Ownership of Royalty. If the Deemed Purchase under Section 7.2 is made prior to TRC’s exercise of its Option and a subsequent Closing under Section 7.3, then, following such Deemed Purchase and prior to TRC’s exercise of its Option and the subsequent Closing under Section 7.3, the Royalty accruing under this Agreement shall be owned and paid as follows with respect to all of the Property except the Initial Claim Groups comprising the Property as to which TRC’s Option (defined in Section 7.3) has been exercised: Owner: two percent (2%) of Net Smelter Returns TRC: one percent (1%) of Net Smelter Returns. If a Closing under Section 7.3 occurs prior to a Deemed Purchase under Section 7.2, then, following such Closing, the Royalty accruing under this Agreement shall be owned and paid as follows with respect to those Initial Claim Groups as to which TRC’s Option has been exercised: Owner: two percent (2%) of Net Smelter Returns TRC: one percent (1%) of Net Smelter Returns. If a Closing occurs under Section 7.3 after a Deemed Purchase under Section 7.2, then, following such Closing, the Royalty accruing under this Agreement shall be owned and paid as follows with respect to those Initial Claim Groups as to which TRC’s Option has been exercised: Owner: one percent (1%) of Net Smelter Returns TRC: two percent (2%) of Net Smelter Returns. If TRC shall be deemed, pursuant to Section 7.3A, to have exercised the Option as to all of the Additional Lands then or thereafter included in the Property and such deemed exercise occurs prior to a Deemed Purchase under Section 7.2 then, following such deemed exercise, the Royalty accruing under this Agreement shall be owned and paid as follows with respect to all of the Property: Owner: two percent (2%) of Net Smelter Returns TRC: one percent (1%) of Net Smelter Returns. If TRC shall be deemed, pursuant to Section 7.3A, to have exercised the Option as to all of the Additional Lands then or thereafter included in the Property and such deemed exercise occurs after a Deemed Purchase under Section 7.2, then, following such deemed exercise, the Royalty accruing under this Agreement shall be owned and paid as follows with respect to all of the Property: Owner: one percent (1%) of Net Smelter Returns TRC: two percent (2%) of Net Smelter Returns.
Ownership of Royalty. Seller owns the undivided one hundred percent (100%) interest in and to the Royalty, including without limitation all rights to receive payment of three percent of Net Smelter Returns (as such term is defined in the Royalty Agreement), subject to the terms and conditions of, and payable pursuant to, the Royalty Agreement.
