Document:

exv10w4

 

Exhibit 10.4

CONTRIBUTION, CONVEYANCE AND

ASSUMPTION AGREEMENT

BY AND AMONG

WILLIAMS FIELD SERVICES COMPANY, LLC

AND

WILLIAMS FOUR CORNERS LLC

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS; RECORDATION	 	1
	1.1	 	Definitions
	 	1
	1.2	 	Schedules
	 	2
	 	 	 
	 	 
	ARTICLE II THE CONVEYANCE	 	2
	2.1	 	Contribution and Conveyance of the Four Corners Assets by WFSC to Four Corners
	 	2
	2.2	 	Excluded Assets
	 	3
	2.3	 	Specific Conveyances
	 	3
	 	 	 
	 	 
	ARTICLE III ASSUMPTION OF CERTAIN LIABILITIES	 	3
	3.1	 	Assumption of Four Corners Asset Liabilities by Four Corners
	 	3
	3.2	 	General Provisions Relating to Assumption of Liabilities
	 	3
	 	 	 
	 	 
	ARTICLE IV TITLE MATTERS	 	4
	4.1	 	Encumbrances
	 	4
	4.2	 	Disclaimer of Warranties; Subrogation; Waiver
	 	4
	 	 	 
	 	 
	ARTICLE V FURTHER ASSURANCES	 	6
	5.1	 	Further Assurances
	 	6
	5.2	 	Other Assurances
	 	6
	 	 	 
	 	 
	ARTICLE VI POWER OF ATTORNEY	 	7
	6.1	 	WFSC
	 	7
	 	 	 
	 	 
	ARTICLE VII MISCELLANEOUS	 	7
	7.1	 	Order of Completion of Transactions
	 	7
	7.2	 	Consents; Restriction on Assignment
	 	7
	7.3	 	Costs
	 	8
	7.4	 	Headings; References; Interpretation
	 	8
	7.5	 	Successors and Assigns
	 	9
	7.6	 	No Third Party Rights
	 	9
	7.7	 	Counterparts
	 	9
	7.8	 	Governing Law
	 	9
	7.9	 	Severability
	 	9
	7.10	 	Deed; Bill of Sale; Assignment
	 	9
	7.11	 	Amendment or Modification
	 	9
	7.12	 	Integration
	 	10

-i-

 

 

CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

     THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT, dated as of June 20, 2006 (this
“Agreement”), is entered into by and between Williams Field Services Company, LLC, a
Delaware limited liability company (“WFSC”), and Williams Four Corners LLC, a Delaware
limited liability company (“Four Corners”). The foregoing shall be referred to
individually as a “Party” and collectively as the “Parties.” Certain capitalized
terms used are defined in Article I hereof.

RECITALS

	1.	 	WHEREAS, Williams Field Services Company, a Delaware corporation and the
predecessor entity to WFSC (“WFS Company”), formed Four Corners pursuant to the
Delaware Limited Liability Company Act (the “Delaware LLC Act”) and contributed
sufficient consideration in exchange for all of the membership interests in Four
Corners.

	2.	 	WHEREAS, WFS Company filed a Certificate of Conversion pursuant to Section 266
of the General Corporation Law of the State of Delaware to convert itself to WFSC.

	3.	 	WHEREAS, concurrently with the consummation of the transactions contemplated
hereby, WFSC will convey the Four Corners Assets (as defined herein) to Four Corners as
a capital contribution with Four Corners assuming the Four Corners Asset Liabilities
(as defined herein).

     NOW, THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the
Parties undertake and agree as follows:

ARTICLE I

DEFINITIONS; RECORDATION

     1.1 Definitions. The following capitalized terms have the meanings given below.

     “Agreement” has the meaning assigned to such term in the first paragraph of this
Agreement.

     “Delaware LLC Act” has the meaning assigned to such term in the first recital of this
Agreement.

     “Effective Date” means June 20, 2006.

     “Effective Time” means the time when the transactions contemplated by Article
II hereof have been consummated.

     "Excluded Assets” has the meaning assigned to such term in Section 2.2.

     "Excluded Liabilities” has the meaning assigned to such term in Section 3.2.

 

 

     "Four Corners” has the meaning assigned to such term in the first paragraph of this
Agreement.

     “Four Corners Asset Liabilities” shall mean all liabilities and obligations relating
to the Four Corners Assets. The Four Corners Asset Liabilities shall not include the Excluded
Liabilities.

     "Four Corners Assets” has the meaning assigned to such term in Section 2.1.

     “Laws” means any and all laws, statutes, ordinances, rules or regulations promulgated
by a governmental authority, orders of a governmental authority, judicial decisions, decisions of
arbitrators or determinations of any governmental authority or court.

     “Party and Parties” have the meanings assigned to such terms in the first paragraph of
this Agreement.

     "Registration Statement” means the registration statement on Form S-1 (File No.
333-133065) filed by Williams Partners L.P.

     “Restriction” has the meaning assigned to such term in Section 7.2.

     "Restriction Asset” has the meaning assigned to such term in Section 7.2.

     “Specific Conveyances” has the meaning assigned to such term in Section 2.3.

     “WFSC” has the meaning assigned to such term in the first paragraph of this Agreement.

     “WFS Company” has the meaning assigned to such term in the first recital of this
Agreement.

     1.2 Schedules. The following schedules are attached hereto:

     (a) Schedule 2.1 — List of Four Corners Assets

     (b) Schedule 2.2 — List of Excluded Assets

ARTICLE II

THE CONVEYANCE

     2.1 Contribution and Conveyance of the Four Corners Assets by WFSC to Four Corners. WFSC
hereby grants, contributes, transfers, assigns and conveys to Four Corners, its successor and
assigns, for its and their own use forever, all of its right, title and interest in and to all of
the assets described on Schedule 2.1 (the “Four Corners Assets”), and Four Corners
hereby accepts the Four Corners Assets, as a contribution to the capital of Four Corners, subject
to all matters to be contained in the instruments of conveyance covering the Four Corners Assets to
evidence such contribution and conveyance, if any. The Four Corners Assets shall not include the
Excluded Assets.

-2-

 

     TO HAVE AND TO HOLD the Four Corners Assets unto Four Corners, its successors and assigns,
together with all and singular the rights and appurtenances thereto in anywise belonging, subject,
however, to the terms and conditions stated in this Agreement, and in such instruments of
conveyance, forever.

     2.2 Excluded Assets. Notwithstanding anything contained in Section 2.1 to the
contrary, WFSC shall not grant, contribute, transfer, assign or convey to Four Corners (or cause to
be granted, contributed, transferred, assigned or conveyed), and Four Corners shall neither assume,
purchase nor acquire from WFSC any of the assets described on Schedule 2.2 (collectively,
the “Excluded Assets”).

     2.3 Specific Conveyances. To further evidence the contributions of the Four Corners Assets
reflected in this Agreement, WFSC may have executed and delivered to Four Corners certain
conveyance, assignment and bill of sale instruments (the “Specific Conveyances”). The
Specific Conveyances shall evidence and perfect such contribution and conveyance made by this
Agreement and shall not constitute a second conveyance of any assets or interests therein and shall
be subject to the terms of this Agreement.

ARTICLE III

ASSUMPTION OF CERTAIN LIABILITIES

     3.1 Assumption of Four Corners Asset Liabilities by Four Corners. In connection with the
contribution by WFSC of the Four Corners Assets to Four Corners, as set forth in Section
2.1 above, Four Corners hereby assumes and agrees to duly and timely pay, perform and discharge
all of the Four Corners Asset Liabilities, to the full extent that WFSC has been heretofore or
would have been in the future obligated to pay, perform and discharge the Four Corners Asset
Liabilities were it not for such contribution and the execution and delivery of this Agreement;
provided, however, that said assumption and agreement to duly and timely pay, perform and discharge
the Four Corners Asset Liabilities shall not (a) increase the obligation of Four Corners with
respect to the Four Corners Asset Liabilities beyond that of WFSC, (b) waive any valid defense that
was available to WFSC with respect to the Four Corners Asset Liabilities or (c) enlarge any rights
or remedies of any third party under any of the Four Corners Asset Liabilities.

     3.2 General Provisions Relating to Assumption of Liabilities

     (a) .Notwithstanding any other provisions of this Agreement to the contrary, WFSC and Four
Corners agree that Four Corners shall not be obligated to, and shall not, assume any liabilities or
obligations related to the Excluded Assets (collectively, the “Excluded Liabilities”).

     (b) Notwithstanding anything to the contrary contained in this Agreement including, without
limitation, the terms and provisions of this Article III, Four Corners shall not be deemed
to have assumed, and the Four Corners Assets have not been or are not being contributed subject to,
any liens or security interests securing consensual indebtedness covering any of the Four Corners
Assets, and all such liens and security interests shall be deemed to be excluded from the
assumptions of liabilities made under this Article III.

-3-

 

ARTICLE IV

TITLE MATTERS

     4.1 Encumbrances.

     (a) Except to the extent provided in Section 3.2 or any other document executed in
connection with this Agreement, the contribution and conveyance (by operation of Law or otherwise)
of the Four Corners Assets as reflected in this Agreement are made expressly subject to all
recorded encumbrances, agreements, defects, restrictions, and adverse claims covering the Four
Corners Assets (other than liens not shown on any of the schedules to this Agreement) and all Laws,
rules, regulations, ordinances, judgments and orders of governmental authorities or tribunals
having or asserting jurisdiction over the Four Corners Assets and operations conducted thereon or
therewith, in each case to the extent the same are valid and enforceable and affect the Four
Corners Assets, including, without limitation, (i) all matters that a current on the ground survey,
title insurance commitment or policy, or visual inspection of the Four Corners Assets would
reflect, (ii) the applicable liabilities assumed in Article III, and (iii) all matters
contained in the Specific Conveyances.

     (b) To the extent that certain jurisdictions in which the Four Corners Assets are located may
require that documents be recorded in order to evidence the transfers of title reflected in this
Agreement, then the provisions set forth in Section 4.1(a) immediately above shall also be
applicable to the conveyances under such documents.

     4.2 Disclaimer of Warranties; Subrogation; Waiver.

     (a) EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
WITH THIS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS MADE, DOES NOT
MAKE, AND EACH SUCH PARTY SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES,
PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS,
IMPLIED OR STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (A) THE VALUE, NATURE, QUALITY OR
CONDITION OF THE FOUR CORNERS ASSETS INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL, GEOLOGY OR
ENVIRONMENTAL CONDITION OF THE FOUR CORNERS ASSETS GENERALLY, INCLUDING THE PRESENCE OR LACK OF
HAZARDOUS SUBSTANCES OR OTHER MATTERS ON THE FOUR CORNERS ASSETS, (B) THE INCOME TO BE DERIVED FROM
THE FOUR CORNERS ASSETS, (C) THE SUITABILITY OF THE FOUR CORNERS ASSETS FOR ANY AND ALL ACTIVITIES
AND USES THAT MAY BE CONDUCTED THEREON, (D) THE COMPLIANCE OF OR BY THE FOUR CORNERS ASSETS OR
THEIR OPERATION WITH ANY LAWS (INCLUDING WITHOUT LIMITATION ANY ZONING, ENVIRONMENTAL PROTECTION,
POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS), OR (E) THE HABITABILITY,
MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE FOUR
CORNERS ASSETS. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION WITH THIS AGREEMENT, THE PARTIES

-4-

 

ACKNOWLEDGE AND AGREE THAT EACH HAS HAD THE OPPORTUNITY TO INSPECT THE FOUR CORNERS ASSETS,
AND EACH IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE FOUR CORNERS ASSETS AND NOT ON ANY
INFORMATION PROVIDED OR TO BE PROVIDED BY ANY OF THE PARTIES. EXCEPT TO THE EXTENT PROVIDED IN ANY
OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT, NONE OF THE PARTIES IS
LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION
PERTAINING TO THE FOUR CORNERS ASSETS FURNISHED BY ANY AGENT, EMPLOYEE, SERVANT OR THIRD PARTY.
EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS
AGREEMENT, EACH OF THE PARTIES ACKNOWLEDGES THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE
CONTRIBUTION OF THE FOUR CORNERS ASSETS AS PROVIDED FOR HEREIN IS MADE IN AN “AS IS,” “WHERE IS”
CONDITION WITH ALL FAULTS, AND THE FOUR CORNERS ASSETS ARE CONTRIBUTED AND CONVEYED SUBJECT TO ALL
OF THE MATTERS CONTAINED IN THIS SECTION. THIS SECTION SHALL SURVIVE SUCH CONTRIBUTION AND
CONVEYANCE OR THE TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION HAVE BEEN
NEGOTIATED BY THE PARTIES AFTER DUE CONSIDERATION AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND
NEGATION OF ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT
TO THE FOUR CORNERS ASSETS THAT MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR
OTHERWISE, EXCEPT AS SET FORTH IN THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION WITH THIS AGREEMENT.

     (b) To the extent that certain jurisdictions in which the Four Corners Assets are located may
require that documents be recorded in order to evidence the transfers of title reflected in this
Agreement, then the disclaimers set forth in Section 4.2(a) immediately above shall also be
applicable to the conveyances under such documents.

     (c) The contribution of the Four Corners Assets made under this Agreement is made with full
right of substitution and subrogation of Four Corners, and all persons claiming by, through and
under Four Corners, to the extent assignable, in and to all covenants and warranties by the
predecessors-in-title of the parties contributing the Four Corners Assets, and with full
subrogation of all rights accruing under applicable statutes of limitation and all rights of action
of warranty against all former owners of the Four Corner Assets.

     (d) Each of the Parties agrees that the disclaimers contained in this Section 4.2 are
“conspicuous” disclaimers. Any covenants implied by statute or Law by the use of the words
“grant,” “convey,” “bargain,” “sell,” “assign,” “transfer,” “deliver,” or “set over” or any of them
or any other words used in this Agreement or any schedules hereto are hereby expressly disclaimed,
waived or negated.

     (e) Each of the Parties hereby waives compliance with any applicable bulk sales Law or any
similar Law in any applicable jurisdiction in respect of the transactions contemplated by this
Agreement.

-5-

 

ARTICLE V

FURTHER ASSURANCES

     5.1 Further Assurances. From time to time after the date hereof, and without any further
consideration, the Parties agree to execute, acknowledge and deliver all such additional deeds,
assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other
documents, and will do all such other acts and things, all in accordance with applicable Law, as
may be necessary or appropriate (a) more fully to assure that Four Corners own all of the
properties, rights, titles, interests, estates, remedies, powers and privileges granted by this
Agreement, or which are intended to be so granted, (b) more fully and effectively to vest in Four
Corners and their respective successors and assigns beneficial and record title to the interests
contributed and assigned by this Agreement or intended so to be and (c) to more fully and
effectively carry out the purposes and intent of this Agreement.

     5.2 Other Assurances. From time to time after the date hereof, and without any further
consideration, each of the Parties shall execute, acknowledge and deliver all such additional
instruments, notices and other documents, and will do all such other acts and things, all in
accordance with applicable Law, as may be necessary or appropriate to more fully and effectively
carry out the purposes and intent of this Agreement. Without limiting the generality of the
foregoing, the Parties acknowledge that the Parties have used their good faith efforts to attempt
to identify all of the assets being contributed to Four Corners as required in connection with this
Agreement. However, due to the age of some of those assets and the difficulties in locating
appropriate data with respect to some of the assets it is possible that assets intended to be
contributed to Four Corners were not identified and therefore are not included in the assets
contributed to Four Corners. It is the express intent of the Parties that Four Corners own all
assets necessary to operate the assets that are identified in this Agreement and in the
Registration Statement. To the extent any assets were not identified but are necessary to the
operation of assets that were identified, then the intent of the Parties is that all such
unidentified assets are intended to be conveyed to Four Corners. To the extent such assets are
identified at a later date, the Parties shall take the appropriate actions required in order to
convey all such assets to Four Corners. Likewise, to the extent that assets are identified at a
later date that were not intended by the parties to be conveyed as reflected in the Registration
Statement, the Parties shall take the appropriate actions required in order to convey all such
assets to the appropriate party.

ARTICLE VI

POWER OF ATTORNEY

     6.1 WFSC. WFSC hereby constitutes and appoints Four Corners and its successors and assigns,
its true and lawful attorney-in-fact with full power of substitution for it and in its name, place
and stead or otherwise on behalf of WFSC and its successors and assigns, and for the benefit of
Four Corners and its successors and assigns, to demand and receive from time to time the Four
Corners Assets and to execute in the name of WFSC and its successors and assigns, instruments of
conveyance, instruments of further assurance and to give receipts and releases in respect of the
same, and from time to time to institute and prosecute in the names of WFSC for the benefit of Four
Corners as may be appropriate, any and all proceedings at law, in equity or otherwise which Four
Corners and its successors and assigns, may deem proper in order to (a) collect, assert or enforce
any claims, rights or titles of any kind in and to the Four

-6-

 

Corners Assets, (b) defend and compromise any and all actions, suits or proceedings in respect
of any of the Four Corners Assets, and (c) do any and all such acts and things in furtherance of
this Agreement as Four Corners or its successors or assigns shall deem advisable. WFSC hereby
declares that the appointments hereby made and the powers hereby granted are coupled with an
interest and are and shall be irrevocable and perpetual and shall not be terminated by any act of
WFSC or its successors or assigns or by operation of law.

ARTICLE VII

MISCELLANEOUS

     7.1 Order of Completion of Transactions. The transactions provided for in Article II and
Article III of this Agreement shall be completed on the Effective Date in the following order:

     First, the transactions provided for in Article II shall be completed in the order set
forth therein; and

     Second, the transactions provided for in Article III shall be completed in the order
set forth therein.

     7.2 Consents; Restriction on Assignment. If there are prohibitions against or conditions to
the contribution and conveyance of one or more of the Four Corners Assets without the prior written
consent of third parties, including, without limitation, governmental agencies (other than consents
of a ministerial nature which are normally granted in the ordinary course of business), which if
not satisfied would result in a breach of such prohibitions or conditions or would give an outside
party the right to terminate rights of Four Corners to whom the applicable Four Corners Assets were
intended to be conveyed with respect to such portion of the Four Corners Assets (herein called a
“Restriction”), then any provision contained in this Agreement to the contrary
notwithstanding, the transfer of title to or interest in each such portion of the Four Corners
Assets (herein called the “Restriction Asset”) pursuant to this Agreement shall not become
effective unless and until such Restriction is satisfied, waived or no longer applies. When and if
such a Restriction is so satisfied, waived or no longer applies, to the extent permitted by
applicable Law and any applicable contractual provisions, the assignment of the Restriction Asset
subject thereto shall become effective automatically as of the Effective Time, without further
action on the part of any Party. Each of the applicable Parties that were involved with the
conveyance of a Restriction Asset agree to use their reasonable best efforts to obtain on a timely
basis satisfaction of any Restriction applicable to any Restriction Asset conveyed by or acquired
by any of them. The description of any portion of the Four Corners Assets as a “Restriction Asset”
shall not be construed as an admission that any Restriction exists with respect to the transfer of
such portion of the Four Corners Assets. In the event that any Restriction Asset exists, the
applicable Party agrees to continue to hold such Restriction Asset in trust for the exclusive
benefit of the applicable Party to whom such Restriction Asset was intended to be conveyed and to
otherwise use its reasonable best efforts to provide such other Party with the benefits thereof,
and the party holding such Restriction Asset will enter into other agreements, or take such other
action as it may deem necessary, in order to ensure that the

-7-

 

applicable Party to whom such Restriction Asset was intended to be conveyed has the assets and
concomitant rights necessary to enable the applicable Party to operate such Restriction Asset in
all material respects as it was operated prior to the Effective Time.

     7.3 Costs. Four Corners shall pay all sales, use and similar taxes arising out of the
contributions, conveyances and deliveries to be made hereunder, and shall pay all documentary,
filing, recording, transfer, deed, and conveyance taxes and fees required in connection therewith.
In addition, Four Corners shall be responsible for all costs, liabilities and expenses (including
court costs and reasonable attorneys’ fees) incurred in connection with the satisfaction or waiver
of any Restriction pursuant to Section 7.2 to the extent such Restriction was disclosed to
Four Corners on or before the Effective Date.

     7.4 Headings; References; Interpretation. All Article and Section headings in this Agreement
are for convenience only and shall not be deemed to control or affect the meaning or construction
of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and words of similar
import, when used in this Agreement, shall refer to this Agreement as a whole and not to any
particular provision of this Agreement. All references herein to Articles and Sections shall,
unless the context requires a different construction, be deemed to be references to the Articles
and Sections of this Agreement, respectively, and all such Schedules attached hereto are hereby
incorporated herein and made a part hereof for all purposes. All personal pronouns used in this
Agreement, whether used in the masculine, feminine or neuter gender, shall include all other
genders, and the singular shall include the plural and vice versa. The use herein of the word
“including” following any general statement, term or matter shall not be construed to limit such
statement, term or matter to the specific items or matters set forth immediately following such
word or to similar items or matters, whether or not non-limiting language (such as “without
limitation,” “but not limited to,” or words of similar import) is used with reference thereto, but
rather shall be deemed to refer to all other items or matters that could reasonably fall within the
broadest possible scope of such general statement, term or matter.

     7.5 Successors and Assigns. The Agreement shall be binding upon and inure to the benefit of
the Parties hereto and their respective successors and assigns.

     7.6 No Third Party Rights. The provisions of this Agreement are intended to bind the Parties
hereto as to each other and are not intended to and do not create rights in any other person or
confer upon any other person any benefits, rights or remedies and no person is or is intended to be
a third party beneficiary of any of the provisions of this Agreement.

     7.7 Counterparts. This Agreement may be executed in any number of counterparts, all of which
together shall constitute one agreement binding on the parties hereto.

     7.8 Governing Law. This Agreement shall be governed by, and construed in accordance with, the
Laws of the State of Texas applicable to contracts made and to be performed wholly within such
state without giving effect to conflict of law principles thereof, except to the extent that it is
mandatory that the Law of some other jurisdiction, wherein the interests are located, shall apply.

-8-

 

     7.9 Severability. If any of the provisions of this Agreement are held by any court of
competent jurisdiction to contravene, or to be invalid under, the Laws of any political body having
jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate
the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the
particular provision or provisions held to be invalid, and an equitable adjustment shall be made
and necessary provision added so as to give effect to the intention of the Parties as expressed in
this Agreement at the time of execution of this Agreement.

     7.10 Deed; Bill of Sale; Assignment. To the extent required and permitted by applicable Law,
this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of the Four Corners
Assets.

     7.11 Amendment or Modification. This Agreement may be amended or modified from time to time
only by the written agreement of all the Parties hereto and affected thereby.

     7.12 Integration. This Agreement and the instruments referenced herein supersede all previous
understandings or agreements among the Parties, whether oral or written, with respect to its
subject matter. This Agreement and such instruments contain the entire understanding of the Parties
with respect to the subject matter hereof and thereof. No understanding, representation, promise or
agreement, whether oral or written, is intended to be or shall be included in or form part of this
Agreement unless it is contained in a written amendment hereto executed by the Parties hereto after
the date of this Agreement.

-9-

 

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the date
first above written.

	 	 	 	 	 
	 	WILLIAMS FIELD SERVICES COMPANY, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Alan S. Armstrong
 	 
	 	 	Name:  	Alan S. Armstrong 	 
	 	 	Title:  	Senior Vice President
 	 
	 
	 	WILLIAMS FOUR CORNERS LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Alan S. Armstrong
 	 
	 	 	Name:  	Alan S. Armstrong 	 
	 	 	Title:  	Senior Vice President 	 
	 

-10-

 

SCHEDULE 2.1

LIST OF FOUR CORNERS ASSETS

A. Four Corners Assets located in Colorado

Real Property, including fee, leasehold, easements, rights of way, permits, licenses, approvals and similar rights to land and improvements

Manzanares Gas Pipeline Gathering System located in La Plata County, Colorado.

Gathering and processing mainlines and loops

PLA-9 CDP (Central Delivery Point)
 

San Juan Conventional Gas Pipeline Gathering System located in La Plata County, Colorado.

Gathering and processing mainlines and loops

44 CANYON CDP (Central Delivery Point) — (inactive)

ARGENTA CDP

GIANT CDP (inactive)

MCKINZIE CDP (inactive)

SO UTE E CDP

SOUTH IGNACIO CDP

IGNACIO PLANT RECEIPT — meter station

TRUNK J — compressor station

IGNACIO — gas processing plant located in La Plata County, near Durango, Colorado.

 

 

B. Four Corners Assets located in New Mexico

Real Property, including fee, leasehold, easements, rights of way, permits, licenses, approvals and similar rights to land and improvements.

Manzanares Gathering Gas Pipeline System located in San Juan and Rio Arriba Counties, New Mexico

Gathering and processing mainlines and loops

29-6 #2 CDP (Central Delivery Point)

29-6-#3 CDP

29-6 #4 CDP

29-7 #1 CDP

30-5 #1 CDP

31-6 #1 CDP

32-7 #1 CDP

32-8 #1 CDP

32-8 #2 CDP

32-8 #3 CDP

32-9 CDP

ANIMAS (TRUNK X) CDP (retired — partially dismantled)

AZTEC CDP

CARRACAS CDP

CEDAR HILL CDP

COTTONWOOD CDP (retired)

DECKER JUNCTION CDP

EAST NEBU CDP

FRAZIER CDP

HORSE CANYON CDP

MANZANARES CDP

MIDDLE MESA CDP

NAVAJO CDP

PRIMO CDP

PUMP MESA CDP

SIMS MESA CDP

31-6 WPX — compressor station

AZTEC — compressor station

EL CEDRO — compressor station

KERNAGHAN #B-8 — compressor station (retired)

MIRANDA — compressor station

PRITCHARD — compressor station

TRUNK A — compressor station

TRUNK B — compressor station

TRUNK C — compressor station

 

 

LA MAQUINA — meter station

PUMP CANYON DELIVERY — meter station

ESPERANZA — gas treating plant located in Rio Arriba County, New Mexico

MILAGRO — gas treating plant located in San Juan County, New Mexico

San Juan Gas Pipeline Gathering System located in San Juan and Rio Arriba Counties, New Mexico

Gathering and processing mainlines and loops

ROSA #1 CDP (Central Delivery Point)

TEXAKOMA CDP

TRUNK E CDP

TRUNK M CDP

GALLEGOS CANYON — compressor station

GARDNER N-30 — compressor station

HART CANYON — compressor station (retired)

JVA — compressor station (inactive)

LA JARA — compressor station

LAGUNA SECA — compressor station

LATERAL H-21 — compressor station

MARTINEZ DRAW — compressor station

OJITO — compressor station

QUINTANA MESA — compressor station

TRUNK F — compressor station

TRUNK G — compressor station

TRUNK L — compressor station

TRUNK M — compressor station

TRUNK N — compressor station

BMG SAN JUAN — meter station

C13 IGNACIO to MANZANARES — meter station

C5 CONVENTIONAL to MND — meter station

CONV N to MANZ B — meter station

COX OFFLOAD (Exchange Out) — meter station

S86 & TRUNK N to TRUNK S CHECK — meter station

TAPOCITOS EXCHANGE POINT — meter station (inactive)

TENNACO HANSON WELLS — meter station (retired)

TRUNK S — ANNUBAR CHECK — meter station

UNIVERSAL RESOURCES-GRIGSBY WELLS — meter station (retired)

Central dehydrators at Ojito station

 

 

Torre Alta Gas Pipeline Gathering System located in San Juan and Rio Arriba Counties, New Mexico

Gathering and processing mainlines and loops

A RIDGE CDP (Central Delivery Point)

FARNSWORTH CDP

MARCUS CDP

BALLARD — compressor station

BLANCO — compressor station

CHACO — compressor station

COYOTE SPRINGS — compressor station

CRANDELL — compressor station

CROUCH MESA — compressor station

DOGIE — compressor station

FIVE POINTS — compressor station

GLADE — compressor station

HAMPTON — compressor station

HARE — compressor station

HONOLULU — compressor station

HORTON — compressor station

HUERFANO — compressor station (inactive)

K-LEASE — compressor station

K-WELL — compressor station

KEBLAH — compressor station

LACOSA — compressor station

LAWSON STRADDLE — compressor station

LOS MESTENIOS — compressor station

MERIDIAN #5 — compressor station (retired)

NORTH CRANDELL — compressor station

PIPKIN — compressor station

RICHARDSON STRADDLE — compressor station

SIMPSON — compressor station

SNOWSHOE STRADDLE — compressor station

THOMPSON — compressor station

WEST KUTZ — compressor station (retired)

WILD HORSE — compressor station

BARKER DOME/KUTZ CHECK — meter station (retired)

BLANCO-HARE to KEBLAH — meter station

BLANCO-HARE to KUTZ — meter station

CHACO/KEBLAH to KUTZ II — meter station

CHACO/KUTZ I — meter station

CHACO/KUTZ I BYPASS — meter station

 

 

FARMINGTON BORDER STATION 2 — meter station (inactive)

GREER JICARILLA SALES POINT — meter station (retired)

JICARILLA MAINLINE — meter station

LA MANGA — meter station

LARGO GATHERING SYSTEM CHECK — meter station

LINDA NYE #1 to PNM CHECK — meter station

LOWERY GATHERING CHECK — meter station

MCCRODEN CHECK — meter station

SHIPROCK MAKE UP — meter station (retired)

KUTZ — gas processing plant located in Bloomfield, New Mexico

LYBROOK — gas processing plant located in Lybrook, New Mexico

C. Miscellaneous

1. Any and all buildings and improvements; meter and regulating equipment, inventory and
facilities; compressor and meter equipment;
portable equipment and tools; boilers and associated equipment; water treating equipment;
cooling towers; telecommunication facilities and equipment; machinery; equipment;
pipe and pipe racks; steel; tools; parts inventory; separators and scrubbers; debutanizers;
depropanizers; stablizers; demethanizers; generators; dehydrators; rectifiers; storage and
processing tanks; cathodic protection devices; tanks, reservoirs and pits; pig assemblies and
equipment; pumps, drivers and motors; fire and safety equipment; gas analyzing equipment;
telemetering equipment; office buildings, equipment and furnishings; computer software, hardware
and infrastructure; gas control system; vehicles; and all other tangible personal property owned by
WFS and located in the states of Colorado and New Mexico.

2. All gas gathering, processing, dehydrating and treating agreements, contracts, operating
agreements, and other legally binding rights and obligations of WFS related to services to be
provided by WFS at facilities owned and operated in the states of Colorado and New Mexico.

3. All permits, licenses, certificates, authorizations, registrations, orders, waivers, variances
and approvals granted to WFS or its respective predecessors in interest to the extent the same are
assignable and which relate to WFS’ services to be provided by WFS at facilities owned and operated
in the states of Colorado and New Mexico.

D. Contracts

1. Every contract, agreement or other arrangement or understanding of any kind relating to the
operation of the foregoing facilities and pipelines described in this Schedule 2.1,
including, without limitation, the Material Contracts listed on Disclosure Schedule 3.13 of
the Purchase and Sale Agreement, dated April 6, 2006, by and among Williams Energy Services, LLC,
Williams Field Services Group, LLC, Williams Field Services Company, LLC, Williams Partners GP LLC,
Williams Partners L.P. and Williams Partners Operating LLC.

 

 

SCHEDULE 2.2

LIST OF EXCLUDED ASSETS

	1.	 	An approximate 21.65 acre parcel of land and appurtenances formerly referred to as the
Ignacio Field Office, located in the Northeast quarter of the Northwest quarter of Section
17-T33N-R7W, LaPlata County, Colorado.

	2.	 	All assets that formed a part of the former La Maquina treating plant, and related facilities
and equipment located upon an approximate 56.48 acre parcel of land located in Sections 27 and
28 in T31N, R10W, San Juan County, New Mexico.exv10w28

 

Exhibit 10.28

SUBLEASE

     THIS SUBLEASE (“Sublease”) is made and entered into as of March 23, 2006 by and between
Continental Casualty Company, an Illinois insurance company with its principal office located at
CNA Center, 333 South Wabash Avenue, Chicago, Illinois 60685 (“Sublessor”), and Global Employment
Solutions, Inc., a Colorado corporation with its principal office located at 10375 Park Meadows
Drive, Suite 375, Littleton, Colorado 80124 (“Sublessee”).

W I T N E S S E T H:

     WHEREAS, Sublessor and TR ParkRidge Four, a Delaware corporation with its principal office
located at C/O KBS Realty Advisors, 620 Newport Center Drive, Suite 1300, Newport Beach, California
92660, successor in interest to ParkRidge Six, LLC, a Delaware limited liability company (“Prime
Lessor”), entered into that certain Lease Agreement dated as of November 22, 2002 (“Prime Lease”),
a copy of which has been provided by Sublessor to Sublessee;

     WHEREAS, pursuant to the Prime Lease, Sublessor leases twenty seven thousand four hundred
twenty four (27,424) rentable square feet of space (“Premises”) on the 3rd Floor of the building
located at 10375 Park Meadows Drive, Littleton, Colorado 80124 (“Building”) for a term that
expires on April 30, 2010;

     WHEREAS, Sublessee desires to sublet that portion of the Premises consisting of four thousand
two hundred sixty four (4,264) rentable square feet located in the southeast corner on the 3rd
Floor of the Building and further depicted on the floor plan attached hereto and incorporated
herein as Exhibit A.1 (“Subleased Premises”); and

     WHEREAS, Sublessor desires to sublease the Subleased Premises to Sublessee, subject to the
terms and conditions set forth in this Sublease, all of which are acceptable to Sublessee;

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, Sublessor and Sublessee agree as follows:

     1. Recitals; Capitalized Terms. The recitals set forth above are integral parts of this
Sublease and shall be deemed to be a part hereof. Unless otherwise expressly provided herein,
capitalized terms which are used in this Sublease shall have the same meanings ascribed thereto in
the Prime Lease.

     2. Subleased Premises. Sublessor hereby subleases to Sublessee and Sublessee hereby accepts
from Sublessor the Subleased Premises, subject to the Prime Lease, upon the terms, covenants and
conditions of this Sublease.

     3. Term. The term (“Term”) of this Sublease shall commence on or about April 22, 2006
(“Commencement Date”) and shall expire at 5:00 p.m. on April 29, 2010 (“Expiration Date”) or the
sooner termination hereof in accordance with the terms and conditions of this Sublease.
Notwithstanding any provision to the contrary in this Sublease or the Prime Lease, in the event the
Expiration Date coincides with the end of the term under the Prime Lease, the Expiration Date shall
be the calendar day immediately preceding the end of the term under the Prime Lease. Within ten
(10) business days after the Commencement Date, Sublessor and Sublessee shall execute a
commencement date agreement in the form attached hereto as Exhibit B and made a part hereof.

     4. Use. The Subleased Premises shall be used and occupied by Sublessee solely for general

 

 

office activities in compliance with this Sublease, the Prime Lease, and all applicable laws, and for
no other purpose.

     5. Rent. Sublessee hereby covenants and agrees to pay to Sublessor base rent (“Base Rent”) as
set forth in the following rent schedule table:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Months	 	Annual Base Rent per RSF	 	Annual Base Rent	 	Monthly Installment
	4/22/2006 –
10/31/2007
	 	$	12.50	 	 	$	53,300.00	 	 	*$	4,441.67	 
	11/1/2007 –
10/31/2008
	 	$	12.80	 	 	$	54,579.20	 	 	$	4,548.27	 
	11/1/2008 –
10/31/2009
	 	$	13.10	 	 	$	55,858.40	 	 	$	4,654.87	 
	11/1/2009 – 4/29/2010
	 	$	13.40	 	 	$	57,137.60	 	 	$	4,761.47	 

 

			
	* Base Rent shown in the table shall be abated for the first six (6) months and nine (9) days
of the Term provided that Sublessee is not in default under this Sublease during the rent abatement
period.

     Such payments shall commence on November 1, 2006 (“Rent Commencement Date”) in advance on the
first day of each month of the Term, without notice, demand, deduction or set-off whatsoever, and
shall be payable to Sublessor at its office set forth below in Section 16 or as otherwise directed
by Sublessor from time to time by written notice to Sublessee. Base Rent for any period during the
Term less than one calendar month shall be prorated based on a three hundred sixty-five (365) day
year. If the Rent Commencement Date or the Expiration Date is not the first or last day of a
calendar month, respectively, the first or the last (as the case may be) Base Rent payment shall be
pro-rated. The first payment of Base Rent shall accompany Sublessee’s execution and delivery of
this Sublease. The term “Rent” shall refer to Base Rent and any other amounts owing by Sublessee to
Sublessor under the provisions of this Sublease including, without limitation, the provisions of
Section 6(f).

     6. Prime Lease.

2

 

     (a) Sublease Subordinate to Prime Lease. This Sublease is subject to and subordinate to the
Prime Lease and to all other matters and interests to which the Prime Lease is or shall be
subordinate. Sublessee represents and warrants that it has read and is familiar with the terms of
the Prime Lease and acknowledges and agrees that no provisions of this Sublease shall be deemed to
grant Sublessee any rights greater than those accorded to Sublessor as tenant or lessee under the
Prime Lease.

     (b) Description of Parties’ Obligations. In furtherance of the provisions of this Section 6,
the parties hereby confirm to one another that it is not practical in this Sublease to enumerate
and to allocate specifically all of the rights and obligations of the parties under the Prime
Lease. Accordingly, in order to afford Sublessee the benefits of this Sublease and those
provisions of the Prime Lease which, by their nature, are intended to benefit the party in
possession of the Subleased Premises, and in order to protect Sublessor against a default by
Sublessee which might, in turn, cause a default by Sublessor under the Prime Lease, the parties
hereby agree to the general allocation of rights, duties, obligations and responsibilities set
forth in this Section 6. In the event of any conflict between this Sublease and the Prime Lease,
the terms and conditions of this Sublease shall control vis a vis Sublessor and Sublessee.

     (c) Sublessor’s Obligations. Provided that Sublessee shall timely pay all Rent when and as
due under this Sublease, Sublessor shall pay, when and as due, all base rent, additional rent and
other charges payable by Sublessor to Prime Lessor under the Prime Lease. Further, except as
otherwise expressly provided herein and so long as Sublessee is not in default hereunder, Sublessor
(1) shall not, by its act or omission to act, cause a default under the Prime Lease, (2) shall not,
without the prior written approval of Sublessee, which approval shall not be unreasonably withheld,
conditioned or delayed, terminate the Prime Lease or amend, revise or waive any provision of the
Prime Lease if the foregoing might have a material adverse effect upon Sublessee’s use or occupancy
of the Subleased Premises, and (3) shall perform its covenants and obligations under the Prime
Lease which do not require for their performance possession of the Subleased Premises and which are
not otherwise to be performed hereunder by Sublessee on behalf of Sublessor.

     (d) Sublessee’s Obligations. Subject to the provisions of Section 6(c), Sublessee hereby
agrees that it will not, by its act or omission to act, cause a default under the Prime Lease.
Further, notwithstanding any provision in this Sublease or the Prime Lease to the contrary,
Sublessee shall have no right, power or authority, without the prior written approval of Sublessor,
to amend, revise, terminate or waive any provision of, or otherwise materially adversely affect
Sublessor’s interests, rights or remedies under, the Prime Lease. Except as otherwise expressly
provided herein, (1) Sublessee shall perform all affirmative covenants and shall refrain from
performing any act which is prohibited by the negative covenants of the Prime Lease where the
obligation to perform or refrain from performing is by its nature imposed upon the party in
possession of the Subleased Premises (e.g., maintenance and repair of the Subleased Premises), (2)
if practicable, Sublessee shall perform affirmative covenants which are also covenants of Sublessor
under the Prime Lease at least five (5) days prior to the date when Sublessor’s performance is
required under the Prime Lease, and (3) if Sublessee fails to fulfill its obligations under this
Section 6(d), Sublessor shall have the right to enter the Subleased Premises to cure any such
failure or default by Sublessee.

     (e) Rights to Prime Lessor’s Obligations. Sublessor hereby grants Sublessee the right to
receive all of the services and benefits with respect to the Subleased Premises which are to be
provided by Prime Lessor under the Prime Lease. Notwithstanding the foregoing, Sublessee hereby
acknowledges and agrees that: (1) no representation or warranty made by Prime Lessor in the Prime
Lease shall be deemed to be a representation or warranty made by Sublessor to Sublessee hereunder;
(2) Sublessor shall have no duty to perform any obligations of Prime Lessor which are by their
nature the obligation of an owner or manager of real property and Sublessee shall look solely to
Prime Lessor for the performance thereof, including,
without limitation, the provision of services, maintenance, repairs, compliance with

3

 

legal requirements and the removal of hazardous materials; (3) Sublessor shall have no responsibility for
or be liable to Sublessee for any default, failure or delay on the part of Prime Lessor in the
performance or observance by Prime Lessor of any of its obligations under the Prime Lease, nor
shall such default by Prime Lessor affect this Sublease or waive or defer the performance of any of
Sublessee’s obligations hereunder except to the extent that such default by Prime Lessor excuses
performance by Sublessor under the Prime Lease; and (4) notwithstanding the foregoing provisions of
subsection (3), provided that Sublessee pays all costs and expenses of Sublessor, provides security
reasonably satisfactory to Sublessor in connection with such payments, and indemnifies and holds
Sublessor harmless in connection therewith, Sublessor shall, upon written notice from Sublessee,
reasonably cooperate with Sublessee in obtaining Prime Lessor’s performance of its obligations
under the Prime Lease, including, without limitation, making formal demand upon Prime Lessor and
taking appropriate legal action to enforce the Prime Lease.

     (f) Additional Prime Lessor Services. Sublessor shall reasonably cooperate with Sublessee to
cause Prime Lessor to provide services required by Sublessee in addition to those otherwise
required to be provided by Prime Lessor under the Prime Lease. Within ten (10) days after
receiving an invoice therefor, Sublessee shall pay the amount of Prime Lessor’s charge for such
services to either Sublessor or directly to Prime Lessor, as so directed by Sublessor. If at any
time a charge for such additional services is attributable to the use of such services both by
Sublessor and Sublessee, the cost thereof shall be equitably divided between Sublessor and
Sublessee. As set forth above in Section 5, the amounts payable under this Section 6(f) shall
constitute Rent.

     (g) Exclusions of Certain Provisions of Prime Lease. Notwithstanding any provision herein to
the contrary, Sublessee shall not have any rights or obligations under the following provisions of
the Prime Lease: Section 2.2 (Additional Rent); Section 8.7 (Landlord’s Default) (except as
otherwise set forth in Section 6(e) above); Section 9.1 (Assignment or Sublease by Tenant); Section
13.1 (Notices) — Landlord’s notice address only; Exhibit D (Work Letter) (except for Schedule D-1
(Building Standard Improvements)); Exhibit J (Renewal Option); Exhibit K (Expansion Rights);
Exhibit L (Option to Terminate); Exhibit M (Antenna License).

     Notwithstanding anything contained herein to the contrary, Sublessor hereby waives its rights
under Exhibit J (Renewal Option) as to the Subleased Premises. Further, in the event Sublessee
desires to directly negotiate a lease with Prime Lessor for the Subleased Premises prior to the
expiration of the Term of this Sublease, Sublessor shall engage in good faith efforts not to
interfere in such negotiations to the extent such efforts do not detrimentally affect Sublessor
from exercising its rights under the Prime Lease or Sublease, nor prevent Sublessor from fulfilling
its duties or obligations under the Prime Lease or Sublease.

     (h) Assignment, Subletting or Other Transfer by Sublessee. Sublessee shall have the
right to assign this Sublease or to sublet the Subleased Premises, in whole or in part, so long as
it obtains the prior written consent of Sublessor, which consent shall not be unreasonably
withheld, conditioned or delayed, and the prior written consent of Prime Lessor, which consent may
be granted or withheld as provided in the Prime Lease Further, Sublessee shall not permit the
Subleased Premises, the Premises or the Building to become subject to any mechanics’, laborers’ or
materialmen’s liens on account of labor or material furnished or claimed to have been furnished to
Sublessee or work performed or claimed to have been performed on the Subleased Premises. Sublessor
may, however, assign its interest under the Prime Lease as permitted by the terms and conditions
thereof, and upon such assignment, Sublessor shall be released from all of its covenants and
obligations hereunder.

     (i) Shortened Time Limits. Time is of the essence of this Sublease. Except as otherwise
expressly set forth herein or in the event of an emergency, the time limits contained in the Prime
Lease for the giving of notices, making payments or demands or performing of any act, condition or
covenant by Sublessor as the tenant or lessee thereunder, are hereby changed for the purposes of
this Sublease by

4

 

shortening the same in each instance by ten (10) calendar days so that Sublessee shall have a
lesser time to observe or perform hereunder than Sublessor has under the Prime Lease. If such time
periods are ten (10) calendar days or less, however, the periods applicable to Sublessee shall be
reduced in half.

     (j) Rights Afforded to Sublessor. Sublessor shall be entitled to the same access to the
Subleased Premises as Prime Lessor has to the Premises pursuant to the Prime Lease and to all other
rights and remedies which Prime Lessor has under the Prime Lease with respect to Sublessor.
Accordingly, Sublessee shall not change the locks to the Subleased Premises unless it provides
Sublessor with two (2) sets of copies thereof (one set of which shall be provided to Prime Lessor).
Further, wherever the Prime Lease requires the consent of Prime Lessor, the consent of Sublessor
shall also be required. If Sublessee fails to remit any payments when due, Sublessee shall further
become obligated to remit to Sublessor any and all late charges and other such fees as set forth in
the Prime Lease.

     7. Prime Lessor’s Consent to Sublease. This Sublease and the obligations of the parties
hereunder are expressly conditioned upon Prime Lessor’s consent hereto in accordance with the Prime
Lease. Sublessee agrees to furnish to Sublessor such information as may be reasonably necessary to
obtain such consent, and to enter into such agreements among Prime Lessor, Sublessor and Sublessee
as Prime Lessor may reasonably require. Any delay in Prime Lessor’s furnishing such consent shall
not postpone or extend the Expiration Date. In the event such consent is not granted within
fifteen (15) business days after the mutual execution of this Sublease, the following shall occur:
(a) this Sublease shall terminate and be of no further force or effect; (b) Sublessee shall
immediately quit and vacate the Subleased Premises if it has already taken possession thereof; (c)
Sublessor shall return the Security Deposit further described in Section 15, if any, as well as any
amounts remitted by Sublessor pursuant to Section 5; and (d) except as provided in this sentence,
Sublessor and Sublessee shall have no further obligation or liability under this Sublease.

     8. Defaults and Remedies.

     (a) Sublessee Defaults. Sublessee shall be in default of this Sublease if: (1) Sublessee
fails to timely pay when due any amounts required to be paid by Sublessee hereunder; (2) Sublessee
fails to perform or comply with any other covenant of this Sublease or the Prime Lease required to
be performed by Sublessee or with which Sublessee must comply, and such failure continues uncured,
after written notice thereof to Sublessee, for the applicable period specified in Section 6(i) for
curing any such failure; (3) Sublessee is declared insolvent by law, an assignment of Sublessee’s
property is made for the benefit of creditors, a receiver is appointed for Sublessee or Sublessee’s
property, or an involuntary petition is filed against Sublessee in bankruptcy which is not
dismissed within thirty (30) days of filing; or (4) Sublessee vacates or abandons the Subleased
Premises, or any substantial portion thereof, during the Term.

     (b) Prime Lessor Claims. If Prime Lessor shall claim or otherwise allege in writing that a
use of, action or inaction involving, or other circumstances concerning, the Subleased Premises is
in violation of any provision of the Prime Lease or may become a default under the Prime Lease,
then Sublessee shall, promptly after notice from Sublessor or Prime Lessor, cease such use or
action, or take such action or cause such circumstances to be changed so that the basis or alleged
basis for such claim or allegation shall no longer exist. The provisions of this Section 8(b)
shall be in addition to Sublessor’s other rights and remedies hereunder, under the Prime Lease, and
at law or in equity.

     (c) Sublessor Remedies. Upon the occurrence of a default by Sublessee under this Sublease,
and in addition to all of the rights and remedies available to Sublessor pursuant to law or in
equity: (1) Sublessor shall have the same rights and remedies with respect to such default by
Sublessee as Prime Lessor has with respect to a breach of the Prime Lease; (2) Sublessor shall have
the right to terminate this Sublease and to re-enter and repossess the Subleased Premises without
prejudice to any remedies for damages, including, without limitation, for accrued unpaid Rent; and
(3) Sublessor may terminate

5

 

Sublessee’s right to possession of the Subleased Premises without terminating this Sublease or
releasing Sublessee from any of its obligations hereunder, including, without limitation, the
obligation to pay Rent, whereupon the right of Sublessee to possession of the Subleased Premises
shall cease. In the event Sublessor terminates Sublessee’s right to possession pursuant to
subsection (3), Sublessor shall have the right to relet the Subleased Premises, and, at Sublessee’s
cost and expense, change the locks and or other entry devices of the Subleased Premises, make
repairs, alterations and additions in or to the Subleased Premises, and redecorate the same to the
extent deemed necessary by Sublessor. Sublessee shall pay such cost and expense on demand. The
rights and remedies afforded to Sublessor pursuant to this Sublease, the Prime Lease, at law or in
equity, are cumulative and not exclusive. Further, the failure of Sublessor to insist upon the
strict performance of any provision of this Sublease or the Prime Lease, or to exercise any right
or remedy hereunder or available at law or in equity, shall under no circumstances be construed as
a waiver or relinquishment of any provision, right or remedy.

     9. As Is; Alterations.

     (a) Condition of Subleased Premises. Sublessee agrees to accept the Subleased Premises in
their “AS IS” condition at the time possession thereof is delivered to Sublessee, except for the
construction and installation of the demising wall and two ingress/egress doors, as depicted on
Exhibit A.2 attached hereto and incorporated herein, which shall be completed by Sublessor
at its sole cost and expense. Except as expressly set forth in this Sublease, Sublessor shall have
no obligation to perform any other alterations, work or repairs (including, without limitation, any
electrical work or other work necessary to make the Subleased Premises comply with laws) or pay any
sums to Sublessee in order to prepare the Subleased Premises for Sublessee’s occupancy thereof.
Sublessee acknowledges that no representations with respect to the condition of the Subleased
Premises, or with respect to the condition of any fixtures, equipment, furnishings, installations,
or systems therein contained or otherwise connected thereto, have been made to Sublessee by
Sublessor or any other party.

     (b) Initial Alterations. Sublessee desires certain improvements and alterations (the “Initial
Alterations”) to the Subleased Premises, which are outlined on Exhibit A.3 attached hereto
and incorporated herein and which have been approved by Sublessee, Sublessor and Prime Lessor.
These Initial Alterations shall be: (i) at the sole cost and expense of Sublessee; (ii) performed
in full compliance with the applicable provisions of the Prime Lease and in full compliance with
all applicable laws; and (ii) performed during regular business hours or after hours, as determined
by Sublessor in its sole discretion. Further, Sublessee shall indemnify and hold Sublessor
harmless from and against liability, loss, cost, damage, liens and expenses imposed on Sublessor
arising out of the performance of Initial Alterations by Sublessee. In connection with Sublessor’s
approval of any Initial Alterations, Sublessor shall advise Sublessee in writing if Sublessee is
required to remove the Initial Alterations at the end of the Term, to restore the Subleased
Premises to the condition existing prior to the making of the Initial Alterations, and to repair
any damage occasioned by such removal or restoration, all at Sublessee’s sole cost and expense.

     (c) Subsequent Alterations. If Sublessee desires to perform, or cause to be performed, any
installations, additions, improvements, alterations or other work (each, a “Subsequent Alteration”
and collectively, the “Subsequent Alterations”) to all or any part of the Subleased Premises, it
may only do so with the prior written approval of Sublessor and, to the extent required under the
Prime Lease, the prior written approval of Prime Lessor. If so approved, all Subsequent
Alterations shall be performed in full compliance with the applicable provisions of the Prime Lease
and in full compliance with all applicable laws. Further, Sublessee shall indemnify and hold
Sublessor harmless from and against liability, loss, cost, damage, liens and expenses imposed on
Sublessor arising out of the performance of Subsequent Alterations by Sublessee. Any Subsequent
Alterations shall be at the sole cost and expense of Sublessee and, except for Sublessee’s moveable
furniture and trade fixtures, shall become part of the Subleased Premises and belong to Sublessor.
In connection with Sublessor’s approval of any Subsequent Alterations, Sublessor shall advise
Sublessee in writing if Sublessee is required to remove the

6

 

Subsequent Alterations at the end of
the Term, to restore the Subleased Premises to the condition existing prior to the making of
the Alterations, and to repair any damage occasioned by such removal or restoration, all at
Sublessee’s sole cost and expense.

     10. Surrender. Upon the expiration or earlier termination of the Term, Sublessee shall
vacate, surrender and deliver the Subleased Premises to Sublessor in the same condition as of the
Commencement Date, ordinary wear and tear excepted, provided that Sublessee repair any damage to
the Subleased Premises as a result of the removal of its personal property and any Alterations and
Subsequent Alterations required to be removed pursuant to Section 9(b) and 9(c). In the event
Sublessee fails to comply with the foregoing removal obligations or upon Sublessee being
dispossessed by process of law or otherwise, any such property shall be deemed conclusively to be
abandoned and Sublessor may retain, sell, store, destroy or otherwise dispose of the same as
Sublessor so elects in its sole reasonable discretion upon ten (10) days’ prior written notice to
Sublessee. Sublessee shall pay Sublessor on demand any reasonable out-of-pocket expenses incurred
by Sublessor in the removal of such property, including, without limitation, the cost of repairing
any damage to the Building caused by the removal of such property and storage charges (if Sublessor
elects to store such property). Further, in the event the end of the Term coincides with the end
of the term under the Prime Lease, Sublessee shall provide Sublessor with reasonable access to the
Subleased Premises to allow Sublessor to fulfill its obligations under the Prime Lease, including,
without limitation, removing any Alterations and Subsequent Alterations existing in the Subleased
Premises prior to the Commencement Date and Sublessee shall otherwise reasonably cooperate with
Sublessor in connection with the foregoing. Sublessee’s obligations under this Section 10 shall
survive the expiration or earlier termination of this Sublease.

     11. Holdover. If Sublessee remains in possession of the Subleased Premises after expiration
or earlier termination of the Term, Sublessee shall be deemed to be occupying the Subleased
Premises as a tenant at the sufferance of Sublessor, subject to all of the provisions of this
Sublease, except that for each month or partial month in which Sublessee holds over, Rent for such
month or portion thereof shall be one hundred fifty percent (150%) of the amount of Rent in effect
during the last month of the Term without apportionment for any partial month; in the event the
expiration or earlier termination of the Term coincides with the expiration of the term under the
Prime Lease, however, Sublessee shall remit the greater of 150% of the Rent then in effect or the
amounts owing under the Prime Lease. Additionally, Sublessee agrees to indemnify Sublessor for any
and all loss, damage, cost, expense and liability (including, without limitation, attorneys’ fees,
court costs and consequential damages) incurred by Sublessor in connection with Sublessee’s
holdover at the Subleased Premises. No provision in this Section 11 shall: (a) be deemed to be a
consent by Sublessor to any holdover by Sublessee; (b) preclude or exclude Sublessor from
exercising its right of re-entry; or (c) be deemed to be a waiver of any other rights or remedies
which Sublessor may have available hereunder, under the Prime Lease, at law or in equity.

     12. Damage by Fire or Other Casualty; Condemnation. This Sublease shall automatically
terminate in the event of a termination of the Prime Lease by either Sublessor or Prime Lessor by
reason of fire, casualty, condemnation or eminent domain affecting the Premises or the Building.
Notwithstanding any provision to the contrary contained herein or in the Prime Lease, in the event
that the Building, the Premises, the Subleased Premises, or any portion of any of the foregoing is
damaged or destroyed on account of fire or other casualty or taken under the power of condemnation
or eminent domain, Sublessee shall have no right to: (a) terminate this Sublease as to all or any
part of the Subleased Premises; or (b) receive an abatement of Rent, although in the event that
Sublessor receives an abatement of its rent obligations in such circumstances, Sublessee shall be
entitled to a corresponding proportionate abatement of its Rent obligations under this Sublease.

     13. Indemnity. Sublessee shall defend, indemnify and hold Sublessor, along with Sublessor’s
ultimate parent company CNA Financial Corporation, all subsidiaries and affiliates of CNA Financial
Corporation, and the officers, directors, shareholders, agents, servants representatives, and
employees of

7

 

all the foregoing entities, harmless from and against any and all claims, losses, demands, actions,
causes of action, obligations, liabilities, suits, costs and expenses (including attorneys’ fees)
resulting from any failure by Sublessee to perform or observe any provision hereof or of the Prime
Lease, from any misrepresentation by Sublessee herein, from the use or occupancy of the Subleased
Premises by Sublessee or its agents, employees, contractors, licensees, or invitees, or from the
gross negligence, willful misconduct, or violation of law by Sublessee or its agents, employees,
contractors, or licensees or invitees. Sublessee’s obligations under this Section 13 shall survive
the expiration or earlier termination of this Sublease.

     14. Insurance. Sublessee shall procure and maintain, at its own cost and expense, such
liability insurance as is required to be carried by Sublessor under the Prime Lease naming Prime
Lessor in the manner required therein. Further, Sublessee shall name Sublessor, along with
Sublessor’s ultimate parent company CNA Financial Corporation, all subsidiaries and affiliates of
CNA Financial Corporation, and the officers, directors, agents, servants, representatives, and
employees of all the foregoing entities, in such liability insurance policy as an additional
insured for any and all liability occurring at any time arising out of or incidental to this
Sublease. Such insurance shall include, but shall not be limited to, commercial general liability
insurance which shall be written to include bodily injury, property damage, personal injury,
advertising liability, products and completed operations liability, and contractual liability (“CGL
Insurance”). Such insurance afforded to Prime Lessor and Sublessor shall be primary insurance and
any other valid insurance existing for Prime Lessor’s and/or Sublessor’s benefit shall be excess of
such primary insurance. Sublessee shall obtain such endorsement to its policy of CGL Insurance as
is necessary to cause such policy to comply with the foregoing requirement. In addition, Sublessee
shall procure and maintain, at its own cost and expense, such property insurance as is required to
be carried by Sublessor under the Prime Lease to the extent such property insurance pertains to the
Subleased Premises. If the Prime Lease requires Sublessor to insure Alterations, Sublessee shall
insure such Alterations which are located in the Subleased Premises, as well as Alterations
performed by Sublessee. Prior to the Commencement Date, Sublessee shall furnish to Sublessor a
certificate of Sublessee’s insurance required hereunder. All such certificates will contain no less
than thirty (30) days’ prior written notice of cancellation, non-renewal or material change in
coverage by certified or registered mail, return receipt requested. Provided such waiver shall not
invalidate the waiving party’s property insurance, each party hereby waives claims for property
damage against the other and Sublessee hereby waives claims against Prime Lessor if and to the
extent that Sublessor waives such claims against Prime Lessor under the Prime Lease for property
damage to the Subleased Premises or its contents.

     15. Security Deposit. Sublessee hereby covenants and agrees to pay Sublessor a deposit in
the amount of Eight thousand eight hundred eighty three and 34/100 dollars ($8,883.34) to secure
the performance by Sublessee of its obligations hereunder (“Security Deposit”). The Security
Deposit shall be payable upon Sublessee’s execution and delivery of this Sublease to Sublessor.
Upon any default by Sublessee hereunder, Sublessor may, without prejudice to any other rights or
remedies, use the Security Deposit to pay any due but unpaid amounts of Rent, as well as any other
cost, damage or liability incurred by Sublessor in connection with such default. Provided that
Sublessee complies with all terms and conditions of this Sublease, any remaining balance of the
Security Deposit shall be returned to Sublessee, without interest, on the expiration or earlier
termination of the Term. The Security Deposit shall not be considered an advance payment of Rent
or a measure of Sublessor’s damages in the event of a default hereunder by Sublessee.
Notwithstanding the foregoing, if Rent is paid when due during the first twelve months of the Term,
then Sublessor shall apply Four Thousand Four Hundred Forty One and 67/100 dollars ($4,441.67) of
the Security Deposit towards Base Rent due for the month of November, 2008.

     16. Notices. Unless otherwise expressly provided herein, any notice, request, communication,
demand or other correspondence which either party may or must give to the other hereunder shall be
in writing and delivered personally, by nationally recognized overnight commercial courier, by
facsimile transmission (provided that a copy is contemporaneously sent by nationally recognized
overnight

8

 

commercial courier), or by United States certified or registered mail, return receipt
requested, postage prepaid, and addressed as follows:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	If to Sublessor:	 	 	 	If to Sublessee: 
	 

	 	 	 	Continental Casualty Company
	 	 	 	 	 	Global Employment Solutions, Inc.CNA
	Center –
44th Floor	 	10375 Park Meadows Drive, Suite 375
	 	 	333 South Wabash Avenue	 	 	 	Littleton, Colorado 80124
	 	 	Chicago, Illinois 60685	 	 	 	Attention: Dan Hollenbach, CFO Attention:
	VP, Corporate Real Estate	 	Facsimile No.: (303) 216-9533
	 	 	Facsimile No.: (312) 817-2272	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Rent Payment Address:	 	 	 	 	 	 
	 	 	CCC Corporate Real Estate	 	 	 	 	 	 
	 	 	21897 Network Place	 	 	 	 	 	 
	 	 	Chicago, Illinois 60673-1218	 	 	 	 	 	 
	 	 	Attention: CRE-CO07 Littleton Sublease	 	 	 	 	 	 

If Sublessor or Sublessee receives any written notice or demand from Prime Lessor relating to the
Subleased Premises or the Prime Lease, such party shall promptly give a copy thereof to the other
party. Either party may, by written notice, direct that future notices or demands be sent to a
different address. Notices shall be deemed given when received if delivered personally, by
nationally recognized overnight commercial courier, or by facsimile (provided that a copy is
contemporaneously sent by nationally recognized overnight commercial courier), or on the third
(3rd) business day following the mailing thereof in the United States mail as above
described.

     17. Brokers. Sublessee represents and warrants to Sublessor that neither it, nor its
officers, employees or agents, has acted so as to entitle any brokers, finders, consultants or
other persons or entities to commissions in connection with this Sublease except
Liberty-Greenfield, LLLP (“Sublessee’s Broker”). Similarly, Sublessor represents and warrants to
Sublessee that neither it, nor its officers, employees or agents, has acted so as to entitle any
brokers, finders, consultants or other persons or entities to commissions in connection with this
Sublease except The John Buck Company (“Sublessor’s Broker”). Sublessor is responsible for payment
of a commission to Sublessor’s Broker, which commission shall be shared with Sublessee’s Broker as
a cooperating broker in accordance with a separate agreement between Sublessee’s Broker and
Sublessor’s Broker. Sublessee and Sublessor shall each indemnify and hold the other harmless from
any and all loss, damage, cost, expense and liability (including, without limitation, attorneys’
fees) arising from a breach of its foregoing representation and warranty.

     18. Representations and Warranties; Survival of Obligations and Remedies. Sublessor and
Sublessee each hereby represent, warrant and covenant to one another that it has full power and
authority to enter into this Sublease and to perform its obligations hereunder in accordance with
its terms, that it is duly authorized to conduct business in the state in which the Building is
located, that it has duly authorized, executed and delivered this Sublease, and that this Sublease
constitutes a legal, valid and binding obligation. Sublessee further represents, warrants and
covenants to Sublessor that any and all balance sheets, net worth statements and other financial
statements and data which it delivered to Sublessor in conjunction with this Sublease, whether
prior or subsequent to Sublessor’s execution of this Sublease, are true and complete, the
information contained therein fairly and accurately represents Sublessee’s financial condition as
of the dates set forth therein and as of the dates of delivery thereof to Sublessor, and since the
dates thereof, there has been no material adverse change in such financial condition.
Notwithstanding any provision herein to the contrary, any liability or obligation of Sublessor or
Sublessee arising during or accruing with respect to the Term shall survive the Expiration Date or
earlier termination of this Sublease, including, without limitation, obligations and liabilities
relating to (a) the payment of Rent and any other
amounts owing by Sublessee with respect to this Sublease, (b) the

9

 

condition of the Subleased Premises and the removal of Sublessee’s property, and (c) the indemnity and hold harmless
provisions in this Sublease.

     19. Choice of Law; Severability. In the event the Prime Lease does not contain a choice of
law provision, this Sublease shall be governed by and construed in accordance with the laws of the
state in which the Building is located without regard to rules for choice of law or conflicts of
laws. Further, in the event that any of the provisions of this Sublease is held to be invalid or
unenforceable, such provision shall be deemed to be severed from this Sublease and shall not impair
or affect in any manner the validity, enforceability or binding effect of the remaining provisions
of this Sublease.

     20. Interpretation. Wherever required by the text and context, references to the singular
shall include the plural, references to the masculine shall include the feminine and neuter gender,
references to the conjunctive shall include the disjunctive, and vice versa. Captions and
definitions used within this Sublease are for convenience and reference only and in no way define,
limit, amplify or describe the scope or intent of this Sublease, nor do they affect or constitute
part of this Sublease.

     21. Merger; Amendments; Counterparts; Sublease Not an Offer. All prior understandings and
agreements between Sublessor and Sublessee with respect to this Sublease or the Subleased Premises
are merged within this Sublease which alone fully and completely sets forth the understanding of
the parties. This Sublease may not be modified in any manner other than by a written agreement
signed by both parties. This Sublease may be executed in multiple counterparts each of which shall
constitute an original and all of which, when taken together, shall constitute one and the same
instrument. The submission of this Sublease to Sublessee for review does not constitute a
reservation for or option for the Subleased Premises, nor any part of the Premises, and this
Sublease shall not become effective as a contract until an original, executed by both Sublessor and
Sublessee, and consented to in writing by Prime Lessor, is delivered to and accepted by Sublessor.

     22. Additional Provisions.

(a) Signage. Notwithstanding any provision in this Sublease to the contrary, Sublessor shall use
good faith reasonable efforts to obtain Prime Lessor’s consent to install and maintain, at
Sublessee’s sole cost and expense, a sign indicating Sublessee’s name at the elevator bank
servicing the Subleased Premises, on the exterior of the door providing access to the Subleased
Premises, and a listing on the Building directory in the lobby. The foregoing shall be subject to
the applicable terms and conditions of the Prime Lease.

(b) Parking. Sublessee shall be entitled to the non-exclusive use of Sublessee’s Proportionate
Share of the unreserved uncovered parking spaces and unreserved covered parking spaces which
Sublessor is entitled to use pursuant to the terms and conditions of the Prime Lease, which is five
(5) spaces per 1,000 square feet of Rentable Area, consisting of twenty-one (21) unreserved parking
spaces or two (2) unreserved covered parking spaces and nineteen (19) unreserved uncovered parking
spaces. Sublessee’s use of the unreserved covered parking spaces shall be on a month-to-month
basis pursuant to a separate parking agreement between Sublessee and Prime Lessor and subject to
the then-going rate charged by Prime Lessor. Sublessee agrees that Sublessee and its employees,
agents, representatives and invitees shall use such parking spaces in accordance with the Prime
Lease. Under no circumstances, however, shall Sublessee be entitled to use any reserved parking
spaces granted to Sublessor under the Prime Lease.

10

 

(c) Furniture. Effective as of the Commencement Date, in exchange for the sum of one dollar
($1.00), Sublessor shall transfer and convey to Sublessee, pursuant to a commercially reasonable
Bill of Sale attached hereto and incorporated herein as Exhibit C, any ownership rights
which it may have in those certain work stations, task chairs and conference table and chairs
located within the Subleased Premises as of the Commencement Date and further identified on the
inventory attached to the Bill of Sale (collectively, the “Furniture”). Due to such transfer and
conveyance, Sublessor shall not have any obligation to repair or replace the Furniture or to remove
the Furniture following the expiration or earlier termination of the Term. Sublessor has not made,
nor does it make, any representations, warranties or promises with respect to the Furniture and the
transfer and conveyance thereof shall be on an “AS IS, WHERE IS” basis.

     IN WITNESS WHEREOF, Sublessor and Sublessee have each caused this Sublease to be duly executed
by its respective duly authorized representative effective as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	SUBLESSOR:	 	 	 	SUBLESSEE:	 	 
	Continental Casualty Company	 	 	 	Global Employment Solutions, Inc.	 	 
	By:

	 	/s/ Mark Kruse
	 	 	 	By:
	 	/s/ Dan Hollenbach	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Printed Name: Mark Kruse	 	 	 	Printed Name: Dan Hollenbach	 	 
	Its: Vice President     3-27-06	 	 	 	Its: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Approved by	 	 	 	 	 	 	 	 
	 

	 	Law Dept.	 	 	 	 	 	 	 	 
	 

	 	By: NAD	 	 	 	 	 	 	 	 
	 

	 	Date: 3/23/06	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

11

 

Exhibit B

Memorandum of Commencement Date

Date:______________

Sublessor: Continental Casualty Company

Sublessee: Global Employment Solutions, Inc.

Subleased Premises Address: 10375 Park Meadows Drive, Littleton, Colorado

Re: Sublease dated as of March 23, 2006 (“Sublease”)

	1.	 	Sublessee has accepted possession of the Subleased Premises and now occupies same.

	 
	2.	 	The Commencement Date of the Sublease is                     , 2006.
	 
	3.	 	The Expiration Date of the Term of the Sublease is                     , 2010.
	 
	4.	 	The Rent Commencement Date of the Sublease is                     , 2006.
	 
	5.	 	Capitalized terms used herein shall have the same meanings which are ascribed thereto in the
Sublease.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SUBLESSOR:	 	 	 	SUBLESSEE:	 	 
	Continental Casualty Company	 	 	 	Global Employment Solutions, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Printed Name: Mark Kruse	 	 	 	Printed Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Its: Vice President	 	 	 	Its:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]