Set-Net Cabin Site Use Permit

1. Permittor authorizes Permittee to use, the following described premises: n
The surface estate only of a reasonably square area of 100 feet along the general face of the bluff top edge and 100 feet back from the bluff. The location is approximately described as

Attached hereto as Exhibit "A", and made a part hereof, is a map which depicts the location of the premises. As used herein, the term "premises" refers to the real property described in this paragraph 1 and exhibit A.

2. This Permit is only valid so long as Permittee holds a current limited entry permit for set net salmon fishing issued by the Commercial Fisheries Entry Commission (CFEC), of the State of Alaska. The Premises are uplands in the vicinity of the tidelands upon which Permittee conducts a set net salmon fishing operation. The premises shall only be used by Permittee in connection with Permittee's set net salmon fishing operation, with the use further limited to the following:
1. Build and maintain one temporary, readily removable cabin, with outside dimensions not to exceed twenty (20) feet by sixteen (16) feet, plus an ‘outhouse’.
2. Human and pet occupancy only during set net salmon fishing season for purposes of Permittee’s operating the set net salmon fishing
3. Storage of fishing equipment, so long as any improvements for storage are temporary and not permanent
4. Permittee shall erect no other temporary or permanent

Permittee shall, at the termination of this Permit, return the premises to the Permittor in as good a state as the premises were at the beginning of this Permit, and shall, if Permittor so elects, remove the cabin and any other improvements.

3. This permit shall commence on the date set out in the opening paragraph above, and terminate December 31 of the fifth calendar year hence, unless sooner terminated or canceled as provided for herein or by operation of For example, if a Permit commences September 1, 2010, it would terminate December 31, 2015. This Permit shall terminate upon the death of Permittee, or upon Permittee ceasing its set net salmon fishing operation. Permittor may cancel this Permit, without cause, upon thirty days’ notice to the Permittee, between January and March of each year, however, Permittor, unless this Permit is canceled due to Permittee’s violations hereof, will not grant a set net cabin site use permit to anyone else sooner than the end of the fifth year under this Permit.
4. The registration fee is $500 and the user annual fee is $500 per calendar year payable to Paug-Vik Inc., Ltd., at Box 61 Naknek, Alaska 99633, or such other place as Permittor may The full $500 use fee for the remainder of the first calendar year shall be paid contemporaneously with signing of this Permit, and this Permit shall not be valid and binding until such first $500 payment is received. Subsequent calendar year payments are due January 15 of each of the following calendar years.
5. Permittee shall not, voluntarily or involuntarily or by operation of law, in whole or part, transfer, convey, sell, assign, gift, sub-permit or sublicense this Permit without the express written consent of Permittor which can be withheld with or without If Permittor grants its permission to transfer, convey, sell, assign, gift, sub-permit or sublicense, Permittee shall not be released from liability on this Permit unless the written consent provides for a release. If Permittee attempts to or does transfer, convey, sell, assign, gift, sub-permit or sublicense this Permit without the express written consent of Permittor, this Permit shall immediately terminate.
6. Permittee shall not allow any lien or encumbrance to be placed on the premises, but in the event a lien or encumbrance is placed on the premises, Permittee shall, at Permittee’s expense, immediately remove the lien or encumbrance. Permittee shall not pledge, mortgage or encumber this Permit or the
7. Permittee shall hold harmless, defend and indemnify Permittor, from and against all proceedings, claims, damages, penalties, fees, costs and expenses (including without limitation reasonable fees and expenses of attorneys and expert witnesses, investigatory fees, and cleanup and remediation expenses, whether incurred in connection with any judicial or administrative process or otherwise), arising directly or indirectly due to the acts or omissions of Permittee from the presence of contamination, hazardous waste or pollution (including but not limited to spills of petroleum products) on or under the premises or any property approximate to the premises or any governmental action alleging any such presence. The obligation and liabilities of the Lessee under this Section 7, as well as section 8, survive the termination of this Permit. 
   Permittor is not liable for, and Permittee waives all claims against Permittor, for all injuries to persons or damage to property, sustained by Permittee or any third party, due to the acts or omissions of Permittee carried on in connection with this Permit.
   Permittee is liable for all injuries to persons or damage to property due to the acts or omissions of Permittee carried on in connection with this Permit.
8. In addition to the indemnification set forth in section 7, Permittee shall hold harmless, defend and indemnify Permittor against all damages (including but not limited to damage to personal or real property wherever located), claims, suits, costs, losses, liabilities, and expenses (including but not limited to attorney's fees and legal expenses) due to Permittee's acts or omissions, including but not limited to, any construction, maintenance, repair or use of any equipment, fixtures, or other property currently existing or placed on the premises at any
9. During the term of this Permit, Permittee shall comply with all applicable statutes, regulations, ordinances, and rules. Permittee shall not commit, or suffer to be committed, any waste on the premises, or any
10. Time is of the essence of this Permit, and of each and every covenant, term, condition, and provision
11. Permittor shall have the use of the premises together with a right of reasonable access across the premises, provided Permittee’s use and access does not unreasonably interfere with Permittee's use of the
12. Permittor, its agents, and employees, have the right to access and enter upon the premises at all reasonable times to inspect the
13. In addition to any remedies provided elsewhere in the provisions of this Permit, upon breach of this Permit, the Permittor shall have the following rights:
    1. Permittor may give written notice of any breach, and in the event said breach is not remedied within thirty (30) days from the date of written notice, declare this Permit canceled or remove Permittee from the premises or both.; and
    2. Permittor may resort to any remedy provided by law or equity.
14. All notices given in connection with this Permit shall be sent by any of the following methods: hand delivery, fax, certified mail with mail deemed received in dive to seven days of when deposited in the
15. Permittee shall pay all taxes, assessments and levies as imposed, assessed, levied or charged against the premises and any buildings or improvements on the
16. Permittee shall, on notice from Permittor, resist and/or defend any action or proceeding by counsel satisfactory to Permittor which action is brought as a result of this Permit, Permittee's use of the demised premises or Permittee's acts or omissions.
17. Permittees shall, within five days of commencing use of the premises, install stakes at each of the four corners of the premises. Each stake will be made of wood or rebar, and flagged with orange surveyor’s tape, so as to be clearly visible at all times. Each tape shall be labeled with name of Permittee. Permittee shall maintain the stakes at all times prior to the cancellation or termination of this Permit. The stakes shall not be removed by the Permittee, and are for the Permittor and other inspectors to clearly identify the
18. Alaska law shall govern this Permit and its interpretation and enforcement, and the parties’ performance. Venue shall be in the trial courts for the State of Alaska at Naknek,
19. This is the entire agreement between the parties and replaces all prior agreements, representations and warranties. It shall only be changed or amended in writing signed by all parties to this
20. Permittee shall pay to Permittor all Permittor’s costs, including but not limited to actual reasonable attorneys’ fees, incurred to enforce the permit and secure payment of all monies due, attorney fees and costs to include but not be limited to fees and cost incurred before filing a lawsuit once a suit is filed, as well as fees and costs on appeal.

PERMITTOR: PAUG VIK INC., LTD.

By:
GENERAL MANAGER