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6. Irrespective of any quantities of coal which may be mined, the <br /> finalized agreement, in addition to providing a royalty interest of not <br /> less than eight percent (8$), shall obligate the Lessee to pay a fixed <br /> minimum annual payment of Fifty Thousand Dollars ($50,000.00) to <br /> Lessor, which annual payment shall be a minimum guarantee against <br /> royalties to be paid under the contract and which shall be <br /> non-cumulative, from year to year. For example, during the first year <br /> of operations, the Lessee shall be obligated to pay $50,000.00 and shall <br /> thereafter .be obligated to pay additional sums when the royalties to <br /> which Lessor is entitled under the finalized lease agreement exceed the <br /> sum of $50,000.00 previously paid. Should Lessee pay to Lessor an <br /> amount well in excess of $50,000.00 during the first year of the <br /> agreement, Lessee shall nevertheless be obligated to pay Lessor the <br /> minimum annual guarantee of $50,000.00 during the second year, <br /> irrespective of royalties that otherwise might be payable during the <br /> second year. <br /> Assuming the foregoing matters are contained within a finalized <br /> agreement and that the remaining terms and provisions of said agreement are <br /> acceptable to Lessor, Lessor does hereby express its intent to lease the real <br /> property described on Exhibit "A" hereto attached to Lessee for a period of <br /> five (5) years. <br /> IN WITNESS WHEREOF, this Letter of Intent has been executed the day <br /> and year first above-written. <br /> GILBERT C. VAN CAMP, JR. <br /> ADMINISTRATIVE TRUST <br /> e gin, Co-Trustee <br /> Fred Fox, Jr. , - rustee <br /> State of California ) <br /> ss. <br /> County of ) <br /> The foregoing Letter of Intent was executed and acknowledged before <br /> me this :;;.,)_ day of 1989 by Zane J. Lubin and Fred Fox, <br /> Jr. , as Co-Trustees of the Gilr t C. VanCamp, Jr. Administrative Trust. <br /> -2- <br />