Payment of Net Profits Interest. Except as provided in paragraph 3, the Company hereby agrees 10 pay TO White 5% of Net Profits (the "Net Profit Interest") for all ores and minerals mined or otherwise recovered and removed from the Company's mining claims, (as such are presently constituted), that are milled in the Mill and thereafter sold by or for the account of the Company after processing, smelting or refining ("Ores and Minerals"). "Net Profits" means the amount actually received by the Company from the sale of Ores and Minerals less, but only to the extent actually incurred and born by the Company (and its subsidiaries, if any): (1) charges and costs, if any, for mining,[1] extraction, milling, [2] treatment, ----------------- [1] Mining costs shall mean costs and expenses accrued or incurred in accordance with generally accepted accounting principals by the Company in exploring for, developing, mining, extracting, removing, and transporting to the Mill Ores and Minerals. Such costs and expenses shall include, without limitation, those incurred for labor, machinery operation, fuel explosives and other materials, exploration drilling, developmental or ore delineation drilling, a reasonable allowance for depreciation and amortization of mining equipment and machinery (regardless processing, or other beneficiation, including but not limited to crushing and screening; (2) charges and costs, if any, for exploration and development; (3) charges and costs, if any. for transportation to places where Ores and Minerals are milled, treated, processed or otherwise beneficiated, smelted, refined and sold; (4) charges, costs and penalties, if any, for smelting, refining and marketing; (5) operating costs of the Company, including general and administrative expenses, [3] relative to and not otherwise covered by the foregoing described items; (6) depreciation; (7) sales, use, gross receipts, severance and other taxes, if any, payable with respect to severance, production, removal, sale or disposition of Ores and Minerals, but excluding any taxes on net income; and (8) real and personal property taxes. The Net Profits Interest shall be paid by the Company to White on or before the 45th day after the last day of the Company's fiscal quarter in which the Company receives payment for sale of the Ores and Minerals. The Company agrees to keep full, true, and accurate records and books of account of all transactions connected with its business and particularly with respect to its calculation of the Net Pr...
Payment of Net Profits Interest. Under this Conveyance of the Net Profits Interest, the Company will calculate and pay, for each quarterly period commencing the first day of December, March, June, September, an amount (the "NPI Payment") equal to the NPI Percent of the Net Profits from the Property for the period. Payment of the NPI Payment shall be mailed on or before 30 days after the end of the period. "
Payment of Net Profits Interest. (a) The Borrower hereby grants, conveys, sells and assigns to Payee and covenants and agrees to pay unto Payee the product of (a) Distributable Cash Flow multiplied by (b) the Applicable NPI (such product, the “Net Profits Interest”). The calculation of Distributable Cash Flow shall commence on the Loan Repayment Date and the Borrower shall pay to Payee the Net Profits Interest commencing with the first Payment Period.
Payment of Net Profits Interest. (a) In the event of a Sale, Owner shall pay to Xxxx on the date of the closing of such Sale an amount equal to the Net Profits from such Sale multiplied by the Net Profits Interest of Xxxx, unless such Sale is made (subject to Xxxx’x approval as hereinafter specified), partially or wholly, by means of the taking back by Owner of a purchase money note, in which case Xxxx’x Net Profits Interest shall apply to all sums, including interest, received and shall be paid as received. In such event Owner shall endorse, execute and deliver to Xxxx such documents and instruments, including, without limitation, the purchase money note (endorsed as reasonably required by Xxxx) and a collateral transfer of note and lien, as Xxxx may reasonably require, to evidence and secure its Net Profits Interest in regard to such purchase money note and otherwise. It is understood and agreed that a sale of the Property by Owner which will involve the issuance of a purchase money note must first be approved in writing by Xxxx in its sole discretion. Nothing herein contained will limit or otherwise affect any of Xxxx’x rights under the Mortgages, as hereinafter defined, securing the obligations of Owner hereunder.
Payment of Net Profits Interest. Payments of Net Profits Interest shall commence in the calendar quarter following the calendar quarter in which Net Profits Interest are first realized, and shall be made forty-five (45) days following the end of each calendar quarter during which Net Profits Interest are realized, and shall be subject to adjustment, if required, at the end of each calendar year. The recipient of such Net Profits Interest payments shall have the right to audit such payments following receipt of each payment by giving notice to the remaining Party and by conducting such audit in accordance with the terms agreed to by the Parties. Costs of such an audit shall be borne by the holder of the Net Profits Interest described herein.
