Document:

exv10w6

Exhibit 10.6

FIRST AMENDMENT TO OFFICE LEASE

     THIS FIRST AMENDMENT
TO OFFICE LEASE (“First Amendment”) is made and
entered into this 7th day of February, 2008, by and between Cullen
Allen Holdings L.P., a Delaware limited partnership (“Landlord”) and Quest Midstream
Partners, L.P., a Delaware limited partnership (“Tenant”), the successor in interest of
Bluestem Pipeline, LLC.

WITNESSETH:

     WHEREAS, Landlord and Bluestem Pipeline, LLC entered into that certain Office Lease dated
March 14, 2007 (the “Lease”) for approximately 3,433 RSF in Suite 3650 (the “Existing Premises”)
on the 36th Floor of the office building commonly known as Three Allen Center, which
is located at 333 Clay Street, Houston, Texas (the “Building”);

     WHEREAS, Tenant succeeded to the interest of Bluestem Pipeline, LLC, as tenant under the
Lease;

     WHEREAS, Landlord and Tenant desire to amend and modify the Lease to relocate the Premises to
approximately 9,801 RSF on the 40th Floor of the Building and extend the Term of the
Lease, among other things provided for herein.

     NOW,
THEREFORE, in and for the premises contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant
agree to amend the Lease as follows:

     1. Defined
Terms. Capitalized terms not defined herein shall have the same meanings attributed to such terms under the Lease.

     2. Relocation
of the Premises. Effective on the Relocation Date, defined in Section 5 below, the Premises, as such term is used in the Lease, shall be relocated to approximately 9,801
RSF in Suite 4060 on the 40th Floor of the Building as shown on Exhibit “A” attached
hereto (the “New Premises”). From and after the Relocation Date, defined below, Landlord and Tenant
stipulate and agree that (i) the Premises, as such term is used in the Lease, contains 9,801 RSF
(utilizing an add-on factor of 22.5% for this multi-tenant floor), (ii) the Building contains
approximately 1,194,719 RSF; and (iii) all references in the Lease referring to the Premises shall
mean the New Premises described in this First Amendment. Except as provided in this First
Amendment, as of the Relocation Date, all references in the Lease pertaining to the duties and
obligations of Tenant which are dependant upon the size of the Premises which are not specifically
adjusted by this First Amendment, shall be automatically adjusted to reflect that the Premises, as
such term is used in the Lease, contains 9,801 RSF.

     3. Surrender
of the Existing Premises. On or before that date upon the earlier of (i)
the date upon which Tenant occupies the New Premises for the purpose of conducting Tenant’s
business, (ii) the date which is ten (10) days after the date on which Tenant’s initial

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First Amendment

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leasehold improvements are substantially complete within the New Premises or (iii) forty five
(45) days after the Relocation Date, as defined in Section 5 below, Tenant shall (a) peaceably
vacate and surrender the Existing Premises on the 36th Floor of the Building to
Landlord broom-clean and in the condition required by Section 3.3(a) of the Lease and otherwise
in accordance with the applicable provisions of the Lease; (b) remove from the Existing Premises
all persons occupying and using same, return to Landlord all suite keys issued to Tenant in
connection with its use of the Existing Premises (to the extent such pertain solely to the
Existing Premises); and (c) remove from the Existing Premises all personal property owned by
Tenant.

     4. Term. Landlord and Tenant hereby agree that the Term of the Lease is hereby
extended for a period of thirty-six (36) months such that the “Expiration Date” shall mean
May 6, 2015.

     5. Relocation Date. Landlord and Tenant hereby agree that another tenant of the
Building, Tristone Capital Co. (“Tristone”), is currently leasing the New Premises. Tristone is
not currently occupying the New Premises and has expressed its desire to return possession of
the New Premises to Landlord. Tristone and Landlord are currently negotiating for a mutually
acceptable agreement to return the New Premises to Landlord, so that Landlord may lease the New
Premises to Tenant. Landlord shall deliver the New Premises to Tenant (the “Delivery Date”) for
the purpose of constructing Tenant’s Improvements within the New Premises upon the date which
Landlord regains possession of the New Premises, but in no event prior to the effective date of
Landlord regaining control pursuant to such mutually acceptable agreement between Tristone and
Landlord. The “Relocation Date” shall mean the earlier to occur of (i) the date upon which Tenant
occupies the New Premises for the purpose of conducting Tenant’s business, or (ii) forty-five
(45) days after the Delivery Date.

     6. Rent.

     A. Existing Premises. Except as expressly provided herein, Tenant’s
obligation to pay Base Rent, Additional Rent and other items payable by Tenant pursuant to
the terms of the Lease concerning the Existing Premises shall remain unchanged by this
First Amendment and Tenant shall continue to pay all such amounts payable under the Lease
with respect to the Existing Premises from the Commencement Date to the day immediately
prior to the Relocation Date. The parties hereby acknowledge that the Relocation Date may
be up to forty-five (45) days prior to the date Tenant actually ceases using the Existing
Premises to accommodate the construction of Tenant’s leasehold improvements in the New
Premises, provided, however, Tenant shall not be obligated to pay Base Rent and Additional
Rent for the Existing Premises (but Tenant shall pay Base Rent and Additional Rent for the
New Premises as provided in Section 6B below) for the period of up to forty-five (45) days
following the Relocation Date as contemplated herein.

     B. New Premises:

          (i) Commencing on the Relocation Date, and continuing through the Expiration Date,
Tenant shall pay Base Rent for the New Premises in the manner provided in the Lease, in
the amounts as follows:

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First Amendment

2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Base Rent	 	 	 	 
	 	 	Per Square Foot	 	Annual	 	Monthly
	                 Time Period	 	Of RSF	 	Base Rent	 	Base Rent
	Relocation Date – 05/06/12
	 	$	23.37	 	 	$	229,049.37	 	 	$	19,087.45	 
	05/07/12 – 05/06/15
	 	$	29.25	 	 	$	286,679.25	 	 	$	23,889.94	 

          (ii) In addition to Base Rent for the New Premises, Tenant shall pay Additional Rent
and all other sums provided in the Lease with respect to the New Premises from the
Relocation Date to the Expiration Date, in the manner provided in the Lease. TENANT’S SHARE
OF ADDITIONAL RENT IS PROJECTED TO BE $12.16 PER SQUARE FOOT OF RENTABLE AREA PER YEAR FOR
CALENDAR YEAR 2008 OR AN ESTIMATED AMOUNT OF $9,931.68 PER MONTH FOR THE NEW PREMISES TO BE
PAID IN ADDITION TO BASE RENT. Expenses that vary with occupancy shall be grossed-up to
reflect that the Building is 100% occupied and operating and all such services are provided
to all tenants.

     C. Tenant’s Share. Tenant’s Share shall remain 0.28735% through the day
immediately preceding the Relocation Date. Commencing upon the Relocation Date, Landlord
and Tenant agree that “Tenant’s Share”, as such term is used in the Lease, shall be
0.8204%.

     D. Texas Tax Code. The parties acknowledge that the 2006 session of the
Texas Legislature revamped the Property Tax Code and the terms and conditions of this
Lease shall be liberally construed in order to allow any taxes which previously and
historically were charged on an ad valorem basis but converted to another system of
taxation (even if it is a system of taxation otherwise excluded under Section 4.2 of the
Lease) to be charged as Taxes under the Lease.

     7. Condition of the New Premises. Landlord and Tenant confirm and agree that Tenant
has accepted the New Premises in its current “AS IS” condition and “WITH ALL FAULTS,” except (a)
for reasonable “punch list” items identified in writing by Tenant within ten (10) days after the
Delivery Date; (b) latent defects discovered and identified by written notice to Landlord within
one hundred eighty (180) days after the Delivery Date; and (c) that Landlord agrees to provide to
Tenant an allowance of up to $210,695.00 ($15.00 per RSF of 3,433 RSF of the New Premises plus
$25.00 per RSF on 6,368 RSF of the New Premises) (the “Allowance”). The parties hereby agree that
the Allowance is to be used solely for the construction of the initial leasehold improvements in
the New Premises (above and below ceiling), construction documents as well as architectural,
structural, mechanical, electrical, voice/data cabling, plumbing design, accessibility plan review
and inspection (Per Texas Architectural Barriers Act), asbestos survey (Per SB-509), graphics and
security and otherwise in accordance with the Work Letter attached to the Lease as Exhibit “F”,
except that Section 1 (a) of Exhibit “F” is hereby deleted and replaced by the Allowance provided
in this First Amendment. Landlord shall only charge a three percent (3%) construction management
fee for all work done in the New Premises. Notwithstanding anything to the contrary, Tenant may
elect, by giving Landlord prior written notice of Tenant’s election, to apply up to $3.00 per RSF
of the New Premises (up to a maximum of $29,403.00) of the unused Allowance granted pursuant to

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First Amendment

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this First Amendment, if any, towards subsequent installment(s) of Base Rent next due. EXCEPT AS
SPECIFICALLY SET FORTH HEREIN, TENANT FURTHER ACKNOWLEDGES AND AGREES THAT LANDLORD DOES HEREBY
DISCLAIM ANY AND ALL WARRANTIES, EXPRESS AND IMPLIED, INCLUDING BUT NOT LIMITED TO THOSE OF
FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THE EXISTING PREMISES, THE NEW PREMISES AND/OR
THE IMPROVEMENTS LOCATED THEREIN.

     8. Parking. Tenant shall continue to have the parking rights provided pursuant to
Exhibit D to the Lease; provided, however, commencing on the Relocation Date and continuing through
the Expiration Date, Landlord shall provide to Tenant and Tenant shall contract on a “must-take”
basis for a total of ten (10) unreserved parking Permits in the Allen Center Garage and/or the
Metropolitan Parking Garage, as designated by Landlord, Tenant shall have no other right to any
parking Permits, except as referred to in this First Amendment, although Tenant may lease
additional parking spaces at the then current rate on a month-to-month basis, subject to
availability. Tenant shall pay the applicable monthly parking rate(s) charged by Landlord from time
to time for all parking Permits leased, which are currently $185.00
and $165.00 (including sales
tax) for unreserved parking Permits in the Allen Center Garage and the Metropolitan Parking Garage,
respectively, and $205.00 to $260.00 (including sales tax) for reserved parking Permits, depending
on location. Ten percent (10%) of Tenant’s parking Permit allotment may be taken as reserved
parking Permits at a location determined by Landlord within either the Allen Center Garage and/or
the Metropolitan Parking Garage. From and after the Relocation Date, no discount shall apply to the
monthly parking rates. Parking rates are subject to change.

     9. Right of First Refusal. Landlord and Tenant hereby agree that Tenant shall
continue to have the Right of First Refusal set forth in Exhibit G to the Lease, except that
effective upon satisfaction of the contingency set forth in Section 15 hereof, (i) the ROFR
Premises, as such term is used in Exhibit G to the Lease, shall mean approximately 10,613 RSF on
Floor 40 of the Building (Suites 4050, 4040 and 4010), as shown on Exhibit B attached hereto and
Tenant shall no longer have any rights to additional space on Floor 36 of the Building and (ii)
Tenant’s obligation to pay Rent for the ROFR Premises shall commence upon the earlier of the
substantial completion of Tenant’s leasehold improvements within the ROFR Premises or 90 days
following Landlord’s delivery of the ROFR Premises. For purposes of determining Tenant’s priority
to the ROFR Premises in relation the rights of other tenants of the Building, Tenant’s right to the
ROFR Premises described in this First Amendment shall be the date of the full execution of this
First Amendment and the Right of First Refusal is subject and subordinate to (a) the pre-existing
expansion option of Devon Energy Production Company, L.P. (who has the right to expand by one (1)
full floor in the Building or in Devon Energy Tower at Two Allen Center, as determined by Landlord)
and the pre-existing right of first refusal of Tristone Capital, LP (who has a right of first
refusal on the entire 40th Floor of the Building), and the successors and assigns of the
foregoing, (b) any and all preferential rights, expansion options, refusal rights pertaining to the
ROFR Premises which are granted to a third party tenant whose initial premises was offered to
Tenant and which Tenant declined, and (c) the right to renew the lease of any existing tenant of
the ROFR Premises (and their successors and assigns), whether by formal renewal option or
otherwise. The existing tenants occupying portions of the ROFR Premises are as follows: (1) DnB Nor
Bank ASA who occupies approximately 3,050 RSF in Suite 4010 and whose lease currently expires on
march 31, 2009, (2) Savoy Capital, Inc. who occupies approximately 3,646 RSF in Suite 4040 and
whose lease currently expires on March 31, 2009,

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First Amendment

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and (3) Fannie Mae who occupies approximately 3,969 RSF in Suite 4050 and whose lease currently
expires on June 30, 2010.

     10. Early Termination Right. In the event that Tenant (i) desires to further expand
the Premises in the future and Landlord, or an affiliate of Landlord, can not or will not
accommodate Tenant’s desired expansion within the Building or
the office buildings commonly known
as One Allen Center, Two Allen Center or any expansions or additional buildings added to the Allen
Center complex in the future and (ii) immediately following the Termination Date, as defined in
Exhibit “C” attached hereto, Tenant significantly expands Tenant’s operations in the metropolitan
area of the City of Houston (i.e, including without limitation the cities reasonably adjacent to
the City of Houston, such as the cities of Katy, Sugar Land, Baytown, Pearland, The Woodlands,
League City, etc.), in a single office building such that Tenant occupies at least 90% of the total
amount of space Tenant then currently leases pursuant to the Lease plus the amount of space Tenant
informed Landlord that it desired to expand into within the Allen Center complex, then Tenant shall
have an option to terminate the Lease for the entire Premises effective on the last day of the
42nd full month following the Relocation Date in accordance with the terms and
conditions of the Termination Option set forth in Exhibit “C” attached hereto. Tenant’s failure to
expand following the Termination Date shall be deemed a material breach of the Lease and in such
case, Landlord may retroactively elect to void Tenant’s exercise of the Termination Option, in
which case, the Lease shall continue in full force and effect as if the Termination Option was
never a part of the Lease and Tenant shall be obligated to pay all amounts due pursuant to the
Lease from the Commencement Date through the Expiration Date.

     11. Expansion Option. Landlord and Tenant hereby acknowledge that the
Expansion Option set forth in Exhibit I to the Lease was intended to provide Tenant with the
one-time ability to expand the size of the Premises to accommodate Tenant’s growth. Furthermore,
the parties acknowledge that the expansion contained in this First Amendment fulfills the parties
original intent concerning such Expansion Option. Therefore, Landlord and Tenant hereby agree that
effective upon the satisfaction of the contingency set forth in Section 15 of this First Amendment,
the Expansion Option set forth in Exhibit I to the Lease is hereby deleted from the Lease in its
entirety and shall be of no further force or effect.

     12. Notices.
Article 1 (n) of the Lease is hereby amended to provide a new notice
address for Tenant as follows:

	 	 	 	 	 
	 

	 	Tenant:
	 	Quest Midstream Partners, L.P.
	 

	 	 	 	Three Allen Center 
	 

	 	 	 	333 Clay Street, Suite 3650 
	 

	 	 	 	Houston, Texas 77002

     13. Brokers. Tenant warrants that it has had no dealings with any real estate broker
or agent in connection with the negotiation of this First Amendment, except for Partners Commercial
Realty, LP d/b/a NAI Houston (“Tenant’s Broker”), and that it knows of no other real estate brokers
or agents who are or might be entitled to a commission in connection with this First Amendment.
Tenant agrees to indemnify and hold harmless Landlord from and against, and to reimburse Landlord
for and with respect to, any liability or claim, whether meritorious or

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First Amendment

5

 

not,
arising in respect to brokers and/or agents not so named and claiming to represent Tenant.
Landlord agrees to indemnify and hold harmless Tenant from and against, and to reimburse Tenant
for and with respect to, any liability or claim, whether meritorious or not, arising in respect to
brokers and/or agents not so named and claiming to represent Landlord. Landlord has agreed to pay
the fees of Tenant’s Broker, but only to the extent that Landlord has agreed to do so pursuant to
the separate written agreement with Tenant’s Broker.

     14. Calculation of Charges. Without waiving any rights to enforce the terms of the
Lease, Tenant (i) understands and accepts the methods of calculation for determining charges,
amounts and additional rent payable by Tenant under the Lease, as heretofore calculated and as
modified hereby and (ii) acknowledges (to the fullest extent permitted by applicable law) that the
provisions of the Lease, as modified hereby, satisfy the requirements of Section 93.012 (Assessment
of Charges) of the Texas Property Code.

     15. Contingency. Landlord and Tenant hereby acknowledge that the New Premises are
currently occupied by Tristone. Accordingly, Landlord and Tristone must enter into an agreement
to return such space to Landlord prior to Landlord’s obligation to deliver the New Premises to
Tenant hereunder. Therefore, Landlord and Tenant hereby agree that this First Amendment in its
entirety is contingent upon Landlord entering into a definitive agreement with Tristone, who must
agree to return such space to Landlord, among other things, as determined in Landlord’s and
Tristone’s sole and absolute discretion, prior to the effectiveness of this First Amendment. If
this contingency is not satisfied on or before February 29, 2008, then this First Amendment in its
entirety shall be deemed null and void, with no further action required by Landlord, and the Lease,
without regard to this First Amendment whatsoever, shall continue in full force and effect.

     16. Miscellaneous.

          (a) Amendment to Lease. Tenant and Landlord acknowledge and agree that the Lease has
not been amended or modified in any respect, other than by this First Amendment and there are no
other agreements of any kind currently in force and effect between Landlord and Tenant with respect
to the Premises or the Building. The term “Lease” shall hereafter mean the Lease as amended by this
First Amendment, unless the context requires otherwise.

          (b)
Counterparts. This First Amendment may be executed in multiple counterparts, and
each counterpart when fully executed and delivered shall constitute an original instrument, and all
such multiple counterparts shall constitute but one and the same instrument.

          (c) Entire Agreement. This First Amendment sets forth all covenants, agreements and
understandings between Landlord and Tenant with respect to the subject matter hereof and there are
no other covenants, conditions or understandings, either written or oral, between the parties
hereto except as set forth in this First Amendment.

          (d) Full Force and Effect. Except as expressly amended hereby, all other items and
provisions of the Lease, as amended, remain unchanged and continue to
be in full force and effect.

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First Amendment

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          (e) Conflicts. If any provision of this First Amendment conflict with any of
those of the Lease, then the provisions of this First Amendment shall
govern.

          (f) Authority of Tenant. Tenant represents and warrants to Landlord that (i) Tenant is
duly organized and an existing legal entity, in good standing in the State of Texas, (ii) Tenant
has full right and authority to execute, deliver and perform this First Amendment, (iii) the person
executing this First Amendment was authorized to do so and (iv) upon request of Landlord, such
person will deliver to Landlord satisfactory evidence of his or her authority to execute this First
Amendment on behalf of Tenant.

          (g) Successors and Assigns. This First Amendment shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns.

          (h) Good Faith and Fair Dealing. Landlord and Tenant agree to exercise their rights
and remedies, and perform their respective obligations hereunder reasonably and in good faith.

     This First Amendment is executed as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	“LANDLORD”	 	 	 	“TENANT”	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Cullen Allen Holdings,
L.P., 

a Delaware limited partnership	 	 	 	Quest Midstream Partners,
L.P., 

a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	Texas RE GP, LLC,	 	 	 	 	 	 	 	 
	 	 	a Delaware limited liability company	 	 	 	By:	 	/s/ Michael Forbau	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 	Michael Forbau	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Title:
	 	Vice President	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul H. Layne	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Paul H. Layne,	 	 	 	 	 	 	 	 
	 

	 	 	 	Executive Vice President,	 	 	 	 	 	 	 	 
	 

	 	 	 	Head of Houston Region	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven M. Lukingbeal	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Steven M. Lukingbeal,	 	 	 	 	 	 	 	 
	 

	 	 	 	Vice President,	 	 	 	 	 	 	 	 
	 

	 	 	 	Regional Counsel
	 	 	 	 	 	 	 	 

Three
Allen Center – Quest Midstream Partners, L.P.

First Amendment

7

 

EXHIBIT A

FLOOR PLAN OF THE NEW PREMISES

[Floor Plan Diagram]

A-1

 

 

EXHIBIT B

FLOOR PLAN OF ROFR PREMISES

[Floor Plan Diagram]

B-1

 

 

EXHIBIT C

TERMINATION RIGHT

1. Subject to and upon the terms, provisions and conditions set forth in this Exhibit, Tenant,
but not any assignee or subtenant thereof, shall have the one time right (the “Termination Right”)
to terminate the Lease as to the entire Premises, effective on the last day of the forty-second
(42nd) full calendar month following the Relocation Date (the “Termination Date”). In
order to exercise the Termination Right, Tenant must give Landlord written notice of Tenant’s
exercise of the Termination Right at least six (6) months prior to the Termination Date, and pay
the Termination Fee, as hereinafter defined, within thirty (30) days of the date of such notice. If
Tenant fails to give notice of exercise of the Termination Right prior to the required notice date,
the Termination Right shall be deemed waived and of no further force and effect. If Tenant gives
timely notice of exercise of the Termination Right but fails to timely pay the Termination Fee to
Landlord when due, Landlord may at its option either (i) deem the Termination Right waived and of
no further force and effect or (ii) enforce the termination of the Lease, effective as of the
Termination Date, and Tenant’s obligation to pay the Termination Fee. The provisions of this
paragraph shall survive the expiration or termination of this Lease.

2. Notwithstanding the foregoing, Landlord shall have the option to revoke and nullify any
purported exercise of the Termination Right by Tenant if at the time of exercise or thereafter
Tenant is in monetary default under the Lease.

3. The “Termination Fee” shall be an amount equal to the sum of the following:

	 	A.	 	the unamortized portion of the Lease Costs (as hereinafter defined) as of the
Termination Date; and
	 
	 	B.	 	one (1) monthly installment of Base Rent and Additional Rent.

     “Lease
Costs” shall mean all unamortized actual construction costs, architectural and
engineering fees, leasing commissions (both internal and external), cabling design and
installation costs, Excused Rent and other costs, if any, incurred by Landlord in connection with
Tenant’s lease of the Premises, specifically including, but not limited to, the Allowance granted
to Tenant. For purposes of calculating Lease Costs, each component or item of Lease Costs will be
deemed to be amortized in equal monthly installments over the remaining Lease term(s) applicable
to the space(s) in question at the rate of ten percent (10%) per annum beginning on the date that
such component or item of Lease Costs was actually paid by Landlord.

C-1

 

 

Cullen Allen Holdings, L.P.

(“Landlord”)

Bluestem Pipeline, LLC

(“Tenant”)

Suite #3650 

Three Allen Center

Office Lease

 

 

Table of Contents

	 	 	 	 	 	 	 
	1.
	 	BASIC LEASE PROVISIONS	 	 	1	 
	2.
	 	DEFINITIONS	 	 	2	 
	3.
	 	TERM	 	 	3	 
	4.
	 	RENT	 	 	5	 
	5.
	 	USE & OCCUPANCY	 	 	8	 
	6.
	 	SERVICES & UTILITIES	 	 	8	 
	7.
	 	REPAIRS	 	 	11	 
	8.
	 	ALTERATIONS	 	 	11	 
	9.
	 	INSURANCE	 	 	12	 
	10.
	 	DAMAGE OR DESTRUCTION	 	 	14	 
	11.
	 	INDEMNITY	 	 	16	 
	12.
	 	CONDEMNATION	 	 	16	 
	13.
	 	TENANT TRANSFERS	 	 	16	 
	14.
	 	LANDLORD TRANSFERS	 	 	19	 
	15.
	 	DEFAULT AND REMEDIES	 	 	20	 
	16.
	 	SECURITY DEPOSIT	 	 	22	 
	17.
	 	MISCELLANEOUS	 	 	23	 

 i 

 

 

List of Exhibits

	 	 	 	 	 
	EXHIBIT A - LOCATION OF PREMISES
	 	 	A-1	 
	EXHIBIT B - RULES & REGULATIONS
	 	 	B-1	 
	EXHIBIT C - LEGAL DESCRIPTION OF LAND
	 	 	C-1	 
	EXHIBIT D - PARKING
	 	 	D-1	 
	EXHIBIT E - NOTICE OF LEASE TERM
	 	 	E-1	 
	EXHIBIT F - WORK LETTER
	 	 	F-1	 
	EXHIBIT G - RIGHT OF FIRST REFUSAL
	 	 	G-1	 
	EXHIBIT H - RENEWAL OPTION
	 	 	H-1	 
	EXHIBIT I - EXPANSION OPTION
	 	 	I-1	 

ii

 

Lease

     Landlord and Tenant enter into this Lease (“Lease”) as of the Execution Date on the following
terms, covenants, conditions and provisions:

	1.	 	BASIC LEASE PROVISIONS

	1.1	 	Basic Lease Definitions. In this Lease, the following defined terms have the
meanings indicated.
	 
	(a)	 	Execution Date: March 14, 2007.
	 
	(b)	 	Landlord: Cullen Allen Holdings, L.P., a Delaware limited partnership.

	 
	(c)	 	Tenant: Bluestem Pipeline, LLC, a Delaware limited liability
company.
	 
	(d)	 	Building: Three Allen Center, 333 Clay Street, Houston, Texas 77002, deemed to
contain: 1,194,719 RSF.
	 
	(e)	 	Premises: Suite #3650, located on the Thirty-Sixth (36th) floor of
the Building (as identified on Exhibit “A”) and deemed to contain:
3,433 RSF.
	 
	(f)	 	Use: General non-governmental administrative office use consistent with that
of a first-class office building.
	 
	(g)	 	Scheduled Term: 60 Months.
	 
	(h)	 	Scheduled Commencement Date: April 1, 2007.
	 
	(i)	 	Base Rent: The following amounts payable in accordance with Article 4:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beginning	 	Ending	 	Annual Base Rent	 	 	Annual	 	 	Monthly	 
	month	 	Month	 	per RSF	 	 	Base Rent	 	 	Base Rent	 
	1
	 	60	 	$	18.50	 	 	$	63,510.50	 	 	$	5,292.54	 

	 	 	 	This is a “Net” Lease as opposed to a “Gross” Lease, which will require Tenant to
pay an additional amount for Taxes and Expenses, PROJECTED TO BE $10.97 PER RSF PER
YEAR FOR CALENDAR YEAR 2007 OR AN ESTIMATED AMOUNT OF $3,138.33 PER MONTH TO BE
PAID IN ADDITION TO BASE RENT.

	 	(j)	 	[Intentionally Omitted].
	 
	 	(k)	 	Tenant’s Share: 0.28735%.
	 
	 	(l)	 	Tenant’s Trade Name: Quest Midstream.
	 
	 	(m)	 	Security Deposit: Letter of Credit, initially in the amount of
$124,607.03, subject to annual decreases pursuant to Article 16.
	 
	 	(n)	 	Notice Addresses: For each party, the following address(es):

	 	 	 
	For Landlord:
	 	For Tenant:
	 
	 	 
	Cullen Allen Holdings, L.P.
	 	Bluestem Pipeline, LLC
	c/o BrookField Properties
	 	Three Allen Center
	1200 Smith Street, Suite 1200
	 	333 Clay Street, Suite 3650
	 Houston, Texas 77002
	 	Houston, Texas 77002
	Attention: Property Manager
	 	 

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	For Landlord:

	 	For Tenant:
	with a copy to:

	 	With a copy to:
	 
	Cullen Allen Holdings, L.P.

	 	The Staubach Company
	c/o Brookfield Properties

	 	Riverway, Suite 2500
	1200 Smith Street, Suite 1200 
	 	Houston, Texas 77056
	Houston, Texas
 77002 

Attn: Executive Vice President

	 	Attn: Lucian Bukowski

	 	(o)	 	Parking Permits: 3 “must-take” and up to 2 additional permits, pursuant
to Exhibit “D”.
	 
	 	(p)	 	Brokers: The Staubach Company. Landlord will pay Broker a
commission, but only to the extent that Landlord has agreed to do so pursuant to a
separate agreement between Landlord and Broker.

	 	 	 	 	 
	(q)

	 	Liability Limit:
	 	$5,000,000 for any one accident or occurrence.
	 
	 	 	 	 
	(r)

	 	Business Hours:
	 	From 7:00 a.m. to 7:00 p.m. on Monday through Friday and from
7:00 a.m. to 1:00 p.m. on Saturday, excepting: New Year’s Day,
Memorial Day, Independence Day, Labor Day, Thanksgiving
Day, Christmas Day, and other legal holidays commonly
observed in similar class office buildings in the locale of
the Building (“Holidays”).

	 	(s)	 	Allowance: up to $25.00 per RSF of the Premises (up to a total
of $85,825.00), pursuant to Exhibit “F”.
	 
	 	(t)	 	Right of First Refusal in accordance with Exhibit “G”.
	 
	 	(u)	 	Renewal Option in accordance with Exhibit “H”.
	 
	 	(v)	 	Expansion Option in accordance with Exhibit “I”.

2. DEFINITIONS

     2.1 Project. The Land, Building, Common Areas and Premises (as defined in §1 and below) are
collectively referred to as the “Project.”

     2.2 Land. “Land” means the real property on which the Building and Common Areas are located,
including easements and other rights that benefit or encumber the real property. Landlord’s
interest in the Land may be in fee or a leasehold. The Land may be expanded or reduced after the
Execution Date. A legal description of the Land is attached hereto as Exhibit “C”.

     2.3 Base Building. “Base Building” means Building Structure and Mechanical Systems,
collectively, defined as follows:

	 	(a)	 	Building Structure. “Building Structure” means the structural
components in the Building, including foundations, floor and ceiling slabs, roofs,
exterior walls, exterior glass and mullions, columns, beams, shafts and emergency
stairwells. The Building Structure excludes the Leasehold Improvements (and similar
improvements to other premises) and the Mechanical Systems.
	 
	 	(b)	 	Mechanical Systems. “Mechanical Systems” means the mechanical, electronic,
electric, physical or informational systems generally serving the Building or Common
Areas, including the sprinkler, plumbing, heating, ventilating, air conditioning,
lighting, communications, security, drainage, sewage, waste disposal,
vertical
transportation, fire/life safely systems.

     2.4 Common Areas. Tenant will have a non-exclusive right to use the Common Areas subject to
the terms of this Lease. “Common Areas” means those interior and exterior common and public areas
on the Land and in the Building (and appurtenant easements) designated by Landlord for the
non-exclusive use by Tenant in common with Landlord, other tenants and occupants, and their
employees, agents and invitees. The Common Areas includes parking facilities serving the Building
that are owned or leased by Landlord.

     2.5 Premises. Landlord leases to Tenant the Premises subject to the terms of this Lease.
Except as provided elsewhere in this Lease, by taking possession of the Premises Tenant accepts the
Premises in its “as is”

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condition and with all faults, and the Premises is deemed in good order, condition, and repair
except (a) for reasonable “punch list” items identified in writing by Tenant within ten (10) days
after Landlord tenders possession of the Premises; (b) latent defects discovered and identified by
written notice to Landlord within one hundred eighty (180) days
after Landlord tenders possession
of the Premises; and (c) that Landlord will construct the Leasehold Improvements to the Premises,
if any, as described in the Work Letter, attached hereto as Exhibit “F”. The Premises includes the
Leasehold Improvements and excludes certain areas, facilities and systems, as follows:

	 	(a)	 	Leasehold Improvements. “Leasehold Improvements” means all
non-structural improvements in the Premises or exclusively serving the Premises, and
any structural improvements to the Building made to accommodate Tenant’s particular
use of the Premises. The Leasehold Improvements may exist in the Premises as of the
Execution Date, or be installed by Landlord or Tenant under this Lease at the cost of
either party. The Leasehold Improvements include: (1) interior walls and partitions
(including those surrounding structural columns entirely or partly within the
Premises); (2) the interior one-half of walls that separate the Premises from adjacent
areas designated for leasing; (3) the interior drywall on exterior structural walls,
and walls that separate the Premises from the Common Areas; (4) stairways and
stairwells connecting parts of the Premises on different floors, except those required
for emergency exiting;(5) the frames, casements, doors, windows and openings installed
in or on the improvements described in (1-4), or that provide
entry/exit to/from the
Premises; (6) all hardware, fixtures, cabinetry, railings, paneling, woodwork and
finishes in the Premises or that are installed in or on the improvements described in
(1-5); (7) if any part of the Premises is on the ground floor, the ground floor
exterior windows (including mullious, frames and glass); (8) integrated ceiling
systems (including grid, panels and lighting); (9) carpeting and other floor finishes;
(10) kitchen, rest room, lavatory or other similar facilities that exclusively serve
the Premises (including plumbing fixtures, toilets, sinks and built-in appliances);
and (11) the sprinkler, plumbing, heating, ventilating, air conditioning, lighting,
communications, security, drainage, sewage, waste disposal, vertical transportation,
fire/life safety, and other mechanical, electronic, physical or informational systems
that exclusively serve the Premises, including the parts of each system that are
connected to the Mechanical Systems from the common point of distribution for each
system to and throughout the Premises.
	 
	 	(b)	 	Exclusions from the Premises. The Premises does not include: (1) any areas
above the finished ceiling or integrated ceiling systems, or below the finished floor
coverings that are not part of the Leasehold Improvements, (2) janitor’s closets, (3)
stairways and stairwells to be used for emergency exiting or as Common Areas, (4)
rooms for Mechanical Systems or connection of telecommunications equipment, (5)
vertical transportation shafts, (6) vertical or horizontal shafts, risers, chases,
flues or ducts, and (7) any easements or rights to natural light, air or view.
Notwithstanding the forgoing provisions, Tenant’s telecommunications and data cabling
and related equipment in any area shall remain the Tenant’s personal property and
Tenant, at Tenant’s sole cost and expense, shall remove such by the Expiration Date
and repair all damage caused by such removal.

     2.6 Building Standard. “Building Standard” means the minimum or exclusive type, brand, quality
or quantity of materials Landlord reasonably designates for use in the Building from time to time.

     2.7 Tenant’s Personal Property. “Tenant’s Personal Property” means those trade fixtures,
furnishings, equipment, work product, inventory, stock-in-trade and other personal property of
Tenant that are not permanently affixed to the Project in a way that they become a part of the
Project and will not, if removed, impair the value of the Leasehold Improvements that Tenant is
required to deliver to Landlord at the end of the Term under §3.3.

     2.8 Rentable Square Feet (“RSF”). The defined term“RSF” means Rentable Square Feet. RSF
includes the actual number of usable square feet times a multiple to account for certain areas in
the Building and the leased floors which benefit the Premises. The following add-on factor applies
to the floor on which the Premises are located: 24.64%.

3. TERM

     3.1 Term. “Term” means the period that begins on the Commencement Date and ends on the
Expiration Date, subject to renewal, extension or earlier termination as may be further provided
in this Lease. “Month” means a full calendar month of the Term.

     (a) Commencement
Date. The “Commencement Date” means the date that is
the earlier of:

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	 	(1)	 	The day that Tenant first conducts business in any part of the Premises; or
	 
	 	(2)	 	The later of:

	 	(A)	 	The Scheduled Commencement Date, or
	 
	 	(B)	 	The day that Landlord tenders the Premises to
Tenant with Landlord’s Work substantially complete or that date that
Landlord would have tendered possession of the Premises but for delay
caused by Tenant.

	 	(b)	 	Expiration Date. “Expiration Date” means the date that is the last
day of the Scheduled Term (plus that many additional days required for the Expiration
Date to be the last day of a calendar month) after the Commencement
Date.
	 
	 	(c)	 	Early Occupancy. Tenant may not enter the Premises for any purpose
until Landlord tenders possession of the Premises to Tenant. If Tenant conducts
business in any part of the Premises before the Scheduled
Commencement Date, Tenant
will pay Base Rent for that period at the rate for the first Month that Base Rent is
due, without discount or excuse.
	 
	 	(d)	 	Late Occupancy. If Landlord fails to lender possession of the
Premises to Tenant by the Scheduled Commencement Date due to delay caused by Tenant or
Force Majeure, Landlord will not be in default of this Lease.
	 
	 	(e)	 	Confirmation of Term. Landlord shall notify Tenant of the
Commencement Date using a Notice of Lease Term (“NLT”) in
the form attached to this lease as Exhibit “E”. If the information set forth in the NLT is correct, Tenant shall
execute and deliver to Landlord the NLT within 10 business days after its receipt, but
Tenant’s failure to do so will not reduce Tenant’s obligations or Landlord’s rights
under this Lease.

     3.2
Holdover. If Tenant keeps possession of the Premises after the Expiration Date (or earlier
termination of this Lease) without Landlord’s prior written consent (a “Holdover”), (which may be
withheld in its sole discretion), then in addition to the remedies available elsewhere under this
Lease or by law, Tenant will be a tenant-at-sufferance and must comply with all of Tenant’s
obligations under this Lease, except that for each Month of Holdover Tenant will pay 150% of the
monthly Base Rent payable at the end of the Term, without proration for any partial Month of
Holdover. Tenant shall indemnify and defend Landlord from and against all claims and damages, both
consequential and direct, that Landlord suffers due to Tenant’s failure to return possession of
the Premises to Landlord at the end of the Term. Landlord’s deposit of Tenant’s Holdover payment
will not constitute Landlord’s consent to a Holdover, or create or renew any tenancy.

     3.3 Condition on Expiration.

(a) Return of the Premises. At the end of the Term, Tenant will return
possession of the Premises to Landlord vacant, free of Tenant’s Personal Property,
in broom-clean condition, and with all Leasehold Improvements in good working order
and repair (excepting ordinary wear and tear), except that Landlord may require
Tenant, by notice of at least 30 days before the expiration of the Term, to remove
any Tenant’s Wiring, or item of Leasehold Improvements or Alterations, and restore
the Premises damaged by removal, if either:

	 	(1)	 	When Landlord approved the installation of the
improvement, Landlord reserved in writing Landlord’s right to have Tenant
remove the improvement at the end of the Term; or
	 
	 	(2)	 	Tenant failed to obtain Landlord’s written consent
under §8.1(a) for an item of Alterations to become part of the Premises.

(b) Correction by Landlord. If Tenant fails to return possession of the
Premises to Landlord in the condition required under (a), then Tenant shall
reimburse Landlord for the reasonable costs incurred by Landlord to put the Premises
in the condition required under (a), plus Landlord’s standard administration fee.

(c) Abandoned Property. Tenant’s Personal Property left behind in the
Premises after the end of the Term will be considered abandoned and Landlord may
move, store, retain or dispose of these items at Tenant’s cost, including Landlord’s
standard administration fee. As used in this Lease, “Landlord’s standard
administration” fee is fifteen percent (15%).

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4. RENT

     4.1 Base Rent. Tenant shall prepay 1 month’s installment of Base Rent by the Execution Date,
to be applied against Base Rent first due under this Lease. During the Term, Tenant shall pay all
other Base Rent in advance, in monthly installments, by the 1st of each calendar month.
Base Rent for any partial month will be prorated.

     4.2
Additional Rent. Tenant’s obligation to pay Taxes and Expenses under this §4.2 is referred
to in this Lease as “Additional Rent.”

	 	(a)	 	Taxes. For each full or partial calendar year during the Term, Tenant
shall pay as in the manner described below the Tenant’s Share of the amount of the
Taxes. “Taxes” means the total costs incurred by Landlord for: (1) real and personal
properly taxes and assessments (including ad valorem and special assessments) levied
on the Project and Landlord’s personal property used in connection with the Project;
(2) taxes on rents or other income derived from the Building; (3) capital and place-
of-business taxes; (4) taxes, assessments or fees in
lieu of the taxes described in (1-3); and (5) the reasonable costs incurred to reduce the taxes described in (1-4).
Taxes excludes net income taxes and taxes paid under §4.3. The parties acknowledge
that the 2006 session of the Texas Legislature revamped the Property Tax Code and the
terms and conditions of this Lease shall be liberally construed in order to allow any
taxes which previously and historically were charged on an ad valorem basis but
converted to another system of taxation (even if it is a system of taxation otherwise
excluded under this Section 4.2) to be charged as a Taxes under the Lease.
	 
	 	(b)	 	Expenses. For each full or partial calendar year during the Term, Tenant
shall pay in the manner described below the Tenant’s Share of the Expenses. “Expenses”
means the total costs incurred by Landlord to operate, manage, administer, equip,
secure, protect, repair, replace, refurbish, clean, maintain, decorate and inspect the
Project, including a market fee to manage the Project of no more than four percent
(4%) of the gross revenue of the Project (Landlord currently charges three percent
(3%). Expenses that vary with occupancy will be calculated as if the Building is 100%
occupied and operating and all such services are provided to all tenants. The
estimated Expenses and Taxes for calendar year 2007 are $10.97 per RSF which would
mean that Tenant would pay a monthly amount of $3,138.33 as Tenant’s Share of Taxes
and Expenses over and above in addition to the monthly Base Rent of $5,292.54
indicated above.

	 	(1)	 	Expenses include:

	 	(A)	 	Standard Services provided under §6,1 ;

	 
	 	(B)	 	Repairs and maintenance performed under §7.2;
	 
	 	(C)	 	The cost of casualty, liability, terrorism,
fidelity, rent and all other insurance (including deductibles paid) for
the Project;
	 
	 	(D)	 	Wages, salaries and benefits of personnel to
the extent they render services to the Project;
	 
	 	(E)	 	Costs of operating the Project management office (including reasonable
rent);
	 
	 	(F)	 	The Project’s fair pro rata share of certain
landscaping and related expenses to maintain Antioch Park and similarly
situated adjoining green space;
	 
	 	(G)	 	Amortization installments of costs required to be capitalized and
incurred:

	 	(i)	 	To comply with insurance requirements or laws (“Mandated Expenses”);
	 
	 	(ii)	 	That are reasonably calculated
to reduce other Expenses or the rate of increase in other
Expenses (“Cost-Saving Expenses”); or
	 
	 	(iii)	 	That are reasonably calculated
to improve or maintain the safety, health or access of Project
occupants, and otherwise maintain the quality, appearance, or
integrity of the Project (“Quality Expenses”).

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	 	(2)	 	Expenses exclude:

	 	(A)	 	Taxes;
	 
	 	(B)	 	Mortgage payments (principal and interest), and ground lease rent;
	 
	 	(C)	 	Commissions, advertising costs, attorney’s fees and costs
of improvements in connection with leasing space in the Building;
	 
	 	(D)	 	Costs reimbursed by insurance proceeds or tenants of the
Building (other than as Additional Rent);
	 
	 	(E)	 	Depreciation;
	 
	 	(F)	 	Except for the costs identified in §4.2(b)(l)(G), any capitalized costs;
	 
	 	(G)	 	Collection costs and legal fees paid in disputes with tenants;
	 
	 	(H)	 	Costs to maintain and operate the entity that is Landlord
(as opposed to operation and maintenance of the Project);
	 
	 	(I)	 	Installments of costs amortized under subsection (c) of this §4.2;
	 
	 	(J)	 	Costs related to monitoring, testing, removal, cleaning,
abatement or containment of any significant quantities of hazardous materials
from the Building;
	 
	 	(K)	 	Costs to correct material defects in the construction of
the Building, except to the extent such are provided in Section
4.2(b)(1)(B);
	 
	 	(L)	 	Costs incurred to add or delete floors from the Common Areas;
	 
	 	(M)	 	Any fines, penalties, late charges or liquidated damages
and related interest imposed on Landlord to the extent such are not incurred
due to the actions of Tenant, which shall be paid in full by Tenant;
	 
	 	(N)	 	Cash charitable contributions in excess of $10,000 per year; and
	 
	 	(T)	 	Reserves to the extent such do not pertain to regular and recurring
costs.

	 	(c)	 	Amortization and Accounting Principles.

	 	(1)	 	Each item of Mandated Expenses and Quality Expenses will be fully amortized
in equal annual installments, with interest on the principal balance at the
Amortization Rate, over the number of years that Landlord reasonably projects the
item of Expenses will be productive for its intended use, without replacement, but
properly repaired and maintained.
	 
	 	(2)	 	Each item of Cost-Saving Expenses will be fully amortized in equal annual
installments, with interest on the principal balance at the Amortization Rate, over
the number of years that Landlord reasonably estimates for the present value of the
projected savings in Expenses (discounted at the Amortization Rate) to equal the cost.
	 
	 	(3)	 	Any item of Expenses of significant cost that is not required to be
capitalized but is unexpected or does not typically recur may, in Landlord’s
discretion, be amortized in equal annual installments, with interest on the principal
balance at the Amortization Rate, over a number of years reasonably determined by
Landlord in substantial accordance with GAAP.
	 
	 	(4)	 	“Amortization Rate” means the prime rate of Citibank, N.A. (or a comparable
financial institution selected by Landlord), plus 3%.
	 
	 	(5)	 	Landlord will otherwise use sound real estate accounting and management
principles, consistently applied, to determine Additional Rent. To the extent
applicable, Landlord will use GAAP to the extent such is commonly applied.

	 	(d)	 	Estimates. Landlord will reasonably estimate Additional Rent each calendar year. Tenant will
pay the estimated Additional Rent in advance, in monthly installments, by the first day of
each month, until the estimate is revised by Landlord. Landlord may reasonably revise its
estimate during a calendar

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	 	 	 	year and Tenant will pay the monthly installments after the revision based on the
revised estimate. The aggregate estimates of Additional Rent paid by Tenant in a
calendar year is the “Estimated Additional Rent.”
	 
	 	(e)	 	Settlement. As soon as practical after the end of each calendar year
that Additional Rent is payable, Landlord will give Tenant a statement of the actual
Additional Rent for the calendar year. The statement of Additional Rent is
conclusive, binds Tenant, and Tenant waives all rights to contest the statement,
except for items of Additional Rent to which Tenant objects by notice to Landlord
given within 90 days after receipt of Landlord’s statement; however, Tenant’s
objection will not relieve Tenant from its obligation to pay Additional Rent pending
resolution of any objection. If the Additional Rent exceeds the Estimated Additional
Rent for the calendar year, then Tenant shall pay the underpayment to Landlord in a
lump sum as Rent within 30 days after receipt of Landlord’s statement of Additional
Rent. If the Estimated Additional Rent exceeds the Additional Rent for the calendar
year, then Landlord shall credit the overpayment against Rent next due. If an
overpayment of Additional Rent is outstanding upon the expiration or sooner
termination of this Lease, Landlord shall refund such overpayment to Tenant within 30
days after the date that Landlord completes its statement of the actual Additional
Rent for the applicable calendar year.
	 
	 	(f)	 	Landlord shall maintain complete and accurate books and records detailing all
Expenses and Taxes for the immediately preceding calendar year. Landlord may keep the
books and records at the Building or at Landlord’s regional office. If Tenant objects
to items in Landlord’s statement of actual Additional Rent for the calendar year,
then Tenant and/or its representatives (which shall be members of one of the “Big
Four” accounting firms and shall not be compensated on a contingency fee basis for
this audit) shall have the right, at Tenant’s expense, to examine (but not to copy),
and audit during normal business hours, Landlord’s books and records pertaining to the
objected to items in the Expenses and Taxes for the preceding calendar year to enable
Tenant to verify the accuracy thereof. The results of such audit shall be certified by
a “Big Four” accounting firm, at Tenant’s expense. Landlord shall reasonably
cooperate with Tenant in any such examination. Any overpayment by Tenant shall be
credited to Tenant and any undercharge shall be paid by Tenant as soon as reasonably
possible. Failure by Tenant to contest or dispute the allocation of Additional Rent
within ninety (90) days after the date of the statement of the actual Additional Rent
for the calendar year is submitted to Tenant (a) is deemed a waiver of the applicable
audit or dispute right and any right to contest the Additional Rent charges
(undercharges or overcharges) for the applicable Lease year; (b) is deemed acceptance
of the Additional Rent charges as submitted to and reviewed by Tenant; and (c)
CONSTITUTES FULL RELEASE OF LANDLORD BY TENANT FOR ANY OVERCHARGES of Additional Rent
more than one year old. The foregoing provisions shall survive termination or
expiration of the Lease. Tenant shall not be entitled to conduct such an audit if
Tenant is otherwise in default under this Lease, beyond any applicable notice and cure
provision.

     4.3 Other Taxes. Upon demand, Tenant will reimburse Landlord for taxes paid by Landlord on
(a) Tenant’s Personal Property, (b) Rent, (c) Tenant’s occupancy of the Premises, or (d) this
Lease. If Tenant cannot lawfully reimburse Landlord for these taxes, then the Base Rent will be
increased to yield to Landlord the same amount after these taxes were imposed as Landlord would
have received before these taxes were imposed.

     4.4 Terms of Payment. “Rent” means all amounts payable by Tenant under this Lease and the
exhibits, including Base Rent and Additional Rent. If a time for payment of an item of Rent is not
specified in this Lease, then Tenant will pay Rent within 30 days after receipt of Landlord’s
statement or invoice. Unless otherwise provided in this Lease, Tenant shall pay Rent without
notice, demand, deduction, abatement or setoff, except as otherwise specifically set forth herein,
in lawful U.S. currency. Landlord will send invoices payable by Tenant to Tenant; however,
neither Landlord’s failure to send an invoice nor Tenant’s failure to receive an invoice for Base
Rent (and installments of Estimated Additional Rent) will relieve Tenant of its obligation to
timely pay Base Rent (and installments of Estimated Additional Rent). Each partial payment by
Tenant shall be deemed a payment on account. No endorsement or statement on any check or any
accompanying letter shall constitute an accord and satisfaction, affect Landlord’s right to collect
the full amount due, or require Landlord to apply any payment to other than Rent earliest due. No
payment by Tenant to Landlord will be deemed to extend the Term or render any notice, pending suit
or judgment ineffective. By notice to the other, each party may establish or change its billing
address.

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     4.5
Late Payment. If Landlord does not receive all or part of any item of Rent when due, then
Tenant shall pay Landlord a “Late Charge” of 5% of the overdue amount. Tenant agrees that the Late
Charge is not a penalty, and will compensate Landlord for costs not contemplated under this Lease
that are impracticable or extremely difficult to fix. Landlord’s acceptance of a Late Charge does
not waive Tenant’s default.

     4.6
[Intentionally omitted].

     4.7 Waiver of Tenant Rights and Benefits Under Section 93.012, Texas Property Code. Landlord
and Tenant are knowledgeable and experienced in commercial leasing transactions and agree that the
provisions of this Lease for determining all charges, amounts, and Additional Rent payable by
Tenant (including, without limitation, payments under this Section 4), are commercially reasonable
and valid even though such methods may not state a precise mathematical formula for determining
such charges. Accordingly, Tenant voluntarily and knowingly waives all rights and benefits of a
tenant under Section 93.012, Texas Property Code, as such section now exists or as may be hereafter
amended or succeeded. Nothing contained in this waiver however is intended to limit or impair
Tenant’s audit rights granted hereunder, or except as otherwise expressly set forth in this Lease
to the contrary, any other remedy available to Tenant under the Lease or law or in equity (other
than Section 93.012, Texas Property Code). In addition, nothing in this §4.7 shall constitute a
waiver of Tenant’s right to dispute and/or initiate a claim disputing Landlord’s methods of
calculating or determining Expenses and/or Landlord’s calculation or determination of Additional
Rent.

5. USE & OCCUPANCY

     5.1 Use. Tenant shall use and occupy the Premises only for the Use. Landlord does not
represent or warrant that the Project is suitable for the conduct of Tenant’s particular business.

     5.2 Compliance with Laws and Directives.

	 	(a)	 	Tenant’s Compliance. Subject to the remaining terms of this Lease,
Tenant shall comply at Tenant’s expense with all directives of Landlord’s insurers or
laws concerning:

	 	(1)	 	The Leasehold Improvements and Alterations,
	 
	 	(2)	 	Tenant’s use or occupancy of the Premises,
	 
	 	(3)	 	Tenant’s employer/employee obligations,
	 
	 	(4)	 	A condition created by Tenant,
	 
	 	(5)	 	Tenant’s failure to comply with this Lease,
	 
	 	(6)	 	The negligence of Tenant, the Tenant Parties, or Tenant’s Affiliates or
contractors, or
	 
	 	(7)	 	Any chemical wastes, contaminants, pollutants or substances
that are hazardous, toxic, infectious, flammable or dangerous, or regulated by
any local, state or federal statute, rule, regulation or ordinance for the
protection of health or the environment (“Hazardous Materials”) that are
introduced to the Project, handled or disposed by Tenant or its Affiliates, or
any of their contractors.

	 	(b)	 	Landlord’s Compliance. The cost of Landlord’s compliance with
directives or orders of Landlord’s insurers or governing authorities concerning the
Project, other than those that are Tenant’s obligation under subsection (a), will be
included in Expenses to the extent allowed under §4.2.

     5.3 Occupancy. Tenant shall not interfere with Building services or other tenants’ rights to
quietly enjoy their respective premises or the Common Areas. Tenant shall not make or continue
nuisance, including any objectionable odor, noise, fire hazard, vibration, or wireless or
electromagnetic transmission, Tenant will not maintain any Leasehold Improvements or use the
Premises in a way that increases the cost of insurance required under §9.2, or requires insurance
in addition to the coverage required under §9.2.

6. SERVICES & UTILITIES

     6.1 Standard Services.

	 	(a)	 	Standard Services Defined. “Standard Services” means:

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	 	(1)	 	Healing, ventilation and air-conditioning (“HVAC”) during Business Hours
as reasonably required to comfortably use (in a temperature range that is
consistent for a first-class office building) and occupy the Premises and
interior Common Areas;
	 
	 	(2)	 	Tempered water from the public utility for use in Common Area
restrooms;
	 
	 	(3)	 	Janitorial services to the Premises and interior Common Areas
5 days a week, except Holidays, to the extent reasonably determined by
Landlord in a manner consistent with standards for first class office
buildings in the Houston Central Business District;
	 
	 	(4)	 	Access to the Premises (by at least 1 passenger elevator if not on the ground
floor);
	 
	 	(5)	 	Labor and materials (to the extent such are Building
Standard) to replace fluorescent tubes and ballasts in Building
Standard light
fixtures in the Premises; and
	 
	 	(6)	 	Electricity from Landlord’s selected provider(s) for Common
Areas lighting, Building Standard light fixtures in the Premises and to
convenience outlets in the Premises for the operation of customary quantities
and types of office equipment, however, the connected load will not exceed an
average of 3.4 watts per rentable square foot of the Premises during Business
Hours on an annual basis, subject to the following:

	 	(i)	 	The electrical facilities in the Building
available for Tenant’s use are (i) 277/480 volts, 3 phase, for large
equipment loads and fluorescent lighting; and (ii) 120/208 volts, 3
phase, for small equipment loads and incandescent lighting.
	 
	 	(ii)	 	Landlord will provide the capacity in the
Building’s electrical riser to supply (i) two (2) watts per square
foot of Usable Area at 277/480 volts and (ii) four (4) watts per
square foot of Usable Area at 120/208 volts. Collectively, Tenant
shall not have a connected electrical design load greater than an
average of six (6) watts per square foot of Usable Area within the
Premises (“Building Standard Capacity”).
	 
	 	(iii)	 	The electrical cost component of Expenses is
calculated on the basis of .34 kilowatt-hours per square foot of
Usable Area in the Premises per month (“Building Standard Usage”).
Tenant shall pay to Landlord, upon demand, the cost of the consumption
of electricity in excess of the Building Standard Usage at rates
determined by Landlord which shall be in accordance with any
applicable laws, but not to exceed the cost of such consumption if
Tenant were billed directly from the local utility provider. Landlord
may, at its option, upon not less than thirty (30) days’ prior written
notice to Tenant, discontinue the availability of any electrical
service in excess of the Standard Building Capacity or Standard
Building Usage. If Landlord gives any such notice, Tenant will
contract directly with the applicable public utility for the supplying
of such electrical service to the Premises.
	 
	 	(iv)	 	All of Tenant’s electrical usage, with the
exception of one (1) 277 volt, 2x4 Building Standard fluorescent
light fixture per 80 square feet of Usable Area, shall be metered by
a Building Standard consumption meter.
	 
	 	(v)	 	Tenant shall pay for all costs of meters,
submeters, wiring, risers, transformers, electrical panels, air
conditioning and other items necessary to accommodate Tenant’s
electrical design loads and capacities, which may be charged to the
Allowance, if any. Notwithstanding the foregoing, Landlord may refuse
to allow installation and withhold consent for Tenant’s installation
of any meters, submeters, wiring, risers, transformers, electrical
panels, or air conditioning and other items if, in Landlord’s sole
judgment, the same are not reasonable or would cause damage or injury
to the Building or the Premises or cause or create a dangerous or
hazardous condition or entail excessive or unreasonable alterations
or repairs to the Building or the Premises, or would interfere with
or create or constitute a disturbance to other tenants or occupants
of the Building.

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	 	(b)	 	Standard Services Provided. During the Term, Landlord shall provide the
Standard Services to Tenant. The cost of the Standard Services is included in
Expenses. Landlord is not responsible for any inability to provide Standard
Services due to either: the concentration of personnel or equipment in the Premises;
or Tenant’s use of equipment in the Premises that is not customary office
equipment, has special cooling requirements, or generates excessive heat, as
determined in Landlord’s reasonable discretion.
	 
	 	(c)	 	Impermissible REIT Income. For so long as the entity specified in §1.1(b)
(or an affiliate or REIT- qualified successor in interest of such entity) shall be the
Landlord under this Lease, any services required to be provided to
Tenant under this
Lease that may result in the actual or constructive receipt by Landlord (or any member
of Landlord) of impermissible tenant service income as described in
Section 856(d)(7)
of the Internal Revenue Code shall be performed by Brookfield Properties Tenant
Services LLC, a Delaware limited liability company (or its designated successors or
assigns).

     6.2 Additional Services. Unless Tenant obtains Landlord’s prior written consent, Tenant will
not use utilities or services in excess of the Standard Services. If Landlord so consents, Landlord
may provide utilities and services in excess of the Standard Services subject to the following:

	 	(a)	 	HVAC. If Tenant requests HVAC service to the Premises during non-Business
Hours, Tenant will pay as Rent Landlord’s scheduled rate for this service, which are
currently $35.00 per hour, per air handler.
	 
	 	(b)	 	Lighting. Landlord will furnish both Building Standard and
non-Building Standard lamps, bulbs, ballasts and starters that are part of the
Leasehold Improvements. Landlord will install non-Building Standard items at
Landlord’s scheduled rate for this service.
	 
	 	(c)	 	Other Utilities and Services. Tenant will pay as Rent
the cost of utilities
or services (other than HVAC and lighting addressed in (a) and (b)) either used by
Tenant or provided at Tenant’s request in excess of that provided as part of the
Standard Services, plus Landlord’s standard administration fee. Tenant’s excess
consumption may be reasonably estimated by Landlord unless either Landlord requires or
Tenant elects to install Building Standard meters to measure Tenant’s consumption.
	 
	 	(d)	 	Additional Systems and Metering. Landlord may require Tenant, at
Tenant’s expense, to upgrade or modify existing Mechanical Systems serving the
Premises or the Leasehold Improvements to the extent necessary to meet Tenant’s excess
requirements (including installation of Building Standard meters to
measure the same).

     6.3 Alternate Electrical Billing. Landlord may elect to separately meter Tenant’s total
consumption of electricity in the Premises, including lighting and convenience outlets. If Landlord
so elects, then Landlord shall notify Tenant of such election and in lieu of including consumption
of electricity of tenanted premises in Expenses, Tenant shall pay to Landlord as Rent the cost of
Tenant’s electricity consumption, plus (i) Landlord’s standard administration fee and (ii)
electrical expenses allocable to Common Area and other non-leasable RSF in the Building (provided
that to the extent such amount is included in Expenses, it shall not be separately billed).

     6.4 Telecommunication Services. Tenant will contract directly with third party providers and
will be solely responsible for paying for all telephone, data transmission, video and other
telecommunication services (“Telecommunications Services”) subject to the following:

	 	(a)	 	Providers. Each Telecommunication Services provider that does not
already provide service to the Building shall be subject to Landlord’s approval, which
Landlord may withhold in Landlord’s sole discretion. Without liability to Tenant, the
license of any Telecommunication Services provider servicing the Building may be
terminated under the terms of the license, or not renewed upon the expiration of the
license.
	 
	 	(b)	 	Tenant’s Wiring. Landlord may, in its sole discretion, designate the
location of all wires, cables, fibers, equipment, and connections (“Tenant’s Wiring”)
for Tenant’s Telecommunication Services, restrict and control access to telephone
cabinets and rooms. Tenant may not use or access the Base Building, Common Areas or
roof for Tenant’s Wiring without Landlord’s prior written consent, which Landlord may
withhold in Landlord’s sole discretion, or for which Landlord may charge a fee
determined by Landlord.

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	 	(c)	 	No Beneficiaries. This §6.4 is solely for Tenant’s benefit, and no
one else shall be considered beneficiary of these provisions.

     6.5 Special Circumstances. Without breaching this Lease, Landlord may interrupt, limit or
discontinue any utility or services Landlord provides under this Article 6 under any of the
following circumstances: (a) in an emergency; (b) to comply with laws or to conform to voluntary
government or industry guidelines; and (c) to repair or maintain the Project under §7.2; or (d)
modify, renovate or improve the Project under §8.2, subject to the terms of Section 6.6 below.
Landlord shall use its commercially reasonable efforts to minimize the impact of such interruption,
limitation or discontinuance on Tenant, and shall restore such utility or service as soon as
reasonably possible under the circumstances.

     6.6 Interruption of Services. Except for the circumstances set forth in Section 6.5(a), (b)
and (c), if there is an interruption of the services described in 6.1 (a) (1), (2), (4) and/or (6)
(the “Essential Services”) and such interruption is not the result of negligence or willful
misconduct of Tenant, its agents or employees, and if such interruption continues for a period of
five (5) consecutive business days or thirty (30) business
days in any one (1) twelve month period
after receipt by Landlord of written notice from Tenant, Tenant shall be entitled to an abatement
of rent from the sixth (6th) consecutive day with respect to that portion of the
Premises rendered unusable, and which Tenant does not actually use, by Tenant as a result of such
interruption, until such time as such Essential Services are restored.

7. REPAIRS

     7.1 Tenant’s Repairs. Except as provided in Articles 10 and 12, during the Term Tenant shall,
at Tenant’s cost, repair, maintain and replace, if necessary, the Leasehold Improvements and keep
the Premises in good order, condition and repair. Tenant’s work under this §7.1 must be (a)
approved by Landlord before commencement, (b) supervised by Landlord at Tenant’s cost, If Landlord
so reasonably requires, and (c) performed in a first-class manner with materials of at least Building
Standard.

     7.2 Landlord’s Repairs. Except as provided in Articles 10 and 12, during the Term Landlord
shall repair, maintain and replace, if necessary, all parts of the Project that are not Tenant’s
responsibility under §7.1 or any other tenant’s responsibility under their respective lease, and
otherwise keep the Project in good order and condition according to the standards prevailing for
comparable first-class office buildings in the area in which the Building is located. Except in an
emergency, Landlord will use commercially reasonable efforts to avoid disrupting Tenant’s business
in performing Landlord’s duties under this §7.2. Tenant may not repair or maintain the Project on
Landlord’s behalf or offset any Rent for any repair or maintenance of the Project that is
undertaken by Tenant.

8. ALTERATIONS

     8.1 Alterations by Tenant. “Alterations” means any modifications, additions or improvements
to the Premises or Leasehold Improvements made by Tenant during the Term, including modifications
to the Base Building or Common Areas required by law as a condition of performing the work.
Alterations are made at Tenant’s sole cost and expense, subject to the following:

	 	(a)	 	Consent Required. All Alterations require Landlord’s prior written consent,
except for cosmetic changes solely within the Premises, which do not affect the Base
Building or Common Areas and which cost less than $5,000, in the aggregate over a six
(6) month period. If a Design Problem exists, Landlord may withhold its consent in
Landlord’s sole discretion; otherwise, Landlord will not unreasonably withhold,
condition or delay its consent. Unless Tenant obtains Landlord’s prior written consent
to the Alterations becoming part of the Premises to be tendered to Landlord on
termination of the Lease, Landlord may require Tenant to remove Alterations and restore
the Premises under §3.3 upon termination of this Lease.
	 
	 	(b)	 	Design Problem Defined. “Design Problem” means a condition that results, or
will result, from work proposed, being performed or that has been completed that
either:

	 	(1)	 	Does not comply with laws;
	 
	 	(2)	 	Does not meet or exceed the Building Standard;
	 
	 	(3)	 	Exceeds the capacity, adversely affects, is incompatible with,
or impairs Landlord’s ability to maintain, operate, alter, modify or improve
the Base Building;

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	 	(4)	 	Affects the exterior appearance of the Building or Common Areas;
	 
	 	(5)	 	Violates any agreement affecting the Project;
	 
	 	(6)	 	Violates any insurance regulations or standards for a fire-resistive office
building; or
	 
	 	(7)	 	Locates any equipment, Tenant’s Wiring or Tenant’s Personal
Property on the roof of the Building, in Common Areas or in telecommunication
or electrical closets.

	 	(c)	 	Performance of Alterations. Alterations shall be performed by Tenant
in a good and workman-like manner according to plans and specifications approved by
Landlord. All Alterations shall comply with law and insurance requirements.
Landlord’s designated contractors must perform Alterations affecting the Base
Building or Mechanical Systems; and, all other work will be performed by qualified
contractors that meet Landlord’s insurance requirements and are otherwise reasonably
approved by Landlord. Promptly after completing Alterations, Tenant will deliver to
Landlord “as-built” CADD plans, proof of payment, a copy of the recorded notice of
completion, and all unconditional lien releases.
	 
	 	(d)	 	Bonding. If requested by Landlord, before commencing Alterations
Tenant shall at Tenant’s cost obtain bonds, or deposit with Landlord other security
reasonably acceptable to Landlord for the payment and completion of the Alterations.
These bonds or other security shall be in form and amount acceptable to Landlord, not
to exceed 125% of the cost of completion.
	 
	 	(e)	 	Insurance. Throughout the performance of Alterations, Tenant shall carry
worker’s compensation
insurance in statutory limits, “all risk” Builders Risk coverage and general
liability insurance, with completed operation endorsement, for any occurrence in or
about the Project, under which Landlord and its agent and any Encumbrance holder
whose name and address have been furnished to Tenant shall be named as parties
insured, in such limits as Landlord may reasonably require, with insurers
reasonably satisfactory to Landlord. Tenant shall furnish Landlord with evidence
that such insurance is in effect at or before the commencement of Alterations and,
on request, at reasonable intervals thereafter during the continuance of
Alterations.
	 
	 	(f)	 	Alterations Fee. Tenant shall pay Landlord as Rent 5% of the total
construction costs of the Alterations to cover review of Tenant’s plans and construction
coordination by its own employees. In addition, Tenant shall reimburse Landlord for the
actual cost that Landlord reasonably incurs to have engineers, architects or other
professional consultants review Tenant’s plans and work in progress, or inspect the
completed Alterations.

     8.2 Alterations by Landlord. Landlord may modify, renovate or improve the Land, Building, and
Common Areas (but not the Premises) as Landlord deems appropriate, provided Landlord uses
commercially reasonable efforts to avoid disrupting Tenant’s business.

     8.3 Liens and Disputes. Tenant will keep title to the Land and Building free of any liens
concerning the Leasehold Improvements, Alterations, or Tenant’s Personal Property, and will
promptly take whatever action is required to have any of these liens released and removed of
record (including, as necessary, posting a bond or other deposit). To the extent legally
permitted, each contract and subcontract for Alterations will provide that no lien attaches to or
may be claimed against the Project. Tenant will indemnify Landlord
for costs that Landlord
reasonably incurs because of Tenant’s violation of this §8.3.

	9.	 	INSURANCE

     9.1 Tenant’s Insurance.

	 	(a)	 	Tenant’s Coverage. Before taking possession of the Premises for any
purpose (including construction of Tenant Improvements, if any) and during the Term, Tenant
will provide and keep in force the following coverage:
	 
	 	 	 	 (1) “all risk” property insurance (including coverage for terrorism), with a
deductible reasonably acceptable to Landlord, covering all present and future
Leasehold Improvements and Tenant’s Personal Property to a limit of not less than
the full replacement cost thereof, and

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	 	 	 	 (2) commercial general liability insurance, including a contractual liability
endorsement, and personal injury liability coverage, in respect of the Premises and
the conduct or operation of business therein, with Landlord and its managing agent,
if any, and each Encumbrance holder, defined in Section 14.2, whose name and
address shall have been furnished to Tenant, as additional insureds, with limits of
not less than $5,000,000 combined single limit for bodily injury and property
damage liability in any one occurrence, and
	 
	 	 	 	 (3) [Intentionally Omitted], and
	 
	 	 	 	 (4) when Alterations are in process, the insurance specified in Section 8.1 (c).
	 
	 	(b)	 	Insurers and Terms. The limits of such insurance shall not limit the
liability of Tenant. Tenant shall deliver to Landlord and any additional insureds, at
least 10 days prior to the Commencement Date, such fully paid-for policies or
certificates of insurance, in form reasonably satisfactory to Landlord issued by the
insurance company or its authorized agent. Tenant shall procure and pay for renewals of
such insurance from time to time before the expiration thereof, and Tenant shall
deliver to Landlord and any additional insureds such renewal policy or a certificate
thereof at least 30 days before the expiration of any existing policy. All such
policies shall be issued by companies of recognized responsibility licensed to do
business in Texas and rated by Best’s Insurance Reports or any successor publication of
comparable standing as A/VIII or better or the then equivalent of such rating, and all
such policies shall contain a provision whereby the same cannot be cancelled, allowed
to lapse or modified unless Landlord and any additional insureds are given at least 30
days’ prior written notice of such cancellation, lapse or modification. The
proceeds of policies providing “all risk” property insurance of Leasehold Improvements
and Tenant’s Personal Property shall be payable to Landlord, Tenant and each
Encumbrance holder, defined in Section 14.2, as their interests may appear. Tenant
shall cooperate with Landlord in connection with the collection of any insurance monies
that may be due in the event of loss and Tenant shall execute and deliver to Landlord
such proofs of loss and other instruments which may be required to recover any such
insurance monies. Landlord may from time to time require that the amount of the
insurance to be maintained by Tenant under this Section 14.2 be increased by reasonable
amounts under the circumstances, so that the amount thereof adequately protects
Landlord’s interest.
	 
	 	(c)	 	Proof of Insurance. Tenant shall provide Landlord with certificates of
insurance or other reasonable proof that the coverage required under (a) is in effect.
Tenant will provide reasonable proof at least 30 days before any policy expires that
the expiring policy will be replaced.
	 
	 	(d)	 	Compliance with Insurance Standards.
	 
	 	 	 	 (1) Tenant shall not violate, or permit the violation of, any condition imposed by
any insurance policy then issued in respect of the Project. Tenant shall not do or
permit anything to be done, or keep or permit anything to be kept, in the Premises
which would subject Landlord or any Encumbrance holder, defined in Section 14.2, to
any liability or responsibility for personal injury or death or property damage, or
which would increase any insurance rate in respect of the Project over the rate
which would otherwise then be in effect or which would result in insurance
companies of good standing refusing to insure the Project in amounts reasonably
satisfactory to Landlord, or which would result in the cancellation of, or the
assertion of any defense by the insurer in whole or in part to claims under, any
policy of insurance in respect of the Project.
	 
	 	 	 	 (2) If, by reason of any failure of Tenant to comply with this Lease, the premiums
on Landlord’s insurance on the Project shall be higher than they otherwise would be,
Tenant shall reimburse Landlord, on demand, for that part of such premiums
attributable to such failure on the part of Tenant.
	 
	 	(e)	 	Subrogation Waiver. Landlord and Tenant shall each include in each of
its insurance policies (insuring the Building in case of Landlord, and insuring
Leasehold Improvements and Tenant’s Personal Property in the case of Tenant, against
loss, damage or destruction by fire or other casualty) a waiver of the insurer’s right
of subrogation against the other party during the Term or, if such waiver should be
unobtainable or unenforceable, (a) an express agreement that such policy shall not be
invalidated if the assured waives the right of recovery against any party responsible
for a casualty

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	 	 	 	covered by the policy before the casualty or (b) any other form of permission for
the release of the other party. Each party hereby releases the other party with
respect to any claim (including a claim for negligence) which it might otherwise
have against the other party for loss, damage or destruction with respect to its
property occurring during the Term to the extent to which it is, or is required to
be, insured under a policy or policies containing a waiver of subrogation or
permission to release liability. Nothing contained in this Section 9.1 shall be
deemed to relieve either party of any duty imposed elsewhere in this Lease to
repair, restore or rebuild or to nullify any abatement of rents provided for
elsewhere in this Lease.
	 
	 	9.2	 	Landlord’s Insurance.
	 
	 	(a)	 	Landlord’s Coverage. During the Term, Landlord will provide and
keep in force the following
coverage:

	 	(1)	 	Commercial general liability insurance.
	 
	 	(2)	 	All risk insurance (including standard extended coverage
endorsement perils, leakage from fire protective devices and other water
damage) covering the full replacement cost of the Project improvements
(excepting the Leasehold Improvements to be insured by Tenant). Each of these
policies shall include a provision or endorsement in which the insurer waives
its right of subrogation against Tenant.
	 
	 	(3)	 	Insurance covering the perils described in (2) for Landlord’s
loss of rental income or insurable gross profits. Each of these policies shall
include a provision or endorsement in which the insurer waives its right of
subrogation against Tenant.
	 
	 	(4)	 	Boiler and machinery insurance.
	 
	 	(5)	 	Other insurance that Landlord elects to maintain.

	 	(b)	 	Terms. Each of the policies required under (a) will have those
limits, deductibles, retentions and other
terms that Landlord reasonably determines.

	10.	 	DAMAGE OR DESTRUCTION

     10.1 Casualty. If the Building or the Premises shall be partially or totally damaged or
destroyed by fire or other casualty (each, a “Casualty”) and if this Lease is not terminated as
provided below, then (i) Landlord shall repair and restore the Building and the Premises (but
excluding Leasehold Improvements and Tenant’s Personal Property) (“Landlord’s Restoration Work”)
with reasonable dispatch (but Landlord shall not be required to perform the same on an overtime or
premium pay basis) after notice to Landlord of the Casualty and the collection of the insurance
proceeds attributable to such Casualty and (ii) Tenant shall repair and restore in all Leasehold
Improvements and Tenant’s Personal Property (“Tenant’s Restoration Work”) with reasonable dispatch
after the Casualty. Notwithstanding anything to the contrary contained herein, if in Landlord’s
sole discretion, it would be appropriate for safety reasons, health reasons or the efficient
operation or restoration of the Building or the Premises for Landlord to perform all or a portion
of Tenant’s Restoration Work on behalf of Tenant, then (x) Landlord shall give Tenant a notice
specifying the portion of Tenant’s Restoration Work to be performed by Landlord (the “Specified
Restoration Work”), (y) Landlord shall perform the Specified Restoration Work and (z) Tenant shall
pay to Landlord within ten (10) days following the giving of Landlord’s written demand therefor
(or Landlord shall retain from the insurance proceeds paid to Landlord in accordance with the last
sentence of this Section 10.1) the cost of such Specified Restoration Work. The proceeds of
insurance covering Leasehold Improvements shall be paid to Landlord, and, unless Landlord restores
the Leasehold Improvements as part of the Specified Restoration Work, upon the completion of the
repair and restoration of such Leasehold Improvements and the
reoccupancy of the Premises by
Tenant, Landlord shall disburse to Tenant the proceeds of insurance maintained by Tenant covering
Leasehold Improvements up to the amount so expended by Tenant.

     10.2 Abatement. If all or part of the Premises shall be rendered untenantable by reason of a
Casualty, the Base Rent and the Additional Rent under Section 4.2 shall be abated in the
proportion that the untenantable area of the Premises bears to the total area of the Premises,
for the period from the date of the Casualty to the earliest of (i) the date Landlord shall have
substantially completed its repair and restoration of that portion of the Premises Landlord is
required by this Lease to repair and restore (provided, that if Landlord would have completed its
repair and restoration at an earlier date but for Tenant having failed to cooperate with Landlord
in effecting such repairs or restoration or collecting

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insurance proceeds, then the Premises shall be deemed to have been repaired and restored on such
earlier date and the abatement shall cease) or(ii) the date Tenant or any subtenant reoccupies a
portion of the Premises (in which case the Base Rent and the Additional Rent allocable to such
reoccupied portion shall be payable by Tenant from the date of such occupancy) or (iii) the date
the Premises is made tenantable (provided, that if the Premises would have been tenantable at an
earlier date but for Tenant having failed to cooperate with Landlord in effecting repairs or
restoration or collecting insurance proceeds, then the Premises shall be deemed to have been made
tenantable on such earlier date and the abatement shall cease). Notwithstanding any provision
contained in this Lease to the contrary, (x) there shall be no abatement with respect to any
portion of the Premises which has not been rendered untenantable by reason of a Casualty and which
is accessible, whether or not other portions of the Premises are untenantable, and (y) any
abatement of Rent applicable to any portion of the Premises which was rendered untenantable by
reason of a Casualty shall cease on the earliest of the dates referred to in clauses (i), (ii) or
(iii) of the preceding sentence provided such portion is accessible, whether or not other portions
of the Premises remain untenantable. Landlord’s determination of the date such repair and
restoration to the Premises shall have been substantially completed or the date the Premises is
made tenantable shall be controlling unless Tenant disputes same by notice to Landlord given within
10 days after such determination by Landlord, and pending resolution of such dispute, Tenant shall
pay Rent in accordance with Landlord’s determination. Notwithstanding the foregoing, if by reason
of any act or omission by Tenant, any subtenant or any of their respective partners, directors,
officers, servants, employees, agents or contractors, Landlord, any
Superior Lessor or any Superior
Mortgagee shall be unable to collect all of the insurance proceeds (including, without limitation,
rent insurance proceeds) applicable to the Casualty, then, without prejudice to any other remedies
which may be available against Tenant, there shall be no abatement of Rent. Nothing contained in
this Section 10 shall relieve Tenant from any liability that may exist as a result of any Casualty.

     10.3 Termination. If by reason of a Casualty (i) the Building shall be totally damaged or
destroyed, (ii) the Building shall be so damaged or destroyed (whether or not the Premises are
damaged or destroyed) that repair or restoration shall require more than 270 days or the
expenditure of more than 20% percent of the full insurable value of the Building (which, for
purposes of this Section 10.3, shall mean replacement cost less the cost of footings, foundations
and other structures below the street and first floors of the Building) immediately prior to the
Casualty or (iii) more than 30% of the Premises shall be damaged or destroyed (as estimated in any
such case by a reputable contractor, architect or engineer designated by Landlord), then in any
such case Landlord may terminate this Lease by notice given to Tenant within 180 days after the
Casualty. If this Lease is terminated as a result of a Casualty, Landlord shall be entitled to
retain for its benefit the proceeds of insurance maintained by Tenant on the Leasehold
Improvements.

     10.4 Reconstruction. Landlord shall not carry any insurance on Tenant’s Personal Property or
on any Leasehold Improvements and shall not be obligated to repair or replace Tenant’s Personal
Property or any Leasehold Improvements (whether or not installed by or at the expense of
Landlord). Tenant shall look solely to its insurance for recovery of any damage to or loss of
Tenant’s Personal Property or any Leasehold Improvements. Tenant shall notify Landlord promptly of
any Casualty in the Premises. In the event of a partial or total destruction of the Premises,
Tenant shall as soon as practicable, whether or not Landlord shall have notified Tenant to remove
the same, but in no event later than five (5) Business Days after receiving a notice from
Landlord, remove any and all of Tenant’s Personal Property from the Premises or the portion thereof
destroyed, as the case may be, and if Tenant does not promptly so remove Tenant’s Personal
Property, Landlord, at Tenant’s expense, may discard the same or may remove Tenant’s Personal
Property to a public warehouse for deposit or retain the same in its own possession and at its
discretion may sell the same at either public auction or private sale, the proceeds of which shall
be applied first to the expenses of removal, storage and sale, second to any sums owed by Tenant
to Landlord, with any balance remaining to be paid to Tenant; if the expenses of such removal,
storage and sale shall exceed the proceeds of any sale, Tenant shall pay such excess to Landlord
upon demand. Tenant shall be solely responsible for arranging for any visits to the Premises by
Tenant’s insurance adjuster that may be desired by Tenant prior to the removal of Tenant’s
Personal Property by Tenant or Landlord, as provided in this Section 10.4, or the performance by
Landlord of Landlord’s Restoration Work or the Specified Restoration Work and Landlord shall be
under no obligation to delay the performance of same, nor shall Landlord have any liability to
Tenant in the event that Tenant fails to do so. Tenant shall promptly permit Landlord access to
the Premises for the purpose of performing Landlord’s Restoration Work and, if applicable, the
Specified Restoration Work.

     10.5 Express Agreement. This Section 10 shall be deemed an express agreement governing any
damage or destruction of the Premises by fire or other casualty, and any law, rule or regulation
providing for such a contingency in the absence of an express agreement, and any other law of
like import now or hereafter in force, shall have no application.

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	11.	 	INDEMNITY

     11.1 Claims. “Claims” means any and all liabilities, losses, claims, demands, damages or
expenses that are suffered, or incurred by a party, including attorneys’ fees reasonably incurred
by that party in the defense or enforcement of the rights of that
party.

     11.2 Tenant’s Indemnity.

	 	(a)	 	Landlord’s Waivers. Landlord waives any Claims against Tenant and
its Affiliates for perils insured or required to be insured by Landlord under
subsections (2) and (3) of §9.2(a), except to the extent caused by the gross
negligence or willful misconduct of Tenant or its Affiliates.
	 
	 	(b)	 	Tenant’s Indemnity. Unless waived by Landlord under (a), Tenant will
indemnify and defend Landlord and its Affiliates and hold each of them harmless from
and against Claims to the extent caused by:

	 	(1)	 	Any accident or occurrence on or about the Premises, except
to the extent caused by Landlord’s or its Affiliates’ gross negligence or
willful misconduct;
	 
	 	(2)	 	Tenant’s or its Affiliates’ negligence or willful misconduct; or
	 
	 	(3)	 	Any claim for commission or other compensation by any person
other than the Brokers for services rendered to Tenant in procuring this
Lease.

     11.3 Landlord’s Indemnity.

	 	(a)	 	Tenant’s Waivers. Tenant waives any Claims against Landlord and its Affiliates
for:

	 	(1)	 	Peril insured or required to be insured by Tenant under
subsections (2), (3) and (4) of §9.1(a), except to the extent caused by the
gross negligence or willful misconduct of Landlord or its Affiliates, but in
no case including any special or consequential damages (such as interruption
of business, loss of income, or loss of opportunity); or
	 
	 	(2)	 	Damage caused by any public utility, public work, other
tenants or occupants of the Project, or persons other than Landlord; or
	 
	 	(3)	 	Damages in excess of the insurance Landlord maintains under §9.1.

	 	(b)	 	Landlord’s Indemnity. Unless waived by Tenant under (a), Landlord
will indemnify and defend
Tenant and its Affiliates and hold each of them harmless from and against Claims
arising from:

	 	(1)	 	Landlord’s or its Affiliates’ gross negligence or willful misconduct; or
	 
	 	(2)	 	Any claim for commission or other compensation by any person
other than the Brokers for services rendered to Landlord in procuring this
Lease.

     11.4 Affiliates Defined. “Affiliates” means with respect to a party (a) that party’s
partners, co-members and joint venturers, (b) each corporation or other entity that is a parent or
subsidiary of that party, (c) each corporation or other entity that is controlled by or under
common control of a parent of such party, and (d) the directors, officers, employees and agents of
that party and each person or entity described in this

§11.4(a-c).

     11.5 Survival of Waivers and Indemnities. Landlord’s and Tenant’s waivers and indemnities
under §11.2 and §11.3 will survive the expiration or early termination of this Lease.

	12.	 	CONDEMNATION

     12.1 If there shall be a total taking of the Building in condemnation proceedings or by any
right of eminent domain, this Lease and the term and estate hereby granted shall terminate as of
the date of taking of possession by the condemning authority and all Rent shall be prorated and
paid as of such termination date. If there shall be a taking of any material (in Landlord’s
reasonable judgment) portion of the Land or the Building (whether or
not the Premises are affected
by such taking), then Landlord may terminate this Lease and the term and estate granted hereby by
giving notice to Tenant within 60 days after the date of taking of possession by the condemning
authority. If there shall be a taking of the Premises of such scope (but in no event less than 25%
thereof) that the untaken part of the Premises would in Tenant’s reasonable judgment be uneconomic
to operate, then Tenant may terminate this Lease and the term and estate

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granted hereby by giving notice to Landlord within 60 days after the date of taking of possession
by the condemning authority. If either Landlord or Tenant shall give a termination notice as
aforesaid, then this Lease and the term and estate granted hereby shall terminate as of the date of
such notice and all Rent shall be prorated and paid as of such
termination date. In the event of a
taking of the Premises which does not result in the termination of this Lease (i) the term and
estate hereby granted with respect to the taken part of the Premises shall terminate as of the
date of taking of possession by the condemning authority and all Rent shall be appropriately abated
for the period from such date to the Expiration Date and
(ii) Landlord shall with reasonable
diligence restore the remaining portion of the Premises (exclusive of Tenant’s Property) as nearly
as practicable to its condition prior to such taking.

     12.2
In the event of any taking of all or a part of the Building, Landlord shall be entitled
to receive the entire
award in the condemnation proceeding, including, without limitation, any award made for the
value of the estate vested
by this Lease in Tenant or any value attributable to the unexpired portion of the Term, and
Tenant hereby assigns to
Landlord any and all right, title and interest of Tenant now or hereafter arising in or to any
such award or any part
thereof, and Tenant shall be entitled to receive no part of such award; provided, that nothing
shall preclude Tenant from
intervening in any such condemnation proceeding to claim or receive from the condemning
authority any compensation
to which Tenant may otherwise lawfully be entitled in such case in respect of Tenant’s
Property and moving expenses,
provided the same do not include any value of the estate vested by this Lease in Tenant or of
the unexpired portion of the
Term and do not reduce the amount available to Landlord or materially delay the payment
thereof.

     12.3 If all or any part of the Premises shall be taken for a limited period, Tenant shall be
entitled, except as
hereinafter set forth, to that portion of the award for such taking which represents
compensation for the use and occupancy of the Premises, for the taking of Tenant’s Property and for moving expenses, and
Landlord shall be entitled to
that portion which represents reimbursement for the cost of
restoration of the Premises. This
Lease shall remain unaffected by such taking and Tenant shall continue responsible for all of its obligations under
this Lease to the extent such
obligations are not affected by such taking and shall continue to pay in full all Rent when
due. If the period of temporary
use or occupancy shall extend beyond the Expiration Date, that part of the award which
represents compensation for the
use and occupancy of the Premises shall be apportioned between Landlord and Tenant as of the
Expiration Date. Any
award for temporary use and occupancy for a period beyond the date to which the Rent has been
paid shall be paid to,
held and applied by Landlord as a trust fund for payment of the Rent thereafter becoming due.

     12.4 In the event of any taking which does not result in termination of this Lease, (i)
Landlord, whether or
not any award shall be sufficient therefor, shall proceed with reasonable diligence to repair
the remaining parts of the
Building and the Premises (other than those parts of the Premises which constitute Tenant’s
Property) to substantially
their former condition to the extent that the same may be feasible (subject to reasonable
changes which Landlord deems
desirable) and so as to constitute a complete and rentable Building and Premises and (ii)
Tenant, whether or not any
award shall be sufficient therefor, shall proceed with reasonable diligence to repair the
remaining parts of the Premises
which constitute Tenant’s Property, to substantially their former condition to the extent that
the same may be feasible,
subject to reasonable changes which shall be deemed Alterations.

13. TENANT TRANSFERS

     13.1 Terms Defined.

	 	(a)	 	Transfer Defined. “Transfer” means any:

	 	(1)	 	Sublease of all or part of the Premises, or assignment, mortgage,
hypothecation or other
conveyance of an interest in this Lease;
	 
	 	(2)	 	Use of the Premises by anyone other than Tenant with Tenant’s consent;
	 
	 	(3)	 	Change in Tenant’s form of organization (e.g., a change from a
partnership to limited
liability company);
	 
	 	(4)	 	Transfer of 51% or more of Tenant’s assets, shares
(excepting shares transferred in the
normal course of public trading), membership interests, partnership interests
or other ownership interests; or
	 
	 	(5)	 	Transfer of effective control of Tenant.

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     13.2 Prohibited Transfers. Tenant may not enter into a Transfer or other agreement to use or
occupy the
Premises that provides for rent or other compensation based in whole or in part on the net
income or profits from the
business operated in the Premises. Tenant may not enter into a Transfer if the proposed
transferee is directly or
indirectly related to the Landlord under §856, et seq. of the Internal Revenue Code of 1986
(as amended). Any such
Transfers shall be considered null, void and of no force or effect.

     13.3 Consent Not Required. Tenant may effect a Transfer to a transferee without Landlord’s prior
consent, but with notice to Landlord prior to the transferee’s occupancy, if the transferee
qualifies as a Permitted
Transferee. A “Permitted Transferee” is any person or entity that meets all of the following
requirements:

	 	(a)	 	The transferee (1) controls, is controlled by, or is under common control with
Tenant (for purposes
hereof, “control” shall mean ownership of not less than 50% of all of the voting
stock or legal and
equitable interest in the entity in question), or (2) results from the merger or
consolidation of Tenant,
or (3) acquires all or substantially all of the stock and/or assets of Tenant as a
going concern.
	 
	 	(b)	 	The transferee has a tangible net worth immediately following the Transfer not
less than the greater of
(1) Tenant’s tangible net worth immediately before the
Transfer, or (2) Tenant’s
tangible net worth as
of the execution of this Lease.
	 
	 	(c)	 	The transferee’s occupying the Premises will not cause Landlord to
breach any other lease or other agreement affecting the Project.

     13.4 Consent Required. Each proposed Transfer other than those prohibited under §13.2 or
permitted under §13.3 requires Landlord’s prior consent, in
which case the parties will proceed as
follows:

	 	(a)	 	Tenant’s Notice. Tenant shall notify Landlord at least 30 days prior
to the proposed Transfer of the
name and address of the proposed transferee and the proposed use of the Premises,
and include in the
notice the Transfer documents and copies of the proposed
transferee’s then current
balance sheets and
income statements (both current and for the past 2 years, if requested by Landlord).

	 	(b)	 	Landlord’s Rights. Within 15 days after receipt of Tenant’s complete notice,
Landlord may:

	 	(1)	 	If the proposed Transfer is either an assignment of this Lease
or sublease of substantially all
of the Premises, terminate this Lease as of the proposed Transfer date; or
	 
	 	(2)	 	If the proposed Transfer is a sublease of all of the Premises
or any part of the Premises that
will be separately demised and have its own entrance from the Common Areas,
exercise a
right of first refusal to sublease such portion of the Premises at the lesser
of (A) the Rent
(prorated for subletting part of the Premises), or (B) the rent payable in
the proposed
Transfer; or
	 
	 	(3)	 	Consent or deny consent to the proposed Transfer, consent not
to be unreasonably withheld
if:

	 	(A)	 	Landlord determines, in Landlord’s reasonable
discretion, that the proposed
transferee has the financial capacity to meet its obligations under
the proposed
Transfer;
	 
	 	(B)	 	The proposed use is consistent with the Use and
will not cause Landlord to be in
breach of any lease or other agreement affecting the Project;
	 
	 	(C)	 	The proposed transferee is typical of tenants
that directly lease premises in first-class office buildings;
	 
	 	(D)	 	The proposed transferee is not a government or diplomatic entity;
	 
	 	(E)	 	The proposed transferee is not an existing
tenant or an Affiliate of an existing tenant, or a party with which
Landlord is actively negotiating to lease space in the Building (or
has, in the last 6 months, been actively negotiating to lease space in
the Building); and
	 
	 	(F)	 	Tenant is not in Default under this Lease.

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	 	(c)	 	Compelling Consent. If Landlord does not consent to a Transfer,
Tenant’s sole remedy against Landlord will be an action for specific performance or
declaratory relief, and Tenant may not terminate this Lease or seek monetary
damages.

     13.5 Payments to Landlord. Tenant shall pay Landlord 50% of Transfer receipts that exceed
Tenant’s
Rent (on a per square foot basis); after Tenant is reimbursed for Tenant’s reasonable and
customary out-of-pocket costs
incurred in the Transfer, including attorneys’ fees, Alterations, and broker commissions.
Tenant shall pay Landlord a
$500 review fee for each proposed Transfer, excepting those in which Landlord exercises its
rights under subsection (1)
or (2) of §13.4(b).

     13.6
Effect of Transfers. Except where Landlord exercises its rights under §13.4(b)(l), no Transfer
releases Tenant or any guarantor of this Lease from any Lease obligation. Landlord’s
acceptance of a payment from any
person or entity other than Tenant that occupies the Premises does not waive Tenant’s
obligations under this Article 13.
If Tenant is in default of this Lease, Landlord may proceed against Tenant or any guarantor of
this Lease without
exhausting any remedies against any transferee and may require (by written notice to any
transferee) any transferee to
pay Transfer rent owed Tenant directly to Landlord (which Landlord will apply against Tenant’s
Lease obligations).
Termination of this Lease for any reason will not result in a merger. Each sublease will be
deemed terminated upon
termination of this Lease unless Landlord notifies the subtenant in writing of Landlord’s
election to assume any sublease,
in which case the subtenant shall attorn to Landlord under the executory terms of the
sublease.

14. LANDLORD TRANSFERS

     14.1 Landlord’s Transfer. Landlord’s right to transfer any interest in the Project or this
Lease is not
limited by this Lease. Upon any such transfer and such assignee’s assumption of this Lease,
Tenant will attorn to
Landlord’s transferee and Landlord will be released from liability under this Lease, except
for any Lease obligations
accruing before the transfer that are not assumed by the transferee.

     14.2 Subordination. This Lease is, and will at all times be, subject and subordinate to each
ground lease,
mortgage, deed to secure debt or deed of trust now or later encumbering the Building,
including each renewal,
modification, supplement, amendment, consolidation or replacement thereof (each, an
“Encumbrance”). At Landlord’s
request, Tenant will, without charge, promptly execute, acknowledge and deliver to Landlord
(or, at Landlord’s request,
the Encumbrance holder), but in no event later than 10 business days of Landlord’s request,
any instrument in reasonable
form and reasonably necessary to evidence this subordination. Notwithstanding the foregoing,
each Encumbrance holder
may unilaterally elect to subordinate its Encumbrance to this Lease.

     14.3
Attornment. Tenant will automatically attorn to any transferee of Landlord’s interest in the Project
that succeeds Landlord by reason of a termination, foreclosure or enforcement proceeding of an
Encumbrance, or by
delivery of a deed in lieu of any foreclosure or proceeding (a “Successor Landlord”). In this
event, the Lease will
continue in full force and effect as a direct lease between the Successor Landlord and Tenant
on all of the terms of this
Lease, except that the Successor Landlord shall not be:

	 	(a)	 	Liable for any obligation of Landlord under this Lease, or be subject to any
counterclaim, defense or
offset accruing before Successor Landlord succeeds to Landlord’s interest;
	 
	 	(b)	 	Bound by any modification or amendment of this Lease made without Successor Landlord’s
consent,
	 
	 	(c)	 	Bound by any prepayment of more than one month’s Rent;
	 
	 	(d)	 	Obligated to return any Security Deposit not paid over to Successor Landlord, or
	 
	 	(e)	 	Obligated to perform any improvements to the Premises (or provide an allowance therefor).
Upon Successor Landlord’s request, Tenant will, without charge, promptly execute, acknowledge and
deliver to Successor
Landlord any instrument reasonably necessary required to evidence
such attornment.

     14.4 Estoppel Certificate. Within 10 days after receipt of Landlord’s written request, Tenant
(and each guarantor and transferee of an interest in the Lease) will execute, acknowledge and
deliver to Landlord a certificate upon which Landlord and each existing or prospective Encumbrance
holder may rely confirming the following (or any exceptions to the following):

	 	(a)	 	The Commencement Date and Expiration Date;
	 
	 	(b)	 	The documents that constitute the Lease, and that the Lease is unmodified and in full
force and effect;

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	 	(c)	 	The date through which Base Rent, Additional Rent, and other Rent has been paid;
	 
	 	(d)	 	That neither Landlord nor Tenant is in default of this Lease;
	 
	 	(e)	 	That Landlord has satisfied all Lease obligations to improve the Premises (or provide
Tenant an
allowance therefor) and Tenant has accepted the Premises;
	 
	 	(f)	 	That Tenant solely occupies the Premises; and
	 
	 	(g)	 	Such other matters concerning this Lease or Tenant’s occupancy that Landlord may
reasonably require.

     To
the extent that the terms of any such estoppel conflicts with the terms and conditions of
this Lease, the terms and conditions of this Lease shall in all cases govern and control.

15. DEFAULT AND REMEDIES

     15.1 Tenant’s Default and Landlord’s Remedies.

	 	(a)	 	Tenant’s Default. Tenant is in default of this Lease if any of the
following occur:

	 	(1)	 	Tenant fails to pay Rent when due, and the failure continues
for five (5) days after Landlord
notifies Tenant of this failure under §17.2 (Tenant waiving any other notice
that may be
required by law).
	 
	 	(2)	 	Tenant fails to perform a non-monetary Lease obligation of
Tenant and the failure continues
for 10 days after Landlord notifies Tenant of this failure, except that:

	 	(A)	 	In an emergency Landlord may require Tenant to
perform this obligation in a
reasonable time of less than 10 days, or
	 
	 	(B)	 	If Tenant begins performing this obligation
within 10 days after Landlord notifies
Tenant of this failure, but it will reasonably take more than 10 days
to complete
performing the obligation, then Tenant will have a reasonable amount
of additional
time, but not to exceed an additional 30 days, to complete performing
the
obligation.

	 	(3)	 	Tenant consummates a Transfer that violates Article 13.
	 
	 	(4)	 	Tenant fails to discharge any attachment or levy on Tenant’s
interest in this Lease within 15
days after the attachment or levy encumbers this Lease.
	 
	 	(5)	 	Tenant fails to cause any of the following proceedings to be
vacated or dismissed within 60
days after they are commenced: (A) the appointment of a receiver or trustee
of the assets of
Tenant or any guarantor of this Lease; (B) the voluntary or involuntary
bankruptcy of Tenant
or any guarantor of this Lease; or (C) any assignment for the benefit of
creditors of the assets
of Tenant or any guarantor of this Lease.

	 	(b)	 	Landlord’s Remedies. If Tenant is in default under (a), Landlord may,
without prejudice to the exercise of any other remedy, exercise any remedy available
under law, including those described below:

	 	(1)	 	Landlord may enter the Premises as reasonably required and cure
Tenant’s default on Tenant’s behalf without releasing Tenant from any Lease
obligation, and Tenant shall reimburse Landlord on demand for all costs of such
cure, plus Landlord’s standard administration fee.
	 
	 	(2)	 	Landlord may terminate this Lease upon notice to Tenant (on a
date specified in the notice) and recover possession of the Premises from
Tenant. At Landlord’s election, either:

	 	(A)	 	Landlord may recover any Rent unpaid as of the
termination date, and Tenant will remain liable for the payment when
due of Rent for the remaining Term, less the proceeds that Landlord
receives in reletting the Premises, but only after Landlord is
reimbursed From these proceeds for the reasonable expenses Landlord
incurs to recover possession of the Premises and relet the Premises; or

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	 	(B)	 	Landlord may recover any Rent unpaid as of the termination date, and
further recover the present value as of the termination date (calculated using
the then current discount rate of the Federal Reserve Bank of New York) of the
Rent to be paid for the Term remaining after the termination date (assuming 8%
annual increases in Additional Rent) exceeds the proceeds that Landlord
receives in reletting the Premises, but only after Landlord is reimbursed from
these proceeds for the reasonable expenses Landlord incurs to recover
possession of the Premises and relet the Premises.

	 	(3)	 	Terminate this Lease as provided in Subsection 15.1(b)(1) hereof and
recover from Tenant all damages Landlord may incur by reason of Tenant’s default,
including, without limitation, an amount which, at the date of such termination, is
calculated as follows: (A) the value of the excess, if any, of (i) the Base Rent,
Additional Rent and all other sums which would have been payable hereunder by Tenant
for the period commencing with the day following the date of such termination and
ending with the Expiration Date had this Lease not been terminated (the “Remaining
Term”), over (ii) the aggregate reasonable rental value of the Premises for the
Remaining Term (calculated using a discount rate of eight percent (8%)); plus
(B) the costs of recovering possession of the Premises and all other expenses
incurred by Landlord due to Tenant’s default, including, without limitation,
reasonable attorney’s fees; plus (C) the unpaid Base Rent and Additional Rent
earned as of the date of termination plus any interest and late fees due hereunder,
plus other sums of money and damages owing on the date of termination by Tenant to
Landlord under this Lease or in connection with the Premises. The amount as
calculated above shall be deemed immediately due and payable. The payment of the
amount calculated in subparagraph (2)(A) shall not be deemed a penalty but shall
merely constitute payment of liquidated damages, it being understood and acknowledged
by Landlord and Tenant that actual damages to Landlord are extremely difficult, if
not impossible, to ascertain. In determining the aggregate reasonable rental value
pursuant to subparagraph (2)(A)(ii) above, the parties hereby agree that, at the time
Landlord seeks to enforce this remedy, all relevant factors shall be considered,
including, but not limited to: (a) the length of time remaining in the Remaining
Term; (b) the then current market conditions in the general area in which the
Building is located; (c) the likelihood of reletting the Premises for a period of
time equal to the Remaining Term; (d) the net effective rental rates then being
obtained by landlords for similar type space of similar size in similar type
buildings in the general area in which the Building is located; (e) the vacancy
levels in the general area in which the Building is located; (f) current levels of
new construction that will be completed during the Remaining Term and how this
construction will likely affect vacancy rates and rental rates; and (g) inflation; or
	 
	 	(3)	 	Landlord may use reasonably necessary force to enter and take possession of
all or any part
of the Premises, expel Tenant or any other occupant, and remove their personal
property, and
the entry will not constitute a trespass or terminate the Lease. After regaining
possession of
the Premises, Landlord may relet the Premises for Tenant’s account, but Landlord
will not
be responsible or liable if Landlord fails to do so or is unable to collect rent
due from any
reletting. Tenant will continue to pay Rent due, less a credit for the proceeds
that Landlord
receives in reletting the Premises, but only after Landlord is reimbursed from
these proceeds
for the expenses Landlord incurs to recover possession of the Premises and relet
the
Premises.
	 
	 	(4)	 	For any amounts owed under (1), (2), or (3), Landlord may recover interest at
the at the
lesser of 10% per annum or maximum interest rate permitted under law (“Default
Rate”)
from the date each amount is due until paid by Tenant.

	 	(c)	 	Each notice required under (a) may be given according to §17.2, and Tenant waives any
other notice that may be required by law.

     15.2
Landlord’s Default and Tenant’s Remedies.

	 	(a)	 	Landlord Default. Landlord is in default of this Lease if Landlord fails to perform
any obligation Lease obligation of Landlord and the failure continues, after Tenant notifies
Landlord of the failure, for 20 days or such longer period of time that may be reasonable if
more than 20 days is required to

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	 	 	 	perform the obligation.
	 
	 	(b)	 	Tenant’s Remedies. If Landlord is in default of this Lease under (a),
then Tenant may exercise any remedy available under law that is not waived or limited
under this Lease, subject to the following:

	 	(1)	 	Tenant may not terminate this Lease due to any Landlord default, and
Tenant’s remedies shall be limited to specific performance and
monetary damages
	 
	 	(2)	 	Landlord’s liability under this Lease is limited to, and may be
enforced only against, Landlord’s interest in the Building. This Lease
does not bind and is not enforceable against Landlord’s Affiliates.
	 
	 	(3)	 	Under no circumstances will Landlord be liable for any form of
special, indirect or consequential damages, including lost profits and
damage to business interests.

          15.3 Enforcement Costs. If Landlord or Tenant brings a claim against the other party to
enforce or interpret any provision of this Lease (including any claim in a bankruptcy or an
assignment for the benefit of creditors), then Landlord or Tenant shall reimburse the prevailing
party for all reasonable attorneys’ fees incurred in pursuing the claim, including the value of
services provided by counsel employed by the prevailing party or its Affiliates in the amount that
would have reasonably incurred if the services had been performed by unaffiliated counsel.

          15.4 Jury Trial. Landlord and Tenant each waive trial by jury in any action, proceeding or
counterclaim brought by either party against the other concerning any matter related to this Lease.

          15.5 Force Majeure. “Force Majeure” means any cause or event beyond both Landlord’s and
Tenant’s reasonable control, including any act of God, government act or restriction, labor
disturbance, general shortage of materials or supplies, riot, insurrection, or act of war or
terrorism. Force Majeure excuses a party from performing any non-monetary Lease obligation for a
commercially reasonable time.

16. LETTER OF CREDIT; SECURITY DEPOSIT

          16.1 Letter of Credit. Upon the full execution of this Lease, Tenant shall deliver to Landlord
an unconditional, irrevocable letter of credit initially in the amount of $124,607.03 in a form
reasonably acceptable to Landlord, capable of being drawn upon at any of such issuer’s offices in
the Houston, Texas area (the “Letter of Credit”); provided, however, notwithstanding anything to
the contrary contained in this Lease, until Landlord receives the Letter of Credit from Tenant,
Landlord shall not be required to pay or commit to pay any portion of the Allowance or a
commission to Tenant’s Broker. Said Letter of Credit shall be automatically renewed on an annual
basis (the Letter of Credit shall be “evergreen”) and shall name Landlord, and any
successor-in-interest of Landlord, as beneficiary thereunder. So long as Tenant is not then in
default of this Lease, the Letter of Credit may, at Tenant’s
option, be reduced by $31,151.76
upon each anniversary of the Commencement Date. Landlord must be given at least thirty (30) days
prior written notice from the issuing bank if such issuing bank does not intend to renew the Letter
of Credit and in such event, Landlord shall be permitted to draw on the Letter of Credit. The
Letter of Credit will permit Landlord to draw on it if a (i) Vice President of Landlord or its
successor company, provides a letter to the issuing bank which states that Tenant is in default
under the terms of the Lease and has failed to cure such default
within the period of time
permitted to cure such default under the Lease, or (ii) Tenant files a petition under any Chapter
of the Bankruptcy Code, or any amendment, replacement or substitution therefor. If Landlord draws
on the Letter of Credit, the proceeds will be held by Landlord as security for the payment and
performance by Tenant of its obligations under this Lease.

          16.2 Security Deposit. In the event that Landlord draws on the Letter of Credit, Tenant shall
immediately thereafter deposit an amount equal to the amount of such draw (the “Security Deposit”)
with Landlord, to be held as security for the duration of the Term as provided herein. Landlord is
not required to either segregate the Security Deposit from any other funds or pay any interest on
the Security Deposit. The Security Deposit secures Tenant’s performance of all Lease obligations
for the remaining portion of the Term and shall be in addition to the remaining portion of the
Letter of Credit. Landlord may apply the Security Deposit against any cost Landlord incurs or
damage Landlord suffers because Tenant fails to perform any Lease obligation, including payment of
Rent. Upon Landlord’s demand, Tenant shall immediately replenish any Security Deposit so applied.
The Security Deposit shall not be considered an advance payment of rental or a measure of
Landlord’s damages in case of default by Tenant. If Tenant defaults with respect to any provision
of this Lease, Landlord may, but shall not be required to, from time to time, without prejudice to
any other remedy, use, apply or retain all or any part of this Security Deposit for the payment of
any Rent or any other sum in de-

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fault or for the payment of any other amount which Landlord may spend or become obligated to spend
by reason of Tenant’s default or to compensate Landlord for any other loss or damage which Landlord
may suffer by reason of Tenant’s default, including, without
limitation, costs and attorneys’ fees
incurred by Landlord to recover possession of the Premises. If Tenant shall fully and faithfully
perform every provision of this Lease to be performed by it, the Security Deposit shall be returned
to Tenant within forty-five (45) days after the Expiration Date. Tenant agrees that it will not
assign or encumber or attempt to assign or encumber the monies deposited herein as the Security
Deposit and that Landlord and its successors and assigns shall not be bound by any such actual or
attempted assignment or encumbrance. Regardless of any assignment of this Lease by Tenant, Landlord
may return the Security Deposit to the original Tenant, in the absence of evidence satisfactory to
Landlord of an assignment of the right to receive the Security Deposit or any part of the balance
thereof.

17. MISCELLANEOUS

          17.1 Rules and Regulations. Tenant will comply with the Rules and Regulations attached as
Exhibit “B”. Landlord may reasonably modify or add to the Rules and Regulations upon notice to
Tenant. Landlord shall uniformly enforce the Rules and Regulations, to the extent such apply. If
the Rules and Regulations conflict with this Lease, the Lease shall govern.

          17.2
Notice. Notice to Landlord must be given to Landlord’s Notice Addresses. Notice to Tenant
must be given to Tenant’s Notice Addresses. By notice to the other, either party may change its
Notice Address. Each notice must be in writing and will be validly given if either: (a) the notice
is personally delivered and receipt is acknowledged in writing; or (b) the notice is delivered by a
nationally recognized overnight courier service (e.g. FedEx or Airborne Express) and receipt is
acknowledged in writing. If the party to receive notice refuses to accept delivery or acknowledge
its receipt in writing, then notice may be validly given by mailing the notice first-class,
certified or registered mail, postage prepaid, and the notice will be deemed received by the party
2 business days after the deposit of the notice in the U.S. Mail.

          17.3 Relocation. Landlord may relocate Tenant to other premises in One Allen Center located at
500 Dallas, Houston, Texas; Two Allen Center located at 1200 Smith
Street, Houston Texas; or the
Building (“Replacement Premises”) upon not less than 30-days’ notice, provided that the Replacement
Premises is comparably sized, substantially similar in configuration and extent of improvements and
is reasonably suitable for Tenant’s use. If Landlord elects to relocate Tenant under this §17.3,
then Landlord will, at Landlord’s cost, construct Leasehold Improvements in the Replacement
Premises of comparable quality to those existing in the Premises, move Tenant’s personal properly
from the Premises to the Replacement Premises, relocate Tenant’s existing telephone and computer
systems, and replace up to $500 of any in-stock stationery identifying the Premises. Any relocation
initiated by Landlord will be performed after-hours Monday through Friday or on weekends as to
minimize disturbance to Tenant’s business.

          17.4 Building Name. Tenant shall not use the Building’s name or image for any purpose, other
than Tenant’s address. Landlord may change the name of the Building without any obligation or
liability to Tenant.

          17.5 Entire Agreement. This Lease is deemed integrated and contains all of each party’s
representations, waivers and obligations. This Lease will not be valid or effective until fully
executed and delivered by both parties. The parties may only modify or amend this Lease in a
writing that is fully executed and delivered by both parties.

          17.6
Successors. Unless provided to the contrary elsewhere in this Lease, this Lease binds and
inures to the benefit of each party’s heirs, successors and permitted assignees.

          17.7 No Waiver. A party’s waiver of a breach of this Lease will not be considered a waiver of
any other breach. No custom or practice that develops between the parties will prevent either
party from requiring strict performance of the terms of this Lease. No Lease provision or act of a
party creates any relationship between the parties other than that of landlord and tenant.

          17.8
Independent Covenants. The covenants of this Lease are independent. A court’s declaration
that any part of this Lease is invalid, void or illegal will not impair or invalidate the remaining
parts of this Lease, which will remain in full force and effect.

          17.9 Captions. The use of captions, headings, boldface, italics or underlining is for
convenience only, and will not affect the interpretation of this Lease.

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          17.10 Authority. Individuals signing this Lease on behalf of Tenant represent and warrant that
they arc authorized to bind Tenant to this Lease, and that Tenant is qualified to do business in
the State of Texas, If required by Landlord, Tenant will, at Tenant’s cost, provide Landlord with a
corporate resolution, opinion of counsel or other documentation acceptable to Landlord proving the
authority of each individual signatory to bind Tenant to this Lease.

          17.11 Applicable Law. The laws of the State of Texas govern this Lease. In any action brought
under this Lease, Tenant submits to the jurisdiction of the courts of the State of Texas and to
venue in the County of Harris.

          17.12 Confidentiality. Tenant will not record this Lease or a memorandum of this Lease without
Landlord’s written consent.

          17.13 Reasonableness. Tenant’s sole remedy for any claim against Landlord that Landlord has
unreasonably withheld or unreasonably delayed any consent or approval shall be an action for
injunctive or declaratory relief.

          17.14
Time. Time of the essence as to all provisions in this Lease in which time is a
factor.

          17.15 Quiet Enjoyment. So long as Tenant is not in default of this Lease and except as
provided in the Lease, Landlord will not interfere with Tenant’s peaceful and quiet enjoyment of
the Premises for the Term. Landlord is not liable for, and Tenant will not be released from any
obligation under this Lease because of any interference with Tenant’s peaceful and quiet enjoyment
of the Premises that is caused by any other person, including other tenants.

          17.16 Right to Enter Premises. Landlord may enter the Premises at any reasonable time upon 24
hours prior notice to Tenant to inspect the Premises, to show the Premises to prospective lenders,
purchasers or (within the last nine months of the term) tenants, to perform Landlord’s duties under
this Lease, or to exercise Landlord’s rights under §8.2. In connection with any permitted entry to
perform Landlord’s duties or exercise Landlord’s rights
under §8.2, Landlord may erect and use
structures reasonably required by the nature of the work (including scaffolding, pipes and
conduits), and may open or penetrate the Base Building or any Leasehold Improvements. If any
Leasehold Improvements are damaged by Landlord as a result of Landlord exercising its rights under
this §17.16, then Landlord will repair or replace the damaged portion, only, to match the original
as nearly as is commercially reasonable. Any such entry by Landlord shall be done in order to
minimize any interference with Tenant’s use of the Premises.

          17.17 Exhibits. The exhibits include the attached exhibits. If any exhibit is inconsistent
with the terms of this Lease, the provisions of this Lease will govern.

          17.18 Brokers. Tenant warrants that it has had no dealings with any real estate broker or
agent in connection with the negotiation of this Lease and that it knows of no other real estate
brokers or agents who are or might be entitled to a commission in connection with this Lease.
Tenant agrees to indemnify and hold harmless Landlord from and against, and to reimburse Landlord
for and with respect to, any liability or claim, whether meritorious or not, arising in respect to
brokers and/or agents not so named and claiming to represent Tenant.

          17.19 WAIVER OF TEXAS DECEPTIVE TRADE PRACTICES ACT.

TENANT HEREBY WAIVES ALL ITS RIGHTS UNDER THE TEXAS DECEPTIVE TRADE PRACTICES -CONSUMER PROTECTION
ACT, SECTION 17.41 ET, SEQ, OF THIS TEXAS BUSINESS AND COMMERCE CODE (THE “DTPA”), A LAW THAT
GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS. AFTER CONSULTATION WITH AN ATTORNEY OF TENANT’S
OWN SELECTION, TENANT VOLUNTARILY CONSENTS TO THIS WAIVER.

          Accordingly, Tenant’s rights and remedies with respect to the transactions contemplated under
this lease, and with respect to all acts or practices of Landlord, past, present or future, in
connection with such transactions, shall be governed by legal principles other than the DTPA. The
foregoing waiver by Tenant shall also be binding on any permitted assign or successor of Tenant
under this Lease. The provisions of this Section shall survive any termination of this Lease.
Tenant represents to Landlord:

     (a) Tenant
is not in a significantly disparate bargaining position with respect
to this Lease
and the transaction evidenced hereby; and

     (b) Tenant is represented by legal counsel in connection with this Lease.

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          17.20 Parking Rights. Parking permits shall be provided to Tenant during the term of this
Lease in accordance with the terms and conditions set forth in Exhibit “D” attached hereto and
made a part hereof for all purposes.

          17.21 Right of First Refusal. Tenant shall have a right of first refusal to lease certain
space in the Building in accordance with the terms and conditions set forth in Exhibit “G”
attached hereto and made a part hereof for all purposes.

          17.22 Renewal Option. Tenant shall have a right to renew the Term of this Lease in
accordance with the terms and conditions set forth in Exhibit “H” attached hereto and made a part
hereof for all purposes.

          17.23 Expansion Option. Tenant shall have an option to lease certain space in the Building
in accordance with the terms and conditions set forth in Exhibit “I” attached hereto and made a
part hereof for all purposes.

          Having
Read And intending to be bound by the terms and provisions
thereof, Landlord and Tenant have executed this Lease as
follows.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD	 	 	 	TENANT	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	CULLEN ALLEN HOLDINGS, L.P.,	 	 	 	BLUESTEM PIPELINE, LLC,	 	 
	a Delaware limited partnership	 	 	 	a Delaware limited liability company	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	Texas REGP, LLC,	 	 	 	 	 	 	 	 
	 	 	a Delaware limited liability company,	 	 	 	 	 	 	 	 
	 	 	its general partner	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	/s/ Randy Hoover	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Name:	 	Randy Hoover	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Title:	 	President & Coo	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:
	 	/s/ Paul H. Layne	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Paul H. Layne,	 	 	 	 	 	 	 	 
	 	 	 	 	Executive Vice President,	 	 	 	 	 	 	 	 
	 	 	 	 	Head of Houston Region	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:
	 	/s/ Steven M. Lukingbeal	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Steven M. Lukingbeal,	 	 	 	 	 	 	 	 
	 	 	 	 	Vice President,	 	 	 	 	 	 	 	 
	 	 	 	 	Regional Counsel	 	 	 	 	 	 	 	 

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Center– Bluestem Pipeline, LLC

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[Floor Plan Diagram]

EXHIBIT A

 

 

EXHIBIT B — RULES & REGULATIONS

Three Allen Center * Houston, Texas

Suite #3650

          1. Landlord’s Entry. Landlord may enter the Premises at all reasonable hours, subject to
§17.16 of the Lease, to perform its obligations under this Lease. During the last 9 months of the
Term, Landlord may enter the Premises with reasonable prior notice to Tenant to show the Premises
to prospective tenants.

          2. Right to Exclude. Landlord may require that Tenant, its Affiliates and guests comply with
each reasonable security measure that Landlord may establish as a condition entry to the Premises,
Building or Project. These measures may include submitting to a search by persons or devices
employed by Landlord, presenting an identification card or pass issued by the government, Landlord,
or both, being announced to Tenant and accepted as a visitor by Tenant, and signing a register on
entry and exit. Any person who cannot comply with these requirements may be excluded from the
Project. If Landlord requires a Building pass issued by Landlord as a condition of entry to the
Premises, Building or Project, Landlord will furnish a Building pass to all persons reasonably
designated by Tenant in writing. Landlord may exclude or expel from the Project any person who,
in Landlord’s reasonable opinion, is intoxicated or under the
influence of alcohol or drugs.

          3. Obstructions. Tenant will not cause the Common Areas, or sidewalks or driveways outside the
Building to be obstructed. Landlord may, at Tenant’s expense, remove any such obstruction without
prior notice to Tenant.

          4. Trash. Tenant will place trash in proper receptacles in the Premises provided by Tenant at
Tenant’s cost, or in Building receptacles designated by Landlord. Tenant may not litter in the
Common Areas, or sidewalks or driveways outside the Building.

          5. Public Safety. Tenant will not throw anything out of doors, windows or skylights, down
passageways or over walls. Tenant will not use any fire exits or stairways in the Building except
in case of emergency.

          6.
Keys and Locks. Landlord may from time to time install and change locks on entrances to the
Project, Building, Common Areas or Premises, and will provide Tenant a number of keys to meet
Tenant’s reasonable requirements. Additional keys will be furnished by Landlord at Tenant’s cost.
At the end of the Term, Tenant will promptly return to Landlord all keys for the Building and
Premises issued by Landlord to Tenant. Unless Tenant obtains Landlord’s prior written consent,
Tenant will not add any locks or change existing locks on any door to the Premises, or in or about
the Premises. If with Landlord’s consent, Tenant installs any lock incompatible with the Building
master locking system, Tenant will: relieve Landlord of each Lease obligation that requires
access to each affected area; indemnify Landlord against any claim resulting from forced entry to
each affected area in an emergency; and, at the end of the Term, remove each incompatible lock and
replace it with a Building Standard lock at Tenant’s expense.

          7. Aesthetics. Unless Tenant obtains Landlord’s prior written consent (which may be withheld
in Landlord’s sole discretion), Tenant may not:

	 	(a)	 	Attach any awnings, signs, displays or projections to either the outside walls
or windows of the Building, or to any part of the Premises visible from outside the
Premises;
	 
	 	(b)	 	Hang any non-Building Standard curtains, blinds, shades or screens in any
window or door of the Premises;
	 
	 	(c)	 	Coat or sunscreen the interior or exterior of any
windows; or
	 
	 	(d)	 	Place any objects on windowsills.

          8. Directories and Signs. Tenant will have one (1) listing for each 1,000 RSF of the Premises
in the Building’s directory in the main lobby. The Premises will be identified by 1 Building
Standard sign consisting of Tenant’s name and suite number, located at the entrance to the
Premises. The initial lobby directory listing and Premises sign will be at Landlord’s cost and
expense, and any changes to the listing or sign will be made at Tenant’s cost and expense.

B - 1

 

     9. HVAC Operation. Tenant will not obstruct the HVAC convectors or diffusers, or adjust or
interfere with the HVAC system. Tenant will assist the HVAC system in maintaining comfort in the
Premises by drawing shades, blinds and other window coverings in the Premises as may be reasonably
required. Tenant may not use any method of heating or cooling the Premises other than that supplied
by Landlord.

     10. Plumbing. Tenant will use plumbing fixtures only for the purpose for which they are
constructed. Tenant will reimburse Landlord for any damage caused by
Tenant’s misuse of plumbing fixtures.

     11. Equipment Location. Landlord may specify the location of any of Tenant’s Business
machines,
mechanical equipment or other property that are unusually heavy, may damage the Building, or
may cause vibration, noise or annoyance to other tenants. Tenant will reimburse Landlord for any
professional engineering certification or
assistance reasonably required to determine the location of these items.

     12. Bicycles. Tenant may not bring bicycles or other vehicles into the Building or Premises.
Bicycles and other vehicles may only be parked in areas designated by Landlord.

     13.
Animals. Tenant may not bring any birds or animals, excepting
seeing-eye/assistance dogs,
into the Building or Premises.

     14. Carpet
Protection. To protect carpeting in the Premises, Tenant will, at its own expense,
install and maintain pads to protect the carpet under all furniture having castors other than
carpet castors.

     15. Elevators. Any use of the elevators for purposes other than normal passenger use (such as
moving to or from the Building or delivering freight), whether during or after Business Hours, must
be scheduled through the office
of the Property Manager. Tenant will reimburse Landlord for any extra costs incurred by
Landlord in connection with any such non-passenger use of the elevators.

     16. Moving and Deliveries. Tenant’s movers are subject to Landlord’s reasonable approval.
Moving of
Tenant’s Personal Property and deliveries of materials and supplies to the Premises must be
made during the times and through the entrances, elevators and corridors reasonably designated by
Landlord. Moving and deliveries may not be
made through any of the main entrances to the Building without Landlord’s prior permission.
Any hand truck or other conveyance used in the Common Areas must be equipped with rubber tires and
rubber side guards to prevent damage to
the Building and its property. Tenant will promptly reimburse Landlord for the cost of
repairing any damage to the Building or its property caused by any person making deliveries to the
Premises.

     17. Solicitation. Canvassing, soliciting and peddling in the Building are prohibited and
Tenant will cooperate in preventing the same.

     18. Food. Except for catering and deliveries ordered by Tenant to be served and consumed
within the Premises, only persons approved from time to time by Landlord may prepare, solicit
orders for, sell, serve or distribute
food in or around the Project. Except as may be specified in the Lease or on construction
drawings for the Premises approved by Landlord, and except for microwave cooking, Tenant will not
use the Premises for preparing or dispensing
food, or soliciting of orders for sale, serving or distribution of food.

     19. Work Orders. Only authorized representatives of Tenant may request services or work on
behalf of Tenant. Tenant may not request that Building employees perform any work outside of their
duties assigned by Landlord.

     20. Smoking. Neither Tenant nor its Affiliates shall smoke or permit smoking in any part of
the Premises, Building, Common Areas or Project in which Landlord, in Landlord’s sole discretion,
prohibits smoking or in which smoking is prohibited by law. Landlord may designate the entire
Building, Common Areas or Project a no-smoking area.

     21. Rules Applied. These Rules and Regulations apply equally to Tenant’s Affiliates and others
permitted by Tenant to access, use or occupy the Premises.

B-2

 

 

EXHIBIT C — LEGAL DESCRIPTION OF LAND

TRACT C — THREE ALLEN CENTER TRACT

BEING a tract or parcel of land containing 119,202 square feet out of the John Austin Survey,
Abstract No. 1, and the Obedience Smith Survey, Abstract No. 696, Harris County, Texas, and being
part of those certain tracts designated as “Tract 1, 2, 3 and Tract 4” per the deed recorded in
Volume 7769, Page 592, of Harris County Deed Records, and a part of certain street rights-of-way as
closed by City Council Motion
No. 70-1288, passed April 15, 1970 and filed in Volume 8104, Page 1 of
said Deed Records and being more particularly described by metes and bounds as follows with all
bearings and coordinates referenced to the Texas Coordinate System, South Central Zone:

BEGINNING
at the most northerly cut-back corner (X–3,150,861.30,
Y–717,454.95) at the
intersection of the south right-of-way line of West Dallas Avenue (80 feet wide) with the easterly
right-of-way line of Clay Avenue (100 feet wide);

THENCE, North 87 37’ 33” East, a distance of 156.34 feet along the south right-of-way line of said
West Dallas Avenue to the beginning of a tangent curve to the left;

THENCE,
135.53 feet northeasterly along the arc of said curve (Delta Angle = 54 45’ 36”, Radius =
141.81 feet, Chord = North 60 14’ 45” East, 130.43 feet) to a point at the end of said curve in
the southeasterly right-of-way line of Bagby Street (varying width), said point also being a point
on a non-tangent curve to the left;

THENCE, 126.55 feet easterly along the southeasterly right-of-way line of said Bagby Street and
the arc of said curve (Delta Angle = 10 54’ 11”, Radius =
665.00 feet, Chord = North 38 18’ 56”
East, 126.36 feet);

THENCE, South 32 51’ 57” West, 172.98 feet;

THENCE, South 57 08’ 03” East, 20.62 feet;

THENCE, North 77 51’ 57” East, 45.24 feet;

THENCE,
South 57 08’ 03” East, 121.23 feet;

THENCE, North 32 51’ 57” East, 27,13 feet;

THENCE, North 77 51’ 57” East, 7.07 feet;

THENCE,
South 57 08’ 03” East, 126.44 feet;

THENCE, South 32 51’ 57” West, 90.00 feet;

THENCE, North 57 08’ 03” West, 129.15 feet;

THENCE, South 32 51’ 57” West, 196.42 feet;

THENCE, South 57 08’ 03” East, 219.67 feet;

THENCE, South 87 36’ 57” West, 10.28 feet to the beginning of a tangent curve to the right;

THENCE,
143.43 feet westerly along the arc of said curve (Delta Angle = 18 58’ 09”, Radius =
433.22 feet, Chord = North 82 53’ 58” West, 142.77 feet);

C-1

 

 

THENCE,
South 16 35’ 07” West, 15.00 feet to an intersection with the northeasterly right-of-way
line of said Clay Avenue and a point on a non-tangent curve to the right;

THENCE, 415.17 feet northwesterly along the northeasterly right-of-way line of Clay Avenue and the
arc of said curve (Delta Angle = 53 04’ 18”, Radius = 448.22 feet, Chord = North 46 52’ 45” West,
400.49 feet) to a point of a compound curve to the right;

THENCE, 93.22 feet northwesterly along said northeasterly right-of-way line of Clay Avenue and the
arc of said curve (Delta Angle — 09 09’ 01”, Radius = 583.72 feet, Chord = North 15 46’ 05” West,
93.12 feet) to a point on a cut-back to the right;

THENCE,
North 38 27’ 43” East, 13.08 feet along said cut-back to the POINT OF BEGINNING,
containing a computed area of 119,202 square feet of land.

C-2

 

 

EXHIBIT D — PARKING

Three Allen Center * Houston, Texas

Suite #3650

     This EXHIBIT “D” (“Parking Exhibit”) describes and specifies Tenant’s non-exclusive
right to use parking Permits (collectively, “Permits”) located on such levels inside one or more of
the Building’s parking garages, all upon the terms and conditions set forth below.

     1. Garage/Rates.
The parking garage beneath the Building shall be referred to as the
“Building Garage.” The parking garage located at 300 Clay
Street shall be referred to as the
“Allen Center Parking Garage.” The parking garage located at 340 West Dallas Street shall be
referred to as the “Metropolitan Parking Garage.” The Building Garage, Allen Center Parking Garage
and Metropolitan Parking Garage may be hereinafter referred to individually and collectively as the
“Parking Garage.” The current monthly charge for each unreserved Permit in the Building Garage is
$290.99 per month (not including tax), in the Metropolitan Parking
Garage is $143.19 per month
(not including tax) and in the Allen Center Garage $161.66 per month
(not including, tax) and
$180.14 to $226.33 (not including tax) for each reserved Permit, depending on location.

     2. Grant and Rental Fee. Tenant shall rent on a “must-take” basis, from Commencement Date
through
the Expiration Date at such monthly rates (together with any applicable tax thereon) and
subject to such terms, conditions, and regulations as are, from time
to time, promulgated by
Landlord or the manager of the Parking Garage, as applicable, and charged or applicable to patrons
of the Parking Garage for Permits similarly situated therein, three (3) unreserved parking Permits
to be located in the Allen Center Parking Garage or the Metropolitan Parking Garage, as determined
by Landlord and, at Tenant’s option, up to two (2) additional unreserved parking Permits to be
located in the Allen Center Parking Garage or the Metropolitan Parking Garage, as determined by
Landlord. Tenant may lease additional parking permits at the then current rate on a month-to-month
basis, subject to availability.

     3. Use.
Tenant’s parking Permits may be used only by Tenant’s employees (each a “Patron”).
Patrons will be granted access to the parking facilities only upon the signing of Landlord’s
standard parking license with Landlord. Storage of Vehicles overnight is prohibited.

     4. Assignment. Except as permitted under Article 13, neither Tenant nor any Patron may assign
its rights to parking. Landlord may freely assign Landlord’s rights and obligations under this
exhibit to any successor Facilities.

     5. Disclaimer. Each Patron only has a license to park in the Parking Facilities at the
Patrons’ sole risk. No bailment is created. Landlord is not obligated to secure or insure Vehicles
or their contents, and is not responsible for any fire, theft, damage or loss to any Vehicle or its
contents. Attendants are present solely to assist Patrons and are not required to verify ownership
of Vehicles existing in the Parking Facilities. Landlord does not represent, guaranty or warrant
that any communication or security systems, devices or procedures in
the Parking Facilities will
be effective to prevent any loss, damage or injury to Tenant, Patrons or their guests. Landlord may
discontinue or modify any of these systems, devices or procedures at any time without any liability
to Tenant, Patrons, or their guests.

     6. Repairs, Improvements, Damage or Condemnation. If any Patron is unable to use the Parking
Facilities because of major repairs or improvements, damage or condemnation to the Parking
Facilities or Project, Landlord will not be in default of this Lease, but Tenant’s or the Patron’s
obligation to pay monthly parking fees will be abated for so long as the Parking Facilities cannot
reasonably be used by Tenant. Abatement of Tenant’s or the Patron’s monthly parking fees is
Tenant’s and the Patron’s sole remedy if Landlord fails to provide Tenant with use of the Parking
Facilities.

     7. Rules
and Regulations. This license is conditioned upon each Patrons
compliance with the
following Rules and Regulations of the Parking Facilities:

	 	(a)	 	Patrons may be required to display a sticker, tag or other identification;
	 
	 	(b)	 	Vehicles must be parked entirely within the stall lines painted on the floor,
and parking is prohibited in areas not striped for parking, aisles, areas where “No
Parking” signs are posted, in cross hatched

D-1

 

 

	 	 	 	areas and in such other areas as may be designated by Landlord including areas
designated as “Visitor Parking” or reserved spaces not licensed under this Lease;

	 	(c)	 	All directional signs and arrows must be observed;
	 
	 	(d)	 	The speed limit shall be 5 miles per hour, unless posted otherwise;
	 
	 	(e)	 	Unless attended parking is required by Landlord, each Patron
must park and lock their
own Vehicles;
	 
	 	(f)	 	Spaces designated for compact Vehicles shall not be used by full-sized Vehicles;
	 
	 	(g)	 	Parking Facilities’ managers and attendants are not authorized to make or allow
any exceptions to these Rules and Regulations; and
	 
	 	(h)	 	These Rules and Regulations may be reasonably modified by Landlord with notice to Tenant.

     8. Default.
Failure to timely pay the parking fees due under this license is both a default
of this license and a default of the Lease, and Landlord, in addition to the remedies
provided under the Lease, may terminate Tenant’s right to use the Parking Facilities.
Landlord may refuse to permit any Patron who violates the rules to park in the Parking
Facilities and may removal the Patron’s Vehicle at the Patron’s and Tenant’s expense,
without any liability or interference with Tenant’s right to quiet possession of the
Premises.

D-2

 

 

EXHIBIT E — NOTICE OF LEASE TERM

Three Allen Center * Houston, Texas

Suite #3650

     This NOTICE OF LEASE TERM (“NLT”) is given by Bluestem Pipeline, LLC, a Delaware limited
liability company (“Tenant”) to Cullen Allen Holdings, L.P., a Delaware limited
partnership (“Landlord”), with respect to that certain Lease dated                     , 2007 (“Lease”), under
which Tenant has leased from Landlord certain
premises known as Suite #3650 (“Premises”), located at Three Allen Center, 333 Clay Street,
Houston, Texas 77002 (“Building”).

     In consideration of the mutual covenants and agreements stated in the Lease, and intending
that this Agreement may be relied upon by Landlord and any prospective purchaser or present or
prospective Encumbrance holder, Tenant certifies and confirms the following:

	 	(a)	 	The Commencement Date is                      , 200                     .
	 
	 	(b)	 	The Expiration Date is                      , 20                     .

     Except for those terms expressly defined in this NLT, all initially capitalized terms will
have the meanings stated for such terms in the Lease.

Executed this                      day of                     
 , 200            .

Tenant

Bluestem Pipeline, LLC,

a Delaware limited liability company

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Print:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

Landlord

Cullen Allen Holdings, L.P.,

a Delaware limited partnership

	 	 	 	 	 
	By:

	 	Texas RE GR, LLC	 	 
	 

	 	a Delaware limited liability company	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Paul H. Layne
	 	 
	 

	 	Vice President,	 	 
	 

	 	Head of Houston Region	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Steven M. Lukingbeal,
	 	 
	 

	 	Vice President,	 	 
	 

	 	Regional Counsel	 	 

E-1

 

EXHIBIT F — WORK LETTER

Three Allen Center * Houston, Texas

Suite #3650

     Any capitalized term used but not defined herein shall have the meaning assigned to it in the
provisions designated in the Lease. Landlord and Tenant mutually agree as follows:

     This Work Letter (“Work Letter”) describes and specifies the rights and obligations of
Landlord and Tenant with respect to certain allowances granted to Tenant hereunder and rights and
responsibilities of Landlord and Tenant with respect to the design, construction and payment for
the completion of the Initial Improvements within the Premises.

     1. Definitions. Terms which are defined in the Lease shall have the same meaning in
this Work Letter. Additionally, as used in this Work Letter, the following terms (when delineated with initial capital
letters) shall have the respective meaning indicated for each as follows:

     (a) “Allowance” shall mean a sum not to exceed $25.00 per RSF within the
initial 3,433 RSF comprising the Premises (or up to a maximum of $385,825.00). The
Allowance shall be used for the construction of the Initial Improvements in the Premises
(above and below ceiling), construction as well as architectural documents, structural,
mechanical, and electrical modifications to the Premises, voice/data cabling, plumbing design,
accessibility plan review and inspection, asbestos survey per SB-509, graphics and security.
Notwithstanding the foregoing, Tenant may elect in prior written notice to Landlord to apply
up to $3.00 per RSF of the Premises of the unused Allowance, if any, towards subsequent
installment(s) of Base Rent next due or Tenant’s moving expenses.

     (b) “Basic Construction” of the Building shall mean the structure of the
Building as built on the date of
this Work Letter and all other improvements, fixtures and facilities constituting a part
of the Project.

     (c) “Landlord’s Architect” shall mean the architect designated by Landlord as
its architect, from time to
time, to perform the functions of Landlord’s Architect hereunder.

     (d) “Plans and Specifications” shall mean collectively, the plans,
specifications and other information
prepared or to be prepared by Tenant’s Architect and, where necessary, by Landlord’s
electrical, mechanical and structural engineers, all at Tenant’s expense, which shall detail the Work required by Tenant
in the Premises and which shall
be approved in writing by both Tenant and Landlord prior to the commencement of such
Work.

     (e) “Tenant’s Architect” shall mean the architect licensed to practice in the
State of Texas designated by
Tenant as its architect and approved by Landlord to perform the functions of Tenant’s
Architect hereunder.

     (f) “Work” shall mean all materials and labor to be added to the Basic
Construction of the Building in order to complete the installation of the Initial
Improvements within the Premises for Tenant in accordance with the Plans and Specifications,
including, without limitation any modification to Basic Construction of the Building, any
structural modifications to the Building, any electrical or plumbing work required to meet
Tenant’s electrical and plumbing requirements, and any special air conditioning work
required to be performed in the Premises.

     (g) “Cost of the Work” shall mean the cost of all materials and labor to be
added to the Basic Construction
of the Building in order to complete the installation of the Initial Improvements within
the Premises in accordance with
the Plans and Specifications.

     (h) “Landlord’s Costs” shall mean that portion of the Cost of the Work
up to, but not in excess of, the aggregate amount of the Allowance.

     (i) “Tenant’s Costs” shall mean that portion of the Cost of the Work
in excess of Landlord’s Costs.

F-1

 

     (j) “Change Costs” shall mean all costs or expenses attributable to any
change in the Plans and Specifications which, when added to other costs and expenses incurred in completing the Work, exceed
Landlord’s Costs, including, without limitation, (i) any cost caused by direction of Tenant
to omit any item of Work contained in the Plans and Specifications, (ii) any additional
architectural or engineering services, (iii) any changes to materials in the process of
fabrication, (iv) the cancellation or modification of supply or fabricating contracts, (v)
the removal or alteration of any Work or any plans completed or in process, or (vi) delays
affecting the schedule of the Work. A “Change Order” is the document signed by both Landlord
and Tenant which addresses Change Costs.

     (k) “Working Days” shall mean all days of the week other than
Saturday, Sunday, and legal holidays.

     (l) “Initial Improvements” shall mean all Work added to the Building before
or near the Commencement
Date of the Lease.

     2. Procedure and Schedules for the Completion of Plans and Specifications. The Plans
and Specifications shall be
completed in accordance with the following procedure and time schedules:

     (a) Design Drawings. Within ten (10) Working Days from execution of the Lease,
Tenant shall submit to Landlord four (4) sets of prints of design drawings, specifying the
intended design, character and finishing of the Initial Improvements within the Premises.
Such package shall include separate drawings for signs in accordance with Landlord’s sign
criteria. The design drawings shall set forth the requirements of Tenant with respect to the
installation of the Initial Improvements within the Premises, and such drawings shall
include, without limiting their scope, a Tenant approved space plan, architectural design of
the space, including office front, plans, elevations, sections, and renderings indicating
materials, color selections and finishes.

     (i) After receipt of design drawings, Landlord shall return to Tenant one set of prints of design
drawings with Landlord’s suggested modifications and/or approval.

     (ii) If design drawings are returned to Tenant with comments, but not bearing
approval of Landlord, the design drawings shall be immediately revised by Tenant and
resubmitted to Landlord for approval within ten (10) Working Days of their receipt
by Tenant. Unless such action is taken, Tenant will be deemed to have accepted and
approved all of Landlord’s comments on the design drawings.

     (b) Completion of Plans and Specifications. All Plans and Specifications shall
be prepared in strict compliance with applicable Building standards and requirements as set
forth in the Lease, this Work Letter and otherwise, and shall also adhere to the design
drawings approved by Landlord. In order to assure the compatibility of Tenant’s electrical
and mechanical systems and the compatibility of Tenant’s structural requirements with the
existing Building and in order to expedite the preparation of Tenant’s electrical, mechanical
and structural drawings Tenant or Tenant’s Architect shall deliver to Landlord’s Architect,
not later than ten (10) Working Days from the date of Landlord’s approval of design drawings,
a detailed plan setting forth any and all electrical, mechanical and structural requirements,
and Landlord’s Architect shall retain, at Tenant’s expense, Landlord’s electrical,
mechanical and structural engineers to prepare all necessary electrical, mechanical and
structural construction drawings which shall be included as a part of the Plans and
Specifications. All construction documents and calculations prepared by Tenant’s Architect shall
be submitted by Tenant, in the form of four (4) sets of blueline prints, to Landlord for
approval within ten (10) Working Days after the date of receipt by Tenant of Landlord’s
approval of design drawings. If the Plans and Specifications are returned to Tenant with
comments, but not bearing approval of Landlord, the Plans and Specifications shall be
immediately revised by Tenant and resubmitted to Landlord for approval within ten (10)
Working Days of their receipt by Tenant.

     (i) The fees for Tenant’s Architect and any consultants or engineers retained
by or on behalf of Tenant or Tenant’s Architect (including, but not limited to, the
electrical, mechanical and structural engineers required to be retained under this
paragraph) shall be paid by Tenant. Tenant shall also pay for any preliminary
drawings by Landlord’s Architect for review of the design drawings, the Plans and
Specifications, and any revisions to such documents, and the fees and expenses of
Landlord’s Architect for inspection of the Work, as required by Landlord.

     (ii) Tenant shall have the sole responsibility for compliance of the Plans and
Specifications with all applicable statutes, codes, ordinances and other
regulations, and the approval of the Plans and Specifications

F-2

 

or calculations included therein by Landlord shall not constitute an indication,
representation or certification by Landlord that such Plans and Specifications or
calculations are in compliance with said statutes, codes, ordinances and other
regulations. In instances where several sets of requirements must be met, the
requirements of Landlord’s insurance underwriter or the strictest applicable
requirements shall apply where not prohibited by applicable codes.

     (iii) Upon completion of the Initial Improvements, if so required by Landlord,
Tenant shall deliver to Landlord an “as-built” set of Plans and Specifications for
the Premises, together with such other information required by Landlord to place the
information from the “as-built” Plans and Specifications on to Landlord’s data
base; the cost of providing the “as-built” Plans and Specifications and other
information, together with Landlord’s cost to place the information on to Landlord’s
data base, shall be borne solely by Tenant.

     3. Pricing. On or before the date which is ten (10) Working Days after finalization of
the Plans and Specifications, as evidenced by Landlord’s written approval thereof, Landlord shall
notify Tenant in writing of the Cost of the Work. The contract for the Work shall obligate the
contractor to purchase from Landlord all materials and supplies which are held in “stock” by
Landlord and which are required for the Work by the Plans and Specifications, provided Landlord’s
pricing is comparable to the general market. Within ten (10) Working Days after its receipt of
Landlord’s written notice identifying the Cost of the Work, Tenant shall either approve
such Cost of the Work in writing or cause the Plans and Specifications to be revised and
resubmitted to Landlord for Approval. On or before the date which is ten (10) Working Days from
Landlord’s receipt of such revised Plans and Specifications, Landlord shall either approve the
revised Plans and Specifications and give to Tenant a revised Cost of the Work or give to Tenant
Landlord’s comments on such revised Plans and Specifications. If for any reason Landlord and
Tenant have not agreed in writing upon final Plans and Specifications and/or the Tenant has not
approved in writing the Cost of the Work on or before the date which is sixty (60) Working Days
from the date hereof, then Landlord shall have the right to terminate the Lease and this Work
Letter, without further obligation.

     4. Payments. Tenant may use a portion of the Allowance up to $2.00 per square foot of
the Rentable Area of the Premises for the payment of fees and expenses payable by Tenant under the
terms of Paragraph 2(b)(i) of this Work Letter. Tenant shall pay the aggregate amount of Tenant’s
Costs to Landlord upon demand. Landlord shall determine the percentage of the Cost of the Work
which is allocable to Landlord and the percentage of the Cost of the Work which is allocable to
Tenant. Landlord shall also revise its determination of such percentages based on any changes in
the Cost of the Work due to change orders affecting the Plans and Specifications. Within ten (10)
days after Tenant’s receipt of an invoice from Landlord which identifies that portion of the Cost
of the Work to be incurred, respectively, by Landlord and Tenant, Tenant shall pay to Landlord the
percentage of the Cost of the Work allocable to Tenant, as Tenant’s Costs, as determined by
Landlord from time to time. Landlord’s obligation for payment with respect to the Work shall not
exceed the aggregate amount of Landlord’s Costs; and after Landlord has paid Landlord’s Costs,
Tenant shall thereafter pay all Cost of the Work as and when invoiced to Tenant by Landlord, including,
without limitation, any Change Costs. Landlord shall have no obligation to commence or
continue the Work until Tenant pays the Tenant’s Costs. The amounts payable to Landlord hereunder
shall constitute Rent due pursuant to the Lease, and failure to make any such payment when due
shall constitute a default under the Lease, entitling Landlord to exercise any or all of its
remedies hereunder, as well as all remedies otherwise available to Landlord.

     5. Performance of Work and Delays. Landlord shall cause the contractor to perform the
Work in substantial accordance with the Plans and Specifications. In that regard, Landlord shall
perform as construction manager for the construction of the Initial Improvements in accordance with
the Plans and Specifications; and the Cost of the Work shall include a management fee payable to
Landlord in the amount of five percent (5%) of the cost of the materials and labor constituting the
Work, which shall be deducted from the Allowance. If a delay shall occur in the completion of the
Work by Landlord as the probable result of (i) any failure to furnish when due Tenant’s design
drawings, Tenant’s electrical, mechanical and/or structural requirements, Tenant’s Plans and
Specifications or any revision to any such documents, (ii) any change by Tenant in any of the Plans
and Specifications, (iii) any state of facts which gives rise to a change referred to in the
definition of Change Costs or any changes resulting in a Change Cost, (iv) the fact that materials
to be incorporated into the Work which are non-Building grade require a lead time (not due to
Landlord default or error) to obtain or construction time to perform, in excess of that required
for Work which is Building grade, as determined by Landlord, or (v) any other act or omission of
Tenant, its agents or employees, including any violation of the provisions of the Lease or any
delay in giving authorizations or approvals pursuant to this Work Letter, then any such delay shall
not justify any extension of the Commencement Date of the Lease.

     6. Change Orders. All changes and modifications in the Work from that contemplated
in the Plans and Specifications, whether or not such change or modification gives rise to a Change Cost, must be evidenced by
a written Change Order exe-

F-3

 

cuted by
both Landlord and Tenant. In that regard, Tenant shall submit to Landlord such information
as Landlord shall require with respect to any Change Order requested by Tenant. After receipt of
requested Change Order, together with such information as Landlord shall require with respect
thereto, Landlord shall return to Tenant either the executed Change Order, which will evidence
Landlord’s approval thereof, or the Plans and Specifications with respect thereto with Landlord’s
suggested modification.

     7. Punchlist. Within thirty (30) days after the Commencement Date, Tenant shall give
Landlord written notice
specifying any details of construction, decoration or mechanical adjustment which remain to be
performed by Landlord with respect to any Work; and except for the details contained in such written notice from Tenant,
all obligations of Landlord in regard to
the Work shall be deemed to have been satisfied. Landlord shall have the right to enter the
Premises to complete any such unfinished details, and entry by Landlord, its agents, servants, employees or contractors for such
purpose shall not relieve Tenant of any
of its obligations under the Lease or impose any liability on Landlord or its agents,
servants, employees or contractors.

     8. Whole
Agreement; No Oral Modification. This Work Letter embodies all representations,
warranties and
agreements of Landlord and Tenant with respect to the matter
described herein, and this Work Letter may not be altered or modified except by an agreement in writing signed by the parties.

     9. Paragraph Headings. The paragraph headings contained in this Work Letter arc for convenient
reference only
and shall not in any way affect the meaning or interpretation of such paragraphs.

     10. Notices. All notices required or contemplated hereunder shall be given to the
parties in the manner specified for
giving notices under the Lease.

     11. Binding
Effect. This Work Letter shall be construed under the laws of the State of
Texas and shall be binding
upon and shall inure to the benefit of the parties hereto and their respective permitted
successors and assigns.

     12. Conflict. In the event of conflict between this Work Letter and any other exhibits
or addenda to this Lease, this
Work Letter shall prevail.

F-4

 

EXHIBIT
G – RIGHT OF FIRST REFUSAL

Three
Allen Center * Houston, Texas

     Any capitalized term used but not defined herein shall have the meaning assigned to it in the
provisions designated in the Lease. Landlord and Tenant mutually agree as follows:

     (a) Subject to and upon the terms, provisions and conditions set forth in this Exhibit G,
Tenant shall have,
and is hereby granted, a right of first refusal to tease (the
“Right of First Refusal”) the
approximate 1,836 RSF in Suite
3636, as shown on Exhibit G-1 attached hereto (the “ROFR Premises”), during the Term of the
Lease.

     (b) Landlord will have the option to revoke and nullify any purported exercise of a Right of
First Refusal
by Tenant if at the time of exercise (i) Tenant is in default under the Lease, subject to all
applicable notice and cure
provisions of the Lease, (ii) Tenant is paying Rent on the entire Premises (unless Landlord,
in its sole discretion, elects to
waive any such condition(s)), (iii) Tenant has subleased space in the Building from another
tenant of the Building, or (iv)
less than two (2) years remains prior to the Expiration Dale (unless Landlord, in its sole
discretion, elects to waive any
such condition(s)).

     (c) Should a third party make an offer to lease the ROFR Premises which Landlord is willing to
accept,
Landlord shall promptly deliver to Tenant written notice indicating the relevant terms and
conditions of such third party
offer (the “Lease Proposal”). If the ROFR Premises is the subject of lease negotiations which
include other portions of
the Building, the foregoing Right of First Refusal shall, at Landlord’s option, apply to the
entire space which is subject to
such negotiations, and, at Landlord’s option, Tenant shall be obligated to either accept or
refuse the opportunity to lease
such entire space on the terms provided in the Lease Proposal, except that the term with
respect to the ROFR Premises
shall be co-terminous with the Term of the Lease and all economic terms shall be adjusted
accordingly to account for the
difference in the length of the Term with the length of the third party offer. Tenant shall
have a period of five (5)
business days after receipt of a Lease Proposal to irrevocably and unconditionally exercise
its Right of First Refusal to
lease the entire ROFR Premises (and such additional space, if applicable). Such exercise must
be in writing.

     (d) In the event that Tenant exercises this Right of First Refusal, Tenant will execute and
return to
Landlord an amendment to the Lease adding the ROFR Premises or such other documentation as
Landlord shall
reasonably require in order to confirm the leasing of such ROFR Premises (but an otherwise
valid exercise of the Right
of First Refusal shall be fully effective whether or not such confirmatory documentation is
executed) within twenty (20)
days after Tenant’s receipt of such documentation.

     (e) No assignee of the Lease or subtenant of any portion of the Premises shall have any rights
hereunder
whatsoever.

     (f) Tenant acknowledges and agrees that this Right of First Refusal is subject and subordinate
to (a) any
pre-existing preferential right, refusal right, expansion right or related right of any other
tenant in the Building, (b) any
and all preferential rights, expansion options, refusal rights pertaining to the ROFR
Premises, and (c) the right to renew
the lease of any existing tenant of the ROFR Premises, whether by formal renewal option or
otherwise.

     (g) Except as otherwise provided in the Lease, Landlord shall deliver, and Tenant shall
accept, the ROFR
Premises broom-clean and vacuumed but otherwise in an “AS
IS” and “WITH ALL FAULTS”
condition. The term of
the Lease with respect to the ROFR Premises shall commence upon such space being delivered to
Tenant and shall
expire on the Expiration Date. Rent will accrue and be due and payable with respect to the
ROFR Premises on the date
(the “ROFR Premises Commencement Date”) that is the earlier to occur of (i) the date set forth
in the Lease Proposal
as the ROFR Premises Commencement Date, (ii) ninety (90) days following the date Landlord
delivers possession of the
ROFR Premises to Tenant or (iii) the date Tenant occupies the ROFR Premises for the purpose of
conducting business
therefrom.

     (h) Upon request of Landlord at any time after the ROFR Premises Commencement Date, Tenant
shall execute and deliver to Landlord a declaration (in a form provided by Landlord) specifying
(i) the ROFR Premises Commencement Date, (ii) the Base Rent schedule for the ROFR Premises, (iii)
the RSF of the ROFR Premises, and (iv) Tenant’s Share of Taxes and Expenses with respect to the
ROFR Premises.

G-1

 

[Floor Plan Diagram]

EXHIBIT  G - 1

 

 

EXHIBIT H — RENEWAL OPTION

Three
Allen Center * Houston, Texas

Suite #3650

     Any capitalized term used but not defined herein shall have the meaning assigned to it in the
provisions designated in the Lease. Landlord and Tenant mutually agree as follows:

          (a) Provided that (i) the Lease is in full force and effect as of the date of the Renewal
Notice (as
such term is hereinafter defined), and (ii) Tenant shall not be in default beyond any
applicable notice and cure period
under the Lease and (iii) Tenant is paying Rent on the entire Premises, Tenant shall have one
(1) option to extend the
Term of the Lease for an additional term of five (5) years (the
“Renewal Term”) commencing on
the day after the Expiration Date. Tenant’s option with respect
to the Renewal Term shall be exercisable by written
notice (the “Renewal Notice”) to Landlord given not more than twelve (12) months nor less than nine (9) months prior
to the Expiration Date.
The Renewal Term shall constitute an extension of the Term of the Lease and shall be upon all
of the same terms and
conditions as the initial Term, except that (i) there shall be no further option to
renew the Term of the Lease, (ii) Landlord shall not be required to furnish any materials or perform any work to prepare the
Premises for Tenant’s occupancy
and Landlord shall not be required to make any Allowance or reimburse Tenant for any
Improvements made or to be
made by Tenant, or grant Tenant any rent concession, and (iii) the Base Rent for the Renewal
Term shall be as determined pursuant to the provisions of (b), (c) and (d), below, and shall commence on the first
day of the Renewal Term.

          (b) The annual Base Rent for the Premises for the Renewal Term shall be the Fair Market Rent.
“Fair Market Rent” means the fixed annual rent far comparable space in Class “A”
buildings in the downtown Houston,
Texas area that a willing lessee would pay and a willing lessor would accept for the Premises
during the Renewal Term,
taking into account all then relevant factors, including, but not limited to, lease
takeovers/assumptions; relocation/moving allowances; space planning/interior architecture and engineering allowances;
refurbishment and repainting
allowances; club memberships; other concessions or inducements; extent of services provided or
to be provided; distinction between “gross” and “net” lease; base year or dollar amount for escalation purposes (both
operating and advalorem/real estate taxes); any other adjustments (including by way of indexes) to base
rental; credit standing and financial stature of the tenant; term or length of lease; the time the particular rental rate under
consideration was agreed upon
and became or is to become effective; the payment of a leasing commission and/or fees/bonuses
in lien thereof, whether
to Landlord, any person or entity affiliated with Landlord, or otherwise and any other
relevant term or condition.

          (c) If
Tenant timely exercises the renewal option pursuant to this
EXHIBIT “H” Landlord shall
notify Tenant (the “Rent Notice”) at least 90 days before the last day of the current Term of
Landlord’s determination of
the Fair Market Rent (“Landlord’s
Determination”). Tenant shall notify Landlord
(“Tenant’s Notice”), within 30 days
after Tenant’s receipt of the Rent Notice, whether Tenant accepts or disputes Landlord’s
Determination, and if Tenant
disputes Landlord’s Determination, Tenant’s Notice shall set forth Tenant’s determination
(“Tenant’s Determination”)
of the Fair Market Rent, if Tenant fails to give Tenant’s Notice within such 30 day period,
then (i) Tenant’s election to
renew the Term of the Lease as provided in this Renewal Option shall be deemed void and as if
Tenant had never exercised its right to renew this Lease and (ii) this Renewal Option shall automatically be
deleted from the Lease in its entirety and Tenant shall have no right to renew the Term of the Lease.

          (d) If
Tenant timely disputes Landlord’s Determination, and Landlord and Tenant fail to agree as
to the Fair Market Rent within 30 days after the giving of Tenant’s Notice, then the Fair
Market Rent shall be determined
as follows: A senior officer of a recognized Houston, Texas leasing brokerage firm (the
“Baseball Arbitrator”) shall be
selected and paid for jointly by Landlord and Tenant. If Landlord and Tenant are unable to
agree upon the Baseball Arbitrator, then the same shall be designated by the American Arbitration Association (the
“AAA”). The Baseball Arbitrator selected by the parties or designated by the AAA shall have at least ten years experience
in (i) the leasing of first class
office space in downtown Houston, or (ii) the appraisal of Class “A” office buildings in
downtown Houston. Landlord
and Tenant shall each submit to the Baseball Arbitrator and to the other Landlord’s
Determination and Tenant’s Determination of the Fair Market Rent of the Premises. The Baseball Arbitrator shall determine
which of the two rent determinations more closely represents the Fair Market Rent of the Premises. The Baseball
Arbitrator may not select any
other rental value for the Premises other than one submitted by Landlord or Tenant. The
determination of the party so

H-1

 

selected or designated shall be binding upon Landlord and Tenant and shall serve as the basis for
the determination of the Base Rent payable for the Renewal Term, subject to further adjustment as
provided in the Lease. After a determination has been made of the Fair Market Rent, the parties
shall execute and deliver an instrument setting forth the Fair Market Rent, but the failure to so
execute and deliver any such instrument shall not affect the determination of Fair Market Rent.

          (e) If Tenant disputes Landlord’s Determination and if the final determination of Fair Market
Rent shall not be made on or before the first day of the Renewal Term then, pending such
final determination, Tenant
shall pay, as Base Rent for the Renewal Term, an amount equal to Landlord’s Determination. If,
based upon the final
determination of the Fair Market Rent, the Base Rent payments made by Tenant for such portion
of the Renewal Term
were (i) less than the Fair Market Rent payable for the Renewal Term, Tenant shall pay to
Landlord the amount of such
deficiency within 10 days after demand therefor or (ii) greater than the Fair Market Rent
payable for the Renewal Term,
Landlord shall credit the amount of such excess against installments of Base Rent and/or
Additional Rent payable by
Tenant next coming due.

          (f) It is an express condition of the option granted to Tenant pursuant to the terms of this
EXHIBIT“H” that time is of the essence will respect to Tenant’s exercise of such
option by the date specified in this
EXHIBIT “H”.

H-2

 

EXHIBIT I — EXPANSION OPTION

Three
Allen Center * Houston, Texas

     Any capitalized term used but not defined herein shall have the meaning assigned to it in the
provisions designated in the Lease. Landlord and Tenant mutually agree as follows:

A. Subject
to the remaining provisions of this EXHIBIT“I” and provided the Tenant is not then in
default under the Lease and occupies 100% of the Premises, Tenant, but no assignee or sublessee of
Tenant, shall have the right (the “Expansion Right”) to request to expand the Premises in
contiguous Available Space (the “Expansion Space”).
The agreed maximum rentable area of the
Expansion Space shall be 3,500 RSF in addition to the size of the
Premises, but in no event shall
the Premises and the Expansion Space exceed 7,000 RSF (plus or minus fifteen percent (15%). As used
herein, the total of 7,000 contiguous RSF (plus or minus fifteen percent (15%)), which includes the
combined rentable area of the Premises and the rentable area of the Expansion Space, is referred to
herein as the “Total Space Required by Tenant”. Tenant’s exercise of the Right of First Refusal set
forth in EXHIBIT “G” to this Lease shall not affect the Total Space Required by Tenant. Landlord
and Tenant understand and agree that Landlord may not be able to provide Tenant with Expansion
Space that is contiguous to the Premises on the Thirty-sixth (36th) Floor of the Building, in which
case Landlord may provide Tenant with the Total Space Required by Tenant on another Floor of the
Building or in One Allen Center located at 500 Dallas, Houston, Texas; Two Allen Center located at
1200 Smith Street, Houston Texas, Four Allen Center located at 1400 Smith Street, Houston, Texas,
or in Continental Center 1 located at 1600 Smith Street, Houston, Texas, so long as such buildings
are owned by Landlord or an affiliate of Landlord (collectively, the “Available Buildings”). As
used herein, the term “Available Space”shall mean space, determined as of the date of Landlord’s
receipt of the Expansion Request, defined below, in the Available Buildings which Landlord is
otherwise willing to lease to third parties who arc of similar size and have similar credit as
Tenant, as determined in Landlord’s sole and absolute discretion; provided, however, in no event
(subject to Landlord’s waiver of the following, in Landlord’s sole and absolute discretion) shall
the Available Space include any space which: (1) is leased or otherwise occupied or otherwise used
by another tenant; (2) a prospective tenant has expressed an ongoing interest to lease, as
determined by Landlord; (3) is in a location that would make any
remaining space on such floor difficult or unreasonable to lease, as determined by Landlord; (4) is in a location which if leased
to Tenant would make other available space in the Building non-contiguous, which would otherwise be
contiguous available space; or (5) is subject to any preferential right, expansion option, refusal
rights or other right or option of another tenant. Furthermore, the Expansion Space to be leased to
Tenant shall be laid out in such a manner reasonably acceptable to Landlord such that the demising
wall adjacent to any third party premises is acceptable to Landlord.

B. Tenant acknowledges and agrees that the Expansion Right is subject and subordinate to any and
all preferential rights, refusal rights, expansion rights or related rights of any other tenant in
the Building, whether such arc in existence now or such arc granted to such other tenant(s) in the
future. Tenant also acknowledges and agrees that the Expansion Right is subject to any future
leasing (including, but not limited to, any and all preferential rights, refusal rights, expansion
rights, or related rights granted to such future tenants) by Landlord of any Available Space in any
Available Building and Landlord’s right to renew any tenant, whether pursuant to a renewal option
or otherwise.

C. At any time after the twenty-forth (24th) full calendar month following the Commencement Date,
Tenant may elect to exercise the Expansion Right by giving Landlord written notice of Tenant’s
election (the “Expansion Request”). Within sixty (60) days after Landlord’s receipt of the
Expansion Request, Landlord shall either (i) identify the Expansion Space (or the Total Space
Required by Tenant in an Available Building, as applicable) in writing to Tenant (the “Designation
Notice”) or (ii) provide Tenant with written notice that Landlord is unable or unwilling to provide
Tenant with Expansion Space. Failure to provide Tenant with a Designation Notice within such sixty
(60) day period shall be deemed to be Landlord’s election of item (ii), above. In the event that
Tenant provides Landlord with an Expansion Request and Landlord provides Tenant with a Designation
Notice, Tenant shall lease the Expansion Space (or the Total Space Required by Tenant in an
Available Building, as applicable), as provided herein. In the event that Landlord fails

I-1

 

to provide Tenant a Designation Notice or otherwise elects item (ii) above, then Tenant shall have
the option to terminate the Lease pursuant to Section H of this EXHIBIT “I”, below.

D. The Expansion Space (or the Total Space Required by Tenant in an Available Building, as
applicable) shall be delivered to Tenant within ninety (90) days after the date of the Designation
Notice in its AS IS” condition and “WITH ALL FAULTS”. The commencement date with respect to
the Expansion Space (or the Total Space Required by Tenant in an Available Building, as applicable)
(the “Expansion Commencement Date”) shall be determined in the same manner as the Commencement Date
of the Lease pursuant to Section 3.1(a) of the Lease and shall expire on the Expiration Date.
Landlord shall not be required to provide Tenant with any finish allowance to construct
improvements in the Expansion Space (or the Total Space Required by Tenant in an Available
Building, as applicable) or pay any costs associated to move or otherwise relocate Tenant into the
Expansion Space (or into the Total Space Required by Tenant in an Available Building, as
applicable).

E. In the event that Landlord provides Total Space Required by Tenant in an area that does not
include the initial Premises, then on the Expansion Commencement Date, Tenant shall have
surrendered the initial Premises in the manner set forth in Section 3.3 of the Lease.

F. Commencing upon the Expansion Commencement Date, Tenant shall pay Base Rent, Additional Rent and
all other amounts required by the Lease for the Expansion Space. The Base Rent for the Expansion
Space shall be equal to the Prevailing Market Rate; provided, however, in the event that the Total
Space Required by Tenant does not include the Premises, Base Rent shall be equal to the sum of: (1)
the Base Rent on a per square foot set forth in Section 1.1(i) of the Lease for the first 3,433
RSF; plus (2) the Base Rent at the Prevailing Market Rate, defined below, for all space in excess
of that set forth in Section F(1); plus (3) the value of any tenant improvement allowance (granted
in Landlord’s sole and absolute discretion), amortized at the rate of ten percent (10%) per annum
over the remaining term of the Lease; plus (4) the value of any term which would commonly be
included in determining Base Rent (to the extent granted to Tenant).

G. The “Prevailing Market Rate” is defined as the net effective rent being charged for comparable
space in comparable Class “A” buildings in the downtown Houston, Texas area on comparable terms (to
tenants of comparable size, credit and status), including parking charges in rental, if any; lease
takeovers/assumptions; relocation/moving allowances; space planning/interior architecture and
engineering allowances; refurbishment and repainting allowances; club memberships; other
concessions or inducements; extent of services provided or to be provided; distinction between
“gross” and “net” lease; base year or dollar amount for escalation purposes (both operating and ad
valorem/real estate taxes); any other adjustments (including by way of indexes) to base rental;
credit standing and financial stature of the tenant; term or length of lease; the time the
particular rental rate under consideration was agreed upon and became or is to become effective;
the payment of a leasing commission and/or fees/bonuses in lien thereof, whether to Landlord, any
person or entity affiliated with Landlord, or otherwise; and any other relevant term or condition
in making such Prevailing Market Rate determination.

If Tenant timely disputes the Prevailing Market Rate, and Landlord and Tenant fail to agree as to
the Prevailing Market Rate within 30 days, then the Prevailing Market Rate shall be determined as
follows: A senior officer of a recognized Houston, Texas leasing
brokerage firm (the “Baseball Arbitrator”) shall be
selected and paid for jointly by Landlord and Tenant. If Landlord and Tenant
are unable to agree upon the Baseball Arbitrator, then the same shall be designated by the
American Arbitration Association (the “AAA”). The Baseball Arbitrator selected by the parties or
designated by the AAA shall have at least ten years experience in (i) the leasing of first class
office space in downtown Houston, or (ii) the appraisal of Class “A” office buildings in downtown
Houston. Landlord and Tenant shall each submit to the Baseball Arbitrator and to the other
Landlord’s Determination and Tenant’s Determination, of the Prevailing Market Rate of the
Expansion Space. The Baseball Arbitrator shall determine which of the two rent determinations more
closely represents the Prevailing Market Rate of Expansion Space. The Baseball Arbitrator may not
select any other rental value for the Expansion Space other than one submitted by Landlord or
Tenant The determination of the party so selected or designated

I-2

 

shall be binding upon Landlord and Tenant and shall serve as the basis for the
determination of the Prevailing Market Rate.

H. Termination Option.

     1. In the event that Tenant properly exercises its Expansion Right and Landlord fails to
provide Tenant a Designation Notice or is unable or unwilling to provide Tenant with Expansion
Space (or the Total Space Required by Tenant, as applicable), and subject to and upon the terms,
provisions and conditions set forth in this EXHIBIT “I”, Tenant shall then have the right (the
“Termination Right”) to terminate the Lease as to the entire Premises by providing written notice
(the “Termination Notice”) to Landlord of Tenant’s election to exercise this Termination Right
within thirty (30) days following the expiration of the time period provided pursuant to Paragraph
C above for Landlord to provide a Designation Notice. Such termination shall be effective ninety
(90) days after Landlord’s receipt of the Termination Notice (the “Termination Date”). In the event
Tenant exercises its Termination Right, Tenant shall pay to Landlord the Termination Fee on or
prior to the Termination Date. Upon the Termination Date and the payment of the Termination Fee,
Tenant shall have no further liability under the Lease (excepting only such liabilities which have
accrued through the Termination Date). If Tenant gives timely notice of exercise of the Termination
Right but fails to timely pay the Termination Fee to Landlord when due, Landlord may at its option
either (i) deem the Termination Right and the Expansion Right waived and of no further force and
effect or (ii) enforce the termination of this Lease, effective as of the Termination Date, and
Tenant’s obligation to pay the Termination Fee and any other amount due. The provisions of this
paragraph shall survive the expiration or termination of this Lease.

     2. Landlord will have the option to revoke and nullify any purported exercise of the
Termination Right by Tenant if at the time of exercise or thereafter Tenant is in default, beyond
any applicable cure period, under the Lease.

     3. The “Termination Fee” shall be an amount equal to:

	 	A.	 	The unamortized portion of the Lease Costs (as hereinafter
defined) as of the Termination Date; plus
	 
	 	B.	 	Six (6) months gross rent (Base Rent plus Addition Rent), if
Landlord receives the Termination Notice after the twenty fourth full calendar
month following the Commencement Date, but prior to the first day of the
thirty-seventh (37th) full calendar month following the Commencement Date; or
	 
	 	C.	 	Three (3) months gross rent (Base Rent plus Addition Rent), if
Landlord receives the Termination Notice after the thirty-sixth (36th) full
calendar month following the Commencement Date.

     4. As used herein, the term “Lease Costs” shall mean all unamortized actual construction
costs, architectural and engineering fees, leasing commissions (both internal and external),
cabling design and installation costs, excused Rent and other costs, if any, incurred by Landlord
in connection with Tenant’s lease of the Premises, specifically including, but not limited to, the
Allowance granted to Tenant. For purposes of calculating Lease Costs, each component or item of
Lease Costs will be deemed to be amortized in equal monthly installments over the remaining Lease
term(s) applicable to the space(s) in question at the rate of ten percent (10%) per annum beginning
on the date that such component or item of Lease Costs was actually paid by Landlord.

I-3

 

Exhibit 99.1

Investors Contacts

	 	 	 
	NetManage, Inc.

	 	The Blueshirt Group:
	Jeanne Buffa

	 	Alex Wellins
	Email: Jeanne.buffa@NetManage.com

	 	Email: alex@blueshirtgroup.com
	Tel: (408 ) 342-7655

	 	Brinlea Johnson
	 

	 	Email: brinlea@blueshirtgroup.com
	 

	 	Tel: (415) 217-7722

FOR IMMEDIATE RELEASE

MICRO FOCUS INTERNATIONAL, PLC. TO ACQUIRE NETMANAGE, INC.

Cupertino, CA—(April 30, 2008)— MicroFocus International plc (LSE:MCROL) (“MicroFocus”). the
leading provider of enterprise application management and
modernization solutions and NetManage. Inc. (NASDAQ: NETM) (“NetManage”), a software company that provides the fastest way to transform
legacy applications into new Web-based business solutions jointly today announced that their
respective Boards of Directors have unanimously approved, and both companies have signed, a
definitive agreement for MicroFocus to acquire NetManage in a merger transaction

Pursuant to the terms of the Merger Agreement, MicroFocus will acquire each outstanding share of
common stock of NetManage for $7,20 per share representing a premium of approximately 73% over
the closing share price of NetManage’s common stock on April 30, 2008 of $4.15. NetManage
currently has approximately 9.6 million shares of common stock and 1.6 million options outstanding
for an aggregate transaction value of approximately $73.3 million. The acquisition is expected to
be completed in June 2008.

     Stephen
Kelly, Chief Executive Officer of MicroFocus, commented. “The combination of
MicroFocus and Net Manage will provide the enlarged group with further opportunities for growth
through a more comprehensive and broader

1exv10w7

Exhibit 10.7

ASSIGNMENT AND ASSUMPTION OF LEASES

     THIS
ASSIGNMENT AND ASSUMPTION OF LEASES (this “Assignment”) is made as of February 28, 2008
(the “Effective Date”), by and between CHESAPEAKE ENERGY CORPORATION, an Oklahoma
corporation (“Assignor”), and QUEST RESOURCE CORPORATION, a Nevada corporation
(“Assignee”).

R E C I T A L S:

     A. Assignor, as the successor-in-interest to Ricks Exploration, Inc.
(“Ricks”), holds a leasehold interest pursuant to that certain Lease
Agreement
dated April 8, 1998, between Teachers Insurance and Annuity Association of
America, as landlord, and Ricks, as tenant, as amended by that certain
Amendment No. One to Lease Agreement dated as of September 25, 1998 and
Amendment No. Two to Lease Agreement dated as of March 15, 2001, (as
amended, the “Lease”), in certain premises consisting of 18,684 square feet of
space located on the 30th floor of the Oklahoma Tower, 210 Park
Avenue,
Oklahoma City, Oklahoma (the “Leased Premises”), as more particularly
described in the Lease which is attached hereto as Exhibit A and made
a part
hereof.

     B. Assignor is also the successor-in-interest to Ricks in that certain
Sublease Agreement dated March 14, 2003, between Ricks, as sublandlord, and
3100 City Place, L.L.C., as subtenant, as amended by that certain Sublease
Amendment #1 dated April 8, 2004 (as amended, the “City Place
Sublease”),
which is attached hereto as Exhibit B and made a part hereof.

      C. Assignor is also the successor-in-interest to Ricks in that certain
Sublease Agreement dated July 9, 2004, between Ricks, as sublandlord, and Crusader
Energy Corporation, as subtenant (as amended, the “Crusader Sublease”),
which is attached hereto as Exhibit C and made a part hereof. Collectively,
the City Place Sublease and Crusader Sublease are hereinafter referred to as the
“Subleases.”

     D. Assignor desires to sell, assign, transfer and convey to Assignee, and
Assignee desires to obtain, all of Assignor’s interest as (i) tenant in and to the
Lease and (ii) sublandlord in and to the Subleases.

NOW, THEREFORE, in consideration of the Premises and the covenants hereinafter contained, the
parties hereto do covenant and agree as follows:

     1. This Assignment is conditioned on and subject to the consent of Oklahoma Tower
Realty Investors, L.L.C., as successor in interest to Teachers Insurance and Annuity Association of
America (“Landlord”) to this Assignment, which shall be evidenced by that certain Consent
to Assignment executed by Landlord.

 

 

     2. Assignor does hereby assign to Assignee the Lease for the remainder of its
Term,
commencing February 1, 2008 and ending on July 31, 2013, unless sooner
terminated under the
terms of the Lease.

     3. Assignor does hereby assign to Assignee the Subleases for the remaining term of the Subleases.

     4. Assignee covenants and agrees to assume and perform all of Assignor’s
obligations under the Lease and Subleases (the “Obligations”) and agrees to
comply with and be bound by all of the terms, provisions and
conditions of the Lease and Subleases.

     5. Assignee shall make all payments of the Base Rent, Operating Cost Rent and
Additional Rent, as required by the Lease, directly to Landlord. Additionally, Assignee shall
make a monthly “Premium Rent” payment to Assignor of $1.00 per square foot
per annum ($1,557.00 per month). Assignee may at any time elect, in its sole and
absolute discretion, to make all Premium Rent payments in a lump sum.

     6. Assignee shall maintain the insurance required to be maintained by tenant in
the Lease, provided, however, that all rights and benefits specified for Landlord
pursuant to Section 8 of the Lease shall apply to and inure to the benefit of
Landlord and Assignor Upon the execution of this Assignment, Assignee shall deliver
to Landlord and Assignor a certificate of insurance evidencing the required
insurance coverage.

     7. Assignor shall in no event be obligated to perform Landlord’s obligations
under the Lease or to enforce the terms, covenants, obligations and conditions on
the part of, or to be performed by, Landlord under the Lease.

     8. Assignee agrees to accept the Premises in “AS IS” condition. Assignee agrees
that it has inspected the Premises and acknowledges that no representations, express
or implied have been made to Assignee by Assignor, with respect to the condition of
the Premises.

     9. In the event that Assignee fails to fulfill or perform any of the
Obligations, or shall be adjudged bankrupt or insolvent or shall make an assignment
for the benefit of creditors, or if a receiver or trustee of the Assignee’s property
shall be appointed and not discharged within sixty (60) days, such occurrence shall
be an event of default and Assignor shall have any and all rights and remedies
available to it at law and equity, including the rights and remedies of Landlord
described in the Lease.

     10. Assignee, by acceptance of this Assignment, hereby agrees to indemnify and
save Assignor harmless against any and all claims, demands, or liabilities arising
under the Obligations that accrue from and after the Effective Date. Assignor agrees
to indemnify and save Assignee harmless from and against any and all claims,
demands, or liabilities arising under the Obligations that accrued prior to the
Effective Date.

     11. Each party represents to the other that no broker participated in the
negotiations leading to this Assignment except Price Edwards & Company (the
“Broker”). Assignor shall pay a commission to the Broker pursuant to a separate
agreement. Each party agrees to indemnify

2

 

and hold the other party harmless from and against any claim or demand of any broker or agent who
claims that he/she participated with that party in this transaction.

     IN WITNESS WHEREOF, the parties have hereto executed this Assignment on the date above written.

	 	 	 	 	 	 	 
	 	 	ASSIGNOR:

CHESAPEAKE ENERGY CORPORATION	 	 
	 
	 	 	By:
	 	/s/ Henry J. Hood	 	 
	 	 	 	 	 	 	 
	 	 	Name:
	 	Henry J. Hood	 	 
	 	 	Title:
	 	Senior Vice President  — Land & Legal
and General Counsel	 	 
	 	 	 	 	 	 	 
	 	 	ASSIGNEE:

QUEST RESOURCES CORPORATION	 	 
	 
	 	 	By:
	 	/s/ Jerry Cash	 	 
	 	 	 	 	 	 	 
	 	 	Name:
	 	Jerry Cash	 	 
	 	 	Title:
	 	CEO	 	 

3

 

EXHIBIT “A”

LEASE AGREEMENT

OKLAHOMA TOWER

OKLAHOMA CITY, OKLAHOMA

 

 

	 	 	 
	LANDLORD:	 	TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
	 
	TENANT:	 	RICKS EXPLORATION, INC.
	 
	PROJECT:	 	OKLAHOMA TOWER, OKLAHOMA CITY, OKLAHOMA

LEASE INDEX

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	SCHEDULE	 	 	1	 
	 	 	1.	 	Premises	 	 	1	 
	 	 	2.	 	Project	 	 	1	 
	 	 	3.	 	Term	 	 	1	 
	 	 	4.	 	 Base Rent	 	 	1	 
	 	 	5.	 	Base Year	 	 	1	 
	 	 	6.	 	Security Deposit	 	 	1	 
	 	 	7.	 	Advance Payment	 	 	1	 
	 	 	8.	 	Tenant’s Permitted Use	 	 	1	 
	 	 	9.	 	Landlord’s Address	 	 	1	 
	 	 	10.	 	Tenant’s Capacity and Address	 	 	1	 
	 	 	11.	 	Real Estate Brokers	 	 	1	 

	 	 	 	 	 	 	 
	1.	 	LEASING AGREEMENT	 	 	2	 
	2.	 	RENT	 	 	2	 
	3.	 	CONDITION, POSSESSION AND SURRENDER OF PREMISES	 	 	3	 
	4.	 	PROJECT SERVICES	 	 	4	 
	5.	 	ALTERATIONS AND REPAIRS	 	 	5	 
	6.	 	USE OF PREMISES	 	 	6	 
	7.	 	PROJECT RULES AND GOVERNMENTAL REGULATIONS	 	 	6	 
	8.	 	 CLAIMS; INSURANCE; LIABILITY	 	 	6	 
	9.	 	FIRE AND OTHER CASUALTY	 	 	7	 
	10.	 	RIGHTS RESERVED TO THE LANDLORD	 	 	8	 
	11.	 	DEFAULT AND LANDLORD’S REMEDIES	 	 	9	 
	12.	 	HOLDOVER	 	 	11	 
	13.	 	SUBORDINATION	 	 	11	 
	14.	 	ASSIGNMENT AND SUBLETTING	 	 	12	 
	15.	 	 SALE BY LANDLORD	 	 	13	 
	16.	 	ESTOPPEL CERTIFICATE	 	 	13	 
	17.	 	SECURITY DEPOSIT	 	 	13	 
	18.	 	FORCE MAJEURE	 	 	13	 
	19.      PERSONAL PROPERTY AND
TENANT FIXTURES	 	 	13	 
	20.	 	NOTICES	 	 	13	 
	21.	 	QUIET POSSESSION	 	 	14	 
	22.	 	REAL ESTATE BROKERS	 	 	14	 
	23.	 	 CONDEMNATION	 	 	14	 
	24.	 	LIMITATION OF LIABILITY	 	 	14	 
	25.	 	MISCELLANEOUS	 	 	14	 

EXHIBITS

	 	 	 
	Exhibit A:	 	Floor Plan of the Premises
	Exhibit B:	 	Legal Description
	Exhibit C:	 	Leasehold Improvements
	Exhibit D:	 	Rules and Regulations
	Exhibit E:	 	Additional Provisions (if applicable)

 

 

STANDARD OFFICE LEASE

     LEASE
AGREEMENT (“Lease”) made as of April 8, 1998, between TEACHERS
INSURANCE AND ANNUITY ASSOCIATION OF AMERICA (“Landlord”) and RICKS
EXPLORATION, INC (“Tenant”).

SCHEDULE

     Each reference in this Lease to any of the terms set forth on the following
Schedule (“Schedule”) shall be construed to incorporate the following:

     1. Premises:
The Premises consisting of approximately 15,516
rentable square feet as shown on Exhibit A, on the thirtieth (30th) floor of the
building commonly known as the Oklahoma Tower, 210 Park Avenue, Oklahoma City,
Oklahoma (the “Building”).

     2. Project: The Project consisting of the land described in Exhibit B
(the “Land”), together with the buildings, improvements and appurtenances now
or hereafter located on or used in connection with the Land.

     3. Term: The Term shall be one hundred eighty (180) months
commencing on August 1, 1998 (the “Commencement Date”), and ending on July
31, 2013 (the “Termination Date”), subject to adjustment as provided in
Section 3 of this Lease.

     4. Base
Rent: Base Rent shall be determined at an annual rate per
rentable square foot in the Premises and payable in monthly installments as follows:

	 	 	 	 	 	 	 	 	 
	 	 	Annual Rate	 	Monthly
	Period	 	Per Square Foot	 	Installment
	Months 1 - 24
	 	$	9.00	 	 	$	11,637.00	 
	Months 25 - 48
	 	$	10.00	 	 	$	12,930.00	 
	Months 49 - 96
	 	$	12.25	 	 	$	15,839.25	 
	Months 97 - 132
	 	$	13.00	 	 	$	16,809.00	 
	Months 133 - 156
	 	$	15.00	 	 	$	19,395.00	 
	Months 157 - 180
	 	$	16.00	 	 	$	20,688.00	 

The first full calendar month beginning on or after the Commencement Date shall
be deemed Month 1 for purposes of the above schedule; and the Base Rent for any
initial partial calendar month shall be prorated daily based on the rate
provided for Month 1 in the above schedule and paid in advance.

     5. Base Year: The Base Year for Operating Costs pursuant to Section 2 shall be the
calendar year 1998.

     6. Security Deposit: None

     7. Advance Payment: None. Tenant shall pay the first
monthly installment of Base Rent due under this Lease on or before the
Commencement Date.

     8. Tenant’s Permitted Use: General office purposes consistent with a
first-class office building only.

     9. Landlord’s Address: Teachers insurance and Annuity Association of America,
c/o Price Edwards & Company, 210 Park Avenue, Suite 1000, Oklahoma City. OK 73102, or such other
address as Landlord may from time to time designate by notice to Tenant.

     10. Tenant’s Capacity and Address: Tenant, a corporation under the laws of Oklahoma,
has the following
address for notices before the Commencement Date: 5600 North May Avenue, Suite 350, Oklahoma City,
Oklahoma 73112, and the Premises for notices after the Commencement Date, or such other address as Tenant
may from time to time designate by notice to Landlord.

     11. Real Estate Brokers: Price Edwards & Company representing Landlord.

-1-

 

FOR VALUABLE CONSIDERATION, the parties agree as follows:

     1. LEASING AGREEMENT. Landlord leases to Tenant, and Tenant leases from Landlord, the
Premises as set forth on the Schedule. The Term shall begin on the Commencement Date and continue
until the Termination Date as set forth on the Schedule, unless sooner terminated or extended
under the terms of this Lease.

     Tenant and its agents, employees and invitees have the non-exclusive right with others
designated by Landlord to use the common areas in the Project for their intended and normal
purposes, subject to the terms and conditions of this Lease and to the rules and regulations for
the Project as provided in Section 7. Common areas include elevators, sidewalks, unrestricted
parking areas, driveways, hallways, stairways, public bathrooms, common entrances, lobbies and
other areas designated by Landlord for common use. Landlord may change the common areas at any
time, provided the changes do not materially and unreasonably interfere with Tenant’s access to or
use of the Premises.

     2. RENT.

     A Kinds. Tenant agrees to pay to Landlord, without setoff, deduction or demand, at
Landlord’s Address as set forth on the Schedule, or to such other person or at such other place
as Landlord designates by written notice to Tenant, in lawful money of the United Stales. the
aggregate of the following, all of which are rent reserved under this Lease (collectively
“Rent”):

(1) Base Rent. in the amount set forth on the Schedule, shall be paid in monthly
installments in advance on or before the first day of each month of the Term of this Lease.

(2) Operating
Cost Rent. in an amount equal to Tenant’s Proportionate Share of the
amount, if any, by which the Operating Costs for any Operating Cost Year are greater than the
Operating Costs for the Base Year set forth on the Schedule, shall be paid monthly in advance
in an estimated amount, as adjusted and corrected by Landlord from time to time, as provided
in Sections 2B and 2C.

(3) Additional
Rent. consisting of all of the sums, liabilities, obligations and other
amounts (excepting Base Rent and Operating Cost Rent) which Tenant is required to pay or
discharge pursuant to this Lease (including, without limitation, any amounts which this Lease
provides shall be Tenant’s cost or expense), together with any late charge or interest, all as
hereafter provided.

     B. Payment
of Operating Cost Rent.

     (1) Payment
of Estimated Operation Cost Rent. Landlord shall estimate
Tenant’s Operating Cost Rent for each Operating Cost Year. Such estimate may be revised by
Landlord from time to time whenever it obtains information relevant to making such estimate more
accurate. Within ten(10) days after notice from Landlord setting forth an estimate of Tenant’s
Operating Cost Rent for a particular Operating Cost Year. Tenant shall pay to Landlord an amount
equal to one-twelfth (1/12th) of such estimate multiplied by the number of months during the Term
that have elapsed in such Operating Cost Year to the date of such payment, minus payments of
Operating Cost Rent previously paid for said period. Thereafter, Tenant shall pay monthly, on the
first day of each month, one-twelfth (1/12th) of such estimated
Operating Cost Rent until a new
estimate is applicable.

     (2) Correction
of Operating Cost Rent. As soon as reasonably possible
after the end of each Operating Cost Year Landlord shall deliver to Tenant a notice (the
“Operating Cost Report”) setting forth (a) the actual Operating Costs for the preceding Operating
Cost Year, (b) the amount of any Operating Cost Rent due to Landlord for such Operating Cost Year,
and (c) the amount of any Operating Cost Rent paid by the Tenant
for such Operating Cost Year.
Within thirty (30) days after such report. Tenant shall pay to Landlord the amount of any
additional Operating Cost Rent due for the preceding Operating Cost Year (or a prorated portion
thereof if this Lease was not in effect for the entire Operating Cost Year). If Tenant’s payments
of Operating Cost Rent exceed the amount due Landlord for the Operating Cost Year in question.
Landlord shall promptly either refund any such amount to Tenant or apply any such amount as a
credit against Tenant’s other obligations under this Lease. Unless Tenant takes written exception
to any
item/*1
within thirty (30) days after the furnishing of the Operating Cost Report, such report shall be
considered as final and accepted by Tenant.

     C. Definitions

     (1) Operating Costs. “Operating Costs” shall mean the sum of the Taxes and Expenses
for the Project, determined in accordance with sound accounting and management practices as
follows:

(a) Taxes. “Taxes” shall mean all taxes, assessments and other governmental charges, general
and special, ordinary and extraordinary, of any kind and nature whatsoever, including, without
limitation, assessments for public improvements or benefits, imposed by any lawful authority
upon the Project or payable by Landlord in connection with the ownership, leasing, renting,
management, control or operation of the Project. Taxes shall include, without limitation, real
estate taxes, personal property taxes, sewer rents, assessments (special or otherwise), transit
taxes, ad valorem taxes, and any new or increased taxes, assessments or charges which are in
place of or arise out of any changes in current Taxes. Taxes shall also include all reasonable
fees and expenses incurred to contest, determine or reduce any Taxes; and if a refund is
obtained, Landlord shall promptly either pay to Tenant or apply as a credit against Tenant’s
other obligations under this Lease a portion of the refund based on the amount of Operating
Cost Rent, if any, previously paid by Tenant attributable to increases in Taxes for the
Operating Cost Year(s) to which the refund is applicable. Landlord
shall have the exclusive
right to contest, petition for review, or otherwise seek a reduction in Taxes. If at any time
during the Term, a federal, state or local tax, excise or surcharge on rents or income or other
tax however described (herein called “Rent Tax”) is levied or assessed on account of the rents
hereunder or the interest of Landlord under this Lease, such Rent Tax shall be included in
Taxes. Taxes shall not include any net

 

			
	*1.	 	before the later of (i) December 31 of the year in which the Operating Cost Report is
furnished or (ii) two hundred seventy (270)

-2-

 

income/*1,
capital stock succession transfer, franchise, gift, estate or
inheritance taxes, unless the same shall be imposed in place of all or any
portion of Taxes.

The Taxes for any given Operating Cost Year shall be the amount of Taxes
payable during such Operating Cost Year, even though levied or assessed for a
different fiscal year, provided, that in the case of special assessments which
may be paid in installments, only the installment, plus any interest, payable
during the Operating Cost Year shall be included in Taxes. Tenant shall be
solely responsible for any taxes on its personal property and trade fixtures
used in connection with the Premises.

(b) Expenses. “Expenses” shall mean all expenses, costs and
disbursements (and taxes thereon, if any) of every kind and nature, paid or
incurred by or on behalf of Landlord in connection with the ownership,
management, maintenance, operation and repair of all or any part of the Project
(adjusted for vacancy as provided below). Expenses shall not include (1) costs
of alterations of tenant premises: (2) costs of capital improvements, except for
a reasonable amortization plus interest expense for any capital improvements
which are made to reduce Expenses, or for emergency, labor-saving, security or
property protection equipment and systems, or to comply with all governmental
laws, ordinances, regulations or orders applicable to the Project from time to
time: (3) depreciation, except as permitted in the preceding Subsection: (4)
interest and principal payments on mortgages. any rental payments on any ground
or other underlying leases and other debt costs, if any: (5) real estate brokers
leasing commissions: (6) any cost or expenditure for which Landlord is
reimbursed whether by tenants insurance proceeds or otherwise (excluding
Operating Cost Rent): and (7) Taxes.

If the Project is not Fully Occupied at any time during any Operating Cost Year
Landlord may reasonably adjust the Operating Costs which vary with occupancy in the
Project for such Operating Cost Year employing sound accounting and management
principles. to the amount of Operating Costs that would have been incurred had the
Project been Fully Occupied for the entire Operating Cost Year For
purposes of the
preceding sentence, “Fully Occupied” means the greater of actual occupancy or
ninety-five percent (95%) occupancy of the Project. If during any Operating Cost
Year a tenant performs any service (the cost of which would constitute an Operating
Cost) in lieu of Landlord furnishing the service. Landlord may reasonably adjust
the Operating Costs for such Operating Cost Year to the amount which
would “have
been incurred if Landlord had furnished such service.

     (2) Operating Cost Year. “Operating Cost Year” shall mean each calendar year that
includes any part of the Term.

     (3) Tenant’s Proportionate Share. “Tenant’s
Proportionate Share” shall mean the percentage obtained by dividing the number of
rentable square feet in the Premises by the number of rentable square feet
designated by Landlord for office occupancy in the Project, each as reasonably
determined by
Landlord./*2

     D. Rules
of Interpretation and Computation of Base Rent and Rent Adjustments.

     (1) If the Term commences or terminates on other than the first or last day of
a month, the Base Rent and Operating Cost Rent for such month shall be prorated
based upon the number of days of the Term falling within such month and shall be
paid in advance. If the Term of this Lease commences on any day other than the
first day of an Operating Cost Year, or if the Term of this Lease ends on any day
other than the last day of an Operating Cost Year any Operating Cost Rent due to
Landlord with respect to such Operating Cost Year shall be prorated based on the
number of days in the Term falling within such Operating Cost Year. Tenant’s
covenants to pay Rent shall be independent of every other covenant set forth in
this Lease. If Tenant is in default under this Lease, Tenant shall not be entitled
to any refund otherwise due hereunder until all such defaults are cured.

     (2) If Tenant fails to pay any Day Rent operating Cost Rent or Additional Rent within five (5) days from the date due.
Tenant shall pay to Landlord a larc change in the amount of five
percent (5%) of such sun to help defray Landlord’s additional administrative costs.
In addition, any sum day from Tenant to Landlord not paid within five (5) days from the date due shall bear interest from the date due until the date paid at an amount rate
equal to the lesser of (a)the highest lawful rate or (b) eighteen percent (18%) per annum: The payment of such late charge or interest shall no excuse
or Tenant under this lease, or limit any right or remedy of
Landlord/*3

     (3) If changes are made to the number of rentable square feet in the Premises
or the number of rentable square feet designated by Landlord for office occupancy
in the Project Tenant’s Proportionate Share shall be appropriately adjusted and the
computations of rent shall be appropriately adjusted upon written notice to Tenant
so as to take into account the different Tenant’s Proportionate Share figures
applicable during each portion of the applicable Operating Cost Year.

     (4) Landlord
shall, in its reasonable discretion and consistent with the
provisions of this Lease, determine from time to time the method of
computing Operating Costs, the allocation of Operating Costs among the various parts
and types of space within the Project and the allocation of Operating Costs
relating to more than one Operating Cost
Year./*4

     (5) No calculation, determination or payment of Operating Cost Rent as provided in this
Section 2 shall reduce the Base Rent payable by Tenant under this Lease. Landlord’s and Tenant’s
obligations under this Section 2 with regard to Operating Cost Rent
shall survive the expiration or termination Of this Lease.

     3. CONDITION, POSSESSION AND SURRENDER OF PREMISES.

     A. Landlord shall make the improvements to the Premises, if any as provided in Exhibit C
Except as otherwise provided in

 

			
	*1.	 	(including, without limitation, federal, and state income taxes)
	 
	*2.	 	Tenant’s Proportionate Share initially shall he 2.90%, calculated by dividing the rentable
square feet in the Premises of
15,516 by the rentable square feet designated by Landlord for
office occupancy in the Project of 534,573.
	 
	*3.	 	See Exhibit E. Section 30.
	 
	*4.	 	See Exhibit E. Section 31.

-3-

 

this
Lease/*1.
Landlord is leasing [ILLEGIBLE] Premises to Tenant “as is,” without any
representations or warranties of any kind (including without limitation, any express or implied
warranties of fitness or habitability) and without any obligation on
the part of the Landlord to
alter remodel, improve, repair decorate or clean the Premises, the
Project or any part thereof.

     B. If Landlord is unable to deliver possession of the Premises by the Commencement Date set
forth on the Schedule because construction has not been substantially completed, or due to a
holding over by a prior tenant, or for any other reason beyond Landlord’s control (except Tenant’s
default hereunder or Tenant Delay as provided in Exhibit C). then: the Commencement Date and
Tenant’s obligation for payment of Rent shall be postponed until the date on which Landlord
delivers possession of the Premises; Landlord shall not be liable for any loss, damage or expense
arising in any manner from any such delay; this Lease shall remain in effect during the period of
any delay; the Term shall be automatically extended to include the same number of full calendar
months set forth on the Schedule after the Commencement Date plus, if the Commencement Date is not
the first day of a calendar month the partial month in which the Commencement Date occurs; and the
Termination Date shall be the last day of the final calendar month of the Term as so extended.

     C. Except as otherwise provided in this Lease. Tenant’s taking possession of the Premises or
any portion thereof shall be conclusive evidence that the Premises or such portion were then in
good order repair and satisfactory
condition/*2. If Landlord permits Tenant to take
possession of all or any part of the Premises prior to the Commencement Date, all of the terms of
this Lease, except where clearly inappropriate, shall apply to and shall control such pre-term
occupancy. Rent for such pre-term occupancy shall be paid before taking possession and on the First
day of each calendar month thereafter at the rate set forth in Section 2A hereof, prorated on a per
diem basis for any fractional month.

     D. During the Term of tins Lease. Tenant shall maintain the Premises in as good condition as
when Tenant took possession (or as completed after possession, if applicable), except for ordinary
wear and as otherwise provided in this Lease. At the expiration or termination of this Least.
Tenant shall, subject to Sections 3E and 3F below return the Premises to Landlord broom clean and
in good condition as described in the immediately preceding sentence

     E. Unless otherwise agreed in a writing signed by Landlord, all Work (as defined in Section
5A. including, without limitation, partitions, hardware, floor coverings, ceilings, wiring,
telephone and communications or computer cabling light fixtures and other fixtures, but excluding
trade fixtures, movable partitions and personal property belonging to Tenant) in or upon the
Premises, whether installed by Landlord or Tenant, shall be surrendered with the Premises at the
expiration or termination of this Lease or when Tenant’s right to possession otherwise terminates
and shall become Landlord’s property without compensation to Tenant; provided that if Landlord so
directs by written notice. Tenant shall promptly remove any Work installed in or upon the Premises
by or for Tenant and designated in such notice and repair any damage to the Premises caused by such
removal.

     F. Tenant shall also remove its trade fixtures and personal property from the Premises, and
repair any damage caused by such removal prior to the end of the Term, or within ten (10) days
following the early termination of this Lease or Tenant’s right of possession: and if Tenant does
not so remove such property at landlord’s election: (1) Tenant shall be conclusively deemed to have
conveyed the same to Landlord as by a bill of sale without further payment or credit by Landlord to
Tenant, or (2) Tenant shall be conclusively deemed to have forever abandoned such property and
without accepting title thereto, Landlord may at Tenant’s expense, remove, store, destroy or
otherwise dispose of all or any part thereof in any manner that Landlord shall choose without
incurring liability to Tenant or any other person, and Tenant shall pay to Landlord, upon demand,
all reasonable expenses incurred in taking any of such actions. The failure of Tenant to remove all
such property from the Premises and the Project shall forever bar Tenant from bringing any action
or asserting any liability against Landlord with respect to any such property.

     G. Tenant’s obligations under this Section 3 shall survive the expiration or
termination of this Lease.

     4. PROJECT SERVICES.

     A. Services. So long as Tenant is not in default hereunder Landlord shall furnish
the following services to the Tenant without charge except for Rent
and as otherwise specifically
provided herein:

(1) Heat and air conditioning to provide a temperature required in Landlord’s reasonable
judgment for comfortable occupancy of the Premises under normal business operations from 8:00
a.m. to 6:00 p.m. Monday through Friday and from 8:00 a.m. to 1:00 p.m. Saturdays, holidays
excepted (“Operating Hours”).

(2) Non-exclusive passenger elevator service to the Premises at all times (provided Landlord may
limit the elevators in operation during non-Operating Hours), and non-exclusive freight elevator
service as scheduled by Landlord.

(3) Electricity from the public utility supplying the Project subject to the rules, regulations,
and requirements of such public utility to provide sufficient power for normal lighting and
small business office equipment (but not equipment using amounts of power disproportionate to
that used by other tenants in the Project) during Operating
Hours. If the installation of any
Equipment or lighting requires additional electrical or air conditioning capacity above the
Building standard system, then the additional installation, metering and operating costs shall
be paid by Tenant to Landlord as Additional Rent. Landlord shall replace Building standard
lamps, bulbs, ballasts or starters in the Premises as required by normal usage.

(4) Hot and cold municipal water at those points of supply provided for the general use of
tenants in the Project.

(5) Janitorial and customary cleaning services nightly in the Premises, except Saturdays,
Sundays and holidays; and window washing for exterior windows at intervals reasonably determined
by Landlord.

 

			
	*1.	 	(including, without limitation. Landlord’s obligations for services and repairs
under Sections 4 and 5 of this Lease)
	 
	*2.	 	except (1) punchlist items relating to Landlord’s Work as provided in Exhibit C to
this Lease, and (2) latent defects relating to Landlord’s Work of which Tenant notifies Landlord
within one year following the Commencement Date

-4-

 

     B. Additional Services. Except as specifically provided in this Lease,
Landlord shall not be obligated to furnish any additional services or to furnish services at other
limes. If Landlord provides additional services at Tenant’s request. Tenant shall pay for such
additional services at Landlord’s then prevailing rates as Additional Rent. If Landlord from time
to time reasonably determines that the use of any utility or service in the Premises is
disproportionate to the use of other tenants. Landlord may separately charge Tenant for the excess
costs attributable to such disproportionate use and may install metering devices at Tenant’s
expense, which amounts shall be due from Tenant as Additional Rent

     C. Interruption of Service. Landlord dues not warrant that any service will be free
from interruptions, failures or defects caused by labor controversies, accidents, inability to
obtain utilities, fuel, steam, water or supplies, governmental regulations or other causes beyond
the reasonable control of the Landlord of repairs, alterations, replacements or improvements to
the Project or its systems. Landlord shall use reasonable diligence to remedy any interruption or
failure of or defect in such services after notice from Tenant, but no such interruption or
failure of or defect in any service shall be deemed an eviction or disturbance of Tenant’s use and
possession of the Premises or any part thereof, or render Landlord
liable to Tenant for any loss
expense or damage:
by/*1
abatement of Rent or otherwise, or relieve Tenant from
performance of Tenant’s obligations under this Lease.

     D. Keys and Locks. Landlord shall furnish Tenant with two (2) keys or access cards
(“keys”) for each corridor door entering the Premises and any applicable access system for the
Project and additional keys ordered by Tenant will be furnished by Landlord at Tenant’s expense.
All such keys shall remain the property of Landlord provided, that Tenant shall be solely
responsible for monitoring distribution and use of keys furnished to Tenant No additional locks
shall be allowed on any door of the Premises without Landlord’s written consent. Upon termination
of this Lease, Tenant shall surrender to Landlord all keys to any locks on doors entering or
within the Premises or the Project and shell give to Landlord the combination for all locks for
sales and vaults, if any left in the Premises.

     E. Telephones/Wiring. Tenant shall at its expense install and maintain all telephone
and communications wiring and equipment from the service access point in the Project to and within
the Premises, and arrange directly with the telephone company and suppliers of its choice for all
service and connections. The installation of all telephone, communications, computer security and
other wiring and equipment shall be subject to Landlord’s prior written consent is provided in
Section 5 of this Lease

     5. ALTERATIONS AND REPAIRS.

     A. Tenant shall not make or permit any interior or exterior alterations, additions,
improvements or changes, structural or otherwise, to the Premises or the Project, nor make any
installations which may require any change to the heating, ventilating, air conditioning,
electrical or plumbing systems of the Project (collectively “Work”) without obtaining the prior
written consent of Landlord in each instance. As a condition to granting its consent. Landlord may
impose reasonable requirements including without limitation requirements as to the manner and time
for the performance of any Work, the type and amount of insurance, bonds and security for payment
Tenant must provide the plans and specifications relating to the Work, the contractors performing
the Work, the contracts and building permits relating to the Work, the activities being undertaken
within the Project relating to the Work, and the removal of the Work, at the expiration or
termination of this Lease. Landlord shall be reimbursed by Tenant for all reasonable costs
incurred in connection with its review and supervision of the Work, in no event will such
supervision or right to supervise by Landlord nor any approvals given by Landlord under this Lease
constitute any warranty by Landlord to Tenant of the adequacy of the design workmanship or
quality of any Work or materials for Tenant’s intended use or otherwise or impose any liability
upon Landlord in connection with the performance of such Work. All Work shall be performed in a
good and workmanlike manner and in full compliance with applicable laws, ordinances and
regulations, and all insurance requirements.

     B. Tenant shall promptly pay all contractors and materialmen for the Work and furnish
Landlord with sworn construction statements and lien waivers upon request of Landlord. Any
mechanic’s lien filed against the Premises or the Project for Work or materials furnished or
claimed to have been furnished in connection with the Work or to Tenant shall be released and
discharged by Tenant, by bond or otherwise within ten (10) days after the filing of such lien at
Tenant’s sole expense Tenant agrees to indemnify hold harmless and defend Landlord, its agents
and employees the Premises, the Building and the Project from any loss, damage or expense,
including reasonable attorney’s fees, arising out of any lien claim or other claim relating to
any Work. Nothing contained in this Lease shall be construed as 3 consent by Landlord so as to
subject the Landlord’s interest in the Premises to any lien or liability under applicable
mechanic’s lien laws.

     C. Landlord shall maintain and repair the foundations exterior walls, structural portions,
roof and common areas of the Project and the heating air conditioning ventilating, electrical,
elevator and plumbing systems serving the Project (except improvements or fixtures in or
primarily serving the Premise in good condition ordinary wear excepted: provided that: (I)
Landlord’s obligations shall be subject to the provisions of this Lease concerning casualty loss
and condemnation and the cost of such repairs shall be included in Operating Costs subject to the
terms and conditions of Section 2; (2) Tenant shall promptly at its expense repair all damage to
the Premises or the Project caused by Tenant or any of its employees, agents or invitees, by
Tenant’s failure to comply with or perform any of Tenant’s obligations under this Lease, or by
the installation operation or removal of Tenant’s improvements or fixtures; and (3) Landlord
shall use reasonable diligence in carrying out its obligations under this Section but shall not
be liable under any circumstances for any loss, expense or
damage for any failure to do so,
by/*2
abatement of Rent or otherwise, nor shall the same constitute an eviction of
Tenant or relieve Tenant from performance of Tenant’s obligations under this Lease.

     D. Except for ordinary wear and as otherwise provided in this Lease. Tenant shall at its
expense maintain and repair the Premises, all improvements and fixtures in or primarily serving
the Premises, and all of Tenant’s trade fixtures and personal property at the Premises in good
condition. If due to Tenant’s use of the Premises alterations or improvements to the Premises or
the Project are necessary to comply with any present or future governmental laws, ordinances or
regulations or requirements of insurance carriers. Tenant shall at its expense promptly perform
such alterations or improvements in compliance with this Section 5. If Tenant fails to perform
any obligation under this Section 5 then on not less than ten (10) days notice to Tenant (or
immediately if an emergency). Landlord may enter the Premises and perform such obligations and
Tenant shall pay Landlord upon demand the cost

 

			
	*1.	 	consequential
damages or
	 
	*2.	 	consequential damages
or

-5-

 

thereof as Additional Rent.

     6. USE OF PREMISES.

     A. The Premises shall be occupied and used by Tenant only for Tenant’s Permitted Use as set
forth on the Schedule, and for no other purpose. Without limiting the generality of the foregoing,
no use shall be made of the Premises nor acts done which are unlawful, unsafe, create a nuisance,
unreasonably interfere with the operation of the Project, or which will increase the existing rate
of insurance upon the Project or cause a cancellation of any insurance policy covering the Project
or any part thereof or require additional insurance coverage. Tenant shall not permit to be kept,
used or sold in or about the Premises any article which may be prohibited by Landlord’s insurance
policies. If Tenant’s particular use of the Premises causes the rate of fire or other insurance on
the Premises to be increased beyond the rate otherwise applicable to the Premises, Landlord shall
have the option to require Tenant to cease such use or to reimburse Landlord for the amount of any
such increase.

     B. Tenant
shall not install, use, generate, store, release or dispose of any Hazardous
Materials in or about the Premises or the Project, nor cause or permit Tenant Parties or others to
do so, except immaterial quantities of ordinary janitorial and office products customarily used by
tenants in office business operations so long as such products are properly used, stored and
disposed of in accordance with all Environmental Laws and the highest prevailing industry standards.
Tenant shall at its expense comply with all Environmental Laws affecting its use of the Premises
and shall immediately give Landlord written notice of any communication from any governmental
agency regarding the application of any Environmental Laws to the Premises or Tenant’s use of the
Premises. Tenant shall indemnify defend and hold harmless Landlord and its officers, employees,
agents and lenders from and against any loss, claim, damage or expense including without limitation
all testing enforcement, cleanup and remedial costs and reasonable attorney’s fees, arising by
reason of the presence in or about the Premises or the Project of any Hazardous Materials as a
result of or in connection with any act at omission of Tenant or Tenant Parties or the breach of
this Lease or any Environmental Laws by Tenant or Tenant Parties. regardless of whether Landlord
has approved the activity. As used herein “Hazardous Materials” means any hazardous substance,
hazardous material, hazardous waste, pollutant, toxic material or contaminant defined or regulated
under any Environmental Laws (including without limitation, petroleum, asbestos, PCBs and any
substance or material which may be hazardous to human health safety or the environment):
“Environmental Laws” means all present or future federal state and local laws, statutes,
ordinances, regulations, rules, guidelines, orders, decisions, decrees, or other requirements of
any governmental agency or authority pertaining to the regulation or protection of human health
safety or the environment; and “Tenant Parties” means Tenant’s principals, officers, agents,
employees, contractors, invitees, subtenants or assignees. Tenant’s obligations under this Section
6B shall survive the expiration or termination of this Lease.

     7. PROJECT RULES AND GOVERNMENTAL REGULATIONS. Tenant shall at its expense comply
with all applicable governmental laws ordinances and regulations concerning its use of the
Premises. Tenant shall also Comply with all reasonable rules and regulations adopted from time to
time by Landlord pertaining to the operation and management of the Project. If any rules and
regulations are contrary to the terms of this Lease the terms of this Lease shall prevail. The
present rules are contained in Exhibit D. The violation of the Project rules or the laws or
regulations governing Tenant’s use of the Premises shall be a default under this Lease allowing
Landlord all remedies for default set forth under Section 11 of this Lease. Landlord shall not be
responsible to Tenant for violation of the rules or regulations or the terms of this Lease or any
other lease in the Project by another tenant nor shall failure to obey the same by others relieve
Tenant from its obligations to comply therewith.

     8. CLAIMS: INSURANCE: LIABILITY.

     A. To the fullest extent permitted by law Tenant waives all claims it may have against
Landlord its officers, directors, agents or employees for damage to person or property sustained by
Tenant or by any occupant of the Premises or the Project or any other person, occurring in or about
the Premises or the Project resulting from the Premises or the Project or any part of said Premises
or Project becoming out of repair or resulting from any existing or future condition, defect,
matter or thing in the Premises the Project or any part of it or from
equipment or apportenances
therein or from the action of the elements or from any security or lack thereof, or any criminal or
intentional misconduct of third parties or any accident within or adjacent to the Premises or
Project or resulting directly or indirectly from any act or omission of Landlord or any occupant of
the Premises or Project or any other person while on the Premises or the Project. This Section 8A
‘shall include without limitation damage caused by water, snow, frost, steam, excessive or
inadequate heat or cooling, sewers, gas, odors or noise, the bursting or leaking of pipes or
plumbing fixtures, broken glass, sprinkling or air conditioning devices or equipment, or flooding.
All property on the Project or in the Premises belonging to the Tenant, its agents, employees,
contractors or invitees or to any occupant of the Premises shall be at the risk of the Tenant or
such other person only, and Landlord shall not be liable for damage thereto or theft,
misappropriation or loss thereof. Notwithstanding anything contained in this Section 8A to the
contrary no agreement of Tenant in this Section 8A shall be deemed to exempt Landlord from
liability for injury to persons or damage to property caused by or resulting from the gross
negligence or willful misconduct of Landlord, its agents or employees in the operation or
maintenance of the Premises or the Project or to any extent
prohibited by law.

     B. Landlord and Tenant each hereby waive all claims of recovery from the other party for loss
or damage to any of its property to the extent the loss or damage is covered by valid and
collectable fire and extended coverage insurance policies or would be covered by the insurance
required under Section 8C(2). and each party agrees to have its insurance policies endorsed to
provide for a waiver of subrogation by the insurance carrier, if necessary to prevent the
invalidation of such insurance coverage.

     C. At all times during the Term of this Lease, Tenant shall at its expense maintain in effect
insurance protecting Tenant and Landlord and their respective agents and employees, and any other
parties designated by Landlord from time to time, with terms, coverages and in companies at all
times reasonably satisfactory to Landlord and with such increases in limits as Landlord may from

-6-

 

     time to time, request. /*1 Initially, such coverage shall be in the following amounts:

(1) Commercial general liability insurance (including coverage for bodily injury, broad form
property damage, personal injury, broad form contractual liability applying to this Lease,
independent contractors, and products and completed operations) with limits of not less than One
Million Dollars ($1,000,000) combined single limit per occurrence for Bodily Injury. Death and
Property Damage, and umbrella coverage of not less than Three Million Dollars ($3,000,000), naming
Landlord, any Mortgagees or Lessors (as hereafter defined) and its management company as additional
insureds.

(2) Insurance against “All Risks” of physical loss for the full replacement cost of all tenant
improvements and Work, if any, made by Tenant or at Tenant’s expense, and all equipment, furniture,
trade fixtures, merchandise and other items of Tenant’s property on the Premises.

     D. Tenant shall, prior to the commencement of the Term hereof and prior to the expiration of any
policy, furnish Landlord certificates evidencing that all required insurance is in force and
providing that such insurance may not be canceled or changed without at least thirty (30) days’
prior written notice to Landlord and Tenant (unless such cancellation is due to nonpayment of
premiums, in which event ten (10) days’ prior written notice shall be provided).

     E. /*2
Except to the extent caused by the gross negligence or willful misconduct of Landlord. Tenant
hereby agrees to indemnity defend and hold harmless Landlord and its officers, directors, agents
and employees against any claims or liability for damage to person or property (or for loss or
misappropriation of property) occurring in or about the Premises, arising from Tenant’s occupancy
of the Premises, from any breach or default on the part of Tenant during the Term of this Lease or
from any
/*3 act or omission of Tenant or of any employee agent, invitee or contractor of Tenant,
and from any costs relating thereto (including, without limitation,
reasonable attorneys’ fees)/*4
Tenant’s obligations under this Section 8E shall survive the termination or expiration of this
Lease.

     9. FIRE AND OTHER CASUALTY.

     A. In the event that (1) the Premises are made substantially untenantable by fire or other casualty
and Landlord shall decide not to restore or repair the same, or (2) the Building or the Project is
so damaged by fire or other casualty that Landlord shall decide to demolish or not rebuild the
Building, then, in either of such events, either Landlord or Tenant shall have the right to
terminate this Lease by notice to the other within ninety (90) days after the date of such fire or
other casualty.

     B. If the Premises of the Building are made untenantable by fire or other casualty, and this Lease
is not terminated pursuant to Sections 9A or 9C, Landlord shall, to-the extent permitted by any
mortgages or ground leases with respect to the Project, immediately take such action as is
necessary to make applicable insurance proceeds available and to use the same to reconstruct,
repair and restore the Building and the Premises, subject to zoning laws and building codes then in
effect, and including only tenant improvements constructed in Landlord’s expense, or, if any
portion of the Premises has been leased on an “as is” basis, including only improvements similar to
those located in such portion of the Premises on the Commencement Date or the date on which
such portion was added to the Premises, if later than the Commencement Date (herein, the
improvements Landlord is required to make are called the “Required Improvements”). At Landlord’s
option, Tenant may be permittec or required to devote the proceeds of its insurance described in
Section 8C(2)/*5
ic cause restoration of tenant improvements and the Premises over arid above the
Required Improvements, and pay for the same to Landlord or through Landlord as if newly done
pursuant to Section 5 of this Lease. In the event a fire of other casualty occurs and both Landlord
and Tenant are insured, it is agreed that the coverage of the Landlord shall be primary and that
Landlord’s recovery in no event shall be reduced by any insurance recovery to Tenant. In no event
shall Landlord have any liability to Tenant by reason of any damage to or interference with the
Premises, the Project, or Tenant’s business, improvements or
property arising from fire or other
casualty, however caused, or any resulting repairs

     C. Notwithstanding anything in this Section 9 to the contrary if all or any portion of the Premises
shall be made untenantable by fire or other casualty. Landlord shall with reasonable promptness,
cause an architect selected by Landlord to estimate the amount of time required to substantially
complete repair and restoration of the Premises and make the Premises tenantable again, using
standard working methods. If the estimate indicates that the Premises
cannot be made Tenantable /*6
within twelve (12) months from the date five of casulty occured, either party shall have the right to
terminate this Lease by giving to the other notice of such election within with ten (10) days after
its receipt of the architect’s certificate. If the estimate of the architect indicates that the
Premises can be made tenantable within such twelve
(12) months /*7 and neither party terminates
this Lease pursuant to Section 9A, or if neither party terminates this Lease pursuant to this
Section 9C. Landlord shall proceed with reasonable promptness to repair and restore the Premises
pursuant to Section 9B, provided that if the estimate of the architect indicates that the Premises
can be made tenantable within such twelve
(12) months /*7 and if Landlord does not repair and
restore that Premises within such twelve (12) months
period /*7, which period shall be extended to
the extent of any Reconstruction Delays, then Tenant may terminate this Lease upon fifteen (15)
days prior written notice to Landlord (except that if the Premises are repaired and restored before
the date specified in Tenant’s notice, this Lease shall not terminate and shall continue in
effect). For purposes of this Lease, the term “Reconstruction Delays” shall mean: (1) any delays
caused by the insurance adjustment process. (2) any delays caused by Tenant, and (3) any delays
caused by events beyond Landlord’s reasonable control.

 

			
	*1.	 	Tenant shall not be required to provide additional insurance or increase insurance limits in
excess of the requirements of prudent landlords or lenders for similar tenants occupying similar
premises.
	 
	*2.	 	Subject to Section 8B and except
	 
	*3.	 	negligent
	 
	*4.	 	provided, that the indemnification obligation under this Section shall exist and be enforceable
only to the extent such damage or loss is collectable under Tenant’s insurance policies. See also
Exhibit E. Section 32.
	 
	*5.	 	(to the extent such insurance relates to leasehold improvements and not to Tenant’s equipment
and personal property)
	 
	*6.	 	within a period equal to the shorter of (i) six (6) months from the date the fire or casualty
occurred or (ii) one hundred twenty (120) days after the completion of the insurance adjustment
process (“Reconstruction Period”)
	 
	*7	 	Note: Insert “Reconstruction Period” at each *7 in this Section.

-7-

 

     D
In the event that this Lease as terminated pursuant to Section 9A or Section 9C above. Base Rent
and Operating Cost Rent shall be apportioned on a per diem basis and paid to the date of the fire or
other casualty. In the event that such fire or casualty renders all or any portion of the Premises
untenantable and this Lease is not terminated pursuant to
Section 9A or Section 9C, then subject to
the last sentence of this Section 9D, the Base Rent and Operating Cost Rent provided for in this
Lease shall abate on a per diem basis during the period of repair and restoration until the
Premises are tenantable again, and the abatement shall be in an amount bearing the same ratio to
the total amount of such Rent due for such period as the untenantable portion of the Premises from
time to time bears to the entire Premises. Any provision hereof notwithstanding. Tenant’s Rent
shall not abate if The/=*1 negligence of Tenant, or its agents or employees, was the cause of the
fire or other casualty

     10. RIGHTS RESERVED TO THE LANDLORD. /=*2 Landlord reserves the following rights,
exercisable without notice to Tenant except as otherwise expressly provided herein, and without
liability to Tenant for damage or injury to property, person or business (all such claims being
hereby released, except to the extent they are caused by Landlord’s gross negligence or willful
misconduct), and without effecting an eviction or disturbance of Tenant’s use or possession or
giving rise to any claim for offsets, or abatements of Rent or affecting any of Tenant’s
obligations under this Lease

     A. Name: To change the Project’s name or street address.

     B. Signs: To install, affix and maintain any and all signs on the exterior and
interior of the Building and to prescribe the location and style of all signs visible from the
exterior of the Building or from within its lobbies or common corridors.

     C. Windows/Design: To designate and approve, prior to installation, all types of
window shades, blinds, drapes, awnings, window ventilators and other similar equipment: to control
all the internal lighting that may be visible from the exterior of the Building: and to approve the
design, arrangement, style, color and general appearance of any portion of the Premises (including,
without limitation, furniture, fixtures, art work, wall coverings, carpet and decorations) which is
visible from the common areas or from the exterior of the Building, and all changes or additions
thereto.

     D. Service Contracts: To designate all sources furnishing sign painting and
lettering, ice and drinking water, towels, toilet supplies, beverages, food service, or other
services on the Premises, provided that the rates for such services
as are designated by Landlord
are reasonably competitive with rates charged therefor in the Oklahoma City metropolitan area. No
vending or dispensing machines of any kind shall be placed in or about the Premises without the
prior written consent of Landlord.

     E. Keys: To retain at all times, and to use for purposes authorized in this
Lease, passkeys to the Premises and keys to all locks for doors within and into the Premises.

     F. Access for Repairs Etc. Upon reasonable prior notice to Tenant (except in an
emergency), to have access to the Premises to perform its duties and obligations under this Lease
and to inspect the Premises, make repairs, alterations, additions or improvements, whether
structural or otherwise, in and
about the Premises, the Project or any part thereof as set forth in various Sections of this Lease
including, without limitation. Section 5 and Section 10M.

     G. Occupancy. To decorate, remodel, repair, alter or otherwise prepare the
Premises for reoccupancy at any time after Tenant vacates or abandons the Premises. Such nets of
Landlord shall not relieve Tenant of its obligation to pay Rent to the Termination Date.

     H. Rights to Conduct Businesses: To grant to anyone the exclusive right to
conduct any business or render any service in the Project provided such exclusive right shall not
operate to exclude Tenant’s Permitted Use as set forth on the Schedule.

     I. Heavy
Equipment: To approve the weight, size or location of safes and other
heavy equipment and articles in and about the Premises and the Project and to require all such
items and furniture to be moved into and out of the Building or anywhere else in the Project and
the Premises only at such times and in such manner as Landlord shall direct in writing. Movement of
Tenant’s property into or out of the Project and within the Project is entirely at the risk and
responsibility of Tenant.

     J. Show
Premises: To show the Premises to prospective tenants or brokers during
the last twelve (12) months of the Term of this Lease or of any extension thereof or to show the
Premises to prospective purchasers at all reasonable times, provided prior reasonable notice is
given to Tenant in each case and Tenant’s use and occupancy of the Premises shall not materially be
inconvenienced by any such action of Landlord.

     K. Close Project: To restrict access to the Project during such hours as
Landlord shall from time to time reasonably determine and on holidays, subject, however, to
Tenant’s right to admittance at all times under such regulations as Landlord may prescribe from
time to time which may include, by way of example but not of limitation, that persons entering or
leaving the Project identify themselves to a security guard by registration or otherwise and that
said persons establish their right to enter or leave the Project. In case of an emergency, Landlord
may restrict or prevent access to the Project, or otherwise take such actions as deemed necessary
by Landlord for the safety of tenants or other occupants of the Building or the protection of the
Project.

     L.
Substitution of Space. At any time hereafter. Landlord may
relocation or part of Premises to
another area in the Project (here in referred to as the new premises upon thirty (30)
days prior written notice, provided, that (1) the new premises shall be substantially similar to
the Premises in area and suitable for the use which Tenant had made
of the old Premises ,(2) if the
Premises are being improved pursuant to the provisions of Exhibit C, Landlord will pay the costs of
improving the new premises so they are substantially similar to the
old Premises, and (3) Landlord
shall pay all of Tenant’s reasonable moving costs. Tenant shall cooperate with Landlord in all reasonable
ways to facilitate the move to the new premises including, by way of
example but not of limitation,
designating locations to move furniture and equipment, superrising
moving of files or fragile equipment, designating location of telephone outset and listing color
of paint and of flooring desired in the new premises. If Landlord excreises its right under this 

 

			
	*1. gross
	 
	*2. In addition to any other rights of Landlord

-8-

 

Section, the new premises shall thereafter be deemed for all purposes of this Lease as
the Premises.

     M Repairs and Alterations: At any time Landlord may make repairs, alterations,
additions, decorations or improvements, structural or otherwise, in or to the Project or any part
thereof, including the Premises, and perform any acts required or permitted hereunder, or related
to the safety, protection, preservation or improvement of the Project or the Premises, and during
such operations Landlord shall have the right to take into and through the Premises or any part
of the Project all material and equipment required and to close and temporarily suspend operation
of entrances, doors, corridors, elevators and other facilities, and to have access to and open
all ceilings, without liability to Tenant by reason of interference, inconvenience, annoyance or
loss of business: provided, that Landlord shall not interfere with Tenant’s use of the Premises
any more than is reasonably necessary under the circumstances. Landlord shall do any such work
during ordinary business hours, and Tenant shall pay Landlord for overtime and for any other
expenses incurred if such work is done during other hours at Tenant’s request. Landlord may do or
permit any work to be done upon or along, and any use of, any adjacent or nearby building, land,
street, alley or way

     N Lock Box Agent: Landlord may from time to time designate a bank or other lock box agent
for the collection of amounts due Landlord. The date of any payment to such agent shall be the
date of such agent’s receipt of the payment (subject to actual collection of any check):
provided, that for purposes of this Lease, no such payment or collection shall be deemed
“accepted” by Landlord if Landlord mails a check in such amount to Tenant at the address set
forth on the Schedule within a reasonable period after such receipt or collection. The mailing
of such payment to Tenant shall be deemed to be a rejection of Tenant’s tender of such payment
for all purposes as of the date of the lock box agent’s receipt or collection of such payment,
without thereby waiving any default or any right or remedy of
Landlord.

     O. Other Rights. All other rights accruing to Landlord by operation of law or reserved
specifically or by inference by the Landlord pursuant to the provisions of this Lease.

     11. DEFAULT AND LANDLORD’S REMEDIES.

     A. Defaults. The occurrence of any of the following shall constitute a default
hereunder:

     (1) If Tenant defaults in the payment of Rent (whether Base Rent, Operating Cost Rent or
Additional Rent) or any other sum required to be paid by this Lease; provided, that Landlord
shall not be entitled to exercise its remedies set forth herein or at law or in equity with
respect to such default unless such default continues for a period of
five (5) days after /*1 the due date:

     (2) If Tenant defaults in the prompt and full performance or observance of any of Tenant’s
obligations or agreements as provided in this Lease (except those specified in Subsections (1).
(3). and (4) of this Section 11 A) or in any other agreement between Landlord and Tenant,
provided. that Landlord shall not be entitled to exercise its remedies set forth herein or at law
or in equity with respect to such default, (a) if such default is cured within ten (10) days
after written notice to Tenant (or immediately upon written notice if the default
involves a hazardous condition), or (b) with respect to a non-hazardous default which is curable
but cannot reasonably be cured within ten (10) days, if Tenant immediately commences to cure and
diligently proceeds to complete the cure of such default within a reasonable time period which
shall in no event extend beyond thirty (30) days after written notice to Tenant:

     (3) If Tenant abandons or vacates the Premises during the Term; or

     (4) If the leasehold interest of Tenant is levied upon under execution or is attached under
process of law, which levy or attachment continues for a period of thirty (30) days; or if Tenant
becomes insolvent or bankrupt or shall generally not pay its debts as they become due or shall
admit in writing its inability to pay its debts or shall make an assignment for the benefit of
creditors; or if any proceeding or other action shall be filed by or against Tenant seeking
reorganization, arrangement, adjustment, liquidation, dissolution or composition of Tenant or its
debts under any law relating to bankruptcy insolvency or relief of debtors, or seeking appointment
of a receiver, trustee, custodian or other similar official for it or any substantial part of its
property (provided, that no such proceeding or action shall constitute a default under this Lease
if Tenant shall vigorously contest the same by appropriate proceedings and the same shall be
vacated or dismissed within thirty (30) days after the date of filing): or if Tenant is a
corporation, partnership or other entity, Tenant shall be dissolved, liquidated or otherwise cease
to exist.

     B. Landlord’s Remedies.

     (1) Upon the occurrence of any one or more defaults by Tenant. Landlord may elect, at any
time thereafter by written notice to Tenant, to terminate this Lease and Tenant’s right to the
Premises as of the date set forth in the notice or without terminating this Lease, to terminate
Tenant’s right to possession of the Premises as of the date set forth in the notice. Upon any
termination of this Lease, whether by lapse of time or otherwise, or upon any termination of
Tenant’s right to possession without termination of the Lease. Tenant shall surrender possession
and vacate the Premises and deliver possession thereof to Landlord, and Tenant hereby authorizes
Landlord to enter into and upon the Premises with or without process of law, and to repossess the
Premises and to remove Tenant and all occupants and property therefrom using such force as may be
necessary without being deemed in any manner guilty of trespass, eviction or forcible entry or
detainer, and without relinquishing Landlord’s rights to Rent and/or damages for the balance of
the Term or any other right given to Landlord hereunder or by law or in equity. Landlord may
enforce its rights under this Lease in one action or in separate actions from time to time. Except
as otherwise provided in this Section 11 Tenant expressly waives the service of any notice of
intention to terminate this Lease or to reenter the Premises, any demand for payment of Rent or
possession, all present or future redemption rights, and any other notice or demand. Landlord and
Tenant each hereby waive trial by jury in any action, proceeding or counterclaim brought by either
party against the other on all matters arising out of this Lease, Tenant’s use or occupancy of the
Premises, or for recovery of the Premises or eviction. Tenant agrees not to interpose any
counterclaims (other than compulsory counterclaims) in any proceeding for recovery of the
Premises.

     (2) If Landlord elects to terminate Tenant’s right to possession only without terminating the
Lease, Landlord may at Landlord’s 

 

	 	 	 
	*1	 	written notice by Landlord to Tenant on the first two (2)
occasions during any calendar year and for a period of five (5) days after the due date on any
subsequent occasions during such calendar year.

-9-

 

option
enter into the Premises [ILLEGIBLE] and hold possession thereof as
set forth in Section [ILLEGIBLE] B(1)
without such entry and possession terminating the Lease or releasing
Tenant, in whole or in part,
from Tenant’s obligation to pay the Rent hereunder for the full
Term, and, at Landlord’s option,
the aggregate amount of the Base Rent and Operating Cost Rent (based upon the amount thereof for
the calendar month immediately preceding the month in which the default has occurred) for the
period from the date stated in the written notice terminating possession to the staled end of the
Term shall be immediately due and payable by Tenant to Landlord, together with any other monies due
hereunder, and Landlord shall have right to immediate recovery of all such amounts. In addition,
Landlord shall have the right from time to time, to recover from Tenant, and Tenant shall remain
liable for all Rent not theretofore accelerated and paid pursuant to the foregoing sentence and
any other sums thereafter accruing as they become due under this Lease during the period from the
date stated in the notice terminating possession to the stated end of
the Term. Upon and after
entry into possession without termination of the Lease, subject to Landlord’s right to first rent
other vacant areas in the Project, Landlord may relet the Premises or any part thereof for such
Rent, for such time (which may be a period extending beyond the stated Term of this Lease) and upon
such terms as Landlord in Landlord’s sole discretion shall determine. In any such case, Landlord
may make repairs, alterations and additions in or to the Premises and redecorate the same to the
extent deemed necessary or desirable by Landlord, and in connection therewith Landlord may change
the locks to the Premises, and Tenant shall upon written demand pay the cost thereof, together with
Landlord’s expenses of reletting. Any proceeds from the reletting of the Premises by Landlord shall
be collected by Landlord and shall first be applied against the costs and expenses of recently and of
reletting the Premises including, without limitation, all brokerage, advertising, legal,
alteration, redecoration, repair and other reasonably necessary costs and expenses incurred to
secure a new tenant for the Premises, and second to the payment of Rent herein provided to be paid
by the Tenant. If the consideration collected by Landlord upon any
such relating, after payment of
the expenses of relating the Premises, is not sufficient to pay any accelerated amounts of Rent due
and owing and to pay monthly the full amount of the Rent reserved in this Lease and not theretofore
accelerated. Tenant shall pay to Landlord the accelerated amounts upon demand, and the amount of each
monthly deficiency as it becomes due (as the case may be). If the consideration collected by
Landlord upon any such reletting for Tenant’s account after payment of the expenses of reletting
the Premises is greater than the amount necessary to pay accelerated amounts of Rent due and owing
and to pay the full amount of Rent reserved in this Lease and not theretofore accelerated, the full
amount of such excess shall be retained by Landlord and in no event shall be payable to Tenant. No
such reentry, repossession, repairs, alterations, additions or
reletting shall be construed as an
eviction of Tenant or as an election on Landlord’s part to terminate this Lease, unless written
notice of such intention is given to Tenant, or shall operate to release Tenant in whole or in part
from any of Tenant’s obligations hereunder. Notwithstanding any reentry or reletting by Landlord.
Landlord may at any time thereafter elect to terminate this Lease for such previous default.

     (3) If
Landlord elects to terminate this Lease. Landlord shall be entitled to recover from
Tenant all of the amounts of Rent accrued and unpaid for the period up in and including (the date
of the termination, as well as all other additional sums for which Tenant is liable, or in respect
of which Tenant has agreed to indemnify Landlord under any of the provisions of this Lease. which
may then be owing and unpaid, and all costs and expenses including, without limitation, court
costs and reasonable attorneys’ fees incurred by Landlord in the enforcement of rights and
remedies hereunder and in addition. Landlord, at its sole option, shall be entitled to recover
from. Tenant and Tenant shall pay to Landlord, on demand, as final and liquidated damages (and not
as a penalty), a sum equal to the amount of Landlord’s reasonable estimate of the aggregate
amount of Base Rent. Operating Cost Rent and Additional Rent that would be payable for the period
from the date of such termination through the Termination Date, reduced by the then reasonable
rental value of the Premises for the same period (as such reasonable rental value may be decreased
for Landlord’s reasonably anticipated costs, expenses and delays
in reletting the Premises). If
before presentation of proof of such liquidated damages to any court, all or any part of the
Premises shall have been refer by Landlord for all or any part of such period, the amount of Rent
payable upon such reletting  shall be deemed to be the reasonable
rentable value for the part or
the whole of the Premises elect during the term of the reletting.

     (4) Upon any default by Tenant under this Lease, Landlord may, but shall not be obligated to,
take any action to cure the default without waiving or releasing any obligation of Tenant or
preventing Landlord from pursuing any available remedy. All amounts paid or incurred by Landlord in
curing any default of Tenant or performing any of Tenant’s obligations under this Lease, and
reasonable attorneys’ fees in connection therewith, shall be paid by Tenant to Landlord as
Additional Rent on demand.

     (5) Notwithstanding anything in this Lease to the contrary, any and all remedies set forth in
this Lease (a) shall be in addition to any and all other remedies Landlord may have at law or in
equity and (b) shall be cumulative. The waiver by Landlord of any breach of any term, covenant or
condition herein contained shall only be effective if is in writing and shall not be deemed to be a
waiver of a continuing or subsequent breach of the same, or of any other term, covenant or
condition herein contained. The acceptance of Rent or any other amounts due hereunder shall not
be construed to be a waiver of any breach by Tenant of any term, covenant or condition of this
Lease, and if the same shall be accepted after the termination of this Lease, by lapse of time or
otherwise, or of the Tenant’s right of possession hereunder, or after the giving of any notice,
such acceptance shall not reinstate, continue or extend the Term of this Lease or affect any notice
given to Tenant prior to the receipt of such amounts, it being agreed that after the service of
notice or the commencement of a suit or after final judgment for possession of the Premises.
Landlord may receive and collect any Rent and other sums due, and the payment of the same shall
not waive or affect said notice, suit or judgment. No payment by Tenant or receipt by Landlord of a
lesser amount than the amount due hereunder shall be deemed to be other than on account of the
earliest portion thereof due, or as Landlord may elect to apply such payment, nor shall any
endorsement or statement on any check or letter accompanying a check for payment of Rent be deemed
an accord and satisfaction; and Landlord may accept such check or payment without prejudice to
Landlord’s right to recover the balance of such Rent or to pursue any other remedy provided in this
Lease, Unless otherwise agreed in writing, any partial payment of Rent which is accepted by
Landlord prior to or after commencement of an action to recover possession of the Premises shall be
applied to the balance due but shall not waive any of Landlord’s rights, or any action to recover
possession of the Premises, for nonpayment of the balance of the Rent owed Landlord.

     (6) Notwithstanding any provision in this Lease prohibiting Landlord from exercising its
rights if Tenant cures a default within a specified period of time, if Tenant shall default (a) in
the timely payment of Rent (whether any or all of Base Rent. Operating Cost

-10-

 

Rent or Additional Rent) two (2)
[illegible] more times in any period of twelve (12) consecutive months, or (b) in the performance of any
particular term, condition or covenant of this Lease two (2) or more times in any period of twelve
(12) consecutive months, then, notwithstanding that such defaults shall have each been cured within
any applicable cure period after notice, if any, as provided in this Lease, in connection with any
further similar default during such twelve-month period (including, without limitation, with
respect to non-payment of Rent, the further non-payment of any kind of Rent payable under this
Lease) Tenant shall not be entitled to any further cure period or notice, and Landlord shall have
the right to exercise all of the remedies provided in this Lease immediately after the occurrence
of such similar default.

     (7) In the event that Tenant shall File for protection under the Bankruptcy Code now or hereafter
in effect, or a trustee in bankruptcy shall be appointed for Tenant, Landlord and Tenant agree to
the extent permissed by law, to request that the debtor-in-possession or trustee in bankruptcy, if
one shall have been appointed, assume or reject this Lease within sixty (60) days thereafter.

     12. HOLDOVER. If Tenant holds over after the termination or
expiration of the Term without the written consent of Landlord (which may be withheld in Landlord’s
sole discretion), Tenant shall pay Base Rent and Operating Cost Rent at
/*1
twice the rate payable for
the month immediately preceding the holding over, computed on a daily basis for each day Tenant
thus remains in possession, and, in addition. Tenant shall pay Landlord all damages, consequential
as well as direct, sustained by reason of Tenant’s holding over. Alternatively, at the election of
Landlord by written notice to Tenant, such retention of possession shall constitute a renewal of
this Lease for a month-to-month tenancy at
/*2
twice the Base Rent and Operating Cost Rent for the
immediately preceding month, and Tenant shall continue to make all other payments required under
this Lease. Neither the acceptance of Rent by the Landlord after termination, nor the provisions of
this Section: (a) shall be construed as, or operate as, a renewal or as a waiver of landlord’s
right of reentry or right to regain possession by actions at law or in equity or by any other right
or remedy hereunder, or (b) shall be construed as, or operate as, a waiver of any other right or
remedy of Landlord.

     13. SUBORDINATION.

     A. This Lease is and shall be subject and subordinate to each mortgage or trust deed (“Mortgage”)
and each ground lease or other underlying lease (“Ground Lease”) new or hereafter in force with
respect to the Project at the election of the trustee or mortgagee under or holder of any Mortgage
(“Mortgagee”) or the lessor under any Ground Lease (“Lessor”), including, without limitation, any
amendment, renewal, modification, consolidation, replacement or extension thereof and all interest
thereon and advances thereunder. Any subordination at the election of any such Mortgagee or Lessor
shall be self-operative and no further instrument of subordination shall be required to make the
interest of such Mortgagee or Lessor superior to the interest of
Tenant hereunder. In confirmation
of such subordination, however, within ten (10) days after written request by Landlord. Tenant
shall, without charge, execute and deliver any necessary or useful instruments acknowledging the
subordination of this Lease as provided herein. Tenant shall not do anything that would constitute
a default under any Mortgage or Ground Lease, or omit to do anything that Tenant is obligated to do
under the terms of this Lease so as to cause Landlord to be in default thereunder. In the event of
the enforcement by any Mortgagee or Lessor of the remedies provided for by law or by such Mortgage
or Ground Lease (including, without limitation, a deed in lieu thereof). Tenant shall, at the
election and upon demand of any Mortgagee, Lessor or other person succeeding to the interest of
Landlord as a result of such enforcement (“Successor”), attorn, from time to time, to any such
Mortgagee, Lessor or Successor upon the then executory terms of this Lease provided, that any such
Mortgagee, Lessor or Successor shall not be bound by any payment of Rent for more than one month in
advance; bound by any amendment or modification of this Lease made without the consent of such
Mortgagee, Lessor or Successor subject in any offsets or defenses Tenant might have against any
prior landlord (including, without limitation, the then defaulting landlord): liable for any act or
omission of any prior landlord (including, without limitation, the then defaulting landlord): or
liable for any security deposit except to the extent held by such Mortgagee, Lessor or Successor.
The provisions of this Section 13 shall inure to the benefit of any such Mortgagee, Lesser or
Successor, shall apply notwithstanding that, as a matter of law, this Lease may terminate upon the
enforcement of any such Mortgage or Ground Lease, and shall be self-operative upon such election
and demand, and no further agreement shall be required to give effect to such provisions. Upon
request by such Mortgagee, Lessor or Successor, however Tenant shall execute and deliver any
instruments necessary or useful to confirm the attornment.

     B. Tenant agrees to give any Mortgagee or Lessor a copy of any notice of default served upon
Landlord, provided that prior to such notice Tenant has been notified in writing of the address of
such Mortgagee or Lessor. Tenant further agrees that if Landlord shall have failed to cure such
default within the lime provided for in this Lease, then such Mortgagee or Lessor shall have an
additional thirty (30) days within which to cure such default, or if such default cannot be cured
within that time, such Mortgagee or Lessor shall have such additional time as may be necessary to
cure such default: provided, that within such, thirty (30) days, any Mortgages or Lessor as the
case may be, has commenced and is diligently pursuing the cure of such default (including, without
limitation, commencement of foreclosure or lease forfeiture proceedings, if necessary to effect
such cure), and Tenant shall not pursue any of the remedies it may have for such default and this
Lease shall not be terminated while such cure is being diligently pursued, so long as the default
is cured within a reasonable time thereafter

     14. ASSIGNMENT
AND SUBLETTING.
/*3

     A. Tenant shall not, without the prior written consent of Landlord in each instance, (1) assign,
transfer, mortgage or encumber, or create or permit any lien upon, this Lease or any interest under
it, (2) allow to exist or occur any transfer of or lien upon this Lease or the Tenant’s interest
herein by operation of law, (3) sublet the Premises or any part thereof, or (4) permit the use or
occupancy of the Premises or any part thereof for any purpose not provided for under Section 6 or
by anyone other than Tenant and

 

			
	*1.	 	one hundred fifty percent (150%) of
	 
	*2.	 	one hundred fifty percent (150%) of
	 
	*3.	 	Sec Exhibit E, Section 34.

- 11 -

 

Tenant’s
employees. In no event shall this Lease on any interest herein be assigned
assignable by voluntary or involuntary bankruptcy proceedings or by operation of law or
otherwise, and in no event shall this Lease or any rights or privileges hereunder be an asset
of Tenant under any bankruptcy, insolvency or reorganization proceedings, except to the extent
provided by law.

     B. Consent
by Landlord to any assignment, subletting, use, occupancy, transfer or encumbrance
shall not operate to relieve
Tenant from any covenant, liability or obligation hereunder (whether past, present or
future), including, without limitation, the
obligation to pay Rent, except to the extent, if any, expressly provided for in such consent,
no shall such consent be deemed to be
a consent to any subsequent assignment, subletting, use, occupancy, transfer or encumbrance.
Tenant shall pay all of Landlord’s
reasonable costs, charges and expenses (including, without limitation, reasonable attorney’s
fees) incurred in connection with any
assignment, subletting, use, occupancy, transfer or encumbrance made or requested by Tenant.

     C. Tenant
shall, by notice in writing, advise Landlord of its intention from, on and after a stated date (which shall not be less
than sixty (60) days after the date of Tenant’s notice) to assign this Lease or sublet any
part or all of the Premises for the balance
or any part of the Term. Tenant’s notice shall include the name and address of the proposed
assignee or subtenant, a true and
complete copy of the proposed assignment or sublease, financial statements for the proposed
assignee or subtenant for the preceding
two (2) fiscal years and such additional information as Landlord deems reasonably necessary
concerning the financial responsibility
business and character of the proposed assignee or subtenant. Upon any request for
Landlord’s consent under this Section 14,
Landlord shall have the right, to be exercised by giving written notice to Tenant within
thirty (30) days after receipt of Tenant’s
notice (and any additional information reasonably requested by Landlord), to terminate this
Lease with respect to the space described
in Tenant’s notice as of the date stated in Tenant’s notice for the commencement of the
proposed assignment or sublease. If Tenant’s
notice covers all of the Premises and if Landlord exercises its right to terminate this Lease
as to the Premises, then the Term of this
Lease shall expire and end on the commencement date stated in Tenant’s notice as fully and
completely as if that date had been the
Termination Date. If, however, Tenant’s notice covers less than all of the Premises, and if
Landlord exercises its right to terminate
this Lease with respect to such space, then as of the commencement date stated in Tenant’s
notice, the Rent reserved herein shall
be adjusted on the basis of the number of rentable square feet of the Premises retained by
Tenant, such portion of the Premises shall
at Tenant’s expense be made a separately demised premises in compliance with all legal
requirements and with an appropriate
entrance separate from the Premises, and this Lease as so amended shall continue thereafter in
full force and effect. If Landlord
does not exercise its right to terminate as aforesaid. Landlord shall notify Tenant within
such thirty (30) day period whether Landlord
consents to the proposed assignment or sublease, which consent shall not be unreasonably
withheld; provided, that in no event shall
Landlord be required to consent to any assignment or sublease: (1) to a tenant or occupant, or
an Affiliate of a tenant or occupant,
in the Project or in another building owned by Landlord or an Affiliate of Landlord
(“Affiliate” means a person controlling,
controlled by or under common control with the designated person). (2) which may violate any
restrictions contained in any
mortgage, lease or agreement affecting the Project or Landlord. (3) which is not in compliance
with all of the terms of this Section
and this Lease, or (4) which may cause an excessive density of occupants or traffic or make
excessive demands on the Building
systems, services or facilities.

     D. Upon any assignment or sublease, fifty percent (50%) of the rent and other consideration
(“Excess Consideration”) received by Tenant in excess of the amount of Base Rent and Operating
Cost Rent payable to Landlord under this Lease, which amount is to be prorated where a part of the
Premises is assigned or subleased, shall be payable by Tenant to Landlord as Additional Rent
within ten (10) days after receipt thereof by Tenant from time to time.

     E. If Tenant shall assign this Lease as permitted herein, the assignee shall expressly assume
all of the obligations of Tenant hereunder and agree to comply with and be bound by all of the
terms, provisions and conditions of this Lease, in a written instrument satisfactory to Landlord
and furnished to Landlord not later than fifteen (15) days prior
to the effective date of the
assignment. If Tenant shall sublease the Premises as permitted herein. Tenant shall obtain and
furnish to Landlord, not later than fifteen (15) days prior to the effective date of such sublease
and in form satisfactory to Landlord, the written agreement of such subtenant that it shall comply
with and be bound by all of the applicable terms, provisions and conditions of this Lease and that
it will attorney to Landlord, at Landlord’s option and written request in the event this Lease
terminates before the expiration of the sublease.

     F. If any Tenant is a corporation whose stock is not publicly traded on a recognized national
stock exchange, a partnership or
other entity, any transaction or series of related or unrelated transactions (including,
without limitation, any dissolution, merger,
consolidation or other reorganization any withdrawal or admission of a partner or change in a
partner’s interest, or any issuance,
sale, gift, transfer or redemption of any capital stock of or ownership interest in such
entity, whether voluntary involuntary or by
operation of law or any combination of any of the foregoing transactions) resulting in the
transfer of control of such Tenant shall
be deemed to be an assignment of this Lease subject to the provisions of this Section 14. The
term “control” as used in this Section
14F means the power to directly or indirectly direct or cause the direction of the management
or policies of Tenant. Any transfer
of control of a subtenant which is a corporation or other entity shall be deemed an assignment
of any sublease. Notwithstanding
anything to the contrary in this Section 14F if the original Tenant under this Lease is a
corporation, partnership or other entity a
change or series of changes in ownership of stock or other ownership interests which would
result in direct or indirect change in
ownership of less than fifty percent (50%) of the outstanding stock of or other ownership
interests in such Tenant as of the date of
the execution and delivery of this Lease shall not be considered a change of control.

     G. Any assignment, subletting, use occupancy, transfer or encumbrance of this Lease or the
Premises without Landlord’s prior
written consent shall be of no effect and shall, at the option of Landlord, constitute a
default under this Lease.

     15. SALE BY LANDLORD. In the event of sale or conveyance or transfer by Landlord of
its interest in the Project or in the
Building or in this Lease, the same shall operate to release Landlord (subject to the last
sentence of Section 17 hereof) from any
future obligations and any future liability for or under any of the covenants or conditions,
express or implied herein contained in
favor of Tenant, and in such event, and with respect to such obligations, covenants and
conditions. Tenant agrees to look solely to the successor in interest of Landlord in and to this Lease. This Lease shall not be affected
by any such sale conveyance or transfer

     16. ESTOPPEL CERTIFICATE. Tenant shall, at the request of Landlord at any time and
from time to time upon not less than
ten (10) days prior written notice, without charge, execute, acknowledge in recordable form,
and deliver to Landlord (or to any
of Landlord’s Mortgagees, Lessors, auditors or prospective purchasers of the Project or any
part thereof) a certificate stating that

-12-

 

this Lease is unmodified and in full force and effect (or, if modified, stating the
nature of such modification and certifying that this Lease, as so modified, is in full force
and effect), and the dates to which the Rent and other charges are paid, and that Tenant is
paying Rent on a current basis with no offsets or claims, and there are not, to Tenant’s
knowledge, any uncured defaults on the part of Landlord (or specifying such offsets, claims or
defaults, if any are claimed). Such certificate may require Tenant to
specify the date of
commencement of Rent, the Commencement Date, the Termination Date, the Base Rent, current
Operating Cost Rent estimates, the rentable square feet in the Premises, the date to which
Rent has been paid, whether or not Landlord has completed any improvements required to be made
to the Premises and such other matters as may be reasonably required. Any such certificate may
be relied upon by any prospective purchaser or encumbrancer of all or any portion of the
Project, any Mortgagee or Lessor, auditor or any other person to whom it is delivered. The
failure to deliver such statement within the time required hereunder shall, without limiting
Landlord’s rights and remedies for such failure, be conclusive evidence, binding upon Tenant,
that this Lease is in full force and effect, without modification except as may be represented
by Landlord, that there are no uncured defaults by Landlord and that not more than one (1)
month’s Rent has been paid in advance, and the Tenant shall be estopped from asserting any
defaults known to it that time.

     17. SECURITY DEPOSIT. Tenant has deposited with Landlord the security deposit, if
any, set forth on the Schedule to secure Tenant’s performance of its obligations under this
Lease. If Tenant defaults, Landlord may, without prejudice to Landlord’s other remedies, apply
part or all of the security deposit to cure Tenant’s default, If Landlord so uses part or all of
the security deposit, then Tenant shall within ten (10) days after written demand, pay Landlord
the amount necessary to restore the security deposit to its original amount. Landlord may mix the
security deposit with its own funds, without payment of interest. Any part of the security
deposit not used by Landlord as permitted by this Section shall be returned to Tenant (or to the
last assignee of Tenant’s interest) at the expiration or termination of this Lease. The security
deposit is not an advance payment of Rent or a limitation on Landlord’s damages for any default
by Tenant. Upon any sale or transfer of Landlord’s interest in this Lease, Landlord shall
transfer the security deposit to Landlord’s successor in interest and shall thereupon be released
from all further liability for repayment of the security deposit.

     18. FORCE MAJEURE. Except as specifically provided to the contrary in this Lease,
this Lease and the obligation of Tenant to pay Rent hereunder and perform all of Tenant’s
covenants and agreements hereunder shall not be impaired nor shall Landlord be in default
hereunder because Landlord is unable to fulfill any of its obligations under this Lease, if
Landlord is prevented or delayed from so doing by any of the following (which shall be referred
to herein as a “Force Majeure”): any acts of God, casualty accident, breakage, repairs,
alterations, replacements, improvements, strike or labor troubles, shortages of labor or
materials, or any other similar or dissimilar cause whatsoever beyond the reasonable control of
Landlord, including, without limitation, energy shortages, governmental preemption in connection
with a national emergency, or by reason of governmental laws or any rule, order, regulation or
directive of any department, subdivision, agency or personnel thereof or by reason of the
conditions of supply and demand which have been or are affected by war or other emergency.
Further, Landlord shall not be deemed in default for failure to perform its obligations under
this Lease, (a) if such failure is cured within thirty (30) days after Tenant gives written
notice to Landlord of such alleged failure, or (b) with respect to a failure which reasonably
requires more than thirty (30) days to cure, if Landlord immediately commences to cure and
diligently proceeds to complete the cure of such failure within a reasonable time period, which
shall in no event, subject to Force Majeure, extend beyond ninety (90) days after written notice
to Landlord.

     19. PERSONAL PROPERTY AND TENANT FIXTURES. Tenant
hereby grants a security interest
to Landlord in all of Tenant’s personal property and fixtures situated and to be situated on the
Premises security for the payment of all Rent due on to become due hereunder. Said property shall
not be removed therefrom without the consent of Landlord until all Rent due or to become due
hereunder shall have first been paid and discharged. It is intended by the parties hereby that
this Locase constitutes a security agreement creating a security interest in and to such
property, subject to the liens of any existing creditors, and Landlord, upon default of Tenant in
the payment of Rent, shall have all the rights of a secured party, as provided in the Oklahoma
Uniform Commercial Code, as from time to time in effect. Tenant agrees to excute any financing
statements or other documents necessary or useful to perfect the security interest granted herein.
Landlord may at its option file a copy of this Lease as a financing statement.

     20. NOTICES.
All notices and approvals to be given by one party to the other party under this
Lease shall be given in writing by United States mail, delivery by a nationally recognized
overnight courier service or by personal delivery as follows: to Landlord at the address set forth
on the Schedule, or to such other person or at such other address designated by notice to Tenant;
and to Tenant at the address set forth on the Schedule, or to such other person or at such other
address designated by notice to Landlord. Mailed notices shall be sent by United States certified
or registered mail, return receipt requested, postage

prepaid, and shall be deemed to have been given upon posting in the United States mails. Notice by
nationally recognized overnight courier service shall be deemed given upon receipt by the
addressee or upon refusal by the addressee to accept delivery thereof. Notices by personal
delivery shall be deemed given upon personal delivery.

     21. QUIET POSSESSION. So long as Tenant shall observe and perform the covenants and
agreements binding on it hereunder. Tenant shall at all times during the Term and subject to the
provisions of this Lease peacefully and quietly have and enjoy the possession of the Premises
without any encumbrance or hindrance by, from or through Landlord, its successors or assigns.

     22. REAL
ESTATE BROKERS. Landlord and Tenant each represent that it has not dealt
with any real estate broker with
respect to this Lease, except for any broker set forth on the Schedule (whose commission, if
any, shall be paid by Landlord pursuant
to separate written agreement), and, to its knowledge, no other broker initiated or
participated in the negotiation of this Lease,
submitted or showed the Premises to Tenant or is entitled to any commission in connection with
this Lease. Tenant agrees to
indemnify and hold Landlord harmless from all claims, liability or expense (including, without
limitation, reasonable attorney’s fees)
for brokerage commissions or finder’s fees as
a result of Tenant’s actions or alleged actions.

     23. CONDEMNATION. If during the Term all or any part
of the Premises shall be taken by
eminent domain, this Lease shall
terminate as to the part so taken on the date Tenant is required to deliver possession to the
condemning authority. If this Lease is
not terminated as provided below. Landlord shall make such repairs and alterations as may be
necessary in order to restore the part
not taken to useful condition (excluding Tenant’s property and improvements made by Tenant);
and, effective upon the date of taking,

-13-

 

the Base Rent and Operating Cost Rent shall be reduced proportionately and equitably used
on the portion taken. If all or any portion of the Project or Premises are taken by eminent
domain so that the Premises cannot be reasonably used for Tenant’s Permitted Use, then at the
option of either party this Lease may be terminated effective as of the
date of the taking and all Rent reserved hereunder shall be paid to the date
of such taking. If any
condemnation proceeding shall be instituted in which it is sought to take or damage any part of the
Project, or if the grade of any street or alley adjacent to the Project is changed by any competent
authority and such taking, damage or change of grade in Landlord’s opinion substantially impairs
the use or operation of the Building or the Project, or makes it necessary or desirable to remodel
the Building or the Project. Landlord shall have the right to terminate this Lease upon not less
than ninety (90) days’ notice prior to the date of termination designated in the notice. All
compensation awarded for any taking of the fee and the leasehold shall belong to and be the
property of Landlord; provided, that so long as the same does not diminish the amount of the award
or consideration to Landlord for taking of real property interests. Tenant shall be entitled to
recover from the condemning authority any separate award for relocation or moving expenses, trade
fixtures and personal property Tenant is entitled to remove from the Premises, or loss of business.
The term “eminent domain” shall include the exercise of any similar governmental power and any
purchase or other acquisition in lieu of condemnation.

     24. LIMITATION OF LIABILITY. Tenant specifically agrees to look solely to Landlord’s
interest in the Project for the
recovery of any judgment against Landlord; it being agreed that Landlord (and if Landlord is a
partnership, its partners whether
general or limited; or if Landlord is a corporation, its directors, officers or shareholders:
or if Landlord is a trust, its trustees or
beneficiaries) shall never be personally liable for any such judgment. All such personal
liability for any representation, warranty,
covenant, undertaking or agreement under this Lease is hereby waived and released by Tenant
and by all persons claiming by,
through or under Tenant. The provisions of this Section are not intended to, and shall not,
limit any right that Tenant might
otherwise have to obtain injunctive relief against Landlord or Landlord’s successors in
interest or any suit or action in connection
with enforcement or collection of amounts which may become owing or payable under or on
account of insurance maintained by
Landlord.

     25. MISCELLANEOUS.

     A. Except as otherwise expressly set forth herein, wherever the consent or approval of
either Landlord or Tenant is required by the provisions of this Lease, such party shall not
unreasonably withhold or delay such consent or approval. Tenant hereby waives
any claim for damages, liability, abatement or set off against Landlord based upon any assertion
that Landlord has unreasonably withheld or delayed any consent or approval requested by Tenant
under this Lease, and Tenant’s sole remedy in any such case shall be an action or proceeding for
specific performance, injunction or declaratory judgment.

     B. All
amounts owed to Landlord hereunder for which the date of payment is not expressly
fixed herein, shall be paid as Additional Rent within ten (10) days after Landlord’s statement and
shall bear interest as provided in Section 2D(2) until paid.

     C. The
words “re-enter” and “reentry” as used in this Lease are not restricted to their technical
legal meaning. The term
“Landlord,” as used in this Lease, means only the landlord from time to time, and upon
conveying or transferring its interest, such
conveying or transferring landlord shall be relieved from any further obligation or liability
pursuant to Sections 13, 15 and 17 of
this Lease. Time is of the essence of this Lease and each and all of its provisions.

     D. Submission of this instrument for examination or signature by Tenant does not constitute a
reservation of or option or offer
for lease, and it is not effective as a lease or otherwise until execution and delivery by
both Landlord and Tenant.

     E. The invalidity or unenforceability of any provision hereof shall not affect or impair any
other provisions.

     F. This Lease shall be governed by and construed pursuant in the laws of the State of Oklahoma.

     G. Should any mortgagee require a modification of this Lease, which modification will not
bring about any increased cost or
expense to Tenant or in any other way substantially /*1 change the rights and obligations of
Tenant hereunder. Tenant agrees that this
Lease may be so modified. Within twenty (20) days after written request by Landlord. Tenant
shall furnish to Landlord a statement
of the current financial condition of Tenant in a form reasonably satisfactory to Landlord.

     H. In the event of any litigation or arbitration between Landlord and Tenant with respect to
the enforcement or interpretation of this Lease, the nonprevailing party shall pay the reasonable
costs and attorney’s fees of the prevailing party. Tenant shall pay all costs, charges and
expenses, including the reasonable fees of attorneys, agents and others retained by Landlord,
incurred by Landlord in any litigation, arbitration, negotiation or transaction in which Tenant
causes Landlord, without Landlord’s fault;. to become involved or concerned. /*2

     I. Captions or titles in this Lease are inserted as a matter of convenience and for
reference and in no way define, limit or describe the scope of this Lease nor any provision
thereof. Words and phrases used in the singular shall be deemed to include the plural and vice
versa, and nouns and pronouns used in any particular gender shall be deemed to include any other
gender If more than one person or entity signs this Lease as Tenant, each such Tenant
will be jointly and severally liable for all of the obligations of Tenant as provided in this
Lease. This Lease shall be construed without regard to any presumption or other rule requiring
construction against the party causing this Lease to be drafted. If any deletions are made from
this Lease form, this Lease shall be interpreted as if the deleted portion had never been part of
this Lease.

     J. All rights and remedies of Landlord under this Lease, or that may be provided by law may
be exercised by Landlord in its own name individually, or in its name by any agent thereof, and
all legal proceedings for the enforcement of any such rights or remedies, may be commenced and
prosecuted to final judgment and executed by Landlord in its own name individually or in its name
by any agent thereof. Landlord and Tenant each represents to the other that each has full power and
authority to execute this Lease and to make and perform the agreements herein contained.

 

			
	*1.	 	materially and adversely
	 
	*2.	 	See Exhibit E, Section 33.

-14-

 

     K. Nothing in this Lease shall be construed to prevent Landlord from paying for
services rendered or materials delivered with respect to the Project or to the Premises
(including, without limitation, management services and contracting out capital improvements or
other capital repairs or construction items) by Affiliates of Landlord provided that the fees or
costs of such services and materials are at market rates in the Oklahoma City metropolitan area.
All such fees or costs paid by Landlord to such Affiliates shall be deemed to constitute
Operating Costs on the same terms and conditions as if such fees and costs were paid to
non-Affiliates of Landlord.

     L. This
Lease (including, without limitation, all exhibits and riders attached hereto, all
of which are hereby made a part of this Lease and incorporated by this reference) constitutes the
entire agreement between the Landlord and the Tenant. Tenant acknowledges that it has not been
induced to enter this Lease by any promises, assurances, agreements, statements or
representations (collectively, “Representations”) which are not set forth in this Lease
(including, without limitation, any Representations concerning Operating Costs; the Premises; the
Project; the suitability of the Premises, proper zoning or availability of necessary permits and
authorizations for Tenant’s Permitted Use; exclusive rights; or any other matter). Tenant
acknowledges that it has not relied on any such Representations, agrees that no such
Representations shall be used in the construction or interpretation of this Lease and agrees that
Landlord shall have no liability for any consequences arising as a result of any such
Representations. No subsequent alteration, amendment, change, or addition to this Lease shall be
binding upon Landlord or Tenant unless in writing and signed by both parties.

     M. Landlord’s title is and always shall be paramount to the interest of Tenant, and nothing
herein contained shall empower Tenant to do any act which can, shall or may encumber Landlord’s
title. Tenant shall not record or file in any public records this Lease or any memorandum
thereof.

     N.
This Lease does not grant any rights to light or air over or about the Project. Landlord
specifically excepts and reserves to itself the use of any roofs, the exterior portions of the
Premises, all rights to and the land and improvements below the improved floor level of the
Premises, the improvements and air rights above the Premises and the improvements and air rights
located outside the demising walls of the Premises, and such areas within the Premises as are
required for installation of utility lines and other installations required to serve any occupants
of the Project and the right to maintain and repair the same, and no rights with respect thereto
are conferred upon Tenant unless otherwise specifically provided herein.

     O. Subject to the terms of Section 14,
 each provision of this Lease shall extend to and
shall, as the case may require, bind and inure to the benefit of Landlord and Tenant and their
respective heirs, legal representatives and successors and assigns.

     P. No rental or other payment for the use or occupancy of the
Premises shall be or is based
in whole or in part on the net income or profits derived by any person from the Building or the
Premises, and Tenant agrees it that will not enter into any sublease, license, concession or
other agreements for any use or occupancy of the Premises which provides for a rental other
payment for such use or occupancy based in whole or in part on the net income or profits derived
by any person from the Premises.

   IN WITNESS WHEREOF, the parties have executed this Lease as of the above date.

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT: 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	TEACHERS INSURANCE AND ANNUITY	 	 	 	RICKS EXPLORATION, INC.	 	 
	     ASSOCIATION OF AMERICA	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ MARK J. WOOD	 	 	 	By:	 	/s/ ART L. SWANSON	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	MARK J. WOOD
	 	 	 	Name:
	 	ART L. SWANSON	 	 
	Title:

	 	ASSISTANT SECRETARY
	 	 	 	Title:
	 	PRESIDENT	 	 

-15-

 

Exhibit A

Floor
Plan of the Premises

[Diagram]

	 	 	 
	Oklahoma
Tower

210 Park Avenue

Oklahoma City,
Oklahoma

	 	PLAN-LEVELS 25-31

     The Premises is located on floor 30 of the Project.

 

 

Exhibit A-1

Floor
Plan of the Expansion Space

[Diagram]

	 	 	 
	Oklahoma
Tower

210 Park Avenue

Oklahoma City,
Oklahoma

	 	PLAN-LEVELS 25-31

     The Expansion Space is located on floor 30 of the Project.

 

 

Exhibit A-2

Floor Plan of the
 Thirty-First Floor Refusal Space

[Diagram]

	 	 	 
	Oklahoma Tower

210 Park Avenue

Oklahoma City, Oklahoma

	 	PLAN-LEVELS 25-31

     The Thirty-First Floor Refusal Space is located on floor 31 of thc Project.

 

 

EXHIBIT “B” 

LEGAL DESCRIPTION

A tract or parcel of land located in Block 35, OKLAHOMA CITY ORIGINAL TOWNSITE, SE/4, Section 33,
T12N, R3W, I.M., Oklahoma County, Oklahoma, more particularly described as follows: Beginning at a
point on the North line of Block 35, OKLAHOMA CITY ORIGINAL TOWNSITE, which point is 145.00 feet
West of the N.E. corner of said Block 35; thence N 88°-32’-54” W along said North line of Block 35
a distance of 185.00 feet; thence S l°-27 ‘06” W a distance of 125.00 feet; thence S 88°-32’-54” E
a distance of 185.00 feet, thence N l°-27’06” E a distance of 125.00 feet to the point or place of
beginning.

 

 

EXHIBIT C

LEASEHOLD IMPROVEMENTS

(ALLOWANCE)

     1. Tenant Finish Allowance and Costs. Landlord shall provide an allowance
(“Tenant Finish Allowance”) not to exceed $21.50 per rentable square foot in the Premises (total
$333,594.00 based on 15,516 rentable square feet) or the actual cost, of such improvements,
whichever is less, to be applied to the total cost of constructing Tenant’s leasehold improvements
in the Premises (“Tenant Finish Costs”), including, without limitation: space planning and design
fees; architectural and engineering fees; required building permits; actual cost of labor,
materials, equipment and services; actual cost of Tenant signage; and the costs of removing,
modifying, relocating or making additions to any existing improvements to accommodate Tenant’s
space plan. Tenant Finish Costs shall exclude expenses in connection with services provided by
Tenant or Tenant’s employees; telephone, communications and computer equipment and wiring; and
personal property items such as decorations, an work, furniture, equipment, or trade fixtures not
permanently attached to the Premises.

The Tenant Finish Allowance shall be applied as follows:

(a) Up
to $232,740.00 of the Tenant Finish Allowance (based on $15.00 per rentable square
foot in the Premises) may be used for the initial improvement of the Premises;

(b) Any
unexpended portion of the initial $232,740.O0 of the Tenant Finish Allowance, plus
up to an additional $50,427.00 (based on $3.25 per rentable square foot in the Premises)
may be used during Months 61 through 96 of the Term; and

(c) Any unexpended portion of the initial $283,167.00 of the Tenant Finish Allowance, plus
up to an additional $50,427.00 (based on $3.25 per rentable square foot in the Premises)
may be used during Months 121 through 132 of the Term.

Any unused portion of the Tenant Finish Allowance may be carried forward, without interest, as
above provided, and the entire unused amount of the Tenant Finish Allowance shall automatically
terminate at the end of Month 132 of the Term without further credit or payment.

     2. Plans. Tenant shall promptly devote such time in consultation with Landlord
and Landlord’s architect (“Architect”) as necessary to finalize an initial plan (“Initial Plan”)
for Tenant’s leasehold improvements in the Premises (or, if the Initial Plan has been completed and
approved by Landlord and Tenant, such plan is attached hereto as Exhibit C-1). If not included in
the Initial Plan and if necessary for the performance of Landlord’s Work (as hereafter defined),
Landlord shall cause to be prepared final architectural and engineering plans, specifications and
working drawings for Tenant’s leasehold improvements in the Premises (“Architectural Plans”) based
on the Initial Plan. Tenant shall, within five (5) business days after written request, furnish to
Landlord such information as necessary to enable the Architect and Landlord’s engineer (“Engineer”)
to prepare the Initial Plan and any necessary Architectural Plans, The information to be furnished
by Tenant shall include, without limitation:

(a) Any requirements of the Tenant for the Premises which are in excess of or otherwise vary
in any respect from Building standard items, and all critical dimensions.

(b) Special loading, such as the location of and requirements for file cabinets or special
equipment.

(c) Openings in the walls or floors.

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(d) Special
heating, ventilating, air conditioning, electrical, sprinkler, lighting,
security system, or plumbing work.

(e) Location and dimensions of telephone equipment areas, and location of telephone
and electrical outlets, switches and lights.

(f) Partitions — locations and type, including doors and hardware, windows, glass
partitions and special framing or support.

(g) Special cabinet work and other millwork items.

(h) Variations to standard cciling heights.

(i) Location and color selection of painted areas.

(j) Location and selection of floor covering and wall coverings.

(k) Location and type of any kitchen equipment.

(l) Such additional information as reasonably specified by Landlord.

Within five (5) business days after the completed Architectural Plans have been submitted to
Tenant. Tenant shall provide Landlord with Tenant’s written approval of such Architectural Plans
(or Tenant’s disapproval with a written explanation of any changes required therein) and shall
redeliver the Architectural Plans to Landlord for Landlord’s final approval. If Landlord or
Tenant do not approve any of the Architectural Plans, the parties shall promptly revise such plans
and resubmit such plans until the same are approved by Landlord and Tenant. Unless otherwise
specified in the Architectural Plans, Landlord’s Work shall be constructed with Building standard
materials (or comparable substitute materials designated by Landlord) in amount, type and quality;
and Tenant shall promptly make any necessary selections. If final
Architectural Plans are included in the Initial Plan or are unnecessary to perform the work, the term “Architectural Plans”
as used herein shall mean the Initial Plan and any supplemental plans and specifications approved
by Landlord and Tenant. All costs and expenses relating to the preparation or review of the
Initial Plan and the Architectural Plans, and any changes thereto or revisions thereof, shall be
included in the Tenant Finish Costs and shall be paid as provided in Section 3 of this Exhibit.

     All plans and specifications for any work in the Premises or the Project (whether Landlord’s
Work, Additional Work, or any work performed by Tenant as hereafter provided) shall be subject to
Landlord’s prior written approval, which approval shall not be unreasonably withheld. Landlord
may withhold its approval of any plans or specifications if, in Landlord’s reasonable opinion, the
work would: involve a structural revision to the Project; adversely affect the market value or
appearance of the Project; violate Landlord’s criteria for those portions of the Premises which are
visible from the common areas or from the exterior of the Project; adversely affect the strength,
structural integrity or safety of the Project; adversely affect the proper functioning and
efficiency of the systems of the Project; violate any requirements of applicable law or of any
holder of a mortgage on or insurer of the Project (or require Landlord to perform any work or incur
any expense in connection therewith); adversely affect any other rentable space in the Project or
increase the expense of operating the Project; not be in keeping with the character of the Project;
or involve a substantial risk of delaying the performance of Landlord’s Work due to unavailability
or shortages of labor or materials, extra lead or performance time or other requirements for the
work. The foregoing reasons are not exclusive, and Landlord may reasonably withhold its approval
for other similar or dissimilar reasons. Landlord may disapprove any plans in part, reserve
approval of any items pending its review and approval of other plans, and condition its approval
upon Tenant making revisions to the plans or supplying additional information. Any review or
approval of any

C-2 

 

plans or work by Landlord is solely for its benefit, and without any representation, warranty or
liability to Tenant or any other person with respect to the adequacy, correctness or sufficiency
thereof, the fitness for any purpose, compliance with applicable legal requirement or otherwise.

     Except as otherwise provided herein and in the Lease, Landlord will provide the Premises to
Tenant in its existing condition, “as is.” The leasehold improvements which presently exist in the
Premises may be used in connection with Tenant’s leasehold improvements. All existing leasehold
improvements which are: (a) salvaged during any demolition of existing leasehold improvements: and
(b) not reincorporated into the Premises during the construction of Landlord’s Work, will remain
the property of Landlord and will be delivered to Landlord in reusable condition, to the
extent reasonably practicable, free from an claim thereby by Tenant.

     3. Payment. Subject to the terms of Section 1. Landlord shall pay an amount not to
exceed the Tenant Finish Allowance toward the Tenant Finish Costs for Landlord’s Work, and Tenant
shall pay for all Tenant Finish Costs in excess of the Tenant Finish Allowance (“Excess Costs”) as
Additional Rent as hereafter provided.

     Subsequent to the execution of the Lease by Landlord and Tenant and promptly after Landlord’s
approval of the Architectural Plans, Landlord will extend an invitation to bid on the construction
to no fewer than three (3) and no more than five (5) potential general contractors selected by
Landlord. The potential general contractors will be allowed no fewer than seven (7) and no more
than ten (10) days to submit their bids on the construction from the date the invitations to bid
are extended. As soon as reasonably practicable after bids are received from the potential general
contractors, Landlord will examine the bids and will select the lowest bid which, in Landlord’s
reasonable judgment, will most accurately complete the construction in accordance with the Final
Architectural Plans.

     Before commencing Landlord’s Work, Landlord shall provide to Tenant a written proposal
(“Tenant Cost Proposal”) for the total Tenant Finish Costs for Landlord’s Work. If the Tenant
Cost Proposal is more than the Tenant Finish Allowance, Landlord and Tenant will either; (a)
approve in writing the Tenant Cost Proposal and the amount of any Excess Costs: or (b) revise
Landlord’s Work as necessary to reduce the Tenant Cost Proposal to no more than the Tenant Finish
Allowance plus such amount of Excess Costs as may be approved by Landlord and Tenant. Tenant shall
give immediate attention to the Tenant Cost Proposal and respond to any requests from Landlord
within five (5) business days. Within five (5) business days after submission to it of the final
Tenant Cost Proposal and Architectural Plans, Tenant shall authorize Landlord in writing to proceed
with Landlord’s Work, and Tenant also shall pay to Landlord the estimated amount of any Excess
Costs (or shall provide security satisfactory to Landlord for payment of such Excess Costs) No
work shall be commenced until Tenant has complied with the requirements of this Section. Once the
final Tenant Cost Proposal and Architectural Plans have been approved by Landlord and Tenant,
Landlord’s Work and the Tenant Cost Proposal shall not be changed except by written change order
approved by Landlord and Tenant or as otherwise provided in this Exhibit; and in any such case,
Landlord shall deliver to Tenant a revised Tenant Cost Proposal indicating the revised total for
Excess Costs, if any. Within five (5) business days after submission to Tenant of the revised
Tenant Cost Proposal, Tenant shall authorize Landlord in writing to proceed with Landlord’s Work as
so revised and shall pay to Landlord any additional estimated amount of Excess Costs (or shall
provide security satisfactory to Landlord for payment of such Excess Costs); and Landlord shall not
be required to proceed further with the work until Tenant has complied with the requirements of
this Section. Any unpaid balance of Excess Costs shall be paid to Landlord by Tenant within thirty
(30) days of Landlord’s statement following substantial completion of Landlord’s Work.

     4. Landlord’s Work. As Landlord’s Work, Landlord shall cause its contractor to
construct leasehold improvements in the Premises substantially in accordance with the Initial Plan
and any Architectural Plans approved by Tenant and Landlord as provided in Section 2 of this
Exhibit. Any work required by Tenant in addition to Landlord’s Work shall be constructed at
Tenant’s expense by Landlord as Additional Work as provided

C-3 

 

in Section 5 of this Exhibit or by Tenant pursuant to Section 7 of this Exhibit in a manner that
does not interfere with Landlord’s Work or other work in the Project.

     Following compliance with Sections 2 and 3 of this Exhibit, Landlord shall obtain a building
permit and, subject to the other terms and conditions of this Exhibit and the Lease, shall proceed
diligently to cause Landlord’s Work to be substantially completed. It is expressly understood that
all work to be done in the Premises shall be subject to approval by Landlord and that no work shall
be undertaken in the Premises until such approval is given in writing.

     For purposes of this Exhibit, “substantial completion” means: (i) completion of Landlord’s
Work except for minor finishing and punchlist activity which docs not materially interfere with
Tenant’s use and occupancy of the Premises; and (ii) issuance of any necessary municipal
certificate of occupancy Within thirty (30) days after the Commencement Date of the Lease, the
parties shall inspect the Premises, have all systems demonstrated, and prepare a punchlist of
incomplete or defective details of construction. Landlord will use reasonable diligence to
promptly complete the punchlist items after Tenant provides the punchlist to Landlord. A
certificate signed by the Architect that Landlord’s Work has been substantially completed or
finally completed shall be conclusive and binding on the parties.

     5. Additional Work. Except to the extent described in this Exhibit or in the
Lease, Landlord has no
obligation to do or pay for any work to the Premises (or any plans or spccifications relating
thereto). If Tenant
shall require other work or materials (“Additional Work”) in the Premises in addition to
Landlord’s Work, Tenant
shall deliver to Landlord for its approval final Architectural Plans for such Additional Work
at or before the time
Tenant is required pursuant to Section 2 of this Exhibit to deliver Tenant’s written approval
of the Architectural
Plans for Landlord’s Work. If Landlord does not approve of the Architectural Plans for the
Additional Work, as
delivered by Tenant. Landlord shall advise Tenant generally of the changes required in such
Plans so that they will
meet with Landlord’s approval. Tenant shall cause the Architectural Plans for the Additional
Work to be revised
and delivered to Landlord for its final review and approval within five (5) business days
after Tenant’s receipt of
such advice or Tenant shall be deemed to have abandoned its request for such Additional Work.
All Architectural
Plans for the Additional Work (together with any changes to the Architectural Plans for the
Landlord’s Work
which may be required as a result thereof) shall be prepared and completed at Tenant’s sole
cost and expense.

     Landlord
shall furnish Tenant with written estimates of the cost of the Additional Work within
fifteen (15) business days after receipt by Landlord of the Architectural Plans for the Additional
Work. If Tenant approves such written estimates. Tenant shall authorize Landlord in writing to
proceed with the Additional Work within seven (7) business days after Tenant’s receipt of the
estimates, and Tenant shall also pay to Landlord the estimated cost of such Additional Work (or
shall provide security satisfactory to Landlord for payment of the cost of such Additional Work).
If Tenant fails to comply with such requirements within seven (7) business days after receipt of
the written estimates. Landlord shall not be authorized or required to proceed with any Additional
Work; and Tenant shall be deemed to have abandoned its request therefor. If, however, Tenant
complies with such requirements within said seven (7) day period and makes all payments when
required herein. Landlord agrees to cause the Additional Work to be performed by Landlord’s
contractors. Any unpaid balance of the cost of the Additional Work shall be paid by Tenant to
Landlord within thirty (30) days of Landlord’s statement following substantial completion of such
Additional Work. If Landlord is not required to perform Additional Work as provided in this
Section 5. the alterations and improvements to be made to the Premises by Landlord prior to the
commencement of the Term of the Lease shall be limited to Landlord’s Work.

     6.
Commencement of Rent. The Commencement Date of the Lease shall not occur and
Tenant’s
obligation to pay Rent under the Lease shall not commence until Landlord has substantially
completed all of
Landlord’s Work: provided, however, that if Landlord is delayed in substantially completing
Landlord’s Work as
a result of any one or more of the following (“Tenant Delay”):

C-4 

 

(a) Tenant’s
failure to devote the time or furnish all or any of the information or
approvals required under Section 2 of this Exhibit in connection with the Initial Plan or
the Architectural Plans for Landlord’s Work, or to furnish the approvals or make the
payments within the time periods specified in Section 3 of this Exhibit; or

(b) Tenant’s failure to furnish Architectural Plans for any Additional Work, or revisions
thereto, as required hereby, or Tenant’s failure to approve cost estimates or make the
payments for the Additional Work within the time periods specified in Section 5 of this
Exhibit; or

(c) Tenant’s request for materials, finishes or installations other than Building standard
items; or

(d) Tenant’s changes in the Landlord’s Work, in the Architectural Plans relaing thereto, or
in the Architectural Plans for the Additional Work (notwithstanding Landlord’s approval of
any such changes); or

(e) Any other act or omission by Tenant or its employees, contractors, or agents;

then and in any such event, Landlord shall cause the Architect to certify the date on which
Landlord’s Work would have been completed but for any Tenant Delay, and the Commencement Date and
Tenant’s obligation to pay Rent under the Lease shall occur and commence as of such date, and shall
not otherwise be affected or deferred on account of such delay. Additionally, Tenant shall
indemnify Landlord against any additional cost in completing Landlord’s Work and other damages to
Landlord caused by any Tenant Delay

     7. Access By Tenant Prior To Commencement Of Term. Landlord, in Landlord’s
discretion, may permit Tenant and Tenant’s agents to enter the Premises prior to the Commencement
Date of the Lease upon reasonable notice during business hours to make the Premises ready for
Tenant’s use and occupancy. Any such permission shall constitute a license only, and such license
shall be conditioned upon: (a) Tenant working in harmony and not interfering with Landlord and
Landlord’s agents, contractors, workers, and suppliers in doing Landlord’s Work or Additional Work,
if any or, with other work in the Project, other tenants and occupants of the Project, or the
general operation of the Project; (b) Tenant obtaining Landlord’s prior written approval of the
proposed contractors; and (c) Tenant depositing with Landlord in advance of any work, in form and
substance reasonably satisfactory to Landlord, (i) security reasonably satisfactory to Landlord for
the lien-free completion thereof, (ii) plans and specifications for such work, (iii) any necessary
permits or licenses, and (iv) certificates of insurance (with coverages and amounts satisfactory
to Landlord and naming Landlord and its management company and mortgagee as additional insured) and
instruments of indemnification as Landlord may reasonably require against claims and liabilities
which may arise out of such entry or work. Such pre-term access shall be subject to scheduling by
Landlord. Landlord shall have the right to withdraw such license upon twenty-four (24) hours’
written notice to Tenant for reasonable cause prior to the commencement of the Term of the Lease.
Tenant agrees that Landlord shall not be liable in any way for any injury, loss or damage which may
occur to any of Tenant’s property placed or installations made in the Premises prior to the
commencement of the Term of the Lease, the same being at Tenant’s sole risk; and Tenant agrees to
indemnify, defend and save harmless Landlord from all liabilities, costs, damages, fees and
expenses arising out of or connected with the activities of Tenant or its agents, contractors,
suppliers or workmen in or about the Premises or the Building prior to the commencement of the Term
of the Lease Any entry or work by or on behalf of Tenant under this Section shall be subject to
all of the terms and conditions of the Lease, including without limitation Sections 5A and B
thereof. If such entry or work causes extra costs to Landlord or extraordinary use of Project
services, Tenant shall reimburse Landlord for such extra costs or extraordinary services within
thirty (30) days after landlord’s statement.

     8.
Telephones/Wiring. Tenant shall at its expense install and maintain all telephone
and communications wiring and equipment from the service access point in the Project to and within
the Premises, and arrange directly

C-5 

 

with the telephone company and suppliers of its choice for all service and connections. The
installation of all telephone, communications, computer, security, and other wiring and equipment
shall be subject to Landlord’s prior written consent as provided in this Exhibit or in Section 5 of
the Lease.

     9.
Thirtieth Floor Common Areas. The common areas and the handicapped-accessible
restroom on the
thirtieth (30th) floor of the Project shall be remodeled by Landlord at its expense Such
construction, to the extent
reasonably practicable, shall coincide with the performance of Landlord’s Work.

     10. Miscellaneous. This Exhibit shall be incorporated into and considered as a part
of the Lease.
Unless otherwise indicated herein, capitalized terms used in this Exhibit shall have the
meanings assigned to them
in the Lease. The terms and provisions of this Exhibit are intended to supplement and are
specifically subject to
all the terms and provisions of the Lease. This Exhibit may not be amended or modified except
in a writing
signed by Landlord and Tenant. In no event shall any rights of Tenant hereunder be
transferable or assignable to
any party except to a permitted assignee of all of Tenant’s
rights under the Lease. All sums
due hereunder from
Tenant shall be deemed Additional Rent for purposes of the Lease, and upon any default
hereunder, Landlord
shall have all of the rights and remedies provided for in the Lease as well as all remedies
otherwise available to
Landlord, including, without limitation, the right to suspend work hereunder or to withhold
delivery of possession
of the Premises until any such default is cured. This Exhibit shall not create a contractual
relationship of any kind
between any persons other than Landlord and Tenant. Except as otherwise 2greed in the Lease
or any amendment
thereof, this Exhibit shall not apply to any space added to the initial Premises at any lime
nor to any extension or
renewal of the Lease, whether pursuant to any option or right under the Lease or otherwise.

C-6 

 

EXHIBIT D

RULES AND REGULATIONS

     1. The sidewalks halls, passages, elevators and stairways shall not be obstructed by Tenant
or used for any purpose other than for ingress to and egress from the Premises. The halls,
passages, entrances, elevators, stairways, balconies and roof are not for the use of the general
public, and Landlord shall in all cases retain the right to control and prevent access thereto of
all persons whose presence in the judgment of Landlord shall be prejudicial to the safety,
character, reputation and interest of the Building and its tenants, provided, that nothing herein
contained shall be construed to prevent such access to persons with whom Tenant normally deals in
the ordinary course of its business unless such persons are engaged in illegal activities. Tenant
and its employees shall not go upon the roof of the Building without the written consent of the
Landlord.

     2. The windows, doors and vents which admit light and air info the common areas of the
Building shall not be obstructed, and no bottles, parcels, plants or other articles will be placed
on any window sills.. The toilet rooms, water and wash closets and other water apparatus shall not
be used for any purpose other than that for which they were constructed, and no foreign substance
of any kind whatsoever shall be thrown therein, and the expense of any breakage, stoppage or
damage, resulting from the violation or this rule shall be borne by the tenant who, or whose
agents, employees, or visitors, shall have caused it.

     3. If Landlord, by a notice in writing to Tenant, shall object to any curtain, blind, shade
or screen attached to or hung in, or used in connection with, any window or door of the Premises,
such use of such curtain, blind, shade or screen shall be discontinued forthwith by Tenant No
awnings shall be permitted on any part of the Premises.

     4. No safes or other objects heavier than the lift capacity of the freight elevators of the
Building shall be brought into or installed on the Premises. Tenant shall not place a load upon
any floor of the Premises which exceeds the load per square foot which such floor was designed to
carry and which is allowed by law. The moving of safes shall occur only between such hours as may
be designated by, and only upon previous notice to, the manager of the Building, and the persons
employed to move safes in or out of the Building must be acceptable to Landlord. No freight,
furniture or bulky matter of any description shall be received into the Building or carried into
the elevators except during hours and in a manner approved by Landlord.

     5. Tenant shall not use, keep or permit to be used or kept any foul or noxious gas or
substance in the Premises, or permit or suffer the Premises to be occupied or used in a manner
offensive or objectionable to Landlord or other occupants of the Building by reason of noise,
odors, and/or vibrations, or interfere in any way with other tenants or those having business
therein, nor shall any animals or birds (except Seeing Eye Dogs) be brought into or kept in or
about the Building. Tenant shall not place or install any antennae or aerials or similar devices
outside of the Premises.

     6. Tenant shall not use or keep in the Building any inflammables, including but not limited
to kerosene gasoline, naphtha and benzine (except cleaning fluids in small quantities and when in
containers approved by the Board of Underwriters), or explosives or any other articles of
intrinsically dangerous nature, or use any method of heating other than that supplied by Landlord.

     7. If Tenant desires telephone or telegraph connections or alarm systems, Landlord will
direct electricians as to where and how the wires are to be introduced. No boring or cutting for
wires or otherwise shall be made without specific directions from Landlord.

     8. Tenant, upon the termination of the tenancy, shall deliver to the Landlord all the keys of
offices, rooms and toilet rooms which shall have been furnished Tenant or which Tenant shall have
had made, and in the event of loss of any keys so furnished shall pay the Landlord therefor

D-1 

 

     9. Tenant Shall not put down any Door covering in the Premises without the Landlord’s prior
approval of
the manner and method of applying such floor covering.

     10. Except during Operating Hours for the Building (from 8:00 a.m. to 6:00 p.m. Monday
through Friday and from 8:00 a.m. to 1:00 p.m. Saturdays, holidays
excepted), access to the
Building, or to the halls, corridors, elevators or stairways in the Building, or to the Premises
may be refused unless the person seeking access is known to the watchman of the Building in charge
and has a pass or is properly identified Landlord shall in no case be liable for damages for the
admission to or exclusion from the Building of any person whom the Landlord has the right to
exclude under Rule 1 above in case of invasion, mob, riot, public excitement, or other commotion,
Landlord reserves the right to prevent access to the Building during the continuance of the same
by closing the doors or otherwise, for the safety of the tenants or Landlord and protection of
property in the Building.

     11. Tenant assumes full responsibility for protecting its space from theft, robbery and
pilferage which includes keeping doors locked and windows and other means of entry to the Premises
closed.

     12. Tenant shall not alter any lock or install a new or additional lock or any bolt on any
door of the Premises
without prior written consent of Landlord. If Landlord shall give its
consent, Tenant shall
in each case furnish
Landlord with a key for any such lock

     13. In advertising or other publicity, without Landlord’s prior written consent, Tenant shall
not use the name of the Building except as the address of its business and shall not use pictures
of the Building.

     14. Tenant shall no; make any room to room canvass to solicit business from other tenants in
the Building: and shall not exhibit, sell or offer to sell, use rent or exchange in or from the
Premises unless ordinarily embraced within the Tenant’s use of the Premises specified herein.

     15. Tenant shall no; waste electricity, water or air conditioning and agrees to cooperate
fully with Landlord to assure the most effective operation of the Building’s heating and air
conditioning, and shall not allow the adjustment (except by Landlord’s authorized building
personnel) of any controls other than room thermostats installed for Tenant’s use. Tenant shall
keep corridor doors closed and shall not open any windows.

     16. Tenant shall not do any cooking in the Premises or engage any coffee cart service.

     17. Any wallpaper or vinyl fabric materials which Tenant may install on painted walls shall
be applied with a strippable adhesive. The use of non strippable adhesives will cause damage to
the walls when materials are removed, and repairs made necessary thereby shall be made by Landlord
at Tenant’s expense.

     18. Tenant shall provide and maintain hard surface protective mats under all desk chairs
which are equipped with casters to avoid excessive wear and tear to carpeting. If Tenant fails to
provide such mats, the cost of carpel repair or replacement made necessary by such excessive wear
and tear shall be charged to and paid for by Tenant.

     19. Tenant will refer all contractors, contractor’s representatives and installation
technicians, rendering any
service to Tenant, to Landlord for Landlord’s supervision, approval, and control before
performance of any
contractual service. This provision shall apply to all work performed in the Building
including installations of
telephones, telegraph equipment, electrical devices and attachments and installations of any
nature affecting floors,
walls, woodwork, trim, windows, ceilings, equipment or any other physical portion of the
Building.

     20. Movement in or out of the Building of furniture, office equipment or other bulky
materials, or
movement through the Building entrances or lobby shall be restricted to hours designated by
Landlord. All such
movements shall be under supervision of Landlord and in the manner agreed between Tenant and
Landlord by
prearrangement before performance Such prearrangement initiated by Tenant will include
determination by Landlord

D-2 

 

and subject to its decision and control, of the time, method and routing of movement, limitations
imposed by safety or other concerns which may prohibit any article, equipment or any other item
from being brought into the Building. Tenant is to assume all risk as to damage to articles moved
and injury to persons or public engaged or not engaged in such movement, including equipment,
property, and personnel of Landlord if damaged or injured as a result of acts in connection with
such service performed for Tenant and Tenant hereby agrees to indemnify and hold harmless Landlord
from and against any such damage, injury, or loss, including attorney’s fees.

     21. No portion of Tenant’s area or any other part of the Building shall at any time be used
or occupied as sleeping or lodging quarters.

     22. Landlord will not be responsible for lost or stolen personal property, equipment, money,
or jewelry from Tenant’s area or any public rooms regardless of whether such loss occurs when such
area is locked against entry or not.

     23. Employees of Landlord shall not receive or carry messages for or to any tenant or other
persons, nor contract with or render free or paid services to any tenant or tenant’s employees, or
invitees in the event any of Landlord’s employees perform any such services, such employee shall
be deemed the agent of Tenant regardless of whether or how payment is arranged for services and
Landlord is expressly relieved from any and all liability in connection wish any such services and
any associated injury or damage to person or property.

     24. Tenant and its employees, agents, and invitees shall observe and comply with the driving
and parking signs and markers on the property surrounding the Building.

     25. Tenant shall net place, install, or operate on the Premises or in any pan of the
Building, any coffee making device or equipment without the prior written consent of Landlord.

     26. Tenant shall give prompt notice to Landlord of any accidents to or defects in plumbing,
electrical
fixtures, or heating apparatus so that such accidents or defects may
be attended to promptly.

     27. The directories of the Building shall be used exclusively for the display of the name and
location of the
tenants only and will be provided at the expense of Landlord. Any additional names requested
by Tenant to be
displayed in the directories must be approved by Landlord and, if approved, will be provided
at the sole expense of
Tenant.

     28. No vending machines of any description shall be installed, maintained or operated in any
part of the Building without the written consent of Landlord.

     29. Landlord reserves the right to make such other and reasonable rules and regulations as in
its judgment may from time to time be needed for the safety, care and cleanliness of the Building,
and for the preservation of good order therein.

D-3 

 

EXHIBIT E

ADDITIONAL PROVISIONS

     This Addendum is made a part of the Lease (“Lease”) between TEACHERS INSURANCE AND ANNUITY
ASSOCIATION OF AMERICA (“Landlord”) and RICKS EXPLORATION, INC. (“Tenant”), and the following
additional terms shall supersede any contrary terms in the Lease.

     26. EXPANSION OPTION. Tenant shall have the option (“Expansion Option”) at any time
during the period beginning on the date of full execution of this Lease and ending at 5:00 p.m. on
November 1, 1999 (“Expansion Period”), to expand the Premises to include all or any portion of the
space located on the thirtieth (30th) floor of the Project as shown on the attached Exhibit A-l
(collectively, “Expansion Space”) as follows

A.
To exercise the Expansion Option, Tenant shall give Landlord written notice of exercise
(“Tenant’s Exercise Notice”) during the Expansion Period identifying the location and
approximate rentable square feet of the portion of the Expansion Space to be provided
(“Subject Expansion Space”). The exact location and size of the Subject Expansion Space
shall be reasonably approved by Landlord subject to applicable legal requirements and
reasonable third-party, market leasing considerations. Time is of the essence with respect
to Tenant’s Exercise Notice.

B.
If Tenant exercises the Expansion Option, the Subject Expansion Space shall be added to
and become part of the Premises for the remaining Term of this Lease (including any renewal
or extension thereof) on all of the terms and conditions of this Lease, except that:

(1) The Subject Expansion Space shall be added to the Premises effective on the
earlier of
(“Delivery Date”): (a) the date agreed by the parties in writing; or (b) sixty (60)
days after Tenant’s Exercise Notice is given. Landlord shall not be liable nor
shall this Lease be impaired for any delay or inability to deliver the Subject
Expansion Space for reasons beyond Landlord’s control.

(2) Commencing on the Delivery Date and continuing during the remaining Term (a)
Tenant shall pay Base Rent for the Subject Expansion Space at the same rate per
rentable square foot as then payable for the Premises pursuant to Section 4 of the
Schedule to this Lease and subject to the same increases as provided in said Section
4; and (b) Tenant’s Proportionate Share pursuant to Section 2 of this Lease shall be
adjusted appropriately to take into account the rentable square feet in the Subject
Expansion Space, and Operating Cost Rent shall thereafter be payable at the same
rate per rentable square foot as then payable for the Premises, with the same Base
Year as specified in the Schedule to this Lease and subject to the same adjustments
as provided in this Lease.

(3) The Subject Expansion Space shall be provided in an “as is” condition; except
that Landlord shall provide a Tenant Finish Allowance equal to (a)
$21.50 per rentable square foot in the Subject Expansion Space, minus (b) $0. 12 per rentable
square feet in the Subject Expansion Space for each month of the Term that has
expired as of the Delivery Date. The Tenant Finish Allowance shall be payable on
the same terms and conditions as provided in Section 1 of Exhibit C to this Lease,
including the deferral of the sum of $3.25 per rentable square foot until Months 61
through 96 of the Term and an additional $3.25 per rentable square foot until Months
121 through 132 of the Term. All leasehold improvements shall be performed
substantially in accordance with the provisions of Exhibit C to this Lease.

(4) As of the Delivery Date, the term “Premises” shall be deemed to refer to and
include the Subject Expansion Space, except as expressly provided otherwise in this
Lease.

C. In case of a partial exercise of the Expansion Option, the Expansion Option shall
continue with respect to any remaining portion of the Expansion Space until the end of the
Expansion Period, at which time the Expansion Option shall automatically terminate.

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D. Tenant’s right to exercise the Expansion Option is subject to the condition
that, at the time that Tenant gives Tenant’s Exercise Notice and on the
Delivery Date, Tenant is not in default under any of the terms or conditions
of this Lease. Further, the Expansion Option shall automatically terminate
upon the earliest to occur of (1) the expiration or termination of this Lease;
(2) the termination of Tenant’s right to possession of the Premises; (3) the
assignment of this Lease by Tenant or the sublease by Tenant of all or any
part of the Premises except to a Tenant Affiliate as defined in Section 34
below; or (4) the expiration of the Expansion Period.

E.
Within ten (10) days after written request by either party, Landlord and
Tenant shall execute and deliver an instrument in form reasonably satisfactory
to Landlord and Tenant confirming any exercise or termination of the Expansion
Option.

     27. THIRTIETH_FLOOR REFUSAL RIGHT. To the extent that Tenant does not exercise its
Expansion Option under Section 30 above with respect to all of the Expansion Space, Tenant
shall have a right of first refusal (“Thirtieth Floor Refusal Right”) on any remaining
portion of the Expansion Space (collectively, “Thirtieth Floor Refusal Space”) beginning at
5:01 p.m. on November 1, 1999, as follows:

A. If Landlord shall receive a bona fide offer to lease all or any portion of
the Thirtieth Floor Refusal Space which Landlord is willing to accept,
Landlord shall give written notice thereof to Tenant (“Landlord’s ROFR
Notice”), which notice shall describe the applicable portion of the Thirtieth
Floor Refusal Space (“Subject Thirtieth Floor Refusal Space”). To exercise the
Thirtieth Floor Refusal Right, Tenant shall give Landlord written notice of
exercise (“Tenant’s Exercise Notice”) within five (5) business days after
Landlord’s ROFR Notice is given. Tenant may only exercise the Thirtieth Floor
Refusal Right as to all of the Subject Thirtieth Floor Refusal Space. Time is
of the essence with respect to Tenant’s Exercise Notice.

B. If Tenant exercises the Thirtieth Floor Refusal Right with respect to the
Subject Thirtieth Floor Refusal Space, such space shall be added to and become
part of the Premises for the remaining Term of this Lease (including any
extensions or renewals thereof) on all of the terms and conditions of this
Lease, except that:

(1) The Subject Thirtieth Floor Refusal Space shall be added to the
Premises effective on the earlier of (“Delivery Date”): (a) the date
agreed by the parties in writing; or (b) sixty (60) days after
Landlord’s ROFR Notice is given. Landlord shall not be liable nor
shall this Lease be impaired for any delay or inability to deliver the Subject Thirtieth Floor Refusal
Space for reasons beyond Landlord’s control.

(2) Commencing on the Delivery Date and continuing during the
remaining Term: (a) Tenant shall pay Base Rent for the Subject
Thirtieth Floor Refusal Space at the same rate per rentable square
foot as then payable for the Premises pursuant to Section 4 of the
Schedule to this Lease and subject to the same increases as provided
in said Section 4; and (b) Tenant’s Proportionate
Share pursuant to Section 2 of this Lease shall be adjusted appropriately to take into
account the rentable square feet in the Subject Thirtieth Floor
Refusal Space, and Operating Cost Rent shall thereafter be payable at
the same rate per rentable square foot as then payable for the
Premises, with the same Base Year as specified in the Schedule to this
Lease and subject to the same adjustments as provided in this Lease.

(3) The Subject Thirtieth Floor Refusal Space shall be provided in an
“as is” condition; except that Landlord shall provide a Tenant Finish
Allowance equal to (a) $21.50 per rentable square foot in the Subject
Thirtieth Floor Refusal Space, minus (b) $0.12 per rentable square
feet in the Subject Thirtieth Floor Refusal Space for each month of
the Term that has expired as of the Delivery Date. The Tenant Finish
Allowance shall be payable on the same terms and conditions as
provided in Section 1 of Exhibit C to this Lease, including the
deferral of the sum of $3.25 per rentable square foot until Months 61
through 96 of the Term and an additional $3.25 per rentable square
foot until Months 121 through 132 of the Term. All leasehold
improvements shall be performed
substantially in accordance with the provisions of Exhibit C to this
Lease.

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(4) As of the Delivery Date, the term “Premises” shall be deemed to refer
to and include the Subject Thirtieth Floor Refusal Space, except as
expressly provided otherwise in this Lease.

The
Thirtieth Floor Refusal Right shall apply to the first lease and only
the first lease for the Subject Thirtieth Floor Refusal Space. If Tenant fails to timely or
properly exercise the Thirtieth Floor Refusal Right, Tenant shall have no further
rights with respect to the Subject Thirtieth Floor Refusal Space, unless the Lease
that was the subject of Landlord’s ROFR Notice is not actually executed within one
hundred eighty (180) days after Landlord’s ROFR Notice is given, in which case
Tenant shall have the Thirtieth Floor Refusal Right with respect to the next
proposed lease for such Thirtieth Floor Refusal Space. The Thirtieth Floor Refusal
Right shall continue with respect to any remaining Thirtieth Floor Refusal Space on
which such right has not terminated.

C.
Tenant’s right to exercise the Thirtieth Floor Refusal Right
with respect to
any portion of the Thirtieth Floor Refusal Space is subject to the condition that,
at the time that Tenant delivers Tenant’s Exercise Notice and on the Delivery Date.
Tenant is not in default under any of the terms or conditions of this Lease.
Further, the Thirtieth Floor Refusal Right shall automatically terminate upon the
earliest to occur of (1) the expiration or termination of this Lease; (2) the
termination of Tenant’s right to possession of the Premises; (3) the assignment of
this Lease by Tenant or the sublease by Tenant of all or any part of the Premises
except to a Tenant Affiliate as defined in Section 34 below; or (4) the failure of
Tenant to timely or properly exercise the Thirtieth Floor Refusal Right.

D. Within ten (10) days after written request by either party, Landlord and Tenant
shall execute and deliver an instrument in form reasonably satisfactory to Landlord
and Tenant confirming any exercise or termination of the Thirtieth Floor Refusal
Right.

     28. THIRTY-FIRST FLOOR REFUSAL RIGHT. Tenant shall have a right of first refusal
(“Thirty-First Floor Refusal Right”) on approximately 8,650 rentable square feet on the
thirty-first (31st) floor of the Project as shown on the attached Exhibit A-2 (collectively,
“Thirty-First Floor Refusal Space”), as follows:

A. If Landlord shall receive a bona fide offer to lease all or any portion of the
Thirty-First Floor Refusal Space which Landlord is willing to accept, Landlord
shall give written notice thereof to Tenant (“Landlord’s ROFR Notice”), which
notice shall describe (1) the applicable portion of the Thirty-First Floor Refusal
Space (“Subject Thirty-First Floor Refusal Space”); (2) the estimated date of
availability (“Target Delivery Date”); (3) the term, and (4) the Rase Rent.
Operating Cost Rent, tenant improvements or allowance, concessions, and other
economic terms of the offer. To exercise the Thirty-First Floor Refusal Right,
Tenant shall give Landlord, written notice of exercise (“Tenant’s Exercise Notice”)
within five (5) business days after Landlord’s ROFR Notice is given. Tenant may
only exercise the Thirty-First Floor Refusal Right as to all of the Subject
Thirty-First Floor Refusal Space. Time is of the essence with respect to Tenant’s
Exercise Notice.

B. If Tenant exercises the Thirty-First Floor Refusal Right with respect
to the Subject Thirty-First Floor Refusal Space, such space shall be added
to and become part of the Premises on all of the terms and conditions of
this Lease, except that:

(1) The Subject Thirty-First Floor Refusal Space shall be added to the
Premises effective on the earlier of (the “Delivery Date”): (a) the date
agreed by the parties; or (b) the date on which Landlord delivers
possession of the Subject Thirty-First Floor Refusal Space to Tenant in the
condition provided in Landlord’s ROFR Notice (which, without Tenant’s
consent, shall not be sooner than the Target Delivery Date). Landlord shall
not be liable nor shall this Lease be impaired for any delay or inability
to deliver the Subject Thirty-First Floor Refusal Space for reasons beyond
Landlord’s control.

(2) The Base Rent, Operating Cost Rent, tenant improvements or allowance,
concessions, other economic terms, and the term specified in Landlord’s
ROFR Notice shall apply with respect to the Subject Thirty-First Floor
Refusal Space

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(3) The Subject Thirty-First Floor Refusal Space shall be delivered to Tenant in the
condition as provided in the third party offer, and the provisions of Exhibit C of
this Lease shall not apply.

(4) As of the Delivery Date, the term “Premises” shall be deemed to refer to and
include the Subject Thirty-First Floor Refusal Space, except as expressly provided
otherwise in this Lease.

The Thirty-First Floor Refusal Right shall apply to the first lease and only the first
lease for the Subject Thirty-First Floor Refusal Space, If Tenant fails to timely or
properly exercise the Thirty-First Floor Refusal Right, Tenant shall have no further rights
with respect to the Subject Thirty-First Floor Refusal Space, unless the Lease that was the
subject of Landlord’s ROFR Notice is not actually executed within one hundred eighty (180)
days after Landlord’s ROFR Notice is given, in which case Tenant shall have the
Thirty-First Floor Refusal Right with respect to the next proposed lease for such
Thirty-First Floor Refusal Space. The Thirty-First Floor Refusal Right shall continue with
respect to any remaining Thirty-First Floor Refusal Space on which such right has not
terminated.

C. Tenant’s right to exercise the Thirty-First Floor Refusal Right with respect to any
portion of the Thirty-First Floor Refusal Space is subject to the condition that, at the
time that Tenant delivers Tenant’s Exercise Notice and on the Delivery Date. Tenant is not
in default under any of the terms or conditions of this Lease. Further, the Thirty-First
Floor Refusal Right shall automatically terminate upon the earliest to occur of (1) the
expiration or termination of this Lease; (2) the termination of Tenant’s right to
possession of the Premises; (3) the assignment of this Lease by Tenant or the sublease by
Tenant of all or any part of the Premises except to a Tenant Affiliate as defined in Section
34 below; or (4) the failure of Tenant to timely or properly exercise the Thirty-First
Floor Refusal Right.

D.
Within ten (10) days after written request by either party, Landlord and Tenant shall
execute and deliver an instrument in form reasonably satisfactory to Landlord and Tenant
confirming any exercise or termination of the Thirty-First Floor Refusal Right.

E.
Notwithstanding anything to the contrary contained herein, the Thirty-First Floor
Refusal Right shall exclude and be subject to the existing, superior right and option under
the lease with Short Wiggins Margo & Adler (“Short Wiggins”) with respect to approximately
2,000 rentable square feet on the west side and 909 rentable square
feet on the east side
of the Thirty-First Floor Refusal Space (the “Short Wiggins Space”); and in case any
portion of the Short Wiggins Space is leased to Short Wiggins, Tenant shall thereafter have
no further rights with respect to such space.

     29. PARKING. Landlord shall use reasonable, good faith efforts to facilitate the
procurement of the following parking:

A. At Tenant’s expense, a reserved thirty-three (33) parking space block on the upper level
of the Galleria Public Parking Garage throughout the Term.

B. At no charge, but only so long as and to the extent Landlord is able to provide the
same, one (1) parking space in the loading dock area of the Project. Tenant acknowledges
that Landlord’s rights in the loading dock area are pursuant to and subject to the terms
and conditions of certain easement agreements, and that a potential dispute exists
regarding parking in such area. In no event shall Landlord be required to incur any cost
or liability in connection with such parking space. In case any dispute arises regarding
such parking space, Tenant shall discontinue such use upon written request by Landlord, and
Landlord shall use reasonable, good faith efforts to facilitate the procurement of a
reserved parking space in the Galleria Garage, such space to be as close to the Project as
can be reasonably achieved.

The foregoing parking is subject to availability, and Landlord shall have no responsibility or
liability if such parking is unavailable for any reason at any time.

     30. SECTION 2D(2). SUBSTITUTE THE FOLLOWING:

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If Tenant fails to pay any Base Rent. Operating Cost Rent or Additional Rent within five (5) days
from the date due. Tenant shall pay to Landlord interest on such amount from the date due until the
date paid at an annual rate equal to the lesser of: (1) the highest lawful rate, or (2) a variable
annual rate equal to the “Wall Street Journal Prime Rate” plus six percent (6%). The term “Wall
Street Journal Prime Rate” means the rate publicly announced in the Wall Street Journal from time to
time as the prime rate, with each change in the interest rate to become effective on the date the
corresponding change in the Wall Street Journal Prime Rate becomes effective. The payment of such
interest shall not excuse or cure any default of Tenant under this Lease, or limit any right or
remedy of Landlord.

     31. SECTION 2D(4). ADD THE FOLLOWING:

The
computation and allocation of Operating Costs to the Premises shall be in accordance with
sound accounting and management practices and shall be made on the same basis as Landlord’s
allocation of Operating Costs to other office space in the Project.

     32. SECTION 8E. ADD THE FOLLOWING:

Subject to Section 8B and except to the extent caused by the negligence or willful misconduct of
Tenant, or its officers, directors, agents and employees, Landlord hereby agrees to indemnify,
defend and hold harmless Tenant and its officers, directors, agents, and employees against any
claims or liability for damage to person or property (or for loss or misappropriation of property)
arising from any breach or default on the part of Landlord during the Term of this Lease or from
any negligent act or omission of Landlord or of any employee, agent, or contractor of Landlord, and
from any costs relating thereto (including, without limitation, reasonable attorneys’ fees);
provided, that the indemnification obligation under this Section shall exist and be enforceable
only to the extent such damage or loss is collectable under Landlord’s insurance policies.

     33.
SECTION 25H. ADD THE FOLLOWING:

Landlord shall pay all costs, charges and expenses, including the reasonable attorneys’ fees,
incurred by Tenant in any litigation, arbitration, negotiation or transaction in which
Landlord causes Tenant, without Tenant’s fault, to become involved or concerned.

     34. SECTION 14. ADD THE FOLLOWING:

11. Notwithstanding anything to the contrary contained in Section 14, Landlord shall consent to an
assignment or sublease of all or part of the Premises by the original named Tenant to any person or
entity that controls, is controlled by, or is under common control with such Tenant or which is
controlled by the owners of more than 50% of the outstanding stock of Tenant as of the date of the
execution and delivery of this Lease (collectively, “Tenant Affiliate”) so long as (1) Tenant is
not in default hereunder; (2) Tenant remains liable for all obligations under this Lease and
Tenant’s net worth immediately after the assignment or sublease, determined in accordance with
generally accepted accounting principles consistently applied, would be no less than its net worth
as of the date of this Lease (or if Tenant ceases to exist as a result of or following the
transaction, the Affiliate must assume, in a document reasonably satisfactory to Landlord, all of
Tenant’s obligations under this Lease and must have a net worth immediately after the transaction,
determined in accordance with generally accepted accounting principles consistently applied, no
less than Tenant’s net worth as of the date of this Lease); (3) the nature and character of the use
of the Premises remain the same; (4) Tenant and the assignment or sublease shall otherwise comply
with the terms of Section 14 (except no payment shall be due for any Excess Consideration under
Section 14D).

E-5

 

Amendment
No. One to Lease Agreement

     AGREEMENT, made as of September 25, 1998, between Teachers Insurance and Annuity Association
of America (“Landlord”) and Ricks Exploration, Inc. (“Tenant”)

     A. Landlord and Tenant are currently parties to a written lease dated April 8, 1998 (“Initial
Lease”), relating to the premises (“Initial Premises”) consisting of approximately 15,516 rentable
square feet on the thirtieth (30th) floor of the building commonly known as Oklahoma Tower, 210
Park Avenue, Oklahoma City, Oklahoma (the “Project”).

     B. The Initial Lease has not previously been amended or modified.

     C. Landlord and Tenant desire to expand the Premises and to otherwise amend the Lease as
provided in this Amendment.

     FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which are expressly acknowledged,
Landlord and Tenant hereby agree as follows:

     1. Effect. The Lease is hereby amended to the extent necessary to give effect to this
Amendment, and the terms of this Amendment shall supersede any contrary terms in the Lease. All
references in the Lease to “this Lease” shall be deemed to refer to the Lease as amended by this
Amendment. In all other respects, the terms and conditions of the Lease shall remain unmodified
and in effect. Unless otherwise defined herein, capitalized terms shall have the same meaning as
provided in the Lease.

     2. Term. The Term of the Lease for Space A shall be twenty-four (24) months
commencing on October 1, 1998, and ending on September 30, 2000 (“Space A Term”), on all of the
terms and conditions of the Lease except as provided in this Amendment Any reference in the Lease
to the Term of the Lease shall be deemed to also refer to and include the Space A Term, except as
expressly provided otherwise in the Lease or this Amendment.

     3. Premises. As of the Delivery Date (as defined below), the Premises shall be
amended and expanded by adding to the Initial Premises approximately 3,168 rentable square feet on
the thirtieth (30th) floor of the Project as shown on the attached Exhibit 1 (“Space A”), so that
the Premises shall thereafter consist of approximately 18,684 rentable square feet (all of the
thirtieth floor) in the Project. Except as expressly provided otherwise in this Amendment or in
the Lease, Space A shall be added to and become part of the Premises for the Space A Term
(including any extension thereof) on all of the terms and conditions of the Lease, and any
reference in the Lease to the Premises shall thereafter be deemed to also refer to and include
Space A.

     4. Delivery
Date. Space A shall be added to the Premises effective on October 1,
1998 (the “Delivery Date”)

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     5
Rent.

     A. Base Rent for the Initial Premises during the remaining initial Term of the Lease shall be
paid as provided in the Lease.

     B. Commencing on the Delivery Date and continuing during the Space A Term (of the Lease),
Tenant shall pay Base Rent for Space A at an annual rate per rentable square foot, payable in
advance in monthly installments as follows:

	 	 	 	 	 	 	 	 	 
	 	 	Annual Rate	 	 
	Period	 	Per Square
Foot	 	Monthly

Installment
	October 1, 1998, through July 31, 2000
	 	$	9.00	 	 	$	2,376.00	 
	 
	 	 	 	 	 	 	 	 
	August 1, 2000, through September 30, 2000
	 	$	10.00	 	 	$	2,640.00	 

     C. Commencing on the Delivery Date and continuing during the Space A Term of the Lease (1)
Tenant’s Proportionate Share of Operating Costs shall be adjusted appropriately to take into
account the number of rentable square feet in Space A, and (2) Operating Cost Rent thereafter shall
be payable for Space A at the same rate per rentable square foot as then payable for the Initial
Premises and subject to the same adjustments as provided in the Lease

     D. Rent for Space A shall be paid at the same time and in the same manner as provided in the
Lease for payment of Rent for the Initial Premises. If the Delivery
Date is not the first day of a
calendar month, the Base Rent and Operating Cost Rent for Space A for such partial month shall be
prorated daily and paid in advance.

     6. Leasehold
Improvements. Tenant agrees to accept Space A in its present condition,
“as-is,” with no obligation for Landlord to do or pay for any leasehold improvements or plans.
Subject to the terms of Section 5 of the Initial Lease, Tenant shall cause leasehold improvements
to be constructed in Space A at Tenant’s expense substantially in accordance with the leasehold
improvements constructed in the Initial Premises pursuant to the Initial Lease.

     7.
Tenant’s Representations. Tenant hereby represents to Landlord that there has been
no assignment of the Lease and no sublease of all or any portion of the Premises, there are no
existing defenses or offsets which Tenant has against enforcement of the Lease, and Landlord and
Tenant are not in default under the Lease.

     8. Brokers. Landlord and Tenant each represents that it has not engaged or dealt with
any real estate broker, agent or finder with respect to this Amendment, except for Price Edwards &
Company representing Landlord (whose commission, if any, shall be paid by Landlord pursuant to a
separate written agreement). Landlord and Tenant shall indemnify and hold each other

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harmless from all claims, liability or expense (including reasonable attorney’s fees) in
connection with any claim for broker’s, finder’s or other fees or commissions as a result of such
party’s actions or alleged actions.

     9. Expansion
Option. Notwithstanding the addition hereby of Space A to the Premises
or anything to the contrary set forth in this Lease, the Expansion Option granted to Tenant in the
Initial Lease shall remain in effect in accordance with the provisions of Section 26 of the
Initial Lease. In the event Tenant exercises the Expansion Option during the Expansion Period,
then in accordance with Section 26E of the Initial Lease, Landlord and Tenant shall execute and
deliver an instrument in form reasonably satisfactory to Landlord and Tenant confirming such
exercise of the Expansion Option and amending the Lease accordingly.

     10. Entire
Agreement. The Lease, including, without limitation, this Amendment and
all exhibits which are attached hereto and hereby incorporated by reference, constitutes the
entire agreement between Landlord and Tenant with respect to the subject matter hereof. Tenant
acknowledges that it has not been induced to enter into this Amendment by any agreements or
representations which are not set forth in this Amendment. This Amendment shall not be effective
until execution and delivery by both Landlord and Tenant.

     By signing this Amendment, the parties agree to the above terms.

	 	 	 	 	 	 	 	 	 	 	 
	Landlord:	 	 	 	Tenant:	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Teachers Insurance and Annuity	 	 	 	Ricks Exploration, Inc.	 	 
	Association of America	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	By	 	/s/ Mark J. Wood	 	 	 	By	 	/s/ Art L. Swanson	 	 
	 	 	 

Mark J. Wood, Assistant Secretary	 	 	 	 	 	 

Art L. Swanson, President	 	 

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Exhibit I

Floor Plan of Space A

[Diagram]

	 	 	 
	Oklahoma Tower	 	PLAN-LEVELS 25-31
	210 Park Avenue

Oklahoma City, Oklahoma
	 	

Space A is located on floor 30 of the Project.

 

 

Amendment No. Two to Lease Agreement

     THIS
AMENDMENT NO. TWO TO LEASE AGREEMENT (“Amendment No 2”) is
made this 15th day of March
2001, between OKT Investors, L.L.C., an
Oklahoma limited liability company, successor to Teachers Insurance and Annuity Association
of America (“Landlord”) and Ricks Exploration, Inc., an Oklahoma corporation (“Tenant”).

R E C I T A L S:

     A. Landlord and Tenant are currently parties to a written lease dated April 8, 1998
(“Initial Lease”), relating to the premises (“Initial Premises”) which consists of
approximately 15,516 rentable square feet on the thirtieth (30th) floor of the Building
commonly known as Oklahoma Tower, 210 Park Avenue, Oklahoma City, Oklahoma (the “Project”);

     B. The Lease has not previously been amended or modified, except by Amendment No. One to
Lease Agreement dated September 25, 1998 (“Amendment
No. 1”), which expanded the Initial
Premises to include Space A, which consists of approximately 3.168 rentable square feet on
the thirtieth (30th) floor of the Building (the Initial Lease and Amendment No. 1 are herein
referred to collectively as the “Lease,” and the Initial Premises and Space A are herein
referred to collectively as the “Premises”); and

     C. Landlord and Tenant desire to extend the Space A Term, expand the Premises to include
Space B (hereafter defined), and to otherwise amend the Lease as provided in this Amendment
No. 2.

     NOW; THEREFORE, for valuable consideration, the receipt and sufficiency of which are
expressly acknowledged, Landlord and Tenant hereby agree as follows:

1. Effect. The Lease is hereby amended to the extent necessary to give effect to this
Amendment No. 2, and the terms of this Amendment No. 2 shall supersede any contrary terms in
the Lease. All references in the Lease to “the Lease” or “this Lease” shall be deemed to
refer to the Lease as amended by this Amendment No 2. In all other respects, the terms and
conditions of the Lease shall remain unmodified and in effect. Unless otherwise defined
herein, capitalized terms shall have the same meaning as provided in the Lease

2. Term. The Space A Term is hereby extended for one (1) period of one hundred
forty-nine (149) months commencing on March 1, 2001, and ending on July 31, 2013 (“Space A
Extension Term”), on all of the terms and conditions of the Lease except as provided in this
Amendment No.
2. Any reference in the Lease to the Term of the Lease shall be deemed to also refer to and
include the Space A Extension Term, except as expressly provided otherwise in the Lease or
this Amendment No. 2. The Term of the Lease for Space B shall be sixty (60) months commencing
on June 1, 2001, and ending on May 31, 2006 (“Space B Term”), on all of the terms and
conditions of the Lease except as provided in this Amendment No. 2. Any reference in the Lease
to the Term of the Lease shall be deemed to also refer to and include the Space B Term, except
as expressly provided otherwise in the Lease or this Amendment No. 2

3. Premises. As of the Space B Delivery Date (as defined below), the Premises shall
be amended and expanded by adding approximately 5,254 rentable square feet located on the
eighth (8th) floor of the Project, as shown on the attached Exhibit 1 (“Space B”), so that
thereafter the Premises shall consist of approximately 23,938 rentable square feet in the
Project. As of the Space B Delivery Date, except as expressly provided otherwise in this
Amendment No. 2 or in the

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Lease, Space B shall be added to and become part of the Premises for the Space B Term (including
any extension thereof) on all of the terms and conditions of the Lease, and any reference in the
Lease to the Premises shall thereafter be deemed to refer to and include Space B.

4. Delivery Date. Space B shall be added to the Premises effective on the earlier of (the
“Space B Delivery Date”): (a) June 1, 2001, or (b) the date Tenant occupies Space B; provided, that
if Landlord has not substantially completed Landlord’s Work in Space B pursuant to Section 6 of
this Amendment No 2 by June 1, 2001, or if Landlord is unable to deliver possession of Space B by
June 1, 2001, for any other reason beyond Landlord’s control, except for delays caused by Tenant
Delay (as defined in Exhibit 2 to this Amendment No. 2), the Space B Delivery Date for the purposes
of this Amendment No. 2 shall be postponed until substantial completion of Landlord’s Work in Space
B and Tenant’s obligation for payment of Base Rent for Space B shall be postponed until the date on
which Landlord delivers possession of Space B; Landlord shall not be liable for any loss, damage,
or expense arising in any manner from any such delay, this Lease as it pertains to Space B shall
remain in effect during the period of any such delay, and the Space B Term shall be automatically
extended to include sixty (60) full calendar months after the Space B Delivery Date, plus, if the
Space B Delivery Date is not the first day of a calendar month, the partial month in which the
Space B Delivery Date occurs; and the Space B Term shall end on the last day of the final full
calendar month of the Space B Term as so extended

5. Rent.

     A. Base Rent for the Initial Premises during the remaining initial Term of the Lease shall
be paid as provided in the Lease.

     B. Commencing on March 1, 2001, and continuing thereafter during the Space A
Extension Term, Tenant shall pay Base Rent for Space A at an annual rate per rentable square
foot, payable in advance in monthly installments as follows.

	 	 	 	 	 	 	 	 	 
	 	 	Annual Rate	 	Monthly
	Period	 	Per Square Foot	 	Installment
	March 1, 2001, through July 31, 2002 (17 months)
	 		$10.00	 	 		$2,640.00	 
	August 1, 2002, through July 31, 2006 (48 months)
	 		$12.25	 	 		$3,234.00	 
	August 1, 2006, through July 31, 2009 (36 months)
	 	 	$13.00	 	 		$3,432.00	 
	August 1, 2009, through July 31, 2011 (24 months)
	 	 	$15.00	 	 		$3,960.00	 
	August 1, 2011, through July 31, 2013 (24 months)
	 	 	$16.00	 	 		$4,224.00	 

     C. Commencing on the Space B Delivery Date and continuing during the Space B Term, Tenant shall pay
Base Rent for Space B at an annual rate of $13.50 per rentable square foot, payable in
advance in sixty (60) equal monthly installments of $5,910 75 on the first day of each month.

     D. Commencing on the Space B Delivery Date and continuing during the Space B Term: (a)
Tenant’s Proportionate Share of Operating Costs shall be adjusted appropriately to take
into account the total number of rentable square feet in Space B, (b) the Base Year for
Operating Costs for Space B pursuant to Section 2 of the Lease shall be the calendar year 2001, and
(c) Operating Cost Rent shall thereafter be payable for Space B as determined pursuant to Section 2 of the Lease.

-2-

 

     E. Rent for Space B shall be paid at the same time and in the same manner as provided in the
Lease for payment of Rent for the Initial Premises and Space A If the Space B Delivery Date is not
the first day of a calendar month, the Base Rent for Space B for such partial month shall be
prorated daily and paid in advance.

6. Leasehold Improvements. Landlord will provide to Tenant the leasehold improvements
which presently exist in Space B and Tenant accepts such presently-existing leasehold
improvements in an “As-Is” condition, without any representations or warranties of any kind, as
of the date of execution set forth on page 1 of this Amendment No. 2 Landlord shall construct
leasehold improvements in Space B as provided in Exhibit 2 attached as a part hereof, and the
provisions of Exhibit C of the Initial Lease shall not apply

7. Rights Reserved to the Landlord. Section 10 of the Lease is hereby amended by adding the following paragraph

     1. Substitution of Space: At any time hereafter, Landlord may relocate Space B to
another area in the Project (herein referred to as the “New Space B”) upon thirty (30) days prior
written notice, provided, that: (1) the New Space B shall be substantially similar to Space B in
area and suitable for the use which Tenant had made of Space B; (2) if Space B is being improved
pursuant to the provisions of this Lease, Landlord will pay the costs of improving the New Space B
so that it is substantially similar to Space B; and (3) Landlord shall pay all of Tenant’s
reasonable moving costs Tenant shall cooperate with Landlord in all reasonable ways to facilitate
the move to the New Space B including, by way of example but not of limitation, designating
locations to move furniture and equipment, supervising moving of files or fragile equipment,
designating location of electrical and telephone outlets, and listing color of paint and of
flooring desired in the New Space B If Landlord exercises its right under this Section 10L, the
New Space B shall thereafter be deemed for all purposes of this Lease as Space B

8. Tenant Finish Allowance. In Section 1 (entitled “Tenant Finish Allowance and Costs”)
of Exhibit C (entitled “Leasehold Improvements”) of the Initial Lease, all references to the
Premises shall hereby be deemed to include only the Initial Premises

9.
Deletion of Inapplicable Provisions. Section 26 (entitled “Expansion Option”), Section
27 (entitled “Thirtieth Floor Refusal Right”), and Section 28 (entitled “Thirty-First Floor Refusal
Right”) of the Initial Lease are hereby deleted in their entirety

10. Eighth Floor Refusal Right. Tenant shall have a right of first refusal (“Eighth Floor
Refusal Right”) on approximately 12,106 rentable square feet located on the eighth (8th) floor of
the Project as shown on the attached Exhibit 1 (collectively, “Eighth Floor Refusal Space”), as
follows:

     A. If during the Space B Term Landlord shall receive and desire to accept a bona fide offer
from a third party to lease all or any portion of the Eighth Floor Refusal Space for a lease term
which is greater than month-to-month, Landlord shall give written notice thereof to Tenant
(“Landlord’s ROFR Notice”), which notice shall describe: (1) the applicable portion of the Eighth
Floor Refusal Space (“Subject Eighth Floor Refusal Space”), (2) the estimated date of
availability (“Target Delivery Date”); (3) the lease term; and (4) the Base Rent, Operating Cost
Rent, tenant improvements or allowance, concessions, and other economic terms of the offer To
exercise the Eighth Floor Refusal Right, Tenant shall give Landlord written notice of its exercise
(“Tenant’s Exercise Notice”) within five (5) business days after Landlord’s ROFR Notice is given.
Tenant may only exercise the Eighth Floor Refusal Right as to all of the Subject Eighth Floor
Refusal

-3-

 

Space. Time is of the essence with respect to Tenant’s Exercise Notice

     B. If Tenant exercises the Eighth Floor Refusal Right with respect to the Subject Eighth
Floor Refusal Space, such space shall be added to and become part of the Premises on all of the
terms and conditions of this Lease, except that:

     (1) The Subject Eighth Floor Refusal Space shall be added to the Premises
effective on the earlier of (the “ROFR Delivery Date”): (a) the date agreed to by the
parties; or (b) the date on which Landlord delivers possession of the Subject Eighth
Floor
Refusal Space to Tenant in the condition provided in Landlord’s ROFR Notice (which,
without Tenant’s consent, shall not be sooner than the Target Delivery Date)
Landlord
shall not be liable nor shall this Lease be impaired for any delay or inability to
deliver the
Subject Eighth Floor Refusal Space for reasons beyond Landlord’s control

     (2) The Base Rent, Operating Cost Rent, tenant improvements or allowance,
concessions, other economic terms, and the lease term specified in Landlord’s ROFR
Notice shall apply with respect to the Subject Eighth Floor Refusal Space

     (3) The Subject Eighth Floor Refusal Space shall be delivered to Tenant in the
condition as provided in the third party offer, and the provisions of Exhibit C of the
Initial
Lease and Exhibit 2 of Amendment No. 2 shall not apply

     (4) As of the ROFR Delivery Date, the term “Premises” shall be deemed to refer
to and include the Subject Eighth Floor Refusal Space, except as expressly provided
otherwise in this Lease.

The Eighth Floor Refusal Right shall apply to the first lease and only the first lease for the
Subject Eighth Floor Refusal Space. If Tenant fails to timely or properly exercise the Eighth
Floor Refusal Right, Tenant shall have no further rights with respect to the Subject Eighth floor
Refusal Space, unless the lease that was the subject of Landlord’s ROFR Notice is not actually
executed within one hundred twenty (120) days after Landlord’s ROFR Notice is given, in which case
Tenant shall have the Eighth Floor Refusal Right with respect to the next proposed lease for such
Eighth Floor Refusal Space. The Eighth Floor Refusal Right shall continue with respect to any
remaining Eighth Floor Refusal Space on which such right has not terminated.

     C. Tenant’s right to exercise the Eighth Floor Refusal Right with respect to any portion
of the Eighth Floor Refusal Space is subject to the condition that, at the time that Tenant
delivers
Tenant’s Exercise Notice and on the ROFR Delivery Date, Tenant is not in default under any of
the terms or conditions of this Lease. Further, the Eighth Floor Refusal Right shall
automatically
terminate upon the earliest to occur of: (1) the expiration or termination of this Lease; (2)
the
termination of Tenant’s right to possession of the Premises, (3) the assignment of this Lease
by
Tenant or the sublease by Tenant of all or any part of the Premises except to a Tenant
Affiliate as
defined in Section 34 of the Lease, or (4) the failure of Tenant to timely or properly
exercise the
Eighth Floor Refusal Right.

     D. Within ten (10) days after written request by either party, Landlord and Tenant shall
execute and deliver an instrument in form reasonably satisfactory to Landlord and Tenant
confirming any exercise or termination of the Eighth Floor Refusal Right.

11. Tenant’s Representations. Tenant hereby represents to Landlord that there has
been no assignment of the Lease and no sublease of all or any portion of the Initial Premises or
Space A,

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there are no existing defenses or offsets which Tenant has against enforcement of the Lease, and
Landlord and Tenant are not in default under the Lease.

12. Brokers. Landlord and Tenant each represents that it has not engaged or dealt with
any
real estate broker, agent, or finder with respect to this Amendment No. 2, except for Price
Edwards & Company representing Landlord (whose commission, if any, shall be paid by Landlord
pursuant to a separate written agreement). Landlord and Tenant shall indemnify and hold each
other harmless from all claims, liability, or expense (including, without limitation, reasonable
attorney’s fees) in connection with any claim for brokerage commissions, finder’s fees, or other
fees or commissions as a result of such party’s actions or alleged actions.

13. Entire Agreement. The Lease, including, without limitation, this Amendment No. 2 and
all exhibits which are attached hereto and hereby incorporated by reference, constitutes the entire
agreement between Landlord and Tenant with respect to the subject matter hereof Tenant
acknowledges that it has not been induced to enter into this Amendment No. 2 by any agreements
or representations which are not set forth in this Amendment No. 2. This Amendment No. 2 shall
not be effective until execution and delivery by both Landlord and Tenant.

          IN WITNESS WHEREOF, and by signing this Amendment No. 2, the parties agree to the above terms.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	OKT Investors, L.L.C., an Oklahoma limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By	 	PEC Investment Properties, L.L.C., an Oklahoma limited liability
company	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	Price Edwards & Company, an Oklahoma 

 general partnership, Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By	 	Alliance Management, Inc , an Oklahoma

corporation, General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By
	 	/s/ Ford C. Price Jr
 

	 	 
	 

	 	 	 	 	 	 	 	 	 	Ford C. Price Jr, President	 	 

	 	 	 	 	 	 	 
	 

	 	By
	 	/s/ John T. Perri
 

	 	 
	 

	 	 	 	John T. Perri, Manager	 	 
	 
	 	 	 	 	 	 
	 	 	(“Landlord”)
	 
	 	 	 	 	 	 
	 	 	Ricks Exploration, Inc., an Oklahoma corporation
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Art L. Swanson	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Art L. Swanson, President	 	 
	 
	 	 	 	 	 	 
	 	 	(“Tenant”)

-5-

 

Exhibit I

Floor Plan of Space B

[Diagram]

	 	 	 
	OKLAHOMA TOWER
	 	PLAN-LEVELS 3-11
	210 Park Avenue
	 	
	Oklahoma City, Oklahoma	 	 

Space B and the Eighth Floor Refusal Space are located on floor 8 of the Project.

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Exhibit 2

To Amendment No. Two

Leasehold Improvements

(Allowance)

1. Tenant Finish Allowance and Costs. Landlord shall provide an allowance (“Space B
Allowance”) not to exceed $15.00 per rentable square foot in Space B (total of $78,810.00 based on
5,254 rentable square feet) or the actual cost of such improvements, whichever is less, to be
applied to the total cost of constructing Tenant’s leasehold improvements in Space B (“Tenant
Finish Costs”), including, without limitation: space planning and design fees, architectural and
engineering fees, required building permits, actual cost of labor, materials, equipment and
services, actual cost of Tenant signage; and the costs of removing, modifying, relocating or making
additions to any existing improvements to accommodate Tenant’s space plan. Tenant Finish Costs shall
exclude expenses in connection with services provided by Tenant or Tenant’s employees; telephone,
communications, and computer equipment, and wiring, and personal property items such as
decorations, art work, furniture, equipment, or trade fixtures not permanently attached to Space B.

Any unused portion of the Space B Allowance may be carried forward, without interest, and applied
toward Tenant Finish Costs during the first one hundred eighty (180) days of the Space B Term, at
which time any remaining, unused amount of the Space B Allowance shall automatically terminate
without further credit, payment, or refund.

2. Plans. Tenant shall promptly devote such time in consultation with Landlord and the
architect (“Architect”) designated by Landlord as necessary to finalize an initial plan (“Initial
Plan”) for Tenant’s leasehold improvements in Space B. If not included in the Initial Plan and if
necessary for the performance of Landlord’s Work (as hereafter defined), Landlord shall cause to
be prepared final architectural and engineering plans, specifications, and working drawings for
Tenant’s leasehold improvements in Space B (“Architectural Plans”) based on the Initial Plan.
Tenant shall, within five (5) business days after written request, furnish to Landlord such
information as necessary to enable the Architect to prepare the Initial Plan and any
necessary-Architectural Plans. The information to be furnished by Tenant shall include, without
limitation:

(a) Any requirements of the Tenant which are in excess of or otherwise vary in any
respect from Building standard items, and all critical dimensions,

(b) Special loading, such as the location of and requirements for file cabinets or special
equipment;

(c) Openings in the walls or floors,

(d) Special heating, ventilating, air conditioning, electrical, sprinkler, lighting,
security
system, or plumbing work,

(e) Location and dimensions of telephone equipment areas, and location of telephone and
electrical outlets, switches, and lights;

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(f) Partitions — locations and type, including doors and hardware, windows, glass
partitions, and special framing or support;

(g) Special cabinet work and other millwork items;

(h) Variations to standard ceiling heights;

(i) Location and color selection of painted areas;

(j) Location and selection of floor covering and wall coverings;

(k) Location and type of any kitchen equipment, and

(l) Such additional information as reasonably specified by Landlord

Within five (5) business days after the completed Architectural Plans have been submitted to
Tenant, Tenant shall provide Landlord with Tenant’s written approval of Such Architectural Plans
(or Tenant’s disapproval with a written explanation of any changes required therein) and shall
redeliver the Architectural Plans to Landlord for Landlord’s final approval If Landlord or Tenant
do not approve any of the Architectural Plans, the parties shall promptly revise such plans and
resubmit such plans until the same are approved by Landlord and Tenant. Unless otherwise specified
in the Architectural Plans, Landlord’s Work shall be constructed with Building standard materials
(or comparable substitute materials designated by Landlord) in amount, type, and quality, and
Tenant shall promptly make any necessary selections. If final Architectural Plans are included in
the Initial Plan or are unnecessary to perform the work, the term “Architectural Plans” as used
herein shall mean the Initial Plan and any supplemental plans and specifications approved by
Landlord and Tenant. All costs and expenses relating to the preparation or review of the Initial
Plan and the Architectural Plans, and any changes thereto or revisions thereof, shall be included
in the Tenant Finish Costs and shall be paid as provided in Section 3 of this Exhibit.

     All plans and specifications for any work in Space B or the Project (whether Landlord’s Work
or any work performed by Tenant as hereafter provided) shall be subject to Landlord’s prior
written approval. Landlord may withhold its approval of any plans or specifications if, in
Landlord’s reasonable opinion, the work would, involve a structural revision to the Project,
adversely affect the market value or appearance of the Project; violate Landlord’s criteria for
those portions of the Space which are visible from the common areas or from the exterior of the
Project, adversely affect the strength, structural integrity, or safety of the Project; adversely
affect the proper functioning and efficiency of the systems of the Project, violate any
requirements of applicable law or of any holder of a mortgage on or insurer of the Project (or
require Landlord to perform any work or incur any expense in connection therewith); adversely
affect any other rentable space in the Project or increase the expense of operating the Project,
not be in keeping with the character of the Project; or involve a substantial risk of delaying the
performance of Landlord’s Work due to unavailability or shortages of labor or materials, extra
lead or performance time or other requirements for the work. The foregoing reasons are not
exclusive, and Landlord may reasonably withhold its approval for other similar or dissimilar
reasons. Landlord may disapprove any plans in part, reserve approval of any items pending its
review and approval of other plans, and reasonably condition its approval upon Tenant making
revisions to

-2-

 

Landlord and its management company and mortgagee as additional insureds) and instruments of
indemnification as Landlord may reasonably require against claims and liabilities which may arise
out of such entry or work. Such pre-term access shall be subject to scheduling by Landlord.
Landlord shall have the right to withdraw such license upon twenty-four (24) hours’ written notice
to Tenant for reasonable cause. Tenant agrees that Landlord shall not be liable in any way for any
injury, loss, or damage which may occur to any of Tenant’s property placed or installations made in
Space B prior to the Space B Delivery Date, the same being at Tenant’s sole risk; and Tenant agrees
to indemnify, defend, and save harmless Landlord from all liabilities, costs, damages, fees, and
expenses arising out of or connected with the activities of Tenant or its agents, contractors,
suppliers, or workmen in or about Space B or the Project. Any entry or work by or on behalf of
Tenant under this Section shall be subject to all of the terms and conditions of the Lease,
including without limitation Section 5 thereof If such entry or work causes extra costs to Landlord
or extraordinary use of Project services, Tenant shall reimburse Landlord for such extra costs or
extraordinary services within thirty (30) days after Landlord’s statement thereof

7. Telephones/Wiring. Tenant shall at its expense install and maintain all telephone and
communications wiring and equipment from the service access point in the Project to and within
Space B, and arrange directly with the telephone company and suppliers of its choice for all
service and connections. The installation of all telephone, communications, computer, security,
and other wiring and equipment shall be subject to Landlord’s prior written consent as provided
in this Exhibit or in Section 5 of the Lease.

8. Miscellaneous. This Exhibit shall be incorporated into and considered as a part of the
attached Amendment No 2. Unless otherwise indicated herein, capitalized terms used in this
Exhibit shall have the meanings assigned to them in the Lease or in Amendment No. 2 The terms
and provisions of this Exhibit are intended to supplement and are specifically subject to all the
terms and provisions of the Lease and Amendment No 2 This Exhibit may not be amended or
modified except in a writing signed by Landlord and Tenant. In no event shall any rights of
Tenant hereunder be transferable or assignable to any party except to a permitted assignee of all
of Tenant’s rights under The Lease All sums due hereunder from Tenant shall be deemed
Additional Rent for purposes of the Lease, and upon any default hereunder, Landlord shall have
all of the rights and remedies provided for in the Lease as well as all remedies otherwise
available
to Landlord, including, without limitation; the right to suspend work hereunder or to withhold
delivery of possession of Space B until any such default is cured. Whenever the consent or
approval of Landlord or Tenant is required herein, the same shall not be unreasonably withheld
or delayed. This Exhibit shall not create a contractual relationship of any kind between any
persons other than Landlord and Tenant.

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EXHIBIT B

CITY PLACE SUBLEASE

5

 

SUBLEASE AGREEMENT

1. PARTIES

     This Sublease, dated the 14th day of March, 2003, is made between RICKS EXPLORATION, INC,
(“Tenant”), and 3100 CITY PLACE, L.L.C., an Oklahoma Limited Liability Company (“Subtenant”).

2. PRIME LEASE

     Teachers Insurance and Annuity Association of America (“Prior Landlord”) and Ricks
Exploration, Inc. (“Prior Tenant”) entered into a certain Lease Agreement dated April 8, 1998, and
a certain Amendment No. One to Lease Agreement dated as of September 25, 1998, covering certain
space on the thirtieth (30th) floor of the Building commonly known as Oklahoma Tower, 210 Park
Avenue, Oklahoma City, Oklahoma (“Building). OKT Investors, L.L.C, an Oklahoma limited liability
company (“Landlord”) acquired title to the Building from Prior Landlord and became the successor
“Landlord” under the Lease Agreement, as amended. Subsequently, Landlord and Prior Tenant entered
into a certain Amendment No, Two to Lease Agreement dated March 15, 2001. (The Lease Agreement, as
amended by Amendment No. One to Lease Agreement and by Amendment No. Two to Lease Agreement, is
hereinafter referred to as the “Prime Lease,” and the premises covered by the Prime Lease are
hereinafter referred to as the “Prime Premises.”) Tenant is the successor-in-interest to Prime
Tenant. A copy of the Prime Lease is attached to this Sublease Agreement as Exhibit “A.”

3. PREMISES

     Tenant hereby subleases to Subtenant on the terms and conditions set forth in this Sublease
the following portion of the Prime Premises; Approximately 8,741 rentable square feel, to be known
as Suite 3030 and further described on Exhibit “B” (Premises).

4. WARRANTY BY TENANT

     Tenant warrants and represents to Subtenant that the Prime Lease has not been amended or
modified except as expressly set forth herein, that Tenant is not now in default or breach of any
of the provisions of the Prime Lease, and that Tenant has no knowledge of any claim by Landlord
that Tenant is in default or breach of any of the provisions of the Prime Lease

5. TERM

     The
Term of this Sublease shall commence on May 1, 2003 (“Commencement Date”), and end on
October 3 1, 2009 (“Termination Date”). Possession of the Premises (“Possession”) shall be
delivered to Subtenant on the Commencement Date.

6. RENT

     6.1
Minimum Rent. Subtenant shall pay to Tenant as rent, without deduction, set off, notice,
or demand, at 210 Park Avenue, Suite 3000, Oklahoma City, Oklahoma 73102, or at such other place
as Tenant shall designate from time to time by notice to Subtenant, the sum of Eight Thousand
Twelve and 58/100 Dollars ($8,012.58) per month, in advance on the first day of each month
beginning October 1, 2003 and continuing through the remainder of the Term. Subtenant shall occupy
the Premises rent-free from (he Commencement Date through September 30, 2003.

     6.2 Operating Cost Rent. Subtenant shall pay to Tenant the pro rata share of Tenant’s
Operating Cost Rent due to the Landlord under the terms of Section 2 of the Prime Lease, but only
to the extent such Operating Cost Rent exceeds that which was payable by the Tenant for the 2002
calendar year. Subtenant’s pro rata share shall be calculated by dividing the square footage
attributable to the Premises by the total space leased by the Tenant under the Prime Lease. Such
Operating Cost Rent shall be due and payable to Tenant within seven (7) days after notice from
Tenant to Subtenant accompanied by a copy of the Landlord’s statement selling forth the total
Operating Cost Rent due.

 

 

7. USE OF PREMISES

     The Premises shall be used and occupied only for general office purposes, and for no other
use or purpose.

8. ASSIGNMENT AND SUBLETTING

     Subtenant shall not assign this Sublease or further sublet all or any part of the Premises
without the prior written consent of Tenant (and Landlord), which consent maybe withheld for any
or no reason in the sole discretion of the tenant or landlord.

9. OTHER PROVISIONS OF SUBLEASE

     All
applicable terms and conditions of the Prime Lease are incorporated into and made a part
of this Sublease as if Tenant were the Landlord thereunder, Subtenant were the Tenant thereunder,
and the Premises were the Prime Premises. Subtenant assumes and agrees to perform the Tenant’s
obligations under the Prime Lease during the Term to the extent that such obligations are
applicable to the Premises, except that the obligation to pay rent to Landlord under the Prime
Lease shall be considered performed by Subtenant to the extent and in the amount rent is paid to
Tenant in accordance with section 6 of this Sublease. Subtenant shall not commit or
suffer any act or omission that will violate any of the provisions of
the Prime Lease. Tenant
shall exercise due diligence in attempting to cause Landlord to perform its obligations under the
Prime Lease for the benefit of Subtenant. If the Prime Lease
terminates, this Sublease shall terminate, except with respect to all responsibilities, obligations, and liabilities which have
accrued or which have been incurred prior to such termination of the Prime Lease, provided,
however, that if the Prime Lease terminates as a result of a default or breach by Tenant or
Subtenant under this Sublease and/or the Prime Lease, then the defaulting party shall be liable to
the non defaulting party for the damage suffered as a result of such termination. Notwithstanding
the foregoing, if the Prime Lease gives Tenant any right to terminate the Prime Lease in the event
of the partial or total damage, destruction, or condemnation of the Prime Premises or the
Building, the exercise of such right by Tenant shall not constitute a default or breach hereunder.

     Notwithstanding
anything to the contrary herein or in the Prime Lease, so long as Subtenant has
complied with the terms and conditions of this Sublease. Tenant shall not terminate this Sublease.

10. IMPROVEMENTS TO THE PREMISES

     A. Subtenant has inspected the Premises and all common areas of the Building and agrees to
accept the same “as-is” without any agreements,
representations, understandings or obligations on the
part of Tenant to perform any alterations, repairs or improvements
other than to demise the space (using finishes and
materials to match existing) and make any and all necessary alterations required to meet the accessibility aspects of local
fire and building codes and the Americans With Disabilities Act and
all similar laws. In addition, on the Termination Date,
Subtenant will deliver the Premises in the same condition as of the
Commencement Date except for ordinary wear and tear

     B. Any construction, alterations or improvements made to the Premises shall be made at
Subtenant’s sole cost and expense with the prior written approval of Landlord, which shall not be unreasonably
withheld.

     C. Any construction, alterations or improvements to the Premises shall be performed by
Subtenant using contractors selected by Subtenant and approved by Landlord and Tenant (which approval shall
not be unreasonably withheld) and shall be governed in all respects by the Prime Lease. In any and all events, the
Commencement Date shall not be postponed or delayed if the initial improvements to the Premises are incomplete on the
Commencement Date for any reason whatsoever. Any delay in the completion of initial improvements to the Premises
shall not subject Tenant to any liability for any loss or damage resulting therefrom.

     D. At the sole discretion of Landlord, all alterations and improvements to the Premises shall
be left in the Premises or removed from the Premises at the end of the term of the Sublease. In the event of
any removal of alterations and improvements, Subtenant shall restore the Premises to its condition at the commencement of
this Sublease.

 

 

11. NOTICES

     All notices and demands which may or are to be required or permitted to be given by either
party on the other hereunder shall be in writing. All notices and demands by the Tenant to
Subtenant shall be hand delivered or sent by United States Mail, postage prepaid, addressed to the
Subtenant at the Premises, or to such other place as Subtenant may from time to time designate in
a notice to the Tenant. All notices and demands from the Subtenant to Tenant shall be hand
delivered or sent by United States Mail, postage prepaid, addressed to the Tenant at the address
set forth herein and to such other person or place as the Tenant may from time to time designate
in a notice to the Subtenant.

12. CONSENT BY LANDLORD

     THIS SUBLEASE SHALL BE OF NO FORCE OR EFFECT UNLESS CONSENTED TO BY LANDLORD WITHIN 10 DAYS
AFTER EXECUTION HEREOF

13. COMPLIANCE

     Tenant and Subtenant agree to comply with applicable federal, state and local laws,
regulations, codes, ordinances and administrative orders having jurisdiction over the parties,
property or the subject matter of this Agreement, including, but not
limited to, the 1964 Civil
Rights Act and all amendments thereto, the Foreign Investment In Real
Property Tax Act, the
Comprehensive Environmental Response Compensation and Liability Act, and The Americans with
Disabilities Act.

14. INDEMNIFICATION

Subtenant covenants and agrees to indemnify Tenant, Landlord, and their respective agents,
employees and affiliates, and to hold harmless Tenant, Landlord, and their respective agents,
employees and affiliates, at all times, from and against any and all claims, demands, judgments,
losses, costs, expenses, charges, counsel fees, payments or other liabilities of any character or
nature regardless of by whom imposed (including but not limited to, claims for loss or damage to
any property or injury to or death of any person) asserted by or on behalf of any person, arising
out of, or resulting from, any acts or omissions of Subtenant, its invitees, agents, employees or
affiliates in connection with the Premises or the Building, or the
condition, occupancy, use,
possession, conduct or management of, or any work done in or about the Premises or the Building,
or any part thereof, or in connection with any assignment or subletting hereunder of any part
thereof. Subtenant also covenants and agrees, at its expense, to pay and to indemnify and save
Tenant, Landlord, and their respective agents, employees, and
affiliates, at all times, harmless
of, from and against all costs, counsel fees, expenses and liabilities incurred in any action or
proceeding brought by reason of any such claim or demand. In the event that any action or
proceeding is brought against Tenant, Landlord, or their respective agents, employees or
affiliates, by reason of any such claim or demand, Subtenant, upon notice from Tenant, or
Landlord, covenants to resist and defend any such action or proceeding on behalf of Tenant,
Landlord, and their respective agents, employees or affiliates.

15. INSURANCE

     Subtenant
shall not do or permit to be done any act or thing in or upon the Premises which
will invalidate or be in conflict with the Certificate of Occupancy for the Building or the terms
of the insurance policies covering the Building and the fixtures and property therein; and
Subtenant, at its expense, shall comply with all rules, orders, regulations or requirements of any
federal, state, county, city, municipal or other similar body having jurisdiction, and shall not
do or permit anything to be done in or upon the Premises in a manner which increases the rate of
insurance for the Building or any property or equipment located therein over the rate in effect on
the Commencement Date.

     15.1 If Subtenant fails to comply with the provisions of this Section 15 or any of the other
provisions of this Sublease, Subtenant shall pay to Tenant, as additional rent, any additional or increased
insurance premiums resulting therefrom and Subtenant shall make such payment forthwith on demand to Tenant.

     15.2 Subtenant, at its sole costs and expense, shall procure and maintain all insurance
policies required by the Prime Lease in the amounts stated therein and having such endorsements and naming tenant and
such other persons as

 

 

additional insured and as loss payees as required by the Prime Lease. All such insurance shall be
effected under valid and enforceable policies, shall be issued by insurers of recognized
responsibility, and shall contain a provision whereby the insurer agrees not to cancel, refuse to
renew or affect any material change in the insurance without thirty (30) days’ prior written
notice to Tenant

     On or before the Commencement Date, Subtenant shall furnish Tenant with a Certificate
evidencing the aforesaid insurance coverage, and renewal certificates shall be furnished to
Tenant at least thirty (30) days prior to the expiration date of each policy for which a
certificate was theretofore furnished. Such certificate will also provide thirty (30) days prior
written notice of cancellation, material change, or non-renewal. Upon
Tenant’s request, Subtenant
will promptly deliver to Tenant policies of any insurance required hereunder.

     15.3 Carrying the prescribed insurance by Subtenant will in no way be construed as a
limitation or satisfaction of the hold harmless or indemnity agreements of Subtenant contained
in this Sublease.

     Executed and delivered she day and year first written
above.

	 	 	 	 	 	 	 	 	 
	TENANT.	 	RICKS EXPLORATION, INC.	 	ATTEST:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Gregory S. Robins	 	By:	 	 	 	 
	 	 	 

Gregory S. Robins
	 	 	 	 

	 	 
	 	 	 	 	 	 	 	 	 
	Title:	 	Vice President
	 	Title	 	 	 	 
	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	SUBTENANT: 3100, CITY PLACE, L.L.C, an	 	ATTEST:	 	 	 	 
	 	 	      Oklahoma Limited Liability Company	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	By:	 	/s/ [ILLEGIBLE]	 	By:	 	 	 	 
	 	 	 

	 	 	 	 

	 	 
	 	 	 	 	 	 	 	 	 
	Title:	 	President/Managing Member	 	Title:	 	 	 	 
	 	 	 
	 	 	 	 	 	 

CONSENT TO SUBLEASE

The
undersigned, Landlord, hereby consents
to the foregoing Sublease between RICKS
EXPLORATION, INC., Tenant, and 3100 CITY PLACE, L.L.C, Subtenant, provided that, (i) such consent
shall never be deemed to constitute Landlord’s approval of any particular term or provision of the
document evidencing such Sublease, (ii) such consent shall never
be construed as creating privity
between Landlord and Subtenant, (iii) nothing contained herein or in such Sublease shall be deemed
to be a release of Prior Tenant or Tenant with respect to their obligations under the Prime Lease,
(iv) Prior Tenant and Tenant shall remain fully, personally liable for the performance of all of
their obligations under the Prime Lease, (v) Landlord is not consenting to any proposed or
purported change or modification of the Prime Lease, and (vi) Landlord is not waiving any
restriction in the Prime Lease concerning further assignment or subletting.

IN WITNESS WHEREOF, Landlord has executed this Consent on the separate signature page attached
hereto this 2nd day of April, 2003.

OKT INVESTORS, L.L.C., an Oklahoma limited liability
company, 
as successor to Teachers Insurance and Annuity
Association of America

 

 

By: PEC Investment Properties, L.L.C., an Oklahoma limited liability company, Manager

By: Price Edwards & Company, an Oklahoma general partnership, Manager

By:
Alliance Management, Inc, an Oklahoma corporation, General Partner

	 	 	 	 	 
	 
	By  	/s/ Ford C. Price Jr.
 

Ford C. Price Jr., President
	 	 

	 	 	 	 	 
	By
	 	/s/ Clayton I. Bennett
 

	 	 
	 
	 	Clayton I. Bennett, Manager	 	 
	 
	 	 	 	 
	By
	 	/s/ John T. Perri	 	 
	 
	 	 	 	 
	 
	 	John T. Perri, Manager	 	 

 

 

EXHIBIT B

ATTACHED TO AND MADE A PART OF THE

SUBLEASE AGREEMENT DATED FEBRUARY 28, 2003

BETWEEN RICKS EXPLORATION, INC, TENANT

AND 3100 CITY PLACE, L.L.C., SUBTENANT

 

 

EXHIBIT “B”

Plan Showing the Premises

[Diagram]

 

 

SUBLEASE AMENDMENT #1

     This Sublease Amendment (the “Amendment”), dated the 8th day of April, 2004, is made between
CHESAPEAKE ENERGY CORPORATION (“Tenant”), as successor in interest to RICKS EXPLORATION, INC
(“Prior Tenant”), and 3100 CITY PLACE, L.L.C, an Oklahoma Limited Liability Company (“Subtenant”)

WITNESSETH:

A. Prior Tenant and Subtenant entered into that certain Sublease Agreement dated March 14, 2003 (the
“Sublease”), for premises described as Suite 3030 (the “Premises”) containing approximately
8.741 square feet in the property (the “Property”) known as Oklahoma Tower, located at 210
Park Avenue, Oklahoma City, Oklahoma, 73102. Tenant is the successor in interest to Prior Tenant
under the Sublease

B. Tenant and Subtenant have agreed to expand the Premises on the terms and subject to the
conditions hereof

NOW THEREFORE, in consideration of the mutual terms and conditions herein contained, the Tenant
and Subtenant hereby agree as follows:

1. Amendment. Tenant and Subtenant agree that the Sublease is hereby amended as follows (al1
references to
Articles are to Articles in the Sublease):

	 	A.	 	Article 3 - PREMISES
	 
	 	 	 	Effective as May 1, 2004, the space (the “Expansion Space”) on the 30th flow of the
Property, which is shown by cross hatching on the diagram of the 30th floor
attached hereto as Exhibit A, is hereby added to the Premises covered by the
Sublease, The Expansion Space is supulated to contain 3,165 rentable square foot As
a result of the addition of the Expansion Space to the Premises, the Premises are
expanded to include 11,907 rentable square feel.
	 
	 	B.	 	Article 5 - TERM
	 
	 	 	 	Subtenant’s subleasing of the Expansion Space shall commence on May 1, 2004, and
shall terminate on the date of termination of the Sublease
	 
	 	C.	 	Article 6 - BASE RENT

6.1 Minimum Rent

	 	 	 	Effective as of May 1, 2004, the Minimum Rent is hereby amended to be Ten Thousand,
Nine Hundred Fourteen end 75/100 Dollars ($10,914.75) per month.
	 
	 	D.	 	Article 10 - IMPROVEMENTS TO THE PREMISES
	 
	 		 	B. Tenant shall pay for and construct the necessary walls to demise the Expansion
Space and for those alterations and specifications outlined in the Construction Estimate totaling
$16,552 from Maccini Construction Company which is dated February 11, 2004, and
attached hereto as Exhibit B.
	 
	 	E.	 	FURNITURE FIXTURES & EQUIPMENT
	 
	 	 	 	Tenant shall deliver to Subtenant a Bill of Sale conveying ownership of the existing
Space-Saver file system “as-is/where-is,” at no cost. Subtenant shall be responsible
for any relocation expense related to such file system.

 

 

2. Effective Date. This Agreement shall become effective as an amendment to the Sublease as of
the date first
written above (herein referred to as the “Effective Date.”)

Whole Agreement. This Agreement sets forth the entire agreement between the Tenant and Subtenant
with respect to
the matters set forth herein. There have been no additional oral or written representations or
agreements. As amended
herein, the Sublease between the Tenant and Subtenant shall remain in full force and effect.

4. No Offer. This Agreement shall not be binding until executed and delivered by Tenant and Subtenant.

5. Consent By Landlord

     THIS SUBLEASE SHALL BE OF NO FORCE OR EFFECT UNLESS CONSENTED TO BY LANDLORD WITHIN 10 DAYS
AFTER EXECUTION HEREOF

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date fast above written.

	 	 	 	 	 
	TENANT:

	 	CHESAPEAKE ENERGY
	 	ATTEST:
	 

	 	CORPORATION	 	 

	 	 	 	 	 	 	 
	By

	 	/s/ Henry J. Hood
	 	By	 	 
	 

	 	 
	 	 	 	 
	 

	 	Henry J. Hood	 	 	 	 
	 
	 	 	 	 	 	 
	Title

	 	Senior Vice President-Land and Legal
	 	Title:	 	 
	 

	 	 
	 	 	 	 

	 	 	 
	SUBTENANT:

	 	3100 CITY PLACE, L.L.C., an
	 

	 	Oklahoma Limited Liability Company

	 	 	 	 	 
	By

	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 

	 	 
	Title

	 	Manager	 	 
	 

	 	 	 	 

 

 

EXHIBIT A

ATTACHED TO AND MADE A PART OF THE

SUBLEASE AMENDMENT #1 DATED APRIL 8, 2004

BETWEEN CHESAPEAKE ENERGY CORPORATION (“TENANT), AS SUCCESSOR

IN INTEREST TO RICKS EXPLORATION, INC. (“PRIOR TENANT”), AND 3100 CITY PLACE. L.L.C.,

AN OKLAHOMA LIMITED LIABILITY COMPANY (“SUBTENANT”).

PLAN SHOWING THE PREMISES

[Diagram]

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