Common use of Initial Operations Clause in Contracts

Initial Operations. All Net Cash Flow, Net Proceeds and Federal Income Tax Items as they relate to Initial Operations shall be shared by or charged: (a) 99% to the Venturers, other than the Managing Venturer, except to the extent that the Managing Venturer holds Units; and (b) 1% to the Managing Venturer. Each Venturer (or other Holder of Record), other than the Managing Venturer, except to the extent the Managing Venturer holds Units, shall share Net Cash Flow, Net Proceeds and Federal Income Tax Items attributable to Initial Operations and allocated to the Venturers in the proportion that such Venturer’s Units bear to the total Units of all Venturers.