Exhibit 10 (i) 89
THIS EXHIBIT CONTAINS CONFIDENTIAL INFORMATION WHICH HAS BEEN REDACTED AND FILED
SEPARATELY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.
AMENDMENT I TO THE AGREEMENT
FOR THE SALE AND PURCHASE OF COAL
THIS AMENDMENT ("AMENDMENT"), dated as of November 1, 1999 TO THAT
AGREEMENT ("AGREEMENT") FOR THE SALE AND PURCHASE OF COAL made and entered into
as of the 1st day of November 1998 between CENTRAL XXXXXX GAS & ELECTRIC
CORPORATION, (herein-after referred to as "BUYER") and GLENCORE Ltd.,
(hereinafter referred to as "SELLER").
WITNESSETH:
WHEREAS, Article IV of the AGREEMENT provides that beginning July 1,
1999, BUYER and SELLER shall commence good faith negotiations with respect to
the price of coal for the next Contract Year; and
WHEREAS, notice was duly given and BUYER and SELLER entered into
good faith negotiations; and
WHEREAS, after completion of good faith negotiations, BUYER and
SELLER desire to amend the AGREEMENT to provide for the pricing of coal and
certain other AGREEMENT provisions;
NOW, THEREFORE, in consideration of the premises and the mutual
covenants set forth herein, the parties hereto agree as follows:
SECTION 8, ARTICLE II, (DELIVERIES) ,SECTIONS 1 & 2, ARTICLE IV
(PAYMENT) AND SECTION 4, ARTICLE V (ADJUSTMENT IN PRICE FOR QUALITY) of the
AGREEMENT shall be respectively amended in their entirety for contract year
2000. The remaining ARTICLES AND SECTIONS of the AGREEMENT shall remain in full
force and affect. The amended ARTICLE AND SECTIONS shall read as follows:
CONFIDENTIAL INFORMATION REPRESENTED IN THIS FILING BY AN "X" HAS BEEN REDACTED
AND FILED SEPARATELY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.
ARTICLE II
DELIVERIES
Section 8. If Buyer's coal unloading system or equipment is damaged
or forced to shut down as the result of receiving foreign or oversized material
from the vessel, then the Seller shall be liable for any damage and/or delays
associated with the unauthorized delivery of this extraneous material.
Demurrage at Discharge Berth
If after completion of discharge Buyer has used more time to receive
the entire cargo than allowed, Buyer will reimburse Seller for excess laytime
used at the rate of USD $XX,XXX for each 24 hours, fractions pro rata.
If after completion of discharge Seller's vessel has failed to
offload the entire cargo at a minimum rate of XXXX short tons per hour, Seller
will reduce the price as determined by Article IV, Section 1 by USD $ .XX per
short ton for each ton of coal delivered.
ARTICLE IV
PAYMENT
Section 1. Price: The Base Price of the Firm cargoes of coal sold
hereunder in contract year 2000 is fixed at $XX.XX per short ton CIFFO Roseton
Dock. Option Cargoes will be priced in accordance with ARTICLE II, Section 1.
Section 2. On or before July 1st 2000, Buyer and Seller will enter
into negotiations to fix the Base Price for coal delivered hereunder for the
ensuing year. Unless otherwise agreed, this Agreement will terminate on December
31st of that contract year if negotiations for the following year have not been
completed by November 1st.
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CONFIDENTIAL INFORMATION REPRESENTED IN THIS FILING BY AN "X" HAS BEEN REDACTED
AND FILED SEPARATELY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.
ARTICLE V
ADJUSTMENT IN PRICE FOR QUALITY
Section 4. Adjustment for Sulfur Value: If the Sulfur Value of the
coal shipment is less than or equal to X.XX% there will be no adjustment for
Sulfur Value variation. If the Sulfur Value is greater than X.XX% but less than
or equal to X.XX% then a penalty of $X.XX per ton shall be deducted from the
Price for each X.XX% Sulfur Value variation in excess of X.XX%.
IN WITNESS WHEREOF, each Party hereto has caused this Agreement to
be executed in its behalf by its proper officer thereunder duly authorized, all
as of the day and year first above written.
BUYER: CENTRAL XXXXXX GAS & ELECTRIC CORPORATION
BY /s/ Xxxxxx X. Upright
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Xxxxxx X. Upright
ITS Senior Vice President-Regulatory Affairs, Financial Planning And Accounting
SELLER: GLENCORE LTD.
BY /s/ Xxxxxxx X. Xxxxxx
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ITS Trader
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