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GENERAL41756
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Last modified
8/24/2016 8:10:03 PM
Creation date
11/23/2007 11:23:06 AM
Metadata
Fields
Template:
DRMS Permit Index
Permit No
M1993030
IBM Index Class Name
General Documents
Doc Date
7/1/2004
Doc Name
Mining Agreement
From
John O. Buckner
To
DMG
Media Type
D
Archive
No
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The 200 hours is a minimum amount of time. It is at the discretion but in the best interests of the <br />POSP to invest additional time as necessary beyond 200 hours to prepare all Group 1 pockets and <br />premium pieces for sale. <br />26. Removals From Inventory. Before any material is priced and offered for sale, both the POFP <br />and the POSP will jointly examine all material. If either Party wishes to remove a specimen from <br />inventory for any reason from any given Group 1 or Group 2 pockets, then each Party will have an <br />opportunity to select one piece from the given pocket. Each Party may not remove additional <br />pieces except by mutual agreement. Pieces removed from inventory may not be offered for sale <br />for a period of at least 3 years from the date of pocket discovery. After this date, either Party may <br />dispose of these pieces in the manner in which they see fit. No royalty is payable in this case. <br />27. Ri t to Market and Sell. The POSP has exclusive right and responsibility to sell and market <br />the production in accordance with the conditions listed in the following paragraphs. <br />The POSP agrees to offer Group I and Group 2 material at a minimum of four shows or other <br />sates events attended by the POSP each year after initial production commences. At the <br />discretion of the POSF, material may also be consigned to other dealers for additional shows to <br />increase sales, especially the Tucson show. <br />Group 1 and Group 2 material wi14 represent half or more of the like inventory offered by POSP at <br />any sales event. This recognizes that the POSP has similar material from other sources to offer far <br />sale. The intent is for the POSP to make an equitable or greater effort to market the POFP <br />material. <br />The POSP will have exclusive right to set prices on all material being offered for sale. The POSP <br />will also have exclusive right Yo adjust prices upwards or downwards and to offer appropriate <br />discoums and incentives to competitively create sales for the benefit of both Parties. <br />All preparation, cleaning, repairing, labeling, boxing, shipping, show fees, and other sales <br />expenses v~ill be paid by the POSP and will not be deducted from the gross selling price.. <br />All royalties will be paid based on gross sales prices except that consignment expenses will be <br />deducted from gross sales prices. h: the case of consigned sales, the POFP and the POSP agree to <br />limit consignment expenses to no more than 25%. <br />Any sales figures and inventory numbers wilt be disclosed to the POFP at his request. The POFP <br />agrees to keep alt sales, buyers, and inventory figures strictly confidential. <br />28. Obligation to Produce. b4inerals mined under this Agreement will continue to be mined and <br />produced at the set rate and offered for sale in conjunction with the aforementioned marketing and <br />sates plan for as long as the POFP is living or until it is mutually agreed that the Properties are <br />exhausted to the point production efforts and resulting sales of production becomes marginal. If <br />after the five (5) mechanized mineral recovery days aze expended and no Group 1 and/or two or <br />fewer Group 2 pockets are encountered, this will be considered evidence as to mineral exhaustion. <br />If offer a second attempt, based on new targets and exploratory work, no Group l and/or two or <br />fewer Group 2 pockets are encountered, the parties may agree to mutually terminate this <br />agreement. Both parties will meet in May of each year to determine whether or not production <br />should commence. If probable evidence remains that Group 1 or Group 2 pockets exist and are <br />S <br />
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