Financial Gas Agreement

FINANCIAL GAS AGREEMENT

This Financial Gas Agreement ("Agreement") is made effective as of Month DD YYYY (the "Effective Date") by and between:

Parties

Financier Name:

Purchaser Name:

Recitals

WHEREAS, Financier will extend financing to enable the purchase of natural gas and related products (the "Commodity") to Purchaser; and WHEREAS, Purchaser desires to obtain such financing on the terms and subject to the conditions set forth in this Agreement.

Definitions

For purposes of this Agreement, the following terms have the meanings set forth below:

"Facility Amount" means the maximum aggregate principal amount of financing provided hereunder: $

"Commodity Unit" means the measurement unit for the gas supplied (e.g., MMBtu):

Facility and Purpose

1. Facility. Subject to the terms and conditions of this Agreement, Financier agrees to make available to Purchaser a revolving financing facility up to the Facility Amount to fund purchases of the Commodity (the "Facility").

2. Purpose. The Facility shall be used solely to pay for purchase, transport, storage and related acquisition costs of the Commodity. Purchaser shall not use Facility proceeds for any other purpose without the prior written consent of Financier.

Delivery, Quantity and Pricing

Purchases under the Facility will be evidenced by delivery tickets, invoices, or purchase confirmations specifying quantity, delivery point, and unit price. Authorized unit price for each delivery: $ per

Financing Schedule (Sample)

Payment, Fees and Interest

Payment Term: Purchaser shall remit payment to Financier within days of invoice receipt.

Interest on outstanding financed amounts shall accrue at a rate of per annum, compounded monthly. Late payments shall bear interest at plus a late fee of $ .

Security and Collateral

Purchaser grants Financier a continuing security interest in and lien on the Commodity financed hereunder, all receipts, proceeds and products thereof, and all related accounts and contract rights as collateral for repayment of obligations under this Agreement.

Representations and Warranties

Each party represents and warrants that it is duly organized, has full power and authority to execute and deliver this Agreement and to perform its obligations, and that this Agreement constitutes a legal, valid and binding obligation enforceable in accordance with its terms.

Default and Remedies

The occurrence of any of the following shall constitute an Event of Default: failure to pay any amount when due, breach of any material representation or covenant, insolvency, or cessation of business. Upon Event of Default, Financier may accelerate obligations, take possession of collateral, suspend further advances, and exercise all remedies available at law or in equity.

Accelerate outstanding obligations
Take possession of collateral
Suspend further advances

Taxes and Withholding

All payments under this Agreement shall be made free and clear of any taxes, levies, deductions or withholdings, except as required by applicable law. The party required to withhold shall provide evidence of payment of such taxes to the other party.

Confidentiality

Each party shall hold confidential all non-public information disclosed by the other party in connection with this Agreement and shall not disclose such information except to its employees, advisors, or as required by law. Confidential information does not include information that is or becomes publicly available other than by breach of this Agreement.

Force Majeure

Neither party shall be liable for delays or failures in performance (except payment obligations) resulting from causes beyond its reasonable control, including acts of God, strikes, embargoes, governmental actions, or interruptions to transportation or delivery infrastructure. The affected party must promptly notify the other and make reasonable efforts to resume performance.

Governing Law and Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction of without regard to its conflicts of law principles. Disputes shall be resolved by arbitration under commercial arbitration rules, with the seat of arbitration in the same jurisdiction unless otherwise agreed in writing.

Notices

Amendment; Assignment

This Agreement may be amended only by a written instrument executed by both parties. Neither party may assign its rights or obligations without the prior written consent of the other, except that Financier may assign or pledge its rights to affiliates or third-party lenders.

Miscellaneous

The parties acknowledge that they have read and understood this Agreement, that they have authority to enter into and perform their obligations hereunder, and that this Agreement constitutes the entire agreement between the parties with respect to its subject matter.

Sign Now