Financing component. The financing component reflects the income and costs that would be incurred in the event of a cor- responding investment in the Reference Instrument. Since an investment in futures does not involve the purchase of the reference asset underlying the future but simply consists of entering into a corresponding position in a futures contract, no ex- penditure is incurred for the acquisition of the reference asset underlying the future. Instead, the only requirement is to make a margin payment based on the position entered into in accordance with the rules and regulations of the Reference Exchange. The financing costs for the margin pay- ment are reflected in the financing component. The financing component also reflects the income that would be earned from a risk-free investment in line with the strategy of the leverage component and at the relevant Interest Rate. Additionally, a fee charged by the Index Calculation Agent for the calculation and administration of the Factor Index is added (Index Fee). If the costs of the margin payment and the Index Fee exceed the interest income based on the ap- plicable Interest Rate on a particular day, the value of the Factor Index on that day is reduced.
Financing component. The financing component tracks the capital costs that would be incurred to finance the correspond- ing investment in the Reference Instrument. Additionally, a fee charged by the Index Calculation Agent for the calculation and administration of the Factor Index is added (Index Fee). The financing component therefore reduces the value of the Factor Index.
Financing component. The financing component tracks the capital costs that would be incurred to finance the correspond- ing investment in the oÉÑÉêÉåÅÉ fåëíêìãÉåí (or constituents thereof). Additionally, a fee charged by the xxXXx `~äÅìä~íáçå ^ÖÉåí for the calculation and administration of the c~Xxxx xxXXx is added (fåJ ÇÉñ cÉÉ). The financing component therefore reduces the value of the c~Xxxx xxXXx.
Financing component. The financing component reflects the income and costs that would be incurred in the event of a cor- responding investment in the oÉÑÉêÉåÅÉ fåëíêìãÉåí. Since an investment in futures does not involve the purchase of the reference asset underlying the future but simply consists of entering into a corresponding position in a futures contract, no ex- penditure is incurred for the acquisition of the reference asset underlying the future. Instead, the only requirement is to make a margin payment based on the position entered into in accordance with the rules and regulations of the oÉÑÉêÉåÅÉ bñÅÜ~åÖÉ. The financing costs for the margin pay- ment are reflected in the financing component. The financing component also reflects the income that would be earned from a risk-free investment in line with the strategy of the leverage component and at the relevant fåíÉêÉëí o~íÉ. Additionally, a fee charged by the xxXXx `~äÅìä~íáçå ^ÖÉåí for the calculation and administration of the c~Xxxx xxXXx is added (xxXXx cÉÉ). If the costs of the margin payment and the xxXXx cÉÉ exceed the interest income based on the ap- plicable fåíÉêÉëí o~íÉ on a particular day, the value of the c~Xxxx xxXXx on that day is reduced.
Financing component. The financing component emulates the income and expenses that would arise from acquiring the Reference Instrument, selling it and investing the proceeds at the risk-free rate. Additionally, a fee charged by the Index Calculation Agent for the calculation and administration of the Factor Index is added (Index Fee which reduces the value of the index). If the acquisition costs and the Index Fee exceed the interest income based on the relevant Interest Rate on a particular day, the value of the Factor Index is reduced on such day.
Financing component. The financing component emulates the income and expenses that would arise from acquiring the Refereuce Iustrumeut, selling it and investing the proceeds at the risk-free rate. Additionally, a fee charged by the Iudex Calculatiou Aφeut for the calculation and administration of the Factor Iudex is added (Iudex Fee which reduces the value of the index). If the acquisition costs and the Iudex Fee exceed the interest income based on the relevant Iuterest Rate on a particular day, the value of the Factor Iudex is reduced on such day.
Financing component. The financing component emulates the income and expenses that would arise from acquiring the oÉÑÉêÉåÅÉ fåëíêìãÉåí, selling it and investing the proceeds at the risk-free rate. Additionally, a fee charged by the xxXXx `~äÅìä~íáçå ^ÖÉåí for the calculation and administration of the c~Xxxx xxXXx is added (xxXXx cÉÉ which reduces the value of the index). If the acquisition costs and the xxXXx cÉÉ exceed the interest income based on the relevant fåíÉêÉëí o~íÉ on a particular day, the value of the c~Xxxx xxXXx is reduced on such day.
Financing component. The financing component tracks the capital costs that would be incurred to finance the correspond- ing investment in the Refereuce Iustrumeut. Additionally, a fee charged by the Iudex Calculatiou Aφeut for the calculation and administration of the Factor Iudex is added (Iudex Fee). The financing component therefore reduces the value of the Factor Iudex.
Financing component. 1. Subject to satisfactory execution by all parties of the hereafter described agreements and approval of the boards of each of Azco and OAL, Azco shall purchase a $750,000 US convertible debenture (the "Debenture") from OAL and Azco shall be granted 1,500,000 warrants. Unless otherwise agreed in writing by Azco, the proceeds of the Debenture shall be used only for the first phase of the Chigua White Bentonite Project (the "Project"), option payments to Pierxx Xxxxxx xx accordance with an option agreement (the "Option Agreement") with Pierxx Xxxxxx, xxd a maintenance and administrative allowance as approved by Azco.
2. The terms of the Debenture shall be as follows:
(i) the Debenture shall be a first fixed and floating charge convertible debenture in the principal amount of $750,000 US (the "Principal") bearing interest on outstanding Principal at 12% per annum, calculated and payable annually in arrears, and shall mature two years from its date of issue. It shall be in Azco's standard form and shall not have pre-payment privileges without Azco's consent;
(ii) the Principal shall be drawn by OAL against approved budgets and draw schedules, as mutually agreed, in accordance with the approved mining and production plan (the "Production Plan");
(iii) at the option of Azco, the Debenture shall be convertible, as to Principal (and Azco may elect to advance the total Principal at any time for such purpose), and outstanding interest, to common shares of OAL during the term of the Debenture. Azco may elect to exercise the conversion right in priority to repayment of Principal and interest. Each share shall be priced at $0.50 US.
3. The 1,500,000 warrants (the "Warrants") granted to Azco concurrently with the Debenture, shall be two year Warrants exercisable at any time to purchase up to 1,500,000 common shares of OAL at a price of $0.60 US per share.
4. Azco shall have the right to appoint a representative to the board of directors of OAL during the term of the Debenture and so long as such has not been repaid or converted.
5. RH and RL shall enter into management agreements with OAL for a term of not less than the Debenture term, on terms no better as to salary than that set forth below, and shall be responsible for supervising the implementation and completion of the Production Plan.
6. OAL warrants that it has an option on 50% of the Project and the property thereof pursuant to the Option Agreement and extension agreement between OAL and Pierxx Xxxxxx xxx, to t...
Financing component. The financing component reflects the income and costs that would be incurred in the event of a cor- responding investment in the Refereuce Iustrumeut. Since an investment in futures does not involve the purchase of the reference asset underlying the future but simply consists of entering into a corresponding position in a futures contract, no ex- penditure is incurred for the acquisition of the reference asset underlying the future. Instead, the only requirement is to make a margin payment based on the position entered into in accordance with the rules and regulations of the Refereuce Exchauφe. The financing costs for the margin pay- ment are reflected in the financing component. The financing component also reflects the income that would be earned from a risk-free investment in line with the strategy of the leverage component and at the relevant Iuterest Rate. Additionally, a fee charged by the Iudex Calculatiou Aφeut for the calculation and administration of the Factor Iudex is added (Iudex Fee). If the costs of the margin payment and the Iudex Fee exceed the interest income based on the ap- plicable Iuterest Rate on a particular day, the value of the Factor Iudex on that day is reduced.
