2016-12-23_REVISION - M1981207 - Laserfiche WebLink

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i I ' I i royalty provided in paragraph 4 herein. Per-ton royalfies due shall be set off against the j minimum royalty paid until such time as per-ton royalties due for production in a given Lease year exceed the minimum royalty paid. At that time Lessee shall begin making monthly payments on the first day of each ensuing month equal to the excess production in I the previous month. The minimum royally for the first yearthis Lease shall b�itt it r The minimum royalty shall be adjusted each year in the same manner as the per-ton royalty provided in paragraph 4.b and 4.c herein. i 17. DEFAULT. If for any reason Lessee shall fail or refuse to comply with any material terms or provisions hereof, and such failure continues for a period of sixty(60) days after receipt of written notice by Lessor to Lessee specifying the nature and character { of the default,then, at the option of Lessor,this Lease and all right of Lessee hereunder shall be terminated and Lessee shall quie0yand peaceably surrender the leased premises to Lessor,provided,however that Lessorwitl notterminats this Lease If,through no fault of the Lessee such failure is impraotical to correct within the s"rxty-day period following Lessor's notice and If within such period Lessee commences and thereafter prosecutes with continuity and diligence measures to correct such failure. 18. TERMINATION. During the tern of this Lease, Lessee may terminate the Lease at the end of any Lease year by giving written notice to Lessor ninety(90) days before the end of such Lease year. Upon such early termination, Lessee agrees to pay Lessor any unpaid per-ton royalties due in excess of the minimum royaityforthatyear,plus the prorated minimum royalty that would have been due for the flrstthree(3)months of the coming Lease year. Lessee shall also deriver to Lessor a recordable Instrument of surrender. In the event of termination of this Lease by expiration of the term hereof,or for any reason whatsoever, Lessee agrees to sutrenderthe[eased premises to Lessor in goad condilson and In full compliance with the above-mentioned Special Use Permit,Mined Land Reclamation Permit, and Emission Permit, and to cooperate wfth Lessor in keeping all ( permits in force and good standing until re-transferred to Lessor or Lessor's designee can be accomplished, Pdorto the expiration of this Lease,orwithin ninety(91))days thereafter, I Lessee shall effect the removal of machinery,equipment and improvements placed by it on i the[eased premises. Any such machinery,.equipment orimprovements not removed prior to the expiration of ninety (90) days following termination of the Lease shall be deemed affixed to the leased premises and'shall become and remain the property of Lessor. 19. EXTENSIONS. Lessor,as additional consideration for the royalties hereunder, grants to Lessee the irrevocable option to extend this Lease under the same terms and conditions for four (4) additional five (5) year periods. In the event of exercise of this option,the annual adjustment in royalties shall continue in the same manner as during the primary term. Lessee shall give written notice to Lessor of its exercise of each option at least six(6) months prior to the expiration of the primary or extended term of this Lease. I - 20. RIGHT OF FIRST REFUSAL. Lessor, as additional consideration for the j royalties hereunder,does grantto Lessee an irrevocable right of first refusal to purchase a - i Page 6 of 6