-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TbgvbnVAr5rZMxF9naIJO4r9Qe0tEqx4uFEdbgxWLTzUC9acLaObzyRefpyYNyLx mF8ArSMSL8zfCd3kUBDRnw== 0000897423-98-000020.txt : 19980128 0000897423-98-000020.hdr.sgml : 19980128 ACCESSION NUMBER: 0000897423-98-000020 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 19980127 SROS: NYSE GROUP MEMBERS: TPG PARALLEL I, L.P. GROUP MEMBERS: TPG PARTNERS LP GROUP MEMBERS: TPG PARTNERS, L.P. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: DENBURY RESOURCES INC CENTRAL INDEX KEY: 0000945764 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: SEC FILE NUMBER: 005-46317 FILM NUMBER: 98514633 BUSINESS ADDRESS: STREET 1: 17304 PRESTON RD STREET 2: STE 200 CITY: DALLAS STATE: TX ZIP: 75252 BUSINESS PHONE: 2147133000 MAIL ADDRESS: STREET 1: 17304 PRESTON RD STREET 2: STE 200 CITY: DALLAS STATE: TX ZIP: 75252 FORMER COMPANY: FORMER CONFORMED NAME: NEWSCOPE RESOURCES LTD DATE OF NAME CHANGE: 19950627 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: TPG PARTNERS LP CENTRAL INDEX KEY: 0000923167 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 201 MAIN ST STE 2420 CITY: FT WORTH STATE: TX ZIP: 76102 BUSINESS PHONE: 8178714000 MAIL ADDRESS: STREET 1: 201 MAIN ST STE 2420 STREET 2: 201 MAIN ST STE 2420 CITY: FT WORTH STATE: TX ZIP: 76102 SC 13D/A 1 DENBURY RESOURCES INC., SCHED. 13D AMEND. NO. 2 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Schedule 13D** Under the Securities Exchange Act of 1934 (Amendment No. 2)* Denbury Resources Inc. (Name of Issuer) Common Shares (Title of Class of Securities) 24791620 (Cusip Number) James J. O'Brien 201 Main Street, Suite 2420 Fort Worth, Texas 76102 (817) 871-4000 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) January 23, 1998 (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ]. *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). **The total number of shares reported herein is 8,408,038 shares, which constitutes approximately 41.3% of the total number of shares outstanding. All ownership percentages set forth herein asume that there are 20,365,699 shares outstanding. 1. Name of Reporting Person: TPG Partners, L.P. 2. Check the Appropriate Box if a Member of a Group: (a) / / (b) / X / 3. SEC Use Only 4. Source of Funds: 00 - Contributions from Partners 5. Check box if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): / / 6. Citizenship or Place of Organization: Delaware 7. Sole Voting Power: 7,646,050 Number of Shares Beneficially 8. Shared Voting Power: -0- Owned By Each Reporting 9. Sole Dispositive Power: 7,646,050 Person With 10. Shared Dispositive Power: -0- 11. Aggregate Amount Beneficially Owned by Each Reporting Person: 7,646,050 12. Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares: / / 13. Percent of Class Represented by Amount in Row (11): 37.5% 14. Type of Reporting Person: PN 1. Name of Reporting Person: TPG Parallel I, L.P. 2. Check the Appropriate Box if a Member of a Group: (a) / / (b) / X / 3. SEC Use Only 4. Source of Funds: 00 - Contributions from Partners 5. Check box if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): / / 6. Citizenship or Place of Organization: Delaware 7. Sole Voting Power: 761,988 Number of Shares Beneficially 8. Shared Voting Power: -0- Owned By Each Reporting 9. Sole Dispositive Power: 761,988 Person With 10. Shared Dispositive Power: -0- 11. Aggregate Amount Beneficially Owned by Each Reporting Person: 761,988 12. Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares: / / 13. Percent of Class Represented by Amount in Row (11): 3.7% 14. Type of Reporting Person: PN Pursuant to Rule 13d-2(a) of Regulation 13D-G of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended (the "Act"), the undersigned hereby amend their Schedule 13D Statement dated December 29, 1995, as amended by Amendment No. 1 dated October 30, 1996 (the "Schedule 13D"), relating to the Common Shares, without par value, of Denbury Resources Inc. Unless otherwise indicated, all defined terms used herein shall have the same meanings ascribed to them in the Schedule 13D. Item 3. Source and Amount of Funds or Other Consideration. Item 3 is hereby amended and restated in its entirety to read as follows: Reporting Person Source of Funds Amount of Funds TPG Contributions of Partners $49,336,255.66 Parallel Contributions of Partners $ 4,916,744.34 Item 4. Purpose of Transaction. Item 4 is hereby amended by adding the following at the end thereof: On January 20, 1998, the Reporting Persons exercised all of the Warrants held by them and, as more fully set forth in Item 6 herein, TPG and the Issuer entered into a Stock Purchase Agreement pursuant to which TPG agreed, subject to the terms thereof, to purchase additional shares of the Common Stock from the Issuer for a total purchase price of $5,000,000. The matters set forth in Item 6 hereof hereby are incorporated in this Item 4 by reference. Except as set forth in this Item 4, the Reporting Persons have no present plans or proposals that relate to or that would result in any of the actions specified in clauses (a) through (j) of Item 4 of Schedule 13D of the Act. Item 5. Interest in Securities of the Issuer. Item 5 is hereby amended and restated in its entirety to read as follows: (a) TPG The aggregate number of Common Shares that TPG owns beneficially, pursuant to Rule 13d-3 of the Act, is 7,646,050, which constitutes approximately 37.5% of the 20,365,699 Common Shares deemed outstanding pursuant to Rule 13d-3(d)(1)(i) of the Act. Parallel The aggregate number of Common Shares that Parallel owns beneficially, pursuant to Rule 13d-3 of the Act, is 761,988, which constitutes approximately 3.7% of the 20,365,699 Common Shares deemed outstanding pursuant to Rule 13d-3(d)(1)(i) of the Act. To the best of the knowledge of each of the Reporting Persons, other than as set forth above, none of the persons named in Item 2 herein is the beneficial owner of any Common Shares. (b) TPG Acting through its sole general partner, TPG GenPar, L.P., acting through its sole general partner, TPG Advisors, Inc., TPG has the sole power to vote or direct the vote and to dispose or direct the disposition of 7,646,050 Common Shares. Parallel Acting through its sole general partner, TPG GenPar, L.P., acting through its sole general partner, TPG Advisors, Inc., Parallel has the sole power to vote or direct the vote and to dispose or direct the disposition of 761,988 Common Shares. (c) On January 20, 1998, TPG and Parallel exercised 568,358 and 56,642 Warrants, respectively, to purchase a like number of shares of the Common Stock at a price of $7.40 per share. In addition, as set forth in Item 6 below, on January 20, 1998, TPG and the Issuer entered into a Stock Purchase Agreement pursuant to which TPG has agreed to purchase additional shares of the Common Stock from the Issuer for an aggregate price of $5,000,000. Except as set forth herein or in the Exhibits filed herewith, to the best of the knowledge of the Reporting Persons, none of the persons named in response to paragraph (a) has effected any transactions in Common Shares during the past 60 days. (d) Each of the Reporting Persons affirms that no person other than such Reporting Person has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the Common Shares owned by such Reporting Person. (e) Not applicable. Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer. Item 6 is hereby amended by adding the following at the end thereof: On January 20, 1998, TPG and the Issuer entered into a Stock Purchase Agreement (the "Stock Purchase Agreement"). On the same date TPG, Parallel and the Issuer entered into (i) an amendment to the Registration Rights Agreement dated December 21, 1995, by and among the same parties (the "Registration Rights Amendment"), and (ii) an agreement relating to the waiver by TPG of its preemptive rights (the "Preemptive Rights Wavier") in connection with the Issuer's pending public offering of $100,000,000 of its Common Stock (the "Public Offering"). The description herein of the Stock Purchase Agreement, the Registration Rights Amendment and the Preemptive Rights Waiver are not, and do not purport to be, complete and are qualified in their entirety by reference to copies of such agreements which are attached hereto as Exhibits 10.5, 4.5 and 10.6, respectively. Stock Purchase Agreement Pursuant to the Stock Purchase Agreement, TPG agreed, subject to the conditions set forth therein, to purchase shares of the Common Stock from the Issuer for a total purchase price of $5,000,000. TPG's obligation to purchase the shares of Common Stock are subject to and conditioned upon (i) the closing of the Public Offering, (ii) the effectiveness of a registration statement relating to the shares being purchased by TPG, and (iii) the delivery to TPG of a final prospectus relating to its purchase of shares. The purchase price per share for the shares to be purchased by TPG shall be the price per share of the Common Stock to the public in the Public Offering less underwriting discounts and commissions; provided, however, that the purchase price shall be subject to approval of the Toronto Stock Exchange ("TSE"), and in the event that the TSE does not approve such purchase price, the purchase price shall be 100% of the price per share to the public in the Public Offering. TPG has agreed not to sell or otherwise dispose of any of the shares of Common Stock purchased by it under the Stock Purchase Agreement for a period of six months from the date of the closing of the Public Offering without the prior consent of the TSE. Registration Rights Amendment The Registration Rights Amendment amends the Registration Rights Agreement to provide that shares of the Common Stock acquired by TPG under the Stock Purchase Agreement will constitute "Subject Common Shares" as defined in the Registration Rights Agreement and will thus be eligible for the benefits of such agreement. Preemptive Rights Waiver Pursuant to the Preemptive Rights Waiver, TPG waived its rights to purchase additional shares of the Common Stock of the Issuer in the Public Offering so as to maintain its pro rata ownership in the equity securities of the Issuer. TPG's waiver of its preemptive rights with respect to the Public Offering shall expire if the Public Offering shall not have occurred by March 31, 1998. Except as set forth herein or in the exhibits filed herewith, there are no contracts, arrangements, understandings or relationships with respect to the shares of the capital stock of the Issuer owned by the Reporting Persons. Item 7. Material to be Filed as Exhibits. Item 7 is hereby amended and restated in its entirety to read as follows: Exhibit 3(i) -- Articles of Amendment to Articles of Continuance of Newscope Resources Ltd., dated December 21, 1995, (containing the Series Provisions attaching to the Convertible First Preferred Shares, Series A).(previously filed) Exhibit 4.1 -- Warrant Issued to TPG Partners, L.P. (previously filed) Exhibit 4.2 -- Warrant Issued to TPG Parallel I, L.P. (previously filed) Exhibit 4.3 -- Registration Rights Agreement by and among TPG Partners, L.P., TPG Parallel I, L.P. and Newscope Resources Ltd. (previously filed) Exhibit 4.4 -- Amendment to Registration Rights Agreement by and among Denbury Resources Inc., TPG Partners, L.P. and TPG Parallel I, L.P. dated October 22, 1996.(previously filed) Exhibit 4.5 -- Amendment to Registration Rights Agreement by and among Denbury Resources Inc., TPG Partners, L.P. and TPG Parallel I, L.P. dated January 20, 1998. Exhibit 10.1 -- Securities Purchase Agreement by and between TPG Partners, L.P. and Newscope Resources Ltd., dated November 13, 1995 (Exhibits and Appendices intentionally omitted). (previously filed) Exhibit 10.2 -- First Amendment to Securities Purchase Agreement by and among TPG Partners, L.P., TPG Parallel I, L.P. and Newscope Resources Ltd., dated December 21, 1995 (Appendix intentionally omitted). (previously filed) Exhibit 10.3 -- Stock Purchase Agreement by and among TPG Partners, L.P. and Denbury Resources, Inc., dated October 2, 1996.(previously filed) Exhibit 10.4 -- Agreement in respect of the Convertible First Preferred Shares, Series A and the Common Shares, no par value of Denbury Resources Inc. by and among TPG Partners, L.P., TPG Parallel I, L.P. and Denbury Resources Inc. dated August 29, 1996.(previously filed) Exhibit 10.5 -- Stock Purchase Agreement by and among TPG Partners, L.P. and Denbury Resources, Inc., dated January 20, 1998. Exhibit 10.6 -- Agreement in respect of the Warrants by and among Denbury Resources Inc., TPG Partners, L.P., and TPG Parallel I, L.P. dated January 20, 1998. Exhibit 99.1 -- Agreement pursuant to Rule 13d-1(f)(1)(iii). After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. DATED: January 27, 1998 TPG PARTNERS, L.P., a Delaware limited partnership By: TPG GenPar, L.P., a Delaware limited partnership, General Partner By: TPG Advisors, Inc., a Delaware corporation, General Partner By: /s/ James J. O'Brien James J. O'Brien, Vice President TPG PARALLEL I, L.P., a Delaware limited partnership By: TPG GenPar, L.P., a Delaware limited partnership, General Partner By: TPG Advisors, Inc., a Delaware corporation, General Partner By: /s/ James J. O'Brien James J. O'Brien, Vice President EX-4.5 2 AMENDMENT TO REGISTRATION RIGHTS AGREEMENT Exhibit 4.5 AMENDMENT TO REGISTRATION RIGHTS AGREEMENT This AMENDMENT TO REGISTRATION RIGHTS AGREEMENT is dated as of January 20, 1998, and is by and among DENBURY RESOURCES INC., a Canadian corporation (the "Company"), TPG PARTNERS, L.P., a Delaware limited partnership ("TPG"), and TPG PARALLEL I, L.P., a Delaware limited partnership ("Parallel"). W I T N E S S E T H WHEREAS, the Company, TPG and Parallel are parties to that certain Registration Rights Agreement effective as of December 21, 1995 (the "Registration Rights Agreement"); WHEREAS, the Company and TPG are parties to that certain Stock Purchase Agreement dated as of January 20, 1998 (the "Stock Purchase Agreement"), whereby TPG has agreed to purchase $5,000,000 of the Company's Common Shares (the "Shares"); and WHEREAS, the parties desire to amend herein the Registration Rights Agreement so that the benefits accruing to TPG and Parallel thereunder shall likewise apply to the Shares to be purchased pursuant to the Stock Purchase Agreement. NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereto hereby agree as follows: 1. Section 1(i) of the Registration Rights Agreement hereby is amended in its entirety to read as follow: (i) "Subject Common Shares" means the Common Shares to be acquired pursuant to the Securities Purchase Agreement, the Common Shares issuable upon exercise of the Warrants and upon conversion of the Series A Preferred Shares distributed in respect of such Subject Common Shares, any equity security into which the original Subject Common Shares are converted, and the Common Shares to be acquired pursuant to those two certain Stock Purchase Agreements dated as of October 2, 1996, and January 20, 1998, by and between the Company and TPG. 2. Except as amended hereby, the Registration Rights Agreement remains in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment to Registration Rights Agreement effective as of the date first above written. DENBURY RESOURCES INC. By: _______________________________________ Phil Rykhoek, Chief Financial Officer TPG PARTNERS, L.P. By: TPG GenPar, L.P., its general partner By: TPG Advisors, Inc., its general partner By: ___________________________ James O'Brien, Vice President TPG PARALLEL I, L.P. By: TPG GenPar, L.P., its general partner By: TPG Advisors, Inc., its general partner By: ___________________________ James O'Brien, Vice President EX-10.5 3 STOCK PURCHASE AGREEMENT STOCK PURCHASE AGREEMENT THIS STOCK PURCHASE AGREEMENT ("Agreement") is entered into as of the 20th day of January, 1998 by and between Denbury Resources, Inc. ("Company") and TPG Partners, L.P. ("Buyer"). W I T N E S S E T H WHEREAS, the Company is offering $100,000,000 of its Common Shares ("Common Shares"), no par value, to the public in an offering ("Public Offering") through a syndicate of underwriters ("Underwriters"); and WHEREAS, concurrent with and conditioned upon the closing of the Public Offering, the Company desires to sell to Buyer, and Buyer desires to purchase from Company, $5,000,000 of the Company's Common Shares (the "Shares") pursuant to a registered offering on the terms and conditions set forth herein; NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: ARTICLE 1 PURCHASE AND SALE OF SHARES 1.1 Purchase and Sale of Shares. Subject to the conditions set forth in Section 1.3 hereof, the Company agrees to sell the Shares to Buyer and Buyer agrees to purchase the Shares from the Company for a total purchase price of $5,000,000, on the terms and conditions set forth in this Agreement (the "TPG Offering"). 1.2 Purchase Price. The purchase price per Share for the Shares shall be the price per share of the Common Shares to the public in the Public Offering less underwriting discounts and commissions, as set forth in the final prospectus relating to the Public Offering; provided, however, that such purchase price shall be subject to approval by the Toronto Stock Exchange ("TSE"). In the event that the TSE does not approve such purchase price, the purchase price of the Shares shall be 100% of the price per share to the public in the Public Offering. 1.3 Conditions Precedent. The Company's obligation to sell and Buyer's obligation to buy the Shares is subject to and conditioned upon (i) the closing of the Public Offering, (ii) the effectiveness of a Registration Statement relating to the TPG Offering, and (iii) the delivery to Buyer of a final prospectus relating to the TPG Offering. 1.4 Closing. The purchase and sale of the Shares shall be consummated at a closing to be held simultaneously with the closing of the Public Offering, or at such other date as the parties shall agree. At the closing, the following documents shall be exchanged: A. In payment of the purchase price for the Shares, Buyer shall deliver immediately available funds to the Company by wire transfer to NationsBank of Texas, N.A., for the Account of Denbury Resources Inc. B. The Company shall deliver the certificate(s) representing the Shares to Buyer. C. Buyer and the Company shall execute and deliver each to the other at the closing a cross receipt for the certificate(s) representing the Shares and the funds representing the purchase price of the Shares, respectively. 1.5 Assignment to Affiliates. Buyer may assign all or any portion of its rights to purchase the Shares under this Agreement to any one of its affiliates having TPG GenPar, L.P., as its general partner, including TPG Parallel I, L.P. ARTICLE 2 REPRESENTATIONS AND WARRANTIES OF BUYER 2.1 Informed Investor. Buyer holds the position of an affiliate of the Company for the purpose of Rule 144 promulgated pursuant to the Securities Act of 1933 (the "Act"), and by reason of such position has access to substantial information regarding the Company's finances, properties, assets and liabilities, and business prospects. Such information is sufficient to permit Buyer to make an informed investment in the Shares. 2.2 Sophisticated Investor. By reason of Buyer's business and financial expedience (and the business and financial experience of any persons retained by Buyer to advise him with respect to his investment in the Shares), Buyer (together with such advisors, if any) has such knowledge, sophistication and experience in business and financial matters as to be capable o evaluating the merits and risks of the investment in the Shares. 2.3 No Distribution Intent. Buyer represents to the Company that it is not acquiring the Shares with a view to, nor does it have any current intent to engage in, a distribution of the Shares. Buyer acknowledges that as an affiliate under Rule 144, Buyer may only resell the Shares in accordance with the applicable terms and conditions of Rule 144 (other than Rule 144(d)), including restrictions on the volume of Shares that may be resold and the manner of sale. 2.4 Authority; No Consent. Upon execution and delivery by Buyer, this Agreement will constitute the legal, valid, and binding obligation of Buyer, enforceable against Buyer in accordance with its terms. Buyer has the absolute and unrestricted right, power, and authority to execute and deliver this Agreement and to perform its obligations under this Agreement. Buyer is not and will not be required to obtain any consent from any person in connection with the execution and delivery of this Agreement or the consummation or performance of any of the transactions contemplated hereby. 2.5 No Violation. Buyer represents and warrants that neither the execution and performance of this Agreement nor the consummation of the transactions contemplated hereby will (i) conflict with, or result in a breach of the terms, conditions and provisions of, or constitute a default under, its organizational documents, any agreement, indenture or other instrument under which it is bound, or (ii) violate or conflict with any judgment, decree, order, statute, rule, regulation or administrative proceedings or lawsuits, pending or threatened, of any court or any public, governmental or regulatory agency or body having jurisdiction over him or his properties or assets. 2.6 The Toronto Stock Exchange. Buyer undertakes not to sell or otherwise dispose of any of the Common Shares purchased pursuant to this Agreement, or an securities derived therefrom, for a period of six (6) months from the date of the closing of the Public Offering, without the prior consent of The Toronto Stock Exchange and any other regulatory body having jurisdiction. ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 3.1 Shares. The Shares will be duly authorized and when issued in accordance with this Agreement and upon the payment of the purchase price set forth in Section 1.2 hereof, will be duly and validly issued, fully paid and nonassessable and the Company will deliver an opinion of Jenkens & Gilchrist, a Professional Corporation, to that effect at the closing. 3.2 Authority; No Consent. Upon the execution and delivery by the Company of this Agreement, this Agreement will constitute the legal, valid, and binding obligation of the Company, enforceable against it in accordance with its terms. The Company has the absolute and unrestricted right, power, and authority to execute and deliver this Agreement and to perform its obligations under this Agreement. The Company is not and will not be required to obtain any consent from any person in connection with the execution and delivery of this Agreement or the consummation or performance of any of the transactions contemplated hereby. ARTICLE 4 MISCELLANEOUS 4.1 Entire Agreement. This Agreement sets forth the entire agreement and understanding of the parties with respect to the transactions contemplated hereby, and supersedes all prior agreements, arrangements, and understandings relating to the subject matter hereof. 4.2 Notices. All notices, payments and other required communications ("Notices") to the parties shall be in writing, and shall be addressed, respectively, as follows: If to Company: Denbury Resources Inc. 17304 Preston Road, Suite 200 Dallas, Texas 75252 Attn: Phil Rykhoek If to Buyer: TPG Partners, L.P. 201 Main Street, Suite 2420 Fort Worth, Texas 76102 Attn: James J. O'Brien All Notices shall be given (i) by personal delivery, or (ii) by electronic communication, with a confirmation sent by registered or certified mail, return receipt requested, or (iii) by registered or certified mail, return receipt requested. All Notices shall be deemed delivered (i) if by personal delivery, on the date of delivery if delivered during normal business hours, and, if not delivered during normal business hours, on the next business day following delivery, (ii) if by electronic communication, on the date of receipt of the electronic communication, and (iii) if solely by mail, on the date of deposit of the mailing in an official U.S. post office mail depository. A party may change its address by Notice to the other party. 4.3 Applicable Law and Venue. All questions concerning the construction, validity and interpretation of this Agreement shall be governed by the internal laws, and not the law of conflicts, of the State of Texas. Any legal action relating to this Agreement shall be brought only in a court of competent jurisdiction in Dallas County, Texas or in the United States District Court for the Northern District of Texas, Dallas Division. 4.4 Attorney's Fees. If any legal action is brought by any party hereto, it is expressly agreed that the prevailing party in such legal action shall be entitled to recover from the other party reasonable attorneys' fees in addition to any other relief that may be awarded. For the purposes of this Section, the "prevailing party" shall be the party in whose favor final judgment is entered. In the event that declaratory or injunctive relief alone is granted, the court may determine which, if either, of the parties is the prevailing party. The amount of reasonable attorneys' fees shall be determined by the court. 4.5 Waiver. The failure of a party to insist on the strict performance of any provision of this Agreement or to exercise any right, power or remedy upon a breach hereof shall not constitute a waiver of any provision of this Agreement or limit the party's right thereafter to enforce any provision or exercise any right. 4.6 Severability. If any term, provision, covenant, or restriction of this Agreement is held by the final, nonappealable order of a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the terms, provisions, covenants, and restrictions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. 4.7 Amendments. This Agreement may be amended, modified, or superseded only by written instrument executed by all parties hereto. 4.8 Headings. The Article and Section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent or for any purpose, to limit or define the text of any Article or Section. 4.9 Gender and Number. Whenever required by the context, as used in this Agreement, the singular number shall include the plural and the neuter shall include the masculine or feminine gender, and vice versa. 4.10 Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which together shall constitute one agreement binding on all parties hereto, notwithstanding that all the parties have not signed the same counterpart. IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first above written. Company: DENBURY RESOURCES INC. By: __________________________ Phil Rykhoek Chief Financial Officer Buyer: TPG PARTNERS, INC. By: TPG GenPar, L.P. its General Partner By: ____________________ James J. O'Brien Vice President EX-10.6 4 AGREEMENT IN RESPECT OF THE WARRANTS AGREEMENT THIS AGREEMENT ("Agreement") in respect of the warrants (the "Warrants") entitling TPG to purchase Common Shares, no par value (the "Common Shares"), of Denbury Resources Inc., a Canadian corporation (the "Company"), held by TPG Partners, L.P. and TPG Parallel, L.P., both Delaware limited partnerships (collectively, "TPG"), is entered into as of the 20th day of January, 1998. W I T N E S S E T H WHEREAS, the Company and TPG are parties to that certain Securities Purchase Agreement (the "Securities Purchase Agreement"), dated effective as of November 13, 1995, whereby TPG purchased: (i) 8,333,333 Common Shares, (ii) 1,500,000 Preferred Shares, and (iii) warrants (the "Warrants") entitling TPG to purchase 1,250,000 Common Shares, for a total consideration of $40,000,000 under the terms, mutual covenants and agreements set forth in the Securities Purchase Agreement and in appendices thereto (all numbers of Common Shares as stated in this paragraph have not bee adjusted to reflect the one-for-two reverse split of Common Shares, effective October 10, 1996); and WHEREAS, the Company and TPG desire to waive certain of TPG's preemptive rights to purchase Common Shares to better position the Company for an upcoming underwritten public offering in the United States by the company of up to $100,000,000 of its Common shares (the "Offering"), which is expected to occur in early 1998. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: ARTICLE 1 Waiver of Preemptive Rights TPG hereby waives its rights, pursuant to Section 4.18(a) of the Securities Purchase Agreement, to purchase or acquire equity securities of the Company identical to securities offered by the Company in order to maintain its pro rata ownership in the equity securities of the Company, with respect only to the issuance of Common Shares pursuant to the Offering. TPG furthermore waives its right, pursuant to Section 4.18(b) of the Securities Purchase Agreement, to receive a written notice from the Company of the terms of the issuances of the Common Shares set forth above and other matters set forth in Section 4.18(a). ARTICLE 2 Miscellaneous Section 2.1 Severability. If any term, provision, covenant, or restriction of this Agreement is held by the final, nonappealable order of a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the terms, provisions, covenants, and restrictions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. Section 2.2 Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which together shall constitute one agreement binding on all parties hereto, notwithstanding that all the parties have not signed the same counterpart. Section 2.3 Expiration. Notwithstanding anything to the contrary contained herein, the agreements of TPG set forth in Article 1 of this Agreement shall expire if the Offering shall not have occurred by March 31, 1998. IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first above written. THE COMPANY: Denbury Resources Inc. By: _______________________________________ Phil Rykhoek, Chief Financial Officer TPG: TPG Partners, L.P. By: TPG GenPar, L.P., its general partner By: TPG Advisors, Inc., its general partner By: ___________________________ James O'Brien, Vice President TPG Parallel, L.P. By: TPG GenPar, L.P., its general partner By: TPG Advisors, Inc., its general partner By: ___________________________ James O'Brien, Vice President EX-99.1 5 JOINT FILING AGREEMENT FOR SCHED. 13D AMEND. NO. 2 Exhibit 99.1 Pursuant to Rule 13d-1(f)(1)(iii) of Regulation 13D-G of the General Rules and Regulations of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, the undersigned agrees that the statement to which this Exhibit is attached is filed on behalf of each of them in the capacities set forth below. TPG PARTNERS, L.P., a Delaware limited partnership By: TPG GenPar, L.P., a Delaware limited partnership, General Partner By: TPG Advisors, Inc., a Delaware corporation, General Partner By: /s/ James J. O'Brien James J. O'Brien, Vice President TPG PARALLEL I, L.P., a Delaware limited partnership By: TPG GenPar, L.P., a Delaware limited partnership, General Partner By: TPG Advisors, Inc., a Delaware corporation, General Partner By: /s/ James J. O'Brien James J. O'Brien, Vice President -----END PRIVACY-ENHANCED MESSAGE-----