CNE Initial Commitment Clause Samples

CNE Initial Commitment. (a) on or before ▇▇▇▇▇ ▇, ▇▇▇▇ ▇▇▇ shall pay to Canadian Superior the sum of Two Million Five Hundred Thousand (US$2,500,000.00) Dollars US to be credited to CNE’s one third share of the costs incurred to date by Canadian Superior in respect of the Production Sharing Contract; (b) on the earlier of; (i) April 30, 2006; or (ii) within 14 business days of CNE having successfully raised a minimum of Twelve Million (US $12,000,000.00) Dollars US by way of the Rights Issuance CNE shall pay to Canadian Superior the balance of CNE’s one-third share of the costs incurred by Canadian Superior to that date in respect of the Production Sharing Contract; (c) CNE shall, not less than 10 business days prior to the scheduled spud date of the first Exploration Well to be drilled pursuant to the Work Programme (as defined in the Production Sharing Contract), pay to Canadian Superior one third of the anticipated dry hole costs of such first Exploration Well, provided that if drilling operations arc not commenced within 30 days of such payment, such monies shall be returned to CNE forthwith. For greater clarity, the Parties acknowledge that in calculating such anticipated dry hole costs, no amounts in respect of anticipated testing or completing costs of such well shall be included; and (d) CNE further commits to participate for one third of the balance of the costs directly attributable to the Work Programme and the second and third Exploration ▇▇▇▇▇ drilled pursuant thereto. (e) During the course of the Work Programme Canadian Superior shall consult on a regular basis (no less often than monthly) with CNE concerning progress and fulfillment of the Work Programme and Canadian Superior’s activities as Operator in respect thereof.