Common use of Budgeting Process Clause in Contracts

Budgeting Process. Bankable Feasibility Study Should the Management Committee pass a resolution to proceed to undertake the Bankable Feasibility Study, the budgeting process of the Joint Venture, shall be as set out in clause 9.4.14.1, provided that, should Mmakau and/or the Broad Based Participants (“Non Contributing Member”) not approve or vote against an annual business plan in respect of any year during which the Joint Venture undertakes the Bankable Feasibility Study: 9.4.15.1 The Non Contributing Member shall be entitled, but not obliged, to contribute a proportionate share (in accordance with its Participation Interest) of the budgeted expenditure as reflected in such annual business plan; provided that the Non Contributing Member shall notify Taspac in writing within 30 days after approval of the relevant annual business plan whether or not and to what extent the Non Contributing Member elects to contribute its proportionate share of such budgeted expenditure. Such written notice shall, in relation to an election to contribute, constitute an obligation on the Non Contributing Member to contribute its proportionate share, and in relation to an election not to contribute, constitute an irrevocable waiver of its right to contribute its proportionate share of such expenditure. 9.4.15.2 To the extent that the Non Contributing Member elected not to contribute its proportionate share of the budgeted expenditure contained in such annual business plan, Taspac shall be entitled, without prejudice of its call option in terms of clause 15.6, to contribute such expenditure in which event the Participation Interest of the Non Contributing Member shall be reduced and the Participation Interest of Taspac be increased by a percentage calculated in accordance with the following formula: where p equals the number of percentage points by which both Members' respective Participation Interests will be adjusted; a = the amount of the funding provided by Taspac and for which the Non Contributing Member would have been liable had it not been for the provisions of this clause; b = the fair market value of the Non Contributing Members' Participation Interest in the Joint Venture immediately before the relevant contribution is made and disregarding the enhancement of the value of any contributions made or to be made by Taspac in respect of the year to which the relevant annual business plan relates.

Budgeting Process. Bankable Feasibility Study Should the Management Committee pass a resolution to proceed to undertake the Bankable Feasibility Study, the budgeting process of the Joint Venture, shall be as set out in clause 9.4.14.1, provided that, should Mmakau and/or the Broad Based Participants (“Non Contributing Member”) not approve or vote against an annual business plan in respect of any year during which the Joint Venture undertakes the Bankable Feasibility Study: 9.4.15.1 The Non Contributing Member shall be entitled, but not obliged, to contribute a proportionate share (in accordance with its Participation Interest) of the budgeted expenditure as reflected in such annual business plan; provided that the Non Contributing Member shall notify Taspac in writing within 30 days after approval of the relevant annual business plan whether or not and to what extent the Non Contributing Member elects to contribute its proportionate share of such budgeted expenditure. Such written notice shall, in relation to an election to contribute, constitute an obligation on the Non Contributing Member to contribute its proportionate share, and in relation to an election not to contribute, constitute an irrevocable waiver of its right to contribute its proportionate share of such expenditure. 9.4.15.2 To the extent that the Non Contributing Member elected not to contribute its proportionate share of the budgeted expenditure contained in such annual business plan, Taspac shall be entitled, without prejudice of its call option in terms of clause 15.6, to contribute such expenditure in which event the Participation Interest of the Non Contributing Member shall be reduced and the Participation Interest of Taspac be increased by a percentage calculated in accordance with the following formula: where p equals the number of percentage points by which both Members' respective Participation Interests will be adjusted; ; a = the amount of the funding provided by Taspac and for which the Non Contributing Member would have been liable had it not been for the provisions of this clause; ; b = the fair market value of the Non Contributing Members' Participation Interest in the Joint Venture immediately before the relevant contribution is made and disregarding the enhancement of the value of any contributions made or to be made by Taspac in respect of the year to which the relevant annual business plan relates.