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C. Advance Minimum Royalties. <br />i, Prior to obtaining Permits, if the Company extends the Lease for a <br />thirdLease Year and, if necessary a fourth Lease Year, in addition to the annual rental paid pursuant <br />to Paragraph 4.A for those Lease years, the Company shall also pay, at the time of payment of the <br />rental, an Advance Minimum Royalty of ? for the Lease Year. <br />ii. In addition to any Advance Minimum Royalty paid pursuant to <br />Paragraph 4.C.i, Advance Minimum Royalty shall be paid annually at -the rate ofd for each <br />Lease Year, commencing the earlier of. <br />a. The date all necessary Permits that alloy the Company to <br />begin production and sale of Materials have been obtained and prior to the <br />commencement ofproduction and sale of Materials fiotn the Property, in which case <br />the first Advance Minimum Royalty shall be prorated based on date Company <br />obtains all necessary Permits, or <br />b. . The commencement of the fifth .Lease Year if the Company <br />has not terminated the Lease. <br />iii. The Advance Minimum Royalty shall be increased to tlxe rate of <br />per Lease Year for each Lease Year: <br />a. That begins after the commencement ofproduction and We of <br />Materials from the Property, or <br />b. Commencing the sixth Lease Year if production has not yet <br />commenced and Company has not terminated the Lease. <br />iii. Other than the payment made upon execution of this Lease and any <br />annual payment pursuant to Paragraph 4.A, above, all annual payments made to keep the Lease in <br />effect shall be deemed Advance Minimum Royalty recoverable against Sales Royalty as provided <br />below in this Paragraph.; however no Advance Minimum Royalty shall be refundable once paid. <br />iv. The cumulative amount of Advance Minimurn Royalty the Company is <br />required to pay during the Term of this Lease shall in no event exceed the lesser of. <br />a. ; or <br />b, the equivalent of the Sales Royalty (using the Base Royalty rate) on ' <br />SW of the mineable and pennitted quantity of the Materials that the Company <br />determines are economically recoverable and salable from the Property (after <br />processing and allowing for rejection of tailings), based upon calculations in <br />accordance with recognized industry standards and practices. if the base volume of <br />