>I'm not sure because of the wording. Is the additional 2% just 2% of FO's interest or the entire deal?

At times, I like to take the original paragraphs and remove the mumbo-jumbo, and replace "parties" with actual company names. That really clarifies things. Like this:

The Party obtaining the interest shall assign to the other Party a 2% of eight-eighths overriding royalty interest, in a mutually acceptable form, in all such interests obtained, as full and final consideration under this Section 7.

Becomes:

"Falcon shall assign Gustavson a 2% interest in all such interests obtained"

Which I think undoubtedly means a 2% royalty interest of Falcons interest only, not on the entire deal.