Common use of Interest on Cash Balances Clause in Contracts

Interest on Cash Balances. Interest is to be credited/charged on the Parties' daily cash balances with the Operator (positive and negative). This interest credit/charge is to be calculated on the Operator's internal accounts showing daily cash balances per currency called and/or arising from the use of separate bank accounts for the Joint Operations. The Operator's contribution shall be credited on the due day of payment for the cash call. Interest and other conditions shall in principle correspond to the conditions that a company with a similar cash flow would obtain in a first-class bank, but not less than those corresponding to the interest obtained by the Operator. The following two alternatives shall be considered as equal: ALTERNATIVE 1: The rate of interest shall be determined on a three month basis and be linked to a relevant Interbank Rate: Group 1: NOK – NIBOR (3 months) + 1,0 % / - 1,0 % Group 2: EUR – EUROLOBOR (3 months) + 0,5%/- 0,5% Group 3: Others (e.g. USD, GBP) -LIBOR (3 months) + 0,5 % / - 0,5 % NIBOR is defined as: A one month average of this month for three months' "Norwegian Interbank Offered Rate" as quoted by Reuters page NIBP at 12:00 noon. For the day or days when such rates are not available, three months' NIBOR from Den norske Bank, Oslo, quoted the day before the relevant day of quotation, shall be used. If the above-mentioned NIBOR quotations are based on 365/360 days, the rate shall be multiplied with the fraction 365/360 to reflect the Norwegian principle of calculating the interest rate in 360/360 or 365/365 days. In calculating the monthly average, quotations given with four decimals shall be used. LIBOR/EUROLIBOR is defined as: A one month average of this month for three months' "Euro Currency Interest Rate" as quoted by Reuters page LIBOR 01 at 11:00 A.M. London time. For the day or days when such rates are not available, three months' LIBOR for the currency in question from Chase Manhattan Bank, London, quoted the day before the relevant day of quotation, shall be used. In calculating the monthly average, quotations given with four decimals shall be used. The above-mentioned interest rate shall be amended if there is a discrepancy between the base of the interest rate and the calculation principles regarding the days of interest. ALTERNATIVE 2: If the Operator has established separate bank accounts for licence cash balances (covering one or more licences), the interest earned/paid by the Operator shall be allocated to the Parties based on the Operator's and the Non-operators' actual deposits in these accounts. Both the Operator and the Non-operators shall pay to such accounts according to cash calls. The calculation of interest shall be based on the Non-operators' daily cash balances with the Operator, or on the basis of an average cash balance calculated for each month, or on the basis of formulas reflecting the build-up of daily cash balances, and on the quarterly balance. The amount of interest shall be specified under "Financial items" in the accounts, no later than the month after the expiry of the period. The day of payment shall be determined on the same credit/debit principles, no later than the first day in this following month.

Interest on Cash Balances. Interest is to be credited/charged on the Parties' daily cash balances with the Operator (positive and negative). This interest credit/charge is to be calculated on the Operator's internal accounts showing daily cash balances per currency called and/or arising from the use of separate bank accounts for the Joint Unit Operations. The Operator's contribution shall be credited on the due day of payment for the cash call. Interest and other conditions shall in principle correspond to the conditions that a company with a similar cash flow would obtain in a first-class bank, but not less than those corresponding to the interest obtained by the Operator. The following two alternatives shall be considered as equal: ALTERNATIVE 1: The rate of interest shall be determined on a three month basis and be linked to a relevant Interbank Rate: Group 1: NOK – NIBOR (3 months) + 1,0 % / - 1,0 % Group 2: EUR – EUROLOBOR (3 months) + 0,5%/- 0,5% Group 3: Others (e.g. USD, GBP) -LIBOR (3 months) + 0,5 % / - 0,5 % NIBOR is defined as: A one month average of this month for three months' "Norwegian Interbank Offered Rate" as quoted by Reuters page NIBP at 12:00 noon. For the day or days when such rates are not available, three months' NIBOR from Den norske Bank, Oslo, quoted the day before the relevant day of quotation, shall be used. If the above-mentioned NIBOR quotations are based on 365/360 days, the rate shall be multiplied with the fraction 365/360 to reflect the Norwegian principle of calculating the interest rate in 360/360 or 365/365 days. In calculating the monthly average, quotations given with four decimals shall be used. LIBOR/EUROLIBOR is defined as: A one month average of this month for three months' "Euro Currency Interest Rate" as quoted by Reuters page LIBOR 01 at 11:00 A.M. London time. For the day or days when such rates are not available, three months' LIBOR for the currency in question from Chase Manhattan Bank, London, quoted the day before the relevant day of quotation, shall be used. In calculating the monthly average, quotations given with four decimals shall be used. The above-mentioned interest rate shall be amended if there is a discrepancy between the base of the interest rate and the calculation principles regarding the days of interest. ALTERNATIVE 2: If the Operator has established separate bank accounts for licence cash balances (covering one or more licences), the interest earned/paid by the Operator shall be allocated to the Parties based on the Operator's and the Non-operators' actual deposits in these accounts. Both the Operator and the Non-operators shall pay to such accounts according to cash calls. The calculation of interest shall be based on the Non-operators' daily cash balances with the Operator, or on the basis of an average cash balance calculated for each month, or on the basis of formulas reflecting the build-up of daily cash balances, and on the quarterly balance. The amount of interest shall be specified under "Financial items" in the accounts, no later than the month after the expiry of the period. The day of payment shall be determined on the same credit/debit principles, no later than the first day in this following month.