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E. The right at any time to grant a right-of-way upon, over or across all or any part of said premises for any <br /> ditch, reservoir, railroad, communication system, electric powerline, or pipeline, schoolhouse or other <br /> lawful purpose; but that such grants shall be subject to the rights of Lessee. <br /> F. The right at any time to place the Leased Premises into the Stewardship Trust as set forth in Section <br /> 10(1)(bxi)of Article IX,of the State Constitution. Said placement into the Stewardship Trust shall be for <br /> 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, or <br /> legal representatives for the primary term of 10 years, and until Twelve O'clock noon on the 1 st day of August, 2023. The <br /> Lease may continue in effect for an additional 10. ears to the 1 st day of January, 2033 (the "Secondary Term") as long as <br /> sand and gravel are being produced in'paying quantities from said Leased Premises and subject to the terms of paragraph 4 <br /> of this Lease,and the royalties and rentals provided for herein are being paid, subject to the following terms, conditions and <br /> 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 amounts: <br /> LEASE YEAR AMR <br /> Lease Year 6 $15,000 <br /> (starting August 1,2018) <br /> and each year thereafter that the lease <br /> is in full force and effect <br /> If Lessee does not extract minerals from the Leased Premises sufficient to return to the Lessor the minimum <br /> amounts above specified, it is nevertheless understood that the above sums of money are due and payable to Lessor <br /> whether or not minerals are mined, but that such advance minimum royalty shall be credited upon the first royalties <br /> due as herein provided for minerals actually produced from the Leased Premises. In the absence of production of <br /> minerals in continuous paying quantities before the expiration date of the lease, all advance minimum royalties and <br /> all rentals shall be forfeited to Lessor. <br /> Acreage changes resulting from surrender or partial assignment do not reduce the advance minimum royalty <br /> proportionately.Further,at the end of each five-year period,commencing from August 1,2018, Lessor may increase <br /> the rate or amount of advance minimum royalty to be paid by Lessee by a rate not to exceed the rate of increase of <br /> the average Producer's Price Index for Construction Sand,Gravel and Crushed Stone for the previous 5-year period, <br /> as published by the U.S. Department of Labor, Bureau of Labor Statistics. Failure to comply with any new advance <br /> minimum royalty rate set by Lessor may 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 carried forward <br /> and credited to the new assignee. <br /> 2. PRODUCTION ROYALTY -- Lessor reserves as royalty, and Lessee agrees to pay to Lessor on or before the last <br /> day of each calendar month following the month of production the following amounts: <br /> • The royalty rate shall be $0.75 per ton(2000 pounds)of sand&gravel produced and sold from the Leased <br /> Premises, or NA % of the gross sale price at the first point of sale to an independent purchaser, whichever <br /> is greater. <br /> Further, at the end of each five-year period, commencing from the original lease date, for so long as this lease <br /> remains in effect, Lessor may increase the rate or amount of production royalty to be paid by Lessee by a rate not to <br /> Page 2 of 11 <br />