Document:

Exhibit 4.3

Exhibit 4.3

Execution Version

SUPPLEMENT NO. 1 TO

AMENDED AND RESTATED GUARANTY OF PAYMENT

(DOMESTIC CREDIT PARTIES)

SUPPLEMENT NO. 1 dated as of August 31, 2011 to the AMENDED AND RESTATED GUARANTY OF PAYMENT
(DOMESTIC CREDIT PARTIES), dated as of July 28, 2011 (the “Agreement”), among ABERCROMBIE &
FITCH CO., a Delaware corporation (“Parent”), and each direct and indirect Subsidiary of
Parent party thereto (each a “Domestic Subsidiary” and, together with Parent and any other
Domestic Subsidiaries that become parties hereto as contemplated by Section 25 thereof, referred to
herein individually as a “Guarantor” and collectively as the “Guarantors”), and PNC
BANK, NATIONAL ASSOCIATION, as global administrative agent (the “Global Agent”) for the
lenders (the “Lenders”) party to the Amended and Restated Credit Agreement, dated as of
July 28, 2011 (as further amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among Abercrombie & Fitch Management Co. (the “Company”), the
Foreign Subsidiary Borrowers party thereto, Parent, the Lenders party thereto, the Global Agent,
PNC Capital Markets LLC, as co-lead arranger and co-bookrunner, J.P. Morgan Securities, LLC, as
co-lead arranger and co-bookrunner, JPMorgan Chase Bank, N.A., as the Syndication Agent, Fifth
Third Bank, as co-documentation agent and The Huntington National Bank, as co-documentation agent.

The Guarantors have entered into the Agreement in order to induce the Lenders to make Loans to
the Borrowers (such term and other capitalized terms used herein and not otherwise defined herein
having the meanings assigned to such terms in the Agreement and the Credit Agreement). Section 25
of the Agreement provides that additional Domestic Subsidiaries may become Guarantors under the
Agreement by execution and delivery of an instrument in the form of this Supplement. The
undersigned Domestic Subsidiary (the “New Guarantor”) is executing this Supplement to
become a Guarantor under the Agreement. As a Subsidiary, the New Guarantor acknowledges that it
derives substantial benefits from the extension of credit to the Borrowers under the Credit
Agreement.

Accordingly, the Global Agent and the New Guarantor agree as follows:

SECTION 1. In accordance with Section 25 of the Agreement, the New Guarantor by its signature
below becomes a Guarantor under the Agreement with the same force and effect as if originally named
therein as a Guarantor and the New Guarantor hereby agrees to all the terms and provisions of the
Agreement applicable to it as a Guarantor thereunder. Each reference to a “Guarantor” in the
Agreement shall be deemed to include the New Guarantor. The Agreement is hereby incorporated
herein by reference.

SECTION 2. The New Guarantor represents and warrants that this Supplement has been duly
authorized, executed and delivered by it and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency
and similar laws affecting creditors’ rights generally and equitable principles of general
applicability.

SECTION 3. This Supplement may be executed in counterparts, each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Supplement
shall become effective when the Global Agent shall have received a counterpart of this Supplement
that bears the signature of the New Guarantor.

SECTION 4. Except as expressly supplemented hereby, the Agreement shall remain in full force
and effect.

 

1

 

SECTION 5. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND
THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF OHIO
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

SECTION 6. In case any one or more of the provisions contained in this Supplement should be
held invalid, illegal or unenforceable in any respect, no party hereto shall be required to comply
with such provision for so long as such provision is held to be invalid, illegal or unenforceable
and the validity, legality and enforceability of the remaining provisions contained herein and in
the Agreement, and of any such provision with respect to any other Guarantor, shall not in any way
be affected or impaired. The parties shall endeavor in good-faith negotiations to replace any
invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable provisions.

SECTION 7. All communications and notices hereunder shall be in writing and given as provided
in Section 15 of the Agreement. All communications and notices hereunder to the New Guarantor
shall be given to it at the address set forth under its signature below.

SECTION 8. The New Guarantor agrees to reimburse the Global Agent for its out-of-pocket
expenses in connection with this Supplement, including the fees, disbursements and other charges of
counsel for the Global Agent.

[Signature Page Follows]

 

2

 

IN WITNESS WHEREOF, the New Guarantor and the Global Agent have duly executed this Supplement
to the Agreement as of the day and year first above written.

	 	 	 	 	 
	 	NSOP, LLC
 	 
	 	By:  	Abercrombie & Fitch Management Co., its Sole Member
 	 
	 
	 	By:  	                                                  /s/ Jonathan E. Ramsden
 	 
	 	 	Name:  	Jonathan E. Ramsden 	 
	 	 	Title:  	President 	 
	 
	 	Address

c/o Abercrombie & Fitch Co.

6301 Fitch Path

New Albany, Ohio 43054

Attention: Treasurer

Facsimile No. 614.765.8020

with a copy to the attention of the General

Counsel (Facsimile No. 614.283.8961)

PNC BANK, NATIONAL ASSOCIATION, as 
Global Agent

 	 
	 	By:  	/s/ Thomas E. Redmond
 	 
	 	 	Name:  	Thomas E. Redmond 	 
	 	 	Title:  	Senior Vice President 	 

 

3exv10w1

Exhibit 10.1

August 31, 2011

	 	 	 	 	 	 	 

	FROM:

	 	Western Refining Southwest, Inc.

ATTN: Patt Wolfe, Contract Admin.

1250 W. Washington St. #101

Tempe, AZ 85281
	 	TO:
	 	Resolute Natural Resources Company, LLC

ATTN: Pat Flynn

1675 Broadway

Denver, CO 80231

and

Navajo Nation Oil and Gas Company

ATTN: Wilson Groen

P.O. Box 4439

Window Rock, AZ 86515

CRUDE OIL PURCHASE AGREEMENT

Western Contract # ____________

This Agreement is entered into between Resolute Natural Resources Company, LLC (“Resolute” or
“Seller”) and Western Refining Southwest, Inc. as Buyer (“Western Southwest” or “Buyer”) for the
sale and purchase of crude oil under the terms and conditions set forth below. This contract
covers volumes of crude oil owned by Seller as well as volumes owned by Navajo Nation Oil and Gas
Company (“NNOGC”) and committed to this Agreement with NNOGC’s acknowledgement and consent as set
forth below.

	 	 	 

	Seller:

	 	Resolute, on behalf of itself and NNOGC
	 
	 	 
	Buyer:

	 	Western Southwest
	 
	 	 
	Quantity:

	 	Buyer shall purchase from Seller the following volumes of crude
oil during the respective Term (Base Volume Term or Additional
Volume Term, as applicable) to such volumes:
	 
	 	 
	 

	 	Base Volume
	 

	 	The percentage of crude oil production owned by Resolute and
NNOGC from the lease units in San Juan County, Utah as reflected
on Exhibit A (the “Lease Units”), if available, up to 8,000
barrels per day (“Base Volume”).
	 
	 	 
	 

	 	Additional Volume
	 

	 	Up to an additional 3,000 barrels per day of crude oil owned by
Resolute and NNOGC from the Lease Units, if available,
(“Additional Volume”).
	 
	 	 
	Product &

Quality:

	 	Four Corners Sweet Crude Oil

1

 

	 	 	 

	Term:

	 	This Agreement has two applicable terms, that applicable to the
Base Volume, and that applicable to the Additional Volume.
	 
	 	 
	 

	 	With respect to the Base Volume, the term of this Agreement shall be two years,
commencing on August 1, 2011, and ending on July 31, 2013 (the “Initial Base Volume
Term”). This Agreement will continue automatically with respect to the Base Volume
after the Initial Base Volume Term on a month-to-month basis unless and until
terminated by either Party with one hundred-eighty (180) days prior written notice of
termination. Under this Agreement the Initial Base Volume Term, together with any
month-to-month continuation thereafter shall be referred to collectively as the “Base
Volume Term.”
	 
	 	 
	 

	 	With respect to the Additional Volume, the term of this Agreement shall be six
calendar months, commencing on August 1, 2011, and ending on February 1, 2012 (the
“Initial Additional Volume Term”). This Agreement will continue automatically with
respect to the Additional Volume after the Initial Additional Volume Term on a
month-to-month basis unless and until terminated by either Party with one
hundred-twenty (120) days prior written notice of termination. Under this Agreement
the Initial Additional Volume Term, together with any month-to-month continuation
thereafter shall be referred to collectively as the “Additional Volume Term.” The
period during which either the Base Volume Term or the Additional Volume Term is in
effect shall be referred to as the “Term.”
	 
	 	 
	 

	 	Any notice of termination in which a party elects to terminate the Additional Volume
Term shall not automatically serve as a notice to terminate the Base Volume Term.
Any notice of termination pursuant to which a party elects to terminate the Base
Volume Term shall also automatically serve as a notice to terminate the Additional
Volume Term.
	 
	 	 
	 

	 	Notwithstanding the foregoing, at any time during the Term of this Agreement, Western
Southwest may terminate this Agreement in its entirety upon sixty (60) days written
notice to Seller in the event that the Navajo Nation takes the position that any
portion of the Western Southwest and/or Western Refining Pipeline Company (“Western
Pipeline”) right-of-ways that Western Southwest or Western Pipeline utilizes to
deliver Resolute Volumes to the Gallup refinery is not valid and Western Refining
and/or Western Pipeline (a) are unable to use such right-of-ways, or, (b) the Navajo
Nation asserts that Western Southwest or Western Pipeline is in trespass regarding
such right-of-ways.
	 
	 	 
	 

	 	Seller may also terminate this Agreement in its entirety at any time that the
guarantee of Western Refining, Inc. (“Western”) substantially in the form of Exhibit
B is revoked or the amount guaranteed is less than the amount of exposure to Seller;
provided that Seller has given Buyer and Western written notice that the guarantee is
less than the amount of exposure to Seller and Western has not, within thirty (30)
days modified the guarantee to exceed the amount of exposure to Seller.
	 
	 	 
	Price:

	 	All Volumes sold pursuant to this contract shall be priced at the NYMEX trading days average
for the current (delivery) calendar month less a discount of $6.25 per barrel. Resolute shall
also pay any CPI-based cost of service increases during the term of this
Agreement in the Running Horse tariff between Aneth and Bisti, New Mexico, plus

2

 

	 	 	 

	 

	 	equivalent amounts (“Gallup Cost Increase”) for assumed equivalent increased costs in
the Western pipeline from Bisti to the Gallup refinery.
	 
	 	 
	Delivery:

	 	FOB at the Lease Units.
	 
	 	 
	Division 

Order:

	 	Based on existing Division Orders, which will be
provided to Western Southwest by Seller.
	 
	 	 
	Payment:

	 	Due and payable on the 20th day of the
month which immediately follows the month of delivery
provided that Seller has submitted all necessary
substantiating documents incident to the transaction
for each volume delivered and an invoice for which
sums are due. Payment shall be made via wire
transfer on or before the due date to a bank
designated on Seller’s invoice in immediately
available federal funds.
	 
	 	 
	Late Payment:

	 	Any amount payable for any of the Product sold hereunder or
otherwise payable by Buyer to Seller hereunder shall, if not paid when due,
bear interest from the due date (inclusive) until the date full payment is
received by Seller (exclusive) at a rate equal to the lesser of: (a) one
percent (1%) above the prime rate in effect at the opening of business on the
due date at the major lending institutions as quoted in the “Money Rates”
section of the Wall Street Journal; or (b) the maximum rate of interest
permitted under applicable law. Buyer shall pay such interest within five (5)
calendar days following its receipt of an invoice for such interest via wire
transfer or immediately available federal funds to Seller’s designated bank.
To help ensure payment to Seller hereunder, Buyer’s ultimate parent will
provide a Parent Guaranty in the form of Exhibit B.
	 
	 	 
	Credit:

	 	Omitted.
	 
	 	 
	Audit rights:

	 	Each Party shall have the right at all reasonable
times, upon written request, to audit all records of
the other Party pertinent to this agreement to verify
such Party’s compliance with the terms and conditions
of this agreement. Notwithstanding the foregoing,
each Party shall be entitled to protect the
confidentiality of any information that it considers
proprietary. If any audit conducted pursuant to this
section reveals that there was an inaccuracy or
omission in the invoices submitted under this
agreement, the Parties shall, within ten (10) days of
a request by either Party therefore, meet to discuss
the adjustments and/or payments that would be
necessary to correct such inaccuracy or omission;
provided however, that no adjustments and/or payments
shall be made in respect of any inaccuracy or
omission first alleged after the second anniversary
of the date of the invoice containing such inaccuracy
or omission.

3

 

Contacts:

	 	 	 	 	 	 	 	 	 
	 	 	Western Southwest:	 	SELLER
	Scheduling /

Nominations

	 	Sunny Leung
	 	FAX:
602.683.5703
	 	Pat Flynn
	 	FAX:
303.623.3628
	 
	 	 	 	 	 	 	 	 
	Contracts /

Documents

	 	Patt Wolfe
	 	FAX:
602.683.5655
	 	Pat Flynn
	 	FAX:
303.623.3628
	 
	 	 	 	 	 	 	 	 
	Invoice /

Payments

	 	Mary Ellen O’Brien
	 	FAX:
915.534.2665
	 	Jim Tuell
	 	FAX:
303.623.3628

	 	 	 

	Rail Facility:

	 	At Resolute’s option, exercised at any time during the term of this Agreement,
Western Southwest will be required to build, within nine months from Resolute’s notice of
exercise, the capability to load up to 3,000 bpd of crude oil into rail cars at Western
Southwest’s Gallup refinery (“Rail Facility”). Resolute will pay 50 percent of the costs
associated with design and construction of the Rail Facility upon invoice by Western
Southwest, Resolute’s share not to exceed $500,000. At any time, and from time to time, after
Resolute’s notice of exercise and Western Southwest’s subsequent construction of the Rail
Facility, Resolute may elect by notice to Western Southwest to enter into the Buy/Sell
arrangement described below, with respect to the following Additional Volume, not to exceed
3,000 bpd:
	 
	 	 
	 

	 	A.   Volumes not subject to sale to Western Southwest under this Agreement;

	 
	 	 
	 

	 	B.   Volumes produced during periods when Western Southwest’s Gallup refinery is unable
to process or otherwise does not take Resolute Volumes.

	 
	 	 
	 

	 	Provided, Western Southwest’s obligation to enter into the Buy/Sell arrangement
provided for in this section is conditioned upon there being adequate pipeline
capacity between Bisti and Gallup to physically transport these additional barrels;
or, provided Resolute agrees to pay all costs necessary to increase pipeline capacity
as necessary to transport these additional barrels.
	 
	 	 
	 

	 	The Buy/Sell arrangement would be an industry customary arrangement with Resolute
providing for Western Southwest to buy the relevant barrels at either Aneth Field or
Western Southwest’s Bisti Station (at Resolute’s election) and sell these barrels to
Resolute in Gallup loaded in rail cars supplied by Resolute at Western Southwest’s
Gallup refinery. The differential cost to Resolute for this service shall be $2.50
per barrel if the Buy/Sell is initiated at Bisti. If the Buy/Sell is initiated at
Aneth, the differential cost to Resolute for this service shall be $2.50 per barrel
plus the Running Horse tariff from Aneth to Bisti. The differential will be adjusted
annually beginning January 1, 2012 by the Gallup Cost Increase.
	 
	 	 
	 

	 	The Buy/Sell will contain industry standard pipeline loss allowances and will provide
for the sale to Resolute to occur at the point the crude oil passes the flange to the
rail cars. Resolute will be solely responsible for providing and arranging for
switching of the rail

4

 

	 	 	 

	cars.

Miscellaneous:
	 	 
	 

	 	A.   Where not in conflict with the express terms hereof, this
Agreement shall be governed by the Conoco General Terms and Conditions dated
January 1, 1993, as amended by Amendment dated August 1, 2009 (the “Conoco
GTCs”) as appended hereto as Exhibit C, with the term “Special Terms of this
Agreement” meaning the terms of this Agreement other than such Conoco GTCs. The
terms of this Agreement will control to the extent there is any conflict between
the terms of this Agreement and the Conoco GTCs.

	 
	 	 
	 

	 	B.   Seller represents and warrants unto Buyer that Seller has full
right and authority to enter into this Agreement with respect to all of the
crude oil volumes to be delivered hereunder, and Seller agrees to fully
indemnify, defend (using counsel reasonably acceptable to Buyer) and hold
harmless Buyer and its parent, affiliate and subsidiary entities, from and
against any claim, action, suit, demand or complaint (of any nature whatsoever)
which any government entity, any interest owner in any well or lease, or any
other third-party may bring related to this warranty.

	 
	 	 
	 

	 	C.   This Agreement shall be binding upon and inure to the benefit of
the Parties hereto, and their respective heirs, representatives, successors and
permitted assigns.

	 
	 	 
	 

	 	D.   Neither Party nor any subcontractor or vendor of either Party
shall give or receive any commission, fee, rebate, or gift or entertainment of
significant cost or value in connection with this Agreement, or enter into any
business arrangement with any director, employee or agent of the other Party or
its parent or affiliated entities other than as a representative of the Party to
this Agreement, without the other Party’s prior written agreement. Each Party
shall promptly notify the other of any violation of this paragraph.

	 
	 	 
	 

	 	E.   In the event that either Party is required or desires to give
notice to the other Party under the terms of this Agreement, such notice shall
be given by certified or registered first-class mail, return receipt requested,
or by delivery by a nationally recognized overnight courier (i.e. FedEx) to the
addresses listed on page 1 of this Agreement. The Parties may change the
contact addresses upon providing written notice to the other Party.

	 
	 	 
	 

	 	F.   If any term or provision of this Agreement or the application
thereof to any person or circumstances shall to any extent be invalid or
unenforceable, the remainder of this Agreement or the application of such terms
or provisions to persons or circumstances other than those as to which it is
invalid or unenforceable, shall not be affected thereby and each term and
provision of this Agreement shall be valid and enforceable to the fullest extent
permitted by law.

5

 

This Agreement, together with the Conoco GTCs, represents the entire agreement of the Parties and
there are no other promises, representations, warranties, or reciprocal agreements affecting,
incidental to, conditional upon, or related to this agreement and all previous understandings and
agreements, whether oral or written, regarding the subject matter hereof are superseded by and
merged into this Agreement.

Please confirm acceptance of this agreement by return fax to: Attn: Patt Wolfe, at (602)
683-5655. Thank you for your help in arranging for this Agreement.

	 	 	 	 	 	 	 	 	 	 	 

	BUYER:	 	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Western Refining Southwest, Inc.	 	 	 	Resolute Natural Resources Company, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Mark J. Smith	 	 	 	By:	 	/s/ James M. Piccone	 	 
	Printed Name:
	 	Mark
J. Smith 
	 	 	 	Printed Name:	 	James
M. Piccone 
	 	 
	Title:
	 	President
- Refining & Marketing
	 	 	 	Title:	 	President 
	 	 
	Date:
	 	8/31/11 
	 	 	 	Date:	 	8/31/11 
	 	 
	 
	 	 
	 	 	 	 	 	 
	 	 

Navajo Nation Oil and Gas Company, a/k/a Navajo Nation Oil & Gas Company, Inc. (“NNOGC”) hereby
acknowledges and agrees that its crude oil volumes covered by this Agreement are validly committed
to sale pursuant to the terms of this Agreement.

	 	 	 	 	 	 	 

	 	 	Navajo Nation Oil and Gas Company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Wilson Groen	 	 
	 

	 	Printed Name:
	 	Wilson
Groen 

	 	 
	 

	 	Title:
	 	President
& CEO 

	 	 
	 

	 	Date:
	 	8/31/11 

	 	 
	 

	 	 	 	 	 	 

6

 

EXHIBIT A

	 	 	 	 	 
	Lease Name	 	County/State	 	Percentage
	Aneth Unit

	 	San Juan, Utah
	 	0.74503856
	McElmo Creek Unit

	 	San Juan, Utah	 	0.82136043
	Ratherford Unit

	 	San Juan, Utah	 	0.68012156
	 
	 	 	 	 

Effective January 1, 1993

Supersedes November 1983 General Provisions

 

 

EXHIBIT B

FORM OF CONTINUING GUARANTY OF WESTERN REFINING, INC.

GUARANTY

     IN CONSIDERATION of Resolute Natural Resources Company, LLC and all its subsidiaries and
affiliates (hereinafter referred to as “Creditor”), extending credit to Western Refining Southwest,
Inc. and all its subsidiaries, affiliates, and divisions, including Western Refining Wholesale,
Inc., (hereinafter referred to as “Debtor”), and other good and sufficient consideration to the
undersigned accruing, the undersigned hereby gives this Guaranty to Creditor for payment in full of
any and all indebtedness of the said Debtor to the said Creditor whether on open account or
evidenced by note, secured or unsecured, due and owing at the present time, or that may hereafter
be due and owing by said Debtor to said Creditor, up to a maximum amount at any time due and owing
of Fifty Million Dollars ($50,000,000). And, it is further agreed that if said bills are not paid
when due, subject to all defenses the Debtor has, excluding insolvency and/or bankruptcy, the
undersigned will pay the same upon notice and demand. The undersigned’s obligation under this
Guaranty is a guaranty of payment and not of collection.

     The undersigned, Western Refining, Inc., a Delaware corporation (the “Guarantor”) for itself,
its successors and assigns, agrees that it is financially interested in the said Debtor and agrees
to be held responsible for said payment obligations, precisely as if the same had been contracted
and due and owing by the undersigned itself, and agrees to pay said obligations upon notice and on
demand, for any balance that may be due and payable at any time for the products sold and furnished
by said Creditor to the said Debtor, subject to all defenses the Debtor has, excluding insolvency
and/or bankruptcy. This Guaranty shall extend to and cover all renewals of any claims or demands
guaranteed under this instrument, or the extension of time of payment thereof, or any other
modification of terms between Debtor and Creditor.

     This Guaranty shall be a continuing guaranty, unless the Guarantor shall have given notice of
revocation in writing to the Creditor addressed as follows: “Resolute Natural Resources Company,
LLC, 1675 Broadway, Suite 1950, Denver, CO 80202, Attention: James M. Piccone,” and such notice
shall have been received by the Creditor from the Guarantor. Such revocation, when made, shall
have no effect on the Guarantor’s obligations with respect to transactions previously entered into,
and shall apply only to obligations incurred by Debtor after thirty (30) days following actual
receipt of such notice of revocation, and any payments thereafter made by Debtor shall be applied
as the Creditor may elect. This Guaranty shall also terminate upon termination of the Crude Oil
Purchase Agreement and payment of all amounts due under that contract to Creditor. This Guaranty
supersedes and replaces any prior Guaranties signed by the undersigned parties or their predecessor
entities, related to the same obligations hereunder.

     Guarantor hereby waives (a) notice of acceptance of the Guaranty by Creditor, (b) notice of
purchases, sales, and deliveries of oil and/or condensate by or to
Debtor, the amounts and terms of such transactions, and any
modifications thereof, (c) notice of any extension of time for

Effective January 1, 1993

Supersedes November 1983 General Provisions

 

 

the payment of sums due and payable to Creditor and (d) suretyship defenses otherwise available
to the undersigned. This Guaranty shall inure to the benefit of the Creditor, its successors and
assigns, and can be modified only by a written instrument signed by Creditor and the undersigned.
This Guaranty shall be governed by and construed in accordance with the Laws of the State of Texas.

     IN
WITNESS WHEREOF, the undersigned corporation has signed this Guaranty
as Guarantor this 31st day of August, 2011.

	 	 	 	 	 	 	 

	 	 	WESTERN REFINING, INC.

(a Delaware corporation)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeff A. Stevens	 	 
	 

	 	 	 	 

Jeff A. Stevens
	 	 
	 

	 	 	 	President and CEO	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey S. Beyerdorfer	 	 
	 

	 	Name:
	 	Jeffrey
S. Beyerdorfer 

	 	 
	 

	 	Title:
	 	Senior
Vice President and Treasurer 

	 	 
	 

	 	 	 	 	 	 

Effective January 1, 1993

Supersedes November 1983 General Provisions

 

 

EXHIBIT C

CONOCO’S GENERAL TERMS AND CONDITIONS

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:

Effective January 1, 1993

Supersedes November 1983 General Provisions

 

 

     (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.

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.

Effective January 1, 1993

Supersedes November 1983 General Provisions

 

 

     (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.

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.

Effective January 1, 1993

Supersedes November 1983 General Provisions

 

 

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

 

 

Amendments to

ConocoPhillips 1993 General Provisions for Domestic Crude Oil Agreements

Effective August 1, 2009

*****

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. 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 term of this
Agreement; except the extent necessary to comply with the provisions of Section J (“Buy/Sell and
Exchange Balancing”). The party affected by a force majeure situation (the “Affected Party”) shall
take commercially reasonable steps to ameliorate the cause of such force majeure event to enable it
to resume performance during the term of this Agreement.

In addition to the above, and in the event substantially similar volumes are intended to be bought
and sold or exchanged under this Agreement, the parties shall have the rights and obligations set
forth in the circumstances described below:

     (1) If, because of Force Majeure, the Affected Party is unable to deliver part or all of the
quantity of crude oil which it is obligated to deliver under this Agreement, the other party shall
have the right, but not the obligation, to reduce its deliveries of crude oil under this Agreement
to match the volume actually delivered by the Affected Party.

     (2) If, because of Force Majeure, the Affected Party is unable to take part or all of the
quantity of crude oil which it is obligated to take under this Agreement, the other party shall
have the right, but not the obligation, to reduce its receipts of crude oil under this Agreement to
match the volume actually taken by the Affected Party.

*****

J   Buy/Sell and Exchange Balancing: The terms of this Section J shall only apply to this Agreement
if substantially similar volumes are intended to be bought and sold or exchanged under this
Agreement:

     (1) Each party shall be responsible for maintaining the volumes bought and sold or exchanged
in balance on a month-to-month basis, as near as reasonably possible.

     (2) If, for any reason (including events of force majeure), a party complies with the
requirements of Section J(1) but fails to deliver or accept delivery of the contractually specified
volume during any month (an “Imbalance Month”), then the

Effective January 1, 1993

Supersedes November 1983 General Provisions

 

 

party that delivered the lesser volume
during the Imbalance Month (the “Underdelivering
Party”) shall deliver to the other party a volume of crude oil equal to the difference between (a)
the volume delivered by the Underdelivering Party during the Imbalance Month, and (b) the volume
delivered by the other party during the Imbalance Month (such difference being the “Imbalance
Volume”). The Imbalance Volume shall be delivered as soon after the Imbalance Month as is
reasonably practicable it being understood that the parties shall endeavor to cause the Imbalance
Volumes confirmed by the 20th day of the Imbalance Month to be delivered during the immediately
following calendar month, and the Imbalance Volumes confirmed after the 20th day of the Imbalance
month to be delivered during the second calendar month after the Imbalance Month, except to the
extent prevented by a new or continued event of force majeure.

     (3) When a party fails to deliver or accept delivery of the contractually specified volume
during an Imbalance Month due to an event of force majeure, if the Imbalance Volume has not been
delivered before the end of the second calendar month after the Imbalance Month, and if no other
resolution of the Imbalance Volumes has been agreed between the Parties, during the third month
after the Imbalance Month, the Underdelivering Party shall deliver, and the other party shall take,
an amount of crude oil equal to the Imbalance Volume, and such delivery shall be of the same type
of crude oil, at the same location and (except as provided in Section J(4) below) at the same price
as the crude oil received by the Underdelivering Party during the Imbalance Month.

     (4) To the extent that an Imbalance Volume is delivered after the Imbalance Month, and except
as provided in the Special Provisions of this Agreement: (1) if the price specified in this
Agreement is a fixed price or a formula price based on the price of crude oil on a date or during a
specified range of dates (e.g., “April 12, 2009,” or “April 12-19, 2009”), the price of the
Imbalance Volumes shall be equal to such price without regard to the month of actual delivery; and
(2) if the price specified in this Agreement is a formula price based on the price of crude oil on
a date or during a range of dates that is not tied to a specific date or range of dates (e.g.,
“bill of lading date,” “month of delivery,” “NYMEX trade month” or “calendar month average”), the
price for the Imbalance Volumes will be calculated according to such formula for the actual month
the Imbalance volume is delivered.

(5) The foregoing notwithstanding, the obligation of either party to deliver or take an Imbalance
Volume less than 1000 barrels at the end of this Agreement shall be excused.

Effective January 1, 1993

Supersedes November 1983 General Provisions

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