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Production Payment Agreement
"I need a Production Payment Agreement for a gold mining operation in Western Australia, where the investor will provide $50M upfront in exchange for 5% of monthly production output, with the agreement to commence on March 1, 2025."
1. Parties: Identifies and defines all parties to the agreement
2. Background: Sets out the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Production Payment Rights: Details the rights granted regarding production payments, including calculation methods and timing
5. Payment Terms: Specifies payment amounts, schedules, and mechanisms
6. Security Provisions: Details any security arrangements securing the production payments
7. Representations and Warranties: Standard representations and specific production-related warranties
8. Covenants: Ongoing obligations of the parties
9. Events of Default: Circumstances constituting default and consequences
10. Governing Law and Jurisdiction: Specifies applicable law and dispute resolution forum
1. Assignment: Rights to transfer the agreement to third parties - include when parties want to specify transfer rights
2. Force Majeure: Provisions for unforeseeable circumstances - include when production might be affected by external events
3. Hedging Arrangements: Provisions regarding price hedging - include when price volatility protection is needed
4. Insurance: Required insurance coverage - include when specific insurance requirements exist
1. Production Asset Details: Details of the assets subject to production payments
2. Calculation Methodology: Detailed methodology for calculating production payments
3. Form of Reports: Templates for required production and payment reports
4. Security Documentation: Forms of security documents if applicable
5. Payment Procedures: Detailed payment mechanisms and processes
Authors
Additional Payment
Applicable Law
Available Production
Business Day
Calculation Period
Commercial Production
Commencement Date
Default Event
Default Interest Rate
Delivery Point
Effective Date
Encumbrance
Force Majeure Event
Governmental Authority
Initial Payment
Interest Period
Material Adverse Effect
Minimum Production Level
Operating Costs
Payment Account
Payment Date
Permitted Encumbrance
Production Assets
Production Payment
Production Payment Amount
Production Payment Period
Production Report
Project
Project Documents
Qualifying Production
Reference Price
Security Documents
Security Interest
Specified Product
Term
Transaction Documents
Unit of Production
Calculation of Production Payments
Payment Terms
Security Arrangements
Production Requirements
Monitoring Rights
Reporting Obligations
Representations and Warranties
Covenants
Events of Default
Remedies
Force Majeure
Confidentiality
Assignment and Transfer
Change of Control
Insurance
Environmental Compliance
Health and Safety
Record Keeping
Access Rights
Dispute Resolution
Notices
Amendment and Waiver
Severability
Entire Agreement
Third Party Rights
Counterparts
Governing Law
Jurisdiction
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