After Payout Clause Samples
The "After Payout" clause defines the rights and obligations of the parties following the payment of a claim or settlement under an agreement. Typically, this clause outlines what actions must be taken after funds are disbursed, such as the release of further liability, the return of property, or the cessation of certain obligations. For example, it may specify that once payment is made, the recipient waives any further claims related to the incident. The core function of this clause is to provide finality and clarity, ensuring that all parties understand their responsibilities and that the matter is conclusively resolved after payment.
After Payout. At that point in time when one hundred percent (100%) of the development and operating costs expended to establish and maintain production from the Overriding Royalty Depth and/or the Overriding Royalty Surface Acreage are recovered by the party paying such costs, then the Overriding Royalty Interest determined under Section 5.01(a) above shall automatically be adjusted to an Overriding Royalty Interest equal to (i) twelve and one-half percent (12.5%) of 8/8ths, (ii) multiplied by the Fixed Percentage, then (iii) multiplied by the percentage working interest of Operating Partnership in that Lease. That is to say, if it is assumed as in the example above that Operating Partnership owns sixty percent (60%) of the working interest which is fully subject to Pension Partnership's Net Profits Interest, and if it is assumed that the Fixed Percentage is fifty percent (50%), then Pension Partnership's Overriding Royalty Interest converts to three and three-quarters percent (3.75%), i.e., twelve and one-half percent (12.5%) of 8/8ths multiplied by fifty percent (50%) (the Fixed Percentage) multiplied by sixty percent (60%) (the Operating Partnership's working interest). The resultant Overriding Royalty Interest calculated under (a) or (b) above shall be reduced or increased proportionately to reflect any sliding scale or reversionary overriding royalty, working interest or similar arrangements contained in the Leases or Subject Interests covering the Overriding Royalty Depth or Overriding Royalty Surface Acreage or contained in any other document as to which such Leases or Subject Interests are made subject as of the date of acquisition.
After Payout. Upon Payout, the Sharing Ratio of TransCoastal shall be increased to 50% and the Sharing Ratio of Core shall be decreased to 50%.
After Payout. After Payout, the matters requiring approval of the Working Interest Owners shall include the following:
After Payout. (a) For each taxable year (or portion thereof) after Payout items of income, gain, loss and deduction of the Partnership shall be allocated to the Partners as follows:
(i) If there is net income (i.e., if items of income and gain exceed items of deduction and loss) such net income and any items of credit shall be allocated to the Partners in accordance with their Percentage Interests.
(ii) If there is net loss (i.e., if items of deduction and loss exceed items of income and gain) it shall be allocated to the Partners in accordance with their Percentage Interests.
(b) Distributions shall be made at the discretion of the General Partner from any source of cash available to the Partnership, subject to reserves for future liabilities and obligations in such amounts that the General Partner deems prudent. Subject to the specific terms and provisions of Outstanding LP Units (which may govern priority and amount of distributions as among the different classes of LP Units), distributions with respect to LP Units shall be made according to the Percentage Interests of LP Unit holders as of the Record Date established by the General Partner. Distributions to the General Partner shall be made according to its Percentage Interest.
After Payout. ATLAS and SUMMIT shall separately pay Royalties and Petroleum Profits Tax on the share of Hydrocarbons actually received by each Party.
After Payout. Seventy-nine percent (79%) to the Investor Partners and Unit Holders (and ratably among them based upon the number of Units held) and twenty-one percent (21%) to the Managing General Partner.
After Payout. (i) Lessor shall have the option of continuing to receive the royalty provided in Article 4.1(a) above or four-tenths (4/10) of the Net Profits.
(ii) Lessor shall evidence its election whether to exercise such option as to each Payout Unit by written notice to Lessee during the thirty-day period immediately following receipt from Lessor of a notice of Payout. The failure of Lessor to provide Lessee with written notice of its election during the thirty-day period shall constitute an election by Lessor to retain its one-tenth (1/10) royalty interest in the relevant Payout Unit. If Lessor elects to convert its royalty for any Payout Unit to four-tenths (4/10) of the Net Profits, the royalty provided in Article 4.1(a) above shall cease and terminate, as to such Payout Unit and such conversion shall become effective, as of the first day of the month following the month in which Payout occurred.
(iii) If the calculation of Net Profits results in a negative number (“Net Losses”) during any royalty period for any Payout Unit as to which Lessor has elected a royalty of four-tenths (4/10) of Net Profits, royalty for said Payout Unit shall be zero for said royalty period. Net Losses shall not be netted with royalties or Net Profits from other Payout Units and Lessor shall not be required to share said Net Losses in any way except that Lessor may accumulate said Net Losses with Net Profits from the same Payout Unit for subsequent royalty periods for the purpose of calculating royalties payable with respect to said subsequent royalty periods.
After Payout. Cost Oil Tax Oil Profit Oil -------- ------- ---------- Technical Partner 0% 0% 30% -------- ------- ---------- Owner/Operator 0% 0% 40% -------- ------- ---------- Government 0% 30% 0% -------- ------- ----------