Document:

ex10-1.htm

    Exhibit
10.1

    SECOND
AMENDMENT

    TO

    THIRD AMENDED AND RESTATED
REVOLVING CREDIT AGREEMENT

    AND

    WAIVER
THEREUNDER

    

    

    

    This
Second Amendment to Third Amended and Restated Revolving Credit Agreement and
Waiver Thereunder (this “Amendment”),
dated as of June 23, 2008, is entered into by (1) FRONTIER OIL AND REFINING
COMPANY, a Delaware corporation (the “Borrower”),
(2) FRONTIER OIL CORPORATION, a Wyoming corporation (“FOC”), (3)
each of the financial institutions party to the Credit Agreement referred to
below (the “Lenders”)
and (4) UNION BANK OF CALIFORNIA, N.A., a national banking association (“UBOC”), as
administrative agent (the “Administrative
Agent”) for the Lenders.

    

    

    Recitals

    

    A.           The
Borrower, FOC, the Lenders, the Administrative Agent and BNP Paribas, a French
banking corporation, as syndication agent, are party to a Third Amended and
Restated Revolving Credit Agreement dated as of October 1, 2007, as amended by a
First Amendment to Third Amended and Restated Revolving Credit Agreement dated
as of March 3, 2008 (said Agreement, as so amended, herein called the “Credit
Agreement”). Terms defined in the Credit Agreement and not otherwise
defined herein have the same respective meanings when used herein, and the rules
of interpretation set forth in Section 1.3 of the Credit Agreement are
incorporated herein by reference.

    

    B.           The
Borrower has requested, pursuant to Section 2.1(b) of the Credit Agreement, that
the Lenders increase the Maximum Aggregate Commitment to $350,000,000. In
addition, the Borrower, FOC, the Lenders and the Administrative Agent wish to
amend the Credit Agreement to, among other things, (1) amend a portion of the
definition of “Borrowing Base” and (2) provide for the issuance of Letters of
Credit by BNP Paribas in addition to UBOC, subject to the terms and conditions
hereof. Accordingly, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Borrower, FOC, the Lenders and
the Administrative Agent hereby agree as set forth below.

    

    

    SECTION
1. Amendments to Credit
Agreement. Subject
to satisfaction of the conditions precedent set forth in Section 3 of this
Amendment, the Borrower, FOC and the Lenders hereby agree that the Credit
Agreement is amended as set forth below.

    

    (a) The
definition of “Borrowing Base” in Section 1.1 of the Credit Agreement is amended
by amending clause (vii) thereof in full to read as follows:

    

    “(vii) 70%
of Eligible Prepaid Crude Purchases (provided, however, that (A) the
aggregate amount of Eligible Prepaid Crude Purchases, before making the
calculation described in this clause (vii) for the purpose of determining the
aggregate amount of Eligible Prepaid Crude Purchases to be included in the
Borrowing Base, shall not exceed $30,000,000, and (B) the aggregate amount of
Eligible Inventory and Eligible Prepaid Crude Purchases included in the
Borrowing Base shall not exceed 70% of the Borrowing Base);”

    

    (b) The
definition of “Issuing Bank” in Section 1.1 of the Credit Agreement is amended
in full to read as follows:

    

    “‘Issuing
Bank’ means UBOC or BNP Paribas in its capacity as an issuer of Letters
of Credit hereunder, as requested by the Borrower pursuant hereto from time to
time; provided,
however, that
(a) an Issuing Bank shall not be obligated to, but may in its sole and absolute
discretion, issue a Letter of Credit as requested by the Borrower pursuant
hereto if such issuance would cause the sum of (i) the aggregate Letter of
Credit Amount of all outstanding Letters of Credit issued by such Issuing Bank
and (ii) the aggregate amount of unreimbursed drawings under all Letters of
Credit issued by such Issuing Bank to exceed 50% of the Maximum Aggregate
Commitment, and (b) each reference in this Agreement to ‘the Issuing Bank’ in
respect of a particular Letter of Credit shall mean UBOC if it was or is to be
the issuer thereof or BNP Paribas if it was or is to be the issuer
thereof.”

    

    (c) The
definition of “Letter of Credit Request” in Section 1.1 of the Credit Agreement
is amended in full to read as follows:

    

    “‘Letter of Credit
Request’ means a request by the Borrower for the issuance of a Letter of
Credit, on the Issuing Bank’s standard form of letter of credit application
(UBOC’s current form of which is attached hereto as Exhibit B) and containing
terms and conditions satisfactory to the Issuing Bank in its sole
discretion.”

    

    (d) Section
2.12(b) of the Credit Agreement is amended in full to read as
follows:

    

    “(b) The
Borrower will pay to the Issuing Bank for its own account such additional fees
and charges (including cable charges) as are generally associated with letters
of credit, in accordance with the Issuing Bank’s standard internal charge
guidelines in effect from time to time.”

    

    (e) Article 2
of the Credit Agreement is amended by adding the following new Section 2.20 at
the end thereof:

    

    “Section
2.20  Pricing Increase. If
this Agreement is not amended and restated, or otherwise replaced, by October 1,
2008, then on that date (a) each percentage set forth in (i) the definition of
“Applicable Base Rate Margin” in Section 1.1, (ii) the definition of “Applicable
LIBOR Margin” in Section 1.1, (iii) the definition of “Applicable LOC Fee Rate”
in Section 1.1 and (iv) Section 2.12(a) shall be increased by 0.25% (i.e., 25 basis points), and
(b) each percentage set forth in the definition of “Applicable Commitment Fee
Rate” in Section 1.1 shall be increased by 0.05% (i.e., 5 basis points), in
each case without any action by any Person. ”

    

    (f) Section
4.3 of the Credit Agreement, through clause (a) thereof, is amended in full to
read as follows:

    

    “Section 4.3  Letters of Credit.
The obligation of the Issuing Bank to issue, and of each other Lender to
participate in, each Letter of Credit is subject to the limitations of the
Commitments, to the limitations contained in the definition of ‘Issuing Bank’ in
Section 1.1, to the performance by the Borrower of all of its obligations under
this Agreement and to the satisfaction of the following further
conditions:

    

    (a) the
Issuing Bank has received a Letter of Credit Request, duly executed by the
Borrower, with respect to such Letter of Credit;”

    

    

    (g) Sections
10.8(a), (c) and (d) of the Credit Agreement are amended in full to read as
follows:

    

    “(a) Each
Lender may assign to one or more banks or other entities all or a portion of its
rights and obligations under this Agreement (including all or a portion of its
Commitment, the Advances owing to it and its participations in outstanding
Letters of Credit); provided, however, that (i)
except in the case of an assignment to a Person that, immediately before such
assignment, was a Lender, the amount of the Commitment of the assigning Lender
being assigned pursuant to each such assignment (determined as of the date of
the Assignment and Assumption with respect to such assignment) shall in no event
be less than the lesser of (A) the entire Commitment of such Lender at such time
and (B) $10,000,000, (ii) each such assignment shall be subject to the prior
written consent of the Administrative Agent and each Issuing Bank (which consent
may not be unreasonably withheld or delayed), and (iii) the parties to each such
assignment shall execute and deliver to the Administrative Agent, for its
acceptance and recording in the Register, an Assignment and Assumption, together
with a processing and recording fee of $3,500. Upon such consent, execution,
delivery, acceptance and recording, from and after the effective date specified
in the applicable Assignment and Assumption, which effective date shall be at
least 5 Business Days after the date of delivery thereof to the Administrative
Agent or, if so specified in such Assignment and Assumption, the date of
acceptance thereof by the Administrative Agent, (i) the assignee thereunder
shall be a party hereto and, to the extent that rights and obligations hereunder
have been assigned to it pursuant to such Assignment and Assumption, shall have
the rights and obligations of a Lender hereunder, and (ii) the Lender assignor
thereunder shall, to the extent that rights and obligations hereunder have been
assigned by it pursuant to such Assignment and Assumption, relinquish its rights
and be released from its obligations under this Agreement (and, in the case of
an Assignment and Assumption covering all or the remaining portion of an
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto, except that such Lender shall continue to be
an ‘Indemnified Party’ under Section 6.14(b) and an ‘Indemnified Person’ under
Section 10.5).”

    

    
      	
               
      

            	
              *          *          *

            

    

    

    “(c) Any
financial institution that is to become a party to this Agreement as a New
Lender pursuant to Section 2.1(b) must be consented to by the Borrower, the
Administrative Agent and each Issuing Bank (which consent may not be
unreasonably withheld or delayed) and must execute a Joinder Agreement,
consented to by the Borrower, the Administrative Agent and each Issuing Bank and
delivered to the Administrative Agent for its recording in the Register,
together with a processing and recording fee of $3,500; provided, however, that (i)
each New Lender must have a Commitment of at least $10,000,000 and (ii) no
joinder of a New Lender to this Agreement may cause the maximum amount of the
Maximum Aggregate Commitment to exceed $350,000,000. Upon such execution,
consent, delivery and recording, from and after the effective date specified in
the applicable Joinder Agreement, the New Lender thereunder shall be a party
hereto and, to the extent provided in such Joinder Agreement, shall have the
rights and obligations of a Lender hereunder. By executing and delivering a
Joinder Agreement, the New Lender thereunder confirms to and agrees with the
other parties hereto as specified in Sections 10.8(b)(iii) through (vi), as if
it were an assignee (but without reference to an assignor). Upon the joinder of
any New Lender to this Agreement pursuant to this Section 10.8(c), the
Administrative Agent shall forward to the Borrower and each Lender an updated
Schedule 1.

    

    “(d) The
Administrative Agent shall maintain at its address set forth in Section 10.2 a
copy of each Assignment and Assumption and Joinder Agreement delivered to the
Administrative Agent and consented to and accepted as specified above and a
register for the recordation of the names and addresses of the Lenders and the
Commitment of, and the principal amount of Obligations owing to, each Lender
from time to time (the ‘Register’).
The entries in the Register shall be conclusive and binding for all purposes,
absent manifest error, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register as a Lender
hereunder for all purposes of this Agreement. The Register shall be available
for inspection by the Borrower or any Lender at any reasonable time and from
time to time upon reasonable prior notice.”

    

    SECTION
2. Waiver. Subject
to satisfaction of the conditions precedent set forth in Section 3 of this
Amendment, the Lenders and the Administrative Agent hereby waive, in respect of
the Borrower’s request under Section 2.1(b) of the Credit Agreement to increase
the Maximum Aggregate Commitment to $350,000,000, the requirements under Section
2.1(b) of the Credit Agreement that (a) the Borrower give the Administrative
Agent a Commitment Increase Request not later than 10 Business Days before the
proposed Commitment Increase Date and (b) the Lenders be allowed 10 Business
Days after receipt of notice of a Commitment Increase Request to respond
thereto.

    

    SECTION
3. Conditions
Precedent. This
Amendment and the increases in the Commitments to the amounts set forth in
Schedule 1 attached hereto shall become effective on the date, not later than
June 30, 2008, on which the conditions precedent set forth below have been
fulfilled.

    

    (a) The
Borrower has paid the following fees to the Administrative Agent: (i) for the
account of each Lender, a facility-increase fee equal to the product of (A) the
difference between the Commitment of such Lender as set forth in Schedule 1
hereto and the Commitment of such Lender as set forth in Schedule 1 to the
Credit Agreement and (B) 0.30%; and (ii) for the account of each of UBOC and BNP
Paribas, the fees payable thereto on or before the date hereof pursuant to the
letter agreement described in Section 3(b)(iii) hereof.

    

    (b) The
Administrative Agent has received all of the following, each dated the date
hereof, in form and substance satisfactory to the Administrative Agent and in
the number of originals requested thereby:

    

    (i) this
Amendment, duly executed by the Borrower, FOC and the Super-Majority
Lenders;

    

    (ii) a consent
to this Amendment, duly executed by the Guarantors and by the Borrower, in its
capacity as guarantor under the Borrower Guaranty; and

    

    (iii) a letter
agreement, duly executed by the Borrower, UBOC and BNP Paribas, concerning fees
payable by the Borrower to each of UBOC and BNP Paribas for its own account with
respect to its role as an issuer of Letters of Credit.

    

    SECTION
4. Representations and
Warranties. Each of
the Borrower and FOC represents and warrants to the Lenders and the
Administrative Agent as set forth below.

    

    (a) The
execution, delivery and performance by each of the Borrower and FOC of this
Amendment and the Credit Agreement, as amended hereby, and the consummation of
the transactions contemplated hereby and thereby, are within such Credit Party’s
legal powers, have been duly authorized by all necessary legal action and do not
(i) contravene such Credit Party’s charter documents or bylaws, (ii) violate any
Governmental Rule, (iii) conflict with or result in the breach of, or constitute
a default under, any Material Contract, loan agreement, indenture, mortgage,
deed of trust or lease, or any other contract or instrument, binding on or
affecting such Credit Party, any of its Subsidiaries or any of their respective
properties, the conflict, breach or default of which could reasonably be
expected to have a Material Adverse Effect, or (iv) result in or require the
creation or imposition of any Lien upon or with respect to any of the properties
of such Credit Party or any of its Subsidiaries, except for Liens created or
permitted under the Credit Documents, as amended hereby. Neither such Credit
Party nor any of its Subsidiaries is in violation of any Governmental Rule or in
breach of any such contract, loan agreement, indenture, mortgage, deed of trust,
lease or other contract or instrument, the violation or breach of which could
reasonably be expected to have a Material Adverse Effect.

    

    (b) No
Governmental Action, and no authorization, approval or other action by, or
notice to, any third party, is required for the due execution, delivery or
performance by the Borrower or FOC of this Amendment or the Credit Agreement, as
amended hereby, or for the consummation of the transactions contemplated hereby
or thereby, except for (i) authorizations, approvals and other actions by, and
notices to, third parties, the failure to obtain which could not reasonably be
expected to have a Material Adverse Effect, and (ii) Governmental Action that
has been duly obtained, taken, given or made and is in full force and
effect.

    

    (c) This
Amendment and the Credit Agreement, as amended hereby, have been duly executed
and delivered by the Borrower and FOC. This Amendment and the Credit Agreement,
as amended hereby, are the legal, valid and binding obligations of the Borrower
and FOC, enforceable against each such Credit Party in accordance with their
respective terms, except as the enforceability hereof or thereof may be limited
by bankruptcy, insolvency, moratorium, reorganization or other similar laws
affecting creditors’ rights generally or by equitable principles relating to
enforceability.

    

    (d) Each of
the Security Agreement and the Stock Pledge Agreement constitutes a valid and
perfected first-priority Lien on the Collateral purported to be encumbered
thereby, enforceable against all third parties in all jurisdictions, and secures
the payment of all obligations of the Borrower or FRMI, as applicable, under the
Credit Documents, as amended hereby, to which the Borrower or FRMI, as
applicable, is a party, and the execution, delivery and performance of this
Amendment do not adversely affect the Lien of the Security Agreement or the
Stock Pledge Agreement.

    

    (e) There has
been no amendment to the charter documents or bylaws of the Borrower on or after
September 20, 2007 or of FOC on or after September 21, 2007. The representations
and warranties contained in each Credit Document, as amended hereby, to which
the Borrower and/or FOC is a party are correct in all material respects on and
as of the date hereof, before and after giving effect to this Amendment, as
though made on and as of the date hereof. No event has occurred and is
continuing, or would result from the effectiveness of this Amendment, that
constitutes a Default.

    

    SECTION
5. Reference to and Effect on
Credit Documents.

    

    (a) On and
after the effective date of this Amendment, each reference in the Credit
Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like
import referring to the Credit Agreement, and each reference in the other Credit
Documents to “the Credit Agreement,” “thereunder,” “thereof,” “therein” or words
of like import referring to the Credit Agreement, shall mean and be a reference
to the Credit Agreement as amended by this Amendment.

    

    (b) Except as
specifically amended above, the Credit Agreement and the other Credit Documents
shall remain in full force and effect and are hereby ratified and confirmed.
Without limiting the generality of the foregoing, the Security Agreement and the
Stock Pledge Agreement and all of the Collateral described therein do and shall
continue to secure the payment of all obligations under the Credit Documents, as
amended hereby, stated to be secured thereby.

    

    (c) The
execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of the Administrative Agent or any Lender
under any of the Credit Documents or constitute a waiver of any provision of any
of the Credit Documents.

    

    SECTION
6. Costs and
Expenses. The
Borrower agrees to pay on demand all costs and expenses of the Administrative
Agent in connection with the preparation, execution and delivery of this
Amendment and the other instruments and documents to be delivered hereunder,
including the reasonable fees and out-of-pocket expenses of counsel for the
Administrative Agent with respect thereto and with respect to advising the
Administrative Agent as to its rights and responsibilities hereunder and
thereunder.

    

    SECTION
7. Execution in
Counterparts. This
Amendment may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed and delivered
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a
signature page to this Amendment by telecopier or e-mail shall be effective as
delivery of an originally executed counterpart of this Amendment.

    

    SECTION
8. Governing
Law. THIS AMENDMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
CALIFORNIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THE STATE OF
CALIFORNIA.

    

     

    

    [Signature
pages follow.]

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    The
parties hereto have caused this Amendment to be executed by their respective
duly authorized representatives as of the date first written above.

    

    

    FRONTIER
OIL AND REFINING COMPANY

    

    

    By:       /s/ Michael C.
Jennings                                               

    Name:  Michael
C.
Jennings                                                              

    Title:    EVP
&
CFO                                                           

    

    

    

    FRONTIER
OIL CORPORATION

    

    

    By:       /s/ Doug S.
Aron                                               

    Name:  Doug
S.
Aron                                                              

    Title:    VP
- Corporate
Finance                                                           

    

    

    

    UNION
BANK OF CALIFORNIA, N.A.,

       as
Administrative Agent and Lender

    

    

    By:       /s/ Timothy
Brendel                                               

    Name:  Timothy
Brendel                                                              

    Title:    Assistant
Vice
President                                                           

    

    

    

    BNP
PARIBAS

    

    

    By:       /s/ Edward
Pak                                               

    Name:  Edward
Pak                                                              

    Title:    Vice
President                                                            

    

    

    By:        /s/ Betsy
Jocher                                              

    Name:   Betsy
Jocher                                                             

    Title:     Director                                                           

    

    

    

    TORONTO
DOMINION (TEXAS) LLC

    

    

    By:         /s/ Ian
Murray                                             

    Name:    Ian
Murray                                                            

    Title:      Authorized
Signatory                                                          

    

    

    

    WELLS
FARGO BANK, N.A.

    

    

    By:         /s/ Oleg
Kogan                                             

    Name:    Oleg
Kogan                                                            

    Title:      Assistant
Vice
President                                                          

    

    

    

    U.S. BANK
NATIONAL ASSOCIATION

    

    

    By:         /s/ Monte E.
Deckerd                                             

    Name:    Monte
E.
Deckerd                                                            

    Title:      Senior
Vice
President                                                          

    

    

    

    THE FROST
NATIONAL BANK

    

    

    By:         /s/ Thomas H.
Dungan                                             

    Name:   Thomas
H.
Dungan                                                              

    Title:     Sr.
Vice
President                                                          

    

    

    

    BANK OF
SCOTLAND

    

    

    By:        /s/ Julia
R. Franklin                                              

    Name:   Julia
R. Franklin                                                             

    Title:     Assistant
Vice
President                                                           

    

    

    

    CAPITAL
ONE, NATIONAL ASSOCIATION

    

    

    By:        /s/ Stan G. Weiser,
Jr.                                              

    Name:  
Stan G. Weiser,
Jr.                                                              

    Title:     Vice-President                                                           

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
1

    

    

    COMMITMENTS

    

    

    

    
      	
              Lender

               

               

            	
              Commitment

            
	
              Union
      Bank of California, N.A.

               

            	
              $60,000,000

            
	
              BNP
      Paribas

               

            	
              $60,000,000

            
	
              Toronto
      Dominion (Texas) LLC

               

            	
              $50,000,000

            
	
              Wells
      Fargo Bank, N.A.

               

            	
              $50,000,000

            
	
              U.S.
      Bank National Association

               

            	
              $44,000,000

            
	
              The
      Frost National Bank

               

            	
              $31,000,000

            
	
              Bank
      of Scotland

               

            	
              $30,000,000

            
	
              Capital
      One, National Association

               

            	
              $25,000,000

            
	
               

               Maximum
      Aggregate Commitment

            	
               

              $350,000,000form10_5.htm

    EXHIBIT
10.5

       

       

      SEVENTH AMENDMENT TO
LEASE

      

      THIS
Seventh Amendment to Lease (this “Amendment”) is entered into as
of December 28, 2007, between NNN 100 Cyberonics Drive, LLC, NNN 100
Cyberonics Drive 1, LLC, NNN 100 Cyberonics Drive 2, LLC,
NNN 100 Cyberonics Drive 3, LLC, NNN 100 Cyberonics Drive 4,
LLC, NNN 100 Cyberonics Drive 5, LLC, NNN 100 Cyberonics
Drive 6, LLC, NNN 100 Cyberonics Drive 7, LLC, NNN 100
Cyberonics Drive 8, LLC, NNN 100 Cyberonics Drive 9, LLC,
NNN 100 Cyberonics Drive 10, LLC, NNN 100 Cyberonics
Drive 11, LLC, NNN 100 Cyberonics Drive 12, LLC, NNN 100
Cyberonics Drive 13, LLC, NNN 100 Cyberonics Drive 14, LLC, each
one a Delaware limited liability company (“Landlord”), acting by and
through Triple Net Properties Realty, Inc. (“Agent for Landlord”),
successor-in-interest to and assignee  of  Space Center
Operating Associates, L.P., and CYBERONICS, INC., a Delaware corporation (“Tenant”).

      

      RECITALS:

      

      A.           Space
Center Operating Associates, L.P. and Tenant entered into a certain Lease
Agreement (the “Lease
Agreement”) dated effective December 5, 2002, as amended by amendment to
lease dated March 3, 2003 (the “First Amendment”) second
amendment to lease, dated October 2, 2003  (the “Second Amendment
“),  third amendment to lease dated March 11, 2004 (the “Third Amendment”), fourth
amendment to the lease agreement dated March 23, 2005 (the “Fourth Amendment”), fifth
amendment to the lease agreement dated May 5, 2005 (the “Fifth Amendment”), sixth
amendment to the lease agreement dated as of July 13, 2005 (the “Sixth Amendment”) (the Lease
Agreement, as previously amended, and this Amendment are hereinafter
collectively referred to as the “Lease”);

      

      B.           The
Premises leased under the Lease comprise a total of 134,147 Rentable Square
Feet, consisting of Suites 102, 103, 105, 106, 107, 110, 115, 127, 130, 140,
143, 150, 160, 202, 203, 300, 400, 500, and 600, and Tenant’s Proportionate
Share of the Building is 92.9343%; and

      

      C.           Tenant
now desires to surrender certain portions of the Premises, and Landlord and
Tenant now desire to evidence the agreement with respect to Tenant’s surrender
of portions of the Premises and to extend the term of the Lease subject to the
terms and conditions of this Amendment.

      

      NOW, THEREFORE, in
consideration of the sum of Ten and 00/100 Dollars ($10.00) and other valuable
consideration paid by each party to the other, the receipt and sufficiency of
which are hereby acknowledged, Landlord and Tenant do hereby amend the Lease as
follows:

      

      AGREEMENTS:

      

      1.           Definitions.  All
terms not otherwise defined herein shall have the meanings given them in the
Lease Agreement.

       

      2.           Premises.  Effective
on the dates set forth below (each, a “Surrender Date” and
collectively, the “Surrender
Dates”), Tenant shall vacate and surrender the portion of the Premises
identified in the columns adjacent to the Surrender Date by Suite number and
square footage (each, a “Surrendered Space” and
collectively, the “Surrendered
Spaces”), in the condition in which Section 25 of the
Lease Agreement requires the Premises to be surrendered at the expiration of the
Term.  From and after each Surrender Date, the Tenant’s Rentable
Square Feet shall be as set forth in the column entitled “Remaining RSF”, the term
“Premises” shall mean the space comprising the Remaining RSF, and Tenant’s
Proportionate Share of the Building shall be as set forth in the table
below.

       

      
        	
                Surrender
      Date

              	
                Suite
      No.

              	
                Square
      Footage of Surrendered Space

              	
                Remaining
      RSF

              	
                Proportionate
      Share following Surrender

              
	
                12/01/07

              	
                140

              	
                2,029

              	
                132,118

              	
                91.53%

              
	
                03/01/08

              	
                130
      and 102

              	
                2,055

              	
                130,063

              	
                90.11%

              
	
                06/01/08

              	
                127

              	
                3,852

              	
                126,211

              	
                87.44%

              
	
                09/01/08

              	
                200

              	
                11,440

              	
                114,771

              	
                79.51%

              

      

      

       

      From and
after the later of each Surrender Date or the actual vacation and surrender of
the Surrendered Space, neither party shall have any further obligations to the
other with respect to such Surrendered Space, except for obligations that by
their nature survive termination, including indemnity obligations and liability
for payment of (or return of) additional rent for the Surrendered Space
following receipt of Landlord’s annual Operating Expense statement for the year
in which the Surrendered Space is surrendered.  If Tenant holds over
in any portion of the Surrendered Space following the scheduled Surrender Date
for such space, Tenant shall pay holdover rent for the Surrendered Space as
provided in the Lease.

       

      3.           Extension.  The
Term of the Lease shall be extended for a period of 86 months, commencing
November 1, 2007 (the “Renewal
Effective Date”) and expiring December 31, 2014 (the “Renewal Term”), upon the same
terms and conditions as provided in the Lease, except as expressly modified
hereby.

       

      4.           Base
Rent.  Commencing on the Renewal Effective Date, Tenant shall
pay Base Rent as follows:

      

      
        	
                Lease
      Years

              	
                Annual
      Base Rent per Rentable Square Foot

              	
                Monthly
      Base Rent Payment

              
	
                11/
      01/07 – 11/30/07

              	
                $21.50

              	
                $240,346.71

              
	
                12/01/07
      – 12/31/07

              	
                $21.50

              	
                $236,711.42

              
	
                01/01/08
      – 02/29/08

              	
                $22.00

              	
                $242,216.33

              
	
                03/01/08
      – 05/31/08

              	
                $22.00

              	
                $238,448.83

              
	
                06/01/08
      – 08/30/08

              	
                $22.00

              	
                $231,386.83

              
	
                09/01/08
      – 12/31/08

              	
                $22.00

              	
                $210,413.50

              
	
                01/01/09
      – 12/31/09

              	
                $22.50

              	
                $215,195.63

              
	
                01/01/10
      – 12/31/ 10

              	
                $23.00

              	
                $219,977.75

              
	
                01/01/11
      – 12/31/11

              	
                $23.50

              	
                $224,759.88

              
	
                01/01/12
      – 12/31/12

              	
                $24.00

              	
                $229,542.00

              
	
                01/01/13
      – 12/31/13

              	
                $24.50

              	
                $234,324.13

              
	
                01/01/14
      – 12/31/14

              	
                $25.00

              	
                $239,106.25

              

      

      

      5.           Additional
Rent.  Effective as of the Renewal Commencement Date, the Base
Year for the Premises shall be calendar year 2007.  Effective January
1, 2008, the Base Year for the Premises shall be calendar year 2008, in each
case calculated on a “grossed-up” basis to reflect 95% occupancy.

      

      6.           Operating
Expenses.

      

      A.           The
second grammatical paragraph of Section 6.a. of the
Lease Agreement is modified, effective as of January 1, 2008, to provide that,
notwithstanding anything to the contrary contained in Section 6.a, the
Controllable Operating Expenses for each calendar year after Base Year 2008
shall not be more than 4% greater than the Controllable Operating Expenses for
the previous calendar year.

      

      B.           Section 6.b.(ii) of
the Lease Agreement is modified, effective as of the Renewal Commencement Date,
to delete the parenthetical and insert in its place:  “(including
management fees not to exceed three and one half percent (3.5%) of gross rentals
attributable to the Property)”.

      

      7.           Premises.  Tenant accepts the Premises in “AS
IS”, “WITH ALL FAULTS” condition as of the date of this
Amendment.  Landlord has no responsibility to make any
alterations or improvements to the Premises, except as expressly set forth in
this Amendment.  Tenant specifically acknowledges that Landlord has
made no representations or warranties whatsoever concerning the condition of any
aspect of the Premises, the Building, and the Property, or the present or future
suitability for Tenant’s use.  Landlord and its agents expressly
disclaim, and Tenant expressly waives, all implied warranties, including any
warranties of habitability, good and workmanlike construction, suitability of
design or fitness for a particular purpose.  Tenant expressly waives
any warranty as to the environmental condition of the Property, Building or
Premises, and the presence of or contamination by Hazardous
Materials.

       

      8.           Option to
Renew.  The option to renew set forth in Exhibit F to the
Lease Agreement is hereby modified as follows, and remains in full force and
effect, as modified:  Notwithstanding anything to the contrary in
Exhibit F,
Tenant’s election to renew the Lease shall be made in writing to Landlord not
more than fifteen (15) months and not less than twelve (12) months prior to
expiration of the Renewal Term.  There are no other rights or options
to renew the Lease or extend the Renewal Term.

       

      9.           Right of
First Refusal to Lease.  There are no
other rights or options to expand the area of the Premises except the right of
first refusal set forth in Exhibit G to the
Lease Agreement, which right of first refusal remains in full force and
effect.

       

      10.           Landlord’s
Right to Market.  The parties acknowledge and agree
that:  (a) Tenant is interested in surrendering an additional portion
of the Premises identified as Suite 103, being 3,692 Rentable Square Feet (the
“Give Back Space”), (b)
Landlord is willing to authorize Landlord’s Broker to use its reasonable efforts
to market the Give Back Space, (c) Landlord has no obligation whatsoever to
lease the Give Back Space, and (d) unless and until Landlord executes and
delivers a lease agreement with a third party agreeing to lease the Give Back
Space to such third party on terms and conditions satisfactory to Landlord in
Landlord’s sole discretion, the Give Back Space shall remain a part of the
Premises and Tenant shall remain obligated therefor.  Tenant agrees to
surrender the Give Back Space and execute a document provided by Landlord
terminating the Lease with respect to the Give Back Space upon the written
request of Landlord, and to vacate and surrender the Give Back Space upon the
date specified by Landlord, which date shall be not less than thirty (30) days’
after the date of Landlord’s notice.

       

      11.           Right of
First Refusal to Purchase.  Tenant shall have a right of first
refusal to purchase the Property as provided in Rider One to this
Amendment.

       

      12.           Insurance.  Section 15.b.(ii) of
the Lease Agreement is modified, effective as of the Renewal Commencement Date,
as follows:  Notwithstanding anything to the contrary contained in the
Lease, Tenant shall provide commercial general liability insurance with
inclusive limits of not less than Five Million Dollars ($5,000,000) for each
occurrence and in the aggregate.

       

      13.           Parking.  As
provided in Section
2.t. of the Lease Agreement, Tenant is entitled to four parking spaces
per 1,000 square feet of rentable area of the Premises, out of which Tenant may
designate .25 reserved parking spaces per 1,000 square feet of rentable
area.  As of the date hereof, Tenant is entitled to 536 spaces, of
which 34 are reserved.  Parking shall be recalculated as of each
Surrender Date.

       

      14.           Deletions.
Paragraph II B
(Consumer Price Index Escalation) of the Sixth Amendment is hereby deleted in
its entirety.  Additional Rent for Suite 103 shall be calculated in
accordance with the provisions of Section 6 and Exhibit K of the
Lease Agreement, as modified by Paragraph 6
above.  Exhibits E-1 (Tenant
Improvements) and E-2 (Unamortized Cost
Schedule) to the Lease Agreement, Paragraph 7
(Construction Allowance) to the First Amendment, and Paragraph 7
(Construction Allowance) to the Second Amendment, have been fulfilled and are
hereby deleted.

       

      15.           Brokerage.  Landlord
and Tenant each represent and warrant to the other that it has not dealt with
any broker or agent in connection with the negotiation or execution of this
Amendment except Clear Lake Asset Management (Tenant’s Broker) and Transwestern
Property Company SW GP, LLC (Landlord’s Broker), each of whom Landlord shall pay
pursuant to separate agreement.  Tenant and Landlord shall each
indemnify and hold the other harmless from all liability arising from any claim
by any broker other than the listed brokers claiming by, through or under the
indemnifying party.

       

      16.           Addresses
for Notice.  Section 1 is amended
as follows:

       

       

      
        	 Landlord's
      Address	 c/o Triple Net Properties,
  LLC
	 for
      notices:	 816 Congress,
      Suite 1540
	 	 Austin, TX
      78701
	 	 Attn:  Regional
      Asset Manager
	 	 
	 Landlord's
      Payment	 NNN 100
      Cyberonics Drive LLC
	 Address: 	 P.O. Box
      534157
	 	 Atlanta, GA
      30353-4157

      

                                         
17.           Full
Force and Effect.  Except as extended by this Amendment, all
terms and conditions of the Lease shall remain in full force and effect and
Landlord and Tenant shall be bound thereby.  Tenant hereby represents,
warrants and agrees that:  (a)  there exists no breach,
default or event of default by Landlord under the Lease, or any event or
condition which, with notice or passage of time or both, would constitute a
breach, default or event of default by Landlord under the Lease, (b) the Lease
continues to be a legal, valid and binding agreement and obligation of Tenant,
and (c) Tenant has no offset or defense to its performance or obligations under
the Lease.  Tenant hereby waives and releases all demands, charges,
claims, accounts or causes of action of any nature against Landlord or
Landlord’s employees or agents (including Agent), including without limitation,
both known and unknown demands, charges, claims, accounts, and causes of action
that have arisen out of or in connection with the Lease or Tenant’s occupancy of
the Premises under the Lease.

       

      18.           Authority.  Each
party represents and warrants that it has due power and lawful authority to
execute and deliver this Amendment and to perform its obligations under the
Lease; and the Lease and this Amendment are the valid, binding and enforceable
obligations of such party.

       

      

      EXECUTED
as of the date first written above.

      

       

      
        	 LANDLORD:	 	 TENANT:
	 	 	 
	 TRIPLE NET PROPERTIES REALTY,	 	 CYBERONICS, INC.
	 INC., Agent for Landlord	 	 
	 	 	 
	 	 	 
	 By:	 	 By: /s/
      DANIEL J MOORE
	 Name:	 	 Name: Daniel
      J Moore
	 Title:	 	 Title:
      President & CEO
	 	 	 
	 Date:         	 	 Date: December
      5, 2007

      

       

                                                                     

      
        

      

      RIDER
ONE

      

      RIGHT
OF FIRST REFUSAL TO PURCHASE

      

      
        	
                A.  

              	
                Purchase
      Right.  Tenant shall have a continuing right of first
      refusal to purchase the Property (the “Purchase
      Right”).  The Purchase Right shall become operative upon
      receipt of written notice from Landlord (the “Landlord Notice”) that a
      bona fide third party offer has been received (other than at a public
      auction) by Landlord from a prospective third-party purchaser (which does
      not have the power of eminent domain) to purchase the Property and that
      Landlord is willing to accept the terms of such offer.  As used
      herein, “bona fide” means that Landlord has determined that the
      prospective purchaser is financially qualified to purchase the Property,
      and that the written offer is sufficient to permit Landlord to proceed to
      contract with the prospective purchaser. Landlord shall deliver to Tenant
      within a reasonable time after it lists the Property for sale such due
      diligence materials as it expects to provide to any prospective purchaser
      (the “Due Diligence
      Materials”), together with the form of confidentiality and access
      agreement which it would expect a prospective purchaser to sign (the
      “Confidentiality
      Agreement”), which Tenant shall sign as a condition to its receipt
      at any time of the Due Diligence Materials.  Tenant shall have a
      period of thirty (30) calendar days after receipt of the Due Diligence
      Materials in which to review such materials and to give notice of any
      objections which it may have.

              

      

       

      
        	
                B.  

              	
                Terms.  The
      Landlord Notice shall include the economic terms and conditions, including
      purchase price and terms, earnest money, timing, contingencies, and
      conditions to the parties’ obligations (collectively, the “Terms”) which the third
      party has offered and Landlord is willing to accept.  An offer
      made by Landlord for the sale of the Property to a third party, other than
      in lieu of condemnation, shall give Tenant the same rights as if such
      offer were an acceptable offer made by a third party.  Landlord
      shall deliver, with the Landlord Notice, any Due Diligence Materials, or
      updates thereof, not previously delivered to Tenant.  Tenant
      shall be entitled to use the Exercise Period (defined below) period during
      which to review any such new Due Diligence Materials, review Property
      condition, and conduct such investigations as it deems necessary in
      connection with its decision to exercise the Purchase Right, subject to
      the terms of the Confidentiality
Agreement.

              

      

       

      
        	
                C.  

              	
                Exercise
      Period.  Upon receipt of the Landlord Notice, Tenant
      shall have thirty (30) calendar days to exercise its Purchase Right (the
      “Exercise Period”)
      by written notice to Landlord, upon the Terms set forth in the Landlord
      Notice.  Response by Tenant in the form of a counter-proposal to
      the terms in the Landlord Notice, or a failure to respond within the
      Exercise Period, will be deemed to be a rejection of Tenant’s Purchase
      Right, and Landlord may then proceed to negotiate with the prospective
      third-party purchaser and enter into a contract and sell the Property to
      the third-party, on any terms negotiated in such contract (the “Third Party PSA”), but
      this Lease shall continue otherwise on all the other terms and conditions
      hereof.

              

      

       

      
        	
                D.  

              	
                Purchase and Sale
      Agreement.  If Tenant responds affirmatively, Tenant must
      include in its response an executed copy of a purchase and sale agreement
      for the Property delivered by Landlord with Landlord’s Notice, containing
      the Terms and being otherwise in a form that Landlord is willing to sign
      with the third party purchaser (excluding any due diligence or ‘free look’
      provisions, because all due diligence will have been completed by Tenant
      during the Exercise Period).  Any modification to the purchase
      and sale agreement shall constitute a rejection of Tenant’s Purchase
      Right.

              

      

       

      
        	
                E.  

              	
                Material Change after
      execution of Third Party PSA.  Notwithstanding the
      foregoing, if Tenant rejects, or is deemed to have rejected Tenant’s
      Purchase Right, and should Landlord and the third-party purchaser
      renegotiate the Third Party PSA after its effective date and such
      renegotiation will result in an economically material, written and binding
      amendment of the Third Party PSA (the “Amendment”), then Tenant
      shall have the right to purchase the Property on the terms set forth in
      this subparagraph E
      (the “Revived Purchase
      Right”).  Before entering into the Amendment, Landlord
      shall deliver the Third Party PSA, any intervening amendments, and the
      Amendment to Tenant and Tenant shall have three (3) business days from the
      date of Landlord’s delivery to review the same (the “Revived Exercise
      Period”).  Tenant must exercise the Revived Purchase
      Right, if at all, by delivering to Landlord no later than 5 p.m. (Central
      Time) on the final day of the Revived Exercise Period a written and
      binding letter agreement to Landlord which letter agreement (i) exercises
      the Revived Purchase Right, (ii) acknowledges that Tenant shall become the
      purchaser of the Property under a contract in the form of the Third Party
      PSA, as may have been amended, (iii) acknowledges that Tenant will execute
      and enter into the Amendment, (iv) acknowledges that Tenant will waive all
      objections that may have been raised under the Third Party PSA by the
      third party purchaser, as if Tenant had been the third party purchaser,
      (v) confirms that Tenant has deposited all required earnest money into
      escrow with the title company specified in the Third Party PSA, (vi)
      agrees that Tenant will reimburse Landlord as seller under the Third Party
      PSA for any cost incurred by Landlord in terminating the Third Party PSA
      as a result of Tenant’s exercise of the Revived Purchase Right, and (vii)
      acknowledges that Tenant will close on the purchase of the Property on the
      same closing date as set forth in the Third Party PSA, as may have been
      amended.  A purchase price reduction under the Third Party PSA
      will not be deemed “economically material” unless such reduction is
      greater than five percent (5%) of the original purchase price set forth in
      the Third Party PSA. Response by Tenant in the form of a counter-proposal
      to the terms in the Amendment, or a failure to respond within the Revived
      Exercise Period, will be deemed to be a rejection of Tenant’s Revived
      Purchase Right and Landlord shall have no further obligation to offer the
      Property to Tenant in connection with the Third Party PSA, as may be
      amended.

              

      

       

      
        	
                F.  

              	
                Conditions. The
      Purchase Right may not be exercised if any Event of Default exists, after
      any cure periods, from the date upon which Landlord gives its Landlord
      Notice, and from the time of exercising the Purchase Right through the
      closing date.  The Purchase Right may not be exercised by any
      subtenant or assignee of Tenant.  The Purchase Right shall not
      be applicable to a transfer to or for a party related to
      Landlord.  The Purchase Right shall expire upon expiration of
      this Lease or earlier termination of Tenant’s right to
      possession.  Landlord has no obligation to Tenant to offer the
      Property for sale or to entertain any third party offer.  If for
      any reason a sale of the Property is not consummated with the prospective
      third-party purchaser within 180 days after Tenant’s rejection, Tenant’s
      Purchase Right shall be reinstated.

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