Credits under the Agreement Clause Samples
The "Credits under the Agreement" clause defines how credits, such as service credits or monetary credits, are issued, managed, and applied between the parties under the terms of the agreement. Typically, this clause outlines the circumstances under which credits may be granted, such as for service outages or performance failures, and specifies how these credits can be used—often as offsets against future payments or invoices. Its core practical function is to provide a clear mechanism for compensating one party when the other does not fully meet its obligations, thereby ensuring fairness and reducing disputes over remedies.
Credits under the Agreement. The net proceeds of the following transactions will be credited to the accounts under the Agreement:
a) the net proceeds of any insurance or claim in connection with Petroleum Operations or any assets charged to the accounts under the Agreements when such operations or assets were insured and the premia charged to the accounts under the Agreement;
b) revenue received from third parties for the use of property or assets charged to the accounts under this Agreement;
c) any adjustment from the suppliers or manufacturers or their agents in connection with a defective equipment or material the cost of which was previously charged to the account under the Agreement;
d) the proceeds received for inventory materials previously charged to the account under the Agreement and subsequently exported from the Republic of Ghana or transferred or sold to third parties without being used in the Petroleum Operations;
e) rentals, refunds or other credits received which apply to any charge which has been made to the account under the Agreement, but excluding any award granted under arbitration or sole expert proceedings;
f) the proceeds from the sale or exchange of plant or facilities from the Development and Production Area or plant or facilities the acquisition costs of which have been deducted in the AOE computation under Article 10for the relevant Development and Production Area;
g) the proceeds derived from the sale or issue of any intellectual property the development costs of which were incurred pursuant to this Agreement; and
h) the proceeds from the sale of any petroleum information derived from Petroleum Operations under this Agreement.
Credits under the Agreement. 3.12.1 The net proceeds of the following transactions shall be credited to the account for cost recovery purposes under the Agreement:
3.12.1.1 the net proceeds of any insurance or claim in connection with the Petroleum Operations or any assets charged to the accounts under the Agreement;
3.12.1.2 Revenue received from other Parties for the use of property or assets charged to the accounts under the Agreement;
3.12.1.3 any adjustment received by the Contractor from the suppliers/manufacturers or their agents in connection with defective equipment or Material the cost of which was previously charged by the Contractor under the Agreement;
3.12.1.4 rentals, refunds or other credits received by the Contractor which apply to any charge which has been made to the accounts under the Agreement;
3.12.1.5 proceeds from all sales of surplus Material or assets charged to the account under the Agreement; and
3.12.1.6 the prices originally charged to the accounts under the Agreement for inventory Materials subsequently exported from Somalia.
Credits under the Agreement. The net proceeds received from Petroleum Operations (other than the proceeds from the sale of Crude Oil and Natural Gas), including but not limited to the transactions listed below, will be credited to the accounts under the Agreement. For Profit Oil sharing purposes such credits shall be offset against Recoverable Contract Expenses:
(a) the net proceeds of any insurance or claim in connection with Petroleum Operations or any assets charged to the accounts under the Agreement when such operations or assets were insured and the premiums charged to the accounts under the Agreement;
(b) legal expenses charged to the accounts under Section 3.1 (i) and subsequently recovered by the Contractor;
(c) revenue received from third parties including Affiliated Companies for the use of property or assets charged to the accounts under the Agreement;
(d) any adjustment received by the Contractor from the suppliers manufacturers or their agents in connection with defective material, the cost of which was previously charged by the Contractor to the accounts under the Agreement;
(e) rentals, refunds or other credits received by the Contractor which apply to any charge which has been made to the accounts under the Agreement but excluding any award granted to the Contractor under arbitration or sole expert proceedings;
(f) the net proceeds for material originally charged to the accounts under the Agreement and subsequently exported from Tanzania without being used in Petroleum Operations;
(g) the net proceeds from the sale or exchange by the Contractor of materials, equipment, plant or facilities, the acquisition costs of which have been charged to the accounts under the Agreement;
(h) the proceeds from the sale of any petroleum information which relates to the Contract Area provided that the acquisition costs of such rights and information have been charged to the accounts under the Agreement;
(i) the proceeds derived from the sale or licence of any intellectual property the development costs of which were incurred under this Agreement.
Credits under the Agreement. The net proceeds of the following transactions will be credited to the accounts under the Agreement:
a. The net proceeds of any insurance or claim in connection with the Petroleum Operations or any assets charged to the accounts under the Agreement when such operations or assets were insured and the premia charged to the accounts under the Agreement.
b. Revenue received from outside for the use of property or assets charged to the accounts under the Agreement.
c. Any adjustment received by Licensee from the suppliers/manufacturers or their agents in connection with a defective material the cost of which was previously charged by Licensee to the accounts under the Agreement.
d. Rebates, refunds or other credits received by Licensee which apply to any charge which has been made to the accounts under the Agreement, but excluding any awards granted to Licensee, under the arbitration or independent expert proceedings referred to in Subsection 4.2(d) above.
e. The actual net proceeds of sale realised from the disposal on an arms length basis of inventory materials under the Agreement and subsequently exported from the Republic of Uganda without being used-in inventory materials that are disposed of other than on an be valued as used material and the value so determined shall be credited to the Accounts.