Common use of Work Commitment Clause in Contracts

Work Commitment. In consideration of the granting of the Lease to the Lessee, Lessee shall be obligated to expend the amounts (the “Work Commitment Expenditures”) list below on exploration activities by the end of each Lease year as set forth below. Federal and County Mining Claim Maintenance Fees and staking and filing fees are not expenses that Lessee may expense towards the Work Commitment. Lease Year Amount First Lease Year $5,000.00 Second Lease Year $25,000.00 Third Lease Year $50,000.00 Fourth Lease Year $75,000.00 Fifth Lease Year and thereafter $100,000.00 All work expenditures made by Lessee during any Lease Year in excess of the work commitment expenditures required for such Lease Year shall be credited, as far as they will go, against work commitment requirements for any subsequent Lease Year. For any work commitment expenditure not fulfilled with the above work commitment time frames, the difference between the actual expenditure and the minimum work commitment expenditures shall be paid to Owner at a rate of 75% of the remaining expenditure in US dollars as the fulfillment of lessee’s obligation and lessee shall be entitled to keep (and not expend) 25% of such remaining expenditure.

Work Commitment. In consideration of the granting of the Lease to the Lessee, Lessee shall be obligated to expend the amounts (the “Work Commitment Expenditures”) list below on exploration activities by the end of each Lease year as set forth below. Federal and County Mining Claim Maintenance Fees and staking and filing fees are not expenses that Lessee may expense towards the Work Commitment. Lease Year Amount First Lease Year $5,000.00 $ 10,000.00 Second Lease Year $$ 25,000.00 Third Lease Year $$ 50,000.00 Fourth Lease Year $$ 75,000.00 Fifth Lease Year and thereafter $$ 100,000.00 All work expenditures made by Lessee during any Lease Year in excess of the work commitment expenditures required for such Lease Year shall be credited, as far as they will go, against work commitment requirements for any subsequent Lease Year. For any work commitment expenditure not fulfilled with the above work commitment time frames, the difference between the actual expenditure and the minimum work commitment expenditures shall be paid to Owner at a rate of 7550% of the remaining expenditure in US dollars as the fulfillment of lesseeLessee’s obligation and lessee Lessee shall be entitled to keep (and not expend) 2550% of such remaining expenditure up to and including the Fourth Lease Year; and in the Fifth Year and, henceforth thereafter, Lessee shall pay 100% each year to Owner for the amount of the difference between actual expenditure and the minimum required work commitment expenditure, for that applicable year.