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A. All rights and privileges of every kind and nature, except as are herein specifically granted. <br />B. The right to use or lease said premises or any part thereof at any time for any purpose, including <br />the right to explore and prospect said premises for minerals other than coal. The use and leasing <br />of said premises shall be for purposes other than and not inconsistent with the rights and privileges <br />herein specifically granted. Notwithstanding the foregoing, any subsequent agreement affecting the <br />Leased Premises, and the rights therein granted shall be subordinate to this Lease and the rights <br />herein granted to Lessee. <br />C. The right to dispose of or lease the surface above the Leased Premises. Any subsequent lease or <br />disposal of the surface above the Leased Premises shall be expressly subject to the terms of this <br />Lease. <br />D. The right at all times during the life- of this Lease to go upon said premises and every partthereof <br />for the purpose of inspecting same, and the books of accounts and records of mineral workings <br />therein, and of ascertaining whether or not said Lessee and those holding thereunder by and from <br />it, are carrying out the terms, covenants and agreements in this Lease contained. <br />E. The right at any time to grant a right-of-way upon, over' or across all or any part of the Leased <br />Premises for any ditch, reservoir, railroad, communication system, electric powerline, pipeline, <br />schoolhouse or other lawful purpose. Such grants shall be subordinate to the rights of Lessee, <br />including the right to subside the surface of the premises, and shall provide that any and all damages <br />caused to any structures or improvements placed upon the surface of the premises subsequent to the <br />date hereof shall be repaired by and at the expense of the party to whom the easement or right-of- <br />way was granted: If the grant of such rights shall unreasonably interfere with- Lessee's rights <br />hereunder, the implementation or effectiveness of the grant of such rights shall be delayed until such <br />time as there is no interference with Lessee's rights. <br />TO HAVE AND TO HOLD The above-described premises unto Lessee; its heirs, successors, assigns, or <br />legal representatives for the term of 20 years, and uotit Twelve O'clock noon on the 1st day of December , <br />2016 , and, in accordance with Section 5 .hereof ("the Primary Term") and as long thereafter as coal is being <br />produced from the Leased Premises and the royalties and rentals provided for herein are being paid, or by any <br />extension hereof ("the. Extended Term"), 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 <br />of coal mined from the Leased Premises, Lessee shall pay annually in advance to Lessor the following <br />amounts: <br />LEASE YEAR AMR <br />1996 $40,000 <br />1997 $40,000 <br />1998 $40:000 <br />1999 $40,000 <br />2000 $40,000 <br />2001 $40,000 <br />2002 $40,000 <br />2003 $40,000 <br />2004 $40,000 <br />2005 $40,000 <br />2006 $80,000 <br />LEASE YEAR <br />2007 <br />2008 <br />2009 <br />2010 <br />2011 <br />2012 <br />2013 <br />2014 <br />2015 <br />2016 <br />AMR <br />$80,000 <br />$80 ,000 <br />$80,000 <br />$80,000 <br />_$80,000 <br />$80,000 <br />$80,000 <br />$80,000 <br />$80,000 <br />$80,000 <br /> <br /> <br /> Page 2 of 10 <br />i