Common use of Minimum Rental Payments Clause in Contracts

Minimum Rental Payments. Lessee will pay to Lessor a recoupable monthly minimum rental payment (the “Minimum Rental Payment”) in the amount of $166,666.67 commencing on the 25th day of the month immediately following the month during which this Lease was executed and delivered and continuing each month thereafter (it being acknowledged that the first Minimum Rental Payment shall be that amount equal to (x) $166,666.67 times (y) a fraction the numerator of which is the number of days remaining in the month during which this Lease is executed and the denominator of which is 31) until the earlier to occur of (i) the twelve-year anniversary of the date hereof, (ii) the date on which Lessee has paid to Lessor Production Royalty Payments (as defined in Section 3.2 hereof) with respect to 80 million tons of Coal Reserves, or (iii) the date on which the remaining Coal Reserves are insufficient to allow for recoupment of the Minimum Rental Payments which have been paid but not recouped (the “Minimum Period”); provided, however, that in the event that the remaining Coal Reserves (whether or not mineable and/or merchantable) are in an amount insufficient to allow for recoupment of the full Minimum Rental Payment, then the Minimum Rental Payment for the applicable month shall be prorated in proportion to the ratio of tons of Coal Reserves remaining (whether or not mineable and/or