Document:

Assignment and Assumption of Lease Agreement

 EXHIBIT 10.21 
 ASSIGNMENT AND ASSUMPTION OF LEASE 
 THIS ASSIGNMENT AND ASSUMPTION OF LEASE (“Assignment”) is dated
for reference purposes only as of April 19, 2005 by and between AROC, Inc., a Delaware corporation (“Assignor”), Southern Bay Energy, L.L.C., a Texas limited liability company (“Assignee”), and Cypress Court Operating
Associates, L.P., a New Mexico limited partnership (“Landlord”). 
 RECITALS: 
 WHEREAS, Landlord as landlord and Assignor as tenant have previously entered into that certain Lease Agreement dated June 7, 2001 (“Lease”) wherein, among
other things, Landlord leased to Assignor and Assignor leased from Landlord approximately 14,810 rentable square feet on the second floor (“Premises”) of the building located at 110 Cypress Station Drive, Houston, Harris County, Texas; and

 WHEREAS, Landlord and Assignor entered into that certain First Amendment to Lease November 10, 2003 (“First Amendment”) wherein, among
other things, the Premises was reduced in size to 10,576 rentable square feet and the Lease term was renewed; and 
 WHEREAS, the Lease and the First
Amendment to Lease, copies of which are attached hereto as Exhibit “A”, shall hereinafter be collectively referred to as the “Lease”; and 
 WHEREAS, Assignor desires to assign all its right, title and interest in the Lease to Assignee, and Assignee desires to accept such assignment. 
 NOW THEREFORE, for and in consideration of the sum of ten and no/100 dollars ($10.00) and other valuable consideration paid by each party to the other, the receipt and sufficiency of which is hereby acknowledged, the Landlord and Tenant do
hereby agree as follows: 
 AGREEMENT: 
 1. The foregoing recitals are true and correct and are incorporated herein by this reference. 
 2. Representations and Warranties.

 (a) Assignor represents and warrants that: 
  

	 	(i)	Assignor has not assigned, sublet or otherwise conveyed its interest in the Lease to anyone. 

  

	 	(ii)	Assignor’s interest in the Lease is not subject to any lien, encumbrance, claim, setoff or deduction; and 

  

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	 	(iii)	Assignor is not in default and no event has occurred which with notice or lapse of time Or both would constitute a default by Assignor under any of the provisions of the Lease.

 (b) Assignee represents and warrants that: 
  

	 	(i)	Assignee shall use and occupy the Premises covered by the Lease only for the specifically Stated purposes set forth in the Lease. 

  

	 	(ii)	The financial statements of Assignee delivered to Landlord are true and correct in all Material respects. 

 3. Assignment. Assignor hereby assigns, transfers and conveys to Assignee all of Assignor’s right, title and interest in and to the Lease, including any
security deposit held by Landlord pursuant to the Lease. Assignor agrees to deliver to any sublessee any notice required by law or to otherwise inform such sublessee that Assignor has transferred its interest in such sublease to Assignee as of the
Effective Date (as hereinafter defined). 
 4. Effective Date: The effective date of this Assignment shall be April 1, 2005 (the “Effective
Date”). 
 5. Acceptance and Assumption. Assignee hereby agrees to and accepts such assignment and, in addition, expressly assumes and agrees to
keep, perform and fulfill all of the terms, covenants, obligations and conditions required to be kept, performed and fulfilled by Assignor under or with respect to the Lease from and after the Effective Date, including without limitation, all
obligations and duties owed to a sublessee under any sublease described in Paragraph 2 (a) (i), above. Assignee shall be solely liable to Landlord for all obligations under the Lease accruing as of the Effective Date. 
 6. Condition of Premises. Assignee shall accept the Premises covered by the Lease in its “as is” condition. 
 7. Indemnification. 
 (a) Assignor hereby indemnifies
and holds Assignee harmless from and against any loss, cost, claim or liability, including attorneys’ fees and costs, relating to or in connection with the Lease prior to the Effective Date. Assignor understands and agrees that in no event
shall Assignor, by reason of Landlord’s approval of this Assignment, be deemed relieved from any obligation or liability under the Lease that may have accrued prior to the Effective Date. 
 (b) Assignee hereby indemnifies and holds Assignor and Landlord harmless from and against any loss, cost, claim or liability, including attorneys’
fees and court costs, relating to or in connection with the Leases from and after the Effective Date. 
 8. Landlord’s Consent. By its execution
hereof, Landlord hereby acknowledges and consents to Assignor’s assignment of its right, title and interest in the Lease, including all its right, title and interest as sublessor in any sublease described in Paragraph 2 (a) (i), above, to
Assignee; 

  

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provided however, this acknowledgement and consent shall not be deemed to relieve Assignor from any obligation or liability under the Lease which may have
accrued prior to the Effective Date. 
 9. Successors and Assigns. This Assignment shall inure to the benefit of and be binding upon the parties
hereto and their respective heirs, legal representatives, successors and assigns; however this provision shall not authorize any assignment or subletting otherwise prohibited by the Lease. 
 10. Full Force and Effect. Except as set forth the in this Assignment, all terms and provisions of the Lease shall remain in full force and effect. 
 11. Notices. Assignee’s address for notices pursuant to Section 1. of the Lease is 110 Cypress Station Drive, Suite 220, Houston, Texas 77090.

 12. Governing Law. This Assignment shall be governed by and construed in accordance with the laws of the State of Texas. 
 13. Condition Precedent. This Assignment shall not be deemed effective for any purpose unless and until Landlord’s execution hereof is obtained. 

IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the date first above written. 
  

			
	ASSIGNOR:
	
	AROC, INC.
		
	By:	 	/s/ Howard E. Ehler
	Name:	 	Howard E. Ehler
	Title:	 	Vice President

  

			
	ASSIGNEE:
	
	SOUTHERN BAY ENERGY, L.L.C.
		
	By:	 	/s/ Frank A. Lodzinski
	Name:	 	Frank A. Lodzinski.
	Title:	 	President

  

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	LANDLORD:
	
	CYPRESS COURT OPERATING ASSOCIATES, LIMITED PARTNERSHIP
		
	By:	 	/s/ J. Peter Mehlert
	Name:	 	J. Peter Mehlert
	Title:	 	President

  

 4Unconditional Guaranty of Lease Agreement

 EXHIBIT 10.22 
 UNCONDITIONAL GUARANTY OF LEASE 
 This UNCONDITIONAL GUARANTY OF LEASE (“Guaranty”) shall be a guaranty of
that certain Lease Agreement dated June 7, 2001 by and between Cypress Court Operating Associates, Limited Partnership (“Landlord”) and AROC, Inc. (“Former Tenant”); amended by First Amendment to Lease dated
November 10, 2003 (hereinafter collectively referred to as the “Lease”); assigned by Assignment and Assumption of Lease dated April 19, 2005 from Former Tenant to Southern Bay Energy, L.L.C. (“Tenant”). 
 The undersigned, Southern Bay Oil & Gas, L.P, a Texas limited partnership (hereinafter called “Guarantor” whether one or more), to induce Landlord
named therein to execute the above described Lease and as a material consideration and inducement therefor (recognizing that without execution of this guaranty Landlord would not be willing to enter into or make such Lease with Tenant), hereby
unconditionally guarantees performance and observance by Tenant of all obligations, duties covenants, agreements and conditions provided in such Lease, as same may be amended from time to time, to be performed or observed by Tenant during the term
of such Lease (including specifically and without limiting the generality of the foregoing, payment by Tenant of all rental and other amounts and damages of whatsoever kind or nature which may be or become due from Tenant under the terms of or in
connection with such Lease). This Guaranty is unconditional and the liability of Guarantor shall be absolute, in the same manner as if Guarantor was named in and had signed such Lease as “Tenant” thereunder. Guarantor agrees that
bankruptcy insolvency, lack of corporate capacity or any other disability or impediment against enforcement of full liability of Tenant named in the foregoing Lease shall in nowise impair or affect Guarantor’s liability and obligation
hereunder, and, without limitation of the foregoing, Guarantor agrees that in the event that Tenant shall become insolvent or shall be adjudicated a bankrupt, or shall file a petition for reorganization, arrangement or other relief under any present
or future provisions of the Bankruptcy Code, or if such a petition be filed by creditors of Tenant, or if Tenant shall seek a judicial readjustment of the rights of its creditors under any present or future federal or state law or if a receiver of
all or part of Tenant’s property and assets is appointed by any state or federal court, no such proceeding or action taken therein shall modify, diminish or in any way affect the liability of Guarantor under this Guaranty, and the liability of
Guarantor for the Tenant’s obligations under such Lease shall be of the same scope as if Guarantor had itself executed such Lease and no “rejection” and/or “termination” of such Lease in any of the proceedings referred to
above shall be effective to limit, release and/or terminate the continuing liability of Guarantor to Landlord under this guaranty with respect to such Lease and such liability of Guarantor shall be unaffected by any such “rejection” and/or
“termination” in said proceedings. It shall not be necessary or required in order to maintain and enforce Guarantor’s liability hereunder that demand be made upon Tenant or that action be commenced or prosecuted against Tenant or that
any effort be made to enforce the liability or responsibility of Tenant for performance of its obligations or duties under or in connection with such Lease, and it shall not be required that Tenant or any other party liable on such Lease be joined
in any action brought against Guarantor for enforcement of Guarantor’s liability and responsibility under this Guaranty or that judgment have theretofore been obtained against Tenant or any other party liable therefor on or in connection with
any such claim. Guarantor 

 
agrees that no waiver by Landlord or forbearance or delay by Landlord in asserting or enforcing any rights or remedies of Landlord against or with respect to
Tenant or any other party who may be or becomes responsible for performance of any of such Tenant’s obligations or duties shall in anywise affect, impair or release Guarantor’s liability hereunder. Likewise, Guarantor agrees that no
assignment or subletting of such Lease or of all or any part of the leased premises by such Lease shall in anywise impair, affect of release Guarantor’s liability hereunder. Guarantor expressly waives and agrees that no notice of default by
Tenant or other notice or demand need be given by Landlord to Guarantor as a condition of maintaining or enforcing Guarantor’s liability and obligations under this guaranty. Guarantor expressly agrees that any amendment or modification of such
Lease may be made by Landlord or Tenant, as provided in such Lease, with or without the approval of Guarantor and that any such amendment will be deemed part of such Lease for purposes of this Guaranty. Likewise, Guarantor agrees that Landlord
‘s release or subordination or failure or delay to enforce or seek to realize upon any security now or hereafter held or acquired by Landlord for performance of any of the obligations or duties of Tenant under or in connection with such Lease
shall in nowise impair, affect or release Guarantor’s liability hereunder, and that Landlord’s action (at Landlord’s election) in terminating such Lease or in taking or retaking possession of the leased premises as therein provided
following default by Tenant shall not release or impair Guarantor’s liability hereunder and that no notice of such termination or of such entry or re-entry by Landlord need be given to Guarantor. If there be more than one guarantor included
within the definition of Guarantor as that term is used herein, all obligations and terms imposed upon Guarantor by this guaranty agreement shall be joint and several as to all of such guarantors. This Guaranty shall be enforceable and shall be
performed in Harris County, Texas. 
 WITNESS the execution hereof effective as of the later of dates indicated below. 
  

									
	GUARANTOR:	 		 	WITNESS:
			
	 SOUTHERN BAY OIL & GAS, L.P.,
 a Texas limited partnership
	 		 	
					
	By:	 	 SOUTHERN BAY ENERGY,
 L.L.C., its General
Partner
	 		 		 	
					
	By:	 	/s/ Frank A. Lodzinski	 		 		 	
	Name:	 	Frank A. Lodzinski	 		 		 	
	Title:	 	President	 		 		 	
	Date:	 	4/19/05

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