Annual Income Amount

Annual Income Amount. For any Year means the sum of (a) the cash received during the Year which is attributable to the Overriding Royalties as defined in Section 2.10 hereof, (b) any cash available for distribution as a result of the reduction or elimination during the Year of any existing cash reserve created pursuant to Section 7.7 hereof, and (c) any other cash receipts of the Trust during the Year, including without limitation any interest earned pursuant to Section 7.7, such sum to be reduced by the sum of (x)... the liabilities of the Trust paid during the Year, and (y) the amount of any cash used in the Year to establish or increase a cash reserve pursuant to Section 7.7 hereof. If the Annual Income Amount determined in accordance with the preceding sentence shall for any Year be a negative number, then the amount distributed as the Annual Income Amount shall be zero. View More