Common use of No Penalty Clause in Contracts

No Penalty. The remedies in this clause 7 have been selected by the Parties in light of the fact that no interest in a Nation Block may be assigned to Nation unless there is a Discovery on that block and the Government issues a Production Licence for that block, events which can occur, if at all, only if Work Programs and Budgets are timely funded. Nation agrees that the remedies conferred by this clause 7 do not constitute a penalty or an unreasonable forfeiture and are necessary to ensure the maintenance of the Permit in good standing. Nation acknowledges that it is essential to the viability of the Permit that Nation comply with its financial obligations in a timely manner, and that assumption by Paltar of the obligations of Nation under this Agreement is good and valuable consideration for the exercise by Paltar of its rights to acquire Nation’s interest in this Agreement under this clause 7.

No Penalty. The remedies in this clause 7 have been selected by the Parties in light of the fact that no interest in a Nation Block may be assigned to Nation unless there is a Discovery on that block and the Government issues a Production Licence for that block, events which can occur, if at all, only if Work Programs and Budgets are timely funded. Nation agrees that the remedies conferred by this clause 7 do not constitute a penalty or an unreasonable forfeiture and are necessary to ensure the maintenance of the Permit in good standing. Nation acknowledges that it is essential to the viability of the Permit that Nation comply with its financial obligations in a timely manner, and that assumption by Paltar Officer of the obligations of Nation under this Agreement is good and valuable consideration for the exercise by Paltar Officer of its rights to acquire Nation’s interest in this Agreement under this clause 7.

No Penalty. The remedies in this clause 7 have been selected by the Parties in light of the fact that no interest in a Nation Block may be assigned to Nation unless there is a Discovery on that block and the Government issues a Production Licence for that block, events which can occur, if at all, only if Work Programs and Budgets are timely funded. Nation Nxxxxx agrees that the remedies conferred by this clause 7 do not constitute a penalty or an unreasonable forfeiture and are necessary to ensure the maintenance of the Permit in good standing. Nation acknowledges that it is essential to the viability of the Permit that Nation comply with its financial obligations in a timely manner, and that assumption by Paltar of the obligations of Nation under this Agreement is good and valuable consideration for the exercise by Paltar of its rights to acquire Nation’s interest in this Agreement under this clause 7.