Document:

exh10-9.htm

    EXHIBIT
10.9

     

    TRADEMARK
LICENSE AGREEMENT

     

    This
Trademark License Agreement (“Agreement”) is
entered into on the 7th day of April, 2009, to be effective as of 11:59 PM CDT
on March 31, 2009 (“Effective Date”) by
and between SemGroup, L.P., an Oklahoma limited partnership (“SemGroup”) and
SemMaterials, L.P., an Oklahoma limited partnership (“SemMaterials”)
(SemGroup and SemMaterials, collectively, “Licensor”), on the
one hand, and SemGroup Energy Partners, L.P., a Delaware limited partnership
(“Licensee”),
on the other hand.  Licensor and Licensee are hereinafter referred to
as the “Parties” or
individually, as applicable, as the “Party”.

     

    RECITALS

     

    WHEREAS, SemGroup owns U.S. Trademark
Registration Nos. 3,555,972, 3,291,763 and 3,291,764 and pending U.S. Trademark
Application Serial Nos. 77/692,475 and 77/257,081 for the Licensed Marks (as
defined below);

     

    WHEREAS, Licensor and Licensee are
parties to that certain Amended and Restated Omnibus Agreement dated as of
February 20, 2008 (the “Omnibus Agreement”),
pursuant to which, among other things, Licensor granted to Licensee a
non-exclusive license to use the Licensed Marks in accordance with the terms and
conditions of the Omnibus Agreement;

     

    WHEREAS, Licensor, together with
certain of its subsidiaries, are parties to the chapter 11 cases commenced by
such entities on July 22, 2008, jointly administered under Case No. 08-11525
(BLS) and the chapter 11 case commenced by SemGroup Holdings, L.P. (a
wholly-owned subsidiary of Licensor) on October 22, 2008 under Case No. 08-12504
(BLS) (the “Bankruptcy
Cases”);

     

    WHEREAS, the Bankruptcy Cases are under
the jurisdiction of the United States Bankruptcy Court for the District of
Delaware (the “Bankruptcy
Court”);

     

    WHEREAS, on March 12, 2009, the
Bankruptcy Court approved the terms of a global settlement by and among
Licensor, Licensee and certain other parties (the “Settlement”);
and

     

    WHEREAS, pursuant to the Settlement,
Licensor and Licensee have agreed (i) that Licensor will reject the Omnibus
Agreement in the Bankruptcy Cases and (ii) to enter into this Agreement to set
forth the terms and conditions of Licensee’s continued use of the Licensed
Marks.

     

    NOW, THEREFORE, in consideration of the
premises and of the mutual covenants, representations, warranties and agreements
herein contained, and intending to be legally bound hereby, the Parties hereby
agree as follows:

     

    I. DEFINITIONS

     

    1.1 “Affiliate” (and, with
a correlative meaning “affiliated”) means,
with respect to any Party, any direct or indirect subsidiary of such Party, and
any other entity that directly, or through one or more intermediaries, controls
or is controlled by or is under common control with such first
Party.  As used in this definition, “control” (including
with correlative meanings, “controlled by” and
“under common control
with”) means possession, directly or indirectly, of power to direct or
cause the direction of management or policies (whether through ownership of
securities or partnership or other ownership interests, by contract or
otherwise).  For purposes of this Agreement, (i) Licensee, Licensee’s
general partner, and Licensee’s and Licensee’s general partner’s respective
subsidiaries shall not be deemed to be Affiliates of Licensor and (ii) SemGroup,
SemMaterials, and SemGroup’s and SemMaterial’s respective subsidiaries (other
than Licensee, Licensee’s general partner, and Licensee’s and Licensee’s general
partner’s respective subsidiaries) shall not be deemed to be Affiliates of
Licensee.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.2 “Licensed Marks” means
the Marks set forth on Exhibit A attached
hereto.

     

    1.3 “Marks” means
trademarks, service marks, trade names, corporate names, d/b/a names, fictitious
names, service names, taglines, slogans, industrial designs, brand names, brand
marks, trade dress, Internet domain names, identifying symbols, logos, emblems,
signs or insignia, including all goodwill associated with any of the
foregoing.

     

    1.4 “Material” means any
item or material of Licensee or any of Licensee’s Affiliates (excluding
Products) that bears or contains any of the Licensed Marks (including any
marketing or promotional materials, packaging, labeling, supplies, invoices,
letterhead, envelopes, business cards, web sites, web pages and any similar
items or materials).

     

    1.5 “Product” means any
product of Licensee or any of Licensee’s Affiliates that bears or contains (or
the packaging, labeling or inserts for which bears or contains) any of the
Licensed Marks.

     

    1.6 “Service” means any
service developed, designed, marketed, promoted, used, offered for sale, sold,
provided and/or otherwise exploited by Licensee or any of Licensee’s Affiliates
under any of the Licensed Marks.

     

    1.7 “Standards of Quality”
means at least the same standards of quality that are observed immediately prior
to the Effective Date by Licensee and Licensee’s Affiliates with respect to
Products, Services and Materials bearing any of the Licensed Marks or in
connection with which any of the Licensed Marks is used.

     

    II. LICENSE
GRANT

     

    2.1 License.  Subject
to the terms and conditions of this Agreement, Licensor hereby grants to
Licensee and Licensee’s Affiliates, under Licensor’s rights in and to the
Licensed Marks, a limited, non-exclusive, worldwide, non-transferable,
non-sublicensable, royalty-free, fully paid-up license, during the Term (as
defined in Section
7.1 below), solely to (a) use the Licensed Marks on or in connection with
any Products, Services and Materials to market, promote, use, offer for sale,
sell, distribute and/or otherwise exploit such Products or Services, and (b) use
“SemGroup” or “SemMaterials” as part of any corporate name being used by
Licensee or any of Licensee’s Affiliates as of the Effective Date for Licensee
or such Affiliate.

     

    The sole
purpose of the foregoing license is to allow Licensee and Licensee’s Affiliates
a reasonable period of time to transition from and phase out use of the Licensed
Marks.  Licensee and Licensee’s Affiliates shall use commercially
reasonable efforts to complete such transition and phase out as reasonably
practical and feasible by the end of the Term, except with respect to any
Assigned Mark (as defined in Section 5.6 below)
that is assigned by Licensor to Licensee in accordance with Section 5.6
below.

    
      
        
        

      

      
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    2.2 Compliance by
Affiliates.  Licensee shall cause each of its Affiliates to
comply with the terms and conditions of this Agreement and such Affiliate’s
obligations as set forth in this Agreement, and shall be responsible for any
breach of this Agreement by any of its Affiliates.  Licensor shall
cause each of its Affiliates to comply with such Affiliate’s obligations as set
forth in this Agreement, and shall be responsible for any breach of such
obligations by its Affiliates.

     

    III. QUALITY
CONTROL

     

    3.1 Quality
Standards.  In order to preserve the inherent value of the
Licensed Marks, Licensee and Licensee’s Affiliates shall ensure that the quality
of all Products and Services meets the Standards of Quality.  In order
to assure adherence to the Standards of Quality and for the purpose of
protecting and maintaining the goodwill associated with the Licensed Marks and
the reputation of Licensor, Licensor shall have the right to obtain from
Licensee and Licensee’s Affiliates reasonable information as to the quality of
the Products and Services and the manner in which the Licensed Marks are used by
Licensee or any of Licensee’s Affiliates and the samples described in Section 3.2
below.

     

    3.2 Samples.  For
the purpose of protecting and maintaining the goodwill associated with the
Licensed Marks and verifying that the Products and Services meet the Standards
of Quality, Licensee and Licensee’s Affiliates shall furnish to Licensor, from
time to time as reasonably requested in writing by Licensor, (a) representative
samples of Products and any packaging therefor and Materials related thereto and
(b) representative samples showing other uses of any of the Licensed Marks by
Licensee or any of Licensee’s Affiliates.

     

    3.3 Nonconforming Products and
Services.  If, at any time, any Products or Services fail, in
the reasonable and good faith judgment of Licensor, to conform to the Standards
of Quality, Licensor shall notify Licensee of such failure in
writing.  Licensee and Licensee’s Affiliates shall take all necessary
steps to bring such Products or Services into conformity with the Standards of
Quality.  If Licensee and Licensee’s Affiliates fail to so bring such
Products or Services into conformity within sixty (60) days (or such longer time
period as may be mutually agreed upon by the Parties in writing) after
Licensee’s receipt of written notice of such nonconformity, then Licensee and
Licensee’s Affiliates shall immediately cease all exploitation of such
nonconforming Products or Services under any of the Licensed Marks until such
nonconformity is cured.

     

    IV. USE
OF LICENSED TRADEMARKS

     

    4.1 Trademark Usage
Guidelines.  Licensee and Licensee’s Affiliates shall use the
Licensed Marks in compliance with the SemGroup, L.P. Logo Identity Standards and
Usage Guidelines (the current version of which is attached hereto as Exhibit B), as may be
modified by Licensor from time to time (the “Standards and
Guidelines”).  Without limiting the generality of the
foregoing, Licensee and Licensee’s Affiliates shall use correctly the trademark
symbol (TM), the
service mark symbol (SM) or the
registration symbol (®), as
applicable, with every use of the Licensed Marks.  Licensee and
Licensee’s Affiliates shall submit all Materials and Products (except press
releases regarding Licensee’s or any of Licensee’s Affiliates’ business and
Licensee’s and Licensee’s Affiliates’ general business documents, in each case,
that include only “SemGroup” or “SemMaterials” as part of a corporate name of
Licensee or any of Licensee’s Affiliates in accordance with Section 2.1(b) and no
other use of any Licensed Marks) to Licensor for approval prior to using such
Materials or exploiting such Products, which approval shall not be unreasonably
withheld or delayed.  All Materials and Products being exploited by
Licensee or its Affiliates as of the Effective Date are hereby approved for
purposes of this Section
4.1.  Any appearance or manner of use of any of the Licensed
Marks not provided for by the Standards and Guidelines may only be adopted by
Licensee or any of Licensee’s Affiliates upon Licensor’s prior written consent,
which consent shall not be unreasonably withheld or delayed.

    
      
        
        

      

      
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    4.2 Changes to Trademark Usage
Guidelines.  In the event Licensor proposes to change the
Standards and Guidelines, Licensor shall notify Licensee of the proposed changes
as soon as reasonably practicable, but in no event less than fifteen (15) days
in advance of implementing such changes.  Licensee and Licensee’s
Affiliates shall be allowed a commercially reasonable period of time to
implement any such changes.

     

    4.3 Restrictions.  Licensee
and Licensee’s Affiliates shall not (a) use any of the Licensed Marks in a
manner that causes, or has the likelihood of causing, confusion as to the
ownership of the Licensed Marks, (b) do or cause to be done any act or thing
that damages, disparages, disputes, attacks, challenges, impairs, dilutes or
otherwise harms any of the Licensed Marks or the reputation or goodwill
associated with Licensor or any of Licensor’s Affiliates or any of the Licensed
Marks, (c) use or register in any jurisdiction any Marks confusingly similar to,
or consisting in whole or in part of, any of the Licensed Marks without the
prior written consent of Licensor or (d) register any of the Licensed Marks in
any jurisdiction without the prior written consent of Licensor.

     

    4.4 Infringement or Dilution of
Third Party Marks.  Licensee and Licensee’s Affiliates shall
cease use of any of the Licensed Marks within a commercially reasonable period
of time after receiving written notice from Licensor that, in the reasonable and
good faith opinion of Licensor’s counsel, the use of such Licensed Mark may
result in potential trademark infringement or trademark dilution liability to
any third party on the part of Licensor or Licensee or any of their respective
Affiliates.  Licensee and Licensee’s Affiliates shall comply with all
written guidelines that may be adopted from time to time by Licensor for the
purpose of addressing any such potential trademark liability within a
commercially reasonable period of time following Licensee’s receipt of such
written guidelines from Licensor.

     

    4.5 Third Party
Claims.  If Licensee or any of Licensee’s Affiliates is named
as a defendant in any action based on its use of any of the Licensed Marks,
Licensee shall immediately notify Licensor in writing.  Licensor shall
have the right, but not the obligation, to intervene in any such action and to
control and direct the defense thereof (including the right to select defense
counsel); provided, that, with
respect to any such action and if Licensee and Licensee’s Affiliates have
complied with all of the terms and conditions of this Agreement, (a) if Licensor
chooses to control and direct the defense of such action, Licensee may, at its
sole cost and expense, retain legal counsel of its choosing to monitor such
action, (b) if Licensor chooses not to control and direct the defense of such
action, Licensor shall reimburse Licensee for the reasonable, out-of-pocket
costs of Licensee’s defense of such action to the extent based on any of the
Licensed Marks and (c) Licensor shall indemnify Licensee against all damages
arising from such action to the extent such damages are based on any of the
Licensed Marks.

    
      
        
        

      

      
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    V. OWNERSHIP
OF LICENSED TRADEMARKS

     

    5.1 Ownership by
Licensor.  Licensee and Licensee’s Affiliates acknowledge and
agree that, as between the Parties, ownership of the Licensed Marks and the
goodwill relating thereto shall remain vested in Licensor during the Term and
thereafter.  Any rights relating to the Licensed Marks not granted to
Licensee and Licensee’s Affiliates in this Agreement are reserved by and for
Licensor.  Licensee and Licensee’s Affiliates acknowledge and agree
that any use of the Licensed Marks by Licensee or any of Licensee’s Affiliates
shall exclusively inure to the benefit of Licensor.  If Licensee or
any of Licensee’s Affiliates obtains any right or interest in any of the
Licensed Marks (other than as granted or provided under this Agreement or in
accordance with Section 5.6 below),
Licensee or such Affiliate shall transfer such right or interest to Licensor at
Licensor’s cost immediately upon Licensor’s written request.

     

    5.2 Ownership by
Licensee.  Licensor and Licensor’s Affiliates acknowledge and
agree that, as between the Parties, ownership of the Mark “SGLP” (in word form
or stylized form) and the goodwill relating thereto (the “SGLP Mark”) shall
remain vested in Licensee during the Term and thereafter.  Licensor
and Licensor’s Affiliates acknowledge and agree that any use of the SGLP Mark by
Licensee or any of Licensee’s Affiliates shall exclusively inure to the benefit
of Licensee.  If Licensor or any of Licensor’s Affiliates obtains any
right or interest in the SGLP Mark, Licensor or such Affiliate shall transfer
such right or interest to Licensee at Licensee’s cost immediately upon
Licensee’s written request.

     

    5.3 No
Challenges.

     

    (a) By
Licensee.  Licensee covenants and agrees, and shall cause its
Affiliates to covenant and agree, not to challenge, contest or question the
validity of Licensor’s ownership of the Licensed Marks or any registrations or
applications therefor.  Licensee shall not, and shall cause its
Affiliates not to, in any manner represent that it has any ownership in any of
the Licensed Marks (or any registrations or applications therefor).

     

    (b) By
Licensor.  Licensor covenants and agrees, and shall cause its
Affiliates to covenant and agree, not to challenge, contest or question the
validity of Licensee’s ownership of the SGLP Mark or any registrations or
applications therefor.  Licensor shall not, and shall cause its
Affiliates not to, in any manner represent that it has any ownership interest in
the SGLP Mark (or any registrations or applications therefor).

     

    5.4 Prosecution of Licensed
Marks.  As between the Parties, Licensor shall control the
prosecution and maintenance of the Licensed Marks.  Licensee and
Licensee’s Affiliates agree to reasonably assist Licensor to the extent
necessary in the procurement of any registration, extension or renewal for, or
to protect any of Licensor’s rights to, any of the Licensed Marks, at Licensor’s
expense.

    
      
        
        

      

      
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    5.5 Policing of Licensed
Marks.  Licensee shall inform Licensor of any use, infringement
(or potential infringement) or imitation of the Licensed Marks that come to the
attention of Licensee or any of Licensee’s Affiliates.  As between the
Parties, Licensor shall have the sole right to determine whether or not any
action shall be taken with respect to any such use, infringement or
imitation.  Licensee and Licensee’s Affiliates shall reasonably assist
Licensor in connection with any action Licensor determines to take with respect
to any such use, infringement or imitation (including by providing documents and
information as may be necessary or helpful in connection therewith), at
Licensor’s expense.

     

    5.6 Right to Acquire Licensed
Marks.  If, during the Term, Licensor determines that it and
its Affiliates no longer need one or more of the Licensed Marks as their
principal trade names or logos, then Licensor shall provide written notice to
Licensee of such determination and the applicable Licensed Marks (such Licensed
Marks, the “Assigned
Marks”).  If Licensee desires to acquire such Assigned Mark(s),
Licensee shall provide written notice of such desire to Licensor, and the
Parties agree to negotiate in good faith the terms and conditions of an
agreement for the assignment of such Assigned Mark(s) to Licensee at no cost (or
such other arrangement with respect to such Assigned Mark(s) as may be necessary
or desirable to preserve the value of the Licensed Marks).

     

    VI. RELEASE
OF CLAIMS

     

    6.1 Licensor,
on its own behalf and on behalf of its Affiliates, successors and assigns and
bankruptcy estate (collectively, the “Licensor Releasors”),
hereby releases and forever discharges Licensee, Licensee’s Affiliates and
Licensee’s and Licensee’s Affiliates’ respective members, officers, directors,
employees, successors and assigns (collectively, the “Licensee Releasees”)
from any and all claims, whether vested or contingent and whether known or
unknown, in law or in equity, existing prior to or as of the Effective Date that
any Licensor Releasor may have for trademark infringement based upon the use by
Licensee or any of Licensee’s Affiliates of any of the Licensed Marks prior to
the Effective Date.

     

    VII. TERM

     

    7.1 Term.  This
Agreement shall commence as of the Effective Date and, subject to Section 7.2 below,
shall continue until December 31, 2009 (the “Term”).

     

    7.2 Termination.

     

    (a) Termination for Licensee’s
Breach.  If Licensee or any of Licensee’s Affiliates breaches
any material provision of this Agreement and fails to cure such breach within
sixty (60) days after Licensee receives written notice from Licensor specifying
such breach, Licensor may terminate this Agreement upon written notice to
Licensee.

     

    (b) Termination for Licensee’s
Acquisition of Licensed Marks.  If Licensor assigns any
Licensed Mark(s) to Licensee pursuant to Section 5.6 above,
this Agreement shall terminate solely with respect to such Licensed Mark(s) or
shall terminate in its entirety if all of the Licensed Marks are so assigned,
effective as of the effective date of such assignment(s).

    
      
        
        

      

      
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    7.3 Effect of Expiration or
Termination.  Upon the expiration or any termination of this
Agreement, (a) all rights granted to Licensee and Licensee’s Affiliates shall
revert to Licensor, (b) Licensee and Licensee’s Affiliates shall refrain from
further use of or reference (whether direct or indirect) to any of the Licensed
Marks, except with the consent of Licensor in writing and in compliance with any
written instructions provided by Licensor with respect to such further use or
reference, (c) Licensee and Licensee’s Affiliates shall have a period of ninety
(90) days within which to sell or otherwise dispose of any Products existing as
of the effective date of such expiration or termination of this Agreement,
subject to all of the terms and conditions of this Agreement, and (d) Section 4.3, Section 5.1, Section 5.2, Section 5.3, Article VI, Section 7.3, Article VIII, Article IX, Article X and Article XI will
survive such termination or expiration.  Notwithstanding the foregoing
in this Section
7.3, subclauses (a), (b) and (c) of this Section 7.3 shall not
apply to any termination of this Agreement pursuant to Section 7.2(b)
above.

     

    VIII. WARRANTY
DISCLAIMER

     

    THE PARTIES ACKNOWLEDGE AND AGREE THAT
(a) THE LICENSED MARKS ARE LICENSED “AS-IS” AND “WHERE-IS” AND (b) SUBJECT TO
LICENSOR’S INDEMNIFICATION OBLIGATIONS SET FORTH IN THE PROVISO IN THE LAST
SENTENCE IN SECTION
4.5 ABOVE, LICENSEE AND LICENSEE’S AFFILIATES ASSUME ALL RISKS AND
LIABILITY ARISING FROM OR RELATING TO THEIR USE OF AND RELIANCE UPON THE
LICENSED MARKS, AND LICENSOR MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT
THERETO.  LICENSOR HEREBY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND
WARRANTIES REGARDING THE LICENSED MARKS, WHETHER EXPRESS OR IMPLIED, INCLUDING
ANY REPRESENTATION OR WARRANTY IN REGARD TO QUALITY, PERFORMANCE,
NONINFRINGEMENT, COMMERCIAL UTILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.

     

    IX. LIMITATION
OF LIABILITY

     

    NOTWITHSTANDING ANYTHING ELSE TO THE
CONTRARY CONTAINED IN THIS AGREEMENT OR OTHERWISE, IN NO EVENT SHALL LICENSOR,
LICENSEE OR ANY OF THEIR RESPECTIVE AFFILIATES BE LIABLE WITH RESPECT TO ANY
SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT
LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR ANY (a) CONSEQUENTIAL,
INDIRECT, INCIDENTAL, EXEMPLARY, PUNITIVE OR SPECIAL DAMAGES (PROVIDED THAT ANY
LOSSES, DAMAGES OR LIABILITIES OF LICENSOR OR ANY OF LICENSOR’S AFFILIATES
ARISING OUT OF, BASED UPON OR RESULTING FROM THE DEGRADATION OF ANY OF THE
LICENSED MARKS, TO THE EXTENT SUCH DEGRADATION IS CAUSED BY ANY ACTS OF, OR
FAILURE TO ACT BY, LICENSEE OR ANY OF LICENSEE'S AFFILIATES, SHALL BE CONSIDERED
DIRECT DAMAGES) OR (b) LOST PROFITS OR LOST BUSINESS, IN THE CASE OF EACH OF (a)
AND (b), EVEN IF THE REMEDIES PROVIDED FOR IN THIS AGREEMENT FAIL OF THEIR
ESSENTIAL PURPOSE AND EVEN IF LICENSOR OR LICENSEE OR ANY OF THEIR RESPECTIVE
AFFILIATES IS ADVISED OF THE POSSIBILITY OR PROBABILITY OF SUCH
DAMAGES.

    
      
        
        

      

      
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    X. INDEMNIFICATION

     

    10.1 Indemnification by
Licensee.  Subject to Licensor’s indemnification obligations
set forth in the proviso in the last sentence of Section 4.5 above,
Licensee agrees to indemnify and hold harmless Licensor and Licensor’s
Affiliates and their respective owners, members, directors, officers, employees,
agents, representatives, successors and assigns and bankruptcy estate
(collectively, the “Licensor Indemnified
Parties”) from and against any and all damages, losses, liabilities,
claims, suits or other expenses (including reasonable attorneys’ fees)
whatsoever arising out of or resulting from any use of the Licensed Marks or any
marketing, promotion, use, offer for sale, sale, distribution or other
exploitation of any Products, Services or Materials by or for Licensee or any of
Licensee’s Affiliates.

     

    10.2 Indemnification
Procedure.  Licensor shall give reasonably prompt written
notice to Licensee of any claim for which any of the Licensor Indemnified
Parties seeks indemnification under Section 10.1
above.  Failure to give such reasonably prompt written notice shall
not limit or otherwise affect the rights of the Licensor Indemnified Parties
under Section
10.1 above, except and solely to the extent that Licensee can demonstrate
actual material loss and prejudice as a result of such failure.  The
relevant Licensor Indemnified Party shall have the right to be represented by
counsel of its choice and, in its sole discretion, to take over and control the
defense, negotiation, settlement or other resolution of such
claim.  If such Licensor Indemnified Party takes over and controls the
defense of any such claim, then Licensee shall reimburse such Licensor
Indemnified Party for the expenses of defending such claim upon submission of
periodic bills to Licensee.  Each Party agrees to provide reasonable
access to the other Party to documents and information in such Party’s
possession or control as may reasonably be requested in connection with the
defense, negotiation, settlement or other resolution of any such
claim.  Notwithstanding anything in this Section 10.2 to the
contrary, if such Licensor Indemnified Party determines not to take over and
control the defense of any such claim, Licensee shall not settle such claim
without such Licensor Indemnified Party’s prior written consent if any such
settlement (a) requires that any of the Licensor Indemnified Parties make any
payment or bear any other obligations, (b) includes any admission of wrongdoing
or liability on the part of any of the Licensor Indemnified Parties, (c) does
not include a full release of all of the Licensor Indemnified Parties and/or (d)
includes any manner of injunctive or other equitable relief.

     

    XI. MISCELLANEOUS

     

    11.1 Assignment.  No
Party hereto may assign this Agreement, in whole or in part, except with the
prior written approval of each other Party, which approval shall not be
unreasonably withheld, delayed or conditioned; provided, however, that a Party
may assign, without the prior written consent of each other Party, this
Agreement or their respective rights and obligations hereunder, in whole or in
part, to an Affiliate or any purchaser of or successor to all or substantially
all of the crude oil assets or business of such Party.  This Agreement
will inure to the benefit of the Parties hereto and their respective successors
and permitted assigns.

     

    11.2 Confidentiality.  Licensor
and Licensee acknowledge and agree that any confidential information exchanged
by the Parties or their respective Affiliates under this Agreement shall be
subject to the terms and conditions of the confidentiality agreement between
Licensor and Licensee, dated as of October 14, 2008, and the confidentiality
agreement between Licensor and Licensee, dated as of December 9,
2008.

    
      
        
        

      

      
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    11.3 Governing
Law.  THIS AGREEMENT, THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT, AND ANY CLAIM OR CONTROVERSY DIRECTLY OR INDIRECTLY BASED
UPON OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT (WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY), INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, SHALL IN ALL RESPECTS BE
GOVERNED BY AND INTERPRETED, CONSTRUED, AND DETERMINED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO ANY
CONFLICT OF LAWS PROVISION THAT WOULD REQUIRE THE APPLICATION OF THE LAW OF ANY
OTHER JURISDICTION).

     

    11.4 Submission to
Jurisdiction.  

     

    (a) Without
limiting any Party’s right to appeal any order of the Bankruptcy Court, (i) the
Bankruptcy Court shall retain exclusive jurisdiction to enforce the terms of
this Agreement and to decide any claims or disputes which may arise or result
from, or be connected with, this Agreement, any breach or default hereunder, or
the transactions contemplated hereby, and (ii) any and all actions related to
the foregoing shall be filed and maintained only in the Bankruptcy Court, and
the Parties hereby consent to and submit to the jurisdiction and venue of the
Bankruptcy Court and shall receive notices at such locations as indicated in
Section 11.10;
provided, however, that if a
plan of reorganization in the Bankruptcy Cases has become effective, the Parties
agree to and hereby unconditionally and irrevocably submit to the exclusive
jurisdiction of any federal or state court in United States District Court for
the Southern District of New York sitting in New York County or the Commercial
Division, Civil Branch of the Supreme Court of the State of New York sitting in
New York County and any appellate court from any thereof, for the resolution of
any such claim or dispute.

     

    (b) The
Parties hereto hereby unconditionally and irrevocably waive, to the fullest
extent permitted by Applicable Law, any objection which they may now or
hereafter have to the laying of venue of any dispute arising out of or relating
to this Agreement or any of the transactions contemplated hereby brought in any
court specified in paragraph (a) above, or any defense of inconvenient
forum for the maintenance of such dispute.  Each of the Parties hereto
agrees that a judgment in any such dispute may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by
law.

     

    (c) Each of
the Parties hereto hereby consents to process being served by any Party to this
Agreement in any suit, action or proceeding by the mailing of a copy thereof in
accordance with the provisions of Section 11.10; provided, however, that such
service shall not be effective until the actual receipt thereof by the Party
being served.

     

    11.5 Waiver of Jury
Trial.  THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT THEY
MAY HAVE TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION, OR IN ANY PROCEEDING,
DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT, OR
ANY OTHER THEORY).  EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT, OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
IN THIS AGREEMENT.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    11.6 Injunctive
Relief.  Licensee acknowledges that any breach by Licensee or
any of Licensee’s Affiliates of this Agreement will result in immediate and
irreparable damage to Licensor.  Licensee acknowledges and agrees that
there is no adequate remedy at law for such breach, and Licensee acknowledges
and agrees that in the event of any such breach Licensor shall be entitled to
equitable relief by way of temporary and permanent injunctions and such other
further relief as any court with jurisdiction may deem just and
proper.

     

    11.7 Amendment and
Waiver.  No provision of this Agreement may be amended or
modified except by a written instrument signed by both Parties to this
Agreement.  No waiver by any Party of any provision of this Agreement
shall be effective unless explicitly set forth in writing and executed by both
Parties.  The waiver by any Party of a breach of any provision of this
Agreement shall not operate or be construed as a waiver of any other or
subsequent breach.

     

    11.8 Entire
Agreement.  Except as otherwise expressly provided in this
Agreement, this Agreement constitutes the entire agreement of the Parties hereto
with respect to the subject matter of this Agreement and supersedes all prior
agreements (including the Omnibus Agreement) and undertakings, both written and
oral, between or on behalf of the Parties hereto with respect to the subject
matter of this Agreement.

     

    11.9 Severability.  If
any term or provision of this Agreement is invalid, illegal or incapable of
being enforced by Law or public policy, all other terms and provisions of this
Agreement shall nevertheless remain in full force and effect so long as the
legal and economic substance of the Agreement is not affected in any manner
materially adverse to any Party.  Upon such determination that any
term or provision is invalid, illegal or incapable of being enforced, the
Parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the Parties as closely as possible in an
acceptable manner in order that the transactions contemplated by this Agreement
are consummated as originally contemplated to the greatest extent
possible.

     

    11.10 Notices.  All
notices, requests, claims, demands and other communications under this Agreement
shall be in writing and shall be given or made (and shall be deemed to have been
duly given or made upon receipt) by delivery in person, by overnight courier
service, by facsimile or electronic transmission with receipt confirmed
(followed by delivery of an original via overnight courier service) or by
registered or certified mail (postage prepaid, return receipt requested) to the
respective Parties at the following addresses (or at such other address for a
Party as shall be specified in a notice given in accordance with this Section
11.10):

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    If to
Licensor:

    

    SemGroup,
L.P.

    Two
Warren Place

    6120 S.
Yale Avenue, Suite 700

    Tulsa,
Oklahoma 74136

    Phone:                      (918)
524-8100

    Fax:  (918)
524-8290

    Attention:
Chief Financial Officer

     

    SemMaterials,
L.P.

    Two
Warren Place

    6120 S.
Yale Avenue, Suite 700

    Tulsa,
Oklahoma 74136

    Phone:                      (918)
524-8100

    Fax:  (918)
524-8290

    Attention: Chief Financial
Officer

     

    With a
copy to:

     

    Weil,
Gotshal & Manges LLP

    200
Crescent Court, Suite 300

    Dallas,
Texas 75201

    Phone:                      214-746-7700

    Fax:  214-746-7777

    Attention:  Michael
A. Saslaw, Esq.

    

    If to
Licensee:

     

    SemGroup
Energy Partners, L.P.

    Two
Warren Place

    6120 S.
Yale Avenue, Suite 500

    Tulsa,
Oklahoma 74136

    Phone:
(918) 524-5500

    Fax:  (918)
524-5805

    Attention:
Chief Financial Officer

     

    With a
copy to:

     

    Baker
Botts L.L.P.

    2001 Ross
Avenue, Suite 700

    Dallas,
Texas 75201

    Phone:                      (214)
953-6500

    Fax:  (214)
953-6503

    Attention:
Doug Rayburn, Esq.

    
      
        
        

      

      
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    11.11 Independent
Contractor.  Each Party hereto is acting as, and shall be
considered, an independent contractor, and no relationship of partnership, joint
venture, employment, franchise, agency or similar arrangement is being created
pursuant to or by virtue of this Agreement.  In no event shall either
Party have any authority to negotiate or enter into any contract or commitment
for or on behalf of, or in the name of, the other Party.  Neither
Party shall represent itself as having any such authority, express or implied,
from the other Party.

     

    11.12  No Third Party
Beneficiaries.  Except as expressly provided in this Agreement,
this Agreement is for the sole benefit of the Parties to this Agreement and
their successors and permitted assigns.

     

    11.13 Headings.  The
headings included in this Agreement are for convenience of reference only and
shall not affect or be utilized in construing or interpreting this
Agreement.

     

    11.14 Counterparts.  This
Agreement may be executed in any number of counterparts, each of which, when so
executed and delivered (including by facsimile or electronic mail transmission),
will be deemed an original, but all of which together will constitute one and
the same instrument.

     

    11.15 Interpretation.  The
words “include”, “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”. 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, and
Section and Exhibit references are to this Agreement unless otherwise
specified.  The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such
terms.

     

    

     

    [The
remainder of this page is intentionally left blank.]

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized officers on the date first written above to be
effective as of the Effective Date.

     

    

     

    SEMGROUP,
L.P.

     

    

     

    By:           SemGroup
G.P., L.L.C.

     

    Its General Partner

     

    

    By: /s/ Terrence
Ronan                                                                           

    Name:
Terrence Ronan

    Title:                      President
& CEO

    

    

    SEMMATERIALS,
L.P.

    

    By:           SemOperating
G.P., L.L.C.

    Its General Partner

    

    

    By: /s/ Terrence
Ronan                                                                           

    Name:
Terrence Ronan

    Title:                      President
& CEO

    

    

    SEMGROUP
ENERGY PARTNERS, L.P.

     

    

     

    By:           SemGroup
Energy Partners G.P., L.L.C.

     

               Its
General Partner

     

    

     

    By: /s/ Alex G.
Stallings                                                                           

    Name:                      Alex
G. Stallings

    Title:                      Chief
Financial Officer and Secretary

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

     

    Licensed
Marks

     

    
      	
              Mark

            	
              Registration
      Number/ Application Number

            	
              Jurisdiction

            
	
              SEMGROUP

            	
              Reg.
      No. 3,555,972

            	
              U.S.

            
	
              SSS
      SEMGROUP & Design

            	
              App.
      Serial No. 77/692,475

              App.
      Serial No. 77/257,081

            	
              U.S.

              U.S.

            
	
              SEMMATERIALS

            	
              Reg.
      No. 3,291,764

            	
              U.S.

            
	
              SSS
      SEMMATERIALS & Design

            	
              Reg.
      No. 3,291,763

            	
              U.S.

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
B

     

    Standards and
Guidelines

     

    Attachedexh10-10.htm

    Exhibit 10.10

     

     

    OFFICE
LEASE

    

     

    THIS OFFICE LEASE (this “Lease”) is made as of
March 31, 2009, by and between SEMGROUP ENERGY PARTNERS, L.L.C., a Delaware limited
partnership (“Landlord”), and SEMCRUDE, L.P., a Delaware limited partnership
(“Tenant”).

     

    RECITALS

     

    WHEREAS, Landlord owns the real
property described on the Exhibit A attached
hereto and made a part hereof (the “Real Property”), and
Landlord owns the buildings and improvements located on the Real Property,
including without limitation a building comprising office space and garage (the
“Building”),
together with all landscaped areas, driveways, surface parking lots, sidewalks,
fencing, exterior lighting and other appurtenances to the Building (the “Common
Areas”).

     

     

    WHEREAS, Landlord desires to lease to
Tenant, and Tenant desires to lease from Landlord, all that portion of the
interior of the Building comprising office space (the “Leased Premises”),
not including the portion on the first floor to be retained by Landlord as shown
on the Exhibit
B attached hereto and made a part hereof (“Landlord’s Office
Space”), on the terms and conditions set forth
herein.  Landlord and Tenant acknowledge that the garage space in the
Building shall be used and occupied exclusively by Landlord and Tenant shall
have no right to use or occupy such garage space.  For purposes of
this Lease, the parties agree that the Leased Premises contains 11,856 rentable
square feet, and the Landlord’s Office Space contains 2,900 rentable square
feet, and the Building, inclusive of office space and garage space, contains
28,448 square feet.

     

     

    1.           TERM.

     

     

    The term
of this Lease (the “Term”) shall begin on
April 1, 2009 (the “Commencement Date”),
and shall terminate on March 31, 2014, unless sooner terminated or extended as
provided herein. “Term” shall include
any Renewal Term.  “Lease Year” means a
period of twelve (12) calendar months during the Term, the first of which shall
commence on the Commencement Date and end on the expiration of the twelfth
(12th) full calendar month thereafter.  Each successive Lease Year
shall commence on the day following the last day of the prior Lease Year and end
twelve (12) calendar months thereafter.

     

     

    2.           PERMITTED
USE.

     

    The
Leased Premises shall be used by Tenant solely for general office purposes, in
compliance with all Legal Requirements (as defined in the next sentence) and the
terms and provisions of this Lease, and for no other purposes (the “Permitted
Use”).  For purposes hereof, the term “Legal Requirements”
shall mean all laws, rules, orders, ordinances, regulations, statutes,
requirements and codes of all governmental authorities, and all rules,
regulations and government orders with respect thereto, and of any applicable
fire rating bureau, or other body exercising similar functions, governing the
use and occupation of the Leased Premises, the Building or Common Areas or the
maintenance, use or occupation thereof; provided, however, Tenant shall not be
obligated to cause the Leased Premises to comply with Legal Requirements except
and only to the extent expressly provided herein.  In addition to the
Permitted Use of the Leased Premises, Tenant is also granted the nonexclusive
right to use the Common Areas together with Landlord, and their respective
guests and invitees, and for Tenant’s employees, guests and invitees to park
vehicles within the surface parking lot on the Real Property.

     

     

    3.           RENT.

     

    A.  Base
Rent.  Tenant shall pay to Landlord, as Base Rent, the amount
set forth on the Exhibit C attached
hereto and made a part hereof (the “Base
Rent”).  Base Rent shall be paid monthly by Tenant to Landlord
in advance on the first day of each month of the Term, commencing on the
Commencement Date.  At the commencement of each Lease Year, the Base
Rent shall be adjusted for increases in CPI (as defined below) over the
immediately preceding Lease Year, provided, that if there shall be no increase,
or there shall be a decrease, in the CPI, then the Base Rent for the immediately
preceding Lease Year shall be the Base Rent for such new Lease
Year.  “CPI” means the United
States Consumer’s Price Index for All Urban Consumers-Oklahoma City Area
(1982-84=100), as published by the United States Bureau of Labor Statistics
bi-monthly, or if such publication should be discontinued, “CPI” shall then
refer to such comparable statistics or changes in the cost of living for urban
consumers as the same may be computed and published (on the most frequent basis
available) by an agency of the United States or by a reasonable periodical of
recognized authority

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    B.  Additional
Rent.  “Additional Rent”
shall mean all sums and amounts other than Base Rent payable by Tenant to
Landlord from time to time under this Lease, including without limitation Taxes
(as hereinafter defined), and any costs incurred by Landlord in order to cure
any Default by Tenant under this Lease.  Tenant shall pay Additional
Rent at the times and in the manner set forth in this Lease.  The term
“Rent”, as used
in this Lease, shall mean, collectively, Base Rent and Additional
Rent.

     

    C.  Proration of
Rent.  Landlord and Tenant understand and agree that if the
Commencement Date or last day of the Term occurs on a date that is other than
the first or last day (as applicable) of a month, the Rent for that month shall
be prorated on a per diem basis.

     

    D.  Payment of
Rent.  All Rent due and payable by Tenant under this Lease
shall be paid to Landlord at Two Warren Place, 6120 South Yale Avenue, Suite
500, Tulsa, Oklahoma 74136-4216, or to such other address as Landlord may from
time to time designate in writing.  Except as expressly provided
herein, all Base Rent shall be paid by Tenant without notice or demand, and
without any set-off, counterclaim, abatement or deduction whatsoever, in lawful
money of the United States by bank check or wire transfer of immediately
available funds.

     

    4.           TAXES.

     

    Landlord
shall pay as billed all Taxes.  Landlord shall invoice Tenant for
Tenant’s share of the Taxes so paid and Tenant shall pay Landlord within fifteen
(15) days of receipt of such invoice.  In the event Landlord elects to
pay Taxes in installments, Landlord shall invoice Tenant only the amount paid
for each installment, as such installments are paid.  Tenant’s share
of Taxes shall be calculated based on the square footage of the Leased Premises,
divided by the total square footage of the Building (inclusive of office space
and garage space), and, as of the date hereof, shall mean
41.68%.  “Taxes” shall mean all
real estate taxes, assessments, business improvement district charges, fees and
assessments, sewer and water rents or assessments (but not utility charges),
rates and other governmental levies, impositions or charges, whether general,
special, ordinary, extraordinary, foreseen or unforeseen, which may be assessed,
levied or imposed upon all or any part of the Real Property, (ii) all personal
property taxes, assessments, rates and charges and other governmental levies,
impositions or charges, whether general, special ordinary, extraordinary,
foreseen or unforeseen, which may be assessed, levied or imposed upon all or any
part of any personal property owned or held by Landlord and used solely in
operation and ownership of the Real Property, including, without limitation, any
fixtures, machinery, equipment, apparatus, plant, transformers, duct work,
cable, wires, and other facilities, equipment and systems designed to supply
heat, ventilation, air conditioning, humidity or any other services or
utilities, or comprising or serving as any component or portion of the
electrical, gas, steam, plumbing, sprinkler, communications, alarm, security or
fire/life/safety systems or equipment, and any other mechanical, electrical,
electronic, computer or other systems or equipment for the Real Property, all to
the extent that the same do not constitute part of the Real Property (the “Personal Property”),
and (iii) all expenses (including reasonable attorneys’ fees and reasonable
disbursements and experts’ and other witnesses’ fees) incurred in contesting the
assessed valuation of all or any part of the Real Property by Landlord, to the
extent Tenant consents to such contest in advance.  Notwithstanding
anything to the contrary contained in this Lease, Taxes shall not include (x)
interest or penalties incurred by Landlord as a result of Landlord’s late
payment of Taxes, except for interest payable in connection with the installment
payment of assessments pursuant to the next sentence or (y) franchise, transfer,
capital stock, inheritance, succession, gift, estate or other taxes to the
extent applicable to general or net income of Landlord.  For purposes
hereof, “Taxes”
for any Lease Year shall be deemed to be the amount of Taxes assessed for such
Lease Year.  If at any time the methods of taxation prevailing on the
date hereof shall be altered so that in lieu of the whole or any part of Taxes,
there shall be assessed, levied or imposed (1) a tax, assessment, levy,
imposition or charge based on the income or rents received from the Real
Property whether or not wholly or partially as a capital levy or otherwise, (2)
a Lease fee measured by the rents, or (3) any other tax, assessment, levy,
imposition, charge or Lease fee however described or imposed, then all such
taxes, assessments, levies, impositions, charges or Lease fees or the part
thereof so measured or based, to the extent and only to the extent assessed in
lieu of Taxes, shall be deemed to be Taxes.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    5.           UTILITIES.

     

    Tenant
shall pay as billed, prior to delinquency or default, all utilities consumed on
the Real Property including, without limitation, electricity, gas, oil, steam,
water, air conditioning and other fuel and utilities (collectively, the “Utilities”).  Tenant
shall invoice Landlord for Landlord’s share of the Utilities so paid and
Landlord shall pay Tenant within fifteen (15) days of receipt of such
invoice.  Landlord acknowledges that all deposits with all Utility
providers, existing or hereinafter made, are the property of
Tenant.  Landlord’s share of the Utilities payments shall be that
portion of the square footage of the Landlord’s Office Space and the square
footage of the garage space within the Building occupied by Landlord, divided by
the total square footage of the Building.

     

    6.           CONDITION OF LEASED
PREMISES.

     

    Tenant
has examined the Leased Premises.  Subject to Landlord’s obligations
under Section
7, Tenant hereby accepts the condition of the Leased Premises in its
AS-IS, WHERE-IS CONDITION, WITH ALL FAULTS.  Landlord has not agreed
to pay for or make any tenant or leasehold improvements as consideration for
Tenant’s execution and delivery of this Lease.  Except as expressly
set forth in this Lease, Landlord and Landlord’s agents have made no warranties,
representations, statements or promises with respect to (a) the rentable or
usable square footage of the Leased Premises or the Building, or (b) the
suitability of the Leased Premises for any particular use or
purpose.  No rights, easements or licenses are acquired by Tenant
under this Lease except as expressly set forth herein or to the extent such
rights, easements or licenses have been or will be acquired by Landlord through
ownership of the Leased Premises and relate to the use of the Leased Premises,
in which event Tenant shall be entitled to the nonexclusive exercise of the
Landlord’s rights thereunder in its possession and use of the Leased
Premises.  Notwithstanding any of the foregoing, in the event the
Leased Premises or any portion thereof, as of the date hereof, do not comply in
all material respects with Legal Requirements, and/or the current zoning for the
Leased Premises does not permit the use of the Leased Premises for general
office use, and Tenant deems it necessary to obtain another location for its
operations, then Tenant may terminate this Lease by delivery of written notice
to Landlord without liability therefor.  Upon such termination, this
Lease shall terminate and neither Landlord nor Tenant shall have any further
liability to each other hereunder, except for such obligations that are
expressly stated to survive the termination hereof.

     

     

    The
parties acknowledge that Tenant requires the Leased Premises and the Landlord’s
Office Space to be separated and sealed off with interior walls or lockable
doors.  Such separation shall be performed on or before the earlier to
occur of (i) ninety (90) days from the Commencement Date or (ii) the
reorganization of Tenant.  The parties shall cooperate in the
completion of the work, and the parties shall share the cost
thereof.  Upon payment by Landlord of the cost of the work, Landlord
shall invoice Tenant for seventy-five percent (75%) of the cost, and Tenant
shall pay its share of the cost within fifteen (15) days after receipt of the
invoice therefor.  This obligation of Tenant shall survive the
expiration or earlier termination of this Lease.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    7.           MAINTENANCE;
SERVICES.

     

    A.  Tenant
agrees at its sole cost and expense, to keep and maintain the Leased Premises in
a clean and sanitary condition and in good repair, commensurate with the
conditions existing at the time this Lease is executed and thereafter at all
times during the Term hereof, subject to ordinary wear and
tear.  Tenant may, at its sole cost and expense, during the Term,
redecorate the Leased Premises as required by Tenant (and as approved by
Landlord in accordance with Section 10
hereof).  Tenant shall hire a janitorial service to clean the office
portions of the Building.   Tenant shall invoice Landlord for
Landlord’s share of the janitorial service so paid and Landlord shall pay Tenant
within fifteen (15) days of receipt of such invoice.  Landlord’s share
of the janitorial service shall be calculated based on the square footage of the
Landlord’s Office Space, divided by the total square footage of the office space
within the Building, and, as of the date hereof, shall mean 19.7%.

     

     

    B.  Tenant agrees to make
available to the Landlord the use of the large conference room on the first
floor of the Leased Premises when not in use by the Tenant, upon reasonable
advance notice by Landlord, which use shall be at no cost to
Landlord.

     

     

    C.  Landlord shall install a
separate telephone system for its separate use in the
Building.  During the period from the Commencement Date until such
separate system is installed, Landlord may utilize Tenant’s telephone system and
during any such period all cost of the telephone service shall be shared between
the parties.  Tenant shall invoice Landlord for Landlord’s share of
the telephone service as paid and Landlord shall pay Tenant within fifteen (15)
days of receipt of such invoice.  Landlord’s share of the cost of such
telephone service shall be calculated based on the average number of persons
that Landlord has occupying the space occupied by Landlord in the Building,
divided by the average number of all persons occupying the Building during the
same period, plus any applicable long distance charges.  After May 1,
2009, if such separate telephone system has not been installed by Landlord,
Landlord will pay its share of the cost of the Tenant’s telephone service plus
fifteen percent (15%), until installed.

     

     

    D.  Landlord
shall maintain, at Landlord’s cost and expense, in good repair the Real Property
and the Building and all systems of the Building, including without limitation
the roof, structure, load bearing and fire walls, foundation, water system, gas
system, sewer system, and electrical wiring, together with the heating and air
conditioning facilities and all controls, including the cutting and mowing of
grass and weeds, commensurate with the conditions existing at the time this
Lease is executed, normal wear and tear excepted, and thereafter at all times
during the Term hereof.  In the event that Tenant becomes aware of a
structural problem on the Leased Premises, Tenant will notify Landlord of such
problem.  Landlord agrees to replace all broken or cracked glass, in
the windows and doors of the Leased Premises, with glass of the same size and
quality as that broken or cracked, and will replace all damaged plumbing
fixtures with others of equal quality.  Landlord shall invoice Tenant
for Tenant’s share of the cost to mow grass and cut weeds as paid and Tenant
shall pay Landlord within fifteen (15) days of receipt of such
invoice.  Tenant’s share of the cost of the service shall be
calculated based on the square footage of the Leased Premises, divided by the
total square footage of the Building, and, as of the date hereof, shall mean
41.68%.  If any such maintenance or repair, or any such services, are
required due to the act, omission or negligence or willful misconduct of any
member of the Tenant Group (as defined in Section 11 hereof),
Tenant shall pay Landlord for the cost of such maintenance or repair within
fifteen (15) days after receipt from Landlord of an invoice
therefor.

     

    

    E.  Landlord’s covenants
under Section 5
hereof shall only impose on Landlord the obligation to use reasonable efforts to
cause the applicable utility providers to furnish the
Utilities.  Landlord has made no representation, warranty or covenant
of any kind regarding the availability (or future availability) of any Utilities
and services, and interruption of any Utilities or services shall not give rise
to any right or remedy in favor of Tenant under this Lease, including, without
limitation, a claim for abatement or reduction of the Rent or damages, nor shall
Tenant be relieved of its obligations under this
Lease.  Notwithstanding the foregoing, if an interruption of the
Utilities occurs and such condition prohibits Tenant from using all or a portion
of the Leased Premises for the purpose of office space and such condition exists
for fifteen (15) consecutive days after Tenant provides written notice of the
condition to Landlord, then the Rent shall abate as to that portion of the
Leased Premises that is rendered untenable for the purpose of office space, as
reasonably determined by Landlord.  The abatement shall commence upon
the expiration of the fifteen (15) day period and continue for so long as the
condition exists; provided, however, if the condition continues for two (2)
consecutive months, Tenant shall have the right to terminate this Lease upon
written notice to Landlord (which notice may only be given after the expiration
of the two (2) month period), effective on the date of such
notice.  Upon such termination, this Lease shall terminate and neither
Landlord nor Tenant shall have any further liability to each other hereunder,
except for such obligations that are expressly stated to survive the termination
hereof.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    8.           SURRENDER
OF LEASED PREMISES; RESTORATION.

     

     

    Tenant
agrees that, upon termination of the Term of this Lease, whether by expiration
or otherwise, Tenant will peaceably quit and surrender the Leased Premises to
Landlord, and will, at its sole cost and expense, remove all Tenant’s personal
property, fixtures, structures and improvements, and will restore the Leased
Premises to substantially the same condition the Leased Premises were in on the
date hereof (other than any improvements, installations and modifications made
by Landlord), subject to ordinary wear and tear.  Any and all property
which may be removed from the Leased Premises by Landlord pursuant to the
authority of this Lease or of law, to which Tenant is or may be entitled, may be
handled, removed and stored, as the case may be, by or at the direction of
Landlord at the risk, cost and expense of Tenant, and Landlord shall in no event
be responsible for the value, preservation or safekeeping
thereof.  Tenant shall pay to Landlord, upon demand, any and all
expenses incurred in such removal and all storage charges against such property
so long as the same shall be in Landlord’s possession or under Landlord’s
control.  Any such property of Tenant not retaken by Tenant from
storage within thirty (30) days after removal from the Leased Premises shall, at
Landlord’s option, be deemed conveyed by Tenant to Landlord under this Lease as
by a bill of sale without further payment or credit by Landlord to
Tenant.  This Section 8 shall
survive the expiration or earlier termination of the Lease.

     

     

    9.           COMPLIANCE WITH LAWS;
WASTE.

     

     

    A.  Tenant
covenants and agrees that it will not commit waste, loss or damage to the Leased
Premises.

     

    B.  Tenant acknowledges that
Landlord may incur costs as a result of the enactment of new Legal Requirements
relating to the Leased Premises, and/or changes in Legal Requirements relating
to the Leased Premises.  Tenant agrees that any such costs incurred by
Landlord for complying with such new or changed Legal Requirements which are due
to Tenant’s use and/or occupancy of the Leased Premises shall be an expense
recoverable by Landlord from Tenant.  Landlord shall notify Tenant in
advance of the estimated cost of any such compliance, and Tenant shall have the
right to terminate this Lease if Tenant determines that the cost thereof exceeds
the benefit to Tenant, by delivery of written notice to Landlord on or prior to
the date thirty (30) days after Tenant receives such notice from Landlord (and
failure to deliver any such notice by the expiration of such thirty (30) day
period shall be deemed Tenant’s waiver of such right of
termination.  Upon such termination, this Lease shall terminate and
neither Landlord nor Tenant shall have any further liability to each other
hereunder, except for such obligations that are expressly stated to survive the
termination hereof.  To the extent any such expense paid by Tenant is
subsequently recovered by or reimbursed to Landlord through insurance or
recovery from responsible third parties or other action, Tenant shall be
entitled to such recovery or reimbursement.  If a portion of such
expense is paid by Landlord, then Landlord shall be entitled to deduct from such
recovery its proportionate share thereof.

     

     

    C.  Each party shall promptly
provide to the other party with written notice: (i) upon its obtaining knowledge
of any material violation of any Legal Requirements relating to the Leased
Premises, Building, Common Areas or Real Property, and/or (ii) of its receipt of
any notice, correspondence, demand or communication of any nature from any
governmental authority alleging a violation of any Legal Requirements relating
to the Leased Premises, Building, Common Areas or Real Property.

    
      
        
        

      

      
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    D.  Each party shall comply
with all Legal Requirements applicable to the Real Property, Building and Common
Areas and its use and occupation thereof.

     

     

    E.  Tenant shall not cause or
permit any “Hazardous
Substance” (defined as any chemical, pollutant, waste, compound or other
substance in such forms, concentrations, quantities or other conditions that are
prohibited, regulated or require assessment, monitoring, removal or remediation
under any law or regulation pertaining to health or the environment) to be used,
installed, stored, treated, generated, released or disposed on or in the Leased
Premises, Building, Common Areas or Real Property.  Tenant shall
reimburse Landlord for all costs and expenses incurred by Landlord (whether
incurred before or after termination of this Lease), within fifteen (15) days
after demand, to correct any violation of the preceding sentence, or to remove
or render harmless any Hazardous Substance resulting from such a violation, or
to comply with applicable regulatory requirements, in connection with any such
removal, or to contest such requirements.  This Section 9.E shall
survive the expiration or earlier termination of the Lease.

     

     

    F.  Landlord shall not cause
or permit any Hazardous Substance to be used, installed, stored, treated,
generated, released or disposed on or in the Common Areas, Building or Real
Property.  Landlord shall reimburse Tenant for all costs and expenses
incurred by Tenant (whether incurred before or after termination of this Lease),
within fifteen (15) days after demand, to correct any violation of the preceding
sentence, or to remove or render harmless any Hazardous Substance resulting from
such a violation, or to comply with applicable regulatory requirements, in
connection with any such removal, or to contest such
requirements.  This Section 9.F shall
survive the expiration or earlier termination of the Lease.

     

     

    10.           ALTERATIONS.

     

     

    Tenant
shall not make any alterations, installations, improvements, additions or other
physical changes (collectively, the “Alterations”) in or
about the Leased Premises without Landlord’s prior written consent in each
instance, which consent shall not be unreasonably denied or conditioned by
Landlord.  Any Alterations shall be performed: (i) by Tenant, at
Tenant’s sole cost and expense (and Landlord shall have no duty or obligation
with respect thereto), (ii) pursuant to plans and specifications (including, as
applicable, layout, architectural, mechanical, electrical, plumbing, sprinkler
and structural drawings) reasonably approved in writing by Landlord, (iii) in
compliance with all Legal Requirements, and (iv) in a good and workmanlike
manner, free of all liens.  Tenant shall, at Tenant’s sole cost and
expense, obtain any and all permits and approvals necessary for the performance
of any Alterations.  During the performance of any Alterations, Tenant
shall carry, or shall cause its contractors and subcontractors to carry,
customary builder’s insurance.

     

     

    11.           INDEMNITY.

     

     

    A.  By
Tenant.  To the maximum extent permitted under Legal
Requirements, Tenant agrees to protect, indemnify, defend (with counsel
reasonably acceptable to Landlord) and hold harmless Landlord and its parents,
subsidiaries and affiliates, and their respective officers, directors,
shareholders, employees, representatives, agents, contractors, licensees,
lessees, guests, invitees, successors and assigns (collectively, the “Indemnified Parties”)
from and against any and all losses, costs, damages, liabilities, expenses
(including, without limitation, reasonable attorneys’ fees) and/or injuries
(including, without limitation, damage to property and/or bodily injury)
suffered or incurred by any of the Indemnified Parties (regardless of whether
contingent, direct, liquidated or unliquidated, but not including consequential)
(collectively, “Losses”), and any and
all claims, demands, suits and causes of action (collectively, “Claims”) brought or
raised against any of the Indemnified Parties, arising out of, resulting from,
relating to or connected with: (1) Tenant’s use of the Leased Premises; (2) any
negligent act or omission or willful misconduct of Tenant or its officers,
directors, shareholders, employees, representatives, agents, contractors,
licensees, lessees, guests, invitees (collectively, “Tenant Group”) at, on
or about the Real Property or Building, or (3) the failure of any of them to
comply with Legal Requirements, and notwithstanding anything to the contrary in
this Lease, such obligation to indemnify, defend and hold harmless the
Indemnified Parties shall survive any termination of this Lease.  This
indemnification shall include, without limitation, claims made under any
workman’s compensation law or under any plan for employee’s disability and death
benefits (including, without limitation, claims and demands that may be asserted
by employees, agents, contractors and subcontractors).

    
      
        
        

      

      
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    B.  By
Landlord.  To the maximum extent permitted under Legal
Requirements, Landlord agrees to protect, indemnify, defend (with counsel
reasonably acceptable to Tenant) and hold harmless Tenant and its parents,
subsidiaries and affiliates, and their respective officers, directors,
shareholders, employees, representatives, agents, contractors, licensees,
lessees, guests, invitees, successors and assigns (collectively, the “Tenant Indemnified
Parties”) from and against any and all Losses incurred by any of the
Tenant Indemnified Parties, and any and all Claims brought or raised against any
of the Tenant Indemnified Parties, arising out of, resulting from, relating to
or connected with: (1) Landlord’s use of the Real Property or Building, (2) any
negligent act or omission or willful misconduct of Landlord or its officers,
directors, shareholders, employees, representatives, agents, contractors,
licensees, lessees, guests, invitees (collectively, “Landlord Group”) at,
on or about the Real Property or Building, or (3) the failure of any of them to
comply with Legal Requirements, and notwithstanding anything to the contrary in
this Lease, such obligation to indemnify, defend and hold harmless the Tenant
Indemnified Parties shall survive any termination of this Lease.  This
indemnification shall include, without limitation, claims made under any
workman’s compensation law or under any plan for employee’s disability and death
benefits (including, without limitation, claims and demands that may be asserted
by employees, agents, contractors and subcontractors).

     

     

    C.  Indemnity
Procedure.  If an Indemnified Party or Tenant Indemnified Party
(in each case, the “Indemnitee”) receives
notice of any claim, action or proceeding (an “Action”) against
Indemnitee with respect to which indemnification is to be sought from the party
with the obligation to indemnify (the “Indemnitor”) under
this Section
11.C, Indemnitee shall promptly notify Tenant or Landlord, as indemnitor
and as applicable (in such capacity, “Indemnitor”)  of
the Action in writing.  Indemnitee may direct Indemnitor to assume the
defense of the Action and to pay all reasonable costs and expenses incurred as a
result thereof.  If Indemnitee shall not have directed Indemnitor to
assume the defense of the Action,  Indemnitor shall have the right to
participate at its own expense in the defense of any such Action.  If
Indemnitor shall not have employed counsel to have charge of the defense of any
such Action following the notice and direction specified above, or if Indemnitee
shall have reasonably concluded that there may be defenses available to
Indemnitee which are different from or additional to those available to
Indemnitor (in which case Indemnitor shall not have the right to direct the
defense of such Action on behalf of the Indemnitee), the Indemnitee shall have
the right to retain its own counsel and all reasonable resulting legal and other
expenses incurred by Indemnitee shall be borne by Indemnitor, provided, that no
Indemnitee shall settle any claim, action or proceeding without the prior
written consent of Indemnitor, such consent not to be unreasonably withheld or
delayed.

     

     

    12.           TERMINATION.

     

     

    Tenant
may terminate this Lease on not less than one hundred eighty (180) days advance
written notice to Landlord without penalty, which notice shall state the
proposed termination date therein.  Upon such termination, this Lease
shall terminate and neither Landlord nor Tenant shall have any further liability
to each other hereunder, except for such obligations that are expressly stated
to survive the termination hereof, provided, however, that Tenant shall cure any
existing Default hereunder prior to such termination being
effective.  In the event Landlord terminates this Lease pursuant to
any right granted to Landlord to do so on Exhibit C to that
certain Shared Services Agreement of even date herewith, this Lease shall
terminate as provided therein.  Upon such termination, this Lease
shall terminate and neither Landlord nor Tenant shall have any further liability
to each other hereunder, except for such obligations that are expressly stated
to survive the termination hereof.

    
      
        
        

      

      
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    13.           CASUALTY.

     

     

    In the
event of any damage to or destruction of the Leased Premises, by fire or other
casualty, which materially and adversely affects Tenant’s use and enjoyment of
the Leased Premises for the purposes specified in this Lease, then either
Landlord or Tenant shall have the right, no later than ninety (90) days after
such party becomes aware of such damage or destruction, to terminate this Lease
upon thirty (30) days’ prior written notice to the other.  In the
event of any damage or destruction which is not so extensive, or in the event
that neither Landlord nor Tenant elects to terminate this Lease pursuant to the
preceding sentence, then this Lease shall continue in full force and effect, and
Landlord will, to the extent proceeds of insurance are available therefor,
repair, restore, rebuild and/or replace the Leased Premises and fixtures and
building equipment destroyed in such casualty, substantially to the condition
they were in immediately prior to such damage or destruction.  Any
such work shall be done in a good and workmanlike manner and in accordance with
all Legal Requirements and the terms and provisions of this Lease.  In
no event shall Landlord be obligated to incur costs which are not covered by
Landlord’s property insurance.  In the event Landlord does not
commence such repair, restoration or replacement within a reasonable amount of
time, but in any event within one hundred sixty (160) days of such casualty,
and/or does not pursue the work to completion in a reasonably expeditious
manner, Tenant shall give written notice thereof to Landlord, and if Landlord
does not thereafter commence or resume such work as required hereunder within
five (5) days, Tenant may terminate this Lease by further written notice to
Landlord (such termination to be effective upon Landlord’s receipt of such
further written notice).  Upon such termination, this Lease shall
terminate and neither Landlord nor Tenant shall have any further liability to
each other hereunder, except for such obligations that are expressly stated to
survive the termination hereof.  From the date of such casualty until
completion of the work (or until Tenant terminates this Lease as permitted
hereunder), the Base Rent shall be proportionately reduced to reflect the
portion of the Leased Premises rendered unusable to Tenant as a result of such
fire or other casualty.

     

     

    14.           CONDEMNATION.

     

     

    If the
Leased Premises, or a substantial part thereof, or a portion thereof or of the
Real Property which prevents use of the Leased Premises for the purposes
specified herein by Tenant, shall be taken or condemned by any competent
authority for any public use or purpose, the Term shall end on the date when the
possession of the part so taken shall be required for such use or
purpose.  Upon such termination, this Lease shall terminate and
neither Landlord nor Tenant shall have any further liability to each other
hereunder, except for such obligations that are expressly stated to survive the
termination hereof.  Tenant shall have no right to share in the
condemnation award.  Then current Rent shall be apportioned as of the
date of such termination.  If only a portion of the Leased Premises
shall be so taken so as not to render the remainder untenable for Tenant’s
business purposes, as reasonably determined by Tenant, this Lease shall continue
in full force and effect but all Rent shall abate with respect to the portion so
taken.

    
      
        
        

      

      
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    15.           INSURANCE.

     

    

    A.  Landlord shall maintain a
policy of commercial property insurance.  Such insurance shall cover
the full replacement cost of the building, fixtures, equipment, Building
standard leasehold improvements, including without limitation foundations of
buildings, structures, machinery or boilers, if the foundations are below the
lowest basement floor, or the surface of the ground, if there is no basement,
walks, patios and other paved surfaces, underground pipes, flues and drains,
retaining walls not part of any building, and including the cost of excavations,
grading backfilling and filling; and will include the perils of flood,
earthquake and windstorm, including landslides, earth sinking, rising or
shifting; and boiler and machinery or equipment breakdown insurance for loss or
damage caused by the explosion of steam boilers or similar
equipment.  The cost of the policy of property insurance shall be
shared by the parties.  Landlord shall invoice Tenant for Tenant’s
share of the cost of such policy as paid and Tenant shall pay Landlord within
fifteen (15) days of receipt of such invoice.  Tenant’s share of the
cost of the policy shall be calculated based on the square footage of the Leased
Premises, divided by the total square footage of the office and garage space
within the Building, and, as of the date hereof, shall mean
41.68%.  In the event the premium rate is increased for the garage
portion of the Building, Landlord shall obtain separate billing for the Leased
Premises and the Landlord’s Office Space, in which event Tenant’s share of the
cost of the policy shall be for its share of the office premium only, and shall
be calculated based on that square footage of the Leased Premises, divided by
the total square footage of the office space within the Building.

    

    B.  Each party shall maintain
insurance on its personal property located within the Building or otherwise
located on the Real Property.

    

    C.  Tenant
shall maintain a policy of business interruption coverage, on a 100% (12-month)
actual loss sustained basis.  Landlord shall be named as loss payee as
its interest may appear.

    

    D.  Each party shall maintain
commercial general liability insurance, and, if necessary, commercial umbrella
insurance with an aggregate limit of not less than $10,000,000 each occurrence.
Such insurance shall cover premises, all operations by or on behalf of such
party, its contractors and anyone directly or indirectly employed by it or by
anyone for whose acts it may be liable products-completed operations, personal
and advertising injury, and liability assumed under an insured contract
(including the tort liability of another assumed in a business
contract).  Such insurance shall be written on a claims made or
occurrence basis against claims for liability arising from bodily injury,
property damage, premises, operations, and other coverages and in such amounts
as customarily maintained in the industry by prudent operators.

    

    E.  Concurrently with the
execution of this Lease and upon renewal of coverage, each party shall provide
the other with Certificates of Insurance, executed by a duly authorized
representative of each insurer, showing compliance with the requirements set
forth above.  Each Certificate of Insurance shall provide that the
insurance company will give the certificate holder thirty (30) days prior
written notice of the cancellation of any such insurance
policy.  Failure of either party to demand such certificate or other
evidence of full compliance with these insurance requirements or failure of
either party to identify a deficiency from evidence that is
provided  shall not be construed as a waiver of either party’s
obligation to maintain such insurance.  The insurance required to be
provided pursuant to this Section 15 may be
provided under so called blanket policies of insurance so long as (i) the
coverage afforded to the other party to this Lease shall not be reduced or
diminished by reason of the use of such blanket policy and (ii) all of the
requirements set forth in this Section 15 with
respect to such insurance are otherwise satisfied.  All required
insurance shall be maintained with responsible, solvent and reputable insurance
companies with an A.M. Best rating of A-9 or better and qualified to do business
in the State of Oklahoma.

    
      
        
        

      

      
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    F.  ANYTHING IN THIS LEASE TO THE
CONTRARY NOTWITHSTANDING, LANDLORD AND TENANT HEREBY WAIVE ANY AND ALL RIGHTS OF
RECOVERY, CLAIM, ACTION OR CAUSE OF ACTION AGAINST THE OTHER, ITS AGENTS,
EMPLOYEES, OFFICERS, PARTNERS, SERVANTS OR SHAREHOLDERS FOR ANY LOSS OR DAMAGE
THAT MAY OCCUR TO THE LEASED PREMISES OR THE REAL PROPERTY,  OR ANY
IMPROVEMENTS THERETO,  OR ANY PERSONAL PROPERTY OF SUCH PARTY
THEREIN,  BY REASON OF FIRE, THE ELEMENTS OR ANY OTHER CAUSE WHICH IS
OR COULD BE INSURED AGAINST UNDER THE TERMS OF THE FIRE AND EXTENDED COVERAGE
INSURANCE POLICIES REQUIRED TO BE OBTAINED PURSUANT TO THIS LEASE, REGARDLESS OF
CAUSE OR ORIGIN, INCLUDING NEGLIGENCE OF THE OTHER PARTY HERETO, ITS AGENTS,
EMPLOYEES, OFFICERS, PARTNERS, SERVANTS OR SHAREHOLDERS, AND EACH PARTY
COVENANTS THAT NO INSURER SHALL HOLD ANY RIGHT OF SUBROGATION AGAINST SUCH OTHER
PARTY.

     

    16.           SIGNAGE.

     

     

    Landlord
and Tenant shall share all existing sign monuments, poles and other sign
supports at the present locations of all such signs on the Real Property and
Building.  Tenant shall not install any signage on the monuments,
poles or other locations without Landlord’s prior written consent as to specific
location, size, and installation methods in each instance, which consent shall
not be unreasonably denied or conditioned by Landlord.  Any signage
shall be installed: (i) by Tenant, at Tenant’s sole cost and expense (and
Landlord shall have no duty or obligation with respect thereto), (ii) in
compliance with all Legal Requirements, and (iii) in a good and workmanlike
manner, free of all liens.  Tenant shall, at Tenant’s sole cost and
expense, obtain any and all permits and approvals, if any, necessary for the
installation of any signage.

     

     

    17.           DEFAULT.

     

     

    A.  In
the event that any of the following shall occur (each, a “Default”):

     

    (i)  Tenant shall at any time
fail to make any payment of Rent (or any portion thereof) or any other payments
required of Tenant hereunder when required, and such failure continues for a
period of more than five (5) days after receipt of notice, which notice shall
not be required more than twice during any twelve-month period, thereafter, the
failure to make payment of Rent (or any portion thereof) shall be a Default if
such failure continues for more than five (5) days after it is due;
or

    

    (ii)  Tenant shall at any
time be in default in any other covenants and conditions of this Lease to be
kept, observed and performed by Tenant, which and such default continues for
more than thirty (30) days after receipt of notice; provided, however, except
for any Default by Tenant of its obligations to maintain insurance under Section 15 or
restrictions on transfer in Section 20, that if
Tenant commences work to cure the default and continues to work reasonably
diligently to complete same, such period shall be continued for so long as
necessary to cure such default, but in no event more than ninety (90) additional
days; or

     

    (iii)  this
Lease or Tenant’s interest therein shall be taken by execution, attachment
or other process of law, or if any execution or attachment shall be issued
against Tenant and not vacated within ninety (90) days;

     

    

    then
Landlord may do any or all of the following:

    

    (a)  At
its option, at once, without notice to Tenant or to any other person, terminate
this Lease and at its option, require payment in full of the present value of
the Rent due for the unexpired term of the Lease, which obligation of Tenant
shall survive such termination (and upon such termination, this Lease shall
terminate and neither Landlord nor Tenant shall have any further liability to
each other hereunder, except for such obligations that are expressly stated to
survive the termination hereof);

    
      
        
        

      

      
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    (b)  Enter
into the Leased Premises, and remove Tenant’s property and effects therefrom,
and/or take and hold possession thereof, without such entry and/or possession
terminating this Lease or releasing Tenant in whole or in part from Tenant’s
obligations to pay Rent and perform all its other obligations hereunder for the
full Term, and to relet the Leased Premises or any part or parts thereof, either
in the name of or for the account of Landlord or Tenant, for such rent and for
such term and terms as Landlord may see fit, which term may at Landlord’s option
extend beyond the balance of the Term of this Lease.  Except to the
extent required under applicable Legal Requirements, Landlord shall not be
required to accept any tenant offered by Tenant or to observe any instructions
given by the Tenant about such reletting, provided that Landlord shall take
commercially reasonable efforts to mitigate its damages
hereunder.  Tenant shall pay Landlord any deficiency between the Rent
hereby reserved and covenanted to be paid and the net amount of the rents
collected on such reletting, for the balance of the Term of this Lease, as well
as reasonable expenses incurred by Landlord in such reletting, including but not
limited to reasonable attorney’s fees, broker fees, the expenses of repairing,
and otherwise preparing the same for re-rental.  All such costs, other
than Rent, shall be paid by Tenant upon demand by Landlord.  Any
deficiency in Rent shall be paid in monthly installments, upon statements
rendered by Landlord to Tenant.  Any suit brought to collect the
amount of the deficiency for any one or more months’ Rent shall not preclude any
subsequent suit or suits to collect the deficiency for any subsequent month’s
Rent; or

    

    (c)  Require
that upon any termination of this Lease, whether by lapse of time, the exercise
of any option by Landlord to terminate the same, or in any other manner
whatsoever, or upon any termination of Tenant’s right to possession without
termination of this Lease, the Tenant shall at once surrender possession of the
Leased Premises to the Landlord and immediately vacate the same and remove all
effects therefrom, except such as may not be removed under other provisions of
this Lease.  If Tenant fails to do so, Landlord may forthwith re-enter
the Leased Premises, with or without process of law, and repossess itself
thereof as in its former estate and expel and remove Tenant and any other
persons and property therefrom, using such force as may be necessary without
being deemed guilty of trespass, eviction or forcible entry, without thereby
waiving Landlord’s rights to Rent or any other rights given Landlord under this
Lease or at law or in equity; and Tenant will pay Landlord, upon demand, the
reasonable expenses incurred in such removal and also storage of said effects
for any length of time during which the same shall be in Landlord’s possession
or in storage, or Landlord may at its option, without, notice sell any or all of
said effects in such manner and for such price as the Landlord may deem best and
apply the proceeds of such sale upon any amounts due under this Lease from the
Tenant to Landlord, including the expenses of removal and sale (which
obligations of Tenant shall survive such termination of this
Lease).

    

    B.  No
receipt of monies by the Landlord from or for the account of Tenant or from
anyone in possession or occupancy of the Leased Premises after termination in
any way of this Lease or after the giving of any notice, shall reinstate,
constitute or extend the term of this Lease or affect any notice given to the
Tenant prior to the receipt of such money, it being agreed that after the
service of notice of the commencement of a suit, Landlord may receive and
collect any Rent or other amounts due Landlord and such payment not waive or
affect said notice or said suit.

    

    C.  Any
and all rights and remedies which Landlord may have under this Lease, at law or
in equity, shall be cumulative and shall not be deemed inconsistent with each
other, and any two or more or all of said rights and remedies may be exercised
at the same time or at different times and from time to time.

    
      
        
        

      

      
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    D.  If
Landlord is required to incur expense, either legal, incidental, or
consequential, because of a Default by Tenant, the Tenant shall promptly
reimburse Landlord for such expense upon being given a written itemization and
explanation thereof.  The provisions of this Section 17.D shall
survive the termination of this Lease.

    

    E.  The
failure of either party to enforce its rights under this Lease on one or
numerous occasions shall not affect such party’s ability to enforce that right
on any subsequent occasion or occasions.

    

    F.  In
the event that a Default shall occur and Landlord elects to terminate this
Lease, or upon expiration of this Lease, Tenant shall not be relieved of its
duties or obligations under this Lease so long as Tenant remains in possession
of the Leased Premises.

    

    G.  In
the event Landlord shall fail to make any payment required of Landlord hereunder
when due, and such failure continues for a period of more than five (5) days
after receipt of notice, or Landlord shall refuse or fail to perform any of its
obligations under this lease for a period of thirty (30) days or more after
written notice by Tenant (provided, however, except for any default by Landlord
of its obligations to maintain insurance under Section 15, that if
Landlord commences work to cure the default and continues to work reasonably
diligently to complete same, such period shall be continued for so long as
necessary to cure such default, but in no event more than ninety (90) additional
days), Tenant shall be entitled, at Tenant’s election: to (i) terminate this
Lease, and bring an action against Landlord for any out-of-pocket cost incurred
as a result of such breach, or (ii) maintain this Lease in full force and effect
and cure such failure on behalf of Landlord, and Landlord shall promptly
reimburse Tenant for such expense upon being given a written itemization and
explanation thereof.  In addition, Tenant shall be entitled to offset
against any Rent due hereunder the amount of all sums due and payable to Tenant
hereunder and under that certain Shared Services Agreement of even date
herewith.  Landlord’s obligations hereunder shall survive such
termination (and upon such termination, this Lease shall terminate and neither
Landlord nor Tenant shall have any further liability to each other hereunder,
except for such obligations that are expressly stated to survive the termination
hereof).

    

    H.  In
the event of a threatened breach by either party of any material obligation
under this Lease, the other party shall (without limiting any of such party’s
other rights or remedies hereunder, at law or in equity) have the right to
enjoin any such threatened breach by injunction.

     

    18.           LIMITATION
ON LIABILITY.

     

     

    It is
expressly understood and agreed by Tenant that none of Landlord’s covenants,
undertakings or agreements contained in this Lease are made or intended as
personal covenants, undertakings or agreements by any entity which is affiliated
with Landlord, its parent or subsidiaries.  No entity which is
affiliated with Landlord (nor any of their respective parents or subsidiaries,
nor any of their respective shareholders, venturers, officers, directors or
employees) shall be personally liable for any such sums, damages, awards or
judgments.  It is expressly understood and agreed by Landlord that
none of Tenant’s covenants, undertakings or agreements contained in this Lease
are made or intended as personal covenants, undertakings or agreements by any
entity which is affiliated with Tenant, its parent or
subsidiaries.  No entity which is affiliated with Tenant (nor any of
their respective parents or subsidiaries, nor any of their respective
shareholders, venturers, officers, directors or employees) shall be personally
liable for any such sums, damages, awards or judgments.  Landlord’s
liability hereunder shall be limited to Landlord’s interest in the Real
Property, Building and Common Area.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

     

    19.           COVENANTS
AGAINST LIENS.

     

     

    Tenant
hereby covenants and agrees that it will not cause or permit any lien
(including, without limitation, the filing of any mechanic’s lien) to be filed
or asserted against the Leased Premises as a result of any act or omission of
Tenant or any member of the Tenant Group.  In the event any such lien
or notice of lien is filed, Tenant shall, within twenty (20) days of receipt of
notice from Landlord of the filing of the lien, contest such lien as permitted
by law if such contest is sufficient alone to prevent the lien from maturing, or
contest said lien as permitted by law and bond or insure over said lien, or
fully discharge the lien by settling the claim which resulted in the lien or by
bonding or insuring over the lien in the manner prescribed by applicable
law.  If Tenant fails to so contest and/or discharge the lien, then,
in addition to any other right or remedy of Landlord, Landlord may bond or
insure over the lien or otherwise discharge the lien.  Tenant shall
reimburse Landlord for any amount paid by Landlord to bond or insure over the
lien or discharge the lien, including without limitation reasonable attorney’s
fees, within fifteen (15) days of receipt of invoice therefor.  Any
rights and obligations created under or by this Section 19 shall
survive termination or expiration of this Lease.

     

     

    20.           ASSIGNMENT
AND SUBLETTING.

     

     

    Tenant
shall not assign, mortgage, pledge, encumber, or otherwise transfer this Lease
(or any interest of Tenant herein) and shall not sublet (or underlet), or permit
or suffer the Leased Premises or any part thereof to be used or occupied by
others, other than to any reorganized debtor entity of Tenant, without
Landlord’s prior written consent in each instance, which consent may be withheld
in Landlord’s sole discretion, except as to any proposed transfer to an
affiliate of Tenant, in which event Landlord’s consent shall not be unreasonably
withheld.  Tenant shall specify the identity of any proposed assignee
or subtenant to Landlord in any written notice and request for
consent.  Tenant shall provide notice of any transfer permitted
hereunder to Landlord in advance.  Any assignment, sublease, mortgage,
pledge, encumbrance or transfer by Tenant in contravention of the provisions of
this Section 20
shall be void.

     

     

    21.           QUIET
ENJOYMENT.

     

     

    Landlord
represents that Landlord has good and indefeasible title to the Leased
Premises.  Tenant shall, and may peacefully have, hold and enjoy the
Leased Premises, upon the terms and conditions set forth herein.

     

     

    22.           LANDLORD’S
RIGHTS.

     

     

    Landlord
shall have the right to enter upon the Leased Premises during business hours
after notice to Tenant to show the same to prospective mortgagees and/or
purchasers, and to place “For Sale” signs thereon.  Commencing six (6)
months prior to the expiration of the Term, Landlord shall have the right to
enter upon the Leased Premises during business hours after notice to Tenant to
show the same to prospective tenants, and to place “For Rent” signs
thereon.  Landlord shall cooperate with Tenant in such activities in
order to minimize inconvenience to Tenant.

     

     

    23.           RIGHT OF
ENTRY.

     

     

    Tenant
agrees that Landlord and Landlord’s agents, representatives, employees,
contractors, licensees, invitees, tenants, successors and assigns (collectively,
“Landlord
Parties”), shall have the right to enter the Leased Premises after
reasonable advance written notice (except in an emergency) to Tenant, if
necessary to alter, modify, augment, supplement, improve, upgrade, repair,
replace, install, construct and maintain Landlord’s facilities and the Building
provided that except in emergencies Landlord shall not perform any work on the
Leased Premises during business hours which would unreasonably disturb Tenant’s
use and enjoyment of the Leased Premises and Landlord shall cooperate with
Tenant in scheduling all work at the Leased Premises.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

     

    24.           LANDLORD’S RIGHT TO
TRANSFER.

     

     

    This
Lease shall not in any manner or to any extent limit or restrict the right of
Landlord to use or dispose of the Leased Premises, Building or Real Property as
Landlord may in its discretion desire, subject to rights of Tenant
hereunder.  Landlord shall have the right, without notice to or
consent from Tenant, to assign this Lease to any person or entity who succeeds
(directly, indirectly or by operation of law) to any of Landlord’s right, title
or interest in or to the Leased Premises, provided that such transfer is made
subject to the provisions of this Lease and Tenant’s rights
hereunder.  Tenant shall not be obligated to any such transferee for
the payment of Rent or otherwise until written notice of such transfer has been
received by Tenant.

     

     

    25.           TENANT’S
PROPERTY.

     

     

    It is
expressly understood and agreed that all equipment and other personal property
that Tenant may install upon the Leased Premises during the Term shall remain
the property of Tenant and shall be removed by Tenant (as set forth in Section 8 hereof), at
its sole cost and expense, at the expiration of the Term of this Lease or at any
time prior thereto.

     

     

    26.           RENEWAL.

     

     

    Tenant
has the right to renew the Term for one period of five (5) years (the “Renewal
Term”).  In the event that Tenant elects to renew, Tenant shall
notify Landlord in writing thereof not less than one hundred eighty (180) days
prior to the expiration of the initial Lease Term (it being agreed that if
Tenant fails to timely provide such notice, Tenant shall be deemed to have
waived its right to renew this Lease).  Thereafter Landlord shall
provide notice to Tenant, at least one hundred forty (140) days prior to the end
of the Term, setting forth the Base Rent rate for the Renewal Term (the “Renewal Notice”),
which Base Rent rate shall be fair market rental for the type of property and
premises so rented on the terms and conditions of this Lease.  Tenant
shall then have the right, by written notice to Landlord within twenty (20) days
after receipt of the Renewal Notice, to withdraw its notice of extension of the
Term (a “Withdrawal
Notice”) or to renew and accept the new Base Rent rate (an “Acceptance
Notice”).  Tenant may elect to issue an Acceptance Notice
subject to the parties’ agreement on fair market rental, and in such event
Tenant shall so provide in the Acceptance Notice, and such Acceptance Notice
shall thereafter be irrevocable.  The parties shall negotiate in good
faith to determine fair market rental for the leased Premises, and may hire a
broker, licensed in the State of Oklahoma and having not less than ten (10)
years experience within the Oklahoma City market, and otherwise mutually
acceptable to the parties, to establish fair market rental, which fair market
value shall be binding on Landlord and Tenant. If the parties are unable to
agree on a broker, each party shall hire a broker meeting such criteria, who
shall in turn select a third broker, and the determination of fair market rental
shall be determined by a majority of the brokers.  The cost thereof
shall be shared equally by the parties.

     

     

    Subject
to the provisions set forth above, in the event that the Lease is renewed, the
Renewal Term will be upon the same terms, covenants and conditions contained in
the Lease, except that any reference in the Lease to the Term will be deemed to
include the Renewal Term and the Base Rent rate will be the Base Rent rate set
in the Renewal Notice, or as later determined by agreement of the parties, as
applicable.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

     

    27.           HOLDING
OVER.

     

     

    Tenant
shall have no right to remain in possession of all or any part of the Leased
Premises after the expiration of the Term or any Renewal Term (as
applicable).  In the event that Tenant remains in possession of all or
any part of the Leased Premises after the expiration or earlier termination of
the Term or any Renewal Term (as applicable), at Landlord’s option (exercised by
giving Tenant written notice): (a) such tenancy shall be deemed to be either (at
Landlord’s sole option) (i) a periodic tenancy from month-to-month only, or (ii)
a tenancy at sufferance terminable at will by Landlord; and (b) such tenancy may
be terminated by Landlord upon the earlier of thirty (30) days’ prior written
notice or the earliest date permitted by law.  In the event Tenant
remains in possession after the expiration or earlier termination of the Term or
any Renewal Term (as applicable), then monthly Base Rent shall be increased to
an amount equal to one hundred fifty percent (150%) of the monthly Base Rent
payable during the last month of the Term.  Any such month-to-month
tenancy or tenancy at sufferance shall be subject to every other term,
condition, and covenant contained in this Lease.

     

    

    28.           SUBORDINATION;
ESTOPPEL.

    

    A.  This
Lease is subject and subordinate to all mortgages, deeds of trust and related
security instruments which may now or hereafter encumber the Project and to all
renewals, modifications, consolidations, replacements and extensions thereof and
to each advance made or hereafter to be made thereunder.  This
subordination shall be self-operative and no further instrument of subordination
is required.  In confirmation of such subordination, however, Tenant
shall, at Landlord’s request, certify in writing as to such subordination;
provided that such subordination is subject to delivery of a non-disturbance
agreement reasonably acceptable to the Tenant, Landlord, and any mortgagee (or
its successors or assigns).  If any mortgagee (or its successors or
assigns), or any other person or entity, shall succeed to the rights of Landlord
under this Lease, whether through possession or foreclosure action or delivery
of a new ground lease or deed, then at the request of such party so succeeding
to Landlord’s rights (“Successor Landlord”),
Tenant shall attorn to and recognize Successor Landlord as Tenant’s Landlord
under this Lease, and such successor Landlord shall provide a non-disturbance
agreement to Tenant, and Tenant shall promptly execute and deliver a
subordination, non-disturbance and attornment agreement as Successor Landlord
may reasonably request.  Upon such attornment this Lease shall
continue in full force and effect as, or as if it were, a direct lease between
Successor Landlord and Tenant upon all of the terms, conditions and covenants
hereof.  The parties shall negotiate in good faith to expeditiously
deliver such subordination, non-disturbance and attornment agreement within
thirty (30) days of request therefor.

    

    B.  Tenant
agrees, at any time and from time to time, as requested by Landlord, upon not
less than ten (10) days’ prior notice, to execute and deliver to Landlord a
written statement executed and acknowledged by Tenant, (a) stating that this
Lease is then in full force and effect and has not been modified (or if
modified, setting forth all modifications), (b) setting forth the then current
Base Rent, (c) setting forth the date to which the Rent (including Base Rent)
has been paid, (d) stating whether or not, to the knowledge of the Tenant,
Landlord is in default under this Lease, and if so, setting forth the nature of
such default, and (e) stating whether there are any subleases affecting the
Leased Premises.  Tenant acknowledges that any statement delivered
pursuant to this paragraph may be relied upon by Landlord, any purchaser of the
Leased Premises or mortgagee of Landlord.

    

    C.  Landlord
agrees, at any time and from time to time, as requested by Tenant, upon not less
than ten (10) days’ prior notice, to execute and deliver to Tenant a written
statement executed and acknowledged by Landlord, (a) stating that this Lease is
then in full force and effect and has not been modified (or if modified, setting
forth all modifications), (b) setting forth the then current Base Rent, (c)
setting forth the date to which the Rent (including Base Rent) has been paid,
(d) stating whether or not, to the knowledge of the Landlord, Tenant is in
default under this Lease, and if so, setting forth the nature of such default,
and (e) stating the address of Landlord to which all notices and communication
under the Lease shall be sent.  Landlord acknowledges that any
statement delivered pursuant to this paragraph may be relied upon by Tenant, by
any assignee or subtenant of the Leased Premises or by any lender providing
credit to Tenant.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    29.           MISCELLANEOUS.

     

     

    A.  Brokers.  Tenant
represents and warrants to Landlord that Tenant has dealt with no broker, finder
or similar person or entity in connection with this Lease, or Tenant’s use or
occupancy of the Leased Premises.  Tenant agrees to indemnify, defend
(with counsel acceptable to Landlord) and hold Landlord harmless from and
against any and all Claims and Losses brought against, sustained or incurred by
Landlord by reason of Tenant’s breach of the foregoing representation and
warranty.  Landlord represents and warrants to Tenant that Landlord
has dealt with no broker, finder or similar person or entity in connection with
this Lease, or Landlord’s use or leasing of the Leased
Premises.  Landlord agrees to indemnify, defend (with counsel
acceptable to Tenant) and hold Tenant harmless from and against any and all
Claims and Losses brought against, sustained or incurred by Tenant by reason of
Landlord’s breach of the foregoing representation and warranty.  This
Section 29.A
shall survive the expiration or earlier termination of the Lease.

     

     

    B.  Notices.  Whenever
notice is required to be given pursuant to this Lease, the same shall be in
writing, and either personally delivered, sent by a nationally recognized
overnight delivery service, postage prepaid, or sent via United States certified
mail, return receipt requested, postage prepaid, and addressed to the parties at
their respective addresses as follows:

     

    

    If to
Landlord:

    

    SemGroup
Energy Partners, L.L.C.

    Two
Warren Place

    6120
South Yale Avenue, Suite 500

    Tulsa,
Oklahoma 74136-4216

    

    

    If to Tenant:

    

    SemCrude,
L.P.

    11501
South I-44 Service Road

    Oklahoma
City, Oklahoma 73173

    Telephone:
405-691-5016

    Attention:
Peter Schwiering

    

    with copy
to:

    

    SemCrude,
L.P.

    Two
Warren Place

    6120
South Yale Avenue, Suite 700

    Tulsa,
Oklahoma 74136-4216

    

     

    or at
such other addresses as any party, by written notice in the manner specified
above to the other party hereto, may designate from time to
time.  Unless otherwise specified to the contrary in this Lease, all
notices shall be deemed to have been given upon receipt (or refusal of receipt)
thereof.

     

     

    C.  Waiver of Jury
Trial.  Landlord and Tenant, by this Section 29.C, waive
trial by jury in any action, proceeding, or counterclaim brought by either of
the parties to this Lease against the other on any matters whatsoever arising
out of or in any way connected with this Lease, the relationship of Landlord and
Tenant, Tenant’s use or occupancy of the Leased Premises, or any other claims,
and any emergency statutory or any other statutory remedy.

    
      
        
        

      

      
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    D.  Captions.  The
section headings appearing in this Lease are for convenience of reference only
and are not intended, to any extent and for any purpose, to limit or define the
text of any section or any subsection hereof.

     

     

    E.  Binding
Effect.  The covenants, conditions, and agreements contained in
this Lease will bind and inure to the benefit of Landlord and Tenant and their
respective heirs, distributees, executors, administrators, successors and
permitted assigns, including, with respect to the Tenant, any reorganized debtor
entity or plan administrator appointed pursuant to the plan of reorganization of
Tenant.  In the event that Tenant is comprised of more than one
individual or entity, the obligations of such individuals or entities under this
Lease shall be joint and several.

     

     

    F.  Entire
Agreement.  This Lease, the exhibits and addenda, if any,
contain the entire agreement between Landlord and Tenant regarding the subject
matter hereof, and fully supersede all prior written or oral agreements and
understandings between the parties pertaining to such subject
matter.  No promises or representations, except as contained in this
Lease, have been made to Tenant respecting the condition or the manner of
operating the Leased Premises.

     

     

    G.  Further
Assurances.  Each party agrees that it will execute and deliver
such other documents and take such other action as may be reasonably requested
by the other party to effectuate the purposes and intention of this
Lease.

     

     

    H.  No
Waiver.  The failure of either party to enforce at any time any
provision of this Lease shall not be construed to be a waiver of such provision,
nor in any way to affect the validity of this Lease or any part hereof or the
right of such party thereafter to enforce each and every such
provision.  No waiver of any breach of this Lease shall be held to
constitute a waiver of any other or subsequent breach.

     

     

    I.  No Third Party
Beneficiaries.  Landlord and Tenant agree and acknowledge that,
except as expressly set forth in Section 11, there are
no intended third party beneficiaries of this Lease nor any of the rights and
privileges conferred herein.

     

     

    J.  Governing Law; Venue;
Jurisdiction.  The terms and provisions of this Lease shall be
governed by and construed in accordance with the laws of the State of
Oklahoma.  During the pendency of the Bankruptcy Cases (as defined
below), and without limiting any party’s right to appeal any order of the
Bankruptcy Court (as defined below), (i) the Bankruptcy Court shall retain
exclusive jurisdiction to enforce the terms of this Lease and to decide any
claims or disputes which may arise or result from, or be connected hereby, and
(ii) any and all actions related to the foregoing shall be filed and maintained
only in the Bankruptcy Court, and the parties hereby consent to and submit to
the jurisdiction and venue of the Bankruptcy Court and shall receive notices at
such locations as indicated in Section
29.B.  “Bankruptcy Cases”
means the chapter 11 cases commenced by SemGroup, L.P. and certain of its direct
and indirect subsidiaries on July 22, 2008, jointly administered under Case No.
08-11525 (BLS).  “Bankruptcy Court”
means the United States Bankruptcy Court for the District of Delaware or any
other court having jurisdiction over the Bankruptcy Cases from time to time.
Thereafter, the parties agree that action with respect to this Lease will be
brought in an Oklahoma state court or Federal Court of the United States sitting
in the county in which the Real Property is located and the parties hereby
submit to the exclusive jurisdiction of said court.

     

    

    The
parties hereby unconditionally and irrevocably waive, to the fullest extent
permitted by applicable law, any objection which they may now or hereafter have
to the laying of venue or any dispute arising out of or relating to this Lease
or any of the transactions contemplated hereby brought in any court specified in
paragraph (a) above, or any defense of inconvenient forum of the maintenance of
such dispute.  Each of the parties hereto agrees that a judgment in
any such dispute may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law.

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    K.  Counterparts.  This
Lease may be executed by the parties in counterparts.  Each such
counterpart shall be deemed an original and all such counterparts, taken
together, shall constitute one and the same agreement.

     

    

    L.  Severability.  If
any term, provision or condition in this Leased shall, to any extent, be invalid
or unenforceable, the remainder of this Lease (or the application of such term,
provision or condition to persons or circumstances other than in respect of
which it is invalid or unenforceable) shall not be affected thereby, and each
term, provision and condition of this Leased shall be valid and enforceable to
the fullest extent permitted by law.

    

    M.  Time of the
Essence.  Time is of the essence of this Lease, and each and
every term and provision hereof.

    

    N.  No
Partnership.  None of the terms or provisions of this Lease
shall be deemed to create a partnership between or among the parties hereto in
their respective businesses or otherwise, nor shall any of the terms or
provisions of this Lease cause them to be considered joint venturers or members
of any joint enterprise.

    

    O.  No Oral
Change.  This Lease cannot be changed orally or by course of
conduct, and no executory agreement, oral agreement or course of conduct shall
be effective to waive, change, modify or discharge it in whole or in part unless
the same is in writing and is signed by the party against whom enforcement of
any waiver, change, modification or discharge is sought.

    

    P.  Authority.  Each
party represents and warrants that it has full right, power and authority to
execute and deliver this Lease, and to perform each and all of its duties and
obligations hereunder.  If any party so requests, the other party
shall provide reasonable written evidence of such right, power and
authority.

    

    Q.  Attorney’s Fees;
Interest.  The prevailing party in any dispute shall be
entitled, in addition to any other payment, to receive its reasonable attorney’s
fees, court costs and expenses.  All payments due from a party hereto
which are not paid when due shall bear interest at a rate equal to the lesser of
the highest non-usurious rate permitted by applicable law, or ten percent (10%)
per annum from the date due until paid (the “Default
Rate”).  This Section 29.Q shall
survive the expiration or earlier termination of the Lease.

    

    R.  Limitation on
Indemnity.  Notwithstanding anything to the contrary contained
herein or in any other agreement or writing between the parties, no waiver,
indemnity or exculpation of Landlord or any member of the Landlord Group shall
be effective as to any Losses or Claims to the extent resulting from the gross
negligence or willful misconduct of Landlord or any member of the Landlord
Group, and no waiver, indemnity or exculpation of Tenant or any member of the
Tenant Group shall be effective as to any Losses or Claims to the extent
resulting from the gross negligence or willful misconduct of Tenant or any
member of the Tenant Group.

    

    S.  Parties Not
Affiliates.  For purposes of this Lease, (i) Landlord shall not
be deemed to be an affiliate of Tenant, and Tenant shall not be deemed to be an
affiliate of Landlord; (ii) no SGLP Party (as such term is defined in that
certain Master Agreement of even date herewith) shall be considered an affiliate
of any SemGroup Party (as such term is defined in that certain Master Agreement
dated as of even date herewith), and (iii) no SemGroup Party shall be considered
an affiliate of any SGLP Party.

    

    T.  Negotiated.  The
parties acknowledge that the parties and their counsel have reviewed and revised
this Lease and that the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Lease or any exhibits or amendments
hereto.

    

    [SIGNATURE
PAGE FOLLOWS]

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

     

    IN WITNESS WHEREOF, the parties hereto
have executed this Lease as of the day and year first above
written.

     

     

    

     

    LANDLORD:

    

    SEMGROUP ENERGY PARTNERS,
L.L.C.

    

    

    By:_/s/ Alex G.
Stallings______________

    Name:  Alex G.
Stallings

    Title:    Chief
Financial Officer and Secretary

    TENANT:

    

    SEMCRUDE, L.P.

    

    By: SemOperating G.P.
L.L.C.,

           its
general partner

    

    

    By:_/s/ Terrence
Ronan______________

                            Name:                 Terrence
Ronan

                            Title:                   President
& CEO

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
A

     

    Real
Property

     

     

    

     

     

    See
attached.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
B

     

     

    Landlord’s
Office Space

     

     

    2900
square feet of office space on the first floor of the Building as shown in the
attached Floor Plan.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
C

     

     

    Base
Rent

     

    
      	
              PERIOD

            	
              MONTHLY
      INSTALLMENTS

            	
              ANNUAL
      AMOUNT

            
	
              First
      Lease Year

              ($14.00
      per rentable square foot)

            	
              $13,832.00

            	
              $165,984.00

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