Document:

Services Agreement

 Exhibit 10.5 
  
 SERVICE AGREEMENT 
 BETWEEN 
 ROSETTA RESOURCES INC. 
 AND 
 CALPINE PRODUCER SERVICES, L.P. 
  
 THIS SERVICE AGREEMENT (“Service Agreement”), dated this 7 th day of July, 2005, by
and between ROSETTA RESOURCES INC., a Delaware corporation; ROSETTA RESOURCES OFFSHORE, LLC, a Delaware Limited Liability Company; ROSETTA RESOURCES CALIFORNIA, LLC, a Delaware Limited Liability Company; ROSETTA RESOURCES TEXAS LP, a Delaware
Limited Partnership; and ROSETTA RESOURCES ROCKIES, LLC, a Delaware Limited Liability Company, individually referred to as (“RRI ENTITY”) and jointly referred to herein as (“RRI”) and CALPINE PRODUCER SERVICES, L.P., a Texas
Limited Partnership, hereinafter called (“CPS”). RRI and CPS are sometimes collectively referred to herein as (“PARTIES”), and individually as a (“PARTY”). 
  
 WITNESSETH 
  
 WHEREAS, RRI desires to enter into a Service Agreement with an experienced, skilled and qualified, full service marketing
agent with front office, mid office and back office support and comprehensive report generation. The services (“Services”) desired by RRI are described in greater detail in Article 1 below and the attached Schedules 1-9; 

 
 WHEREAS, CPS desires to provide the Services to RRI on the basis as set
forth herein; 
  
 WHEREAS, CPS is in the business of performing
and providing the Services desired by RRI and is in a position to make available such Services in an efficient, competent, and professional manner for competitive, market based fees and rates. 
  
 NOW THEREFORE, in consideration of the foregoing and of the covenants and
promises herein contained, IT IS AGREED by and between the PARTIES: 
  
 ARTICLE 1 
 SERVICES TO BE PERFORMED 
  
 From and after the Effective Date of this Service Agreement, CPS shall, subject to the overall direction of the “RRI Authorized
Representatives” (as this term is defined below), furnish for and on behalf of RRI or any RRI ENTITY the Services in connection with all of RRI’s owned or controlled production of crude oil, condensate, natural gas or natural gas liquids,
as applicable, located in the continental United States and the Shelf of the Gulf of Mexico, such owned or controlled production being set forth in Exhibit “A”, as same may be supplemented in writing following designation by RRI or any RRI
ENTITY and mutually agreed upon with CPS, as well as that production operated by RRI and RRI ENTITY individually and jointly on behalf of Calpine Corporation (collectively the owned and controlled production and the production operated by RRI and/or
any RRI ENTITY referred to as “RRI Production”). 
  
 The Services shall
include, but not be limited to, the subject matters set forth in the following Schedules: 
  
 Schedule 1. RRI Production 
  

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 Schedule 2. Information Access 
 Schedule 3. Payment of State Taxes 
 Schedule
4. Contract Preparation, Negotiation & Administration 
 Schedule 5. Royalty Issues 
 Schedule 6. Payment from Purchasers of RRI Production 
 Schedule 7. RRI Working Interest Owners 
 Schedule 8. Pricing and Credit Issues 
 Schedule 9. Hourly Rate for Services Not Listed on Other Schedules 
  
 “Schedules 1-9” are attached and fully incorporated herein. In the event RRI or any RRI ENTITY and CPS agree in the future that
CPS will perform additional Services not identified in this Service Agreement or in an attached Schedule hereto, additional Schedules will be added to this Service Agreement or existing Schedules will be amended in order to identify and describe the
new Services to be performed for RRI and any RRI ENTITY by CPS. Any additional Services which are not included in the Schedules performed at the written request of Charlie Chambers, Chad Diskill, Nellie Don Evans, Vicki Gott or any other RRI
designated personnel (each, a “RRI Authorized Representative”) will be charged at the hourly rate specified in Schedule 9 or any other rate or fee as may be mutually agreed upon by the PARTIES and added to this Service Agreement by a
signed written amendment. 
  
 CPS agrees to perform the Services in a workmanlike
manner with due diligence and without undue delays or interruptions. CPS further agrees that the Services shall be performed in a commercially reasonable manner. CPS shall not have any fiduciary obligation to RRI or any RRI ENTITY in connection with
the services provided pursuant to this agreement. CPS and RRI or any RRI ENTITY shall cooperate with each other and assist each other to facilitate CPS’ performance of the Services. To this end, RRI agrees to timely furnish CPS with any
information requested by CPS in writing that RRI or any RRI ENTITY may have that is pertinent to the Services, but which CPS does not possess or have access to through RRI systems. 
  
 ARTICLE 2 
 TERM 
  
 This Service Agreement shall be effective
commencing on the earlier of the date services are first provided by CPS or the date the last of the PARTIES execute this Service Agreement (as evidenced by the dates written below the signature line) (“Effective Date”) and shall
continue through June 30, 2007 (“Initial Term”), and shall automatically renew for one or more one (1) year extensions thereafter, (each a “Renewal Term”) unless terminated by any PARTY giving at least six
(6) months written notice to the other PARTY before the end of the Initial Term, or if applicable, any Renewal Term. When used in the Service Agreement, the word “term” shall apply to the Initial Term or the Renewal Term, as
applicable. Following any termination of this Service Agreement for whatever reason, each PARTY shall remain subject to and comply with the continuing obligation of confidentiality in Article 11 and the Audit and Overpayment provisions of Article 5.
Upon termination or cancellation of this Agreement all services shall terminate except as otherwise specifically provided herein and RRI or any RRI ENTITY shall have no further access to or use of any programs or materials utilized by CPS to perform
Services hereunder. In the event of a material failure of a PARTY to perform in accordance with the terms of this Service Agreement or Schedule (“Non-Performing Party”) through no fault of the other PARTY, the other PARTY
(“Complaining Party”) shall have the right to terminate this Service Agreement, if within twenty (20) days after Non-Performing Party’s receipt of written notice from the Complaining Party, the Non-Performing Party does not cure
or commence and continuously maintain the cure of the performance defects complained of in such written notice. Any such termination shall be effective on receipt of the complaining PARTY’s written termination notice to the Non-Performing Party
after the expiration of such cure period. 
  

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 ARTICLE 3 
 DESIGNATION OF REPRESENTATIVES 
  
 RRI Authorized Representatives (or their replacements as may be designated by RRI in writing to CPS from time-to-time) may authorize Services to be performed hereunder or may terminate Services. CPS hereby designates Janet Dietrich, Bernie
Broderick and David Merkel as its authorized representative (each, a “CPS Authorized Representative”) who shall be authorized to receive notice of a proposed amendment to the Services, or requests by RRI for Services to be performed as per
Schedule 9. CPS personnel performing the Services and RRI personnel shall freely communicate with one another related to CPS performance of the Services provided that any RRI personnel having a performance issue with CPS will notify the CPS
Authorized Representative who shall then be responsible for resolving any issues with the RRI Representative. 
  
 ARTICLE 4 
 CHARGES AND TERMS OF PAYMENT 
  
 CPS shall charge RRI a monthly fee for the Services provided pursuant to this Service
Agreement. CPS’ fee for Services rendered shall be an amount equal to .75% of the “net proceeds” actually received by RRI for the sale of all RRI Production during the Initial Term or any Renewal Term. If in any two
(2) consecutive-month period RRI Production should average more than 130,000 MMBtu per day, RRI may elect to decrease the marketing fee percentage to .625%. In this event, the decreased rate would remain in effect from the Date of Change (as
defined below) unless and until such time that RRI Production over a two (2) consecutive-month period decreases to an average of 130,000 MMBtu per day, or less, at which time the marketing fee percentage would return to .75%. Provided further,
if in any two (2) consecutive-month period RRI Production should average 190,000 MMBtu per day or more, RRI may elect to reduce the marketing fee percentage to .50%. In this event, the decreased fee would remain in effect from the Date of
Change unless and until such time that RRI Production over a two (2) consecutive-month period decreases to an average of less than 190,000 MMBtu per day, at which time the marketing fee percentage would return to .625% or .75% as the case may
be. The Date of Change shall be the first day of the calendar month following receipt by CPS of the written notice from RRI of it’s election to alter the marketing fee percentage. The total MMBtu per day volumes calculated for use in
ascertaining a fee change under this Article 4, shall also include gross oil sale volumes based on a conversion of one (1) barrel of oil equaling six (6) MMBtu. 
  
 The term “net proceeds” shall mean those funds received by RRI for all volumes of RRI Production purchased and sold under
RRI’s sales contracts, after deducting all actual charges and expenses incurred by RRI, including but not limited to transportation, gathering, treating, blending, quality, treating or processing fees, or similar charges, and expenses and
charges for postproduction compression fuel and line loss. For further clarification, the term “net proceeds” does not include deductions for any and all severance taxes or similar taxes levied upon RRI Production or CPS’ fee or extra
charges under this Service Agreement. CPS agrees to provide RRI with detail and supporting documentation for any extra charges pursuant to Schedule 9 as may be requested by a RRI Authorized Representative and performed by CPS during any month during
the term of this Service Agreement. 
  
 CPS will invoice RRI for the monthly fee
on or before the twenty-fifth (25th) day of each month following the month of Service. RRI shall pay such invoices by the last business day of the month or ten (10) days from the date of the invoice, whichever comes first. 

  

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 ARTICLE 5 
 AUDITS AND OVERPAYMENTS 
  
 During
the term of this Service Agreement and for a period of two (2) years following termination of this Service Agreement (for whatever cause), each PARTY shall have the right to audit the other PARTY’s books and records for verification of the
basis of any compensation paid or owed by RRI to CPS hereunder, and in the event a PARTY determines that an adjustment is needed, that PARTY shall invoice the other PARTY for any amount of overpayment, underpayment or adjustment it determines to be
owed (“Adjusted Invoice”), any such Adjusted Invoice to include reasonable supporting documentation. Except as to any portion of an Adjusted Invoice disputed in good faith, the PARTY invoiced shall provide payment to the other PARTY
within thirty (30) days of receipt of the Adjusted Invoice of the undisputed amount for any such overpayments, underpayments or adjustments. All PARTIES agree that each PARTY shall have the right to set-off against any future payments owed
under this Service Agreement any undisputed portion of an Adjusted Invoice which is not refunded within such thirty (30) day period. 
  
 ARTICLE 6 
 INDEPENDENT CONTRACTOR

  
 It is understood and agreed that CPS is an independent contractor in
the performance of each and every part of this Service Agreement and that CPS’ employees shall not be deemed to be the employees of RRI or any RRI ENTITY. RRI shall have the right to inspect the performance of the Services to ensure
satisfactory completion thereof, it being distinctly understood that RRI is in no way associated or otherwise connected with the actual performance and details of the Services, as RRI is interested in and looking only to the end result to be
accomplished. CPS is solely and individually liable for all labor and expenses in connection with rendering the Services. RRI and each RRI ENTITY authorizes CPS to act as it’s seller’s representative when performing the Services contracted
for in this Service Agreement. 
  
 ARTICLE 7 
 SERVICE AGREEMENTS WITH THIRD PARTIES 
  
 All agreements between RRI and any RRI ENTITY and third parties shall be entered into in the name of the appropriate RRI ENTITY by an authorized RRI officer or employee,
unless CPS is instructed by an RRI Authorized Representative to enter into an agreement in the name of the RRI ENTITY, by CPS, agent for the RRI ENTITY. CPS shall not be deemed to be an agent of RRI or any RRI ENTITY except to the extent CPS
enters into an agreement in the name of the RRI ENTITY pursuant to such instructions. In such cases, CPS shall be an agent only as to such limited authorized acts. Unless such authority is revoked in writing by notice as provided herein, CPS
shall have the authority to enter into individual and unrelated contacts or transactions in the name of the RRI ENTITY as its agent for the sale of RRI Production (i) for periods not in excess of 24 hours and (ii) for a value not in excess
of $100,000 per contract or transaction. 
  
 ARTICLE 8

 NO WARRANTIES OR REPRESENTATIONS WITHOUT PRIOR APPROVAL 
  
 Unless expressly authorized in this Service Agreement or by prior written authority, CPS shall have no authority to make warranties or
representations on behalf of or in the name of RRI or any RRI ENTITY and RRI or any RRI ENTITY shall have no authority to make any warranties or representations on behalf of or in the name of CPS. 
  

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 ARTICLE 9 
 TAXES 
  
 CPS shall be responsible
for payment of all taxes arising out of or associated with its remuneration earned in connection with this Service Agreement, including without limitation, CPS’ federal, state and local income tax, social security tax, unemployment insurance
tax, and any other taxes or business license fees required of any nature whatsoever. 
  
 RRI shall be responsible for payment of all taxes arising out of or associated with RRI’s Production and its business activities. In performing the Services, specifically those pursuant to the attached Schedule 3, CPS will provide
information it maintains to assist RRI in the preparation and payment of all applicable severance or similar taxes attributable to RRI Production. 
  
 ARTICLE 10 
 LIABILITY AND
INDEMNITY 
  
 CPS shall not be liable for any action taken or omitted
to be taken by it under or pursuant to this Service Agreement if done in a commercially reasonable manner so as to satisfy CPS’ obligations hereunder and reasonably believed by CPS to be within the discretion or power conferred by this Service
Agreement, unless such action is inconsistent with RRI’s prior written direction. RRI shall not settle or mitigate any claim(s) without the express written consent of CPS and shall indemnify and hold harmless CPS from and against any and all
third party claims, liens, demands, causes of actions or expenses arising out of, or incidental to, the operations under this Service Agreement, including, without limitation, those arising out of the negligence of CPS or for which CPS would
otherwise be strictly liable, except to the extent the same arises out of or is in connection with CPS’ willful misconduct or gross negligence. If RRI or CPS receives a claim or demand related to this Service Agreement, RRI or CPS shall notify
the respective other PARTY promptly in writing and give such PARTY all available information and assistance to evaluate, defend and settle such claim. RRI shall defend each claim asserted and suit brought involving any matter for which RRI has an
obligation to indemnify CPS hereunder, and RRI shall pay all costs, expenses and attorney fees incidental thereto and all judgments resulting therefrom. If it is determined that RRI is not obligated to indemnify CPS, CPS will fully reimburse RRI for
all costs and expenses, including attorneys fees and judgments. CPS shall have the right, at its option and sole expense, to participate in the defense of each such claim or suit without relieving RRI of any obligations hereunder. 
  
 ANY STATUTORY LIMITATIONS NOW OR HEREAFTER IN EFFECT WHICH AFFECT THE VALIDITY OR
ENFORCEABILITY OF THE INDEMNIFICATION PROVISIONS IN THIS SERVICE AGREEMENT ARE MADE A PART HEREOF IN THE RESPECTIVE JURISDICTION WHERE THE STATUTE APPLIES AND ANY SUCH STATUTORY LIMITATIONS SHALL OPERATE TO AMEND THE INDEMNITY PROVISIONS HEREOF TO
THE MINIMUM EXTENT NECESSARY TO BRING SUCH PROVISIONS INTO CONFORMITY WITH THE REQUIREMENTS OF THE STATUTE. SO MODIFIED, THE INDEMNITY PROVISIONS OF THIS CONTRACT SHALL CONTINUE IN FULL FORCE AND EFFECT. 
  
 ARTICLE 11 
 CONFIDENTIALITY 
  
 Except to the extent (i) required (through deposition, interrogatory, request for production, subpoena, civil investigative demand or similar process) by a court or regulatory order, (ii) as required by the PARTY’s financial
advisor, investors, or bankers who need to know such information, or (iii) expressly agreed to in 
  

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 writing by RRI and CPS, CPS, RRI and each RRI ENTITY and their representatives agree to keep confidential all
information, including pricing and any data collected hereunder. Such confidentiality obligation shall continue during the term of this Agreement and for a period of two (2) years following the expiration or termination of this Agreement. In
the event that CPS or RRI is required, in the manner specified above, to disclose any confidential information that PARTY shall provide prompt oral notice followed by written notice to the other PARTIES so that each PARTY may timely seek a
protective order or other appropriate remedy. In the event that such protective order or other remedy is not obtained, CPS and RRI agree (i) to furnish such information and (ii) to exercise commercially reasonable efforts to obtain
assurance that confidential treatment will be accorded such confidential information. 
  
 Notwithstanding the foregoing, confidential information shall not include: (i) information which subsequently becomes, after disclosure, part of the public domain through no act or omission of CPS or RRI; (ii) information which
was, prior to disclosure, already in CPS’ or RRI’s possession and was not acquired, directly or indirectly, from a third party who, to CPS’ or RRI’s knowledge, is under an agreement or fiduciary obligation of confidentiality to
RRI or CPS; and (iii) information which is subsequent to disclosure, lawfully and independently obtained by CPS or RRI, to its knowledge, from a third party who is lawfully in possession of such information and who is not under an agreement or
fiduciary obligation of confidentiality to RRI or CPS with respect to such information, all to CPS’s or RRI’s knowledge. 
  
 ARTICLE 12 
 MISCELLANEOUS

  
 Compliance with Laws, Permits, and License Requirements. Each
PARTY shall, at its sole cost and expense, comply with all federal, state and local laws applicable to its performance hereunder and shall procure all applicable licenses and permits necessary for the fulfillment of its obligations under this
Service Agreement. 
  
 Assignment. No PARTY may assign any rights or
obligations under this Service Agreement, without the prior written consent of the other PARTY who shall have the sole discretion of denying such assignment(s) for any reason, provided that an assignment may be made by any PARTY to an affiliate
without such prior approval. This Service Agreement shall be binding upon and inure to the benefit of the PARTIES hereto and their respective permitted successors and assigns. In the event that any PARTY shall sell all or substantially all of its
assets or transfer all or a majority of its ownership to a non-affiliated third party (or otherwise relinquish voting control), it shall promptly provide notice to the other PARTIES and the other PARTIES shall have the option to terminate this
Service Agreement on sixty (60) days written notice to such PARTY, provided notice is given within ninety (90) days from the date the notice is received of such transfer. If such notice is not given within such ninety (90) days, the
other PARTIES forfeit their right to terminate. 
  
 Non-Waiver. A waiver by
RRI or CPS of any breach of any covenant, condition or provision (whether expressed, implied or otherwise) herein contained shall not be taken to be a waiver of any subsequent breach of the same or any other covenant, condition or provision.

  
 Merger of Service Agreement. This Service Agreement is an integrated
Service Agreement and contains the entire agreement regarding matters herein between the PARTIES. No representations, warranties or promises have been made or relied upon by any PARTY hereto other than as set forth herein. This Service Agreement
supersedes and controls any and all prior communications between the PARTIES or their representatives relative to matters contained herein. Any changes, modifications, or additions to this Service Agreement or any Exhibit or Schedule attached
thereto shall be made by mutual consent in writing and signed by all PARTIES. 
  

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 Notices. Except as otherwise provided herein, all notices, requests, consents or demands (collectively
“notices”) hereunder, other than day-to-day routine communications, shall be in writing and shall be delivered by U.S. mail, certified, return receipt requested, or by personal delivery, or by overnight carrier, or by facsimile to the
following addresses: 
  

					
	 All notices shall be delivered to:
	 	 
			
	 As to CPS:
	 	 As to RRI:
	 	 
	 Calpine Producer Services, L.P.
	 	 Rosetta Resources Inc.
	 	 
	 Attn: Contract Administration
	 	 Attn: Marketing Analyst
	 	 
	 717 Texas Ave Suite 1000
	 	 717 Texas Ave., Suite 2800
	 	 
	 Houston, Texas 77002
	 	 Houston, Texas 77002
	 	 
	 Fax: (713) 830-8751
	 	 Fax: (713) 335-4197
	 	 
		
	 With copies of notices relating to accounting delivered to:
	 	 
			
	 As to CPS:
	 	 As to RRI:
	 	 
	 Calpine Producer Services, L.P.
	 	 Rosetta Resources Inc.
	 	 
	 Attn: Accounting
	 	 Attn: Marketing Analyst
	 	 
	 717 Texas Ave Suite 1000
	 	 717 Texas Ave., Suite 2800
	 	 
	 Houston, Texas 77002
	 	 Houston, Texas 77002
	 	 
	 Fax: (713) 830-8749
	 	 Fax: (713) 335-4186
	 	 
		
	 With copies of notices relating to confirmations delivered to:
	 	 
			
	 As to CPS:
	 	 As to RRI:
	 	 
	 Calpine Producer Services, L.P.
	 	 Rosetta Resources Inc.
	 	 
	 Attn: Deal Clearing
	 	 Attn: Marketing Analyst
	 	 
	 717 Texas Ave Suite 1000
	 	 717 Texas Ave., Suite 2800
	 	 
	 Houston, Texas 77002
	 	 Houston, Texas 77002
	 	 
	 Fax: (713) 830-8868
	 	 Fax: (713) 335-4197
	 	 

  
 Any PARTY may change its address by
written notice to the other PARTY. Unless otherwise provided, all written notices called for in this Service Agreement shall be effective upon receipt. Routine communications shall be considered as delivered when mailed. A copy of all communications
of a PARTY sent by facsimile (other than routine communications) shall be sent by U.S. mail, certified, return receipt requested, or by personal delivery or by overnight carrier to the other PARTY; provided that failure to so confirm such facsimile
communication shall not invalidate the communication given by facsimile assuming delivery is otherwise verified. 
  
 No Third Party Benefits. Nothing in this Service Agreement shall be construed to create a duty to, any standard of care with reference to, or any liability to any
person not a PARTY to this Service Agreement. 
  
 Limitation of Liability.
In no event will any PARTY be liable for any lost or prospective profits or any other incidental, consequential, punitive, exemplary or indirect losses or damages in tort, breach of contract or otherwise arising from or relating to this Service
Agreement. 
  
 Notwithstanding anything in this Service Agreement to the contrary,
CPS’s maximum exposure under any claim of damages, liability or indemnification under contract, tort, warranty, strict liability or any other legal theory shall be limited to the fee for services actually received by CPS under this Service
Agreement as of the date of such claim. 
  

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 Counterparts. This Service Agreement may be executed in multiple counterparts, each of which shall be deemed an
original, and all of which together shall constitute one and the same instrument. Any executed counterpart transmitted by facsimile or similar transmission by any PARTY shall be deemed an original and shall be binding upon such PARTY. 
  
 Governing Law. This Service Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas, not including, however, any of its conflicts of law rules that would make applicable the laws of any other jurisdiction. 
  
 Dispute Resolution. Each PARTY shall designate in writing to the other PARTY a representative who shall be authorized to resolve any
dispute arising under this Agreement in an equitable manner and, unless otherwise expressly provided herein, to exercise the authority of such PARTY to make decisions by mutual agreement. 
  
 If such designated representatives are unable to resolve a dispute under this Agreement, such dispute shall be referred by each PARTY’s
representatives, respectively, to a senior officer designated by CPS and a senior officer designated by RRI for resolution upon five (5) days written notice from either PARTY. Any dispute that may arise in connection with this Agreement which
can not be resolved within thirty (30) days following submission to senior officers shall be settled by arbitration in accordance with this section of the Service Agreement as further specified below. 
  
 After the expiration of the thirty (30) day period described in this section, either
PARTY may submit such dispute to binding arbitration pursuant to the rules of the American Arbitration Association (“AAA”). The process shall be initiated by either PARTY delivering to the other a written notice requesting arbitration,
with the other PARTY to respond to such request within ten (10) business days. The PARTIES shall select a single arbitrator with knowledge of and over five (5) years of professional experience in connection with similar transactions and
who has not previously been employed or retained by either PARTY and who does not have a direct or indirect interest in either PARTY or the subject matter of the arbitration. Such arbitrator shall either be mutually agreed by the PARTIES within
thirty (30) days after written notice from either PARTY requesting arbitration, or failing agreement, shall be selected under the expedited rules of the AAA. Such arbitration shall be held in alternating locations of the home offices of the
PARTIES, commencing with CES’ home office, or in any other mutually agreed upon location. The rules of the AAA shall apply to the extent not inconsistent with the rules herein specified. The arbitration shall be conducted according to the
following procedures: (a) the arbitration hearing shall commence no later than thirty (30) days after the selection of the arbitrator, (b) not later than seven (7) days prior to the hearing date set by the arbitrator each PARTY
shall submit a brief detailing its factual and legal position and a final offer for settlement of the dispute including a dollar amount, if appropriate, (c) the hearing shall be conducted on a confidential basis without continuance or
adjournment, (d) the arbitrator shall be limited to selecting only one of the two offers or, if applicable, one of the dollar amounts submitted by the PARTIES, (e) each PARTY shall divide equally the cost of the arbitrator and the hearing
and each PARTY shall be responsible for its own expenses and those of its counsel and representatives, and (f) evidence concerning the financial position of the PARTIES, any offer made or the details of any negotiation prior to arbitration and
the cost to the PARTIES of their representatives and counsel shall not be permissible. The award of the arbitrator shall be made no later than thirty (30) days after the date of closing of the hearing, or if oral hearings have been waived,
after the date of transmitting the final statements and proof to the arbitrator; provided, however, that in no event shall any award be made later than one hundred and twenty (120) days after the date of the original demand for arbitration
hereunder. The arbitrator shall be required to render a reasoned decision accompanying any award. The decision of the arbitrator shall be final and binding on the PARTIES, enforceable in any state court, and shall not be appealed by either PARTY.

  

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 Notwithstanding anything to the contrary contained herein, and regardless of any procedures or rules of the AAA, it is
expressly agreed that the following shall apply and control over any other provision in this section of the Service Agreement: 
  

	 	i.	The arbitrator shall have no authority to award punitive damages or attorneys’ fees. 

  

	 	ii.	The PARTIES may, by written agreement signed by both PARTIES, alter any time deadline, location(s) for meeting(s), or procedure outlined in this section of the Service Agreement or
in the AAA rules. 

  

	 	iii.	Time is of the essence for purposes of the provisions of this section of the Service Agreement. 

  

	 	iv.	Either PARTY may seek a restraining order, temporary injunction, or other provisional judicial relief if the PARTY in its sole judgment believes that such action is necessary to
avoid irreparable injury or to preserve the status quo. The PARTIES will continue to participate in good faith in the procedures despite any request for provisional relief. 

  
 IN WITNESS WHEREOF, the PARTIES have executed this Service Agreement as of the date first above written. 
  

							
	RRI:	 	CPS:
		
	ROSETTA RESOURCES INC.	 	CALPINE PRODUCER SERVICES, L.P.
	 	 	 	 	 by its General Partner CPN Energy Services,
 G.P., Inc.

				
	By:	 	  

	 	By:	 	  

	 	 	 	 	 	 	Janet Dietrich
	 	 	 	 	 	 	Vice President
			
	ROSETTA RESOURCES OFFSHORE, LLC	 	 	 	 
				
	By:	 	  

	 	 	 	 
			
	ROSETTA RESOURCES CALIFORNIA, LLC	 	 	 	 
				
	By:	 	  

	 	 	 	 
			
	ROSETTA RESOURCES TEXAS LP	 	 	 	 
				
	By:	 	  

	 	 	 	 
			
	ROSETTA RESOURCES ROCKIES, LLC	 	 	 	 
				
	By:	 	  

	 	 	 	 

  

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 “A” TO 
 SERVICE AGREEMENT DATED BETWEEN 
 RRI & CPS 
  
 RRI Production shall mean: 
  
 All of RRI’s owned or controlled production of crude oil, condensate, natural gas or
natural gas liquids, as applicable, located in the continental United States and the Shelf of the Gulf of Mexico as may be augmented or modified from time to time. 
  

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 SCHEDULE 1 
  

SERVICES RELATED TO RRI PRODUCTION 
  

	1)	CPS shall receive volumetric data available for RRI Production volumes from RRI production department, using RRI’s Production Access system (“PAS”) except with
respect to new wells having no production history, and assist RRI’s production department in assessment of RRI Production volumes, by comparison to historical sales volumes and regular communication as needed for accurate nomination of RRI
Production. 

  

	2)	CPS shall assist RRI with all new well connections for RRI Production and bringing shut-in RRI Production back on-line. RRI will provide information to CPS in this regard by means
of a written report. 

  

	3)	CPS shall sell, trade and/or market RRI Production on a spot or term basis in accordance with the directions of RRI Authorized Representatives. CPS shall provide services related to
the sale of such RRI production including: nominating, scheduling, balancing and other customary marketing services. The terms and conditions of the sales agreements for RRI Production shall be negotiated by CPS utilizing commercially reasonable
efforts to obtain the most favorable terms beneficial to RRI, and, for transactions of greater than one calendar month, shall be subject to RRI’s prior written approval. 

  

	4)	CPS will assist RRI in reducing post-production midstream charges and expenses such as gathering, treating, dehydration, blending, processing, compression and transportation
associated with any sale of RRI Production so as to maximize the value of RRI Production at the wellhead or the central delivery point(s) for that area. CPS shall seek out other opportunities to increase RRI Production values through competitive
pricing and enhancements such as gas processing upgrades. Except as may be previously approved in writing by RRI, the time periods for the duration of these types of post-production midstream agreements shall not exceed three (3) months or
extend such obligation past the termination date of this agreement. 

  

	5)	The sales agreements for RRI Production and all post-production midstream agreements for RRI Production shall be executed by RRI on a form that has been previously approved by RRI..
All executed sales agreements for RRI Production shall include a provision requiring that all payments to be made thereunder shall be made directly to RRI, 717 Texas Avenue, Suite 2800 Houston, Texas 77002, or an account designated by RRI.

  

	6)	As to any and all potential buyers to whom CPS markets RRI Production, CPS shall make commercially reasonable investigation of their creditworthiness, and once CPS has performed and
documented such investigation, CPS shall present such information to RRI. At such time as the credit information is presented to RRI, RRI shall in its sole judgment make a determination as to a credit amount to be allowed related to the specific
counterparty. RRI shall notify CPS of such credit amount or security requirement for the specific counterparty and transaction. CPS shall have no authority whatsoever in binding or representing RRI until such credit approval and or security has been
received. After such approval or security has been received by RRI from CPS or the counterparty, CPS shall bear no further responsibility or liability hereunder should any such buyer become insolvent or fail to make payment for such RRI Production
sold by CPS on behalf of RRI, as long as CPS has not exceeded the pre-established credit limit. Such creditworthiness documentation is to be retained by the PARTIES and periodically updated as determined by the PARTIES based on its own good business
practices as long as CPS continues to sell RRI Production to such buyer(s). 

  

 11 of 12 

	7)	The ownership, operation and costs associated with RRI-owned or controlled facilities from and through which RRI Production is delivered shall remain with RRI, and CPS shall have no
authority or liability with respect to such facilities; provided however, that the buyers arranged by CPS for the RRI Production will be responsible for paying for all fees and costs beyond the delivery point for the RRI Production. Title to all RRI
Production shall remain with RRI through the respective delivery points for RRI Production to the respective buyers under all executed sales agreements for RRI Production. 

  

 12 of 12 

 SCHEDULE 2 
  
 SERVICES RELATED TO INFORMATION ACCESS 
  

	1.	CPS shall make available to appropriate RRI employees, secure access to CPS’ online Producer Control Center (“PCC”), including all updates and improvements to
better serve RRI’s needs (e.g., tabs for scanned documents, reformatted reports, etc.); provided however, that RRI will be responsible for providing accurate information to CPS if required in relation to such reports (e.g., PAS to use same
field and well identification as Excalibur Well Master). Nothing herein shall be construed to grant RRI access to CPS’ EMS program. 

  

	2.	CPS shall assist in the training of these RRI employees and their use of PCC and CPS’ other systems, programs and reports so RRI receives the expected Services. Similarly RRI
will familiarize CPS employees with RRI’s systems and programs. 

  

	3.	CPS shall provide necessary and pertinent information from CPS’ systems, programs and other reports to facilitate the recording and booking of revenues by RRI, including
providing electronic links to RRI’s Excalibur accounting system 

 SCHEDULE 3 
  
 SERVICES RELATED TO TAXES 
  

	1)	CPS will provide information it maintains to assist RRI in the preparation and payment of all applicable severance or similar taxes attributable to RRI Production. CPS shall timely
scan into PCC all detail and documentation required in order to accomplish this result. In the event of any problems in this regard, CPS shall timely furnish by other appropriate and effective means the required information to RRI.

 SCHEDULE 4 
  
 SERVICES RELATED TO CONTRACT ADMINISTRATION 
  

	1)	CPS shall assist RRI in preparing and negotiating for RRI’s approval and execution, and administering, all sales agreements for RRI Production and all post-production midstream
agreements for the gathering, transportation, processing, dehydrating, treating, blending, and/or compressing of RRI Production. 

  

	2)	CPS shall perform all required nominations and flow schedules based on historical daily flows, well maintenance information from RRI and pipeline capacity constraints, if any, with
the goal of avoiding imbalance penalties as much as possible. 

  

	3)	RRI shall be liable for all pipeline imbalances existing that relate to RRI Production. 

  

	4)	CPS shall monitor and manage pipeline imbalances and report on the status of pipeline imbalances at least quarterly or more frequently as requested by RRI. 

 

	5)	CPS shall account for the sale of all hydrocarbons associated with all RRI Production and shall actualize volumes in accordance with pipeline statements. 

 

	6)	CPS shall assist RRI with the review and resolution of post-production midstream agreement rate discrepancies. 

 SCHEDULE 5 
  
 SERVICES RELATED TO ROYALTY ISSUES 
  

	1)	For all sales of RRI Production, CPS shall keep proper records reflecting price paid, market price in the area at the time and place of sale, and bids from third party sellers and
purchasers to substantiate that the price paid was equivalent to fair market value when taking into consideration all appropriate adjustments. CPS shall print the appropriate bids, including commodity price and basis differential, that are posted on
Intercontinental Exchange at the time of the sale and shall keep all records for a period of five (5) years from the beginning of the month after the month of sale, or for so long thereafter as a dispute, investigation, court action, or
regulatory action commenced within such five (5) years may exist. CPS shall not be requested to dispense royalty payments to RRI royalty owners or working interest owners but does agree to provide accurate and timely detail, documentation and
other information to assist RRI’s proper calculation and payment of all royalties owed in connection with RRI Production. 

 SCHEDULE 6 
  
 SERVICES RELATED TO PAYMENT FROM PURCHASERS OF RRI PRODUCTION 
  
 CPS will undertake the following remittance duties:

  

	1)	CPS shall prepare and send invoices to all buyers of RRI Production. 

  

	2)	CPS shall work with RRI to reconcile accounts receivable for all RRI Production. 

  

	3)	CPS will aide in managing RRI’s collateral account. 

  

	4)	CPS shall work with RRI to help ensure that the buyers pay all post-production midstream charges and expenses after the delivery point for each sale. If the delivery point is not at
the wellhead, but instead is at the central delivery point, CPS will provide the documentation establishing that the sales price net of the applicable post-production midstream charges and expenses from the wellhead to such central delivery point is
greater than or equal to the sales price at the wellhead. 

 SCHEDULE 7 
  
 SERVICES RELATED TO RRI WORKING INTEREST OWNERS 
  

	1)	CPS shall provide available daily sales volume estimates to RRI working interest owners taking in kind, when requested to do so by RRI land department, provided CPS has been
furnished with the proper working interest percentages and addresses by RRI land department. 

 SCHEDULE 8 
  
 SERVICES RELATED TO PRICING AND CREDIT ISSUES 
  

	1)	CPS will make commercially reasonable efforts to stay aware of credit issues involving RRI markets, and will advise RRI if and when the credit of their markets is under scrutiny.
CPS will ensure that RRI only sells to markets approved by RRI based on its investigation and analysis pursuant to Schedule 3. 

  

	2)	CPS shall assist RRI with market pricing, basis, and other price adjustments for the purpose of reserve evaluation or the exploration or acquisition of new reserves. CPS shall
provide information on all post-production midstream charges and expenses, including, without limitation, gathering, dehydration, blending, treating, processing, compression, and transportation costs in new areas. 

  

	3)	CPS shall assist RRI with the assessment of market options and maintain open communication with RRI in an attempt to exchange timely information so that RRI can seek to receive the
best price available at the time all RRI Production is sold, keeping in mind the volume, location and financial stability of RRI’s markets. 

  

	4)	CPS shall provide RRI market back up and sales information to assist with pricing claims adjudication brought by working interest or royalty owners. 

  

	5)	CPS shall assist RRI with physical gas sales to seek to maximize profits from RRI hedging activity. 

 SCHEDULE 9 
  

HOURLY RATE FOR ADDITIONAL SERVICES 
  
 $140.00 Per Hour.Agreement of Sublease with Calpine Central, L.P.

 Exhibit 10.6 
  
 AGREEMENT OF SUBLEASE 
  
 This AGREEMENT OF SUBLEASE (the “Sublease”) is made this 6th day of July, 2005, by and between CALPINE CENTRAL, L. P., a Delaware limited partnership (the “Sublandlord”) and CALPINE NATURAL
GAS L.P. a Delaware limited partnership (the “Subtenant”). 
  
 WITNESSETH: 
  
 WHEREAS,
Sublandlord, as tenant, entered into that certain Lease, dated July 20, 2001, (the “Lease”), with 717 TEXAS LIMITED PARTNERSHIP, a Delaware limited partnership (the “Prime Landlord”), as amended by that
certain First Amendment to Lease, dated March 31, 2002 (the “First Amendment”), that Second Amendment to Lease, dated March 31, 2003 (the “Second Amendment”), that Third Amendment dated March 30, 2005 (the
“Third Amendment”), and that Fourth Amendment to Lease dated March 30, 2005 (the “Fourth Amendment”), for certain premises (the “Prime Leased Premises”) described thereunder in the building known as 717 Texas
Avenue and the Calpine Center, which is situated on Block 59, South Side Buffalo Bayou, in Houston, Harris County, Texas (the “Building”). Hereinafter, the Lease, as amended, may be referred to as the “Prime Lease.”
A true, complete, and correct copy of the Prime Lease, as amended, is attached hereto as Exhibit “A” and is incorporated herein by this reference. Capitalized terms used in this Sublease that are not
specifically defined herein shall have the same meaning as they are given in the Prime Lease. 
  
 WHEREAS, Sublandlord desires to sublease to Subtenant and Subtenant desires to sublease from Sublandlord the entire 27th and 28th floors of the Building, consisting of approximately 54,816
rentable square feet (“RSF”) of the Prime Leased Premises located, as more particularly described on the space plan attached hereto as Exhibit “B” (the “Subleased Premises”)
and incorporated herein by this reference, upon the terms and conditions stated below; 
  
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, it is hereby mutually covenanted and agreed as follows: 
  

	1.	Subleased Premises and Term. Sublandlord hereby subleases the Subleased Premises to Subtenant, and Subtenant hereby leases and takes the Subleased Premises from the
Sublandlord, upon and subject to the terms, covenants, and conditions herein set forth, for a term (the “Term”) commencing on July 7, 2005 (the “Commencement Date”) and continuing, unless terminated earlier in
accordance with the terms of this Sublease, until December 14, 2013 (the “Expiration Date”); 

  

	2.	Rent, Operating Expenses and Allowances. 

  

	 	(a)	Base Rental. Subtenant hereby covenants and agrees to pay to Sublandlord a base annual net rental rate (the “Base Rental”), which shall be
payable in monthly installments in advance on the first day of each month during the Term hereof, beginning on July 7, 2005 (the “Rent Start Date”), an Annual “Net” Rental Rate of $18/RSF initially, which rate shall increase by
five percent (5%) (not compounded) each year effective on January 1, 2006 and each January 1 during 

 the Term hereof. Partial month rentals will be prorated. Below is a schedule setting forth the Rental
Rate throughout the Term: 
  

				
	 Dates

	  	 Annual Base
 Rental Rates

	 Execution date through December 31, 2005
	  	$	18.00/RSF
	 January 1, 2006 through December 31, 2006
	  	$	18.90/RSF
	 January 1, 2007 through December 31, 2007
	  	$	19.80/RSF
	 January 1, 2008 through December 31,2008
	  	$	20.70/RSF
	 January 1, 2009 through December 31, 2009
	  	$	21.60/RSF
	 January 1, 2010 through December 31, 2010
	  	$	22.50/RSF
	 January 1, 2011 through December 31, 2011
	  	$	23.40/RSF
	 January 1, 2012 through December 31, 2012
	  	$	24.30/RSF
	 January 1, 2013 through December 31, 2013
	  	$	25.20/RSF

  
 Additional
Rent. In addition to the Base Rental, from and after the applicable Rent Start Date and for each calendar year (or portion thereof) thereafter during the Term of this Lease, Subtenant shall pay as additional rent (the “Additional
Rental”) Subtenant’s Proportionate Share (as defined in the Prime Lease) of Operating Expenses (as defined in the Prime Lease) for that year. On or about the beginning of each calendar year during the term of this Lease,
Sublandlord shall deliver Sublandlord’s good faith estimate of the Additional Rental for that year (the “Estimated Additional Rental”) to Subtenant; provided, however, that the Additional Rental for the
remainder of this initial year of the Term (subject to adjustment as provided in this paragraph below) shall be $3,081.74 per month. Partial month rentals will be prorated. The Estimated Additional Rental shall be based on the estimate that
Sublandlord receives from Prime Landlord under the Prime Lease. The Estimated Additional Rental shall be paid in equal installments in advance on the first day of each month during the term hereof. If Sublandlord does not deliver an estimate to
Subtenant for any year by January 1 of that year (except for the first year hereof, which will be provided as set forth above), Subtenant shall continue to pay Estimated Additional Rental based on the prior year’s estimate until the estimate
for the current year is received. From time to time during any calendar year, and upon not less than twenty (20) days advance written notice to Subtenant, Sublandlord may revise its estimate of the Additional Rental for that year based on a
corresponding revision delivered by the Prime Landlord to Sublandlord pursuant to Section 2.02 of the Prime Lease, and the monthly installments of Estimated Additional Rental shall be appropriately adjusted for the remainder of that year in
accordance with the revised estimate so that, by the end of the year, the total payments of Estimated Additional Rental paid by Subtenant shall equal the amount of the revised estimate. 
  

	 	(b)	Management Fee Contribution. The three percent (3%) Management Fee Contribution shall be assessed and paid by Subtenant to Sublandlord based on a $26.40/RSF Base Rent, and
actual Additional Rent and as otherwise set forth in Section 2.03 of the Prime Lease. 

	 	(c)	In lieu of the method set forth in Section 2.04(a) of the Prime Lease, Rent shall be payable by wire transfer to Sublandlord at 

  
 Calpine Corporation 
 Union Bank of California 
 Routing number
122000496 
 Account number 3160010990 
  
 or to such other account as Sublandlord may hereafter designate in writing, in lawful money of the United States, without notice, demand, set-off or
deduction whatsoever, at the times and in the manner herein specified. 
  

	3.	Incorporation of and Subordination to Prime Lease. 

  

	 	(a)	Except as otherwise provided herein to the contrary, all of the terms of the Prime Lease as they pertain to the Subleased Premises are hereby incorporated into and made a part of
this Sublease as if stated in full herein, and Subtenant accepts this Sublease subject to, and hereby during the Term of this Sublease assumes all of, the terms, covenants, conditions and agreements contained in the Prime Lease with respect to the
Subleased Premises, to be performed by Sublandlord thereunder, except to the extent a provisions is deemed inapplicable pursuant to Exhibit C, which is hereby incorporated into and made a part hereof. The parties hereto agree that, except as
otherwise provided in Exhibit C, subject to the provisions of this Sublease, wherever the words Premises or words of similar import appear in the Prime Lease, the same shall be deemed to mean the Subleased Premises and wherever the words
“Landlord” and “Tenant” appear in the Prime Lease, the words shall be deemed to refer to Sublandlord and Subtenant respectively, so that, subject to the provisions of this Sublease and with respect only to the Subleased Premises,
Sublandlord shall have the rights and powers of the Prime Landlord under the Prime Lease (as between Sublandlord and Subtenant only), and Subtenant shall have and does hereby agree to be bound by and accepts all the rights, powers, duties and
obligations of the Sublandlord as “Tenant” under the Prime Lease; provided, however, that notwithstanding the foregoing, Sublandlord shall have no obligation to perform or furnish any of the work, services, repairs or maintenance
undertaken to be made by Prime Landlord under the Prime Lease, or any other term, covenant or condition required to be performed by Prime Landlord under the Prime Lease (including, without limitation, Sections 3.01, 3.02, 3.03, 3.04, 3.05 and
4.04(b) of the Prime Lease). Subtenant covenants and agrees that it shall do nothing that shall have the effect of creating a breach of any of the terms, covenants and conditions of the Prime Lease. Sublandlord covenants and agrees that it shall do
nothing that shall have the effect of creating a breach of any of the terms, covenants and conditions of the Prime Lease. In the event that Prime Landlord shall fail or refuse to comply with any of the respective provisions of the Prime Lease
affecting Subtenant, Sublandlord shall, upon the written request of Subtenant, give Prime Landlord notice of such failure. Thereafter, Sublandlord shall reasonably cooperate with Subtenant in attempting to cause Prime Landlord to comply with such
provisions 

 of the Prime Lease (including, without limitation, with respect to the provisions relating to building
access, parking and other amenities to be provided to the Subleased Premises), including exercising all of Sublandlord’s rights under the Prime Lease and under applicable law, at Subtenant’s cost and expense, but Sublandlord shall have no
further obligation or liability to Subtenant in connection therewith. Except to the extent caused by Sublandlord’s default hereunder, or under the Prime Lease, if Sublandlord, at the request of Subtenant, makes any expenditures or incurs any
obligation for the payment of money in connection with such cooperation, such reasonable sums paid or obligations incurred shall be deemed to be Rent hereunder and shall be paid by Subtenant to Sublandlord within twenty (20) days of a demand
therefor. Notwithstanding the foregoing, Subtenant understands and agrees that there is no privity between Prime Landlord and Subtenant, Subtenant has no rights against Prime Landlord, and Prime Landlord has no obligations to Subtenant. 

 

	 	(b)	This Sublease is and shall be subject to and subordinate in all respects to the Prime Lease and to the matters to which the Prime Lease is or shall be subject or subordinate, and
that in the event of a termination of the Prime Lease or reentry or dispossession of the Sublandlord by the Prime Landlord under the Prime Lease, this sublease shall be deemed automatically terminated unless the Prime Landlord elects, at its option,
to take over all of the right, title and interest of the Sublandlord under this Sublease in which event Subtenant shall, at the option of the Prime Landlord, attorn to such Prime Landlord pursuant to the then executory provisions of the Sublease,
and as more specifically set forth in the Prime Lease. Should there be any conflict between the terms of this Sublease as specifically set forth herein and the terms of the Prime Lease, the terms of this Sublease shall control as between Sublandlord
and Subtenant. 

  

	 	(c)	To the extent that the Prime Lease requires the Tenant thereunder (i.e., Sublandlord) to obtain any approvals or consents by or similar communications with the Prime Landlord,
Subtenant acknowledges that Subtenant is subject to such approvals, consents and communications to the same extent as Sublandlord. 

  

	 	(d)	The parties agree that certain provisions of the Prime Lease shall not apply, or shall only apply in the manner set forth on Exhibit C hereto. 

  

	4.	Use. Subtenant shall use the Subleased Premises only for executive office purposes, in accordance with the Prime Lease, and for no other purpose whatsoever.

  

	5.	Condition of Premises. Subtenant agrees to accept possession of the Subleased Premises in its “as is” “where is” condition. Subtenant acknowledges that no
representations, express or implied, whatsoever, including, without limitation, any representation or warranty as to the suitability of the Subleased Premises for Subtenant’s intended use or any representation or warranty made by Prime Landlord
under the Prime Lease, notwithstanding the incorporation of the terms of the Prime Lease, have been made to Subtenant with respect to the condition of the Subleased Premises and that in entering into this Sublease, Subtenant has relied exclusively
upon its own examination of the 

 Subleased Premises. Subtenant specifically acknowledges and agrees that, notwithstanding the
incorporation of the terms of the Prime Lease, (i) Sublandlord shall have no obligation whatsoever to make or pay the cost of any alterations, improvements or repairs to the Subleased Premises, including, without limitation, any improvement or
repair required to comply with any law, regulation, building code or ordinance (including the Americans with Disabilities Act of 1990, as may be amended), and (ii) Sublandlord shall have no obligation to perform any repairs or any other obligation
of Prime Landlord required to be performed by Prime Landlord under the terms of the Prime Lease. Subtenant expressly waives all rights under any law to make repairs at the expense of Sublandlord. 
  

	6.	Build Out. Subtenant shall comply with the Prime Lease with respect to any alterations, improvements or repairs to the Subleased Premises and in addition shall obtain the
prior written approval of Sublandlord as well as the Prime Landlord. With respect to any build out Subtenant shall obtain the prior written approval of Sublandlord as well as the Prime Landlord of such build out, the plans of such build out and the
contractor(s) performing any such build out and shall obtain any and all necessary permits and/or inspections for the build out prior to construction and prior to occupancy following completion of the build out. 

  

	7.	Default and Remedies. The Parties specifically affirm that the Event of Default and the remedies set forth in Article VIII of the Prime Lease (except to the extent those
provisions are excepted herein or in Exhibit C) are incorporated herein, in addition to any and all other rights and remedies afforded hereunder or by law or equity. 

  

	8.	Renewal Rights. Sublandlord hereby assigns any renewal rights under the Prime Lease relative to the Sublease Premises to Subtenant, to the extent such rights may be assigned,
and subject to the limitations in the Prime Lease on such renewal rights. Any terms pursuant to which Subtenant renews or enters into a new lease on the Subleased Premises with Prime Landlord shall be pursuant to a separate agreement between Prime
Landlord and Subtenant under which Sublandlord shall have no privity or obligation. 

  

	9.	Insurance. 

  

	 	(a)	Subtenant shall provide and maintain during the Term, with insurance companies acceptable to each Sublandlord and Prime Landlord, all insurance required by Sections 7.01 and 7.02 of
the Prime Lease with respect to the Subleased Premises, naming Sublandlord and Prime Landlord as additional insureds with waivers of subrogation in favor of the Sublandlord and Prime Landlord. Subtenant shall provide Sublandlord and Prime Landlord a
certificate of insurance evidencing the coverage required by this Article and Sections 7.01 and 7.02 of the Prime Lease contemporaneously upon execution thereof. 

	 	(b)	Notwithstanding the provisons in Article VII of the Prime Lease, Sublandlord shall not be required to provide Subtenant copies of its insurance policies. 

 

	 	(c)	Notwithstanding the provisions of Sections 7.01 and 7.02 of the Prime Lease, all insurance policies required to be maintained by Subtenant shall provide that they will not be
cancelable, nor shall the coverage thereunder be reduced, without at least thirty (30) days advance written notice to Sublandlord. 

  

	10.	Assignment. Notwithstanding any provisions set forth herein or in the Prime Lease, Subtenant shall not be permitted to sublease all or any portion of the Subleased Premises,
or to assign this Sublease or any rights or obligations hereunder. 

  

	11.	Sublandlord’s Consent to Certain Acts. Subtenant agrees that in any case where the provisions of the Prime Lease or this Sublease require the consent or approval of
Prime Landlord and/or Sublandlord prior to the taking of any action, it shall be a condition precedent to the taking of such action that the prior consent or approval of Prime Landlord or Sublandlord, as the case may be, shall have been obtained (in
accordance with the terms of the Prime Lease or this Sublease, as applicable). Sublandlord agrees that it shall cooperate with Subtenant in good faith with respect to obtaining the consent or approval of Prime Landlord at Subtenant’s expense
when the same is required under the terms of the Prime Lease, provided that such cooperation shall in no event be deemed to include any obligation to initiate or otherwise participate in any suit, claim or any other action against Prime Landlord.
Except to the extent caused by Sublandlord’s default hereunder, or under the Prime Lease, if Sublandlord, at the request of Subtenant, makes any expenditures or incurs any obligation for the payment of money in connection with such cooperation,
such sums paid or obligations incurred shall be deemed to be Rent hereunder and shall be paid by Subtenant to Sublandlord within twenty (20) business days of a written demand therefore; provided, however, that prior to incurring any such
expenditures in order to obtain a consent or approval, Sublandlord shall notify Subtenant and allow Subtenant the opportunity to approve or disapprove the expenditure. 

  

	12.	Sublandlord's Right to Cure Subtenant’s Default. Subtenant shall not do or suffer or permit anything to be done which would cause the Prime Lease to be terminated, or
forfeited by virtue of any rights of termination, or forfeiture reserved or vested in Prime Landlord, or by law or in equity. If Subtenant shall default in the performance of any of its obligations under this Sublease or under the Prime Lease,
Sublandlord, without being under any obligation to do so and without thereby waiving such default, may remedy such default for the account and at the expense of Subtenant. If Sublandlord makes any expenditures or incurs any obligation for the
payment of money in connection therewith, such sums paid or obligations incurred shall be deemed to be Additional Rent hereunder and shall be paid to Sublandlord by Subtenant within five (5) business days of demand therefore.

  
 Sublandlord shall not do or suffer or permit
anything to be done which would cause the Prime Lease to be terminated, or forfeited by virtue of any rights of termination, or forfeiture reserved or vested in Prime Landlord, or by law or in equity. 

	13.	Brokerage Fees. Each of Sublandlord and Subtenant hereby represent and warrant to the other and to Prime Landlord that neither of them has employed or dealt with any broker,
agent or finder in carrying on the negotiations relating to this Sublease. Each party shall indemnify and hold the other and the Prime Landlord harmless from and against any claim or claims for brokerage or other commissions asserted by any other
broker, agent or finder engaged by such indemnifying party or with whom such indemnifying party has dealt in connection with this Sublease. 

  

	14.	Surrender of Subleased Premises. Upon the expiration or other termination of the Term, Subtenant covenants to quit and surrender to Sublandlord or Prime Landlord, as the case
may be, the Subleased Premises, in the same condition as received ordinary wear and tear, damage by fire or other casualty excepted, and at Subtenant’s expense to shall remove all of its trade fixtures, personal property and all alterations
constructed by Subtenant in the Subleased Premises which are required to be removed under the terms of this Sublease or the Prime Lease. Any property not so removed shall be deemed to have been abandoned by Subtenant and may be retained or disposed
of at Subtenant’s expense by Sublandlord or Prime Landlord, as either may desire. In addition to the indemnification obligations set forth in the Prime Lease, Subtenant shall pay Sublandlord holdover rent and charges in the amount set forth in
Section 8.05 of the Prime Lease for any period from the Expiration Date through the date Subtenant surrenders the Subleased Premises. For clarification, if Subtenant holds over beyond the end of the Term hereof, Subtenant shall owe Sublandlord as
rent, an amount equal to the full amount Sublandlord is required to pay Prime Landlord for rental of the Subleased Premises under the Prime Lease, without regard to the rental amounts provided for in Section 2 hereof. Subtenant shall repair any
damage to the Subleased Premises caused by Subtenant’s removal of its personal property, furnishings and equipment. If the Subleased Premises are not so surrendered, then Subtenant shall be liable to Sublandlord for all costs incurred by
Sublandlord in returning the Subleased Premises to the required condition, plus interest thereon at the Default Rate. 

  

	15.	Notice and Demands. All notices, requests, demands, consents, approvals and other communications (each, a “Notice” and collectively,
“Notices”) under this Sublease shall be in writing and shall be effective only if given in the manner set forth in Article 18 of the Prime Lease. Such Notices shall be addressed as follows: 

  
 If to Sublandlord:     Calpine Central, L.P. 

      717 Texas Avenue, Suite 1000 
       Houston, TX 77002 
       Attention:
Facilities Manager 
  
       with a copy to: 
  
       Calpine Corporation 
       50 West San Fernando Street

       San Jose, CA 95113 
       Attention: General Counsel 

			
	 If to Subtenant:
	  	 Calpine Natural Gas L.P.
 717 Texas, Suite
2800
 Houston, TX 77002
 Attention: Charles F.
Chambers
  
 with a copy to:
  
 Rosetta Resources Inc.
 717 Texas, Suite 2800
 Houston, TX 77002
 Attention: Charles F. Chambers

  
 Except as set forth in
this Sublease, whenever in the Prime Lease a time is specified within which the Sublandlord must give Notice following an event, or within which the Sublandlord must respond to any Notice previously given or made by the Prime Landlord, or comply
with any obligation on the part of the Sublandlord, such time is hereby changed (for the purpose of this Sublease only) by subtracting three (3) days therefrom. Except as set forth in this Sublease, whenever in the Prime Lease a time is specified
within which the Prime Landlord must give Notice following an event, or within which the Prime Landlord must respond to any Notice, request or demand previously given or made by the Sublandlord, such time is hereby changed (for the purpose of this
Sublease only) by adding three (3) days thereto. It is the purpose and intent of the foregoing provisions of this Section 15 to provide Sublandlord with time within which to transmit to the Prime Landlord any notices or demands received from
Subtenant and to transmit to Subtenant any notices or demands received from Sublandlord. However, any Notices required to be delivered by either Sublandlord or Subtenant under this Sublease which are not notices to or from Prime Landlord under the
Prime Lease shall be given in a manner, and at the times provided, in this Sublease, without reference to the addition or subtraction of days as provided in this Section 15. Sublandlord shall provide Subtenant all notices from Prime Landlord
within three (3) days of receipt thereof. 
  

	16.	Parking. Subtenant shall take and pay for 50 Must Take Parking Spaces, all of which are unassigned parking spaces. The Parking Rental for such Must Take Parking Spaces is as
follows: 

  

				
	 Years of the Prime Lease

	  	Unassigned

	 1-5
	  	$	150.00/space/month
	 6-lease expiration
	  	$	200.00/space/month

  
 In the event that the
charge for parking spaces is increased by Prime Landlord under the Prime Lease, the price set forth above shall increase by the same amount per space. 

	17.	Effect of Conveyance. As used in this Sublease, the term “Sublandlord” means the holder of the Tenant’s interest under the Prime Lease. In the event of any
assignment or transfer of the Tenant’s interest under the Prime Lease, which assignment or transfer may occur at any time during the Term hereof (subject to the terms of the Lease), in Sublandlord’s sole discretion, Sublandlord shall be
entirely relieved of all covenants and obligations of Sublandlord hereunder to the extent the transferee assumes in writing all such covenants and obligations thereafter to be performed by Sublandlord hereunder. 

  

	18.	Counterparts and Facsimile. This Sublease may be executed in counterparts, which shall, when so executed and taken together, have the same force and effect as though all
signatures appeared on a single document. This Sublease may be executed and delivered by all or any of the parties hereto by facsimile, provided that the originally executed counterpart shall be delivered by hand or by overnight courier promptly
thereafter. 

  
 IN WITNESS WHEREOF, the
parties hereto have duly executed sealed and delivered this instrument on the day and year written below. 
  

			
	SUBLANDLORD:
	CALPINE CENTRAL L.P.,
	a Delaware limited liability company
		
	By:	 	 /s/ Ann B Curtis

	Name:	 	ANN B CURTIS
	Title	 	EXEC. VP/VICE CHAIRMAN
	
	SUBTENANT:
	CALPINE NATURAL GAS L.P.
		
	By:	 	 /s/ Charles F. Chambers

	Name:	 	Charles F. Chambers
	Title	 	Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]