4th. It is further understood and agreed that the right and privilege hereby granted to drill or construct new wells, tunnels, or excavations for the development of said hydro-carbon substances upon said lands shall in any event cease and determine at and from the expiration of said term of ten (io) years from the date of this instrument. It being understood and agreed, however, that the party of the second part shall have the right to complete such wells or other works as may have been commenced at the time of the expiration of said term, and work whereon is in active progress.

5th. Whenever the party of the second part shall have found oil in any well in quantities sufficient to pay to pump, such well shall be deemed to be and shall be, and shall be counted as a completed well, for all and singular the purposes of this agreement; and whenever party of the second part shall have sunk any well to a depth of five hundred feet, although oil be not discovered in paying quantities, the same shall be deemed to be and shall be, and shall be counted as a completed well for all and singular the purposes of this agreement.

6th. That party of the first part shall receive and have, and party of the second part shall pay and deliver to party of the first part, as and for rent and royalty, a one-eighth (1-8) part of the net production of all oil, or other hydro-carbon substances, taken or obtained by said party of the second part in commercial quantities from any tunnels, wells, or excavations sunk or made on said lands hereunder, and said rent and royalty shall be so paid by said party of the second part to said party of the first part as long as said party of the second part shall operate or pump any wells upon said premises or take any of said substances therefrom. By the term "net production" is meant the entire amount of oil, or other hydro-carbon substances, produced and saved from any tunnel excavations or wells on said premises, after deduction shall have been made for and of any and all fuel used by said party of the second part in connection with its operations on said premises. Said rents and royalties shall be delivered to party of the first part in kind, and, if they be liquids, at and from the storage tanks of party of the second part, on said premises; deliveries of all rents and royalties produced during each calendar month shall be made not later than the 15th day of the month next succeeding. The parties hereto shall, on the 15th day of each month, make an accounting and settlement of and for the royalty oil or other hydro-carbon substances pro' duced and saved under this contract from said premises during the preceding calendar month. In the event that party of the first part shall fail or neglect to provide suitable means of transportation and storage for the receipt and transportation of its royalties, at the times and places when and where the same are to be delivered, as aforesaid, then the party of the second part may store, transport and market the same; and in such case party of the second part shall be entitled to a credit for, and shall receive, the usual and reasonable rates for 3uch storage and transportation, and for its service in marketing such royalties, and shall account for and pay to party of the first part the excess after deduction of such charges.

7th. Party of the second part shall keep a full, correct and accurate account of all oil, or said other substances produced and saved by it on and from said premises under this agreement, which said account may at all times, during office hours, be inspected by the parties of the first part, or their agents, who shall also have free access to said premises at all reasonable times, and to the wells sunk thereon, and to the storage tanks, for the purpose of measuring and gauging the oil and other substances produced and saved from said premises.

8th. That party of the second part shall and will diligently and in a business-like manner pump or otherwise operate and care for the wells and other works sunk or made on the said lands at all times, so long as it shall remain in possession and control of the same; it being understood and agreed, however, that said party of the second part shall not be, and it is not, bound to operate its works at night, on Sundays, or on legal holidays, nor when prevented by the weather, strikes, unavoidable shortage of water, accidents or other unavoidable causes, nor during such times as for any reason it is unable to secure tank cars for the transportation of said oil.

9th. It is also particularly understood and agreed that if, at any time, the price which can be obtained at the wells for oil produced on and from said premises shall drop to, or be forty cents, or less, per barrel of 42 gallons, then during such period or periods in which the market price of said oil shall be forty cents, or less, per barrel at the wells, party of the second part shall not be obligated to pump, drill or otherwise work or operate on said premises for oil, and it shall neither forfeit nor lose any of its rights hereunder for failure to operate durine said period or periods of low price of oil.

10th. At the expiration of the time hereinabove designated, within which party of the second part is given the right to sink new wells, drive new tunnels or make new excavations hereunder, to-wit, ten years from and after May 10, 1905, or after the sooner termination of such rights, party of the second part shall cease all further prosecution of such work on said premises, excepting on and in any wells which have been completed, as hereinbefore defined, or on or in any wells or other works which at the time are in process of completion. It being particularly understood and agreed that partv of the second part shall have the right to complete any well or wells, tunnels or excavations which may have been started before such expiration of the time within which it has the right to do such work hereunder and on which work is in active progress, which wells, tunnels and excavations shall be deemed to be, shall be, and shall be treated in all respects as though sunk, drilled or prosecuted to completion prior to the expiration of such time within which the party of the second part has the right to drill or sink additional wells or commence said other works hereunder. It is further understood and agreed that the party of the second part shall, at all times, either before or after the termination of its right to commence additional wells, tunnels and excavations hereunder, have the right to repair, clean, deepen, extend, or otherwise operate on and in any and all wells, tunnels or excavations which may have been completed, as defined hereunder, or which are in process of completion at the termination of such right.