Common use of Lease Payments and Other Payments Clause in Contracts

Lease Payments and Other Payments. A. During the Lease Term, Company shall make the following payments to Claimholder, which shall constitute a portion of the purchase price for the Property: (i) The Initial Payment of $5,000, on or before December 1, 2004; and (ii) The Quarterly Payments each in the amount of $10,000, payable on March 1, June 1, September 1 and December 1 of each year during the Lease Term, commencing with March 1, 2005. B. Following Company's exercise of the Purchase Option under Section 7 and resulting termination of the Lease as provided in Section 1, Company shall pay to Claimholder (i) the Claimholder's net profits interest (NPI) under Section 8A and (ii) the Claimholder's net smelter return (NSR) royalty under Section 8B. Company's obligation to make payment under Section 8A and Section 8B shall cease to accrue on the first to occur of (i) completion by Company of mining operations, residual leaching and reclamation in the Project Area or (ii) other decision of Company to terminate operations in the Project Area and, if Claimholder so desires, to reconvey the property to Claimholder once reclamation and other environmental obligations have been satisfied, although this provision shall not relieve Company from its obligation to make payments that accrued prior to such occurrence. C. All payments shall be paid in US dollars in immediately available funds. D. Company hereby represents and warrants to Claimholder that it has adequate financial resources to make the payments required under this Section 3, as well as the Work Expenditures required under Section 4. E. Company shall also issue on or before December 1, 2004 to Searchlight 187,500 shares of Company's common stock and to Trust 62,500 shares of Company's common stock. The shares shall be validly issued, fully paid and nonassessable. The shares shall be restricted and eligible for resale pursuant to Rule 144 in accordance with said rule. Company, following its initial public offering, shall use its best efforts to comply with its reporting obligations under applicable securities law so as to enable Searchlight and Trust to utilize Rule 144 for resale of the shares following the applicable holding period.

Lease Payments and Other Payments. A. During the Lease Term, Company shall make the following payments to Claimholder, which shall constitute a portion of the purchase price for the Property: (i) The Initial Payment of $5,00010,000, on or before December July 1, 2004; and (ii) The Quarterly Payments each in the amount of $10,000, payable on March October 1, June January 1, September April 1 and December July 1 of each year during the Lease Term, commencing with March October 1, 2004. (iii) The Quarterly payment due in the amount of US$10,000, payable on April 1, 2005 will be made on October 10, 2005. (iv) The Quarterly payment due in the amount of US$10,000, payable on July 1, 2005 will be made on October 10, 2005. (v) The Quarterly payment due in the amount of US$10,000, payable on October 1, 2005 will be made on October 31, 2005. B. Following Company's exercise of the Purchase Option under Section 7 and resulting termination of the Lease as provided in Section 1, Company shall pay to Claimholder (i) the Claimholder's net profits interest (NPI) under Section 8A and (ii) the Claimholder's net smelter return (NSR) royalty under Section 8B. Company's obligation to make payment under Section 8A and Section 8B shall cease to accrue on the first to occur of (i) completion by Company of mining operations, residual leaching and reclamation in the Project Area or (ii) other decision of Company to terminate operations in the Project Area and, if Claimholder so desires, to reconvey the property to Claimholder once reclamation and other environmental obligations have been satisfied, although this provision shall not relieve Company from its obligation to make payments that accrued prior to such occurrence. C. All payments shall be paid in US US$ dollars in immediately available funds. D. Company hereby represents and warrants to Claimholder that it has adequate financial resources to make the payments required under this Section 3, as well as the Work Expenditures required under Section 4. E. Company shall also issue within 10 business days of execution of this Agreement on or before December 1, 2004 to Searchlight 187,500 10,000,000 (ten million) shares of Company's common stock and to Trust 62,500 shares of Company's restricted common stock. The shares shall be validly issued, fully paid and nonassessable. The shares shall be restricted and eligible for resale pursuant to Rule 144 in accordance with said rule. Company, following its initial public offering, shall use its best efforts to comply with its reporting obligations under applicable securities law so as to enable Searchlight and Trust to utilize Rule 144 for resale of the shares following the applicable holding period. F. The previous Project Acquisition Agreement between the parties dated January 27, 2004 is hereby terminated and replaced with this Agreement.

Lease Payments and Other Payments. A. During the Lease Term, Company shall make the following payments to Claimholder, which shall constitute a portion of the purchase price for the Property: (i) The Initial Payment of $5,00010,000, on or before December July 1, 2004; and (ii) The Quarterly Payments each in the amount of $10,000, payable on March October 1, June January 1, September April 1 and December July 1 of each year during the Lease Term, commencing with March October 1, 2004. (iii) The quarterly payment due on October 1, 2005 will be paid on October 31. 2005. B. Following Company's exercise of the Purchase Option under Section 7 and resulting termination of the Lease as provided in Section 1, Company shall pay to Claimholder (i) the Claimholder's net profits interest (NPI) under Section 8A and (ii) the Claimholder's net smelter return (NSR) royalty under Section 8B. Company's obligation to make payment under Section 8A and Section 8B shall cease to accrue on the first to occur of (i) completion by Company of mining operations, residual leaching and reclamation in the Project Area or (ii) other decision of Company to terminate operations in the Project Area and, if Claimholder so desires, to reconvey the property to Claimholder once reclamation and other environmental obligations have been satisfied, although this provision shall not relieve Company from its obligation to make payments that accrued prior to such occurrence. C. All payments shall be paid in US US$dollars in immediately available funds. D. Company hereby represents and warrants to Claimholder that it has adequate financial resources to make the payments required under this Section 3, as well as the Work Expenditures required under Section 4. E. Company shall also issue on or before December 1within 10 business days of execution of this Agreement to Searchlight, 2004 to Searchlight 187,500 shares of Company's common stock and to Trust 62,500 10,000,000 (ten million) shares of Company's common stock. The shares shall be validly issued, fully paid and nonassessable. The shares shall be restricted and eligible for resale pursuant to Rule 144 in accordance with said rule. Company, following its initial public offering, shall use its best efforts to comply with its reporting obligations under applicable securities law so as to enable Searchlight and Trust to utilize Rule 144 for resale of the shares following the applicable holding period. F. The previous Project Acquisition Agreement between the parties dated January 27, 2004 is hereby terminated and replaced with this Agreement.

Lease Payments and Other Payments. A. During the Lease Term, Company shall make the following payments to Claimholder, which shall constitute a portion of the purchase price for the Property: (i) The Initial Payment of $5,00010,000, on or before December 1October 31, 20042005; and (ii) The Quarterly Payments each in the amount of $10,000, payable on March January 1, June April 1, September July 1 and December October 1 of each year during the Lease Term, commencing with March January 1, 20052006. B. Following Company's exercise of the Purchase Option under Section 7 and resulting termination of the Lease as provided in Section 1, Company shall pay to Claimholder (i) the Claimholder's net profits interest (NPI) under Section 8A and (ii) the Claimholder's net smelter return (NSR) royalty under Section 8B. Company's obligation to make payment under Section 8A and Section 8B shall cease to accrue on the first to occur of (i) completion by Company of mining operations, residual leaching and reclamation in the Project Area or (ii) other decision of Company to terminate operations in the Project Area and, if Claimholder so desires, to reconvey the property to Claimholder once reclamation and other environmental obligations have been satisfied, although this provision shall not relieve Company from its obligation to make payments that accrued prior to such occurrence. C. All payments shall be paid in US US$dollars in immediately available funds. . D. Company hereby represents and warrants to Claimholder that it has adequate financial resources to make the payments required under this Section 3, as well as the Work Expenditures required under Section 4. . E. Company shall also issue on or before December 1, 2004 within 30 business days of execution of this Agreement to Searchlight 187,500 shares of CompanyCopperstone Mining, Inc.'s common stock and to Trust 62,500 shares (representing 9.99% of the Company's common capital stock, fully diluted. For no additional consideration, the Company shall, from time to time, issue to Searchlight such additional shares as shall be necessary to maintain Searchlight's 9.99% interest in the Company). The shares shall be validly issued, fully paid and nonassessable. The shares shall be restricted and eligible for resale pursuant to Rule 144 in accordance with said rule. Company, following its initial public offering, shall use its best efforts to comply with its reporting obligations under applicable securities law so as to enable Searchlight and Trust to utilize Rule 144 for resale of the shares following the applicable holding period.

Lease Payments and Other Payments. A. During the Lease Term, Company shall make the following payments to Claimholder, which shall constitute a portion of the purchase price for the Property: (i) The Initial Payment of $5,000, on or before December 1, 2004signing; and (ii) The Quarterly Payments each in the amount of $10,000, payable on March 1, June 115, September 1 15, December 15 and December 1 March 15 of each year during the Lease Term, commencing with March 1June 15, 2005. B. Following Company's exercise of the Purchase Option under Section 7 and resulting termination of the Lease as provided in Section 1, Company shall pay to Claimholder (i) the Claimholder's net profits interest (NPI) under Section 8A and (ii) the Claimholder's net smelter return (NSR) royalty under Section 8B. Company's obligation to make payment under Section 8A and Section 8B shall cease to accrue on the first to occur of (i) completion by Company of mining operations, residual leaching and reclamation in the Project Area or (ii) other decision of Company to terminate operations in the Project Area and, if Claimholder so desires, to reconvey the property to Claimholder once reclamation and other environmental obligations have been satisfied, although this provision shall not relieve Company from its obligation to make payments that accrued prior to such occurrence. C. All payments shall be paid in US US$dollars in immediately available funds. D. Company hereby represents and warrants to Claimholder that it has adequate financial resources to make the payments required under this Section 3, as well as the Work Expenditures required under Section 4. E. Company shall also issue reimburse Searchlight on or before December April 1, 2005 for the cost of staking and filing the 18 lode claims located in December 2004 in the Project Area at the rate of $150 per claim. F. Company shall also deliver to Searchlight 187,500 Searchlight, on or before April 1, 2005, 250,000 shares of Company's common stock of Galaxy Minerals Inc. ("GAXY"), said number to be increased proportionally in the event of any stock splits by GAXY between the date of this Agreement and to Trust 62,500 shares the date of Company's common stockdelivery of the shares. The shares shall be validly issued, fully paid and nonassessable. The shares shall be duly endorsed to Searchlight, with accompanying stock powers, but shall be restricted and eligible for resale pursuant to Rule 144 in accordance with said rule. Company, following its initial public offering, Company shall use its best efforts to induce GAXY to comply with its reporting obligations under applicable securities law so as to enable Searchlight and Trust to utilize Rule 144 for resale of the shares following the applicable holding period.

Lease Payments and Other Payments. A. During the Lease Term, Company shall make the following payments to Claimholder: THE SUM OF $20,000.00, which shall constitute a portion of the purchase price for the Property: (i) The Initial Payment of $5,000, on or before December 1ON OR BEFORE JANUARY 15, 2004; and (ii) The Quarterly Payments each in the amount of AND THE SUM OF $10,00020,000.00, payable on March 1, June 1, September 1 and December 1 of each year during the Lease Term, commencing with March 1ON OR BEFORE APRIL 15, 2005; AND THE SUM OF $20,000.00, ON OR BEFORE JULY 15, 2005. SHOULD THE COMPANY INSTALL AND COMMENCE PRODUCTION FACILITIES DESCRIBED IN 4B PRIOR TO NOVEMBER 15, 2005, THEN, ANY FURTHER PAYMENTS LISTED BELOW WILL NOT TAKE EFFECT, AND ROYALTY PAYMENTS OF 5% DESCRIBED IN 9B WILL COMMENCE. SHOULD PRODUCTION FACILITIES PROLONG OR BE PROLONGED AT THE COMPANIES DISCRETION, THEN THE SUM OF $20,000.00 ON OR BEFORE DECEMBER 2005 WILL BE PAID, AND, FURTHER PAYMENTS OF $20,000.00 QUARTERLY WILL PAID UNTIL PRODUCTION DESCRIBED IN 4B TAKES EFFECT. B. Following Company's Companies exercise of the Purchase Option under Section 7 and resulting termination of the Lease as provided in Section 1, Company shall pay to Claimholder (i) the Claimholder's net profits interest (NPI) under Section 8A and (ii) the Claimholder's , net smelter return (NSR) royalty under Section 8B. Company's Companies obligation to make payment under Section 8A and Section 8B shall cease to accrue on the first to occur of (i) completion by Company of mining operations, residual leaching and reclamation in the Project Area or (ii) other decision of Company to terminate operations in the Project Area and, if Claimholder so desires, to reconvey recovery the property to Claimholder once reclamation and other environmental obligations have been satisfied, although this provision shall not relieve Company from its obligation to make payments that accrued prior to such occurrence. C. All payments shall be paid in US US$ dollars in immediately available funds. D. Company hereby represents and warrants to Claimholder that it has adequate financial resources to make the payments required under this Section 3, as well as the Work Expenditures required under Section 4. E. Company shall also issue on or before December 1, 2004 to Searchlight 187,500 shares of Company's common stock and to Trust 62,500 shares of Company's common stock. The shares shall be validly issued, fully paid and nonassessable. The shares shall be restricted and eligible for resale pursuant to Rule 144 in accordance with said rule. Company, following its initial public offering, shall use its best efforts to comply with its reporting obligations under applicable securities law so as to enable Searchlight and Trust to utilize Rule 144 for resale of the shares following the applicable holding period.