Common use of Operation by an Affiliate Clause in Contracts

Operation by an Affiliate. The Fund, by action of the Manager, may engage an Affiliate of the Manager to provide development, construction, operating, management, purchasing, planning and administrative services for any or all Oil and Gas Projects operated by the Fund. The Affiliate of the Manager under this Section 12.5 shall act under the supervision and direction of the Manager and does not have the authority to bind the Fund or act directly in its name except as authorized by the Manager or an officer of the Fund. The Manager under this Section 12.5 shall be reimbursed for all costs incurred by it as provided in Section 9.3(c) but shall not receive any compensation in excess of its costs. The Fund may enter into an Operation Agreement or other agreements to implement this Section 12.5. The Manager under this Section 12.5 shall not be compensated or reimbursed for any services related to the administration of the Fund as a whole, to relations with Investors or the offering of Shares or to the identification, acquisition or disposition of Oil and Gas Projects.