Production Payment Clause Samples

Production Payment. 3.1.1 Buyer shall grant, transfer, assign and convey to Seller a "Production Payment" with regard to Buyer's oil production from or attributable to the Segregated Lease (or any extension, renewal or replacement of the Segregated Lease acquired hereafter by Buyer or a parent, subsidiary or affiliate of Buyer). Said Production Payment shall be conveyed by an instrument in form and substance similar either to Exhibit "F-3" or Exhibit "F-4" hereto, as applicable pursuant to Section 3.2 or 3.3, and is to be calculated on a calendar year basis, in accordance with Exhibits "C" and "D" attached hereto. Buyer shall pay such Production Payment to Seller on or before a date thirty (30) days after the end of the calendar year to which such payment applies, or on or before a date sixty (60) days after the discontinuation of Production Payments as provided in Section 3.2 hereof.

Production Payment. On or prior to the fifth (5th) Business Day after the commencement of commercial production of the Mining Concessions, Purchaser shall pay US$2,500,000 in cash to Vendor (the “Production Payment”).

Production Payment. (a) At any time after the Closing if Purchaser acquires (either from its own acquisition or through assignment from Seller pursuant to Section 8.8) good title (determined in Purchaser’s sole discretion) to any Additional Interest located in Section 12, T. 17 N., R. 3 W., then Purchaser shall notify Seller in writing of the date on which such acquisition was completed (the “Acquisition Date”). (b) After the Acquisition Date, Purchaser shall pay Seller an amount each calendar month equal to 3 percent of the Net Revenue received by Purchaser from production for such month from any new well drilled in such Section 12 on which actual drilling operations are commenced after the Acquisition Date (but excluding any workovers or recompletions on ▇▇▇▇▇ existing prior to the Acquisition Date), until payments to Seller under this Section 8.9 equal $350,000. Amounts due hereunder shall be paid not later than 45 days after the last day of each calendar month for which payments are due. (c) For purposes of this Section 8.9, “Net Revenue” shall mean all revenues from oil, gas and other hydrocarbons produced, saved and sold from any new well on Section 12, after deducting therefrom all operating and marketing costs, landowner royalties, overriding royalties, any other burdens on production, and all taxes on such production.

Production Payment. The price that Candeo shall pay to Can-Cal per ton of Material (“Production Payment”) removed by Candeo (or its assign or assigns) from the Property shall be equal to the greater of: (i) fifteen US dollars (US$15.00) per ton; and (ii) the Net Sales Margins per ton removed from the Property by Candeo (or its assign or assigns) realized as follows: (a) during the first year of mining, 35% of the Net Sales Margins; and (b) thereafter, 50% of the Net Sales Margins. Candeo (or its assign or assigns) shall pay such Production Payment to Can-Cal from time to time no later than 120 days after the subject Material has been removed from the Property.

Production Payment. 2 Section 2.1 Amount and Term of Production Payment.......................2 Section 2.2 Application of Production Payment...........................3 Section 2.3 Non-Cost-Bearing Interest...................................3 Section 2.4

Production Payment. In addition to the Cash Payment, the Purchase Price Warrant and the PDM Purchase Price Shares, if and when Purchaser commences production in respect of the Mining Assets owned by the Bolivian Purchase Entity, the Sellers (or any of them) will be entitled to receive an amount (the “Production Payment”) equal to 40% of the net profits from the sale of minerals produced from the Mining Assets held by the Bolivian Purchase Entity, up to a maximum amount equal to the sum of (A) US$15,000,000.00 and (B) 2,000,000 ordinary shares in PDM valued atUS$8.00 per share(the “PDM Production Payment Shares”). The calculation of the Production Payment and the terms of payment of the Production Payment by Purchaser to Sellers (or any of them) will be set out in the Definitive Agreements. The Production Payment initially will be paid 50% in cash and 50% in PDM Production Payment Shares. Once the cash portion or the PDM Production Payment Shares portion of the Production Payment has been exhausted, the Production Payment will be paid only in PDM Production Payment Shares or cash, as applicable, until the entire amount of the Production Payment has been paid. In addition, PDM will grant to the Sellers (or any of them) who or which receive PDM Production Payment Shares a warrant (the “Production Payment Warrant”) to purchase the number of PDM Production Payment Shares issued as part of the Production Payment, up to a maximum of 2,000,000 ordinary shares of PDM valued at US$8.50 per share (the “Production Payment Warrant Shares”). Each Production Payment Warrant will have a term of three years from the date of issue. The PDM Production Payment Shares, the Production Payment Warrant and the Production Payment Warrant Shares will not be registered under the Securities Act, but will be issued to Sellers under one or more exemptions from registration under the Securities Act. Sellers will not distribute all or any portion of the PDM Production Payment Shares, the Production Payment Warrant or the Production Payment Warrant Shares to any other person or entity. The PDM Production Payment Shares, the Production Payment Warrant and the Production Payment Warrant Shares will be subject to certain resale restrictions, and the Definitive Agreements will set forth the resale restrictions in respect of the PDM Production Payment Shares, the Production Payment Warrant and the Production Payment Warrant Shares. Purchaser anticipates that the PDM Production Payment Shares and the Production Pa...

Production Payment. The Production Payment to be retained by Seller is expected to expire, when 73.7% of the original estimated recoverable reserves in place on the Effective Date attributable to the Leases have been produced.

Production Payment. If Buyer timely makes the Buyer Payment described in Section 3.1 above and performs the obligations described in Sections 4.1, 4.2 and 4.3 above, and, thereafter, whether prior to or after Payout, production of Petroleum Substances from the Subject Property exceeds 20 barrels of oil per day (and for purposes of this clause 6mcf of natural gas shall equal 1 barrel of oil) for a continuous period of no less than 30 days, then provided that Buyer has received a Title Opinion or Buyer is otherwise satisfied with title to the Subject Property, Buyer shall each month thereafter for a period of 12 months pay to Seller out of its net share of the proceeds from the sale of Petroleum Substances produced from the Subject Property a payment of $5,000 (for an aggregate payment obligation of $60,000). Each such payment shall be made by no later than the 25th day of the following month. The Buyer’s obligation for this production payment, and Seller’s reservation thereof, shall be set forth in the Term Assignment and in the Final Assignment, if made. For greater certainty, if the net revenues from the Subject Property are not sufficient to permit the $5,000 payment in any one month, the payment obligation for that month shall be suspended until the next month in which net revenues are sufficient to permit such $5,000 payment.

Production Payment. At and subject to Closing, all obligations of STMV and any other party relating to the Production Payment will have been fulfilled, paid in full, discharged, waived, terminated and released, and will no longer be in effect. Vendor is the sole owner of the entire Production Payment and has full and complete authority to terminate, release and discharge the Production Payment pursuant to §5.4 of this Agreement. Except for the Collateral Transfer of Production Payment described below in §4.3(d), no document has been executed and no agreement has been entered into that would transfer, assign, mortgage, pledge, modify or in any way effect the Production Payment. If, prior to or subsequent to Closing, the Purchaser requests that additional documents be executed to evidence the release, termination and discharge of the Production Payment, then Vendor and ERC each covenants and agrees to execute and deliver to Purchaser and/or use its reasonable best efforts to cause any third parties to execute and deliver to Purchaser such documents as may be requested by Purchaser to evidence the release, termination and discharge of the Production Payment.