Common use of System Election Clause in Contracts

System Election. Each System Owner will, within thirty (30) calendar days after receipt of a System Proposal, elect to either participate (to the extent of such System Owner’s Default System Ownership Interests) or not participate in the new System proposed in the System Proposal by written notice to the Operator. Failure to make a timely election regarding participation in a new System will be deemed an election by the System Owner to participate in the new System described in the System Proposal and the Operator will send written notice of such deemed election to participate to such System Owner. The System Owner will have five (5) business days after receipt of the notice to revoke such deemed election to participate by written notice to the Operator. If the System Owner does not revoke the deemed election within such time, the election will be irrevocable. Notwithstanding anything to the contrary in this Agreement, if a System Owner elects not to participate in a new System, then: (a) unless agreed in writing by all Participating System Owners, the nonparticipating System Owner shall have no rights with respect to such new System, including, without limitation, ownership, approval of Project AFEs or amendments thereto, voting, inspection and audit rights and receipt of reports or other information; and (b) the System Ownership Interests for such System for each Participating System Owner will be adjusted from the Default System Ownership Interests on a pro rata basis so that the total System Ownership Interests for such System are equal to one hundred percent (100%). Notwithstanding anything to the contrary in this Agreement, each System Owner by its execution of this Agreement has elected or hereby elects to participate in each of the Systems described in paragraphs 4.2.1 through 4.2.2 below.