Common use of Time and Manner; In-Kind or Cash Payment Clause in Contracts

Time and Manner; In-Kind or Cash Payment. At the time of making payment to or otherwise crediting the account of Operator for production from the Property pursuant to Sections 4.1 or 4.2 (but within the time provided in Section 4.5), the Payor shall contemporaneously pay the Royalty in accordance with written instructions given to the Payor by Franco as provided in Sections 4.4.1 and 4.4.2. Once the Payor has received instructions from Franco, such instructions shall remain in effect until the Payor has received different instructions from Franco. All contractual or other arrangements entered into by Operator with the Payor shall contain provisions implementing the terms and conditions of payment set forth in Sections 4.4 and 4.5 hereof and Operator shall procure the written undertaking of Payor contractually binding Payor to perform in accordance with Sections 4.4 and 4.5 in form and substance enforceable by Franco. Operator acknowledges its primary obligation to pay the Royalty and that no undertaking by the Payor shall relieve Operator of that obligation, and Operator agrees to indemnify, protect and defend Franco from and against any loss, cost (including attorney’s fees incurred) or liability arising from the performance or failure of performance by Payor hereunder or under any contractual or other arrangements entered into by Operator with the Payor pursuant to or for the purposes of complying with Sections 4.4 and 4.5 hereof. Franco may, from time to time in its discretion, change the bank or account number for payment under to Sections 4.4.1 and 4.4.2 by giving written notice thereof to Operator and the Payor; such notice shall be effective upon actual receipt by the Payor, or upon the fourth day after deposit of such notice in the mail, first class postage prepaid, addressed to the Payor, whichever occurs first. All costs charged by the Payor as a result of complying with the payment provisions of Sections 4.4 and 4.5 shall be paid by Franco, and Operator shall have no liability or responsibility therefor.