ENFORCE26086

• Permit No: C1984067
• IBM Index Class Name: Enforcement
• Doc Date: 11/7/1988
• Doc Name: OPTION & JOINT VENTURE AGREEMENT
• Violation No.: CV0000000
• Media Type: D
• Archive: No

... yr
(c) "Costs" means ell items of outlay end expense whatsoever, both direct and
indirect, with respect to the Property or a Mine (save and except the Prior Exploration
Costs) and recorded by the Operator after the date hereof in accordance with the
Accounting Procedure end, without Limiting the generality of the foregoing, more
particularly:
(1) "Capital Costs" means:
(A) all costs of preparing and equipping a Mine for commercial
. production which are recorded prior to the Completion Date,
•• including, without limiting the generality of the foregoing, all
amounts invested in development headings, plants and
concentrator installations, and all infrastructure, plan, housing,
airport, roads and other facilities whatsoever;
(B) sll costs of maintaining efficient production at a Mine which
ere recorded after the Completion Date, including, without
limiting the generality of the foregoing, exploration,
development, and acquisition of fixed assets; and,
(C) for purposes only of calculating net proceeds of production,
ell items o[ outlay end expense of obtaining financing end
providing security therefor.
(2) "Exploration Costs" means all Costs recorded during the Exploration
Period, including, without limiting the generality of the foregoing,
such reasonable charge for the Operator's administrative services as
is determined by the Operator and is competitive according to the
prevailing industry standards;
(3) "Mine Costs" means Capital Costs end Operating Costs.
(4) "Operating Costs" means all Costs which do not fall into any other
class o[ Costs enumerated herein including, without limiting the
generality of the foregoing:
(A) payroll Costs including all applicable fringe benefits and other
direct payroll loading;
(B) all other Costs of or incidental to Mining Operations;
(C) sl] Costs resulting from any slowdown, suspension or
termination of Mining Operations at a Mine, whether voluntary
or involuntary, and howsoever arising;
(D) sll prepaid expenses and costs of supplies and repair parts;
(E) ell taxes (other than income taxes), royalties or other charges
or levies provided [or pursuant to any law or legal obligation
imposed by any government if paid by the Operator;
(F) ell royalties and other payments required to be paid or made
to any third parties under or pursuant to the terms of any
2