Common use of Default in Making Contributions Clause in Contracts

Default in Making Contributions. 6.3.1 If a Participant elects to contribute to an approved Program and Budget and then defaults in making a contribution or cash call under an approved Program and Budget the non-defaulting Participant may, but is not obligated to, advance the defaulted contribution on behalf of the defaulting Participant and treat the same, together with any accrued interest, as a demand loan bearing interest from the date of the advance at the rate provided in Section 9.10. The failure to repay said loan within ten (10) days following demand shall be a default. 6.3.2 The Participants acknowledge that if a Participant defaults in making a contribution to an approved Program and Budget or a cash call under Section 9.9, or in repaying a loan under Subsection 6.3.1, as required hereunder, it will be difficult to measure the damages resulting from such default and the damage to the non-defaulting Participant could be significant. In the event of such default, as reasonable liquidated damages, the non-defaulting Participant may, with respect to any such default not cured within thirty (30) days after Notice to the defaulting Participant of such default, declare the defaulting Participant in default, in which case the defaulting Participant’s Participating Interest shall be reduced by two times the amount that would otherwise be calculated pursuant to Section 6.2. 6.3.3 If UMS defaults in payment of its Initial Contribution for mill expansion under Subsection 5.2 as required hereunder, then NJMC may, with respect to any default not cured within thirty (30) day after Notice to UMS of such default, declare UMS to be in default, in which case UMS’s Participating Interest shall be reduced by the amount calculated under Section 6.2 after reducing UMS’s Initial Contribution by the total amount owing as of the date that UMS is declared to be in default.

Default in Making Contributions. 6.3.1 (a) If a Participant elects to contribute to an approved Program and Budget Program’s budget and then defaults in making a contribution or cash call under an approved Program and Budget Program, the non-defaulting Participant may, but is not obligated to, advance the defaulted contribution on behalf of the defaulting Participant and treat the same, together with any accrued interest, as a demand loan bearing interest from the date of the advance at the rate provided in Section 9.10subparagraph 7.5(c). The failure to repay said loan within ten (10) days following upon demand shall be a default. 6.3.2 (b) The Participants acknowledge that if a Participant defaults in making a contribution to an approved Program and Budget or a cash call an invoice under Section 9.9paragraph 7.5, or in repaying a demand loan under Subsection 6.3.1subparagraph 7.6(a), as required hereunder, it will be difficult to measure the damages resulting from such default and default. The Participants acknowledge that the damage to the non-defaulting Participant could be significant. In the event of such default, and provided that the non-defaulting Participant has contributed, but was not obligated to do so, at least 80% of the defaulting Participant’s share of the costs of the Program’s budget which amount has not been treated as a demand loan pursuant to Section 7.6(a) above, as reasonable liquidated damages, the non-defaulting Participant may, with respect to any such default not cured within thirty (30) days after Notice notice to the defaulting Participant of such default, declare that the respective Interests of the Participants will be adjusted, in which event the Interest of the defaulting Participant will be recalculated first by reducing it by One Hundred and Fifty Percent (150%) of the amount that it would have been reduced pursuant to paragraph 7.12, if such Participant had elected not to contribute the amount by which it is in default, in which case . The Interest of the non-defaulting Participant shall thereupon become the difference between 100% and the recalculated Interest of the defaulting Participant’s Participating Interest shall be reduced by two times the amount that would otherwise be calculated pursuant to Section 6.2. 6.3.3 If UMS defaults in payment of its Initial Contribution for mill expansion under Subsection 5.2 as required hereunder, then NJMC may, with respect to any default not cured within thirty (30) day after Notice to UMS of such default, declare UMS to be in default, in which case UMS’s Participating Interest shall be reduced by the amount calculated under Section 6.2 after reducing UMS’s Initial Contribution by the total amount owing as of the date that UMS is declared to be in default.

Default in Making Contributions. 6.3.1 If a Participant elects to contribute to an approved Program and Budget and then defaults in making a contribution or cash call under an approved Program and Budget Budget, the non-defaulting Participant may, but is not obligated to, advance the defaulted contribution on behalf of the defaulting Participant and treat the same, together with any accrued interest, as a demand loan bearing interest from the date of the advance at the rate provided in Section 9.109.9. The failure to repay said loan within ten thirty (1030) days following demand shall be a default. 6.3.2 The Participants acknowledge that if a Participant defaults in making a contribution to an approved Program and Budget or a cash call under Section 9.99.8, or in repaying a loan under Subsection 6.3.1, as required hereunder, it will be difficult to measure the damages resulting from such default and default. The Participants acknowledge that the damage to the non-defaulting Participant could be significant. In the event of such default, as reasonable liquidated damages, the non-defaulting Participant may, with respect to any such default not cured within thirty (30) days after Notice notice to the defaulting Participant of such default, declare the defaulting Participant in defaultwithdrawn from the Venture, in which case the defaulting Participant’s Participant shall be deemed to have automatically relinquished its Participating Interest to the non-defaulting Participant and in such event the defaulting Participant shall not be reduced by two times entitled to receive the amount royalty that it would otherwise be calculated entitled to receive pursuant to Section 6.26.4. 6.3.3 If UMS defaults in payment of its Initial Contribution for mill expansion under Subsection 5.2 as required hereunder, then NJMC may, with respect to any default not cured within thirty (30) day after Notice to UMS of such default, declare UMS to be in default, in which case UMS’s Participating Interest shall be reduced by the amount calculated under Section 6.2 after reducing UMS’s Initial Contribution by the total amount owing as of the date that UMS is declared to be in default.