Document:

EXHIBIT 10.50

Exhibit 10.50

FRIENDFINDER NETWORKS INC. 

STOCK OPTION AGREEMENT

STOCK OPTION AGREEMENT (this “Agreement”), dated as of ________ (the “Grant Date”), between FriendFinder Networks Inc., a Nevada corporation (the “Company”) and ________________ (“Participant”).

WHEREAS, Participant currently serves as a consultant and advisor to the Board of Directors of the Company; and

WHEREAS, the Company desires to grant to Participant an option to purchase shares of Common Stock, $0.001 par value per share, of the Company (“Common Stock”) in the amount, and subject to the terms and conditions, set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements herein contained, intending to be legally bound hereby, the parties hereto agree as follows:

1.

Grant of Option.  

(a)

The Company hereby grants to Participant an option (the “Option”) to purchase ________ shares (the “Shares”) of Common Stock at a per-Share purchase price equal to the per-Share price offered to the public at the time of an IPO (the “Exercise Price”).  The Company shall cause certificates for any Shares purchased pursuant to the exercise of any portion of this option to be delivered to Participant upon payment of the Exercise Price in full, all subject to the terms and conditions hereinafter set forth.  The Option granted hereby is a nonqualified stock option.

(b)

The Option granted to Participant pursuant to this Agreement is granted pursuant to the FriendFinder Networks Inc. Amended and Restated 2008 Stock Option Plan (the “Plan”), a true and correct copy of which is attached hereto as Exhibit A.  The provisions of the Plan are incorporated herein by reference.  Unless otherwise defined in this Agreement, capitalized terms used in this Agreement shall have the meaning set forth in the Plan.

2.

Vesting.  

(a)

Subject to Section 2(b) below, this Option shall vest to the extent of twenty percent (20%) on the first anniversary of the date hereof and an additional twenty percent (20%) on each of the succeeding four anniversaries of the date hereof (each vesting date specified therein is hereafter referred to as a “Vesting Date”); provided, however, that the Participant may exercise the vested portion of the Option only after that date which is 18 months after the date of an IPO (such date being hereinafter called the “Effective Date”).  

(b)

(i)

Termination of Vesting in the Event of Death. In the event of Participant’s death during the term of this Option, the Option shall cease to vest with respect to any unvested shares as of the date of the Participant’s death.

(ii)

Acceleration of Vesting due to Change of Control.  In the event that during the term of this Option there occurs a Change of Control (as defined below), then the shares which are unvested at that time of such Change of Control shall immediately vest.  The term “Change of Control” shall mean: (a) the consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons who immediately prior to such merger, consolidation or other reorganization did not own 50% or more of the voting power of the Company own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each of (i) the continuing or surviving entity and (ii) any direct or indirect parent corporation of such continuing or surviving entity; (b) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of the Company (together with any new directors whose election to such board or whose nomination for election by the stockholders of the Company was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved), cease for any reason to constitute a majority of such Board of Directors then in office; (c) the sale, transfer or other disposition of all or substantially all of the Company’s assets; (d) any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Company representing at least 50% of the total voting power represented by the Company’s then outstanding voting securities, or (e) the liquidation or dissolution of the Company or the adoption of a plan of liquidation or dissolution by the Company.  For purposes of this paragraph, the term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a parent or subsidiary and (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company.  A transaction shall not constitute a Change of Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.

3.

Term and Termination.

(a)

This Option shall expire on the date that is ten (10) years from the Grant Date (the “Expiration Date”); provided, that in the event of Participant’s death this Option may be exercised, to the extent vested on the date of Participant’s death, by Participant’s Designated Beneficiary (or, if none has been effectively designated, by his or her executor, administrator or person to whom his or her rights under the Option shall pass by will or by the laws of descent and distribution) at any time prior to the earlier of (i) the date that is one year after death and (ii) the Expiration Date.

For purposes of this Agreement, “Employment” shall mean the Participant’s service as a consultant and advisor to the Company’s Board of Directors.

(b)

Nothing contained in this Agreement shall limit or be deemed to limit the Company’s rights to terminate the Participant’s Employment.  

4.

No Transfer of Option.  This Option may not be transferred by the Participant except by will or the laws of descent and distribution.  This Option may not be exercised during the Participant’s lifetime except by the Participant.  The term “transfer” shall include assign, dispose, pledge or hypothecate whether by operation of law or otherwise, or be made subject to sale under execution, attachment or similar process of this Option or any right or interest in this Option.  Any attempted transfer or other disposition of this Option contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon this Option, shall be null and void and without effect.

5.

Payment of Exercise Price and Tax Withholding.  On the date of the exercise of this Option, payment of the Exercise Price for the number of Shares with respect to which this Option is being exercised shall be made to the Company at the Company’s principal office, and shall be made at the option of the Participant (i) in cash or by personal or certified check, (ii) by delivery of Common Stock certificates (in negotiable form) representing shares of Common Stock (not subject to limitations on transfer) having a Fair Market Value equal to the aggregate Exercise Price of the shares of Common Stock with respect to which this Option is being exercised, (iii) through net exercise, using shares of Common Stock to be acquired upon exercise of this option, such shares of Common Stock being valued at their Fair Market Value on the date of exercise, or (iv) through such other form of consideration as is deemed acceptable by the Committee.  If the Participant does not make a choice as to the above, the exercise will be through net exercise using shares of Common Stock to be acquired upon exercise of this Option against payment of the exercise price and any withholding taxes due.  In addition and at the time of exercise, as a condition of delivery of the Common Stock, the Participant shall remit to the Company all required federal, state and local withholding tax amounts in the manner determined by the Committee.

6.

Investment Representation.  Upon the exercise of this Option at a time when there is not in effect a registration statement under the Securities Act of 1933, as amended, relating to the Shares subject to this Option, the Participant hereby represents and warrants, and by virtue of such exercise shall be deemed to represent and warrant, to the Company that such Shares shall be acquired for investment and not with a view to the distribution thereof, and not with any present intention of distributing the same, and the Participant shall provide the Company with such further representations and warranties as the Company may require in order to ensure compliance with applicable federal and state securities, blue sky and other laws.

7.

Limitations on Exercise of Option.  This Option shall not be exercisable, and no shares of Common Stock subject to this Option shall be purchased upon the exercise of this Option, unless and until the Company and the Participant shall have complied with all applicable federal or state registration, listing and qualification requirements and all other requirements of law or of any regulatory agencies having jurisdiction, unless the Committee has received evidence satisfactory to it that the Participant may acquire such shares pursuant to an exemption from registration under the applicable securities laws.  Any determination in this connection by the Committee shall be final, binding and conclusive.  The Company reserves the right to legend any certificate for shares of Common Stock, conditioning sales of such shares upon compliance with applicable federal and state securities laws and regulations.

8.

No Rights as Common Stockholder.  The Participant shall not be, nor shall a transferee of an Participant be, nor have any of the rights or privileges of, a holder of Common Stock in respect of any Shares purchasable upon the exercise of any part of this Option unless and until certificates representing such shares shall have been issued by the Company to such holder.  No adjustments shall be made, except as provided in Section 9 below, nor shall the Company have any obligation to issue any dividends or otherwise afford any rights to which shares of Common Stock are entitled, until the date of the issuance to the Participant of such certificates.

2

9.

Adjustments.  If at any time while this Option is outstanding, the number of outstanding shares of Common Stock is changed by reason of a reorganization, recapitalization, Common Stock split or any of the other events described in Section 9 of the Plan, the number and kind of shares of Common Stock subject to this Option, and/or the exercise price of such shares, shall be adjusted in accordance with Section 9 of the Plan.

10.

Notices.  Any notice hereunder by the Participant shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof at the Company’s offices.  Any notice hereunder by the Company shall be given to the Participant in writing and such notice shall be deemed duly given only upon receipt thereof at such address as the Participant may have on file with the Company.

11.

Terms of Plan.  This Agreement shall be subject to all of the terms and conditions of the Plan.  If there is any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.

12.

Construction.  The interpretation of this Agreement is vested in the Committee, and the Committee’s interpretation shall be final and conclusive.

13.

Governing Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of Florida, without giving effect to the choice of law principles thereof.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

3

IN WITNESS WHEREOF, the Company and Participant have caused this Stock Option Agreement to be duly executed on the day and year first above written.

FRIENDFINDER NETWORKS INC. 

By: __________________________________

Name:

Title: 

_________________________________

[PARTICIPANT]

[Signature Page to Stock Option Agreement]

Exhibit A

FriendFinder Networks Inc. Amended and Restated 2008 Stock Option Planex10_26.htm

EXHIBIT 10.26

 

	

	
Occidental Energy Marketing, Inc.

A subsidiary of Occidental Petroleum Corporation

	
5 Greenway Plaza, Suite 110, Houston, Texas 77046-0521

P. O. Box 27570, Houston, Texas 77227-7570

Phone 713.215.7000

	 	 

 

CRUDE OIL CONTRACT 

 

VIA FAX:

 

	
TO:

	
Pioneer Natural Resources USA, Inc.

	  	
Attn: Contract Management Services

	  	
Fax: (972) 969-3574

	  	
Trader: Deb Stewart

	  	  
	
FROM:

	
Occidental Energy Marketing, Inc.

	  	
5 Greenway Plaza, Suite 110

	  	
Houston, TX 77046-0521

	  	
Trader: Mark Hafner

	  	  
	  	
Contract date: December 13, 2010

 

This contract is entered into by and between Occidental Energy Marketing, Inc. (“OEMI”) and Pioneer Natural Resources USA, Inc. (“Counterparty”) on the Transaction Date specified below covering the crude oil transaction described below (the “Transaction”).

 

The terms of the particular Transaction to which this Contract relates are as follows:

 

	
OEMI Contract #

	  	
1101-PNR-176641-P

	
Counterparty Contract #

	  	  
	
Commodity:

	  	
Crude Oil

	
Transaction Date:

	  	
December 13, 2010

	  	  	  
	
PART A:

	  	
OEMI Receives From Counterparty

	
Buyer:

	  	
OEMI

	
Seller:

	  	
Pioneer Natural Resources USA, Inc.

	
Delivery Period:

	  	
Jan 1, 2011 through June 30, 2011 and continuing month to month subject to thirty (30) day advance written notice of cancellation.

	
Quantity (BBLS/Day):

	  	
Equal to production from lease(s) on Exhibit “A”. Approximately 5067 bpd.

	
Price (US$/BBL) (A):

	  	
NYMEX CMA + NYMEX Roll Component (A) + Argus Mid/Cush Differential + 7% of the Argus Sour Differential (being a positive number) less the lease delta on Exhibit “A”.

	
Crude Type:

	  	
West Texas Intermediate

	
Delivery Point/Carrier

	  	
At the lease into OEMI’s designated transporters trucks.

	
(A) Pricing Terms Defined in Exhibit B.

 

Exchange and Buy/Sell Contracts: If this Agreement is an exchange or buy/sell contract, OEMI’s delivery of crude oil under Part B above is done only in consideration of and is contingent on OEMI’s receipt of crude oil as set forth in Part A above.

 

Payment: Payment shall be made by wire transfer of immediately available funds to the account set forth on Seller’s invoice. If a Master Netting Agreement is in effect between OEMI and Counterparty (a “Netting Agreement”) and such agreement covers the transactions entered into under this Agreement, payment shall be subject to the terms of the Netting Agreement. If no Netting Agreement is in effect between the parties or if the Netting Agreement is terminated in accordance with its terms, then payment shall be made in accordance with the Conoco General Provisions, Domestic Crude Oil Agreements, effective January 1, 1993.

 

12/13/2010

 

  

  

  

 

 

Recording of Conversations: Each party (i) consents to the recording of telephone conversations between the trading, marketing and other relevant personnel of the parties in connection with this Agreement or any potential crude oil transaction between the parties; (ii) agrees to obtain any necessary consent of, and give any necessary notice of such recording to, its relevant personnel; and (iii) agrees, to the extent permitted by applicable law, that recordings may be submitted in evidence in any proceedings between the parties with respect to this Agreement.

 

Amendments: No amendments or modification to this Agreement shall be effective unless in writing and mutually agreed to by both parties hereto.

 

Limitation of Liability: NEITHER PARTY SHALL BE LIABLE IN AN ACTION INITIATED BY ONE AGAINST THE OTHER FOR EXEMPLARY, PUNITIVE, SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES RESULTING FROM OR ARISING OUT OF THIS CONTRACT OR THE PERFORMANCE OR NON-PERFORMANCE OF THIS CONTRACT, INCLUDING, WITHOUT LIMITATION, LOSS OF VALUE, LOSS OF OPPORTUNITY, LOSS OF FINANCIAL ADVANTAGE, LOSS OF PROFIT OR BUSINESS INTERRUPTIONS, HOWEVER SAME MAY BE CAUSED. THIS PROVISION HAS BEEN EXPRESSLY NEGOTIATED IN EVERY DETAIL, IS INTENDED TO BE GIVEN FULL AND LITERAL EFFECT, AND SHALL BE APPLICABLE WHETHER OR NOT THE LIABILITIES, OBLIGATIONS, CLAIMS JUDGMENTS, LOSSES, COSTS, EXPENSES OR DAMAGES IN QUESTION ARISE OR AROSE SOLELY OR IN PART FROM THE GROSS, ACTIVE, PASSIVE OR CONCURRENT NEGLIGENCE, STRICT LIABLILITY, OR OTHER FAULT OF ANY PARTY. THE PARTIES HERETO ACKNOWLEDGE THAT THIS STATEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND CONSTITUTES CONSPICUOUS NOTICE.

 

General Terms and Conditions: Conoco General Provisions, Domestic Crude Oil Agreements, effective January 1, 1993, are incorporated herein by reference and made a part hereof. To the extent of any conflict between the provisions herein and the General Provisions, the provisions herein shall govern. All invoices and notices given pursuant to this agreement shall be in writing, telex or taxed and shall be deemed delivered when received by the other party at the address specified below.

 

Notices: Notices and all other correspondence to the parties shall be mailed or faxed as follows:

	  	  	  
	
Occidental Energy Marketing, Inc.

P. O. Box 27570

Houston, Texas 77227-7570

Phone: (713) 366-5890

Fax: (713) 985-1440

	  	
Pioneer Natural Resources USA, Inc.

5205 N. O’Connor Blvd, Suite 1400

Irving, TX 75039-3746

Phone: (972) 969-3855

Fax: (972) 969-3574

 

Invoices shall be mailed or faxed to the parties as follows:

	  	  	  
	
Occidental Energy Marketing, Inc.

P. O. Box 27570

Houston, Texas 77227-7570

Phone: (713) 366-5082

Fax: (713) 985-1377

	  	
Pioneer Natural Resources USA, Inc.

5205 N. O’Connor Blvd, Suite 1400

Irving, TX 75039-3746

Phone: (972) 969-3855

Fax: (972) 969-3574

 

Entire Agreement: This fax evidences our understanding of the entire agreement between OEMI and Counterparty and shall constitute the formal contract. Please acknowledge your acceptance of and agreement to the terms stated herein by signing below as indicated, indicate your contract number in the appropriate blank above and return this agreement by fax to Crystal Landon (fax: 713-985-1440). Unless we receive notice of your objections within five (5) business days, we will consider this agreement as final and binding on both parties.

 

12/13/2010

 

  

  

  

 

The parties agree that faxed documents shall be deemed admissible as primary evidence in a court of law as original or as counterparts of the original documents, each of which shall be retained by each party and available for inspection by the other party.

 

Regards,

	  	  	  	  	  	  
	
Occidental Energy Marketing, Inc.

	  	
Pioneer Natural Resources USA, Inc.

	  	  	  	  	  	  
	
By:

	

	  	
By:

	  
	  	  	  	  	  	  
	
Name: 

	
          Steve Wyman

	  	
Name: 

	  
	  	  	  	  	  
	
Title:

	
          VP Domestic Crude Trading

	  	
Title:

	  
	  	  	  	  	  
	
Date:

	  	  	
Date:

	  

 

12/13/2010

 

  

  

  

 

EXHIBIT “A”

 

OEMI’s CONTRACT: 1101-PNR-176641-P

Counter Party Name: Pioneer Natural Resources USA, Inc.

Counter Party Contract Number:

Allegro Contract Number: 176641

 

	
INTERFACE

	 	

PRODUCT 

	 	
OPERATOR

	 	
LEASE NAME

	 	

LEASE EFFECTIVE

DATE

	 	

CONTROLLED

%

	 	
COUNTY

	 	
STATE

	 	
TRANSPORTER

	 	

DELTA

	 	

DELTA

EFFECTIVE

DATE

	 	

CONTRACT

	 	
    PRICE INDEX

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
742093480000PNTS

	 	

WTI

	 	
Pioneer Natural

Resources USA. Inc.

	 	
ABRAXAS 27

	 	
1/1/2011

	 	
100.00000000

	 	
MARTIN

	 	
TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093410000PNTS

	 	

WTI

	 	
Pioneer Natural

Resources USA. Inc.

	 	

ABRAXAS 27A

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093420000PNTS

	 	

WTI

	 	
Pioneer Natural

Resources USA. Inc.

	 	

ABRAXAS 28.28C CONSOL

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093430000PNTS

	 	

WTI

	 	
Pioneer Natural

Resources USA. Inc.

	 	

ABRAXAS 28A/SLAUGHTER 19D.29A

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093440000PNTS

	 	

WTI

	 	
Pioneer Natural

Resources USA. Inc.

	 	

ABRAXAS 30

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093470000PNTS

	 	

WTI

	 	
Pioneer Natural

Resources USA. Inc.

	 	

ABRAXAS 30B

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093450000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ABRAXAS 31

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093460000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ABRAXAS 32A CONSOL

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093990000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ALDWELL K 2

	 	
1/1/2011

	 	
100.00000000

	 	

REAGAN

	 	

TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

74209400000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ALDWELL K 45

	 	
1/1/2011

	 	
100.00000000

	 	

REAGAN

	 	

TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094010000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ALDWELL L & M

	 	
1/1/2011

	 	
100.00000000

	 	

REAGAN

	 	

TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093490000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ALLAR 11

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093500000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ALLAR 17AWHEELER 17

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093510000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ALLAR 19

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093520000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ALLAR 27

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093530000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ALLAR 3

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093540000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ALLAR 37

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093550000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ARICK 34

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093560000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

CHIEFTAN/RAMSEY WL

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093570000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ELLIS 8

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094030000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

H F NEAL

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094060000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

HACIENDA

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093580000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

HARRISON

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093590000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

HERNANDEZ 20

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094040000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

JACK GARNER

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094050000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

LANE 11

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

74209360000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

LOUDER 18/SLATTON

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093610000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

LOUDER 33

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093620000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

MARTIN CONSOL

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093640000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

MCADAMS 10

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093630000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

MCCLANE

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093650000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

MCMORRIES 1

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093660000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

MCMORRIES 10

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093670000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

MCMORRIES 33

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093680000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

MEEK A

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093690000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

MEEK D

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093700000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

MEEK E CONSOL

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

S1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093710000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

MEEK F

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093720000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

OA DICKENSON/CASAGA

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093730000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ORSON E

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093740000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ORSON G

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093750000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ORSON HU

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093760000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ORSON K

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093770000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ORSON L

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093780000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

ORSON M

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094070000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

OWENS /VINA VANCE

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094120000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

OWENS L

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094130000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

PEMBROOK 26

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093790000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

PINKERTON

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094140000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

RATLIFF 6

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093800000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

RICHARDS 25

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093810000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

RICHARDS 44

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094060000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

RUBY

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093820000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

SCOTT 28

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093880000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 6-16, 6-17

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093890000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 6-25 & 6-25A

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093900000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 6-39 & 6-45

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093860000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 6-43 & 7-1

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093970000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 7-11, 7-18

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093920000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 7-15

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093930000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 7-22

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093940000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 7-23, 7-33

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093950000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 7-29

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093960000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 7-39

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093980000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 7-41 & 7-43

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093910000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNIVERSITY 7-6 & 7-8

	 	
1/1/2011

	 	
100.00000000

	 	

ANDREW

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094090000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

UNRUH

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093830000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

VOGLER 13

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093840000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

VOGLER 14

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742093850000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

VOGLER 6

	 	
1/1/2011

	 	
100.00000000

	 	

MARTIN

	 	

TX

	 	
OET Trucks

	 	

$1.15

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094020000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

WHEELER STORAGE

	 	
1/1/2011

	 	
100.00000000

	 	

REAGAN

	 	

TX

	 	
OET Trucks

	 	

$1.29

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094100000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

WOOLEY 7

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1 19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

	

742094110000PNTS

	 	

WTI

	 	
Pioneer Natural 

Resources USA. Inc.

	 	

WOOLRIDGE 11

	 	
1/1/2011

	 	
100.00000000

	 	

UPTON

	 	

TX

	 	
OET Trucks

	 	

$1.19

	 	
1/1/2011

	 	
176641

	 	
XPA - Midland Sweet + 7%AWTSdiff

 

  

Page 1 of 1

  

 

EXHIBIT “B”

 

NYMEX CMA + NYMEX Roll Component (A) + Argus Mid/Cush Differential + 7% of the Argus Sour Differential

 

“NYMEX CMA” means the arithmetic average of the daily settlement prices for the “Light Sweet Crude Oil” prompt month contract reported by NYMEX for the period beginning with the first day of the delivery month through the last day of the delivery month, including weekends and NYMEX holidays and NYMEX non-trading days with the previous day’s settlement price applying to weekends and NYMEX holidays and NYMEX non-trading days.

 

“NYMEX Roll Component (A)” means the sum of (1) DM Average minus 2M Average, multiplied by a “Decimal Factor” determined by dividing the number of calendar days in the delivery month that the 2M Contract trades on the NYMEX by the number of calendar days in the delivery month, plus (2) DM Average minus 3M Average, multiplied by a factor determined by subtracting the Decimal Factor from one. If the 2M Contract expires on a day immediately preceding a NYMEX non-trading day, the days following such expiration and prior to the next NYMEX trading day shall be deemed as 2M Contract trading days for the purposes of calculating the Decimal Factor.

 

          “2M Average” means the arithmetic average of the daily settlement prices, for trading days only, for the “Light Sweet Crude Oil” contract for the month following the delivery month (the “2M Contract”) reported by the NYMEX during Roll Trading Days.

 

          “3M Average” means the arithmetic average of the daily settlement prices, for trading days only, for the “Light Sweet Crude Oil” contract for the second month following the delivery month (the “3M Contract”) reported by the NYMEX during the Roll Trading Days.

 

          “DM Average” means the arithmetic average of the daily settlement prices, for trading days only, for the “Light Sweet Crude Oil” delivery month contract reported by the NYMEX during Roll Trading Days.

 

“Roll Trading Days” for a given delivery month means the trading days beginning on the first day that the NYMEX contract for the delivery month becomes the prompt contract and ending on the last day of trading for such contract.

 

“Argus Mid/Cush Diff” means the average of daily quotations of the “Wtd Avg” differential assessment for WTI-Midland as reported in the Argus Report for Grade Trading Days.

 

“Argus Sour Diff” means the average of daily quotations of the “Wtd Avg” differential assessment for prompt month WTS as reported in the Argus Report for Grade Trading Days.

 

“NYMEX” means the New York Mercantile Exchange.

 

“Argus” means Argus Media Ltd.

 

“Argus Report” means the daily Argus Americas Crude report published by Argus.

 

“Grade Trading Days” means for a given delivery month the trading days beginning on the 26th of the second month preceding the delivery month and ending on the 25th of the month immediately preceding the delivery month.

 

12/13/2010

 

  

  

  

  

 

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.

 

          (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.

 

Effective January 1, 1993

Supersedes November 1983 General Provisions

 

  

  

  

 

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.

 

          (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.

 

Effective January 1, 1993

Supersedes November 1983 General Provisions

 

  

  

  

 

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.

 

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.

 

Effective January 1, 1993

Supersedes November 1983 General Provisions

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