Document:

Exhibit
10.1

 

EXPLORATION AND DEVELOPMENT AGREEMENT 

WITH AREA OF MUTUAL INTEREST

 

DJ NIOBRARA PROJECT

 

Weld County, Colorado

Laramie County, Wyoming

 

This
EXPLORATION AND DEVELOPMENT AGREEMENT WITH AREA OF MUTUAL INTEREST (this “Agreement”),
dated effective as of the 1st day of May, 2010 (the “Effective Date”), is by
and between Slawson Exploration Company, Inc.,
a Kansas corporation, whose principal place of business is 727 North Waco, Suite 400,
Wichita, Kansas, 67203 (hereafter “SECI”), and Voyager
Oil & Gas, Inc., whose address is 2812 1st Ave. N., Suite 506, Billings, Montana,
59101 (hereafter “Participant”).  SECI
and Participant may be hereinafter collectively referred to as “Party” or “Parties.”

 

RECITALS

 

A.                                   Whereas, SECI
has acquired State of Colorado Oil and Gas leasehold interests covering 32,960
gross and net acres in lands located in Weld County, Colorado, within SECI’s DJ
Niobrara Project.  Such State of Colorado
Oil and Gas Leases shall be hereafter referred to as “State Leases.”  The area of SECI’s DJ Niobrara Project is
depicted on Exhibit “A” attached hereto and covers all of Weld County,
Colorado, and all of Laramie County, Wyoming, said area being hereafter
referred to as the “Project Area.”  A
description of the State Leases is attached hereto as Exhibit “B.”

 

B.                                     Whereas, the
State Leases have expiration dates of November 15, 2010.  The State of Colorado has agreed that SECI
may extend the State Leases for an additional term of one year by:  (1) drilling three horizontal Niobrara
wells; (2) obtaining drilling permits on any other State Leases that SECI
desires to extend; (3) drilling and setting surface casing with a drilling
rig capable of drilling to a depth of 3,500 feet on each of the State Leases
that SECI desires to extend; and (4) paying prior to November 15,
2010 a $10 per acre rental fee for each of the State Leases that SECI desires
to extend.

 

C.                                     Whereas, in
order to extend the State Leases, SECI will, in most cases, be required to pay
100% of the costs to drill and set surface casing on wells where SECI does not
own 100% of the spacing unit. 
Nonetheless, should these wells be drilled at a later date to a depth
deeper than the surface casing, SECI will use its best efforts to recoup from
any third party that participates in the drilling operations to deepen these
wells, such third party’s share of costs to drill and set surface casing.

 

D.                                    Whereas,
Participant desires to participate with SECI in the leasing, evaluation,
drilling, and development of the Project Area pursuant to the provisions of
this Agreement and the agreements by which SECI acquires leasehold contracts
within the Project Area.

 

AGREEMENT

 

NOW
THEREFORE, the Parties hereto, for the mutual promises contained herein and
other good and valuable consideration, the sufficiency of which is hereby
acknowledged, do hereby contract and agree as follows:

 

ARTICLE 1.

Participation Interest

 

a.               By execution of this Agreement and payment of
funds as set forth in Article 2.a. below, Participant shall own a 50%
interest in the State Leases. Participant shall also have the right to acquire
a 30% interest in leases and lands (other than the State Leases) that are
acquired by the Parties in the Project Area, subject to the terms of this
Agreement.  Participant agrees to pay its
proportionate share of all reasonable actual costs incurred in the Project Area
pursuant to the terms set out herein. Participant agrees that any interest
acquired from SECI by Participant shall be subject to the terms of the State
Leases and any other leases, options, and other agreements by which those
leasehold interests are acquired in the Project Area by the Parties. 

 

1

 

Participant shall be assigned and delivered
proportionately reduced 79.5% net revenue interest leases in the State Leases.

 

As
to lands not covered by the State Leases in which SECI owns an interest,
Participant shall have a first right of refusal to acquire additional interests
(other than the 30% interest refusal above) from SECI in the event that SECI
elects to sell additional working interest in the Project Area. In the event
SECI elects to sell additional interest in the Project Area, SECI shall give
Participant written notice of the terms of the sale and Participant shall have
fifteen (15) days after receipt of such notice in which to make an election to
acquire such additional working interest from SECI under the terms of the
sale.  Failure by Participant to give
written notice to SECI within the 15-day period shall be deemed an election by
Participant to not acquire the additional working interest. This first right of
refusal shall not apply to any working interest that SECI may transfer to
Slawson family members or other companies that are owned by SECI or Slawson
family members.

 

ARTICLE 2.

Leasehold Expenses

 

a.               Participant shall pay SECI on or before June 23,
2010 the sum of seven million, five hundred thousand dollars ($7,500,000.00)
for costs associated with acquiring the State Leases.

 

b.              After the drilling of the first three horizontal
Niobrara wells described in Article 3 below, Participant shall pay SECI
the sum of $500.00 per net acre owned by Participant in the drillsite spacing
unit on such State Leases within ten (10) days after the date that SECI
commences operations to drill to deeper depths.

 

c.               After the drilling of the first three
horizontal Niobrara wells, as to any well drilled below the depth of surface
casing that includes leases other than State Leases, Participant shall pay SECI
the sum of $250.00 per net acre then owned by Participant in the drillsite
spacing unit in such other leases within ten (10) days after the date that
SECI commences operations to drill to deeper depths.

 

d.              Should SECI acquire leasehold interests in the
AMI (as defined in Article 14) through a land trade, such as drilling a
well for a third party where a third party only retains an overriding royalty
interest, that does not include the payment of funds by SECI to earn such
leasehold interests, it shall be deemed that the acreage so earned shall have a
value of $500.00 per net acre and Participant shall pay SECI the sum of $500.00
per net mineral acre acquired by Participant in such leasehold earned by
SECI.  As to any lands earned through a
farmin where a third party retains the right to receive a backin working
interest after payout of a well, Participant shall not be subject to a
leasehold payment, but will be entitled to its proportionate share of such
leasehold earned.  Participant shall pay
SECI within ten (10) days after the date that the leasehold is earned by
SECI.

 

e.               As to subsequent acquisitions of leasehold
interests acquired pursuant to the terms of this Agreement, other than
leasehold acquired under the terms of Article 2.d., Participant shall pay
50% of all the costs to acquire such leasehold interest, including brokerage
fees, for a 30% interest in such acquired leasehold interests.  Participant shall remit payment for such
leasehold within ten (10) days from the date of invoice therefor.  Failure to remit payment within said ten (10) days
shall be deemed an election not to participate in the leasehold acquisition.

 

ARTICLE 3.

Participation Terms

 

a.               Three (3) Horizontal Niobrara Wells.  SECI
has proposed the drilling of three (3) horizontal Niobrara wells to be
located on the State Leases that have full interest in the 640-acre spacing
unit for each well.  It is anticipated
that the first well will spud on July 1, 2010, with the remaining two
wells to be drilled back to back after the first well.  Participant agrees to participate in all
costs to drill, equip, complete, test, and plug each of the initial three (3) horizontal
Niobrara wells with its 50% working interest 

 

2

 

and agrees to sign and return a copy of SECI’s
Authority for Expenditure (“AFE”) prior to the drilling of each well.  Participant will pay all AFE costs for each
well on an at-cost basis no later than two (2) business days following the
actual spud date of the well.  SECI is
subject to a non-performance payment of $400,000.00, to a third party, for each
of the three wells that are not drilled. 
SECI agrees to use best efforts to drill each of the three wells.  If for any reason all three wells are not
drilled, Participant shall be obligated to pay 50% of the performance penalty
for any of the three wells not drilled.

 

b.              Drilling and Setting Surface Casing.  As to
any well that is drilled prior to November 15, 2010 to a depth to set
surface casing on State Leases for the purpose of receiving a one year
extension to the term of such lease, Participant agrees to participate in all
costs to drill and set surface casing and all costs to plug each well with a
50% working interest.  SECI will provide
Participant with an informational AFE showing the estimated costs through the setting
of surface casing.  Participant will pay
such AFE costs for each well on an at-cost basis no later than two (2) business
days following the actual spud date of the well.  It is understood that SECI and Participant
may be required to pay 100% of the cost to drill and set surface casing on some
wells in order to obtain a one-year extension on State Leases even though the
Parties may not own 100% of the spacing unit. 
SECI will use its best efforts to recoup payment from a third party at
any time for the setting of surface casing and if payment is received, SECI
shall credit Participant with 50% of the funds received by such third party.

 

c.               Election to Not Participate in Drilling on
State Leases.  Should either SECI or Participant elect to or
be deemed to not participate in the deepening of a well on State Leases after
surface casing has been set, the Party electing not to participate shall
forfeit all of its interest in any section located within two (2) miles of
the section line for the applicable spacing unit, except that no
forfeiture shall occur as to lands within a spacing unit in which State Leases
are located, and in which such Party has participated in a well beyond the
setting of surface casing.  The forfeiting party shall not receive
any refund of costs associated with the forfeited leases or well costs.

 

ARTICLE 4.

Geophysical and Geological Data

 

Participant
shall own in proportion to its share of interest in the Project Area, and shall
have access to review, all geophysical and exploration data acquired by SECI
within the Project Area.  Participant
will participate and pay its proportionate share of costs plus 10% on any newly
acquired seismic in the Project Area acquired by SECI or a third party, up to a
maximum aggregate amount of $3,000,000.00. 
Participant must consent or agree to the acquisition of any seismic
costs in excess of $3,000,000.00. 
Participant agrees to pay SECI within ten (10) days after receipt
of an invoice for such costs.

 

ARTICLE 5.

Other Costs

 

As
to all other costs not covered in the preceding paragraphs, Participant shall
pay, on an at cost basis, its Participation Interest share of all other
reasonable actual third party costs incurred in the Project Area, or chargeable
under the applicable Joint Operating Agreement to operations in which
Participant elects to participate, or in which Participant is obligated to
participate by execution hereof, pursuant to the provisions of this Agreement.

 

ARTICLE 6.

Assignment of Leasehold Interest

 

SECI
shall assign to Participant its Participation Interest in the lease(s) comprising
the spacing unit for the applicable wells in each instance no later than sixty
(60) days following the rig release date; provided, however, that in the event
Participant is required under the terms of its senior lending facility to
assign such rights to such lender, such assignment shall be made as soon as
reasonably practicable but no sooner than thirty (30) days following the rig
release date.  On the second anniversary
of the date of this Agreement, SECI shall assign to Participant its 

 

3

 

Participation
Interest in all of the lease(s) depicted on Exhibit “B” that are
still in effect, to the extent not previously assigned to Participant.

 

 ARTICLE 7.

 

Drilling
Proposals on Lands Other Than on the State Leases

 

a.               SECI will develop a drilling program for the
identified well site(s), focusing on a logical development of the Project
Area.  SECI will generally be responsible
for initiating well proposals to Participant and other parties participating;
however, either Party that owns an interest in the State Leases or the other
leases may recommend the drilling of a well. 
If SECI receives a well recommendation from Participant relative to a
proposed location and SECI does not initiate a well proposal comparable to that
received from Participant for circulation to all participants within thirty
(30) days of receipt of Participant’s drilling recommendation, then Participant
may initiate a proposal relative to such proposed site.  Any such well shall be governed by this
agreement and references herein to “Participant” and “SECI” shall refer to SECI
and Participant, respectively.

 

b.              A well shall be proposed by the Parties by
mailing to all working interest owners a proposal identifying the location of
the well to be drilled, the objective(s) to be tested and an AFE.  Parties receiving this well proposal will
have twenty (20) days from the date of receipt to elect to either: (1) participate
as to their working interest in the proposed drilling venture; or (2) elect
not to participate in the proposed drilling venture.  Elections shall be made in writing to the
Party proposing the well.  Failure to
timely elect shall be deemed to constitute an election not to participate in
the proposed drilling venture.  Any Party
electing not to participate in the well shall forfeit all rights in any section
located within one (1) mile of the section line for the applicable spacing
unit.  The non-participating party shall
reassign to the participating party all such leasehold working interest that it
owns in the section or spacing unit, as appropriate, at no cost to the
participating party.  Notwithstanding the
foregoing, however, in order for any such forfeiture to occur and be binding on
the non-participating party, a rig capable of drilling the well to total depth
must commence drilling the well within a period of ninety (90) days after the
date of the expiration of the election period. The non-participating party
shall not be required to relinquish lands that are included in a spacing unit
for a well in which that party participated, nor any area that is part of a
spacing unit for a well which is then drilling and in which that party is
participating.  Participation elections
in subsequent wells within an established spacing unit shall be subject to the
non-consent provisions of the applicable Joint Operating Agreement.

 

c.               For each well in the Project Area in which
Participant elects to participate or is required to participate by execution
hereof, Participant shall pay its proportionate share of all AFE costs and any
other well-specific project costs on an at-cost basis no later than two (2) business
days following the actual spud date of a well.

 

ARTICLE 8.

Proposals
on State Lands

 

a.               For each well that SECI proposes to deepen,
SECI will mail to Participant a proposal identifying the location and objective(s) to
be tested and an AFE.  Participant will
have twenty (20) days from the date of receipt to elect to either: (1) participate
with its full working interest in the proposed operation, or (2) elect not
to participate in the proposed operation. 
Failure to timely elect shall be deemed to constitute an election not to
participate in the deepening of such well, and such non-participating party
will be subject to the penalties set out in Article 3.b. herein.

 

ARTICLE 9.

Joint Operating Agreement

 

Except
for participation elections and penalties resulting from those elections on
wells which are specifically governed by this Agreement, the drilling of all
jointly owned wells shall 

 

4

 

be
governed by the form of Joint Operating Agreement (“JOA”), attached hereto as Exhibit “C,”
within the Project Area and shall cover the spacing unit in which each well is
drilled.  In the event of a conflict
between the terms of this Agreement and the JOA, the terms of this Agreement
shall prevail.

 

ARTICLE 10.

Funding Obligation — Well Costs

 

a.               As to all wells drilled to a depth to set
surface casing for the purpose of extending State Leases, and in which
Participant has elected to participate in the deepening of such well, SECI
shall provide Participant with written notice of the commencement of deepening
of each well and notice of any required payment for AFE costs.  Participant and SECI shall likewise be
obligated to pay to SECI, or into a drilling contractor’s escrow account if
required, their share of remaining AFE costs through completion no later than
ten (10) days of receipt of notice or two (2) days following the
commencement of deepening operations on any well, whichever is the latter.  Failure to timely make payment within five (5) days
following receipt of written notice of failure to make such payment may, at
SECI’s option, be deemed to constitute a modification of Participant’s
election, and Participant shall be deemed to have elected not to participate
with respect to that operation in the applicable well.

 

As
to all other wells drilled within the Project Area, Participant agrees to
timely remit payment for all wells costs as required pursuant to the terms of
this Agreement.  Failure to timely make
any such payment or to make payment within five (5) days following receipt
of written notice of failure to make such payment shall constitute, at the SECI’s
option, an election by Participant not to participate in the well.  SECI, at its option, may either declare the
Participant to be a non-participating party in the well or require payment of
the amount due from Participant based upon the participation election
previously made by Participant.

 

ARTICLE 11.

Net Revenue Interest

 

Participant
shall acquire from SECI a net revenue interest in leasehold acquired in the
Project Area equal to the net revenue interest acquired by SECI, less an
overriding royalty interest of 3% of 8/8ths in favor of SECI, proportionately
reduced to the interest acquired by Participant as to all leasehold other than
State Leases which will be assigned to Participant at a proportionate 79.5% net
revenue interest.  Notwithstanding the foregoing,
Participant shall not be delivered a net revenue interest lease less than 77%
unless the net revenue interest received by SECI is less than 77%, then the net
revenue interest delivered to Participant shall be that received by SECI.

 

ARTICLE 12.

Leasehold

 

SECI
shall be responsible for acquiring leases by direct purchase and/or pursuant to
option agreements or other contractual agreements.  Upon completion of a well in which
Participant has participated through completion, SECI shall assign to Participant
its proportionate share of the lease(s) comprising the spacing unit for
the applicable well.  SECI shall be
responsible for maintenance of leases within the Project Area and shall timely
remit lease payments, rental and option extensions when due, and comply with
the other obligations of the lease(s) and option agreements on behalf of
Participant.  SECI shall not be liable
for either direct or consequential damages resulting from SECI’s failure to
timely make lease payment, rental or extension payment absent a showing of
negligence, willful misconduct or wanton disregard of responsibilities in the
failure to make such payment. 
Participant agrees to bear its proportionate share of any such payment
incurred by SECI on its behalf.

 

ARTICLE 13.

Billings

 

Except
as otherwise provided above, billings attributable to Participant’s interest in
leases and operated wells shall be billed and payable pursuant to the
accounting provisions of the applicable JOA.

 

5

 

ARTICLE 14.

AMI

 

An
Area of Mutual Interest (AMI) shall be established within the boundaries of the
Project Area.  The AMI shall be for a
period of three (3) years from the date of this Agreement.  Subject only to the specific terms of this
Agreement to the contrary, a Party acquiring an interest in leasehold within
the boundary of the AMI and during its term shall be obligated to offer the
leasehold to the other Party in the proportion that each Party owns in non
state lands under this Agreement. The acquiring party shall give the
non-acquiring Party written notice of all information relevant to the leasehold
acquired. The non-acquiring Party shall have 20 days after receipt of notice
from the acquiring Party to elect, in writing, to participate in such acquisition.
Failure to make an election to participate in the acquisition within the twenty
(20) day period shall be deemed an election to not participate in the
acquisition. Should a Party elect not to take its proportionate share of a
leasehold interest, the non-acquiring Party shall forfeit its right to
participate in future leasehold acquisitions in all sections of land that fall
within a 3-mile radius of the lands being acquired in such leasehold
acquisition.

 

ARTICLE 15.

Term

 

The
terms of this Agreement shall bind the Parties as to activities on the
leasehold acquired pursuant to this Agreement for the term of each leasehold
interest and any extension or renewal of each leasehold interest, or as to
lands within a producing spacing unit for so long as an applicable JOA remains
in effect within the boundaries of a spacing unit.

 

ARTICLE 16.

Notices

 

All
notices required hereunder shall be considered given when delivered personally,
or when received by e-mail, facsimile, or US Mail, properly addressed as follows:

 

	
  SECI:

  	
   

  	
  Slawson
  Exploration Company, Inc.

  
	
  Address:

  	
   

  	
  727
  North Waco, Suite 400

  
	
  City,
  ST:

  	
   

  	
  Wichita,
  KS 67203

  
	
  Phone:

  	
   

  	
  (316)
  263-3201

  
	
  Fax:

  	
   

  	
  (316)
  268-0702

  
	
  E-mail:

  	
   

  	
  cstokes@slawsoncompanies.com

  
	
   

  	
   

  	
   

  
	
  Participant:

  	
   

  	
  Voyager
  Oil & Gas, Inc.

  
	
  Address:

  	
   

  	
  2812
  1st Ave. N., Suite 506

  
	
  City,
  ST:

  	
   

  	
  Billings,
  MT 59101

  
	
  Phone:

  	
   

  	
  (406)
  245-4901

  
	
  Fax:

  	
   

  	
  (406)
  245-4914

  
	
  E-mail:

  	
   

  	
  jr.reger@voyageroil.com

  
	
   

  	
   

  	
  mitch.thompson@voyageroil.com

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with
  a copy (which shall not constitute notice) to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Thomas
  F. Steichen

  
	
   

  	
   

  	
  Fredrikson &
  Byron, P.A.

  
	
   

  	
   

  	
  200
  South Sixth Street

  
	
   

  	
   

  	
  Minneapolis,
  MN 55402

  
	
   

  	
   

  	
  Fax:
  (612) 492-7077

  
	
   

  	
   

  	
  tsteichen@fredlaw.com

  

 

ARTICLE 17.

Nature of Agreement

 

The
liabilities of the Parties shall be several and not joint or collective and
each Party shall be responsible only for its share of the costs and liabilities
incurred as provided hereunder.  It is
not the purpose or intention of this Agreement to create any partnership,
mining partnership, 

 

6

 

or
association, and neither this Agreement nor the operations hereunder shall be
construed or considered as creating any such legal relationship.

 

ARTICLE 18.

Marketing

 

SECI
shall be responsible for marketing 100% of the production from the wells
drilled pursuant to this Agreement, and shall account to Participant for its
proportionate share thereof. 
Participant, however, shall have the right to take and market its
production in kind, but in doing so shall also assume the obligations of
disbursing revenue to royalty and any others burden to its interest.

 

ARTICLE 19.

Operations

 

SECI
will be the operator of the Project Area, including drilling, completing and
producing phases of spacing units.  In
the event multiple third party working interest owners exist in a proposed
spacing unit for a well, Participant shall nominate SECI as operator for the
spacing unit.

 

ARTICLE 20.

Miscellaneous
Provisions

 

b.              Entire Agreement, Amendment.  This
Agreement constitutes the entire agreement between the Parties with respect to
the subject matter hereof. There are no verbal understandings, agreements,
representations or warranties which are not expressly set forth herein.  This Agreement supersedes all prior
agreements and understandings between the Parties, both written and oral. This
Agreement may not be amended, modified, altered, or changed in any respect
except in writing, signed by the Parties hereto.

 

c.               Headings. The paragraph headings of this Agreement are
inserted for convenience only, and should not be considered a part of this
Agreement or used in its interpretation.

 

d.              Jurisdiction.   The
Parties may only bring an action to resolve a dispute with respect to the
subject matter hereof in the state or federal courts located in Denver County,
Colorado. Said court shall have exclusive jurisdiction and each of the Parties
submits to the sole jurisdiction of such court in any such action and waives
all defenses relating to improper venue or personal jurisdiction.

 

e.               No Consequential Damages. 
Neither Party shall be entitled to claim or recover from the other
Party, and each Party hereby disclaims, releases and waives any claim against
the other Party for any special, punitive, exemplary, indirect or consequential
damages.

 

f.                 Governing Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
state of Colorado, except with respect to substantive oil and gas and real
property matters which shall be governed and construed in accordance with the
laws of the state of Colorado.

 

g.              Severability. In the event any one or more of the provisions
contained in this Agreement shall for any reason be declared to be invalid,
illegal, unenforceable, or void in any respect, such declaration shall not have
the effect of invalidating or voiding the remainder of this Agreement, and the
parties hereto agree that the part or parts of this Agreement so held to be
invalid, illegal, unenforceable, or void will be deemed to have been stricken
herefrom and the remainder will have the same force and effectiveness as if such
part had never been included herein.

 

h.              Construction.  The
Parties acknowledge that each Party and its counsel have had the opportunity to
review and negotiate the terms and conditions of this Agreement, and that the
normal rule of construction to the effect that any ambiguities are to be
construed against the drafting party shall not be employed in the
interpretation of this Agreement or any exhibits or amendments hereto.

 

7

 

i.                  Counterparts.  This Agreement
may be executed in one or more counterparts and delivered via facsimile or
e-mail, each of which shall be deemed an original, but all of which together
shall constitute but one and the same instrument.  Any signature delivered via facsimile or
e-mail shall be deemed to be an original signature hereto.

 

j.                  Binding Effect.  This
Agreement shall inure to the benefit of and be binding upon not only the
Parties hereto, but their respective heirs, successors, and assigns.

 

k.               Prohibited Encumbrance..  If
Participant, after receiving a recorded leasehold assignment, encumbers,
hypothecates, mortgages, or pledges any or all interests so acquired from SECI,
Participant nevertheless expressly agrees that SECI has a first and prior right
of lien and offset against any revenues payable to Participant to the extent of
any delinquent and unpaid expenses then and thereafter owed to SECI, and
Participant expressly agrees that such first and prior right of lien and offset
will be preserved in favor of SECI in any documents executed by Participant
which create an encumbrance.  .

 

l.                  Press Releases.  SECI
acknowledges that Participant will be required to publicly announce this
Agreement and file a copy of this Agreement with the Unites States Securities
and Exchange Commission.  Participant and
SECI agree to not release any press release on any well for a term of three (3) months
following the date of completion of fracture stimulation of a well, unless
required by applicable securities disclosure laws or regulations on the advice
of legal counsel. Participant and SECI shall consult with each other with
regard to all press releases and other announcements issued after the date of
execution of this agreement and, except as may be required by applicable laws
or the applicable rules of any governmental agency or stock exchange,
Participant and SECI shall not issue any such press release or other publicity
without the prior written consent of the other Party, which consent shall not
be unreasonably withheld or delayed.

 

Executed
effective as of the day and year first above written.

 

	
   

  	
  VOYAGER
  OIL & GAS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J.R. Reger

  
	
   

  	
   

  	
   

  
	
   

  	
  Print
  Name:

  	
  James
  R. (J.R.) Reger

  
	
   

  	
   

  	
   

  
	
   

  	
  Print
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  Date
  of Execution:

  	
  June 23,
  2010

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SLAWSON
  EXPLORATION COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Coni J. Stokes

  
	
   

  	
  Coni
  J. Stokes, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  Date
  of Execution:

  	
  June 22,
  2010

  
								

 

8

 

EXHIBITS

 

	
  Exhibit

  	
   

  	
  Description

  
	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Project Area

  
	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  State Lease Descriptions

  
	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  Joint Operating Agreement

  

 

9

 

 

 

Exhibit
“B”

Colorado
State Leases

 

	
   

  	
   

  	
  Lessor

  	
   

  	
  Lease date

  	
   

  	
  Lease desc

  	
   

  	
  SEC

  	
   

  	
  TWN

  	
   

  	
  RNG

  	
   

  	
  Gross

  acres

  	
   

  	
  Surface

  Gross

  acres

  	
   

  	
  Net acres

  	
   

  	
  Mineral

  interest

  	
   

  	
  Lessor Royalty

  	
   

  	
  Existing ORRI

  	
   

  	
  Expiration

  	
   

  
	
  1

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  N2SW:SESW:W2SE:SESE
  Section 5

  	
   

  	
  5

  	
   

  	
  9N

  	
   

  	
  62W

  	
   

  	
  240

  	
   

  	
  240

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  2

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  1-3 S2NE,NESE Section: 6

  	
   

  	
  6

  	
   

  	
  9N

  	
   

  	
  62W

  	
   

  	
  239.44

  	
   

  	
  239.44

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  3

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  NE:NESE
  Section: 8

  	
   

  	
  8

  	
   

  	
  9N

  	
   

  	
  62W

  	
   

  	
  200

  	
   

  	
  200

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  4

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  SW
  Section: 9

  	
   

  	
  9

  	
   

  	
  9N

  	
   

  	
  62W

  	
   

  	
  160

  	
   

  	
  160

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  5

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  16

  	
   

  	
  9N

  	
   

  	
  62W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  6

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  2-4:E2SW:SWSE Section 18: Township: 9

  	
   

  	
  18

  	
   

  	
  9N

  	
   

  	
  62W

  	
   

  	
  243.64

  	
   

  	
  243.64

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  7

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  N2NE:NENW
  Section: 19

  	
   

  	
  19

  	
   

  	
  9N

  	
   

  	
  62W

  	
   

  	
  120

  	
   

  	
  120

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  8

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  W2NW:SENW:N2SW:SESW:S2SE:NWSE
  Section:20

  	
   

  	
  20

  	
   

  	
  9N

  	
   

  	
  62W

  	
   

  	
  360

  	
   

  	
  360

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  9

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  SWNE:NW:NESW:NWSE
  Section: 28

  	
   

  	
  28

  	
   

  	
  9N

  	
   

  	
  62W

  	
   

  	
  280

  	
   

  	
  280

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  10

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  N2NE
  Section: 29

  	
   

  	
  29

  	
   

  	
  9N

  	
   

  	
  62W

  	
   

  	
  80

  	
   

  	
  80

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  11

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  9N

  	
   

  	
  62W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  12

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lot
  2 & 4:SENE:E2SE

  	
   

  	
  4

  	
   

  	
  9N

  	
   

  	
  63W

  	
   

  	
  200.9

  	
   

  	
  200.9

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  13

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  NWNE:S2NE:NWSE

  	
   

  	
  10

  	
   

  	
  9N

  	
   

  	
  63W

  	
   

  	
  160

  	
   

  	
  160

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  14

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  S2SE

  	
   

  	
  11

  	
   

  	
  9N

  	
   

  	
  63W

  	
   

  	
  80

  	
   

  	
  80

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  15

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  N2:NESE

  	
   

  	
  13

  	
   

  	
  9N

  	
   

  	
  63W

  	
   

  	
  360

  	
   

  	
  360

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  16

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  16

  	
   

  	
  9N

  	
   

  	
  63W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  17

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  3 & 4:E2SW:SE

  	
   

  	
  18

  	
   

  	
  9N

  	
   

  	
  63W

  	
   

  	
  321.37

  	
   

  	
  321.37

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  18

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  NW:E2SW:SE

  	
   

  	
  20

  	
   

  	
  9N

  	
   

  	
  63W

  	
   

  	
  400

  	
   

  	
  400

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  19

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  S2NW:SW:W2SE

  	
   

  	
  28

  	
   

  	
  9N

  	
   

  	
  63W

  	
   

  	
  320

  	
   

  	
  320

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  20

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  9N

  	
   

  	
  63W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  21

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  NWSW:S2S2

  	
   

  	
  28

  	
   

  	
  9N

  	
   

  	
  64W

  	
   

  	
  200

  	
   

  	
  200

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  22

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  NWSW:S2SW

  	
   

  	
  34

  	
   

  	
  9N

  	
   

  	
  64W

  	
   

  	
  120

  	
   

  	
  120

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  23

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  9N

  	
   

  	
  64W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  24

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  SW:NESE:S2SE

  	
   

  	
  4

  	
   

  	
  9N

  	
   

  	
  65W

  	
   

  	
  280

  	
   

  	
  280

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  25

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  16

  	
   

  	
  9N

  	
   

  	
  65W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  26

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lot
  1:SWNE:NENW:N2SE:SESE

  	
   

  	
  18

  	
   

  	
  9N

  	
   

  	
  65W

  	
   

  	
  236.5

  	
   

  	
  236.5

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  27

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  E2

  	
   

  	
  36

  	
   

  	
  10N

  	
   

  	
  61W

  	
   

  	
  320

  	
   

  	
  320

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  

 

 

	
  28

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  16

  	
   

  	
  10N

  	
   

  	
  62W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  29

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  1-4:E2SW

  	
   

  	
  31

  	
   

  	
  10N

  	
   

  	
  62W

  	
   

  	
  234.44

  	
   

  	
  234.44

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  30

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  SWNE:NENW:SESE

  	
   

  	
  32

  	
   

  	
  10N

  	
   

  	
  63W

  	
   

  	
  120

  	
   

  	
  120

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  31

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  10N

  	
   

  	
  63W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  32

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  10N

  	
   

  	
  64W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  33

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lot
  1:SENE:E2SE

  	
   

  	
  6

  	
   

  	
  10N

  	
   

  	
  65W

  	
   

  	
  161.12

  	
   

  	
  161.12

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  34

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  16

  	
   

  	
  10N

  	
   

  	
  65W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  35

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  10N

  	
   

  	
  65W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  36

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  E2

  	
   

  	
  14

  	
   

  	
  11N

  	
   

  	
  65W

  	
   

  	
  320

  	
   

  	
  320

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  37

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  16

  	
   

  	
  11N

  	
   

  	
  65W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  38

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  E2E2

  	
   

  	
  30

  	
   

  	
  11N

  	
   

  	
  65W

  	
   

  	
  160

  	
   

  	
  160

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  39

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  11N

  	
   

  	
  65W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  40

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  1 & 2:S2N2:S2 (All)

  	
   

  	
  2

  	
   

  	
  11N

  	
   

  	
  66W

  	
   

  	
  639.16

  	
   

  	
  639.16

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  41

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  1-4:S2NE:SENW:E2SW

  	
   

  	
  6

  	
   

  	
  11N

  	
   

  	
  66W

  	
   

  	
  493.83

  	
   

  	
  493.83

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  42

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  NE:S2

  	
   

  	
  8

  	
   

  	
  11N

  	
   

  	
  66W

  	
   

  	
  480

  	
   

  	
  480

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  43

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  16

  	
   

  	
  11N

  	
   

  	
  66W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  44

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lot
  1:E2:E2NW

  	
   

  	
  18

  	
   

  	
  11N

  	
   

  	
  66W

  	
   

  	
  480.6

  	
   

  	
  480.6

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  45

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  NE

  	
   

  	
  20

  	
   

  	
  11N

  	
   

  	
  66W

  	
   

  	
  160

  	
   

  	
  160

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  46

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  E2NW:NWSE

  	
   

  	
  32

  	
   

  	
  11N

  	
   

  	
  66W

  	
   

  	
  120

  	
   

  	
  120

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  47

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  11N

  	
   

  	
  66W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  48

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  1 & 2:S2N2:SW:N2SE

  	
   

  	
  2

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  559.76

  	
   

  	
  559.76

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  49

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lot
  2:S2NW:SW

  	
   

  	
  4

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  322.93

  	
   

  	
  322.93

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  50

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  W2
  of Lot 1:Lot 4:SWNE:E2SW:W2SE

  	
   

  	
  6

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  305.86

  	
   

  	
  305.86

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  51

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  E2

  	
   

  	
  8

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  320

  	
   

  	
  320

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  52

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  10

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  53

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  12

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  54

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  14

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  55

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  16

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  56

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  1 & 2:E2:E2W2(All)

  	
   

  	
  18

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  608.2

  	
   

  	
  608.2

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  57

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  N2NE:SENE:NW:NESE

  	
   

  	
  22

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  320

  	
   

  	
  320

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  58

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  24

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  59

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  S2
  of Lot1:Lot2:SESW:S2SE

  	
   

  	
  30

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  216.36

  	
   

  	
  216.36

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  60

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  SWNW:NWSW:S2SW

  	
   

  	
  32

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  160

  	
   

  	
  160

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  

 

 

	
  61

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  11N

  	
   

  	
  67W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  62

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  12N

  	
   

  	
  64W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  63

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lot
  2:E2SW(SW)

  	
   

  	
  30

  	
   

  	
  12N

  	
   

  	
  65W

  	
   

  	
  157.16

  	
   

  	
  157.16

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  64

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  12N

  	
   

  	
  65W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  65

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots1-4:S2N2:S2

  	
   

  	
  20

  	
   

  	
  12N

  	
   

  	
  66W

  	
   

  	
  584.99

  	
   

  	
  584.99

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  66

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  W2W2

  	
   

  	
  28

  	
   

  	
  12N

  	
   

  	
  66W

  	
   

  	
  160

  	
   

  	
  160

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  67

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  1 & 2:E2W2:E2

  	
   

  	
  30

  	
   

  	
  12N

  	
   

  	
  66W

  	
   

  	
  651.24

  	
   

  	
  651.24

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  68

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  NW:S2

  	
   

  	
  32

  	
   

  	
  12N

  	
   

  	
  66W

  	
   

  	
  480

  	
   

  	
  480

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  69

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  12N

  	
   

  	
  66W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  70

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lot1:S2NE:NESW:NWSE

  	
   

  	
  20

  	
   

  	
  12N

  	
   

  	
  67W

  	
   

  	
  176.5

  	
   

  	
  176.5

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  71

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  1-4:S2N2:N2SW:SWSW:SE

  	
   

  	
  22

  	
   

  	
  12N

  	
   

  	
  67W

  	
   

  	
  498.36

  	
   

  	
  498.36

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  72

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  1-4:S2N2:S2

  	
   

  	
  24

  	
   

  	
  12N

  	
   

  	
  67W

  	
   

  	
  533.07

  	
   

  	
  533.07

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  73

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  26

  	
   

  	
  12N

  	
   

  	
  67W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  74

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  28

  	
   

  	
  12N

  	
   

  	
  67W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  75

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  Lots
  1 & 2:E2:E2W2(All)

  	
   

  	
  30

  	
   

  	
  12N

  	
   

  	
  67W

  	
   

  	
  615.44

  	
   

  	
  615.44

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  76

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  N2NE:SENE:NENW:S2SE

  	
   

  	
  32

  	
   

  	
  12N

  	
   

  	
  67W

  	
   

  	
  240

  	
   

  	
  240

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  77

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  N2:SW

  	
   

  	
  34

  	
   

  	
  12N

  	
   

  	
  67W

  	
   

  	
  480

  	
   

  	
  480

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
  78

  	
   

  	
  State
  of Colorado

  	
   

  	
  *

  	
   

  	
  All

  	
   

  	
  36

  	
   

  	
  12N

  	
   

  	
  67W

  	
   

  	
  640

  	
   

  	
  640

  	
   

  	
  *

  	
   

  	
  100.00

  	
  %

  	
  12.50%

  	
   

  	
  5.00%

  	
   

  	
  *

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

*
Confidential treatment has been requested with respect to certain portions of
this exhibit.  Omitted portions have been
filed separately with the Securities and Exchange Commission.Exhibit 10.1

 

SECOND AMENDMENT TO LEASE

 

This
SECOND AMENDMENT TO LEASE (“Second Amendment”) is made as of the seventh (7th) day of July, 2010, by and
between 5200 PATRICK HENRY ASSOCIATES LLC, a Delaware limited liability company
(“Landlord”), and COHERENT, INC., a Delaware corporation (“Tenant”).

 

RECITALS

 

A.            Landlord (as successor-in-interest
to S B C & D Co., Inc.) and Tenant are parties to that certain
Lease dated September 14, 2007 (the “Original Lease”) pursuant to which
Landlord leases to Tenant, and Tenant leases from Landlord, that certain
premises, consisting of approximately ninety thousand one hundred twenty
(90,120) square feet of gross leasable area, the address of which is 5200
Patrick Henry Drive, Santa Clara, California, and which is located within the
Building as shown on Exhibit A attached to the Original Lease (the “Premises”).

 

B.            Landlord and Tenant are parties to
that certain First Amendment to Lease dated February 4, 2008 (the “First
Amendment”) pursuant to which, among other things, Landlord agreed to construct
or install certain tenant improvements in the Premises for the benefit of
Tenant and the Base Monthly Rent required to be paid by Tenant to Landlord
pursuant to the terms of the Original Lease was modified. The Original Lease,
as amended by the First Amendment, is referred to herein as the “Lease”.

 

C.            The initial Term of the Lease is
currently scheduled to expire on April 30, 2015.   Subject to the terms and conditions set
forth in this Second Amendment,  Tenant
and Landlord desire to amend, modify and supplement, as the case may be, the
Lease to, among other things, (i) extend the expiration date of the
initial Term of the Lease to July 31, 2020, (ii) establish the Base
Monthly Rent payable by Tenant to Landlord during the period commencing August 1,
2010 through July 31, 2020, (iii) provide for the right of Tenant to
undertake, or cause to be undertaken, certain alterations or improvements in a
portion of the Premises (not exceeding twenty percent of the entire Premises)
without any obligation to restore such limited area in which such alterations
or improvements are undertaken, and (iv) provide for an extension of the
leak maintenance contract Landlord has obtained with respect to the roof of the
Building in which the Premises are located.

 

D.            Capitalized terms used in this
Second Amendment shall have the meaning ascribed to such terms in the Lease,
unless otherwise defined in this Second Amendment.

 

NOW,
THEREFORE, in consideration of the foregoing recitals and other consideration,
the sufficiency of which is hereby acknowledged, the parties hereto amend,
modify and supplement the Lease as follows:

 

1.             Extension of Initial Lease Term.  Notwithstanding anything to the contrary
contained in the Lease, Landlord and Tenant hereby extend the expiration date
of the initial Term of the Lease to July 31, 2020.  Section J of the Summary of Basic Lease
Terms 

 

1

 

incorporated
into the Original Lease is hereby amended to provide that the initial Lease
Term is extended through and including July 31, 2020, unless sooner
terminated or extended in accordance with the terms of the Lease (including
pursuant to the extension options in Section 2.6 of the Lease), as amended
by this Second Amendment.  Tenant shall
continue to have two (2) options to extend the Lease Term at the end of
the extended initial Lease Term as provided in Section 2.6 of the Lease.

 

2.             Condition of Premises.  Tenant hereby agrees and warrants that it is
familiar with the condition of the Premises and the suitability of same for
Tenant’s purposes, and, except to the extent the same are Landlord’s
responsibility under the Lease, Tenant does hereby waive and disclaim any
objection to, cause of action based upon, or claim that its obligations
hereunder should be reduced or limited because of, the existing condition of
the Premises, the Building in which the Premises is located or the Project, or
any portion thereof, or the suitability of the same for Tenant’s purposes.  Tenant acknowledges that neither Landlord nor
any agent nor any employee of Landlord has made any representations or warranty
with respect to the Premises, the Building in which the Premises is located or
the Project, except to the extent expressly set forth in the Lease, or with
respect to the suitability of same for the conduct of Tenant’s business.  Tenant further agrees and acknowledges that
Landlord has no obligation to alter, improve or refurbish the Premises, or any
portion thereof, for Tenant’s use or benefit, except as expressly required
under the Lease, or to provide Tenant an allowance for such purpose.  Tenant also acknowledges and agrees that, to
Tenant’s actual knowledge, without inquiry, all Tenant Work and Tenant
Improvements required by the Lease to be completed by Landlord have been
completed in the manner and in accordance with the terms, conditions and
covenants set forth in the Lease to the satisfaction of Tenant and have been
accepted by Tenant, and no further payments are required to be made to Tenant
in connection therewith.

 

3.             Base Monthly Rent.  The Base Monthly Rent schedule set forth in
Paragraph 4 of the First Amendment shall remain in effect through July 31,
2010.  Effective as of August 1,
2010, Paragraph 4 of the First Amendment and Section K of the Summary of
Basic Lease Terms incorporated into the Original Lease shall be deemed amended
to provide that Tenant shall pay Base Monthly Rent each month during the
balance of the initial Lease Term, commencing on August 1, 2010, in
accordance with the schedule set forth below:

 

	
  Balance
  of Initial Term

  	
   

  	
  Base Monthly Rent

  (NNN)

  	
   

  
	
  08/01/2010 – 07/31/2011

  	
   

  	
  $

  	
  126,168.00

  	
   

  
	
  08/01/2011 – 07/31/2012

  	
   

  	
  $

  	
  130,583.88

  	
   

  
	
  08/01/2012 – 07/31/2013

  	
   

  	
  $

  	
  135,154.32

  	
   

  
	
  08/01/2013 – 07/31/2014

  	
   

  	
  $

  	
  139,884.72

  	
   

  
	
  08/01/2014 – 07/31/2015

  	
   

  	
  $

  	
  144,780.69

  	
   

  
	
  08/01/2015 – 07/31/2016

  	
   

  	
  $

  	
  149,848.01

  	
   

  
	
  08/01/2016 – 07/31/2017

  	
   

  	
  $

  	
  155,092.69

  	
   

  
	
  08/01/2017 – 07/31/2018

  	
   

  	
  $

  	
  160,520.93

  	
   

  
	
  08/01/2018 – 07/31/2019

  	
   

  	
  $

  	
  166,139.16

  	
   

  
	
  08/01/2019 – 07/31/2020

  	
   

  	
  $

  	
  171,954.03

  	
   

  

 

2

 

Base
Monthly Rent shall be paid by Tenant to Landlord during the Lease Term, as the
same may be extended, on the first day of each month of the Lease Term, without
offset or deduction (except as expressly provided in Sections 7.3, 11.4 and
12.3 of the Lease), prior notice or demand in lawful money of the United States
addressed to Landlord, c/o South Bay Development Company, 1690 Dell Avenue,
Campbell, CA 95008 or to such other persons or such other places as Landlord
may designate in writing. Base Monthly Rent for any period during the Lease
Term, as the same may be extended, which is for less than one month shall be
prorated based upon the actual number of days of the calendar month involved.

 

5.             Tenant Alterations.  Tenant shall have the right, without having
to obtain Landlord’s prior written approval but upon prior written notice to
Landlord (other than for Minor Alterations that do not require a building
permit) and subject to all the other terms and conditions of Sections 5.2 and 5.5
of the Original Lease (except as otherwise provided immediately below), to
make, or cause to be made, at Tenant’s sole cost and expense, Tenant
Alterations during the Lease Term, as the same may be extended, in the
aggregate in not more than twenty percent (20%) of the square footage of the
Premises provided that such Tenant Alterations (i) do not impair the
structural integrity of the Building, (ii) do not adversely affect the
life safety system, plumbing, electrical or heating, ventilation and air conditioning
system serving the Building or the ceiling grid of the Building, and/or (iii) do
not adversely affect the roof of the Building. 
Such Tenant Alterations (once construction or installation of the same
in the Premises is completed and written notice of such completion is given by
Tenant to Landlord), together with all Tenant Alterations performed by Tenant
prior to the date hereof, shall constitute Tenant Insured Alterations and be
insured by Landlord as referred to in Section 9.2.A of the Original Lease.  The scope of such Tenant Alterations referred
to in the first sentence of this Paragraph 5 may include, provided the same are
contained within twenty percent (20%) of the square footage of the Premises and
such Tenant Alterations do not violate any of the conditions set forth in
clauses (i), (ii) or (iii) above, the addition of twelve to eighteen
private offices in the open office area within the right side of the Building
and/or the conversion of office space to light manufacturing, research and development
or lab space or the conversion of light manufacturing, research and development
or lab space to office space, and the construction of an additional restroom
core.  Notwithstanding anything to the
contrary contained herein or in the Lease, Tenant shall not be obligated to
remove any of the Tenant Alterations made or caused to be made by Tenant
pursuant to the terms of the first sentence of this Paragraph 5 so long as the
total floor area (including area of converted space referred to above) in which
such Tenant Alterations in the aggregate are made does not exceed twenty
percent (20%) of the square footage of the entire Premises.  If the total floor area (including converted
space) in which Tenant’s Alterations in the aggregate are made or caused to be
made pursuant to the terms above exceeds twenty percent (20%) of the total
square footage of the entire Premises, then, anything herein or in the Lease to
the contrary notwithstanding, unless Landlord agrees in

 

3

 

writing
at the time Tenant makes such Tenant Alteration that such Tenant Alteration may
be surrendered to Landlord as part of the realty and become Landlord’s property
at the expiration or earlier termination of the Lease, Landlord shall have the
right, by giving written notice thereof to Tenant at any time prior to ninety
(90) days prior to the expiration or earlier termination of the Lease, as
amended hereby, to require Tenant, at Tenant’s sole cost, to remove any or all
of such Tenant’s Alterations constructed or installed in any area of the
Premises exceeding twenty percent (20%) of the total square footage of the
entire Premises and to restore such area to the condition existing immediately
prior to the construction or installation of such Tenant Alterations.  If, pursuant to the terms of the immediately
preceding sentence, Landlord requires Tenant to remove any of the Tenant
Alterations constructed or installed in more than twenty percent (20%) of the total
square footage of the entire Premises, then Tenant shall, at its sole cost,
prior to the expiration or earlier termination of the Lease Term, remove such
Tenant Alterations designated by Landlord for removal and restore such area to
the condition existing immediately prior to the construction or installation of
such Tenant Alterations designated for removal.

 

6.                                       Roof Membrane.

 

(a)           The second sentence of the first
paragraph of Section 6.2 of the Original Lease is hereby deleted in its
entirety and the following is substituted in place thereof:  “Notwithstanding Section 6.1 above,
Landlord will enter into an annual maintenance and repair contract with a roof
membrane maintenance contractor selected by Landlord, and obtain a leak-free
warranty from such maintenance contractor, with respect to the foam portion of
the roof membrane.  Pursuant to such
maintenance contract, the maintenance contractor will perform, at no cost to
Tenant, annual maintenance inspections of, and make repairs to, the foam
portion of the roof membrane of the Building and such maintenance contractor
shall also provide a leak-free warranty with respect to the foam portion of the
roof membrane of the Building through the initial Lease Term expiring July 31,
2020; provided, however, such repair work and leak-free warranty shall not
extend to or cover repairs or leaks that occur due to Tenant’s breach of any of
its maintenance responsibilities set forth in Section 6.1 or the
negligence or willful misconduct of Tenant or any of its agents, employees,
contractors, assignees, subtenants or other representatives or wind-driven rain
penetrating underneath flashing.   The
work to be performed pursuant to the annual maintenance inspection and repair
contract referred to immediately above shall be similar to that described in
the letter dated May 23, 2008, attached hereto as Exhibit A.  Landlord also agrees to extend the term of
such annual maintenance inspection and repair contract and leak-free warranty
with respect to the foam portion of the roof membrane of the Building through July 31,
2020 as set forth in the letter dated July 7, 2010 attached hereto as Exhibit B.  If Tenant reasonably determines that there
are any leaks in the foam portion of the roof membrane of the Building, Tenant
may contact the aforementioned roof membrane maintenance contractor retained by
Landlord directly and request that such maintenance contractor visit the
Building to inspect such foam portion of the roof membrane, which inspection
shall be at Landlord’s sole cost.”  The
costs of the maintenance contract and related minor repairs described in this
Paragraph 6(a) and covered by the annual maintenance inspection and repair
contract referred to above shall be at Landlord’s sole cost and shall not be an
Operating Expense; provided, however, if any repairs (whether minor or not) or
replacements of

 

4

 

any
portion of the foam portion of the roof membrane are necessitated due to Tenant’s
breach of any of its maintenance responsibilities set forth in Section 6.1
or the negligence or willful misconduct of Tenant or any of its agents,
employees, contractors, assignees, subtenants or other representatives, then
Tenant shall be responsible, at its sole cost and expense, for undertaking, or
causing to be undertaken, such repair or replacement of the foam portion of the
roof membrane.

 

(b)           Section 6.2.C. of the Original
Lease is hereby deleted in its entirety and the following is hereby substituted
in place thereof:  “Repairs or
replacements of the foam portion of the roof membrane required to be made at
any time during the initial Lease Term ending July 31, 2020 will be
covered and repaired at no cost to Tenant; provided, however, if repairs or
replacements of any portion of the roof membrane are necessitated due to Tenant’s
breach of any of its maintenance responsibilities set forth in Section 6.1
or the negligence or willful misconduct of Tenant or any of its agents,
employees, contractors, assignees, subtenants or other representatives, then
Tenant shall be responsible, at its sole cost and expense, for undertaking, or
causing to be undertaken, such repair or replacement of the roof membrane.  If repairs or replacements of the foam
portion of the roof membrane constituting a capital expenditure arise during
any extended term of the Lease (i.e. after the initial Lease Term ending July 31,
2020), then Landlord will be responsible for undertaking such repair or
replacement and Tenant will pay the amortized cost of the same in accordance
with Sections 5.4.A and B of this Lease; provided, however, if repairs or
replacements of any portion of the roof membrane are necessitated due to Tenant’s
breach of any of its maintenance responsibilities set forth in Section 6.1
or the negligence or willful misconduct of Tenant or any of its agents,
employees, contractors, assignees, subtenants or other representatives, then
Tenant shall be responsible, at its sole cost and expense, for undertaking, or
causing to be undertaken, such repair or replacement of the roof membrane.”

 

(c)           The parties hereto acknowledge that
there is an elastomeric coating on the foam portion of the roof membrane of the
Building.  If the elastomeric coating on
at least twenty-five percent (25%) of the foam portion of the roof membrane
wears down to a thickness of less than twelve millimeters (with such
measurement to be conducted by the roof membrane maintenance contractor
referred to above once per calendar year during the Lease Term, as extended),
then Landlord shall cause such elastomeric coating on the roof membrane of the
Building to be re-coated to a thickness of approximately twenty-four
millimeters.  The cost of such re-coating
shall be borne by Landlord and not be passed through to Tenant during the
initial Lease Term ending July 31, 2020.  
If such re-coating of the elastomeric coating on the foam portion of the
roof membrane of the Building occurs during any extended term of the Lease
(i.e. after July 31, 2020), then Landlord will be responsible for
undertaking such re-coating and Tenant will pay the amortized cost of the same
in accordance with Sections 5.4.A and B of this Lease; provided, however, if
such re-coating is necessitated due to Tenant’s breach of any of its
maintenance responsibilities set forth in Section 6.1 or the negligence or
willful misconduct of Tenant or any of its agents, employees, contractors,
assignees, subtenants or other representatives, then Tenant shall be
responsible, at its sole cost and expense, for undertaking, or causing to be
undertaken, such re-coating of the elastomeric coating of the roof membrane of
the Building.

 

5

 

7.             Lender Consent.  Concurrently with its execution hereof,
Landlord shall deliver to Tenant the consent to this Second Amendment of all
Lenders.

 

8.             Brokers.  Each party represents and warrants to the
other party that it has not had dealings in any manner with any real estate
broker, finder or other person other than Colliers International to whom a real
estate commission or finder’s fee may be owed with respect to the extension of
the Lease Term as provided in Paragraph 1 of this Second Amendment and the
negotiation and execution of this Second Amendment.  In connection with Tenant’s extension of the
Lease Term as provided in Paragraph 1 of this Second Amendment and Landlord’s
and Tenant’s negotiation and execution of this Second Amendment, Landlord
agrees to pay to Colliers International a commission pursuant to the terms of a
separate agreement between Landlord and Colliers International.  Colliers International shall not be a third
party beneficiary of this Second Amendment. Except as to commissions to be paid
as provided under this Paragraph 8, Tenant shall indemnify, defend and hold
harmless Landlord from all damage, loss, liability and expense (including
attorneys’ fees and related costs) arising out of or resulting from any claims
for commissions or fees that may or have been asserted against Landlord by any
broker, finder or other person with whom Tenant has or purportedly has dealt
with in connection with the extension of the Lease Term as provided in
Paragraph 1 of this Second Amendment and the negotiation and execution of this
Second Amendment.

 

9.             Corporate Authority.  Tenant represents and warrants to Landlord
that (i) Tenant is the sole holder of the leasehold estate created under
the Lease, (ii) Tenant has not voluntarily, by operation of law or
otherwise assigned the Lease or any interest of Tenant under the Lease,
subleased any portion of the Premises or otherwise transferred or hypothecated
any interest of Tenant in and to the Lease or the Premises, or any portion
thereof, and (iii) all authorizations necessary for the execution of this
Second Amendment by Tenant and to bind Tenant hereto have been obtained.  Upon written request therefor made by
Landlord to Tenant, Tenant shall provide Landlord with a corporate resolution,
certificate of incumbency or other evidence reasonably satisfactory to Landlord
that the individual(s) executing this Second Amendment on behalf of Tenant
are authorized to execute this Second Amendment and to bind Tenant hereto.

 

10.           Effect of Second Amendment.  Except as modified herein, the terms and
provisions of the Lease shall remain unmodified and continue in full force and
effect.  In the event of any conflict or
inconsistency between the terms and provisions of this Second Amendment and the
terms and provisions of the Lease, the terms and provisions of this Second
Amendment shall prevail.

 

11.           Counterparts; Facsimile Signatures. This Second Amendment may be executed in
counterparts, each of which shall be deemed an original and together shall
constitute one instrument. The parties contemplate that they may be executing
counterparts of this Second Amendment transmitted by facsimile or email in PDF
format and agree and intend that a signature by either facsimile machine or
email in PDF format shall bind the party so signing with the same effect as
though the signature were an original signature.

 

6

 

12.           Governing Law.   This Second Amendment shall be governed by
and construed in accordance with the laws of the State of California.

 

13.           Interpretation.  The doctrine or rule of law or
construction that any ambiguity in a written instrument shall be construed
against the party drafting the same shall not be employed in connection with
this Second Amendment.

 

[balance of page is intentionally blank; signature page follows
on next page]

 

7

 

IN
WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of
the date and year set forth below.

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  5200
  PATRICK HENRY ASSOCIATES LLC, 

  a Delaware limited liability company 

  	
   

  	
  COHERENT, INC.,
  

  a Delaware corporation 

  
	
   

  	
   

  	
   

  
	
  By:

  	
  P
  7 5200 PATRICK HENRY LLC,

  	
   

  	
  By:

  	
  /s/
  John Ambroseo

  
	
   

  	
  a
  Delaware limited liability company

  	
   

  	
  Name:

  	
  John
  Ambroseo

  
	
  Its:

  	
  Managing
  Member

  	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert J. Murray

  	
   

  	
  By:

  	
  /s/
  Helene Simonet

  
	
   

  	
  Name:

  	
  Robert
  J. Murray

  	
   

  	
  Name:

  	
  Helene
  Simonet

  
	
   

  	
  Its:

  	
  Vice
  President

  	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  July 26,
  2010

  	
   

  	
  Dated:

  	
  July 23, 2010

  

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]