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A;I Advance Royalty paynwnt� payable to Owner Pursuant to tiis paragraph shall be recoverable against
<br /> Jubilee's right to acquire OVVmERs'Production Royalty interest more fully oeoc//bed below
<br /> JUBILEE shall pay to OWNER a P,ocluction Royal-,y of 6% NSR (Net Smelter Return) from all ore mined
<br /> fronn the Property, as more particularly sell forth inSc)edu|e ''8" hereto.
<br /> Quartcrly royalty payments will be provisional and subject to adjustment at the end of JUBILEEs
<br /> accounting year. if no written objection is made by OWNER to the correctness of a royalty payment or
<br /> its accompanying statement within two years from the date of such payment, such statement shall be
<br /> conclusively deemed to be correct and such royalty payment sufficient arid complete, arid no exception
<br /> or claim for adjustment shah therczfterbeuurnni\\cd.
<br /> All payments and royalties payable, hereunder rnay be made by JUBILEEs check, and delivery thereof
<br /> shall be deemed oump|etcoon the nadin0 Thereof toOWNER. All payments will bp decided and made
<br /> individually tn the OWNER anfollows:
<br /> Barbara VChesney 100%
<br /> This allocation sha1 continue ineffrct until]U8|UFE receives written instructions from Barbara V
<br /> Chesney astn any adjustment or,chomge� mie instructions being given in accordance with the notice
<br /> o/ov/skzxs hereafter contained 'n this Agreement.
<br /> At anytime dunnOmp term o'zos Agreement, A,,b;L[E �haU hu/� !he righi, but rct'he ub|/gahcn' to
<br /> purchase two thirds of the Prodi.101un Rovalty(4% NSR,1 for$1,500,000, For clarification, should JUBILEE
<br /> elect to purchase two thircs of the Production Royalty, the Production Royalty Rates detailed above will
<br /> be reduced by two thirds, Any arid all Production Royalty payments made by remaining one third of the
<br /> royalty may be purchaseu at any time for an additional$2,000,000. If and when the e,itire royalty has
<br /> been purchased'and a qui,'da/rn deed has been executed conveying the OVVNERs entire interest in the
<br /> property to JUBILEE, neither partysl�aH have any further obligations to one another. Nothing|nthis
<br /> paragraph shall relieve JUBILEE of any reclamation obligations incurred by it or 'ts agents with respect to
<br /> the property.
<br /> 6� if reouired by state of federal low,JUBILt E shall perform annjal labor or assessment work for the
<br /> benefit of the Property, pay any maintenance, rental, holding fee or other payment required to maintain
<br /> yiu Property'or both, for every assessment year thereafter it, which JUBILEE continues this Agreement
<br /> oeyond Junu Ist of the assessment year, If any sich law permits the per4ormance of assessment work or
<br /> arinual labor in lieu of making a I or a portion of any sucn payment, JUBILEE shall determine whether to
<br /> make such payment, perform ouchworko,|aonr. orboth |f required by state or federal law,]UB/LLE
<br /> shall pay any location fee or paymei,t recluired to relocate any unpatented mining claim or mill site
<br /> ioLluded in the Property that JUBILEE determines under Section 7 should be relocated. For each
<br /> assessment year in which JUBILEE performs annual !aoor or assessmoot work or makes any such
<br /> payment. \ shall /ecu,vu,f\e any affidavit orstu�emcolof such cory,phanLe required by federal oront"
<br /> o*�
<br /> jU0LB chill have the beneqtof�i|. iuws now o/ heea`ze, enacted which ,c|ateto annual labor or
<br /> Smo/t *mm or any puYmcnt /tuu.red b\ U'isSx\iun. including any/aw,extending the time withio
<br /> md^U/ oocomu|ywithsuch eo`eo\s, popendmg such ,equ,wnentr, orc*u,rphn8 the Property
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