Common use of MorMeg Working Interest and Carried Interests Clause in Contracts

MorMeg Working Interest and Carried Interests. MorMeg shall retain a 10% working interest in Phase III and the Company shall carry MorMeg’s 10% working interest (“Phase II Carried Interest”) on all Capital Expenditures on Phase III. The Phase III Carried Interest shall terminate at the earlier of (A) cumulative Capital Expenditures on Phase III totals $2.0 million, or (B) the Parties mutually agree to cease development of Phase III. MorMeg shall pay its pro rata share (10%) of Capital Expenditures upon termination of the Phase III Carried Interest. MorMeg shall pay its pro rata share (10%) of lease operating expenses in Phase III.

MorMeg Working Interest and Carried Interests. MorMeg shall retain a 10% working interest in Phase III I and the Company shall carry pay for MorMeg’s 10% working interest share of Capital Expenditures associated with Phase I (“Phase II I Carried Interest”) on all ). The Company’s obligation to pay MorMeg’s share of Capital Expenditures on Phase III. The Phase III Carried Interest shall terminate at upon the earlier of (A) cumulative Capital Expenditures on associated with Phase III totals I total $2.0 7.5 million, or (B) the Parties mutually agree to cease development of Phase III. I. MorMeg shall pay its pro rata share (10%) of Capital Expenditures upon termination associated with Phase I at the time which the Company pays a total of the Phase III Carried Interest$7.5 million in Capital Expenditures. MorMeg shall pay its pro rata share (10%) of lease operating expenses in Phase III.I.

MorMeg Working Interest and Carried Interests. MorMeg shall retain a 10% working interest in Phase III II and the Company shall carry MorMeg’s 10% working interest (“Phase II Carried Interest”) on all Capital Expenditures on Phase IIIII. The Phase III II Carried Interest shall terminate at the earlier of (A) cumulative Capital Expenditures on Phase III totals II total $2.0 3.0 million, or (B) the Parties mutually agree to cease development of Phase IIIII. MorMeg shall pay its pro rata share (10%) of Capital Expenditures upon termination of the Phase III II Carried Interest. MorMeg shall pay its pro rata share (10%) of lease operating expenses in Phase IIIII.