Common use of Overriding Royalty Interest Clause in Contracts

Overriding Royalty Interest. With respect to the App Energy H-33 well and the next three ▇▇▇▇▇ to be drilled thereafter pursuant to the Operating Agreement (provided, however, that if the App Energy H-34 well is further developed before three other ▇▇▇▇▇ are drilled, it shall be considered one of such next three ▇▇▇▇▇), the Company shall, within thirty (30) days of drilling each well, deliver to Maximilian with respect to such well a Conveyance of Overriding Royalty Interest in substantially the form attached hereto as Exhibit A (the “Override Agreement”). The overriding royalty interest shall be subject to a 50% reduction, as set forth in each Override Agreement, if the Daybreak Loan Payoff (as defined below) occurs on or prior to the Target Payoff Date (as defined below).

Overriding Royalty Interest. With respect to the App Energy H-33 well and the next three ▇▇▇▇▇ to be drilled thereafter pursuant to the Operating Agreement (provided, however, that if the App Energy H-34 well is further developed before three other ▇▇▇▇▇ are drilled, it shall be considered one of such next three ▇▇▇▇▇), the Company shall, within thirty (30) days of drilling each well, deliver to Maximilian the Lender with respect to such well a Conveyance of Overriding Royalty Interest in substantially the form attached hereto as Exhibit A (the “Override Agreement”). The overriding royalty interest shall be subject to a 50% reduction, as set forth in each Override Agreement, if the Daybreak Loan Payoff (as defined below) occurs on or prior to the Target Payoff Date (as defined below).