FOURTH AMENDMENT TO SECURITY AGREEMENT
THIS FOURTH AMENDMENT TO SECURITY AGREEMENT ("Fourth
Amendment") dated as of September 30, 1999, is made between The
Exploration Company of Louisiana, Inc. ("Grantor") and
Construction Specialists, Inc. d/b/a Con-Spec, Inc. ("Lender"),
who agree as follows:
Recitals
WHEREAS, the Grantor and the Lender entered into that
certain Security Agreement dated November 6, 1998, as amended by
that certain First Amendment to Security Agreement dated January
15, 1999, as amended by that certain Second Amendment to Security
Agreement dated as of April 13, 1999, as amended by that certain
Third Amendment to Security Agreement dated as of May 21, 1999
(the "Security Agreement") in order to secure the full and
punctual payment and performance of the indebtedness described
therein (capitalized terms used but not defined herein shall have
the meaning given to them in the Security Agreement); and
WHEREAS, pursuant to Section 11 of the Security
Agreement, the Lender agreed that in the event additional Units
were sold or additional New Funds were provided to XCL Land by
persons other than Lender and secured by partnership interests in
the Partnership, Lender would immediately upon demand (one or
more times, as appropriate) execute further amendments to the
Security Agreement releasing a percentage of the Grantor's
Partnership Interest sufficient to allocate the security
interests in the partnership interest of the Partnership among
the Unit holders or other providers of New Funds on a
proportionate basis (provided that no reduction in such security
interest need be made with respect to amounts of New Funds in
excess of an aggregate of $6,200,000 principal outstanding); and
WHEREAS, an additional $1,500,000 in New Funds has been
provided to XCL Land thereby making the aggregate principal
amount of New Funds outstanding as of September 30, 1999 equal to
$4,200,000 with Lender having contributed $950,000 of such funds;
and
WHEREAS, Grantor has requested that Lender execute this
Fourth Amendment to release a portion of its security interest
and amend the Security Agreement to reflect the Lender's revised
security interest; and
WHEREAS, XCL Land, Ltd. ("XCL Land") (formerly the
general partner of the Partnership) assigned a 1% general
partnership interest in the Partnership to XCL-Texas, Inc. and
withdrew as general partner of the Partnership; and
WHEREAS, XCL Land=s remaining partnership interest was
converted to a limited partnership interest and, thereafter, XCL
Land merged with and into Grantor; and
WHEREAS, as a result of the merger, Grantor succeeded
by operation of law to all of the assets and liabilities of XCL
Land, including but not limited to the Note; and
WHEREAS, as a further result of the merger, Grantor
owns a 99% limited partnership interest in the Partnership and
Grantor acknowledges and agrees that Lender=s security interest
pursuant to the Security Agreement covers Lender=s applicable
percentage of Grantor=s entire 99% limited partnership interest.
NOW, THEREFORE, in consideration of the foregoing
premises and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties
hereto agree as follows:
Section 1. Partial Release of Collateral. Lender
hereby releases the following collateral:
(1) 12.58% of Grantor's now owned or hereafter acquired
Partnership Interest in the Partnership;
(2) 12.58% of any and all monies and other distributions (cash
or property), allocations or payments made or to be made to
Grantor pursuant to the Partnership Agreement or attributable to
the Partnership Interest;
(3) all General Intangibles related in any way to the collateral
described in clauses 1 or 2 above;
(4) all Proceeds and products of all or any of the collateral
described in clauses 1-3 above.
Section 2. Amendments to Security Agreement. The
Security Agreement is hereby amended as follows:
(a) The phrase "XCL Land, Ltd. ("XCL Land")" is
hereby replaced with the word "Grantor."
(b) All other references to "XCL Land" are hereby
replaced with "Grantor."
(c) The reference to "35.2%" in Section 2(A)(1) and
2(A)(2) is hereby deleted and the phrase "22.62%" is substituted
in its place.
(d) The address in Section 8 is hereby amended to
read 3639 Ambassador Caffrey Parkway, Suite 400, Lafayette,
Louisiana 70503.
Section 3. Effect of Amendment. Except as expressly
amended hereby and except as to the collateral released pursuant
hereto, the Security Agreement shall remain in full force and
effect.
Section 4. Titles of Sections. All titles or headings
to sections of this Fourth Amendment are only for the convenience
of the parties and shall not be construed to have any effect or
meaning with respect to the other content of such sections, such
other content being controlling as to the agreement between the
parties hereto.
Section 5. Governing Law. This Fourth Amendment is a
contract made under and shall be construed in accordance with and
governed by the laws of the United States of America and the
State of Louisiana.
Section 6. Counterparts. This Fourth Amendment may be
executed in two or more counterparts, and it shall not be
necessary that the signatures of all parties hereto be contained
on any one counterpart hereof, each counterpart shall be deemed
an original, but all of which when taken together shall
constitute one and the same instrument.
IN WITNESS WHEREOF, the Grantor and the Lender have
caused this Fourth Amendment to be duly executed as of the date
first above written.
WITNESSES: GRANTOR:
THE EXPLORATION COMPANY
OF LOUISIANA, INC.
_________________________ By:________________________________
Name:____________________ Name:___________________________
(Please Print) Title:__________________________
_________________________
Name:____________________
(Please Print)
LENDER:
CONSTRUCTION SPECIALISTS, INC.
d/b/a
CON-SPEC, INC.
_________________________ By:________________________________
Name:____________________ Name:___________________________
(Please Print) Title:__________________________
_________________________
Name:____________________
(Please Print)