Consideration and Covenants Clause Samples
The "Consideration and Covenants" clause defines the mutual promises and obligations exchanged between the parties as part of their agreement. In practice, this clause outlines what each party is providing—such as payment, services, or other benefits—and details any ongoing commitments or restrictions, like confidentiality or non-compete obligations. Its core function is to ensure that both parties clearly understand what is being exchanged and what is expected of them, thereby establishing the enforceability of the contract and reducing the risk of disputes over performance or obligations.
Consideration and Covenants. It is mutually agreed as follows:
4.1 GCHD shall, through provision of up to 0.4
Consideration and Covenants. 4.1 In consideration of the right to receive the Assignment of Beneficial Interest and Transfer of Licence, WESI will pay to DESAL a cash consideration of A$2,500,000.00 in immediately available funds within forty five (45) days of the Effective Date of this Agreement, by way of direct bank transfer into an account to be specified by notice from DESAL to WESI prior to the Effective Date. Discovery to WESI Farmout Agreement 14
4.2 In consideration for receiving the Assignment of Beneficial Interest and Transfer of Licence, WESI agrees to perform or cause to be performed and pay and discharge, until the following work is completed in the Contract Area, the following:
(a) In accordance with the terms of this Agreement and the JOA, WESI shall have the obligation and shall be responsible for and shall pay for one hundred percent (100%) of the costs of Work Programs and Budgets approved by the Operating Committee in accordance with this Agreement and the JOA until a cumulative amount of A$30,500,000 (excluding any Excluded Amounts) has been funded by WESI under the JOA to pay such costs (“Obligatory Expenditure Work Program”). WESI shall fully complete and perform the Obligatory Expenditure Work Program consistent with the terms of this Agreement and the JOA before the end of the current period of the Licence or 27 months from the Effective Date of this Agreement, whichever first occurs. All amounts paid or expended by WESI under the Obligatory Expenditure Work Program shall first be applied to obligations attributable to DESAL’s Participating Interest and then to obligations attributable to WESI’s Participating Interest share. After the satisfactory conclusion of the Obligatory Expenditure Work Program, all further costs and expenses of Joint Operations will be paid in accordance with the JOA based on each Party’s Participating Interest.
(b) DESAL shall have the right to audit WESI’s books and records pertaining to the Obligatory Expenditure Work Program in accordance with the audit provisions of the JOA.
(c) Within ten (10) days of the Effective Date, the Operating Committee shall establish a Technical Subcommittee to formulate and advise the Operating Committee in regard to all Work Programs and Budgets. Based on the advice of the Technical Subcommittee, within thirty (30) days of the Effective Date DESAL shall establish the initial Work Program and Budget for the 1st and 2nd Calendar Quarters of 2020, that conforms with the methodology set forth on Exhibit C...
Consideration and Covenants