Common use of Liabilities and payments Clause in Contracts

Liabilities and payments. Unless otherwise specified in this Agreement, the Parties shall be primarily liable to each other on a pro rata basis, secondarily jointly and severally liable for all obligations arising by virtue of the joint venture's activities. This applies irrespective of a liability towards third parties. Each Party is responsible for his share of the area fee. If a Party does not pay his share, the Operator shall make the payment on his behalf and apportion the amount between the other Parties in accordance with their Participating interest. None of the other Parties may be held liable pursuant to Article 7.1 for direct taxes which a Party is obliged to pay. Each Party is obliged to pay the direct taxes charged to him. DUTY OF CONTRIBUTION The Parties are obliged to provide sufficient funds to cover all expenses relating to the activities of the joint venture. Unless otherwise specified in the Production Licence, the amount to be contributed by each Party shall be calculated in accordance with the Participating interest at the time the payment is made. Further provisions regarding the Parties' duty of contribution in this respect are specified in Attachment B - Accounting Agreement.