Laserfiche WebLink
3.4 1 +ti d Righg. Payments to Lessor pursuant to Article IV shall be <br />. considered as fidl emm~entatinn fnr the vrant to, and exercise of, any ono all ngnts <br /> granted to Lessee pursuant to this Article LIL <br /> ARTICLE N <br /> PAYMENTS <br /> 4.1 Payment Upon Execution. As partial consideration for entering into <br /> this Leaze, Lessee agrees to pay Lessor, at the time the Lease is signed, the sum of ten <br /> dollars (SIO) and other good and valuable wtuideration. <br /> 4.2 Minimum Roytty Paytl><n<s• Oo each anniversary o[ the effective <br /> date oC tbis Lease, Lessee shall pay to Lessor as a minimum royalty payment, without <br /> regard to the quantity of Coal mined Gom the Unitized Premises, the tollowing sum per <br /> ace for the total cumber of acres specified in Schedule 1: <br /> Anniversary S/ ~ s d Acre <br /> 1st - 5th S 5.00 <br /> 6th - 10th 7S0 <br /> 11th - 20th 10.00 <br /> 21st and beyond 1250 <br /> Any minimum royalty payment which becomes due under this Section 4.2 shall be offset <br /> and reduced, but not below zero, by any production royalty payments pursuant to <br /> Section 4.3 which were made during the most recently concluded lease year. Any <br /> produttion royalties which become due under Section 43 shall not be offset by arty <br /> minimum royalty payments previously made or to be made under this Section. <br /> 43 Production Rpyalties <br /> (a) Coa( Production Royal y. For Coal in ar under the Unitized <br />• Premises which is mined or produced and sold by Lessee through arms-length bargaining <br /> to a third party not affiliated with Lessee in any way, the production royalty payable to <br /> Lessor shall be that percentage of the gross sales price, F.O.B. truck or railcar (az <br /> applicable), that is set fonh in Schedule 3, which is attached to and made a part of this <br /> Lease, for each ton of 2,000 pounds thus sold. The term 'gross sales price' az used in <br /> this Lease shall allow for a maximum 2%a commission or brokerage fee to be deducted, <br /> where actually incurred with respect to a sale of Coal from the Unitized Premises. <br /> Lessee shall have the right, without any royalty obligation to Lessor, to <br /> utilize Coal in its Mining Operations so long az such use is reasonably related to the <br /> development, production, preparation or marketing of Coal Gom the mine. Also, tar <br /> purposes of this lease, the existence of a long-tens sales agreement with a party or <br /> entity not othervrise related by ownership to Lessee shall be deemed a sale through arms- <br /> length bargaining. <br /> If Coa! in and under the Unitiud Premises is removed for Lessee's own <br /> use outside of or unrelated to iu Mining Operations, or is sold to a purchazer owned or <br /> controlled by Lessee or its trorporate owner, the price of such Coa[ Cor produttion royalty <br /> purposes shall be the greater of the gross sales price, F.O.B. wck or railcar, actually <br /> received by Ixssee or the then Gltrrent Market Value of the Coal. <br /> (b) Unitized Production Royalty. Pursuant to Anicle III, the <br /> Premises have been and are hereby declared to be unitized for royalty purposes on the <br /> bazis set forth in Schedule 2, and the royalties on production sold Gom the Ututized <br /> Premises shall be paid to Lessor in accordance with the following formula: <br /> Y= (RxT1P <br /> U <br />• where <br /> -3- <br />