Common use of Funds to Replace Those of Non-Participating Venturers Clause in Contracts

Funds to Replace Those of Non-Participating Venturers. If less than 100% of the Venturers pay the Additional Assessments for Subsequent Operations, the Managing Venturer shall have the option, in the exercise of its sole and absolute discretion and subject to the provisions of Section 2.9.4 hereof, to: (a) Pay the Non-Participating Venturer(s)’ unpaid portion of such Additional Assessment and be entitled to receive the Non-Participating Venturer(s)’ allocable shares of Net Cash Flow, Net Proceeds, Federal Income Tax Items and Amount Realized attributable to such Subsequent Operations pursuant to Section 8.3.2 below; (b) Allow any or all Participating Venturers to pay the Non-Participating Venturer(s)’ unpaid portion of such Additional Assessment and therefore be entitled to receive the Non-Participating Venturer(s)’ allocable shares of Net Cash Flow, Net Proceeds, Amount Realized and Federal Income Tax Items attributable to such Subsequent Operations pursuant to Section 8.3.2 below; (c) Offer Units of the Subsequent Operation to persons (other than the Venturers), who shall, upon payment of such assessment, be deemed to be additional Venturers and Participating Venturers with respect to such Subsequent Operations; or (d) Abandon the Subsequent Operation for which such Additional Assessment was requested, refund the Additional Assessment proceeds previously paid by the Venturers and sell or Farmout the Prospect or portions thereof upon approval of the Venturers as provided herein.