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notice upon the Lessor's decision to initiate a sale or exchange of all or a portion of the <br /> Leased Land. <br /> B. The right to use or lease said premises or any part thereof at any time for any purpose, <br /> including the right to explore and prospect said premises, which use and leasing of said <br /> premises shall be for purposes other than and not inconsistent with the rights and privileges <br /> herein specifically granted. <br /> C. The right to dispose of or lease the surface where Lessor is the surface owner. <br /> D. The right at all times during the life of this tease to go upon said premises and every part <br /> thereof for the purpose of inspecting said premises, and the books of accounts and records of <br /> mineral workings therein, and of ascertaining whether or not said Lessee and those holding <br /> 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)(I) 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 10 years, and until Twelve O'clock noon on the 17th day of July <br /> 2028 and, except has hereinafter stated, for an additional ten years ("secondary term"), if minerals are <br /> being produced in paying quantities from said Leased Premises in accordance with Paragraph 4 hereof, and <br /> the royalties and rentals provided for herein are being paid, or by any extension hereof in accordance with <br /> Paragraph 3, 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 LEASE YEAR AMR <br /> No AMR during the primary term <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 shalt <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 lease 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 /> SM 102453 <br /> Page 2 of 15 <br />