Common use of Successor Managing Partner Clause in Contracts

Successor Managing Partner. A. (i) If the Managing Partner is Removed or withdraws and a successor Managing Partner is to be admitted to the Production Partnership, the departing Managing Partner shall not withdraw or be Removed until a successor Managing Partner has been admitted to the Production Partnership pursuant to Article Ten of this Agreement. (ii) In the event the Managing Partner withdraws or is Removed by the Limited Partnership and a successor Managing Partner is to be admitted, the incoming Managing Partner and the departing Managing Partner shall, by mutual agreement, select an independent petroleum consultant to value the departing Managing Partner's Interest in the Production Partnership. The incoming Managing Partner, or the Production Partnership, shall have the option to purchase at least 20% of the Interest of the departing Managing Partner for the value determined by the independent appraisal. The departing Managing Partner's Interest in the Production Partnership shall be transferred to the successor Managing Partner, and the successor Managing Partner shall assign to the departing Managing Partner a portion of Production Partnership Income, costs and Distributable Cash as and when such items are allocated or distributed, as the case may be, by the Production Partnership equal to the percentage interest of the departing Managing Partner in the Production Partnership prior to withdrawal or Removal, less the portion purchased by the successor Managing Partner or the Production Partnership.