2020-01-27_PERMIT FILE - M2020002

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e) The right to access, inspect, and monitor the Leased Premises at all reasonable times by Lessor, utilizing all reasonable means and methods, including but not limited to gate counters, game cameras and Unmanned Aerial Systems (UAS). The use of UAS will be in accordance with applicable Federal Aviation Administration (FAA) rules and regulations. Lessee will cooperate and not interfere with all reasonable means and methods of access, inspection, and monitoring including taking actions necessary to comply with FAA rules and regulations. f) The right at any time to grant a right-of-way upon, over or across all or any part of said premises for any ditch, reservoir, railroad, communication system, electric powerline, or pipeline, schoolhouse or other lawful purpose; but that such grants shall be subject to the rights of Lessee. g) The right at any time to place the Leased Premises into the Stewardship Trust as set forth in Section 10(1)(b)(I) of Article IX, of the State Constitution. Said placement into the Stewardship Trust shall be for reasons not inconsistent with the rights and privileges of Lessee. TO HAVE AND TO HOLD the above described Leased Premises unto Lessee, its heirs, successors, assigns, or legal representatives for the primary term of 10 years,and until Twelve O'clock noon on the 8th day of January, 2030.The Lease may continue in effect for an additional 10 years to the 8th day of January,2040(the"Secondary Term")as tong as sand and gravel are being produced in paying quantities from said Leased Premises and subject to the terms of paragraph 4 of this Lease, and the royalties and rentals provided for herein are being paid, subject to the following terms, conditions and agreements, to wit: 1. ADVANCE MINIMUM ROYALTY -- As minimum and advance royalty, without relation to the amount of minerals mined from the Leased Premises, Lessee shall pay annually in advance to Lessor the following amounts: LEASE YEAR AMR 0-2 $0.00 3-20 $20,000.00 If Lessee does not extract minerals from the Leased Premises sufficient to return to the Lessor the minimum amounts above specified, it is nevertheless understood that the above sums of money are due and payable to Lessor whether or not minerals are mined, but that such advance minimum royalty shall be credited upon the first royalties due as herein provided for minerals actually produced from the Leased Premises. In the absence of production of minerals in continuous paying quantities before the expiration date of the lease, all advance minimum royalties and all rentals shall be forfeited to Lessor. Acreage changes resulting from surrender or partial assignment do not reduce the advance minimum royalty proportionately. Further, at the end of each five-year period, commencing from the original lease date, Lessor may reasonably change the rate or amount of advance minimum royalty to be paid by Lessee. Failure to comply with any new advance minimum royalty rate set by Lessor may subject this lease to cancellation by thirty day written notice by Lessor. In case of assignment of this lease,all advance minimum royalty paid to the state shall be carried forward and credited to the new assignee. 2. PRODUCTION ROYALTY -- Lessor reserves as royalty, and Lessee agrees to pay to Lessor on or before the last day of each calendar month following the month of production the following amounts: • The royalty rate shall be $0.55 per ton (2000 pounds) of sand &t gravel produced and sold from the Leased Premises, or a sum equal to eight percent (8%) of the Gross Sate Price (as herein defined)at the first point of sale, whichever is greater. For the purpose of this lease, the "Gross Sale Price"shall be the average gross sale price per ton of sand ft gravel actually mined, removed, sold and shipped from the Leased Premises during any month which shall be an amount equal to the total gross proceeds from all such sales of sand Et gravel during GL 112927 Revised DOL 11/2018 Page 2 of 14