SUBORDINATION AGREEMENT
STATE OF NEW MEXICO )
)
COUNTY OF SAN XXXX )
This Agreement, entered into this 14th day of November, 2000.
WITNESSETH
WHEREAS, PLAYA MINERALS & ENERGY, INC., a Texas corporation, has
heretofor executed a Mortgage, Assignment of Production, Security Agreement and
Financing Statement (hereinafter "Mortgage") to PARAWON CORPORATION, an Alabama
corporation, said Mortgage dated July 21, 2000 and filed for record in the
Office of the County Clerk of San Xxxx County, New Mexico in B1305.P800;
WHEREAS, PLAYA MINERALS & ENERGY, INC. is becoming indebted to EQUIVA
TRADING COMPANY, in the total amount of $1,700,000 which indebtedness will be
secured by oil that may be produced from PLAYA MINERALS AND ENERGY INC.'s
interest attributable to the lands described on Exhibit "A" attached to said
Mortgage;
WHEREAS, it is the intention of the undersigned that said Mortgage
executed in favor of PARAWON CORPORATION ON July 21, 2000 and recorded in
B1305.P800, be second, subservient and inferior to the indebtedness of
$1,700,00.00 owed by PLAY MINERALS & ENERGY INC., to EQUIVA TRADING COMPANY.
NOW, THEREFORE, in consideration of the premises, PARAWON CORPORATION,
an Alabama corporation hereby agrees that the Mortgage described above is
second, subservient and inferior to PLAYA MINERALS & ENERGY, INC.'s, obligation
to EQUIVA TRADING COMPANY, a Delaware general partnership, in the amount of
$1,700,000.
IN WITNESS WHEREOF, the said PARAWON CORPORATION, has caused these
presents to be executed and its seal affixed by the officer thereunto duly
authorized on this the _____ day of November, 2000.
PARAWON CORPORATION
BY:
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Xxxx Xxxxxxxxxxxx - President
STATE OF TEXAS )
)
COUNTY OF XXXXXX )
This instrument was acknowledged before me on November ___, 2000 by
Xxxx Xxxxxxxxxxxx as President of PARAWON CORPORATION.
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Notary Public,
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My Commission Expires:
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(AFFIX NOTARIAL SEAL)
