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Of ONTACTS WITH CHARTER \ BACKGROUND ON -CRUDE The Charter Company receives approximately 100 contacts a month fron various individuals purporting to have access to short or long-term supplies. of crude ofl. Such contacts are often accompanied by a reference ‘to a. specific type of crude oil from a variety of different ofl production locations. Generally speaking, individuals bringing such propositions have as part of their proposal a commission fee ranging from S¢ a barrel to occasionally as high as 5% of the total cost per barrel. The sfoscives of Charter @tt-Coupeay is to acknowledge such contacts within the framework o day-to-day business, and to evaluate each such proposal for its viability. In the ofl industry it is common practice to — : handle such PEopositions in this regard. Individuals brokering crude of1 are especially prevalent during periods of extreme short supply of crude oil worldwide. It is common practice in most oil-producing countries to distribute their crude ofl production in three ways: 1. ‘Through private of1 companies that have production in that particular country. - , 2. Through nationally owned o11 companies withia that country. 3. Through allocations of ofl to various individuals. It is this last distribution network that accounts for the vast majority of individual oil broker transactions. “SEQUENCE OF EVENTS: CONTACT FROM BILLY CARTER Billy Carter and Mr. Jack MacGregor, a former executive vice president of Carey Energy Company and currently a consultant to Charter, at some point in time had conversations regarding potential brokering of Libyan oil by ens Mr. Carter. Mr. MacGregor contacted The Charter Company and sci up a meeting between the president of Charter Crude 011 Company, Mr. Lewis Nasife, and