WIND ENERGY LEASE AGREEMENT - Wyoming State Lands

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v. 08/2010 (d) Payments of the Operating Fee shall be made quarterly and shall be due within thirty (30) days of the end of each calendar quarter. 5.5 Minimum Fee. In no event shall the quarterly Operating Fee under Paragraph 5.4 of this Lease Agreement be less than $* per acre (prorated for partial quarters and adjusted for inflation based on the consumer price index as described in paragraph 5.4(b) ) for any calendar quarter during the term of this Lease Agreement after the Operations Date through the Removal Date. Article 6 ADDITIONAL AMOUNTS 6.1 Additional Amounts. In addition to the Rents provided above, Lessee shall also pay the additional amounts described herein. 6.2 Surface Impact Payments. Prior to surface disturbance, a surface impact payment shall be negotiated with the existing surface lessee of the Property and paid pursuant to the Rules and Regulations of the Board of Land Commissioners. 6.3 Financial Assurances. The Board shall require a bond as a condition of a wind energy lease sufficient to assure compliance with all terms and conditions of the lease. The bond amount shall not be reduced by any anticipated salvage value. All bonds posted on wind energy leases may be used by the Board for payment for costs of reclamation and for compliance with all other terms and conditions of the lease and rules pertaining to the lease. The initial amount shall be an Engineer’s Estimate of the cost of satisfying Lessee’s removal and surface restoration obligations, as provided in Article 11, and such amount shall be increased by 15% every ten (10) years (beginning with the tenth anniversary of the Bond) until the conclusion of the Lease Term. The Bond shall remain in effect until one year after the expiration of the Lease Term. Additional bonding to cover risks not anticipated at the time of the original wind energy lease may be required at any time by the Director, provided the Director first gives the lessee 30 days written notice stating the reason and amount of the bond. The bond will remain in place until the unanticipated risk is diminished. Bonds may be accepted in any of the following forms at the discretion of the Director: 1. Surety bond with a corporate surety registered in Wyoming. 2. Certificate of deposit in the name of the “Board of Land Commissioners”, with a state or federally insured financial institution in Wyoming. The wind energy lessee shall be entitled to all interest payments. 3. Other forms of surety as may be acceptable to the Director. WIND ENERGY LEASE AGREEMENT BETWEEN STATE OF WYOMING, BOARD OF LAND COMMISSIONERS AND * PAGE 10 OF 32
v. 08/2010 6.4 Interest. If Lessee shall fail to pay Owner any sum to be paid by Lessee to Owner hereunder within thirty (30) days after such payment is due, interest on the unpaid amount shall accrue at a rate of eighteen percent (18%) per annum, from the date payment was due until the date payment is made. Any such late charge shall be in addition to all other rights and remedies available to Owner hereunder or at law or in equity and shall not be construed as liquidated damages or limiting Owner’s remedies in any manner. Following the dishonor of any check presented for payment, Owner shall have the right, at Owner’s option, to require all further payments to be made by certified check, money order or wire transfer. For purposes of this Paragraph, any adjustment payment made by Lessee to correct a prior underpayment shall be treated as due on the date such underpayment was originally due; provided, however, any adjustment payment made by Lessee as the result of an independent audit conducted at Lessee’s expense shall not be subject to a late charge as described herein. 6.5 Taxes. Lessee shall be responsible for and pay all taxes, assessments, and any other fees or charges of any type, which may be levied against or assessed by reason of (i) Lessee’s leasehold interest hereunder or Lessee’s use of the Property, and (ii) the Lessee Improvements and Lessee’s, Assignee’s, or Sublessee’s equipment located on the Property. Lessee, Assignees and Sublessees shall not be responsible for the payment of any taxes, assessments, or other fees or charges of any type, which may be levied against or assessed by reason of (i) the value of the unimproved Property, and (ii) any improvements or equipment installed on the Property by Owner or lessees other than Lessee, Sublessees, or Assignees. Article 7 INSURANCE AND INDEMNITY 7.1 Insurance. Lessee shall provide, at its expense, coverage against claims arising out of Lessee’s, Sublessee’s, or their respective contractors’ and agents’ occupation and use of the Property under this Lease Agreement for bodily injury and death, and from damage to or destruction of property of others, but excluding loss of use thereof, with minimum combined single limits of Five Hundred Thousand Dollars ($500,000.00) per claimant and One Million Dollars ($1,000,000.00) per occurrence, accident or incident, which has a commercially reasonable deductible. (a) Owner shall be named as an additional insured by an endorsement of Lessee’s general liability policy for the Lease Term, upon Commencement of Construction. (b) It is understood and agreed that Lessee’s policies are primary and not contributory. All insurance certificates shall be submitted to Owner before the Commencement of Construction. All insurance certificates provided by Lessee must include a clause stating that the insurance may not be canceled, amended or allowed to lapse until the expiration of at least thirty (30) days advance written notice to Owner. (c) Lessee will report to Owner any physical damage to the Property caused by Lessee’s use of the Property for Wind Energy Development, other than impacts that WIND ENERGY LEASE AGREEMENT BETWEEN STATE OF WYOMING, BOARD OF LAND COMMISSIONERS AND * PAGE 11 OF 32
Page 1 and 2: v. 08/2010 WIND ENERGY LEASE AGREEM
Page 3 and 4: v. 08/2010 1.17 Minerals and Minera
Page 5 and 6: v. 08/2010 property of every kind a
Page 7 and 8: v. 08/2010 TERM 4.1. Term. This Lea
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Page 15 and 16: v. 08/2010 Assignee, and Lender Ass
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Page 19 and 20: v. 08/2010 this Lease Agreement, by
Page 21 and 22: v. 08/2010 performance, and authori
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Page 25 and 26: v. 08/2010 (b) Lessee’s violation
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WIND ENERGY LEASE AGREEMENT - Wyoming State Lands

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