Mandatory Program Sample Clauses

Mandatory Program. Notwithstanding section 17, if, in any year in which there is no approved Program, circumstances are such that the Manager must incur Costs in order to maintain tenure to the mineral properties comprising the Property, to satisfy obligations imposed by law, to prevent waste or to protect life and property (in this section 18 called “non-discretionary costs”), the Manager may propose a Program to incur those non-discretionary Costs. That Program shall be deemed to be approved by the Management Committee and each of the parties shall be obligated to contribute their proportionate share of the non-discretionary costs incurred; failing such contribution, each non-contributing party’s Interest may, at the contributing party’s election, be forfeited pro rata to the contributing party.

Mandatory Program. Notwithstanding sections "15.1" and "15.3" herein, if in any year in which there is no approved Program, circumstances require the Operator to incur costs in order to maintain tenure to the Property, to satisfy contractual obligations or obligations imposed by law, to prevent waste or to protect life and property (in this section called "non-discretionary costs"), the Operator shall forthwith propose a Program (in this section called the "mandatory program") to incur those non-discretionary costs and provide each Party with one copy thereof. The mandatory program shall be deemed to be approved by the Management Committee and each of the Parties shall be obligated to contribute its Proportionate Share of the non-discretionary costs incurred within 30 calendar days of receipt of the Operator's invoice. Non-discretionary costs shall be deemed to be Exploration Costs for all purposes of this Agreement.

Mandatory Program. 21.1 If, in any year prior to a Production Decision, there is no approved Work Program and circumstances are such that the Operator must incur Costs in order to maintain tenure to the Property, to satisfy contractual obligations or obligations imposed by law or to prevent waste or protect life and property, the Operator shall be entitled to propose a program (the “Mandatory Program”) of Costs to maintain tenure to the Property, to satisfy contractual obligations that have been entered into as the result of a previously approved Work Program and to satisfy obligations imposed by law or to prevent waste or protect life and property. The Mandatory Program shall be deemed to be approved if proposed by the Operator in good faith, and each of the parties shall be obligated to contribute its proportionate share of Costs provided that if the non-Operator’s proportionate share of Costs is in excess of $500,000 and the non-Operator does not have sufficient cash on hand and it wishes to retain its interest, it will give Notice thereof to the Operator within 30 days, whereupon the Operator may elect to advance the amount of the defaulted payment. Notwithstanding the foregoing, if payment is not made within 30 days of written demand, which written demand may be made 30 days after an invoice has been given to a party, the other party may elect to advance the amount of the defaulted payment. The defaulting party shall then have 365 days to reimburse the party that advanced the amount of the defaulted payment, with interest at the “Prime Rate” plus 4% per annum, as defined in §4.01(h) of Schedule C. Should such reimbursement not be made by such date the defaulting party shall be deemed to have assigned and conveyed its interest to the other party, or parties as the case may be, and in consideration therefore the defaulting party will be entitled to receive a NPI Royalty capped at such party’s actual contributions to Expenditures and Costs hereunder. The remaining parties shall apportion the assigning party’s deemed Costs amongst them pro rata to their interests and adjust their interests according to §16.

Mandatory Program. 27.1 If, in any year prior to a production decision, there is no approved program and circumstances are such that the Operator must incur costs in order to maintain the Property, the Operator shall be entitled to propose a program (the "mandatory program") to incur those costs. The mandatory program shall be deemed to be approved by the Board and each of the parties shall be obligated to contribute its proportionate share of Costs. A party which fails to contribute its share of Costs of a mandatory program shall be deemed to have assigned and conveyed its shares in Holdco and rights under this Agreement to the other party and in return it will receive a royalty after payback of capital costs equal to 0.5% of net smelter returns defined and to be calculated and paid as set out in Schedule Error! Reference source not found.” to a maximum of the Expenditures and Costs that it had contributed.