Document:

ex10_2.htm

Exhibit 10.2

Wells Ranch #42-6

Lease No. 688000

ASSIGNMENT OF WORKING INTEREST

This Assignment made this 2nd day of May 2004 from PETROLEUM DEVELOPMENT CORPORATION, a Nevada Corporation, (herein called "Assignor") to PDC 2004-A, Limited Partnership, (herein called "Assignee");

WITNESSETH

Assignor, for the sum of One Dollar ($1.00) and other valuable consideration, the receipt of which is hereby acknowledged, does by these presents GRANT, BARGAIN, SELL, EXCHANGE, CONVEY, ASSIGN, TRANSFER, SET OVER and DELIVER unto Assignee all of the following:

1.     The specific undivided Interest shown In Exhibit A in respect of each of the oil and gas leases shown in Exhibit A, but only to the extent such leases cover lands and depths necessary for production of the specific oft and gas well identified In Exhibit A. This is intended to be a "wellbore assignment."
Assignee shall be entitled to receive that share of production from the well Identified in Exhibit A which is attributable to the undivided Interest here being assigned, but the Assignee shall have, as a result of this Assignment, no Interest whatsoever in any other oil and gas well, whether now existing or hereafter drilled, which may be located on the lands described in Exhibit A or on any land pooled therewith. Assignor expressly excepts from this Assignment and reserves to itself, its successors and assigns,
the remainder of the lease and the leasehold oil and gas estate, including (without limitation) the right to produce other wells which are or may be located on the lands described In Exhibit A and lands pooled therewith, without the obligation to account to Assignee for any such other production.

2.     The specific undivided interest shown in Exhibit A In all valid unitization, pooling, operating and communitization agreements, declarations and orders Involving the leasehold interests here being assigned, but only to the extent that such agreements, declarations and orders relate to the well specifically
identified in Exhibit A and in all other respects limited to the manner as set forth in Paragraph 1, above.

3.     The specific undivided interest shown In Exhibit A in all valid oil and gas sales, purchase, exchange and processing contracts, but only to the extent that such contracts relate to the well specifically identified in Exhibit A and in all other respects limited in the manner set forth In Paragraph 1, above.

4.     The specific undivided interest shown in Exhibit A In all personal property, improvements, lease and well equipment, easements, permits, licenses, servitudes and rights-of-way now owned by Assignor and being used in connection with The operation of the well specifically identified in Exhibit A or in
connection with the production, treating, storing, transportation or marketing of oil, gas and other minerals from that well, but in all respects limited in the manner set forth in Paragraph 1, above.

TO HAVE AND TO HOLD the interests described unto Assignee, its successors and assigns, forever.

This Assignment is made without warranties of any type (whether of title, merchantability or fitness for a particular use), either express or implied, but is made with full substitution of Assignee In all covenants and warranties previously given or made by others, but only to the extent of the interests here assigned. Assignor does, however,
expressly intend that this Assignment convey any title that Assignor may hereafter acquire to the extent that such after-acquired title may be necessary to fulfill the interests herein assigned.

Assignee shall bear its proportionate share of all burdens on production now of record and hereby assumes its proportionate share of all other obligations that relate to the well specifically identified in Exhibit A and the production therefrom.

Both Assignor and Assignee hereby agree to execute and deliver such additional instruments, notices, division orders, transfer orders and other documents as may reasonably be requested by the other, and to do such other acts and things, as may be necessary or convenient to accomplish this Assignment in the manner and to the extent described
in Paragraph 1, above.

  

  

  

Wells Ranch #42-5

Lease No. 669000

IN WITNESS WHEREOF. Petroleum Development Corporation has executed and delivered this instrument, with the intention that it shall be effective as of the date of first production from the well specifically identified in Exhibit A.

	  	
PETROLEUM DEVELOPMENT CORPORATION

	  	
A Nevada Corporation

	  	  	  
	  	
BY:
	
/s/ William D. Gainor

	  	  	
William D. Gainor

	  	  	
Land Manager

	
STATE OF WEST VIRGINIA
	  	
)
	  
	  	  	
)
	
TO-WIT:

	
COUNTY OF HARRISON
	  	
)
	  

The foregoing instrument was acknowledged before me this 6th day of May 2004 by William D. Galnor, Land Manager of Petroleum Development Corporation, a Nevada Corporation, for and on behalf of the Corporation.
He executed the foregoing for the purposes therein contained.

	
OFFICIAL SEAL
	  	
/s/ Rita A. Clark

	
Notary Public, State of West Virginia
	  	
Rita A. Clark

	
RITA A. CLARK
	  	
Notary Public -
	
State of West Virginia

	
Petroleum Development Corporation
	  	  	
County of Harrison

	
103 East Main Street, Box 26
	  	
My Commission expires: June 2, 2009

	
Bridgeport, WV 26330
	  	  	  
	
My commission expires June 2, 2009
	  	  	  

This instrument was prepared by:

Petroleum Development Corporation

103 East Main Street

P. O. Box 26

Bridgeport, WV 26330

Ph: 1-800-624-3821 or 304-842-6256

  

  

  

Wells Ranch 42-5

Lease No. 688000

AMENDMENT TO

ASSIGNMENT OF WORKING INTEREST

THIS AMENDMENT TO ASSIGNMENT OF WORKING INTEREST is made March 2, 2006 between Petroleum Development Corporation, a Nevada corporation, and PDC 2004-A Limited Partnership, a West Virginia limited partnership whose address is P. O. Box 26, Bridgeport, West Virginia 26330.

1.     Background. By this instrument, the parties correct and amend the Assignment of Working Interest (the "Original Assignment"), dated May 2, 2004 and recorded as Instrument No. 3220266 in the real property records of Weld County, Colorado.

2.    Amendment. Petroleum Development Corporation and PDC 2004-A Limited Partnership hereby amend the Original Assignment by deleting in its entirely the Exhibit A that is attached to the Original Assignment and replacing it with the Exhibit A that is attached to this instrument. All other provisions of the Original
Assignment are unchanged.

3.    Effective Date. The parties intend that this amendment be deemed effective at the effective date of the Original Assignment, just as if the Exhibit A that is attached to this instrument had originally been attached to the Original Assignment.

IN WITNESS WHEREOF, this instrument has been executed by the parties.

	  	
PDC 2004-A LIMITED PARTNERSHIP

	  	  
	  	
By:
	
Petroleum Development Corporation

	  	  
	  	
By:
	
/s/ Ersel E. Morgan, Jr

	  	  	
Ersel E. Morgan, Jr. as Vice President

	
STATE OF WEST VIRGINIA
	  	
§
	  
	  	  	
§
	
ss

	
COUNTY OF HARRISON
	  	
§
	  

The foregoing  instrument was acknowledged before me this 5th day of April, 2006, by Ersel E.
Morgan, as Vice President of Petroleum Development Corporation, the Managing General Partner of PDC 2004-A Limited Partnership, a West Virginia limited partnership.

Witness my hand and official seal.

	
OFFICIAL SEAL
	  	
/s/ Rita A. Clark

	
Notary Public, State of West Virginia
	  	
Rita A. Clark as Notary Public

	
RITA A. CLARK
	  	
Harrison County, West Virginia

	
Petroleum Development Corporation
	  	  	  
	
103 East Main Street, Box 26
	  	
My Commission expires: June 2, 2009

	
Bridgeport, WV 26330
	  	  	  
	
My commission expires June 2, 2009
	  	  	  

 

  

  

  

EXHIBIT "A”

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 42-5
	
Anadarko E & P Co., LP and Anadarko Land Corp.
	
12-18-2002
	
3040480
	
T5N, R63W Sec. 5: SE4NE4
	
Weld
	
Colorado
	
0.7998344
	
688000

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
State 21-4
	
State of Colorado
	
06-01-1981
	
2153523
	
T5N, R63W Sec. 4: NE4NW4
	
Weld
	
Colorado
	
0.999793
	
678900

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 32-5
	
Anadarko E & P Co. and Anadarko Land Corp.
	
12-18-2002
	
3040480
	
T5N, R63W Sec. 5: SW4NE4
	
Weld
	
Colorado
	
0.7998344
	
688000

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 41-5
	
Anadarko E & P Co. and Anadarko Land Corp.
	
12-18-2002
	
3040480
	
T5N, R63W Sec. 5: NE4NE4
	
Weld
	
Colorado
	
0.7998344
	
688000

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
State 13-4
	
State of Colorado
	
06-01-1981
	
2153523
	
T5N, R63W Sec. 4: NW4SW4
	
Weld
	
Colorado
	
0.999793
	
679300

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
State 23-4
	
State of Colorado
	
06-01-1981
	
2153523
	
T5N, R63W Sec. 4: NE4SW4
	
Weld
	
Colorado
	
0.999793
	
679300

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 32-2
	
Wells Ranch
	
02-20-2004
	
3162341
	
T5N, R63W Sec. 2: SW4NE4
	
Weld
	
Colorado
	
0.999793
	
687600

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Cattleman 24-31D
	
Farr Farms Company
	
11-18-1981
	
1876411
	
T6N, R64W Sec. 31: SE4SW4
	
Weld
	
Colorado
	
0.999793
	
639700

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 12-3
	
Anadarko E & P Co. and Anadarko Land Corp,
	
11-28-2002
	
3030427
	
T5N, R63W Sec. 3: SW4NW4
	
Weld
	
Colorado
	
0.7998344
	
691100

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Cattleman 14-31D
	
Farr Farms Company
	
11-18-1981
	
1876411
	
T6N, R64W Sec. 31: SW4SW4
	
Weld
	
Colorado
	
0.999793
	
639700

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 21-3
	
Anadarko E & P Co. and Anadarko Land Corp.
	
11-28-2002
	
3030427
	
T5N, R63W Sec. 3: NE4NW4
	
Weld
	
Colorado
	
0.7998344
	
691100

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 41-3
	
Anadarko E & P Co. and Anadarko Land Corp.
	
11-28-2002
	
3030427
	
T5N, R63W Sec. 3: NE4NE4
	
Weld
	
Colorado
	
0.7998344
	
691100

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Cattleman 23-31D
	
Farr Farms Company
	
11-18-1981
	
1876411
	
T6N, R64W Sec. 31: NE4SW4
	
Weld
	
Colorado
	
0.999793
	
639700

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 13-11
	
Anadarko E & P Company
	
05-05-2003
	
3158654
	
T5N, R63W Sec. 11: NW4SW4
	
Weld
	
Colorado
	
0.7998344
	
688200

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 24-11
	
Anadarko E & P Co.
	
05-05-2003
	
3158654
	
T5N, R63W Sec. 11: SE4SW4
	
Weld
	
Colorado
	
0.7998344
	
688200

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Cattleman 13-31D
	
Farr Farms Company
	
11-18-1981
	
1876411
	
T6N, R64W Sec. 31: NW4SW4
	
Weld
	
Colorado
	
0.999793
	
639700

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 14-11
	
Anadarko E & P Co. and Anadarko Land Corp.
	
05-05-2003
	
3158654
	
T5N, R63W Sec. 11: SW4SW4
	
Weld
	
Colorado
	
0.7998344
	
688200

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 24-1
	
Anadarko E & P Co. and Anadarko Land Corp.
	
10-03-2003
	
3230201
	
T5N, R63W Sec. 1: SESW
	
Weld
	
Colorado
	
0.799S344
	
691000

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 24-33
	
Anadarko E & P Co. and Anadarko Land Corp.
	
12-23-2002
	
3225680
	
T6N, R63W Sec. 33: SESW
	
Weld
	
Colorado
	
0.7998344
	
688400

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 23-1
	
Anadarko E & P Co. and Anadarko Land Corp.
	
10-03-2003
	
3230201
	
T5N, R63W Sec. 1: NE4SW4
	
Weld
	
Colorado
	
0.7998344
	
691000

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 23-34
	
Wells Ranch
	
03-23-1988
	
2136098
	
T6N, R63W Sec. 34: NESW
	
Weld
	
Colorado
	
0.999793
	
651500

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 23-33
	
Anadarko E & P Co. and Anadarko Land Corp.
	
12-23-2002
	
3225680
	
T6N,R63WSec. 33:NESW
	
Weld
	
Colorado
	
0.7998344
	
688400

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 24-34
	
Wells Ranch
	
03-23-1988
	
2136098
	
T6N, R63W Sec. 34: SESW
	
Weld
	
Colorado
	
0.999793
	
651500

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 13-33
	
Anadarko E & P Co. and Anadarko Land Corp.
	
12-23-2002
	
3225680
	
T6N, R63W Sec. 33: NWSW
	
Weld
	
Colorado
	
0.7998344
	
688400

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 34-34
	
Wells Ranch
	
03-23-1988
	
2136098
	
T6N, R63W Sec. 34: SW4SE4
	
Weld
	
Colorado
	
0.999793
	
651500

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Wells Ranch 33-34
	
Wells Ranch
	
03-23-1988
	
2136098
	
T6N, R63W Sec. 34: NW4SE4
	
Weld
	
Colorado
	
0.999793
	
651500

  

  

  

Chevron Texaco#24C-12D

Lease No. 691300

ASSIGNMENT OF WORKING INTEREST

This Assignment made this 13th day of May, 2004 from PETROLEUM DEVELOPMENT CORPORATION, a Nevada Corporation, (herein called "Assignor"} to PDC 2004-A, Limited Partnership, (herein called "Assignee");

WITNESSETH

Assignor, for the sum of One Dollar ($1.00) and other valuable consideration, the receipt of which is hereby acknowledged, does by these presents GRANT, BARGAIN, SELL, EXCHANGE, CONVEY, ASSIGN, TRANSFER, SET OVER and DELIVER unto Assignee all of the following:

 

1.   The specific undivided interest shown In Exhibit A in respect of each of the oil and gas leases shown in Exhibit A, but only to the extent such leases cover lands and depths necessary for production of the specific oil and gas well identified in Exhibit A. This is intended to be a "wellborn assignment."
Assignee shall be entitled to receive that share of production from the well identified in Exhibit A which is attributable to the undivided interest here being assigned, but the Assignee shall have, as a result of this Assignment, no interest whatsoever in any other oil and gas well, whether now existing or hereafter drilled, which may be located on the lands described in Exhibit A or on any land pooled therewith. Assignor expressly excepts from this Assignment and reserves to itself, its successors and assigns,
the remainder of the lease and the leasehold oil and gas estate, including (without limitation) the right to produce other wells which are or may be located on the lands described in Exhibit A and lands pooled therewith, without the obligation to account to Assignee for any such other production.

 

2.  The specific undivided interest shown in Exhibit A in all valid unitization, pooling, operating and communitization agreements, declarations and orders involving the leasehold interests here being assigned, but only to the extent that such agreements, declarations and orders relate to the well specifically
Identified In Exhibit A and In all other respects limited to the manner as set forth in Paragraph 1,above.

 

3.  The specific undivided interest shown in Exhibit A in all valid oil and gas sales, purchase, exchange and processing contracts, but only to the extent that such contracts relate to the well specifically identified in Exhibit A and in all other respects limited in the manner set forth in Paragraph 1, above.

 

4. The specific undivided interest shown in Exhibit A in all personal property, improvements, lease and well equipment, easements, permits, licenses, servitudes and rights-of-way now owned by Assignor and being used in connection with the operation of the well specifically identified in Exhibit A or In connection
with the production, treating, storing, transportation or marketing of oil, gas and other minerals from that well, but in all respects limited in the manner set forth In Paragraph 1, above.

 

TO HAVE AND TO HOLD the interests described unto Assignee, its successors and assigns, forever.

 

This Assignment is made without warranties of any type (whether of title, merchantability or fitness for a particular use), either express or implied, but is made with full substitution of Assignee in all covenants and warranties previously given or made by others, but only to the extent of the interests here assigned.
Assignor does, however, expressly intend that this Assignment convey any title that Assignor may hereafter acquire to the extent that such after-acquired title may be necessary to fulfill the interests herein assigned.

 

Assignee shall bear its proportionate share of all burdens on production now of record and hereby assumes its proportionate share of all other obligations that relate to the well specifically identified In Exhibit A and the production therefrom.

 

Both Assignor and Assignee hereby agree to execute and deliver such additional instruments, notices, division orders, transfer orders and other documents as may reasonably be requested by the other, and to do such other acts and things, as may be necessary or convenient to accomplish this Assignment in the manner and
to the extent described in Paragraph 1, above.

  

  

  

Chevron Texaco #24C-12D

Lease No. 691300

IN WITNESS WHEREOF, Petroleum Development Corporation hag executed and delivered this instrument, with the intention that it shall be effective as of the date of first production from the well specifically identified in Exhibit A.

	  	
PETROLEUM DEVELOPMENT CORPORATION

	  	
A Nevada Corporation

	  	  	  
	  	
BY:
	
/s/ William D. Gainor

	  	  	
William D. Gainor

	  	  	
Land Manager

	
STATE OF WEST VIRGINIA
	  	
)
	  
	  	  	
)
	
TO-WIT:

	
COUNTY OF HARRISON
	  	
)
	  

The foregoing Instrument was acknowledged before me this 13th day of May 2004 by William D. Gainor, Land
Manager of Petroleum Development Corporation, a Nevada Corporation, for and on behalf of the Corporation. He executed the foregoing for the purposes therein contained.

	
OFFICIAL SEAL
	  	
/s/ Rita A. Clark

	
Notary Public, State of West Virginia
	  	
Rita A. Clark

	
RITA A. CLARK
	  	
Notary Public -
	
State of West Virginia

	
Petroleum Development Corporation
	  	  	
County of Harrison

	
103 East Main Street, Box 26
	  	
My Commission expires: June 2, 2009

	
Bridgeport, WV 26330
	  	  	  
	
My commission expires June 2, 2009
	  	  	  

This Instrument was prepared by:

 

Petroleum Development Corporation

103 East Main Street

P. O. Box 26

Bridgeport, WV 26330

Ph: 1-800-624-3621 or 304-842-6256

  

  

  

Chevron Texaco 24C-12D

Lease No. 691300

AMENDED ASSIGNMENT OF WORKING INTEREST

This Amended Assignment of Working Interest made March 2, 2006,2006 from PETROLEUM DEVELOPMENT CORPORATION, a Nevada Corporation, (herein called "Assignor") to PDC 2004-A, Limited Partnership, (herein called "Assignee");

WHEREAS: Petroleum Development Corporation has made two separate Assignments of Working Interest to the PDC 2004-A Limited Partnership as set forth below:

	
  
	
a.
	
Assignment of Working Interest dated May 13, 2004 and recorded as Instrument No. 661507 in the real property records of Garfield County, Colorado.

	
  
	
b.
	
Assignment of Working Interest dated December 8, 2004 and recorded as Instrument No. 665532 in the real property records of Garfield County, Colorado.

WHEREAS: It is the intent of this Amended Assignment of Working Interest that Petroleum Development Corporation correct, replace and supercede any past Assignments of Working Interest to the PDC 2004-A Limited
Partnership in relation to wells and interests listed on the respective Exhibit A's to the assignments.

NOW THEREFORE: Petroleum Development Corporation hereby replaces, in their entirety, the above listed Assignments of Working Interest and replaces both instruments with this Amended Assignment of Working Interest
as set forth by the terms and conditions listed below.

3.   Effective Date. The parlies intend that this amendment be deemed effective at the effective date of the Original Assignment, just as if the Exhibit A that is attached to this instrument had originally been attached to the Original Assignment.

 

IN WITNESS WHEREOF, this instrument has been executed by the parties.

	  	
PDC 2004-A LIMITED PARTNERSHIP

	  	  	  
	  	
By:
	
Petroleum Development Corporation

	  	  	  
	  	
By:
	
/s/ Ersel E. Morgan, Jr

	  	  	
Ersel E. Morgan, Jr as Vice President

 

	
STATE OF WEST VIRGINIA
	 	
§
	  
	  	 	
§
	
ss.

	
COUNTY OF HARRISON
	 	
§
	  

The  foregoing  instrument was  acknowledged before  me  this 5th day
of April 2006, by Ersel E. Morgan, as Vice President of Petroleum Development Corporation, the Managing General Partner of PDC 2004-A Limited Partnership, a West Virginia limited partnership.

 

Witness my hand and official seal.

	  	  	
/s/ Rita A. Clark

	  	  	
Rita A. Clark as Notary Public

	  	  	
Harrison County, West Virginia

	  	  	
My Commission expires: June 2, 2009

  

  

  

EXHIBIT "A"

AMENDED ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Chevron Texaco 24C-12D
	
Chevron USA, Inc.
	
05-12-2002
	
614407
	
T6S, R97W Sec. 12: SE4SW4
	
Garfield
	
Colorado
	
0.199793
	
691300

  

  

  

EXHIBIT WA"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Puckett 238-25
	
Puckett Land Company
	
11-15-1999
	
586562
	
T6S, R97W Sec. 25: SE4SW4
	
Garfield
	
Colorado
	
0.999793
	
636800

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Puckett 11C-17D
	
Puckett Land Company
	
11-15-1999
	
556562
	
T7S, R96W Sec. 17: NW4NW4
	
Garfield
	
Colorado
	
0.999793
	
636800

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Puckett 21C-25
	
Puckett Land Company
	
11-15-1999
	
556562
	
T6S, R97W Sec. 25: NE4NW4
	
Garfield
	
Colorado
	
0.999793
	
636800

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR, OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Puckett 21C-17D
	
Puckett Land Company
	
11-15-1999
	
556562
	
T7S, R96W Sec. 17: NE4NW4
	
Garfield
	
Colorado
	
0.999793
	
636800

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR. OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Puckett 33C-25
	
Puckett Land Company
	
11-15-1999
	
556562
	
T6S, R97W Sec. 25: NW4SE4
	
Garfield
	
Colorado
	
0.999793
	
636800

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Puckett 22C-17D
	
Puckett Land Company
	
11-15-1999
	
556562
	
T7S, R96W Sec. 17: SE4NW4
	
Weld
	
Colorado
	
0.999793
	
636800

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Puckett 22B-1
	
Puckett Land Company
	
11-15-1999
	
556562
	
T7S, R97W Sec 1: SE4NW4
	
Garfield
	
Colorado
	
0.999793
	
636800

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Puckett 34C-25
	
Puckett Land Company
	
11-15-1999
	
556562
	
T6S, R97W Sec 25:SWSE
	
Garfield
	
Colorado
	
0.999793
	
636800

  

  

  

EXHIBIT "A"

AMENDMENT TO ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Puckett 31-36
	
Puckett Land Company
	
11-15-1999
	
556562
	
T6S, R97W Sec 36: NW4NE4
	
Garfield
	
Colorado
	
0.999793
	
636800

  

  

  

EXHIBIT "A"

AMENDED ASSIGNMENT OF WORKING INTEREST PDC 2004-A LIMITED PARTNERSHIP

	
WELL NAME
	
LESSOR OR ASSIGNOR
	
LEASE DATE
	
RECEPTION NO. BOOK/PAGE
	
LEGAL DESCRIPTION
	
COUNTY
	
STATE
	
ASSIGNED INTEREST
	
LEASE NO.

	
Puckett 43C-25
	
Puckett Land Company
	
11-15-1999
	
556562
	
T6S, 97W, Sec 25: NESE
	
Garfield
	
Colorado
	
0.99793
	
636800ex10_1.htm

Ex 10.1

AMENDED AND RESTATED MANAGEMENT AGREEMENT

THIS AMENDED AND RESTATED MANAGEMENT AGREEMENT (the "Agreement") is entered into as of this 30th day of July, 2009, by and between Silverleaf Club, a Texas non-profit corporation, f/k/a Master Club, f/k/a Master Endless Escape Club ("Silverleaf Club"), and Silverleaf Resorts, Inc., a Texas
corporation, f/k/a Silverleaf Vacation Club, Inc., f/k/a Ascension Capital Corporation, successor by merger to Ascension Resorts, Ltd. ("Manager").

 

RECITALS

WHEREAS, Manager is the owner and developer of eleven (11) resorts, five (5) of which are located in Texas and are known as Hill Country Resort, Holly Lake, Piney Shores Resort, The Villages and Silverleaf's Seaside Resort, three (3) of which are located in Missouri and are known as Holiday
Hills Resort, Ozark Mountain Resort and Timber Creek Resort, one (1) of which is located in Illinois and is known as Fox River Resort, one (1) of which is located in Massachusetts and is known as Oak N' Spruce Resort, and one (1) of which is located in Georgia and is known as Apple Mountain Resort (collectively the "Resorts"); and

WHEREAS, pursuant to (i) that certain Master Club Agreement dated February 25, 1990, as amended by that certain First Amendment to Master Club Agreement dated as of March 28, 1990,
executed by and between Silverleaf Club and Holiday Hills Resort Club, a Missouri non-profit corporation, Ozark Mountain Resort Club, a Missouri non-profit corporation, Hill Country Resort Club, a Texas non-profit unincorporated association, Holly Lake Resort Club, a Texas non-profit unincorporated association, Piney Shores Resort Club, a Texas non-profit unincorporated association, and Villages Resort Club, a Texas non-profit unincorporated association, (ii) that certain Master Club Agreement dated September 25,
1997, executed by and between Silverleaf Club and Timber Creek Resort Club, a Missouri non-profit corporation, (iii) that certain Master Club Agreement dated November 13, 1997, executed by and between Silverleaf Club and Fox River Resort Club, an Illinois non-profit corporation, (iv) that certain Master Club Agreement, dated January 5, 1998, executed by and between Silverleaf Club and Oak N' Spruce Resort Club, a Texas non-profit corporation, (v) that certain Amendment to Master Club Agreement dated December 3,
1998, executed by and between Silverleaf Club and Oak N'Spruce Resort Club, (vi) that certain Silverleaf Club Agreement dated January 20, 1999, executed by and between Silverleaf Club and Apple Mountain Resort Club, Inc., and (vii) that certain Silverleaf Club Agreement dated January 20, 1999, executed by and between Silverleaf Club and Silverleaf's Seaside Resort Club (Ozark Mountain Resort Club, Holiday Hills Resort Club, Hill Country Resort Club, Holly Lake Resort Club, Piney Shores Resort Club, Villages Resort
Club, Timber Creek Resort Club, Fox River Resort Club, Oak N' Spruce Resort Club, Apple Mountain Resort Club, Inc., and Silverleaf's Seaside Resort Club are hereinafter collectively referred to as the "Clubs"), Silverleaf Club is authorized and appointed by each of the Clubs to arrange for centralized management of the Resorts; and

 

 

 

 

 

WHEREAS, Silverleaf Club and Manager entered into that certain Management Agreement dated as of March 28, 1990, as subsequently amended (the “Management Agreement”), for the purpose of establishing certain management services to be provided by Manager to Silverleaf Club and the Resorts as designated in the Management Agreement;
and

WHEREAS, Silverleaf Club and Manager desire to amend and restate the Management Agreement to modify the provisions regarding the compensation payable to Manager and to provide for certain other changes to the Management Agreement.

NOW, THEREFORE, in consideration of the premises and agreements contained herein and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby amend and restate the Management Agreement as follows:

	
  
	
1.
	
Appointment of Manager.  Silverleaf Club does hereby appoint Manager as its attorney-in-fact and exclusive managing agent for the Resorts.

	
  
	
2.
	
Operation, Maintenance and Financial Administration of the Resorts.  Manager shall make itself available as may be reasonably necessary to properly fulfill its management duties described as follows:

	
  
	
(a)
	
Manager shall properly and efficiently operate and maintain the Resorts, pursuant to the terms of the budget established or ratified by the Board of Directors of Silverleaf Club (the “Directors”) from time to time.

	
  
	
(b)
	
Manager shall, in accordance with such budget, keep the Resorts clean and in a state of good repair at all times, and shall order and supervise the completion of non-budgeted alterations, decorations, improvements and repairs as may be required from time to time and authorized by the Directors.

 

	
  
	
(c)
	
On behalf of or for the benefit of Silverleaf Club, Manager shall be authorized to purchase, lease or otherwise provide for all furniture and furnishings, maintenance supplies, tools and equipment, restroom and toilet supplies, electrical supplies and light bulbs, paint, stationery, office supplies and any other items or property incident to the performance of the obligations herein assumed by Manager, and applicable
to the Resorts, and Manager shall be authorized to charge Silverleaf Club for any such expenses incurred in connection therewith; all such furniture and furnishings, maintenance supplies, tools and equipment, restroom and toilet supplies, electrical supplies and light bulbs, paint, stationery, office supplies and other items or property shall be the property of Silverleaf Club and shall be  used only in connection with the Resorts.

 

-2-

 

 

	
  
	
(d)
	
On behalf of or for the benefit of Silverleaf Club, Manager shall be authorized to employ, pay, furnish, train, supervise and discharge such personnel, either on behalf of or for the benefit of itself or Silverleaf Club, as may in its sole discretion be necessary to the performance of its duties hereunder, including, but not limited to, maintenance employees, domestic employees and such other employees necessary
to the efficient management, operation and maintenance of the Resorts, and Manager shall be authorized to charge Silverleaf Club for any such expenses incurred in connection therewith.  Manager shall enter into contracts for such services as it shall deem advisable or necessary, within such budgetary limits as may be prescribed by the Directors from time to time; provided, however, that Silverleaf Club shall approve, and be liable and responsible for, any such contracts which, by their terms, may be
in existence subsequent to the termination of this Agreement.

	
  
	
(e)
	
On behalf of or for the benefit of Silverleaf Club, Manager shall create and maintain a centralized reservation system for the Resorts.

 

	
  
	
(f)
	
On behalf of or for the benefit of Silverleaf Club, Manager shall be authorized to employ, pay and discharge such professionals and consultants as may in its sole discretion be necessary to the performance of its duties hereunder, including, but not limited to, accountants, attorneys or such other professionals or consultants necessary to the efficient management, operation and maintenance of the Resorts, and Manager
shall be authorized to charge Silverleaf Club for any such expenses incurred in connection therewith.  Manager shall enter into contracts for such services as it shall deem advisable or necessary, within such budgetary limits as may be prescribed by the Directors from time to time; provided; however, that Silverleaf Club shall approve, and be liable and responsible for, any such contracts which, by their terms, may be in existence subsequent to the termination of this Agreement.

	
  
	
(g)
	
On behalf of or for the benefit of Silverleaf Club, Manager shall compensate in a timely manner all those employed on behalf of Silverleaf Club and shall promptly pay for all supplies, merchandise, materials, labor, insurance, or other items furnished or used by it or for it in the performance of the duties assumed hereunder, and Manager shall be authorized to charge Silverleaf Club any such expenses incurred in
connection therewith.

 

	
  
	
(h)
	
On behalf of or for the benefit of Silverleaf Club, Manager shall enter into such contracts for water, sewer, electricity, gas, trash collection, telephone, vermin extermination, guard service and other necessary services as may be set forth in the budget or deemed necessary or desirable by the Directors.

 

 

-3-

 

 

	
  
	
(i)
	
Manager is further authorized to take any and all further action as may in its sole discretion be necessary or desirable for the proper maintenance and operation of the Resorts.

	
  
	
3.
	
Insurance, Taxes and Administrative Details.

	
  
	
(a)
	
Manager shall obtain Worker’s Compensation Insurance in accordance with the laws of the State of Texas, Missouri, Illinois, Georgia and Massachusetts, as applicable, and Employer’s Liability Insurance applicable to and covering all persons engaged in performance of the work required by the obligations assumed by Manager hereunder, the cost of which shall be included in the budget described in subparagraph
2(a) hereinabove and paid by Silverleaf Club.  Manager shall furnish Silverleaf Club certificates evidencing such insurance.  In the event that Manager, in fulfillment of its obligations hereunder, subcontracts for services, Manager shall include in such subcontract a provision that the subcontractor shall carry Worker’s Compensation Insurance in accordance with the laws of the State of Texas, Missouri, Illinois, Georgia and Massachusetts, as applicable, and Employer’s Liability
Insurance applicable to and covering all persons engaged in the performance of said work, and Manager shall satisfy itself that such insurance is in force at all times under this Agreement.

	
  
	
(b)
	
Manager shall procure and maintain such public liability, property damage, fire, employees liability and other insurance covering such other risks as Manager may in its sole discretion deem necessary and appropriate, the cost of which shall be included in the budget described in subparagraph 2(a) hereinabove and paid by Silverleaf Club.

	
  
	
4.
	
Administration of Assessments and Income.

	
  
	
(a)
	
On behalf of Silverleaf Club, Manager shall send a monthly bill to each member of the Clubs, which bill shall set forth each member’s liability for dues, assessments, late charges and other amounts levied against the members of its respective Club pursuant to the Declaration of Restrictions, Covenants and Conditions and the By-Laws of its respective Club.  Manager shall receive payment from all members
for such assessments and shall maintain accurate records with respect thereto.  Manager shall have no liability for failing to collect delinquent assessments or other charges.

	
  
	
(b)
	
On behalf of or for the benefit of Silverleaf Club, Manager shall collect all income generated from its operation, management and administration of the Resorts.

 

 

-4-

 

 

	
  
	
(c)
	
Manager shall disburse all funds received from the members of the Clubs and income generated from the Resorts in accordance with the budget described in subparagraph 2(a) hereinabove or pursuant to any special directions of the Directors for the benefit and on behalf of Silverleaf Club.

5.           Financial Records.

	
  
	
(a)
	
Manager shall at all times keep and maintain full, true and accurate books of account to fully reflect all of the monies received and paid out under this Agreement, which books and records shall be open to inspection by authorized representatives of Silverleaf Club.

	
  
	
(b)
	
Manager shall maintain records showing all of its receipts and expenditures relating to Silverleaf Club and shall promptly submit to the Directors a cash receipt and disbursements statement for the preceding year and a statement indicating the balance or deficit in the Manager’s account for Silverleaf Club on or before the last day of the second month following the fiscal year end of Manager during the term
hereof.

	
  
	
(c)
	
If requested by the Directors, Manager shall prepare and submit to the Directors, on or before the 30th day preceding the end of the calendar year, a recommended budget for the next year, showing anticipated receipts and expenditures for such year.

	
  
	
6.
	
Advances by Manager.  In the event that Silverleaf Club does not have sufficient funds to cover the expenses of operation, maintenance and administration as are described in paragraphs 2 and 3 hereinabove, Manager may elect to advance such funds on behalf of Silverleaf Club and treat the same as an account receivable without prejudice to any
other remedy which may be available to Manager; provided, however, that until receipt of such additional funds, Manager shall not be responsible for payment of any such expenses, and Manager shall have no obligations to advance funds to Silverleaf Club for any purpose whatsoever.

	
  
	
7.
	
Compensation to Manager.  As compensation for Manager's services hereunder, Manager is entitled to retain for its own account during each calendar year during the term of this Agreement an amount equal to the lesser of (a) fifteen percent (15%) of the Gross Revenues (as defined hereinbelow) for the year or (b) the amount by which the Gross
Revenues for the year exceed the total of all accrued expenses of any kind whatsoever ("Expenses") incurred by the Resorts during the year (exclusive of any fees paid or payable to the Silverleaf Club by the Resorts) and incurred by the Silverleaf Club during the year in performing its duties and obligations under the Silverleaf Club Agreement. As used herein, the term "Expenses" shall include the total amount of all funds collected from members at the Clubs and set aside in a special account by Silverleaf Club
to be used solely for the refurbishment and replacement of buildings and amenities at the Resorts.  As used herein, the term Gross Revenues shall mean the amount of all dues, assessments, late charges and any other amounts accrued by Manager from the members of the Clubs pursuant to paragraph 4(a) hereinabove, plus the amount of income generated by the Resorts and accrued by Manager pursuant to paragraph 4(b) hereinabove.  Such
accruals shall be determined by Manager in its reasonable discretion using its normal accounting practices.  The amount payable hereunder to Manager shall be paid in approximately equal monthly installments throughout the year based on the annual budget of the Silverleaf Club, as adjusted from time to time throughout the year, with final adjustments being made as of December 31 of the year to determine the exact amount due and payable to Manager for the year under the preceding provisions.  After
such final adjustments are made, any balance due Manager shall be promptly paid, and any overpayment shall be promptly repaid by Manager.

 

 

-5-

 

 

	
  
	
8.
	
Indemnification.  Silverleaf Club shall indemnify, defend and save Manager, is directors, shareholders, officers, employees and agents, harmless of and from any and all loss, cost or expense, including reasonable attorneys’ fees, arising out of or directly or indirectly connected with
Manager’s operation and maintenance of the Resorts.

	
  
	
9.
	
Term.  This Agreement originally became effective on March 28, 1990 and shall continue in force through and including March 27, 2020.  Upon termination, the parties hereto shall account to one another with respect to all matters outstanding as of the date of termination and Silverleaf Club shall furnish Manager security, satisfactory
to Manager, against any outstanding obligations or liabilities which Manager may have incurred under this Agreement.

	
  
	
10.
	
Default.  Should Manager fail to perform any of the obligations it has assumed hereunder, and Manager has not cured such failure within ninety (90) days after Silverleaf Club has provided Manager with written notice thereof or, if such failure on the part of Manager is not susceptible of being cured within said ninety (90) day period, should
Manager fail to commence curing such failure within said ninety (90) day period or, having commenced to cure the failure within said ninety (90) day period, should Manager fail to prosecute or complete the curing of such failure with due diligence and dispatch, this Agreement shall be terminated and neither Manger nor Silverleaf Club shall have any continuing obligation one unto the other.

 

 

-6-

 

 

	
  
	
11.
	
Use Agreements.  Manager hereby agrees that so long as this Agreement is in full force and effect, it will not cancel or terminate those certain agreements (the “Use Agreements”) entered into by and between Manager and each respective Club, which Use Agreements provide
for the sharing of certain amenities and recreational facilities owned by Manager located near or in the vicinity of the respective Resorts.

	
  
	
12.
	
Unpaid Shortfalls.  Manager hereby agrees that Silverleaf Club shall not in the future be required to pay to Manager any Shortfalls (as that term is defined in paragraph 7 of the Management Agreement) and agrees that any liability Silverleaf Club may currently have to Manager for previously unpaid Shortfalls is  hereby forgiven.

	
  
	
13.
	
Miscellaneous.  This Agreement shall be construed under the laws of the State of Texas, and may be amended only by an instrument in writing signed by Manager and the Silverleaf Club.

EXECUTED as of the first date above written.

	 	 	  
	 	SILVERLEAF CLUB:
	 	 	  
	 	SILVERLEAF CLUB, a Texas non-profit corporation
	 	 	  
	 	By:	
 /S/  ROBERT G. LEVY

	 	Name: 	
Robert G. Levy

	 	Its:	
 President

	 	
MANAGER:

	 	  
	 	
SILVERLEAF RESORTS, INC., a Texas corporation

 

 

	
 
	By:	
/S/ HARRY J. WHITE, JR.

	
 
	Name: 	
Harry Jr. White, Jr.

	
 
	Its:	
VP-Treasurer

 

 

-7-

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