Common use of Administrative Charge Clause in Contracts

Administrative Charge. After the Participants have made their entire Initial Contributions pursuant to Sections 5.1 and 5.2 of the Venture Agreement, the Manager shall charge the Joint Account each month a sum as provided below, which shall be a liquidated amount to reimburse the Manager for its home office overhead and general and administrative expenses for its conduct of Operations, which shall be in lieu of any management fee: (a) with respect to Operations before commencement of Development, the Manager’s fee shall be ten percent (10%) of the Allowable Costs other than funds expended pursuant to any individual contract for materials or services which exceed in the aggregate $35,000.00 in any Program year, for which the Manager’s fee shall be two percent (2%); (b) with respect to operations after the commencement of Development but before commencement of Mining, Manager’s fee shall be five percent (5%) of Allowable Costs other than funds expended pursuant to any individual contract for materials or services which exceeds in the aggregate $100,000 in any program year in which event the fee for such matters shall be two percent (2%); These fee rates are based upon the principle that the Manager shall not make a profit or loss from this administrative charge but should be fairly and adequately compensated for the pro rata share of its costs and expenses. The specific rates provided for in this Section 2.14 shall be established and may be amended from time to time by mutual agreement among the Parties hereto if, in practice, the rates are found to be insufficient or excessive. Allowable Costs as used in this Section 2.14 shall include all amounts accrued to the Environmental Compliance fund, and all charges to the Joint Account except (i) the administrative charge defined herein; (ii) depreciation, depletion or amortization of tangible or intangible assets; (iii) amounts expended for acquisition, construction or installation of tangible or intangible assets after mining operations have commenced; (iv) Property payments, taxes and assessments; and (v) funds disbursed from the Environmental Compliance fund. The following representative list of items comprising the Manager’s principal business office expenses are expressly covered by the administrative charge provided in this Section 2.14: (a) administrative supervision, which includes services rendered by officers and directors of the Manager for Operations, except to the extent that such services represent a direct charge to the Joint Account, as provided for in Section 2.2; (b) accounting, billing and record keeping in accordance with governmental regulations and the provisions of the Venture Agreement; (c) handling of all tax matters, including any protests, except any outside professional fees which the Management Committee may approve as a direct charge to the Joint Account; (d) routine legal services by the Manager’s in-house legal staff, and (e) records and storage space, telephone service and office supplies.

Administrative Charge. After the Participants have made their entire Initial Contributions pursuant to Sections 5.1 and 5.2 of the Venture Agreement(a) Each month, the Manager Operator shall charge the Joint Account each month a sum as provided belowan amount, which shall be a liquidated amount to reimburse the Manager Operator for its home office overhead and general and administrative expenses to operate the Property as a mine. equal to 15% of all Costs up to the date of commencement of Commercial Production excluding any construction or development contracts in excess of $100,000 to which a 3% management fee shall apply and following commencement of Commercial Production the management fee shall be renegotiated to be based upon usual business practices for its conduct of Operationsan operating mine on the basis that the Operator should neither profit nor lose for acting as such, to be payable monthly in arrears for the Costs incurred in that month, which charge shall be in lieu of any management fee: (a) with respect an amount sufficient to Operations before commencement of Developmentreimburse the Operator fully for its services as Operator, but not sufficient to enable the Manager’s fee Operator to profit thereby and such fees will be reviewed and if proven to be excessive or insufficient shall be ten percent (10%) of adjusted by the Allowable Costs other than funds expended pursuant to any individual contract for materials or services which exceed in Management Committee on the aggregate $35,000.00 in any Program year, for which basis that the Manager’s fee shall be two percent (2%);Operator should neither profit nor lose by acting as such. (b) with respect to operations after the commencement of Development but before commencement of Mining, Manager’s fee shall be five percent (5%) of Allowable Costs other than funds expended pursuant to any individual contract for materials or services which exceeds in the aggregate $100,000 in any program year in which event the fee for such matters shall be two percent (2%); These fee rates are based upon the principle that the Manager shall not make a profit or loss from this administrative charge but should be fairly and adequately compensated for the pro rata share of its costs and expenses. The specific rates provided for in this Section 2.14 shall be established and may be amended from time to time by mutual agreement among the Parties hereto if, in practice, the rates are found to be insufficient or excessive. Allowable Costs as used in this Section 2.14 shall include all amounts accrued to the Environmental Compliance fund, and all charges to the Joint Account except (i) the administrative charge defined herein; (ii) depreciation, depletion or amortization of tangible or intangible assets; (iii) amounts expended for acquisition, construction or installation of tangible or intangible assets after mining operations have commenced; (iv) Property payments, taxes and assessments; and (v) funds disbursed from the Environmental Compliance fund. The following is a representative list of items comprising the Manager’s Operator's principal business office expenses that are expressly covered by the administrative charge provided in this Section 2.14subsection 2.13: (ai) administrative Administrative supervision, which includes services rendered by managers, department supervisors, officers and directors of the Manager Operator for Operationsoperation of the Property as mine, except to the extent that such services represent a direct charge to the Joint Account, as provided for in Section subsection 2.2; (bii) accountingAccounting, data processing, personnel administration, billing and record keeping in accordance with governmental regulations and the provisions of the Venture Agreement, and preparation of reports; (ciii) handling The services of tax counsel and tax administration employees for all tax matters, including any protests, except any outside professional fees which the Management Committee may approve as a direct charge to the Joint Account;: (div) routine Routine legal services rendered by outside sources and the Manager’s in-house Operator's legal staff, staff not otherwise charged to the Joint Account under subsection 2.9; and (ev) Rentals and other charges for office and records and storage space, telephone service service, office equipment and office supplies; (c) The Management Committee shall annually review the administration charges and shall amend the methodology or rates used to determine such charges if they are found to be insufficient or excessive.

Administrative Charge. After the Participants have made their entire Initial Contributions pursuant to Sections 5.1 and 5.2 of the Joint Venture Agreement, the Manager shall charge the Joint Account each month a sum as provided below, which shall be a liquidated amount to reimburse the Manager for its home office overhead and general and administrative expenses for its conduct of Operations, which shall be in lieu of any management fee: (a) : with respect to Operations before commencement of Development, the Manager’s 's fee shall be ten percent (10%) of the Allowable Costs other than funds expended pursuant to any individual contract for materials or services which exceed in the aggregate $35,000.00 in any Program year, for which the Manager’s 's fee shall be two percent (2%); (b) ; with respect to operations after the commencement of Development but before commencement of Mining, Manager’s 's fee shall be five percent (5%) of Allowable Costs other than funds expended pursuant to any individual contract for materials or services which exceeds in the aggregate $100,000 in any program year in which event the fee for such matters shall be two percent (2%); These fee rates are based upon the principle that the Manager shall not make a profit or loss from this administrative charge but should be fairly and adequately compensated for the pro rata share of its costs and expenses. The specific rates provided for in this Section 2.14 shall be established and may be amended from time to time by mutual agreement among the Parties hereto if, in practice, the rates are found to be insufficient or excessive. Allowable Costs as used in this Section 2.14 shall include all amounts accrued to the Environmental Compliance fund, and all charges to the Joint Account except (i) the administrative charge defined herein; (ii) depreciation, depletion or amortization of tangible or intangible assets; (iii) amounts expended for acquisition, construction or installation of tangible or intangible assets after mining operations have commenced; (iv) Property payments, taxes and assessments; and (v) funds disbursed from the Environmental Compliance fund. The following representative list of items comprising the Manager’s 's principal business office expenses are expressly covered by the administrative charge provided in this Section 2.14: (a) : administrative supervision, which includes services rendered by officers and directors of the Manager for Operations, except to the extent that such services represent a direct charge to the Joint Account, as provided for in Section 2.2; (b) ; accounting, billing and record keeping in accordance with governmental regulations and the provisions of the Joint Venture Agreement; (c) ; handling of all tax matters, including any protests, except any outside professional fees which the Management Committee may approve as a direct charge to the Joint Account; (d) ; routine legal services by the Manager’s 's in-house legal staff, and (e) and records and storage space, telephone service and office supplies.

Administrative Charge. After the Participants have made their entire Initial Contributions pursuant to Sections 5.1 and 5.2 of the Venture Agreement, the The Manager shall charge the Joint Account each month a sum as provided below, which shall be a liquidated amount to reimburse the Manager for its home office overhead and general and administrative expenses for its conduct of Operations, which shall be in lieu of any management fee: (a) 2.14.1 with respect to Operations before commencement of Development, the Manager’s fee shall be ten percent (10%) of the Allowable Costs other than funds expended pursuant to any individual contract for materials or for services which exceed in the aggregate $35,000.00 US$50,000 in any Program yearperiod, for which the Manager’s fee shall be two three percent (23%);) of Allowable Costs. (b) 2.14.2 with respect to operations after the commencement of Development but before commencement of Mining, the Manager’s fee shall be five percent (5%) of Allowable Costs other than funds expended pursuant Costs; 2.14.3 with respect to any individual contract for materials or services which exceeds in operations after the aggregate $100,000 in any program year in which event commencement of Mining, the Manager’s fee for such matters shall be two three percent (23%); ) of Allowable Costs. These fee rates are based upon the principle that the Manager shall not make a profit or loss from this administrative charge but should be fairly and adequately compensated for the pro rata share of its costs and expenses. The specific rates provided for in this Section 2.14 shall be established and may be amended from time to time by mutual agreement among the Parties hereto if, in practice, the rates are found to be insufficient or excessive. Allowable Costs as used in this Section 2.14 shall include all amounts accrued to the Environmental Compliance fund, and all charges to the Joint Account except (i) the administrative charge defined herein; (ii) depreciation, depletion or amortization of tangible or intangible assets; (iii) funds disbursed from the Environmental Compliance Fund; (iv) amounts expended for acquisition, construction or installation of tangible or intangible assets after mining operations have commenced; and (ivv) Property land payments, taxes and assessments; and (v) funds disbursed from the Environmental Compliance fund. The following representative list of items comprising the Manager’s principal business office expenses are expressly covered by the administrative charge provided in this Section 2.14: 2.14 : (a) administrative supervision, which includes services rendered by officers and directors of the Manager for Operations, except to the extent that such services represent a direct charge to the Joint Account, as provided for in Section 2.2; 2.2 ; (b) accounting, billing and record keeping in accordance with governmental regulations and the provisions of the Venture Agreement; ; (c) handling of all tax matters, including any protests, except any outside professional fees which the Management Committee may approve as a direct charge to the Joint Account; ; (d) routine Routine legal services by the Manager’s in-house legal staff, and ; and (e) records Records and storage space, telephone service and office supplies.

Administrative Charge. After the Participants have made their entire Initial Contributions pursuant to Sections 5.1 and 5.2 of the Joint Venture Agreement, the Manager shall charge the Joint Account each month a sum as provided below, which shall be a liquidated amount to reimburse the Manager for its home office overhead and general and administrative expenses for its conduct of Operations, which shall be in lieu of any management fee: (a) with respect to Operations before commencement of Development, the Manager’s 's fee shall be ten percent (10%) of the Allowable Costs other than funds expended pursuant to any individual contract for materials or services which exceed in the aggregate $US$35,000.00 in any Program year, for which the Manager’s 's fee shall be two percent (2%); (b) with respect to operations after the commencement of Development but before commencement of Mining, Manager’s 's fee shall be five percent (5%) of Allowable Costs other than funds expended pursuant to any individual contract for materials or services which exceeds in the aggregate $US$100,000 in any program year in which event the fee for such matters shall be two percent (2%); These fee rates are based upon the principle that the Manager shall not make a profit or loss from this administrative charge but should be fairly and adequately compensated for the pro rata share of its costs and expenses. The specific rates provided for in this Section 2.14 shall be established and may be amended from time to time by mutual agreement among the Parties hereto if, in practice, the rates are found to be insufficient or excessive. Allowable Costs as used in this Section 2.14 shall include all amounts accrued to the Environmental Compliance fund, and all charges to the Joint Account except (i) the administrative charge defined herein; (ii) depreciation, depletion or amortization of tangible or intangible assets; (iii) amounts expended for acquisition, construction or installation of tangible or intangible assets after mining operations have commenced; (iv) Property payments, taxes and assessments; and (v) funds disbursed from the Environmental Compliance fund. The following representative list of items comprising the Manager’s 's principal business office expenses are expressly covered by the administrative charge provided in this Section 2.14: (a) administrative supervision, which includes services rendered by officers and directors of the Manager for Operations, except to the extent that such services represent a direct charge to the Joint Account, as provided for in Section 2.2; (b) accounting, billing and record keeping in accordance with governmental regulations and the provisions of the Joint Venture Agreement; (c) handling of all tax matters, including any protests, except any outside professional fees which the Management Committee may approve as a direct charge to the Joint Account; (d) routine legal services by the Manager’s 's in-house legal staff, and (e) records and storage space, telephone service and office supplies.