Document:

exv10w37

Exhibit 10.37

AMENDED OVERRIDING ROYALTY AGREEMENT

     This Amended Overriding Royalty Agreement (this “Agreement”) is made and entered into
as of the 3rd day of December, 2008, by and
among Western LAND Company, LLC
(“Western Land”), a Kentucky limited liability company, Western Diamond, LLC
(“Western Diamond”), a Nevada limited liability company, Ceralvo Holdings, LLC
(“Ceralvo”), a Delaware limited liability company, Armstrong Mining, Inc. (“Armstrong
Mining”), a Delaware corporation, Armstrong Coal Company, Inc., a Delaware corporation
(“Armstrong Coal”), Armstrong Land Company, LLC (“Armstrong Land”), a Delaware limited
liability company (together, with each of the foregoing and their respective successors and
assigns, the “Armstrong Parties”), and Mr. David R. Cobb (“Cobb”), 3575 Brown Road,
Madisonville, Kentucky 42431 (collectively, the “Parties).

     Whereas, on November 22, 2006, Armstrong Mining f/k/a Honeywood Mining, Inc., entered
into an Overriding Royalty Agreement with Cobb, pursuant to which Cobb was granted a royalty
interest on certain real property pursuant to the terms and conditions stated therein; and

     Whereas, on November 22, 2006, Armstrong Coal entered into an Overriding Royalty
Agreement with Cobb, pursuant to which Cobb was granted a royalty interest on certain real property
pursuant to the terms and conditions stated therein; and

     Whereas, the Parties desire to fully amend and restate the terms of each of the
foregoing Overriding Royalty Agreements, and Ceralvo, Western Diamond and Western Land desire to
join in this Agreement upon such terms and conditions as set forth herein;

     Now, Therefore, in accordance with the foregoing Recitals and in exchange for good
and valuable consideration, the receipt and sufficiency of which all of the parties to this
Agreement hereby acknowledge, the parties hereby covenant and agree as follows:

     1. Western Diamond Grant of Overriding Royalty. Western Diamond, together with its
successors and assigns, hereby grants to Cobb and agrees to pay to Cobb an overriding royalty (the
“Western Diamond Royalty”) in the amount of Five Cents ($0.05) of all coal hereafter mined or
extracted and subsequently sold from all of the coal reserves and real property described in, and
conveyed, demised or otherwise granted in or under, the following deeds and instruments:

     (i) The Corporation Special Warranty Deed from Central States Coal Reserves of Kentucky, LLC
and Beaver Dam Coal Company to Western Diamond, LLC, dated September 19, 2006, of record in Deed Book 363, page 369, in the Office of the Ohio County Clerk;

     (ii) The Partial Assignment of Coal Mining Lease from Central States Coal Reserves of
Kentucky, LLC to Western Diamond, LLC dated September 19, 2006, of record in Deed Book 363, page
428, in the Office of the Ohio County Clerk;

     (iii) The Corporation Special Warranty Deed from Central States Coal Reserves of Kentucky, LLC
and Beaver Dam Coal Company to Western Diamond, LLC, dated September 19, 2006, of record in Deed
Book 363, page 414, in the Office of the Ohio County Clerk;

 

 

     (iv) The Corporation Special Warranty Deed from Beaver Dam Coal Company to Western Diamond,
LLC, dated September 19, 2006, of record in Deed Book 363, page 393, in the Office of the Ohio
County Clerk;

     (v) The Corporation Special Warranty Deed from Beaver Dam Coal Company to Western Diamond,
LLC, dated September 19, 2006, of record in Deed Book 363, page 403, in the Office of the Ohio
County Clerk;

     (vi) The Corporation Special Warranty Deed from Central States Coal Reserves of Kentucky, LLC
to Western Diamond, LLC, dated May 31, 2007, of record in Deed Book 528, page 284, in the Office of
the Muhlenberg County Clerk, and the Deed of Confirmation between Central States Coal Reserves of
Kentucky, LLC, Western Diamond, LLC and Armstrong Coal Reserves, Inc., dated September 30, 2007, of
record in Deed Book 531, page 205, in the Office of the Muhlenberg County Clerk;

     (vii) The Corporation Special Warranty Deed from Central States Coal Reserves of Kentucky, LLC
and Beaver Dam Coal Company to Western Diamond, LLC, dated May 31, 2007, of record in Deed Book
368, page 17, in the Office of the Ohio County Clerk, and the Deed of Correction between Central
States Coal Reserves of Kentucky, LLC, Beaver Dam Coal Company, LLC and Western Diamond, LLC, of
record in Deed Book 369, page 759, in the Office of the Ohio County Clerk;

     (viii) The Partial Assignment and Assumption of Mineral Leasehold Estate from Central States
Coal Reserves of Kentucky, LLC to Western Diamond, LLC, dated May 31, 2007, of record in Deed Book
528, page 320, in the Office of the Muhlenberg County Clerk; and

     (ix) The Partial Assignment and Assumption of Mineral Leasehold Estate from Central States
Coal Reserves of Kentucky, LLC to Western Diamond, LLC, dated May 31, 2007, of record in Deed Book
528, page 330, in the Office of the Muhlenberg County Clerk.

     2. Western Land Grant of Overriding Royalty. Western Land, together with its
successors and assigns, hereby grants to Cobb and agrees to pay to Cobb an overriding royalty (the
“Western Land Royalty”) in the amount of Five Cents ($0.05) per ton, of all coal hereafter mined or
extracted and subsequently sold from all of the coal reserves and real property described in, and
conveyed, demised or otherwise granted in or under, the following deeds and instruments:

     (i) The Corporation Special Warranty Deed from Central States Coal Reserves of Kentucky, LLC
to Western Land Company, LLC, dated December 12, 2006, of record in Deed Book 524, page 505, in the
Office of the Muhlenberg County Clerk;

     (ii) The Corporation Special Warranty Deed from Central States Coal Reserves of Kentucky, LLC
and Beaver Dam Coal Company to Western Land Company, LLC, dated December 12, 2006, of record in
Deed Book 365, page 36, in the Office of the Ohio County Clerk;

-2-

 

     (iii) The Partial Assignment and Assumption of Mineral Leasehold Estate from Central States
Coal Reserves of Kentucky, LLC to Western Land Company, LLC, dated November 20, 2006, of record in
Deed Book 524, page 523, in the Office of the Muhlenberg County Clerk, as amended and restated in
Deed Book 527, page 186, in the Office of the Muhlenberg County Clerk;

     (iv) The Partial Assignment and Assumption of Surface and Mineral Leasehold Estate from
Central States Coal Reserves of Kentucky, LLC to Western Land
Company, LLC, dated November 20,
2006, of record in Deed Book 365, page 57, in the Office of the Muhlenberg County Clerk;

     (v) The Corporation Special Warranty Deed from Central States Coal Reserves of Kentucky, LLC,
Beaver Dam Coal Company, Ohio County Coal Company, LLC and Grand Eagle Mining, Inc. to Western Land
Company, LLC, dated March 30, 2007, of record in Deed Book 367, page 1, in the Office of the Ohio
County Clerk;

     (vi) The Corporation Special Warranty Deed from Central States Coal Reserves of Kentucky, LLC
to Western Land Company, LLC, dated March 30, 2007, of record in Deed Book 527, page 118, in the
Office of the Muhlenberg County Clerk, as corrected by Deed of Correction dated September 30, 2007,
of record in Deed Book 531, page 213, in the Office of the Muhlenberg County Clerk; and

     (vii) The Partial Assignment and Assumption of Surface and Mineral Leasehold Estate from
Central States Coal Reserves of Kentucky, LLC to Western Land Company, LLC, dated March 30, 2007,
of record in Deed Book 527, page 161, in the Office of the Muhlenberg County Clerk.

     3. Ceralvo Grant of Overriding Royalty. Ceralvo, together with its
successors and assigns, hereby grants to Cobb and agrees to pay to Cobb an overriding royalty (the
“Ceralvo Royalty”) in the amount of Five Cents ($0.05) per ton, of all coal hereafter mined or
extracted and subsequently sold from all of the coal reserves and real property described in, and
conveyed, demised or otherwise granted in or under, the following deeds and instruments:

     (i) The Corporation Special Warranty Deed from Cyprus Creek Land Resources, LLC and Cyprus
Creek Land Company to Ceralvo Holdings, LLC, dated March 31, 2008, of record in Deed Book 373, page
262, in the Office of the Ohio County Clerk;

     (ii) The Memorandum of Assignment and Assumption of Mineral Leasehold Estate from Cyprus Creek
Land Resources, LLC to Ceralvo Holdings, LLC, dated March 31, 2008, of record in Deed Book 373,
page 199, in the Office of the Ohio County Clerk; and

     (iii) The Memorandum of Assignment and Assumption of Coal Lease Agreement from Cyprus Creek
Land Resources, LLC to Ceralvo Holdings, LLC, dated March 31, 2008, of record in Deed Book 373,
page 210, in the Office of the Ohio County Clerk.

     4. Armstrong Coal Grant of Overriding Royalty. Armstrong Coal, together with
its successors and assigns, hereby grants to Cobb and agrees to pay to Cobb an overriding

-3-

 

royalty
(the “Armstrong Coal Royalty”) (together with the Western Diamond Royalty, the Western Land
Royalty, and the Ceralvo Royalty, the “Overriding Royalty”) in the amount equal to Five Cents
($0.05) per ton, of all coal hereafter mined or extracted and subsequently sold from all of the
coal reserves and real property described in, and conveyed, demised or otherwise granted in or
under, the following deeds and instruments:

     (i) The Deed from Delois Jane Geary, Mary Etta Hurst and Ronald Hurst to Armstrong Coal
Company, Inc., dated March 19, 2008, of record in Deed Book 373, page 514, in the Office of the
Ohio County Clerk; and

     (ii) The unrecorded Coal Mining Lease between Warren C. Roe, Josephine Roe, Joseph Michael Roe
and Sara Kelly Roe, lessors, and Armstrong Coal Company, Inc., lessee, dated March 7, 2008.

     5. Payment. Payment of the Overriding Royalty shall be paid to Cobb on or
before the 25th day of each calendar month on all coal mined and produced from the subject
properties which was sold during the preceding calendar month. All payments shall be paid by check
payable to Cobb. Each payment of the Overriding Royalty hereunder shall be accompanied by a
statement from the Armstrong Parties showing the number of tons of coal mined and sold during the
preceding calendar month (showing separately coal produced by the strip, surface, auger or open pit
method of mining and coal produced by any other method of mining) and the computation of the
Overriding Royalty payable on such coal so mined and sold during such calendar month. All payments
due hereunder shall be mailed to Cobb at the address listed herein or as otherwise directed by Cobb
from time to time.

     6. Records. The Armstrong Parties shall keep records of truck scale weights,
or river barge dead weight surveys, or railroad car weights, whichever is applicable, together with
accurate surveys and progress maps used in conjunction with accepted and recognized engineering
methods which shall be taken as the basis for payment of the Overriding Royalty.

     7. Term. The term of the Royalty shall commence as of November 22, 2006 and
shall continue to the later of: (i) November 22, 2026 or (ii) until such time as all of the
mineable and saleable coal from the subject properties has been mined (the “Term”).

     8. Indemnification. The Armstrong Parties shall, at their own cost and
expense, indemnify and hold, Cobb and his assigns harmless of, from and against, any and all claims
damages, demands, expenses, fines, liabilities and taxes (of any character or nature whatsoever,
regardless of by whom imposed), and losses of every conceivable kind, character and nature
whatsoever (including, but not limited to, claims for losses or damages to any property or injury
to or death of any person) asserted by or on behalf of any person arising out of, resulting from or
in any way connected with the mining of the coal on the subject properties or from this Agreement.
The Armstrong Parties also covenant and agree at their expense, to pay, and to indemnify and save
Cobb and his assigns harmless of, from and against, all costs, reasonable attorneys’ fees, expenses
and liabilities incurred in any action or proceeding brought by reason of any such claim or demand.

-4-

 

     9. Obligations to Run With Land. The Parties agree that the Overriding Royalty shall
constitute an independent and enforceable obligation that shall run with the land and shall be
binding on the Armstrong Parties, their respective assigns and successors, and any subsequent owner
of the subject properties unless otherwise agreed to by Cobb. The Parties further agree that Cobb
shall not encumber this Agreement or the Overriding Royalty conveyed herein without written
permission from all of the Parties. Furthermore, Armstrong Land hereby guarantees to Allen the
full, prompt and proper payment of the Overriding Royalty, this guaranty being one of payment and
not of collection. This guaranty shall not be in any way impaired or affected by the bankruptcy or
other releaser of any of the other Armstrong Parties or of any other party liable for the payment
in full or in part of the Overriding Royalty.

     10. Notices. All notices and other communications with respect to this
Agreement shall be in writing and shall be deemed effectively given when delivered personally or
seventy-two (72) hours after mailing by certified mail, postage prepaid, to the following
addresses of the parties:

     If to the Armstrong Parties:

Martin D. Wilson

7701 Forsyth Boulevard, 10th Floor

St. Louis, Missouri 63105

With Required Copy To:

Mason L. Miller

Miller + Wells, PLLC

300 East Main Street, Ste. 360

Lexington, Kentucky 40507

     If to Cobb:

David R. Cobb

3575 Brown Road

Madisonville, Kentucky 42431

     Each party may change its address by giving written notice of such change to the other
party.

     11. Miscellaneous Provisions.

     11.1. Effectiveness. This Agreement shall become effective upon its
execution and delivery by each Party.

     11.2. Complete Understanding. This Agreement represents the complete
understanding between the Parties hereto with respect to the subject matter hereof, and supersedes
all prior negotiations, representations, guarantees, warranties, promises, statements, or
agreements, either written or oral, between the Parties hereto as to the same.

-5-

 

     11.3. Amendment. This Agreement may be amended only by an instrument
executed and delivered by each Party.

     11.4. Waiver. No Party shall be deemed to have waived any right which it
holds hereunder unless the waiver is made expressly and in writing (and, without limiting the
generality of the foregoing, no delay or omission by any party in exercising any such right shall
be deemed a waiver of its future exercise). No waiver shall be deemed a waiver as to any other
instance or any other right.

     11.5. Recording. The parties acknowledge and agree to record a memorandum of
this Agreement in a form that shall provide notice of the obligations created hereunder.

     11.6. Applicable Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the Commonwealth of Kentucky without regard to its conflict of law
rules.

     11.7. Assignment. This Agreement shall be binding upon, and shall inure to
the benefit of, the Parties hereto and their respective executors, administrators, heirs,
successors, and assigns, and shall be freely assignable by the Parties, in whole or in part.

     11.8.
Severability.  No determination by any court, governmental body, or
otherwise that any provision of this Agreement or any amendment hereof is invalid or unenforceable
in any instance shall affect the validity or enforceability of (a) any other provision thereof, or
(b) that provision in any circumstance not controlled by the determination. Each such provision
shall be valid and enforceable to the fullest extent allowed by, and shall be construed wherever
possible as being consistent with, applicable law.

     11.9. Further Assurances. The Parties shall cooperate with each other and
shall execute and deliver, or cause to be delivered, all other instruments and shall take all other
actions, as either Party hereto may reasonably request from time to time in order to effectuate the
provisions hereof.

     11.10. Counterparts; Facsimile. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same Agreement. This Agreement may be executed and delivered via facsimile, with a copy
sent to each Party.

     11.11. Amendment and Restatement of Prior Overriding Royalty Agreements.
This Agreement shall fully restate, amend and replace, in their entirety, the Overriding Royalty
Agreement dated November 22, 2006, by and between Armstrong Mining and Cobb, and the
Overriding Royalty Agreement dated November 22, 2006, by and between Armstrong Coal and
Cobb.

     In Witness Whereof, the parties have executed this Agreement as of the date set forth
above.

-6-

 

	 	 	 	 	 
	Armstrong Coal Company, Inc.

 	 
	By:  	/s/ Martin D. Wilson
 	 
	 	Martin D. Wilson, President 	 
	 
	Armstrong Mining, Inc.

 	 
	By:  	/s/  Martin D. Wilson
 	 
	 	Martin D. Wilson, President 	 
	 
	Western Land Company, LLC

 	 
	By:  	/s/ Martin D. Wilson
 	 
	 	Martin D. Wilson, Manager 	 
	 
	Western Diamond, LLC

 	 
	By:  	/s/ Martin D. Wilson
 	 
	 	Martin D. Wilson, Manager 	 
	 
	Ceralvo Holdings, LLC

 	 
	By:  	/s/ Martin D. Wilson
 	 
	 	Martin D. Wilson, Manager 	 
	 
	Armstrong Land Company, LLC

 	 
	By:  	/s/  Martin D. Wilson
 	 
	 	Martin D. Wilson, President 	 
	 
	/s/ Mr. David R. Cobb
 	 
	Mr. David R. Cobb 	 
	 

-7-exv10w2

Exhibit 10.2

EXECUTION VERSION

NON-COMPETITION AGREEMENT

 

ZaZa Energy Corporation

c/o Toreador Holding SAS

5 rue Scribe

Paris, France

Fax: 33 (0) 1 47 03 33 71

August 9, 2011

Todd Alan Brooks

1301 McKinney Street, Suite 2850

Houston, Texas 77010

713-595-1919

Dear Mr. Brooks:

     You acknowledge that, simultaneously with the execution of this letter agreement (this
“Agreement”):

     (1) Toreador Resources Corporation, a Delaware corporation (“Toreador”), ZaZa Energy,
LLC, a Texas limited liability company (“ZaZa”), ZaZa Energy Corporation, a Delaware
corporation, (the “Company”), 50% of the outstanding capital stock of which is owned by
Toreador and 50% of the outstanding capital stock of which is owned by ZaZa, and Thor Merger Sub
Corporation, a Delaware corporation (“Thor Merger Sub”) and a wholly-owned subsidiary of
the Company, are entering into that certain Agreement and Plan of Merger and Contribution, dated as
of the date herof (as amended, modified or supplemented from time to time, the “Merger
Agreement”), pursuant to which, among other things, Thor Merger Sub will merge with and into
Toreador (the “Toreador Merger”), whereby, subject to the terms of the Merger Agreement,
Toreador will become a wholly owned subsidiary of the Company; and

     (2) each of Blackstone Oil & Gas, LLC, a Texas limited liability company, Omega Energy Corp.,
a Texas corporation, and Lara Energy, Inc., a Texas corporation (collectively, the “ZaZa
Members”) are entering into a Contribution Agreement, dated as of the date hereof (the
“Contribution Agreement”), with the Company and Toreador, pursuant to which at the
Effective Time (as defined in the Merger Agreement) the ZaZa Members shall contribute the ZaZa
Membership Interests (as defined in the Merger Agreement) held, directly or indirectly, by each of
them to the Company (collectively, the “ZaZa Contribution”) in exchange for certain cash or
notes and shares of common stock of the Company, whereby, subject to the terms of the Contribution
Agreement, ZaZa will become a wholly owned subsidiary of the Company.

 

 

     You recognize and acknowledge that, as a controlling person of a ZaZa Member, you will
indirectly receive significant and substantial consideration in connection with the Combination.

     You understand that the Merger Agreement contemplates and requires that you and the Company
enter into this Agreement and that the execution and delivery of this Agreement by you and your
compliance with the terms of this Agreement constitute an inducement and condition of Toreador,
ZaZa and the Company to enter into the Merger Agreement and the ZaZa Members and the Company to
enter into the Contribution Agreement, and of each of the foregoing to agree to effect the
Combination.

     You acknowledge and agree that (i) the geographic, activity and time limitations of the
provisions contained in this Agreement are fair, reasonable, necessary and properly required for
the adequate and legitimate protection of the business interests of the Company and (ii) you fully
understand the nature and purpose of such restrictions and expressly accept them.

     You also acknowledge and agree that, in the event that any geographic, activity or time
limitation set forth in this Agreement is deemed to be unreasonable or excessively broad by a court
of competent jurisdiction, you shall submit to the reduction of either said geographic, activity or
time limitation to such geographic, activity or period as the court shall deem reasonable and such
offending provision will be construed by limiting or reducing it, so as to be valid and enforceable
to the extent compatible with applicable law or the determination by a court of competent
jurisdiction.

     For good and valuable consideration, the receipt and sufficiency of which you hereby
acknowledge, the Company and you agree as follows:

	I.	 	Prohibited Competition.

	 	A.	 	Definitions.

	 	1.	 	For purposes of this Agreement:

	 	(a)	 	“Affiliate” means, with respect to any
Person, any other Person directly or indirectly controlling, controlled
by or under common control with such Person. As used in this definition
and otherwise in this Agreement, “control” (including, with its
correlative meanings, “controlled by” and “under common control with”)
means the possession, directly or indirectly, of the power to direct or
cause the direction of management or policies of a Person, whether
through the ownership of securities or partnership or other ownership
interests, by contract or otherwise. For purposes hereof, the Company
and its subsidiaries shall not be deemed to be your Affiliates.
	 
	 	(b)	 	“Business Enterprise” means any
corporation (including any non-profit corporation), general partnership,
limited partnership, limited liability partnership, joint venture, sole
proprietorship,

2

 

company (including any limited liability company or joint stock company), bank, firm or
other enterprise, association, trust, trust company, land trust, business trust or other
business association or entity.

	 	(c)	 	“Company Entities” means the Company, ZaZa, Toreador, and their present and future
Subsidiaries.
	 
	 	(d)	 	“Competing Business” means any Oil and Gas Business in or with respect to the
Non-Competition Area.
	 
	 	(e)	 	“Equity Interest” means the equity ownership rights in a Business Enterprise, whether
in the form of capital stock, ownership or membership unit, limited liability company
interest, limited or general partnership interest or any other form of ownership, or any
right, option, warrant, convertible security or indebtedness or other instrument enabling any
Person to acquire any of the same.
	 
	 	(f)	 	“Exempt Business” means the Oil and Gas Business (i) conducted by the entities named
on Schedule 1 hereto solely with respect to Oil and Gas Interests owned or leased by
such entity as of the date hereof, or (ii) conducted by you or any of your Affiliates solely
with respect to Oil and Gas Interests owned or leased by you or your Affiliates after the date
hereof that were not located within the Non-Competition Area as such Non-Competition Area
existed on the date of acquisition or lease of such Oil and Gas Interests.
	 
	 	(g)	 	“Non-Competition Area” means the geographical area encompassed within the areas of
mutual interest set forth on the maps attached hereto as Exhibit A, and any areas of
mutual interest arising pursuant to any written agreement entered into by a Company Entity
with an unaffiliated third party after the date hereof and before the date of determination
hereunder, which will be set forth on an additional map to be attached hereto to form part of
Exhibit A (and a copy of which shall be provided to you by the Company at the time of
its entry into such agreement creating such area of mutual interest). The date of
determination of the Non-Competition Area hereunder shall be the date of any action to be taken
by you that is subject to restriction hereunder during the Restricted Period (as hereafter
defined); provided, however, that if the Restricted Period extends beyond the date of
termination of your employment under your Employment Agreement (as hereafter defined), the
date of determination shall be the date of termination of your employment under your
Employment Agreement.
	 
	 	(h)	 	“Oil and Gas Business” means owning, managing, acquiring,

3

 

attempting to acquire, soliciting the acquisition of, operating,
controlling or developing Oil and Gas Interests.

	 	(i)	 	“Oil and Gas Interests” means direct and
indirect interests in and rights with respect to crude oil, natural gas,
natural gas liquids, direct or indirect, including working and leasehold
interests and operating rights and royalties, overriding royalties,
production payments, net profit interests and other non-working
interests and non-operating interests; Hydrocarbons or revenues
therefrom, all contracts in connection therewith and claims and rights
thereto (including all oil and gas leases, production sharing
agreements, operating agreements, unitization and pooling agreements and
orders, division orders, transfer orders, royalty deeds, oil and gas
sales, exchange and processing contracts and agreements, and in each
case, interests thereunder), surface interests, fee interests,
reversionary interests, reservations, and concessions. For purposes of
this definition, “Hydrocarbons” means crude oil, natural gas and
natural gas liquids (including coalbed gas).
	 
	 	(j)	 	“Person” means any individual or Business Enterprise
	 
	 	(k)	 	“Rejected Opportunity” means any activity
otherwise prohibited by Section I.B. hereof that following the
Closing (i) has been offered to the Company and (ii) both a majority of
the full board of directors of the Company and the majority of the
disinterested directors of the Company has determined not to pursue;
provided, however, that if the majority of the disinterested
directors do not make a determination regarding whether the Company will
pursue such opportunity within 10 business days following the offer by
you of such opportunity, such opportunity shall thereafter be deemed to
be a Rejected Opportunity; and provided, further, that if the
Company does not take reasonable steps to pursue such opportunity within
10 business days following written notice by you to the Company that the
Company has neglected to pursue such opportunity, such opportunity shall
thereafter be deemed to be a Rejected Opportunity.

	 	2.	 	Capitalized terms used, but not defined, in this Agreement
shall have the respective meanings set forth in the Merger Agreement. All
references herein to “you” shall be deemed references to each of the
counterparties on the signature page to this Agreement.

     B. Non-Competition. From the date hereof until the later of (i) the date of any
termination of your employment under an employment agreement to be entered into between you and
the Company in connection with the Toreador Merger and the ZaZa Contribution (your “Employment
Agreement”), or (ii) the third (3rd) anniversary of the Closing Date (such period,
the “Restricted Period”), you hereby agree that you shall not, and shall cause your
controlled

4

 

	Affiliates not to, without the prior written consent of the Company (such consent to be given
solely with the approval of a majority of the disinterested directors of the Company), in
Company’s sole and absolute discretion, individually or as a principal, owner, officer, director,
manager, employee, shareholder, promoter, consultant, contractor, partner, member, joint venturer,
agent, equity owner, lender or in any other capacity whatsoever, directly or indirectly:

     1. engage in, carry on or assist, any Competing Business within the Non-Competition
Area, in each case other than a Rejected Opportunity or an Exempt Business;

     2. advise, request, induce, attempt to induce or otherwise divert any customer,
supplier, licensee or other business relation of any Company Entity to materially curtail,
limit or cease doing business with any Company Entity, or in any way materially interfere
with the relationship between any such customer, supplier, joint venture partner, licensee
or business relation and any Company Entity;

     3. with or in any Business Enterprise, own, acquire, attempt to acquire or solicit the
acquisition of (or assist any person or Business Enterprise to own, acquire, attempt to
acquire or solicit the acquisition of) (A) any Oil and Gas Interest in or with respect to
the Non-Competition Area or (B) any Equity Interest in any Business Enterprise with any Oil
and Gas Interests in or with respect to the Non-Competition Area, in each case other than a
Rejected Opportunity or an Exempt Business;

     4. materially interfere with any of the Oil and Gas Interests or any business of any
of the Company Entities; or

     5. in any way attempt to do any of the foregoing or assist any other Person to do or
attempt to do any of the foregoing.

     C. Exception. Nothing in paragraph B of this Section I shall preclude you or
any of your controlled Affiliates from purchasing equity interests in any Person if (i) either (x)
such equity interest is not publicly traded and you are a passive investor in such Person or (y)
such equity interest is publicly traded, (ii) your holdings do not represent beneficial ownership
of five percent (5%) or greater of the issued and outstanding voting stock of such Person, and
(iii) you and/or your controlled Affiliates do not otherwise control such Person.

II. No Conflicting Agreements. You hereby represent and warrant that you have no
commitments or obligations inconsistent with this Agreement.

III. General.

     A. Term and Termination. The provisions of Section I of this Agreement shall
become effective upon the Effective Time. This Agreement shall automatically terminate and
become void and of no further force or effect upon the valid termination of the Merger
Agreement in accordance with its terms.

     B. Notices. All notices, requests, consents and other communications hereunder
will be in writing, will be addressed to the receiving party’s address set forth above or to
such other

5

 

address as a party may designate by notice hereunder, and will be (i) delivered by hand; (ii) sent
by overnight courier; (iii) sent by registered mail, return receipt requested, postage prepaid; or
(iv) sent by facsimile transmission. All notices, requests, consents and other communications
hereunder will be deemed to have been given either (x) if by hand or by facsimile, at the time of
the delivery thereof to the receiving party at the address or facsimile number of such party set
forth above; (y) if sent by overnight courier, on the next business day following the day such
notice is delivered to the courier service or (z) if sent by registered mail, on the fifth
business day following the day such mailing is made.

     C. Entire Agreement. This Agreement embodies the entire agreement and
understanding between the parties hereto with respect to the subject matter hereof and
supersedes all prior oral or written agreements and understandings relating to the subject
matter
hereof. No statement, representation, warranty, covenant or agreement of any kind not
expressly set forth in this Agreement will affect, or be used to interpret, change or
restrict, the
express terms and provisions of this Agreement.

     D. Modifications and Amendments. The terms and provisions of this Agreement
may be modified or amended only by written agreement executed by the Company and the party
affected by such modification or amendment, and, following the Closing, approved by a
majority
of the disinterested directors of the Company.

     E. Waivers and Consents. The terms and provisions of this Agreement may be
waived, or consent for the departure therefrom granted, only by written document executed by
the party entitled to the benefits of such terms or provisions. No such waiver or consent
will be
deemed to be or will constitute a waiver or consent with respect to any other terms or
provisions of
this Agreement, whether or not similar. Each such waiver or consent will be effective only in
the
specific instance and for the purpose for which it was given, and will not constitute a
continuing
waiver or consent.

     F. Assignment. The Company may not assign its rights and obligations under this
Agreement without your prior written consent. You may not assign your rights and obligations
under this Agreement without the prior written consent of the Company. Any such attempted
assignment without such prior written consent will be void.

     G. Benefit. All statements, representations, warranties, covenants and agreements in
this Agreement will be binding on the parties hereto and will inure to the benefit of the
respective successors and permitted assigns of each party hereto. Nothing in this Agreement
will
be construed to create any rights or obligations except for your obligations to the Company as
set
forth herein, and no person or entity (except for a Company Affiliate or successor in
interest, as
set forth herein) will be regarded as a third-party beneficiary of this Agreement.

     H. Governing Law. This Agreement and the rights and obligations of the parties
hereunder will be construed in accordance with and governed by the law of Texas, without giving
effect to the conflict of law principles thereof.

     I. Jurisdiction, Venue and Service of Process. Any legal action or proceeding with
respect to this Agreement will be brought in the United States District Court for the Southern

6

 

District of Texas or any other court of competent jurisdiction located within the geographic
boundaries of Harris County, Texas. By execution and delivery of this Agreement, each of the
parties hereto accepts for itself and in respect of its property, generally and unconditionally,
the exclusive jurisdiction of the aforesaid courts.

     J. Severability. The parties intend this Agreement to be enforced as written. However,
(i) if any portion or provision of this Agreement is to any extent declared illegal or
unenforceable by a duly authorized court having jurisdiction, then the remainder of this Agreement,
or the application of such portion or provision in circumstances other than those as to which it is
so declared illegal or unenforceable, will not be affected thereby, and each portion and provision
of this Agreement will be valid and enforceable to the fullest extent permitted by law and (ii) if
any provision, or part thereof, is held to be unenforceable because of the duration of such
provision or the geographic area covered thereby, the court making such determination will have the
power to reduce the duration and/or geographic area of such provision, and/or to delete specific
words and phrases (“blue-penciling”), and in its reduced or blue-penciled form such
provision will then be enforceable and will be enforced.

     K. Headings and Captions. The headings and captions of the various subdivisions of
this Agreement are for convenience of reference only and will in no way modify or affect the
meaning or construction of any of the terms or provisions hereof.

     L. Injunctive Relief. You hereby expressly acknowledge that any breach or threatened
breach of any of the terms and/or conditions set forth in this Agreement could result in
substantial, continuing and irreparable injury to the Company and that money damages may not be a
sufficient remedy for any breach of this Agreement by you or your Affiliates. Therefore, in
addition to any other remedy that may be available to the Company, the Company will be entitled to
seek injunctive or other equitable relief by a court of appropriate jurisdiction in the event of
any breach or threatened breach of the terms of this Agreement and you hereby waive any
requirement for the securing or posting of any bond in connection with such remedy. Such remedies
shall not be deemed to be the exclusive remedies for a breach by you of this Agreement but shall
be in addition to all other remedies available at law or equity to the parties.

     M. No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in
exercising any right, power or remedy under this Agreement, and no course of dealing between the
parties hereto, will operate as a waiver of any such right, power or remedy of the party. No
single or partial exercise of any right, power or remedy under this Agreement by a party hereto,
nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, will
preclude such party from any other or further exercise thereof or the exercise of any other right,
power or remedy hereunder. The election of any remedy by a party hereto will not constitute a
waiver of the right of such party to pursue other available remedies. No notice to or demand on a
party not expressly required under this Agreement will entitle the party receiving such notice or
demand to any other or further notice or demand in similar or other circumstances or constitute a
waiver of the rights of the party giving such notice or demand to any other or further action in
any circumstances without such notice or demand.

7

 

     N. Counterparts. This Agreement may be executed in two or more counterparts, and by
different parties hereto on separate counterparts, each of which will be deemed an original, but
all of which together will constitute one and the same instrument.

     O. Opportunity to Review. You hereby acknowledge that you have had adequate
opportunity to review these terms and conditions and to reflect upon and consider the terms and
conditions of this Agreement, and that you have had the opportunity to consult with counsel of your
own choosing regarding such terms. You further acknowledge that you fully understand the terms of
this Agreement and have voluntarily executed this Agreement.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

8

 

     If the foregoing accurately sets forth our agreement, please so indicate by signing and
returning to us the enclosed copy of this letter.

	 	 	 	 	 
	 	Very truly yours,

ZaZa Energy Corporation

 	 
	 	By:  	/s/ Craig M. McKenzie
 	 
	 	 	Name:  	Craig M. McKenzie 	 
	 	 	Title:  	Vice President and Secretary 	 
	 

	 	 	 	 	 
	Accepted and Approved:

 	 	 
	By:  	/s/ Todd Alan Brooks
 	 	 
	 	Name:  	Todd Alan Brooks 	 	 

 

 

Schedule 1

Blackstone Oil and Gas, LLC

Neuhaus Brooks Investments, LLC

T Brooks Investments, LLC

Mineral Acquisition Company of Texas, LLC

North Sandy Creek Management, LLC

Todd Alan Brooks Non Exempt Trust

Todd Alan Brooks GST Exempt Trust

 

 

A-1

 

A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}]]