Common use of Work Commitment Clause in Contracts

Work Commitment. Lessee shall expend for exploration and development work on the Property the following sums: First Lease Year $10,000.00 Second Lease Year $20,000.00 Third Lease Year $30,000.00 Fourth Lease Year $40,000.00 Fifth and each subsequent Lease Year until commercial production of Geothermal Resources on the Property $50,000.00 Qualified work commitment expenditures include all costs and expenses incurred by Lessee directly for the exploration for or the development of geothermal resources on the Property, including exploration drilling, development drilling, maintenance drilling and construction of production, processing and related facilities. All qualified work commitment expenditures incurred by Lessee in excess of the work commitment expenditures to be performed or incurred during any Lease Year shall be credited in Lessee's favour against Lessee's work commitment expenditure obligations for any subsequent Lease Year. If during any Lease Year Lessee has not fulfilled the work commitment expenditure obligation, Lessee shall have the right to pay to Landowner cash in lieu of the work shortfall to keep the lease in good standing, that is a cash sum equal to the difference between the work commitment expenditure obligation and Lessee's actual expenditures for the Lease Year. Lessee shall make such payment within 30 days after the end of the Lease Year during which Lessee has not completed the work commitment expenditure. If the lease is abandoned by the Lessee part way through the lease year, there is no obligation to pay cash in lieu of work not accomplished in that year.

Work Commitment. Lessee shall expend for exploration and development work on the Property the following sums: First Lease Year $10,000.00 Second Lease Year $20,000.00 10,000.00 Third Lease Year $30,000.00 20,000.00 Fourth Lease Year $40,000.00 20,000.00 Fifth and each subsequent Lease Year until commercial production of Geothermal Resources on the Property $50,000.00 40,000.00 Qualified work commitment expenditures include all costs and expenses incurred by Lessee directly for the exploration for or the development of geothermal resources on the Property, including exploration drilling, development drilling, maintenance drilling and construction of production, processing and related facilities. If during any Lease Year Lessee does not fulfill the work commitment expenditure obligation, Lessee shall pay to Landowner the sum equal to the difference between the work commitment expenditure obligation and Lessee’s actual expenditures for the Lease Year. Lessee shall make such payment within thirty (30) days after the end of the Lease Year during which Lessee has not completed the work commitment expenditure. All qualified work commitment expenditures incurred by Lessee in excess of the work commitment expenditures to be performed or incurred during any Lease Year shall be credited in Lessee's favour ’s favor against Lessee's ’s work commitment expenditure obligations for any subsequent Lease Year. If during any Lease Year Lessee has not fulfilled the work commitment expenditure obligation, Lessee shall have the right to pay to Landowner cash in lieu of the work shortfall to keep the lease in good standing, that is a cash sum equal to the difference between the work commitment expenditure obligation and Lessee's actual expenditures for the Lease Year. Lessee shall make such payment within 30 days after the end of the Lease Year during which Lessee has not completed the work commitment expenditure. If the lease is abandoned by the Lessee part way through the lease year, there is no obligation to pay cash in lieu of work not accomplished in that year.

Work Commitment. Lessee shall expend for exploration and development work on the Property the following sums: First Lease Year $10,000.00 Second Lease Year $20,000.00 Third Lease Year $30,000.00 50,000.00 Fourth Lease Year $40,000.00 50,000.00 Fifth and each subsequent Lease Year until commercial production of Geothermal Resources on the Property resources on the Property $50,000.00 100,000.00 Qualified work commitment expenditures include all costs and expenses incurred by Lessee directly for the exploration for or the development of geothermal resources on the Property, including exploration drilling, development drilling, maintenance drilling and construction of production, processing and related facilities. If during any Lease Year Lessee does not fulfill the work commitment expenditure obligation, Lessee shall pay to NLRC the sum equal to the difference between the work commitment expenditure obligation and Lessee's actual expenditures for the Lease Year. Lessee shall make such payment within thirty (30) days after the end of the Lease Year during which Lessee has not completed the work commitment expenditure. All qualified work commitment expenditures incurred by Lessee in excess of the work commitment expenditures to be performed or incurred during any Lease Year shall be credited in Lessee's favour favor against Lessee's work commitment expenditure obligations for any subsequent Lease Year. If during any Lease Year Lessee has not fulfilled the work commitment expenditure obligation, Lessee shall have the right to pay to Landowner cash in lieu of the work shortfall to keep the lease in good standing, that is a cash sum equal to the difference between the work commitment expenditure obligation and Lessee's actual expenditures for the Lease Year. Lessee shall make such payment within 30 days after the end of the Lease Year during which Lessee has not completed the work commitment expenditure. If the lease is abandoned by the Lessee part way through the lease year, there is no obligation to pay cash in lieu of work not accomplished in that year.

Work Commitment. As a condition to the continued effectiveness of this Agreement, Lessee shall must expend during the term of this Agreement on or for the exploration and development work on of the Property the following sumssums described below. The work commitment expenditures may consist of expenses incurred as follows: geochemical, geological and geophysical surveys and sampling of the Property, salaries and wages spent directly on field related expense on the project , travel and lodging expenses, consultants' and contractors' fees, drilling, sample and assay costs, location, amendment and relocation of unpatented mining claims, and all other expenses reasonably incurred by Lessee to explore and develop the Property. Federal and County Mining Claim Maintenance Fees and staking and filing fees are not expenses that Lessee may expense towards the Work Commitment. Lessee shall deliver annually within 30 days of the effective anniversary date documentary evidence sufficient to prove the work commitment expenditures. The work commitment expenditures are as follows: First Lease Year $10,000.00 Second Lease Year $20,000.00 25,000.00 Third Lease Year $30,000.00 50,000.00 Fourth Lease Year $40,000.00 100,000.00 Fifth and each subsequent Lease Year until commercial production of Geothermal Resources on the Property and thereafter $50,000.00 Qualified 250,000.00 All work commitment expenditures include all costs and expenses incurred made by Lessee directly for the exploration for or the development of geothermal resources on the Property, including exploration drilling, development drilling, maintenance drilling and construction of production, processing and related facilities. All qualified work commitment expenditures incurred by Lessee during any Lease Year in excess of the work commitment expenditures to be performed or incurred during any required for such Lease Year shall be credited in Lessee's favour credited, as far as they will go, against Lessee's work commitment expenditure obligations requirements for any subsequent Lease Year. If during For any Lease Year Lessee has not fulfilled the work commitment expenditure obligationnot fulfilled with the above work commitment time frames, Lessee shall have the right to pay to Landowner cash in lieu of the work shortfall to keep the lease in good standing, that is a cash sum equal to the difference between the actual expenditure and the minimum work commitment expenditures shall be paid to Owner at a rate of 75% of the remaining expenditure in US dollars as the fulfillment of lessee’s obligation and Lessee's actual expenditures for the Lease Year. Lessee lessee shall make be entitled to keep (and not expend) 25% of such payment within 30 days after the end of the Lease Year during which Lessee has not completed the work commitment remaining expenditure. If the lease is abandoned by the Lessee part way through the lease year, there is no obligation to pay cash in lieu of work not accomplished in that year.