Common use of Conditional Sale Clause in Contracts

Conditional Sale. Seller is aware that Riata is currently in the process of undertaking a 144A Private Placement offering (the “Private Placement”). Closing shall be conditioned upon the closing of the Private Placement. Should the Private Placement fail to close, for any reason, Riata shall be under no obligation to close. Seller is currently not paying cash calls or JIBs for the Subject Interests. Similarly, Seller is not receiving revenue from the Subject Interests. Therefore, if the Private Placement does not close, then within 15 days of Riata notifying the Seller, Seller shall reimburse Riata for all accrued costs and expenses paid by Riata attributable to the Properties, and Riata shall reimburse Seller for all arrived income attributable to the Subject Interests.