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Common use of Cash Calls Clause in Contracts

Cash Calls. 3.1 Except as otherwise provided in the Contract, the Contractor shall solely provide all the Pilot Test Costs and all the Development Costs according to the provisions of Articles 12.1.1 and 12.1.2 of the Contract. In accordance with each approved annual budget, the Operator shall issue monthly cash call notices to each company comprising the Contractor to provide the Operator with funds to cover the planned expenditures of the next month. Whether or not the cash call notices for the Pilot Test Costs are to be issued shall be at the option of the Operator. 3.2 Development Operations cash call and default 3.2.1 According to the needs of the Petroleum Operations, the Operator shall regularly issue monthly cash call notices within the amount of approved annual budget to request each company comprising the Contractor to respectively make advances as specified by the Operator. The Operator shall, before twenty (20) days prior to the commencement of each month, issue cash call notices for the Development Costs and each company comprising the Contractor shall provide its percentage share of funds according to the requirement and within the time limit specified in the cash call notice. However the payment due date specified in the cash call notices shall not be earlier than the first working day of the month for which cash is called. Each company comprising the Contractor shall transfer its percentage share of funds to the Operator’s bank account(s) established by the Operator particularly for the Petroleum Operations. Such bank account(s) will in all cases be interest bearing account(s). Any excessive advances made by each company comprising the Contractor for any month shall be adjusted in the next cash call. In case that the Operator, owing to the needs of the Development Operations, has to incur expenditures which are unforeseen in the cash call for any month, written notices shall be issued to all the companies comprising the Contractor who shall finance their own shares for additional amount within ten (10) days following the receipt of the written notice. 3.2.2 Interest shall be paid by each company comprising the Contractor failing to pay its share of funds on the due date specified in the cash call at LIBOR on the delinquent date plus five percent (5%) on the delinquency of less than one (1) month and thereafter at the average LIBOR rate ruling throughout each subsequent month plus five percent (5%), such interest being compounded on a monthly basis throughout the period of the delinquency. The non-defaulting party or parties shall make up the delinquent portion on behalf of the defaulting party or parties. When the defaulting party or parties pay cash to meet both the delinquent portion and accrued interest thereon, the Operator shall reimburse the non-defaulting party or parties who made up the delinquent portion. All amount advanced by the non-defaulting party or parties plus accrued interest not reimbursed by the defaulting party shall constitute a debt due from the defaulting party or parties to the non-defaulting party or parties who shall be entitled to all remedies at law and equity. Any non-defaulting party shall on behalf of the non-defaulting party or parties be entitled to take and sell the defaulting party’s or parties’ share of the Annual Gross Production of Crude Oil and apply the proceeds of the sale of such Crude Oil against all sums due and payable by the defaulting party or parties including accrued interest. Any excess funds remaining from such proceeds after deduction of all amounts due, including interest and the costs, charges and expenses incurred by non-defaulting party, in connection with such sale, shall be paid over to the defaulting party. Any deficiency remaining due after deducting the proceeds of any such sale shall remain an obligation of the defaulting party or parties and may be collected as any other debt. 3.3 Each monthly cash call notice shall clearly indicate the following information: 3.3.1 Annual Development Costs to be shared by each company comprising the Contractor as shown in the approved annual budget. 3.3.2 Amount of funds advanced by each company comprising the Contractor at the end of the month prior to the month in which the cash call notice is prepared and the actual expenditures and the actual balance (i.e. funds unused) recorded in the Joint Account, accompanied by the bank statements related to the Joint Account for the previous month. 3.3.3 Amount of funds to be called from each company comprising the Contractor in the month for which the funds will be used and the estimated amounts of funds to be called in the following two (2) months. 3.3.4 The date when funds are to be provided, the amount of funds, currency, account number, name of the account, the recipient bank and its address. 3.4 On the Date of the entire completion of the Development Operations set forth in the Overall Development Program, any development investment for the Oil Field advanced by the company comprising the Contractor which has not been expended or will not be expended shall be returned to each of the companies in proportion to its share. 3.5 The cash for the Production Operations undertaken by the Parties jointly and approved by JMC shall be provided by all the Investing Parties to the Contract according to Article

Appears in 2 contracts

Samples: Petroleum Contract (MIE Holdings Corp), Petroleum Contract (MIE Holdings Corp)

Cash Calls. 3.1 Except as otherwise provided in the Contract, the Contractor shall solely provide all the Pilot Test Costs and all the Development Costs according to the provisions of Articles 12.1.1 and 12.1.2 of the Contract. In accordance with each approved annual budget, the Operator shall issue monthly cash call notices to each company comprising the Contractor to provide the Operator with funds to cover the planned expenditures of the next month. Whether or not the cash call notices for the Pilot Test Costs are to be issued shall be at the option of the Operator. 3.2 Development Operations cash call and default 3.2.1 According to the needs of the Petroleum Operations, the Operator shall regularly issue monthly cash call notices within the amount of approved annual budget to request each company comprising the Contractor to respectively make advances as specified by the Operator. The Operator shall, before twenty (20) days prior to the commencement of each month, issue cash call notices for the Development Costs and each company comprising the Contractor shall provide its percentage share of funds according to the requirement and within the time limit specified in the cash call notice. However the payment due date specified in the cash call notices shall not be earlier than the first working day of the month for which cash is called. Each company comprising the Contractor shall transfer its percentage share of funds to the Operator’s bank account(s) established by the Operator particularly for the Petroleum Operations. Such bank account(s) will in all cases be interest bearing bearing, account(s). Any excessive advances made by each company comprising the Contractor for any month shall be adjusted in the next cash call. In case that the Operator, owing to the needs of the Development Operations, has to incur expenditures which are unforeseen in the cash call for any month, written notices shall be issued to all the companies comprising the Contractor who shall finance their own shares for additional amount within ten (10) days following the receipt of the written notice. 3.2.2 Interest shall be paid by each company comprising the Contractor failing to pay its share of funds on the due date specified in the cash call at LIBOR on the delinquent date plus five percent (5%) on the delinquency of less than one (1) month and thereafter at the average LIBOR rate ruling throughout each subsequent month plus five percent (5%), such interest being compounded on a monthly basis throughout the period of the delinquency. The non-defaulting party or parties shall make up the delinquent portion on behalf of the defaulting party or parties. When the defaulting party or parties pay cash to meet both the delinquent portion and accrued interest thereon, the Operator shall reimburse the non-defaulting party or parties who made up the delinquent portion. All amount advanced by the non-defaulting party or parties plus accrued interest not reimbursed by the defaulting party shall constitute a debt due from the defaulting party or parties to the non-defaulting party or parties who shall be entitled to all remedies at law and equity. Any non-defaulting party shall on behalf of the non-defaulting party or parties be entitled to take and sell the defaulting party’s or parties’ share of the Annual Gross Production of Crude Oil and apply the proceeds of the sale of such Crude Oil against all sums due and payable by the defaulting party or parties including accrued interest. Any excess funds remaining from such proceeds after deduction of all amounts due, including interest and the costs, charges and expenses incurred by non-defaulting party, in connection with such sale, shall be paid over to the defaulting party. Any deficiency remaining due after deducting the proceeds of any such sale shall remain an obligation of the defaulting party or parties and may be collected as any other debt. 3.3 Each monthly cash call notice shall clearly indicate the following information: 3.3.1 Annual Development Costs to be shared by each company comprising the Contractor as shown in the approved annual budget. 3.3.2 Amount of funds advanced by each company comprising the Contractor at the end of the month prior to the month in which the cash call notice is prepared and the actual expenditures and the actual balance (i.e. funds unused) recorded in the Joint Account, accompanied by the bank statements related to the Joint Account for the previous month. 3.3.3 Amount of funds to be called from each company comprising the Contractor in the month for which the funds will be used and the estimated amounts of funds to be called in the following two (2) months. 3.3.4 The date when funds are to be provided, the amount of funds, currency, account number, name of the account, the recipient bank and its address. 3.4 On the Date of the entire completion of the Development Operations set forth in the Overall Development Program, any development investment for the Oil Field advanced by the company comprising the Contractor which has not been expended or will not be expended shall be returned to each of the companies in proportion to its share. 3.5 The cash for the Production Operations undertaken by the Parties jointly and approved by JMC shall be provided by all the Investing Parties to the Contract according to ArticleArticle 12.1.3 of the Contract, but the Contractor shall, in accordance with Article 12.1.3 of the Contract, pay for CNPC the Operating Costs which shall be payable by CNPC. Based on the needs of the Production Operations, the Operator may make timely adjustment of the amount of cash to be provided by all the Investing Parties to the Contract. The Operator shall issue quarterly cash call notices to call for cash for the Production Operations. In proportion to its share, each Investing Party shall respectively provide advances on a monthly basis in accordance with the requirement and within the time limit specified in the cash call notice of the current month. In case that the Operator, owing to the needs of the Production Operations, has to incur expenditures which are unforeseen in the cash call for any month, written notices with explanations shall be issued to an the Investing Parties who shall finance their own shares for additional amount within ten (10) days following the receipt of such written notice. 3.6 According to the requirement of the Petroleum Operations, the Operator shall indicate in any cash call notice the U.S. dollar equivalent of the total cash called. The Operator shall also specify the amounts of Renminbi and U.S. dollars required as estimated to make payment. 3.7 Provisions for recording the sources of funds;

Appears in 1 contract

Samples: Petroleum Contract (MIE Holdings Corp)

Cash Calls. 3.1 Except (a) As Operator, HCAC will set Programs and Budgets and the Shareholders must fund such Programs and Budgets, subject to the terms hereof and elections under Section 6.6, as otherwise provided to its Percentage Interest at the time of any cash call pursuant to Section 3.4(b) (each, a “Funding Percentage”), and failing to do so will result in the Contract, the Contractor shall solely provide all the Pilot Test Costs and all the Development Costs according to the provisions of Articles 12.1.1 and 12.1.2 dilution of the Contract. In Delinquent Shareholder’s (as defined herein) Percentage Interest in accordance with each approved annual budgetthe terms of this Agreement. (b) On the basis of the adopted Program and Budget then in effect, the Operator shall issue monthly cash call notices submit to each company comprising Shareholder which has elected, or is deemed to have elected, to participate in a Program and Budget pursuant to Section 6.6(a) at least 30 calendar days before the Contractor to provide the Operator with funds to cover the planned expenditures of the next month. Whether or not the cash call notices for the Pilot Test Costs are to be issued shall be at the option of the Operator. 3.2 Development Operations cash call and default 3.2.1 According to the needs of the Petroleum Operations, the Operator shall regularly issue monthly cash call notices within the amount of approved annual budget to request each company comprising the Contractor to respectively make advances as specified by the Operator. The Operator shall, before twenty (20) days prior to the commencement last day of each monthcalendar quarter, issue cash call notices for the Development Costs and each company comprising the Contractor shall provide its percentage share of funds according to the requirement and within the time limit specified in the cash call notice. However the payment due date specified in the cash call notices shall not be earlier than the first working day of the month for which cash is called. Each company comprising the Contractor shall transfer its percentage share of funds to the Operator’s bank account(s) established or as otherwise required by the Operator particularly from time to time, an invoice for estimated cash requirements for each such Shareholder for the Petroleum Operations. Such bank account(snext ensuing calendar quarter or other shorter interval as may be determined by the Operator in its sole discretion (the “Cash Call Amount”). (c) will in all cases be interest bearing account(s). Any excessive advances made by each company comprising the Contractor for any month A Shareholder shall be adjusted in the next cash call. In case that the Operatorfund 100% of its Cash Call Amount pro rata to its Percentage Interest, owing to the needs of the Development Operationsand, has to incur expenditures which are unforeseen in the cash call for any month, written notices shall be issued to all the companies comprising the Contractor who shall finance their own shares for additional amount within ten (10) 30 calendar days following the after receipt of the written notice. 3.2.2 Interest shall be paid such Cash Call Amount (inclusive of any required Board or Shareholder approvals) by each company comprising the Contractor failing to pay its share of funds on the due date specified in the cash call at LIBOR on the delinquent date plus five percent subscribing for new Company Shares (5%“New Company Shares”) on the delinquency of less than for one (1) month and thereafter at Peruvian sol per Company Share in proportion to their Percentage Interests. For greater certainty, the average LIBOR rate ruling throughout each subsequent month plus five percent Company shall not be required to issue shares until it has received the full Cash Call Amount, subject to the remedies described in Section 3.5. (5%), d) Subject to receipt of such interest being compounded on a monthly basis throughout the period of the delinquency. The non-defaulting party Cash Call Amounts or parties shall make up the delinquent portion on behalf of the defaulting party or parties. When the defaulting party or parties pay cash to meet both the delinquent portion and accrued interest thereonother funds under this Agreement, the Operator (i) shall reimburse maintain a minimum cash reserve of the non-defaulting party amount the Operator estimates will be required to pay Company costs and expenses that are or parties who made will become payable within 30 calendar days after the date of determination, and (ii) shall have the right to maintain an additional cash reserve of up to the delinquent portionamount the Operator estimates will be required to pay Company costs and expenses that are or will become payable within an additional three (3) months after the date of determination. (e) Subject to Section 6.9, if the Cash Call Amount is less than the actual costs incurred or charged during the calendar quarter, or such other interval, to which such invoice relates, the Operator may invoice the Shareholders which have elected, or have been deemed to have elected, to participate in a Program and Budget pursuant to Section 6.6(a) the Cash Call Amount for the difference at any time (the “Additional Cash Call Amount”). Within 30 calendar days after receipt of such Additional Cash Call Amount, such Shareholders shall fund the Additional Cash Call Amount pro rata to its Percentage Interest in accordance with Section 3.4(c), above. (f) Time is of the essence as concerns funding under this Agreement. All amount advanced funds in excess of the immediate cash requirements of the Company shall be invested in one or more interest-bearing accounts reasonably selected by the non-defaulting party or parties plus accrued interest not reimbursed by the defaulting party shall constitute a debt due from the defaulting party or parties to the non-defaulting party or parties who shall be entitled to all remedies at law and equity. Any non-defaulting party shall on behalf of the non-defaulting party or parties be entitled to take and sell the defaulting party’s or parties’ share of the Annual Gross Production of Crude Oil and apply the proceeds of the sale of such Crude Oil against all sums due and payable by the defaulting party or parties including accrued interest. Any excess funds remaining from such proceeds after deduction of all amounts due, including interest and the costs, charges and expenses incurred by non-defaulting party, in connection with such sale, shall be paid over to the defaulting party. Any deficiency remaining due after deducting the proceeds of any such sale shall remain an obligation of the defaulting party or parties and may be collected as any other debtOperator. 3.3 Each monthly cash call notice shall clearly indicate the following information: 3.3.1 Annual Development Costs to be shared by each company comprising the Contractor as shown in the approved annual budget. 3.3.2 Amount of funds advanced by each company comprising the Contractor at the end of the month prior to the month in which the cash call notice is prepared and the actual expenditures and the actual balance (i.e. funds unused) recorded in the Joint Account, accompanied by the bank statements related to the Joint Account for the previous month. 3.3.3 Amount of funds to be called from each company comprising the Contractor in the month for which the funds will be used and the estimated amounts of funds to be called in the following two (2) months. 3.3.4 The date when funds are to be provided, the amount of funds, currency, account number, name of the account, the recipient bank and its address. 3.4 On the Date of the entire completion of the Development Operations set forth in the Overall Development Program, any development investment for the Oil Field advanced by the company comprising the Contractor which has not been expended or will not be expended shall be returned to each of the companies in proportion to its share. 3.5 The cash for the Production Operations undertaken by the Parties jointly and approved by JMC shall be provided by all the Investing Parties to the Contract according to Article

Appears in 1 contract

Samples: Share Purchase Agreement

Cash Calls. 3.1 Except as otherwise provided in the Contract, the Contractor shall solely provide all the Pilot Test Costs exploration costs for the Exploration Operations according to the provision of Article 12. 1.1 of the Contract and all the Investing Parties shall provide the development costs for the Development Costs according Operations in proportion to the provisions of Articles 12.1.1 and their respective participating interests as provided in Article 12.1.2 of the Contract. In accordance with each approved annual budget, the Operator shall issue monthly cash call notices to each company comprising the Contractor Investing Party to provide the Operator with funds to cover the planned expenditures of the next month. Whether or not the cash call notices for the Pilot Test Costs exploration costs are to be issued shall be at the option of the Operator. 3.2 Development Operations cash call and default default 3.2.1 According to the needs of the Petroleum CBM Operations, the Operator shall regularly issue monthly cash call notices within the amount of approved annual budget to request each company comprising the Contractor Investing Party to respectively make advances as specified by the Operator. The Operator shall, before twenty (20) days prior to the commencement of each month, issue cash call notices for the Development Costs development costs and each company comprising the Contractor Investing Party shall provide its percentage share of funds according to the requirement and within the time limit specified in the cash call notice. However the payment due date specified in the cash call notices shall not be earlier than the first working day of the month for which cash is called. Each company comprising the Contractor Investing Party shall transfer its percentage share of funds to the Operator’s 's bank account(s) established by the Operator particularly for the Petroleum CBM Operations. Such bank account(s) will in all cases be interest bearing account(s)) if possible. Such interest shall be credited directly to the respective CUCBM and Contractor accounts as applicable, in accordance with their respective percentage of participating interest. Any excessive advances made by each company comprising the Contractor Investing Party for any month shall be adjusted in the next cash call. In case that the Operator, owing to the needs of the Development Operations, has to incur expenditures which are unforeseen in the cash call for any month, written notices shall be issued to all the companies comprising the Contractor Investing Parties who shall finance their own shares for additional amount within ten (10) days following the receipt of the written notice. 3.2.2 Interest shall be paid by each company comprising the Contractor failing to pay its share of funds on the due date specified in the cash call at LIBOR on the delinquent date plus five percent (5%) on the delinquency of less than one (1) month and thereafter at the average LIBOR rate ruling throughout each subsequent month plus five percent (5%), such interest being compounded on a monthly basis throughout the period of the delinquency. The non-defaulting party or parties shall make up the delinquent portion on behalf of the defaulting party or parties. When the defaulting party or parties pay cash to meet both the delinquent portion and accrued interest thereon, the Operator shall reimburse the non-defaulting party or parties who made up the delinquent portion. All amount advanced by the non-defaulting party or parties plus accrued interest not reimbursed by the defaulting party shall constitute a debt due from the defaulting party or parties to the non-defaulting party or parties who shall be entitled to all remedies at law and equity. Any non-defaulting party shall on behalf of the non-defaulting party or parties be entitled to take and sell the defaulting party’s or parties’ share of the Annual Gross Production of Crude Oil and apply the proceeds of the sale of such Crude Oil against all sums due and payable by the defaulting party or parties including accrued interest. Any excess funds remaining from such proceeds after deduction of all amounts due, including interest and the costs, charges and expenses incurred by non-defaulting party, in connection with such sale, shall be paid over to the defaulting party. Any deficiency remaining due after deducting the proceeds of any such sale shall remain an obligation of the defaulting party or parties and may be collected as any other debt. 3.3 Each monthly cash call notice shall clearly indicate the following information: 3.3.1 Annual Development Costs to be shared by each company comprising the Contractor as shown in the approved annual budget. 3.3.2 Amount of funds advanced by each company comprising the Contractor at the end of the month prior to the month in which the cash call notice is prepared and the actual expenditures and the actual balance (i.e. funds unused) recorded in the Joint Account, accompanied by the bank statements related to the Joint Account for the previous month. 3.3.3 Amount of funds to be called from each company comprising the Contractor in the month for which the funds will be used and the estimated amounts of funds to be called in the following two (2) months. 3.3.4 The date when funds are to be provided, the amount of funds, currency, account number, name of the account, the recipient bank and its address. 3.4 On the Date of the entire completion of the Development Operations set forth in the Overall Development Program, any development investment for the Oil Field advanced by the company comprising the Contractor which has not been expended or will not be expended shall be returned to each of the companies in proportion to its share. 3.5 The cash for the Production Operations undertaken by the Parties jointly and approved by JMC shall be provided by all the Investing Parties to the Contract according to Article

Appears in 1 contract

Samples: Production Sharing Contract (Pacific Asia China Energy Inc.)