Document:

ex10-4.htm

    EXHIBIT
10.4

    

    Terms of
Employment Arrangement

    between
Bay National Bank

    and Jill
Moraniec

    

    Ms.
Moraniec was retained effective June 25, 2007 and was promoted to Chief Credit
Officer, pending regulatory approval, in February 2009 (which approval was
received June 30, 2009).  Ms. Moraniec is employed on an at-will basis
at a rate of pay of $105,000 as of October 17, 2009.  Ms. Moraniec is
also eligible for incentive bonuses at the discretion of the Compensation
Committee of the Board of Directors, and was entitled to all benefits available
to full time employees of Bay National Bank.

    

    No
discretionary bonuses were paid to Ms. Moraniec for the period ended December
31, 2009.

     

     

     

     

     

     

     

     

     120put.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    17
September 2009

    

    Attn:
JEFF BAILEY Energy Settlements

    

    
      	 
      

    

    TENGASCO,
INC.

    10215
TECHNOLOGY DRIVE, SUITE 301 KNOXVILLE TN 37932

    USA

    

    Facsimile
Number: 001118656751621

    Energy
Option Transaction Confirmation - AMENDMENT Deal Ref. No: HH 3324173,0

    

    The
purpose of this letter is to confirm the terms and conditions of the Transaction
entered into between TENGASCO, INC, ("TENGASCOMM") and Macquarie Bank Limited
("MBL") on the Trade Date specified below (the "Transaction"), This letter
constitutes a "Confirmation" as referred to in the ISDA Master Agreement
specified below.

    

    The definitions and provisions
contained in the 2005 ISDA Commodity Definitions (the "Commodity
Definitions") (as published by the International
Swaps and Derivatives Association, Inc.) are incorporated into this
Confirmation. In the event of any inconsistency between those definitions and
this
Confirmation, this Confirmation will govern.

    

    This
Confirmation supplements, forms part of, and is subject to, the ISDA Master
Agreement dated as of 28 Jul 2009 as amended and supplemented from time to time
(the "Agreement") between you and us. All provisions contained in the Agreement
govern this Confirmation except as expressly modified below.

    

    The terms of the particular Transaction
to which this Confirmation relates are as follows: General Terms:

    Deal
Reference
No:                                           HH3320173,0

    Trade
Date:                                           28
July 2009 (Time of execution will be provided on request)

    Option
Style:                                           Asian

    Option
Type:                                           Put

    Buyer:                                           TENGASCOMM

    Seller:                                           MBL
(Acting as Principal)

     

    Commodity
Reference

    Price(s):                                           OIL-WTI-NYMEX

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                Specified
      Price:

              	 
      	
                The
      settlement price

              
	
                Delivery
      Date

              	 
      	
                First
      Nearby Month

              
	
                Strike
      Price per unit

              	 
      	
                USD
      60.00 per BBL

              
	
                Notional
      Quantity per

                Calculation
      period

              	 
      	
                For
      a particular Calculation period, the Notional Quantity specified in the
      Calculation Period Table below for such Calculation
  Period.

              
	 
      	 
      	 
      
	
                Unit(s):

              	 
      	
                US
      Barrels (“BBL”)

              
	 
      	 
      	 
      
	
                Calculation
      Period (s):

              	 
      	
                As
      specified in the Calculation Period Table below, each period from, and
      including, one period start date to, and including , the next following
      Period End Date.

              
	 
      	 
      	 
      
	
                Procedure
      for Exercise:

              	 
      	 
      
	
                Expiration
      Date:

              	 
      	
                 For
      a particular Calculation Period, the period End Date for such calculation
      period.

              
	 
      	 
      	 
      
	
                Cash
      Settlement Terms:

              	 
      	 
      
	 
      	 
      	 
      
	
                Cash
      Settlement

              	 
      	
                Applicable

              
	
                Settlement
      Date(s):

              	 
      	
                For
      a particular Calculation Period, Twenty-Five (25) Calendar Day(s)
      following the end of such Calculation Period.

              
	 
      	 
      	
                For
      information purposes only, each date currently expected to be a Settlement
      Date (each an “Expected Settlement Date”) is specified in the Calculation
      Period Table below.  In the event of any inconsistency between a
      Settlement Date and an Expected Settlement Date, the Settlement Date will
      prevail.

              
	
                Other
      terms

              	 
      	 
      
	
                Total
      Premium

              	 
      	
                In
      consideration of the above transaction, no payment is
  due

              
	 
      	 
      	 
      
	
                Account
      Details

              	 
      	
                Macquarie
      Bank Limited-OBU instructions: Bank of New York, New York (JRVTUS3N) ABA:
      021000018)

                Account
      number: 890-0055-375, CHIPS UID: 236386

                Account
      name: Macquarie Bank Limited, Sydney

                Beneficiary:
      Macquarie Bank Limited-OBU

              
	
                Business
      Day Convention:

              	 
      	
                If
      a Settlement Date or Premium payment date is not a Business Day, such
      Settlement Date or Premium Payment Date is subject to adjustment in
      accordance with the Modified Following Business Day
      Convention.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              New
      York

            

    

    
      	
              The
      Floating Price will be rounded to 3 decimal
  places.

            

    

    Business
Day: Rounding:

     

    Calculation
Period Table:

     

    
      	
              Period
      Start Date

            	
              Period
      End Date

            	
              Notional
      Quantity in

              BBL
      (" US Barrels")

            	
              Expected

              Settlement
      Date

            
	
              01-Aug-2009

            	
              31-Aug-2009

            	
              9,500

            	
              25-Sep-2009

            
	
              01-Sep-2009

            	
              30-Sep-2009

            	
              9,500

            	
              26-0ct-2909

            
	
              01-Oct-2009

            	
              31-0ct-2009

            	
              9,500

            	
              25-Nov-2009

            
	
              01-Nov-2009

            	
              30-Nov-2009

            	
              9,500

            	
              28-Dec-2009

            
	
              01-Dec-2009

            	
              31-Dec-2009

            	
              9,500

            	
              25-Jan-2010

            
	
              01-Jan-2010

            	
              31-Jan-2010

            	
              9,500

            	
              25-Feb-2010

            
	
              01-Feb-2010

            	
              28-Feb-2010

            	
              9,500

            	
              25-Mar-2.010

            
	
              01-Mar-2010

            	
              31-Mar-2010

            	
              9,500

            	
              26-Apr-2010

            
	
              01-Apr-2010

            	
              30-Apr-2010

            	
              9,500

            	
              25-May-2010

            
	
              01-May-2010

            	
              31-May-2010

            	
              9,500

            	
              25-Jun-2010

            
	
              01-Jun-2010

            	
              30-Jun-2010

            	
              9,500

            	
              26-Jul-2010

            
	
              01-Jul-2010

            	
              31-Jul-2010

            	
              9,500

            	
              25-Aug-2010

            
	
              01-Aug-2010

            	
              31-Aug-2010

            	
              9,500

            	
              27-Sep-2010

            
	
              01-Sep-2010

            	
              30-Sep-2010

            	
              9,500

            	
              25-4et-2010

            
	
              01-Oct-2010

            	
              3
      1.Oct-2010

            	
              9,500

            	
              26-Nov-2010

            
	
              01-Nov-2010

            	
              30-Nov-2010

            	
              9,500

            	
              27-Dec-2010

            
	
              01-Dec-2010

            	
              31-Dee-2010

            	
              9,500

            	
              25-Jan-2011

            
	
              01-Jan-2011

            	
              31-Jan-2011

            	
              7,375

            	
              25-Feb-201
      1

            
	
              01-Feb-2011

            	
              28-Feb-2011

            	
              7,375

            	
              25-Mar-2011

            
	
              01-Mar-2011

            	
              31-Mar-2011

            	
              7,375

            	
              25-Apr-20I
      1

              ^

            
	
              01-Apr-2011

            	
              30-Apr-2011

            	
              7,375

            	
              25-May-2011

            
	
              01-May-2011

            	
              31-May-2011

            	
              7,375

            	
              27-Jun-2011

            
	
              01-Jun-2011

            	
              30-Jun-2011

            	
              7,375

            	
              25-.Ful-20I
      1

            
	
              01-Ju1-2011

            	
              31-Jul-2011

            	
              7,375

            	
              25-Aug-20l
      l

            

    

     

    
      	
               
      

            	
              Early
      Termination Provision - Right to break
      (a)In the event
      that:

            

    

    

    
      	
               
      

            	
              (I)
      Party B does not deliver to Party A the duly executed amendment to the
      Credit Agreement (in a form and
      substance satisfactory to Party A) on or before the date which is
      15 days after the
      date of this Transaction;

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

        
          
            	
                     

                  

          

          

        

      

    

    

    
      	
               
      

            	
              (H)
      Party 13 does not deliver to Party A the duly executed Credit Support
      Documents (in a form and substance satisfactory to Party A) pursuant to
      the Agreement on or before the date which is 15 days after the date of
      this Transaction;

            

    

    

    
      	
               
      

            	
              (III)

            	
              any
      of the collateral pursuant to the Credit Support Documents is not first
      ranking; or

            

    

    

    (IV)on or before 1 September 2010, any Credit Support
Document with a
"termination date" or other similar end date, is not extended to 31 October 2011
to the satisfaction of Party A,

    

    on the
date of the occurrence of any of the above, (the `Break Date"), Party A may
terminate this Transaction before its stated maturity by providing a notice to
Party B in accordance with section l2 of the Agreement, Such notice must
specify:

    

    (i) the
Transaction to be terminated;

    

    (ii) the Break
Date; and

    

    
      	
              (iii)  

            	
              the
      date on which the Early Termination Amount is payable by Party B to Party
      A ("Break Payment Date").

            

    

    

    (b)            If
a notice is given under paragraph (a):

    

    
      	
               
      

            	
              (i)

            	
              the
      Break Date specified in the notice will be deemed to be the Early
      Termination Date of the
Transaction;

            

    

    

    
      	
              (ii)  

            	
              the
      obligations of the parties to make any further payments under Section
      2(a)(i) on or after the Break Date in respect of the relevant Transaction
      will terminate and the Transaction will be deemed to be a Terminated
      Transaction; and

            

    

    

    (iii) Party A
will determine the Early Termination Amount.

    

    
      	
               
      

            	
              (c)
      The amount payable wider Section 6(e) in respect of the Terminated
      Transaction is to be determined on the basis that there is one Affected
      Party with Party B as the Affected
Party.

            

    

    

    
      	
              (d)  

            	
              Despite
      Section 6(d)(ii), payment under Section 6(e) must be made on the Break
      Payment Date specified in the
notice.

            

    

    

    (e) In
determining the Close-out Amount, Party A will:

    

    
      	
               
      

            	
              (i)

            	
              obtain
      quotes on the assumption that both parties are of the highest credit
      status (whether or not they have such status);
  and

            

    

    

    (ii)            specify
the rate or rates on which the Close-out Amount is based.

     

    Please
confirm that the foregoing correctly sets forth the terms of our agreement with
respect to this Transaction (Deal Reference: HH 3320173,0) by signing this
Confirmation in the space provided below and immediately returning a copy of the
executed confirmation via facsimile to Macquarie Bank Limited to the attention
of: Treasury and Commodity Settlements - Energy, fax no. (61 2) 8232
8354.

     

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          
            	
                     

                  

          

          

        

      

    

    

     

    s/Amanda
Wood                                                             s/ Jeffrey R
Bailey

    Name:
Amanda
Wood                                                    Name:
Jeffrey R. Bailey CEO

    Manager
(352)

     

    Authorized
Signatory                                                                          Authorized
Signatory

    For and
on behalf of Macquarie
Bank  Limited                                For
and on behalf of TENGASCO, INC.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]