Document:

Presidential House - First Amendment to Contract

Exhibit 10.16

 

FIRST AMENDMENT TO PURCHASE AND SALE CONTRACT

           
First Amendment to Purchase and Sale Contract (this “Amendment”) is made
as of April 24, 2009, between DREXEL BURNHAM LAMBERT REAL ESTATE ASSOCIATES II
LIMITED PARTNERSHIP (“Seller”) and ADVENIR, INC.
(“Purchaser”).

W I T N E S S E T H:

           
WHEREAS, Seller and Purchaser entered into a Purchase and Sale Contract
dated as of March 25, 2009 (the “Agreement”) with respect to the sale of
certain property known as Presidential House located in Miami-Dade County,
Florida, as described in the Agreement; and

           
WHEREAS, Seller and Purchaser desire to amend the Agreement on the terms
set forth herein. 

           
NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the sum of $10.00 and other good and valuable consideration, the
mutual receipt and legal sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

1.     
Capitalized Terms.     Capitalized terms used
in this Amendment shall have the meanings given to them in the Agreement, except
as expressly otherwise defined herein.

2.     
Feasibility Period.      The Feasibility
Period, set forth in Section 3.1 of the Agreement, is hereby extended to May 8,
2009.

3.     
Loan Assumption Approval Period.  Section 4.5.9 of the
Agreement shall be amended as follows:

           
a.         The Loan Assumption Approval
Period, set forth in Section 4.5.9 of the Agreement, is hereby extended to May
26, 2009.

           
b.         Section 4.5.9.1 of the
Agreement shall be deleted and replaced as follows:  “If (a) Purchaser
fully complies with its obligations under this Contract (including this
Section 4.5) and the requirements of the Assumed Loan Documents in
connection with obtaining the Loan Assumption and Release, (b) Purchaser has
used and is using commercially reasonable good faith efforts to obtain the Loan
Assumption and Release, and (c) Purchaser does not obtain the consent of the
Lender to the Loan Assumption and Release on or before the expiration of the
Loan Assumption Approval Period, then Purchaser shall have the right (the
“Loan Assumption Extension Right”), exercisable by delivering
written notice to Seller five (5) Business Days prior to the expiration of the
Loan Assumption Approval Period (the "Loan Assumption Period Extension
Notice"), to extend the expiration date of the Loan Assumption Approval
Period to June 25, 2009 for the sole purpose of obtaining Lender's approval of
the Loan Assumption and Release; provided that concurrently with delivering the
Loan Assumption Period Extension Notice, Purchaser delivers to Escrow Agent an
additional deposit of $50,000.00 (the “Loan Assumption Period Extension
Deposit”).  The Loan Assumption Period Extension Deposit shall be deemed part of the Deposit.

4.     
Closing
Date.            
Section 5.1 of the Agreement shall be amended as follows:

           
a.         The Closing Date, set forth
in Section 5.1.1 of the Agreement, is hereby extended to June 9, 2009.

           
b.         Section 5.1.2 of the
Agreement shall be deleted and replaced as follows: “Notwithstanding the
foregoing to the contrary, if Purchaser exercises Purchaser’s Loan Assumption
Extension Right, then the Closing Date shall automatically be extended to the
earlier to occur of (x) the date which is fifteen (15) days after receipt of
Lender’s approval of the Loan Assumption and Release and (y) July 7, 2009. 
Purchaser shall provide Seller with written notice of Lender’s approval of the
Loan Assumption and Release no later than two (2) days after Purchaser’s receipt
of such approval.”

5.     
Groundwater Sampling Adjournment
Right.            In
connection with the Fuel Spill (as such term is defined in the Agreement), the
Department of Environmental Resources Management (“DERM”) is
requiring that Seller install a monitoring well at the Property to sample
groundwater in order to determine whether or not any groundwater contamination
exists as a result of the Fuel Spill.  If, by the Closing Date set forth in
Section 5.1.1 of the Agreement, either (i) the groundwater sampling has not been
completed or the laboratory analyzing the groundwater sampling has not completed
its analysis and issued its findings or (ii) the groundwater sampling and lab
analysis has been completed, but DERM has not confirmed in writing that no
further action is warranted at the Property with respect to the Fuel Spill, then
Purchaser shall have the right, by delivering written notice to Seller, to
extend the Closing Date to July 23, 2009.  If as of July 23, 2009 the
Seller has not obtained written confirmation from DERM that no further action is
warranted at the Property with respect to the Fuel Spill, Purchaser may, in its
sole discretion, by delivering written notice to Seller, either (a) waive the
DERM confirmation that no further action is warranted at the Property with
respect to the Fuel Spill and proceed with the Closing, or (b) terminate the
Agreement, in which event the full Deposit shall be returned to the Purchaser
and the Agreement will be rendered null, void, and of no further force or
effect, except for the Survival Provisions.

6.     
Miscellaneous.          
This Amendment may be executed in counterparts, each of which shall be
deemed an original and all of which, when taken together, shall constitute a
single instrument and may be delivered by facsimile transmission, and any such
facsimile transmitted Amendment shall have the same force and effect, and be as
binding, as if original signatures had been delivered.  As modified hereby,
all the terms of the Agreement are hereby ratified and confirmed and shall
continue in full force and effect.

[Signature Page to Follow]

           
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of
the date and year hereinabove written.

 

Seller:

 

DREXEL BURNHAM LAMBERT REAL ESTATE
ASSOCIATES II LIMITED PARTNERSHIP, a New York limited partnership

 

By: 
DBL PROPERTIES CORPORATION, a New York corporation, its general partner

 

By: 
/s/Brian J. Bornhorst  

Name: 
Brian J. Bornhorst 

Title: 
Vice President 

Purchaser:

ADVENIR, INC.,
a
Florida corporation 

By: 
/s/Stephen L. Vecchitto 

Name:
Stephen L. Vecchitto 

Title: 
Presidentcrudeoilcontract.htm

    
      
Exhibit 10.1

     

    
      Confidential
Portions Redacted and Filed with the Commission pursuant to 17 CFR
200.83.  “***” Symbolizes Language Omitted Pursuant to an Application
For Confidential Treatment

      

      Date:
3/20/2009

      

      TESORO
Contract No: BEC09TP0003

      Berry
Petroleum Company Contract No: Please Advise

      

      FAX: 1-303-999-4141

      

      Berry Petroleum Company
1999
Broadway Ste 3700 Denver, CO 80202

      

      Attn: Ron
Cross

      

      This Agreement confirms the transaction previously discussed between TESORO REFINING
AND MARKETING COMPANY, a Delaware Corporation (hereinafter referred to as
"TESORO" or “Buyer”), and Berry Petroleum Company (hereinafter referred to as
"Seller”) TESORO agrees to purchase, and Seller agrees to sell, Crude Oil under
the terms and conditions set forth herein and Conoco's General Provisions for
Domestic Crude Oil Agreements dated January 1, 1993.

      

      1.        
   IDENTIFICATION OF CRUDE OIL BATCHS, DELIVERY POINTS,
QUANTITIES AND PRICES: The Crude
Oil being purchased hereunder is a crude petroleum oil, in its natural produced
state after normal oilfield separation, as specified and identified
below.  The Crude Oil will be delivered and sold in four separate
batched deliveries, with the tems of sale of each batch as follows:

      

      
        	
                A.

              	
                Delivery
      1

              

      

      

      QUALITY:  San
Joaquin Valley Heavy

      

      QUANTITY:  Approximately
5,000 Barrels Per Day

      

      DELIVERY:  Delivery
to the point of destination, SMWS Berry Central, CA, Into Pipe, Book Transfer,
In-tank, or Pumpover.

      

      TITLE/RISK OF
LOSS:  Except as
otherwise specified in this agreement, title and risk of loss or damage shall
pass to TESORO as the crude oil enters the ConcoPhillips (Unocal) Pipeline or
other common carrier pipeline through the inlet flange of metering facilities at
SMWS Berry Central, CA.

      

      PRICE:  TESORO
agrees to pay Seller based on the following price formula:

      The price
shall be the higher of the two following calculations, to be determined at the
end of each month.

      

      1)  
The average of the four posters (Chevron, Union 76, Shell, and Exxon) for Midway
Sunset crude oil for the calendar month average (Including Weekend &
Holiday) adjusted for actual gravity, plus a differential of $*** United States
Dollars per Barrel.

      

      2)  
NYMEX's daily settle
quoted price for Light Sweet Crude Future for the calendar month average
(Excluding Weekend & Holiday) less $*** United States Dollars per
Barrel.

      

      For
pricing purposes, any crude oil delivered hereunder shall be deemed to have been
delivered in equal daily quantities during the calendar month in which delivery
occurs.

      

      

      
        	
                B.

              	
                Delivery
      2

              

      

      

      QUALITY:  San
Joaquin Valley Heavy

      

      QUANTITY: Approximately
1,000 Barrels Per Day

      

      DELIVERY: Delivery
to the point of destination, Berry Ethel D, CA, Into Pipe, Book Transfer,
In-tank, or Pumpover.

      

      TITLE/RISK OF LOSS:
Except as
otherwise specified in this agreement, title and risk of loss or damage shall
pass to TESORO as the crude oil enters the Pacific Plains Pipeline through the
inlet flange of metering facilities at Berry Ethel D, CA.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Confidential
Portions Redacted and Filed with the Commission pursuant to 17 CFR
200.83.  “***” Symbolizes Language Omitted Pursuant to an Application
For Confidential Treatment

      

      PRICE: TESORO
agrees to pay Seller based on the following price formula:

      The price
shall be the higher of the two following calculations, to be determined at the
end of each month:

      

      1) The
average of the four posters (Chevron, Union 76, Shell, and Exxon) for Midway
Sunset crude oil for the calendar month average (Including Weekend & Holiday
adjusted for actual gravity), plus a differential of $*** United States Dollars
per Barrel.

      

      2)
NYMEX's daily settle quoted price for Light Sweet Crude Future for the calendar
month average (Excluding Weekend & Holiday) less $*** United States Dollars
per Barrel.

      

      For
pricing purposes, any crude oil delivered hereunder shall be deemed to have been
delivered in equal daily quantities during the calendar month in which delivery
occurs.

      

      

      
        	
                C.

              	
                Delivery
      3

              

      

      

      QUALITY: San
Joaquin Valley Heavy

      

      QUANTITY: Approximately
3,500 Barrels Per Day

      

      DELIVERY: Delivery
to the point of destination, NMWS Fairfield, CA, Into Pipe, Book Transfer,
In-tank, or Pumpover.

      

      TITLE/RISK OF LOSS:
Except as
otherwise specified in this agreement, title and risk of loss or damage shall
pass to TESORO as the crude oil enters the Pacific Plains Pipeline through the
inlet flange of metering facilities at NMWS Fairfield, CA.

      

      PRICE: TESORO
agrees to pay Seller based on the following price formula:

      The price
shall be the higher of the two following calculations, to be determined at the
end of each month:

      

      1) The
average of the four posters (Chevron, Union 76, Shell, and Exxon) for Midway
Sunset crude oil for the calendar month average (Including Weekend & Holiday
adjusted for actual gravity) plus a differential of $*** United States Dollars
per Barrel.

      

      2)
NYMEX's daily settle quoted price for Light Sweet Crude Future for the calendar
month average (Excluding Weekend & Holiday) less $*** United States Dollars
per Barrel.

      

      For
pricing purposes, any crude oil delivered hereunder shall be deemed to have been
delivered in equal daily quantities during the calendar month in which delivery
occurs.

      

      

      
        	
                D.

              	
                Delivery
      4

              

      

      

      QUALITY: San
Joaquin Valley Heavy

      

      QUANTITY: Approximately
2,400 Barrels Per Day

      

      DELIVERY: Delivery
to the point of destination, Berry Formax, CA, Into Pipe/BT/IT/PO

      

      TITLE/RISK OF LOSS:
Except as
otherwise specified in this agreement, title and risk of loss or damage shall
pass to TESORO as the crude oil enters the ConocoPhillips (Unocap) Pipeline
through the inlet flange of metering facilities at Berry Formax,
CA.

      

      PRICE: TESORO
agrees to pay Seller based on the following price formula:

      The price
shall be the higher of the two following calculations, to be determined at the
end of each month:

      

      1) The
average of the four posters (Chevron, Union 76, Shell, and Exxon) for Midway
Sunset crude oil for the calendar month average (Including Weekend &
Holiday) adjusted for actual gravity, plus a differential of $*** United States
Dollars per Barrel.

      

      2)
NYMEX's daily settle quoted price for Light Sweet Crude Future for the calendar
month average (Excluding Weekend & Holiday) less $*** United States Dollars
per Barrel.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Confidential
Portions Redacted and Filed with the Commission pursuant to 17 CFR
200.83.  “***” Symbolizes Language Omitted Pursuant to an Application
For Confidential Treatment

      

      For
pricing purposes, any crude oil delivered hereunder shall be deemed to have been
delivered in equal daily quantities during the calendar month in which delivery
occurs.

      

      
        	
                2.

              	
                TERM:
      This
      Agreement shall extend for an initial
      term from 4/1/2009 to 9/30/2009.

              

      

      

      
        	
                3.

              	
                PAYMENT:
      Payment
      due on the 20th day of the month after the month of
    delivery.

              

      

      

      Payment
shall be made by electronic funds transfer in United States
Dollars.

      

      Payments
due on Saturday shall be paid the preceding Friday, and payments due on Sunday
shall be paid on the following Monday. Similarly, payments due on a federal bank
holiday shall be paid the preceding business day except when a federal bank
holiday falls on a Monday, when payment shall be due the following
day.

      

      All
payments made under this agreement shall be made without offset, deduction or
counterclaim except as provided herein, by separate written agreement between
the parties, or within the GENERAL PROVISIONS attached hereto or previously
provided, incorporated into and made part of this Agreement by reference.

      

      If
applicable, net-out invoices shall be according to the established netting
agreement between Buyer and Seller.

      

      
        	
                Send
      Invoices to:

              	
                Tesoro
      Refining and Marketing Company 300 Concord Plaza Drive San Antonio, TX
      78216

              

      

      

      Attn:
Crude Accounting, Fax (210) 881-6435

      Email:
TSOCrudeinvoices@tsocorp.com

      

      Attn:
Accounts Payable, Fax (210) 579-4573 Email: apayable@tsocorp.com

      

      

      
        	
                4.

              	
                OTHER
      TERMS AND CONDITIONS:

              

      

      

      A. The
terms stated in the ConocoPhillips General Provisions for Domestic Crude Oil
Agreements effective January 1, 1993 (“GP”),
attached hereto as Exhibit A and incorporated herein by reference, will be applicable to the extent that they are not in
conflict with any of the terms in this Agreement, provided, however:

      

      1. The
fourth sentence of Paragraph A of the GP shall be changed to read as follows:
The crude oil delivered hereunder shall be merchantable and acceptable in the
applicable common or segregated stream of the carriers involved, but not to
exceed 3% S&W merchantable liquid hydrocarbons are defined as unrefined
liquid hydrocarbons which are suitable for normal refinery processing, meet
specifications of delivering carriers and are free of foreign contaminant
chemicals including, but not limited to, chlorinated and oxygenated
hydrocarbons.

      

      2. The
second paragraph of Paragraph B of the GP shall be changed to read as follows:
Seller further warrants the crude oil delivered shall be
merchantable.

      

      3. The
parties do not agree to comply with the specific laws, orders or regulations
identified in Paragraph C of the GP unless such party is otherwise subject to
such laws, orders or regulations.

      

      4.  In the first sentence of Paragraph E of the
GP the phrase “acts in furtherance of the International Energy Program,” shall
be deleted.  The following shall be added at the end of the first
paragraph of Paragraph E: The parties acknowledge that there is no associated
purchase/sale, or exchange of crude oil, related to this
Agreement.”

      

      5. In the
last paragraph of Paragraph F of the GP the reference to Morgan Guaranty Trust
Company of New York shall be deleted and Wells Fargo Bank, San Francisco shall
be substituted.

      

      6. Paragraph H (1) shall be amended to read as
follows:  “H.  Termination:  (1) Right to
Terminate.  If a party to this Agreement (a) becomes the subject of
bankruptcy or other insolvency proceedings, or proceedings for the appointment
of a receiver, trustee or similar official, (b) becomes generally unable to pay
its debts as they become due, (c) makes a general assignment for the benefit of
creditors, (d) if Buyer defaults in the payment of any funds due under this
Agreement, or (e) if Buyer fails to accept and purchase any crude oil delivered
by Seller under this Agreement, then the other party to this Agreement (the
“Terminating Party”) may terminate this Agreement by giving written notice of
termination.  Such a termination shall be deemed to be effective
immediately prior to any of the events described in clauses (a), (b) or (c) of
this Section H(1) and, in the case of termination for reasons described in
clauses (d) or (e) immediately upon the Buyer’s receipt of Seller’s notice of
termination.  If this Agreement is associated with a separate
agreement contemplating a corresponding purchase or sale of crude oil, all
related agreements shall be deemed to be terminated at the same time as this
Agreement is terminated.  All of the references to Liquidating Party
in this Paragraph H shall be substituted by Terminating Party.  Upon
termination, the parties shall have no further rights or obligations with
respect to this Agreement, except for the payment of the amount(s) (the
‘Settlement Amount’ or ‘Settlement Amounts’) determined as provided in
Paragraph(3) of this Section.”

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Confidential
Portions Redacted and Filed with the Commission pursuant to 17 CFR
200.83.  “***” Symbolizes Language Omitted Pursuant to an Application
For Confidential Treatment

      

      7. The following sentence shall be added to Paragraph H
(3) of the GP: “In the event of a contract termination, the Settlement Amount
shall be calculated using the estimated contract quantity of crude oil
multiplied by the remainder of the term of this Agreement except as such
Settlement Amount may be limited by the provisions of Paragraph H
(8).”

      

      8. Paragraph H(5) Market Price is hereby amended to read
as follows:  “Unless otherwise provided in this Agreement, the Market
Price of crude oil sold or exchanged under this Agreement shall be the price for
crude oil for the delivery month as specified in this Agreement and at the
delivery location that corresponds to the delivery location specified in this
Agreement.”

      

      9.
The
governing law set forth in Paragraph M of the GP shall be California
law.

      

      10. Any
modification of any of the referenced documents shall only be by written
instrument signed by both parties. Any conflict between the General Provisions
and this Agreement shall be resolved in
favor of this Agreement. The section
headings are for convenience only and shall not limit or change the subject
matter of this Agreement.

      

      12. Tesoro agrees to immediately provide to Seller upon
Seller’s request from time to time copies of Tesoro’s financial statements for
the period requested either certified as to accuracy by Tesoro’s chief financial
officer or audited by Tesoro’s independent accounting firm in form and as to
date reasonably acceptable to Seller; provided however that Tesoro shall not be
required to 1) prepare any financial statements, 2) issue any certifications for
Seller’s benefit, or  3) be required to provide any information that
is not suitable for public disclosure in accordance with applicable securities
laws and regulations applicable to Tesoro as a publicly traded
entity.

      

      B. In the
event of any claim, dispute or controversy arising out of or relating to this
Agreement, including an action for declaratory relief, the prevailing party in
such action or proceeding shall be entitled to recover its court costs and
reasonable out-of-pocket expenses not limited to taxable costs, including but
not limited to phone calls, photocopies, expert witness, travel, etc., and
reasonable attorneys fees to be fixed by the court. Such recovery shall include
court costs, out-of-pocket expenses and attorneys fees on appeal, if any. The
court shall determine who is the prevailing party, whether or not the dispute or
controversy proceeds to final judgment. If either party is reasonably required
to incur such out-of-pocket expenses and attorneys fees as a result of any claim
arising out of or concerning this Agreement or any right or obligation derived
hereunder, then the prevailing party shall be entitled to recover such
reasonable out-of-pocket expenses and attorneys fees whether or not an action is
filed.

      

      CONFIDENTIALITY:
The
parties will treat all information contained within or produced pursuant to this Agreement as confidential and will use it only
for the purposes of this Agreement. Such
confidential information specifically includes, without limitation, the prices
specified in this Agreement. Neither party
will disclose the other party's confidential information to any third party or
in any public statement without the other party's express prior written consent,
provided however, that the parties shall disclose such information (other than
prices) to carriers and the operators of terminals and pipelines, as might be
required to arrange for delivery of Crude Oil being sold hereunder. Nothing
contained herein shall prevent a party from disclosing confidential information
when necessary to enforce provisions of this Agreement or when such party's counsel determines
in good faith that such disclosure is required to comply with applicable law,
judicial or administrative process or regulatory requirement, including without
limitation disclosures by Seller about the existence of the Agreement and identifying the parties and other
general information as may be deemed material for disclosure under applicable
securities regulations, but not including the price being sold hereunder unless approximations thereof are required to be
disclosed under applicable securities laws and regulations or unless ordered
disclosed by the applicable government agency after confidentialty protection
has been requested. In the event of any such disclosure, the party making
such disclosure pursuant to law, process or
regulatory requirement shall provide the other party with notice of and a
reasonable opportunity to object to such disclosure. This confidentiality
provision will remain in full force and effect for the term of this Agreement and for a period of one year
thereafter.

      

      ADDRESSES: The
following address shall be used for notices under this Agreement.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Confidential
Portions Redacted and Filed with the Commission pursuant to 17 CFR
200.83.  “***” Symbolizes Language Omitted Pursuant to an Application
For Confidential Treatment

      

      
        	
                To
      TESORO

              	
                To
      Seller

              	 
      
	 
      	 
      	 
      
	
                Tesoro
      Refining and Marketing Company

              	
                Berry
      Petroleum Company

              	 
      
	
                300
      Concord Plaza Drive

              	
                1999
      Broadway Ste 3700

              	 
      
	
                San
      Antonio, Texas 78216-6999

              	
                Denver,
      CO 80202

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                Attn:
      Commercial Contract Administration

              	
                Attn:
      Ron Cross

              	 
      
	 
      	 
      	 
      
	
                PHONE
      # 1-210-626-7157

              	
                PHONE
      # 1-303-999-4041

              	 
      
	
                FAX
      # 1-210-579-4578

              	
                FAX
      # 1-303-999-4141

              	 
      
	 
      	 
      	 
      
	
                Email:
      smanagment@tsocorp.com

              	
                rfc@bry.com

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                ADDITIONAL
      TESORO CONTACTS:

              	 
      	 
      
	 
      	 
      	 
      
	
                OPERATIONS
      Crude Scheduling

              	
                Phone:
      (210) 626-4036

              	
                Fax:
      (210) 745-4565

              
	
                CREDIT
      Brian Randecker

              	
                Phone:
      (210) 626-4757

              	
                Fax:
      (210) 745-4673

              
	
                ACCOUNTING
      Mid-Office Accounting

              	
                Fax:
      (210) 881-6435

              	 
      
	 
      	
                E-mail:
      sat-tsocrudeinvoices(a)tsocorp.com

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                INTERNATIONAL
      TRADE COMPLIANCE

              	
                Direct
      questions for international shipments to

              
	
                appropriate
      person below:

              	 
      	 
      
	 
      	 
      	 
      
	
                Pipeline
      Imports Kevin Wilder

              	
                Phone:
      (210) 626-4843

              	
                Cell:
      (210) 315-6192

              
	
                Marine
      Imports Audra Hanley

              	
                Phone:
      (210) 626-4446

              	
                Cell:
      (210) 315-6324

              
	
                Exports
      Gary Wilson

              	
                Phone:
      (210) 626-4787

              	
                Cell:
      (210) 241-5333

              

      

      

      

      

      Regards,

      

      

      

      Damon M
Van Zandt

      Director,
North American Crude Trading Tesoro Refining and Marketing Company

      

      

      

      Agreed and accepted as of the date first above
written.

      

      

      BERRY PETROLEUM COMPANY

      

      

      
        	
                By:

              	
                /s/ Michael Duginski

              	 
      
	 
      	
                Michael
      Duginski,

              
	 
      	
                Executive
      Vice President and

              
	 
      	
                Chief
      Operating Officer

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Confidential
Portions Redacted and Filed with the Commission pursuant to 17 CFR
200.83.  “***” Symbolizes Language Omitted Pursuant to an Application
For Confidential Treatment

      

      EXHIBIT A

      TO MARCH __, 2009 CRUDE OIL PURCHASE
AGREEMENT

      (JANUARY 1, 1993 CONOCO GENERAL PROVISIONS
FOR

      DOMESTIC CRUDE OIL AGREEMENTS)

      

      GENERAL PROVISIONS

      DOMESTIC CRUDE OIL AGREEMENTS

      

      A.  Measurement and Tests:  All
measurements hereunder shall be made from static tank gauges on 100 percent tank
table basis or by positive displacement meters.  All measurements and
tests shall be made in accordance with the latest ASTM or ASME-API (Petroleum PD
Meter Code) published methods then in effect, whichever apply.  Volume
and gravity shall be adjusted to 60 degrees Fahrenheit by the use of Table 6A
and 5A of the Petroleum Measurement Tables ASTM Designation D1250 in their
latest revision.  The crude oil delivered hereunder shall be
marketable and acceptable in the applicable common or segregated stream of the
carriers involved but not to exceed 1% S&W.  Full deduction for
all free water and S&W content shall be made according to the API/ASTM
Standard Method then in effect.  Either party shall have the right to
have a representative witness all gauges, tests and measurements.  In
the absence of the other party's representative, such gauges, tests and
measurements shall be deemed to be correct.

      

      B. Warranty:  The Seller warrants good title
to all crude oil delivered hereunder and warrants that such crude oil shall be
free from all royalties, liens, encumbrances and all applicable foreign,
federal, state and local taxes.

      

      Seller further warrants that the crude oil delivered
shall not be contaminated by chemicals foreign to virgin crude oil including,
but not limited to chlorinated and/or oxygenated hydrocarbons and
lead.  Buyer shall have the right, without prejudice to any other
remedy available to Buyer, to reject and return to Seller any quantities of
crude oil which are found to be so contaminated, even after delivery to
Buyer.

      

      C. Rules and Regulations:  The terms,
provisions and activities undertaken pursuant to this Agreement shall be subject
to all applicable laws, orders and regulations of all governmental
authorities.  If at any time a provision hereof violates any such
applicable laws, orders or regulations, such provision shall be voided and the
remainder of the Agreement shall continue in full force and effect unless
terminated by either party upon giving written notice to the other party
hereto.  If applicable, the parties hereto agree to comply with all
provisions (as amended) of the Equal Opportunity Clause prescribed in 41 C.F.R.
60-1.4; the Affirmative Action Clause for disabled veterans and veterans of the
Vietnam Era prescribed in 41 C.F.R. 60-250.4; the Affirmative Action Clause for
Handicapped Workers prescribed in 41 C.F.R. 60-741.4; 48 C.F.R. Chapter 1
Subpart 19.7 regarding Small Business and Small Disadvantaged Business Concerns;
48 C.F.R. Chapter 1 Subpart 20.3 regarding Utilization of Labor Surplus Area
Concerns; Executive Order 12138 and regulations thereunder regarding
subcontracts to women-owned business concerns; Affirmative Action Complicance
Program (41 C.F.R. 60-1.40); annually file SF-100 Employer Information Report
(41 C.F.R. 60-1.7); 41 C.F.R. 60-1.8 prohibiting segregated facilities; and the
Fair Labor Standards Act of 1938 as amended, all of which are incorporated in
this Agreement by reference.

      

      D. Hazard Communication:  Seller shall provide
its Material Safety Data Sheet ("MSDS") to Buyer.  Buyer acknowledges
the hazards and risks in handling and using crude oil.  Buyer shall
read the MSDS and advise its employees, its affiliates, and third parties, who
may purchase or come into contact with such crude oil, about the hazards of
crude oil, as well as the precautionary procedures for handling said crude oil,
which are set forth in such MSDS and any supplementary MSDS or written
warning(s) which Seller may provide to Buyer from time to
time.

      

      E. Force Majeure:  Except for payment due
hereunder, either party hereto shall be relieved from liability for failure to
perform hereunder for the duration and to the extent such failure is occasioned
by war, riots, insurrections, fire, explosions, sabotage, strikes, and other
labor or industrial disturbances, acts of God or the elements, governmental
laws, regulations, or requests, acts in furtherance of the International Energy
Program, disruption or breakdown of production or transportation facilities,
delays of pipeline carrier in receiving and delivering crude oil tendered, or by
any other cause, whether similar or not, reasonably beyond the control of such
party.  Any such failures to perform shall be remedied with all
reasonable dispatch, but neither party shall be required to supply substitute
quantities from other sources of supply.  Failure to perform due to
events of Force Majeure shall not extend the terms of this
Agreement.

      

      Notwithstanding the above, and in the event that the
Agreement is an associated purchase/sale, or exchange of crude oil, the parties
shall have the rights and obligations described below in the circumstances
described below:

      

      (1) If, because of Force Majeure, the party declaring
Force Majeure (the "Declaring Party") is unable to deliver part or all of the
quantity of crude oil which the Declaring Party is obligated to deliver under
the Agreement or associated contract, the other party (the "Exchange Partner")
shall have the right but not the obligation to reduce its deliveries of crude
oil under the same Agreement or associated contract by an amount not to exceed
the number of barrels of crude oil that the Declaring Party fails to
deliver.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Confidential
Portions Redacted and Filed with the Commission pursuant to 17 CFR
200.83.  “***” Symbolizes Language Omitted Pursuant to an Application
For Confidential Treatment

       

      (2) If, because of Force Majeure, the Declaring Party is
unable to take delivery of part or all of the quantity of crude oil to be
delivered by the Exchange Partner under the Agreement or associated contract,
the Exchange Partner shall have the right but not the obligation to reduce its
receipts of crude oil under the same Agreement or associated contract by an
amount not to exceed the number of barrels of crude oil that the Declaring Party
fails to take delivery of.

      

      F. Payment:  Unless otherwise specified in the
Special Provisions of this Agreement, Buyer agrees to make payment against
Seller's invoice for the crude oil purchased hereunder to a bank designated by
Seller in U.S. dollars by telegraphic transfer in immediately available
funds.  Unless otherwise specified in the Special Provisions of this
Agreement, payment will be due on or before the 20th of the month following the
month of delivery.  If payment due date is on a Saturday or New York
bank holiday other than Monday, payment shall be due on the preceding New York
banking day.  If payment due date is on a Sunday or a Monday New York
bank holiday, payment shall be due on the succeeding New York banking
day.

      

      Payment shall be deemed to be made on the date good
funds are credited to Seller's account at Seller's designated
bank.

      

      In the event that Buyer fails to make any payment when
due, Seller shall have the right to charge interest on the amount of the overdue
payment at a per annum rate which shall be two percentage points higher than the
published prime lending rate of Morgan Guaranty Trust Company of New York on the
date payment was due, but not to exceed the maximum rate permitted by
law.

       

      G. Financial Responsibility:  Notwithstanding
anything to the contrary in this Agreement, should Seller reasonably believe it
necessary to assure payment, Seller may at any time require, by written notice
to Buyer, advance cash payment or satisfactory security in the form of a Letter
or Letters of Credit at Buyer's expense in a form and from a bank acceptable to
Seller to cover any or all deliveries of crude oil.  If Buyer does not
provide the Letter of Credit on or before the date specified in Seller's notice
under this section, Seller or Buyer may terminate this Agreement
forthwith.  However, if a Letter of Credit is required under the
Special Provisions of this Agreement and Buyer does not provide same, then
Seller only may terminate this Agreement forthwith.  In no event shall
Seller be obligated to schedule or complete delivery of the crude oil until said
Letter of Credit is found acceptable to Seller. Each party may offset any
payments or deliveries due to the other party under this or any other agreement
between the parties.

      

      If a party to this Agreement (the "Defaulting Party")
should (1) become the subject of bankruptcy or other insolvency proceedings, or
proceedings for the appointment of a receiver, trustee, or similar official, (2)
become generally unable to pay its debts as they become due, or (3) make a
general assignment for the benefit of creditors, the other party to this
Agreement may withhold shipments without notice.

      
        	
                H.

              	
                Liquidation:

              

      

      

      (1) Right to Liquidate.  At any time after the
occurrence of one or more of the events described in the third paragraph of
Section G, Financial Responsibility, the other party to the Agreement (the
"Liquidating Party") shall have the right, at its sole discretion, to liquidate
this Agreement by terminating this Agreement.  Upon termination, the
parties shall have no further rights or obligations with respect to this
Agreement, except for the payment of the amount(s) (the "Settlement Amount" or
"Settlement Amounts") determined as provided in Paragraph (3) of this
section.

      

      (2) Multiple Deliveries.   If this
Agreement provides for multiple deliveries of one or more types of crude oil in
the same or different delivery months, or for the purchase or exchange of crude
oil by the parties, all deliveries under this Agreement to the same party at the
same delivery location during a particular delivery month shall be considered a
single commodity transaction ("Commodity Transaction") for the purpose of
determining the Settlement Amount(s).  If the Liquidating Party elects
to liquidate this Agreement, the Liquidating Party must terminate all Commodity
Transactions under this Agreement.

      

      (3) Settlement Amount.   With respect to
each terminated Commodity Transaction, the Settlement Amount shall be equal to
the contract quantity of crude oil, multiplied by the difference between the
contract price per barrel specified in this Agreement (the "Contract Price") and
the market price per barrel of crude oil on the date the Liquidating Party
terminates this Agreement (the "Market Price").  If the Market Price
exceeds the Contract Price in a Commodity Transaction, the selling party shall
pay the Settlement Amount to the buying party.  If the Market Price is
less than the Contract Price in a Commodity Transaction, the buying party shall
pay the Settlement Amount to the selling party.  If the Market Price
is equal to the Contract Price in a Commodity Transaction, no Settlement Amount
shall be due.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Confidential
Portions Redacted and Filed with the Commission pursuant to 17 CFR
200.83.  “***” Symbolizes Language Omitted Pursuant to an Application
For Confidential Treatment

       

      (4) Termination Date.   For the purpose
of determining the Settlement Amount, the date on which the Liquidating Party
terminates this Agreement shall be deemed to be (a) the date on which the
Liquidating Party sends written notice of termination to the Defaulting Party,
if such notice of termination is sent by telex or facsimile transaction; or (b)
the date on which the Defaulting Party receives written notice of termination
from the Liquidating Party, if such notice of termination is given by United
States mail or a private mail delivery service.

      

      (5) Market Price.   Unless otherwise
provided in this Agreement, the Market Price of crude oil sold or exchanged
under this Agreement shall be the price for crude oil for the delivery month
specified in this Agreement and at the delivery location that corresponds to the
delivery location specified in this Agreement, as reported in Platt's Oilgram
Price Report ("Platt's") for the date on which the Liquidating Party terminates
this Agreement.  If Platt's reports a range of prices for crude oil on
that date, the Market Price shall be the arithmetic average of the high and low
prices reported by Platt's.  If Platt's does not report prices for the
crude oil being sold under this Agreement, the Liquidating Party shall determine
the Market Price of such crude oil in a commercially reasonable manner, unless
otherwise provided in this Agreement.

      

      (6) Payment of Settlement Amount.   Any
Settlement Amount due upon termination of this Agreement shall be paid in
immediately available funds within two business days after the Liquidating Party
terminates this Agreement.  However, if this Agreement provides for
more than one Commodity Transaction, or if Settlement Amounts are due under
other agreements terminated by the Liquidating Party, the Settlement Amounts due
to each party for such Commodity Transactions and/or agreements shall be
aggregated.  The party owing the net amount after such aggregation
shall pay such net amount to the other party in immediately available funds
within two business days after the date on which the Liquidating Party
terminates this Agreement.

      

      (7) Miscellaneous.   This section shall
not limit the rights and remedies available to the Liquidating Party by law or
under other provisions of this Agreement.  The parties hereby
acknowledge that this Agreement constitutes a forward contract for purposes of
Section 556 of the U.S. Bankruptcy Code.

      

      I. Equal Daily Deliveries:  For pricing
purposes only, unless otherwise specified in the Special Provisions, all crude
oil delivered hereunder during any calendar month shall be considered to have
been delivered in equal daily quantities during such month.

      

      J. Exchange Balancing:  If volumes are
exchanged, each party shall be responsible for maintaining the exchange in
balance on a month-to-month basis, as near as pipeline or other transportation
conditions will permit.  In all events upon termination of this
Agreement and after all monetary obligations under this Agreement have been
satisfied, any volume imbalance existing at the conclusion of this Agreement of
less than 1,000 barrels will be declared in balance.  Any volume
imbalance of 1,000 barrels or more, limited to the total contract volume, will
be settled by the underdelivering party making delivery of the total volume
imbalance in accordance with the delivery provisions of this Agreement
applicable to the underdelivering party, unless mutually agreed to the
contrary.  The request to schedule all volume imbalances must be
confirmed in writing by one party or both parties.  Volume imbalances
confirmed by the 20th of the month shall be delivered during the calendar month
after the volume imbalance is confirmed.  Volume imbalances confirmed
after the 20th of the month shall be delivered during the second calendar month
after the volume imbalance is confirmed.

       

      K. Delivery, Title, and Risk of
Loss:  Delivery, title, and risk of loss of the crude oil delivered
hereunder shall pass from Seller to Buyer as follows: For lease delivery
locations, delivery of the crude oil to the Buyer shall be effected as the crude
oil passes the last permanent delivery flange and/or meter connecting the
Seller's lease/unit storage tanks or processing facilities to the Buyer's
carrier.  Title to and risk of loss of the crude oil shall pass from
Seller to Buyer at the point of delivery.

      

      For delivery locations other than lease/unit delivery
locations, delivery of the crude oil to the Buyer shall be effected as the crude
oil passes the last permanent delivery flange and/or meter connecting the
delivery facility designated by the Seller to the Buyer's carrier.  If
delivery is by in-line transfer, delivery of the crude oil to the Buyer shall be
effected at the particular pipeline facility designated in this
Agreement.  Title to and risk of loss of the crude oil shall pass from
the Seller to the Buyer upon delivery.

      

      L. Term:  Unless otherwise specified in the
Special Provisions, delivery months begin at 7:00 a.m. on the first day of the
calendar month and end at 7:00 a.m. on the first day of the following calendar
month.

      M. Governing Law: This Agreement and any disputes
arising hereunder shall be governed by the laws of the State of
Texas.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Confidential
Portions Redacted and Filed with the Commission pursuant to 17 CFR
200.83.  “***” Symbolizes Language Omitted Pursuant to an Application
For Confidential Treatment

      

      N. Necessary Documents:  Upon request, each
party agrees to furnish all substantiating documents incident to the
transaction, including a Delivery Ticket for each volume delivered and an
invoice for any month in which the sums are due.

      

      O. Waiver:  No waiver by either party
regarding the performance of the other party under any of the provisions of this
Agreement shall be construed as a waiver of any subsequent performance under the
same or any other provisions.

      

      P. Assignment:  Neither party shall assign
this Agreement or any rights hereunder without the written consent of the other
party unless such assignment is made to a person controlling, controlled by or
under common control of assignor, in which event assignor shall remain
responsible for nonperformance.

      

      Q. Entirety of Agreement:  The Special
Provisions and these General Provisions contain the entire Agreement of the
parties; there are no other  promises, representations or
warranties.  Any modification of this Agreement shall be by written
instrument.  Any conflict between the Special Provisions and these
General Provisions shall be resolved in favor of the Special
Provisions.  The section headings are for convenience only and shall
not limit or change the subject matter of this Agreement.

      

      R. Definitions:  When used in this Agreement,
the terms listed below have the following meanings:

      "API" means the American Petroleum
Institute.

      "ASME" means the American Society of Mechanical
Engineers.

      "ASTM" means the American Society for Testing
Materials.

      "Barrel" means 42 U.S. gallons of 231 cubic inches per
gallon corrected to 60 degrees Fahrenheit.

      "Carrier" means a pipeline, barge, truck, or other
suitable transporter of crude oil.

      "Crude Oil" means crude oil or condensate, as
appropriate.

      "Day," "month," and "year" mean, respectively, calendar
day, calendar month, and calendar year, unless otherwise
specified.

      "Delivery Ticket" means a shipping/loading document or
documents stating the type and quality of crude oil delivered, the volume
delivered and method of measurement, the corrected specific gravity,
temperature, and S&W content.

      "Invoice" means a statement setting forth at least the
following information:  The date(s) of delivery under the transaction;
the location(s) of delivery; the volume(s); price(s); the specific gravity and
gravity adjustments to the price(s) (where applicable); and the term(s) of
payment.

      "S&W" means sediment and water.

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