Common use of Initial Expenditures Clause in Contracts

Initial Expenditures. Upon the formation of the Joint Venture, each of the Optionee and the Optionor will have initial actual and deemed Expenditures as follows: (a) Optionee: Cumulative Expenditures to the date of acquisition of Initial Interest ("Optionee's amount); and (b) Optionor: Optionee's amount divided by the Initial Interest times the Optionor's initial participating interest under the Joint Venture Agreement.