Common use of Proceeds of Production Clause in Contracts

Proceeds of Production. Proceeds of production shall be distributed, or if a Participant elects to take in kind or separately dispose of its share of all Products, Richmont shall be entitled to 70% and P▇▇▇▇▇▇▇ to 30% of all proceeds of production or all Products, as the case may be, in each case, net of all costs (i.e. net cash flow) until Richmont has recovered all its initial expenditures pursuant to section 5.2 or 5.6 as the case may be, after which time, each of Richmont and P▇▇▇▇▇▇▇ shall be entitled to their share of Products based on their respective Participating Interests. Calculations as to the amount recouped by Richmont on account of its initial maximum $10 million expenditures (or such lesser amount pursuant to section 5.6 hereof) shall be based on the London p.m. fix of gold as at each applicable delivery date. The Manager shall send each calculation to the Participants as at each such delivery date and P▇▇▇▇▇▇▇ shall have 10 days to dispute the calculation. If the other Participant shall not dispute such calculation within the said 10 day period, the other Participant shall be deemed to have accepted the one applicable calculation. If the other Participant shall dispute such calculation, the matter shall be referred to arbitration in accordance with the provisions of section 19.9. Any extra expenditure incurred in the taking in kind or separate disposition by any Participant of its proportionate share of Products shall be borne by such Participant. Nothing in this Agreement shall be construed as providing, directly or indirectly, for any joint or cooperative marketing or selling of Products or permitting the processing of Products of any parties other than the Participants at any processing facilities constructed by the Participants pursuant to this Agreement. The Manager shall give the Participants notice at least 10 days in advance of the delivery date upon which their respective share of Products will be available.

Proceeds of Production. Proceeds of production shall be distributed, or if a Participant elects to take in kind or separately dispose of its share of all Products, Richmont shall be entitled to 70% and P▇▇▇▇▇▇▇▇ to 30% of all proceeds of production or all Products, as the case may be, in each case, net of all costs (i.e. net cash flow) until Richmont has recovered all its initial expenditures pursuant to section 5.2 or 5.6 as the case may be, after which time, each of Richmont and P▇▇▇▇▇▇▇▇ shall be entitled to their share of Products based on their respective Participating Interests. Calculations as to the amount recouped by Richmont on account of its initial maximum $10 million expenditures (or such lesser amount pursuant to section 5.6 hereof) shall be based on the London p.m. fix of gold as at each applicable delivery date. The Manager shall send each calculation to the Participants as at each such delivery date and P▇▇▇▇▇▇▇▇ shall have 10 days to dispute the calculation. If the other Participant shall not dispute such calculation within the said 10 day period, the other Participant shall be deemed to have accepted the one applicable calculation. If the other Participant shall dispute such calculation, the matter shall be referred to arbitration in accordance with the provisions of section 19.9. Any extra expenditure incurred in the taking in kind or separate disposition by any Participant of its proportionate share of Products shall be borne by such Participant. Nothing in this Agreement shall be construed as providing, directly or indirectly, for any joint or cooperative marketing or selling of Products or permitting the processing of Products of any parties other than the Participants at any processing facilities constructed by the Participants pursuant to this Agreement. The Manager shall give the Participants notice at least 10 days in advance of the delivery date upon which their respective share of Products will be available.