|
18108 '08 YEN 11:87 FAX 418 692 2420 CARR 9 POLYCOR INC _ Q009
<br />the ;parties shall meat and negotiate in good faith on the terms and conditions of ttw lease
<br />a8mmOnnt to be in plaoe for the Renews] Term. Upon the t=aituWon of the Initial Tenn or
<br />the Renewal Term, lessee peaceably shall surrender they Property and shall not hold over
<br />beyond the Torm provided.
<br />2.3 Lessee's Right to Temuztate. NotMthstxudmg auyprovision ooatained hemia to the
<br />wnt`fty, and more specifically, but without liwtitaiion, the provisions of paragtspb 2.2
<br />above, Lessee shall have the option to t=AnUO this
<br />no later than De?nber 31, 2008, sand 'went by w,dttem wotice to Lessor
<br />t1nnmation to become OBWAve June 30.2009. in the
<br />evant Lessee does not provide such written nOtiee to Lessor ofl mm's desire to temilU&
<br />this .A fMcnt effective June 30, 2009, this went shall renUb in fall fare and effect
<br />awfeafier unit] Lessee shall have a second option to terminate this Agrmmeut by written
<br />notice to Lessor UO later than December 31, 2013, said tetmiuation to become effective JuW
<br />30, 2014. In the event Lessen does not provide vvrltten notice to Lessor as set faith herein,
<br />the ABreement shall continue and remain in full force and effect through V,. duration ofthe
<br />Initial Term subject to Lessee's XW1 to mow said Agreement as herein provided.
<br />2.4 Minimum Royalty. On the commenoemm t of the fidtial Twxt? >um Royalty of Ten Thousand Dollars ($10,000) Car the wee shall pay Lessor a
<br />June 30, 2004. On Ju1y1, 2004 and at the beginning 2004 muSh
<br />of each calendar eluarten', October 1,
<br />April 1, through June 30, 2007, Lessee SW pay Lessor the quarterly
<br />nonrefimdable Minimum Royalty of Teen Thousand Dollars ($10,000) subject to adjustment
<br />as provided in paragraph 2.5. COMn1Q Q* July 1, 2007, and continuing on the fnt day of
<br />} each oalendar quarter, October 1, Jauuxy 1, and April 1, through the ra mdning InitW Term
<br />and any Renewal Term of the Lease, the Minim ,
<br />per , to Las
<br />Article 2 oFthe Lease shall be Twenty Thousand Dollars ($20.000) Payable
<br />quartor, as set t t in
<br />adjust?me mt as provided in paragml* 2.6, er, subject to
<br />2.5 Production Royalty. Lessee shall pay to Lessor a production ROyal t of $
<br />of Blocks Saved during the prevfous calendar Varter which a t 1.10 per cubic foot
<br />than y (3.0) days following the close of the previous calendar shall be made no later
<br />rgoy??, will be. er?iteci a ..., quarter. (Tbd?,;.;?uu• )
<br />(.aid° iin ems: 1?rQduotioin:Itoyaliy so that.hndl fife Producoon.12
<br />?' .. 4?' o#'t}it Initial.Tennaxon ttte9• Mhiueutua
<br />cash paymentf for Production Royalty will be made Ro??` for . quartet no
<br />Production Royalties in excess of the b3' Lesser to Lessor. Iu addiiie3n,
<br />Minimum Royalty will acc=Watc dm* each five
<br />Yearpesiod off Initial Term cnmmenc* J'srtuary 1, 2005, and will be credited against
<br />the MWm mn Royalty clue for each quarter during such fWO year period.
<br />216 RQY2 ty Adjustments. It is understood and Agreed that ail m
<br />ltermader, both llizeimum Royalty and Produ Ydes due and payable
<br />earedifa of each Y?Y> gad e11 accumttlatiozus and
<br />against the aMor as h0reinbefvre provided, are subject to in producer Pricer
<br />Index a0ushng mt evety five years during the Initial Teen.
<br />made Weetive on Jauu he3 first shah adjuatrrtent shall be
<br />aiy 1, 2005. Firamt '' and after each Royalty and Praductiou Roy alt y for the Adjeistauemt Date, tits lWiaimurn
<br />Mhimum Royalty and the 1'rnduotiox; Ra i g five YW paned shall be equal to tho ty, period multiplied by a fraction the numerator ofw?ldeh vshall?be the Producer gf iv
<br />Minerals, y JW= for
<br />1Von,Metaltic Commodity Corte 13, as published by the United States Department
|