Common use of MorMeg After Payout ORRI Assignment Clause in Contracts

MorMeg After Payout ORRI Assignment. The Parties agree that MorMeg shall be assigned a 5.0% (8/8ths) Overriding Royalty Interest in Phase II once the Company receives 100% return of (i) the amount of Phase II Capital Expenditures actually made by the company, and (ii) the Phase II Purchase Consideration (“Phase II Payout”). Phase II Payout shall be defined as the point in time, following the expiration of the Phase II Reversionary Interest Term, that pre-tax cash flow net to the Company from Phase II totals the sum of (i) cumulative Capital Expenditures spent on Phase II, plus (ii) the Phase II Purchase Consideration. The Company shall calculate the outstanding payout balance on a monthly basis upon expiration of the Phase II Reversionary Interest Term.

MorMeg After Payout ORRI Assignment. The Parties agree that MorMeg shall be assigned a 5.0% (8/8ths) Overriding Royalty Interest in Phase II III once the Company receives a 100% return of (i) the amount of Phase II III Capital Expenditures actually made by the companyCompany, and (ii) the Phase II III Purchase Consideration (“Phase II III Payout”). Phase II III Payout shall be defined as the point in time, following the expiration of the Phase II III Reversionary Interest Term, that pre-tax cash flow net to the Company from Phase II III totals the sum of (i) cumulative Capital Expenditures spent on Phase IIIII, plus (ii) the Phase II III Purchase Consideration. The Company shall calculate the outstanding payout balance on a monthly basis upon expiration of the Phase II III Reversionary Interest Term.