Work Programs and Budgets. 3.01 The Operator will prepare an annual work program (the “Programs”) to be carried out on each of the Company’s Properties within 30 days of the execution of this Agreement and present it to the Company for approval. The Program shall contain detailed descriptions of each item in the Program and a timeline during which the work is projected to be carried out. Programs may be segregated into phases with subsequent phases requiring approval based on the results of the previous phase. Said Programs shall be accompanied with a budget (the “Budget”) detailing the cost of each item in the Budget and setting out the estimated dates for advances to be made by the Company. Said Budget shall include details of the portion of the Operator’s administration costs required to carrying out the Programs. 3.02 The Operator shall, 90 days prior the completion of any annual Program, prepare a new annual Program with a Budget for the upcoming annual period and submit it to the Company for approval. Each new annual Program and Budget shall include the balance of any prior Program and Budget expected to be incomplete at the end of its annual period. 3.03 Each annual Program may be modified from time to time based upon results attained from monthly reports as the work progresses, subject to the agreement of the parties hereto. 3.04 The Company shall have 30 days from the receipt of any Program and Budget to approve or modify the Program and Budget. Any changes to Programs and Budgets will be made by the Operator within 15 days and presented to the Company for final approval which the Company shall deliver within 10 days of receipt. 3.05 The Operator and the Company shall jointly ensure that the professional consultants provided by the Company or as contracted by the Operator shall provide a written log and photographic record of exploration activities and progress while any Program is in progress and a full independent geological and or engineering report as would be required by the Company for presentation to investors, regulatory agencies or such other parties that the Company deems appropriate. The Company shall be solely responsible to approve the party selected to write such reports. 3.06 Following approval of the respective Programs and Budgets, the Company agrees to provide the Operator with sufficient funding to cover planned expenses 60 days in advance of actual expenditures. 3.07 Should an unforeseen shortfall in funding occur, or should there be an emergency situation with regard to the Properties, the Company shall provide notice of any such shortfall to the Operator with no less than 30 days notice of the subsequent funding commitment, upon which the parties hereby agree that the Operator shall have explicit authority to employ as necessary any such unused project funds to terminate all exploration activities, including management and labor contracts, office personnel, vendor and equipment agreements, and provide for the repatriation of any foreign consultants, and find suitable storage for any idled equipment and vehicles, until such time as funding is sufficient to resume exploration activities. 3.08 By written notice given to Operator on or before November 1 of each year that this Agreement is in effect, the Company shall have the right to have an independent firm of certified public accountants audit the expenditures reported under Programs and Budgets for the preceding 12 month period. Such audit shall be concluded as promptly as possible.
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Work Programs and Budgets. 3.01 The Operator will prepare an annual work program (the “Programs”) to be carried out on each of the Company’s Properties within 30 days of the execution of this Agreement and present it to the Company for approval. The Program shall contain detailed descriptions of each item in the Program and a timeline during which the work is projected to be carried out. Programs may be segregated into phases with subsequent phases requiring approval based on the results of the previous phase. Said Programs shall be accompanied with a budget (the “Budget”) detailing the cost of each item in the Budget and setting out the estimated dates for advances to be made by the Company. Said Budget shall include details of the portion of the Operator’s administration costs required to carrying out the Programs.
3.02 The Operator shall, 90 days prior the completion of any annual Program, prepare a new annual Program with a Budget for the upcoming annual period and submit it to the Company for approval. Each new annual Program and Budget shall include the balance of any prior Program and Budget expected to be incomplete at the end of its annual period.
3.03 Each annual Program may be modified from time to time based upon results attained from monthly reports as the work progresses, subject to the agreement of the parties hereto.
3.04 The Company shall have 30 days from the receipt of any Program and Budget to approve or modify the Program and Budget. Any changes to Programs and Budgets will be made by the Operator within 15 days and presented to the Company for final approval which the Company shall deliver within 10 days of receipt.
3.05 The Operator and the Company shall jointly ensure that the professional consultants provided by the Company or as contracted by the Operator shall provide a written log and photographic record of exploration activities and progress while any Program is in progress and a full independent geological and or engineering report as would be required by the Company for presentation to investors, regulatory agencies or such other parties that the Company deems appropriate. The Company shall be solely responsible to approve the party selected to write such reports.
3.06 Following approval of the respective Programs and Budgets, the Company agrees to provide the Operator with sufficient funding to cover planned expenses 60 days in advance of actual expenditures.
3.07 3.09 Should an unforeseen shortfall in funding occur, or should there be an emergency situation with regard to the Properties, the Company shall provide notice of any such shortfall to the Operator with no less than 30 days notice of the subsequent funding commitment, upon which the parties hereby agree that the Operator shall have explicit authority to employ as necessary any such unused project funds to terminate all exploration activities, including management and labor contracts, office personnel, vendor and equipment agreements, and provide for the repatriation of any foreign consultants, and find suitable storage for any idled equipment and vehicles, until such time as funding is sufficient to resume exploration activities.
3.08 3.10 By written notice given to Operator on or before November 1 of each year that this Agreement is in effect, the Company shall have the right to have an independent firm of certified public accountants audit the expenditures reported under Programs and Budgets for the preceding 12 month period. Such audit shall be concluded as promptly as possible.
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