Option to Defer Production Royalty. The parties hereby agree that each calendar year, Xxxxxxxxx shall have the option to elect to defer payment (in whole or in part) of the ARP Entities’ share of the Production Royalty until the following year (the “Deferment Option”), including any amounts previously deferred by Xxxxxxxxx hereunder. Xxxxxxxxx shall provide notice to the ARP Entities of its intent to exercise the Deferment Option each year at least thirty (30) days prior to the commencement of the calendar year for which the option is being exercised and the amount of the Production Royalty being deferred. Notwithstanding anything to the contrary, the Parties agree that Xxxxxxxxx shall have been deemed to have exercised the Deferment Option with respect to the entirety of the Production Royalty for the current year. In the event that Xxxxxxxxx does not exercise the Deferment Option for a given year, than any amounts previously deferred shall be paid to the ARP Entities no later than April 1 of such year, and all other amounts owed to the ARP Entities shall be paid promptly when due thereafter.
Option to Defer Production Royalty. The Parties hereby agree that each calendar year, the Xxxxxxxxx Entities shall have the option to elect to defer payment (in whole or in part) of the Thoroughbred Entities’ share of the Production Royalty until the following year (the “Deferment Option”), including any amounts previously deferred by the Xxxxxxxxx Entities hereunder. The Xxxxxxxxx Entities shall provide notice to the Thoroughbred Entities of their intent to exercise the Deferment Option each year at least 30 days prior to the commencement of the calendar year for which the option is being exercised and shall, within 30 days following the end of such year, provide notice of the amount of the Production Royalty being deferred. If the Xxxxxxxxx Entities fail to give notices within such times, the Thoroughbred Entities shall provide notice to the Xxxxxxxxx Entities and provide an additional reasonable time in which to exercise the Deferment Option. Notwithstanding anything to the contrary, the Parties agree that the Xxxxxxxxx Entities shall have been deemed to have exercised the Deferment Option with respect to the entirety of the Production Royalty for 2013 and 2014. In the event that the Xxxxxxxxx Entities elect not to exercise the Deferment Option for a given year, then any amounts previously deferred shall be paid to the Thoroughbred Entities no later than April 1 of such year, and all other amounts owed to the Thoroughbred Entities shall be paid promptly when due thereafter.
