2004-03-08_REVISION - M1998052 - Laserfiche WebLink

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4. Term Renewal Periods: (a) Following LESSEE' giving the written notice of exercise of the Option and payment described in Paragraph 3(b) hereof, the lease of the Leased Premises shall commence, and shall thereafter remain in full force and effect for a primary term ending on December 31, 2012 ("Primary Term"). (b) LESSEE shall have the right and option to renew the term of the lease wider this Agreement for TWO (2) additional FIVE (5) YEAR period(s) each (the "Renewal Periods" and each a "Renewal Period") upon the same terms and conditions as herein contained (unless otherwise modified by mutual agreement), by serving written notice upon LESSOR of such election at leasC ninety (90) days prior to the expiration of the Primary Term or the then-applicable Renewal Period. Upon service of said notice, this Agreement shall be so extended for the next Renewal Period upon the terms set forth herein without the necessity of any further instruments. (c) Promptly after LESSEE'S exercise of the Option, the parties agree to execute a document, in recordable form, stating the Effective Date, the Exercise Date and the Primary Term termination date, describing the LESSEE'S Renewal Periods option rights, and containing such additional information as may be reasonably required in order to confirm the rights of LESSEE hereunder. Advance Annual Payment -Royalty: (a) Fox the purpose of computing the amounts of and dates when the quarterly installments ofAdvance Annual Payments and Royalty calculations/payments shall he made to LESSOR, the following definitions shall apply: (i) The term "lease year" shall be understood to mean a calendar year. (ii) The term "calendar quarter" shall mean the quarter-annual periods comprising the Three (3) calendar months ending ou the last days of the months of March, June, September and December of each lease year. (b) Provided that LESSEE shall exercise the Option, LESSEE agrees to pay to the LESSOR a minimum paymeut of NINETY THOUSAND Dollars ($90,000) for the Option Ternl and for each lease year of the Primary Term and for each lease year of the Renewal Period(s) of this Agreement ("Advance Annual Payment"). The first quarterly installment of Advance Annual Payment for the second lease year, in the amount of TWENTY-TWO THOUSAND FIVE HUNDRED Dollars ($22,500), shall be due and payable on the first of January, 2004. Thereafter, subsequent quarterly installments of the Advance Annual Payment in the amount of TWENTY-TWO THOUSAND FIVE HUNDRED Dollars ($22,500) each shall be due on first day of each subsequent calendar yuarter. If this Agreement shall terminate at any time prior to the end of any lease year, the 09/06/2002 L.G. Everisl (Rock Island Land Co. Page 3 Option and Lease Agreement