Common use of Allocation of Expense and Revenues Clause in Contracts

Allocation of Expense and Revenues. After Closing occurs, appropriate adjustments shall be made between Ring and the Target Shareholders so that: (i) Ring will receive all proceeds from sales of hydrocarbons that are produced and saved from and after December 1, 2012, and any other revenues arising out of the ownership or operation of the Assets from and after December 1, 2012, net of all applicable production, severance, and similar taxes, and net of all costs and expenses that are incurred in the ownership or operation of the Assets from and after December 1, 2012, including, without limitation, all drilling costs, all capital expenditures, all overhead charges under applicable operating or other agreements (regardless of whether the Target Shareholders or an affiliate of the Target Shareholders serves as operator prior to the Closing), and (ii) the Sellers will receive all proceeds from sales of hydrocarbons that are produced and saved, through November 30, 2012 and any other revenues arising out of the ownership or operation of the Assets through November 30, 2012, net of all applicable production, severance taxes, and net of all costs and expenses that are incurred in the ownership or operation of the Assets through November 30, 2012.