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litigation.) The escrow agent shall hold all such funds at a reputable banking institution <br /> for the benefit of Lessee and Lessor and shall invest such funds in short term certificates <br /> of deposit. The deposit of such funds with the escrow agent shall satisfy Lessee's <br /> obligations with respect to payment of the royalties, and Lessee shall not be deemed to be <br /> in default so long as payments are made to the escrow agent. Funds so escrowed shall be <br /> held until such litigation has been finally adjudicated by a court of competent jurisdiction <br /> or settled by and between all of the adverse parties and adequate proof thereof has been <br /> furnished to Lessee. <br /> (b) Lessee may at its sole option pay the fifty cents (500) per ton <br /> overriding royalty due and owing to American Electric Power on coal sold from the <br /> Leased Premises directly to American Electric Power and deduct the amount thereof from <br /> annual royalty or tonnage royalty payments otherwise due and owing. <br /> (c) In the event any overriding royalty or any other amount is <br /> determined by final order of a Court of competent jurisdiction to be payable to any third <br /> party asserting a claim to or right in the coal or the royalty that exists prior to the date of <br /> this Lease, Lessee may at its sole option pay such overriding royalty or other amount <br /> directly to the third party and deduct the amount thereof from annual royalty or tonnage <br /> royalty payments otherwise due and owing. <br /> (d) In the event it is determined that Lessor owns a lesser interest <br /> than the entire interest in the coal, then the actual interest owned shall be used in <br /> calculating the tonnage royalty, and Lessee may recoup the amount by which previous <br /> SL0406980.io) 10 <br />