PENN OCTANE CORPORATION/EXXON COMPANY, U.S.A.
SALE AGREEMENT
PENN OCTANE NO. ______/EXXON NO. PEB219
This Agreement is entered into effective September 25, 1996,
by and between Exxon Company, U. S. A., a division of Exxon
Corporation ("Seller"), Penn Octane Corporation ("Buyer").
Buyer and Seller agree to a product sale as outlined below:
1. TERM OF AGREEMENT
This Agreement shall begin on October 1, 1996, and shall
continue through September 30, 1997.
2. PRODUCT VOLUMES/PRICES
Seller agrees to deliver to Buyer the approximate product
volumes shown on Exhibit A during the term of this Agreement
at the location and pricing basis outlined in Exhibit A.
3. PRODUCT SPECIFICATIONS
Seller shall deliver to Buyer propane and normal butane that
meets applicable federal, state and local requirements, and
that meet specifications as shown on Exhibit A, which is made
a part hereof.
4. SPECIAL TAKE OR PAY PROVISIONS
Buyer agrees to take and Seller agrees to deliver the volumes
specified in Exhibit A. If the Buyer takes less than the
volume specified in Exhibit A in any month, Buyer will pay
for the actual volume delivered but no less than 95% of the
full contract volume.
5. GENERAL PROVISIONS
Seller's General Provisions dated August 2, 1988, and attached
as Exhibit B are incorporated herein by reference and made a
part hereof.
6. EXPORTS
This is a domestic transaction. Buyer is responsible for
obtaining export licenses and/or export documentation required
for any subsequent exportation that may occur.
7. ACCOUNTING
For all shipping documents, statements, invoices, and demurrage
claims to:
PENN OCTANE CORPORATION
San Xxxxxx Plaza
0000 Xxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Send payments by wire transfer to:
CITIBANK, N.A., NEW YORK, N.Y.
ABA 0000-0000-0
Credit to Exxon Company U. S. A.
Regular Account# 00000000
8. INVOICE PAYMENT METHOD/TERMS
Seller will invoice the Buyer on the 15th calendar and the
first business day of the month following the delivery month.
The initial invoice price (interim price) for each product
will be the OPIS non TET price on the first business day of
the delivery month. The final invoice price will be the
price provided for in Exhibit A adjustment will be made to
the total invoice amount to reflect the proper average price
for the delivery month. Buyer will pay by wire within 5
calendar days or receipt of invoice a
9. CREDIT
Buyer will maintain a letter of credit acceptable to Exxon
as to bank, format and term equal to no less than a full
months purchases until all accounts have been settled.
10. EXHIBITS
The following Exhibits are attached and are a part of this
Agreement. All references herein to the Agreement shall
include the applicable Exhibits.
Exhibit A Product Volumes/Locations/Differentials
Exhibit B General Provisions
EXXON COMPANY, U.S.A. PENN OCTANE CORPORATION
a division of Exxon Corporation
BY: _________________________ BY: _________________________
X.X. Xxxxxxx X. X. Xxxxxxx
Manager, Products and Gas Liquids President
Dated: 10/21/96 Dated: 11/1/96
Exhibit A
Product Volumes/Locations/Differentials
Penn Octane No. ______/Exxon No. PEB219
Sale Agreement
Exxon delivers to Pipeline and Transport truck:
Location: Exxon King Ranch gas plant
Product Description: (1) Unodorized Propane (2) Normal Butane
Method of Delivery: (1) XXX Xxxx Xxxxxxxxxxx 0" line (2)
Measurement: (1) Pipeline meter at King Ranch gas plant
(2) Weight scales
Quantity:
(1) October 4000KG/Month
November-March 7500KG/Month
April-September 3150KG/Month
(2) October-March 700KG/Month
April-September 350KG/Month
Pricing basis: (1) OPIS Mt. Belvieu Non-TET day weighted average
propane price less 1.0c/g
(2) OPIS Mt. Belvieu Non-TET day weighted average
normal butane price less 1.50 c/g
*Twice monthly billing provision based on price at 1st day of
month billed on 15th and final billing after end of month less
amount of first billing
Specifications:
Butane Propane
Composition: Normal Butane, vol % min. 95 2
pentane plus, vol % max. 2 -
propane, vol% 2 95
Vapor pressure at 100F psig max. 70 208
Corrosion, copper strip, max. No.1 No.1
Total sulfur, ppmw max. 140 140
Free water content None None
Odorization None None
