Common use of Development Clause in Contracts

Development. All development shall be done in such a manner as to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises into a viable mine and will reasonably mine the Materials in such a manner as is consistent with generally accepted mining practice. Neither rentals nor Royalties paid or to be paid hereunder shall relieve Lessee from any of the obligations herein expressed. Specific examples of compliance with the above include, but are not limited to: (a) Lessee agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will not be allowed to become a hazard to persons or livestock; (c) Lessee agrees to mine the Materials in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; (d) Lessee will carry on all operations on the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C of this Lease, all Materials produced by Lessee from the Leased Premises that cannot be so marketed (herein called “Waste Materials”) will be used to fill the pits and excavations on the Leased Premises and no Royalty shall be due thereon at that time. No other use of these Waste Materials or any Materials is allowed unless Lessee obtains Lessor’s prior written consent to such other use. However, should another use of the Materials be permitted, Royalty shall be due for these used Materials in accordance with Sections 3 and 6.C of this Lease Agreement and, should another use of the Waste Materials be permitted, the Waste Material royalty exception of this subsection shall not apply and Royalty shall be due for these used Waste Materials in accordance with Sections 3 and 6.C of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketable, then Lessee will (1) process, make marketable and market those former Waste Materials as set out in Section 6.C of this Lease Agreement and (2) pay Royalty thereon in accordance with Sections 3 and 6.C of this Lease Agreement. Lessor reserves the title to all minerals contained in these Waste Materials both during the term of this Lease Agreement, and upon the expiration, surrender, or termination of this Lease Agreement. Nothing in this section shall be construed to give Lessee the right to sell or otherwise dispose of minerals or substances other than Materials.

Development. All development shall be done in such a manner as to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises into a viable mine and will reasonably mine the Materials in such a manner as is consistent with generally accepted mining practice. Neither rentals nor Royalties paid or to be paid hereunder shall relieve Lessee from any of the obligations herein expressed. Specific examples of compliance with the above include, but are not limited to: (a) Lessee agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will not be allowed to become a hazard to persons or livestock; (c) Lessee agrees to mine the Materials in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; (d) Lessee will carry on all operations on the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C of this Lease, all Materials produced by Lessee from the Leased Premises that cannot be so marketed (herein called “Waste Materials”) will be used to fill the pits and excavations on the Leased Premises and no Royalty shall be due thereon at that time. No other use of these Waste Materials or any Materials is allowed unless Lessee obtains Lessor’s prior written consent to such other use. However, should another use of the Materials be permitted, Royalty shall be due for these used Materials in accordance with Sections 3 and 6.C of this Lease Agreement and, should another use of the Waste Materials be permitted, the Waste Material royalty exception of this subsection shall not apply and Royalty shall be due for these used Waste Materials in accordance with Sections 3 and 6.C 6.0 of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketable, then Lessee will (1) process, make marketable and market those former Waste Materials as set out in Section 6.C of this Lease Agreement and (2) pay Royalty thereon in accordance with Sections 3 and 6.C of this Lease Agreement. Lessor reserves the title to all minerals contained in these Waste Materials both during the term of this Lease Agreement, and upon the expiration, surrender, or termination of this Lease Agreement. Nothing in this section shall be construed to give Lessee the right to sell or otherwise dispose of minerals or substances other than Materials.

Development. All development shall be done in such a manner as to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises into a viable mine and will reasonably mine the Materials in such a manner as is consistent with generally accepted mining practice. Neither rentals nor Royalties paid or to be paid hereunder shall relieve Lessee from any of the obligations herein expressed. Specific examples of compliance with the above include, but are not limited to: (a) Lessee agrees Resonant and Skyworks shall each diligently perform the actions and tasks assigned to slope them respectively, and substantially on the sides schedule set forth on Exhibit A attached hereto. The schedule will commence on the earlier of all surface pitsOctober 1, excavations 2013 or as soon as practicable following the closing of Resonant’s private financing. If Resonant and subsidence areas Skyworks mutually agree, they may execute Statements of Work (each an “SOW”) to further supplement Exhibit A, including to describe (i) contributions of Proprietary Technology and other resources by each of Skyworks and Resonant; (ii) adjustments to the anticipated timing for completion of each milestone set forth on Exhibit A (each, a “Milestone”); (iii) adjustments to specifications and/or acceptance criteria for the Duplexer to be developed in connection with such Milestone; (iv) additional Milestones; and (v) any adjustments to funding commitments related to the Development Project set forth on Exhibit B. However, no such additional SOW is required or a manner consistent with good mining practices. Such sloping is condition to become the obligations in this Agreement or as a normal part condition to commencement of the operation;Development Project, unless agreed mutually in an SOW. If an SOW is entered, each such SOW shall automatically be deemed attached to this Agreement as a supplement to Exhibit A upon execution thereof by Skyworks and Resonant without additional action required. Any such mutually executed SOW shall govern such aspects of the development process as specified therein and shall, to the extent stated expressly therein, supersede and replace specified terms of Exhibit A. Any amendments or revisions to any SOW that may be entered shall be mutually agreed to by the parties to the SOW in writing. (b) Whenever practicableEach of the parties agrees to be responsible for its own costs relating to its negotiation of and performance under this Agreement, all surface pits, excavations and subsidence areas will not except as may be allowed expressly set forth in a mutually agreed to become a hazard to persons or livestock;SOW. (c) Lessee agrees to mine the Materials in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; Within five (d5) Lessee will carry on all operations on the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C days following execution of this LeaseAgreement, all Materials produced by Lessee from the Leased Premises that cannot be so marketed (herein called “Waste Materials”) will be used to fill the pits Resonant and excavations on the Leased Premises and Skyworks shall each identify no Royalty shall be due thereon at that time. No other use of these Waste Materials or any Materials is allowed unless Lessee obtains Lessor’s prior written consent to such other use. However, should another use of the Materials be permitted, Royalty shall be due for these used Materials in accordance with Sections 3 and 6.C of this Lease Agreement and, should another use of the Waste Materials be permitted, the Waste Material royalty exception of this subsection shall not apply and Royalty shall be due for these used Waste Materials in accordance with Sections 3 and 6.C of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketable, then Lessee will (1) process, make marketable and market those former Waste Materials as set out in Section 6.C of this Lease Agreement and less than two (2) pay Royalty thereon representatives who will be dedicated to the Development Project (the “Development Team”). Personnel comprising the Development Team shall have the requisite knowledge and expertise necessary to carry out the respective obligations of the parties on Exhibit A and be reasonably familiar with the technology to be used in accordance with Sections 3 and 6.C connection therewith. Any party can change its members of the Development Team upon written notice to the other party so long as such new personnel meet the requirements of this Lease Agreement. Lessor reserves the title to all minerals contained in these Waste Materials both during the term of this Lease Agreement, and upon the expiration, surrender, or termination of this Lease Agreement. Nothing in this section shall be construed to give Lessee the right to sell or otherwise dispose of minerals or substances other than Materialssub-paragraph 2(c).

Development. All development shall be done conducted in such a manner as to reasonably prevent the pollution of potable or fresh water and in such a manner as not to unduly damage the environment, including water, soil, and air. Lessee will reasonably and diligently develop portion of the Leased Premises into a viable mine and will reasonably mine the Materials where there are no mining or sand processing operations. Lessee agrees to conduct all operations in such a manner as is consistent with generally accepted good mining practicepractices and in accordance with all applicable rules and regulations. Neither rentals property damage fees, royalties nor Royalties other amounts paid or to be paid to Lessor hereunder shall relieve Lessee from any of the obligations herein expressed. Specific examples of compliance with Lessee in conducting its operations on the above include, but are not limited toLeased Premises shall observe the following: (a) Lessee agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practicespractice typical of a .5:1 slope. Such sloping is to become be a normal part of the operation;. (b) Whenever practicable, all surface pits, excavations and subsidence areas will not shall be allowed fenced to become a reduce the hazard to persons or livestock; (c) . Lessee agrees to mine the Materials in such a manner so as to leave as much level surface as is reasonable reasonably possible and consistent with prevailing good mining practices;. (dc) Lessee will carry on all operations on the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C of this Lease, all Materials produced All Waste mined by Lessee from the Leased Premises that cannot be so marketed (herein called “Waste Materials”) will may be used for reclamation of the Leased Premises and to fill the pits pits, shafts and excavations on the Leased Premises and no Royalty royalty shall be due thereon at that timethereon. (d) Lessee shall have the right to cut and/or remove all trees, growth, undergrowth and other obstructions that, in Lessee’s judgment, may injure, endanger, or interfere with the exercise by Lessee of the rights and privileges granted to it under this Lease, and Lessee shall not be required to reimburse Lessor for such action. No Lessee shall be responsible to Lessor for any trees cut or damaged or other use of these Waste Materials or any Materials is allowed unless Lessee obtains surface damages outside the Leased Premises if done without Lessor’s prior written consent consent. It shall be the responsibility of Lessee to such remove from the Leased Premises all cut trees, growth, undergrowth, stumps, rocks, and other obstructions. Lessee shall give Lessor sixty (60) days written notice of its intent to clear the surface of proposed mine areas so that Lessor, at Lessor’s sole option, may remove any trees Lessor deems usable for its use. HoweverNotwithstanding the foregoing, should another use Lessor’s clearing activities may not hinder the timely exercise of the Materials be permitted, Royalty shall be due for these used Materials Lessee’s rights under this Lease. (e) The Lessee expressly agrees to dispose of all tailings and other mining wastes in accordance with Sections 3 applicable laws and 6.C shall, within twelve (12) months after the final termination of this Lease Agreement andLease, should another use reclaim all of the Waste Materials be permitted, the Waste Material royalty exception disturbed perimeter portions of this subsection shall not apply and Royalty any lakes created by mining such that those perimeter portions shall be due for these used Waste Materials left at a slope no steeper than two feet horizontal to one foot vertical. (f) Lessee shall place gates as necessary, at Lessee’s cost, in any fence opening created by Lessee on the Leased Premises and shall replace or repair any existing fence cut, removed, or otherwise damaged by Lessee. All fences and gates shall be constructed by Lessee in accordance with Sections 3 then applicable recommended practice standards of the Natural Resources Conservation Services (“NRCS”) or its successor agency. (g) Lessee shall be liable for all damage to personal property and 6.C livestock suffered by Lessor, its invitees, tenants or lessees as a result of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketableactivities by Lessee, then Lessee will (1) processits employees, make marketable and market those former Waste Materials as set out in Section 6.C of this Lease Agreement and (2) pay Royalty thereon in accordance with Sections 3 and 6.C of this Lease Agreement. Lessor reserves the title to all minerals contained in these Waste Materials both during the term of this Lease Agreement, and upon the expiration, surrendercontractors, or termination of this Lease Agreementagents both on the Lessor’s property or adjacent owners’ property. Nothing in this section Lessee shall be construed liable for injury or death, including any liability to give third parties, caused from livestock exiting Lessor’s property through open gates or downed gates or fences caused by Lessee or its contractors. (h) Lessee shall fence off areas of active Mining Operations to allow Lessor the right ability to sell or otherwise dispose run cattle in the adjacent areas. Fences shall be constructed using T-posts with 5 stands of minerals or substances other than Materialsbarbed wire and with adequate corner bracing.

Development. All i. Purchaser shall not conduct any development study in relation to the Licensed Products without the prior written approval of Spectrum, such approval not to be unreasonably withheld, conditioned or delayed. If Purchaser wishes to conduct a development study for the Licensed Products (the “Proposed Study”), Purchaser shall present to Spectrum the proposed design, timelines and budget of the Proposed Study. Within [***] days after receipt of such proposal, Spectrum shall, in its sole discretion, and as its sole option in respect of a Proposed Study, either (i) approve the Proposed Study for conduct solely by Purchaser, (ii) wish to cooperate in such Proposed Study and the parties will agree in writing on the terms under which they will cooperate in the Proposed Study, or (iii) reject the Proposed Study, if Spectrum reasonably believes that the Proposed Study is likely to create a Material Impact in the Spectrum Territory, provided, if Spectrum fails to respond to Purchaser within such [***] day period, Purchaser shall be done permitted to conduct such Proposed Study in such its sole discretion. ii. Notwithstanding anything to the contrary in this Agreement, Spectrum shall be entitled to conduct any development studies in relation to the Licensed Products in the Licensed Territory and Purchaser shall be entitled to conduct Spectrum-approved Proposed Studies in Spectrum Territory. iii. Notwithstanding anything to the contrary in Section 2.6(i), and subject always to the provisions of this Section 2.6(iii), Purchaser shall be entitled to conduct any development studies in relation to the Licensed Products in Japan, which are required to obtain or maintain regulatory approvals for existing or additional indications in Japan (the “Japan Proposed Study”) without the prior approval of Spectrum. If Purchaser wishes to conduct a manner as Japan Proposed Study, Purchaser shall present to reasonably prevent Spectrum the pollution proposed design, timelines and budget of the environmentJapan Proposed Study. Within [***] days after receipt of such proposal, including waterSpectrum shall notify Purchaser if Spectrum reasonably believes that the Japan Proposed Study is likely to create a Material Impact in the Spectrum Territory; provided, soilhowever, if Purchaser requires a response from Spectrum within a shorter period of time due to the requirements of a Governmental Authority in Japan, Purchaser shall immediately notify Spectrum of such requirement and air. Lessee will reasonably and diligently develop Spectrum shall provide the Leased Premises into a viable mine and will reasonably mine the Materials foregoing Material Impact notice to Purchaser as soon as practicable, but in such a manner as is consistent with generally accepted mining practice. Neither rentals nor Royalties paid or any event within [***] days of Purchaser’s notification to be paid hereunder shall relieve Lessee from any Spectrum of the obligations herein expressed. Specific examples requirements of compliance with the above includesuch Governmental Authority in Japan, but are provided, further, if Spectrum fails to respond to Purchaser within such [***] day period (or such shorter period not limited to: (a) Lessee agrees to slope the sides of all surface pitsexceed [***] days if so required by a Governmental Authority), excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will not be allowed to become a hazard to persons or livestock; (c) Lessee agrees to mine the Materials in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; (d) Lessee will carry on all operations on the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C of this Lease, all Materials produced by Lessee from the Leased Premises that cannot be so marketed (herein called “Waste Materials”) will be used to fill the pits and excavations on the Leased Premises and no Royalty Purchaser shall be due thereon at that timepermitted to conduct such Japan Proposed Study in its sole discretion. No other use If Spectrum responds to Purchaser within the specified period of these Waste Materials or any Materials is allowed unless Lessee obtains Lessortime and Purchaser agrees with Spectrum’s prior written consent to such other usebelief, Purchaser shall not commence the Japan Proposed Study. HoweverIf Purchaser does not agree with Spectrum’s belief, should another use of the Materials be permitted, Royalty matter shall be due for these used Materials settled in accordance with Sections 3 Section 16.10 and 6.C of this Lease Agreement andPurchaser shall not commence the Japan Proposed Study until such matter is settled in Purchaser’s favor; provided, should another use however, if Spectrum notifies Purchaser that a Japan Proposed Study would create a Material Impact in the Spectrum Territory, but such Japan Proposed Study is required by the appropriate Regulatory Authority in Japan (pursuant to the “Non-Approved Drug for Medical Unmet Needs” (Mishonin Yaku) regulations in Japan) in order to maintain the regulatory approvals, or obtain any required additional regulatory approvals, for the Licensed Products in Japan, then Purchaser shall notify Spectrum of the Waste Materials be permitted, necessity of such Japan Proposed Study and Spectrum shall either (i) permit Purchaser to conduct such Japan Proposed Study without resorting to the Waste Material royalty exception of this subsection shall not apply and Royalty shall be due for these used Waste Materials in accordance with Sections 3 and 6.C of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketable, then Lessee will (1) process, make marketable and market those former Waste Materials as dispute resolution procedures set out forth in Section 6.C 16.10 or (ii) maintain its position that such Japan Proposed Study will create a Material Impact in the Spectrum Territory, thereby preventing Purchaser from conducting such Japan Proposed Study, in which case Purchaser and Spectrum will meet and confer in good faith, reasonably promptly, to address the situation. Spectrum shall notify Purchaser of this Lease Agreement its decision with respect to subsections (i) and (2ii) pay Royalty thereon of the preceding sentence within [***] days of Spectrum’s receipt of notice from Purchaser that such Japan Proposed Study is required by the appropriate Regulatory Authority in accordance with Sections 3 and 6.C of this Lease Agreement. Lessor reserves the title Japan in order to all minerals contained in these Waste Materials both during the term of this Lease Agreement, and upon the expiration, surrender, maintain regulatory approval or termination of this Lease Agreement. Nothing in this section shall be construed to give Lessee the right to sell or otherwise dispose of minerals or substances other than Materialsobtain any required additional regulatory approval.

Development. All development shall be done in such a manner as Subject to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises into a viable mine and will reasonably mine the Materials in such a manner as is consistent with generally accepted mining practice. Neither rentals nor Royalties paid or to be paid hereunder shall relieve Lessee from any of the obligations herein expressed. Specific examples of compliance with the above include, but are not limited to: (a) Lessee agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will not be allowed to become a hazard to persons or livestock; (c) Lessee agrees to mine the Materials in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; (d) Lessee will carry on all operations on the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C any applicable provisions of this Lease, all Materials produced by Lessee from Tenant and those claiming under it may perform any lawful Construction on the Leased Premises without the consent of Landlord. Without limiting the foregoing, the Concept Plan is a conceptual plan for the Premises and includes presently proposed phases, presently anticipated time frames for development, and the presently proposed uses of the Project. Tenant and Landlord recognize and agree that canexcept for the Park Property, the location and boundaries of which shall not be so marketed (herein called “Waste Materials”) will be used to fill changed without the pits and excavations on the Leased Premises and no Royalty shall be due thereon at that time. No other use of these Waste Materials or any Materials is allowed unless Lessee obtains Lessor’s prior written consent of Landlord, the Development plan for the Premises will change over time based on market conditions and needs, and that Tenant requires the flexibility to react to those changing conditions in a prompt and timely fashion. Thus, this Concept Plan should be considered a general guideline for the Development of the Premises, which Tenant may modify from time to time in its sole discretion, except as provided above as to the Park Property. Likewise, the projected time frames and sequence of Development is totally market driven and, therefore, such other usetime frames and sequencing are merely aspirational goals and may be changed from time to time by Tenant in its sole discretion. However, should another use notwithstanding anything to the contrary in this Lease, Tenant shall cause the timely completion of (a) the Initial Development, (b) the Second Stage Development, and (c) the Third Stage Development, in each case subject to extension by reason of Unavoidable Delay (collectively, "Tenant’s Construction Obligations"), and no change in the Concept Plan shall be deemed to change the requirements included in Tenant’s Construction Obligations. In the event there is no construction on an undeveloped portion of the Materials be permittedPremises for a period of five (5) consecutive Lease Years, Royalty the Tenant agrees to close and secure that portion of the Premises on which no construction activity is taking place until such time as construction commences thereon. Notwithstanding anything to the contrary in this Lease, any breach of Tenant’s Construction Obligations as set forth in the immediately preceding subsections (a) and (b) shall become an Event of Default if not cured within ninety (90) days of Notice from Landlord of same, subject to Unavoidable Delay. A projected schedule of values and projected timeline for the Initial Development is set forth on Exhibit D-1 and is more specifically described on Exhibit D-2 attached hereto. All Construction at the Premises shall be due performed in a good and workmanlike manner. Tenant shall Notify Landlord of all material changes to the Concept Plan. Tenant shall not be in default of the requirements regarding good and workmanlike construction, required notification of changes in the Concept Plan or compliance with values and timelines set forth in Exhibits D-1 and D-2 until it has received a Notice of Default and the opportunity to cure that is afforded Tenant in the definition of Delay Fee under this Lease, and thereafter Landlord's sole remedies for these used Materials in accordance with Sections 3 and 6.C breach of this Lease Agreement andobligation shall, should another use subject to Section 23.1.8, be limited to specific performance and/or payment of the Waste Materials be permittedDelay Fee, and Tenant waives all defenses, except the Waste Material royalty exception defenses of performance and Unavoidable Delay, in any action for specific performance brought by Landlord to enforce its rights under this subsection Section. The foregoing shall not apply be deemed to limit in any way the regulatory requirements, Approvals or processes required by Law for Construction. Tenant agrees to seek any necessary Approvals from Landlord, acting in its governmental capacity, and Royalty agrees that such Applications shall be due for these used Waste Materials in accordance consistent with Sections 3 and 6.C of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketablethe Concept Plan, then Lessee will (1) process, make marketable and market those former Waste Materials as set out in Section 6.C of this Lease Agreement and (2) pay Royalty thereon in accordance with Sections 3 and 6.C of this Lease Agreement. Lessor reserves the title to all minerals contained in these Waste Materials both during the term of this Lease Agreement, and upon the expiration, surrender, or termination of this Lease Agreement. Nothing in this section shall be construed to give Lessee the right to sell or otherwise dispose of minerals or substances other than Materialsamended.

Development. All development Tenant and those claiming under it may perform any lawful Construction on the Premises without the consent of Landlord. Without limiting the foregoing, the Concept Plan is a conceptual plan for the Premises and includes presently proposed phases, presently anticipated time frames for development, and the presently proposed uses of the Project. Tenant and Landlord recognize and agree that except for the Park Property, which shall not be done relocated or otherwise changed without the prior written consent of Landlord, the Development plan for the Premises will change over time based on market conditions and needs, and that Tenant requires the flexibility to react to those changing conditions in such a manner prompt and timely fashion. Thus, this Concept Plan should be considered a general guideline for the Development of the Premises, which Tenant may modify from time to time in its sole discretion, except as to reasonably prevent the pollution Park Property. Likewise, the projected time frames and sequence of Development is totally market driven and, therefore, such time frames and sequencing are merely aspirational goals and may be changed from time to time by Tenant in its sole discretion. However, notwithstanding anything to the environmentcontrary in this Lease, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises into a viable mine and will reasonably mine the Materials in such a manner as is consistent with generally accepted mining practice. Neither rentals nor Royalties paid or to be paid hereunder Tenant shall relieve Lessee from any of the obligations herein expressed. Specific examples of compliance with the above include, but are not limited to: cause (a) Lessee agrees the Initial Development to slope be Substantially Completed on or before the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part fifth (5th) anniversary of the operation; Commencement Date and (b) Whenever practicablethe Second Stage Development to be Substantially Completed on or before the seventh (7th) anniversary of the Commencement Date, all surface pitsin each case subject to extension by reason of Unavoidable Delay (together, excavations “Tenant’s Construction Obligations”), and subsidence areas no change in the Concept Plan shall change the requirements included in Tenant’s Construction Obligations.. No improvements included in the Initial Development will not be allowed included in the calculation of the Second Stage Development. Notwithstanding anything to become a hazard to persons or livestock; (c) Lessee agrees to mine the Materials contrary in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; (d) Lessee will carry on all operations on the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C of this Lease, any breach of Tenant’s Construction Obligations as set forth in the immediately preceding subsections (a) and (b) shall become an Event of Default if not cured within ninety (90) days of Notice from Landlord of same. All Construction at the Premises shall be performed in a good and workmanlike manner. Tenant shall Notify Landlord of all Materials produced by Lessee from material changes to the Leased Premises that canConcept Plan. Tenant shall not be so marketed (herein called “Waste Materials”) will be used to fill in default of the pits requirements regarding good and excavations workmanlike construction and required notification of changes in the Concept Plan until it has received a Minor Default Notice which includes, in all capital and bold letters, in a size no smaller than the largest print on the Leased Premises Minor Default Notice , the following legend: "FAILURE TO TIMELY TAKE ACTION MAY RESULT IN ENFORCEMENT ACTION” and no Royalty the opportunity to cure that is afforded Tenant in the definition of Delay Fee under this Lease, and thereafter Landlord's sole remedies for breach of this obligation shall be due thereon at that time. No other use of these Waste Materials or any Materials is allowed unless Lessee obtains Lessor’s prior written consent limited to such other use. However, should another use specific performance and/or payment of the Materials Delay Fee, and Tenant waives all defenses, except defense of performance, in any action brought by Landlord to enforce its rights under this Section. The foregoing shall not be permitteddeemed to limit in any way the regulatory requirements, Royalty Approvals or processes required by Law for Construction. Tenant agrees to seek any necessary Approvals from Landlord, acting in its governmental capacity, and agrees that such Applications shall be due for these used Materials in accordance consistent with Sections 3 and 6.C of this Lease Agreement andthe Concept Plan, should another use of the Waste Materials be permitted, the Waste Material royalty exception of this subsection shall not apply and Royalty shall be due for these used Waste Materials in accordance with Sections 3 and 6.C of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketable, then Lessee will (1) process, make marketable and market those former Waste Materials as set out in Section 6.C of this Lease Agreement and (2) pay Royalty thereon in accordance with Sections 3 and 6.C of this Lease Agreement. Lessor reserves the title to all minerals contained in these Waste Materials both during the term of this Lease Agreement, and upon the expiration, surrender, or termination of this Lease Agreement. Nothing in this section shall be construed to give Lessee the right to sell or otherwise dispose of minerals or substances other than Materialsamended.

Development. All development shall be done in such a manner as to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and LESSEE agrees to diligently develop the Leased Premises leased premises into a viable mine and will reasonably to mine the Materials leased minerals in such a manner as is consistent with generally accepted good mining practicepractice including, but not limited to, in a manner consistent with General Land Office and Railroad Commission rules and regulations. Neither bonus, rentals nor Royalties royalties paid or to be paid hereunder shall relieve Lessee the LESSEE from any of the obligations herein expressed. Such methods of mining must be used as will insure the extraction of the greatest possible amounts of the leased minerals consistent with prevailing good mining practice. Specific examples of compliance with the above include, but are not limited to: (a) Lessee ▇▇▇▇▇▇ agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will shall not be allowed to become a hazard to persons or livestock; (c) Lessee ▇▇▇▇▇▇ agrees to mine the Materials leased minerals in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; (d) Lessee will carry on In underground workings, all operations on shafts, inclines, and drifts must be adequately supported and all parts of workings, where minerals commercially minable are not exhausted, shall be kept free from water and waste materials to the Leased Premises in a workmanlike mannerextent reasonably possible; (e) Lessee will maintain adequate gates Underground workings are to be protected against fire, floods, creeps and cattle guards where Lessee crosses existing fences squeezes. If such events do occur, they shall be checked by LESSEE to the extent and in a manner which is in keeping with Lessee’s operationsgood methods of mining; (f) Lessee will dump If relevant, LESSEE shall take all steps a reasonably prudent operator would take to adequately protect the waste material taken leased minerals from the Leased Premises drainage by Lessee’s operations hereunder into pits on other lands or excavations made this lease shall be subject to forfeiture by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possibleCOMMISSIONER; and (g) As governed by the duties and standards set out in Section 6.C 7 of this Leaselease, all Materials leased minerals produced by Lessee LESSEE from the Leased Premises leased premises that cannot be so marketed (herein called “Waste Materialswaste materials”) will be used to fill the pits pits, shafts and excavations on the Leased Premises leased premises and no Royalty royalty shall be due thereon at that time. No other use of these Waste Materials waste materials or any Materials leased mineral is allowed unless Lessee the LESSEE obtains Lessorthe COMMISSIONER’s prior written consent to such other use. However, should another use of the Materials leased minerals be permitted, Royalty royalty shall be due for these used Materials leased minerals in accordance with Sections 3 7 and 6.C 8 of this Lease Agreement lease and, should another use of the Waste Materials waste materials be permitted, the Waste Material waste material royalty exception of this subsection shall not apply and Royalty royalty shall be due for these used Waste Materials waste materials in accordance with Sections 3 sections 7 and 6.C 8 of this Lease Agreementlease. The LESSEE’s duty regarding the leased minerals as set out in Section 7 of this lease is a continuing duty. Should changing technology or market conditions render any component of former Waste Materials profitably waste materials marketable, then Lessee will LESSEE shall (1) process, make marketable and market those former Waste Materials waste materials as set out in Section 6.C 7 of this Lease Agreement lease and (2) pay Royalty royalty thereon in accordance with Sections 3 7 and 6.C 8 of this Lease Agreementlease. Lessor The state reserves the title to all minerals contained in these Waste Materials waste materials both during the term of this Lease Agreementlease, subject to ▇▇▇▇▇▇’s duty set out above, and upon the expiration, surrender, or termination of this Lease Agreementlease. Nothing in this section shall be construed to give Lessee LESSEE the right to sell or otherwise dispose of minerals or substances other than Materialsthose covered hereby. In the event LESSEE, in the interest of economy or efficiency of mining operations or for other valid reasons, intends to conduct mining operations on or within the leased premises in conjunction with mining operations on or within any other land (whether state or privately owned), for example by commingling production, then prior thereto LESSEE must obtain the COMMISSIONER’s approval of such plan of operations.

Development. All development shall be done in such a manner as to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and LESSEE agrees to diligently develop the Leased Premises leased premises into a viable mine and will reasonably to mine the Materials leased minerals in such a manner as is consistent with generally accepted good mining practicepractice including, but not limited to, in a manner consistent with General Land Office and Railroad Commission rules and regulations. Neither bonus, rentals nor Royalties royalties paid or to be paid hereunder shall relieve Lessee the LESSEE from any of the obligations herein expressed. Such methods of mining must be used as will insure the extraction of the greatest possible amounts of the leased minerals consistent with prevailing good mining practice. Specific examples of compliance with the above include, but are not limited to: (a) Lessee ▇▇▇▇▇▇ agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will shall not be allowed to become a hazard to persons or livestock; (c) Lessee ▇▇▇▇▇▇ agrees to mine the Materials leased minerals in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; (d) Lessee will carry on In underground workings, all operations on shafts, inclines, and drifts must be adequately supported and all parts of workings, where minerals commercially minable are not exhausted, shall be kept free from water and waste materials to the Leased Premises in a workmanlike mannerextent reasonably possible; (e) Lessee will maintain adequate gates Underground workings are to be protected against fire, floods, creeps and cattle guards where Lessee crosses existing fences squeezes. If such events do occur, they shall be checked by LESSEE to the extent and in a manner which is in keeping with Lessee’s operationsgood methods of mining; (f) Lessee will dump If relevant, LESSEE shall take all steps a reasonably prudent operator would take to adequately protect the waste material taken leased minerals from the Leased Premises drainage by Lessee’s operations hereunder into pits on other lands or excavations made this lease shall be subject to forfeiture by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possibleCOMMISSIONER; and (g) As governed by the duties and standards set out in Section 6.C 7 of this Leaselease, all Materials leased minerals produced by Lessee LESSEE from the Leased Premises leased premises that cannot be so marketed (herein called “Waste Materials”"waste materials") will be used to fill the pits pits, shafts and excavations on the Leased Premises leased premises and no Royalty royalty shall be due thereon at that time. No other use of these Waste Materials waste materials or any Materials leased mineral is allowed unless Lessee the LESSEE obtains Lessor’s the COMMISSIONER's prior written consent to such other use. However, should another use of the Materials leased minerals be permitted, Royalty royalty shall be due for these used Materials leased minerals in accordance with Sections 3 7 and 6.C 8 of this Lease Agreement lease and, should another use of the Waste Materials waste materials be permitted, the Waste Material waste material royalty exception of this subsection shall not apply and Royalty royalty shall be due for these used Waste Materials waste materials in accordance with Sections 3 sections 7 and 6.C 8 of this Lease Agreementlease. The LESSEE's duty regarding the leased minerals as set out in Section 7 of this lease is a continuing duty. Should changing technology or market conditions render any component of former Waste Materials profitably waste materials marketable, then Lessee will LESSEE shall (1) process, make marketable and market those former Waste Materials waste materials as set out in Section 6.C 7 of this Lease Agreement lease and (2) pay Royalty royalty thereon in accordance with Sections 3 7 and 6.C 8 of this Lease Agreementlease. Lessor The state reserves the title to all minerals contained in these Waste Materials waste materials both during the term of this Lease Agreementlease, subject to ▇▇▇▇▇▇'s duty set out above, and upon the expiration, surrender, or termination of this Lease Agreementlease. Nothing in this section shall be construed to give Lessee LESSEE the right to sell or otherwise dispose of minerals or substances other than Materialsthose covered hereby. In the event LESSEE, in the interest of economy or efficiency of mining operations or for other valid reasons, intends to conduct mining operations on or within the leased premises in conjunction with mining operations on or within any other land (whether State or privately owned), for example by commingling production, then prior thereto LESSEE must obtain the COMMISSIONER's approval of such plan of operations.

Development. All development shall be done If the leased minerals are capable of being economically produced by the LESSEE in such a manner as commercial quantities, ▇▇▇▇▇▇ agrees to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises leased premises into a viable mine and will reasonably to mine the Materials leased minerals in such a manner as is consistent with generally accepted good mining practicepractice including, but not limited to, in a manner consistent with General Land Office and Railroad Commission rules anil regulations. Neither bonus, rentals nor Royalties royalties paid or to be paid hereunder shall relieve Lessee the LESSEE from any of the obligations herein expressed. Such methods of mining must be used as will insure the extraction of the greatest possible amounts of the leased minerals consistent with prevailing good mining practice. Specific examples of compliance with the above include, but are not limited to: (a) Lessee ▇▇▇▇▇▇ agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal norn1al part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will shall not be allowed to become a hazard to persons persons, wildlife or livestock; (c) Lessee ▇▇▇▇▇▇ agrees to mine the Materials leased minerals in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices;; All development shall be done in such a manner as to prevent the pollution of water. (d) Lessee will carry on In underground workings, all operations on shafts, inclines, and drifts must be adequately supported and all parts of workings, where minerals commercially minable are not exhausted, shall be kept free from water and waste materials to the Leased Premises in a workmanlike mannerextent reasonably possible; (e) Lessee will maintain adequate gates Underground workings are to be protected against fire, floods, creeps and cattle guards where Lessee crosses existing fences squeezes. If such events do occur, they shall be checked by LESSEE to the extent and in a manner which is in keeping with Lessee’s operationsgood methods of mining; (f) Lessee will dump If relevant, LESSEE shall take all steps a reasonably prudent operator would take to adequately protect the waste material taken leased minerals from the Leased Premises drainage by Lessee’s operations hereunder into pits on other lands or excavations made this lease shall be subject to forfeiture by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possibleCOMMISSIONER; and (g) As governed by the duties and standards set out in Section 6.C 7 of this Leaselease, all Materials leased minerals produced by Lessee LESSEE from the Leased Premises leased premises that cannot be so marketed (herein called “Waste Materialswaste materials”) will be used to fill the pits pits, shafts and excavations on the Leased Premises leased premises and no Royalty royalty shall be due thereon at that time. No other use of these Waste Materials waste materials or any Materials leased mineral is allowed unless Lessee the LESSEE obtains Lessorthe COMMISSIONER’s prior written consent to such other use. However, should another use of the Materials leased minerals be permitted, Royalty royalty shall be due for these used Materials leased minerals in accordance with Sections 3 7 and 6.C 8 of this Lease Agreement lease and, should another use of the Waste Materials waste materials be permitted, the Waste Material waste material royalty exception of this subsection shall not apply and Royalty royalty shall be due for these used Waste Materials waste materials in accordance with Sections 3 sections 7 and 6.C 8 of this Lease Agreementlease. The LESSEE’s duty regarding the leased minerals as set out in Section 7 of this lease is a continuing duty. Should changing technology or market conditions render any component of former Waste Materials profitably waste materials marketable, then Lessee will LESSEE shall (1) process, make marketable and market those former Waste Materials waste materials as set out in Section 6.C 7 of this Lease Agreement lease and (2) pay Royalty royalty thereon in accordance with Sections 3 7 and 6.C 8 of this Lease Agreementlease. Lessor The state reserves the title to all minerals contained in these Waste Materials waste materials both during the term of this Lease Agreementlease, subject to ▇▇▇▇▇▇’s duty set out above, and upon the expiration, surrender, or termination of this Lease Agreementlease. Nothing in this section shall be construed to give Lessee LESSEE the right to sell or otherwise dispose of minerals or substances other than Materialsthose covered hereby. In the event LESSEE, in the interest of economy or efficiency of mining operations or for other valid reasons, intends to conduct mining operations on or within the leased premises in conjunction with mining operations on or within any other land (whether state or privately owned), for example by commingling production, then prior thereto LESSEE must obtain the COMMISSIONER’s approval of such plan of operations, which shall not unreasonably be withheld.

Development. All development shall be done in such a manner as to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and LESSEE agrees to diligently develop the Leased Premises leased premises into a viable mine and will reasonably to mine the Materials leased minerals in such a manner as is consistent with generally accepted good mining practicepractice including, but not limited to, in a manner consistent with General Land Office and Railroad Commission rules and regulations. Neither bonus, rentals nor Royalties royalties paid or to be paid hereunder shall relieve Lessee the LESSEE from any of the obligations herein expressed. Such methods of mining must be used as will insure the extraction of the greatest possible amounts of the leased minerals consistent with prevailing good mining practice. Specific examples of compliance with the above include, but are not limited to: (a) Lessee ▇▇▇▇▇▇ agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will shall not be allowed to become a hazard to persons or livestock; (c) Lessee ▇▇▇▇▇▇ agrees to mine the Materials leased minerals in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; (d) Lessee will carry on In underground workings, all operations on shafts, inclines, and drifts must be adequately supported and all parts of workings, where minerals commercially minable are not exhausted, shall be kept free from water and waste materials to the Leased Premises in a workmanlike mannerextent reasonably possible; (e) Lessee will maintain adequate gates Underground workings are to be protected against fire, floods, creeps and cattle guards where Lessee crosses existing fences squeezes. If such events do occur, they shall be checked by LESSEE to the extent and in a manner which is in keeping with Lessee’s operationsgood methods of mining; (f) Lessee will dump If relevant, LESSEE shall take all steps a reasonably prudent operator would take to adequately protect the waste material taken leased minerals from the Leased Premises drainage by Lessee’s operations hereunder into pits on other lands or excavations made this lease shall be subject to forfeiture by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possibleCOMMISSIONER; and (g) As governed by the duties and standards set out in Section 6.C 7 of this Leaselease, all Materials leased minerals produced by Lessee LESSEE from the Leased Premises leased premises that cannot be so marketed (herein called “Waste Materials”"waste materials") will be used to fill the pits pits, shafts and excavations on the Leased Premises leased premises and no Royalty royalty shall be due thereon at that time. No other use of these Waste Materials waste materials or any Materials leased mineral is allowed unless Lessee the LESSEE obtains Lessor’s the COMMISSIONER's prior written consent to such other use. However, should another use of the Materials leased minerals be permitted, Royalty royalty shall be due for these used Materials leased minerals in accordance with Sections 3 7 and 6.C 8 of this Lease Agreement lease and, should another use of the Waste Materials waste materials be permitted, the Waste Material waste material royalty exception of this subsection shall not apply and Royalty royalty shall be due for these used Waste Materials waste materials in accordance with Sections 3 sections 7 and 6.C 8 of this Lease Agreementlease. The LESSEE's duty regarding the leased minerals as set out in Section 7 of this lease is a continuing duty. Should changing technology or market conditions render any component of former Waste Materials profitably waste materials marketable, then Lessee will LESSEE shall (1) process, make marketable and market those former Waste Materials waste materials as set out in Section 6.C 7 of this Lease Agreement lease and (2) pay Royalty royalty thereon in accordance with Sections 3 7 and 6.C 8 of this Lease Agreementlease. Lessor The state reserves the title to all minerals contained in these Waste Materials waste materials both during the term of this Lease Agreementlease, subject to ▇▇▇▇▇▇'s duty set out above, and upon the expiration, surrender, or termination of this Lease Agreementlease. Nothing in this section shall be construed to give Lessee LESSEE the right to sell or otherwise dispose of minerals or substances other than Materialsthose covered hereby. In the event LESSEE, in the interest of economy or efficiency of mining operations or for other valid reasons, intends to conduct mining operations on or within the leased premises in conjunction with mining operations on or within any other land (whether state or privately owned), for example by commingling production, then prior thereto LESSEE must obtain the COMMISSIONER's approval of such plan of operations.

Development. All development shall be done in such a manner as to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises into a viable mine and will reasonably mine the Materials in such a manner as is consistent with generally accepted mining practice. Neither rentals nor Royalties paid or to be paid hereunder shall relieve Lessee from any of the obligations herein expressed. Specific examples of compliance with the above include, but are not limited to:3.1 Sole Development Compounds (a) Lessee agrees Disclosure and Assistance For Sole Development Compounds. Promptly following the designation of a Development Compound as to slope which PTI does not exercise the sides Co-Development Option under Section 5.1 or as to which PTI had exercised the Co-Development Option under Section 5.1, but then exercises the Phase II PTI Co-Development Termination Option under Section 5.3 (each a “Sole Development Compound”), PTI will provide reasonable assistance to Biogen Idec with respect to the use and practice of all surface pitsLicensed Technology related to each such Sole Development Compound, excavations and subsidence areas in a manner consistent with good mining practicesto the extent PTI has not already done so. Such sloping is Without limiting the foregoing, PTI will (a) disclose to become a normal part Biogen Idec within [***] of the operation;date on which Biogen Idec designates a Sole Development Compound all items of Licensed Technology related to such Sole Development Compound that exist in tangible form or in writing (including electronic media) and were not previously disclosed to Biogen Idec hereunder and (b) make its personnel reasonably available to provide answers to Biogen Idec’s questions during normal business hours, to assist Biogen Idec in understanding and implementing such Licensed Technology in order for Biogen Idec to commence or continue the Development of such Sole Development Compound as contemplated in this Agreement. CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. Execution Version (b) Whenever practicableDiligence. Biogen Idec agrees to use Commercially Reasonable Efforts, and will cause its Sublicensees to use Commercially Reasonable Efforts, to initiate and pursue the Development of, and seek Regulatory Approval for, at least one (1) Licensed Product for each Sole Development Compound designated under Section 2.5(b) (other than Development Compounds designated by Biogen Idec as Back-Up Compounds) and Section 3.1(a), in at least one (1) Indication in all surface pits, excavations and subsidence areas will not be allowed to become a hazard to persons or livestock;Major Market Countries. (c) Lessee agrees Responsibility for Development of Sole Development Compounds and Sole Licensed Products. Biogen Idec will use Commercially Reasonable Efforts to mine initiate or continue Development of any Sole Development Compound promptly upon its designation, and will inform PTI of the Materials time it so initiates Development and of the Indication for which such Licensed Product is being Developed, each of which will be deemed Confidential Information of Biogen Idec. Biogen Idec will have the sole right and responsibility for, and will have full control and authority over, at its sole cost and expense, the Development of Sole Development Compounds and Licensed Products containing or consisting of each such Sole Development Compound (each a “Sole Licensed Product”), including making all strategic and tactical decisions with respect thereto, conducting all Development activities and establishing the methods and means by which it performs such activities under this Agreement. Biogen Idec may, in its sole discretion, delegate any work performed on Development of such a manner as Sole Licensed Product to leave as much level surface as is reasonable any of its Collaborators, or to any other Third Party consultants, clinical investigators and consistent service providers, in each case by way of agreements having terms not inconsistent with prevailing good mining practices; (d) Lessee will carry on all operations on the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C terms of this Lease, all Materials produced by Lessee from the Leased Premises that cannot be so marketed (herein called “Waste Materials”) will be used to fill the pits and excavations on the Leased Premises and no Royalty shall be due thereon at that time. No other use of these Waste Materials or any Materials is allowed unless Lessee obtains Lessor’s prior written consent to such other use. However, should another use of the Materials be permitted, Royalty shall be due for these used Materials in accordance with Sections 3 and 6.C of this Lease Agreement and, should another use of the Waste Materials be permitted, the Waste Material royalty exception of this subsection shall not apply and Royalty shall be due for these used Waste Materials in accordance with Sections 3 and 6.C of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketable, then Lessee will (1) process, make marketable and market those former Waste Materials as set out in Section 6.C of this Lease Agreement and (2) pay Royalty thereon in accordance with Sections 3 and 6.C of this Lease Agreement. Lessor reserves the title to all minerals contained in these Waste Materials both during the term of this Lease Agreement, including terms relating to confidentiality and upon Intellectual Property Rights, provided that Biogen Idec shall remain responsible hereunder for the expiration, surrender, or termination performance of this Lease Agreement. Nothing in this section shall be construed to give Lessee the right to sell or otherwise dispose of minerals or substances other than Materialsany such Persons.

Development. 5.1 Upon the signing of this Sublicense Agreement, NOVARTIS shall have full legal and financial responsibility for all costs that are incurred and all activities that are undertaken after the signing of this Sublicense Agreement, which are related to development, safety and required periodic reporting to the FDA and equivalent ex-U.S. regulatory agencies, marketing, regulatory approvals, price registrations, and other activities required by NOVARTIS or its SUBLICENSEE(S) (or their respective agents or distributors) to obtain appropriate government approvals for, and to commercialize, COMPOUND and PRODUCT in the TERRITORY. Other than as expressly provided for in Section 5.4, NOVARTIS shall not assume, nor shall NOVARTIS be liable for, any costs or activities (whether scientific, financial or otherwise) relating to the COMPOUND or PRODUCT that were incurred or undertaken prior to the signing of this Sublicense Agreement (including without limitation any costs, expenses, damages, losses, fines, penalties or the like that may be awarded or assessed after the signing of this Sublicense Agreement, but which arise out of events and activities that occurred prior to the signing of this Sublicense Agreement). 5.2 Provided that the AFFILIATES, SUBLICENSEES and other THIRD PARTIES agree to substantially the same terms of confidentiality in Section 6.4 hereof, NOVARTIS may appoint such AFFILIATES, SUBLICENSEE(S) and other THIRD PARTIES to perform any and all development activities necessary to obtain government approvals for PRODUCT in the TERRITORY. The appointment of any SUBLICENSEE shall require HMRI's prior written consent, which consent shall not be unreasonably withheld. 5.3 NOVARTIS shall, in a manner consistent with the effort NOVARTIS devotes to its own products having the same or similar potential value as PRODUCT, exercise its reasonable efforts and diligence in developing and commercializing PRODUCT, and in undertaking those investigations and actions required to obtain appropriate governmental approvals to manufacture COMPOUND and market PRODUCT in the TERRITORY. All development such activity shall be done undertaken at NOVARTIS' expense. TITAN shall arrange with HMRI to provide assistance or consultation at NOVARTIS' expense in such a manner as to reasonably prevent the pollution support of the environmentdevelopment of COMPOUND or PRODUCT, including waterbut HMRI in its discretion may limit such assistance and consultation. 5.4 All direct costs incurred by, soilor on behalf of, TITAN relating to the development and airregistration of COMPOUND and PRODUCT in the TERRITORY will be reimbursed to TITAN by NOVARTIS within thirty (30) days of execution by both parties of this Sublicense Agreement. Lessee will reasonably and diligently develop the Leased Premises into a viable mine and will reasonably mine the Materials in such a manner as is consistent with generally accepted mining practiceThe parties agree that direct costs incurred by or on behalf of TITAN through August, 1997 are approximately one million seven hundred thousand dollars ($1,700,000). Neither rentals nor Royalties paid or Additional direct costs estimated to be paid hereunder shall relieve Lessee from any incurred by or on behalf of TITAN through date of execution of the obligations herein expressedHeads of Agreement between the parties dated October 21, 1997, are approximately three hundred thousand dollars ($300,000). Specific examples Additional direct costs estimated to be incurred by or on behalf of compliance with TITAN in the above includeperiod from the date of the Heads of Agreement until the effective date of this Sublicense Agreement will be determined by the scope of that part of the Phase III clinical program for PRODUCT that was initiated by TITAN prior to the date hereof and called "Clinical Protocol 300", but are will not limited toexceed one million dollars ($1,000,000). The PARTIES further agree that: (a) Lessee agrees to slope the sides of all surface pits, excavations TITAN will be informed by NOVARTIS on a timely and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part regular basis of the operation;development, registration and commercialization of COMPOUND and PRODUCT in the TERRITORY, and will have an opportunity to regularly meet with NOVARTIS and provide input into the development and registration process, and (b) Whenever practicableall of TITAN's contractual obligations to THIRD PARTIES involved in the development and registration process for the COMPOUND and PRODUCT (including Contract Research Organizations (CROs) existing as of the date of this Sublicense Agreement, all surface pitswhich CROs are identified in Appendix E), excavations and subsidence areas will be honored to the extent they are not inconsistent with NOVARTIS' Standard Operating Procedures. However, if any such contractual obligation is terminated by or at the request of NOVARTIS, NOVARTIS will be allowed to become responsible for the payment of any amounts that may be due as a hazard to persons or livestock;result of such termination. (c) Lessee agrees NOVARTIS shall be solely responsible for negotiation of contracts with any CROs and other organizations it desires to mine work on development activities relating to COMPOUND and/or PRODUCT and NOVARTIS shall bear all legal and financial responsibility under such contracts. 5.5 Any inventions or discoveries or improvements which arise from NOVARTIS', its AFFILIATES' or SUBLICENSEES' work relating to the Materials development and/or manufacture of the COMPOUND and/or PRODUCT shall be owned by NOVARTIS , but shall be licensed to HMRI, at HMRI's option on a worldwide, nonexclusive, perpetual basis, at a license fee and/or royalty to be negotiated at such time. Furthermore, it is agreed that NOVARTIS and TITAN's sublicensee for Japan (if any) shall license to each other, for use in the other party's TERRITORY in the FIELD, on a non-exclusive royalty-free basis, any discoveries, improvements or inventions relating to COMPOUND and PRODUCT, and TITAN will require such reciprocal rights for NOVARTIS from TITAN's sublicensee for Japan (if any). To the extent permitted under the License Agreement, NOVARTIS shall have the right to license or sublicense, as the case may be, its discoveries, improvements or inventions. (a) In the event uses or indications for COMPOUND outside the FIELD are identified by HMRI, TITAN or NOVARTIS, NOVARTIS shall notify TITAN of such other uses or indications if identified by NOVARTIS, and TITAN shall notify NOVARTIS of such other uses or indications if identified by HMRI or TITAN. If so desired by NOVARTIS, TITAN shall transfer to NOVARTIS, TITAN's right of first negotiation under Section 5.6 of the License Agreement, for a separate license from HMRI to develop and commercialize such other uses and indications under terms to be negotiated in good faith at such time. Such right of first negotiation shall mean that HMRI shall offer to NOVARTIS the right to develop and commercialize such uses and indications under a separate license, the financial terms of which may be no less favorable than the financial terms provided for in the License Agreement, except that NOVARTIS shall not be required to pay to HMRI or TITAN any upfront license fees or milestone payments. If TITAN has transferred to NOVARTIS such right of first negotiation, HMRI and NOVARTIS shall negotiate in good faith for a period of ninety (90) days and, if the parties are unable to enter into a separate definitive written agreement regarding such license by the end of such ninety (90) day period, HMRI or an AFFILIATE shall be free to develop and commercialize such other use or indication itself or to enter into a license or other agreement with TITAN or a THIRD PARTY, and shall have no further obligations to negotiate with NOVARTIS or further license obligations with respect thereto. (b) If NOVARTIS acquires the right to develop and commercialize a use or indication outside the FIELD for the COMPOUND pursuant to Section 5.6(a), this Sublicense Agreement shall be amended by the parties to include such other use or indication, such that the FIELD will be expanded to include such other use or indication, and NOVARTIS will be obligated to develop and commercialize such other use or indication in the TERRITORY to the extent required under this Sublicense Agreement. (c) To the extent TITAN acquires the right to develop and commercialize a use or indication outside the FIELD for the COMPOUND under the License Agreement, such other use or indication will be offered first to NOVARTIS for the TERRITORY. If NOVARTIS accepts such offer, the parties will negotiate in good faith an amendment to this Sublicense Agreement to include such other use or indication, such that the FIELD will be expanded to include such other use or indication, and NOVARTIS will be obligated to develop and commercialize such other use or indication in the TERRITORY to the extent required under this Sublicense Agreement. If NOVARTIS does not accept such other use or indication, TITAN will be free to offer such other use or indication to a THIRD PARTY, even in the TERRITORY, without further obligation to NOVARTIS with respect to such other use or indication; provided, however, that TITAN, if requested and with the support of NOVARTIS, will use reasonable efforts to ensure that such "new product" can be commercially differentiated in such a manner way (formulation, dosage, delivery system and/or other measures of distinctiveness) as to leave as much level surface as is reasonable discourage interchangeability and consistent with prevailing good mining practices; (d) Lessee will carry on all operations free substitution between such "new product" and PRODUCT on the Leased Premises in marketplace. If a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C of this Lease, all Materials produced by Lessee from the Leased Premises that cannot be so marketed (herein called “Waste Materials”) will be used to fill the pits and excavations on the Leased Premises and no Royalty shall be due thereon at that time. No other use of these Waste Materials or any Materials is allowed unless Lessee obtains Lessor’s prior written consent license to such other use. Howeveruse or indication is granted to a THIRD PARTY, should another it will be limited solely to such other use of or indication, and the Materials be permitted, Royalty shall be due for these used Materials THIRD PARTY licensee will not have the right to develop or sell COMPOUND in accordance with Sections 3 and 6.C of this Lease Agreement and, should another use of the Waste Materials be permitted, FIELD in the Waste Material royalty exception of this subsection shall not apply and Royalty shall be due for these used Waste Materials in accordance with Sections 3 and 6.C of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketable, then Lessee will (1) process, make marketable and market those former Waste Materials as set out in Section 6.C of this Lease Agreement and (2) pay Royalty thereon in accordance with Sections 3 and 6.C of this Lease Agreement. Lessor reserves the title to all minerals contained in these Waste Materials both TERRITORY during the term of this Lease Sublicense Agreement. (d) If neither TITAN nor NOVARTIS acquires the right to develop and commercialize such other use or indication outside the FIELD for COMPOUND under the License Agreement, HMRI or an AFFILIATE shall be free to develop and commercialize such other use or indication itself or to enter into a license or other agreement with a THIRD PARTY, and shall have no further obligations to negotiate with TITAN or NOVARTIS or further license obligations with respect thereto. 5.7 In addition to that which is required under Section 5.4(a), NOVARTIS shall provide to TITAN regular written reports at least every six (6) months setting forth significant developments and improvements, including the status and progress of the development and/or registration activities, that affect COMPOUND or PRODUCT. 5.8 NOVARTIS, or its SUBLICENSEES, shall promptly advise TITAN in writing upon the submission and filing for government regulatory approval to manufacture and market PRODUCT, and upon the expirationreceipt of government regulatory approval to market PRODUCT, surrenderin each case in each country in the TERRITORY, and shall commence marketing PRODUCT in such country in accordance with Section 5.3. 5.9 Subject to applicable laws and regulations, labeling on all PRODUCT sold by or termination on behalf of NOVARTIS pursuant to this Lease Sublicense Agreement. Nothing , and all advertising, marketing and promotional materials used in this section connection therewith, will identify TITAN as the licensor of the PRODUCT. 5.10 If at any time during the term hereof a product is developed by NOVARTIS or any of its AFFILIATES or SUBLICENSEES, which product contains COMPOUND and one or more other pharmaceutically active ingredients for use in the FIELD (a "Combination Product"), TITAN shall negotiate in good faith with HMRI an amendment to the License Agreement, which amendment will provide, inter alia, for how royalties to be paid by TITAN to HMRI for NET SALES of such Combination Product will be calculated and for how long such royalties shall be construed paid. After such amendment to give Lessee the right License Agreement has been executed by TITAN and HMRI, this Sublicense Agreement shall be similarly amended by TITAN and NOVARTIS to sell or otherwise dispose of minerals or substances other than Materialsprovide for such Combination Product.

Development. All 3.1 ORTHO shall, within fifteen (15) days after the Effective Date, pay to BIOCRYST the amount of [***] as reimbursement for research and pre-clinical development expenses incurred by BIOCRYST with respect to Licensed Product prior to the Effective Date. Such payment shall be done in such a manner as to reasonably prevent non-refundable and non-creditable. ------------- *** Information omitted and filed separately with the pollution of the environmentCommission under Rule 24b-2. 3.2 ORTHO shall be solely responsible for (i) all research, including water, soilDevelopment, and air. Lessee will reasonably and diligently develop the Leased Premises into a viable mine and will reasonably mine the Materials in such a manner as is consistent with generally accepted mining practice. Neither rentals nor Royalties paid or all other pre-market activities to be paid hereunder shall relieve Lessee from any of performed in relation to the obligations herein expressed. Specific examples of compliance with Licensed Products; and (ii) for making or having made, and marketing the above include, but are not limited to: (a) Lessee agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will not be allowed to become a hazard to persons or livestock; (c) Lessee agrees to mine the Materials in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; (d) Lessee will carry on all operations on the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C of this Lease, all Materials produced by Lessee from the Leased Premises that cannot be so marketed (herein called “Waste Materials”) will be used to fill the pits and excavations on the Leased Premises and no Royalty shall be due thereon at that time. No other use of these Waste Materials or any Materials is allowed unless Lessee obtains Lessor’s prior written consent to such other useLicensed Product. However, should another it is understood that any research or Development work that involves use of the Materials be permitted, Royalty Existing Know-How or Improvements by ORTHO or any of its Affiliates or sublicensees shall be due for these used Materials in accordance with Sections 3 and 6.C conducted solely pursuant to the terms of this Lease Agreement andand all inventions, should another discoveries or other results ("ORTHO Results") from such research or Development work that involves use of the Waste Materials be permitted, the Waste Material royalty exception of this subsection shall not apply and Royalty Existing Know-How or Improvements shall be due for these used Waste Materials deemed Joint Inventions. ORTHO hereby makes, and shall ensure that all of its Affiliates and sublicensees shall make, all assignments to BIOCRYST that are necessary to give BIOCRYST joint ownership interests in accordance with Sections 3 any such ORTHO Results and 6.C of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketable, then Lessee will (1) process, make marketable and market those former Waste Materials as patent rights thereto. 3.3 In performing the activities set out forth in Section 6.C 3.2, ORTHO shall bear all costs and expenses thereof and shall use reasonable efforts, commensurate with the efforts it would normally exercise for products derived from its internal research or development programs including programs for licensed products with similar potential sales volume consistent with its overall business strategy. 3.4 Within thirty (30) days of this Lease Agreement the Effective Date, ORTHO and BIOCRYST shall establish a Scientific Advisory Committee ("Committee"). The Committee shall be comprised of at least two representatives of each Party (with at least one ORTHO representative being a senior member from research and development). An ORTHO representative shall serve as chairperson. The Committee shall ensure a smooth transfer of the Development responsibilities to ORTHO and provide BIOCRYST periodic updates on the further Development of Licensed Product. It shall meet on at least a quarterly basis to review the status of all research, Development, preclinical, clinical, regulatory and all other pre-market activities for Licensed Products and ORTHO shall consider in good faith all comments and suggestions made by BIOCRYST regarding such activities but all final decisions on such activities shall rest with ORTHO. ORTHO shall prepare a plan for the Development of Licensed Products (the "Development Plan") and shall provide a copy of such Development Plan to BIOCRYST as soon as it is available. Updated plans will be provided by ORTHO to BIOCRYST at least annually. Thereafter until a Licensed Product is commercially launched, ORTHO shall provide BIOCRYST with quarterly (i) notice of each chemical compound in Development; and (2ii) pay Royalty thereon in accordance written confirmation that it is actively maintaining a program for the Development of a Licensed Product consistent with Sections 3 the provisions of Section 3.3 and 6.C of this Lease Agreementthe then current Development Plan. 3.5 Based on ORTHO's sole decision and BIOCRYST's approval, ORTHO may request BIOCRYST to conduct discovery research according to a mutually agreed upon Research Plan including a budget for same, including capital equipment. Lessor reserves the title to BIOCRYST shall be reimbursed for (i) all minerals contained in these Waste Materials both during the term of this Lease Agreementcapital expenditures made, and upon costs incurred (including but not limited to the expirationcosts of goods consumed), surrender, or termination of this Lease Agreement. Nothing in this section shall be construed to give Lessee the right to sell or otherwise dispose of minerals or substances other than Materials.by BIOCRYST in

Development. All development shall be done If the leased minerals are capable of being economically produced by the LESSEE in such a manner as commercial quantities, ▇▇▇▇▇▇ agrees to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises leased premises into a viable mine and will reasonably to mine the Materials leased minerals in such a manner as is consistent with generally accepted good mining practicepractice including, but not limited to, in a manner consistent with General Land Office and Railroad Commission rules anil regulations. Neither bonus, rentals nor Royalties royalties paid or to be paid hereunder shall relieve Lessee the LESSEE from any of the obligations herein expressed. Such methods of mining must be used as will insure the extraction of the greatest possible amounts of the leased minerals consistent with prevailing good mining practice. Specific examples of compliance with the above include, but are not limited to: (a) Lessee ▇▇▇▇▇▇ agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will shall not be allowed to become a hazard to persons persons, wildlife or livestock; (c) Lessee ▇▇▇▇▇▇ agrees to mine the Materials leased minerals in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices;; All development shall be done in such a manner as to prevent the pollution of water. (d) Lessee will carry on In underground workings, all operations on shafts, inclines, and drifts must be adequately supported and all parts of workings, where minerals commercially minable are not exhausted, shall be kept free from water and waste materials to the Leased Premises in a workmanlike mannerextent reasonably possible; (e) Lessee will maintain adequate gates Underground workings are to be protected against fire, floods, creeps and cattle guards where Lessee crosses existing fences squeezes. If such events do occur, they shall be checked by LESSEE to the extent and in a manner which is in keeping with Lessee’s operationsgood methods of mining; (f) Lessee will dump If relevant, LESSEE shall take· all steps a reasonably prudent operator would take to adequately protect the waste material taken leased minerals from the Leased Premises drainage by Lessee’s operations hereunder into pits on other lands or excavations made this lease shall be subject to forfeiture by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possibleCOMMISSIONER; and (g) As governed by the duties and standards set out in Section 6.C 7 of this Leaselease, all Materials leased minerals produced by Lessee LESSEE from the Leased Premises leased premises that cannot be so marketed (herein called “Waste Materialswaste materials”) will be used to fill the pits pits, shafts and excavations on the Leased Premises leased premises and no Royalty royalty shall be due thereon at that time. No other use of these Waste Materials waste materials or any Materials leased mineral is allowed unless Lessee the LESSEE obtains Lessorthe COMMISSIONER’s prior written consent to such other use. However, should another use of the Materials leased minerals be permitted, Royalty royalty shall be due for these used Materials leased minerals in accordance with Sections 3 7 and 6.C 8 of this Lease Agreement lease and, should another use of the Waste Materials waste materials be permitted, the Waste Material waste material royalty exception of this subsection shall not apply and Royalty royalty shall be due for these used Waste Materials waste materials in accordance with Sections 3 sections 7 and 6.C 8 of this Lease Agreementlease. The LESSEE’s duty regarding the leased minerals as set out in Section 7 of this lease is a continuing duty. Should changing technology or market conditions render any component of former Waste Materials profitably waste materials marketable, then Lessee will LESSEE shall (1) process, make marketable and market those former Waste Materials waste materials as set out in Section 6.C 7 of this Lease Agreement lease and (2) pay Royalty royalty thereon in accordance with Sections 3 7 and 6.C 8 of this Lease Agreementlease. Lessor The state reserves the title to all minerals contained in these Waste Materials waste materials both during the term of this Lease Agreementlease, subject to ▇▇▇▇▇▇’s duty set out above, and upon the expiration, surrender, or termination of this Lease Agreementlease. Nothing in this section shall be construed to give Lessee LESSEE the right to sell or otherwise dispose of minerals or substances other than Materialsthose covered hereby. In the event LESSEE, in the interest of economy or efficiency of mining operations or for other valid reasons, intends to conduct mining operations on or within the leased premises in conjunction with mining operations on or within any other land (whether state or privately owned), for example by commingling production, then prior thereto LESSEE must obtain the COMMISSIONER’s approval of such plan of operations, which shall not unreasonably be withheld.

Development. All development shall be done If the leased minerals are capable of being economically produced by the LESSEE in such a manner as commercial quantities, LESSEE agrees to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises leased premises into a viable mine and will reasonably to mine the Materials leased minerals in such a manner as is consistent with generally accepted good mining practicepractice including, but not limited to, in a manner consistent with General Land Office and Railroad Commission rules and regulations. Neither bonus, rentals nor Royalties royalties paid or to be paid hereunder shall relieve Lessee the LESSEE from any of the obligations herein expressed. Such methods -of mining must be used as will insure the extraction of the greatest possible amounts of the leased minerals consistent with prevailing good mining practice. Specific examples of compliance with the above include, but are not limited to: (a) Lessee LESSEE agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will shall not be allowed to become a hazard to persons persons, wildlife or livestock; (c) Lessee LESSEE agrees to mine the Materials leased minerals in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices;; All development shall be done in such a manner as to prevent the pollution of water. (d) Lessee will carry on In underground workings, all operations on shafts, inclines, and drifts must be adequately supported and all parts of workings, where minerals commercially minable are not exhausted, shall be k pt free from water and waste materials to the Leased Premises in a workmanlike mannerextent reasonably possible; (e) Lessee will maintain adequate gates Underground workings are to be protected against fire, floods, creeps and cattle guards where Lessee crosses existing fences squeezes. If such events do occur, they shall be checked by LESSEE to the extent and in a manner which is in keeping with Lessee’s operationsgood methods of mining; (f) Lessee will dump If relevant, LESSEE shall take all steps a reasonably prudent operator would take to adequately protect the waste material taken leased minerals from the Leased Premises drainage by Lessee’s operations hereunder into pits on other lands or excavations made this lease shall be subject to forfeiture by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possibleCOMMISSIONER; and (g) As governed by the duties and standards set out in Section 6.C 7 of this Leaselease, all Materials leased minerals produced by Lessee LESSEE from the Leased Premises leased premises that cannot be so marketed (herein called “Waste Materialswaste materials”) will be used to fill the pits pits, shafts and excavations on the Leased Premises leased premises and no Royalty royalty shall be due thereon ·at that time. No other use of these Waste Materials waste materials or any Materials leased mineral is allowed unless Lessee the LESSEE obtains Lessorthe COMMISSIONER’s prior written consent to such other use. However, should another use of the Materials leased minerals be permitted, Royalty royalty shall be due for these used Materials leased minerals in accordance with Sections 3 7 and 6.C 8 of this Lease Agreement lease and, should another use of the Waste Materials waste materials be permitted, the Waste Material waste material royalty exception of this subsection shall not apply and Royalty royalty shall be due for these used Waste Materials waste materials in accordance with Sections 3 sections 7 and 6.C 8 of this Lease Agreementlease. The LESSEE’s duty regarding the leased minerals as set out in Section 7 of this lease is a continuing duty. Should changing technology or market conditions render any component of former Waste Materials profitably waste materials marketable, then Lessee will LESSEE shall (1) process, make marketable and market those former Waste Materials waste materials as set out in Section 6.C 7 of this Lease Agreement lease and (2) pay Royalty royalty thereon in accordance with Sections 3 7 and 6.C 8 of this Lease Agreementlease. Lessor The state reserves the title to all minerals contained in these Waste Materials waste materials both during the term of this Lease Agreementlease, subject to LESSEE’s duty set out above, and upon the expiration, surrender, or termination of this Lease Agreementlease. Nothing in this section shall be construed to give Lessee LESSEE the right to sell or otherwise dispose of minerals or substances other than Materialsthose covered hereby. In the event LESSEE, in the interest of economy or efficiency of mining operations or for other valid reasons, intends to conduct mining operations on or within the leased premises in conjunction with mining operations on or within any other land (whether state or privately owned), for example by commingling production, then prior thereto LESSEE must obtain the COMMISSIONER’s approval of such plan of operations, which shall not unreasonably be withheld.

Development. All development shall be done If the leased minerals are capable of being economically produced by the LESSEE in such a manner as commercial quantities, L▇▇▇▇▇ agrees to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises leased premises into a viable mine and will reasonably to mine the Materials leased minerals in such a manner as is consistent with generally accepted good mining practicepractice including, but not limited to, in a manner consistent with General Land Office and Railroad Commission rules and regulations. Neither bonus, rentals nor Royalties royalties paid or to be paid hereunder shall relieve Lessee the LESSEE from any of the obligations herein expressed. Such methods of mining must be used as will insure the extraction of the greatest possible amounts of the leased minerals consistent with prevailing good mining practice. Specific examples of compliance with the above include, but are not limited to: (a) Lessee L▇▇▇▇▇ agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will shall not be allowed to become a hazard to persons persons, wildlife or livestock; (c) Lessee L▇▇▇▇▇ agrees to mine the Materials leased minerals in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices;; All development shall be done in such a manner as to prevent the pollution of water. (d) Lessee will carry on In underground workings, all operations on shafts, inclines, and drifts must be adequately supported and all parts of workings, where minerals commercially minable are not exhausted, shall be kept free from water and waste materials to the Leased Premises in a workmanlike mannerextent reasonably possible; (e) Lessee will maintain adequate gates Underground workings are to be protected against fire, floods, creeps and cattle guards where Lessee crosses existing fences squeezes. If such events do occur, they shall be checked by LESSEE to the extent and in a manner which is in keeping with Lessee’s operationsgood methods of mining; (f) Lessee will dump If relevant, LESSEE shall take all steps a reasonably prudent operator would take to adequately protect the waste material taken leased minerals from the Leased Premises drainage by Lessee’s operations hereunder into pits on other lands or excavations made this lease shall be subject to forfeiture by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possibleCOMMISSIONER; and (g) As governed by the duties and standards set out in Section 6.C 7 of this Leaselease, all Materials leased minerals produced by Lessee LESSEE from the Leased Premises leased premises that cannot be so marketed (herein called “Waste Materials”"waste materials") will be used to fill the pits pits, shafts and excavations on the Leased Premises leased premises and no Royalty royalty shall be due thereon ·at that time. No other use of these Waste Materials waste materials or any Materials leased mineral is allowed unless Lessee the LESSEE obtains Lessor’s the COMMISSIONER's prior written consent to such other use. However, should another use of the Materials leased minerals be permitted, Royalty royalty shall be due for these used Materials leased minerals in accordance with Sections 3 7 and 6.C 8 of this Lease Agreement lease and, should another use of the Waste Materials waste materials be permitted, the Waste Material waste material royalty exception of this subsection shall not apply and Royalty royalty shall be due for these used Waste Materials waste materials in accordance with Sections 3 sections 7 and 6.C 8 of this Lease Agreementlease. The LESSEE's duty regarding the leased minerals as set out in Section 7 of this lease is a continuing duty. Should changing technology or market conditions render any component of former Waste Materials profitably waste materials marketable, then Lessee will LESSEE shall (1) process, make marketable and market those former Waste Materials waste materials as set out in Section 6.C 7 of this Lease Agreement lease and (2) pay Royalty royalty thereon in accordance with Sections 3 7 and 6.C 8 of this Lease Agreementlease. Lessor The state reserves the title to all minerals contained in these Waste Materials waste materials both during the term of this Lease Agreementlease, subject to L▇▇▇▇▇'s duty set out above, and upon the expiration, surrender, or termination of this Lease Agreementlease. Nothing in this section shall be construed to give Lessee LESSEE the right to sell or otherwise dispose of minerals or substances other than Materialsthose covered hereby. In the event LESSEE, in the interest of economy or efficiency of mining operations or for other valid reasons, intends to conduct mining operations on or within the leased premises in conjunction with mining operations on or within any other land (whether state or privately owned), for example by commingling production, then prior thereto LESSEE must obtain the COMMISSIONER's approval of such plan of operations, which shall not unreasonably be withheld.

Development. 5.1 Upon the signing of this Sublicense Agreement, Vanda shall have full legal and financial responsibility for all costs that are incurred and all activities that are undertaken after the signing of this Sublicense Agreement, which are related to development, safety and required periodic reporting to the FDA and equivalent ex-U.S. regulatory agencies, marketing, regulatory approvals, price registrations, and other activities required by Vanda or its Sublicensee(s) (or their respective agents or distributors) to obtain appropriate government approvals for, and to commercialize, the Compound and Product in the Territory. Other than as expressly provided for in Section 5.4, Vanda shall not assume, nor shall Vande be liable for, any costs or activities (whether scientific, financial or otherwise) relating to the Compound or Product that were incurred or undertaken prior to the signing of this Sublicense Agreement (including without limitation any costs, expenses, damages, losses, fines, penalties or the like that may be awarded or assessed after the signing of this Sublicense Agreement, but which arise out of events and activities that occurred prior to the signing of this Sublicense Agreement). 5.2 Provided that the Affiliates, Sublicensees and other Third Parties agree to substantially the same terms of confidentiality in Section 6.4 hereof, Vanda may appoint such Affiliates, Sublicensees(s) and other Third Parties to perform any and all development activities necessary to obtain government approvals for the Product in the Territory. The appointment of any Sublicensee shall require HMRI's prior written consent, which consent shall not be unreasonably withheld. 5.3 Vanda shall, in a manner consistent with the effort Vanda devotes to its own products having the same or similar potential value as Product, exercise its Commercially Reasonable Efforts and diligence in conducting clinical trials and commercializing the Product alone or in collaboration with a Third Party, and in undertaking those investigations and actions required to obtain appropriate governmental approvals to manufacture the Compound and market the Product in the Territory. All development such activity shall be done undertaken at Vanda's expense. Novartis shall arrange with HMRI to provide assistance or consultation at Vanda's expense in such a manner as to reasonably prevent the pollution support of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises into a viable mine and will reasonably mine the Materials in such a manner as is consistent with generally accepted mining practice. Neither rentals nor Royalties paid or to be paid hereunder shall relieve Lessee from any development of the obligations herein expressed. Specific examples of compliance with the above includeCompound or Product, but are not limited toHMRI in its discretion may limit such assistance and consultation. 5.4 The parties further agree that: (a) Lessee agrees to slope the sides of all surface pits, excavations Novartis will be informed by Vanda on a timely and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part regular basis of the operation;development, registration and commercialisation of the Compound and Product in the Territory, and ▇▇▇▇ have an opportunity to regularly meet with Vanda and provide input into the development and registration process, and (b) Whenever practicableall of Novartis' contractual obligations to Third Parties involved in the development and registration process for the Compound and Product (including Contract Research Organizations (CROs) existing as of the date of this Sublicense Agreement, all surface pitswhich CROs are identified in APPENDIX E), excavations and subsidence areas will be considered by Vanda to the extent they are not be allowed to become a hazard to persons or livestock;inconsistent with Vanda's Standard Operating Procedures. (c) Lessee agrees Vanda shall be solely responsible for the negotiation of contracts with any CROs and other organisations it desires to mine work on development activities relating to the Materials Compound and/or Product and Vanda shall bear all legal and financial responsibility under such contracts. 5.5 Any inventions or discoveries or improvements which arise from Vanda's, its Affiliates' or Sublicensees work relating to the development and/or manufacture of the Compound and/or Product shall be owned by Vanda, but shall be licensed to HMRI, Titan and Novartis at their option on a worldwide, non-exclusive, perpetual basis, at a license fee and/or royalty to be negotiated at such time. In the case of any inventions or discoveries or improvements arising in areas outside of the original field, which was defined in the HMRI Agreement and the Titan Agreement, shall be owned by Vanda, but shall only be licensed to HMRI, at HMRI's option on a worldwide, non-exclusive, perpetual basis, at a license fee and/or royalty to be negotiated at such time. Notwithstanding anything to the contrary in this Sublicense Agreement, in the event that this Sublicense Agreement between Novartis Pharma AG and Vanda Pharmaceuticals, Inc. expires or terminates, in its entirety or with respect to any country, (except as a manner result of material breach of the Agreement by Novartis), any inventions or discoveries or improvements which arise from Vanda's, its Affiliates' or Sublicensees' work relating to development and/or manufacture of the Compound and/or Product (the "Vanda IP") shall be disclosed to HMRI and be owned by and become the property of HMRI (or assignees or successors, as the case may be), but shall be licensed to leave as much level surface as is reasonable Titan under Section 2.1(a) of the HMRI- Agreement and consistent subsequently to Novartis under the Titan Agreement. Vanda shall promptly undertake any and all actions necessary to effectuate such ownership in and assignment to HMRI. If the Vanda Sublicense Agreement expires or terminates with prevailing good mining practices; (d) Lessee will carry on all operations on respect to a particular country, then the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C requirements of this Lease, all Materials produced by Lessee from Section 5.5 and Aventis' rights to the Leased Premises that cannot be so marketed (herein called “Waste Materials”) will be used to fill the pits and excavations on the Leased Premises and no Royalty Vanda IP shall be due thereon at that time. No other use of these Waste Materials or any Materials is allowed unless Lessee obtains Lessor’s prior written consent limited to such other use. Howevercountry. 5.6 deleted. 5.7 In addition to that which is required under Section 5.4(a), should another use Vanda shall provide to Novartis regular written reports at least every six (6) months setting forth significant developments and improvements, including the status and progress of the Materials be permitteddevelopment and/or registration activities, Royalty that affect the Compound or Product. 5.8 Vanda, or its Sublicensees, shall be due promptly advise Novartis in writing upon the submission and filing for these used Materials in accordance with Sections 3 and 6.C of this Lease Agreement and, should another use of the Waste Materials be permitted, the Waste Material royalty exception of this subsection shall not apply and Royalty shall be due for these used Waste Materials in accordance with Sections 3 and 6.C of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketable, then Lessee will (1) process, make marketable government regulatory approval to manufacture and market those former Waste Materials as set out in Section 6.C of this Lease Agreement and (2) pay Royalty thereon in accordance with Sections 3 and 6.C of this Lease Agreement. Lessor reserves the title to all minerals contained in these Waste Materials both during the term of this Lease AgreementProduct, and upon the expirationreceipt of government regulatory approval to market the Product, surrenderin each case in each country in the Territory, and shall commence marketing the Product in such country in accordance with Section 5.3. 5.9 Subject to applicable laws and regulations, labeling on all Product sold by or termination on behalf of Vanda pursuant to this Lease Sublicense Agreement. Nothing , and all advertising, marketing and promotional materials used in this section connection therewith, will identify Novartis as the licensor of the Product. 5.10 If at any time during the term hereof a product is developed by Vanda or any of its Affiliates or Sublicensees, which product contains the Compound and one or more other pharmaceutically active ingredients for use in the Field (a "Combination Product"), Novartis shall negotiate in good faith with Titan an amendment to the Titan Agreement, which amendment will provide, inter alia for how royalties to be paid by Novartis to Titan for Net Sales of such Combination Product will be calculated and for how long such royalties shall be construed paid. After such amendment to give Lessee the right Titan Agreement has been executed by Novartis and Titan, this Sublicense Agreement shall be similarly amended by Novartis and Vanda to sell or otherwise dispose of minerals or substances other than Materialsprovide for such Combination Product.

Development. All development shall be done If .the leased minerals are capable of being economically• produced by the LESSEE in such a manner as commercial quantities, ▇▇▇▇▇▇ agrees to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises leased premises into a viable mine and will reasonably to mine the Materials leased minerals in such a manner as is consistent with generally accepted good mining practicepractice including, but not limited to, in a manner consistent with General Land Office and Railroad Commission rules and regulations. Neither bonus, rentals nor Royalties royalties paid or to be paid hereunder shall relieve Lessee the LESSEE from any of the obligations herein expressed. Such methods of mining must be used as will insure the extraction of the greatest possible amounts of the leased minerals consistent with prevailing good mining practice. Specific examples of compliance with the above include, but are not limited to: (a) Lessee ▇▇▇▇▇▇ agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, • excavations and subsidence areas will shall not be • allowed to become a hazard to persons persons, wildlife or livestock; (c) Lessee ▇▇▇▇▇▇ agrees to mine the Materials leased minerals in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices;; All development shall be done in such a manner as to prevent the pollution of water. (d) Lessee will carry on In underground workings, all operations on shafts, inclines, and drifts must be adequately supported and all parts of workings, where minerals commercially minable are not exhausted, shall be kept free from water and waste materials to the Leased Premises in a workmanlike mannerextent reasonably possible; (e) Lessee will maintain adequate gates Underground workings are to be protected against fire, floods, creeps and cattle guards where Lessee crosses existing fences squeezes. If such events do occur, they shall be checked by LESSEE to the extent and in a manner which is in keeping with Lessee’s operationsgood methods of mining; (f) Lessee will dump If relevant, LESSEE shall take all steps a reasonably prudent operator would take to adequately protect the waste material taken leased minerals from the Leased Premises drainage by Lessee’s operations hereunder into pits on other lands or excavations made this lease shall be subject to forfeiture by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possibleCOMMISSIONER; and (g) As governed by the duties and standards set out in Section 6.C 7 of this Leaselease, all Materials leased minerals produced by Lessee LESSEE from the Leased Premises leased premises that cannot be so marketed (herein called “Waste Materialswaste materials”) will be used to fill the pits pits, shafts and excavations on the Leased Premises leased premises and no Royalty royalty shall be due thereon ·at that time. No other use of these Waste Materials waste materials or any Materials leased mineral is allowed unless Lessee the LESSEE obtains Lessorthe COMMISSIONER’s prior written consent to such other use. However, should another use of the Materials leased minerals be permitted, Royalty royalty shall be due for these used Materials leased minerals in accordance with Sections 3 7 and 6.C 8 of this Lease Agreement lease and, should another use of the Waste Materials waste materials be permitted, the Waste Material waste material royalty exception of this subsection shall not apply and Royalty royalty shall be due for these used Waste Materials waste materials in accordance with Sections 3 sections 7 and 6.C 8 of this Lease Agreementlease. The LESSEE’s duty regarding the leased minerals as set out in Section 7 of this lease is a continuing duty. Should changing technology or market conditions render any component of former Waste Materials profitably waste materials marketable, then Lessee will _LESSEE shall (1) process, make marketable and market those former Waste Materials waste materials as set out in Section 6.C 7 of this Lease Agreement lease and (2) pay Royalty royalty thereon in accordance with Sections 3 7 and 6.C 8 of this Lease Agreementlease. Lessor The state reserves the title to all minerals contained in these Waste Materials waste materials both during the term of this Lease Agreementlease, subject to ▇▇▇▇▇▇’s duty set out above, and upon the expiration, surrender, or termination of this Lease Agreementlease. Nothing in this section shall be construed to give Lessee LESSEE the right to sell or otherwise dispose of minerals or substances other than Materialsthose covered hereby. In the event LESSEE, in the interest of economy or efficiency of mining operations or for other valid reasons, intends to conduct mining operations only within the leased premises in conjunction with mining operations on or within any other land (whether state or privately owned), for example by commingling production, then prior thereto LESSEE must obtain the COMMISSIONER’s approval of such plan of operations, which shall not unreasonably be withheld.

Development. All The uses that may be made of the premises, as described on the attached Exhibit “B”, include hotel, restaurant and recreational resort uses. ▇▇▇▇▇▇ acknowledges and agrees, however, that ▇▇▇▇▇▇ will not develop a hotel on the premises unless and until ▇▇▇▇▇▇ obtains a current market study indicating that a hotel development as proposed by ▇▇▇▇▇▇ could be justified by current or anticipated market conditions. Lessor shall be done in such provided a manner as copy of said study. ▇▇▇▇▇▇’s non-objection to reasonably prevent the pollution adequacy and conclusions of the environmentstudy, including waterwithin thirty (30) days after receipt thereof, soilshall be required for the development to move forward. If Lessor does not object to said study within such period, the same shall be deemed approved. In the event ▇▇▇▇▇▇ proposes in the future to develop a hotel, a restaurant, recreational resort or other significant development, Lessor agrees that this Lease will be amended to include such provisions as Lessor and air. Lessee will reasonably and diligently develop the Leased Premises into a viable mine and will reasonably mine the Materials in such a manner as is consistent with generally accepted mining practice. Neither rentals nor Royalties paid or mutually agree to be paid hereunder shall relieve Lessee from any necessary and appropriate to facilitate the commercial financing, construction and development of the obligations herein expressedsuch improvements and facilities. Specific examples of compliance with the above Such amendments may include, by way of example but are not limited to: without limitation: (ai) Lessee agrees an agreement to slope provide protections for the sides lessee of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas such development such that such development will not be allowed to become a hazard to persons at risk by reason of breaches or livestock; (c) Lessee agrees to mine the Materials in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; (d) Lessee will carry on all operations on the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possible; and (g) As governed by the duties and standards set out in Section 6.C of this Lease, all Materials produced defaults by Lessee from the Leased Premises that cannot be so marketed (herein called “Waste Materials”) will be used to fill the pits and excavations on the Leased Premises and no Royalty shall be due thereon at that time. No or other use sublessees or other parties, which protections may consist of these Waste Materials or any Materials is allowed unless Lessee obtains Lessor’s prior written consent to such other use. However, should another use of the Materials be permitted, Royalty shall be due for these used Materials in accordance with Sections 3 and 6.C a division of this Lease Agreement and, should another use into one or more leases of a portion or portions of the Waste Materials premises, such that the portion of the premises on which such uses will be permittedlocated will be a lease separate from and not cross-defaulted with this Lease;; (ii) an agreement to permit commercially reasonable subleases of such portion or portions of the premises, the Waste Material royalty exception of this subsection shall not apply and Royalty shall be due for these used Waste Materials in accordance with Sections 3 and 6.C of this Lease Agreement. Should changing technology or market conditions render any component of former Waste Materials profitably marketablewhich may include, then Lessee will (1) processamong other provisions, make marketable and market those former Waste Materials as set out in Section 6.C of this Lease Agreement and (2) pay Royalty thereon in accordance with Sections 3 and 6.C of this Lease Agreement. Lessor reserves the title to all minerals contained in these Waste Materials both during the term of this Lease Agreement, and upon the expiration, surrender, or termination of this Lease Agreement. Nothing in this section shall be construed to give Lessee the right to sell or otherwise dispose encumber such sublease with leasehold mortgage financing on customary commercial terms; (iii) customary commercial protections for the holder of minerals or substances other than Materialsany such mortgage financing; and (iv) an agreement of nondisturbance and attornment for the benefit of the sublessee and such mortgagee and their respective successors and assigns, which will contain agreements on the part of Lessor to recognize the rights of the sublessee and such mortgagee in the event of a default by Lessee hereunder.

Development. All development shall be done in such a manner as to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and LESSEE agrees to diligently develop the Leased Premises leased premises into a viable mine and will reasonably to mine the Materials leased minerals in such a manner as is consistent with generally accepted good mining practicepractice including, but not limited to, in a manner consistent with General Land Office and Railroad Commission rules and regulations. Neither bonus, rentals nor Royalties royalties paid or to be paid hereunder shall relieve Lessee the LESSEE from any of the obligations herein expressed. Such methods of mining must be used as will insure the extraction of the greatest possible amounts of the leased minerals consistent with prevailing good mining practice. Specific examples of compliance with the above include, but are not limited to: (a) Lessee : LESSEE agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) ; Whenever practicable, all surface pits, excavations and subsidence areas will shall not be allowed to become a hazard to persons or livestock; (c) Lessee ; LESSEE agrees to mine the Materials leased minerals in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices; (d) Lessee will carry on ; In underground workings, all operations on shafts, inclines, and drifts must be adequately supported and all parts of workings, where minerals commercially minable are not exhausted, shall be kept free from water and waste materials to the Leased Premises in a workmanlike manner; (e) Lessee will maintain adequate gates and cattle guards where Lessee crosses existing fences with Lessee’s operations; (f) Lessee will dump the waste material taken from the Leased Premises by Lessee’s operations hereunder into pits or excavations made by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as extent reasonably possible; and (g) Underground workings are to be protected against fire, floods, creeps and squeezes. If such events do occur, they shall be checked by LESSEE to the extent and in a manner which is in keeping with good methods of mining; If relevant, LESSEE shall take all steps a reasonably prudent operator would take to adequately protect the leased minerals from drainage by operations on other lands or this lease shall be subject to forfeiture by the COMMISSIONER; and As governed by the duties and standards set out in Section 6.C 7 of this Leaselease, all Materials leased minerals produced by Lessee LESSEE from the Leased Premises leased premises that cannot be so marketed (herein called “Waste Materials”"waste materials") will be used to fill the pits pits, shafts and excavations on the Leased Premises leased premises and no Royalty royalty shall be due thereon at that time. No other use of these Waste Materials waste materials or any Materials leased mineral is allowed unless Lessee the LESSEE obtains Lessor’s the COMMISSIONER's prior written consent to such other use. However, should another use of the Materials leased minerals be permitted, Royalty royalty shall be due for these used Materials leased minerals in accordance with Sections 3 7 and 6.C 8 of this Lease Agreement lease and, should another use of the Waste Materials waste materials be permitted, the Waste Material waste material royalty exception of this subsection shall not apply and Royalty royalty shall be due for these used Waste Materials waste materials in accordance with Sections 3 sections 7 and 6.C 8 of this Lease Agreementlease. The LESSEE's duty regarding the leased minerals as set out in Section 7 of this lease is a continuing duty. Should changing technology or market conditions render any component of former Waste Materials profitably waste materials marketable, then Lessee will LESSEE shall (1) process, make marketable and market those former Waste Materials waste materials as set out in Section 6.C 7 of this Lease Agreement lease and (2) pay Royalty royalty thereon in accordance with Sections 3 7 and 6.C 8 of this Lease Agreementlease. Lessor The state reserves the title to all minerals contained in these Waste Materials waste materials both during the term of this Lease Agreementlease, subject to LESSEE's duty set out above, and upon the expiration, surrender, or termination of this Lease Agreementlease. Nothing in this section shall be construed to give Lessee LESSEE the right to sell or otherwise dispose of minerals or substances other than Materialsthose covered hereby. In the event LESSEE, in the interest of economy or efficiency of mining operations or for other valid reasons, intends to conduct mining operations on or within the leased premises in conjunction with mining operations on or within any other land (whether State or privately owned), for example by commingling production, then prior thereto LESSEE must obtain the COMMISSIONER's approval of such plan of operations.

Development. All development shall be done If the leased minerals are capable of being economically produced by the LESSEE in such a manner as commercial quantities, ▇▇▇▇▇▇ agrees to reasonably prevent the pollution of the environment, including water, soil, and air. Lessee will reasonably and diligently develop the Leased Premises leased premises into a viable mine and will reasonably to mine the Materials leased minerals in such a manner as is consistent with generally accepted good mining practicepractice including, but not limited to, in a manner consistent with General Land Office and Railroad Commission rules and regulations. Neither bonus, rentals nor Royalties royalties paid or to be paid hereunder shall relieve Lessee the LESSEE from any of the obligations herein expressed. Such methods -of mining must be used as will insure the extraction of the greatest possible amounts of the leased minerals consistent with prevailing good mining practice. Specific examples of compliance with the above include, but are not limited to: (a) Lessee ▇▇▇▇▇▇ agrees to slope the sides of all surface pits, excavations and subsidence areas in a manner consistent with good mining practices. Such sloping is to become a normal part of the operation; (b) Whenever practicable, all surface pits, excavations and subsidence areas will shall not be allowed to become a hazard to persons persons, wildlife or livestock; (c) Lessee ▇▇▇▇▇▇ agrees to mine the Materials leased minerals in such a manner as to leave as much level surface as is reasonable and consistent with prevailing good mining practices;; All development shall be done in such a manner as to prevent the pollution of water. (d) Lessee will carry on In underground workings, all operations on shafts, inclines, and drifts must be adequately supported and all parts of workings, where minerals commercially minable are not exhausted, shall be k pt free from water and waste materials to the Leased Premises in a workmanlike mannerextent reasonably possible; (e) Lessee will maintain adequate gates Underground workings are to be protected against fire, floods, creeps and cattle guards where Lessee crosses existing fences squeezes. If such events do occur, they shall be checked by LESSEE to the extent and in a manner which is in keeping with Lessee’s operationsgood methods of mining; (f) Lessee will dump If relevant, LESSEE shall take all steps a reasonably prudent operator would take to adequately protect the waste material taken leased minerals from the Leased Premises drainage by Lessee’s operations hereunder into pits on other lands or excavations made this lease shall be subject to forfeiture by the removal of Materials, leaving as few mounds or waste piles on the Leased Premises as reasonably possibleCOMMISSIONER; and (g) As governed by the duties and standards set out in Section 6.C 7 of this Leaselease, all Materials leased minerals produced by Lessee LESSEE from the Leased Premises leased premises that cannot be so marketed (herein called “Waste Materialswaste materials”) will be used to fill the pits pits, shafts and excavations on the Leased Premises leased premises and no Royalty royalty shall be due thereon ·at that time. No other use of these Waste Materials waste materials or any Materials leased mineral is allowed unless Lessee the LESSEE obtains Lessorthe COMMISSIONER’s prior written consent to such other use. However, should another use of the Materials leased minerals be permitted, Royalty royalty shall be due for these used Materials leased minerals in accordance with Sections 3 7 and 6.C 8 of this Lease Agreement lease and, should another use of the Waste Materials waste materials be permitted, the Waste Material waste material royalty exception of this subsection shall not apply and Royalty royalty shall be due for these used Waste Materials waste materials in accordance with Sections 3 sections 7 and 6.C 8 of this Lease Agreementlease. The LESSEE’s duty regarding the leased minerals as set out in Section 7 of this lease is a continuing duty. Should changing technology or market conditions render any component of former Waste Materials profitably waste materials marketable, then Lessee will LESSEE shall (1) process, make marketable and market those former Waste Materials waste materials as set out in Section 6.C 7 of this Lease Agreement lease and (2) pay Royalty royalty thereon in accordance with Sections 3 7 and 6.C 8 of this Lease Agreementlease. Lessor The state reserves the title to all minerals contained in these Waste Materials waste materials both during the term of this Lease Agreementlease, subject to ▇▇▇▇▇▇’s duty set out above, and upon the expiration, surrender, or termination of this Lease Agreementlease. Nothing in this section shall be construed to give Lessee LESSEE the right to sell or otherwise dispose of minerals or substances other than Materialsthose covered hereby. In the event LESSEE, in the interest of economy or efficiency of mining operations or for other valid reasons, intends to conduct mining operations on or within the leased premises in conjunction with mining operations on or within any other land (whether state or privately owned), for example by commingling production, then prior thereto LESSEE must obtain the COMMISSIONER’s approval of such plan of operations, which shall not unreasonably be withheld.