Common use of PRODUCTION PROGRAMS Clause in Contracts

PRODUCTION PROGRAMS. 9.1 If the Operator determines that the economic potential of any part of the Property warrants the preparation of a Feasibility Report the Operator will prepare a Program in accordance with section 8 contemplating the preparation of a Feasibility Report. The Operator will forthwith deliver to the Management Committee any internal or draft report or reports on the economics of Commercial Production and on completion of the Feasibility Report pursuant to such Program the Operator shall forthwith deliver to the Participants a Feasibility Report together with a Production Recommendation. If in the opinion of the Management Committee it is warranted based on the conclusions reached in the Feasibility Report (a “Production Decision”), the Operator shall prepare a Production Program in respect to such part of the Property which shall include at least the following: (a) a description of that part of the Property to be covered by the proposed mine; (b) the estimated recoverable reserves of minerals and the estimated composition and content thereof; (c) the costs and time estimate for permitting and the proposed procedure for development, mining and production; (d) results of ore amenability tests (if any); (e) the nature and extent of the Facilities proposed to be acquired which may include mill facilities, if the size, extent and location of the ore body makes such mill facilities feasible, in which event the study shall also include a preliminary design for such mill; (f) the total costs, including capital budget, which are reasonably required to obtain permitting for and to purchase, construct and install all structures, machinery and equipment required for the proposed mine, including a Schedule of timing of such requirements, and an estimate of the operating expenses and capital expenditures to be shared by the Participants in proportion to their respective Interests for each operating year during the projected life of the mine; (g) all environmental, socio-economic and heritage baseline impact studies and costs; (h) the period in which it is proposed the Property shall be brought to Commercial Production; (i) such other data and information as are reasonably necessary to substantiate the existence of an ore deposit of sufficient size and grade to justify development of a mine, taking into account all relevant business, tax and other economic considerations; and (j) working capital requirements for the initial four month operation as a mine or such longer period as may be reasonably justified in the circumstances. 9.2 Within six months of the delivery to the Participants of a Production Program and Feasibility Report delivered pursuant to subsection 9.1, each Participant shall give written notice to the Operator stating whether it elects to contribute its Cost Share of the Production Program. Failure to give such notice within such six month period shall be deemed to be an election not to contribute to such Production Program and the provisions of subsection 9.6 shall apply. If both Participants elect to contribute their respective Cost Shares of the Production Program the Operator shall implement the Production Program. The Operator will not proceed with any Production Program which is not fully funded pursuant to subsections 9.2 or 9.6. 9.3 An election to fund a Production Program shall make a Participant liable to pay its Cost Share of: (a) all of the Production Program Costs actually incurred under or pursuant to such Production Program, including Production Program Overruns up to but not exceeding 10% of estimated Production Program Costs, (b) Operating Costs and any other costs associated with establishing and operating the Property as a mine at such time as the liability is incurred by the Operator; and (c) any debts, liabilities or obligations arising from operations hereunder in respect of the Property, except financing costs incurred by the other Participant in connection with such other Participants’ contributions to the Production Program. 9.4 Commencing 30 days after having elected to fund a Production Program which is proceeded with, each Participant shall, within 30 days after being requested in writing to do so by the Operator, pay such amount of Production Program Costs incurred or to be incurred under or pursuant to such Production Program as the Operator may require, but the Operator shall not require payment of any funds more than one month in advance of the period during which the same are to be expended. 9.5 If it appears that Production Program Costs will exceed by greater than 10% those estimated under a Production Program, the Operator shall immediately give written notice to the Participants outlining the nature and extent of the Production Program Overruns. If such Production Program Overruns are accepted by the Participants then, within 30 days after the receipt of a written request from the Operator, each Participant shall pay to the Operator its Cost Share of such Production Program Overruns. If any Participant does not accept such Production Program Overruns, or fails to pay the same, the Operator shall be entitled to either curtail the Production Program, or may elect to bear the Production Program Overruns, in which event it will be entitled to recoup such amount together with interest at the Prime Rate plus three percent pursuant to Section 18. 9.6 If a Participant elects or is deemed to have elected not to contribute its Cost Share of a Production Program pursuant to subsection 9.2, such Participant will be deemed to have lost its right to contribute to the Production Program and the other Participant will have the right to contribute all Production Program Costs to be incurred under or pursuant to the Production Program and the Operator will proceed with the Production Program and the Participant’s Interest that did not contribute shall be immediately converted to a Net Profits Interest and it shall cease to be a Participant. 9.7 If a Participant: (a) at any time fails to pay such amount of Production Program Costs as is requested by the Operator in accordance with subsection 9.4; or (b) at any time fails to pay such amount of Production Program Overruns as was accepted by such Participant in accordance with subsection 9.5, the Operator may give written notice to such Participant demanding payment, and if such Participant has not paid such amount within 30 days after receipt of such notice, such Participant shall be deemed to be in default under subsection 9.4 or 9.5 and have lost its right to contribute to the Production Program in respect of the Property the remaining Participant shall have the right to contribute all Production Program Costs to be incurred under or pursuant to the Production Program in respect of the Property and the Operator will proceed with the Production Program and the Participant’s Interest that did not contribute shall be immediately converted to a Net Profits Interest and it shall cease to be a Participant.

PRODUCTION PROGRAMS. 9.1 10.1 If the Operator determines that the economic potential of any part of the Property warrants the preparation of a Feasibility Report Report, the Operator will prepare present a Program in accordance with section 8 Part 9 contemplating the preparation of a Feasibility Report. The . 10.2 Operator will forthwith deliver to the Management Committee any internal or draft report or reports on the economics of Commercial Production and on completion of the Feasibility Report pursuant to such Program the Program, Operator shall forthwith will deliver to the Participants a Feasibility Report together with a Production Recommendation. If and if in the opinion of the Management Committee Operator it is warranted based on the conclusions reached in the Feasibility Report (a “Production Decision”)Report, the Operator shall prepare a Production Program in respect to such part of the Property which shall will include at least the following: (a) a description of that part of the Property to be covered by the proposed mine;, (b) the estimated recoverable reserves of minerals and the estimated composition and content thereof;, (c) the costs and time estimate for permitting and the proposed procedure for development, mining and production;, (d) results of ore amenability tests test (if any);, (e) the nature and extent of the Facilities proposed to be acquired which may include mill facilities, if the size, extent and location of the ore body makes such mill facilities feasible, in which event the study shall will also include a preliminary design for such mill;, (f) the total costs, including capital budget, which are reasonably required to obtain permitting for and to purchase, construct and install all structures, machinery and equipment required for the proposed mine, including a Schedule schedule of timing of such requirements, and an estimate of the operating expenses and capital expenditures to be shared by the Participants in proportion to their respective Interests for each operating year during the projected life of the mine;, (g) all environmental, socio-economic and heritage baseline impact studies and costs;, (h) the period in which it is proposed the Property shall will be brought to Commercial Production;, (i) such other data and information as are reasonably necessary to substantiate the existence of an ore deposit of sufficient size and grade to justify development of a mine, taking into account all relevant business, tax and other economic considerations; consideration, and (j) working capital requirements for the initial four six (6) month operation operations as a mine or such longer period as may be reasonably justified in the circumstances. 9.2 10.3 So long as it has not lost its right to contribute to Programs and to Production Programs, a Participant may at any time request Operator to present a Program to the Management Committee contemplating the preparation of a Feasibility Report. 10.4 Upon completion of a Feasibility Report, a Production Program will be presented to the Management Committee if, in the opinion of Operator, it is warranted based on the conclusions reached in the Feasibility Report. 10.5 If the Participant who did not contribute to the preparation of the Feasibility Report and the Production Program based on the Feasibility Report elects pursuant to §9.3 to participate in a Production Program based on the Feasibility Report, the Participant who did not contribute will reimburse the other an amount in respect of the cost of the Feasibility Report equal to such Participant’s Cost Share before taking the cost of the Feasibility Report into account together with interest from the date contributed at a per annum rate of the Prime Rate plus 2% per year. 10.6 Within six months of thirty (30) days after the delivery to the Participants of a Production Program and Feasibility Report delivered Report, pursuant to subsection 9.1either §9.3 or §9.5, each Participant shall will give written notice to the Operator stating whether it elects to contribute its Cost Share of the Production Program. . 10.7 Failure to give such notice within such six month thirty (30) day period shall will be deemed to be an election not to contribute to such Production Program and the provisions of subsection 9.6 shall §9.5 will apply. . 10.8 If both all Participants elect to contribute their respective Cost Shares of the Production Program the Program, Operator shall will implement the Production Program. The . 10.9 Operator will not proceed with any Production Program which is not fully funded pursuant to subsections 9.2 or 9.6subscribed. 9.3 10.10 An election to fund a Production Program shall will make a Participant liable to pay its Cost Share of: (a) all of the Production Program Costs actually incurred under or pursuant to such Production Program, including Production Program Overruns up to but not exceeding 10% of estimated Production Program Costs, (b) Operating Costs and any other costs associated with establishing and operating the Property as a mine at such time as the liability is incurred by the Operator; and (c) any debts, liabilities or obligations arising from operations hereunder in respect of the Propertyhereunder, except financing costs incurred by the other Participant in connection with such other Participants’ contributions to the Production Program. 9.4 10.11 Commencing 30 thirty (30) days after having elected to fund a Production Program which is proceeded with, each Participant shallwill, within 30 thirty (30) days after being requested in writing to do so by the Operator, pay such amount of Production Program Costs incurred or to be incurred under or pursuant to such Production Program as the Operator may require, but the Operator shall will not require payment of any funds more than one (1) month in advance of the period during which the same they are to be expended. 9.5 10.12 If it appears that Production Program Costs will exceed by greater more than 1030% those estimated under a Production Program, the Operator shall will immediately give written notice to the Participants outlining the nature and extent of the Production Program Overruns. . 10.13 If such Production Program Overruns are accepted by the Participants then, within 30 thirty (30) days after the receipt of a written request from the Operator, each Participant shall will pay to the Operator its Cost Share of such Production Program Overruns. . 10.14 If any Participant does not accept such Production Program Overruns, or fails to pay the same, the Operator shall any other Participant will be entitled to either curtail pay the Production ProgramCost Share of such Participant. 10.15 If a Participant pays such Cost Share, or may elect to bear the Production Program Overruns, in which event it will be entitled to recoup such amount together with interest at the Prime Rate plus three percent pursuant to Section 18§14.3. 9.6 10.16 If a Participant elects or is deemed Participant: (a) at any time fails to have elected not to contribute its Cost Share pay such amount of a Production Program pursuant Costs as is requested by the Operator in accordance with §9.9, or (b) at any time fails to subsection 9.2pay such amount of Production Program Overruns as was accepted by such Participant in accordance with §9.12, Operator may give written notice to such Participant demanding payment, and if such Participant has not paid such amount within thirty (30) days after receipt of such notice, such Participant will be deemed to be in default under §9.9 or §9.12 and have lost its right to contribute to the Production Program and the other Participant will have the right to contribute all Production Program Costs to be incurred under or pursuant to the Production Program and the Operator will proceed with the Production Program and the Participant’s Interest that did not contribute shall Participants’ respective Interests will thereafter be immediately converted to a Net Profits Interest and it shall cease to be a Participant. 9.7 If a Participant: (a) at any time fails to pay such amount of Production Program Costs as is requested by the Operator adjusted in accordance with subsection 9.4; or (b) at any time fails to pay such amount of Production Program Overruns as was accepted by such Participant in accordance with subsection 9.5, the Operator may give written notice to such Participant demanding payment, and if such Participant has not paid such amount within 30 days after receipt of such notice, such Participant shall be deemed to be in default under subsection 9.4 or 9.5 and have lost its right to contribute to the Production Program in respect of the Property the remaining Participant shall have the right to contribute all Production Program Costs to be incurred under or pursuant to the Production Program in respect of the Property and the Operator will proceed with the Production Program and the Participant’s Interest that did not contribute shall be immediately converted to a Net Profits Interest and it shall cease to be a Participant§5.5.

PRODUCTION PROGRAMS. 9.1 10.1 If the Operator determines that the economic potential of any part of the Property warrants the preparation of a Feasibility Report Report, the Operator will prepare present a Program in accordance with section 8 Part 9 contemplating the preparation of a Feasibility Report. The . 10.2 Operator will forthwith deliver to the Management Committee any internal or draft report or reports on the economics of Commercial Production and on completion of the Feasibility Report pursuant to such Program the Program, Operator shall forthwith will deliver to the Participants a Feasibility Report together with a Production Recommendation. If and if in the opinion of the Management Committee Operator it is warranted based on the conclusions reached in the Feasibility Report (a “Production Decision”)Report, the Operator shall prepare a Production Program in respect to such part of the Property which shall will include at least the following: (a) a description of that part of the Property to be covered by the proposed mine;, (b) the estimated recoverable reserves of minerals and the estimated composition and content thereof;, (c) the costs and time estimate for permitting and the proposed procedure for development, mining and production;, (d) results of ore amenability tests test (if any);, (e) the nature and extent of the Facilities proposed to be acquired which may include mill facilities, if the size, extent and location of the ore body makes such mill facilities feasible, in which event the study shall will also include a preliminary design for such mill;, (f) the total costs, including capital budget, which are reasonably required to obtain permitting for and to purchase, construct and install all structures, machinery and equipment required for the proposed mine, including a Schedule schedule of timing of such requirements, and an estimate of the operating expenses and capital expenditures to be shared by the Participants in proportion to their respective Interests for each operating year during the projected life of the mine;, (g) all environmental, socio-economic and heritage baseline impact studies and costs;, (h) the period in which it is proposed the Property shall will be brought to Commercial Production;, (i) such other data and information as are reasonably necessary to substantiate the existence of an ore deposit of sufficient size and grade to justify development of a mine, taking into account all relevant business, tax and other economic considerations; consideration, and (j) working capital requirements for the initial four six (6) month operation operations as a mine or such longer period as may be reasonably justified in the circumstances. 9.2 10.3 So long as it has not lost its right to contribute to Programs and to Production Programs, a Participant may at any time request Operator to present a Program contemplating the preparation of a Feasibility Report. 10.4 Upon completion of a Feasibility Report, a Production Program will be presented to Participants if, in the opinion of Operator, it is warranted based on the conclusions reached in the Feasibility Report. 10.5 If the Participant who did not contribute to the preparation of the Feasibility Report and the Production Program elects pursuant to Section 9.3 to participate in a Production Program based on the Feasibility Report prepared by another Participant, the Participant who did not contribute will reimburse the other an amount in respect of the cost of the Feasibility Report equal to such Participant’s Cost Share before taking the cost of the Feasibility Report into account together with interest from the date contributed at a per annum rate of the Prime Rate plus 2% per year. 10.6 Within six months of thirty (30) days after the delivery to the Participants of a Production Program and Feasibility Report delivered Report,pursuant to subsection 9.1either Section 9.3 or Section 9.5, each Participant shall will give written notice to the Operator stating whether it elects to contribute its Cost Share of the Production Program. . 10.7 Failure to give such notice within such six month thirty (30) day period shall will be deemed to be an election not to contribute to such Production Program and the provisions of subsection 9.6 shall Section 9.5 will apply. . 10.8 If both all Participants elect to contribute their respective Cost Shares of the Production Program the Program, Operator shall will implement the Production Program. The . 10.9 Operator will not proceed with any Production Program which is not fully funded pursuant to subsections 9.2 or 9.6subscribed. 9.3 10.10 An election to fund a Production Program shall will make a Participant liable to pay its Cost Share of: (a) all of the Production Program Costs actually incurred under or pursuant to such Production Program, including Production Program Overruns up to but not exceeding 10% of estimated Production Program Costs, (b) Operating Costs and any other costs associated with establishing and operating the Property as a mine at such time as the liability is incurred by the Operator; and (c) any debts, liabilities or obligations arising from operations hereunder in respect of the Propertyhereunder, except financing costs incurred by the other Participant in connection with such other Participants’ contributions to the Production Program. 9.4 10.11 Commencing 30 thirty (30) days after having elected to fund a Production Program which is proceeded with, each Participant shallwill, within 30 thirty (30) days after being requested in writing to do so by the Operator, pay such amount of Production Program Costs incurred or to be incurred under or pursuant to such Production Program as the Operator may require, but the Operator shall will not require payment of any funds more than one (1) month in advance of the period during which the same they are to be expended. 9.5 10.12 If it appears that Production Program Costs will exceed by greater more than 1030% those estimated under a Production Program, the Operator shall will immediately give written notice to the Participants outlining the nature and extent of the Production Program Overruns. . 10.13 If such Production Program Overruns are accepted by the Participants then, within 30 thirty (30) days after the receipt of a written request from the Operator, each Participant shall will pay to the Operator its Cost Share of such Production Program Overruns. . 10.14 If any Participant does not accept such Production Program Overruns, or fails to pay the same, the Operator shall any other Participant will be entitled to either curtail pay the Production ProgramCost Share of such Participant. 10.15 If a Participant pays such Cost Share, or may elect to bear the Production Program Overruns, in which event it will be entitled to recoup such amount together with interest at the Prime Rate plus three percent pursuant to Section 1814.3. 9.6 10.16 If a Participant elects or is deemed Participant: (a) at any time fails to have elected not to contribute its Cost Share pay such amount of a Production Program pursuant Costs as is requested by the Operator in accordance with Section 9.9, or (b) at any time fails to subsection 9.2pay such amount of Production Program Overruns as was accepted by such Participant in accordance with Section 9.12, Operator may give written notice to such Participant demanding payment, and if such Participant has not paid such amount within thirty (30) days after receipt of such notice, such Participant will be deemed to be in default under Section 9.9 or Section 9.12 and have lost its right to contribute to the Production Program and the other Participant will have the right to contribute all Production Program Costs to be incurred under or pursuant to the Production Program and the Operator will proceed with the Production Program and the Participant’s Interest that did not contribute shall Participants’ respective Interests will thereafter be immediately converted to a Net Profits Interest and it shall cease to be a Participant. 9.7 If a Participant: (a) at any time fails to pay such amount of Production Program Costs as is requested by the Operator adjusted in accordance with subsection 9.4; or (b) at any time fails to pay such amount of Production Program Overruns as was accepted by such Participant in accordance with subsection 9.5, the Operator may give written notice to such Participant demanding payment, and if such Participant has not paid such amount within 30 days after receipt of such notice, such Participant shall be deemed to be in default under subsection 9.4 or 9.5 and have lost its right to contribute to the Production Program in respect of the Property the remaining Participant shall have the right to contribute all Production Program Costs to be incurred under or pursuant to the Production Program in respect of the Property and the Operator will proceed with the Production Program and the Participant’s Interest that did not contribute shall be immediately converted to a Net Profits Interest and it shall cease to be a ParticipantSection 5.5.

PRODUCTION PROGRAMS. 9.1 10.1 If the Operator determines that the economic potential of any part of the Property warrants the preparation of a Feasibility Report Report, the Operator will prepare present a Program in accordance with section 8 Part 9 contemplating the preparation of a Feasibility Report. The . 10.2 Operator will forthwith deliver to the Management Committee any internal or draft report or reports on the economics of Commercial Production and on completion of the Feasibility Report pursuant to such Program the Program, Operator shall forthwith will deliver to the Participants a Feasibility Report together with a Production Recommendation. If and if in the opinion of the Management Committee Operator it is warranted based on the conclusions reached in the Feasibility Report (a “Production Decision”)Report, the Operator shall prepare a Production Program in respect to such part of the Property which shall will include at least the following: (a) a description of that part of the Property to be covered by the proposed mine;, (b) the estimated recoverable reserves of minerals and the estimated composition and content thereof;, (c) the costs and time estimate for permitting and the proposed procedure for development, mining and production;, (d) results of ore amenability tests test (if any);, (e) the nature and extent of the Facilities proposed to be acquired which may include mill facilities, if the size, extent and location of the ore body makes such mill facilities feasible, in which event the study shall will also include a preliminary design for such mill;, (f) the total costs, including capital budget, which are reasonably required to obtain permitting for and to purchase, construct and install all structures, machinery and equipment required for the proposed mine, including a Schedule schedule of timing of such requirements, and an estimate of the operating expenses and capital expenditures to be shared by the Participants in proportion to their respective Interests for each operating year during the projected life of the mine;, (g) all environmental, socio-economic and heritage baseline impact studies and costs;, (h) the period in which it is proposed the Property shall will be brought to Commercial Production;, (i) such other data and information as are reasonably necessary to substantiate the existence of an ore deposit of sufficient size and grade to justify development of a mine, taking into account all relevant business, tax and other economic considerations; consideration, and (j) working capital requirements for the initial four six (6) month operation operations as a mine or such longer period as may be reasonably justified in the circumstances. 9.2 10.3 So long as it has not lost its right to contribute to Programs and to Production Programs, a Participant may at any time request Operator to present a Program contemplating the preparation of a Feasibility Report. 10.4 Upon completion of a Feasibility Report, a Production Program will be presented to Participants if, in the opinion of Operator, it is warranted based on the conclusions reached in the Feasibility Report. 10.5 If the Participant who did not contribute to the preparation of the Feasibility Report and the Production Program elects pursuant to Section 9.3 to participate in a Production Program based on the Feasibility Report prepared by another Participant, the Participant who did not contribute will reimburse the other an amount in respect of the cost of the Feasibility Report equal to such Participant’s Cost Share before taking the cost of the Feasibility Report into account together with interest from the date contributed at a per annum rate of the Prime Rate plus 2% per year. 10.6 Within six months of thirty (30) days after the delivery to the Participants of a Production Program and Feasibility Report delivered Report,pursuant to subsection 9.1either Section 9.3 or Section 9.5, each Participant shall will give written notice to the Operator stating whether it elects to contribute its Cost Share of the Production Program. . 10.7 Failure to give such notice within such six month thirty (30) day period shall will be deemed to be an election not to contribute to such Production Program and the provisions of subsection 9.6 shall Section 9.5 will apply. . 10.8 If both all Participants elect to contribute their respective Cost Shares of the Production Program the Program, Operator shall will implement the Production Program. The . 10.9 Operator will not proceed with any Production Program which is not fully funded pursuant to subsections 9.2 or 9.6subscribed. 9.3 10.10 An election to fund a Production Program shall will make a Participant liable to pay its Cost Share of: (a) all of the Production Program Costs actually incurred under or pursuant to such Production Program, including Production Program Overruns up to but not exceeding 10% of estimated Production Program Costs, (b) Operating Costs and any other costs associated with establishing and operating the Property as a mine at such time as the liability is incurred by the Operator; and (c) any debts, liabilities or obligations arising from operations hereunder in respect of the Propertyhereunder, except financing costs incurred by the other Participant in connection with such other Participants’ contributions to the Production Program. 9.4 10.11 Commencing 30 thirty (30) days after having elected to fund a Production Program which is proceeded with, each Participant shallwill, within 30 thirty (30) days after being requested in writing to do so by the Operator, pay such amount of Production Program Costs incurred or to be incurred under or pursuant to such Production Program as the Operator may require, but the Operator shall will not require payment of any funds more than one (1) month in advance of the period during which the same they are to be expended. 9.5 10.12 If it appears that Production Program Costs will exceed by greater more than 1030% those estimated under a Production Program, the Operator shall will immediately give written notice to the Participants outlining the nature and extent of the Production Program Overruns. . 10.13 If such Production Program Overruns are accepted by the Participants then, within 30 thirty (30) days after the receipt of a written request from the Operator, each Participant shall will pay to the Operator its Cost Share of such Production Program Overruns. . 10.14 If any Participant does not accept such Production Program Overruns, or fails to pay the same, the Operator shall any other Participant will be entitled to either curtail pay the Production ProgramCost Share of such Participant. 10.15 If a Participant pays such Cost Share, or may elect to bear the Production Program Overruns, in which event it will be entitled to recoup such amount together with interest at the Prime Rate plus three percent pursuant to Section 1814.3. 9.6 10.16 If a Participant elects or is deemed Participant: (a) at any time fails to have elected not to contribute its Cost Share pay such amount of a Production Program pursuant Costs as is requested by the Operator in accordance with Section 9.9, or (b) at any time fails to subsection 9.2pay such amount of Production Program Overruns as was accepted by such Participant in accordance with Section 9.12, Operator may give written notice to such Participant demanding payment, and if such Participant has not paid such amount within thirty (30) days after receipt of such notice, such Participant will be deemed to be in default under Section 9.9 or Section 9.12 and have lost its right to contribute to the Production Program and the other Participant will have the right to contribute all Production Program Costs to be incurred under or pursuant to the Production Program and the Operator will proceed with the Production Program and the Participant’s Interest that did not contribute shall Participants’ respective Interests will thereafter be immediately converted to a Net Profits Interest and it shall cease to be a Participant. 9.7 If a Participant: (a) at any time fails to pay such amount of Production Program Costs as is requested by the Operator adjusted in accordance with subsection 9.4; or (b) at any time fails to pay such amount of Production Program Overruns as was accepted by such Participant in accordance with subsection 9.5, the Operator may give written notice to such Participant demanding payment, and if such Participant has not paid such amount within 30 days after receipt of such notice, such Participant shall be deemed to be in default under subsection 9.4 or 9.5 and have lost its right to contribute to the Production Program in respect of the Property the remaining Participant shall have the right to contribute all Production Program Costs to be incurred under or pursuant to the Production Program in respect of the Property and the Operator will proceed with the Production Program and the Participant’s Interest that did not contribute shall be immediately converted to a Net Profits Interest and it shall cease to be a ParticipantSection 5.5.