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thereunder by and from it, are carrying out the terms, covenants and agreements in this lease <br /> contained. <br /> E. The right at any time to grant a right-of-way upon, over or across all or any part' of said <br /> premises for any ditch, reservoir, railroad, communication system, electric powerline, or <br /> pipeline, schoolhouse or other lawful purpose; but that such grants shall be subject to the rights <br /> of Lessee. <br /> F. The right at any time to place the Leased Premises into the Stewardship Trust as set forth in <br /> Section 10(1)(b)(1) of Article IX, of the State Constitution. Said placement into the Stewardship <br /> Trust shall be for reasons not inconsistent with the rights and privileges of Lessee. <br /> TO HAVE AND TO HOLD the above described Leased Premises unto Lessee, its heirs, successors, assigns, <br /> or legal representatives for the primary term of 5 years, and until Twelve O'clock noon on the 121h day of May, <br /> 2021. The Lease may continue in effect for an additional 5 years to the 121h day of May, 2026 (the "Secondary <br /> Term") as long as Minerals are being produced in paying quantities from said Leased Premises and subject to <br /> the terms of paragraph 4 of this Lease, and the royalties and rentals provided for herein are being paid, <br /> subject to the following terms, conditions and agreements, to wit: <br /> 1. ADVANCE MINIMUM ROYALTY -- As minimum and advance royalty, without relation to the amount of <br /> Minerals mined from the Leased Premises, Lessee shall pay annually in advance to Lessor the following <br /> amounts: <br /> LEASE YEAR AMR <br /> 2017-2025 (Beginning May 2017) $10,000 <br /> If Lessee does not extract Minerals from the Leased Premises sufficient to return to the Lessor the <br /> minimum amounts above specified,-it is nevertheless understood that the above sums of money are due <br /> and payable to Lessor whether or not Minerals are mined, but that such advance minimum royalty shall <br /> be credited upon the first royalties due as herein provided for Minerals actually produced from the <br /> Leased Premises. In the absence of production of Minerals in continuous paying quantities before the <br /> expiration date of the lease, all advance minimum royalties and all rentals shall be forfeited to Lessor. <br /> Acreage changes resulting from surrender or partial assignment do not reduce the advance <br /> minimum royalty proportionately. Further, at the end of each five-year period, commencing from the <br /> original tease date, Lessor may reasonably change the rate or amount of advance minimum royalty to <br /> be paid by Lessee. Failure to comply with any new advance minimum royalty rate set by Lessor may <br /> subject this lease to cancellation by thirty day written notice by Lessor. <br /> In case of assignment of this lease, all advance minimum royalty paid to the state shall be <br /> carried forward and credited to the new assignee. <br /> 2. PRODUCTION ROYALTY -- Lessor reserves as royalty, and Lessee agrees to pay to Lessor on or before <br /> the last day of each calendar month following the month of production, a production royalty for all <br /> Minerals which are mined, saved, and/or removed from the Leased Premises based on the following: <br /> • The royalty rate shall be 10% of the Gross Market Value at the first point of sale. Gross Market <br /> Value shall mean the value of the ore or products after extraction and at the mine. <br /> Royalty shall be due and payable on or before the last day of each calendar month during the term <br /> of this lease for Minerals mined and removed by Lessee during the preceding calendar month. Reporting <br /> of production that is credited against advance minimum royalty is also due on or before the last day of <br /> 110324 Revised 512016 <br /> Page 2 of 14 <br />