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07-02-2013, 12:23 PM
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Join Date: Dec 2009
Country: Canada
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So, as per compensation rules, anything over 8.41 AAV would result in 4 1sts. It is also the case that the total amount of the contract can only be divided by an amount of years of 5 or less. What this means is that if Petro were offered 7.2 over 6 years, even though that it obviously less than 8.4 AAV, it would be considered 7.2*6/5=8.64 and we would receive 4 1sts. Here's a table:

5 years- (8.4 per)
6 years- (7.0 per)
7 years- (6.0 per)
8 years- (5.3 per)

Any average per year above these numbers would result in us landing 4 1sts. Obviously, we would accept 5.3 per year over the 4 1sts, as is the case with 6.0 and possibly 7.0. At which numbers would you guys be tempted to take the 4 1st rather than Petro?

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