EXHIBIT 10.4
CLOSING AGREEMENT
This Closing Agreement (this "Agreement") is made and entered into
this 31st day of March, 2000, by and between ODESSA EXPLORATION INCORPORATED,
a Delaware corporation ("Seller"), NORWEST ENERGY CAPITAL, INC., a Texas
corporation ("Buyer"), and KEY ENERGY SERVICES, INC., a Maryland corporation
("Parent").
RECITALS
Seller is the owner of certain oil and gas leasehold interests in
Carson, Dawson, Glasscock, Hutchinson, Loving, Martin, Midland, Pecos,
Potter, Reagan, Xxxxxx and Xxxxx Counties, Texas.
On even date herewith, Seller has sold to Buyer, and Buyer has
purchased from Seller, a production payment interest in such oil and gas
leasehold interests.
As an inducement to Buyer to purchase such production payment
interest, Seller and Parent have agreed to enter into this Agreement, and as
an inducement to Seller to sell such production payment interest, Buyer has
agreed to enter into this Agreement.
AGREEMENTS
NOW, THEREFORE, in consideration of the mutual benefits and
obligations of the parties contained herein, Buyer, Seller and Parent agree
as follows:
ARTICLE I
DEFINITIONS
Any capitalized terms used herein but not defined shall have the
meaning given such term in that certain Conveyance of Production Payment of
even date herewith between Seller and Buyer, a copy of which is attached
hereto as Exhibit A (the "Conveyance").
ARTICLE II
ACKNOWLEDGMENT OF PURCHASE AND SALE
2.1 PURCHASE AND SALE. In consideration of the execution and
delivery by Seller of this Agreement, the Conveyance and that certain
Production and Delivery Agreement dated of even date herewith, a copy of
which is attached hereto as Exhibit B (the "Production
and Delivery Agreement") (the Conveyance and the Production and Delivery
Agreement, together with any other documents or instruments referred to
hereunder, being herein referred to as the "Closing Documents"), and as full
payment of the purchase price for the Production Payment conveyed by Seller
to Buyer pursuant to the Conveyance, Buyer has paid to Seller, and Seller
acknowledges receipt of, an amount equal to $20,000,000.00.
2.2 ADDITIONAL ACTIONS TAKEN. In connection with the purchase
by Buyer of the Production Payment from Seller, Buyer and Seller acknowledge
that the following events have taken place on or prior to the date hereof:
(a) Seller and Buyer have each executed and delivered to the
other multiple counterparts of the Conveyance and the Production and
Delivery Agreement;
(b) Seller has executed and delivered to Buyer such financing
statements as Buyer has reasonably deemed necessary or appropriate to
perfect the liens and security interests granted to Buyer pursuant to
Section 14 of the Production and Delivery Agreement;
(c) Seller has executed and delivered to Buyer letters in lieu
of transfer orders addressed in blank covering Hydrocarbons produced
from or attributable to each of the Subject Interests;
(d) Seller has executed and delivered to Buyer such other
instruments as Buyer has reasonably requested in order to effectuate
the conveyance of the Production Payment to Buyer;
(e) Seller has delivered to Buyer a certificate of Seller's
secretary certifying resolutions of the board of directors of Seller
authorizing and approving the transactions contemplated in the
Conveyance and the Production and Delivery Agreement;
(f) Seller has paid Buyer or Buyer's designee transaction fees
totaling $565,000.00;
(g) Seller has delivered to Buyer an opinion of Xxxxxx &
Xxxxxx, L.L.P., counsel for Seller and Parent, in the form attached
hereto as Exhibit C, and such opinion to cover corporate matters, due
authorization, enforceability and no violations; and
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(h) Other than Permitted Liens, Seller has delivered to Buyer
a release of any liens and mortgages burdening the Subject Interests.
2.3 RECORDING OF CERTAIN DOCUMENTS. After the date hereof,
Buyer shall cause (a) counterparts of the Conveyance, the Production and
Delivery Agreement and associated financing statements to be filed for record
in all appropriate records in Carson, Dawson, Glasscock, Hutchinson, Loving,
Martin, Midland, Pecos, Potter, Reagan, Xxxxxx and Upton Counties, Texas and
(b) a counterpart of the financing statement associated with the Production
and Delivery Agreement to be filed with the Secretary of State of the State
of Texas. Seller shall reimburse Buyer for all documentary, filing and
recording fees required in connection with the filing and recording of such
Closing Documents.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF SELLER
3.1 REPRESENTATIONS AND WARRANTIES OF SELLER. Seller hereby
represents and warrants to Buyer as follows:
(a) To the best of Seller's Knowledge (Seller's Knowledge
shall mean the actual, not deemed, Knowledge of senior management of
Seller), all of the information, reports and other data furnished by
Seller to Buyer, or made available for review by Buyer, in connection
with the transactions described herein all of which information is
specifically described in Schedule 3.1(a) attached hereto and made a
part hereof, is accurate and complete in all material respects and none
of such information, reports or data contains an untrue statement of a
material fact or omits to state any material fact which is necessary in
order to make the statements therein, in light of the circumstances
under which they were made, not misleading.
(b) The actions of Seller in furnishing information to Buyer
in connection with the transactions described herein do not and will
not violate any duty owed by Seller to any person to which such
information relates or any obligation of Seller under any existing
agreement.
(c) Seller owns Good and Marketable Title (as defined below)
to the Subject Interests and, to the best of Seller's Knowledge, any
other real or personal property interests of Seller used in connection
with or attributable in any way to the Subject Interests (the Subject
Interests and such other real or personal property interests being
herein collectively referred to as the
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"Assets"). As used herein, the term "Good and Marketable Title" means
such record title that:
(i) in the case of the Subject Interests, (1)
entitles Seller to receive a percentage of all Hydrocarbons
produced, saved and marketed from each Subject Well not less
than the net revenue interest set forth in Exhibit A to the
Conveyance for such well, without reduction, suspension or
termination for the respective productive life of such well,
(2) obligates Seller to bear a percentage of the costs and
expenses relating to operations on and the maintenance and
development of each Subject Well not greater than the
undivided leasehold or working interest set forth in Exhibit A
to the Conveyance for such well, without increase for the
respective productive life of each such well, (3) entitles
Seller to a share of the working interest or operating rights
in each Subject Well which is not less than the undivided
leasehold or working interest set forth in Exhibit A to the
Conveyance for such well and (4) is free and clear of any
encumbrances, liens, mortgages, or pledges, preferential
purchase rights or requirements for consents to assignment
applicable to or exercisable as a result of the Conveyance,
and any other defects that would materially affect or
interfere with the operation, use, possession, ownership or
value thereof, except for the Permitted Encumbrances; and
(ii) in the case of the Assets other than the Subject
Interests, constitutes good and indefeasible title, free and
clear of all encumbrances, liens, mortgages, or pledges,
preferential purchase rights or requirements for consents to
assignment applicable to or exercisable as a result of the
Conveyance, and any other defects that would materially affect
or interfere with the operation, use, possession, ownership or
value thereof, except for the Permitted Encumbrances.
(d) All Taxes imposed or assessed with respect to or
measured by or charged against or attributable to the Assets have been
duly paid (except for those Taxes being disputed in good faith).
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(e) Except as may be set forth on Exhibit D, there are no
suits or proceedings pending or, to the best of Seller's Knowledge,
threatened against Seller or the Assets before any court, or by or
before any governmental commission, bureau or any regulatory authority,
that if decided adversely to the interest of Seller could materially
adversely affect Seller, any of the Assets or the rights of Buyer under
the Closing Documents.
(f) The Leases are in full force and effect; and, to the best
of Seller's Knowledge, Seller has complied with the terms of all
governmental orders or directives naming Seller or applicable directly
to the Subject Interests.
(g) All rents and royalties with respect to the Leases have
been paid in a timely manner, and all liabilities of any kind or nature
incurred with respect to the Leases have been paid before delinquent;
Seller has not received any notice of default or, to the best of
Seller's Knowledge, Seller has not received any notice of a claimed
default with respect to the Subject Interests or any Lease or any part
thereof; and, to the best of Seller's Knowledge, all xxxxx, facilities
and equipment which constitute part of the Assets are in good repair
and working condition and have been designed, installed and maintained
in accordance with good industry standards and all applicable legal
requirements other than which would not have a material adverse effect
on the ownership or operation of the Subject Interests.
(h) Except as set forth in Exhibit D, neither the Subject
Interests nor the Hydrocarbons attributable thereto are subject,
committed or dedicated to any contract, agreement or arrangement
regarding the gathering, transportation, processing, storing, delivery,
sale, use or marketing thereof; and no third party has any call, right
of first refusal or preferential right to purchase any such
Hydrocarbons.
(i) Except as set forth in Exhibit D, Seller is not a party to
or bound by, and the Subject Interests and the Hydrocarbons
attributable thereto are not encumbered or affected by, any gas
balancing, deferred production, gas banking or similar agreement or
arrangement; and except as shown on Exhibit D, Seller is not in an
"overlift," "over-produced," or similar status under any such agreement
or arrangement.
(j) Neither the Subject Interests nor the Hydrocarbons
attributed thereto is subject to any contract, agreement or arrangement
(including,
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without limitation, advance payment agreements, prepayments,
take-or-pay makeup obligations or otherwise) whereby the owner of such
Hydrocarbons or any part thereof is not entitled to convey such
Hydrocarbons or to market such Hydrocarbons and to obtain the full
market price or value of the same.
(k) To the best of Seller's Knowledge, the Subject Interests
have been operated in accordance with all laws, rules and regulations
of all governmental authorities having or asserting jurisdiction
relating to the ownership and operation of the Subject Interests,
including the production of Hydrocarbons attributable thereto, and,
except as set forth on Exhibit D, are not subject to reduced allowances
or other penalties on account of overproduction or otherwise. To the
best of Seller's Knowledge, the Subject Interests are, and at all times
have been, operated in accordance with all laws, rules, regulations and
decisions (including any requirements under applicable common law)
relating to the protection or conservation of human health or safety or
the environment, and no conditions exist on the land covered by the
Subject Interests that are in violation of such laws, rules,
regulations or decisions or that require the taking of remedial action
under such laws, rules, regulations or decisions which would have a
material adverse effect on the ownership or operation of the Subject
Interests.
(l) Seller is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware, is duly
qualified and in good standing as a foreign corporation in the State of
Texas, and has the legal right, power and authority, and qualifications
to conduct its business and own its properties (including the Subject
Interests); and Seller has the legal right, power and authority (i) to
execute and deliver the Conveyance and to convey to Buyer the
Production Payment and all of the rights and privileges appurtenant
thereto and (ii) to execute and deliver this Agreement and those of the
Closing Documents to which it is a party and perform all of its
obligations under the same.
(m) The execution, delivery and performance by Seller of those
of the Closing Documents to which it is a party are within its
corporate powers, have been duly authorized by all necessary corporate
action on the part of Seller and do not and will not (i) violate any
provision of law or any rule, regulation, order, writ, judgment,
decree, or determination currently in effect having applicability to
Seller or Seller's certificate of incorporation, bylaws, or other
governing documents, (ii) result in a breach of or constitute a default
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under any indenture, bank loan or credit agreement to which Seller is a
party or by which Seller or its properties may be currently bound or
affected, (iii) result in a breach of or constitute a default under any
farmout agreement, program agreement or operating agreement, or any
other agreement or instrument (other than any indenture, bank loan or
credit agreement) to which Seller is a party or by which Seller or its
properties may be currently bound or affected which would have a
material adverse effect on the Production Payment , (iv) result in or
require the creation or imposition of any mortgage, lien, pledge,
security interest, charge, or other encumbrance upon or of any of the
properties or assets of Seller (including the Subject Interests) under
any such indenture, bank loan or credit agreement or (v) result in or
require the creation or imposition of any mortgage, lien, pledge,
security interest, charge, or other encumbrance upon or of any of the
properties or assets of Seller (including the Subject Interests) under
any other agreement or instrument (other than any indenture, bank loan
or credit agreement) which would have a material adverse effect on the
Production Payment; and Seller is not in default under any such order,
writ, judgment, decree, determination, indenture, agreement, or
instrument in any way that now or in the future will materially
adversely affect the ability of Seller to perform its obligations under
this Agreement or those of the Closing Documents to which it is a
party; and all consents or approvals under such indentures, agreements,
and instruments necessary to permit valid execution, delivery, and
performance by Seller of those of the Closing Documents to which Seller
is a party and the conveyance of the Production Payment to Buyer have
been obtained.
(n) This Agreement and each of the Closing Documents to which
Seller is a party has been duly executed and delivered by Seller and
constitutes the legal, valid, and binding acts and obligations of
Seller enforceable against Seller in accordance with its terms,
subject, however, to bankruptcy, insolvency, reorganization, and other
laws affecting creditors' rights generally and, with regard to any
equitable remedies, to the discretion of the court before which
proceedings to obtain such remedies may be pending. There are no
bankruptcy, insolvency, reorganization, receivership or arrangement
proceedings pending, being contemplated by, or to the Knowledge of
Seller, threatened against Seller.
(o) Parent is a corporation duly organized, validly existing
and in good standing under the laws of the State of Maryland, is duly
qualified and in good standing as a foreign corporation in the State of
Texas, and has the
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legal right, power and authority, and qualifications to conduct its
business and own its properties; and Parent has the legal right, power
and authority to execute and deliver those of the Closing Documents to
which it is a party and perform all of its obligations under the same.
(p) The execution, delivery and performance by Parent of this
Agreement are within its corporate powers, been duly authorized by all
necessary corporate action on the part of Parent and do not and will
not (i) violate any provision of law or any rule, regulation, order,
writ, judgment, decree, or determination currently in effect having
applicability to Parent or Parent's certificate of incorporation,
bylaws, or other governing documents, (ii) result in a breach of or
constitute a default under any indenture, bank loan or credit agreement
to which Parent is a party or by which Parent or the capital stock of
Seller may be currently bound or affected except as disclosed on
Exhibit E, or (iii) result in or require the creation or imposition of
any mortgage, lien, pledge, security interest, charge, or other
encumbrance upon the capital stock of Seller under any such indenture,
bank loan or credit agreement; and Parent is not in default under any
such order, writ, judgment, decree, determination, indenture,
agreement, or instrument in any way that now or in the future will
materially adversely affect the ability of Parent to perform its
obligations under those of the Closing Documents to which it is party;
and all consents or approvals under such indentures, agreements, and
instruments necessary to permit valid execution, delivery, and
performance by Parent of those of the Closing Documents to which it is
a party have been obtained.
(q) Each of the Closing Documents to which Parent is a party
has been duly executed and delivered by Parent and constitutes the
legal, valid, and binding acts and obligations of Parent enforceable
against Parent in accordance with its terms, subject, however, to
bankruptcy, insolvency, reorganization, and other laws affecting
creditors' rights generally and, with regard to any equitable remedies,
to the discretion of the court before which proceedings to obtain such
remedies may be pending. There are no bankruptcy, insolvency,
reorganization, receivership or arrangement proceedings pending, being
contemplated by, or to the Knowledge of Seller, threatened against
Parent.
(r) Upon due execution and delivery by Seller of the
Conveyance, (i) the Conveyance will constitute the legal, valid, and
binding conveyance of
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the Production Payment out of the entire Subject Interests, subject to
(x) general principles of equity (regardless of whether such
enforceability is considered in a proceeding at law or in equity) (y)
matters of public policy and (z) other applicable laws and procedures
which may affect the rights and remedies provided therein, (ii) the
Production Payment will constitute an interest in real property, (iii)
the Production Payment will constitute a "production payment" within
the meaning of Section 541 of the United States Bankruptcy Code, and
(iv) neither the Conveyance nor any Subject Interest will or does
constitute an executory contract or unexpired lease within the meaning
of Section 365 of the United States Bankruptcy Code.
(s) All consents and waivers of preferential purchase or other
rights necessary to permit the valid conveyance to Buyer of the
Production Payment and execution and delivery of this Agreement and the
Closing Documents have been obtained or the time for giving such
consents or waivers has expired following a written request therefor.
(t) All advance notifications to third parties of the
transactions contemplated herein and in the Closing Documents necessary
to permit the valid conveyance to Buyer of the Production Payment and
execution and delivery of this Agreement and the Closing Documents have
been timely and properly given.
(u) To the best of Seller's Knowledge, no authorization,
consent, approval, license, or exemption of, and no filing or
registration with, any court or governmental department, commission,
board, bureau, agency, or instrumentality, domestic or foreign, is
necessary to the valid execution and delivery by Seller of, or the
performance by Seller of its obligations under, this Agreement or the
Closing Documents that has not been obtained or performed or the period
for objection thereto expired.
(v) No fire, explosion, accident, earthquake, act of public
enemy, or other casualty (regardless of whether covered by insurance)
adversely affecting any material portion of the Subject Interests or
the operation thereof, or adversely affecting the ability of Seller to
perform its obligations under this Agreement or the Closing Documents,
has occurred.
(w) To the best of Seller's Knowledge, seller has obtained all
permits, licenses and other authorizations which are required under
federal,
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state and local laws with respect to pollution or protection of the
environment relating to Subject Interests, the failure of which to
obtain would materially adversely affect the value, use or operation of
any of the Subject Interests; and Seller (with respect to the Assets
operated by it), and to the best of Seller's Knowledge third parties
operating the Assets for Seller (with respect to the Assets not
operated by Seller) are in compliance in all material respects with all
terms and conditions of such laws, permits, licenses and
authorizations, relating to the Assets, the failure with which to
comply would materially adversely affect the value, use or operation of
any Subject Interest; and neither Seller nor, to Seller's Knowledge,
any third party operator of the Subject Interests has received notice
alleging or suggesting the violation of, or indicating that there will
or may be an investigation relating to the possible violation of, any
federal, state or local laws (including common law) with respect to
pollution or protection of the environment, in either case which
involves the Subject Interests.
(y) The financial statements furnished to Buyer listed as
Schedule 3.1(a) have been prepared in accordance with generally
accepted accounting principles, consistently applied, and fairly and
accurately reflect the financial condition of Seller as of such date
and the results of operations for such periods, as applicable, and
Seller's financial position has not suffered a material adverse change
since the date of such financial statements.
ARTICLE IV
REPRESENTATIONS AND COVENANTS OF PARENT
4.1 REPRESENTATIONS OF PARENT. Parent represents and warrants that it
owns good and indefeasible title to all of the capital stock of Seller free and
clear of all security interests, liens, adverse claims or options.
4.2 COVENANTS OF PARENT. Parent covenants and agrees that it will not
pledge, mortgage, or otherwise encumber, create or suffer a security interest to
exist in or sell, assign, or otherwise transfer any of the capital stock of
Seller.
ARTICLE V
REPRESENTATIONS OF BUYER
5.1 REPRESENTATIONS OF BUYER. Buyer hereby represents and warrants to
Seller as follows:
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(a) Buyer is a corporation duly organized and validly existing
under the laws of the State of Texas. The execution, delivery and
performance of this Agreement and the transactions described herein
have been duly and validly authorized by all necessary corporate action
on the part of Buyer.
(b) This Agreement and each of the Closing Documents has been
duly executed and delivered on behalf of Buyer and constitutes the
legal, valid and binding obligations of Buyer enforceable against it in
accordance with their terms, subject, however, to bankruptcy,
insolvency, reorganization and other laws affecting creditors' rights
generally and with regard to any equitable remedies, to the discretion
of the court before which proceedings to obtain such remedies may be
pending.
ARTICLE VI
MISCELLANEOUS
6.1 ANNOUNCEMENTS. Each party covenants and agrees with the
other that, subject to applicable law, each party shall promptly advise and
consult with the other and obtain the other's written consent before issuing
any press release with respect to this Agreement or the transactions
described herein.
6.2 FURTHER ASSURANCES. Seller and Buyer agree to take all such
further actions and to execute, acknowledge and deliver all such further
documents that are necessary or useful to effectuate the conveyance of the
Production Payment and to carry out the purposes of this Agreement or any of
the Closing Documents.
6.3 SURVIVAL. The representations, warranties, covenants,
agreements and indemnities in this Agreement and the Closing Documents shall
survive the Closing and the consummation of the transactions described herein
and therein.
6.4 EXPENSES. Seller shall reimburse Buyer for all legal and
title and environmental due diligence fees, costs and expenses reasonably
incurred by Buyer with respect to the negotiation, documentation and
consummation of the transactions described herein. Each party hereto shall
bear and be responsible for all other fees, costs and expenses incurred with
respect to the transaction described herein (including accounting and
engineering expenses). Seller shall indemnify and hold harmless Buyer from
and against any and all liability for any brokers' or
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finders' fees arising with respect to brokers or finders retained or engaged by
Seller in respect of the transactions described herein and Buyer shall indemnify
and hold harmless Seller from and against any and all liability for any brokers'
or finders' fees arising with respect to brokers or finders retained or engaged
by Buyer in respect of the transactions described herein.
6.5 NOTICES. All notices, requests, demands, instructions and
other communications required or permitted to be given hereunder shall be
delivered in the manner and to the addresses of Seller and Buyer as provided
in the Production and Delivery Agreement.
6.6 INDEMNIFICATION. (a) Until the termination of the
Production Payment, Seller shall fully defend, protect, indemnify and hold
harmless Buyer, its successors and assigns, its officers, employees,
representatives and agents ("Indemnified Parties") from and against any and
all losses which may be suffered by Indemnified Parties and from and against
any and all claims, demands, suits and causes of action (collectively
"Claims") of every kind and character (together with reasonable attorneys'
fees and costs of defense) relating to, arising out of, or in any way
incidental to the breach of any warranty or representation contained in this
Agreement, regardless of whether Buyer may have known of such breach or of
the condition giving rise to such breach. Without limiting the foregoing, if
the representation and warranty contained in Section 3.1(r)(iv) is breached
and the Conveyance or any Subject Interest is rejected as an unexpired lease
or executory contract pursuant to any of the provisions of Xxxxxxx 000 xx xxx
Xxxxxx Xxxxxx Bankruptcy Code, the damages recoverable as a result of such
rejection shall equal the value as of the date of rejection of the future
Hydrocarbons delivery obligations remaining under the Conveyance at the time
of the rejection determined in a commercially reasonably manner. Seller
acknowledges that the mortgage, lien and security interest granted in Section
14 of the Production and Delivery Agreement secures, among other things, any
amount owed pursuant to this Section 6.6.
(b) If any Indemnified Party discovers or otherwise becomes
aware of an indemnification Claim arising under Section 6.6(a) of this
Agreement, such Indemnified Party shall give written notice to the Seller,
specifying such Claim, and may thereafter exercise any remedies available to
such Indemnified Party under this Agreement; PROVIDED, that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the Seller
of any obligations hereunder, to the extent the Indemnifying Party is not
materially prejudiced thereby. Further, promptly after receipt by an Indemnified
Party hereunder of written notice of the commencement of any action or
proceeding with respect to which a Claim for indemnification may be made
pursuant to Section 6.6(a), such Indemnified Party shall, if a Claim in respect
thereof is to be made against Seller, give written notice to the latter of the
commencement of such action; PROVIDED, that the failure of any Indemnified Party
to give notice as provided herein shall not relieve Seller of any obligations
hereunder, to the extent the Indemnifying Party is not materially prejudiced
thereby. In case any such action is brought against an Indemnified Party, the
Seller shall be entitled to participate in
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and to assume the defense thereof to the extent that it may wish, with counsel
reasonably satisfactory to such Indemnified Party, and after such notice from
the Seller to such Indemnified Party of its election so to assume the defense
thereof, the Seller shall not be liable to such Indemnified Party for any legal
fees and expenses subsequently incurred by the latter in connection with the
defense thereof unless the Seller has failed to assume the defense of such Claim
and to employ counsel reasonably satisfactory to such Indemnified Party. The
Seller shall not be liable for the fees and expenses of more than one counsel in
any single jurisdiction for all parties indemnified by the Seller with respect
to such Claim or with respect to Claims separate but similar or related in the
same jurisdiction arising out of the same general allegations. Notwithstanding
any of the foregoing to the contrary, the Indemnified Party will be entitled to
select its own counsel and assume the defense of any action brought against it
if the Seller fails to select counsel reasonably satisfactory to the Indemnified
Party, the expenses of such defense to be paid by the Seller. The Seller shall
not consent to entry of any judgment or enter into any settlement with respect
to a Claim without the consent of the Indemnified Party, which consent shall not
be unreasonably withheld, or unless such judgment or settlement includes as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability with respect to such Claim. No
Indemnified Party shall consent to entry of any judgment or enter into any
settlement of any such action, the defense of which has been assumed by the
Seller, without the consent of the Seller, which consent shall not be
unreasonably withheld.
6.7 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.
6.8 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
and, subject to the following restriction, shall inure to the benefit of the
parties hereto and their respective permitted successors and assigns. Buyer
or Buyer's successors and assigns, shall not partially transfer, sell,
convey, assign or mortgage their respective rights or obligations hereunder
to any third party without the prior written consent of Seller. Nothing
contained herein shall in any way limit or restrict the right of Buyer, or
Buyer's successors and assigns to transfer, sell, convey, assign or mortgage
all of the Production Payment and all of the respective rights or obligations
hereunder appertaining thereto without the consent of Seller. Except to the
extent same is effected in connection with and as a part of an assignment
permitted by the Conveyance, Seller shall not transfer, assign or pledge its
rights or obligations hereunder without the prior written consent of Buyer.
6.9 SCHEDULES AND EXHIBITS. The Exhibits attached hereto and
referred to herein constitute a part of this Agreement.
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6.10 ENTIRE AGREEMENT; AMENDMENTS; WAIVERS. This Agreement and
the Closing Documents constitute the entire agreement between the parties
hereto with respect to the transactions described herein, superseding all
prior negotiations, discussions, agreements and understandings, whether oral
or written, relating to such subject matter. This Agreement may not be
amended and no rights hereunder may be waived except by a written document
signed by the party to be charged with such amendment or waiver. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver unless otherwise expressly provided.
6.11 COUNTERPARTS. This Agreement may be executed by Buyer and
Seller in any number of counterparts, each of which shall be deemed an
original instrument, but all of which together shall constitute but one and
the same instrument.
6.12 NO THIRD-PARTY BENEFICIARY. This Agreement is not intended
to create, nor shall it be construed to create, any rights in any third party
under doctrines concerning third-party beneficiaries.
6.13 EXECUTION BY PARENT. Parent's execution of this Agreement is
for the sole purpose of making the representations and covenants set forth in
Article IV.
EXECUTED on the date first set forth above.
SELLER:
ODESSA EXPLORATION INCORPORATED
By: /s/ D. Xxxx Xxxxxxx
-----------------------------
D. Xxxx Xxxxxxx
President
PARENT:
KEY ENERGY SERVICES, INC.
By: /s/ Xxxx X. Xxxxxx, Xx.
-----------------------------
Xxxx X. Xxxxxx, Xx.
Senior Vice President and
General Counsel
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BUYER:
NORWEST ENERGY CAPITAL, INC.
By: /s/ Xxxx X. XxXxxxxx
---------------------------
Xxxx X. XxXxxxxx
Senior Vice President
EXHIBITS
A - Conveyance of Production Payment
B - Production and Delivery Agreement
C - Opinion of Counsel
D - Seller's Disclosure Statement
