PLATTS CRUDE OIL MARKETWIRE FOR BRENT DATED QUOTATIONS MINUS A
DISCOUNT IN US DOLLARS PER NET US BARREL ESTABLISHED IN ACCORDANCE WITH THE
FOLLOWING FORMULA:
DATED BRENT (US$/BBL)
DISCOUNT (US$/BBL)
LESS THAN 15.00
6.00
15.01 - 20.00
6.50
20.01 - 25.00
7.00
GREATER THAN 25.01
7.50
IN THE EVENT THAT THE MONTHLY QUANTITY IS LESS THAN 3,000 (THREE THOUSAND)
METRIC TONNES, THE DISCOUNT SHALL BE ADJUSTED TO US$7.50 PER BARREL WHEN DATED
BRENT IS IN THE PRICE RANGE US$20.01 - US$25.00.
THE APPLICABLE QUOTATIONS SHALL BE THE THREE PUBLISHED QUOTATIONS FOR THE 18TH,
19TH AND THE 20TH DAY OF THE MONTH IN WHICH THE DELIVERY OF OIL TAKES PLACE. IF
ANY OF THE QUOTATION DAYS FALLS ON A SATURDAY OR SUNDAY OR OTHER NON-TRADING
DAY, THE NEAREST EARLIER QUOTATIONS SHALL APPLY. IF IT IS DEEMED NECESSARY THE
PARTIES MAY AGREE TO MEET TO CONSIDER AN ADJUSTEMENT TO THE PRICING MECHANISM
ESTABLISHED ABOVE.ALWAYS THREE QUOTATIONS TO APPLY.
THE PRICE HAS BEEN CALCULATED EXCLUSIVE OF VAT, HOWEVER VAT IS PAYABLE ON SALES
UNDER THE AGREEMENT AND THIS WILL BE LEVIED AT THE EFFECTIVE RATE
2
CURRENT IN THE TERRITORY OF GEORGIA AT THE TIME AND SHALL BE PAYABLE BY THE
BUYER TO THE SELLER.
8.
SECURITY FOR PAYMENT:
AS SECURITY FOR PAYMENT AND HAVING THE OPTION TO LIFT OIL ON A MONTHLY BASIS
DURING THE CONTRACT PERIOD THE BUYER WILL DEPOSIT ONE MILLION SEVEN HUNDRED AND
FIFTY THOUSAND (1,750,000) US DOLLARS ("SECURITY") IN THE SELLER'S NOMINATED US
DOLLAR ACCOUNT IN ACCORDANCE WITH THE FOLLOWING SCHEDULE:
1.
THE BUYER SHALL LODGE FIVE HUNDRED AND FIFTY THOUSAND (550,000) US
DOLLARS IN THE NOMINATED ACCOUNT WITHIN THREE BANKING DAYS OF SIGNING THIS
AGREEMENT;
2.
THE BUYER SHALL LODGE TWO HUNDRED THOUSAND (200,000) US
DOLLARS IN THE NOMINATED ACCOUNT BY THE END OF MAY 2003;
3.
THE SECURITY
AMOUNT IN THE SUM OF ONE MILLION (1,000,000) US DOLLARS DEPOSITED BY THE BUYER
IN ACCORDANCE WITH ARTICLE 8 OF THE AGREEMENT NUMBER 007.02 BETWEEN NINOTSMINDA
OIL COMPANY LIMITED AND SVETI LIMITED DATED 13 AUGUST 2002 SHALL REMAIN ON THE
ACCOUNT OF THE SELLER DURING THE PERIOD OF THIS AGREEMENT.
THE SECURITY WILL BE RETAINED BY THE SELLER FOR ITS OWN USE AND ACCOUNT UNTIL
1ST AUGUST 2004 AND WILL BE REPAID TO THE BUYER AFTER THE END OF THE
DELIVERYPERIOD THROUGH THE DELIVERY OF AN ADDITIONAL QUANTITY OF OIL TO THE
VALUE OF THE SECURITY AT THE PRICE SET OUT IN THE AGREEMENT AND AT THE RATE OF
THE SELLER'S SHARE OF MONTHLY PRODUCTION THIS CONTRACT SHALL REMAIN IN FORCE
UNTIL THE SECURITY IS FULLY REPAID THROUGH THE DELIVERY OF CRUDE OIL OR OTHER
MEANS AS PROVIDED FOR IN ARTICLE 13 HEREIN.
HOWEVER IF THE MONTHLY QUANTITY IS LESS THAN 3,000 METRIC TONNES, AFTER SIX (6)
MONTHS THE SECURITY PAYMENT MAY BE REDUCED BY THE VALUE OF EACH MONTH'S DELIVERY
AT THE BUYERS DISCRETION.
9.
PAYMENT:
IN US DOLLARS NET CASH, WITHOUT WITHOLD, OFFSET, COUNTERCLAIM OR DEDUCTION
WHATSOEVER INTO SELLER'S NOMINATED BANK ACCOUNT WITH