Avner Oil - Annual Report 2011 - Delek Energy Systems

7.7.7 Calculation of the effective participation rate of the Partnership's equity holders inexploration expenses in the Alon licensesDescription %Summary of the calculation method forroyalties or payments (including deductionof expenses and others) (reference todescription of the agreement)Theoretical expenses of theoil asset after the discovery100%Payments (derived from the expenses) at the level of the oil assetOperator 1%-4% The rate in the table refers to explorationexpenses. These amounts are for indirectexpenses of the operator and are in additionto reimbursement of expenses paid to theoperator. The rate of payment to the operatordecreases as exploration expenses increase.Payment for development expenses is yet tobe determined.The general partner 0Seller of the oil right 0Total effective rate ofexpense at the level of the oilassetShare of the equity holders ofthe Partnership in the oilasset's expenses (linked)Share of the equity holders ofthe Partnership in theeffective rate of revenues, atthe level of the oil asset(before other payments at thelevel of the Partnership)Share of the equity holders ofthe Partnership in paymentsderived from expenses by thePartnership101% -104%26.4705%26.74%-27.53%0TotalPayments (derived from the expenses) in respect of the oil asset and at the level of the Partnership(the following percentages will be calculated in accordance with the share of the equity holders ofthe Partnership in the oil asset)TotalOperator in the reportingentityEffective share of expenses 26.74%-27.53%for exploration, developmentor production of the oil asset,attributable to equity holdersof the Partnership 130130 According to the Limited Partnership agreement, when the Partnership’s exploration expenses exceed USD 1.6million per quarter, the effective share increases to 28.74%-29.59%.A-106