Document:

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                                                                   EXHIBIT 10.1
                               SECOND AMENDMENT TO
                      AMENDED AND RESTATED CREDIT AGREEMENT

      This Second Amendment to Amended and Restated Credit Agreement (this
"SECOND AMENDMENT") dated as of July 16, 2004, to be effective as set forth in
Section 4 hereof, is among Comstock Resources, Inc., a Nevada corporation
("BORROWER"), the financial institutions party hereto, and Bank of Montreal, as
administrative agent and as letter of credit issuing bank.

                              PRELIMINARY STATEMENT

      A. The Borrower has entered into a certain Amended and Restated Credit
Agreement dated as of February 25, 2004, among Borrower, the lenders party
thereto (the "LENDERS"), Bank of Montreal, as administrative agent (in such
capacity, the "ADMINISTRATIVE AGENT") and as issuing bank (in such capacity, the
"ISSUING BANK"), Bank of America, N.A., as syndication agent, and Comerica Bank,
Fortis Capital Corp., and Union Bank of California, N.A., as co-documentation
agents, as amended by that certain First Amendment to Amended and Restated
Credit Agreement dated as of March 31, 2004 (such Amended and Restated Credit
Agreement, as so amended and as otherwise amended, restated or supplemented from
time to time until the date hereof, the "CREDIT AGREEMENT").

      B. The Borrower and Comstock Offshore, LLC ("COL") intend to enter into
(i) a certain Contribution Agreement dated as of July 1, 2004 (the "BDA
CONTRIBUTION AGREEMENT"), and (ii) a certain Operating Agreement of Bois d'Arc
Energy, LLC dated as of July 1, 2004 (the "BDA OPERATING AGREEMENT"; and
together with the BDA Contribution Agreement and all other documents
contemplated thereby, collectively, the "BDA FORMATION DOCUMENTS"), each by and
among Bois d'Arc Energy, LLC, a Nevada limited liability company ("BOIS D'ARC
ENERGY"), Bois d'Arc Properties, LP, a Nevada limited partnership ("BOIS D'ARC
PROPERTIES"), Bois d'Arc Resources, Ltd., a Texas limited partnership, Wayne L.
Laufer, Gary W. Blackie, Haro Investments, LLC, a Texas limited liability
company and the other persons listed on the signature pages thereto
(collectively, the "BDA CONTRIBUTORS"), COL, and Borrower.

      C. Pursuant to the terms of the BDA Formation Documents, (i) COL will
contribute its interest in certain oil and gas properties described on Schedule
I attached hereto to Bois d'Arc Properties, (ii) Wayne L. Laufer and Gary W.
Blackie will contribute their respective partnership interests in Bois d'Arc
Offshore, Ltd., a Texas limited partnership and their membership interests in
Bois d'Arc Oil & Gas Company, LLC, a Texas limited liability company, to Bois
d'Arc Energy, and (iii) the BDA Contributors will contribute their respective
interests in certain oil and gas properties to Bois d'Arc Properties.

      D. The Borrower intents to enter into (i) a certain Services Agreement
with Bois d'Arc Energy pursuant to which the Borrower will provide certain
general and administrative services to the Bois d'Arc Entities and (ii) a
certain Loan Agreement dated as of July 1, 2004, among the Borrower, as lender,
and Bois d'Arc Energy, Bois d'Arc Properties and Bois d'Arc Offshore, Ltd., as
borrowers, (the "BOIS D'ARC LOAN AGREEMENT") pursuant to which the Borrower may
advance loans from time to time.

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      E. The Borrower, COL and the BDA Contributors intend for Bois d'Arc Energy
to obtain financing independent of the Credit Agreement and the Bois d'Arc Loan
Agreement by conducting an initial public offering of Bois d'Arc Energy's equity
interests or by causing Bois d'Arc Energy to enter into a debt financing,
provided that if neither transaction has been consummated prior to a date
specified in the BDA Operating Agreement, the Borrower, COL and the BDA
Contributors have agreed to cause the Bois d'Arc Entities to reconvey all of
their properties to the Person that originally contributed such property to the
applicable Bois d'Arc Entity and to take such further action as may be necessary
to return each of the Borrower, COL and each BDA Contributor to a position as
near as possible to the same economic position that each such Person would have
been in had the original contributions by each such Person never occurred and
Bois d'Arc Energy never been formed.

      F. Borrower has requested that the Lenders, the Administrative Agent and
the Issuing Bank consent to the transactions contemplated by the BDA Formation
Documents and modify the Credit Agreement in certain respects to facilitate such
transactions.

      G. Subject to the terms and conditions of this Second Amendment, the
Lenders, the Administrative Agent and the Issuing Bank have agreed to enter into
this Second Amendment in order to effectuate such amendments and modifications.

      NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements set forth herein, the parties agree as follows:

      Section 1. DEFINITIONS. Unless otherwise defined in this Second Amendment,
each capitalized term used in this Second Amendment (including in the
preliminary statement above) has the meaning assigned to such term in the Credit
Agreement.

      Section 2. AMENDMENT OF CREDIT AGREEMENT.

            (a) Section 1.1 of the Credit Agreement is hereby amended by
      inserting the following definitions of "BDA Contribution Agreement", "BDA
      Contributors", "BDA Formation Documents", "BDA Operating Agreement", "BDA
      Services Agreement", "BDA Unwind Transaction", "Bois d'Arc Energy", "Bois
      d'Arc Entities", "COL Contributed Properties", "Restricted Subsidiary" and
      "Unrestricted Subsidiary" in the alphabetically appropriate places
      therein.

            " "BDA Contribution Agreement" means that certain Contribution
            Agreement dated as of July 1, 2004 by and among the BDA
            Contributors, COL, and Borrower."

            " "BDA Contributors" means, collectively, Bois d'Arc Resources,
            Ltd., a Texas limited partnership, Wayne L. Laufer, Gary W. Blackie,
            Haro Investments LLC, a Texas limited liability company, and the
            other persons listed on the signature pages thereto as BDA
            Contributor."

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            " "BDA Formation Documents" means, collectively, the BDA
            Contribution Agreement, the BDA Operating Agreement and all other
            documents contemplated thereby."

            " "BDA Operating Agreement" means that certain Operating Agreement
            of Bois d'Arc Energy, LLC dated as of July 1, 2004."

            " "BDA Services Agreement" means that certain Services Agreement
            dated as of July 1, 2004, entered into between Bois d'Arc Energy and
            the Borrower with respect to the provision of certain general and
            administrative services by the Borrower to the Bois d'Arc Entities."

            " "BDA Unwind Transaction" means the dissolution and liquidation of
            Bois d'Arc Energy and the reversal or unwinding of the transactions,
            conveyances, contributions, payments, assumptions of indebtedness
            and other actions or events set forth in the BDA Contribution
            Agreement, all in accordance with, and pursuant to, the terms of
            Section 17.7 of the BDA Operating Agreement."

            " "Bois d'Arc Energy" means Bois d'Arc Energy, LLC, a Nevada limited
            liability company."

            " "Bois d'Arc Entities" means Bois d'Arc Energy, Bois d'Arc
            Properties, LP, a Nevada limited partnership, Bois d'Arc Holdings,
            LLC, a Nevada limited liability company, Bois d'Arc Offshore, Ltd.,
            a Texas limited partnership, Bois d'Arc Oil & Gas Company, LLC, a
            Texas limited liability company, and any other Subsidiary of Bois
            d'Arc Energy."

            " "COL Contributed Properties" means those Oil and Gas Properties
            described in Schedule 1.1 to the BDA Contribution Agreement."

            " "Restricted Subsidiary" means (a) each of COGI GP, COGI LP, COGI,
            COGH, COGLA, COL and, prior to the sooner to occur of (i) the
            satisfaction of each of the conditions set forth in Section 2.15 and
            (ii) the consummation of the BDA Unwind Transaction and the
            satisfaction of each of the conditions set forth in Section 2.16,
            Bois d'Arc Energy and each of the other Bois d'Arc Entities, and (b)
            each other Subsidiary of the Borrower that is not designated as an
            Unrestricted Subsidiary pursuant to Section 1.6."

            " "Unrestricted Subsidiary" means (a) from and after the
            satisfaction of each of the conditions set forth in Section 2.15,
            Bois d'Arc Energy and each of the other Bois d'Arc Entities, and (b)

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            each other Subsidiary of the Borrower designated by the Borrower as
            an Unrestricted Subsidiary in accordance with, and subject to the
            satisfaction of the conditions set forth in, Section 1.6."

            (b) Section 1.1 of the Credit Agreement is hereby further amended by
      amending and restating the definition of "Guarantor" to provide:

            " "Guarantors" means each of the Subsidiaries listed in Part (b) of
            Schedule 5.13 and each other Subsidiary of the Borrower that shall
            have executed and delivered a Guaranty to the Administrative Agent
            for the benefit of the Lenders; provided that upon the release of
            any Subsidiary's Guaranty in accordance with this Agreement, such
            Subsidiary shall thereafter be excluded from the definition of
            "Guarantors" (unless and until such Subsidiary shall thereafter
            deliver another Guaranty)."

            (c) The definition of "Material Adverse Effect" in Section 1.1 of
      the Credit Agreement is hereby amended by deleting the word "Subsidiaries"
      each place such word appears therein and inserting in place thereof the
      words "Restricted Subsidiaries".

            (d) The Credit Agreement is hereby amended by inserting the
      following new Section 1.6 immediately following the existing Section 1.5:

            "SECTION 1.6 DESIGNATION AND CONVERSION OF RESTRICTED AND
            UNRESTRICTED SUBSIDIARIES.

            (a) As of July 1, 2004 and, unless designated in writing to the
            Administrative Agent by the Borrower and approved by the
            Administrative Agent and the Majority Lenders in accordance with
            clause (b) below or, with respect to Bois d'Arc Energy and the other
            Bois d'Arc Entities only, as provided in Section 2.15, at all times
            thereafter, any Person that becomes a Subsidiary of the Borrower or
            any of its Restricted Subsidiaries shall be classified as a
            Restricted Subsidiary.

            (b) Any Subsidiary of the Borrower (including a newly formed or
            newly acquired Subsidiary) may be designated (or redesignated) as an
            Unrestricted Subsidiary if (i) the Administrative Agent shall have
            received (1) a written request from the Borrower specifying the
            applicable Subsidiary and such other information as the
            Administrative Agent may reasonably request, (2) the written consent
            of the Administrative Agent and the Majority Banks approving such
            designation, and (3) a certificate of a Responsible Officer of the
            Borrower that no Default or Event of Default shall then exist or
            would result from such designation (after giving effect to such
            designation), and (ii) such designation is deemed to be an
            Investment in an amount equal to the fair market value of

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            Borrower's direct and indirect ownership interest in such Subsidiary
            and such Investment would be permitted under Section 7.2 to be made
            at the time of such designation. Except as provided in this Section
            1.6(b) or, with respect to Bois d'Arc Energy and the other Bois
            d'Arc Entities only, as provided in Section 2.15, no Subsidiary may
            be designated (and no Restricted Subsidiary may be redesignated) as
            an Unrestricted Subsidiary.

            (c) Borrower may designate any Unrestricted Subsidiary to be a
            Restricted Subsidiary if after giving effect to such designation,
            (i) the representations and warranties of Borrower and its
            Restricted Subsidiaries contained in each of the Loan Documents are
            true and correct on and as of such date as if made on and as of the
            date of such redesignation (or, if stated to have been made
            expressly as of an earlier date, were true and correct as of such
            date), (ii) no Default or Event of Default then exists or would
            result from such redesignation (after giving effect to such
            redesignation), and (iii) the Borrower complies, or causes such
            Subsidiary to comply, with the requirements of Sections 6.16 and
            6.18."

            (e) Clause (i) of Section 2.3.1 of the Credit Agreement is hereby
      amended and restated in its entirety to provide as follows:

            "(i) Subject to the terms and conditions set forth herein, (A) the
            Issuing Bank agrees, in reliance upon the agreements of the other
            Lenders set forth in this Section 2.3, (1) from time to time on any
            Business Day during the period from the Closing Date until the
            Letter of Credit Availability Expiration Date, to issue Letters of
            Credit for the account of the Borrower and in the name of the
            Borrower or any of its Restricted Subsidiaries, and to amend or
            renew Letters of Credit previously issued by it, in accordance with
            subsection 2.3.2 below, and (2) to honor drafts under the Letters of
            Credit; and (B) the Lenders severally agree to participate in
            Letters of Credit issued for the account of the Borrower; provided
            that the Issuing Bank shall not be obligated to make any L/C Credit
            Extension with respect to any Letter of Credit, and no Lender shall
            be obligated to participate in, any Letter of Credit if as of the
            date of such L/C Credit Extension, (w) with respect to any renewal,
            extension or amendment to any previously issued Letter of Credit,
            the Restricted Subsidiary in whose name such Letter of Credit was
            originally issued (or was most recently renewed, extended or
            amended, if applicable) has become, or been redesignated as, an
            Unrestricted Subsidiary, (x) the Outstanding Amount of all L/C
            Obligations and all Loans would exceed the lesser of (A) the
            Aggregate Commitments on such date and (B) the Borrowing Base then
            in effect, (y) the aggregate Outstanding Amount of the Loans of any
            Lender, plus such Lender's Percentage Share of the

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            Outstanding Amount of all L/C Obligations would exceed the lesser of
            (A) such Lender's Commitment or (B) such Lender's Percentage Share
            of the Borrowing Base then in effect, or (z) the Outstanding Amount
            of the L/C Obligations would exceed the Letter of Credit Sublimit.
            Within the foregoing limits, and subject to the terms and conditions
            hereof, the Borrower's ability to obtain Letters of Credit shall be
            fully revolving, and accordingly the Borrower may, during the
            foregoing period, obtain Letters of Credit to replace Letters of
            Credit that have expired or that have been drawn upon and
            reimbursed."

            (f) The Credit Agreement is hereby amended by inserting the
      following new Sections 2.15 and 2.16 immediately following the existing
      Section 2.14:

            "SECTION 2.15 CONVERSION OF BOIS D'ARC ENTITIES TO UNRESTRICTED
            SUBSIDIARIES. Upon and concurrently with receipt by the
            Administrative Agent of each of the following:

            (a) all loans owed by Bois d'Arc Energy or any other Bois d'Arc
            Entity to the Borrower or any Restricted Subsidiary of the Borrower
            (other than Bois d'Arc Energy or any other Bois d'Arc Entity) have
            been repaid in cash in full; and

            (b) no Default or Event of Default then exists or would result from
            the redesignation of Bois d'Arc Energy and the other Bois d'Arc
            Entities as Unrestricted Subsidiaries; and

            (c) the sum of the Outstanding Amount of all Loans plus the
            Outstanding Amount of all L/C Obligations does not exceed 66 2/3% of
            the Borrowing Base then in effect; and

            (d) a Certificate of a Responsible Officer of the Borrower
            certifying that each of the conditions set forth in the foregoing
            clauses (a), (b) and (c) of this Section 2.15 has been satisfied and
            further certifying that Bois d'Arc Energy and each other Bois d'Arc
            Entity is redesignated as an Unrestricted Subsidiary from and as of
            the date of such Certificate; and

            (e) to the extent not previously delivered, a reserve report as of
            the most recent January 1 or July 1, prepared by, as applicable in
            accordance with Section 6.2(g), an independent engineering firm of
            recognized standing acceptable to the Majority Lenders or the
            Borrower, in either case in accordance with accepted industry
            practices and otherwise acceptable and in form and substance
            satisfactory to the Majority Lenders, with respect to all
            Hydrocarbons attributable to the Oil and Gas Properties of the
            Borrower and the Guarantors but excluding all Hydrocarbons

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            attributable to the Oil and Gas Properties of the Bois d'Arc
            Entities, and including without limitation all assets included in
            the Borrowing Base;

            then (A) Bois d'Arc Energy and each of the other Bois d'Arc Entities
            shall automatically and without further action be redesignated as
            Unrestricted Subsidiaries, (B) notwithstanding anything to the
            contrary in this Credit Agreement (including, without limitation,
            Section 2.1), the Borrower covenants and agrees that the aggregate
            Outstanding Amount of all Loans plus all L/C Obligations shall not
            exceed an amount equal to 66 2/3% of the Borrowing Base then in
            effect until such time as the Borrowing Base shall have been
            redetermined in accordance with Section 2.8 of this Agreement based
            on the reserve report delivered to the Administrative Agent and the
            Lenders pursuant to clause (b) above, (C) each Guaranty delivered by
            a Bois d'Arc Entity shall automatically be released, and (D) each
            Lender and the Issuing Bank hereby authorize the Administrative
            Agent to release all Security Documents encumbering any properties
            owned by any Bois d'Arc Entity, return all stock certificates
            evidencing equity interests of Bois d'Arc Energy and each other Bois
            d'Arc Entity then held by the Administrative Agent, if any, securing
            the Obligations of the Loan Parties and to do all things reasonably
            necessary to effectuate the release of all Liens in favor of the
            Administrative Agent for the benefit of itself, the Lenders and the
            Issuing Bank. For the avoidance of doubt, the Borrower, the
            Administrative Agent and the Lenders acknowledge that the
            redetermination of the Borrowing Base in accordance with clause (B)
            above in connection with the redesignation of the Bois d'Arc
            Entities as Unrestricted Subsidiaries shall not constitute a
            discretionary redetermination of the Borrowing Base by either the
            Borrower, on the one hand, or the Administrative Agent and the
            Lenders, on the other hand, pursuant to clause (a) of the definition
            of "Evaluation Date" and that the date of the redesignation of Bois
            d'Arc Entities as Unrestricted Subsidiaries in accordance with this
            Section 2.15 shall constitute the "Evaluation Date" for purposes of
            the redetermination of the Borrowing Base in accordance with clause
            (B) above.

            SECTION 2.16 BOIS D'ARC UNWIND TRANSACTION.

            Upon and concurrently with receipt by the Administrative Agent of
            each of the following:

            (a) each of the conditions set forth in Section 17.7 of the BDA
            Operating Agreement have occurred (and have not been waived or

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            suspended in accordance with the BDA Operating Agreement); and

            (b) a Certificate of a Responsible Officer of the Borrower
            certifying that the condition set forth in the foregoing clause (a)
            of this Section 2.16 has been satisfied and further certifying that
            no Default or Event of Default then exists or would result from the
            implementation of the BDA Unwind Transaction in accordance with the
            provisions of the BDA Operating Agreement; and

            (c) evidence reasonably satisfactory to the Administrative Agent
            that all of the properties contributed to any of the Bois d'Arc
            Entities by the Borrower or COL (including all Oil and Gas
            Properties contributed by, and all cash payments made by, the
            Borrower or COL) shall have been reconveyed or returned to the
            Borrower or COL, as applicable;

            then (A) each Guaranty delivered by a Bois d'Arc Entity shall
            automatically be released, and (B) each Lender and the Issuing Bank
            hereby authorize the Administrative Agent to release all Liens
            encumbering any properties owned by any Bois d'Arc Entity that were
            contributed by a BDA Contributor (but not Liens encumbering the COL
            Contributed Properties or any other properties contributed by the
            Borrower or COL), return all stock certificates evidencing equity
            interests of Bois d'Arc Energy and each other Bois d'Arc Entity then
            held by the Administrative Agent, if any, securing the Obligations
            of the Loan Parties and to do all things reasonably necessary to
            effectuate the foregoing."

            (g) Section 5.8 of the Credit Agreement is hereby amended by
      deleting the words "Subsidiary" and "Subsidiaries" each place such words
      appear therein and inserting in place thereof the words "Restricted
      Subsidiary" or "Restricted Subsidiaries", respectively.

            (h) Section 5.13(a) of the Credit Agreement is hereby amended and
      restated in its entirety to provide:

            "The Borrower has no Subsidiaries other than those specifically
            disclosed in Part (a) of Schedule 5.13. All Restricted Subsidiaries
            of Borrower are duly organized, validly existing and in good
            standing under the laws of their respective jurisdictions of
            organization and are duly qualified to do business in each
            jurisdiction where failure to so qualify would have an Material
            Adverse Effect. All outstanding shares of stock of each class of
            each Restricted Subsidiary of Borrower have been and will be validly
            issued and are and will be fully paid and nonassessable. Except as
            otherwise set forth on Schedule 5.13, all outstanding

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            shares of stock of each class of each Restricted Subsidiary of
            Borrower are and will be owned, beneficially and of record, by
            Borrower or a wholly-owned Subsidiary of Borrower. All outstanding
            shares of stock of each class of (i) Bois d'Arc Energy owned by the
            Borrower or any Restricted Subsidiary and (ii) each Restricted
            Subsidiary of Borrower, are and will be free and clear of any Liens
            (other than Liens permitted by Section 7.1).

            (i) The preliminary statement set forth at the beginning of Article
      VI of the Credit Agreement is hereby amended by deleting the word
      "Subsidiaries" each place such word appears therein and inserting in place
      thereof the words "Restricted Subsidiaries".

            (j) The introductory paragraph of clause (d) of Section 6.16 of the
      Credit Agreement and subclause (i) of Section 6.16(d) are hereby amended
      and restated in their entirety to provide:

            " (d) Additional Restricted Subsidiaries. Within thirty (30)
            Business Days after the Borrower or any Restricted Subsidiary
            creates, acquires or otherwise forms any other Subsidiary (other
            than a Subsidiary designated as an Unrestricted Subsidiary in
            accordance with Section 1.6(b)), the Borrower shall:

                  (i) execute and deliver, or cause each such Subsidiary owning
            any of the outstanding equity interests in such other Restricted
            Subsidiary to execute and deliver, as applicable, to the
            Administrative Agent on behalf of the Lenders, a Pledge Agreement,
            or an amendment or supplement to an existing Pledge Agreement, if
            appropriate, pursuant to which all of the outstanding equity
            interests in such other Restricted Subsidiary owned by the Borrower
            or such Restricted Subsidiary shall be pledged to the Administrative
            Agent on behalf of the Lenders, together with any certificates
            representing all equity interests so pledged, if any, and for each
            such certificate representing shares of stock, a stock power
            executed in blank;"

            (k) The Credit Agreement is hereby amended by inserting the
      following new Section 6.18 immediately following the existing Section
      6.17:

            "SECTION 6.18 UNRESTRICTED SUBSIDIARIES. The Borrower:

            (a) will cause the management, business and affairs of each of
            Borrower and its Subsidiaries to be conducted in such a manner
            (including, without limitation, by keeping separate books of
            account, maintaining separate policies of insurance and by not
            permitting Properties of Borrower and its respective Subsidiaries to
            be commingled) so that each Unrestricted Subsidiary will be

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            treated as an entity separate and distinct from Borrower and the
            Restricted Subsidiaries (except (i) with respect to the treatment
            for tax purposes of the Borrower or any Restricted Subsidiary
            holding any interest in an Unrestricted Subsidiary that is regarded
            as a partnership and (ii) for the common management/directorship
            between the Borrower and any Unrestricted Subsidiary);

            (b) except as permitted by Section 7.3(e), will not, and will not
            permit any of the Restricted Subsidiaries to, incur, assume or
            suffer to exist Guaranty Obligations or be or become liable for any
            Indebtedness of any Unrestricted Subsidiary; and

            (c) will not permit any Unrestricted Subsidiary to hold any equity
            interest in, or any Indebtedness of, the Borrower or any Restricted
            Subsidiary."

            (l) The preliminary statement set forth at the beginning of Article
      VII of the Credit Agreement is hereby amended by deleting the word
      "Subsidiaries" each place such word appears therein and inserting in place
      thereof the words "Restricted Subsidiaries".

            (m) Clause (h) of Section 7.1 of the Credit Agreement is hereby
      amended and restated in its entirety to provide:

            "(h) Liens existing pursuant to a Subordinate Mortgage to the
            extent, but only to the extent, that the properties subject to such
            Subordinate Mortgage are then, or will be prior to the recordation
            of such Subordinate Mortgage, mortgaged to the Administrative Agent
            for the benefit of the Lenders pursuant to a Mortgage."

            (n) Clauses (a), (b), (c) and (d) of Section 7.2 of the Credit
      Agreement are hereby amended and restated in their entirety to provide:

            "(a) Investments other than those permitted by subsections (b)
            through (i) existing on the date hereof and listed on Schedule 7.2;

            (b) Investments held by the Borrower or such Restricted Subsidiary
            in the form of cash equivalents;

            (c) advances to officers, directors and employees of the Borrower or
            any Restricted Subsidiary in an aggregate amount not to exceed
            $50,000 at any time outstanding, for travel, entertainment,
            relocation and analogous ordinary business purposes;

            (d) Investments constituting (1) contributions of capital (but not
            loans or advances) made by the Borrower in any Guarantor other than
            Bois d'Arc Energy or any other Bois d'Arc Entity or by any Guarantor
            in any other Guarantor other than Bois d'Arc

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            Energy or any other Bois d'Arc Entity, (2) loans or advances by the
            Borrower in any Guarantor, provided that such Investment
            constituting a loan or advance shall be evidenced by a Pledged Note
            pledged to the Administrative Agent pursuant to a Pledge Agreement
            and (3) loans or advances deemed to have been made by Bois d'Arc
            Energy to its members in lieu of the distribution of "Tax
            Distributions" (as defined in the BDA Operating Agreement) owed to
            such members by Bois d'Arc Energy;"

            (o) Section 7.2 of the Credit Agreement is hereby further amended by
      deleting the word "and" at the end of the existing clause (g) thereof,
      deleting the period at the end of the existing clause (h) thereof and
      inserting in its place "; and" and inserting the following new clause (i)
      immediately following the existing clause (h):

                  "(i) Investments in Bois d'Arc Energy and the other Bois d'Arc
            Entities pursuant to the BDA Contribution Agreement."

            (p) Clauses (c) and (d) of Section 7.3 of the Credit Agreement are
      hereby amended by deleting the word "Subsidiary" each place such word
      appears therein and inserting in place thereof the words "Restricted
      Subsidiary".

            (q) Clauses (a) and (b) of Section 7.4 of the Credit Agreement are
      hereby amended by deleting the words "Subsidiary" or "Subsidiaries" each
      place such words appear therein and inserting in place thereof the words
      "Restricted Subsidiary" or "Restricted Subsidiaries" as applicable.

            (r) Section 7.4 of the Credit Agreement is hereby further amended by
      deleting the word "and" at the end of the existing clause (b) thereof,
      deleting the period at the end of the existing clause (c) thereof and
      inserting the following new clauses (d) and (e) immediately following the
      existing clause (c):

                  "(d) COL may contribute the COL Contributed Properties to one
            or more of the Bois d'Arc Entities pursuant to and in accordance
            with the terms of the BDA Contribution Agreement; and,

                  (e) Bois d'Arc Energy and the other Bois d'Arc Entities may
            reconvey all properties contributed to any of them by Borrower, COL
            and the BDA Contributors in accordance with the terms of the BDA
            Unwind Transaction and Section 2.16."

            (s) Clause (c) of Section 7.5 of the Credit Agreement is hereby
      amended by deleting the words "Subsidiary" each place such word appears
      therein and inserting in place thereof the words "Restricted Subsidiary".

            (t) Section 7.5 of the Credit Agreement is hereby further amended by
      deleting the word "and" at the end of the existing clause (d) thereof,
      inserting the word "and"

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      immediately following the end of the existing clause (e) and inserting the
      following new clause (f) immediately following the existing clause (e):

                  "(f) Dispositions by COL of the COL Contributed Properties to
            the Bois d'Arc Entities pursuant to the terms of the BDA Formation
            Documents; provided that such assets of COL shall remain subject to
            any Liens created by Security Documents delivered pursuant to this
            Agreement until such Liens shall be released in accordance with
            Section 2.15 or Section 10.1."

            (u) Clauses (a) and (c) of Section 7.6 of the Credit Agreement are
      hereby amended by deleting the word "Subsidiary" each place such word
      appears therein and inserting in place thereof the words "Restricted
      Subsidiary".

            (v) Section 7.6 of the Credit Agreement is hereby further amended by
      inserting the word "and" immediately following the existing clause (d) and
      inserting the following new clause (e) immediately following the existing
      clause (d):

                  "(e) Restricted Payments (i) by Bois d'Arc Energy or any of
            the Bois d'Arc Entities, as applicable, to one or more of the BDA
            Contributors (and to the Borrower or any of its Restricted
            Subsidiaries to the extent not otherwise permitted) pursuant to the
            BDA Unwind Transaction and (ii) so long as Bois d'Arc Energy is
            treated as a partnership for tax purposes, Restricted Payments by
            Bois d'Arc Energy that are made solely for the purpose of paying tax
            liabilities arising from Bois d'Arc Energy's net income (which tax
            liability distributions shall not exceed the net income of Bois
            d'Arc for the periods for which such tax distributions are to be
            made multiplied by the maximum marginal tax rate under federal
            and/or state income tax laws that is applicable to any of Bois d'Arc
            Energy's members), provided that the Borrower shall give
            Administrative Agent at least 10 Business Days' prior written notice
            of each proposed distribution, together with the amount of the Bois
            d'Arc Energy's Net Income."

            (w) Section 7.10 of the Credit Agreement is hereby amended and
      restated in its entirety to provide:

            "SECTION 7.10 BURDENSOME AGREEMENTS. Enter into any Contractual
            Obligation that limits the ability (a) of any Restricted Subsidiary
            to make Restricted Payments to the Borrower or any Guarantor or to
            otherwise transfer property to the Borrower or any Guarantor other
            than Contractual Obligations imposed on Bois d'Arc Energy pursuant
            to the BDA Operating Agreement, or (b) of the Borrower or any
            Restricted Subsidiary to create, incur, assume or suffer to exist
            Liens on property of such Person,

                                       12
<PAGE>

            in each case, other than Contractual Obligations pursuant to the
            Indenture Debt Documents to the extent listed in Schedule 7.10."

            (x) Section 7.12 of the Credit Agreement is hereby amended by
      deleting the word "Subsidiary" each place such word appears therein and
      inserting in place thereof the words "Restricted Subsidiary".

            (y) Section 7.14 of the Credit Agreement is hereby amended and
      restated in its entirety to provide:

            "SECTION 7.14 LIMITATION ON HEDGES. Enter into any commodity hedging
            or derivative transactions except Hedge Agreements related to bona
            fide hedging activities of the Borrower or any of its Restricted
            Subsidiaries in an aggregate notional amount not to exceed, with
            respect to any future calendar quarter, 100% of the Borrower's and
            its Restricted Subsidiaries' projected production of oil (for oil
            related transactions) and 100% of the Borrower's and its Restricted
            Subsidiaries' projected production of natural gas (for natural gas
            related transactions), in each case from the Oil and Gas Properties
            of the Borrower and its Restricted Subsidiaries."

            (z) The Credit Agreement is hereby amended by inserting the
      following new Section 7.15 immediately following Section 7.14 (as amended
      pursuant to this Second Amendment):

            "SECTION 7.15 AMENDMENT OF BDA FORMATION DOCUMENTS OR BOIS D'ARC
            LOAN AGREEMENT. Amend, restate, modify, supplement, waive or consent
            to any amendment, restatement, modification, supplement or waiver of
            the BDA Contribution Agreement, the BDA Operating Agreement, the BDA
            Services Agreement or the other BDA Formation Documents or the Bois
            d'Arc Loan Agreement, in each case without the consent of the
            Administrative Agent and the Majority Lenders; provided, however,
            that the consent of the Administrative Agent and the Majority
            Lenders shall not be required to the extent that any such amendment,
            restatement, modification, supplement, waiver or consent does not
            (a) have an adverse effect on the Borrower, any other Loan Party,
            the Administrative Agent or the Lenders (taking into account any
            effect that may occur or be realized after Bois d'Arc Energy has
            been redesignated as an Unrestricted Subsidiary pursuant to Section
            2.15), or (b) materially change the economic terms of such
            agreements. The Borrower shall deliver notice to the Administrative
            Agent (with sufficient copies for the Administrative Agent to
            distribute the same to the other Lenders) of any amendment,
            restatement, modification, supplement, waiver or consent to the BDA
            Contribution Agreement, the BDA

                                       13
<PAGE>

            Operating Agreement, the BDA Services Agreement or the other BDA
            Formation Documents or the Bois d'Arc Loan Agreement for which the
            consent of the Administrative Agent and the Majority Lenders is not
            required pursuant to the foregoing proviso, as applicable, promptly
            following its effectiveness."

            (aa) Clause (l) of Section 8.1 of the Credit Agreement is hereby
      amended by deleting the word "Subsidiary" each place such word appears
      therein and inserting in place thereof the words "Restricted Subsidiary".

            (bb) Clause (h) of Section 10.1 of the Credit Agreement is hereby
      amended and restated in its entirety to provide:

            "(h) release any collateral under any of the Security Documents, or
            permit any termination, amendment, modification, waiver or release
            of any Security Document or an provision thereof, provided that,
            notwithstanding the foregoing, the consent of the Lenders shall not
            be required for any release of any collateral under any of the
            Security Documents pursuant to Sections 2.15 or 2.16 or in
            connection with a Disposition by the Borrower or any Guarantor if
            such Disposition is permitted by Section 7.5 hereof as Section 7.5
            is in effect on the Closing Date;"

            (cc) Schedule 5.13 to the Credit Agreement is hereby amended and
      restated as set forth in Attachment 1 hereto.

      Section 3. RATIFICATION. The Borrower hereby ratifies and confirms all of
the Obligations under the Credit Agreement and the other Loan Documents.

      Section 4. EFFECTIVENESS OF SECOND AMENDMENT. This Second Amendment shall
become effective as of the date first written above upon satisfaction of each of
the conditions set forth in this Section 4:

                  (a) The Administrative Agent shall have received duly executed
            counterparts of this Second Amendment from the Borrower, the Issuing
            Bank and each Lender, and duly acknowledged by each of the
            Guarantors.

                  (b) Unless waived by all the Lenders (or by the Administrative
            Agent with respect to immaterial matters or items specified in
            clause (v) or (vii) below with respect to which the Borrower has
            given assurances satisfactory to the Administrative Agent that such
            items shall be delivered promptly following the Effective Date), the
            Administrative Agent's receipt of the following, each of which shall
            be originals or facsimiles (followed promptly by originals) unless
            otherwise specified, each properly executed by a Responsible Officer
            of the signing Loan Party, each dated the Effective Date (or, in the
            case of certificates of governmental officials, a recent date before
            the Closing Date) and each in form and substance satisfactory to the
            Administrative Agent and its legal counsel:

                                       14
<PAGE>

                              (i) executed counterparts from each of the Bois
            d'Arc Entities of a Guaranty, a ratification of the Subordination
            Agreement previously delivered by the Loan Parties, and a Security
            Agreement;

                              (ii) from (1) COL, a Pledge Agreement pursuant to
            which all of the outstanding equity interests of Bois d'Arc Energy
            owned by COL shall be pledged to the Administrative Agent on behalf
            of the Lenders, and (2) each of Bois d'Arc Energy and each other
            Bois d'Arc Entity that owns any equity interest in any other Bois
            d'Arc Entity, a Pledge Agreement, pursuant to which all of the
            outstanding equity interests in each Bois d'Arc Entity shall be
            pledged to the Administrative Agent on behalf of the Lenders,
            together in each case with stock certificates, membership interest
            certificates or such other certificated security as may be part of
            the collateral covered by the Pledge Agreement and stock powers or
            other transfer powers or instruments executed in blank for each such
            certificate, interest or security;

                              (iii) from the Borrower, an amendment or
            supplement to the existing Pledge Agreement of the Borrower,
            pursuant to which the Borrower shall pledge to the Administrative
            Agent its interest in, to and under the Bois d'Arc Loan Agreement,
            the revolving promissory note evidencing indebtedness thereunder and
            any other documents related thereto, together with the original
            revolving promissory note bearing an appropriate endorsement in
            favor of the Administrative Agent;

                              (iv) such certificates of resolutions or other
            action, incumbency certificates and/or other certificates of
            Responsible Officers of each Bois d'Arc Entity as the Administrative
            Agent may require to establish the identities of and verify the
            authority and capacity of each Responsible Officer thereof
            authorized to act as a Responsible Officer in connection with this
            Agreement and the other Loan Documents to which such Bois d'Arc
            Entity is a party;

                              (v) such evidence as the Administrative Agent may
            reasonably require to verify that each Bois d'Arc Entity is duly
            organized or formed, validly existing, in good standing and
            qualified to engage in business in each jurisdiction in which it is
            required to be qualified to engage in business, including certified
            copies of each Bois d'Arc Entities' Organization Documents,
            certificates of good standing and/or qualification to engage in
            business and, if applicable, tax clearance certificates;

                              (vi) a certificate signed by a Responsible Officer
            of the Borrower certifying (A) that the conditions specified in
            Sections 4.2(a) and (b) are satisfied as of the Effective Date, and
            (B) that there has been no event or circumstance since the date of
            the Initial Audited

                                       15
<PAGE>

            Financial Statements which has or could be reasonably expected to
            have a Material Adverse Effect;

                              (vii) an opinion of counsel to each of the Bois
            d'Arc Entities substantially in the form of Exhibits F-1 and F-2 to
            the Credit Agreement;

                              (viii) evidence that all existing credit
            facilities to which any Bois d'Arc Entity is a party or a guarantor
            (including, without limitation, all credit facilities between or
            among any Bois d'Arc Entity or BDA Contributor, as borrower(s), and
            AmSouth Bank, as lender, but expressly excluding the Bois d'Arc Loan
            Agreement) have been, or concurrently with the Effective Date are
            being, terminated and all Liens securing obligations under any such
            existing credit facilities have been, or concurrently with the
            Effective Date are being, released;

                              (ix) a certificate of insurance of the Borrower
            and its Subsidiaries (including each of the Bois d'Arc Entities)
            evidencing that the Borrower and its Subsidiaries (including each of
            the Bois d'Arc Entities) are carrying insurance in accordance with
            Section 6.7 of the Credit Agreement and that such insurance is in
            full force and effect;

                              (x) a certificate from an Responsible Officer of
            each of Borrower and Bois d'Arc Energy, dated as of the Effective
            Date, certifying that attached thereto is a true and correct copy of
            the BDA Formation Documents and the Bois d'Arc Loan Agreement and
            certifying that:

                        (1) On and as of the Effective Date, and except as
                  otherwise previously disclosed pursuant to the provisions
                  hereof, there does not exist any judgment, order or injunction
                  or other restraint issued or filed, or any government,
                  corporate, contractual or legal restriction that could
                  reasonably be expected to impair materially the right or
                  ability of each of Borrower, COL, Bois d'Arc Energy and the
                  BDA Contributors to effect the BDA Formation Transaction
                  substantially in accordance with the terms and conditions of
                  the BDA Formation Documents; and

                        (2) Each of Borrower, COL, Bois d'Arc Energy, each other
                  Bois d'Arc Entity and each BDA Contributor, as the case may
                  be, have received all governmental and third party approvals
                  necessary in connection with the DBA Formation Transaction and
                  such approvals are in full force and effect;

            (c) search reports in such jurisdictions as the Administrative Agent
      may reasonably request, listing all effective financing statements or
      other Lien filings that name any of the Bois d'Arc Entities or any of Bois
      d'Arc Resources,

                                       16
<PAGE>

      Ltd., a Texas limited partnership, Wayne L. Laufer, Gary W. Blackie or
      Haro Investments LLC, a Texas limited liability company, as a debtor; and

            (d) The Borrower shall have confirmed and acknowledged to the
      Administrative Agent, the Issuing Bank and the Lenders, and by its
      execution and delivery of this Second Amendment the Borrower does hereby
      confirm and acknowledge to the Administrative Agent, the Issuing Bank and
      the Lenders, that (i) the execution, delivery and performance of this
      Second Amendment has been duly authorized by all requisite corporate
      action on the part of the Borrower; (ii) the Credit Agreement and each
      other Loan Document to which it is a party constitute valid and legally
      binding agreements enforceable against the Borrower in accordance with
      their respective terms, except as such enforceability may be limited by
      bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or
      other similar laws relating to or affecting the enforcement of creditors'
      rights generally and by general principles of equity, (iii) the
      representations and warranties by the Borrower contained in the Credit
      Agreement and in the other Loan Documents are true and correct on and as
      of the date hereof in all material respects as though made as of the date
      hereof, and (iv) no Default or Event of Default exists under the Credit
      Agreement or any of the other Loan Documents.

      Section 5. GOVERNING LAW. This Second Amendment shall be governed by, and
construed in accordance with, the laws of the State of New York (without giving
effect to the principles thereof relating to conflicts of law except section
5-1401 of the New York General Obligations Law).

      Section 6. MISCELLANEOUS. (a) On and after the effectiveness of this
Second Amendment, each reference in each Loan Document to "this Agreement",
"this Note", "this Mortgage", "hereunder", "hereof" or words of like import,
referring to such Loan Document, and each reference in each other Loan Document
to "the Credit Agreement", "the Notes", "the Mortgages", "thereunder", "thereof"
or words of like import referring to the Credit Agreement, the Notes, or the
Mortgage or any of them, shall mean and be a reference to such Loan Document,
the Credit Agreement, the Notes, the Mortgage or any of them, as amended or
otherwise modified by this Second Amendment; (b) each reference in each
Guaranty, Security Agreement or Pledge Agreement executed prior to the date
hereof to a "Subsidiary" or "Subsidiaries" of the Borrower shall be amended to
be a reference to a "Restricted Subsidiary" or "Restricted Subsidiary" of the
Borrower (except with respect to Sections 3.4 and 3.10 in each Pledge Agreement
executed prior to the date hereof, with respect to which such reference shall
not be so amended); (c) the execution, delivery and effectiveness of this Second
Amendment shall not, except as expressly provided herein, operate as a waiver of
any default of the Borrower or any other Loan Party or any right, power or
remedy of the Administrative Agent, the Issuing Bank and the Lenders under any
of the Loan Documents, nor constitute a waiver of any provision of any of the
Loan Documents; (d) this Second Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement; and (e) delivery of an
executed counterpart of a signature page to this Second Amendment by telecopier
shall be effective as delivery of a manually executed counterpart of this Second
Amendment.

                                       17
<PAGE>

      Section 7. FINAL AGREEMENT. THE CREDIT AGREEMENT AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.

                                       18
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment
to be executed by its officers thereunto duly authorized as of the date first
above written.

                               BORROWER:

                               COMSTOCK RESOURCES, INC.,
                               a Nevada corporation

                               By:    /s/ Roland O. Burns
                                  ----------------------------------------------
                               Name:  Roland O. Burns
                               Title: Chief Financial Officer

                               ADMINISTRATIVE AGENT, ISSUING BANK
                               AND LENDERS:

                               BANK OF MONTREAL,
                               as Administrative Agent, Issuing Bank and Lender

                               By:    /s/ James V. Ducote
                                  ----------------------------------------------
                               Name:  James V. Ducote
                               Title: Director

                               BANK OF AMERICA, N.A.,

                               By:    /s/ Jeffrey Rathkamp
                                  ----------------------------------------------
                               Name:  Jeffrey Rathkamp
                               Title: Director

                               FORTIS CAPITAL CORP.

                               By:    /s/ David Montgomery
                                  ----------------------------------------------
                               Name:  David Montgomery
                               Title: Senior Vice President

                               By:    /s/ Darrell W. Holley
                                  ----------------------------------------------
                               Name:  Darrell W. Holley
                               Title: Managing Director

                                      S - 1

<PAGE>

                               COMERICA BANK

                               By:    /s/ Peter L. Sefzik
                                  ----------------------------------------------
                               Name:  Peter L Sefzik
                               Title: Vice President -  Texas Division

                               UNION BANK OF CALIFORNIA, N.A.

                               By:    /s/ Sean Murphy
                                  ----------------------------------------------
                               Name:  Sean Murphy
                               Title: Vice President

                               THE BANK OF NOVA SCOTIA

                               By:    /s/ Nadine Bell
                                  ----------------------------------------------
                               Name:  Nadine Bell
                               Title: Senior Manager

                               BANK OF SCOTLAND

                               By:    /s/ Amena Nabi
                                  ----------------------------------------------
                               Name:  Amena Nabi
                               Title: Assistant Vice President

                               COMPASS BANK

                               By:    /s/ Dorothy Marchand
                                  ----------------------------------------------
                               Name:  Dorothy Marchand
                               Title: Senior Vice President

                                      S - 2

<PAGE>

                               CALYON NEW YORK BRANCH, as Successor
                               by Consolidation to Credit Lyonnais New York
                               Branch

                               By:    /s/ Olivier Audemard
                                  ----------------------------------------------
                               Name:  Olivier Audemard
                               Title: Managing Director

                               HIBERNIA NATIONAL BANK

                               By:    /s/ Daria Mahoney
                                  ----------------------------------------------
                               Name:  Daria Mahoney
                               Title: Vice President

                               NATEXIS BANQUES POPULAIRES

                               By:    /s/ Daniel Payer
                                  ----------------------------------------------
                               Name:  Daniel Payer
                               Title: Vice President

                               By:    /s/ Donovan Broussard
                                  ----------------------------------------------
                               Name:  Donovan Broussard
                               Title: Vice President & Manager

                               WASHINGTON MUTUAL BANK, FA

                               By:    /s/ Mark Isensee
                                  ----------------------------------------------
                               Name:  Mark Isensee
                               Title: Vice President

                                      S - 3

<PAGE>

                          ACKNOWLEDGMENT BY GUARANTORS

      Each of the undersigned Guarantors hereby (i) consents to the terms and
conditions of that certain Second Amendment to Credit Agreement dated as of July
16, 2004 (the "Second Amendment"), (ii) acknowledges and agrees that its consent
is not required for the effectiveness of the Second Amendment, (iii) ratifies
and acknowledges its respective Obligations under each Loan Document to which it
is a party, and (iv) represents and warrants that (a) no Default or Event of
Default has occurred and is continuing, (b) it is in full compliance with all
covenants and agreements pertaining to it in the Loan Documents, and (c) it has
reviewed a copy of the Second Amendment.

                                  COMSTOCK OIL & GAS HOLDINGS, INC.
                                  COMSTOCK OIL & GAS - LOUISIANA, LLC
                                  COMSTOCK OFFSHORE, LLC
                                  COMSTOCK OIL & GAS GP, LLC,
                                  By Comstock Resources, Inc., its sole member
                                  COMSTOCK OIL & GAS, LP,
                                    By Comstock Oil & Gas GP, LLC,
                                    its general partner,
                                    By Comstock Resources, Inc., its sole member

                                  By:   /s/ Roland O. Burns
                                     -------------------------------------------
                                  Name:  Roland O. Burns
                                  Title:    Chief Financial Officer

                                  COMSTOCK OIL & GAS INVESTMENTS, LLC

                                  By:   /s/ Roland O. Burns
                                     -------------------------------------------
                                  Name:  Roland O. Burns
                                  Title:    Manager

                                      S - 4exv10w2

 

Exhibit 10.2

CONTRIBUTION AGREEMENT

by and among

BOIS D’ARC ENERGY, LLC,

BOIS D’ARC PROPERTIES, LP,

BOIS D’ARC RESOURCES, LTD.,

WAYNE L. LAUFER,

GARY W. BLACKIE,

HARO INVESTMENTS LLC,

COMSTOCK OFFSHORE, LLC,

COMSTOCK RESOURCES, INC., and

OTHER PERSONS LISTED ON THE SIGNATURE PAGES HERETO

Dated as of July 16, 2004

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page

	ARTICLE I
	 	CONTRIBUTION AND SALE TRANSACTIONS	 	 	2	 
	1.1
	 	Contribution by Comstock Offshore	 	 	2	 
	1.2
	 	Sales and Contributions by BDA Contributors	 	 	2	 
	1.3
	 	Contributions by Blackie and Laufer	 	 	2	 
	1.4
	 	Purchase of Class A Units	 	 	2	 
	1.5
	 	Closing Transactions	 	 	3	 
	1.6
	 	The Closing	 	 	3	 
	1.7
	 	Closing Deliveries	 	 	3	 
	1.8
	 	Post-Closing Adjustment	 	 	4	 
	ARTICLE II
	 	REPRESENTATIONS AND WARRANTIES CONCERNING BDAO AND BDAOG	 	 	5	 
	2.1
	 	Existence and Good Standing	 	 	5	 
	2.2
	 	No Violation	 	 	6	 
	2.3
	 	Consents and Approvals	 	 	6	 
	2.4
	 	No Properties	 	 	6	 
	2.5
	 	Absence of Litigation	 	 	6	 
	2.6
	 	Taxes	 	 	6	 
	2.7
	 	Gas Imbalances	 	 	7	 
	2.8
	 	Take or Pay	 	 	7	 
	2.9
	 	Leases	 	 	7	 
	2.10  
	 	Rentals Paid	 	 	7	 
	2.11  
	 	Equity Ownership	 	 	8	 
	2.12  
	 	Employee Benefit Plans	 	 	8	 
	2.13  
	 	Labor Matters	 	 	8	 
	ARTICLE III
	 	REPRESENTATIONS AND WARRANTIES OF BDA CONTRIBUTORS	 	 	8	 
	3.1
	 	Existence and Good Standing	 	 	8	 
	3.2
	 	Authority	 	 	8	 
	3.3
	 	No Violation	 	 	8	 
	3.4
	 	Consents and Approvals	 	 	9	 
	3.5
	 	Title to Properties	 	 	9	 
	3.6
	 	Absence of Litigation	 	 	9	 
	3.7
	 	Taxes	 	 	9	 
	3.8
	 	Gas Imbalances	 	 	10	 
	3.9
	 	Take or Pay	 	 	10	 
	3.10  
	 	Leases	 	 	10	 
	3.11  
	 	Rentals Paid	 	 	10	 
	ARTICLE IV
	 	REPRESENTATIONS OF COMSTOCK PARTIES	 	 	10	 
	4.1
	 	Existence and Good Standing	 	 	10	 
	4.2
	 	Authority	 	 	11	 
	4.3
	 	No Violation	 	 	11	 
	4.4
	 	Consents and Approvals	 	 	11	 
	4.5
	 	Title to Properties	 	 	11	 

-i-

 

Table of Contents

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page

	4.6
	 	Absence of Litigation	 	 	12	 
	4.7
	 	Taxes	 	 	12	 
	4.8
	 	Gas Imbalances	 	 	12	 
	4.9
	 	Take or Pay	 	 	12	 
	4.10
	 	Leases	 	 	12	 
	4.11
	 	Rentals Paid	 	 	13	 
	4.12
	 	Comstock Credit Facility	 	 	13	 
	ARTICLE V
	 	REPRESENTATIONS
AND WARRANTIES OF ALL OF THE CONTRIBUTORS AND DISTRIBUTEES
	 	 	13	 
	5.1
	 	Acquisition Entirely for Own Account	 	 	13	 
	5.2
	 	Disclosure of Information; Due Diligence	 	 	13	 
	5.3
	 	Investment Experience; Accredited Purchaser Status	 	 	13	 
	5.4
	 	Restricted Securities	 	 	14	 
	ARTICLE VI
	 	ADDITIONAL COVENANTS	 	 	15	 
	6.1
	 	Taxes	 	 	15	 
	6.2
	 	Termination of Exploration Agreement	 	 	16	 
	6.3
	 	Loans by Comstock Resources	 	 	16	 
	6.4
	 	Services Agreement	 	 	16	 
	6.5
	 	Adoption of Incentive Plan	 	 	16	 
	6.6
	 	Overriding Royalty Incentive Plan	 	 	17	 
	6.7
	 	Employee Benefit Plans	 	 	17	 
	6.8
	 	Employment Arrangements	 	 	17	 
	6.9
	 	Guaranty of Credit Facility Debt	 	 	17	 
	6.10
	 	Guaranty of Indenture Debt	 	 	17	 
	6.11
	 	Cooperation with Accountants	 	 	17	 
	6.12
	 	Expenses	 	 	17	 
	ARTICLE VII
	 	CONDITIONS TO THE CLOSING	 	 	17	 
	7.1
	 	Conditions to Each Party’s Obligation to Close	 	 	17	 
	ARTICLE VIII
	 	TERMINATION AND WAIVER	 	 	18	 
	8.1
	 	Termination	 	 	18	 
	8.2
	 	Effect of Termination	 	 	18	 
	8.3
	 	Extensions; Waiver	 	 	18	 
	ARTICLE IX
	 	REMEDIES	 	 	18	 
	9.1
	 	Right to Indemnification Not Affected by Knowledge	 	 	18	 
	9.2
	 	Indemnification by Laufer and Blackie	 	 	19	 
	9.3
	 	Indemnification by the BDA Contributors	 	 	19	 
	9.4
	 	Indemnification by the Comstock Parties	 	 	19	 
	9.5
	 	Notice and Defense of Third-Party Claims	 	 	20	 
	9.6
	 	Limitations of Liability	 	 	20	 
	9.7
	 	Specific Performance; Injunctive and Other Equitable Relief	 	 	21	 
	9.8
	 	Certain Joinder to Indemnification	 	 	21	 
	ARTICLE X
	 	MISCELLANEOUS	 	 	21	 
	10.1
	 	Survival of Representations and Warranties	 	 	21	 

-ii-

 

Table of Contents

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page

	10.2
	 	Brokers and Finders	 	 	21	 
	10.3
	 	Entire Agreement; Assignment	 	 	21	 
	10.4
	 	Amendment and Modification	 	 	21	 
	10.5
	 	Further Assurances	 	 	22	 
	10.6
	 	Severability	 	 	22	 
	10.7
	 	Address for Notices	 	 	22	 
	10.8
	 	Governing Law	 	 	23	 
	10.9
	 	Dispute Resolution	 	 	23	 
	10.10
	 	Waiver	 	 	24	 
	10.11
	 	Descriptive Headings	 	 	24	 
	10.12
	 	Parties in Interest; No Third-Party Beneficiary	 	 	25	 
	10.13
	 	Counterparts; Facsimile Signatures	 	 	25	 
	10.14
	 	Incorporation by Reference	 	 	25	 
	10.15
	 	Public Announcements	 	 	25	 
	10.16
	 	Confidentiality	 	 	25	 
	10.17
	 	Certain Definitions	 	 	25	 

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LIST OF EXHIBITS

	 	 	 
	Exhibit A
	 	Form of Operating Agreement of the Company
	Exhibit B
	 	Form of Transfer Restriction Agreement
	Exhibit C-1
	 	Form of Assignment of Partnership/Membership Interest
	Exhibit C-2
	 	Forms of Assignments of Interest in Properties
	Exhibit D
	 	Form of Loan Agreement
	Exhibit E
	 	Form of Services Agreement
	Exhibit F
	 	Form of Long Term Incentive Plan
	Exhibit G
	 	Form of Overriding Royalty Interest Incentive Plan
	Exhibit H-1
	 	Form of Employment Agreement with Blackie
	Exhibit H-2
	 	Form of Employment Agreement with Laufer

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CONTRIBUTION AGREEMENT

     This Contribution Agreement (the “Agreement”), dated as of July 16, 2004,
is by and among Bois d’Arc Energy, LLC, a Nevada limited liability company (the
“Company”), Bois d’Arc Properties, LP, a Nevada limited partnership (the “New
Subsidiary”), Bois d’Arc Resources, Ltd., a Texas limited partnership (“BDAR”),
Wayne L. Laufer (“Laufer”), Gary W. Blackie (“Blackie”), Haro Investments LLC,
a Texas limited liability company (“Haro”), such other persons listed on the
signature pages hereto under the caption “BDA Contributors” (collectively, with
BDAR, Laufer, Blackie and Haro, “BDA Contributors”), Comstock Offshore, LLC, a
Nevada limited liability company (“Comstock Offshore”), and Comstock Resources,
Inc., a Nevada corporation (“Comstock Resources” and collectively with Comstock
Offshore, the “Comstock Parties”). Each of the above is a “Party” to this
Agreement, and collectively they are sometimes referred to as the “Parties.”
All capitalized terms used herein and not otherwise defined shall have the
meanings assigned to such terms in Section 10.17 of this Agreement.

     WHEREAS, the Company was formed on June 17, 2004 pursuant to the laws of
the State of Nevada upon the filing of articles of organization with the office
of the Secretary of State of Nevada;

     WHEREAS, the New Subsidiary was formed on June 22, 2004 pursuant to the
laws of the State of Nevada upon the filing of a certificate of limited
partnership with the office of the Secretary of State of Nevada; 99.9% of the
New Subsidiary’s partnership interest is owned by the Company;

     WHEREAS, Bois d’Arc Holdings, LLC (the “New GP”) was formed on June 21,
2004 pursuant to the laws of the State of Nevada upon the filing of articles of
organization with the office of the Secretary of State of Nevada; 100% of the
membership interest of the New GP is owned by the Company and the New GP owns a
0.1% general partner interest in the New Subsidiary;

     WHEREAS, Comstock Offshore desires to contribute its interest in certain
oil and gas properties to the New Subsidiary at the Closing in accordance with
the terms and provisions of this Agreement;

     WHEREAS, Blackie and Laufer each desire to contribute their respective
partnership interests in Bois d’Arc Offshore, Ltd., a Texas limited partnership
(“BDAO”) and their membership interests in Bois d’Arc Oil & Gas Company, LLC, a
Texas limited liability company (“BDAOG”), to the Company at the Closing in
accordance with the terms and provisions of this Agreement;

     WHEREAS, the BDA Contributors each desire to contribute their respective
interest in certain oil and gas properties to the New Subsidiary at the Closing
in accordance with the terms and provisions of this Agreement;

     WHEREAS, the Parties intend that for federal income tax purposes, the
above contributions qualify as contributions pursuant to Section 721 of the
Code except to the extent any Party receives cash or a promissory note;

 

 

     WHEREAS, in addition to the contributions described above, each Party
desires to purchase membership interests in the Company as provided herein;

     WHEREAS, each Party is making certain representations, warranties,
covenants and indemnities herein as an inducement to the other Parties to enter
into this Agreement; and

     WHEREAS, the Contributors will enter into the Operating Agreement in
connection with the transactions contemplated hereby.

     NOW, THEREFORE, in consideration of the respective representations,
warranties and covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties hereby agree as follows:

ARTICLE I

CONTRIBUTION AND SALE TRANSACTIONS

     1.1 Contribution by Comstock Offshore. Subject to the terms and
conditions of this Agreement, at the Closing, Comstock Offshore shall
contribute, convey, assign, transfer, set over and deliver to the New
Subsidiary all of its rights, title and interest in and to the oil and gas
properties and such other assets listed on Schedule 1.1 in exchange for (i) the
number of Class B Units set forth opposite its name on Schedule 1.0 and (ii)
the assumption by the Company of the Liabilities set forth opposite Comstock
Offshore’s name on Schedule 1.0 (collectively, the “Comstock Contribution”).

     1.2 Sales and Contributions by BDA Contributors. Subject to the terms and
conditions of this Agreement, at the Closing, each of the BDA Contributors
shall severally and not jointly sell, contribute, convey, assign, transfer, set
over and deliver to the New Subsidiary each of their respective rights, title
and interest in and to the leases and the interests set forth opposite each of
their respective names on Schedule 1.2 as to the oil and gas properties listed
on Schedule 1.2 in exchange for the following consideration: (i) the issuance
to the applicable BDA Contributor (or to its designee in a Familial Transfer or
an Affiliate Transfer (as such terms are defined in the Transfer Restriction
Agreement)) of the number of Class B Units set forth opposite such BDA
Contributor’s name on Schedule 1.0, (ii) the assumption by the Company of the
Liabilities set forth opposite such BDA Contributor’s name on Schedule 1.0, and
(iii) the payment to such BDA Contributor of the amount set forth opposite such
BDA Contributor’s name on Schedule 1.0, which amount shall be payable in cash
at the Closing (collectively, the “BDA Property Contributions”).

     1.3 Contributions by Blackie and Laufer. Subject to the terms and
conditions of this Agreement, at the Closing, each of Blackie and Laufer shall
contribute, convey, assign, transfer, set over and deliver to the Company all
of their respective rights, title and interest in and to the partnership
interests in BDAO and the membership interests in BDAOG (collectively, the “BDA
Equity Interests”) in exchange for assumption and acceptance by the Company of
the Liabilities of BDAO and BDAOG (the “BDA Equity Contributions”).

     1.4 Purchase of Class A Units. Subject to the terms and conditions of
this Agreement, at the Closing, each Contributor agrees severally and not
jointly to purchase from the Company, and the Company agrees to sell and issue
to each such Contributor, the number of

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Class A Units set forth opposite such Contributor’s name on Schedule 1.0
for a consideration of $1.00 per Class A Unit.

     1.5 Closing Transactions.

          (a) As provided in Sections 1.1 and 1.2, the ownership of the Properties
shall be sold, transferred and/or assigned from each Contributor to the Company
or the New Subsidiary (as applicable) on the Closing Date but effective as of
the Effective Time. Subject to the other provisions of this Agreement, each
Contributor shall (i) be entitled to all revenues (and related accounts
receivable) attributable to the Properties owned by such Contributor
(including, without limitation, the right to all production, proceeds of
production and other proceeds), and (ii) responsible for the payment of all
expenses (and related accounts payable) attributable to the Properties owned by
such Contributor in each case to the extent the same relate to the period of
time prior to the Effective Time. Subject to the other provisions of this
Agreement, the Company or the New Subsidiary (as applicable) shall be entitled
to all revenues (and related accounts receivable) attributable to the
Properties (including, without limitation, the right to all production,
proceeds of production and other proceeds), and shall be responsible for the
payment of all expenses (and related accounts payable) attributable to the
Properties, in each case to the extent the same relate to the period of time
from and after the Effective Time.

          (b) The assignments by Blackie and Laufer of the BDA Equity Interests
shall be effective as of the Effective Time, and from and after that time, but
not prior thereto, that portion of the net profits or net losses of BDAO and
BDAOG allocable to such partnership interests and membership interests,
respectively, shall be credited or charged, as the case may be, to the Company,
and not Blackie or Laufer (as the case may be), and neither Blackie nor Laufer
shall have any interest in or the right to any benefit therefrom.

          (c) Except for the Assumed Liabilities, each Contributor of Properties
shall retain responsibility for, and neither the Company nor the New Subsidiary
shall assume any Liability of a Contributor with respect to the Properties
incurred prior to the Effective Time.

          (d) At the Closing but as of the Effective Time, the Company shall assume
from BDAO the Revised Service Contract dated June 1, 2004 between BDAO and
Laufer & Associates.

     1.6 The Closing. The consummation of the transactions contemplated by
this Agreement (the “Closing”) will take place at the offices of Locke Liddell
& Sapp LLP, 2200 Ross Avenue, Suite 2200, Dallas, Texas 75201, on such date as
the Parties may agree but in no event not later than July 16, 2004. The date
on which the Closing occurs is referred to herein as the “Closing Date.”

     1.7 Closing Deliveries. Subject to the terms and conditions of this
Agreement at the Closing:

          (a) Each of Blackie and Laufer will execute and deliver to the Company the
following:

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               (i) An assignment in the form attached hereto as Exhibit C-1 with respect
to their respective BDA Equity Interests;

               (ii) Certificates of existence and good standing for each of BDAO and
BDAOG; and

               (iii) Such other documents as may be reasonably requested by Comstock
Offshore.

          (b) Each of the BDA Contributors will execute and deliver to the Company
the following:

               (i) assignments in the forms attached hereto as Exhibit C-2 transferring
and assigning title to their respective interests in the BDA Properties; and

               (ii) such other documents as may be reasonably requested by Comstock
Offshore.

          (c) Comstock Offshore will deliver to the Company the following:

               (i) assignments in the forms attached hereto as Exhibit C-2 transferring
and assigning title to its interest in the Comstock Properties;

               (ii) certificates of existence and good standing for each of Comstock
Resources and Comstock Offshore; and

               (iii) such other documents as may be reasonably requested by BDAR.

          (d) Each Contributor will deliver to the Company the consideration for the
Class A Units as specified in Section 1.4.

          (e) The Company will deliver or cause to be delivered to each of the
Contributors or, in the case of any of the Contributors that is an entity, its
constituent partners or members (“Distributees”), (i) a certificate or
certificates evidencing the Class A Units and Class B Units to be issued to
such Contributor or Distributee, (ii) the cash payment (which shall be by wire
transfer of immediately available funds) in the amount set forth opposite the
respective Contributor’s or Distributee’s name on Schedule 1.0 and (iii) an
assumption agreement pursuant to which it assumes the Assumed Liabilities.

          (f) At the Closing, each of the Contributors and Distributees shall enter
into the Operating Agreement and the Transfer Restriction Agreement.

     1.8 Post-Closing Adjustment.

          (a) Prior to the Closing, Laufer and Blackie shall cause BDAO to determine
the BDAO Working Capital as of the Effective Time (the “Estimated Working
Capital”). To the extent the Estimated Working Capital is greater than zero
($0.00), at the Closing, the Company shall pay to Laufer and Blackie an amount
equal to the excess; to the extent the Estimated

-4-

 

Working Capital is less than zero ($0.00), at the Closing Laufer and
Blackie shall collectively pay to the Company an amount equal to the deficit
(either such payment, the “Estimated Adjustment Amount”).

          (b) Within ninety (90) days following the Closing, Comstock Offshore,
Laufer and Blackie shall jointly determine the BDAO Working Capital as of the
Effective Time (the “Initial Post-Closing Working Capital Calculation”). To
the extent the Initial Post-Closing Working Capital Calculation is greater than
zero ($0.00), the Company shall pay to Laufer and Blackie an amount equal to
the excess; to the extent the Initial Post-Closing Working Capital Calculation
is less than zero ($0.00), Laufer and Blackie shall collectively pay to the
Company an amount equal to the deficit, but in either case the amount owing
pursuant to this Section 1.8(b) shall be adjusted for the Estimated Adjustment
Amount (the “Second Adjustment Amount”).

          (c) Within one hundred eighty (180) days following the Closing, Comstock
Offshore, Laufer and Blackie shall jointly make a final determination of the
BDAO Working Capital as of the Effective Time (the “Final Post-Closing Working
Capital Calculation”). To the extent the Final Post-Closing Working Capital
Calculation is greater than zero ($0.00), the Company shall pay to Laufer and
Blackie an amount equal to the excess; to the extent the Final Post-Closing
Working Capital Calculation is less than zero ($0.00), Laufer and Blackie shall
collectively pay to the Company an amount equal to the deficit, but in either
case the amount owing pursuant to this Section 1.8(c) shall be adjusted for the
Estimated Adjustment Amount and the Second Adjustment Amount.

          (d) Any amount owing by or to Laufer and Blackie pursuant to this Section
1.8 shall be split as directed by them. For purposes of this Section 1.8, the
term “BDAO Working Capital” shall mean (i) the sum of (1) cash, accounts
receivable, prepaid expenses, (2) unreimbursed seismic costs, leasehold
acquisitions costs and other costs incurred by BDAO under the Exploration
Agreement, including but not limited to permitting, surveying and
geological/geophysical data costs and (3) costs incurred with respect to
prospects identified but not drilled as of the Effective Time pursuant to the
Exploration Agreement, less (ii) the sum of trade payables and accrued
expenses, in each case for BDAO and BDAOG on a combined basis. The BDAO
Working Capital shall be calculated in accordance with GAAP.

          (e) Any gas imbalances that exist as of the Effective Time with respect to
the Properties will be settled up among the Company and the Contributors of
Properties based on the actual price received for the production month(s) in
which the imbalance occurred.

ARTICLE II

REPRESENTATIONS AND WARRANTIES CONCERNING

BDAO AND BDAOG

     Laufer and Blackie hereby jointly and severally represent and warrant to
the Company, the New Subsidiary and the Comstock Parties as follows:

     2.1 Existence and Good Standing. BDAO is a limited partnership duly
formed and validly existing under the laws of the State of Texas. BDAOG is a
limited liability company

-5-

 

duly formed, validly existing and in good standing under the laws of the
State of Texas. Each of BDAO and BDAOG has all requisite partnership or
limited liability company (as applicable) power and authority to carry on its
business as it is now being conducted.

     2.2 No Violation. The consummation of the BDA Equity Contributions by
Laufer and Blackie will not (i) violate any of the formation or governing
documents of either BDAO or BDAOG, (ii) violate any provision of or result in
the breach of or entitle any party to accelerate (whether after the giving of
notice or lapse of time or both) any obligation under any lease, contract,
license, instrument or any other agreement to which either BDAO or BDAOG is a
party, (iii) result in the creation or imposition of any Lien upon any property
of either BDAO or BDAOG, or (iv) to the knowledge of either Laufer or Blackie,
violate or conflict with any order, award, judgment or decree or other
restriction of any law, ordinance or regulation to which either BDAO or BDAOG
or any of their respective properties or interests are subject.

     2.3 Consents and Approvals. No prior consent, approval or authorization
of, or declaration, filing or registration with any Governmental Authority or
other Person is required in connection with the BDA Equity Contributions by
Laufer and Blackie.

     2.4 No Properties. Neither BDAO nor BDAOG owns any interest in the BDA
Properties or any other oil and gas properties; provided, that to the extent
either entity holds record title to any Properties as nominee, the necessary
assignments will be prepared as soon as practical after Closing and the
executed assignments shall be delivered to the appropriate beneficial owner(s).

     2.5 Absence of Litigation. There is no litigation, suit, claim, action,
proceeding or investigation (an “Action”) pending or, to the knowledge of
Laufer and Blackie, threatened against either BDAO or BDAOG, or any oil and gas
property or asset that is owned or operated by either BDAO or BDAOG (the “BDA
Operated Properties”), before any Governmental Authority that could reasonably
be expected to have a Material Adverse Effect. Neither BDAO or BDAOG nor any
of their respective properties is subject to any continuing order of, consent
decree, settlement agreement or similar written agreement with, or continuing
investigation by, any Governmental Authority, or any order, writ, judgment,
injunction, decree, determination or award of any Governmental Authority that
would prevent or materially delay consummation of the transactions contemplated
hereby or otherwise prevent or materially delay either BDAO or BDAOG from
performing its obligations under this Agreement and the Ancillary Documents.

     2.6 Taxes.

          (a) Each of BDAO and BDAOG has (i) duly filed (or there has been filed on
its behalf) on a timely basis (taking into account any extensions of time to
file before the date hereof) with the appropriate Governmental Authorities all
Tax Returns required to be filed by or with respect to it, and (ii) duly paid
or deposited in full on a timely basis or made adequate provisions in
accordance with good accounting practices (or there has been paid or deposited
or adequate provision has been made on its behalf) for the payment of all Taxes
required to be paid by it other than those being contested in good faith by
either entity.

-6-

 

          (b) Except as set forth on Schedule 2.6, (i) each of BDAO and BDAOG has at
all times since its inception been properly treated as a partnership for
federal income tax purposes; (ii) neither BDAO nor BDAOG is, as of the date
hereof, the subject of any audit or other proceeding in respect of payment of
Taxes for which it may be directly or indirectly liable and no such proceeding
has been threatened; (iii) no claim has ever been made by a Governmental
Authority where BDAO and/or BDAOG do not pay Tax or file Tax Returns that BDAO
and/or BDAOG are or may be subject to Taxes assessed by such jurisdiction; (iv)
as of the date hereof, neither BDAO nor BDAOG has granted any requests,
agreements, consents or waivers to extend the statutory period of limitations
applicable to the assessment of any Taxes with respect to any Tax Returns of
either entity; (v) neither BDAO nor BDAOG is a party to, is bound by or has any
obligation under any Tax sharing, allocation or indemnity agreement or any
similar agreement or arrangement; (vi) there are no Liens for Taxes on any
assets of either entity except for Taxes not yet currently due, with respect to
matters being contested by either entity in good faith for which adequate
reserves have been made by such entity; (vii) the amounts of Taxes withheld by
or on behalf of BDAO and BDAOG with respect to all compensation paid to
employees, consultants, independent contractors or other persons for all
periods ending on or before the date hereof have been proper and accurate in
all respects, and all deposits required with respect to such compensation have
been made in compliance in all respects with the provisions of all applicable
Tax law; and (viii) neither BDAO nor BDAOG has any obligation for Taxes of any
other person or entity.

     2.7 Gas Imbalances. To the knowledge of Laufer and Blackie, except as set
forth in Schedule 2.7, neither BDAO nor BDAOG has received any material
deficiency payment under any gas contract with respect to the BDA Operated
Properties for which any Person has a right to take deficiency gas from either
entity, nor has either entity received any material payment for production
which is subject to refund or recoupment out of future production.

     2.8 Take or Pay. To the knowledge of Laufer and Blackie, there are no
calls (exclusive of market calls) on the oil or gas production with respect to
the BDA Operated Properties and neither entity has any obligation to deliver
oil or gas pursuant to any take-or-pay, prepayment or similar arrangement
without receiving full payment therefor, excluding gas imbalances disclosed in
Schedule 2.7.

     2.9 Leases. To the knowledge of Laufer and Blackie, each of the leases
regarding the BDA Operated Properties is valid and in full force and effect,
each of BDAO and BDAOG has performed all obligations required to be performed
under such leases, or any other instruments and agreements relating to the BDA
Operated Properties, and neither party is in default thereunder.
Notwithstanding the foregoing, no representation or warranty is given with
respect to any undrilled leases.

     2.10 Rentals Paid. To the knowledge of Laufer and Blackie, all rentals,
bonuses and royalties on the production from the BDA Operated Properties, and
any other interests payable out of such production, have been timely and fully
paid and discharged, and all conditions necessary, and all conditions necessary
to keep the leases regarding the BDA Operated Properties in full force have
been performed and no proceeds from the sale of production attributable to the
BDA Operated Properties are currently being held in suspense by any purchase

-7-

 

thereof. Notwithstanding the foregoing, no representation or warranty is
given with respect to any undrilled leases.

     2.11 Equity Ownership. Blackie and Laufer legally and beneficially own
the BDA Equity Interests set forth opposite their respective names on Schedule
1.2, free and clear of any Liens. BDAOG legally and beneficially owns a 1.0%
general partner interest in BDAO free and clear of any Liens.

     2.12 Employee Benefit Plans. Except as set forth on Schedule 2.12,
neither BDAO, BDAOG nor the BDA Controlled Group sponsors, maintains, or
contributes to or participates in any Benefit Arrangement, and there are no
Benefit Plans.

     2.13 Labor Matters. Each of BDAO and BDAOG (i) has been and is in
compliance in all material respects with all Laws respecting employment and
employment practices, terms and conditions of employment and wages and hours;
and (ii) is not liable for any arrears of wages or penalties for failure to
comply with any of the foregoing.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF BDA CONTRIBUTORS

     Each of the BDA Contributors severally and not jointly makes the following
representations and warranties to the Company, the New Subsidiary and the
Comstock Parties, as to itself, himself or herself and as to its, his or her
respective interest in the BDA Properties:

     3.1 Existence and Good Standing. To the extent that such BDA Contributor
is not a natural person, such BDA Contributor is a limited partnership, limited
liability company or corporation (as applicable), duly formed and validly
existing under the laws of the jurisdiction of its organization. Such BDA
Contributor has all requisite partnership, limited liability company or
corporate (as applicable) power and authority to carry on its business as it is
now being conducted.

     3.2 Authority. Such BDA Contributor has all requisite partnership,
limited liability company or corporate (as applicable) power and authority to
execute, deliver and perform its obligations under this Agreement and the
Ancillary Documents, to the extent a party hereto or thereto. This Agreement
and each of the Ancillary Documents have been duly and validly executed and
delivered by such BDA Contributor and, assuming the due authorization,
execution and delivery hereof and thereof by the other parties hereto and
thereto, constitutes the valid and binding obligation of such BDA Contributor,
enforceable against such BDA Contributor in accordance with its respective
terms, subject to the effect of bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to creditors’ rights generally and
general equitable principles.

     3.3 No Violation. The execution and delivery of this Agreement and each
of the Ancillary Documents and the consummation of the transactions
contemplated hereby and thereby by such BDA Contributor (to the extent a party
thereto) will not (i) violate any of the formation or governing documents of
the such BDA Contributor (if applicable), (ii) violate any provision of or
result in the breach of or entitle any party to accelerate (whether after the
giving of notice or lapse of time or both) any obligation under any lease,
contract, license, instrument or

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any other agreement to which such BDA Contributor is a party, (iii) result
in the creation or imposition of any Lien upon the BDA Properties or any other
property of such BDA Contributor, or (iv) to the knowledge of such BDA
Contributor, violate or conflict with any order, award, judgment or decree or
other restriction of any law, ordinance or regulation to which such BDA
Contributor or any of its, his or her properties or interest is subject.

     3.4 Consents and Approvals. No prior consent, approval or authorization
of, or declaration, filing or registration with any Governmental Authority or
other Person is required in connection with the execution, delivery and
performance by such BDA Contributor of this Agreement and the Ancillary
Documents and the transactions contemplated hereby and thereby.

     3.5 Title to Properties. Except for items disclosed in Schedule 3.5 and
goods and other property sold, used or otherwise disposed of in the ordinary
course of business, such BDA Contributor has Good and Marketable Title in and
to all BDA Properties owned by it, him or her free and clear of any Liens,
except for: (i) Liens for current Taxes not yet due and payable, (ii)
materialman’s, mechanic’s, repairman’s, employee’s, contractors, operator’s,
and other similar Liens arising in the ordinary course of business (A) if they
have not been perfected pursuant to law, (B) if perfected, they have not yet
become due and payable or payment is being withheld as provided by law, or (C)
if their validity is being contested in good faith by appropriate action, (iii)
all rights to consent by, required notices to, filings with, or other actions
by Governmental Authority in connection with the sale or conveyance of oil and
gas leases or interests if they are customarily obtained subsequent to the sale
or conveyance, and (iv) such imperfections of title, easements and Liens which
have not had, or would not reasonably be expected to have, a Material Adverse
Effect. All major items of operating equipment used in connection with the BDA
Properties over which such BDA Contributor has operating rights are in good
operating condition and in a state of reasonable maintenance and repair,
ordinary wear and tear excepted, except as has not had, and would not
reasonably be expected to have, a Material Adverse Effect on such BDA
Properties.

     3.6 Absence of Litigation. There is no Action pending or, to the
knowledge of such BDA Contributor, threatened against such BDA Contributor or
involving any of the BDA Properties, before any Governmental Authority that
could reasonably be expected to have a Material Adverse Effect. Such BDA
Contributor nor its, his or her BDA Property is subject to any continuing order
of, consent decree, settlement agreement or similar written agreement with, or
continuing investigation by, any Governmental Authority, or any order, writ,
judgment, injunction, decree, determination or award of any Governmental
Authority that would prevent or materially delay consummation of the
transactions contemplated hereby or otherwise prevent or materially delay such
BDA Contributor from performing its, his or her obligations under this
Agreement and the Ancillary Documents.

     3.7 Taxes. All Tax Returns of such BDA Contributor required to be filed
by law where the failure to file such Tax Returns on a duly and timely basis
could result in a Lien on the BDA Properties or the imposition on the Company
or the New Subsidiary of any liability for Taxes have been duly and timely
filed in the proper form with the appropriate Governmental Authority. All
Taxes due or payable pursuant to such Returns or otherwise have been paid,
except for such amounts as are being contested diligently, in the appropriate
forum and in good faith, where the failure to pay or contest such amounts could
result in a Lien on the BDA

-9-

 

Properties or the imposition on the Company or the New Subsidiary of any
liability for any Taxes. No federal, state, local or foreign audits or other
administrative or court proceedings are presently pending with respect to any
Tax Return or Tax of the representing BDA Contributor, and such BDA Contributor
has not received written notice from any Governmental Authority of the expected
commencement of any such proceeding, which could result in a Lien on the BDA
Properties or the imposition on the Company or the New Subsidiary of any
liability for Taxes. All Taxes based on or measured by the ownership of BDA
Properties owned by such BDA Contributor or the production of oil or gas
therefrom or the receipt of proceeds therefrom, which have become due and
payable prior to the date hereof with respect to such BDA Properties have been
properly paid, and such Taxes which become due and payable prior to the Closing
shall be properly paid by such BDA Contributor.

     3.8 Gas Imbalances. To the knowledge of the applicable BDA Contributor,
except as set forth in Schedule 3.8, such BDA Contributor has not has received
any material deficiency payment under any gas contract with respect to the BDA
Properties for which any Person has a right to take deficiency gas from such
BDA Contributor, nor has such BDA Contributor received any material payment for
production which is subject to refund or recoupment out of future production.

     3.9 Take or Pay. To the knowledge of the applicable BDA Contributor,
there are no calls (exclusive of market calls) on the oil or gas production
with respect to such BDA Contributor’s interest in the BDA Properties and such
BDA Contributor has no obligation to deliver oil or gas pursuant to any
take-or-pay, prepayment or similar arrangement without receiving full payment
therefor, excluding gas imbalances disclosed in Schedule 3.8.

     3.10 Leases. To the knowledge of the applicable BDA Contributor, each of
the leases regarding the BDA Properties owned by such BDA Contributor is valid
and in full force and effect, and such BDA Contributor has performed all
obligations required to be performed under such leases, or any other
instruments and agreements relating to the BDA Properties, and is not in
default thereunder.

     3.11 Rentals Paid. To the knowledge of the applicable BDA Contributor,
all rentals, bonuses and royalties on the production from the BDA Properties
owned by such BDA Contributor, and any other interests payable out of such
production, have been timely and fully paid and discharged, and all conditions
necessary, and all conditions necessary to keep the leases regarding such BDA
Properties in full force have been performed and no proceeds from the sale of
production attributable to such BDA Properties are currently being held in
suspense by any purchase thereof.

ARTICLE IV

REPRESENTATIONS OF COMSTOCK PARTIES

     The Comstock Parties hereby jointly and severally represent and warrant to
each of the Company, the New Subsidiary and the BDA Contributors as follows:

     4.1 Existence and Good Standing. Comstock Offshore is a limited liability
company, duly formed and validly existing under the laws of the State of
Nevada. Comstock Offshore has all requisite limited liability company power
and authority to carry on its business as it is now

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being conducted. Comstock Resources is a corporation, duly formed and
validly existing under the laws of the State of Nevada. Comstock Resources has
all requisite corporate power and authority to carry on its business as it is
now being conducted.

     4.2 Authority. Each Comstock Party has all requisite limited liability
company power and authority to execute, deliver and perform this Agreement and
the Ancillary Documents to the extent a party hereto or thereto. This
Agreement and the Ancillary Documents have been duly and validly executed and
delivered by each Comstock Party (to the extent a party thereto) and, assuming
the due authorization, execution and delivery hereof and thereof by the other
parties hereto and thereto, constitutes the valid and binding obligation of
each Comstock Party (to the extent a party thereto), enforceable against it in
accordance with its respective terms, subject to the effect of bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to
creditors’ rights generally and general equitable principles.

     4.3 No Violation. The execution and delivery of this Agreement and the
Ancillary Documents and the consummation of the transactions contemplated
hereby and thereby by each Comstock Party will not (i) violate any of the
formation or governing documents of either Comstock Party, (ii) violate any
provision of or result in the breach of or entitle any party to accelerate
(whether after the giving of notice or lapse of time or both) any obligation
under any lease, contract, license, instrument or any other agreement to which
either Comstock Party is a party, (iii) result in the creation or imposition of
any Lien upon the Comstock Properties or any other property of either Comstock
Party, or (iv) to the knowledge of the Comstock Parties, violate or conflict
with any order, award, judgment or decree or other restriction of any law,
ordinance or regulation to which either Comstock Party or any of their
respective properties or interests are subject.

     4.4 Consents and Approvals. No prior consent, approval or authorization
of, or declaration, filing or registration with any Governmental Authority or
other Person is required in connection with the execution, delivery and
performance by the Comstock Parties of this Agreement and the Ancillary
Documents by Comstock Offshore and the transactions contemplated hereby and
thereby, except for those that have been obtained prior to the date hereof.

     4.5 Title to Properties. Except for items disclosed in Schedule 4.5 and
goods and other property sold, used or otherwise disposed of in the ordinary
course of business, Comstock Offshore has Good and Marketable Title in and to
all Comstock Properties, free and clear of any Liens, except for: (i) Liens
for current Taxes not yet due and payable, (ii) materialman’s, mechanic’s,
repairman’s, employee’s, contractors, operator’s, and other similar Liens
arising in the ordinary course of business (A) if they have not been perfected
pursuant to law, (B) if perfected, they have not yet become due and payable or
payment is being withheld as provided by law, or (C) if their validity is being
contested in good faith by appropriate action, (iii) all rights to consent by,
required notices to, filings with, or other actions by Governmental Authority
in connection with the sale or conveyance of oil and gas leases or interests if
they are customarily obtained subsequent to the sale or conveyance, and (iv)
such imperfections of title, easements and Liens which have not had, or would
not reasonably be expected to have, a Material Adverse Effect.

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     4.6 Absence of Litigation. There is no Action pending or, to the
knowledge of the Comstock Parties, threatened against either Comstock Party or
involving any of the Comstock Properties before any Governmental Authority that
could reasonably be expected to have a Material Adverse Effect. Neither of the
Comstock Parties nor any of the Comstock Properties is subject to any
continuing order of, consent decree, settlement agreement or similar written
agreement with, or continuing investigation by, any Governmental Authority, or
any order, writ, judgment, injunction, decree, determination or award of any
Governmental Authority that would prevent or materially delay consummation of
the transactions contemplated hereby or otherwise prevent or materially delay
either Comstock Party from performing its respective obligations under this
Agreement and the Ancillary Documents.

     4.7 Taxes. All Tax Returns required to be filed by law where the failure
to file such Tax Returns on a duly and timely basis could result in a Lien on
the Comstock Properties or the imposition on the Company or the New Subsidiary
of any liability for Taxes have been duly and timely filed in the proper form
with the appropriate Governmental Authority. All Taxes due or payable pursuant
to such Tax Returns or otherwise have been paid, except for such amounts as are
being contested diligently, in the appropriate forum and in good faith, where
the failure to pay or contest such amounts could result in a Lien on the
Comstock Properties or the imposition on the Company or the New Subsidiary of
any liability for any Taxes. No federal, state, local or foreign audits or
other administrative or court proceedings are presently pending with respect to
any Tax Return or Tax of the Comstock Parties, and the Comstock Parties have
not received written notice from any Governmental Authority of the expected
commencement of any such proceeding, which could result in a Lien on the
Comstock Properties or the imposition on the Company or the New Subsidiary of
any liability for Taxes. All Taxes based on or measured by the ownership of
Comstock Properties or the production of oil or gas therefrom or the receipt of
proceeds therefrom, which have become due and payable prior to the date hereof
with respect to the Comstock Properties have been properly paid, and Comstock
Offshore’s allocable share of such Taxes which become due and payable prior to
the Closing shall be properly paid by Comstock Offshore.

     4.8 Gas Imbalances. To the knowledge of the Comstock Parties, except as
set forth in Schedule 4.8, Comstock Offshore has not received any material
deficiency payment under any gas contract with respect to the Comstock
Properties for which any Person has a right to take deficiency gas from
Comstock Offshore, nor has it received any material payment for production
which is subject to refund or recoupment out of future production.

     4.9 Take or Pay. To the knowledge of the Comstock Parties, there are no
calls (exclusive of market calls) on the oil or gas production with respect to
Comstock Offshore’s interest in the Comstock Properties and Comstock Offshore
has no obligation to deliver oil or gas pursuant to any take-or-pay, prepayment
or similar arrangement without receiving full payment therefor, excluding gas
imbalances disclosed in Schedule 4.8.

     4.10 Leases. To the knowledge of the Comstock Parties, each of the leases
regarding the Comstock Properties is valid and in full force and effect, and
Comstock Offshore has performed all obligations required to be performed under
such leases, or any other instruments and agreements relating to the Comstock
Properties, and is not in default thereunder.

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     4.11 Rentals Paid. To the knowledge of the Comstock Parties, all rentals,
bonuses and royalties on the production from the Comstock Properties, and any
other interests payable out of such production, have been timely and fully paid
and discharged, and all conditions necessary, and all conditions necessary to
keep the leases regarding the Comstock Properties in full force have been
performed and no proceeds from the sale of production attributable to the
Comstock Properties are currently being held in suspense by any purchase
thereof.

     4.12 Comstock Credit Facility. No event of default currently exists under
the Comstock Credit Facility or would result from the transactions contemplated
hereby.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF ALL OF THE CONTRIBUTORS

AND DISTRIBUTEES

     Each Contributor and Distributee hereby severally and not jointly
represents and warrants to the Company and each other Contributor and
Distributee as follows:

     5.1 Acquisition Entirely for Own Account. This Agreement is made with the
other Contributors and Distributees and the Company in reliance upon its or his
representation, which by its or his execution of this Agreement is hereby
confirmed, that the Units to be acquired or received by such Contributor or
Distributee will be acquired for investment for such Contributor’s or
Distributee’s own account, and not with a view toward the distribution of any
part thereof, and that such Contributor or Distributee has no present intention
of selling, granting any participation in, or otherwise distributing the same
in a manner contrary to the Securities Act or applicable state securities laws
except as may be permitted pursuant to the Transfer Restriction Agreement.

     5.2 Disclosure of Information; Due Diligence. Each Contributor and
Distributee has received the Private Placement Memorandum dated July 14, 2004
from the Company, and has had the opportunity to ask questions of and receive
answers from the Company regarding the Company and the terms and conditions of
the offering of the Units hereunder and has received all information that the
Contributor or the Distributee has requested from the Company concerning the
Company and the transactions contemplated hereby.

     5.3 Investment Experience; Accredited Purchaser Status. Each Contributor
or Distributee is able to fend for itself or himself in the transactions
contemplated by this Agreement, can bear the economic risk of its or his
investment (including the possible complete loss of such investment) for an
indefinite period of time and has such knowledge and experience in financial or
business matters that he or it is capable of evaluating the merits and risks of
the investment in the Units or is relying on his or its own Purchaser
Representative in making his or its investment decision. Each Contributor or
Distributee understands that the Units to be acquired hereunder have not been
registered under the Securities Act, or under the securities laws of any
jurisdiction and such are being issued, by reason of reliance upon certain
exemptions, and that the reliance on such exemptions is predicated, in part,
upon the accuracy of the Contributors’ or the Distributee’s representations and
warranties in this Article V. “Purchaser Representative” shall mean any person
who (1) is not an Affiliate, manager, officer or other employee of the Company,
or beneficial owner of 10% or more of the equity interest in

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the Company, (2) has such knowledge and experience in financial and
business matters that he is capable of evaluating, alone or together with other
purchaser representatives of the Contributor or the Distributee, or together
with the Contributor or the Distributee, the merits and risks of the investment
in Units, (3) is acknowledged by the Contributor or the Distributee in writing
during the course of the transactions contemplated hereby to be such
Contributor’s or Distributee’s purchaser representative in connection with
evaluating the merits and risks of the prospective investment in Units, and (4)
discloses to the Contributor or the Distributee in writing a reasonable time
prior to the sale of Units any material relationship between such purchaser
representative or his Affiliates and the Company or its Affiliates that exists,
that is mutually understood to be contemplated, or that has existed at any time
during the previous two years, and any compensation received or to be received
as a result of such relationship.

          (a) With respect to Comstock Offshore, BDAR, Laufer, Blackie, Haro, and
such other Contributors and Distributees identified on Schedule 5.1, each such
Contributor or Distributee is familiar with Regulation D promulgated under the
Securities Act and each is an “accredited investor” as defined in Rule 501(a)
of such Regulation D.

          (b) With respect to each other Contributor and Distributee, (i) such
Contributor’s or Distributee’s financial capacity is such that the total cost
of such Contributor’s or Distributee’s investment in the Company would not be
material when compared to such Contributor’s or Distributee’s total financial
capacity (it being presumed that this test will be met if the investment to be
made by such Contributor or Distributee is does not exceed 10% of such
Contributor’s or Distributee’s net worth or joint net worth with such
Contributor’s or Distributee’s spouse), (ii) such Contributor or Distributee
has adequate means of providing for such Contributor’s or Distributee’s current
needs and personal contingencies and has no need for liquidity in his
investment in the Units, (iii) such Contributor or Distributee has substantial
experience in making investment decisions of this type or is relying on his or
its own Purchaser Representative in making his or its investment decision, (iv)
such Contributor or Distributee or his or its Purchaser Representative has
knowledge of finance, securities and investments, generally, (v) such
Contributor or Distributee or his or its Purchaser Representative has prior
experience and skill in investments based upon actual participation and (vi)
such Contributor or Distributee has disclosed to the Company in writing any
person who will act as his or its Purchaser Representative.

     5.4 Restricted Securities. Each Contributor and Distributee understands
that the Units to be acquired hereunder are characterized as “restricted
securities” under the federal securities laws inasmuch as they are being
acquired from the Company in transactions not involving a public offering and
that under such laws and applicable regulations such securities may be resold
without registration under the Securities Act only in certain limited
circumstances and in accordance with the terms and conditions set forth in the
Operating Agreement and Restricted Transfer Agreement. Each Contributor and
Distributee represents that he, she or it is familiar with Rule 144, as
presently in effect, and understands the resale limitations imposed thereby and
by the Securities Act.

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ARTICLE VI

ADDITIONAL COVENANTS

     6.1 Taxes.

          (a) For federal income tax purposes, all Parties will treat the
Contributions contemplated by this Agreement as contributions to the Company
qualifying under Section 721 of the Code, except that to the extent of the cash
payments and the Contribution Notes which will be treated as sales to the
Company under Section 707 of the Code. In accordance with the foregoing
provision, Contributions to the New Subsidiary shall be treated as
contributions or sales, as applicable, to the Company for federal income tax
purposes.

          (b) In order to apportion appropriately any Taxes relating to a Straddle
Period, each Contributor shall, to the extent permitted under applicable law,
elect with each relevant Tax authority to treat for all Tax purposes the
Effective Time as the last day of the taxable year or period of, or with
respect to, the entities or assets contributed by such Party. Each such Party
shall timely prepare and file (or cause to be timely prepared and filed) all
Tax Returns relating to the entities or assets contributed by such Party for
all Pre-Effective Periods other than Straddle Periods and all other Tax Returns
required to be filed on or before the Effective Time. Each party shall timely
pay (or cause to be paid) all Taxes shown as due and payable on such Tax
Returns. The Company shall timely prepare and file (or cause to be timely
prepared and filed) all Tax Returns for any Straddle Periods (“Straddle
Returns”). The Company shall timely pay (or cause to be paid) all Taxes shown
as due and payable on all Straddle Returns and, with respect to each such
Straddle Return, the Party that contributed the asset or entity related thereto
shall reimburse the Company for Taxes attributable to the portion of the
Straddle Period ending on or before the Effective Time. For this purpose, the
portion of any Taxes that are allocable to the portion of the Straddle Period
ending on the Effective Time shall be: (1) in the case of Taxes that are
imposed on a periodic basis, the amount of such Taxes for the entire relevant
Straddle Period (or, in the case of such Taxes determined on an arrears basis
(such as real property Taxes), the amount of such Taxes for the immediately
preceding period) multiplied by a fraction the numerator of which is the number
of calendar days in the Straddle Period prior to and including the Effective
Time and the denominator of which is the number of calendar days in the entire
Straddle Period; or (2) in the case of all other Taxes (such as Taxes that are
either (x) based upon or related to income or receipts, or (y) imposed in
connection with any sale or other transfer or assignment of property (real or
personal, tangible or intangible)), the amount that would be payable if the
taxable year or period ended on the Effective Time. Reimbursements pursuant to
this Section 6.1(b) shall be made within thirty (30) days of the Company’s
request therefor. After all Tax Returns have been filed as required by this
Section 6.1(b), each Party agrees to provide the Company with documentation
showing the tax basis of all assets contributed to the Company pursuant to this
Agreement.

          (c) Laufer and Blackie will, with respect to the employees of BDAO and BDA
Oil and Gas, take the position that BDAO and BDAOG prior to the Closing each
meet the definition of “predecessor” and the Company meets the definition of
“successor” as defined in Revenue Procedure 96-60, 1996-2 C.B. 399, and
Treasury Regulation section 31.3121(a)(1)-1(b). Absent a mutual agreement with
the Company to the contrary, each party will use the “Standard Procedure”
described in section 4 of Revenue Procedure 96-60. Laufer and Blackie

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shall promptly supply the Company, with respect to all of such employees,
all cumulative payroll information as of the Effective Time to comply with
Treasury Regulation section 31.3121(a)(1)-1(b).

          (d) All Parties shall cooperate fully, as and to the extent reasonably
requested by the Company, in connection with any audit, litigation or other
proceeding with respect to Taxes. Such cooperation shall include the retention
and (upon the Company’s request) the provision of records and information that
are reasonably relevant to any such audit, litigation or other proceeding and
making employees available on a mutually convenient basis to provide additional
information and explanation of any material provided hereunder. Each Party
agrees (A) to retain all books and records with respect to Tax matters
relating to the Party’s Contribution relating to any taxable period beginning
before the Effective Time until the expiration of the statute of limitations
(including extensions thereof) of the respective taxable periods, and to abide
by all record retention agreements entered into with any taxing authority, and
(B) to give the Company reasonable written notice prior to transferring,
destroying or discarding any such books and records and, if the Company
requests, shall allow the Company to take possession of such books and records.

     6.2 Termination of Exploration Agreement. At the Closing, the Exploration
Agreement shall be terminated by written agreement of the parties thereto
(without any liability to any party thereto) and shall be of no further force
and effect. All warrants to purchase common stock of Comstock Resources that
are not earned by the Effective Time pursuant to the terms of the Exploration
Agreement are hereby cancelled, forfeited and of no further force and effect;
provided that Laufer and Blackie shall be entitled to receive the warrants due
under the Exploration Agreement on any well that has been spudded prior to the
Closing Date as long as the well is a qualifying well under the Exploration
Agreement and such well is completed as a successful well as provided therein.
Comstock Offshore will be reimbursed for (a) all advances not previously
reimbursed and (b) all out of pocket costs incurred with respect to prospects
identified but not drilled as of the Effective Time, in each case pursuant to
the Exploration Agreement. In the event the Company is dissolved pursuant to
Section 17.7 of the Operating Agreement, the Exploration Agreement shall be
reinstated in accordance with its terms.

     6.3 Loans by Comstock Resources. Comstock Resources agrees to advance
funds from time to time to the Company in such amounts as the Board of Managers
of the Company may reasonably request, with an aggregate amount outstanding at
any time not to exceed $200 million (the “Loans”). Such Loans shall be
pursuant to a Loan Agreement in the form of Exhibit D attached hereto, and
shall be secured by a Lien on all of the Properties pursuant to deeds of trust,
mortgages and other security documents acceptable to Comstock Resources.

     6.4 Services Agreement. At the Closing, Comstock Resources and the
Company shall enter into the Services Agreement in the form attached hereto as
Exhibit E.

     6.5 Adoption of Incentive Plan. As of the Closing, the Company shall
adopt the Bois d’Arc Energy, LLC Long Term Incentive Plan in the form attached
hereto as Exhibit F (the “LTIP”). The initial awards under the LTIP will be as
set forth on Schedule 6.5.

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     6.6 Overriding Royalty Incentive Plan. As of the Closing, the Company
shall adopt the Bois d’Arc Energy, LLC Overriding Royalty Interest Incentive
Plan in the form attached hereto as Exhibit G.

     6.7 Employee Benefit Plans. Comstock Resources shall permit the employees
of the Company to participate in its Employee Benefit Plan, a group medical and
welfare benefits plan. The Company shall adopt and maintain a 401(k) plan for
its employees.

     6.8 Employment Arrangements. At the Closing, (a) the Company and Blackie
shall enter into an employment agreement in the form attached hereto as Exhibit
H-1 and (b) the Company and Laufer shall enter into an employment agreement in
the form attached hereto as Exhibit H-2.

     6.9 Guaranty of Credit Facility Debt. The Parties acknowledge and agree
that each of the Company, the New Subsidiary, the New GP, BDAO and BDAOG will
become a guarantor under the Comstock Credit Facility, and will deliver all
documents contemplated thereby.

     6.10 Guaranty of Indenture Debt. The parties acknowledge and agree that
each of the Company, the New Subsidiary, the New GP, BDAO and BDAOG will become
a guarantor and restricted subsidiary under the Indenture, and will deliver all
documents contemplated thereby.

     6.11 Cooperation with Accountants. Each of the Parties agrees to
cooperate with the Company’s accountants and provide such accountants with all
books and records as may be requested in connection with the preparation of
audited financial statements for the Company that may be necessary for a
subsequent financing transaction. Any Party considered a “predecessor” to the
Company shall further allow the Company’s accountants to perform audits of its
financial statements for prior periods to the extent necessary for a subsequent
financing transaction.

     6.12 Expenses. Except as otherwise provided in this Agreement, all
expenses involved in the preparation and negotiation of this Agreement and the
transactions contemplated hereby shall be borne by the Company. The Company
shall reimburse each of the Comstock Parties, Laufer and Blackie any such
expenses paid by such Party.

ARTICLE VII

CONDITIONS TO THE CLOSING

     7.1 Conditions to Each Party’s Obligation to Close. The respective
obligations of each Party to effect the transactions contemplated by this
Agreement shall be subject to the fulfillment or waiver, if permissible, of the
following conditions prior to the Closing:

          (a) no preliminary or permanent injunction or other order or decree by any
federal or state court which prevents the consummation of the transactions
contemplated by this Agreement shall have been issued and remain in effect
(each Party hereby agreeing to use its reasonable efforts to have any such
injunction, order or decree lifted);

          (b) no action shall have been taken, and no statute, rule or regulation
shall have been enacted, by any state or federal government or governmental
agency in the United

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States which would prevent the consummation of the transactions
contemplated by this Agreement or make the consummation of the transactions
contemplated by this Agreement illegal; and

     (c) If Sally Blackie and Bets West, LLC elect to participate in the
transactions contemplated by this Agreement, the Company shall have received
the necessary instruments in form and substance satisfactory to it from Sally
Blackie regarding the relinquishment and cancellation of certain rights and
such other matters with respect to the Properties as the Company determines.

ARTICLE VIII

TERMINATION AND WAIVER

     8.1 Termination.

          (a) Any Contributor shall have the right to terminate this Agreement if
the transactions contemplated by this Agreement are enjoined by a final,
unappealable court order.

          (b) This Agreement may be terminated and the transactions contemplated
hereby abandoned at any time prior to the Closing by mutual written agreement
of BDAR and Comstock Offshore.

     8.2 Effect of Termination. If this Agreement is terminated by a Party
pursuant to the provisions of Section 7.1, this Agreement shall forthwith
become void and there shall be no further obligations on the part of any of the
Parties, or their respective stockholders, partners, members, directors,
officers, managers, employees, agents or representatives other than Section
10.15 and this Section 8.2. Notwithstanding the preceding sentence or any
other provision set forth herein, nothing in this Section 8.2 shall relieve any
Party from liability for any breach of this Agreement.

     8.3 Extensions; Waiver. At any time prior to the Closing, the Parties may
(a) extend the time for the performance of any of the obligations or other acts
of the other Parties, (b) waive any inaccuracies in the representations and
warranties contained herein or in any document delivered pursuant thereto and
(c) waive compliance with any of the agreements or conditions herein. Any
agreement on the part of a Party to any such extension or waiver shall be valid
if set forth in an instrument in writing signed on behalf of such Party. No
waiver, or failure to insist upon strict compliance, by any Party of any
condition or any breach of any obligation, term, covenant, representation,
warranty or agreement contained in this Agreement, in any one or more
instances, shall be construed to be a waiver of, or estoppel with respect to,
any other condition or any other breach of the same or any other obligation,
term, covenant, representation, warranty or agreement.

ARTICLE IX

REMEDIES

     9.1 Right to Indemnification Not Affected by Knowledge. The right to
indemnification in accordance with the provisions of this Article will not be
affected by any investigation conducted with respect to, or any Knowledge of
the Indemnified Party (as defined

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herein below), whether before or after the execution and delivery of this
Agreement or the Closing Date, with respect to the accuracy or inaccuracy of or
compliance with, any such representation, warranty, covenant or obligation.

     9.2 Indemnification by Laufer and Blackie. Except as otherwise expressly
provided in this Article IX and subject to the limitations stated in this
Article IX, Laufer and Blackie severally and not jointly agree to, and shall,
defend, indemnify and hold harmless the Company, the New Subsidiary and the
Comstock Parties (and their respective officers, directors, employees, agents,
shareholders, members and partners) from and against, and shall reimburse the
Company, the New Subsidiary and the Comstock Parties (and their respective
officers, directors, employees, agents, shareholders, members and partners)
for, all Losses incurred by the Company, the New Subsidiary and the Comstock
Parties (and their respective officers, directors, employees, agents,
shareholders, members and partners), relating to, resulting from or arising out
of (including, without limitation, as a result of any allegation by any third
party) the following: (a) any inaccuracy in any representation or warranty of
either Laufer or Blackie under Article II of this Agreement; (b) any breach or
nonfulfillment of any covenant, agreement or other obligation of Laufer or
Blackie of any provision of this Agreement; or (c) any Tax of BDAO or BDAOG
attributable to a Pre-Effective Period.

     9.3 Indemnification by the BDA Contributors. Except as otherwise
expressly provided in this Article IX and subject to the limitations stated in
this Article IX, each BDA Contributor agrees to, and shall severally and not
jointly, defend, indemnify and hold harmless the Company, the New Subsidiary
and the Comstock Parties (and their respective officers, directors, employees,
agents, shareholders, members and partners) from and against, and shall
reimburse the Company, the New Subsidiary and the Comstock Parties (and their
respective officers, directors, employees, agents, shareholders, members and
partners) for, all Losses incurred by the Company, the New Subsidiary and the
Comstock Parties (and their respective officers, directors, employees, agents,
shareholders, members and partners), relating to, resulting from or arising out
of (including, without limitation, as a result of any allegation by any third
party) the following: (a) any inaccuracy in any representation or warranty of
the indemnifying BDA Contributor under Articles III and V of this Agreement;
(b) any breach or nonfulfillment of any covenant, agreement or other obligation
of the applicable BDA Contributor of any provision of this Agreement; or (c)
any Tax attributable to a Pre-Effective Period related to the BDA Properties;
or (d) the breach by the BDA Contributor of any of its duties (including duties
of disclosure) to its respective Distributees, if applicable, arising in
connection with the transactions contemplated by this Agreement; or (e)
obligations or liabilities of such BDA Contributor to any of its former
partners, members, employees or agents on account of such Person’s present or
former interest in or right to participate in the revenues or profits of such
BDA Contributor.

     9.4 Indemnification by the Comstock Parties. Except as otherwise
expressly provided in this Article IX and subject to the limitations stated in
this Article IX, Comstock Offshore and Comstock Resources jointly and severally
agree to, and shall, defend, indemnify and hold harmless the Company, the New
Subsidiary and the BDA Contributors (and their respective officers, directors,
employees, agents, shareholders, members and partners) from and against, and
shall reimburse the Company, the New Subsidiary and the BDA Contributors (and
their respective officers, directors, employees, agents, shareholders, members
and partners) for, each and every Loss incurred by the Company, the New
Subsidiary and the BDA Contributors (and

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their respective officers, directors, employees, agents, shareholders,
members and partners), relating to, resulting from or arising out of
(including, without limitation, as a result of any allegation by any third
party) the following: (a) any inaccuracy in any representation or warranty of
either Comstock Party under Articles IV and V of this Agreement; (b) any breach
or nonfulfillment of any covenant, agreement or other obligation of either
Comstock Party under any provision of this Agreement; or (c) any Tax
attributable to a Pre-Effective Period related to the Comstock Properties.

     9.5 Notice and Defense of Third-Party Claims. If any judicial,
administrative, arbitration or investigatory proceeding or other proceeding,
claim or controversy (collectively, a “Proceeding”) shall be brought or
asserted under this Article IX against an indemnified party or any successor
thereto (the “Indemnified Person”) in respect of which indemnity may be sought
under this Article IX from an indemnifying person or any successor thereto (the
“Indemnifying Person”), the Indemnified Person shall give prompt written notice
of such Proceeding to the Indemnifying Person who shall assume the defense
thereof, including the employment of counsel reasonably satisfactory to the
Indemnified Person and the payment of all reasonable expenses; provided, that
any delay or failure so to notify the Indemnifying Person shall relieve the
Indemnifying Person of its obligations hereunder only to the extent, if at all,
that it is materially prejudiced by reason of such delay or failure. In no
event shall any Indemnified Person be required to make any expenditure or bring
any cause of action to enforce the Indemnifying Person’s obligations and
Liability under and pursuant to the indemnifications set forth in this Article
IX. The Indemnified Person shall have the right to employ separate counsel in
any of the foregoing Proceedings and to participate in the defense thereof, but
the reasonable fees and expenses of such counsel shall be at the expense of the
Indemnified Person unless the Indemnified Person shall in good faith determine
that there exist actual or potential conflicts of interest which make
representation by the same counsel inappropriate. The Indemnified Person’s
right to participate in the defense or response to any Proceeding should not be
deemed to limit or otherwise modify its rights or obligations under this
Article IX. In the event that the Indemnifying Person, within twenty (20) days
after notice of any such Proceeding, fails to assume the defense thereof, the
Indemnified Person shall have the right to undertake the defense, compromise or
settlement of such Proceeding for the account of and at the expense of the
Indemnifying Person. Anything in this Article IX to the contrary
notwithstanding, the Indemnifying Person shall not, without the Indemnified
Person’s prior written consent (which consent shall not be unreasonably
withheld), settle or compromise any Proceeding or consent to the entry of any
judgment with respect to any Proceeding; provided, however, the Indemnified
Person’s prior written consent is not required if (A) there is no finding or
admission of any violation of law, rule, regulation or other legal requirement
or any violation of the rights of any person and no effect on any other claims
that may be made against the Indemnified Person, (B) the Indemnified Person
receives as part of such settlement a legal, binding and enforceable
unconditional satisfaction and/or release, in form and substance reasonably
satisfactory to it, providing that any claimed liability of the Indemnified
Person with respect thereto is being fully satisfied by reason of such
compromise or settlement and that the Indemnified Person is being released from
any and all obligations or liabilities it may have with respect thereto, and
(C) the sole relief provided is monetary damages that are paid in full by the
Indemnifying Person.

     9.6 Limitations of Liability. In calculating the amount of any Loss for
which any Indemnifying Person is liable under this Article IX there shall be
taken into consideration the

-20-

 

amount of any insurance recoveries from third-party insurers which the
Indemnified Person actually receives as a direct consequence of the
circumstances to which the Loss related or from which the Loss resulted or
arose, except to the extent such insurance recoveries have or are reasonably
anticipated to result in future or retroactive premium increases.

     9.7 Specific Performance; Injunctive and Other Equitable Relief. Each
Party hereto acknowledges that a violation or attempted violation of any of the
covenants and agreements herein will cause such damage to the other Parties as
will be irreparable, the exact amount of which would be difficult or impossible
to ascertain and for which there will be no adequate remedy at law, agrees that
the other Parties hereto shall be entitled as a matter of right to specific
performance and injunctive and other equitable relief in case of such violation
or attempted violation as well as any injunctive and other equitable relief in
case of such violation or attempted violation as well as any and all costs and
expenses sustained or incurred in obtaining any such equitable relief,
including, without limitation, reasonable attorneys’ fees, and agrees to waive
any requirement for the securing or posting of any bond or other security in
connection with the obtaining of any such injunction or other equitable relief.

     9.8 Certain Joinder to Indemnification. Laufer hereby joins in and agrees
to be bound by the indemnification obligation of Haro under Section 9.3 to the
same extent as Haro is bound thereby.

ARTICLE X

MISCELLANEOUS

     10.1 Survival of Representations and Warranties. The Parties agree that
all of their respective representations and warranties contained in this
Agreement, the Schedules hereto or any certificate, agreement or document
delivered under this Agreement shall survive the Closing. Notwithstanding the
foregoing, all representations and warranties shall terminate upon consummation
of a Financing Transaction.

     10.2 Brokers and Finders. All negotiations on behalf of the Parties
relating to this Agreement and the transactions contemplated by this Agreement
have been carried on by the Parties and their respective agents directly
without the intervention of any other person in such manner as to give rise to
any claim against any other Party for financial advisory fees, brokerage or
commission fees, finder’s fees or other like payment in connection with the
consummation of the transactions contemplated hereby.

     10.3 Entire Agreement; Assignment. This Agreement together with the
Ancillary Documents constitute the entire agreement among the Parties with
respect to the subject matter hereof, and supersede all other prior agreements
and understandings, both written and oral, among the Parties or any of them
with respect to the subject matter hereof. This Agreement shall not be
assigned (by operation of law or otherwise) by any Party without the prior
written consent of all other Parties. No assignment shall relieve the
assigning party of any obligation hereunder.

     10.4 Amendment and Modification. This Agreement may be amended, modified
or supplemented only by written agreement of all of the Parties.

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     10.5 Further Assurances. From time to time, the Parties shall execute and
deliver such further agreements, documents, certificates and other instruments
and shall take or cause to be taken such other actions as shall be reasonably
necessary or advisable to carry out the purposes of and effect the transactions
contemplated by this Agreement.

     10.6 Severability. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provisions of this Agreement, which shall remain in full force and effect.

     10.7 Address for Notices. All notices, demands, consents and reports
provided for in this Agreement shall be in writing and shall be given to the
Parties at the addresses set forth herein or at such other addresses as a Party
may hereafter specify in writing. Such notices may be delivered by hand or by
telecopy or may be mailed, postage prepaid, by certified or registered mail, by
a deposit in a depository for the receipt of mail regularly maintained by the
United States Postal Service. All notices which are hand delivered or
delivered by telecopy shall be deemed given on the date of delivery. Except as
otherwise provided herein, all notices which are mailed in the manner provided
above shall be deemed given upon receipt.

     if to any BDA Contributor:

	 	 	c/o Bois d’Arc Resources, Ltd.

600 Travis, Suite 6275

Houston, Texas 77002

Attn: Mr. Gary Blackie

Telecopy: (713) 228-1759

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

	 	 	Crady, Jewett & McCulley, L.L.P.

2727 Allen Parkway, Suite 1700

Houston, Texas 77019-2125

Attention: Larry Glenn

Telecopy No.: (713) 739-8403

     if to either Comstock Party:

	 	 	c/o Comstock Resources, Inc.

5300 Town and Country Blvd., Suite 500

Frisco, Texas 75034

Attention: Mr. M. Jay Allison

Telecopy No.: (972) 668-8812

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

	 	 	Locke Liddell & Sapp LLP

2200 Ross Avenue, Suite 2200

Dallas, Texas 75201

Attention: Jack E. Jacobsen

Telecopy No.: (214) 756-8553

     10.8 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas, regardless of the laws that
might otherwise govern under applicable principles of conflicts of laws
thereof.

     10.9 Dispute Resolution.

          (a) Negotiation. The Parties shall attempt to resolve any dispute arising
out of or relating to this Agreement or the termination, breach, or validity of
this Agreement, promptly by good faith negotiation among representatives who
have authority to resolve the controversy. Any Party may give the other
Parties written notice of any dispute not resolved in the normal course of
business. Within ten (10) days after delivery of the notice, the receiving
Party shall submit to the others a written response. The notice and the
response shall include (a) a statement of the Party’s concerns and perspectives
on the issues in dispute, (b) a summary of supporting facts and circumstances
and (c) the identity of the representative who will represent such Party.
Within fifteen (15) days after delivery of the original notice, the
representatives of the Parties shall meet at a mutually acceptable time and
place, and thereafter as often as they reasonably deem necessary, to attempt to
resolve the dispute. All negotiations pursuant to this clause and clause (b)
below are confidential and shall be treated as compromise and settlement
negotiations for purposes of applicable rules of evidence.

          (b) Mediation. If a dispute is not resolved by discussion between or
among Parties, any Party may by notice to the other Party with whom such
dispute exists require mediation of the dispute, which notice shall identify
the names of no fewer than three (3) potential mediators. Each Party among whom
the dispute exists agrees to participate in mediation of the dispute and will
in good faith attempt to agree upon a mediator. If the Parties are unable to
agree upon a mediator within fifteen (15) days after such notice or if such
dispute shall not have been resolved by mediation within thirty (30) days after
such notice, then any such Party may file for arbitration pursuant to
subsection (c) below. All expenses of the mediator shall be equally shared by
the Parties among whom the dispute exists.

          (c) Binding Arbitration.

               (i) Any dispute arising out of or relating to this Agreement or the
breach, termination, or validity of the Agreement which has not been resolved
by mediation within thirty (30) days of the initiation of such procedure, or
which has not been resolved prior to the termination of mediation, shall be
resolved by arbitration in accordance with the Commercial Arbitration Rules of
the American Arbitration Association (“AAA”) in effect on the date of this
Agreement. If a party to a dispute fails to participate in mediation, the
others may initiate arbitration before expiration of the above period. If the
amount of the claim asserted by the

-23-

 

claimant in the arbitration exceeds $1,000,000, the Parties agree that the
American Arbitration Association Optional Procedures for Large, Complex
Commercial Disputes will be applied to the dispute.

               (ii) The AAA shall suggest a panel of arbitrators, each of whom shall be
knowledgeable with respect to the subject matter of the dispute. Arbitration
shall be before a sole arbitrator if the disputing Parties agree on the
selection of a sole arbitrator. If not, arbitration shall be before three
independent and impartial arbitrators, all of whom shall be appointed by the
American Arbitration Association in accordance with its rules.

               (iii) The place of arbitration shall be Houston, Texas.

               (iv) The arbitrator(s) are not empowered to award damages in excess of
compensatory damages.

               (v) The award rendered by the arbitrators shall be in writing and shall
include a statement of the factual bases and the legal conclusions relied upon
by the arbitrators in making such award. The arbitrators shall decide the
dispute in compliance with the applicable substantive law and consistent with
the provisions of the Agreement, including limits on damages. The award
rendered by the arbitrator(s) shall be final and binding, and judgment upon the
award may be entered by any court having jurisdiction thereof.

               (vi) All matters relating to the enforceability of the arbitration
provisions of this Agreement and any award rendered pursuant to this Agreement
shall be governed by the Federal Arbitration Act, 9 U.S.C. § 1-16. The
arbitrators shall apply the substantive law of the State of Texas, exclusive of
any conflict of law rules.

               (vii) Nothing in this Section 10.9 shall limit the rights of the Parties
to obtain provisional, ancillary or equitable relief from a court of competent
jurisdiction.

          (d) Expenses. Each Party shall pay its own expenses of arbitration and
the expenses of the arbitrators shall be equally shared; provided, however, if
in the opinion of the arbitrators any claim by any party hereunder or any
defense or objection thereto by the other party was unreasonable and not made
in good faith, the arbitrators may assess as part of the award, all or any part
of the arbitration expense (including without limitation reasonable attorneys
fees) of the other party and of the arbitrators against the party raising such
unreasonable claim, defense or objection. Nothing herein shall prevent the
Parties from settling the dispute by mutual agreement at any time.

     10.10 Waiver. Each Party waives any right that such Party may have to
commence any action in any court with respect to any dispute among the Parties
relating to or arising under this Agreement or the rights or obligations of any
Party hereunder, other than an action brought to enforce the arbitration
provisions of Section 10.9 hereof. The Parties agree that any such action
shall be brought (and venue for any such action shall be appropriate) in
Dallas, Texas.

     10.11 Descriptive Headings. The descriptive headings are inserted for
convenience of reference only and are not intended to be part of or to affect
the meaning or interpretation of this Agreement.

-24-

 

     10.12 Parties in Interest; No Third-Party Beneficiary. This Agreement
shall be binding upon and inure solely to the benefit of each Party hereto, and
nothing in this Agreement, express or implied, is intended to confer upon any
other person, including any party to a Financing Transaction, any rights or
remedies of any nature whatsoever under or by reason of this Agreement.

     10.13 Counterparts; Facsimile Signatures. This Agreement may be executed
in two or more counterparts, each of which shall be deemed to be an original,
but all of which shall constitute one and the same agreement. The Parties
hereto agree that signatures of the Parties and their duly authorized managers
and/or officers may be exchanged by facsimile transmission, and that such
signatures shall be binding to the same extent, and have the same force and
effect, as the exchange of original written signatures. The originals of such
signatures shall be sent to the other Parties hereto by overnight courier.

     10.14 Incorporation by Reference. Any and all Schedules, Exhibits,
annexes, statements, reports, certificates or other documents or instruments
referred to herein or attached hereto are incorporated herein by reference
hereto as though fully set forth at the point referred to in the Agreement.

     10.15 Public Announcements. Each of the Parties agree that, prior to the
making of any public announcement or any disclosure to any third party with
respect to the transactions contemplated by this Agreement, it will consult
with the other Parties hereto and shall either agree upon the text of a joint
announcement or obtain the others’ prior, written approval of an announcement
to be made solely on behalf of such Party. Any of the Parties may make such
disclosures or statements as it determines may be required by law, regulation,
or rule of any bona fide Governmental Authority (provided that before making
any such disclosure or statement, the Party making the disclosure shall discuss
the nature and manner of such disclosure with the other Parties).

     10.16 Confidentiality. Each Party acknowledges that it will be receiving
information that is non-public, confidential and proprietary in nature. Each
Party agrees for itself and its affiliates, representatives, employees and
agents to keep such information received from the other Party confidential and
not to disclose or use such information for any purpose other than with respect
to evaluating the transactions contemplated by this Agreement. Each Party
further agrees to keep confidential the terms and substance of this Agreement,
except for disclosure to such Party’s advisors or as may be required by
applicable laws, rules or regulations (including, without limitation, SEC and
NYSE rules and regulations).

     10.17 Certain Definitions. For the purposes of this Agreement, the
following terms shall have the meanings specified or referred to below whether
or not capitalized when used in this Agreement.

          (a) “Affiliate” of any Person shall mean any other Person that, directly
or indirectly, through one or more intermediaries, controls, is controlled by,
or is under direct or indirect common control with, such first Person. For
purposes of this definition, the term “control” (including the correlative
meanings of the terms “controls,” “controlled by,” and “under direct or
indirect control with”) as used with respect to any Person, shall mean the

-25-

 

possession, directly or indirectly, of the power to direct or cause the
direction of the management policies of such Person, whether through the
ownership of voting securities, by contract, or otherwise.

          (b) “Ancillary Documents” means all agreements, documents and instruments
to be executed by any of the Contributors in connection with this Agreement,
including without limitation, the Operating Agreement, the Transfer Restriction
Company and the Assignments.

          (c) “Assignments” means the assignments conveying the BDA Equity Interests
(in the form of Exhibit C-1) and the assignments conveying the Properties (in
the form of Exhibit C-2).

          (d) “Assumed Liabilities” means, collectively, the assumption by the
Company from each of the Contributors of the Liabilities set forth opposite
each Contributor’s name on Schedule 1.0 and the Ordinary Course Liabilities.

          (e) “BDA Controlled Group” means BDAO, BDAOG, any Affiliate of either
entity or any other organization that together with either entity is treated as
a single employer under Section 414 of the Code.

          (f) “BDA Operated Properties” has the meaning set forth in Section 2.5.

          (g) “BDA Properties” means the assets and properties to be contributed by
the BDA Contributors as set forth on Schedule 1.2.

          (h) “BDAO Working Capital” has the meaning set forth in Section 1.8(d).

          (i) “Benefit Arrangements” means each and all retirement, savings, bonus,
commission, deferred compensation, incentive compensation, holiday, vacation,
severance pay, stock option, stock purchase, performance, sick pay, sick leave,
disability, tuition refund, service award, company car, scholarship,
relocation, patent award, fringe benefit or other employee benefit plans, and
contracts, policies, practices or arrangements providing employee or executive
compensation benefits to employees, other than the Benefit Plans.

          (j) “Benefit Plans” means each and all “employee benefit plans” as defined
in Section 3(3) of ERISA, currently or at any time during the past six years
maintained or contributed to by the Controlled Group, including (i) any such
plans that are “employee welfare benefit plans” as defined in Section 3(1) of
ERISA, and (ii) any such plans that are “employee pension benefit plans” as
defined in Section 3(2) of ERISA, regardless of whether such Benefit Plans are
excluded from ERISA coverage by Section 4 of ERISA.

          (k) “Class A Units” means the Class A Units of the Company as provided in
the Operating Agreement.

          (l) “Class B Units” means the Class B Units of the Company as provided in
the Operating Agreement.

          (m) “Closing” has the meaning set forth in Section 1.6.

-26-

 

          (n) “Closing Date” has the meaning set forth in Section 1.6.

          (o) “Code” means the Internal Revenue Code of 1986, as amended.

          (p) “Comstock Credit Facility” means the bank credit facility evidenced by
the Amended & Restated Credit Agreement dated as of February 25, 2004 by and
among Comstock Resources, Bank of Montreal, as agent, and the lenders party
thereto.

          (q) “Comstock Properties” means the assets and properties to be
contributed by Comstock Offshore as set forth on Schedule 1.1.

          (r) “Contributions” means collectively the BDA Equity Contributions, the
BDA Property Contributions and the Comstock Contribution.

          (s) “Contributor” means each of the BDA Contributors and Comstock
Offshore.

          (t) “Distributee” has the meaning set forth in Section 1.8(e).

          (u) “Effective Time” means (i) 7:00 a.m. (C.D.T.) on July 1, 2004 with
respect to (1) the transfer of interests in crude oil and (2) the transfer of
the BDA Equity Interests, and (ii) 9:00 a.m. (C.D.T.) on July 1, 2004 with
respect to the transfer of interests in natural gas.

          (v) “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended.

          (w) “Exploration Agreement” means the Exploration Agreement dated as of
July 31, 2001, among Comstock Resources, Comstock Offshore, BDAR, BDAO, Laufer
and Blackie.

          (x) “Financing Transaction” has the meaning set forth in the Operating
Agreement.

          (y) “GAAP” means generally accepted United States accounting principles,
consistently applied.

          (z) “Good and Marketable Title” means (1) with respect to the BDA
Contributors, such title that: (i) is deducible of record (from the records of
the applicable parish or county or (A) in the case of federal leases, from the
records of the applicable office of the Minerals Management Service or Bureau
of Land Management, and (B) in the case of state leases, from the records of
the applicable state land office) or is assignable to the BDA Contributors out
of an interest of record (as so defined) by reason of the performance by the
BDA Contributors of all operations required to earn an enforceable right to
such assignment; (ii) entitles the BDA Contributors to receive not less than
the interest set forth on Schedule 1.2 with respect to each proved property
evaluated therein under the caption “Net Revenue Interest” or “NRI” without
reduction during the life of such property except as stated on Schedule 1.2;
(iii) obligates the BDA Contributors to pay costs and expenses relating to each
such proved

-27-

 

property in an amount not greater than the interest set forth under the
caption “Working Interest” or “WI” on Schedule 1.2 with respect to such
property without increase over the life of such property except as shown on
Schedule 1.2; and (iv) does not restrict the ability of the BDA Contributors to
utilize the properties as currently intended; except in each case where
deficiencies referenced in clauses (i) through (iv) would reasonably be
expected to have a Material Adverse Effect on the value of such properties; and
(2) with respect to Comstock Offshore, such title that: (w) is deducible of
record (from the records of the applicable parish or county or (A) in the case
of federal leases, from the records of the applicable office of the Minerals
Management Service or Bureau of Land Management, and (B) in the case of state
leases, from the records of the applicable state land office) or is assignable
to Comstock Offshore out of an interest of record (as so defined) by reason of
the performance by Comstock Offshore of all operations required to earn an
enforceable right to such assignment; (x) entitles Comstock Offshore to receive
not less than the interest set forth on Schedule 1.1 with respect to each
proved property evaluated therein under the caption “Net Revenue Interest” or
“NRI” without reduction during the life of such property except as stated on
Schedule 1.1; (y) obligates Comstock Offshore to pay costs and expenses
relating to each such proved property in an amount not greater than the
interest set forth under the caption “Working Interest” or “WI” on Schedule 1.1
with respect to such property without increase over the life of such property
except as shown on Schedule 1.1; and (z) does not restrict the ability of the
Comstock Offshore to utilize the properties as currently intended; except in
each case where deficiencies referenced in clauses (w) through (z) would
reasonably be expected to have a Material Adverse Effect on the value of such
properties.

          (aa) “Governmental Authority” means the governments of the United States
and any state or county, city, and political subdivisions, and any agency,
department, board, or other instrumentality thereof.

          (bb) “Indenture” means the Indenture by and among Comstock Resources, the
guarantors named therein, and the Bank of New York Trust Company, N.A.,
trustee, dated as of February 25, 2004, with respect to Comstock Resources’
6-7/8% Senior Notes due 2012, as amended and supplemented from time to time.

          (cc) “Knowledge” An individual shall be deemed to have “Knowledge” of a
particular fact or other matter if the individual has current, actual knowledge
of such fact or other matter. An entity shall be deemed to have “Knowledge” of
a particular fact or other matter if any general partner, manager, director or
executive officer of such entity or such entity’s general partner or any member
(as applicable) has current, actual knowledge of such fact or other matter.

          (dd) “Liability” means any debt, obligation, duty or liability of any
nature (including any undisclosed, unliquidated, unsecured, unmatured,
unaccrued, unasserted, contingent, conditional or secondary liability),
regardless of whether such debt, obligation, duty or liability would be
required to be disclosed on a balance sheet prepared in accordance with GAAP.

          (ee) “Liens” means any mortgage, pledge, hypothecation, claim, assignment,
encumbrance lien, charge or preference, or other security interest of any kind
or nature whatsoever.

-28-

 

          (ff) “Losses” means claims, actions, demands, penalties, damages, costs
and expenses, including without limitation, reasonable attorneys’ fees.

          (gg) “Material Adverse Effect” means (1) with respect to any BDA
Contributor, a material adverse effect (either individually or in the
aggregate) on the condition (financial or otherwise), liabilities, business,
assets, or results of operations of the BDA Properties or the applicable BDA
Contributor, other than any effects arising out of or resulting from changes
affecting the economy or financial conditions generally or from the
transactions contemplated hereby, and (2) with respect to Comstock Offshore, a
material adverse effect (either individually or in the aggregate) on the
condition (financial or otherwise), liabilities, business, assets, or results
of operations of the Comstock Properties or Comstock Offshore, other than any
effects arising out of or resulting from changes affecting the economy or
financial conditions generally or from the transactions contemplated hereby.

          (hh) “Operating Agreement” means the Operating Agreement of the Company
dated as of July 1, 2004 and in the form of Exhibit A attached hereto.

          (ii) “Ordinary Course Liabilities” means all liabilities and obligations
that arise in the ordinary course with respect to ownership of the Properties
that accrue from and after the Effective Time, including without limitation,
the obligation to plug and abandon wells and remove production facilities.

          (jj) “Person” means any natural person, corporation, joint venture,
partnership, limited partnership, limited liability company, trust, estate,
business trust, association, Governmental Authority, or any other juristic
entity.

          (kk) “Pre-Effective Period” means all Tax periods ending on or before the
Effective Time and the portion of any Straddle Period ending on the Effective
Time.

          (ll) “Properties” means collectively, the BDA Properties and the Comstock
Properties.

          (mm) “Rule 144” means Rule 144, promulgated under the authority of the
Securities Act, as amended as of the date hereof.

          (nn) “Securities Act” means the Securities Act of 1933, as amended as of
the date hereof.

          (oo) “Straddle Period” means all Tax periods beginning on or before and
ending after the Effective Time.

          (pp) “Tax” or “Taxes” means any federal, foreign, state, county and local
income, gross receipts, franchise, estimated, alternative minimum, add-on
minimum, sales, use, transfer, real property gains, registration, value added,
excise, natural resources, severance, stamp, occupation, premium, windfall
profit, environmental, customs, duties, real property, personal property,
capital stock, social security, unemployment, disability, payroll, license,
employee or other withholding, or other tax, of any kind whatsoever, including
any interest, penalties or additions to tax or additional amounts in respect of
the foregoing; the foregoing shall

-29-

 

include any transferee or secondary liability for a Tax and any liability
assumed by agreement or arising as a result of being (or ceasing to be) a
member of any affiliated group (whether federal, state, or local) or being
included (or required to be included) in any Tax Return relating thereto.

          (qq) “Tax Return” means any return, declaration, report, claim for refund,
information return or other document (including any related or supporting
schedule, statement or information) filed or required to be filed in connection
with the determination, assessment or collection of any Tax of any party or the
administration of any laws, regulations or administrative requirements relating
to any Tax.

          (rr) “Transfer Restriction Agreement” means the Transfer Restriction
Agreement among the Company and the members of the Company in the form of
Exhibit B attached hereto.

          (ss) “Units” means collectively the Class A Units and the Class B Units.

-30-

 

     IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be
executed on its behalf as of the date first above written.

	 	 	 	 	 	 	 
	 	 	THE COMPANY:
	 
	 	 	 	 	 	 
	 	 	BOIS D’ARC ENERGY, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 /s/ GARY W. BLACKIE	 	 	 
	

	 	 	
	 	 
	

	 	Name:	 Gary W. Blackie		 	 
	

	 	 	
	 	 
	

	 	Title:	 President		 	 
	

	 	 	
	 	 
	 
	 	 	 	 	 	 
	 	 	THE NEW SUBSIDIARY:
	 
	 	 	 	 	 	 
	 	 	BOIS D’ARC PROPERTIES, LP
	 
	 	 	 	 	 	 
	

	 	By:	Bois d’Arc Holdings, LLC,	 
	

	 	 	its general partner	 
	 
	 	 	 	 	 	 
	 

	 	 	By:	 /s/ WAYNE L. LAUFER	 	 
	

	 	 	 	
	 	 
	

	 	 	Name:	 Wayne L. Laufer	 	 
	

	 	 	 	
	 	 
	

	 	 	Title:	 CEO of Bois d’Arc
Energy, LLC - Sole Member	 	 
	

	 	 	 	
	 	 
	 
	 	 	 	 	 	 
	 	 	BDA CONTRIBUTORS:
	 
	 	 	 	 	 	 
	 	 	BOIS D’ARC RESOURCES, LTD.
	 
	 	 	 	 	 	 
	

	 	By:
	Bois d’Arc Interests LLC,	 
	

	 	 	its general partner	 
	 
	 	 	 	 	 	 
	

	 	 		 /s/ WAYNE L. LAUFER	 	 
	

	 	 	 	
	 	 
	

	 	 	 	Wayne
L. Laufer, Manager
	 	 
	 
	 	 	 	 	 	 
	

	 	 		 /s/ GARY W. BLACKIE	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Gary
W. Blackie, Manager
	 	 
	 
	 	 	 	 	 	 
	 
	 	 /s/ WAYNE L. LAUFER	 	 	 	 
	 	 	
 	 	 
	 	 	WAYNE L. LAUFER	 	 
	 
	 	 	 	 	 	 
	 
	 	 /s/ GARY W. BLACKIE	 	 	 	 
	 	 	
 	 	 
	 	 	GARY W. BLACKIE	 	 

-31-

 

	 	 	 	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	COMSTOCK OFFSHORE, LLC
	 
	 	 	 	 	 	 
	

	 	 	 		 	 /s/ ROLAND O. BURNS
	

	 	 	 	 	 	
 
	

	 	 	 	Name:	 	 Roland O. Burns
	

	 	 	 	 	 	
 
	

	 	 	 	Title:	 	 Senior Vice President
	

	 	 	 	 	 	
 

 

	 	 	 	 	 	 	 
	 	 	BOIS D’ARC RESOURCES, LTD.
	 
	 	 	 	 	 	 
	 	 	By:	 	Bois d’Arc Interests, LLC,
	 	 	 	 	General Partner
	 
	

	 	 	 	By:	 	/s/ WAYNE L. LAUFER
	

	 	 	 	 	 	
 
	

	 	 	 	 	 	Wayne L. Laufer, Manager
	 
	

	 	 	 	By:	 	/s/ GARY W. BLACKIE
	

	 	 	 	 	 	
 
	

	 	 	 	 	 	Gary W. Blackie, Manager

 

	 	 	 
	

	 	/s/ M. JAY ALLISON
	

	 	

	

	 	M. JAY ALLISON

 

	 	 	 
	

	 	/s/ ROLAND O. BURNS

	

	 	ROLAND O. BURNS

 

	 	 	 
	

	 	/s/ WAYNE L. LAUFER

	

	 	WAYNE L. LAUFER

 

	 	 	 
	

	 	/s/ GAYLE LAUFER

	

	 	GAYLE LAUFER

 

	 	 	 
	

	 	/s/ GARY W. BLACKIE

	

	 	GARY W. BLACKIE

 

	 	 	 	 	 	 	 
	 	 	HARO INVESTMENTS LLC
	 
	 	 	 	 	 	 
	
	 	 	 	By:	 	/s/ WAYNE L. LAUFER 
	

	 	 	 	 	 	
 
	

	 	 	 	Its:	 	Sole Member
	
	 	 	 	 	 	
 
	 	 	 
	 	 	BETS WEST INTERESTS, L.P.
	 
	 	 	 	 	 	 
	
	 	 	 		 	/s/ SALLY L. BLACKIE
	
	 	 	 	 	 	
 
	
	 	 	 	Title:	 	President
	
	 	 	 	 	 	
 
	 	 	 
	 	 	CADE OIL INVESTMENTS,
INC.
	 
	 	 	 	 	 	 
	
	 	 	 		 	/s/ WILLIAM W. CADE
	
	 	 	 	 	 	
 
	
	 	 	 	Title:	 	President
	
	 	 	 	 	 	
 
	 
	 	 	 	 	 	 

 

	 	 	 	 	 	 	 
	
	 	 	 		 	/s/ GEORGE FENTON
	
	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	
	 	 	 		 	/s/ JOCELYN FENTON
	
	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	
	 	 	 		 	/s/ CHIALING YOUNG
	
	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	
	 	 	 		 	/s/ D. MICHAEL HARRIS
	
	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	
	 	 	 		 	/s/ WILLIAM HOLMAN
	
	 	 	 	 	 	
 
	 	 	 

 

	 	 	 	 	 	 	 
	 	 	JAY PETROLEUM OF LA, LLC
	 
	 	 	 	 	 	 
	
	 	 	 		 	/s/ WILLIAM C. LANGFORD
	
	 	 	 	 	 	
 
	
	 	 	 	Title:	 	Managing Partner
	
	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	
	 	 	 		 	/s/ STEVE KNECHT
	
	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	
	 	 	 		 	/s/ GREGORY T. MARTIN
	
	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	
	 	 	 		 	/s/ KERRY W. STEIN
	
	 	 	 	 	 	
 
	 
	 	 	 	 	 	 
	 	 	 
	 	 	PEGASUS ENERGY, LLC
	 
	 	 	 	 	 	 
	
	 	 	 		 	/s/ NICHOLAS J. ARTHUR
	
	 	 	 	 	 	
 
	
	 	 	 	Title:	 	Manager

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]