Common use of Funding of Development Costs Clause in Contracts

Funding of Development Costs. Each Party shall pay its pro rata share of all Development Costs incurred by the Parties from and after the Effective Date. The Project Manager shall, prior to the beginning of each [quarter], determine the anticipated Development Costs for that [quarter] and notify each Party of its respective share of such Development Costs for that period (each a “Cash Call”). In determining the amount of each Cash Call, the Project Manager shall consider Development Costs projected to come due during the relevant period in accordance with the then current Development Budget, any cash remaining from prior Cash Calls and the amount of unreimbursed Development Costs each Party has expended. Each Party shall pay the amount of the Cash Call not later than 7 days after receipt of the Cash Call.