REVERSIONARY WORKING INTEREST Sample Clauses

REVERSIONARY WORKING INTEREST. The Company will assign to MorMeg an additional working interest (the “Reversionary Working Interest”) at the end of the term of this Agreement per the terms below. The Reversionary Working Interest will be between 0.0% and 5.0% (8/8ths) and will be calculated based on the cumulative Capital Expenditures that the Company invests in the Project during the term of this Agreement. The Reversionary Working Interest will not exceed 5.0% (8/8ths) (the “Max Amount”) under any circumstance. (i) The Reversionary Working Interest shall be calculated at the end of the term of this Agreement as follows: The Max Amount shall be reduced 0.1% for every $100,000 of Capital Expenditures the Company invests in the Black Oaks project (the “Reduction Amount”). The Reversionary Working Interest shall equal the Max Amount minus the Reduction Amount. Per this equation, the Reversionary Working Interest will equal 0.0% if the Company’s cumulative sum of Capital Expenditures during the term of this Agreement is equal to or exceeds $5 million. No additional working interest will be assigned to MorMeg if the Reversionary Working Interest is equal to 0.0%. (ii) Solely for purposes of illustrating the foregoing by example, assume that the Company invests $3 million of Capital Expenditures in the Project during the term of this Agreement. At the end of the term of this Agreement, the Reversionary Working Interest shall be calculated as follows: $3 million CAPEX/$100,000 = 30; 30 x 0.10% working interest = 3.0%. The Reversionary Working Interest shall equal 2.0% in this example. 5.0% (Max Amount) minus 3.0% (Reduction Amount) = 2.0% Reversionary Working Interest assigned to MorMeg).
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Related to REVERSIONARY WORKING INTEREST

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