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A <br /> end of the second-year anniversary of the Initial Tenn. Thereafter, following the completion of <br /> the minimum three years of the Initial Term, Lessee may elect to terminate the lease upon sixty <br /> (60) days written notice to Lessor. The termination of this lease at such election by Lessee shall <br /> not terminate Lessee's obligations with respect to reclamation of the property as more specifically <br /> set forth herein. <br /> 3. EXTENSIONS. This Agreement shall not be subject to any automatic extensions. <br /> During the Initial Term, the Parties may negotiate an extended term. Absent agreeing on an <br /> extended term, this Agreement shall terminate at the conclusion of the Initial Term or at such <br /> earlier date if the Lessee elects to terminate this Agreement early as outlined in Paragraph 2 above. <br /> 4. LEASE AGREEMENT PAYMENTS. In exchange for Lessee's right to use the <br /> Property in accordance with the terms described herein,Lessee agrees to make payments to Lessor <br /> pursuant to the terms of this Paragraph. Annual royalty payments in a minimum amount of <br /> will be due and owing by Lessee to Lessor on the anniversary date of the Effective <br /> Date each year during the first three years of the initial term. Annual royalty payments shall <br /> increase effective upon the beginning of the second lease year. Once the Effective Date is <br /> established, the Parties will execute an amendment to this Agreement specifically outlining the <br /> date on which each payment will be due, which said payments will be contingent on this <br /> Agreement not being terminated early. <br /> The minimum royalty payment of (the "Base Royalty") constitutes payment <br /> for up to 90,000 U.S. tons of sand, gravel, and rock removed by Lessee from the Property's site <br /> (hereinafter"material")during the annual term. <br /> The Base Royalty shall increase by 4% annually commencing upon each anniversary date <br /> of this Lease,as follows: <br /> Year 2 $. <br /> Year 3 $. <br /> Year 4 $ <br /> Year 5 $ <br /> Year 6 $ <br /> Year 7 g <br /> Year 8 $ <br /> Year 9 $ <br /> Year 10 $ <br /> In the event Lessee removes more than 90,000 U.S. tons of material from the Property during any <br /> one year period, Lessee shall compensate Lessor for all amounts in excess of 90,000 U.S. tons at <br /> the rate of$ per U.S.ton(the"Excess Royalty")commencing on the first business day of the <br /> month following the date each lease year upon which date the Lessee removes more than 90,000 <br /> U.S. Tons, Lessee shall pay such Excess Royalty for the number of Excess Royalty tons removed <br /> in the prior month, until fully paid with the final Excess Royalty payment being due for a given <br /> lease year on the 301 day following the last month of the completion of each lease year. The <br /> Excess Royalty does not include base course, crusher fines,or select fill. Those will remain at the <br /> &-f-^ Vkj <br />