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<br />-3- <br />B. Advance Production Royalty <br /> <br />Lien shall pay to <br />Commercial an Advance Production Royalty of Ten Thousand Dollars <br />($10,000.00) on or before the Effective Date hereof. Once pro- <br />duction from the Subject Lands has begun, Lien shall retain 50% <br />of the Production Royalties otherwise due Commercial until the <br />Ten Thousand Dollars ($10,000.00) Advance Production Royalty has <br />been recovered in full by Lien. <br />C. Minimum Production Royalty: Commencing on January <br />31, 1976, and on or before each January 31 thereafter while the <br />lease granted hereby is in effect, Lien shall pay to Commercial a <br />minimum Production Royalty if the Production Royalties paid over <br /> the preceding calendar year were less than Five Thousand Dollars <br /> ($5,000.00}, The amount of Minimum Production Royalty then due <br />Commercial shall be the difference between Five Thousand Dollars <br />($5,000.00) and the amount of Production Royalties actually paid <br />to Commercial in that preceding calendar year. At such time as <br />+I.n In ...+n.i Hn nh.. +n ..n+nn +4.n TR: ll..n.:, n+: Dn .nl <br />ties due shall be prorated on the basis of the amount of calendar <br />year that has transpired at the date of such termination. <br />D. Minimum Production Royalty if Lien Fails to Con- <br />• struct Lime Plant; Lien contemplates that it may construct a lime <br />plant on or before January 1, 1975 with a minimum annual capacity <br />of 100,000 tons, for the purpose of processing some or all of the <br />minerals extracted by Lien from the Subject Lands. Said lime plant <br />may be built at a location of Lien's choice. If Lien fails to <br /> <br />commence construction of such a lime plant on or before January I, <br />1974, there shall be payable to Commercial on that date a Minimum <br />Production Royalty of Ten Thousand Dollars ($10,000.00). If Lien <br />• fails to complete construction of such a lime plant on or before <br />January 1, 1975, there shall be payable to Commercial an Advance <br />Production Royalty of Ten Thousand Dollars ($10,000.00) per year <br />beginning January 1, 1975 and payable January 1 of each year until <br />such a plant is completed. <br />