ESTABLISHMENT AND QUANTITY. To guarantee to the SELLER and BUYER an uninterrupted and sufficient feedstock of Cobalt Alloy to the KOKKOIA Plants, GECAMINES allows the SELLER and the BUYER to build up a Buffer Stock of Cobalt Alloy in KOKKOLA, in addition to the commercial stock to alleviate the problem caused by possible disturbances in the deliveries. For that reason GECAMINES undertakes to sell to the J.V. and the J.V. undertakes to buy from GECAMINES the quantity of Slag necessary for building up the Buffer Stock. The Cobalt contained in the Buffer Stock shall be 2,500 tons. The monthly amount of cobalt contained in the Cobalt Alloy exceeding the agreed monthly tonnage taken into usage by KCO shall be used for building up the Buffer Stock until the 2,500 tons of Cobalt Contained in the Cobalt Alloy have been reached. In the event that the cobalt content in the Buffer Stock decreases during the validity period of this Agreement, because of interruption or slowing down of the deliveries the excess quantity above the agreed monthly supply shall be used for rebuilding the Buffer Stock until the cobalt content of 2,500 tons has been reached again. Nevertheless, the Parties agree that the total amount of cobalt contained in the Buffer Stock, i.e. 2.500 tons, may be reduced by 400 tons per year from the year 2006 so that the quantity of cobalt contents will be reduced to 2.100 tons at the end of the year 2006, and so on, provided, however, that 0MG and GGF have been entirely reimbursed and repaid by the J.v. in form of dividends or other distributions the total value of their investments in the Projects including all the interests accrued and financial charges. In case not, the reduction of the Buffer Stock shall be postponed accordingly. If during the reduction period hereinabove referred there will be disturbances in the deliveries and as a result the Buffer Stock level falls short of the above formula, then the annual reductions shall be postponed until the minimum level of the Buffer Stock has first been met. End 2006 : 2.100 tons of cobalt End 2007 : 1.700 tons of cobalt End 2008 : 1.300 tons of cobalt End 2009 : 900 tons of cobalt End 2010 : 500 tons of cobalt End 2011 : 100 tons of cobalt End 2012 : Liquidation of the Buffer Stock. With regard to any situation other than what is regulated hereinabove, the Parties will meet to find a joint understanding.
ESTABLISHMENT AND QUANTITY. To safeguard that KCO shall get an uninterrupted and sufficient feedstock of Cobalt Alloy to the KOKKOLA Plants, GECAMINES allows the PURCHASER to build up a Buffer Stock of Cobalt Alloy in KOKKOLA besides the Commercial Stock to back up for any supply interruption. Therefore GECAMINES agrees to sell to the J.V. and the J.V. agrees to purchase the quantity of Slag necessary for building up the Buffer Stock. The total cobalt quantity contained in the Buffer Stock shall be 2,500 tons. The monthly amount of Cobalt Alloy exceeding the monthly agreed tonnage taken into usage by KCO shall be used for building up the Buffer Stock until the quantity of 2,500 tons of Cobalt contents has been reached. In the event that the cobalt content in the Buffer Stock decreases during the term of this Agreement, either as a result of an interruption of deliveries or insufficient deliveries, the excess quantity above the agreed monthly supply shall be used for rebuilding the Buffer Stock until the minimum cobalt content of 2,500 tons has been reached again. ** Confidential treatment has been requested with respect to certain information contained within this document. Confidential portions are omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities and Exchange Act of 1934.
