Common use of Procedures Related to Operating Plans Clause in Contracts

Procedures Related to Operating Plans. (a) Each Director shall within 25 days after submission by the President to the Board of the proposed Operating Plan submit to the Director(s) appointed by the other Shareholder: (i) notice that such Director approves the proposed Operating Plan; (ii) proposed modifications of the proposed Operating Plan; or (iii) notice that such Director rejects the proposed Operating Plan. If a Director makes a timely submission to the Directors appointed by the other Shareholder pursuant to Sections 7.3(a)(ii) or 7.3(a)(iii), then the Board shall meet within 10 Business Days after such proposals or objections are submitted and shall consider, acting reasonably and in good faith, the proposals or objections of such Director and seek to develop a complete Operating Plan acceptable to all Directors in light of the proposals or objections of a Director. The President shall be authorized at all times to continue Operations sufficient to maintain the Company’s assets and comply with Applicable Law and to maintain production levels in effect when the failure occurs. Operations performed by the President pursuant to this Section 7.3(a) shall be funded by Available Cash to the extent reasonably possible. Unless otherwise determined by the Board, the Shareholders shall provide funding required for such expenditures to the extent that Available Cash is insufficient to cover the same as Shareholder Contributions to the Company in their respective Proportionate Interests in accordance with a Contribution Notice provided by the President. (b) The Board shall seek to approve each Operating Plan by December 31st in the year immediately preceding the calendar year to which such Operating Plan applies.