Common use of Continuation of Default Clause in Contracts

Continuation of Default. 12.3.1 If any Default continues for more than fifteen (15) days after the date of notification by Operator under Article 12.1(i) then, for so long as the Default so continues, the Defaulting Party shall not be entitled to Production in kind or to receive or retain the Net Pre-tax Revenue to which it would otherwise be entitled from the well to which the Defaults relates, and instead such Net Pre-tax Revenue shall be credited to the Non Defaulting Parties in the proportions in which their respective Percentage Interests bear to the total of the Percentage Interests of the Non-Defaulting Parties. 12.3.2 During the continuation of any Default, the Defaulting Party shall not be entitled to attend meetings of the Operating Committee or be entitled to vote thereat (so that the voting interest of each Party other than the Defaulting Party shall be in the proportion which its Percentage Interest bears to the total Percentage Interests of such Parties), except in relation to decisions or matters concerning any of the Licenses or previously completed Wells as to which the Default is not applicable. Notwithstanxxxx that a Defaulting Party may not be entitled to attend or vote at a meeting of the Operating Committee in relation to any particular matter, it shall be bound by decisions of the Operating Committee made during the continuation of the Default in relation to that matter. If the Default subsists for sixty (60) days after the date of notification by Operator under Article 12.1(i) and the Defaulting Party continues to hold a Percentage Interest, then from the end of such sixty (60) day period, while the Default subsists, the Defaulting Party shall grant to Operator a perfected security interest against the Defaulting Parties accounts receivable, as necessary to insure payment to the Non-defaulting Parties. Furthermore, the Defaulting Party shall have no further access to any data and information relating to the Joint Operations, except in relation to data or information concerning any of the Licenses or previously completed Wells as to which the Default is not applicable. (i) In the event that the Default continues for more than one-hundred and fifty (150) days after the date of notification by Operator under Article 12.1(i) and such Default is material and not resulting from a good-faith dispute under this Agreement, Accounting Procedure or Turnkey contract, then each of the Non-Defaulting Parties shall have the right to have forfeited to it and to acquire the Percentage Interest of the Defaulting Party in the wells to which the Default relates (excluding any pxxxxxusly completed wells in respect of which the Defaulting Party is not in Default) , by notice to the other Parties given within fifteen (15) days after notice from Operator that the Defaulting Party remains in Default under this Article 12.3.3 (ii) , (ii) If none of the Non-Defaulting Parties exercises its right as is mentioned in Article 12. (i) then, without prejudice to any rights of the Non-Defaulting Parties, the Parties shall be deemed to have decided to abandon the Joint Operations in relation to the relevant well and (subject to any abandonment agreement entered into pursuant to Article 5.11.3) each Party, including the Defaulting Party, shall pay its Percentage Interest share of the costs of abandoning such Joint Operations. 12.3.4 With respect to Article 12.3.3, any such forfeiture and acquisition of the interest of the Defaulting Party in any wells to which a Default relates, shall be: (i) xxbject to any necessary consent of the Government; (ii) without prejudice to any other rights of each Party other than the Defaulting Party; (iii) so forfeited and acquired as beneficial owner or owners free of any charges and encumbrances (other than rent and royalty under the relevant Licenses) but subject to all obligations under this Agreement and the relevant Licenses insofar as the interest assigned is concerned; (iv) subject to the Defaulting Party remaining liable and obligated for its Percentage Interest share of all net costs and obligations that in any way relate to the abandonment of the relevant Joint Operations, except to the extent they result from Joint Operations carried out after the date of forfeiture; and (v) effective as of the date of Default; and the Defaulting Party shall promptly join in such actions as may be necessary or desirable to obtain any necessary consent of the Government and shall execute and deliver any and all documents necessary to effect any such forfeiture and acquisition and all costs and expenses pertaining to any such forfeiture and acquisition shall be the responsibility of the Defaulting Party. 12.3.5 Notwithstanding anything to the contrary in Articles 12.3.3 or 12.3.4, the Defaulting Party shall continue to retain its economic interest in any wells (or Zones of wells) for which it previously earned its xxxxomic interest, xxxx and clear of amounts due for Default.

Continuation of Default. 12.3.1 If any Default continues 24.3.1 Should the default continue for more than fifteen six (156) days after the date of notification by Operator under Article 12.1(i) thenBusiness Days, for so long as the Default so continues, then the Defaulting Party shall not forfeit for as long thereafter as the default shall persist: (i) all of its rights under this Agreement to vote and to attend meetings of or otherwise participate in decisions taken by the Management Committee, and decisions of the Management Committee shall be entitled made by excluding the members of the Management Committee appointed by the Defaulting party; (ii) all of its rights to Production Petroleum produced or otherwise deliverable to it until the non-defaulting Parties have recovered the amount in kind or default; and (iii) all of its rights of access to receive or retain the Net Pre-tax Revenue to which data and information it would otherwise be entitled from the well to to; (iv) which the Defaults relates, and instead such Net Pre-tax Revenue rights shall be credited (subject to the Non Defaulting necessary consents of the Government) vest in the non-defaulting Parties in the proportions in which proportion to their respective Percentage Interests bear to the total of the Percentage Interests of the Non-Defaulting Parties. 12.3.2 During the continuation of any Default, the Defaulting Party shall not be entitled to attend meetings of the Operating Committee or be entitled to vote thereat (so that the voting interest of each Party other than the Defaulting Party shall be in the proportion which its Percentage Interest bears to the total Percentage Interests of such Parties), except in relation to decisions or matters concerning any of the Licenses or previously completed Wells as to which the Default is not applicable. Notwithstanxxxx that a Defaulting Party may not be entitled to attend or vote at a meeting of the Operating Committee in relation to any particular matter, it shall be bound by decisions of the Operating Committee made during the continuation of the Default in relation to that matter. If the Default subsists for sixty (60) days after the date of notification by Operator contributions under Article 12.1(i) and the Defaulting Party continues to hold a Percentage Interest, then from the end of such sixty (60) day period, while the Default subsists, the Defaulting Party shall grant to Operator a perfected security interest against the Defaulting Parties accounts receivable, as necessary to insure payment to the Non-defaulting Parties. Furthermore, the Defaulting Party shall have no further access to any data and information relating to the Joint Operations, except in relation to data or information concerning any of the Licenses or previously completed Wells as to which the Default is not applicable. (i) In the event that the Default continues for more than one-hundred and fifty (150) days after the date of notification by Operator under Article 12.1(i) and such Default is material and not resulting from a good-faith dispute under this Agreement, Accounting Procedure or Turnkey contract, then each of the Non-Defaulting Parties shall have the right to have forfeited to it and to acquire the Percentage Interest of the Defaulting Party in the wells to which the Default relates (excluding any pxxxxxusly completed wells 24.1.2 in respect of which the Defaulting Party is not in Default) , by notice to the other Parties given within fifteen (15) days after notice from Operator that the Defaulting Party remains in Default under this Article 12.3.3 (ii) , (ii) If none of the Non-Defaulting Parties exercises its right as is mentioned in Article 12. (i) then, without prejudice to any rights of the Non-Defaulting Parties, the Parties shall be deemed to have decided to abandon the Joint Operations in relation to the relevant well and (subject to any abandonment agreement entered into pursuant to Article 5.11.3) each Party, including the Defaulting Party, shall pay its Percentage Interest share of the costs of abandoning such Joint Operations. 12.3.4 With respect to Article 12.3.3, any such forfeiture and acquisition of the interest of the Defaulting Party in any wells to which a Default relates, shall be: (i) xxbject to any necessary consent of the Government; (ii) without prejudice to any other rights of each Party other than the Defaulting Party; (iii) so forfeited and acquired as beneficial owner or owners free of any charges and encumbrances (other than rent and royalty under the relevant Licenses) but subject to all payment obligations under this Agreement and the relevant Licenses insofar as the interest assigned is concerned; (iv) subject to the Defaulting Party remaining liable and obligated for its Percentage Interest share of all net costs and obligations that in any way relate to the abandonment of the relevant Joint Operations, except to the extent they result from Joint Operations carried out after the date of forfeiture; and (v) effective as of the date of Default; and the Defaulting Party shall promptly join in such actions as may be necessary or desirable to obtain any necessary consent of the Government and shall execute and deliver any and all documents necessary to effect any such forfeiture and acquisition and all costs and expenses pertaining to any such forfeiture and acquisition shall be the responsibility of the Defaulting Party. 12.3.5 Notwithstanding anything to 24.3.2 Should final abandonment of the contrary in Articles 12.3.3 or 12.3.4Joint operations occur within ten (10) Calendar Years of the default then, notwithstanding any forfeiture under this Article, the Defaulting Party shall continue remain liable for its Participating Interest share of the abandonment costs, provided always that if the final abandonment occurs more than ten (10) Calendar Years after the default, but the total revenues, net of surface rental, royalties, capital and operating costs which accrue from the Participating Interest so forfeited from the time the Defaulting Party were considered to retain its economic interest be in default to the time of abandonment are less than the share of abandonment costs attributable to the Participating Interest so forfeited, the Defaulting Party shall remain liable for the difference between such revenues and such and such share of abandonment costs, and the Defaulting Party shall be obligated hereby to keep in place any wells (security which hereafter may be required under applicable laws and regulations, or Zones of wells) for which it previously earned its xxxxomic interest, xxxx and clear of amounts due for Defaultany agreement with the Minister relating to abandonment costs.

Continuation of Default. 12.3.1 If any Default continues for more than fifteen (15) days after the date of notification by Operator under Article 12.1(i) then, for so long as the Default so continues, the Defaulting Party shall not be entitled to Production in kind or to receive or retain the Net Pre-tax Revenue to which it would otherwise be entitled from the well to which the Defaults relates, and instead such Net Pre-tax Revenue shall be credited to the Non Defaulting Parties in the proportions in which their respective Percentage Interests bear to the total of the Percentage Interests of the Non-Defaulting Parties. 12.3.2 During the continuation of any Default, the Defaulting Party shall not be entitled to attend meetings of the Operating Committee or be entitled to vote thereat (so that the voting interest of each Party other than the Defaulting Party shall be in the proportion which its Percentage Interest bears to the total Percentage Interests of such Parties), except in relation to decisions or matters concerning any of the Licenses or previously completed Wells as to which the Default is not applicable. Notwithstanxxxx that a Defaulting Party may not be entitled to attend or vote at a meeting of the Operating Committee in relation to any particular matter, it shall be bound by decisions of the Operating Committee made during the continuation of the Default in relation to that matter. If the Default subsists for sixty (60) days after the date of notification by Operator under Article 12.1(i) and the Defaulting Party continues to hold a Percentage Interest, then from the end of such sixty (60) day period, while the Default subsists, the Defaulting Party shall grant to Operator a perfected security interest against the Defaulting Parties accounts receivable, as necessary to insure payment to the Non-defaulting Parties. Furthermore, the Defaulting Party shall have no further access to any data and information relating to the Joint Operations, except in relation to data or information concerning any of the Licenses or previously completed Wells as to which the Default is not applicable. (i) In the event that the Default continues for more than one-hundred and fifty (150) days after the date of notification by Operator under Article 12.1(i) and such Default is material and not resulting from a good-faith dispute under this Agreement, Accounting Procedure or Turnkey contract, then each of the Non-Defaulting Parties shall have the right to have forfeited to it and to acquire the Percentage Interest of the Defaulting Party in the wells to which the Default relates (excluding any pxxxxxusly completed wells in respect of which the Defaulting Party is not in Default) , by notice to the other Parties given within fifteen (15) days after notice from Operator that the Defaulting Party remains in Default under this Article 12.3.3 (ii) , , (ii) If none of the Non-Defaulting Parties exercises its right as is mentioned in Article 12. (i) then, without prejudice to any rights of the Non-Defaulting Parties, the Parties shall be deemed to have decided to abandon the Joint Operations in relation to the relevant well and (subject to any abandonment agreement entered into pursuant to Article 5.11.3) each Party, including the Defaulting Party, shall pay its Percentage Interest share of the costs of abandoning such Joint Operations. 12.3.4 With respect to Article 12.3.3, any such forfeiture and acquisition of the interest of the Defaulting Party in any wells to which a Default relates, shall be: : (i) xxbject xxxject to any necessary consent of the Government; (ii) without prejudice to any other rights of each Party other than the Defaulting Party; (iii) so forfeited and acquired as beneficial owner or owners free of any charges and encumbrances (other than rent and royalty under the relevant Licenses) but subject to all obligations under this Agreement and the relevant Licenses insofar as the interest assigned is concerned; (iv) subject to the Defaulting Party remaining liable and obligated for its Percentage Interest share of all net costs and obligations that in any way relate to the abandonment of the relevant Joint Operations, except to the extent they result from Joint Operations carried out after the date of forfeiture; and (v) effective as of the date of Default; and the Defaulting Party shall promptly join in such actions as may be necessary or desirable to obtain any necessary consent of the Government and shall execute and deliver any and all documents necessary to effect any such forfeiture and acquisition and all costs and expenses pertaining to any such forfeiture and acquisition shall be the responsibility of the Defaulting Party. 12.3.5 Notwithstanding anything to the contrary in Articles 12.3.3 or 12.3.4, the Defaulting Party shall continue to retain its economic interest in any wells (or Zones of wells) for which it previously earned its xxxxomic interest, xxxx and clear of amounts due for Default.

Continuation of Default. 12.3.1 If 7.7.1 After any Default continues default has continued for more than fifteen thirty (1530) days after Business Days from the date of notification by Operator written notice of Default under Article 12.1(i) then, 7.6 and for so as long thereafter as the Default so continuesDefaulting Party remains in default on any payment due under this Agreement, the Defaulting Party shall not be entitled to Production in kind or to receive or retain vote on any matter coming before the Net Pre-tax Revenue to which it would Operating Committee during the period such default continues. Unless agreed otherwise be entitled from the well to which the Defaults relates, and instead such Net Pre-tax Revenue shall be credited to the Non Defaulting Parties in the proportions in which their respective Percentage Interests bear to the total of the Percentage Interests of by the Non-Defaulting Parties. 12.3.2 During the continuation of any Default, the Defaulting Party shall not be entitled to attend meetings of the Operating Committee or be entitled to vote thereat (so that the voting interest of each Party other than the Non-Defaulting Party shall be in the proportion which its Percentage Participating Interest bears to the total Percentage Interests of such Parties), except in relation to decisions or matters concerning any of the Licenses or previously completed Wells as Participating Interest of all the Non-Defaulting Parties. Any matter requiring unanimous vote of the Parties shall be deemed to which exclude the Default is not applicableDefaulting Party. Notwithstanxxxx that a Notwithstanding the foregoing, the Defaulting Party may not be entitled to attend or vote at a meeting of the Operating Committee in relation to any particular matter, it shall be bound by decisions of deemed to have approved, and shall join with the Operating Committee made during Non-Defaulting Parties in taking any action to maintain and preserve the continuation of Contract. 7.7.2 In the Default in relation to event that matter. If the Default subsists default continues for sixty more than ninety (6090) days after (the date of notification by Operator under Article 12.1(i"Default Period") and the Defaulting Party continues to hold a Percentage Interest, then from does not pay the amount in default plus accrued interest by the end of such sixty (60) day periodtime, while a proportion of the Default subsists, the Participating Interest of such Defaulting Party shall grant to Operator a perfected security interest against shall, at the Defaulting Parties accounts receivable, as necessary to insure payment to the Non-defaulting Parties. Furthermore, the Defaulting Party shall have no further access to any data and information relating to the Joint Operations, except in relation to data or information concerning any of the Licenses or previously completed Wells as to which the Default is not applicable. (i) In the event that the Default continues for more than one-hundred and fifty (150) days after the date of notification by Operator under Article 12.1(i) and such Default is material and not resulting from a good-faith dispute under this Agreement, Accounting Procedure or Turnkey contract, then each sole election of the Non-Defaulting Parties shall have the right to have be forfeited to it and the Non-Defaulting Parties to acquire reflect the Percentage ratio that the Participating Interest of the Defaulting Party in bears to the wells to which the Default relates (excluding any pxxxxxusly completed wells in respect of which cumulative contribution made by the Defaulting Party is not in Default) , by notice to the other Parties given within fifteen (15) days after notice from Operator that the Defaulting Party remains cumulative contribution made plus amount in Default under this Article 12.3.3 (ii) , (ii) If none default of the Non-Defaulting Parties exercises its right as is mentioned in Article 12. (i) then, without prejudice to any rights of the Non-Defaulting Parties, the Parties shall be deemed to have decided to abandon the Joint Operations in relation to the relevant well and (subject to any abandonment agreement entered into pursuant to Article 5.11.3) each Party, including the Defaulting Party, shall pay its Percentage Interest share of the costs of abandoning such Joint Operations. 12.3.4 With respect to Article 12.3.3, any . Following such forfeiture and acquisition of the interest reduced Participating Interest of the Defaulting Party shall be in any wells to which a Default relates, shall be: (i) xxbject to any necessary consent accordance of the Government; (ii) without prejudice to any other rights of each Party other than the Defaulting Party; (iii) so forfeited and acquired as beneficial owner or owners free of any charges and encumbrances (other than rent and royalty under the relevant Licenses) but subject to all obligations under this Agreement and the relevant Licenses insofar as the interest assigned is concerned; (iv) subject to the Defaulting Party remaining liable and obligated for its Percentage Interest share of all net costs and obligations following formula, except that in any way relate to the abandonment case of a default on the first Cash Call made on a Party, ten percent (10%) of the relevant Joint Operations, except to the extent they result from Joint Operations carried out after the date Participating Interest of forfeiture; and (v) effective as of the date of Default; and the Defaulting Party shall promptly join in such actions as may be necessary or desirable to obtain any necessary consent of stand forfeited:- A = [B/(B+C)] x D where: A = the Government and shall execute and deliver any and all documents necessary to effect any such forfeiture and acquisition and all costs and expenses pertaining to any such forfeiture and acquisition shall be the responsibility reduced Participating Interest of the Defaulting Party. 12.3.5 Notwithstanding anything . B = the total contributions to the contrary in Articles 12.3.3 or 12.3.4, Joint Operations costs of the Defaulting Party up to but not including the amount in default. C = the amount in default. D = Participating Interest of the Defaulting Party. Such forfeiture shall continue not restore the Defaulting Party's powers andrights forfeited under Article 7.7.1 until such Defaulting Party has paid the first Cash Call following including the obligations related thereto, in proportion to retain their Participating Interests or in such other proportion as unanimously agreed by them. The Defaulting Party shall execute such documents as are necessary to transfer its economic interest in any wells (or Zones of wells) for which it previously earned Participating Interest at its xxxxomic interest, xxxx and clear of amounts due for Defaultsole cost.

Continuation of Default. 12.3.1 15.3.1 If any Default continues for more than fifteen six (156) days Working Days after the date of notification by Operator under Article 12.1(i15.1(i) then, for so long as the Default so continues, the Defaulting Party shall not be entitled to Production in kind or to receive or retain its share of Petroleum which shall instead be owned by the Net PreNon-tax Revenue to which it would otherwise be entitled from the well to which the Defaults relates, and instead such Net Pre-tax Revenue shall be credited to the Non Defaulting Parties in the proportions in which their respective Percentage Interests bear to the total of the Percentage Interests of the Non-Defaulting Parties. 12.3.2 15.3.2 During the continuation of any Default, the Defaulting Party shall not be entitled to attend be represented at meetings of the Operating Committee or be entitled to vote thereat (so that the voting interest of each Party other than the Defaulting Party shall be in the proportion which its Percentage Interest bears to the total Percentage Interests of such Parties), except in relation to decisions or matters concerning any of the Licenses or previously completed Wells as to which the Default is not applicable. Notwithstanxxxx that a Defaulting Party may not be entitled to attend or vote at a meeting of the Operating Committee in relation to any particular matter, it shall be bound by decisions of the Operating Committee made during the continuation of the Default in relation to that matter. If the Default subsists for sixty (60) days after the date of notification by Operator under Article 12.1(i) six months and the Defaulting Party continues to hold a Percentage Interest, then from the end of such sixty (60) day that six month period, while the Default subsists, the Defaulting Party shall grant to Operator a perfected security interest against the Defaulting Parties accounts receivable, as necessary to insure payment to the Non-defaulting Parties. Furthermore, the Defaulting Party shall have no further access to any data and information relating to the Joint Operations, except in relation to data or information concerning any . The Defaulting Party shall be bound by decisions of the Licenses or previously completed Wells as to which Operating Committee made during the Default is not applicablecontinuation of the Default. 15.3.3 (i) In the event that the Default continues for more than one-hundred and fifty thirty (15030) days after the date of notification by Operator under Article 12.1(i) and such Default is material and not resulting from a good-faith dispute under this Agreement, Accounting Procedure or Turnkey contract15.1(i), then each of the Non-Defaulting Parties shall have the right to have forfeited to it and to acquire the Percentage Interest of the Defaulting Party in the wells to which the Default relates (excluding any pxxxxxusly completed wells in respect of which the Defaulting Party is not in Default) acquire, by notice to the other Parties given within fifteen (15) days after notice from Operator that such period of thirty (30) days, the interest of the Defaulting Party remains in Default the License and in and under this Article 12.3.3 (ii) , (ii) If none of the Agreement or, if more than one Non-Defaulting Parties Party exercises such right, its right as is mentioned in Article 12. (i) then, without prejudice to any rights of the Non-Defaulting Parties, the Parties shall be deemed to have decided to abandon the Joint Operations in relation to the relevant well and (subject to any abandonment agreement entered into pursuant to Article 5.11.3) each Party, including the Defaulting Party, shall pay its Percentage Interest proportionate share of the costs of abandoning such Joint Operations. 12.3.4 With respect to Article 12.3.3, any such forfeiture and acquisition of the interest of the Defaulting Party in any wells to which a Default relates, shall be: (i) xxbject to any necessary consent of the Government; (ii) without prejudice to any other rights of each Party other than the Defaulting Party; (iii) so forfeited License and acquired as beneficial owner or owners free of any charges in and encumbrances (other than rent and royalty under the relevant Licenses) but subject to all obligations under this Agreement and Agreement, such share being the relevant Licenses insofar as the interest assigned is concerned; (iv) subject to the Defaulting Party remaining liable and obligated for proportion in which its Percentage Interest share of all net costs and obligations that in any way relate bears to the abandonment total Percentage Interests of the relevant Joint Operations, except to the extent they result from Joint Operations carried out after the date of forfeiture; and (v) effective as of the date of Default; and the such Non-Defaulting Party shall promptly join in such actions as may be necessary or desirable to obtain any necessary consent of the Government and shall execute and deliver any and all documents necessary to effect any such forfeiture and acquisition and all costs and expenses pertaining to any such forfeiture and acquisition shall be the responsibility of the Defaulting PartyParties. 12.3.5 Notwithstanding anything to the contrary in Articles 12.3.3 or 12.3.4, the Defaulting Party shall continue to retain its economic interest in any wells (or Zones of wells) for which it previously earned its xxxxomic interest, xxxx and clear of amounts due for Default.