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(d)No royalty or charge of any kind shall be due from LESSEE to LESSOR on account of
<br />By-products mined and removed or sold by LESSEE from the Property or water from or under
<br />said Property used by LESSEE.
<br />(e)Such payments by LESSEE of gamed roya@y and/or of minimum advance royalty shall
<br />constitute reasonable development for all purposes under this Lease, provided however, the
<br />nature, manner and extent of operations, 'rf any, by LESSEE hereunder shall always be at
<br />LESSEE'S sole discretion.
<br />title examined to the Property hereby leased and/or order a commitment for title insurance from
<br />the title insurance company of LESSEE'S choice:: Af LESSEE'S request, LESSOR shall famish
<br />LESSEE any and all abstracts of title in LESSOR'S possession covering the Property hereby
<br />leased. If such examination discloses.defects in. title or liens, charges or encumbrances which
<br />render the title of LESSOR not good and merchantable, LESSOR agrees to use its best efforts
<br />to assist LESSEE in providing and/or executing any tlowments necessary to perfect title to the
<br />satisfaction of LESSEE, but not including LESSOR bringing any legal action. LESSEE shall,
<br />however, have the right, at its sole option, to make any payments necessary to perfect such btle
<br />and discharge any detect therein or any charges, lien or encumbrance against said Property,
<br />and LESSEE shall have the further right at any time during the life of this Lease, at tts sole
<br />option, to redeem said Property or Coal or any part thereof by payment of any tax, lien, charge
<br />or enwmbrence thereon, of whatever kind or nature, and upon doing so LESSEE shall be
<br />subrogated to the rights of the holder or holders thereof. LESSOR agrees to render such
<br />assistance to LESSEE as may be necessary to wre any such defect, charge, lien or
<br />encumbrance in connection therewith, but not including LESSEE bringing a legal action to cure
<br />any such defect, charge, lien or enwmbrence..
<br />(b) In the event that LESSOR'S title to the Property and Coal hereby leased cannot be
<br />made good and merchantable on or before the 365th day from the Effective date of this Lease,
<br />LESSEE shall have the option, to be exercised in writing within 30 days thereafter, either to
<br />accept title or to render this Lease null and void. In either case LESSOR shall have no
<br />obligation to refund any minimum advance royalty theretofore paid to LESSOR by LESSEE. If
<br />LESSEE does not duly exercise such option it shall be deemed to have accepted title.
<br />6. LESSEE agrees that in the course of administering this Lease it will comply with all laws
<br />and with all lawful rules, regulations and orders of duly constituted governmental authority.
<br />7. LESSEE shall keep true and correct records of all Coal mined and removed or sold by
<br />LESSEE from said Property and shall permit LESSOR or LESSOR'S agent tc examine said
<br />records pertaining to said Coal so mined and removed or sold, but not more frequently than
<br />once a year, and shall famish to LESSOR on or before the 25th day following the end of each
<br />calendar year a true and correct statement showing the Coal mined and removed or sold from
<br />said Property during the preceding calendar year. LESSEE shall not be required to retain said
<br />records ~ beyond the period, if any, speGfed by applicable law or govemmemal regulation.
<br />LESSEE shall have the right of commingling any of the Coal which is mined by LESSEE
<br />hereunder wkh any other Coal, provided that the commingling is accomplished only after the
<br />Coal has been fairly and accurately weighed or measured in accordance with good engineering
<br />principles.
<br />8. Except as may be required under paragraphs 6, above, LESSEE shall have no liability of
<br />env kind to LESSOR for subsidence; failure to provide lateral, adjoining, subjacent or other
<br />support, and LESSOR hereby expressly waives all rights in and to any of the same. However,
<br />this provision shall not be construed to make LESSOR liable to the owner of any adjoining real
<br />estate or to any lessee thereof for any damage of the nature described in the foregoing
<br />sentence caused by the operations of LESSEE hereunder.
<br />9. LESSEE hereby indemnifies, holds harmless, and agrees to defend LESSOR from and
<br />against any and all actions, causes of action, claims, demands, liabilities, loss, damages or
<br />expenses of any kind and nature whatsoever, including attorneys' fees, which LESSOR may
<br />suffer or inwr by reason of bodily injury, including death, to any person or persons, of by
<br />reason of damage to or destruction of any property, including the loss for use thereof,~~~yyyl
<br />Initial:
<br />Initial:
<br />473048 B-729 P-158 01/14/1997 ~01:56P PG 3 OF 6
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