Common use of Development Expenditures Clause in Contracts

Development Expenditures. Glamis shall provide all necessary funding for Expenditures for the Development and Construction of Mining and processing facilities at the Project after the Construction Release Date until the commencement of Commercial Production (the "Development Expenditures"). Following the Commencement of Commercial Production, Glamis shall receive eighty percent (80%) of Net Cash Flow (as defined and calculated in Section 4.3.2) from the Project until Glamis has received an amount (the "Reimbursement Amount") equal to all of the Development Expenditures incurred plus interest at LIBOR plus one and one-half percent (1 1/2%). The remaining twenty percent (20%) of Net Cash Flow shall be distributed to the Shareholders in proportion to their respective Ownership Interests. After Glamis receives the Reimbursement Amount, Net Cash Flow shall be divided according to the Shareholders' respective Ownership Interests as provided in Section 4.3.3. Following the Commencement of Commercial Production, each Shareholder will be responsible for its share of any further costs and expenses as provided in Section 4.3.