personal Information are being followed. The results of such audit shall be made
available to MS on request. 
  

	 	(e)	Upon request from MS, Company shall provide MS with any or all Personal Information in Company’s possession. Company shall within *** days of termination or
expiration of this Agreement, at MS’ sole discretion either: 

  

	 	(i)	Provide MS with all documents and materials (including any and all copies) containing Personal Information which are in its possession or under its control; or

  

	 	(ii)	Destroy all such specified documents and materials (including any and all copies in any and all formats) and provide MS with a certificate of destruction signed by an
officer of Company. 

  

CONFIDENTIAL 
  

 Microsoft OEM Windows Mobile Distribution Agreement #***-1 dated November 01, 2009 between MS and
BSQUARE CORPORATION (MOBILITY - AMERICAS) 
 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

  
 23 

			
	Amendment Number:	  	1
	Amendment Date:	  	September 1, 2010
	COMPANY Name:	  	Bsquare Corporation (Mobility – Americas)
	MS Agreement Number:	  	***
	MS Agreement Start Date:	  	November 1, 2009

 AMENDMENT TO
THE 
 MICROSOFT OEM WINDOWS MOBILE DISTRIBUTION AGREEMENT 
 By this amendment (the “Amendment”) effective as of the Amendment Date, the parties agree that the indicated portions of the above referenced agreement (the “Agreement”) are amended as
follows: 
  

	1.	Section 2(j) of the Agreement is hereby deleted and replaced with the following section 2(j): 

 

	 	(j)	Interim Shipments. MS agrees that between the time Company obtains the OEM Customer’s signature on the CLA and the date MS countersigns:

  

	 	(i)	Company may not distribute Products to the OEM Customer. 

  

	2.	Section 2(k) of the Agreement is hereby deleted and replaced with the following section 2(k): 

 

	 	(k)	OEM Customer Notices. Company shall instruct each OEM Customer that: 

 

	 	(i)	Design Restrictions on High Risk Activities. The Products are not fault-tolerant and are not designed, manufactured or intended for any use requiring fail-safe
performance in which the failure of a Product could lead to death, serious personal injury, or severe physical or environmental damage (“High Risk Activities”). This includes the operation of aircraft or nuclear facilities. OEM
Customer agrees not to use, or license the use of, the Product in connection with any High Risk Activities. 

  

	 	(ii)	OEM Customers may only distribute Products: 

  

	 	(1)	As part of the OEM Customers’ Devices; 

  

	 	(2)	That were obtained by the OEM Customers directly from an MS-authorized distributor; and 

 

	 	(3)	In accordance with the CLA, the OEM ALPs, and the ARAs. 

  

	 	(iii)	OEM Customers may only reproduce and distribute Update Images, Supplements, and Recovery Images in accordance with the CLA. 

 

	 	(iv)	*** SKU License Terms. For the terms in this section “Product” means ***. 

 

	 	(1)	Definition. “ATP” or “Actual Transfer Price” means the actual transfer price of a Device (including all elements of a typical retail offering
for such Device (e.g., when distributed to a Mobile Operator) including, without limitation, the device, main battery, charger, ear bud, carrying case and packaging) upon its sale by an OEM Customer to a Mobile Operator or other unaffiliated entity
or directly to an End User. To determine ATP, deductions or discounts with respect to such sales should not be subtracted. 

  

	 	(2)	The OEM Customer may only distribute Products as part of Devices  

 

	 	(A)	Radio Support. This Product may only support, and may be used only in Devices that support, one or more of the radio technologies below:

 *** 

No other radio technologies may be supported by the Product, or any Device that includes the Product; 

 

	 	(B)	OEM Customer may only distribute this Product on Devices with an ATP less than ***. 

 

	 	(C)	The Deliverables may include files, modules, and/or materials for other products not licensed by OEM Customer. Company’s license rights do not include any
rights with respect to these files, modules, and/or materials in the Deliverables. 

  

CONFIDENTIAL 
  

	
	08/16/05 36975v5 Amendment to the Microsoft OEM Distribution Agreement for Software Products for Embedded Systems
	 Form 2.8.21
 Document Tracking Number: ***

 Confidential treatment has been requested for
portions of this agreement. This agreement omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange
Commission. 

	3.	Section 2(t) of the Agreement is hereby deleted and replaced with the following section 2(t): 

 

	 	(t)	Drop Ship Option Available 

  

	 	(i)	OEM Customers may request that orders from Company be shipped directly from the AR to an OM (whether or not situated within the Territory). Company must forward
this request using the “Drop Ship Request Form” to the MS account manager for approval. If approved, notice will be sent to Company and the AR to begin processing of the purchase order. 

 

	 	(ii)	Company may request that orders be shipped directly from the AR to the OEM Customer, upon MS approval, which will not be unreasonably withheld.

  

	4.	Section 2(w) of the Agreement is hereby deleted and replaced with the following section 2(w): 

 

	 	(w)	Distributor ALTs 

  

	 	(i)	Limited Distribution. The Traditional Chinese language version of any Windows Mobile Product may not be distributed by or for Company within or to the
People’s Republic of China. Company will defend, indemnify and hold MS Parties harmless against any third party claims, demands, liability or damages resulting from Company’s failure to notify any OEM Customer of these limits.

  

	 	(ii)	Upgrade Products. If the name of a Windows Mobile Product includes “UPGRADE”, then an OEM Customer must have in effect a Microsoft OEM Customer
License Agreement for Field Upgrade prior to distributing that Product. 

  

	 	(iii)	If Company knows or, if in the course of its ordinary business operations Company reasonably should know, or if MS has actual knowledge or evidence, that an OEM
Customer is breaching a condition of the Product terms, described in Section 2(k)(iv)(2) above, (an “OEM Default Condition”) then the parties will take the following actions: 

 

	 	(1)	The party with knowledge or evidence will notify the other party of the OEM Default Condition. 

 

	 	(2)	Company will provide reasonable assistance to MS in support of any resulting investigation, any actions to protect MS intellectual property rights, and any
efforts to cure or mitigate the OEM Default Condition and to prevent future OEM Default Conditions. 

  

	 	(3)	Upon receipt of MS’s written notice of termination or suspension of the CLA with an OEM Customer, Company will take the following actions:

  

	 	•	 	 Suspend or discontinue distribution of Products and COAs to the OEM Customer; 

 

	 	•	 	 Suspend engineering and development support to the OEM Customer with respect to the Products. 

In the event the OEM Customer later cures or fully mitigates the OEM Default Condition, then upon agreement with MS, Company may resume
all of the activities above. 
  

	 	(iv)	For the terms in this sub-section “Product” means ***. 

  

	 	(1)	If Company distributes Product within this Program in violation of the terms of the Agreement, MS, without limiting its remedies, may demand and Company
agrees to pay, an additional royalty for each copy of Product distributed equal to the greater of (a) *** of Company’s existing royalty rate for *** or (b) *** of ***; as applicable at the time of the violation (excluding discounts
and rebates), less any royalty paid for the unauthorized distribution. Company shall provide MS with reasonable assistance in the defense of all investigations. 

 

	 	(2)	If Company distributes this Product in breach of the license limitations set forth within this Agreement, then, in addition to any other rights reserved to
Microsoft under this Agreement, Microsoft may terminate Company’s rights to distribute this Product upon *** written notice. 

All capitalized terms used but not defined shall have the meanings as set forth the Agreement. The terms of this Amendment supersede any inconsistent
terms contained in the Agreement. 
 All signed copies of this Amendment shall be deemed originals. This Amendment is executed only in the
English language 

  

CONFIDENTIAL 
  

	
	Amendment #1, dated September 01, 2010, to the Microsoft OEM Distribution Agreement for Software Products for Embedded Systems #***, dated November 01, 2009
	Document Tracking Number: ***

 Confidential
treatment has been requested for portions of this agreement. This agreement omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the
Securities and Exchange Commission. 

  
 25 

									
	MICROSOFT LICENSING, GP	  		 	BSQUARE CORPORATION
	 A general partnership organized under the laws of:
 State of Nevada, USA
	  		 	A company organized under the laws of: Washington
					
	By:	  	 s/ Sal Onas
	  		 	By:	 	 /s/ Brian Crowley

		  	(signature)	  		 		 	(signature)
					
	Name:	  	 Sal Onas
	  		 	Name:	 	 Brian Crowley

		  	(printed)	  		 		 	(printed)
					
	Title:	  	 Sr. Program Manager
	  		 	Title:	 	 President and CEO

		  	(printed)	  		 		 	(printed)
					
	Date:	  	 October 1, 2010
	  		 	Date:	 	 September 30, 2010

  

CONFIDENTIAL 
  

	
	Amendment #1, dated September 01, 2010, to the Microsoft OEM Distribution Agreement for Software Products for Embedded Systems ***, dated November 01, 2009
	Document Tracking Number: ***

 Confidential
treatment has been requested for portions of this agreement. This agreement omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the
Securities and Exchange Commission. 

  
 26 

			
	Amendment Number:	  	2
	Amendment Date:	  	November 1, 2010
	COMPANY Name:	  	Bsquare Corporation (Mobility – Americas)
	MS Agreement Number:	  	***
	MS Agreement Start Date:	  	November 1, 2009

 AMENDMENT TO
THE 
 MICROSOFT OEM WINDOWS MOBILE DISTRIBUTION AGREEMENT 
 By this amendment (the “Amendment”) effective as of the Amendment Date, the parties agree that the indicated portions of the above referenced agreement (the “Agreement”) are amended as
follows: 
  

	1.	Section 2(k) of the Agreement is hereby deleted and replaced with the following section 2(k): 

 

	 	(k)	OEM Customer Notices. Company shall instruct each OEM Customer that: 

 

	 	(i)	Design Restrictions on High Risk Activities. The Products are not fault-tolerant and are not designed, manufactured or intended for any use requiring fail-safe
performance in which the failure of a Product could lead to death, serious personal injury, or severe physical or environmental damage (“High Risk Activities”). This includes the operation of aircraft or nuclear facilities. OEM
Customer agrees not to use, or license the use of, the Product in connection with any High Risk Activities. 

  

	 	(ii)	OEM Customers may only distribute Products: 

  

	 	(1)	As part of the OEM Customers’ Devices; 

  

	 	(2)	That were obtained by the OEM Customers directly from an MS-authorized distributor; and 

 

	 	(3)	In accordance with the CLA, the OEM ALPs, and the ARAs. 

  

	 	(iii)	OEM Customers may only reproduce and distribute Update Images, Supplements, and Recovery Images in accordance with the CLA. 

 

	 	(iv)	*** SKU License Terms. For the terms in this section “Product” means ***. 

 

	 	(1)	Definition. “ATP” or “Actual Transfer Price” means the actual transfer price of a Device (including all elements of a typical retail offering
for such Device (e.g., when distributed to a Mobile Operator) including, without limitation, the device, main battery, charger, ear bud, carrying case and packaging) upon its sale by an OEM Customer to a Mobile Operator or other unaffiliated entity
or directly to an End User. To determine ATP, deductions or discounts with respect to such sales should not be subtracted. 

  

	 	(2)	The OEM Customer may only distribute Products as part of Devices  

 

	 	(A)	Radio Support. This Product may only support, and may be used only in Devices that support, one or more of the radio technologies below:

 *** 
 No other radio technologies may be supported by the Product, or any Device that includes the Product; 
  

	 	(B)	OEM Customer may only distribute this Product on Devices with an ATP less than ***. 

 

	 	(C)	The Deliverables may include files, modules, and/or materials for other products not licensed by OEM Customer. Company’s license rights do not include any
rights with respect to these files, modules, and/or materials in the Deliverables. 

  

	 	(v)	*** SKU License Terms. For the terms in this section, “Product” means ***. 

 

	 	(i)	Design Restriction for Handheld Devices 

  

CONFIDENTIAL 
  

	
	08/16/05 36975 v5 Amendment to the Microsoft OEM Distribution Agreement for Software Products for Embedded Systems
	 Form 2.8.1
 Document Tracking Number: ***

 Confidential treatment has been requested for
portions of this agreement. This agreement omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange
Commission. 

 This Product is designed solely for use in consumer-oriented phones and may not be used in
Handheld Devices. “Handheld Device” means a Device that: 
  

	 	(A)	Is marketed to business and government entities; 

  

	 	(B)	Is sold directly to business and government entities rather than individually to consumer end users 

 

	 	(C)	Is not kept in stock at Mobile Operators nor consumer retailers; and 

 

	 	(D)	Meets any of the following three major category descriptions: 

  

	 	(1)	Vertical Functionality 

  

	 	•	 	 Includes scanning and/or imaging functionality whose primary purpose is for data capture; or 

 

	 	•	 	 Includes a magnetic stripe reader for credit card purchases; or 

 

	 	•	 	 Includes a mobile or handheld printer for printing receipts; or 

 

	 	•	 	 Includes RFID capabilities. 

  

	 	(2)	Durability for Business Critical Functions 

  

	 	•	 	 Is designed with drop specifications beyond those typical of a consumer oriented phone; or 

 

	 	•	 	 Is designed with tolerance specifications for use in extreme temperatures and weather. 

 

	 	(3)	Purpose Built Design 

  

	 	•	 	 Is designed for a full shift battery life; or 

  

	 	•	 	 Is ergonomically designed for extended or continuous use; or 

 

	 	•	 	 Is designed to be mounted in vehicles such as forklifts or delivery trucks; or 

 

	 	•	 	 Is specially designed to be intrinsically safe to prevent fires and explosions when used in hazardous areas. 

All capitalized terms used but not defined shall have the meanings as set forth the Agreement. The terms of this Amendment supersede any inconsistent
terms contained in the Agreement. 
 All signed copies of this Amendment shall be deemed originals. This Amendment is executed only in the
English language 
  

									
	MICROSOFT LICENSING, GP	  		 	BSQUARE CORPORATION
	 A general partnership organized under the laws of:
 State of Nevada, USA
	  		 	A company organized under the laws of: Washington
					
	By:	  	 /s/ Josh Reimer
	  		 	By:	 	 /s/ Scott Mahan

		  	(signature)	  		 		 	(signature)
					
	Name:	  	 Josh Reimer
	  		 	Name:	 	 Scott Mahan

		  	(printed)	  		 		 	(printed)
					
	Title:	  	 OEM CRT Manager
	  		 	Title:	 	 Chief Financial Officer

		  	(printed)	  		 		 	(printed)
					
	Date:	  	 December 21, 2010
	  		 	Date:	 	 December 20, 2010

  

CONFIDENTIAL 
  

	
	Amendment # 2, dated November 01, 2010, to the Microsoft OEM Distribution Agreement for Software Products for Embedded Systems #***, dated November 01, 2009
	Document Tracking Number: ***

 Confidential
treatment has been requested for portions of this agreement. This agreement omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the
Securities and Exchange Commission. 

  
 28Escrow, Security and Control Agreement

  
  

 
 Exhibit 10.1 

ESCROW, SECURITY AND CONTROL AGREEMENT 
 for 
 CONTRACTUAL LIABILITY OBLIGATIONS 

Effective March 11, 2011 
 Among 
 WORKERS’ ASSURANCE OF HAWAII, INC. 

            as Grantor 

and 
 THE BANK
OF NEW YORK MELLON 
             as Escrow
Agent 
 and 
 NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA. 
 on behalf of
itself and its insurance company affiliates including but not limited 
 to: 

AMERICAN HOME ASSURANCE COMPANY 
 CHARTIS CASUALTY COMPANY 
 CHARTIS PROPERTY CASUALTY COMPANY

 COMMERCE AND INDUSTRY INSURANCE COMPANY 
 GRANITE STATE INSURANCE COMPANY 
 ILLINOIS NATIONAL INSURANCE CO.

 NEW HAMPSHIRE INSURANCE COMPANY 
 THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA 

            as Beneficiary 

 
  
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	 	Page	 
	PARTIES	 	 	1	  
	RECITALS	 	 	1	  
	
	ARTICLE I	  
		
	DEFINITIONS	 			
			
	Section 1.1	  	Defined Terms	 	 	2	  
	Section 1.2	  	Use of Defined Terms	 	 	8	  
	
	ARTICLE II	  
		
	ESTABLISHMENT OF ESCROW; AUTHORITY	 			
	OF AND CERTAIN DIRECTIONS TO ESCROW AGENT; SECURITY INTEREST	 			
			
	Section 2.1	  	Establishment of Escrow	 	 	8	  
	Section 2.2	  	Execution of Documents and Authorization to Take Certain Action	 	 	9	  
	Section 2.3	  	Establishment of Operating Account	 	 	9	  
	Section 2.4	  	Investment of Escrow Assets	 	 	10	  
	Section 2.5	  	Declaration of Escrow	 	 	12	  
	Section 2.6	  	Name of Escrow	 	 	12	  
	Section 2.7	  	Security Interest	 	 	12	  
	
	ARTICLE III	  
		
	WITHDRAWALS FROM AND SUBSTITUTIONS TO ESCROW ESTATE:	 			
	RECEIPT, DISTRIBUTION AND APPLICATION OF INCOME	 			
	FROM THE ESCROW ESTATE; VOTING RIGHTS IN ESCROW ASSETS	 			
			
	Section 3.1	  	Withdrawals by Beneficiary	 	 	14	  
	Section 3.2	  	Substitution of Escrow Assets	 	 	15	  
	Section 3.3	  	Additions to the Escrow Estate	 	 	16	  
	Section 3.4	  	Amounts Received on Account of Escrow Assets	 	 	16	  
	Section 3.5	  	Payments to be made by Escrow Agent	 	 	17	  
	Section 3.6	  	Voting Rights and Defense of Title of Collateral	 	 	17	  
	Section 3.7	  	Risk Management’s Compensation	 	 	18	  

  
 i 

							
	 	  	 	 	Page	 
	 ARTICLE IV
	   

		
	DUTIES OF ESCROW AGENT	 			
			
	Section 4.1	  	Instructions of Beneficiary	 	 	19	  
	Section 4.2	  	No Implied Duties	 	 	19	  
	Section 4.3	  	No Unauthorized Transactions	 	 	20	  
	Section 4.4	  	Tax Returns	 	 	20	  
	Section 4.5	  	Books and Records of Escrow Agent	 	 	20	  
	Section 4.6	  	Valuation Report	 	 	20	  
	Section 4.7	  	Escrow Agent Liability	 	 	21	  
	
	ARTICLE V	  
		
	THE ESCROW AGENT	 			
			
	Section 5.1	  	Acceptance of Escrow	 	 	21	  
	Section 5.2	  	Limitation of Duties	 	 	21	  
	Section 5.3	  	Representations and Warranties of Escrow Agent	 	 	22	  
	Section 5.4	  	Segregation of Funds	 	 	22	  
	Section 5.5	  	Reliance on Documents; Agents	 	 	22	  
	Section 5.6	  	Limitation on Liability of Escrow Agent .	 	 	23	  
	Section 5.7	  	The Escrow Agent’s Compensation, Expenses and Indemnification	 	 	24	  
	
	 ARTICLE VI
	   

		
	TRANSFER OF BENEFICIARY'S INTEREST	 			
			
	Section 6.1	  	Transfer of Interest	 	 	25	  
	Section 6.2	  	Notice of Assignment by Beneficiary	 	 	25	  
	
	ARTICLE VII	  
		
	SUCCESSOR ESCROW AGENT; CO-ESCROW AGENT	 			
			
	Section 7.1	  	Successor Escrow Agent; Co-Escrow Agent	 	 	25	  
	
	ARTICLE VIII	  
		
	TERMINATION; VALIDITY OF SALE	 			
			
	Section 8.1	  	Termination	 	 	30	  
	Section 8.2	  	Validity of Sale	 	 	30	  

  
 ii 

					
	 	  	 	 	Page
	
	ARTICLE IX
		
	REPRESENTATIONS AND WARRANTIES OF GRANTOR	 	
			
	Section 9.1	  	Representations and Warranties of Grantor	 	31
	
	ARTICLE X
		
	REPRESENTATIONS AND WARRANTIES OF BENEFICIARY	 	
			
	Section 10.1	  	Representations and Warranties of Beneficiary	 	32
	
	ARTICLE XI
		
	MISCELLANEOUS	 	
			
	Section 11.1	  	Notices	 	33
	Section 11.2	  	Severability	 	34
	Section 11.3	  	Modifications	 	34
	Section 11.4	  	Counterparts	 	34
	Section 11.5	  	Entire Agreement	 	34
	Section 11.6	  	Benefits of Agreement	 	34
	Section 11.7	  	Headings	 	35
	Section 11.8	  	Dealings by Escrow Agent	 	35
	Section 11.9	  	Governing Law and Venue	 	35
			
	EXHIBIT A	  	Initial Escrow Assets	 	38
			
	EXHIBIT B	  	Contractual Liability Policies	 	39

  
 iii

 ESCROW AGREEMENT FOR CONTRACTUAL LIABILITY OBLIGATIONS 

This ESCROW AGREEMENT FOR CONTRACTUAL LIABILITY OBLIGATIONS effective March 11, 2011, by and among WORKERS’ ASSURANCE OF
HAWAII, INC. a Hawaii _Corporation (herein called the “Grantor”), THE BANK OF NEW YORK MELLON, a New York corporation (herein, in its capacity as Escrow Agent, and together with its successors called the
“Escrow Agent”), and NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA. on behalf of itself and its insurance company affiliates including but not limited to: AMERICAN HOME ASSURANCE COMPANY, CHARTIS CASUALTY COMPANY,
CHARTIS PROPERTY CASUALTY COMPANY, COMMERCE AND INDUSTRY INSURANCE COMPANY, GRANITE STATE INSURANCE COMPANY, ILLINOIS NATIONAL INSURANCE CO., NEW HAMPSHIRE INSURANCE COMPANY, THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA (herein called the
“Beneficiary”). 
 W I T N E S S E T H: 

WHEREAS, Beneficiary issued certain policies of insurance to Grantor’s parent, TrueBlue, Inc. (herein called the
“Parent”) (said policies, together with all endorsements and addenda thereto, herein collectively the “Insurance Policies”); and 
 WHEREAS, the Beneficiary requires collateral from the Parent for Parent’s deductible and/or non-deductible reimbursement obligations arising from the Insurance Policies, and the Payment
Agreement between TrueBlue, Inc. and National Union Fire Insurance Company of Pittsburgh, Pa., on behalf of itself and its affiliates, effective July 1, 2003 (together with all addenda and schedules thereto the
“Payment Agreement;” the Payment Agreement together with the Insurance Policies are herein collectively referred to as the “Insurance Program”); and 
 WHEREAS, the Grantor intends to issue the following contractual liability policy[ies] to the Parent: 

  
 1 

 REFER TO EXHIBIT B 
 (collectively herein referred to as the “Contractual Liability Policy[ies]”); and 
 WHEREAS, via Assignment Agreement between the Parent, Grantor and Beneficiary, (i) Parent conveyed, and Beneficiary assumed, all legal and beneficial right, title and interest Parent has in
and to the Contractual Liability Policy[ies] and (ii) Parent shall convey, and Beneficiary shall assume, all legal and beneficial right, title and interest Parent has in and to all future contractual liability policies issued by the Grantor
relating to the Insurance Program (herein collectively referred to as the “Assignment Agreement[s]”); and 

WHEREAS, the Grantor desires to create an escrow for the sole and exclusive benefit of the Beneficiary for the purpose of
providing the collateral for the Grantor’s obligations under the Contractual Liability Policy[ies] and all future contractual liability policies issued by the Grantor relating to the Insurance Program; and 

WHEREAS, the Escrow Agent is willing to accept the duties and obligations imposed hereunder. 

NOW, THEREFORE, in order to induce the Beneficiary to accept this Escrow Agreement for Contractual Liability Obligations, the
Contractual Liability Policy[ies] to be issued by the Grantor to Parent, the Payment Agreement to be executed and the Assignment Agreement[s] to be executed, and in consideration of the promises and of the mutual agreements contained herein, the
parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.1 Defined Terms. As used in this Escrow,
Security and Control Agreement for Contractual Liability Obligations the following terms shall have the following meanings, unless the context otherwise requires: 
 “Affiliate” shall mean, with respect to any Person, a Person which directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control
with, such Person. 
 “Beneficiary” has the meaning assigned to that term in the introduction to this Escrow,
Security and Control Agreement for Contractual Liability Obligations and shall include its successors and assigns by operation of law, including without limitation, any liquidator, rehabilitator, receiver, or conservator of the named Beneficiary.

  
 2 

 “Book Entry Form” shall mean with respect to government
obligations and obligations of institutions, a form or system, as applicable, under which the legal ownership of government obligations and obligations of institutions may be transferred via wire only through a book entry on the books of The Federal
Reserve Bank, The Depository Trust Company, or another depository approved in writing by the Beneficiary. 

“Business Day” means any day which is not a Saturday, a Sunday, or a day on which banks and escrow companies in
The City of New York are authorized or obligated by law, regulation or executive order to remain closed. 

“Cash” means United States Dollars. 
 “Control” (including the related terms “controlled by” and “under common control with”) shall mean, with respect to the definitions of “Affiliate” and
“Subsidiary”, the ownership, directly or indirectly, of more than fifty percent (50%) of the voting stock of a corporation. 
 “Default” means any default in any obligation under or breach of, or the making of any untrue or incorrect representation or warranty in connection with, this Escrow, Security and Control
Agreement for Contractual Liability Obligations or the Grantor being the subject of any agreement or proceeding of insolvency, liquidation, receivership, or bankruptcy, whether voluntary or involuntary. 

“Distributions” means all interest, dividends, or distributions, or payments in cash, securities and other property upon
or with respect to any Escrow Asset including, without limitation, amounts received upon any purchase, redemption or retirement thereof. 
 “Dollars” or $ shall mean United States dollars. 

“Escrow” means the security escrow created by this Escrow, Security and Control Agreement for Contractual Liability
Obligations, and in no event shall such term be deemed to include the Escrow Agent, the Grantor, the Beneficiary or any of their respective assets. 

  
 3 

 “Escrow Agreement” means this Escrow, Security and Control Agreement
for Contractual Liability Obligations, as the same may from time to time be amended, modified or supplemented and in effect. 

“Escrow Assets” means the Initial Escrow Assets and all other Qualified Assets conveyed, assigned and transferred
to the Escrow by the Grantor or otherwise. 
 “Escrow Estate” means all present and future estate,
right, title and interest of the Escrow Agent, including, without limitation, its security interest in and to the Escrow Assets. 
 “Escrow Obligations” has the meaning assigned to that term in Section 5.6 hereof. 
 “Initial Escrow Assets” has the meaning assigned to that term in Section 2.1 hereof. 
 “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind whatsoever. 
 “Market Value” means the value, as of the time any determination thereof is made, (i) with respect to any Qualified Asset listed under clause (A), (B), (C) or (D) of
the definition thereof with a stated maturity within one (1) year from the date of purchase, with respect to interest bearing assets, the principal amount payable at the maturity of such assets and with respect to original issue discount
assets, the purchase price of such assets, and (ii) with respect to any Qualified Asset listed under clause (A), with a stated maturity between one (1) and ten (10) years from the date of purchase, the bid price as provided by the
pricing service then currently utilized by the Escrow Agent or, if not so provided, the average of the bid prices obtained from two nationally recognized government securities firms making a market in the issue, (iii) with respect to any
Qualified Asset listed under clause (D), or other investments pre-approved in writing by the Beneficiary with a stated maturity between one (1) and ten (10) years) from the date of purchase, the bid price as provided by the pricing service
then currently utilized by the Escrow Agent or, if not so provided, the average of the bid prices obtained from two major brokerage firms making a market in the issue, or, if no bid price can be obtained, the fair market value as determined by an
independent third party, or the Escrow Agent, as approved by the Beneficiary, such approval not to be unreasonably withheld, (iv) with respect to mutual funds, the net asset value per share thereof and (v) with respect to Cash, the dollar
amount thereof. 

  
 4 

 Escrow Assets which, at the time of such determination, are not Qualified Assets shall be
deemed to have no Market Value. 
 “Obligations” shall mean: 

All sums owing by Grantor to Beneficiary as security for the Contractual Liability Policy(ies). 

“Operating Account” has the meaning assigned to that term in Section 2.3 hereof. 

“Parent” shall mean a Person (other than an individual) that, directly or indirectly, controls another Person (other
than an individual). 
 “Person” means any individual, corporation, limited liability company, partnership,
joint venture, association, escrow, unincorporated organization or similar organizations or any government or any agency or political subdivision thereof. 
 “Physical Form” shall mean evidenced by a physical certificate or other written instrument issued to and registered in the name of the Beneficiary, bearer, or a nominee of the
Escrow Agent. 
 “Qualified Assets” means (A) any evidence of indebtedness with a stated maturity
within ten (10) years and one (1) month from the date of purchase issued by (i) the United States of America, or an instrumentality or agency thereof; or (ii) issued by any State, municipality or subdivision, instrumentality or
agency thereof, provided that such securities issued by any State, municipality, or subdivision, instrumentality or agency thereof shall constitute Qualified Assets only if assigned ratings of at least A by Standard and Poor’s Ratings Group, a
division of The McGraw-Hill Companies (S&P) or its equivalent by another Nationally Recognized Statistical Rating Organization (NRSRO), provided, however, only 20% of such securities may be assigned ratings of A, (B) any certificate of
deposit, maturing not more than 180 days after the date of purchase, issued or guaranteed by a United States commercial banking institution which is a member of the Federal Reserve System and which has a combined capital and surplus and undivided
profits of not less than One Billion Dollars 

  
 5 

 
($1,000,000,000), (C) commercial paper, maturing not more than 180 days after the date of purchase, which is assigned a rating of “P-1” (or higher) by Moody’s Investors
Service, Inc., or “A-1” (or higher) by Standard and Poor’s Ratings Group, a division of The McGraw-Hill Companies (S&P), or its equivalent by another Nationally Recognized Statistical Rating Organization (NRSRO),
(D) obligations of institutions with a stated maturity within ten (10) years and one (1) month from the date of purchase that are assigned ratings of at least A by S&P or its equivalent by another NRSRO, provided, however, only
30% of such obligations may be assigned ratings of A, (E) Cash, (F) residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) issued by a U.S. government agency or U.S. government-sponsored enterprise,
with a stated maturity within ten (10) years and one (1) month from the date of purchase that are assigned ratings of at least AA- by S&P or its equivalent by another NRSRO, provided, however, only 20% of CMBS and RMBS may be held in
the Escrow account, (G) shares of United States Securities and Exchange Commission registered money market mutual fund(s). Said mutual funds are to be pre-approved in writing by the Beneficiary. All Qualified Assets must satisfy the
requirements specified in Section 1404 (a) (1), (2) and (10) of the New York Insurance Law. Commercial paper and other obligations of institutions must be issued by a corporation (other than the Grantor or Beneficiary or any
Affiliate or Subsidiary thereof) which is organized and existing under the laws of the United States of America. The maximum amount that can be invested in the Commercial Paper or any other obligations of institutions of any one Person is 5% of the
Required Reserve. Notwithstanding anything to the contrary, the term “Qualified Assets” shall not include (i) auction-rate securities; (ii) asset-backed securities; and (iii) mortgage-backed securities, except for CMBS and
RMBS , issued by a U.S. government agency or U.S. government-sponsored enterprise. CMBS and RMBS must be issued by a U.S. government agency or U.S. government-sponsored enterprise and meet the criteria outlined in the Required Reserve definition.

 “Required Reserve” means the sum of “Obligations” plus an amount set by the Beneficiary to
guarantee the future payment by the Grantor to the Beneficiary of the amounts 

  
 6 

 due the Beneficiary. The Beneficiary will review the Obligations periodically for adequacy in determining
the Required Reserve. At Grantor’s request Beneficiary will co-operate with Grantor or Grantor’s designated actuarial consultant in the conduct of such reviews. The Required Reserve as determined above shall be then multiplied by the sum
of 100% plus the risk factor produced by applying the then current Grantor and Beneficiary’s mutually approved investment guidelines. The risk factor, in conjunction with a portfolio that has an average duration of 47.5 months, shall be
established in accordance with the following table: 
 Average Modified Adjusted Duration (Years) 

1 - 10 
 AAA/AA-
Corporates/Munis/CMBS/RMBS
                                         
       1% 
 Note: cash, cash equivalents, US Treasuries, US Agencies, commercial paper and
certificates of deposit have a risk factor of 0%. 
 The risk factor is to be set at the percentage equivalent to the modified adjusted
duration permitted pursuant to the investment guidelines proposed by the Grantor and approved by the Beneficiary. The periodic calculation of the Required Reserve and any adjustment thereto shall be communicated by the Beneficiary to the Escrow
Agent and Grantor and shall be final and binding on all parties. 
 If as a result of any periodic review of the Obligations,
the Beneficiary finds that the Escrow Assets have a Market Value of less than one hundred percent (100%) of the Required Reserve, the Grantor, upon demand by the Beneficiary agrees to provide additional Qualified Assets in an amount equal to
such shortfall in accordance with Section 3.3. If the Beneficiary finds that the Escrow Assets have a Market Value in excess of 100% of the Required Reserve as adjusted by the risk factor in accordance with the definition of Required Reserve,
the Beneficiary will return such surplus to the Grantor upon a written request as specified in Article II, Section 2.4 of this Escrow Agreement. 
 “Risk Management” has the meaning assigned to that term in Section 3.7 hereof. 

  
 7 

 “Subsidiary” means a Person controlled, directly or indirectly, by another
Person. 
 “UCC” means the Uniform Commercial Code in the State of New York or such other applicable
jurisdiction as the context may require. 
 “Valuation Report” has the meaning assigned to that term in
Section 2.3 hereof. 
 Section 1.2 Use of Defined Terms. All terms defined in this Escrow Agreement shall have
the defined meanings when used in any certificates, reports or other documents made or delivered pursuant to this Escrow Agreement, unless otherwise defined or unless the context otherwise requires. 

ARTICLE II 

ESTABLISHMENT OF ESCROW; AUTHORITY OF AND CERTAIN DIRECTIONS TO ESCROW AGENT 

Section 2.1 Establishment of Escrow. Concurrently with the execution and delivery of this Escrow Agreement, the Grantor
hereby establishes the Escrow and assigns, conveys, transfers and delivers to the Escrow Agent in escrow as secured party for the sole and exclusive benefit of the Beneficiary, Qualified Assets as listed in Exhibit A hereto (the “Initial Escrow
Assets”), the receipt of which the Escrow Agent hereby acknowledges, to have and to hold such Qualified Assets and such additional Qualified Assets as shall be added to the Escrow (in such form as the Escrow Agent shall require to enable the
Escrow Agent to sell or otherwise convert such additional Qualified Assets to Cash) in accordance with the terms and conditions of this Escrow Agreement for the uses and purposes set forth herein. 

Assignment, conveyance, transfer and delivery of the Initial Escrow Assets (and such additional Qualified Assets as shall be added to the
Escrow in accordance with the terms and conditions of this Escrow Agreement) shall be accomplished as follows: (i) securities, documents and instruments in Physical Form shall be delivered in suitable form for transfer by the Escrow Agent,
accompanied by duly executed instruments of transfer or assignment in blank and (ii) securities in Book Entry Form, shall be delivered by such other method of transfer as may be appropriate including, where applicable, Book Entry on the books
and records of the Escrow Agent or another depository as required in the definition of Book Entry 

  
 8 

 
Form, provided that the Beneficiary’s right to withdraw such securities is not impaired in any way. The Grantor hereby represents and warrants to the Beneficiary and the Escrow Agent that
each of the Initial Escrow Assets is a Qualified Asset and, in the aggregate, have a Market Value of at least $        as of the date of transfer. The Escrow Agent, as Escrow Agent for the Beneficiary,
shall administer the Escrow. The Escrow shall be subject to withdrawal in whole or in part by the Beneficiary as provided herein. 
 Section 2.2 Execution of Documents and Authorization to Take Certain Action. The Grantor hereby irrevocably authorizes and directs the Escrow Agent to take the following actions: 

(a) To accept delivery of the Initial Escrow Assets delivered by the Grantor pursuant hereto and to accept delivery of additional Escrow
Assets which may be delivered from time to time pursuant hereto; 
 (b) To establish and maintain the Operating Account in
accordance with the terms of this Escrow Agreement; 
 (c) To make withdrawals from the Escrow Estate upon the written
instruction of the Beneficiary in accordance with Article III hereof; and 
 (d) To accept instructions from the Beneficiary,
and from time to time to execute and deliver such notes, instruments, endorsements, documents, agreements and certificates or take such other actions as may be instructed by the Beneficiary or which may be required to carry out the terms and
provisions of this Escrow Agreement. 
 Section 2.3 Establishment of Operating Account. For purposes of this Escrow
Agreement, the Escrow Agent is hereby directed to open and maintain at all times during the term of this Escrow Agreement an Operating Account within the Escrow for the benefit of the Beneficiary (said account being called the “Operating
Account” and being identified as Account No. 172172. The Operating Account shall consist of the following components the “Principal Account” and the “Income Account”. All cash, checks, drafts, certificates,
chattel paper and other instruments at any time and from time to time received by the Escrow Agent evidencing Escrow Assets or Distributions in respect of, or otherwise as proceeds of, Escrow Assets, shall

  
 9 

 
be deposited in the Operating Account. The Escrow Agent shall deliver to the Grantor and the Beneficiary, on a monthly basis, a written statement (the “Valuation Report”) identifying in
reasonable detail the Escrow Assets then on deposit in the Operating Account, specifying any withdrawals from or deposits to the Operating Account during such month, and certifying the aggregate Market Value of the Escrow Assets as of the close of
business on the day preceding the date of such Valuation Report. 
 Section 2.4 Investment of Escrow Assets. Any
Cash held in the Operating Account shall be invested and reinvested only in Qualified Assets by the Escrow Agent as directed in writing by the Grantor or if an event of Default has occurred, as directed in writing by the Beneficiary. All investments
shall be (i) made in the name of the Escrow Agent for the account of the Escrow created by this Escrow Agreement, or (ii) made or held in nominee or “street” name, in the name of the Escrow Agent generally and (iii) held by
or under the control of the Escrow Agent and deposited in the Operating Account. Principal received upon redemption or maturity of an asset and any such cash will be held in the Principal Account. The interest accruing and dividends paid thereon and
any profit realized from such investments shall be credited as follows: (1) to the Principal Account, if the Market Value of the Escrow Assets falls below 100% of the Required Reserve; or (2) to the Income Account, if the Market Value of
the Escrow Assets is greater than 100% of the Required Reserve, but only that amount that exceeds 100% of the Required Reserve shall be deposited into the Income Account. Any such interest, dividends, or other income realized from such investments,
that was credited to the Income Account shall be paid, transferred or otherwise distributed to the Grantor in such manner as the Grantor shall elect and as the Grantor shall instruct the Escrow Agent in writing, provided and to the extent that, at
the time of such payment, the aggregate Market Value of the Escrow Assets in the Operating Account shall exceed one hundred percent (100%) of the Required Reserve provided by the Beneficiary and no Default has occurred. The Grantor and the
Beneficiary intend that all of such accumulated interest, dividends and other income to which the Grantor is entitled shall be so paid, transferred and distributed to the Grantor only after each annual re-evaluation of the Required Reserve. The
Grantor may, but is not 

  
 10 

 
required to, engage any qualified investment advisor affiliated with the Escrow Agent or the Beneficiary in connection with the management of the Escrow Assets. Any such management of Escrow
Assets by a qualified investment advisor as provided herein shall be for the account and at the risk of the Grantor, subject to the further limitations and requirements of this Escrow Agreement. The Grantor hereby acknowledges that it is not
required under this Escrow Agreement to engage any such investment advisor to manage the Escrow Assets, but, if the Grantor should so decide, the selection of such advisor shall be the exclusive decision of the Grantor without any restriction
imposed by the Beneficiary other than that (i) such advisor selected shall have been functioning in its investment advisory capacity continuously for at least 5 years prior to its engagement by the Grantor and (ii) at the time of such
engagement, such advisor selected shall have under management at least $500 million of such assets described as Qualified Assets and (iii) will be added to this Escrow Agreement via Addendum. 

All payments of interest, dividends and other income in respect to Assets in the Escrow Account shall be posted and credited by the
Escrow Agent in the separate income column of the custody ledger (the “Income Account” as referenced in Section 2.3), within the Operating Account established and maintained by the Grantor at an office of the Escrow Agent in New York
City. Any interest, dividend or other income automatically posted and credited on the payment date to the Income Account which is not subsequently received by the Escrow Agent shall be reimbursed by the Grantor to the Escrow Agent and the Escrow
Agent may debit the Income Account for this purpose. Any amounts contained in the Income Account are part of the Assets, and as such, are subject to the terms and conditions of this Escrow Agreement with respect to the Escrow Assets. 

During the term of this Escrow Agreement , Grantor shall have the right to seek approval from the Beneficiary for Beneficiary to withdraw
assets from the Operating Account for the purpose of making payments to the Grantor of any amounts held in the Escrow that exceed 100 percent of the Required Reserve. Grantor shall seek such approval by delivering a written request (the
“Withdrawal Request”) therefor to the Beneficiary, with a copy to the Escrow Agent, which Request shall set forth the amount in excess of 100 percent of the 

  
 11 

 
Required Reserve as adjusted by the risk factor provided for in the definition of Required Reserve sought to be withdrawn for the benefit of Grantor. Beneficiary shall be the sole judge of the
Withdrawal Request, but shall not unreasonably or arbitrarily withhold its approval of any Withdrawal Request. Within thirty (30) days after its receipt of a Withdrawal Request, Beneficiary shall notify, in writing, Grantor and Escrow Agent of
Beneficiary’s approval or rejection of such Withdrawal Request; if Beneficiary has rejected a Withdrawal Request, in whole or in part, it shall state its reason or reasons therefor in its written notice. 

Section 2.5 Declaration of Escrow. The Escrow Agent hereby declares that it will hold the Escrow Estate upon the terms and
conditions herein set forth for the sole use and benefit and under the sole control and direction of the Beneficiary, except as provided in Section 2.4. 
 Section 2.6 Name of Escrow. For purposes of convenience of reference, the escrow created by this Escrow Agreement may be referred to as the “WORKERS ASSURANCE HAWAII/NATIONAL UNION
2011 ESCROW”. 
 Section 2.7 Security Interest. The Beneficiary hereby appoints the Escrow Agent as its
collateral agent to act as secured party for the sole and exclusive benefit of the Beneficiary with respect to each Escrow Asset in its possession or under its control. In such capacity, in addition to any other capacity in which it shall act
hereunder, the Escrow Agent shall act as bailee or agent for the Beneficiary for the purpose of perfecting the Beneficiary’s security interest in each Escrow Asset, and that the Escrow Agent shall follow the instructions of the Beneficiary and
shall take such actions with respect to each Escrow Asset as the Beneficiary may require to create, continue or perfect the Beneficiary’s security interest in each Escrow Asset. 

Without limiting the provisions of this Escrow Agreement relating to the Escrow, the Grantor hereby grants a security interest in each of
the Escrow Assets to the Escrow Agent as secured party for the sole and exclusive benefit of the Beneficiary, to secure the timely and complete payment and performance of all of the Obligations, whether in whole or in part, due or to become due, now
existing or hereafter arising, and all modifications, renewals, extensions, rearrangements, substitutions and replacements of the Obligations. All of the Escrow Assets that are delivered to the Escrow Agent shall constitute collateral security for
any and all of the Obligations on the terms provided herein. 

  
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 The Grantor hereby transfers to the Escrow Agent as secured party for the sole and exclusive
benefit of the Beneficiary exclusive control of (i) the Operating Account and each other account into which any Escrow Asset may be deposited or transferred and any and all funds and other property on deposit therein and (ii) each other
Escrow Asset. The Grantor agrees that the Escrow Agent, as secured party for the sole and exclusive benefit of the Beneficiary, shall be entitled to direct the management and disposition of each Escrow Asset without further consent of the Grantor;
provided, that the Beneficiary hereby authorizes the Escrow Agent to follow the directions of the Grantor with respect to the Escrow Assets to the extent and in the manner otherwise provided for herein. No Escrow Asset shall be deposited in any
deposit account or securities account that is not a deposit account or securities account of the Escrow Agent unless the depositary or securities intermediary has executed a control agreement satisfactory to the Beneficiary. 

As long as the Escrow Assets are pledged to the Escrow Agent for the sole and exclusive benefit of the Beneficiary, (i) the Escrow
Agent waives any right to invade the Escrow Assets for any purpose not expressly provided for in this Escrow Agreement, including, without limitation, to cover margin debits or calls in any other account of the Grantor and (ii) the Escrow Agent
waives and subordinates, in favor of the Beneficiary, any security interest, lien or right of setoff the the Escrow Agent may have with respect to the Escrow Assets. The Escrow Agent acknowledges that it has not received notice of any other security
interest in the Escrow Assets. In the event any such notice is received, the Escrow Agent shall promptly notify the Beneficiary, and the same shall constitute a Default. The Grantor agrees that, except as created by this Escrow Agreement, it shall
not suffer to exist any Lien on the Escrow Assets. 
 The Beneficiary may require, in its sole discretion, in order to secure
the timely and complete payment of each and all of the Obligations, and the Grantor agrees at the Beneficiary’s request to take, any specific action advisable to assign, transfer and grant, convey and deliver to the Escrow Agent as secured
party for the sole and exclusive benefit of the 

  
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Beneficiary, a perfected, continuing first priority security interest in each or any of Escrow Assets and all of the proceeds thereof, and the Grantor shall make, and authorizes and instructs the
Escrow Agent to make, all necessary and appropriate filings (including the filing of UCC-1 financing statements), to ensure that the Escrow Agent for the sole and exclusive benefit of the Beneficiary at all times has a perfected first priority
security interest in all of the right, title and interest of the Grantor in and to each Escrow Asset. In addition, the Beneficiary may require, in its sole discretion, and the Grantor agrees at the Beneficiary’s request to take, all such
actions as the Beneficiary deems advisable to ensure that it is the record and beneficial owner of the Escrow Assets, having good title to each Escrow Asset, free and clear of any Lien other than the Lien created by this Escrow Agreement .

 In the event that a Default shall occur, including without limitation the failure of the Grantor to make any payment in
respect of the Obligations required to be made by it, the Escrow Agent as a secured party for the sole and exclusive benefit of the Beneficiary shall have the right to exercise all remedies of a secured party with respect to each Escrow Asset under
the UCC or other applicable law. 
 ARTICLE III 
 WITHDRAWALS FROM AND SUBSTITUTIONS TO THE ESCROW ESTATE: RECEIPT, DISTRIBUTION AND APPLICATION OF INCOME FROM THE ESCROW ESTATE; VOTING RIGHTS IN ESCROW ASSETS 

SECTION 3.1 Withdrawals by Beneficiary. The Beneficiary shall have the exclusive and unconditional right, without prior written
notice to the Grantor, at any time and from time to time to direct the Escrow Agent to withdraw, or order the transfer of, all or part of the Escrow Assets from the Escrow to the Beneficiary’s accounts or possessions. Each such direction
(i) shall be in writing, electronic media, or by facsimile transmission, (ii) shall identify the specific Escrow Assets (and the amount thereof) to be withdrawn or transferred, (iii) if the Escrow Assets are not Cash, may authorize
the Escrow Agent to sell the specified Escrow Assets for cash proceeds and (iv) shall provide instructions as to where the specified Escrow Assets or proceeds therefrom should be delivered or transferred. No Person other than the

  
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Beneficiary, except as provided in Section 2.4. may direct a withdrawal or transfer of Escrow Assets from the Escrow. The Escrow Agent shall have no duty or responsibility to verify the
purpose of any withdrawal and shall provide prompt written notice to the Grantor of any such withdrawal or transfer. 

Section 3.2 Substitution of Escrow Assets. The Grantor may at any time and from time to time request the Beneficiary to
direct the withdrawal, or order the transfer of, all or part of the Escrow Assets from the Operating Account to the Grantor; provided that (i) either prior to or concurrently with any such transfer or withdrawal the Grantor shall assign,
convey, transfer and deliver to the Escrow Agent Qualified Assets which have a Market Value on the date of transfer at least equal to the Market Value of the Escrow Assets requested to be withdrawn or transferred and (ii) after giving effect to
such transaction, the Market Value of the Escrow Assets shall not be less than 100% of the Required Reserve. Each such request shall (i) be in writing or by telephone (confirmed in writing promptly thereafter), (ii) identify the specific
Escrow Assets (and the amount thereof) to which such request relates and the manner in which and the location where such Escrow Assets should be delivered to the Grantor, (iii) identify the Qualified Assets proposed to be substituted and the
Market Value thereof and (iv) provide the Market Value of all Escrow Assets after giving effect to the proposed substitution. If the Beneficiary, in its sole discretion, approves a request from the Grantor pursuant to this Section 3.2, the
Beneficiary shall deliver appropriate directions to the Escrow Agent pursuant to Section 3.1 hereof for the withdrawal or transfer of the specified Escrow Assets; provided that the amount of Qualified Assets required by the first sentence of
this Section 3.2 are delivered to the Escrow Agent by the Grantor prior to or concurrently with such withdrawal or transfer. 
 All investments and substitutions shall be in compliance with the definition of “Qualified Assets”. Any loss incurred from any investment pursuant to the terms of this Escrow Agreement shall be
borne exclusively by the Escrow. The Escrow Agent shall not be liable for any loss due to changes in the value of the Escrow or penalties for early redemption. 

  
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 Section 3.3 Additions to the Escrow Estate. The Grantor may, at any time, and
shall at the times required pursuant to Section 3.2 hereof, assign, convey, transfer and deliver Qualified Assets to the Escrow Agent for inclusion in the Escrow Estate. In addition, if at any time the Beneficiary notifies the Grantor that the
Market Value of the Escrow Assets, as shown in the most recent Valuation Report, is less than one hundred percent (100%) of the Required Reserve (which notice shall specify the amount of such shortfall), then the Grantor shall promptly assign,
convey, transfer and deliver to the Escrow Agent an amount of Qualified Assets having a Market Value on the date of delivery at least equal to such shortfall. All Qualified Assets delivered to the Escrow Agent pursuant to this Escrow Agreement shall
be in suitable form for transfer by delivery or by Book Entry, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Escrow Agent. The Escrow Agent shall have the
right, at any time in its discretion and without notice to the Grantor, to transfer or register in the name of the Escrow Agent any or all of the Escrow Assets. In addition, the Escrow Agent shall have the right at any time to exchange certificates
or instruments representing or evidencing Escrow Assets for certificates or instruments of smaller or larger denominations. All Escrow Assets at any time delivered to the Escrow Agent shall be held by the Escrow Agent and deposited in the Operating
Account for the sole and exclusive benefit of the Beneficiary, subject to the terms and conditions of this Escrow Agreement. 

Section 3.4 Amounts Received on Account of Escrow Assets. The Grantor hereby acknowledges and agrees that all monies due and
to become due under or in respect of the Escrow Assets, and all property, Cash, checks, drafts, chattel paper and other instruments or writings for the payment of money (properly endorsed, where required, so that such items may be collected by the
Escrow Agent) at any time and from time to time received by the Grantor in full or partial payment, as Distributions in respect of, or otherwise as proceeds of, the Escrow Assets shall be paid or delivered directly to the Escrow Agent and that if
any such property, monies or items shall be received by the Grantor, such property, monies or items will not be commingled by the Grantor with any of its other funds or property, but will be held separate

  
 16 

 
and apart therefrom and shall be held in escrow by the Grantor for and promptly paid over or delivered to the Escrow Agent. All property, amounts and instruments received by the Escrow Agent with
respect to the Escrow Assets shall be promptly deposited in the Operating Account and become part of the Escrow Estate. 

Section 3.5 Payments to be made by Escrow Agent. All payments to be made by the Escrow Agent under this Escrow Agreement
shall be made only from the Escrow Estate, and only to the extent that the Escrow Agent shall have received sufficient funds from the Escrow Estate to make such payments in accordance with the terms hereof. The Escrow Agent shall not be required to
expend, advance, risk or disburse its own funds in the administration of this Escrow. The Grantor and the Beneficiary, by their execution of this Escrow Agreement, agree that they will look solely to the Escrow Estate to the extent available for the
distributions as herein provided, and that neither the Escrow Agent (nor any Person acting as successor Escrow Agent, co-escrow agent or separate Escrow Agent hereunder) shall under any circumstances be personally liable to the Grantor, the
Beneficiary or any other Person for any liability under or in connection with this Escrow Agreement, except in the case of willful misconduct, negligence or lack of good faith on the part of the Escrow Agent. 

Section 3.6 Voting Rights and Defense of Title of Collateral. 

(a) The Grantor agrees that it will not, without the prior written consent of the Beneficiary, sell, assign or transfer and will not
mortgage, pledge or otherwise encumber or suffer to exist any Lien on or with respect to, any of the Escrow Assets except in favor of the Escrow Agent as secured party for the benefit of the Beneficiary. 

(b) The Grantor agrees that it will warrant and defend the title of the Escrow Assets and the interest of the Beneficiary therein against
all claims of all Persons. 
 (c) Provided that no Default has occurred and so long as Escrow Assets remain in the Operating
Account the Escrow Agent and the Beneficiary shall have no voting rights with respect to such Escrow Assets and the Grantor shall be entitled to exercise any and all voting and/or consensual rights and powers relating or pertaining to such Escrow
Assets or any part thereof for any purpose; provided, however, that the Grantor shall not be permitted to exercise 

  
 17 

 
or refrain from exercising any such right or power if, in the sole judgment of the Beneficiary, such action would have a material adverse effect on the value of such Escrow Assets or any part
thereof or would violate this Escrow Agreement, it being understood that the exercise by the Grantor of voting rights in connection with the election of directors at any meeting of stockholders of any issuer of Escrow Assets and/or with respect to
any incidental matters coming before any such meeting shall not be deemed to have a material adverse effect on the value of the Escrow Assets within the meaning of this paragraph; and, provided, further, that the Grantor shall give the
Beneficiary at least five days’ written notice of the manner in which the Grantor intends to exercise any such right or power other than with respect to the election of directors and voting with respect to the incidental matters referred to in
the preceding provisions of this paragraph. The Escrow Agent shall have no duty or obligation to monitor or enforce the provisions of this paragraph. If a Default shall have occurred, the Beneficiary and not the Grantor shall be entitled to exercise
any and all voting and/or consensual rights and pwers relating to or pertaining to such Escrow Assets or any part thereof for any purpose. 
 (d) The Escrow Agent shall execute and deliver (or cause to be executed and delivered) to the Grantor all such proxies, powers of attorney, and other instruments as the Grantor may reasonably request for
the purpose of enabling the Grantor to exercise the voting and/or consensual rights and powers which the Grantor is entitled to exercise pursuant hereto. 
 Section 3.7 Risk Management’s Compensation. The parties hereto agree that Chartis Commercial Casualty, Risk Management (“Risk Management”), as the agent of the Beneficiary,
shall have administrative oversight responsibilities with respect to the Escrow Assets. As compensation for these responsibilities, Risk Management shall receive an administrative services fee to be paid by the Grantor as follows: (1) For the
first $50,000,000 of Market Value, 7 basis points per annum of the Market Value of the Escrow Assets to the extent that the Qualified Assets consist of money market instruments and 9 basis points per annum of the Market Value of the Escrow Assets to
the extent that the Qualified Assets consist of capital market instruments (with terms to maturity exceeding one year) and, (2) on the next $25,000,000 of Market Value, 5 basis points per annum of the Market Value of the Escrow

  
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Assets to the extent that the Qualified Assets consist of money market instruments and 7 basis points per annum of the Market Value of the Escrow Assets to the extent that the Qualified Assets
consist of capital market instruments (with terms to maturity exceeding one year) and, (3) on any amount of Market Value in excess of $75,000,000, 3 basis points per annum of the Market Value of the Escrow Assets to the extent that the
Qualified Assets consist of money market instruments and 5 basis points per annum of the Market Value of the Escrow Assets to the extent that the Qualified Assets consist of capital market instruments (with terms to maturity exceeding one year). The
first payment is due in full on the date of execution and delivery of this Escrow Agreement. The administrative services fee for each annual anniversary after the effective date shall be paid within 15 days of the respective annual anniversary. The
yearly administrative services fee shall in no event be less than Five Thousand Dollars ($5,000.00) nor more than Ninety Thousand Dollars ($90,000.00). Initial set up charges and legal fees incurred by the Beneficiary will be for its account.

 ARTICLE IV 

DUTIES OF ESCROW AGENT 

Section 4.1 Instructions of Beneficiary. Upon the instructions of the Beneficiary, the Escrow Agent directly or through its
authorized agent will take such of the following actions as may be specified in such instructions: (i) give such notice or direction, take such action or exercise such right, power or remedy or perform such obligation, under and pursuant to the
terms of this Escrow Agreement or in respect of all or any part of the Escrow Estate, as shall be specified in such instructions; and (ii) take such action to preserve and protect the Escrow Estate (including the discharge of Liens) as may be
specified in such instructions. 
 Section 4.2 No Implied Duties. The Escrow Agent shall not have any duty or
obligation to manage, control, use, sell, dispose of or otherwise deal with any part of the Escrow Estate, or to otherwise take or refrain from taking any action, except as expressly required by the terms of this Escrow Agreement or as expressly
provided in instructions from the Beneficiary received pursuant to and in accordance with the terms of this Escrow Agreement, and no implied duties or obligations shall be read into this Escrow Agreement against the Escrow Agent. 

  
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 Section 4.3 No Unauthorized Transactions. The Escrow Agent agrees that it will
not manage, control, use, sell, dispose of or otherwise deal with any part of the Escrow Estate, or otherwise take or refrain from taking any action except as expressly provided by the terms of, or in written instructions from the Beneficiary
pursuant to, this Escrow Agreement. 
 Section 4.4 Tax Returns. The Grantor shall be responsible for causing to be
prepared and filed in a timely fashion all tax returns of the Escrow relating to the transactions contemplated by this Escrow Agreement or otherwise contemplated hereby, and it shall send a copy of each such tax return to the Beneficiary. The Escrow
Agent, upon request, will furnish the Grantor with all such information as it has in its possession and as may be reasonably required in connection with the preparation of such tax returns. The Person acting as Escrow Agent shall not be personally
liable for any tax due and payable in connection with this Escrow Agreement. 
 Section 4.5 Books and Records of Escrow
Agent. The Grantor and the Beneficiary, at their own expense, shall each have the right, at all reasonable times during the Escrow Agent’s normal business hours, to inspect and copy the Escrow Agent’s books and records regarding the
Escrow Estate and to an accounting (at the expense of the Grantor) with respect to the Escrow Estate. 
 Section 4.6
Valuation Report. The Valuation Report required under Section 2.3 of this Escrow Agreement is to be sent by mail at the required intervals to: 
  

			
	For the Grantor:	  	Workers’ Assurance of Hawaii, Inc.
		  	c/o Willis Management (Hawaii), Ltd.,
		  	America Savings Bank Tower,
		  	1003 Bishop Street, Suite 1220
		  	Pauahi Tower Honolulu, Hawaii 96813
		
	For the Beneficiary:	  	
		  	National Union Fire Insurance Company of
		  	Pittsburgh, Pa.
		  	Insurance Security Department

  
 20 

			
		 	 70 Pine Street/3rd Floor
 New
York, NY 10270
 Attn: Jeffrey Schattin

		
		 	With a Copy to:
		
		 	 National Union Fire Insurance Company of
 Pittsburgh, Pa.

		 	 175 Water Street/27th floor

New York, NY 10038
 Attn: Diana
Ortiz

 Section 4.7 Escrow Agent Liability. The Escrow Agent shall not incur any liability for not
performing any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control of the Escrow Agent (including, but not limited to, any act or provision of any present or future law or regulation or
governmental authority, any act of God or war, or the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility). 
 ARTICLE V 
 THE ESCROW AGENT 

Section 5.1 Acceptance of Escrow. The Escrow Agent accepts the Escrow hereby created and agrees to perform the same upon the
terms and conditions contained in this Escrow Agreement. Neither the Escrow Agent nor any Person acting as successor Escrow Agent, co-escrow agent or separate Escrow Agent hereunder, shall be answerable or accountable or liable for actions taken by
it or failures to act arising out of or in connection with this Escrow Agreement, except for its own willful misconduct or gross negligence or lack of good faith. 
 Section 5.2 Limitation of Duties. The Escrow Agent shall have no duty to see to the payment or discharge of any tax, assessment or other governmental charge or any Lien with respect to, or
assessed or levied against, any part of the Escrow Estate. Notwithstanding the foregoing, the Escrow Agent will furnish to the Beneficiary, promptly upon receipt thereof, duplicates or copies of all reports, notices, requests, demands, certificates,
financial statements and other instruments furnished to the Escrow Agent by the Grantor pursuant hereto or by any other Person with respect to the Escrow Estate or any part thereof. 

  
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 Section 5.3 Representations and Warranties of Escrow Agent. The Escrow Agent
hereby represents and warrants to the Grantor and the Beneficiary that this Escrow Agreement has been duly executed and delivered by one of its officers who is duly authorized to execute and deliver such type of instrument. 

Section 5.4 Segregation of Funds. Monies received by the Escrow Agent in respect of the Escrow Estate (other than pursuant to
Section 5.7 hereof) shall be segregated and promptly deposited in the Operating Account. 
 Section 5.5 Reliance on
Documents; Agents. The Escrow Agent shall incur no liability to anyone in acting in reliance upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper believed by
it to be genuine and believed by it to be signed by the proper party or parties named in incumbency certificates furnished to the Escrow Agent from time to time by the Grantor and the Beneficiary and by attorneys-in-fact acting under written
authority furnished to the Escrow Agent by the Grantor and the Beneficiary, including without limitation, instructions given by letter, facsimile transmission, telegram, teletype, electronic media, cablegram, if the Escrow Agent believes such
instructions to be genuine and to have been signed, sent or presented by the proper party or parties. The Escrow Agent shall not incur any liability to anyone resulting from actions taken by the Escrow Agent in reliance in good faith on such
instructions. The Escrow Agent shall not incur any liability in executing instructions (i) from any attorney-in-fact prior to receipt by it of notice of the revocation of the written authority of that attorney-in-fact or (ii) from any
officer of the Grantor and the Beneficiary named in an incumbency certificate delivered hereunder prior to receipt by it of a more current certificate. In the administration of the Escrow hereunder, the Escrow Agent may execute any of the escrows or
powers hereof and perform its powers and duties hereunder directly or through agents or attorneys and may, at the expense of the Grantor, consult with counsel, accountants and other skilled Persons to be selected and retained by it, and the Escrow
Agent shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the advice or opinion of any such counsel, accountants or other skilled Persons. 

  
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 Section 5.6 Limitation of Liability of Escrow Agent. Notwithstanding anything to
the contrary in this Escrow Agreement, the Escrow Agent is entering into this Escrow Agreement, and in its capacity as Escrow Agent performing the obligations and exercising the rights hereunder solely as Escrow Agent under this Escrow Agreement,
pursuant to instructions contained in this Escrow Agreement and not in its individual or corporate capacity. In no case whatsoever shall the Escrow Agent (or any entity acting as successor Escrow Agent, co-escrow agent or separate Escrow Agent under
this Escrow Agreement) be personally liable on, or in respect of, any of the obligations or duties of the Grantor, the Beneficiary under this Escrow Agreement, or for the payment of any fee, expense, cost, damage, claim, liability or other
obligation arising out of or related to any of the foregoing (collectively, the “Escrow Obligations”). No recourse shall be had against the Escrow Agent (or any successor Escrow Agent, co-escrow agent or separate Escrow Agent under this
Escrow Agreement) in its corporate or individual capacities or against any stockholder, officer, director, employee or agent of the Escrow Agent or any successor Escrow Agent, co-escrow agent or separate Escrow Agent for the payment of any and all
sums payable under the Escrow Obligations or for any claim, liability, damage, cost, expense, fee or other obligation based on or arising out of any provision thereof or on or out of any of the instruments and agreements to be executed, delivered
and performed hereunder, as to all of which the Beneficiary and the Grantor agree to look solely to the Escrow Estate, except for any loss caused by the Escrow Agent’s willful misconduct, negligence or lack of good faith. The obligation of the
Escrow Agent to make any and all payments hereunder, or in respect of or under the Escrow Obligations of whatsoever nature, shall be solely from the Escrow Estate, and nothing herein shall be deemed to impose obligations on the Escrow Agent other
than those expressly set forth in this Escrow Agreement. The Escrow Agent shall have no responsibility to determine whether the Escrow Assets in the Operating Account are sufficient or proper to secure the Grantor’s liabilities under the
Contractual Liability Policy[ies]. The Beneficiary’s determination or reevaluation of the 

  
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sufficiency of the Escrow Assets shall govern. Except as otherwise provided in Sections 5.7 and 10.1 of this Escrow Agreement, the Escrow Agent agrees that it shall have no right against the
Beneficiary or the Escrow Estate for any fee as compensation for its services hereunder or for any other costs or expenses incurred by it pursuant hereto. 
 Section 5.7 The Escrow Agent’s Compensation, Expenses and Indemnification. The Grantor shall pay the Escrow Agent, as compensation for its services under this Escrow Agreement, a fee
computed at rates determined by the Escrow Agent from time to time. The Grantor shall pay or reimburse the Escrow Agent for all of the Escrow Agent’s expenses, disbursements, and advances in connection with its duties under this Escrow
Agreement (including attorneys’ and agents’ fees, expenses, and disbursements), except any such expense or disbursement as may arise from the Escrow Agent’s negligence, willful misconduct or lack of good faith. The Grantor also hereby
indemnifies the Escrow Agent for, and holds it harmless against, any loss, liability, costs or expenses (including attorneys’ and agents’ fees, expenses, and disbursements) incurred or made without negligence, willful misconduct or lack of
good faith on the part of the Escrow Agent, arising out of or in connection with the performance of its obligations in accordance with the provisions of this Escrow Agreement, including but without limitation, any loss, liability, costs or expenses
arising out of or in connection with the status of the Escrow Agent and its nominee as the holder of record of the Escrow Assets. The Grantor hereby acknowledges and agrees that the foregoing indemnities shall survive the resignation or removal of
the Escrow Agent or the termination of this Escrow Agreement. 
 No Escrow Assets shall be withdrawn from the Escrow or used in
any manner for paying compensation to, or reimbursement or indemnification of, the Escrow Agent; provided, however if the Escrow exceeds 100% of the Required Reserve, then the Escrow Agent and/or Risk Management may withdraw from the Escrow their
compensation, reimbursement and indemnification as the case may be which have not previously been paid. The Escrow Agent’s compensation, reimbursement and indemnification shall be withdrawn prior to that of Risk Management. 

  
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 ARTICLE VI 
 TRANSFER OF BENEFICIARY’S INTEREST 
 Section 6.1 Transfer of
Interest. The Beneficiary may assign to another Person (hereinafter referred to as the “Transferee”) all, but not part, of its right, title and interest in, to and under this Escrow Agreement; provided that (i) the Transferee
shall have the requisite power and authority to enter into and carry out the transactions contemplated hereby, (ii) the Transferee shall have entered into an agreement, in form and substance satisfactory to the Escrow Agent and the Grantor,
whereby the Transferee confirms that it shall be deemed a party to this Escrow Agreement, agrees to be bound by all of the terms of, and to undertake all of the obligations of the Beneficiary contained in this Escrow Agreement, and (iii) such
transfer shall not violate any provision of any applicable law, agreement or other instrument or create a relationship which would result in violation thereof. Upon any such transfer by the Beneficiary to a Transferee as above provided, such
Transferee shall be deemed to be the Beneficiary for all purposes of this Escrow Agreement and each reference herein to the Beneficiary shall thereafter be deemed to be a reference to such Transferee. 

Section 6.2 Notice of Assignment by Beneficiary. If the Beneficiary proposes to assign its interest pursuant to this Article
VI, it shall give written notice to the Escrow Agent and the Grantor at least thirty (30) days prior to such proposed assignment stating (i) the name and address of the proposed Transferee and (ii) that the proposed Transferee meets
the requirements set forth in Section 6.1 of this Escrow Agreement. 
 ARTICLE VII 

SUCCESSOR ESCROW AGENTS; CO-ESCROW AGENTS 
 Section 7.1 Successor Escrow Agents; Co-escrow agents. 
 (a) The
Escrow Agent, any co-escrow agent or any successor Escrow Agent may resign at any time without cause by giving at least ninety (90) days’ prior written notice to the Grantor and the Beneficiary, such resignation to be effective upon the
acceptance of appointment by the successor Escrow Agent and the transfer of the Escrow Assets to the successor Escrow Agent under Section 7.1(b) hereof. In addition, the Beneficiary may remove the Escrow Agent

  
 25 

 
without cause by a written notice delivered to the Grantor and to the Escrow Agent, such removal to be effective upon the acceptance of appointment by the successor Escrow Agent and the transfer
of the Escrow Assets to the successor Escrow Agent under Section 7.1(b) hereof. In the case of the resignation or removal of the Escrow Agent, the Beneficiary may appoint a successor Escrow Agent, designated by the Beneficiary and satisfactory
to the Grantor, by an instrument signed by the Grantor and the Beneficiary; provided that the consent of the Grantor shall not be required if a Default shall have occurred. If a successor Escrow Agent shall not have been appointed within ninety
(90) days after such notice of resignation or removal, the Escrow Agent and the Beneficiary may apply to any court of competent jurisdiction to appoint a successor Escrow Agent to act until such time, if any, as a successor shall have been
appointed as above provided. Any successor Escrow Agent so appointed by such court shall immediately and without further act be superseded by any successor Escrow Agent appointed as above provided within one year from the date of the appointment by
such court. 
 (b) Any successor Escrow Agent, however appointed, shall execute and deliver to the predecessor Escrow Agent, the
Grantor and the Beneficiary an instrument accepting such appointment, and thereupon such successor Escrow Agent, without further act, shall become vested with all the estates, properties, rights, powers, duties and escrows of the predecessor Escrow
Agent hereunder with like effect as if originally named the Escrow Agent herein; but nevertheless, upon the written request of such successor Escrow Agent, such predecessor Escrow Agent shall execute and deliver an instrument or instruments
transferring to such successor Escrow Agent, upon the escrows herein expressed, all the estates, properties, rights, powers and escrows of such predecessor Escrow Agent, and such predecessor Escrow Agent shall assign, transfer, deliver and pay over
to such successor Escrow Agent all Escrow Assets then held by such predecessor Escrow Agent upon the escrows herein expressed. Upon the appointment of any successor Escrow Agent hereunder, the predecessor Escrow Agent will complete, execute and
deliver to the successor Escrow Agent such documents as are necessary to effectuate the transfer of legal title to all Escrow Assets into the name of the successor 

  
 26 

 
Escrow Agent and to continue to the existence and perfection of the security interest of the Escrow Agent for the exclusive benefit of the Beneficiary. Notwithstanding anything expressed herein
to the contrary, the predecessor Escrow Agent shall continue, after its resignation, to be entitled to the benefits of any indemnities provided herein for the Escrow Agent. 
 (c) Any successor Escrow Agent, however appointed, shall be a bank or escrow company in good standing and organized and doing business under the laws of the United States of America or of any state
thereof, and with a combined capital and surplus of at least One Hundred Million Dollars ($100,000,000), if there be such an institution willing, able and legally qualified to perform the duties of the Escrow Agent hereunder upon reasonable or
customary terms, and which is a corporation authorized under the laws of its jurisdiction of incorporation to exercise corporate escrow powers and is subject to supervision or examination by Federal or state authority, and the appointment of any
successor Escrow Agent shall not violate any provision of any law or regulation or create a relationship which would be in violation thereof. 
 (d) Any Person into which the Escrow Agent in its individual capacity may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation
to which the Escrow Agent in its individual capacity shall be a party, or any Person to which substantially all the corporate escrow business of the Escrow Agent in its individual capacity may be transferred, shall, subject to the terms of paragraph
(c) of this Section 7.1, be the Escrow Agent under this Escrow Agreement without further act. 
 (e) At any time or
times, for the purpose of conforming to any legal requirements, restrictions or conditions in any state or jurisdiction in which any part of the Escrow Estate may be located, the Escrow Agent shall have power to appoint, and, upon the written
request of the Escrow Agent, the Grantor and the Beneficiary shall for such purpose join with the Escrow Agent in the execution, delivery and performance of, all instruments and agreements necessary or proper to appoint, another corporation or one
or more Persons approved by the Beneficiary, either to act as separate Escrow Agent or Escrow Agents, or co-escrow agent or co-escrow agents jointly with the Escrow Agent, of all or any of the Escrow Estate. In the event

  
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that the Grantor and the Beneficiary shall not have joined in such appointment within fifteen (15) days after the receipt by it of a request so to do, the Escrow Agent alone shall have power
to make such appointment. 
 Every separate Escrow Agent, every co-escrow agent and every successor of either thereof shall, to
the extent permitted by law, but to such extent only, be appointed subject to the following provisions and conditions, namely: 

(1) The rights, powers, duties and obligations conferred or imposed upon Escrow Agents hereunder or any of them shall be conferred or
imposed upon and exercised or performed by the Escrow Agent and such separate Escrow Agent or separate Escrow Agents or co-escrow agent or co-escrow agents jointly, as shall be provided in the instruments and agreements appointing such separate
Escrow Agent or separate Escrow Agents or co-escrow agent or co-escrow agents, except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed the Escrow Agent shall be incompetent or unqualified
to perform such act or acts, in which event such rights, powers, duties and obligations shall be exercised and performed by the separate Escrow Agent or separate Escrow Agents or co-escrow agent or co-escrow agents, as the case may be; 

(2) The Escrow Agent at any time by an instrument in writing executed by it may accept the resignation of or remove any separate Escrow
Agent or co-escrow agent appointed under this paragraph (e) or otherwise, and, upon the request of the Escrow Agent, the Grantor and the Beneficiary shall, for such purpose, join with the Escrow Agent in the execution, delivery and performance
of all instruments and agreements necessary or proper to make effective such resignation or removal. In the event that the Grantor and the Beneficiary shall not have joined in such action within fifteen (15) days after the receipt by them of a
request to do so, the Escrow Agent alone shall have power to accept such resignation or to remove any such separate Escrow Agent or co-escrow agent. A successor to a separate Escrow Agent or co-escrow agent so resigned or removed may be appointed in
the manner provided in this Article VII; 

  
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 (3) The Escrow Agent shall not be personally liable by reason of any act or omission of any
other Escrow Agent hereunder, it being understood, however, that if a co-escrow agent or separate Escrow Agent is an employee of the Escrow Agent, the Escrow Agent shall be liable for any willful misconduct, negligence or lack of good faith on the
part of such co-escrow agent or separate Escrow Agent; 
 (4) Any notice, request or other writing delivered to the original
Escrow Agent, or its successor in the escrow hereunder, shall be deemed to have been delivered to all of the then Escrow Agents or co-escrow agents as effectually as if delivered to each of them. Every instrument appointing any Escrow Agent or
Escrow Agents other than a successor to the original Escrow Agent shall refer to this Escrow Agreement and the conditions in this Section 7.1(e) expressed, and upon the acceptance in writing by such Escrow Agent or Escrow Agents or co-escrow
agent or co-escrow agents, he, they or it shall be vested with the estates or property specified in such instrument, either jointly with the original Escrow Agent, or its successor, or separately, as may be provided therein, subject to all the
terms, conditions and provisions of this Escrow Agreement; and every such instrument shall be filed with the original Escrow Agent or its successor in the escrow hereunder. Any separate Escrow Agent or Escrow Agents or any co-escrow agent or
co-escrow agents may at any time by an instrument in writing constitute the original Escrow Agent or its successor in the escrow hereunder his, their or its agent or attorney in fact, with full power and authority, to the extent which may be
permitted by law, to do any and all acts and things and exercise any and all discretion authorized or permitted by him, them or it, for and in behalf of him, them or it, and in his, their or its name. In case any separate Escrow Agent or Escrow
Agents or co-escrow agent or co-escrow agents, or a successor to any of them, shall die, dissolve, or otherwise become incapable of acting, resign or be removed, all the estates, property, rights, powers, escrows, duties and obligations of said
separate Escrow Agent or co-escrow agent, so far as permitted by law, shall vest in and be exercised by the original Escrow Agent or its successor in the escrow hereunder, without the appointment of a new Escrow Agent as successor to such separate
Escrow Agent or co-escrow agent; and 

  
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 (5) Any and all exculpatory provisions, immunities and indemnities in favor of the Escrow
Agent under this Escrow Agreement or under any other agreement, document or instrument described or referred to herein shall inure to the benefit of the Escrow Agent in its capacity as such and any successor, co-escrow agent and separate Escrow
Agent appointed pursuant to this Article VII and of any Person acting or which has acted as Escrow Agent or successor, co-escrow agent or separate Escrow Agent hereunder or thereunder. 

ARTICLE VIII 

TERMINATION; VALIDITY OF SALE 
 Section 8.1 Termination. Except as otherwise provided herein, this Escrow Agreement and the escrows created hereby shall terminate and this Escrow Agreement shall be of no further force or
effect upon the Escrow Agent’s receipt of written notice of such termination from the Grantor and the Beneficiary and upon the sale or other final disposition by the Escrow Agent of all property constituting part of the Escrow Estate and the
final distribution by the Escrow Agent of all monies or other property or proceeds constituting the Escrow Estate; provided, however, in no case shall the escrows created hereby extend beyond 21 years after the death of the last
surviving of the now living lineal descendants of the late Robert F. Kennedy, former Attorney General of the United States. At least 30 days, but not more than 45 days, prior to termination of the Operating Account, written notification of
termination shall be delivered by the Escrow Agent to the Beneficiary. Upon termination of the Operating Account, all assets not previously withdrawn by the Beneficiary shall, with written approval of the Beneficiary, be delivered over to the
Grantor. Otherwise this Escrow Agreement and the escrows created hereby shall continue in full force and effect in accordance with the terms hereof. 
 Section 8.2 Validity of Sale. Any sale or other conveyance of the Escrow Assets or any other part of the Escrow Estate by the Escrow Agent made pursuant to the terms of this Escrow Agreement
shall bind the Grantor and the Beneficiary and shall be effective to transfer 

  
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or convey all right, title and interest of the Escrow Agent, the Grantor and the Beneficiary in and to such Escrow Assets or such other part of the Escrow Estate. No purchaser or other grantee
shall be required to inquire as to the authorization, necessity, expediency or regularity of such sale or conveyance or as to the application of any sale or other proceeds with respect thereto by the Escrow Agent. 

ARTICLE IX 

REPRESENTATIONS AND WARRANTIES OF GRANTOR 
 Section 9.1 Representations and Warranties of Grantor. 
 The Grantor hereby represents
and warrants to the Escrow Agent and Beneficiary that: 
 (a) This Escrow Agreement has been duly and validly executed and
delivered by the Grantor and constitutes the legal, valid, binding and enforceable obligation of the Grantor. 
 (b) The
execution, delivery and performance by the Grantor of this Escrow Agreement, and the transfer and conveyance of Escrow Assets by the Grantor pursuant hereto, do not and will not (i) violate or conflict with any of its charter documents or any
provision of any law, rule, regulation, order, writ, judgment, decree, determination or award presently in effect having applicability to the Grantor, or (ii) result in a breach of or constitute a default under any indenture or loan or credit
agreement, or any other agreement or instrument, to which the Grantor is a party or by which the Grantor or any of its properties may be bound or affected. 
 (c) The Grantor hereby represents and warrants (i) that any assets transferred by the Grantor to the Escrow Agent for deposit to the Operating Account will be in such form that the Beneficiary
whenever necessary may, and the Escrow Agent upon direction by the Beneficiary will, negotiate any such assets without consent or signature from the Grantor or any Person in accordance with the terms of this Escrow Agreement; (ii) that all
assets transferred by the Grantor to the Escrow Agent for deposit to the Escrow consist only of Qualified Assets, and (iii) that the Grantor will, upon demand, transfer sufficient Qualified Assets to the Escrow so that after the transfer the
Market Value of the Escrow Assets will equal the Required Reserve. 

  
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 (d) No authorization, consent, approval, license, qualification or formal exemption from,
nor any filing, declaration or registration with, any court, governmental agency or regulatory authority, or with any securities exchange or any other Person is required in connection with (i) the execution, delivery or performance by the
Grantor of this Escrow Agreement or (ii) the transfer and conveyance of the Escrow Assets by the Grantor in the manner and for the purpose contemplated by this Escrow Agreement. 

(e) At the date of each delivery by the Grantor to the Escrow Agent of each Escrow Asset, the Grantor has good and marketable title to
and right to transfer such Escrow Asset free and clear of any and all Liens and the Escrow Agent will then have good and marketable title to, and the right to transfer such Escrow Asset, free and clear of all Liens except in each case the Liens
created in favor of the Escrow Agent for the sole and exclusive benefit of the Beneficiary. 
 ARTICLE X 

REPRESENTATIONS AND WARRANTIES OF BENEFICIARY 
 Section 10.1 Representations and Warranties of Beneficiary. The Beneficiary hereby represents, warrants, agrees and covenants to the Escrow Agent and Grantor that: 

(a) This Escrow Agreement has been duly and validly executed and delivered by the Beneficiary and constitutes the legal, valid and
binding and enforceable obligation of the Beneficiary. 
 (b) It shall undertake to apply any amounts distributed to it from the
Escrow Estate to pay or reimburse itself for the Grantor’s Obligations. 

  
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 ARTICLE XI 
 MISCELLANEOUS 
 Section 11.1 Notices. Unless otherwise provided
in this Escrow Agreement, all notices, directions, requests, demands, acknowledgements and other communications required or permitted to be given or made under the terms hereof shall be in writing and shall be deemed to have been duly given or made
(a) (i) when delivered personally or by courier service, (ii) when made or given by prepaid telex, telegraph, electronic media, or facsimile transmissions, or (iii) in the case of mail delivery, upon the expiration of three days
after any such notice, direction, request, demand, acknowledgement or other communication shall have been deposited in the United States mail for transmission by first class mail, postage prepaid, or upon receipt thereof, whichever shall first occur
and (b) when addressed as follows: 
 If to the Grantor: 
 WORKERS’ ASSURANCE OF HAWAII 
 C/O WILLIS MANAGEMENT (HAWAII), LTD. 

AMERICA SAVINGS BANK TOWER 
 1003 BISHOP STREET,
SUITE 1220 PAUAHI TOWER 
 HONOLULU, HAWAII 96813 
 Attn: Jason Palmer 
 Telephone #: (808) 521-0730 

Facsimile #: (808) 521-0724 

If to the Beneficiary: 

NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA. 
 175 Water Street/27th floor 
 New York, NY 10038 

Attn: Peter Rapciewicz 
 Telephone #:
(212) 458-3019 
 Facsimile #: (212) 458-3658 
 cc: Chartis U.S. Law Dept. 
 175 Water Street/18th floor 

New York, NY 10038 
 Attn: General Counsel

 Telephone #: (212) 458-7018 

Facsimile #: (212) 458-7083 

If to the Escrow Agent: 
 THE
BANK OF NEW YORK MELLON 
 101 Barclay Street, 8W 
 New York, NY 10286 
 Attn: Nancy Neumann 
 Telephone: (212) 298-1755 
 Facsimile: (212) 815-5877 

  
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 Each party may from time to time designate a different address for notices, directions,
requests, demands, acknowledgements and other communications by giving written notice of such change to the other parties. All notices, directions, requests, demands, acknowledgements and other communications relating to the Beneficiary’s
approval of the Grantor’s authorization to substitute Escrow Assets, withdrawals by the Beneficiary and to the termination of the Escrow shall be in writing and may not be made or given by prepaid telex or telegraph. 

Section 11.2 Severability. Any provision of this Escrow Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. 
 Section 11.3 Modifications. No term or provision
of this Escrow Agreement may be changed, amended, waived, discharged or terminated orally, but only by an instrument in writing signed by all of the parties; and any waiver of the terms hereof shall be effective only in the specific instance and for
the specific purpose given. 
 Section 11.4 Counterparts. This Escrow Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 

Section 11.5 Entire Agreement. This Escrow Agreement constitutes the entire agreement among the parties, and any
understandings or agreements, conditions or qualifications relative to this Escrow Agreement and accepted by the parties, which are not fully expressed in this Escrow Agreement are merged herein. 

Section 11.6 Benefits of Agreements. All covenants and agreements contained herein shall be binding upon, and inure to the
benefit of, the Grantor, the Escrow Agent and, to the extent provided in Article VII hereof, its respective successors and assigns; provided, however, that the Grantor may not assign its rights or obligations hereunder or in connection herewith
(voluntarily, by operation of law or otherwise). Any request, notice, direction, consent, waiver 

  
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or other instrument or action by the Grantor or the Beneficiary shall bind the successors and assigns of the Grantor or the Beneficiary, as the case may be. Nothing in this Escrow Agreement,
whether express or implied, shall be construed to give to any Person other than the Escrow Agent, the Grantor or the Beneficiary any legal or equitable right, remedy or claim under or in respect of this Escrow Agreement; but this Escrow Agreement
shall be held to be for the sole and exclusive benefit of the Escrow Agent, the Grantor and the Beneficiary. 

Section 11.7 Headings. The headings of the various Sections and the table of contents herein are for convenience of reference
only and shall not define or limit any of the terms or provisions hereof. 
 Section 11.8 Dealings by Escrow Agent.
The Escrow Agent in its individual capacity or any corporation in or with which the Escrow Agent in its individual capacity or its stockholders may be interested or affiliated or any officer or director of the Escrow Agent in its individual capacity
or of any other such corporation or any agent appointed by the Escrow Agent may have commercial relations and otherwise deal with the Grantor and the Beneficiary or with any other corporation having relations with the Grantor or the Beneficiary, and
with any other corporation or entity, whether or not affiliated with the Escrow Agent. 
 Section 11.9 Governing Law and
Venue. 
  

	 	a.	Governing Law. This Escrow Agreement shall in all respects be governed by, and construed in accordance with, the laws of the State of New York, including all
matters of construction, validity and performance, without regard to principles of conflicts of law. It is the intention of the parties hereto that this Escrow Agreement shall be delivered in the State of New York, County of New York.

 Each of the Grantor and the Beneficiary hereby waives the right to trial by jury in any judicial proceeding
involving, directly or indirectly, any matter (whether sounding in tort, contract or otherwise) in any way arising out of or related to this Escrow Agreement or the relationship established hereunder. This provision is a material inducement for the
parties to enter into this contract. To the extent that in any jurisdiction either of the Grantor and the Beneficiary may be entitled to claim, for itself 

  
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or its assets, immunity from suit, execution, attachment (whether before or after judgment) or other legal process, each hereby irrevocably agrees not to claim, and hereby waives, such immunity.

  

	 	b.	Venue. As to any legal action or proceeding related to this Escrow Agreement, the parties hereto shall be subject to the jurisdiction of the federal courts, or if such
courts do not have jurisdiction then the state courts, located in the Borough of Manhattan in the State of New York, and each party waives any claim or defense in any such action or proceeding based on any alleged lack of personal jurisdiction,
improper venue, forum non conveniens or any similar basis. 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to be duly
executed by their respective officers thereunto duly authorized as of the day and year first above written. 
  

	
	Grantor:
	
	WORKERS’ ASSURANCE OF HAWAII, INC.
	
	By:                            
                                         
                           
	
	Printed Name: Darren McCallon            
	
	Title: VP Finance & Treasurer                
	
	Date:             , 2011
	
	Escrow Agent:
	
	THE BANK OF NEW YORK MELLON
	
	By:                            
                                         
                           
	
	Printed
Name:                                        
                                 
	
	Title:                            
                                         
                       
	
	Date:                            
                                         
                       
	
	Beneficiary:
	
	NATIONAL UNION FIRE INSURANCE
	COMPANY OF PITTSBURGH, PA.
	on behalf of itself and its insurance company affiliates first listed above
	
	By:                            
                                         
                           
	
	Printed
Name:                                        
                                 
	
	Title:                            
                                         
                       
	
	Date:                            
                                         
                       

  
 37 

 EXHIBIT A 

INITIAL ESCROW ASSETS 
 /NATIONAL UNION 2011 ESCROW 
 1.)
Cash                                        
         

  
 38 

 EXHIBIT B 

CONTRACTUAL LIABILITY POLICIES 
  

							
	 Policy Type
	 	 Policy Period
	 	 Policy Number
	 	 LOB

  
 39

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