Initial Issuance Proceeds Sample Clauses

Initial Issuance Proceeds. The Company shall contribute the Initial Issuance Proceeds to Rosehill Operating in exchange for a number of Series B preferred units representing membership interests in Rosehill Operating equal to the number of shares of Series B Preferred Stock issued at Initial Closing. Rosehill Operating shall use such proceeds exclusively to (i) partially fund the Acquisition, (ii) pay the first four (4) cash dividends on the Series B preferred units, which cash shall be used to pay the first four (4) Cash Dividends (as defined in the Series B Certificate of Designations) to the Purchasers in accordance with the Series B Certificate of Designations, which such amounts shall be retained at the Company and used for no other purpose, (iii) pay applicable transaction fees and expenses relating to or arising out of this Agreement (including the Purchasers’ Transaction Expense Amount in respect of the Initial Closing) and (iv) fund drilling and infrastructure development expenses with respect to the Properties of the Company and its Subsidiaries.