Common use of Work Commitment Clause in Contracts

Work Commitment. Lessee shall expend for exploration and development work on the Property the following sums: Lease Year Minimum Work Commitment Amount First Lease Year $10,000.00 Second Lease Year $20,000.00 Third Lease Year $30,000.00 Fourth Lease Year $40,000.00 Fifth and each subsequent Lease Year until commercial production of Geothermal Resources on the Property $50,000.00 Qualified work commitment expenditures include all costs and expenses incurred by Lessee directly for the exploration for or the development of geothermal resources on the Property, including exploration drilling, development drilling, maintenance drilling and construction of production, processing and related facilities. All qualified work commitment expenditures incurred by Lessee in excess of the work commitment expenditures to be performed or incurred during any Lease Year shall be credited in Lessee's favour against Lessee's work commitment expenditure obligations for any subsequent Lease Year. If during any Lease Year Lessee has not fulfilled the work commitment expenditure obligation, Lessee shall have the right to pay to Landowner cash in lieu of the work shortfall to keep the lease in good standing, that is a cash sum equal to the difference between the work commitment expenditure obligation and Lessee's actual expenditures for the Lease Year. Lessee shall make such payment within 30 days after the end of the Lease Year during which Lessee has not completed the work commitment expenditure. If the lease is abandoned by the Lessee part way through the lease year, there is no obligation to pay cash in lieu of work not accomplished in that year.

Work Commitment. Lessee shall expend for exploration and development work on the Property the following sums: Lease Year Minimum Work Commitment Amount First Lease Year $10,000.00 Second Lease Year $20,000.00 10,000.00 Third Lease Year $30,000.00 20,000.00 Fourth Lease Year $40,000.00 20,000.00 Fifth and each subsequent Lease Year until commercial production of Geothermal Resources on the Property $50,000.00 40,000.00 Qualified work commitment expenditures include all costs and expenses incurred by Lessee directly for the exploration for or the development of geothermal resources on the Property, including exploration drilling, development drilling, maintenance drilling and construction of production, processing and related facilities. If during any Lease Year Lessee does not fulfill the work commitment expenditure obligation, Lessee shall pay to Landowner the sum equal to the difference between the work commitment expenditure obligation and Lessee’s actual expenditures for the Lease Year. Lessee shall make such payment within thirty (30) days after the end of the Lease Year during which Lessee has not completed the work commitment expenditure. All qualified work commitment expenditures incurred by Lessee in excess of the work commitment expenditures to be performed or incurred during any Lease Year shall be credited in Lessee's favour ’s favor against Lessee's ’s work commitment expenditure obligations for any subsequent Lease Year. If during any Lease Year Lessee has not fulfilled the work commitment expenditure obligation, Lessee shall have the right to pay to Landowner cash in lieu of the work shortfall to keep the lease in good standing, that is a cash sum equal to the difference between the work commitment expenditure obligation and Lessee's actual expenditures for the Lease Year. Lessee shall make such payment within 30 days after the end of the Lease Year during which Lessee has not completed the work commitment expenditure. If the lease is abandoned by the Lessee part way through the lease year, there is no obligation to pay cash in lieu of work not accomplished in that year.

Work Commitment. Lessee shall expend for exploration and development work on the Property the following sums: Lease Year Minimum Work Commitment Amount First Lease Year $10,000.00 Second Lease Year $20,000.00 Third Lease Year $30,000.00 50,000.00 Fourth Lease Year $40,000.00 50,000.00 Fifth and each subsequent Lease Year until commercial production of Geothermal Resources on the Property resources on the Property $50,000.00 100,000.00 Qualified work commitment expenditures include all costs and expenses incurred by Lessee directly for the exploration for or the development of geothermal resources on the Property, including exploration drilling, development drilling, maintenance drilling and construction of production, processing and related facilities. If during any Lease Year Lessee does not fulfill the work commitment expenditure obligation, Lessee shall pay to NLRC the sum equal to the difference between the work commitment expenditure obligation and Lessee's actual expenditures for the Lease Year. Lessee shall make such payment within thirty (30) days after the end of the Lease Year during which Lessee has not completed the work commitment expenditure. All qualified work commitment expenditures incurred by Lessee in excess of the work commitment expenditures to be performed or incurred during any Lease Year shall be credited in Lessee's favour favor against Lessee's work commitment expenditure obligations for any subsequent Lease Year. If during any Lease Year Lessee has not fulfilled the work commitment expenditure obligation, Lessee shall have the right to pay to Landowner cash in lieu of the work shortfall to keep the lease in good standing, that is a cash sum equal to the difference between the work commitment expenditure obligation and Lessee's actual expenditures for the Lease Year. Lessee shall make such payment within 30 days after the end of the Lease Year during which Lessee has not completed the work commitment expenditure. If the lease is abandoned by the Lessee part way through the lease year, there is no obligation to pay cash in lieu of work not accomplished in that year.