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18/08 '09 YEN 11:37 FAX 418 602 2420 CARR S POLYCOR INC 9 009
<br />C) the parties shall most and negotiate in good faith on the tarns and conditions of t$0 lease
<br />r`y agtearnent to be In Place for the R= WW Term. Upon the termination of itte Iai#a1 Team or
<br />the Renewal Term, l:,essee peaceably shall surrender the Proparty and shall not hold over
<br />beyond the Term provided.
<br />2.3 Lessee's Right to Tormh tic. NotMthslandm as
<br />?m?Y, and more 8 Yprovision contained herein, to the
<br />above, spec fically, but without limitation, the provisions of paragmpb 2.2
<br />e, Lessee shall have the option to tenmirnate this Agreelent by written notice to Lessor
<br />no later than, December 31, 2008, said tmmination to become effective June 30, 2009. In the
<br />event Lessee does not provide such written nodes to Lemor of Lessee's deske to t
<br />this Agreement effective, June 30. 2009, this Agreement shall rmiain in &H force and erect
<br />theneaAw until Lessee shad have a second option, to t=xWate'tivs Agreement by written
<br />notice to Lessorrto later than December 31, 2013, said termination to become effective June
<br />30, 2014. In the event Lessees does not provide written notice to Lessor as ad faith herein,
<br />the Agreement shall continue and remain in i'u11 force and effect through the duration of the
<br />Initial Term subject to Lessee's fight to renew said Agree:nwt as herein provided.
<br />2.4 Minimum Royalty. On the oommmxoam=t of the UtW
<br />Twin, Minimum Royalty of Tar, Thousand Dollars ($10,000) Aw teriod shall pay Lessor a
<br />June 30, 2004. On Julyl, 2004 and at the b g of each calendar 26, 2 October through
<br />JanLlary 1, and April 1 tisro quarter, October I,
<br />ugb rune 3% 2007, Lessee shall pay Lessor the quarterly
<br />nonrefuudable Minimum Royalty of Ten Thousand Dollars ($10,000) subject to adjustment
<br />as provided in paragraph 2.5. Commenodag July 1, 2007, and co on the
<br />? fit day of
<br />( y, each odquarter, October 1, January 1. and April 1, through the remaining initial Team
<br />any Renewal Tom of the Lease, the Minim= Royalty payable to Lessor as set fob in
<br />Article 2 ofthe Lease shall be Twenty Thousand Dollars ($20,000) per quarter, subject to
<br />adjustment as provided in paragraph 2.0.
<br />2.S Production Royalty. Lessee shall pay to Lessor a production Royal of$1.10
<br />of Blocks Saved during the previous calendar yuarts?,r which Payment pax cubic foot
<br />than 61* (30) followin x,t shall be made no later
<br />g sit
<br />e close of the previous calendar quarter. g1i M0jj6& j
<br />ihe
<br />`Royaltjrll be. credited agaiiast Produo#ioin.}foyaltygtliat. imbil tlt? lduct{am.yJ
<br />06 quarter of flirt -t U ' lt 0yak al .T`erm .
<br />acv ' xhe.Iviix,?auuts, Royaltyforlst. quarte4no
<br />cats paymegt fern Production, Royalty will be made by Lessee to Lessor. Iii addition,
<br />Production Royalties in excess of the Minimnm Royalty will emulate dming Year peazod of the lmtial Term commencing J earh fist
<br />the Mi?um Royalty due for each ??' ], 2405, and ,g be credited against
<br />Rnarter during such five year period.
<br />2.6 Royalty,A,djustments. It is understood and agr.W that as ro
<br />lterounder, boat 11du,imum ROARY and production Ro as due and payable
<br />credits of each 3+? and nail s11 acounp?ulations and
<br />against the causer as hereinbefore provided, are subject to a ProQuccst 1'riee
<br />Index adju8tim4mt every five years during the lnidW TOM- The first shah adjustment shall be
<br />made effective on Jauuary 1, 2005. From and after each Adjustment D
<br />Royalty and Production, Royalty for the ? the
<br />W's to the um
<br />Minimum Royalty R? &e Year period sba1I be equal to the
<br />Ya1tS' and site lfioductiox, Royalty, respective>}y, for the preoe ' five
<br />period rmultiplied by a f action the numerator of which shall be the I'mdueer Pece Judea for
<br />Non Metallic Min? Commodity Code 13, as published by the United Stales ]Department
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