Avner Oil - Annual Report 2011 - Delek Energy Systems

7.5.7 Calculation of the effective participation rate of the Partnership's equity holders inexploration expenses in the Ratio Yam licensesDescription %Summary of the calculation methodRoyalties or payments (including deduction ofexpenses and others) (reference to thedescription of the agreement)Theoretical expenses of the oil assetafter the discovery100%Payments (derived from the expenses) at the level of the oil assetOperator 1%-4% The rate in the table refers to exploration expenses.These amounts are for indirect expenses of theoperator and are in addition to reimbursement ofdirect expenses paid to the operator.The rate of payment to the operator decreases asexploration expenses increase. The partners arejointly reviewing the option of setting operator's feesthat will be paid for indirect development andproduction expenses.The general partner 0Seller of the oil right 0Total effective rate of expense at thelevel of the oil assetShare of the equity holders of thePartnership in the oil asset'sexpenses (linked)Share of the equity holders of thePartnership in the effective rate ofrevenues, at the level of the oil asset(before other payments at the levelof the Partnership)Share of the equity holders of thePartnership in payments derivedfrom expenses by the Partnership101% -104%22.67%22.9% -23.58%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 of thePartnership in the oil asset)The general partner in the reportingentity 99 - In accordance with the partnership agreement, thegeneral partner is entitled to the higher of 7.5% ofthe Partnership's exploration expenses or USD40,000 a month on a quarterly calculation.Effective share of expenses for 22.9% -23.58%exploration, development orproduction of the oil asset,attributable to equity holders of thePartnership 10099100 According to the Limited Partnership agreement, when the Partnership’s exploration expenses exceed USD 1.6million per quarter, the effective share increases to 16.8%A-85