Document:

exv10w7

 

Exhibit 10.7

TRANSFER RESTRICTION AGREEMENT

OF BOIS D’ARC ENERGY, LLC

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page

	I.
	 	DEFINITIONS	 	 	 	 	1	 
	 
	 	Section 1.1.	 	Definitions	 	 	1	 
	II.	 	RESTRICTIONS ON TRANSFER	 	 	3	 
	 
	 	Section 2.1.	 	General Restriction on Transfer	 	 	3	 
	 
	 	Section 2.2.	 	Securities Laws Restrictions	 	 	3	 
	 
	 	Section 2.3.	 	Continuation of Restrictions After Transfer	 	 	3	 
	 
	 	Section 2.4.	 	Joint Transfer of Class A Units and Class B Units	 	 	3	 
	III.	 	PERMITTED TRANSFERS	 	 	4	 
	 
	 	Section 3.1.	 	Permitted Affiliate Transfers	 	 	4	 
	 
	 	Section 3.2.	 	Permitted Familial Transfers	 	 	4	 
	 
	 	Section 3.3.	 	Pledges and Security Interests	 	 	4	 
	IV.	 	PURCHASE OPTIONS	 	 	4	 
	 
	 	Section 4.1.	 	Purchase Events	 	 	4	 
	 
	 	Section 4.2.	 	Notice of Sale	 	 	6	 
	 
	 	Section 4.3.	 	Purchase Option	 	 	6	 
	 
	 	Section 4.4.	 	Exercise of Purchase Option	 	 	6	 
	 
	 	Section 4.5.	 	Allocation of Interest Among Remaining Holders	 	 	6	 
	 
	 	Section 4.6.	 	Closing of Sale	 	 	6	 
	 
	 	Section 4.7.	 	Failure to Exercise Option	 	 	7	 
	 
	 	Section 4.8.	 	Purchase Price	 	 	7	 
	 
	 	Section 4.9.	 	Procedure for Appraisal and Determination of Fair Market Value	 	 	7	 
	 
	 	Section 4.10.	 	Effect on Seller’s Interest	 	 	8	 
	 
	 	Section 4.11.	 	Applicability to Transferees	 	 	8	 
	V.	 	OTHER PROVISIONS APPLICABLE TO TRANSFERS	 	 	8	 
	 
	 	Section 5.1.	 	Waiver of Rights to Object	 	 	8	 
	VI.
	 	NOTICES	 	 	 	 	8	 
	 
	 	Section 6.1.	 	Methods of Giving Notice	 	 	8	 
	 
	 	Section 6.2.	 	Waiver of Notice	 	 	8	 

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TABLE OF CONTENTS

(CONTINUED)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page

	VII.	 	MISCELLANEOUS	 	 	8	 
	 
	 	Section 7.1.	 	Execution in Counterparts	 	 	8	 
	 
	 	Section 7.2.	 	Further Assurances	 	 	9	 
	 
	 	Section 7.3.	 	Titles and Captions	 	 	9	 
	 
	 	Section 7.4.	 	Number and Gender of Pronouns	 	 	9	 
	 
	 	Section 7.5.	 	Entire Agreement	 	 	9	 
	 
	 	Section 7.6.	 	Amendment	 	 	9	 
	 
	 	Section 7.7.	 	Agreement Binding	 	 	9	 
	 
	 	Section 7.8.	 	Waiver	 	 	9	 
	 
	 	Section 7.9.	 	Remedies	 	 	9	 
	 
	 	Section 7.10.	 	GOVERNING LAW	 	 	10	 
	 
	 	Section 7.11.	 	DISPUTE RESOLUTION	 	 	10	 
	 
	 	Section 7.12.	 	WAIVER	 	 	12	 
	 
	 	Section 7.13.	 	U.S. Dollars	 	 	13	 

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TRANSFER RESTRICTION AGREEMENT

OF BOIS D’ARC ENERGY, LLC

     This Transfer Restriction Agreement (the “Agreement”) dated as of July 16,
2004 (the “Effective Date”), is entered into by and among Bois d’Arc Energy,
LLC, a Nevada limited liability company (the “Company”), and each of the
Persons executing this Agreement other than the Company as evidenced on the
signature pages hereto. Each such Person is a “Holder” and, collectively, they
are sometimes referred to as the “Holders.”

W I T N E S S E T H

     WHEREAS, the Holders are the members of the Company;

     WHEREAS, the Operating Agreement of the Company (the “Operating
Agreement”) which has been executed and delivered by the Holders
contemporaneously with this Agreement, contemplates that the Holders, in their
capacity as members of the Company, will become parties to this Agreement
providing for certain restrictions upon the transfer of, and certain rights to
purchase and obligations to sell, the ownership interests held by the Holders
in the Company;

     NOW, THEREFORE, in consideration of the mutual covenants set forth herein,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree upon the terms
and conditions set forth herein:

I. DEFINITIONS

     Section 1.1. Definitions. The following terms shall have the following
meanings when used in this Agreement:

     “AAA” means the American Arbitration Association and the office thereof
located in Dallas, Texas.

     “Acceptance Notice” shall mean a notice by a Remaining Holder to a Selling
Holder that the Remaining Holder is exercising its right to purchase Units of
the Selling Holder pursuant to Article IV.

     “Affiliate” shall mean, with respect to any Person, (i) any other Person
or Group of Persons beneficially owning eighty percent (80%) or more of the
outstanding equity ownership interests of such Person, (ii) any other Person
eighty percent (80%) or more of the outstanding equity ownership interests of
which are beneficially owned by such Person or (iii) any other Person eighty
percent (80%) or more of the outstanding equity ownership interests of which
are beneficially owned by a third Person or Group of Persons who beneficially
own eighty percent (80%) or more of the outstanding voting securities of such
Person.

     “Affiliate Transfer” shall have the meaning set forth in Section 3.1 of
the Agreement.

     “Agreement” shall mean this Transfer Restriction Agreement.

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     “Beneficially own,” “beneficially owned” and “beneficial ownership” shall
mean (i) voting power which includes the power to vote, or to direct the voting
of, a security and (ii) investment power, which includes the power to dispose
or to direct the disposition of, a security.

     “Board of Managers” shall have the meaning set forth in the Operating
Agreement.

     “Business Day” shall mean any day other than Saturday or Sunday or any
other day upon which banks in Dallas, Texas are permitted or required by law to
close.

     “Company” shall have the meaning set forth in the Preamble to this
Agreement.

     “Effective Date” shall have the meaning set forth in the preamble to this
Agreement.

     “Electing Purchasers” shall mean the Remaining Holders who elect to
participate in the purchase of a Selling Holder’s Units pursuant to Article IV.

     “Familial Transfer” shall have the meaning set forth in Section 3.2 of
this Agreement.

     “Family Members” shall mean as to any individual only such individual’s
spouse, son(s), daughter(s), grandchildren, mother, father, aunt(s), uncle(s),
niece(s), nephew(s), spouses of children, or siblings and shall include any
Person so related by adoption if adopted before age eighteen (18).

     “Group of Persons” shall mean not more than five (5) Persons.

     “Holder” or “Holders” shall mean the Persons executing this Agreement as
evidenced by the signature pages hereto and any assignee of all or any part of
their respective interests in the Company.

     “Member” or “Members” shall mean the members of the Company and any
assignee of all or any part of their respective interests in the Company who is
admitted to the Company as a member in conformity with the provisions of the
Operating Agreement.

     “Offered Interest” shall mean a Selling Holder’s Units that are subject to
purchase under Article IV.

     “Operating Agreement” shall have the meaning set forth in the Preamble to
this Agreement.

     “Option Period” shall mean the ninety (90) day period specified in Section
4.3.

     “Person” shall mean an individual person, partnership, limited
partnership, limited liability company, trust, corporation or other entity or
organization.

     “Pro Rata Portion” shall mean a fraction, the numerator of which is the
Proportionate Share of the Electing Purchaser and the denominator of which is
the total of the Proportionate Shares of all the Electing Purchasers.

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     “Proportionate Share” shall mean a fraction of numerator of which is the
number of Class B Units held by a Remaining Holder and the denominator of which
is the total number of Class B Units held by all Remaining Holders.

     “Purchase Event” shall have the meaning set forth in Section 4.1 hereof.

     “Purchase Event Notice” shall have the meaning set forth in Section 4.2
hereof.

     “Remaining Holders” shall mean all Holders of Class B Units other than the
Selling Holder.

     “Selling Holder” shall mean a Holder whose Units are the subject of a
purchase option under Article IV.

     “Third Appraiser” shall have the meaning set forth in Section 4.9 hereof.

     “Units” shall mean Class A Units, Class B Units and/or Class C Units (as
defined in the Operating Agreement).

II. RESTRICTIONS ON TRANSFER

     Section 2.1. General Restriction on Transfer. Except as expressly
provided to the contrary in this Agreement, no Holder may assign, sell or
otherwise transfer by operation of law or otherwise, any of its right, title or
interest or any portion thereof of such Holder’s Units. Any purported or
attempted assignment, sale or transfer of all or any part of a Holder’s Units
made in violation of this Agreement shall be null and void.

     Section 2.2. Securities Laws Restrictions. Notwithstanding any other
provision of this Agreement, no transfer of Units may be made if the transfer
would violate any federal or state securities laws. The Company may require
evidence satisfactory to it in its reasonable discretion of compliance with
such laws.

     Section 2.3. Continuation of Restrictions After Transfer. In the event of
any permitted transfer of Units pursuant to this Agreement, the interest so
transferred shall remain subject to all terms and provisions of this Agreement,
including this Section 2.3, and the transferee shall be deemed, by accepting
the interest so transferred, to have assumed all the liabilities and
unperformed obligations, under this Agreement or otherwise, which are
appurtenant to the interest so transferred; shall hold such interest subject to
all unperformed obligations of the transferor Holder; and shall agree in
writing to the foregoing if requested by the Company or any Holder.

     Section 2.4. Joint Transfer of Class A Units and Class B Units. Except as
provided in Section 17.7 of the Operating Agreement, and notwithstanding any
other provision contained herein to the contrary, for each Class B Unit
transferred to a transferee one Class A Unit must be transferred to the same
transferee, and for each Class A Unit transferred to a transferee one Class B
Unit must be transferred to the same transferee.

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III. PERMITTED TRANSFERS

     Section 3.1. Permitted Affiliate Transfers. Notwithstanding Section 2.1
hereof, but subject to Sections 2.2, 2.3 and 2.4 and Article IV hereof, without
the consent of the other Holders any Holder may transfer any or all of its
Units to any Affiliate of such Holder. A transfer permitted under this Section
3.1 is referred to herein as an “Affiliate Transfer.”

     Section 3.2. Permitted Familial Transfers. Notwithstanding Section 2.1
hereof, but subject to Sections 2.2, 2.3 and 2.4 and Article IV hereof, without
the consent of the other Holders any Holder may transfer any or all of its
Units to:

     (i) any Family Member of such Holder or of a Person who is the
beneficial owner of a majority of the equity ownership interests of
such Holder;

     (ii) any partnership, limited partnership, limited liability
company, corporation or other entity or organization eighty percent
(80%) or more of the equity ownership interests of which are
beneficially owned and controlled, collectively, by the Holder
and/or one or more Family Member(s) of such Holder or of a Person
who is the beneficial owner of a majority of the equity ownership
interests of such Holder; or

     (iii) any trust, if the Holder and/or one or more Family
Members of such Holder or of a Person who is the beneficial owner
of a majority of the equity ownership interests in such Holder are
collectively the beneficiaries of eighty percent (80%) or more of
the assets of such trust.

The provisions of this Section 3.2 shall not be applicable to transfers that
are also subject to Section 4.1(x) hereof. A transfer permitted under this
Section 3.2 is referred to herein as a “Familial Transfer.”

     Section 3.3. Pledges and Security Interests. Notwithstanding Section 2.1
hereof, but subject to Sections 2.2, 2.3 and Article IV hereof, without the
consent of the other Holders Comstock Offshore, LLC may pledge or grant a
security interest in its Units and all rights relating thereto to Bank of
Montreal as collateral agent under the Amended and Restated Credit Agreement
dated as of February 25, 2004, among Comstock Resources, Inc., Bank of Montreal
and the lenders party thereto.

IV. PURCHASE OPTIONS

     Section 4.1. Purchase Events. In the event that any of the following
(each a “Purchase Event”) shall have occurred to or in respect of a Selling
Holder, the Remaining Holders shall have the right upon the terms set forth in
this Article IV to purchase all of the Units of the Selling Holder (or, in the
case of a Purchase Event pursuant to Section 4.1(x) below, such portion of the
Selling Holder’s Units as is assigned, sold, or otherwise transferred as
described in Section 4.1(x)):

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     (i) the Selling Holder shall make an assignment for the
benefit of creditors, commence (as the debtor) a case in
bankruptcy, or commence (as the debtor) any proceeding under any
other insolvency law; or

     (ii) a case in bankruptcy or any other proceeding under any
other insolvency law is commenced against the Selling Holder (as
the debtor) and is consented to by the Selling Holder or remains
undismissed for sixty (60) days, or the Selling Holder consents to
or admits the material allegations against it in any such case or
proceeding; or

     (iii) a trustee, receiver, agent, liquidator or sequestrator
(however named) is appointed with respect to the Selling Holder (as
the debtor) and is consented to by the Selling Holder or remains
undismissed for sixty (60) days, or the Selling Holder consents to
or admits the material allegations against it in any such case or
proceeding; or

     (iv) a trustee, receiver, agent, liquidator or sequestrator
(however named) is appointed or authorized to take charge of all or
substantially all of the property of the Selling Holder for the
purpose of enforcing a lien against such property or for the
purpose of general administration of such property for the benefit
of creditors and such appointment or authorization is consented to
by the Selling Holder or is not overturned within ninety (90) days;
or

     (v) the Selling Holder shall suffer any writ of attachment or
execution or any similar process to be issued or levied against the
interests of the Selling Holder in its Units which is not released,
stayed, bonded or vacated within ninety (90) days after its issue
or levy; or

     (vi) the Selling Holder shall fail to perform any of its
obligations under this Agreement or the Operating Agreement in a
material respect and such failure continues for a period of at
least thirty (30) days after written notice thereof from the
Company or any Holder; or

     (vii) any attempted assignment or hypothecation by the Selling
Holder of any of its rights or interest in the Company, the
Operating Agreement or this Agreement, except as expressly
permitted by this Agreement; or

     (viii) the Selling Holder shall commence to dissolve or
wind-up and liquidate the assets of its business otherwise than in
connection with a transfer permitted under Section 3.1 or 3.2; or

     (ix) the Selling Holder shall become deceased or be declared
legally incompetent to administer his affairs and either an
executor, administrator or guardian of such Selling Holder’s estate
has not been appointed within ninety (90) days of such event or
such Selling Holder’s interest is not transferred pursuant to a
Familial Transfer within eighteen (18) months of such event; or

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     (x) as a result of a divorce, separation or other domestic
relations or family law proceeding an order is entered purporting
to assign, transfer or divide ownership of, or to require the
Selling Holder to assign, sell or otherwise transfer, all or any
interest in Selling Holder’s Units, and either such order is not
overturned within one hundred twenty (120) days or Selling Holder
has not otherwise obtained sole ownership of the Units within such
period; or

     (xi) the Selling Holder or any Affiliate thereof, by entry of
a final non-appealable judgment, order or decree of a court or
governmental agency having proper jurisdiction, shall be declared
guilty of a felony involving moral turpitude, fraud or wrongdoing
in connection with any business activity.

     Section 4.2. Notice of Sale. As soon as reasonably practicable following
the occurrence of a Purchase Event, the Selling Holder shall give written
notice (the “Purchase Event Notice”) of the Purchase Event to all Remaining
Holders. If the Selling Holder shall fail or refuse to give the Purchase Event
Notice, the Company may, but shall have no obligation to, give the Purchase
Event Notice.

     Section 4.3. Purchase Option. During the ninety (90) day period following
receipt of the Purchase Event Notice, the Remaining Holders may elect to
exercise their right to purchase the Selling Holder’s Units (an “Offered
Interest”) under this Section 4.3 (an “Option Period”). Then upon the
expiration of the Option Period such right to purchase the Selling Holder’s
Units hereunder shall terminate, unless and until another Purchase Event shall
occur with respect to the Selling Holder at which time the provisions of this
Article IV shall again be applicable to such Selling Holder’s Units.

     Section 4.4. Exercise of Purchase Option. The Remaining Holders shall
give written notice to the Selling Holder prior to the expiration of the Option
Period (an “Acceptance Notice”), if they desire to exercise their option to
purchase the Offered Interest.

     Section 4.5. Allocation of Interest Among Remaining Holders. The
Acceptance Notice shall specify the portion of the Offered Interest that each
Remaining Holder who elects to participate in the purchase shall purchase. The
Remaining Holders collectively, may not purchase less than all of the Offered
Interest. If the Remaining Holders cannot agree upon the portion of the
Offered Interest that each shall purchase, each Remaining Holder may send a
separate Acceptance Notice agreeing to purchase its Proportionate Share of the
Offered Interest, and if a Remaining Holder does not send an Acceptance Notice,
each Remaining Holder that sends an Acceptance Notice shall purchase its Pro
Rata Portion of the Offered Interest.

     Section 4.6. Closing of Sale. The closing of the sale of the Offered
Interest to the Electing Purchasers shall take place at the principal place of
business of the Company thirty (30) days after the end of (i) the Option Period
(or, if such day is not a Business Day, the following Business Day), or (ii)
such longer period as may be required to complete the appraisal under Section
4.9, or at such other place and time as agreed to by the Selling Holder and the
Electing Purchaser.

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     Section 4.7. Failure to Exercise Option. If the purchase option under
this Article IV is not exercised within the Option Period as to all of the
Offered Interest, or if the Electing Purchasers default on their obligation to
purchase all of the Offered Interest, the right to purchase the Selling
Holder’s Units shall terminate unless and until another Purchase Event shall
occur with respect to the Selling Holder at which time the provisions of this
Article IV shall again be applicable to the Selling Holder’s Units.

     Section 4.8. Purchase Price. The amount of the purchase price for the
Selling Holder’s Units (unless agreed upon by the Selling Holder and the
Electing Purchasers) shall be determined in accordance with Section 4.9 hereof.

     Section 4.9. Procedure for Appraisal and Determination of Fair Market
Value. Unless the Electing Purchasers and Selling Holder shall mutually agree
upon the value for the Offered Interest, the value of the Offered Interest
shall be determined by appraisal hereunder. The appraised value of the Offered
Interest shall be determined within thirty (30) days after selection, by a
single independent appraiser selected by agreement between the Electing
Purchasers and Selling Holder (or its estate or representative) and such
appraiser in turn may rely on other experts. If the Electing Purchasers and
Selling Holder (or its estate or representative) cannot agree on a single
independent appraiser within thirty (30) days after the delivery of the
Acceptance Notice by the Electing Purchasers to the Selling Holder, then the
Electing Purchasers, as a group, and the Selling Holder (or its estate or
representative) shall each designate an independent appraiser, which appraisers
shall meet within ten (10) days after their designation and proceed to
determine the value of the Offered Interest within thirty (30) days of such
initial meeting. If, during such thirty (30) day period, the two appraisers
cannot reach agreement on the value of the Offered Interest, then, if the
higher appraisal does not equal or exceed 105% of the lower appraisal, the
arithmetic average of the appraisals designated by the appraisers shall be
deemed to be the value of the Offered Interest; provided, however, that if the
higher appraisal exceeds 105% of the lower appraisal, then the appraisers shall
jointly appoint a third appraiser (the “Third Appraiser”) within ten (10) days
after the expiration of such thirty (30) day period, whereupon the appraisal
that is neither the highest nor the lowest of the three (3) appraisals shall be
deemed to be the value of the Offered Interest and be binding and conclusive on
the parties hereto. If any appraiser shall fail, refuse or become unable to
act, a new appraiser shall be appointed in his place following the same method
as was originally followed with respect to the appraiser to be replaced. If
the Electing Purchasers or the Selling Holder (or its estate or representative)
shall fail to designate an appraiser, the appraiser designated by the other
party shall act as the sole appraiser. If a single independent appraiser is
selected by agreement between the Electing Purchasers, as a group, and the
Selling Holder (or its estate or representative) or if only one appraiser is
designated, the fees and expenses of such appraiser shall be borne equally by
such parties; if the Electing Purchasers, as a group, and the Selling Holder
(or its estate or representative) each designate appraisers, the fees and
expenses of each such designated appraiser shall be borne by the party
designating same; and if a Third Appraiser is designated, the fees and expenses
of such Third Appraiser shall be borne equally by the Electing Purchasers and
the Selling Holder (or its estate or representative). Any appraiser designated
to serve in accordance with this Section 4.9 shall be independent of the party
designating such appraiser. The determination of the value of the Offered
Interest hereunder shall be conclusive on all parties. At any time during or
following the determination of the value of the Offered Interest by any
appraiser, the Electing Purchasers may elect to terminate their

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exercise of the option to purchase the Offered Interest, but in that case,
the Electing Purchasers shall pay the fees and expenses of the appraiser
selected by the Selling Holder and Third Appraiser, as well as its own
appraiser.

     Section 4.10. Effect on Seller’s Interest. Without limiting the
generality of any other provision of this Agreement, upon the sale of the
Offered Interest under this Article IV, the Selling Holder, without further
action, will have no rights in the Company or against the Company or any Member
other than the right to receive payment for the Offered Interest in accordance
with this Article.

     Section 4.11. Applicability to Transferees. The rights of the Remaining
Holders under this Article IV shall not be affected or diminished by any
assignment, sale or transfer of Units effected in connection with any Purchase
Event or any order purporting to effect or to require any such assignment, sale
or transfer, and any such Units shall remain subject to the provisions of this
Agreement irrespective of any such assignment, sale or transfer, whether or not
completed, and the assignee, purchaser or transferee shall take subject to the
provisions of this Agreement and shall be bound thereby to the same extent as
the Selling Holder.

V. OTHER PROVISIONS APPLICABLE TO TRANSFERS

     Section 5.1. Waiver of Rights to Object. All Holders acknowledge that the
methods provided for in this Agreement for determining the price of an Offered
Interest or Units are fair as to dates used, notices, terms and in all other
respects, and are administratively and in substance superior to other methods.
Each Holder waives any right that it may have to use any other method to
determine the value of any Offered Interest or Units in connection with this
Agreement.

VI. NOTICES

     Section 6.1. Methods of Giving Notice. Whenever any notice is required to
be given to any Holder under the provisions of any applicable law or this
Agreement, it shall be given in writing and delivered personally or delivered
by facsimile communication to such Holder at such address (and at such member
facsimile) as appears on the books of the Company, and such notice shall be
deemed to be given at the time the recipient actually receives the notice in
the case of personal delivery or the sender receives electronic confirmation of
delivery with respect to any notice given by facsimile communication.

     Section 6.2. Waiver of Notice. Whenever any notice is required to be
given to any Holder under the provisions of any applicable law or this
Agreement, a waiver thereof in writing signed by the person or persons entitled
to said notice, whether before or after the time stated therein, shall be
deemed equivalent to the giving of such notice.

VII. MISCELLANEOUS

     Section 7.1. Execution in Counterparts. This Agreement may be executed in
counterparts, all of which taken together shall be deemed one original.

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     Section 7.2. Further Assurances. Each Holder hereby covenants and agrees
to execute and deliver such instruments as may be reasonably requested by any
other Holder to convey any interest or to take any other action required or
permitted under this Agreement.

     Section 7.3. Titles and Captions. All article, section, or subsection
titles or captions contained in this Agreement or the table of contents hereof
are for convenience only and shall not be deemed part of the context of this
Agreement.

     Section 7.4. Number and Gender of Pronouns. All pronouns and any
variations thereof shall be deemed to refer to the masculine, feminine, neuter,
singular or plural as the identity of the Person or Persons may require.

     Section 7.5. Entire Agreement. This Agreement, together with the
Operating Agreement, contains the entire understanding between and among the
Holders and supersedes any prior understandings and agreements between and
among them respecting the subject matter of this Agreement.

     Section 7.6. Amendment. This Agreement may be amended or modified only by
approval of the Board of Managers of the Company pursuant to Sections 6.6 and
9.7 of the Operating Agreement. Each Holder other than Comstock Offshore, LLC,
by its execution of this Agreement, hereby makes, constitutes and appoints the
Chief Executive Officer of the Company as its true and lawful agent and
attorney-in-fact, with full power of substitution and full power and authority
in its name, place and stead to make, execute, sign, and acknowledge all
instruments that the Chief Executive Officer deems appropriate to reflect any
amendment or modification of this Agreement pursuant to the terms of this
Section 7.6. The power of attorney granted by this Section 7.6 shall be
considered coupled with an interest and shall survive any disability of a
Member.

     Section 7.7. Agreement Binding. This Agreement shall be binding upon the
heirs, executors, administrators, successors, and assigns of the Holders.

     Section 7.8. Waiver. No failure by any Holder to insist upon the strict
performance of any covenant, duty, agreement, or condition of this Agreement or
to exercise any right or remedy consequent upon a breach thereof shall
constitute a waiver of any such breach or any other covenant, agreement, term,
or condition. Any Holder by the issuance of written notice may, but shall be
under no obligation to, waive any of its rights or any conditions to its
obligations hereunder, or any duty, obligation or covenant of any other Holder.
No waiver shall affect or alter the remainder of this Agreement but each and
every covenant, agreement, term, and condition of this Agreement shall continue
in full force and effect with respect to any other then existing or subsequent
breach thereof.

     Section 7.9. Remedies. The rights and remedies of the Holders set forth
in this Agreement shall not be mutually exclusive or exclusive of any right,
power or privilege provided by law or in equity or otherwise and the exercise
of one or more of the provisions hereof shall not preclude the exercise of any
other provisions hereof or of any legal, equitable or other right. Each of the
Holders confirms that damages at law may be an inadequate remedy for a breach
or threatened breach of any provision hereof. The respective rights and
obligations hereunder shall

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be enforceable by specific performance, injunction, or other equitable
remedy, but nothing herein contained is intended to, or shall limit or affect
any rights at law or by statute or otherwise of any Holder aggrieved as against
another Holder for a breach or threatened breach of any provision hereof, it
being the intention of this section to make clear the agreement of the Holder
that the respective rights and obligations of the Holders hereunder shall be
enforceable in equity as well as at law or otherwise.

     Section 7.10. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED, ENFORCED,
AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEVADA (WITHOUT REGARD TO ITS
CHOICE OF LAW PRINCIPLES).

     Section 7.11. 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 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 PARTIES’ 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 THAT PARTY AND OF ANY OTHER PERSON WHO
WILL ACCOMPANY THE REPRESENTATIVE. WITHIN 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 HAS NOT BEEN RESOLVED BY DISCUSSION
BETWEEN OR AMONG THE PARTIES WITHIN 20 DAYS OF THE DISPUTING PARTY’S
NOTICE, ANY PARTY MAY BY NOTICE TO THE OTHER PARTIES 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 WILL IN GOOD FAITH ATTEMPT TO AGREE
UPON A MEDIATOR AND AGREES TO PARTICIPATE IN MEDIATION OF THE DISPUTE IN
GOOD FAITH. IF THE PARTIES ARE UNABLE TO AGREE UPON A MEDIATOR WITHIN
FIFTEEN (15) DAYS AFTER SUCH NOTICE, THE PARTIES AGREE TO PROCEED TO
MEDIATION UNDER THE COMMERCIAL MEDIATION RULES OF THE AMERICAN
ARBITRATION ASSOCIATION IN

10

 

EFFECT ON THE DATE OF THIS AGREEMENT. IF SUCH DISPUTE SHALL NOT
HAVE BEEN RESOLVED BY MEDIATION WITHIN THE TIME PERIOD SPECIFIED IN
SUBSECTION (c) BELOW, ARBITRATION MAY BE INITIATED 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 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 ANY PARTY
IN THE ARBITRATION EXCEEDS $1,000,000, THE UNDERSIGNED AGREE THAT
THE AMERICAN ARBITRATION ASSOCIATION OPTIONAL PROCEDURES FOR LARGE,
COMPLEX COMMERCIAL DISPUTES WILL BE APPLIED TO THE DISPUTE.

     (ii) THE PARTIES TO THE DISPUTE SHALL MUTUALLY AGREE UPON A
SOLE ARBITRATOR, WHICH NEED NOT BE AN ARBITRATOR SUGGESTED BY OR
ASSOCIATED WITH THE AAA (BUT SUCH ARBITRATOR SHALL NONETHELESS
APPLY THE AAA ARBITRATION RULES AS SET FORTH IN (i) ABOVE). IF THE
PARTIES TO THE DISPUTE ARE UNABLE TO AGREE UPON AN ARBITRATOR, THE
PARTIES SHALL REQUEST THAT AAA SUGGEST A PANEL OF THREE INDEPENDENT
AND IMPARTIAL ARBITRATORS, EACH OF WHOM SHALL BE KNOWLEDGEABLE WITH
RESPECT TO THE SUBJECT MATTER OF THE DISPUTE. ARBITRATION SHALL BE
BEFORE ONE OF THESE THREE ARBITRATORS IF THE DISPUTING PARTIES CAN
AGREE ON THE SELECTION OF ONE OF THEM AS THE SOLE ARBITRATOR. IF
NOT, ARBITRATION SHALL BE BEFORE ALL THREE.

     (iii) THE PLACE OF ARBITRATION SHALL BE HOUSTON, TEXAS.

     (iv) THE ARBITRATOR(S) ARE NOT EMPOWERED TO AWARD DAMAGES IN
EXCESS OF COMPENSATORY DAMAGES.

11

 

     (v) THE ARBITRATOR(S) SHALL HAVE THE EXCLUSIVE AUTHORITY TO
DETERMINE AND AWARD COSTS OF ARBITRATION AND THE COSTS INCURRED BY
EACH PARTY FOR ITS ATTORNEYS, ADVISORS AND CONSULTANTS.

     (vi) 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.

     (vii) ALL MATTERS RELATING TO THE ENFORCEABILITY OF THIS
ARBITRATION AGREEMENT AND ANY AWARD RENDERED PURSUANT TO THIS
AGREEMENT SHALL BE GOVERNED BY THE FEDERAL ARBITRATION ACT, 9
U.S.C. § 1-16. THE ARBITRATOR(S) SHALL APPLY THE SUBSTANTIVE LAW
OF THE STATE OF NEVADA, EXCLUSIVE OF ANY CONFLICT OF LAW RULES.

     (viii) EACH HOLDER IS REQUIRED TO CONTINUE TO PERFORM ITS
OBLIGATIONS UNDER THIS CONTRACT PENDING FINAL RESOLUTION OF ANY
DISPUTE ARISING OUT OF OR RELATING TO THIS CONTRACT, UNLESS TO DO
SO WOULD BE IMPOSSIBLE OR IMPRACTICABLE UNDER THE CIRCUMSTANCES.

     (ix) NOTHING IN THIS SECTION 7.11 SHALL LIMIT THE HOLDERS’
RIGHTS TO OBTAIN PROVISIONAL, ANCILLARY OR EQUITABLE RELIEF FROM A
COURT OF COMPETENT JURISDICTION.

     (d) SETTLEMENT. NOTHING CONTAINED HEREIN SHALL PREVENT THE PARTIES
FROM SETTLING ANY DISPUTE BY MUTUAL AGREEMENT AT ANY TIME.

     Section 7.12. WAIVER. EACH HOLDER WAIVES ANY RIGHT THAT THE HOLDER MAY
HAVE TO COMMENCE ANY ACTION IN ANY COURT WITH RESPECT TO ANY DISPUTE AMONG THE
HOLDERS RELATING TO OR ARISING UNDER THIS AGREEMENT OR THE RIGHTS OR
OBLIGATIONS OF ANY HOLDER HEREUNDER, OTHER THAN AN ACTION BROUGHT TO ENFORCE
THE ARBITRATION PROVISIONS OF SECTION 7.11 HEREOF. THE HOLDERS AGREE THAT ANY
SUCH ACTION SHALL BE BROUGHT (AND VENUE FOR ANY SUCH ACTION SHALL BE
APPROPRIATE) IN DALLAS, TEXAS.

12

 

     Section 7.13. U.S. Dollars. Any reference in this Agreement to “dollars,”
“funds” or “sums” or any amounts denoted with a “$” shall be references to
United States dollars.

     Section 7.14 Termination This Agreement shall terminate and be of no
further effect upon completion of an initial public offering after a conversion
of the Company into a corporation.

     IN WITNESS WHEREOF, the undersigned parties have executed this Agreement
as of the 16th day of July, 2004.

[Following are the signature pages.]

13

 

	 	 	 	 	 	 	 
	 	 	The Company
	 
	 	 	 	 	 	 
	 	 	BOIS D’ARC ENERGY,
LLC,

a Nevada limited liability company
	 
	 	 	 	 	 	 
	

	 	 	 		 	 /s/ WAYNE L. LAUFER
	

	 	 	 	 	 	
 
	

	 	 	 	Name:	 	 Wayne L. Laufer
	

	 	 	 	 	 	
 
	

	 	 	 	Title:	 	 Chief Executive Officer
	

	 	 	 	 	 	
 

14

 

	 	 	 	 	 	 	 
	

	 	Holders	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	COMSTOCK OFFSHORE, LLC
	 
	 	 	 	 	 	 
	

	 	 	 		 	 /s/ ROLAND O. BURNS
	

	 	 	 	 	 	
 
	

	 	 	 	Name:	 	 Roland O. Burns
	

	 	 	 	 	 	
 
	

	 	 	 	Title:	 	 Senior Vice President
	

	 	 	 	 	 	
 

15

 

	 	 	 	 	 	 	 
	 	 	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

16

 

	 	 	 
	

	 	/s/ M. JAY ALLISON
	

	 	

	

	 	M. JAY ALLISON

17

 

	 	 	 
	

	 	/s/ ROLAND O. BURNS

	

	 	ROLAND O. BURNS

18

 

	 	 	 
	

	 	/s/ WAYNE L. LAUFER

	

	 	WAYNE L. LAUFER

19

 

	 	 	 
	

	 	/s/ GAYLE LAUFER

	

	 	GAYLE LAUFER

20

 

	 	 	 
	

	 	/s/ GARY W. BLACKIE

	

	 	GARY W. BLACKIE

21

 

	 	 	 	 	 	 	 
	 	 	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
	
	 	 	 	 	 	
 
	 
	 	 	 	 	 	 

22

 

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

23

 

	 	 	 	 	 	 	 
	 	 	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 

24

 

CONSENT AND AGREEMENT OF SPOUSE

     I, the undersigned, certify that:

     (1) I am the spouse of the individual who signed the foregoing Transfer
Restriction Agreement of Bois d’Arc Energy, LLC (the “Agreement”).

     (2) I have read and approve all of the terms, conditions, and provisions
of the Agreement and agree to be bound by all of the terms, conditions, and
provisions thereof.

     IN WITNESS WHEREOF, I have executed this consent and agreement on the date
indicated.

	 	 	 	 	 	 	 	 	 
	Date:
	 	July 18, 2004	/s/ KAROL KAYE HARRISON
	 	 	
 	 	 	 	
 
	

	 	 	 	 	 	 	 	 
	Date:
	 	July 19, 2004	 	 	 	/s/ REBECCA S. HOLMAN
	 	 	
 	 	 	 	
 
	

	 	 	 	 	 	 	 	 
	Date:
	 	July 20, 2004	 	 	 	/s/ SANDRA H. KNECHT
	 	 	
 	 	 	 	
 
	

	 	 	 	 	 	 	 	 
	Date:
	 	July 21, 2004	 	 	 	/s/ BARBARA ROSE MARTIN
	 	 	
 	 	 	 	
 
	

	 	 	 	 	 	 	 	 
	Date:
	 	July 20, 2004	 	 	 	/s/ ANGELA M. STEIN
	 	 	
 	 	 	 	
 
	

	 	 	 	 	 	 	 	 

25<PAGE>

                                                                    EXHIBIT 10.8

                     FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

This First Amendment to Employment Agreement ("Agreement") is executed by and
between COMSTOCK RESOURCES, INC., a Nevada corporation (the "Company") with
principal offices in Frisco, Texas, and M. JAY ALLISON ("Employee").

         WHEREAS, the parties entered into an Employment Agreement effective
June 1, 2002 (the "Employment Agreement); and

         WHEREAS, the parties desire to amend the Employment Agreement to permit
the Employee to perform certain services, which the Company has determined are
in its best interest;

         NOW, THEREFORE, the Company and the Employee agree that Paragraph 5 of
the Employment Agreement shall be amended as set forth below, effective July 16,
2004.

         Paragraph 5 shall provide as follows (the amended provision is
highlighted):

         5.       Performance of Services; Permitted Activities. Employee shall
                  devote his full working time to the business of the Company;
                  PROVIDED, HOWEVER, EMPLOYEE MAY SERVE AS CHAIRMAN OF THE BOARD
                  OF MANAGERS OF BOIS D'ARC ENERGY, LLC, A NEVADA LIMITED
                  LIABILITY COMPANY, OR ITS SUCCESSORS, PROVIDED THAT SUCH
                  SERVICE SHALL NOT INTERFERE WITH THE PERFORMANCE OF HIS DUTIES
                  HEREUNDER. Employee shall be excused from performing any
                  services for the Company hereunder during periods of temporary
                  incapacity and during vacations conforming to the Company's
                  standard vacation policy, without thereby in any way affecting
                  the compensation to which he is entitled hereunder.

                            [Signature page follows.]

                                      -1-

<PAGE>

         EXECUTED and effective July 16, 2004.

                                         COMSTOCK RESOURCES, INC.

                                         /s/ Roland O. Burns
                                         ---------------------------------------
                                         Name:  Roland O. Burns
                                         Title: Senior Vice President and Chief
                                                Financial Officer

                                         EMPLOYEE:

                                         /s/ M. Jay Allison
                                         ---------------------------------------
                                         Name: M. Jay Allison

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"}]]