Royalty Term and Invocation Sample Clauses

Royalty Term and Invocation. This Agreement shall be effective upon execution with the Overriding Royalty running against the Royalty Lands until termination pursuant to the terms hereof, including Section 5.2. Notwithstanding the foregoing, the Overriding Royalty shall only become payable upon the earlier to occur of: (a) the occurrence of an Event of Default (as such term is defined in the Loan Agreement), and (b) the repayment in full of the Principal Amount (as such term is defined in the Loan Agreement) and any interest thereon under and in accordance with the terms of the Loan Agreement, and only then if the Royalty Payor has not elected to and completed a prepayment of the Discounted Royalty Amount (as such term is defined in the Loan Agreement) in accordance with the terms of the Loan Agreement.