Exploration Budgets Sample Clauses

Exploration Budgets. (a) Continental shall prepare annual exploration programs and budgets (“Continental BVI Co Program”) and submit them to the Board for approval forty-five (45) days after the end of each exploration program. (b) In the event that Continental fails to submit a Continental BVI Co Program in accordance with clause (a) upon expiry of the First Expenditure Period (or if Continental exercises the Second Option then upon expiry of the Second Expenditure Period), ABC shall be entitled to submit an annual exploration program and budget (“ABC BVI Co Program”) for the following year to the Board for approval and Continental undertakes that it will approve the ABC BVI Co Program if it is in accordance with sound mining and applicable industry standards and practices in China. (c) If Continental does not elect to fund the ABC BVI Co Program or elects to fund less than USD1,000,000 or its pro rata share of the ABC BVI Co Program if that is less than USD1,000,000, then ABC shall be entitled to implement its proposed exploration according to the ABC BVI Co Program and ABC may elect to assume the operatorship, management and administration of the ABC BVI Co Program. (d) In the event that Continental submits a Continental BVI Co Program in any period during which ABC has assumed the operatorship, management and administration under an ABC BVI Co Program, the operatorship, management and administration of the annual exploration program and budget under the Continental BVI Co Program shall revert to Continental so long as Continental holds 50% or more of the shares of BVI Co. (e) The provisions of (c) will apply mutatis mutandis to ABC and the provisions of (d) will apply mutatis mutandis to Continental if ABC’s shareholding rises above 50%.