Common use of Payments in Kind Clause in Contracts

Payments in Kind. If the Royalty Holder determines that it wishes to receive Royalty payments in the physical product in kind, the Royalty Holder shall provide written notice of such election including details of the Royalty Holder’s account at the final refiner or other processor of the Cobalt. Upon timely receipt of such notice, the Owners shall direct any Offtaker that is the final refiner or other processor of the Cobalt to pay the Royalty directly to the account of the Royalty Holder at the Offtaker. All costs incurred by the Owners with respect to arranging for such payment in kind shall be for the account of the Royalty Holder and may be deducted from any subsequent payment of the Royalty. The Royalty Holder shall be responsible for all costs associated with the transportation of and insurance relating to Royalty payments delivered in kind to the Royalty Holder and if such transportation costs are paid for by the Royalty Holder the same shall not be included as one of the Allowable Deductions pursuant to section (ii) of the definition of Allowable Deductions. Title to Cobalt delivered to the Royalty Holder set forth in this section 3.8 shall pass to the Royalty Holder at the time the Cobalt is credited to the Royalty Holder at the Offtaker. If the Royalty Holder has provided written notice that it wishes to receive Royalty payments in the physical product in kind, the Owners shall notify the Royalty Holder in writing at least three weeks prior to any change of Offtaker.

Payments in Kind. If In the event that the Royalty Holder determines that it wishes to receive Base Metal Royalty payments and Precious Metal Royalty payments in the physical product in kind, the Royalty Holder shall provide written notice of such election including details of the Royalty Holder’s account at the final refiner or other processor of the Cobaltapplicable Minerals. Upon timely receipt of such notice, the Owners Owner shall direct any Offtaker that is the final refiner or other processor of the Cobalt applicable Minerals to pay the Base Metal Royalty and/or the Precious Metal Royalty directly to the account of the Royalty Holder at the Offtaker. All costs incurred by the Owners Owner with respect to arranging for such payment in kind shall be for the account of the Royalty Holder and may be deducted from any subsequent payment of the Base Metal Royalty and/or the Precious Metal Royalty, as the case may be. The Royalty Holder shall be responsible for all costs associated with the transportation of and insurance relating to Base Metal Royalty payments and/or Precious Metal Royalty payments delivered in kind to the Royalty Holder and if such transportation costs are paid for by the Royalty Holder the same shall not be included as one of the Allowable Deductions pursuant to section (ii) of the definition of Allowable Deductions. For greater certainty and without limitation, the Owner shall not be obligated to deliver Base Metal Royalty payments and/or Precious Metal Royalty payments in physical product in kind if the Owner shall suffer an adverse tax consequence thereby. Title to Cobalt Product delivered to the Royalty Holder set forth in this section 3.8 shall pass to the Royalty Holder at the time the Cobalt Product is credited to the Royalty Holder at the Offtaker. If the Royalty Holder has provided written notice that it wishes to receive Base Metal Royalty payments and/or Precious Metal Royalty payments in the physical product in kind, the Owners Owner shall notify the Royalty Holder in writing at least three weeks prior to any change of Offtaker.