Document:

Second Amendment  to Lease Agreement Exhibit 10-1

Exhibit 10-1

AMENDMENT TO LEASE DATED JUNE 7, 2004, AS AMENDED ON
OCTOBER 7, 2011, BY AND BETWEEN
HIBISCUS OFFICE PARK, LLC, AS LANDLORD,
AND
THE GOLDFIELD CORP., AS TENANT

The Lease by and between the parties hereto shall be amended as follows: 

		
	1.
	Section 1.1 Lease Term is amended to read as follows:

Lease Term:  The Term of this Lease (“Term”) is nine (9) years, which Term shall commence on November 1, 2011 and end on October 31, 2020.  This Term shall be in effect for both the 1684 and 1688 buildings.

		
	2.
	Annual Minimum Rent/Base Rent is amended to add the 1688 W. Hibiscus Blvd. building consisting of 5,084 square feet to the existing Lease and subject to new rental amount as set forth below.

Annual Minimum Rent/Base Rent for 1688 Building (5,084 sf):  Commencing on November 1, 2013, (hereinafter referred to as the “Rent Commencement Date”) the annual base rent for the 5,084 square feet in the 1688 W. Hibiscus Blvd building shall be $43,468.20 / $8.55 psf (plus common area maintenance charges, insurance, real estate taxes and 6% Florida State Sales Tax).  Rent shall increase three (3%) percent annually on the Rent Commencement Date, pursuant to the terms of the Amendment to Lease dated October 7, 2011.  

Upon completion of construction/build-out in the 1688 Building as indicated below, 2,401 square feet in the 1678 W. Hibiscus Blvd building under the current Lease will no longer be leased by Tenant.  Tenant will continue to lease 5,185 square feet in the 1684 W. Hibiscus Blvd. under the current Lease, with all terms and conditions of the Amendment dated October 7, 2011, remaining in full force and effect (psf rent currently at $12.10 psf plus common area maintenance charges, insurance, real estate taxes and 6% Florida State Sales Tax).

Annual Minimum Rent/Base Rent for 1684 Building (5,185 sf):  Commencing on the Rent Commencement Date, and provided Tenant has vacated the 2,401 sf in the 1678 building, the annual base rent for the 5,185 square feet in the 1684 W. Hibiscus Blvd building shall be $62,738.50 / $12.10 psf (plus common area maintenance charges, insurance, real estate taxes and 6% Florida State Sales Tax).  Rent shall increase three (3%) percent annually on the rent commencement date pursuant to the terms of the Amendment to Lease dated October 7, 2011.  The Lease term for the 1684 building shall be extended until October 31, 2020 under the same terms and conditions.

Option to Renew:  Provided that Tenant is not in default under any of the terms and conditions of the original Lease any and all Amendments thereto, the Tenant shall have three (3) two (2) year options to renew the term of the Lease.  Each option to renew shall be exercised by providing Landlord with notice at least 180 days prior to the expiration of the original term or option term.  The Annual Minimum Base Rent for the 1688 building (5,084 sf) shall be adjusted upon exercising of the option to renew to the same Base Rental Rate being charged for the 1684 building and shall continue the remaining option periods, with increases as specified in the origin Lease dated June 7, 2004.

3.    Rentable Area shall be amended to read:

Building 1684 -  5,185 square feet
Building 1688 -  5,084 square feet

4.    Section 3. CONSTRUCTION, Sub-Section 3.1 is hereby amended to read as follows with regard to the 1688 W. Hibiscus Building:

3.1  Construction of Leasehold Improvements in 1688 W. Hibiscus Blvd.  The Tenant shall, at its sole cost and expense, improve the Premises as set forth in Exhibit "A" to the Amendment (Tenant's Work), which cost shall include the cost of all plans, permits and governmental regulations and requirements.

Prior to the execution of this Lease by the Landlord and Tenant: (i) Tenant shall provide Landlord with a preliminary space/build-out plan for the premises, in form acceptable to the Landlord's Space Planner, drawn to a scale of one-quarter inch (1/4") equals one foot (1’), showing all demolition and renovations including all specifications and details of flooring and paint.

Upon approval by Landlord of the space/build-out plan Tenant shall commence construction in the premises. Tenant shall complete construction within ninety (90) days upon approval of plan and rent shall commence on the 90th day after approval.

5.    Section 7.1.8 is hereby amended to read as follows:

7.1.8    Forthwith to cause to be discharged of record (by payment, bond order of a court of competent jurisdiction or otherwise) any mechanic's lien at any time filed against the Premises for any work, labor, services or materials claimed to have been performed at or furnished to the Premises for or on behalf of the Tenant or anyone holding the premises through or under the Tenant.  If the Tenant shall fail to cause such lien to be discharged upon demand, then, in addition to any other right or remedy of the Landlord, the Landlord may, but shall not be obligated to, discharge the same by paying the amount claimed to be due or by bonding or other proceeding deemed appropriated by the Landlord and the amount so paid by the Landlord and all costs and expenses, including reasonable attorneys' fees, incurred by the Landlord in procuring the discharge of such lien, shall be deemed to be  Additional Rent.  The Landlord's estate in the Premises shall not be subject to any Additional Rent or be subject to any lien or liability under the Lien Laws of the State of Florida.  Pursuant to Florida Statutes 713.10, it is the intent of the parties hereto that the Landlord's interest in the Premises shall not be subject to any liens filed because of Tenant's failure to make payments in connection with any building or improvements installed or constructed on the Premises.  The interest of the Landlord shall not be subject to liens for improvements made by the Tenant, the Tenant shall notify the contractor making any such improvements of such provision or provisions in the Lease, and the knowing or willful failure of the Tenant to provide such notice to the contractor shall render the contract between the Tenant and the contractor voidable at the option of the contractor.

6.    Tenant agrees to invoice any Tenant who leases the 1678 portion of the building for their proportionate share of electric and water/sewer monthly and include a copy of the utility invoice for such service.
    
7.    All other terms and conditions of the original Lease dated June 7, 2004 and Amendment to Lease dated October 7, 2011, shall remain in full force and effect, including the option to terminate referenced as Section 11.13.2 on Exhibit “E” in the Amendment to Lease dated October 7, 2011.

Landlord:
HIBISCUS OFFICE PARK, LLC, 
a Florida limited liability company

BY:    HARP HOLDING COMPANY, INC.,
A Florida limited liability company
As its Managing Member

	
			
	By: /s/ Hugh M. Evans
	 
	 

	Name:  Hugh M. Evans, Jr., Vice President
	 
	Dated: July 29, 2013

Tenant:
THE GOLDFIELD CORPORATION

	
			
	By: /s/ John H. Sottile
	 
	 

	Name:  John H. Sottile, President
	 
	Dated: July 24, 2013exhibit104formoptionagre

Exhibit 10.4   1      MAGELLAN PETROLEUM CORPORATION 1   NONQUALIFIED STOCK OPTION 2   PERFORMANCE AWARD AGREEMENT 3    4   THIS AGREEMENT is made as of the date (the “Grant Date”) set forth below, between 5   Magellan Petroleum Corporation, a Delaware corporation (the “Company”), and the undersigned 6   individual (the “Optionee”), pursuant to the Magellan Petroleum Corporation 2012 Omnibus 7   Incentive Compensation Plan, as amended from time to time (the “Plan”).  Terms used but not 8   defined herein shall have the meaning set forth in the Plan. 9     10    11   Option Data. 12     13      14   Optionee’s Name:       [NAME] 15     16   Shares of Stock Subject to Options:  [NUMBER]  17     18   Grant Date:        October [  ], 2013 19     20   Exercise Price per Share:      $[___] per share 21     22   Expiration Date:       October [  ], 2023 23    24    25   1. Grant of Options.  The Company hereby awards to the Optionee the right and option to 26   purchase from the Company, at the Exercise Price set forth above, all or any whole number 27   portion of the aggregate number of shares of Common Stock (the “Stock”) set forth above. The 28   right to purchase any one share of Stock hereunder shall be referred to as an Option.  The 29   Options are Nonqualified Options. 30     31   2. Terms and Conditions.  The Options evidenced hereby shall be subject to the provisions 32   of the Plan (which are incorporated herein by reference) and the following terms and conditions: 33     34   (a) Vesting. As of the Grant Date, the Options are not exercisable and are 35   subject to forfeiture as described further below. The Options shall vest and become exercisable 36   in two Tranches as follows:  37   (i) Stock Price Tranche.  50% of the number of shares of Stock Subject to Options as set 38   forth in the Options Data box above shall vest and become exercisable, subject to ongoing 39   employment or as otherwise specifically provided herein, at the end of any period of 90 trading 40   days (a “Window”), if 41   (A) the closing price of one share of Stock as reported by NASDAQ (or, if no 42     

 

Exhibit 10.4   2      longer traded on NASDAQ, the principal national securities exchange or over-the-43   counter system on which the  Stock is so traded) (the “Closing Price”) on each of the first 44   ten (10) trading days of a Window equals or exceeds $2.35 per share, and 45   (B) the median of the Closing Prices for the Stock during such Window is equal to or 46   exceeds $2.35 per share.  47   For clarity, Windows can start at any date and are not sequential.  As a result, if vesting 48   fails to occur during a Window beginning on one trading day, vesting nonetheless may occur as a 49   result of a Window beginning on the following trading day. 50   If the Stock is no longer listed on the NASDAQ or any principal national securities 51   exchange or over-the-counter system on which the Stock is so traded, the Plan Administrator 52   shall determine a substitute method for determining whether the Stock has maintained a Fair 53   Market Value of US$2.35 for the requisite period of time. 54     (ii) Performance Goal Tranche.  The remaining 50% of the number of shares of Stock 55   Subject to Options as set forth in the Options Data box above shall vest and become exercisable, 56   subject to ongoing employment or as otherwise specifically provided herein, proportionately 57   upon the achievement of the Performance Goals set forth below: 58    59        Performance Goal   Percent of   Performance   Goal Tranche       Goal #1: Completion of the drilling of the CO2-EOR pilot program. 10%       Goal #2: A determination by the Board that the CO2-EOR pilot program   proves the economically-attractive scalability to the Company of a phased,   full field CO2-EOR project at Poplar.   40%       Goal #3: Sale of substantially all Amadeus Basin assets at Board approved   prices and terms, or commencement of sales under the Dingo GSPA.   20%       Goal #4: Ability to participate in the drilling of at least one well in the   Weald Basin along with Celtique Energie with internally developed   funding (i.e. proceeds of a sale of assets) or an approved farm-out.   20%     

 

Exhibit 10.4   3          Goal #5: Approval and execution of a farm-out agreement for the drilling   of at least one well in NT/P82.   10%    60   (iii) In accordance with Section 162(m) of the Code, the Plan Administrator shall 61   determine, in its sole discretion, when a Performance Goal has been achieved. 62     (b) Expiration Date; Effect of Specified Terminations.  The Options evidenced 63   hereby shall expire on the date specified above, or earlier as provided in Section 15 of the Plan, 64   subject to the following: 65    66   (i) If the Company terminates the Optionee’s employment for Cause or the Optionee 67   terminates his employment for any reason at a time when grounds for a termination for Cause 68   exist, then all of the Options shall immediately terminate.  69    70   (ii) In the event of a Termination for Good Reason, as defined below, when Section 71   2(b)(i) does not apply or if the Company terminates the Optionee’s employment for any reason 72   other than Cause, the following shall apply: 73   (A) The Optionee may exercise that portion of the Options which was exercisable as of 74   termination of employment (unless previously terminated or exercised) at any time prior to the 75   first anniversary of such termination of employment.   76   (B) Those Options that were neither vested, exercised nor terminated prior to termination 77   of employment shall be multiplied by a fraction (1) the numerator of which is the number of full 78   calendar months of Optionee’s employment that have elapsed between the last day of the month 79   ending immediately before the Grant Date and the date of the Optionee’s termination of 80   employment and (2) the denominator of which is 36.  The resulting number of Options (the 81   “Suspense Options”) shall remain outstanding for a period of 275 days following Optionee’s 82   termination of employment, and shall remain allocated among the remaining Performance Goals 83   prorata as Options were originally assigned among those Performance Goals which remain 84   unmet.   85     86     

 

Exhibit 10.4   4       87   For example, assume that as of termination of employment the Stock Price Goal, and 88   Performance Goals #2 and #5 remain unmet.  The allocation of Suspense Options is as 89   follows: 90   Open Goals Original Percentage Percentage of Suspense Shares   Allocated to Open Goals   Stock Price Goal 50% 66.6%   Performance Goal   #2   20% (40% of 50%) 26.6%   Performance Goal   #5   5% (10% of 50%)  6.6%    91    92   If any remaining Performance Goal or Stock Price Goal is satisfied during such 275 day 93   period, the applicable number of Suspense Options shall become vested and exercisable until the 94   first anniversary of the termination of employment and the remaining unexercisable Suspense 95   Options shall then terminate.  Options described under this Section 2(b)(ii)(B) which are not 96   Suspense Options or otherwise vested or exercised as of termination of employment shall 97   terminate as of termination of employment.    98   (C) A termination for Good Reason shall mean: 99   Alt #1, for those Optionees who have Employment Agreements, a termination of employment 100   for Good Reason as described in Section  7 of the Optionee’s Employment Agreement, as 101   amended in whole or in part from time to time. 102   [Alt #2 for those Optionees who are subject to a change in control severance agreement,  a 103   termination of employment for Good Reason as described in the Change of Control Severance 104   Agreement.  105   Alt #3 for all other Optionees, a termination of employment which occurs within six (6) months 106   following the initial occurrence, without the consent of the Optionee, of any of the following 107   conditions:  108   (x) a material diminution in the Optionee's base compensation,  109   (y) a material diminution in the Optionee's authority, duties, or responsibilities, or  110     

 

Exhibit 10.4   5      (z) the relocation of the Optionee’s principal place of employment to a location more than thirty 111   five (35) miles distant from the Optionee’s principal place of employment on the Grant Date], 112   [the following proviso applies to all three alternatives] provided that a termination of 113   employment shall not constitute a termination for Good Reason unless the Optionee has provided 114   notice to the Company of the existence of the condition constituting grounds for Good Reason, 115   as described above, within 90 days of the initial existence of the condition, and the Company has 116   failed for 30 days following receipt of such notice to remedy the condition. 117   (iii) if the Optionee terminates his employment with the Company for any reason 118   (other than as described in Section 2(b)(i) or Section 2(b)(ii) above), the Optionee may exercise 119   the exercisable Options (to the extent not previously terminated or exercised) at any time during 120   the ninety (90) day period following such termination of employment, but only to the extent that 121   the Options were exercisable by the Optionee as of the date of termination of his employment; 122   and 123    124   (iv) except as otherwise provided in Section 2(b)(ii)(B) above, if the Optionee’s 125   employment with the Company is terminated for any reason, the Options shall, to the extent not 126   then exercisable, be canceled by the Company without any consideration. 127     128     (c) Exercise of Option.   129    130   (i) Options which have become exercisable may be exercised by (x) providing written 131   notice of exercise ten (10) days prior to the date of exercise, specifying the whole number of 132   shares for which the Options are being exercised, which notice shall be addressed to the 133   Company at its principal place of business, and (y) paying the aggregate Exercise Price specified 134   above, using any of the permitted methods of payment provided in Section 7.3(d) of the Plan. 135    136   (ii) The Company shall, upon payment of the aggregate Exercise Price and the Optionee’s 137   delivery of any agreement as reasonably required by the Plan Administrator as described below, 138   make prompt delivery of the shares of Stock for which the award has been exercised, provided 139   that if any law or regulation requires the Company to take any action before issuing the same, 140   then the date of delivery of such Stock shall be extended for the period necessary to complete 141   such action. No Stock shall be issued and delivered upon exercise of any Option unless and until 142   the Company’s counsel has determined that the Company has complied with all applicable 143   securities laws and any other law or regulation applicable to such issuance. The Plan 144   Administrator may require that the Optionee furnish or execute such other documents as the Plan 145   Administrator shall reasonably deem necessary to (A) evidence such exercise, and (B) comply 146   with or satisfy the requirements of applicable securities law or other applicable law. 147     148     (d) Withholding Taxes.  Without regard to the method of exercise and payment, the 149   Optionee shall pay to the Company, upon notice of the amount due, any withholding taxes 150   payable with respect to such exercise, which payment may be made, subject to the consent of the 151   Plan Administrator, with shares of Stock which would otherwise be issued pursuant to the 152   Options. 153     

 

Exhibit 10.4   6       154      (e) Acceleration.  Notwithstanding any other provisions of this Award to the 155   contrary, any unexercised Options (which have not otherwise terminated) shall immediately vest 156   and become exercisable in full upon the occurrence of: 157    158   (i) a Change of Control of the Company (which term, for clarity, is as defined in the Plan 159   and not in any other agreement),  160    161   (ii) the sale or other disposition of all, or substantially all, of the Company’s assets 162   located in the United States, 163    164    165     (f) Interpretation.  Optionee hereby acknowledges that this Award Agreement is 166   governed by the Plan, a copy of which Optionee hereby acknowledges having received, and by 167   such administrative rules and regulations relative to the Plan and not inconsistent therewith as 168   may be adopted and amended from time to time by the Plan Administrator (the “Rules”).  169   Optionee agrees to be bound by the terms and provisions of the Plan and the Rules.  In the event 170   of any conflict between the Plan and this Agreement, the terms of the Plan shall govern. 171   3. Optionee’s Obligations.  The Optionee acknowledges that the Options constitute 172   additional consideration for the obligations set forth in any applicable employment agreement, 173   any applicable written Company policy or any other agreement executed between the Company 174   and the Optionee (the “Obligations”).  By executing this Award Agreement the Optionee 175   reaffirms the Obligations.  All unexercised Options shall expire as of the date of any material 176   breach of the “Obligations,” as reasonably determined by the Plan Administrator. 177    178   4. Miscellaneous.   179    180   (a) Nontransferability of Option.  181   (i)  Restrictions Generally.  All rights hereunder are personal to the Optionee and neither 182   the Options nor any of the rights of the Optionee hereunder may be transferred, assigned, 183   pledged or hypothecated in any way (whether by operation of law or otherwise) except by the 184   laws of descent and distribution, nor shall any Option or any rights with respect thereto be 185   subject to execution, attachment or similar process.  Upon any attempted transfer, assignment, 186   pledge, hypothecation or other disposition of the Option or of any rights with respect thereto 187   contrary to the provisions of this Award Agreement, or upon the placement or levy of any 188   attachment or similar process on the Option or any of the Optionee’s rights hereunder, the Option 189   and all such rights shall expire and become null and void, unless the Plan Administrator, in its 190   discretion, determines otherwise. 191   (ii)  Permitted Transfers.   Notwithstanding anything to the contrary in Section 4(a)(i) 192   above, the Optionee may, with the consent of the Company, which shall not be unreasonably 193     

 

Exhibit 10.4   7      withheld, transfer by gift, of an Option to a trust or trusts (or other entity approved by the Plan 194   Administrator in its discretion) for the exclusive benefit of one or more members of the 195   Optionee's Immediate Family, provided that the Option shall continue to be subject to all of the 196   terms and conditions of this Award Agreement and the Plan as if no such transfer had occurred 197   and the Optionee and the transferee shall execute and deliver to the Company such instruments 198   or agreements as the Company may reasonably require to confirm the foregoing.  As used herein, 199   “Immediate Family” means, with respect to any person, such person’s child, stepchild, 200   grandchild, parent, stepparent, grandparent, spouse, brother, sister, mother-in-law, father-in-law, 201   son-in-law, daughter-in-law, brother-in-law, sister-in-law, including adoptive relationships (or 202   other family relationships specifically approved by the Plan Administrator).   Options are also 203   subject to transfer pursuant to the specific terms of any duly issued domestic relations order or 204   divorce decree. 205    (b)  No Special Rights.  The Optionee shall have no rights as a stockholder of the 206   Company with respect to any Stock subject to an Option unless and until a certificate 207   representing such Stock is duly issued and delivered to the Optionee or such share of Stock is 208   otherwise duly issued.  No adjustment shall be made for dividends or other rights for which the 209   record date is prior to the date such share of Stock is issued.  Nothing herein or in the Plan shall 210   be deemed to confer on the Optionee any right to continued employment with the Company or 211   limit in any way the right of the Company to terminate such employment at any time. 212     213    214    (d) Amendment; Modification.  This Agreement may not be amended or otherwise 215   modified unless evidenced in writing and signed by the Company and the Optionee. 216    217     (e) Notices.  Any notices or other communications required or permitted under this 218   Agreement (“Notices”) shall be in writing and shall be either personally delivered, sent by 219   express or first class mail (postage prepaid), return receipt requested, or sent by nationally 220   recognized overnight courier service (overnight delivery, charges prepaid), addressed as follows:  221     222     If to the Company:  223    224   One Stone Partners LLC 225   730 Fifth Avenue, 15th Floor 226   New York, NY 10019 227   Attn: Robert Israel 228    with a copy to: 229     230    Magellan Petroleum Corporation 231   1775 Sherman Street, Suite 1950 232     

 

Exhibit 10.4   8      Denver, CO 80203 233   Attn: General Counsel 234     If to the Optionee: To the Optionee’s address as set forth in the Company’s payroll 235   records. 236     237     Either party may change its address for Notices by written Notice to the other given in 238   accordance with this Section 4(e).  Notices shall be deemed given when delivered personally, 239   three days after deposit in the U.S. mail, or two business days after deposit with a nationally 240   recognized overnight courier service, as applicable.  241     242     (f) Decisions Binding.  Any Plan Administrator interpretation of the provisions of the 243   Plan or this Option Agreement shall be final and binding on all parties. 244    245     (g) Governing Law.  This Agreement shall be construed and governed in accordance with 246   the laws of the State of [Colorado], excluding any conflicts or choice of law principles which 247   might otherwise result in construction or interpretation of the Agreement under the 248   substantive law of another jurisdiction; provided, however, that all corporate law matters 249   with respect to the Company shall be governed by the Delaware General Corporation Law. 250     251     (h)  Entire Agreement; Successors and Assigns.  This Agreement and the Plan (i) contain 252   the entire Agreement of the parties relating to the Options and supersede any prior 253   agreements or understandings with respect thereto; and (ii) shall be binding upon and inure to 254   the benefit of the Company, its successors and assigns and the Optionee, his heirs, devisees 255   and legal representatives.  In the event of the Optionee’s death or a judicial determination of 256   his incompetence, reference in this Agreement to the Optionee shall be deemed to refer to his 257   legal representative, heirs or devisees, as the case may be. The Optionee shall keep the terms 258   of this Agreement strictly confidential, other than as may be necessary to enforce his or her 259   rights hereunder or as otherwise required by law. 260    (i)  No Right Under This Agreement or Plan to Continued Employment.  Nothing contained 261   in this Agreement or the Plan shall confer on Optionee any right to continue to be employed 262   by the Company or any subsidiary thereof, or shall limit the Company’s right to terminate the 263   employment of Optionee at any time; provided, however, that nothing contained in this 264   Agreement shall affect any separate contractual provisions that exist between Optionee and 265   the Company or its subsidiaries with respect to the employment of Optionee. 266    (j)  Receipt of Award and Related Documents.  Optionee hereby acknowledges the receipt, 267   either directly or electronically, of the Award, a Copy of the Plan, and prospectus for the 268   Plan. 269    (k)  Execution in Counterparts; Delivery of Signatures.  This Agreement may be executed in 270   counterparts, and executed signature pages may be delivered by email or fax transmission.  271     

 

Exhibit 10.4   9      Execution of a written instrument for this Agreement may be evidenced by any appropriate 272   form of electronic signature or affirmative email or other electronic response attached to or 273   logically associated with such written instrument, which is executed or adopted by a party 274   with an indication of the intention by such party to execute or adopt such instrument for 275   purposes of execution thereof. 276    277   [Signature Page Follows]278     

 

Exhibit 10.4   10        279   * * * * * * 280    281   IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its 282   authorized officer, as of the date identified below. 283     284            285   Agreed to:  MAGELLAN PETROLEUM 286   CORPORATION 287        288   By:  By:  289   Optionee:        Name:  290   Title:   291   Date:   292     293

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