Common use of Conversely Clause in Contracts

Conversely. the Parties agree that a default of any party under the Oil and Gas Agreement which activates the provisions of Section 21.2 shall be grounds for a default under the provisions of the second paragraph of Article XIX of the Sulphur Agreement, but with the sole and limited effect of conferring on the operator of the Oil and Gas Agreement the right to have sold the defaulting party's share of sulphur produced after the notice of default provided for in such paragraph is given, and the proceeds from such sale remitted to the Operator of the Oil and Gas Agreement in discharge of such defaulting party's delinquent obligations under the Oil and Gas Agreement. The Operator of the Oil and Gas Agreement may exercise such right after expiration of the fifteen (15) day period provided for in Section 21.2 by requesting in writing that the Operator of the Sulphur Agreement sell such defaulting party's share of such sulphur and remit the proceeds from such sale to the Operator of the Oil and Gas Agreement; provided, however, that no such sale or remittance shall take place unless the defaulting party has received at least fifteen (15) days prior written notice of such sale from the Operator of the Sulphur Agreement and does not cure the default within such fifteen (15) day period. Neither the operator of the Oil and Gas Agreement nor the Operator of the Sulphur Agreement shall have any other right or remedy with respect to the Participating Interest or share of sulphur of the defaulting party arising as a consequence of a default under the Oil and Gas Agreement, nor shall any default arising under the oil and Gas Agreement give rise under any circumstances to any forfeiture, foreclosure, or the like, of the defaulting party's Participating Interest under the Sulphur Agreement. Neither the Operator of the Sulphur Agreement nor of the oil and Gas Agreement shall be required to comply with the request from the other pursuant to this subparagraph C, if a defaulting party is in default under both Agreements. Any Operator may cease honoring such a request from the other Operator at such time as any party in default under one Agreement defaults under the other. It is the intention of the Parties hereto that each Operator shall have priority in enforcing default under its Agreement against one of its own participating Interest Owners or parties, as the case may be.