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EXHIBIT 3
TERMINATION AGREEMENT
This Termination Agreement (this "AGREEMENT") is entered into as of
February 28, 2001, by and between Xxxxx Energy Company, a Texas corporation (the
"COMPANY"), and those persons executing the signature pages hereof (each a
"TERMINATING PARTY," collectively, the "TERMINATING PARTIES" and, together with
the Company, the "PARTIES").
RECITALS:
WHEREAS, each Terminating Party is a party to at least one of the
agreements listed on Exhibit A attached hereto (the "TERMINATING AGREEMENTS");
WHEREAS, the Company has executed a merger agreement, dated January 24,
2001 (the "MERGER AGREEMENT"), which contemplates a merger (the "MERGER") of the
Company with and into Bellwether Exploration Company, a Delaware corporation
("BELLWETHER");
WHEREAS, pursuant to Section 7.25 of the Merger Agreement the Company has
agreed to use its reasonable best efforts to cause each of the Terminating
Agreements to be terminated prior to the closing of the Merger;
WHEREAS, each Party desires to enter into this Agreement and terminate
those Terminating Agreements to which it is party.
AGREEMENT:
NOW, THEREFORE, in consideration of the mutual agreements contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby stipulated and acknowledged, the Parties hereby agree as follows:
1. Definitions. Capitalized terms defined herein shall have the
meanings given such terms herein. Capitalized terms used herein but not defined
herein shall have the meanings given such terms in the Merger Agreement.
2. Termination. Each Terminating Party hereby agrees with the Company
that, effective immediately prior to the Effective Time, each Terminating
Agreement to which such Terminating Party is party is terminated with no notice,
lapse of time or other condition necessary to effect such termination.
3. General.
a. Entire Agreement. This Agreement contains the entire
agreement among the Parties related to the subject matter hereof, and this
Agreement shall supersede all prior oral or written agreements, arrangements or
understandings between the Parties with respect thereto.
b. Choice of Law. This Agreement shall be governed and
construed in accordance with the laws of the State of Texas (other than the
choice of law principles thereof).
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c. Further Assurances. The Parties agree to deliver or cause
to be delivered to the other at such times as shall be reasonably agreed, any
such additional agreement, document, or instrument as either of them may
reasonably request for the purpose of carrying out this Agreement.
d. Successors and Assigns. This Agreement shall be binding
upon, and inure to the benefit of, the Parties hereto and their respective
heirs, personal representatives, successors and assigns, but shall not be
assignable by any Party.
e. Construction. All personal pronouns used in this Agreement,
whether used in the masculine, feminine or neuter gender, shall include all
other genders; the singular shall include the plural, and vice versa. Articles
and other titles or headings are for convenience only, and neither limit nor
amplify the provisions of the Agreement itself, and all references herein to
articles, sections, exhibits or schedules shall refer to the corresponding
article, section, exhibit or schedule of this Agreement unless specific
reference is made to the article, section, exhibit or schedule of another
document or instrument. The words "hereof," "herein," "hereunder" and similar
terms in this Agreement shall refer to this Agreement as a whole and not any
particular section or article in which such words appear.
f. Notice. All notices or communications hereunder shall be in
writing (including facsimile or similar writing) at the Party's address listed
on Exhibit B hereto. Any such notice or communication shall be deemed given (i)
when made, if made by hand delivery, and upon confirmation of receipt, if made
by facsimile, (ii) one business day after being deposited with a next-day
courier, postage prepaid, or (iii) three business days after being sent
certified or registered mail, return receipt requested, postage prepaid, in each
case addressed as above (or to such other address as such party may designate in
writing from time to time).
g. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]
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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first above written.
XXXXX ENERGY COMPANY
By:
----------------------
Name:
----------------------
Title:
----------------------
ENERGY CAPITAL INVESTMENT COMPANY PLC
By:
----------------------
Name: Xxxx X. Xxxxxxxx
Title: Director
TJG INVESTMENTS, INC.
By:
----------------------
Name: Xxx X. Xxxx
Title: President
BEC ENERGY COMPANY
By:
----------------------
Name: Xxx X. Xxxx
Title: Manager
BER ENERGY RESOURCES, LTD.
By: BOC Operating Corporation
General Partner
By:
----------------------
Name: Xxx X. Xxxx
Title: President
SIGNATURE PAGE
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BOC OPERATING CORPORATION
By:
----------------------
Name: Xxx X. Xxxx
Title: President
------------------------------
Xxx X. Xxxx
------------------------------
Xxxxxx Xxxxxx
------------------------------
Xxxxx X. Xxxxxx
------------------------------
B. Xxxx Xxxxx
------------------------------
Don Wm. Xxxxxxxx
SIGNATURE PAGE
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ENCAP ENERGY CAPITAL FUND III, L.P.
By: Encap Investments L.L.C.,
General Partner
By:
----------------------
Name: D. Xxxxxx Xxxxxxxx
Title: Senior Vice President
ENCAP ENERGY CAPITAL FUND III-B, L.P.
By: Encap Investments L.L.C.,
General Partner
By:
----------------------
Name: D. Xxxxxx Xxxxxxxx
Title: Senior Vice President
BOCP ENERGY PARTNERS, L.P.
By: Encap Investments L.L.C., Manager
By:
----------------------
Name: D. Xxxxxx Xxxxxxxx
Title: Senior Vice President
EOS PARTNERS, L.P.
By:
----------------------
Name:
----------------------
Title:
----------------------
EOS PARTNERS SBIC, L.P.
By: Eos SBIC General, L.P.,
its general partner
By: Eos SBIC, Inc., its general partner
By:
----------------------
Name:
----------------------
Title:
----------------------
SIGNATURE PAGE
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EOS PARTNERS SBIC II, L.P.
By: Eos SBIC General II, L.P.,
its general partner
By: Eos SBIC II, Inc., its general
partner
By:
----------------------
Name:
----------------------
Title:
----------------------
SGC PARTNERS II LLC
By:
----------------------
Name:
----------------------
Title:
----------------------
BANCAMERICA CAPITAL INVESTORS
SBIC I, L.P.
By: BancAmerica Capital Management
SBIC I, LLC, its general partner
By: BancAmerica Capital Management I,
L.P., its sole member
By: BACM I GP, LLC, its general partner
By:
----------------------
Name: J. Xxxxxx Xxxx
Title: Managing Director
XXXXX XXXXXXXX ENERGY FUND, L.P.
By:
----------------------
Name:
----------------------
Title:
----------------------
SIGNATURE PAGE
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THE CHASE MANHATTAN BANK
(Successor by merger to
CHASE BANK OF TEXAS, N.A.)
By:
----------------------
Name:
----------------------
Title:
----------------------
BANKERS TRUST COMPANY
By:
----------------------
Name:
----------------------
Title:
----------------------
SIGNATURE PAGE
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EXHIBIT A
TERMINATING AGREEMENTS
1. FIRST AMENDMENT TO SECOND AMENDED AND RESTATED SHAREHOLDERS' AGREEMENT
dated March 31, 2000 among Xxxxx Energy Company, B. Xxxx Xxxxx, Don Wm.
Xxxxxxxx, Energy Capital Investment Company PLC, EnCap Equity 1994 Limited
Partnership, BER Partnership L.P., TJG Investments, Inc., BEC Partnership,
BOC Operating Corporation, Inc., Xxx X. Xxxx, Xxxxxx Xxxxxx, Xxxxx X.
Xxxxxx, EnCap Energy Capital Fund III-B, L.P., BOCP Energy Partners, L.P.,
EnCap Energy Capital Fund III, L.P., Xxxxx Xxxxxxxx Energy Fund, L.P.,
BancAmerica Capital Investors SBIC I, L.P., Eos Partners, L.P., Eos
Partners SBIC, L.P., Eos Partners SBIC II, L.P., and SGC Partners II LLC
2. FIRST AMENDMENT TO STOCK PURCHASE AGREEMENT dated March 31, 2000 among
Energy Capital Investment Company PLC, EnCap Energy Capital Fund III-B,
L.P., BOCP Energy Partners, L.P., EnCap Energy Capital Fund III, L.P.,
Xxxxx Xxxxxxxx Energy Fund, L.P., BancAmerica Capital Investors SBIC I,
L.P., Eos Partners, L.P., Eos Partners SBIC, L.P., Eos Partners SBIC II,
L.P., and SGC Partners II LLC and Xxxxx Energy Company
3. ASSIGNMENT, ACKNOWLEDGMENT, CONSENT AND WAIVER dated March 31, 2000 among
Xxxxx Energy Company, Energy Capital Investment Company PLC, EnCap Energy
Capital Fund III-B, L.P., BOCP Energy Partners, L.P., EnCap Energy Capital
Fund III, L.P., Xxxxx Xxxxxxxx Energy Fund, L.P., BancAmerica Capital
Investors SBIC I, L.P., Eos Partners, L.P., Eos Partners SBIC, L.P., Eos
Partners SBIC II, L.P., SGC Partners II LLC, and Chase Bank of Texas,
National Association
4. ACKNOWLEDGMENT AND CONSENT dated March 31, 2000 among Xxxxx Energy Company,
Energy Capital Investment Company PLC, EnCap Energy Capital Fund III-B,
L.P., BOCP Energy Partners, L.P., EnCap Energy Capital Fund III, L.P.,
Xxxxx Xxxxxxxx Energy Fund, L.P., BancAmerica Capital Investors SBIC I,
L.P., Eos Partners, L.P., Eos Partners SBIC, L.P., Eos Partners SBIC II,
L.P., and SGC Capital Partners II LLC
5. INDEMNIFICATION AGREEMENT dated March 31, 2000 among Xxxxx Energy Company,
Energy Capital Investment Company PLC, EnCap Energy Capital Fund III-B,
L.P., BOCP Energy Partners, L.P., EnCap Energy Capital Fund III, L.P.,
Xxxxx Xxxxxxxx Energy Fund, L.P., BancAmerica Capital Investors SBIC I,
L.P., Eos Partners, L.P., Eos Partners SBIC, L.P., Eos Partners SBIC II,
L.P., SGC Partners II LLC, and Bankers Trust Company
6. SECOND AMENDED AND RESTATED CREDIT AGREEMENT, dated as of September 30,
1999 among Xxxxx Energy Company, Bank of America, N.A. and Certain
Financial Institutions
7. FIRST AMENDMENT TO SECOND AMENDED AND RESTATED SHAREHOLDER'S AGREEMENT
dated August 11, 1999
8. SECOND AMENDED AND RESTATED SHAREHOLDERS' AGREEMENT dated May 14, 1999 by
and among Xxxxx Energy Company, B. Xxxx Xxxxx, Don Wm. Xxxxxxxx, Energy
Capital
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Investment Company PLC, EnCap Equity 1994 Limited Partnership, Xxxxx Energy
Resources, Ltd., TJG Investments, Inc., BargoEnergy Company, Xxx X. Xxxx,
Xxxxxx Xxxxxx, Xxxxx X. Xxxxxx, BargoOperating Company, Inc., EnCap Energy
Capital Fund III-B, L.P., BOCPEnergy Partners, L.P., EnCap Energy Capital
Fund III, L.P., Xxxxx Xxxxxxxx Energy Fund, L.P., BancAmerica Capital
Investors SBIC I, L.P., Eos Partners, L.P., Eos Partners SBIC, L.P., Eos
Partners SBIC II, L.P., and SGC Partners II LLC
9. SBA SIDE LETTER dated May 14, 1999 between Xxxxx Energy Company and
BancAmerica Capital Investors SBIC I, L.P., Eos Partners SBIC, L.P., Eos
Partners SBIC II, L.P., and SGC Partners II LLC
10. SBA SIDE LETTER dated May 14, 1999 between Xxxxx Energy Company, EnCap
Equity 1994 Limited Partnership, TJG Investments, Inc. Xxxxx Energy
Company, Xxxxx Energy Resources, Ltd., Xxxxx Operating Company, Inc., Xxx
X. Xxxx and BancAmerica Capital Investors SBIC I, L.P., Eos Partners SBIC,
L.P., Eos Partners SBIC II, L.P., and SGC Partners II LLC
11. STOCK PURCHASE AGREEMENT dated May 14, 1999 between Xxxxx Energy Company
and Energy Capital Investment Company PLC, EnCap Energy Capital Fund III-B,
L.P., BOCP Energy Partners, L.P., EnCap Energy Capital Fund III, L.P.,
Xxxxx Xxxxxxxx Energy Fund, L.P., BancAmerica Capital Investors SBIC I,
L.P., Eos Partners, L.P., Eos Partners SBIC, L.P., Eos Partners SBIC II,
L.P., and SGC Partners II LLC
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EXHIBIT B
NOTIFICATION ADDRESSES
TO ENCAP ENERGY CAPITAL FUND III, L.P.
c/o EnCap Investments, L.C.
0000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: D. Xxxxxx Xxxxxxxx
Facsimile: 713-659-6130
TO ENCAP ENERGY CAPITAL FUND III-B, L.P.
c/o EnCap Investments, L.C.
0000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: D. Xxxxxx Xxxxxxxx
Facsimile: 713-659-6130
TO BOCP ENERGY PARTNERS, L.P.
c/o EnCap Investments, L.C.
0000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: D. Xxxxxx Xxxxxxxx
Facsimile: 713-659-6130
TO ENERGY CAPITAL INVESTMENT CO. PLC
c/o EnCap Investments, L.C.
0000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxxx X. Xxxxxxxx
Facsimile: 713-659-6130
TO XXXXX XXXXXXXX ENERGY FUND, L.P.
0000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxxxxx X. Xxxxxxxxx
Facsimile: 000-000-0000
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TO BANCAMERICA CAPITAL INVESTORS SBIC, L.P.
000 Xxxxx Xxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Attention: J. Xxxxxx Xxxx
Facsimile: 000-000-0000
TO EOS PARTNERS SBIC, L.P.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx X. Xxxxx
Facsimile: 000-000-0000
TO EOS PARTNERS SBIC II, L.P.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx X. Xxxxx
Facsimile: 000-000-0000
TO EOS PARTNERS, L.P.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx X. Xxxxx
Facsimile: 000-000-0000
TO SGC CAPITAL PARTNERS II LLC
1221 Avenue of the Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: V. Xxxxx Xxxxxx
Facsimile: 000-000-0000
TO XXXXX ENERGY COMPANY
000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxxxxxxx X. Xxxxxxxx
Facsimile: 000-000-0000
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TO XXXX XXXXX
Xxxxx Energy Company
000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxxx Xxxxx
Facsimile: 000-000-0000
TO XXX XXXXXXXX
Mr. Xxx Xxxxxxxx
XX Xxx 000000,
Xxxxxx, XX 00000
TO XXXXX XXXXXX
Xx. Xxxxx Xxxxxx
0000 XxXxxxxx Xxxxxx, Xxxxx 000
Xxxxxx, Xxxxx 00000
TO XXXXXX XXXXXX
Xx. Xxxxxx Xxxxxx
0000 Xxxxxx, Xxxxx 000
Xxxxxxxx, XX 00000
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TO XXXXX ENERGY RESOURCES, LTD.
000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxx X. Xxxx
Facsimile: 000-000-0000
TO BEC ENERGY COMPANY.
000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxx X. Xxxx
Facsimile: 000-000-0000
TO TJG INVESTMENTS, INC.
000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxx X. Xxxx
Facsimile: 000-000-0000
TO BER ENERGY RESOURCES, LTD.
000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxx X. Xxxx
Facsimile: 000-000-0000
TO BOC OPERATING CORPORATION.
000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxx X. Xxxx
Facsimile: 000-000-0000
TO BOCP ENERGY PARTNERS, L.P..
000 Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxx X. Xxxx
Facsimile: 000-000-0000
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TO CHASE BANK OF TEXAS, N.A.
c/o Trust Administrative Agent.
601 xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention:
Facsimile: 000-000-0000
TO BANKERS TRUST COMPANY, N.A.
c/o Deutsche Bank
Attn: Xxxxxxx Doleshak
000 Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Facsimile:
