Currency Swap Agreement - Vetrargarourinn ehf. and Islandsbanki-FBA hf.
CURRENCY SWAP AGREEMENT
Contract Identification: 0500/GMVT/02031201
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Contracting parties: Vetrargarourinn ehf., State Reg. No. 581201-2490,
Sturlugata 8, 101 Reykjavik, hereinafter referred
to as the Customer, and Islandsbanki-FBA hf., State
Reg. No. 550500-3530, Kirkjusandur 2, 155
Reykjavik, hereinafter referred to as the Bank.
Contract Date: 13 March 2002
First interest day: 15 March 2002
Final date: 1 March 2007
Customer commitment:
Principal:
<TABLE>
<CAPTION>
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Initial
conversion Initial ISK
Currency Foreign amount value Equivalent
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<S> <C> <C> <C>
USD 7,251,415.52 100.67 730,000,000.00
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Total ISK 730,000,000.00
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</TABLE>
Interest term 12 months at a time.
First due date of interest 1 March 2003
Instalments The principal recorded above shall be paid with
a single payment at the end of the contract
term.
Rate of interest LIBOR-BBA/12M in accordance with the below +6.0%
margin annually.
Initial rate of interest
<TABLE>
<CAPTION>
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Currency Base interest Total
rate (%) Margin (%) interest (%)
---------------------------------------------------
<S> <C> <C> <C>
USD 6.0
---------------------------------------------------
</TABLE>
The interest determination will be 13 March 2002
Banking day rule The following banking day.
Day rule A/360 and 30/360 for ISK.
Payment terms The Bank shall withdraw from the account of the
Customer on the due dates as follows:
<TABLE>
<CAPTION>
-----------------------------
Currency Account Number
-----------------------------
<S> <C>
USD xxx-38-xxxxxx
-----------------------------
</TABLE>
Bank's commitment
Principal ISK 730,000,000.-
Indexation The principal is linked to the consumer price
index.
Base index 221.3
Interest term 12 months at a time.
First due date of interest 1 March 2003
<PAGE>
Instalments The principal recorded above shall be paid with a
single payment at the end of the contract term.
Rate of interest The fixed interest rate is 12.0% per year.
Banking day rule The following banking day.
Day rule 30/360
Payment terms The Bank shall deposit on the Customer's bank
account No. xxx-xx-xxxxxx on the due dates.
General terms: In the event that the losses of the Customer as a
result of the Contract exceed 50% of the market
value of the collateral placed as security for the
trading, ISFBA my require the customer to provide
security/additional security, which ISFBA considers
adequate, within 3-7 days. The same applies even if
there is no loss on the Contract if the market
value of the collateral falls.
Requirements for collateral will be given by
telephone, e-mail or fax. Notification shall be
regarded as sent to the correct address if it has
been sent to the e-mail address / fax number
supplied by the Customer. A notice given over the
telephone is regarded as being immediately notified
to the Customer.
In the event that the Customer does not provide
security/additional security within the time limit
set, ISFBA may, without any obligation to do so,
call in or terminate the Contract without notice.
In addition to the provisions of this Contract, the
General Terms for the Market Transactions of
Islandsbanki-FBA and the General Terms on Interest
and Currency Swaps published by the Icelandic
Bankers' Association and the Icelandic Savings
Banks' Association in February 1998 (1 Edition)
shall apply. The Customer has acquainted himself
with these terms. In the event of any conflict
between this Contract and the General Terms, the
provisions of this Contract shall apply.
The customer may close the contract at any time at
the market price as determined by Islandsbanki.
Signature: In witness hereof, the parties have signed this
Contract in two identical copies, one copy to be
retained by each party. By his signature the
Customer authorises the above account transfers.
The Customer furthermore confirms by his signature
that he has acquainted himself with the nature of
currency and interest swap contracts and that he
has had the benefit of advice from an expert
outside the Bank before he signed the Contract.
Reykjavik, 13 March 2002
Islandsbanki-FBA hf. Vetrargarourinn ehf.
/s/ Guomundur p Guomundsson /s/ Tomas Sigurdsson
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Guomundur p Guomundsson Tomas Sigurdsson
/s/ Loa K. Sveinbjornsdottir
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Loa K. Sveinbjornsdottir