Common use of Contribution Notice Clause in Contracts

Contribution Notice. The Operator must immediately, after an amount has become a Default Amount in respect of a Defaulting Participant by notice to the Non-defaulting Participant, require payment by it of the Default Amount (“Contribution Notice”) and, within ten (10) Business Days of receipt of a Contribution Notice, the Non-defaulting Participant may elect to pay to the Operator the Default Amount. If a Contribution Notice is given, the Non-defaulting Participant may, despite Section 8.8(b), convene a meeting of the Management Committee on two (2) Business Days’ notice to consider the giving of directions to the Operator to reduce or defer the Joint Venture Activities proposed to be carried out in the next quarter. At that meeting of the Management Committee, the members of the Management Committee appointed by the Defaulting Participant will not be entitled to vote on any question concerning the reduction or deferral of Joint Venture Activities. If the Operator is directed to reduce or defer Joint Venture Activities, it must immediately re-issue the last issued Cash Call Notice and the Contribution Notice taking due account of the effect of the reduction or deferral and the Default Amount will be reduced to an amount equal to the Defaulting Participant’s required contribution on the basis of the re-issued Cash Call Notice.