Common use of Annual Operating Fee Payments Clause in Contracts

Annual Operating Fee Payments. The Lessee must pay the operating fee for each subsequent year of Commercial Operations on or before each Lease Anniversary following the formula in subsection (4) below. The Lessee must calculate each operating fee annually subsequent to the initial operating fee payment using an operating fee rate of 0.02 through the thirty-three year operations term of the lease. If the Lessor determines that the Lessee has met the threshold for the supply chain incentive under section 7.2 of Addendum C, then the operating fee rate will be 0.01 instead of 0.02 for five years starting the year after the Lessor makes the determination. After five years at 0.01, the operating fee rate will be‌