Common use of Profit from Operations Clause in Contracts

Profit from Operations. Employee shall receive a Profit from Operations Bonus (“POB”), payable quarterly, equal to a 5% carried working interest (“CWI”) from all oil and gas well owned and/or operated by the Company. The POB shall be derived from (i) new CWI revenues from new production, and (ii) increased CWI revenues from existing production, based on the trailing three months CWI revenues from the date of the execution of this Agreement. The CWI revenue calculation shall be based on the difference derived when subtracting (i) taxes, and (ii) royalties from a gross revenue amount. So long as this Agreement provides for a POB, the POB shall be paid for the life of a particular well. Example: No. 1 Well No.2 January 1 to March 31 0 $100,000 in Gross Sales April 1 through June 30 $100,000 in Gross Sales $200,000 in Gross Sales Assume: (i) the two xxxxx above were both located in Alberta, Canada and that there was a provincial tax equal to 20%; and (ii) there was a royalty arrangement with a landowner, paying this person 10%. Note that a “Royalty” shall not mean a production cost or a fee to an operator or other contractor providing services. Analysis: In the above example, the Employee with a 5% POB would receive, from the April 1 to June 30 period, $3,500 from Well 1 and $3,500 from Well 2. Well 1 would be considered new production and the Well 2 POB would be based on the increase in CWI from the preceding three month period.

Profit from Operations. Employee shall receive a Profit from Operations Bonus (“POB”), payable quarterly, equal to a 52.5% carried working interest (“CWI”) from all oil and gas well owned and/or operated by the Company. The POB shall be derived from (i) new CWI revenues from new production, and (ii) increased CWI revenues from existing production, based on the trailing three months CWI revenues from the date of the execution of this Agreement. The CWI revenue calculation shall be based on the difference derived when subtracting (i) taxes, and (ii) royalties from a gross revenue amount. So long as this Agreement provides for a POB, the POB shall be paid for the life of a particular well. Example: No. 1 Well No.2 January 1 to March 31 0 $100,000 in Gross Sales April 1 through June 30 $100,000 in Gross Sales $200,000 in Gross Sales Assume: (i) the two xxxxx above were both located in Alberta, Canada and that there was a provincial tax equal to 20%; and (ii) there was a royalty arrangement with a landowner, paying this person 10%. Note that a “Royalty” shall not mean a production cost or a fee to an operator or other contractor providing services. Analysis: In the above example, the Employee with a 52.5% POB would receive, from the April 1 to June 30 period, $3,500 1,750 from Well 1 and $3,500 1,750 from Well 2. Well 1 would be considered new production and the Well 2 POB would be based on the increase in CWI from the preceding three month period.

Profit from Operations. Employee shall receive a Profit from Operations Bonus (“POB”), payable quarterly, equal to a 51.66% carried working interest (“CWI”) from all Canadian oil and gas well owned and/or xxxxx operated by the Company. The POB shall be derived from (i) new CWI revenues from new production, and (ii) increased CWI revenues from existing production, based on the trailing three months CWI revenues from the date of the execution of this Agreement. The CWI revenue calculation shall be based on the difference derived when subtracting (i) taxes, and (ii) royalties from a gross revenue amount. So long as this Agreement provides for a POB, the POB shall be paid for the life of a particular well. Example: No. 1 Well No.2 January 1 to March 31 0 $100,000 in Gross Sales April 1 through June 30 $100,000 in Gross Sales $200,000 in Gross Sales Assume: (i) the two xxxxx above were both located in Alberta, Canada and that there was a provincial tax equal to 20%; and (ii) there was a royalty arrangement with a landowner, paying this person 10%. Note that a “Royalty” shall not mean a production cost or a fee to an operator or other contractor providing services. Analysis: In the above example, the Employee with a 51.66% POB would receive, from the April 1 to June 30 period, $3,500 1,162 from Well 1 and $3,500 1,162 from Well 2. Well 1 would be considered new production and the Well 2 POB would be based on the increase in CWI from the preceding three month period.