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	Impact of August 2020 Warrant Distribution on
Long-Term Incentive Awards

On June 26, 2020, Occidental’s Board of Directors declared a distribution to holders of its common stock of warrants to purchase additional shares of common stock. On August 3, 2020 (the “Distribution Date”), holders of Occidental common stock received 1/8th of a warrant for each share of common stock held as of July 6, 2020, the record date, and each warrant entitles the holder to purchase one share of Occidental common stock for an initial purchase price of $22 per share. The warrants are listed on the New York Stock Exchange (“NYSE”) separately under the ticker symbol “OXY WS” and trade separately from Occidental common stock. Holders are able to sell the warrants at the then-prevailing market price on the NYSE, subject to compliance with Occidental’s insider trading policy and applicable securities laws.  

If you held equity-based long-term incentive awards that were outstanding on the Distribution Date, then those awards will be adjusted in connection with the warrant distribution. This memo describes the adjustment methodology for your awards.

Option Awards

The formula below shows the adjustment for Option Awards:
															
	Number of shares of common stock underlying award
	x
	Adjustment Ratio (1)
	=
	Adjusted number of shares of common stock (rounded down to the nearest whole share)

	Exercise price per share
	/
	Adjustment Ratio
	=
	Adjusted exercise price (rounded up to the nearest whole cent)

(1) The “Applicable Ratio” is approximately 1.039 and represents a fraction equal to (i) (A) the product of (x) the average of the high and low prices of a warrant trading on the NYSE on August 4, 2020 and (y) 1/8, plus (B) the closing sales price of Occidental common stock on August 4, 2020 over (ii) the closing sales price of Occidental common stock on August 4, 2020

Example

If an Option Award covers 100 shares of common stock at a per share exercise price of $40 and the Applicable Ratio equals 1.039, then the adjusted number of shares of common stock covered by the Option Award would be 103 and the adjusted per share exercise price would be $38.50.

Stock Appreciation Right Awards

The formula below shows the adjustment for Stock Appreciation Right Awards:
															
	Number of shares of common stock underlying award
	x
	Adjustment Ratio (1)
	=
	Adjusted number of shares of common stock (rounded down to the nearest whole share)

	Grant price per share
	/
	Adjustment Ratio
	=
	Adjusted grant price (rounded up to the nearest whole cent)

(1) The “Applicable Ratio” is approximately 1.039 and represents a fraction equal to (i) (A) the product of (x) the average of the high and low prices of a warrant trading on the NYSE on August 4, 2020 and (y) 1/8, plus (B) the closing sales price of Occidental common stock on August 4, 2020 over (ii) the closing sales price of Occidental common stock on August 4, 2020

Example

If a Stock Appreciation Right Award covers 100 shares of common stock at a per share grant price of $40 and the Applicable Ratio equals 1.039, then the adjusted number of shares of common stock covered by the Stock Appreciation Right Award would be 103 and the adjusted per share grant price would be $38.50.

Restricted Stock Awards (including Performance-Based Restricted Stock)

Subject to your continued service with Occidental through August 31, 2020, you will receive, on August 31, 2020, a number of fully vested warrants equal to:
															
	Number of shares of common stock underlying award
	x
	Distribution Ratio(1)
	=
	Number of warrants (rounding up to the nearest warrant)(2)

(1) The “Distribution Ratio” is 1/8 of a warrant per share of common stock 
(2) Upon vesting, warrants will be “net-settled” for tax withholding 

If you do not remain employed through August 31, 2020, your warrants will be forfeited.  Warrants will not be issued to former employees who hold restricted shares.

Time-Based Restricted Stock Unit Awards

Within 60 days following the Distribution Date, you will receive a number of fully vested warrants equal to:
															
	Number of shares of common stock underlying award
	x
	Distribution Ratio(1)
	=
	Number of warrants (rounding up to the nearest whole warrant)(2)

(1) The “Distribution Ratio” is 1/8 of a warrant per share of common stock 
(2) Upon vesting, warrants will be “net-settled” for tax withholding 

Performance-Based Stock Unit Awards 

Within 60 days following the Distribution Date, you will receive a number of restricted warrants equal to:
															
	Number of shares of common stock underlying award (based on target performance)
	x
	Distribution Ratio(1)
	=
	Number of restricted warrants (rounding up to the nearest whole warrant)(2)

(1) The “Distribution Ratio” is 1/8 of a warrant per share of common stock 
(2) Upon vesting, warrants will be “net-settled” for tax withholding 

The warrants will vest upon satisfaction of the threshold performance conditions and service-based vesting conditions applicable to the underlying Performance-Based Stock Unit Award. If the applicable threshold performance is not achieved or the service-vesting condition is not achieved, the warrants will be forfeited. If vested, warrants will be delivered at the same time that the underlying Performance-Based Stock Unit Award is settled.

**********************

You can view your equity awards through your StockPlan Connect account with Morgan Stanley by going to www.stockplanconnect.com and logging on with your user name and password.  Any warrants from the adjustments described above will be viewable as soon as administratively practicable after issuance. See the related FAQ document for more information.

Note that the warrant adjustments described in this document do not pertain to any shares you previously acquired from vested and settled or exercised awards that are held at Morgan Stanley or with any other broker. Those shares of Occidental common stock, to the extent outstanding on the July 6, 2020 record date, participated in the distribution of warrants on the Distribution Date.

Please send an email to OxyWarrants@Oxy.com with any questions.EXHIBIT 10.29

 

OPTION
AGREEMENT

 

This
option agreement (the “Option Agreement”), is made on August 13, 2020 (the “Effective
Date”), by TORCHLIGHT ENERGY, INC., a Texas corporation, and TORCHLIGHT HAZEL, LLC, a Texas limited
liability company, whose mailing address is 5700 W. Plano Pkwy #3600, Plano, TX 75093 and email address is john@torchlightenergy.com
(collectively “Torchlight”), MASTERSON HAZEL PARTNERS, LP, a Texas limited partnership whose
mailing address is P.O. Box 1189, Midland, TX 79702 and email address is ced@mastersonps.com (“Masterson”),
and McCabe Petroleum Corporation, a Texas Corporation, whose mailing address is 500 W. Texas Ave. Ste. 890, Midland, TX 79701
and email address is gregmccabe@aol.com (“MPC”) collectively the “Parties”.

 

I
– Drilling Obligation & Grant of Options

 

Masterson
shall drill and complete, or cause to be drilled and completed, at its sole cost and expense (subject to Sections V and VII),
a new lateral well on Torchlight’s Hazel Prospect1 (the “Well”) sufficient to satisfy
Torchlight’s continuous development obligations on the southern half of the Hazel Prospect2 (“Southern
Drilling Obligations”). Masterson shall satisfy the Southern Drilling Obligations no later than September 30, 2020.
Provided, however, that Masterson shall be entitled to receive, as its sole recourse for the recoupment of Drilling Costs, the
revenue from production of the Well attributable to Torchlight’s interest (“Production Revenue”)
until such time as it has recovered its reasonable costs and expenses for drilling, completing, and operating the Well (“Drilling
Costs”).

 

In
exchange for Masterson satisfying the Southern Drilling Obligations, Torchlight grants to Masterson the exclusive right and option
to perform operations, at Masterson’s sole cost and expense, on the Hazel Prospect sufficient to satisfy Torchlight’s
continuous development obligations on the northern half of the Hazel Prospect (“Northern Drilling Obligations”),3
as defined below (the “Drilling Option”). Masterson will also pay to Torchlight $1,000.00 at the
time this Option Agreement is executed and delivered as further consideration of the Options (“Option Fee”).
In spite of anything to the contrary, if Masterson fails to satisfy the Southern Drilling Obligations by September 30, 2020, then
the Options will automatically terminate, and Torchlight may retain the Option Fee as its sole remedy.

 

In
the event that Masterson exercises such Drilling Option and satisfies the Northern Drilling Obligations, then Masterson shall
have the option to purchase the Hazel Prospect under the terms of the Purchase and Sale Agreement which is attached as Exhibit
“B” (the “Purchase Option”). The Drilling Option and Purchase Option may be collectively
referred to herein as the “Options”.

 

 

		1	“Hazel
Prospect” means Torchlight and its subsidiaries’ interests in the Hazel Prospect leases and the lands described in
Exhibit “A” and the Assets as described in the Purchase Sale Agreement attached as Exhibit “B”.

 

		2	The
south half of the Hazel Prospect being those 5,131.44 net mineral acres in Sections 70, 71, 72, 73, 74, 75, 41, 86, 87 and 88
as described further in Exhibit “A” and the Assets as described in the Purchase Sale Agreement attached as Exhibit
“B”.

 

		3	The
north half of the Hazel Prospect being those 4,630.64 net mineral acres in Sections 89, 90, 91, 102, 103, 104, 105, 106 and 107
as described further in Exhibit “A”.

    
	OPTION AGREEMENT	- Page 1 -

 

     

    

II
- Option Period

 

The
time during which Masterson may exercise the Options shall be from the Effective Date through and including December 1, 2020,
unless extended under the terms of this Option Agreement (the “Option Period”). The Option Period may
be extended to March 31, 2021 if Masterson: (1) has satisfied it obligations regarding the Well; (2) no later than December 1,
2020, delivers notice of intent to conduct operations sufficient to satisfy the Northern Drilling Obligations; and (3) on before
December 15, 2020 conducts operations sufficient to satisfy the Northern Drilling Obligations.

 

III
- Purchase Price of Hazel Prospect

 

The
full purchase price of the Hazel Prospect is $12,690,704.00 for approximately 9,762.08 net mineral acres (the “Purchase
Price”), and not less than a 74% net revenue interest (the “NRI”), which is payable as
provided in this Option Agreement and the “Purchase Sale Agreement”, which is to be executed by the
parties in the form of the document attached as Exhibit “B”, if Masterson elects to exercise the Purchase Option.
The price per net mineral acre shall be $1,300.00.

 

As
provided in the Purchase Sale Agreement, in the event Masterson establishes that Torchlight or its subsidiaries own more or less
net mineral acreage or NRI than set forth above, the Purchase Price shall accordingly be proportionately increased or reduced
by the price per net mineral acre.

 

Torchlight
shall maintain and protect the leasehold interest until execution of the Purchase Sale Agreement or give Masterson thirty (30)
days prior written notice of Torchlight’s intent not to maintain and protect said leasehold interest.

 

IV
– MPC Reversionary Interest

 

In
order to induce Masterson to enter into this Option Agreement, on the strict condition of Masterson closing the transaction pursuant
to the Purchase Sale Agreement, then MPC (an entity wholly owned by Greg McCabe) agrees to reduce its reversionary interest burdening
Torchlight’s proportionate interest in the Hazel Prospect (as described in that certain “Participation Agreement”
dated May 1, 2016) from 20% to not more than 12.5%.

 

V
- The Well

 

The
Well shall be a lateral well drilled by, or caused to be drilled by, Masterson utilizing a stimulation method at a location and
length approved, in writing and prior to commencement, by Greg McCabe or Rich Masterson. Masterson, its affiliates and agents
shall have the right to use any and all necessary Torchlight facilities, including, but not limited to, Torchlight or its affiliates’
tank battery. At all times Masterson shall conduct itself and the operations in a manner consistent with a reasonably prudent
operator.

    
	OPTION AGREEMENT	- Page 2 -

 

     

    

If,
during the drilling of the Well, Masterson shall encounter granite or any other practically impenetrable substance or encounter
mechanical difficulties or if the hole is lost for any reason not reasonably within control of Masterson, Masterson shall have
and is hereby granted the right to abandon said well; and Masterson may commence the actual drilling and completion, at Masterson’s
sole costs and expense (subject to Section VII), of a substitute well to serve as the Well. If a substitute well is commenced,
it will be drilled at a location and using a stimulation method and depth as approved by Greg McCabe or Rich Masterson. For the
avoidance of doubt, the substitute well shall be deemed to be the Well for all purposes of this Option Agreement.

 

Torchlight
shall instruct the payor of any proceeds of production to deliver all income attributable to Torchlight’s interest that
is generated from the Well directly to Masterson until Masterson’s Drilling Costs have been recouped in full. In the event
Torchlight receives any proceeds that should have been delivered to Masterson, Torchlight shall immediately notify Masterson and
send the misdelivered proceeds to Masterson.

 

VI
- Purchase Sale Agreement

 

Within
ten (10) days of a timely election of Masterson’s exercise of the Purchase Option pursuant to Section IV, Torchlight and
Masterson shall execute the Purchase Sale Agreement for the Hazel Prospect attached as Exhibit “B”.

 

The
Parties covenant that at any time after the Effective Date of this Option Agreement, they will execute such additional instruments
and take such actions as may be reasonably be requested by the party(ies) to confirm or perfect or otherwise to carry out the
intent and purposes of this Option Agreement.

 

VII
- Failure to Exercise Option

 

If
Masterson does not exercise the Drilling Option in accordance with its terms and within the Option Period, the Purchase Option
and the rights of Masterson will automatically and immediately terminate.

 

Pursuant
to the terms of Section V, if Masterson fails to exercise the Purchase Option, Masterson shall retain any and all income from
the Well until Masterson recoups all Drilling Costs, as Masterson’s sole recourse in recouping its Drilling Costs.

 

VIII
- Notices

 

All
notices provided for in this Option Agreement will be deemed to have been given if and when deposited in the United States mail
by registered or certified mail, properly stamped and addressed to the party for whom intended, at the party’s address listed
above, or when delivered personally in writing to the party, or via electronic mail to the addresses provided in the Option Agreement.

    
	OPTION AGREEMENT	- Page 3 -

 

     

    

IX
- Binding Effect and Miscellaneous Provisions

 

This
Option Agreement and corresponding Purchase Sale Agreement are subject to any and all leases, assignments, or other public filings
affecting the Assets, the Participation Agreement, that certain Farmout Agreement executed by and between Oxy USA, Inc. and Imperial
Exploration, LLC on March 21, 2016, and that certain Joint Operating Agreement executed by, between, and among Torchlight Energy
Operating, LLC, Torchlight Energy, Inc., and Imperial Exploration, LLC on May 1, 2016 (“JOA”).

 

This
Option Agreement is not transferable nor assignable unless agreed to by the Parties in writing and will be binding on and inure
to the benefit of the Parties to them and to their respective heirs, personal representatives, successors, and assigns. Any assignment
made in violation of this requirement is void.

 

Except
as otherwise expressly provided herein, no waiver with respect to this Option Agreement shall be enforceable unless in writing
and signed by the party against whom enforcement is sought. Except as otherwise expressly provided herein, no failure to exercise,
delay in exercising, or single or partial exercise of any right, power or remedy by any party, and no course of dealing between
or among any of the Parties, shall constitute a waiver of, or shall preclude any other or further exercise of, any right, power
or remedy.

 

This
Option Agreement may be executed in counterparts, each of which shall be deemed an original and both considered one and the same
Option Agreement and shall become effective when counterparts have been signed by each party and delivered to the other party,
it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by e-mail
delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such “.pdf” signature page were
an original thereof. This Option Agreement shall only be binding on the Parties and their respective successors and assigns when
executed by both of the Parties.

 

In
connection with the negotiation and drafting of this Option Agreement, the Parties represent and warrant to each other that they
have had the opportunity to be advised by attorneys of their own choice and, therefore, the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting Party shall not be employed in the interpretation of this
Option Agreement or any amendments hereto.

 

If
any provision of this Option Agreement is held to be illegal, invalid, or unenforceable under present or future law, such provision
shall be fully severable and this Option Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable
provision had never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall
not be affected by the illegal, invalid, or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such
illegal, invalid, or unenforceable provision, there shall be added automatically, as part of this Option Agreement, a provision
as similar in terms and substance to such illegal, invalid, or unenforceable provision as may be possible and legal, valid, and
enforceable.

    
	OPTION AGREEMENT	- Page 4 -

 

     

    

The
Parties agree that as between the Parties hereto the terms in this Option Agreement shall prevail should there be any conflict
with any other agreement, including, but not limited to, the Purchase Sale Agreement.

 

Capitalized
terms used but not defined herein shall have the respective meanings given to them in the Purchase Sale Agreement.

 

This
Option Agreement shall be governed by and construed in accordance with the domestic laws of the State of Texas without giving
effect to any choice or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other
than the State of Texas. The Parties agree that venue is proper in Midland County, Texas and if venue is not mandatory shall be
filed in a court of competent jurisdiction in Midland County, Texas.

 

This
Option Agreement shall not confer any rights or remedies upon any person other than the Parties and their respective successors
and assigns.

 

Each
of the Parties agrees to execute, acknowledge, and deliver to the other party such further instruments, and take such other actions,
as may be reasonably requested in order to more effectively assure to said other party all of the respective rights, titles, interests,
and privileges intended to be assigned or inuring to the benefit of such party in consummation of the transactions contemplated
hereby.

 

The
Parties agree that this Option Agreement is intended to be a fully-integrated document, and all prior agreements or understanding
regarding the subject matter are superseded by this Option Agreement.

 

A
Party prevailing in any legal action arising from this Option Agreement shall be entitled to recover its reasonable and necessary
attorney fees and costs from the non-prevailing Party(ies).

 

[Signature
pages follow.]

    
	OPTION AGREEMENT	- Page 5 -

 

     

    

The
Option Agreement has been executed as of the Effective Date set forth above.

 

	 	TORCHLIGHT ENERGY, INC.
	 	 
	 	X:	/s/
    John A. Brda
	 	Name: 	John
    A. Brda
	 	Title:	CEO

 

	STATE OF TEXAS	§
	 	§
	COUNTY
    OF 	Collin	§

 

BEFORE
ME, the undersigned authority, on this day personally appeared John A. Brda, who being duly sworn, upon oath, says
that he is authorized to execute this agreement; and he acknowledged to me that he executed the same for the purposes and considerations
therein expressed, and in the capacity stated herein. SUBSCRIBED AND SWORN TO before me by the said Chief Executive Officer
on this the 13th day of August, to certify which witness my hand and seal of office.

 

	 	/s/ Anna Karlsen
	 	Notary Public 
	 	In and For Said County and State
	 	 	 
	 	TORCHLIGHT HAZEL, LLC
	 	 	 
	 	X:	/s/
    John A. Brda
	 	Name: 	John
    A. Brda
	 	Title:	MGR

 

	STATE OF TEXAS	§
	 	§
	COUNTY
    OF 	Collin	§

 

BEFORE
ME, the undersigned authority, on this day personally appeared John A. Brda, who being duly sworn, upon oath, says
that he is authorized to execute this agreement; and he acknowledged to me that he executed the same for the purposes and considerations
therein expressed, and in the capacity stated herein. SUBSCRIBED AND SWORN TO before me by the said Manager on this
the 13th day of August, to certify which witness my hand and seal of office.

 

	 	/s/
    Anna Karlsen
	 	Notary
    Public 
	 	In
    and For Said County and State

    
	OPTION AGREEMENT	- Page 6 -

 

     

    

	 	MASTERSON
    HAZEL PARTNERS, LP
	 	 
	 	X: 	/s/
    Clifton DuBose Jr
	 	Clifton
    Edwin DuBose, Jr., CEO of Masterson

Hazel Management, LLC, its General Partner

 

	STATE OF TEXAS	§
	 	§
	COUNTY
    OF 	Midland	§

 

BEFORE
ME, the undersigned authority, on this day personally appeared Clifton E. DuBose, who being duly sworn, upon oath, says
that he is authorized to execute this agreement; and he acknowledged to me that he executed the same for the purposes and considerations
therein expressed, and in the capacity stated herein. SUBSCRIBED AND SWORN TO before me by the said CEO on this the 13th
day of August, to certify which witness my hand and seal of office.

 

	 	/s/ Amy Taylor
	 	Notary Public 
	 	In and For Said County and State
	 	 	 
	 	MCCABE PETROLEUM CORPORATION
	 	 	 
	 	X:	/s/
    Greg McCabe
	 	Name: 	Greg
    McCabe
	 	Title:	President

 

	STATE OF TEXAS	§
	 	§
	COUNTY
    OF 	Midland	§

 

BEFORE
ME, the undersigned authority, on this day personally appeared Greg McCabe, who being duly sworn, upon oath, says that
he is authorized to execute this agreement; and he acknowledged to me that he executed the same for the purposes and considerations
therein expressed, and in the capacity stated herein. SUBSCRIBED AND SWORN TO before me by the said President on this the
13th day of August, to certify which witness my hand and seal of office.

 

	 	/s/
    Amy Taylor
	 	Notary
    Public
	 	In
    and For Said County and State

    
	OPTION AGREEMENT	- Page 7 -

 

     

    

EXHIBIT
“A”

    
	OPTION AGREEMENT	- Page 8 -

 

     

    

EXHIBIT
“B”

    
	OPTION AGREEMENT	- Page 9 -

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