Document:

exv10w48

Exhibit 10.48

	 	 	 	 	 

State Lease 19266

Portions of EI 10, 11, 6 and 7

ASSIGNMENT OF OVERRIDING ROYALTY INTEREST

	 	 	 	 	 
	STATE OF LOUISIANA

	 	§	 	 
	 

	 	§
	 	KNOW ALL MEN BY THESE PRESENTS:
	PARISH OF IBERIA

	 	§	 	 

     THAT the undersigned, Dutch Royalty Investments, Land and Leasing, LP, a Texas limited
partnership (hereinafter referred to as “Assignor”), whose address is c/o John R. Miller, General
Partner, 635 Hunters Grove Lane, Houston, Texas 77098, for and in consideration of the sum of One
Hundred and No/100 dollars ($100.00) and other good and valuable consideration, in hand paid by
Assignee, the receipt and sufficiency of which are hereby acknowledged, does hereby TRANSFER,
BARGAIN, SELL, ASSIGN and CONVEY unto Contango Operators, Inc., a Delaware corporation (hereinafter
referred to as “Assignee”), whose address is 3700 Buffalo Speedway, Suite 960, Houston, Texas
77098, an overriding royalty interest of 0.30000% of 8/8ths (hereinafter referred to as the
“Assigned ORRI”), in and to the production from or allocable to the oil and gas lease described in
Exhibit “A” (said lease as to the area and depths described is hereinafter referred to as the
“Lease”), attached hereto and made a part hereof.

     Reference is hereby made for all purposes to that certain Assignment of Overriding Royalty
Interest, executed by Republic Exploration LLC (“REX”) in favor of Linda G. Ferszt (“Ferszt”), a
single person, Assignor, Mark A. Stephens and Donna R. Stephens (collectively, “Stephens”), husband
and wife, Gary Clack and Judith Ann Clack (collectively, “Clack”), husband and wife, and Assignee
(Ferszt, Assignor, Stephens, Clack, and Assignee are collectively referred to as the “ORRI
Owners”), on May 10, 2007, effective February 14, 2007, and recorded on May 11, 2007 in Conveyance
Book 1363, Page 895, under File Number 2007-00005325, of the records of Iberia Parish, Louisiana,
wherein REX conveyed to the ORRI Owners an overriding royalty interest equal to 3.33333% of 8/8ths
(which overriding royalty interest includes the Assigned ORRI) in and to and affecting production
from the Lease, subject to all of the terms and provisions set forth therein (the “REX
Assignment”).

     It is the intention of Assignor and Assignee that the Assigned ORRI affect and include a
portion of the overriding royalty interest acquired by Assignor in the REX Assignment, that no
portion of the Assigned ORRI expire or terminate through merger or confusion as a result of the
execution of this instrument due to Assignee’s current ownership of working interest in and to the
Lease, and that the Assigned ORRI is conveyed subject to and conditioned by the terms and
provisions of the REX Assignment and that certain Joint Operating Agreement, dated February 7,
2007, executed by and between Assignee, as Operator, and REX, CGM, LP, Olympic Energy Partners, LLC
and Unocal Oil Company of California, as Non-Operators.

     TO HAVE AND TO HOLD all and singular the Assigned ORRI unto Assignee and Assignee’s respective
heirs, successors and assigns forever, subject to the terms and conditions hereof and the terms,
covenants and provisions of the Lease. Assignor hereby binds Assignor and Assignor’s successors
and/or assigns to warrant and defend the title to the Assigned ORRI unto Assignee and Assignee’s
heirs, successors and assigns against every person lawfully claiming, or to claim the same, or any
part thereof, by, through and under Assignor but not otherwise.

1

 

State Lease 19266

Portions of EI 10, 11, 6 and 7

     All of the terms, provisions, covenants and agreements herein contained shall extend to and be
binding upon Assignor and Assignee and their respective successors in title, assigns and/or heirs.

[Signatures follow]

2

 

     IN WITNESS WHEREOF, this Assignment of Overriding Royalty Interest has been executed by
Assignor and Assignee as of February 8, 2008 but shall be effective for all purposes as of
January 1, 2008.

	 	 	 	 	 
	 	Dutch Royalty Investments, Land and Leasing, LP

 	 
	 	By:  	/s/   JOHN R. MILLER
 	 
	 	 	John R. Miller  	 
	 	 	General Partner 	 
	 
	 	Contango Operators, Inc.

 	 
	 	By:  	/s/ KENNETH R. PEAK
 	 
	 	 	Kenneth R. Peak  	 
	 	 	Chairman and Secretaryexv10w50

Exhibit 10.50

AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

CONTANGO OFFSHORE EXPLORATION LLC

     THIS Limited Liability Company Agreement dated effective as of April 1, 2008 (this
“AGREEMENT”), among Juneau Exploration, L.P., a Texas limited partnership (“JEX”), with offices at
3700 Buffalo Speedway, Suite 925, Houston, Texas 77098, COE Offshore, LLC, a Delaware limited
liability company (“COE O/S”), with offices at 3700 Buffalo Speedway, Suite 960, Houston, TX 77098,
and CGM II, LP, a Texas limited partnership (“CGM”) with offices at 3050 Post Oak Boulevard, Suite
850, Houston, Texas 77056.

WITNESSETH:

     WHEREAS, JEX and COE O/S caused Contango Offshore Exploration LLC (the “COMPANY”) to be formed
under the Delaware Limited Liability Company Act (the “ACT,” which term will include any future
amendments thereto), a copy of the certificate of formation being attached hereto as EXHIBIT
A; and

     WHEREAS, JEX, COE O/S and CGM wish to, among other things, amend and restate the Limited
Liability Company Agreement of the COMPANY, as amended to the date hereof, on the terms hereinafter
set forth.

     NOW, THEREFORE, JEX, COE O/S and CGM hereby agree as follows:

	1.	 	Limited Liability Company Agreement. This AGREEMENT is a limited liability
company agreement under and as provided in the ACT.
	 
	2.	 	Members. Concurrently with the execution of this AGREEMENT, JEX, COE O/S and CGM will
become and be the MEMBERS of the COMPANY. JEX, COE O/S and CGM and any other individual,
corporation or other entity that becomes a member of the COMPANY in accordance with the terms
of this AGREEMENT are collectively called “MEMBERS,” and any one of them is called a “MEMBER.”
The neuter pronoun will refer to a MEMBER regardless of the MEMBER’s gender.
	 
	3.	 	Duration of the Company. The COMPANY will have perpetual existence.
	 
	4.	 	Business of the Company. The business of the COMPANY will be the acquisition,
reprocessing, interpretation and evaluation of speculative and proprietary geophysical and
geological data (“DATA”) and the identification, recovery and exploitation of hydrocarbon
deposits.
	 
	5.	 	Contributions by the Members.

	 	A.	 	JEX will provide its know-how and expertise in oil and gas exploration and
development to the COMPANY. Juneau’s capital account will not be credited to any
extent for its know-how and expertise. In addition, JEX will from time to

 

 

	 	 	 	time make available to the COMPANY certain DATA license and use agreements
(“LICENSES”), subject to the terms and conditions of the following LICENSES and this
Section 5.A:

	 	(i)	 	Volume License Agreement dated September 9, 2002,
as amended October 18, 2002, between JEX and Seismic Exchange, Inc.;
	 
	 	(ii)	 	Master Geophysical Data-Use License dated May 10, 2001 and
Supplemental Agreement No. VMSO1 effective October 7, 2002, between JEX and
Veritas Marine Surveys;
	 
	 	(iii)	 	Seismic Data Review and Possession Agreement (Contract No.
02-10-001 AJF) dated October 3, 2002, between JEX and Seitel Data Ltd.; and
	 
	 	(iv)	 	Master License Agreement dated November 7, 2002 together with
Supplementary Agreement for License of Geophysical Data — Supplement Number
I of even date, between JEX and TGS-NOPEC Geophysical Company (“TGS”).

	 	 	 	It is understood and agreed that JEX will be the only MEMBER of the COMPANY entitled
to use said DATA, and neither the COMPANY nor COE O/S nor any other MEMBER of the
COMPANY shall have any ownership interest in or rights to use or receive delivery of
said DATA including any resulting or related interpretations, derivatives or
reprocessings. The COMPANY’s and the other MEMBERS’ access to the DATA will be
limited to the same rights afforded non-licensees under the LICENSES.

	 	B.	 	The COMPANY will not pay interest on capital contributions.
	 
	 	C.	 	Each MEMBER confirms to the COMPANY and to the other MEMBERS that it and/or its
principal equity owners are experienced in the oil and gas industry and that it is
fully aware of the risks involved in the venture set forth in this AGREEMENT.

	6.	 	Management of the Company.

	 	A.	 	JEX will manage the business, affairs and day-to-day operations of the COMPANY
and, except as hereinafter provided, will make all decisions with respect to the
foregoing and the strategic direction of the COMPANY. JEX may appoint from time to time
one or more natural persons to exercise the functions, however designated, of
President, Chief Executive Officer, Chief Operating Officer, Vice President, Treasurer
and Secretary as may be required by, or allowed by, the Delaware Limited Liability
Company Act and to cause the COMPANY from time to time to enter into an indemnification
agreement or agreements with such natural persons.
	 
	 	B.	 	As part of its management responsibilities, JEX will, for and on behalf of the
COMPANY, acquire, analyze, process and/or reprocess, interpret and use the

 - 2 - 

 

	 	 	 	DATA to identify hydrocarbon prospects in which the COMPANY should acquire an interest;
and, except as hereinafter provided, JEX will make all decisions with respect to the
acquisition of DATA and leases, the development of prospects and the exploitation of
production from the prospects.

	 	C.	 	Before the COMPANY acquires an interest in any prospect (other than prospects to be bid upon
at regularly scheduled federal and/or state lease sales), JEX will advise the other MEMBERS of
the prospect and its potential risks; the terms and other details of the interest to be
acquired, including whether that interest will be acquired alone or in conjunction with one or
more other parties; the manner in which the COMPANY will develop the prospect; the estimated
cost to the COMPANY to acquire the interest and develop the prospect; and any other
information about the venture that the other MEMBERS may request. Prior to bidding upon
prospects at federal and/or state lease sales, JEX will advise the other MEMBERS in general
terms of the number of prospects the COMPANY expects to bid on and the approximate dollars the
COMPANY anticipates exposing at any such lease sale. Immediately following the lease sale, JEX
will provide the other MEMBERS with full particulars regarding the COMPANY’s participation at
such sale.
	 
	 	 	 	Notwithstanding the foregoing paragraph, if, under Section 6.D(ii) below, JEX may
cause the COMPANY to acquire an interest in a prospect without the approval of the other
MEMBERS, and if JEX determines that the COMPANY may lose a worthwhile opportunity if JEX
must report about the prospect to the other MEMBERS before the acquisition is made, then
JEX may cause the COMPANY to acquire the interest before making the report; and if JEX does
so, then JEX will promptly thereafter advise the other MEMBERS of the information required
under the foregoing paragraph.

	 	D.	 	JEX may, without the approval of the other MEMBERS, cause the COMPANY to do any of the
following and to enter into agreements to accomplish the same:

	 	(i)	 	license or acquire DATA, provided the cost to the COMPANY does not
exceed Two Hundred Thousand Dollars ($200,000.00);
	 
	 	(ii)	 	acquire an interest in a prospect, either alone or in conjunction with
one or more other parties, and make all arrangements with respect to that interest and
prospect, provided JEX’s estimated cost for the COMPANY to acquire the interest and
develop the prospect does not exceed Two Million Dollars ($2,000,000.00);
	 
	 	(iii)	 	borrow up to and including Ten Million Dollars ($ 10,000,000.00) in
connection with any prospect in which the COMPANY has acquired an interest and
grant a security interest in the COMPANY’s interest in that prospect to secure the
COMPANY’s obligations in respect of that borrowing;

 - 3 - 

 

	 	(iv)	 	sell, lease or otherwise dispose of any asset of the COMPANY which has a
reasonable value not exceeding One Million Dollars ($1,000,000.00);
	 
	 	(v)	 	settle any claim for an amount not exceeding One Hundred Thousand
Dollars ($100,000.00); and
	 
	 	(vi)	 	apart from the direct costs and expenses to acquire, interpret, evaluate
and reprocess the DATA and acquire interests in and develop prospects, budget and
incur expenses for the operation of the COMPANY not in excess of One Million Dollars
($1,000,000.00) per fiscal year of the COMPANY. Beginning with fiscal year 2004, JEX
will prepare the budget for each fiscal year, with expenses itemized, and furnish the
other MEMBERS a copy thereof.

	 	In making its estimate of the cost to the COMPANY to acquire an interest and develop a
prospect, JEX may take into account investments by participants to the extent that JEX
reasonably and in good faith determines that it can obtain participation by others in the
prospect.
	 
	 	The amounts set forth in items (i) through (vi) above may be amended according to the
determination of two (2) or more MEMBERS owning at least fifty-one percent (51%) of the
profits of the COMPANY.

	 	E.	 	Approval by two (2) or more MEMBERS owning at least fifty-one percent (51%) of the profits of
the COMPANY will be required for any matter described in Section 6.D above for which
JEX does not have sole authority; for the COMPANY to borrow money or enter into any agreement
other than for the express purposes in the express situations described in Section 6.D
above; for the COMPANY to lend money or issue a guarantee; except as provided in
Section 6.D(vi) above, for the COMPANY to engage the services of anyone; and for
the COMPANY to arrange the defense or prosecution of any claim.
	 
	 	F.	 	Approval by all of the MEMBERS will be required for the COMPANY to merge, consolidate or
otherwise combine with another entity, make an assignment for the benefit of creditors or seek
relief under any bankruptcy, insolvency or similar law and engage in any business other than
that set forth in Section 4 above.
	 
	 	G.	 	In addition to the capital contributions provided in Section 5 above and revenues of the
COMPANY, the money to finance the business of the COMPANY may be derived from (i) loans and
extensions of credit to the COMPANY from third parties permitted by this AGREEMENT and (ii)
MEMBER LOANS.
	 
	 	 	 	In order to satisfy the financial needs of the COMPANY, Juneau may cause the COMPANY to
borrow from banks, lending institutions or other third parties, and to pledge COMPANY
properties to secure or provide for the payment of such loans in accordance with and within
the amounts described in Section 6.D above; and all the Members may cause the
COMPANY to borrow from banks, lending institutions or other third parties, and to pledge
properties to secure or provide for

 - 4 - 

 

	 	 	 	the payment of such loans for amounts in excess of those described in Section
6.D above.

	 	 	 	If Juneau determines that additional funds are required, and unless the COMPANY can
borrow funds from third parties on terms and conditions reasonably acceptable to
Juneau and/or the MEMBERS, with due regard being given to the particular needs of
the COMPANY, Juneau shall give written notice to all of the MEMBERS which notice
shall state the amount of additional funds required and a date upon which the
MEMBERS wishing to participate therein may make loans to the COMPANY (“MEMBER
LOANS”) in the amount of such additional funds. If there is more than one MEMBER who
desires to advance such funds to the COMPANY, each such MEMBER shall be entitled to
advance such portion of the needed funds in proportion to the capital account (as of
the date such MEMBER LOANS are required) of such MEMBER bears to the aggregate
capital accounts (as of the date such MEMBER LOANS are required) of all such MEMBERS
desiring to so advance, or in such other proportions as they shall otherwise
mutually agree upon. MEMBER LOANS made on or after the date hereof shall be made on
such terms and conditions, including interest rates and maturity dates, as Juneau
and/or the MEMBERS shall determine. Payment of interest and principal on MEMBER
LOANS shall be made in accordance with these terms and as determined by Juneau
and/or the MEMBERS.
	 
	 	H.	 	At the request of any MEMBER, the MEMBERS will meet to discuss the
business of the COMPANY.
	 
	 	I.	 	The MEMBERS will record, in writings signed by them, their
approvals, agreements, determinations and other actions under or in respect of
this AGREEMENT.

	7.	 	Compensation; Expenses.

	 	A.	 	The COMPANY will grant to certain JEX employees (as designated by JEX), by an
instrument substantially in the form of EXHIBIT 7.A hereto, an overriding
royalty of three and one-third percent (3-1/3%) of one hundred percent (100%)
(proportionately reducible as provided in EXHIBIT 7.A) burdening any oil, gas
and/or mineral interest that the COMPANY acquires.
	 
	 	B.	 	Except as expressly provided in this AGREEMENT, the MEMBERS will not be
entitled to compensation or reimbursement for their services to the COMPANY or for the
services of their employees to the COMPANY. Further, the MEMBERS will cause their
employees not to seek compensation from the COMPANY, and each MEMBER will indemnify the
COMPANY against and hold it harmless from any claims for compensation by any of its
employees and any expenses (including, without limitation, legal fees) that the COMPANY
incurs in connection with any such claim

 - 5 - 

 

	 	C.	 	The MEMBERS will pay their own expenses (including, without limitation,
legal fees) in connection with the preparation and negotiation of this AGREEMENT,
but the COMPANY will reimburse JEX for the filing fees and service company fees to
establish the COMPANY and to qualify the COMPANY to do business in Texas, Louisiana
and any other venues or governing bodies deemed necessary by JEX.

	8.	 	Profits and Losses; Taxation.

	 	A.	 	The MEMBERS will have the following interests in the profits
of the COMPANY:

	 	 	 	 	 
	JEX
	 	 	25	%
	COE O/S
	 	 	65.63	%
	CGM
	 	 	9.37	%

	 	 	 	The losses of the COMPANY for any fiscal year will be shared by the MEMBERS in
proportion to their capital accounts on the day before the last day of that fiscal
year. The capital accounts of the MEMBERS will be determined in accordance with the
requirements of the Internal Revenue Code and the rules and regulations thereunder
from time to time in effect (collectively called the “CODE”).
	 
	 	B.	 	The profits and losses of the COMPANY and items of income, gain, loss,
deduction, expense, credit and similar items will be determined by the COMPANY’s
accountants in accordance with generally accepted accounting principles.
	 
	 	C.	 	The COMPANY will be treated as a partnership for federal income tax purposes
and, wherever possible, for state and local income tax purposes.
	 
	 	 	 	The COMPANY will make the following elections for its first and subsequent tax
years:

	 	(i)	 	to deduct currently, in accordance with the CODE and the relevant
provisions of state law, all intangible drilling and development costs with
respect to drilling productive and non-productive wells and the preparation
of wells for the production of hydrocarbons;
	 
	 	(ii)	 	to recover the basis of recovery property using the maximum
recovery rate permitted by the CODE; and
	 
	 	(iii)	 	to deduct expenses of organizing the COMPANY ratably over a
sixty (60) month period in accordance with Section 709 of the CODE.

	 	 	 	The COMPANY will make all other elections required, or permitted to be made, by it
under the CODE or applicable state law in accordance with the written agreement of
all of the MEMBERS.

 - 6 - 

 

	 	 	 	The COMPANY will elect JEX the tax matters MEMBER under and pursuant to the CODE.
JEX will have authority to apply the provisions of this AGREEMENT relating to the
maintenance of capital accounts and the allocation of profits and losses and of each
item of income, gain, loss and deduction of the COMPANY so as to comply with
Treasury Regulation Sections 1.704-l(b) and 1.704-2 from time to time in effect. In
the event JEX determines it is prudent to modify any allocations of profits or
losses or items of income, gain, loss or deduction, or debits or credits, or the
manner in which they are computed, in order to comply with said Treasury
Regulations, then JEX may make such modification provided that such modification
will not have a material effect on the allocation of profits or losses or on cash or
other property in kind that would otherwise be allocable or distributable to any
MEMBER pursuant to this AGREEMENT had no such modification been made. JEX will
promptly notify the other MEMBERS of any modification that it makes under this
paragraph and of the nature, extent and effect of the modification.
	 
	 	D.	 	If a MEMBER transfers all or a part of its interest in the COMPANY (see Section
13), the COMPANY may, but will not be required to, elect to adjust the basis of the
COMPANY’s property in accordance with the provisions of the CODE from time to time in
effect. The COMPANY will make this election only in accordance with the written
agreement of all of the MEMBERS.
	 
	 	E.	 	The COMPANY and its MEMBERS will use their best efforts to cause the firm that
audits the COMPANY’s financial statements to sign the COMPANY’s federal income tax
return as preparer thereof. The MEMBERS will also use their best efforts to cause the
COMPANY to furnish the MEMBERS, within ninety (90) days after the close of the
COMPANY’s fiscal year, all information reasonably necessary for the MEMBERS to prepare
their federal income tax returns.

	9.	 	Distributions.

	 	A.	 	Distributions by the COMPANY will be made to the MEMBERS in the same
percentages as their interests in the profits of the COMPANY.
	 
	 	B.	 	During each of its fiscal years, the COMPANY will set aside and maintain, in a
separate interest bearing account, forty percent (40%) of the revenues it receives, as
it receives them (the funds so set aside and the interest thereon are called the “TAX
RESERVE”). If the MEMBERS have taxable income from the COMPANY for a fiscal year, the
COMPANY will distribute to the MEMBERS, from and to the extent of the TAX RESERVE for
that year, an amount equal to forty percent (40%) of the aggregate taxable income of
the MEMBERS from the COMPANY for that fiscal year. To the extent the TAX RESERVE for
any fiscal year is not distributed to the MEMBERS, it will be used for the general
purposes of the COMPANY.

 - 7 - 

 

	 	C.	 	Except as provided above, the COMPANY will make distributions to the MEMBERS only
in accordance with the determination of all of the MEMBERS; provided,
however, any MEMBER may request a meeting by written notice to the other
MEMBERS to discuss a recommendation for a distribution.
	 
	 	D.	 	The COMPANY will not make distributions to the MEMBERS before year 2004.

	10.	 	Bank Accounts.

	 	A.	 	The COMPANY will maintain bank accounts at such banks with such
signatories having such authority as two (2) or more MEMBERS owning at least fifty-one
percent (51 %) of the profits of the COMPANY determine.

	11.	 	Books and Records; Financial Statements.

	 	A.	 	Unless two (2) or more MEMBERS owning at least fifty-one percent (51%) of the
profits of the COMPANY decide otherwise, JEX will keep the books and records of the
COMPANY and will prepare and furnish to the other MEMBERS quarterly and annual balance
sheets and profit and loss and cash flow statements and such other reports as the
MEMBERS deem appropriate.
	 
	 	B.	 	The COMPANY will maintain its books and records on an accrual basis.
	 
	 	C.	 	The COMPANY’s fiscal year will end on June 30th, and its first fiscal year will
end June 30, 2003.
	 
	 	D.	 	The COMPANY will engage the services of an independent accounting firm to audit
the COMPANY’s annual balance sheet and profit and loss statement.
	 
	 	E.	 	Any MEMBER may examine the books and records of the COMPANY during normal
business hours.

	12.	 	[Reserved]. 

	 	 	A.

	13.	 	Resignation; Expulsion; Assignment.

	 	A.	 	A MEMBER may not resign from the COMPANY prior to its dissolution and winding
up.
	 
	 	B.	 	A MEMBER may not be expelled from the COMPANY.
	 
	 	C.	 	Prior to the dissolution and winding up of the COMPANY, a MEMBER may not
assign, transfer, encumber or otherwise dispose of all or a portion of its interest in
the COMPANY (including its interest in profits and losses) except for (i) transfers on
the dissolution or death of a MEMBER, but in either of these cases the transfer may
only be to the shareholders, members or heirs, as the case may be, of the

 - 8 - 

 

	 	 	 	MEMBER and (ii) transfers approved by all of the MEMBERS other than the MEMBER which
is transferring its interest. Any assignment, transfer, encumbrance or other
disposition of a MEMBER’s interest in the COMPANY in violation of the provisions of
this AGREEMENT will be null and void.

	 	D.	 	A transferee (other than the COMPANY) of all or a portion of a MEMBER’s
interest in the COMPANY pursuant to the provisions of this AGREEMENT is called a
“TRANSFEREE.” A TRANSFEREE that is not a MEMBER of the COMPANY at the time of the
transfer will, without further act, become and be a MEMBER of the COMPANY. A TRANSFEREE
will be subject to the terms and provisions of this AGREEMENT, will be entitled to the
rights and benefits of the transferor (“TRANSFEROR”) to the extent of the interest
transferred and will be subject to the obligations of the TRANSFEROR to the extent of
the interest transferred; but a TRANSFEREE that is not a signatory to this AGREEMENT at
the time of the transfer will not be entitled to receive any distributions unless and
until that TRANSFEREE executes this AGREEMENT by signing an instrument in the form of
EXHIBIT 13.D-1 hereto. In addition, if a MEMBER transfers all or a portion of
its interest in the COMPANY, all of the MEMBERS will enter into an amendment of this
AGREEMENT, substantially in the form of
EXHIBIT 13.D-2 hereto, reflecting the changes in the ownership of the
profits and losses of the COMPANY resulting from the transfer and any other matters
to which the MEMBERS and a TRANSFEREE agree.
	 
	 	 	 	A TRANSFEROR and TRANSFEREE will agree between themselves as to the allocation
between them of the profits and losses and items of income, gain, loss, deduction,
expense, credit and similar items for the fiscal year in which the transfer occurs,
and they will jointly advise the COMPANY in writing of their allocation.
	 
	 	E.	 	The COMPANY may not transfer or assign any of its rights under this
AGREEMENT, and any such transfer will be null and void.

	14.	 	Events of Bankruptcy. None of the events listed in Section 18-304 of the ACT (EVENTS
OF BANKRUPTCY) will result in a MEMBER ceasing to be a MEMBER of the COMPANY.
	 
	15.	 	Dissolution.

	 	A.	 	The COMPANY will be dissolved and its affairs will be wound up upon the
occurrence of any of the following: (i) approval by all of the MEMBERS; (ii) the
election of any MEMBER, made by written notice to the COMPANY and the other MEMBERS,
at any time after the dissolution of or cessation of business by JEX, or after the
death of John B. Juneau, or John B. Juneau’s ceasing to control JEX, including any
incapacity that renders John B. Juneau incapable of controlling JEX; or (iii) the
election of any MEMBER (other than the MEMBER in breach or default), made by written
notice to the COMPANY and the other MEMBERS, within a period of one hundred twenty
(120) days after a MEMBER

 - 9 - 

 

	 	 	 	materially breaches this AGREEMENT or materially defaults in any of its obligations
under this AGREEMENT. The right to elect to dissolve the COMPANY because of a breach
or default is in addition to any other rights and remedies each MEMBER has by reason
of that breach or default.

	 	 	 	Control means the ability to control or determine the management of an entity,
whether by voting power or other means.
	 
	 	 	 	Except as provided above, the dissolution or death of a MEMBER or the occurrence of
any other event which terminates the membership of a MEMBER in the COMPANY will not
result in the dissolution and winding up of the COMPANY.
	 
	 	B.	 	On the dissolution and winding up of the COMPANY, after the obligations
of the COMPANY have been paid or provided for, the COMPANY will distribute its
remaining assets to the MEMBERS in the same percentages as their interests in the
profits of the COMPANY.

	16.	 	Indemnity.

	 	A.	 	The COMPANY will indemnify each of the MEMBERS, their officers and employees
from and against any claim, demand, liability, fine or expense (including, without
limitation, reasonable legal fees and disbursements, court costs and the cost of
appellate proceedings) arising out of any act or inaction by a MEMBER done in good
faith and reasonably believed by such MEMBER to be in the best interests of the COMPANY
and provided, in the case of any fine, that such MEMBER had no reasonable cause to
believe its conduct was unlawful.
	 
	 	B.	 	The COMPANY will, to the extent approved by all of the MEMBERS (other than the
one seeking indemnity), pay the expenses of a MEMBER seeking indemnity in advance of
the final disposition of the matter upon receipt of an undertaking from that MEMBER
satisfactory to those MEMBERS to repay the amount advanced if it is ultimately
determined that the MEMBER seeking indemnity is not entitled to indemnification. The
MEMBERS required to approve the payment of these expenses will grant such approval if
they determine that the MEMBER seeking indemnity will, in fact, be entitled to
indemnity under Section 16.A and to the extent that they determine that the
payment of those expenses will not jeopardize the COMPANY.
	 
	 	C.	 	Each MEMBER will indemnify each other MEMBER, its officers and employees from
and against any liability and any loss, damage or expense (including, without
limitation, reasonable legal fees and disbursements, court costs and the cost of
appellate proceedings) arising out of any claim by a third party against the indemnitee
because of any act or inaction by the indemnitee which does not constitute negligence,
gross negligence willful misconduct, malfeasance, a breach of duty or other wrongdoing-but only to the extent that the COMPANY does not perform its obligation to the
indemnitee under Section 16.A, and then only for a

 - 10 - 

 

	 	 	 	portion of the COMPANY’s unperformed obligation equal to the product of such
unperformed obligation and the indemnitor’s percentage interest in the profits of
the COMPANY at the time of the occurrence giving rise to the indemnification.

	 	D.	 	No MEMBER will incur liability to any other MEMBER, and no MEMBER will have a
claim against any other MEMBER, because of an error or mistake in judgment made in
good faith and in what the MEMBER believed to be in the best interests of the COMPANY.
	 
	 	E.	 	No MEMBER will have any liability to the COMPANY or any other MEMBER with
respect to any deficit in its capital account.

	17.	 	Amendment; Admission of New Members.

	 	A.	 	This AGREEMENT may be amended only by an instrument in writing signed by all
of the MEMBERS.
	 
	 	B.	 	The certificate of formation of the COMPANY may be amended only by an
instrument in writing signed by all of the MEMBERS.
	 
	 	C.	 	Except as provided in Section 13, a person may not become a MEMBER in
the COMPANY unless that person’s admission is approved by all of the MEMBERS as
evidenced by an amendment to this AGREEMENT signed by all of the MEMBERS and by that
person.

	18.	 	Waiver. The COMPANY and each MEMBER of the COMPANY may not waive any of its rights or
any obligation of another or any provision of this AGREEMENT except by an instrument in
writing signed by the party issuing the waiver.
	 
	19.	 	Severability. If any provision of this AGREEMENT or the application of any such
provision to any individual, corporation or other entity or to any circumstance is held
invalid, the remainder of this AGREEMENT, and the application of such provision, other than to
the extent it is held invalid, will not be invalidated or affected thereby.
	 
	20.	 	Governing Law; Submission to Jurisdiction. This AGREEMENT and the rights and
obligations of the MEMBERS of the COMPANY will be governed by and construed in accordance with
the laws of the State of Delaware. For purposes of any proceeding involving this AGREEMENT or
any of the rights or obligations of any of the MEMBERS, each MEMBER hereby submits to the
non-exclusive jurisdiction of the courts of the State of Delaware and agrees not to raise and
waives any objection to or defense based upon the venue of any such court or based upon forum
non conveniens. Each MEMBER and the COMPANY agree not to bring any action or other proceeding
with respect to this AGREEMENT or the COMPANY or with respect to any of the rights or
obligations of any of the MEMBERS of the COMPANY in any other court unless such courts of the
State of Delaware determine that they do not have jurisdiction in the matter.
	 
	21.	 	Entire Agreement. This AGREEMENT contains the entire agreement of the parties with respect to
the subject matter hereof, and it supersedes all prior understandings and

 - 11 - 

 

	 	 	agreements, whether written or oral, and all prior dealings of the parties with respect to
the subject matter hereof.

	22.	 	Execution by the Company. By executing this AGREEMENT, the COMPANY agrees to abide by and to
be bound by all of the terms of this AGREEMENT.
	 
	23.	 	Section Headings. Section headings are for reference purposes only and will not in any way
affect the meaning or interpretation of any provision of this AGREEMENT.

[Signature on following page]

 - 12 - 

 

     IN WITNESS WHEREOF, the MEMBERS have executed this AGREEMENT as of the day and year first
written above.

	 	 	 	 	 
	 	JUNEAU EXPLORATION, L.P.
 	 
	 	By:  	Juneau GP, LLC,  Its General Partner,
	 

	 	 	 	 	 
	 	By:  	                                                   /s/ John B. Juneau
 	 
	 	 	John B. Juneau  	 
	 	 	Sole Manager 	 
	 
	 	COE OFFSHORE, LLC

 	 
	 	By:  	/s/ Kenneth R. Peak
 	 
	 	 	Kenneth R. Peak 	 
	 	 	Chairman and CEO 	 

	 	 	 	 	 
	 	CGM II, LP
 	 
	 	By:  	CGM GP, LLC
 	 
	 	 	General Partner 	 
	 	 	 
	 	By:  	                                                   /s/ Mark  S. Muller
 	 
	 	 	Mark  S. Muller 	 
	 	 	Manager 	 
	 

ACKNOWLEDGED AND AGREED:

CONTANGO OFFSHORE

EXPLORATION LLC

By: Juneau Exploration, L.P.

By: Juneau GP, LLC, its General Partner

	 	 	 	 	 
	By:

	 	/s/ John B. Juneau	 	 
	 

	 	 

John B. Juneau
	 	 
	 

	 	Sole Manager	 	 

[Signature Page to LLC Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]