Common use of Annual Minimum Payments Clause in Contracts

Annual Minimum Payments. On the parties’ execution of this Agreement, NCG shall pay to Owner the sum of fifteen thousand dollars ($15,000.00) following the Effective Date, NCG shall pay the following Minimum Payments to Owner: First anniversary of Effective Date $ 15,000 Second anniversary of Effective Date $ 20,000 Third anniversary of Effective Date $ 20,000 Fourth anniversary of Effective Date $ 25,000 Fifth anniversary of Effective Date $ 25,000 Sixth and any succeeding anniversary of the Effective Date $ 40,000 The initial payment and the Minimum Payments provided in this Section shall not be credited against the Purchase Price if NCG elects to exercise the Option. NCG shall be obligated to pay the Minimum Payments after the exercise and closing of the Option and Minimum Payments paid after closing of the Option shall be credited against the Royalty payable in accordance with the Deed.