Common use of Pre-Agreement Joint Expenditures Clause in Contracts

Pre-Agreement Joint Expenditures. It is recognized that various of the Parties have incurred expenditures for the joint benefit prior to the execution of this Agreement. Such pre-Agreement expenditures are itemized on Exhibit C attached hereto. Operator shall invoice the Parties for their proportionate shares of such expenditures as provided in the Accounting Procedure and shall reimburse the Parties for the expenditures listed on Exhibit C upon receipt of funds therefor from the Parties. Any past due amounts (other than amounts being contested in good faith) shall accrue interest at the rate of fifteen percent (15%) per annum from the due date until paid. Failure by a Party to pay its share of any such invoices shall render such Party a Defaulting Party for purposes of this Agreement.