Common use of Advance Minimum Royalties Clause in Contracts

Advance Minimum Royalties. Advance royalties as used herein means the amount required to be paid by Lessee to Lessor, as set forth below, to provide for a specific minimum payment in such periods. During the term of this Agreement, Lessee shall pay to Lessor advance minimum royalties ("Advance Royalties") as follows: Upon exercise of this Lease: (already paid) $10,000 On or before the first anniversary of the Effective Date $20,000 On or before the second anniversary of the Effective Date $20,000 On or before the third anniversary of the Effective Date $40,000 On or before the fourth anniversary of the Effective Date $40,000 On or before the fifth anniversary of the Effective Date $50,000 On or before the sixth anniversary of the Effective Date $50,000 On or before the seventh anniversary of the Effective Date $60,000 On or before the eighth anniversary of the Effective Date $60,000 On or before the ninth anniversary of the Effective Date $70,000 On or before the tenth anniversary of the Effective Date $70,000 On or before each subsequent anniversary of the Effective Date $80,000 * * Beginning on the eleventh anniversary of the Agreement, the Advance Royalty of $80,000 shall be adjusted for inflation increases according to the United States Department of Labor Consumer Price Index. The beginning index shall be the index published for April 2015. However, in no case will the Advance Royalty drop below the Advance Royalty base amount of $80,000. Advance Royalties shall be paid on or before the date due. Lessee shall not be responsible or liable for Advance Royalties that become due subsequent to termination or expiration of this Agreement. Advance Royalties paid hereunder shall be credited against and fully recoupable from any and all Net Smelter Return that may accrue under Section 2.2, regardless of whether such Net Smelter Return accrues or is made in the same or any subsequent year to the year of payment of the Advance Royalties.

Advance Minimum Royalties. Advance royalties as used herein means the amount required to be paid by Lessee to Lessor, as set forth below, to provide for a specific minimum payment in such periods. During the term of this Agreement, Lessee shall pay to Lessor advance minimum royalties ("Advance Royalties") as follows: Upon exercise of this Lease: (already paid) $10,000 6,250 On or before the first anniversary of the Effective Date $20,000 12,500 On or before the second anniversary of the Effective Date $20,000 12,500 On or before the third anniversary of the Effective Date $40,000 20,000 On or before the fourth anniversary of the Effective Date $40,000 20,000 On or before the fifth anniversary of the Effective Date $50,000 25,000 On or before the sixth anniversary of the Effective Date $50,000 30,000 On or before the seventh anniversary of the Effective Date $60,000 40,000 On or before the eighth anniversary of the Effective Date $60,000 40,000 On or before the ninth anniversary of the Effective Date $70,000 50,000 On or before the tenth anniversary of the Effective Date $70,000 50,000 On or before each subsequent anniversary of the Effective Date $80,000 60,000* * Beginning on the eleventh anniversary of the Agreement, the Advance Royalty of $80,000 60,000 shall be adjusted for inflation increases according to the United States Department of Labor Consumer Price Index. The beginning index shall be the index published for April 2015. However, in no case will the Advance Royalty drop below the Advance Royalty base amount of $80,00060,000. Subject to Section 2.2(a), Advance Royalties shall be paid on or before the date due. Lessee shall not be responsible or liable for Advance Royalties that become due subsequent to termination or expiration of this Agreement. Advance Royalties paid hereunder shall be credited against and fully recoupable from any and all Net Smelter Return Production Royalty that may accrue under Section 2.2, regardless of whether such Net Smelter Return Production Royalty accrues or is made in the same or any subsequent year to the year of payment of the Advance Royalties.