Common use of Annual Programs and Budgets Clause in Contracts

Annual Programs and Budgets. 8.1 Unless otherwise provided herein, Contractor shall commence the conduct of Petroleum Operations for the ▇▇▇▇▇ described in Annex D clause 1 (iv) not later that sixty (60) days after Albpetrol advises Contractor that the Petroleum Agreement has been approved by the Council of Ministers. The procedure for transfer of assets, operations and responsibilities associated with such ▇▇▇▇▇ and related facilities shall be as described in Annex F. 8.2 Within sixty (60) days after the Effective Date the Parties shall submit to AKBN an Annual Program and Budget setting forth the Petroleum Operations which Contractor proposes to conduct (or has already commenced conducting) during the Evaluation and Exploration Periods. Subject to Article 6.3, such Annual Program and Budget shall be consistent with the Evaluation and Exploration Programs, but at Contractor's option, it may include a greater amount of activities and capital budget than the Evaluation and Exploration Programs. The approval of neither Albpetrol nor the Advisory Committee is required for any Annual Program and Budget during the Evaluation and Exploration Periods. Contractor may require the amendment of the Annual Program and Budget during the Evaluation and Exploration Periods so long as such revised Annual Program and Budget includes at least the activities and capital budget of the Evaluation and Exploration Programs. A copy of each revised Annual Program and Budget shall be given by Contractor to Albpetrol and AKBN. 8.3 At least ninety (90) days before the end of the first Fiscal Year after the approval of the Development Plan and every Fiscal Year thereafter, or such other times as agreed by the Parties, Contractor shall prepare and submit to the Advisory Committee for approval a proposed Annual Program and Budget for the next succeeding Fiscal Year. Each Annual Program and Budget shall be consistent with the Development Plan. Should the representatives of Albpetrol in the Advisory Committee wish to propose a revision as to certain specific features of the said Annual Program and Budget, it shall within twenty-one

Annual Programs and Budgets. 8.1 Unless otherwise provided herein, Contractor shall commence the conduct of Petroleum Operations for the ▇▇▇▇▇ described in Annex D clause 1 11.1 Within thirty (iv) not later that sixty (6030) days after Albpetrol advises Contractor that the Petroleum Agreement has been approved by the Council of Ministers. The procedure for transfer of assets, operations and responsibilities associated with such ▇▇▇▇▇ and related facilities shall be as described in Annex F. 8.2 Within sixty (60) days after following the Effective Date the Parties shall submit to AKBN an Annual Program Date, and Budget setting forth the Petroleum Operations which Contractor proposes to conduct (on or has already commenced conducting) during the Evaluation and Exploration Periods. Subject to Article 6.3, such Annual Program and Budget shall be consistent with the Evaluation and Exploration Programs, but at Contractor's option, it may include a greater amount of activities and capital budget than the Evaluation and Exploration Programs. The approval of neither Albpetrol nor the Advisory Committee is required for any Annual Program and Budget during the Evaluation and Exploration Periods. Contractor may require the amendment of the Annual Program and Budget during the Evaluation and Exploration Periods so long as such revised Annual Program and Budget includes at least the activities and capital budget of the Evaluation and Exploration Programs. A copy before April 1 of each revised Annual Program and Budget shall be given by Contractor to Albpetrol and AKBN. 8.3 At least ninety (90) days before calendar year, the end of the first Fiscal Year after the approval of the Development Plan and every Fiscal Year thereafter, or such other times as agreed by the Parties, Contractor General Manager shall prepare and submit to the Advisory Committee Board for approval a its proposed Annual Program and Budget for the next succeeding Operations to be conducted during the Fiscal YearYear commencing on the 1st of July of the following year, together with a five-year rolling business plan for the Board's consideration. 11.2 Each proposed Annual Program and Budget prepared by the General Manager shall specify, in reasonable detail, all Operations which the General Manager recommends to be carried out during the period covered thereby together with the General Manager's best estimate of the costs and expenditures for such Operations. The proposed Budget shall be broken down in firm budget items and contingent budget items. Indirect expenditures shall be specified in separate categories with an explanation of the allocation principles and the assumptions made by the General Manager. 11.3 Each Annual Program and Budget shall include provisions for adequate funding for the corresponding period. As regard Shareholders' contributions, absent unanimous consent of the Shareholders, Annual Programs and Budgets may not provide for more than 10,000,000 US $ per year, nor for less than 1,700,000 US $ per year, during the Earn-In Period, nor for less than 1,000,000 US $ per year after the Earn-In Date. 11.4 All Expenses to be consistent with incurred by the Development Plan. Should General Manager shall, unless the representatives of Albpetrol Board directs otherwise, be specified in the Advisory Committee wish to propose a revision as to proposed Annual Program and Budget in Drachmas, notwithstanding that the General Manager may incur certain specific features or all of the said Expenses in some other currency. 11.5 The Board shall, if thought fit, approve with or without amendments each proposed Annual Program and Budget submitted by the General Manager. Each proposed Annual Program and Budget shall be sent to each Director thirty (30) to forty-five (45) days prior to the meeting of the Board at which same will be presented for consideration and approval. 11.6 If the Board does not approve the Annual Program and Budget, it in total or in part, the General Manager shall within twenty-oneprepare and circulate to the Board a revised Annual Program and Budget. In the event the Annual Program and Budget and any revision thereof, is not approved by the 1st of July, then the Annual Program and Budget of the previous Fiscal Year shall be carried forward, and the General Manager shall continue to incur and discharge Expenses consistent with the levels set forth in such Annual Program and Budget, until the Annual Program and Budget for that Fiscal Year is finally approved by the Board upon which time the one of the previous Fiscal Year shall cease to apply and the new one will be implemented. For example, if the Annual Program and Budget for the Fiscal Year ended June 30, 1999 permits spending at the level of 1,000,000 US $ and then the Board does not timely approve an Annual Program and Budget for the fiscal Year beginning on July 1st, 1999, the General Manager may continue to incur Expenses during such latter Fiscal Year, at the level of 1,000,000 US $. 11.7 If in the course of a Fiscal Year, any modification of or amendment to the approved Annual Program and Budget becomes necessary or desirable, the General Manager or a Director may submit new or revised proposals to the Board for a decision by the Board to amend or modify. If no decision to amend or modify can be reached, then the approved Annual Program and Budget to which amendments or modifications were proposed will continue in effect without the proposed amendments or modifications.