Document:

Second Amendment to Lease Agreement

 EXHIBIT 10.23 
 SECOND AMENDMENT TO LEASE 
 This SECOND AMENDMENT TO LEASE (“Second Amendment”) is made this 19th day of
April , 2005 by and between Cypress Court Operating Associates, Limited Partnership, a New Mexico limited partnership (“Landlord”) and Southern Bay Energy, L.L.C., a Texas limited liability company (“Tenant”) 
 RECITALS: 
 WHEREAS, Landlord and AROC, Inc., (“Former
Tenant”) entered into that certain Lease Agreement dated June 7, 2001 (“Lease”) covering certain leased premises (“Premises”) containing 14,810 Rentable Square Feet on the second floor of the building
(“Building”) located at 110 Cypress Station Drive in Houston, Harris County, Texas; and 
 WHEREAS, Landlord and Former Tenant entered into that
certain First Amendment to Lease dated November 10, 2003 (“First Amendment”) wherein, among other things, the Premises was reduced by 4,234 Rentable Square Feet to 10, 576 Rentable Square Feet and the Lease Term was renewed early; and

 WHEREAS, Landlord, Former Tenant and Tenant entered into that certain Assignment and Assumption of Lease dated April 19, 2005 (“Assignment”)
wherein the Lease, including the First Amendment, was assigned from Former Tenant to Tenant; and 
 WHEREAS, the Lease, the First Amendment and the
Assignment, including any and all exhibits, addenda, riders, estoppels and letter agreements, shall hereinafter be collectively referred to as the “Lease”; and 
 WHEREAS, Southern Bay Oil & Gas, L.P., a Texas limited partnership, (“Guarantor”) executed that certain Unconditional Guaranty of Lease dated April 19, 2005, wherein, among other things, Guarantor
guaranteed the performance of all Tenant’s obligations under the Lease, including the obligation to pay rent; and 
 WHEREAS, Tenant desires to modify
the terms and conditions of the Option to Terminate in paragraph 13 of the First Amendment; and Landlord and Tenant agree to further amend the Lease to reflect same; 
 AGREEMENTS: 
 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, Landlord and Tenant do hereby amend the Lease as follows: 

 1. Option to Terminate: 
 Paragraph 13 of the First Amendment shall be deleted in its entirety and the following shall be inserted in its place: 
 “Provided Tenant is not in default of this Lease from the time of exercising the right contained herein to the effective date of such right, Tenant may have the right to terminate this Lease (“Termination
Option) effective on the last day of the 36th month of the Renewal Term (“Termination Date”) provided that Tenant (a) gives Landlord at
least four (4) months prior written notice, (b) pays a termination fee of $26,440.00 in addition to the 36th month’s Base Rent,
(c) pays the unamortized portion of the leasehold improvement costs associated with this Lease as of the Termination Date and (d) pays the unamortized portion of the leasing commission costs associated with this Lease as of the Termination
Date. It is further agreed that the sums due and payable under (b), (c) and (d) above must be paid in full upon delivery of the termination notice to Landlord. Notwithstanding, Tenant shall remain liable for any obligations under the terms
of the Lease that survive any such termination or any obligations that accrued prior to the Termination Date.” 
 Except as modified and
amended herein, all other terms and conditions of the Lease are hereby ratified and affirmed in all respects. In the event of any conflict between the terms and conditions of the Second Amendment and the Lease, the Lease shall control. 

IN WITNESS HEREOF, the undersigned has caused this Second Amendment to be duly executed effective as of the date first written above. 
  

									
	LANDLORD:	 		 	TENANT:
			
	CYPRESS COURT OPERATING ASSOCIATES, LIMITED PARTNERSHIP	 		 	SOUTHERN BAY ENERGY, L.L.C.
					
	By:	 	BGK Cypress Court LLC,	 		 	By:	 	Southern Bay Oil & Gas, L.P.,
	General Partner	 		 	General Partner
					
	By:	 	/s/ J. Peter Mehlert	 		 	By:	 	/s/ Frank A. Lodzinski
	Name:	 	J. Peter Mehlert	 		 	Name:	 	Frank A. Lodzinski
	Title:	 	President	 		 	Title:	 	PresidentThird Amendment to Lease Agreement

 EXHIBIT 10.24 
 THIRD AMENDMENT TO LEASE 
 This THIRD AMENDMENT TO LEASE (“Third Amendment”) is made this 9th day of April
, 2007 by and between Cypress Court Operating Associates, Limited Partnership, a New Mexico limited partnership (“Landlord”) and Southern Bay Energy, L.L.C., a Texas limited liability company (“Tenant”) 
 RECITALS: 
 WHEREAS, Landlord and AROC, Inc., (“Former
Tenant”) entered into that certain Lease Agreement dated June 7, 2001 (“Lease”) covering certain leased premises (“Premises”) containing 14,810 Rentable Square Feet on the second floor of the building
(“Building”) located at 110 Cypress Station Drive in Houston, Harris County, Texas; and 
 WHEREAS, Landlord and Former Tenant entered into that
certain First Amendment to Lease dated November 10, 2003 (“First Amendment”) wherein, among other things, the Premises was reduced by 4,234 Rentable Square Feet to 10, 576 Rentable Square Feet and the Lease Term was renewed early; and

 WHEREAS, Landlord, Former Tenant and Tenant entered into that certain Assignment and Assumption of Lease dated April 19, 2005
(“Assignment”) wherein the Lease, including the First Amendment, was assigned from Former Tenant to Tenant; and 
 WHEREAS, Southern Bay
Oil & Gas, L.P., a Texas limited partnership, (“Guarantor”) executed that certain Unconditional Guaranty of Lease dated April 19, 2005, wherein, among other things, Guarantor guaranteed the performance of all Tenant’s
obligations under the Lease, including the obligation to pay rent; and 
 WHEREAS, Landlord and Tenant entered into that certain Second Amendment to Lease
dated April 19, 2005 (“Second Amendment”) wherein Tenant and Landlord agreed to modify the terms and conditions of the Option to Terminate in paragraph 13 of the First Amendment; and 
 WHEREAS, the Lease, the First Amendment, the Assignment and the Second Amendment including any and all exhibits, addenda, riders, estoppels and letter agreements, shall
hereinafter be collectively referred to as the “Lease”; and 
 WHEREAS, Tenant desires to expand the premises; and Landlord and Tenant agree to
further amend the Lease to reflect same; 
 AGREEMENTS: 
 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, Landlord and Tenant do
hereby amend the Lease as follows: 
 1. Article 2. b. - Premises. 
 The Premises shall hereby be expanded to include the area on the second (2nd) floor of the Building (Expansion Space I”), shown on Exhibit “A” attached hereto and made a part hereof, as of the Commencement Date for Expansion Term I (as
hereinafter defined). 
 2. Article 2. d. - Tenant’s Rentable Square Feet. 

 The total area in the Premises shall be hereby amended to include the 3,179 Rentable Square Feet in Expansion Space I as
of the Commencement Date for Expansion Term I, which when combined with the existing 10,547 Rentable Square Feet in the Premises shall increase the total area in the Premises to 13,726 Rentable Square Feet. 
 3. Article 2. f. - Tenant’s Proportionate Share. 
 Tenant’s
Proportionate Share of the Building shall be hereby amended to be 13.678% as of the Commencement Date for Expansion Term I. 
 4. Article 2. h. -
Commencement Date. 
 The Commencement Date for Expansion Term I shall be the later of (a) April 15, 2007 or (b) upon substantial
completion of the leasehold improvements to be made by Landlord pursuant to paragraph 8 below. 
 5. Article 2. i. - Term. 
 The Term of the Lease for Expansion Space I shall be for a period of eighteen (18) months and fifteen (15) days (“Expansion Term I”), expiring
October 31, 2008. In the event that the actual Commencement Date for Expansion Space I is different than the Commencement Date stated above, the number of days in Expansion Term I shall be adjusted so that Expansion Term I expires on
October 31, 2008. 
 6. Article 2. j. - Base Rent. 
 The Base Rent for the Expansion Space I during Expansion Term I shall be due and payable, monthly in advance, as follows: 
  

							
	 Period
	  	Annual
Rate/RSF	  	Monthly Rent
	 04/15/07-10/31/07
	  	$	15.50	  	$	4,106.21
	 11/01/07-10/31/08
	  	$	16.00	  	$	4,238.67

 7. Article 2.n. - Expense Stop/Base Year. 
 For the purpose of calculating any increases in Operating Expenses for the Expansion Space I, during Expansion Term I the Building’s actual 2007 calendar year Operating Expenses shall be used as the Base Year,
subject to adjustment as provided for herein. 
 8. Article 2. q. - Maximum Construction Allowance. 
 Landlord, at Landlord’s cost and expense, agrees to make leasehold improvements to the Premises in accordance with specifications attached hereto as Exhibit
“B”. Any changes to the specifications by Tenant that increase the total cost of the work beyond the specifications attached to Exhibit “B” shall be at Tenant’s expense. Otherwise, Tenant accepts the Premises in its
“as-is” condition. 
 9. Article 2.s. - Tenants Broker. 
 Tenant agrees and acknowledges that it has had no dealings with any real estate broker(s) representing its interest in this transaction and that no leasing commissions shall be due from Landlord to such real estate broker(s). 
 10. Article 2. u. - Parking Spaces. 
 For Expansion Space I, Landlord
agrees to provide Tenant with an additional eleven (11) unreserved parking spaces free or charge for the duration of Expansion Term I. 

 Except as modified and amended herein, all other terms and conditions of the Lease are hereby ratified and affirmed in
all respects. In the event of any conflict between the terms and conditions of the Third Amendment and the Lease, the Lease shall control. 
 IN WITNESS
HEREOF, the undersigned has caused this Third Amendment to be duly executed effective as of the date first written above. 
  

									
	LANDLORD:	 		 	TENANT:
			
	CYPRESS COURT OPERATING ASSOCIATES, LIMITED PARTNERSHIP	 		 	 SOUTHERN BAY ENERGY,
 L.L.C.

					
	By:	 	BGK Cypress Court LLC,	 		 	By:	 	Southern Bay Oil & Gas, L.P.,
		 	 General Partner
	 		 		 	 General Partner

					
	By:	 	/s/ J. Peter Mehlert	 		 	By:	 	/s/ Howard E. Ehler
	Name:	 	J. Peter Mehlert	 		 	Name:	 	Howard E. Ehler
	Title:	 	President	 		 	Title:	 	Vice President CFO

 Exhibit “A” 
 Expansion Space I 

 Exhibit “B” 
 Leasehold Improvement Specifications 

 Exhibit “B” 
 Leasehold Improvement Specifications

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