Common use of Minimum Number of Units Clause in Contracts

Minimum Number of Units. The minimum number of Units shall equal at least 40 Units, but in any event not less than that number of Units which provides the Partnership with cash subscription proceeds of $1,000,000, excluding the subscription discounts permitted under Section 3.03(a)(1). Pursuant to Section 3.03(b)(2), the Managing General Partner, its officers, directors, and Affiliates may purchase the number of Units required to satisfy the minimum subscription proceeds required under Section 3.03(c)(1) to the extent paid in cash and after the discounts permitted under Section 3.03(a)(1). If at the Offering Termination Date the minimum number of Units has not been received and accepted, then all monies deposited by subscribers shall be promptly returned to them. They shall receive interest earned on their subscription proceeds from the date the monies were deposited in escrow through the date of refund. The Partnership may break escrow and begin its drilling activities in the Managing General Partner's sole discretion on receipt of the minimum subscription proceeds. If a subscription is received before the distribution of a Supplement to the Private Placement Memorandum which describes the proposed prospects as discussed in "Terms of the Offering" and "Proposed Activities" in the Private Placement Memorandum, then the subscriber must reaffirm his subscription before his subscription is accepted or his subscription proceeds are included in the minimum subscription proceeds required to break escrow.