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D. The right at all times during the life of this lease to go upon said premises and every part thereof for the purpose of inspecting same, and the books of accounts and records of mineral workings therein, and of ascertaining whether or not said Lessee and [hose holding thereunder by and from it, are carrying out the terms, covenants and agreements in this lease contained. E. The right at any time to grant aright-0f-way upon, over or across all or any part of said premises for any ditch, reservoir, railroad, corrununicationsyscem, electric powerline, pipeline, schoolhouse or other lawful purpose; but that such grants shall be subject to the rights of Lessee. TO HAVE AND TO HOLD The above-described premises unto Lessee, its heirs, successors, assigns, or legal representatives for the term of ten years, and until Twelve O'clock noon on the 9lh day of November, 2004 ,and, except as hereinafter stated, as long thereafter as coal is being produced in paying quantities from said premises, and the royalties and rentals provided for herein are being paid, or by any extension hereof, subject to the following terms, conditions and agreements, to-wit: ADVANCE MINIMUM ROYALTY -- As minimum and advance royalty, without relation to the amount of coal mined from the leased premises, Lessee shall pay annually in advance to Lessor the following amounts: LEASE YEAR 1994 1995 1996 1997 1998 AMR _ NONE NONE NONE NONE _ NONE LEASE YEAR 1999 2000 2001 2002 2003 AMR $10.00/AC/1'R $10.00/AC/YR $10.00/AC/YR $10.00/AC/YR $10.00/AC/YR Royalty due for coal produced from said premises shall be credited against such advance minimum royalty until the total sum is equal to the advance minimum royalty previously paid to the State, at which time a regular monthly royalty will be due and payable as herein provided. In the event Lessee does not extract coal from the leased premises during the primary term or any additional term so agreed to by Lessor, the minimum amounts above paid to the State will be forfeited. Acreage changes resulting from surrender or partial assignment may 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 ,account of advance minimum royalty to be paid by Lessee. 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 hereby reserves and Lessee agrees to pay to Lessor as production royalty the following: For coal removed by underground mining methods a sum equal to eieht percent ( 8 °,fo ) of the gross sale price at the first point of sale; for coal removed by strip mining methods a sum equal to twelve and one-half percent ( 12 1/2 ~ ) of the grass sale price at the first point of sale; and for lignite removed by strip mining methods a sum equal to su; and one-quarter percent ( 6 1/4 %a ) of the gross sale price at the first point of sale, for each and every ton (2000 lbs.) of coal or lignite mined from the leased Page 2 of l0