Common use of Value of Material Charged to the Accounts Under the Agreement Clause in Contracts

Value of Material Charged to the Accounts Under the Agreement. a. Except as otherwise provided in subparagraph (b) below, material purchased by Licensee for use in the Petroleum Operations shall be valued to include the invoice price less trade and cash discounts (if any), purchase and procurement fees plus freight and forwarding charges between point of supply and point of shipment, loading and unloading fees, dock charges, forwarding and documentation fees, packing costs, freight to port of destination, insurance, taxes, customs duties, consular fees, other items chargeable against imported material and where practicable handling and transportation expenses from point of importation to warehouse or operating site, and its costs should not exceed those currently prevailing in normal arms length transactions on the open market. b. Materials purchased from Affiliated Companies of Licensee shall be charged at prices not higher than the following: 1. New Material (Condition "A") shall be valued at the current international price which should not exceed the price prevailing in normal arms length transactions on the open market. 2. Used Material (Conditions "B" and "C") i. Material which is in sound and serviceable condition and is suitable for reuse for its original function without reconditioning shall be classified as Condition "B" and priced at seventy-five percent (75%) of the current price of new material defined in subparagraph (1) above. ii. Material which cannot be classified as Condition "B" but which after repair and reconditioning will be further serviceable for original function as good used material (Condition "B") shall be classified as Condition "C" and priced at fifty percent- (50%) of the current price of new material as defined in subparagraph (1) above. iii. Material which cannot be classified as Condition "B" or condition "C" shall be priced at a value commensurate with its use.

Value of Material Charged to the Accounts Under the Agreement. a. (a) Except as otherwise provided in subparagraph (b) below, material purchased by Licensee the Contractor for use in the Petroleum Operations shall be valued to include the invoice price less trade and cash discounts (if any), purchase and procurement fees plus freight and forwarding charges between point of supply and point of shipment, loading and unloading fees, dock charges, forwarding and documentation fees, packing costs, freight to port of destination, insurance, taxes, customs duties, custom duties consular fees, other items chargeable against imported material and and, where practicable handling applicable, handing and transportation expenses from point of importation to warehouse or operating site, and its costs should shall not exceed those currently prevailing in normal arms length transactions on the open market. b. Materials (b) Material purchased from or sold to Affiliated Companies or transferred to or from activities of Licensee the Contractor, other than Petroleum Operations under this Agreement, shall be priced and charged or credited at the prices not higher than the followingspecified in (1) and (2) below: (1. ) New Material (Condition "“A"”) shall be valued at the current international price which should shall not exceed the price prevailing in normal arms length transactions on the open market. (2. ) Used Material (Conditions "conditions “B" ” and "“C"”) i. (i) Material which is in sound and serviceable condition and is suitable for reuse for its original function re-use without reconditioning shall be classified as Condition "“B" ” and priced at not more than seventy-five percent (75%) of the current price of new material materials defined in subparagraph (1) above. (ii. ) Material which cannot be classified as Condition "“B" ” but which which: (a) after repair and reconditioning will be further serviceable for original function as good used second hand material Condition ’B”, or (Condition "B"b) is serviceable for original function but substantially not suitable for reconditioning. shall be classified as Condition "“C" ” and priced at fifty percent- not more than fifth percent (50%) of the current price of new material (Condition “A”) as defined in subparagraph (1) above. The cost of reconditioning shall be charged to reconditioned material provided that the Condition “C” material value plus the cost or reconditioning does not exceed the value of Condition “B” material. (iii. ) Material which cannot be classified as Condition "“B" ” or condition "Condition “C" ” shall be priced at a value commensurate with its useto be agreed between TPDC and the Contractor.

Value of Material Charged to the Accounts Under the Agreement. a. (a) Except as otherwise provided in subparagraph (b) below, below material purchased by Licensee Contractor for use in the Petroleum Operations shall be valued to include the invoice price less trade and cash discounts discount (if any), purchase and procurement fees plus freight and forwarding charges between point of supply and point of shipment, loading and unloading fees, dock charges, forwarding and documentation fees, packing costs, freight to port of destination, insurance, taxes, customs duties, consular fees, other items chargeable against imported material and where practicable handling and transportation expenses from point of importation to warehouse or operating site, and its costs should not exceed those currently prevailing in normal arms arms-length transactions on the open market.; b. Materials purchased (b) Material purchase from Affiliated Companies of Licensee Contractor shall be charged at prices not price no higher than the following: (1. ) New Material (Condition "“A"”) shall Shall be valued at the current international price which should not exceed the price prevailing in normal arms arms-length transactions on the open market. (2. ) Used Material (Conditions "Condition “B" ” and "“C"”) i. (i) Material which is in sound and serviceable condition and is suitable for reuse for its original function without reconditioning shall be classified as Condition "“B" ” and priced at seventy-five percent per cent (75%) of the current price of new material defined in subparagraph (1) above.; (ii. ) Material which cannot be classified as Condition "“B" ” but which which: (a) after repair and reconditioning will be further serviceable for original function as good used second hand material (Condition "“B"”); or (b) shall is serviceable for original function but substantially not suitable for reconditioning; Shall be classified as Condition "“C" ” and priced at fifty percent- per cent (50%) of the current price of new material as defined in subparagraph (1) above. The cost of reconditioning shall be charged to the reconditioned material provided that the condition “C” material value plus the cost of reconditioning does not exceed the value of Condition “B” material. (iii. ) Material which cannot be classified as Condition "“B" ” or condition "Condition “C" ” shall be priced at a value commensurate with its use.;

Value of Material Charged to the Accounts Under the Agreement. a. (a) Except as otherwise provided in subparagraph (b) below, material purchased by Licensee for use in the Petroleum Operations shall be valued to include the invoice price less trade and cash discounts (if any), purchase purchased and procurement fees plus freight and forwarding charges between point of supply and point of shipment, loading and unloading fees, dock charges, forwarding and documentation fees, packing costs, freight to port of destination, insurance, taxes, customs duties, consular fees, other items chargeable against imported material and where practicable handling and transportation expenses from point of importation to warehouse or operating site, and its costs should not exceed those currently prevailing in normal arms length transactions on the open market. b. (b) Materials purchased from Affiliated Companies of Licensee shall be charged at prices not higher than the following: (1. ) New Material (Condition "“A"”) shall be valued at the current international price which should not exceed the price prevailing in normal arms length transactions on the open market. (2. ) Used Material (Conditions "“B" ” and "“C"”) i. (i) Material which is in sound and serviceable condition and is suitable for reuse for its original function without reconditioning shall be classified as Condition "“B" ” and priced at seventy-five percent (75%) of the current price of new material defined in subparagraph (1) above. (ii. ) Material which cannot be classified as Condition "“B" ” but which after repair and reconditioning will be further serviceable for original function as good used secondhand material (Condition "“B"”) shall be classified as Condition "“C" ” and priced at fifty percent- percent (50%) of the current price of new material as defined in subparagraph (1) above. (iii. ) Material which cannot be classified as Condition "“B" ” or condition "“C" ” shall be priced at a value commensurate with its use.