Initial interests and expenditures. On the date of formation of the Joint Venture the parties shall, for purposes of the Joint Venture Agreement, be deemed to have the following initial interest and to have incurred, as prior exploration costs, moneys under this Option Agreement in the amounts as follows: Undivided Interest Deemed Expenditures Optionee 50% $1,500,000 Optionor 50% $1,500,000
Initial interests and expenditures. Upon the formation of the Joint Venture in accordance with section 3.2, the Optionee will have a Participating Interest of 80% and the Optionor will have a Carried Interest of 20%, and each of them will have initial, actual and deemed Expenditures as follows:
