Alternative Programs and Budgets Clause Samples

Alternative Programs and Budgets. After completion by Barrick of its Initial Contribution, and if MGC has not elected to exercise the Carry Option, whenever Barrick proposes a Program and Budget for any annual period of less than $350,000, MGC shall have a period of 30 days from and after its receipt of such a proposed Program and Budget to propose a substitute Program and Budget that calls for expenditures in excess of $350,000. If Barrick elects not to participate in that substitute Program and Budget at a level that is in accordance with its Participating Interest (with respect to any substitute Program and Budget, Barrick shall have the right only to participate fully in any such substitute Program and Budget, or not at all), then MGC may elect to require the Management Committee to adopt that Program and Budget, and in that event MGC’s Participating Interest shall be increased by one percentage point for each complete $500,000 increment spent by it pursuant to that substitute Program and Budget. By way of example (but not limitation), if Barrick had elected only to earn a 60% Participating Interest, and if during the relevant time period MGC proposed a substitute Program and Budget calling for expenditures of $1,000,000, and Barrick elected not to participate, upon completion and full funding of that Program and Budget, MGC’s Participating Interest would automatically increase from 40% to 42%, and ▇▇▇▇▇▇▇’▇ Participating Interest would automatically decrease from 60% to 58%. Subsequently, if MGC proposed a substitute Program and Budget calling for expenditures of $2,500,000, and Barrick elected not to participate, upon completion and full funding of that Program and Budget MGC’s Participating Interest would automatically increase from 42% to 45%, and ▇▇▇▇▇▇▇’▇ Participating Interest would automatically decrease from 58% to 55%. The provisions of this Section 5.6 shall apply until such time, if any, as MGC has increased its Participating Interest to at least 70%. Thereafter, the standard dilution formula (as described in Section 9.5) shall apply.