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                                                                    EXHIBIT 10.2

                             SALT AND SURFACE LEASE

STATE OF LOUISIANA

PARISH OF ST. MARY

                  THIS AGREEMENT OF LEASE made and entered into this 21st day of
June , 1961, by and between JOHN TAYLOR CAFFERY, individually, and as Agent and
Attorney-in-Fact for MRS. MARCIE CAFFERY GILLIS, COL. MARCEL A. GILLIS, MRS.
BETHIA CAFFERY McCAY, PERCY L. McCAY, MRS. MARY LOUISE CAFFERY ELLIS, MRS. EMMA
CAFFERY JACKSON,, EDWARD R. JACKSON, LIDDELL CAFFERY, MRS. MARION CAFFERY
CAMPBELL, and GEORGE LEE CAMPBELL, M.D., by virtue of a power of attorney dated
September 1, 1954, passed before Edward F. Wegmann, Notary Public of Orleans
Parish, Louisiana, a certified copy whereof is attached hereto as part hereof,
currently in full force and effect, JOHN TAYLOR CAFFERY, as Agent and
Attorney-in-Fact for MRS. MARTHA GILLIS RESTARICK, MRS. KATHERINE BAKER SENTER,
MISS CAROLINE BAKER, MRS. BETHIA McCAY BROWN and DONELSON CAFFERY McCAY, by
virtue of a power of attorney passed before Patrick A. Schott, Notary -Public of
Orleans Parish, Louisiana, on December 1, 1956, a certified copy whereof is
attached hereto as part hereof, currently in full force and effect, JOHN TAYLOR
CAFFERY, as Agent and Attorney-in-Fact for LUCIUS HOWARD McCURDY, JR. AND JOHN
ANDERSON McCURDY, by virtue of a power of attorney passed before R.L. Redfearn,
Notary Public of Orleans Parish, Louisiana, on July 5, 1960, a certified copy
whereof is attached hereto as part hereof, currently in full force and effect,
EDWARD RADER JACKSON III, individually and as Trustee for DONELSON CAFFERY
JACKSON, a minor, by virtue of trust established by notarial act before Taylor
Caffery, Notary Public of Orleans Parish, Louisiana, June 20, 1955, currently in
full force and effect, duly

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authorized by an order of the 24th Judicial District Court for the Parish of
Jefferson, State of Louisiana, dated January 5, 1961, a certified copy whereof
is attached hereto as part hereof, and THE J.M. BURGUIERES COMPANY, LTD., a
Louisiana corporation domiciled in New Orleans, Louisiana, herein represented by
Edward E. Burguieres and Joan Burguieres Brown, its Assistant-Secretary and
Managing Director and its Director, respectively, duly authorized by virtue of a
resolution adopted at a meeting of its Board of Directors, all as will appear by
reference to a certified copy of said resolution which is annexed hereto as part
hereof (all of the aforesaid parties being hereinafter sometimes called
"Lessor"), and THE CAREY SALT COMPANY, a Kansas corporation, authorized to do
and doing business within the State of Louisiana, herein represented by HOWARD
J. CAREY, JR., its President, duly authorized by resolution of its Board of
Directors, a certified copy of which is annexed hereto as part hereof,
(hereinafter sometimes called "Lessee").

                              W I T N E S S E T H:

     1. Lessor, in consideration of the Development and Production Royalties
herein provided to be paid to Lessor, of the agreements of Lessee herein
contained, and other valuable considerations, hereby grants, leases and lets
exclusively unto Lessee for the purposes of digging, sinking, constructing and
building a shaft or shafts necessary or proper for the establishment and
operation of a salt mine, and/or boring, drilling or sinking a well or wells
into the salt, and mining and producing salt from the mine or mines and/or well
or wells to be established by Lessee, including the building of the necessary
surface facilities, structures, plants, conveyors, wharves, docks, warehouses,
power stations, telephone and telegraph lines, pipe lines, utility lines and
other structures and appurtenances in order to, produce, take care of, treat,
process, transport, store and own salt produced from the leased lands and for
dredging and maintaining the canal hereinafter specifically mentioned,
constructing roads and bridges, housing

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its employees, drilling and operating water wells and equipment in connection
therewith for use in connection with or incidental to operation of the salt mine
or mines and/or well or wells and other physical facilities, and for all
structures, equipment, servitudes, privileges and all other rights necessary,
useful or convenient in connection with any such operations conducted by Lessee
on the leased lands, all, however, subject to the terms and to the conditions
hereinafter stated, the following lands situated in the Pariah of St. [Mary,
State of Louisiana, to-wit:

                  The lands outlined in red on the map or aerial photograph
                  attached hereto and made a part hereof as Exhibit "A,"
                  including the land hereinafter referred to in Paragraph 5 (a)
                  shown in green on said map or aerial photograph; which said
                  lands shall hereinafter sometimes be referred to simply as
                  "Cote Blanche Island"; the lands herein leased being the
                  following described lands to-wit:

                  That certain Island or tract of land, together with all of the
                  rights, ways, privileges, servitudes and advantages thereunto
                  belonging or in anywise appertaining, situated in the Parish
                  -of St. Mary, State of Louisiana, known as Cote Blanche
                  Island, sometimes described as comprising all of Sections 19,
                  20, 21, 22, 23, 24 and 25 of Township 15 South, Range 7 East;
                  sometimes described as lying in Township 15 South, Range 7
                  East and being bounded on the South by Cote Blanche Bay, on
                  the West by lands of John M. Caffery in Sections 6 and 11 and
                  the lands of Cypremort Land Company in Section 14, on the
                  North by lands of John M. Caffery in Sections 6, 5 and 12 and
                  on the East by lands of John M. Caffery in Section 12, by
                  lands of The Chicago Title and Trust Company in Section 7, and
                  by lands of John M. Caffery in Section 13; and sometimes
                  described as comprising all or parts of Sections 5, 6, 7, 10,
                  11, 12, 13, 14 and 15 of Township 15 South, Range 7 East; and
                  sometimes more particularly described as follows:

                  (A) A tract of land measuring eight hundred arpents, more or
                  less bounded on the Westerly side by lands belonging in
                  February, 1836, to Dr. Walter Brashear and Owen Thomas, and
                  being the same tract which B.G. Tenney and R.C. Nicholas
                  purchased from C.N. Thomas and Susan Jett Thomas, wife of
                  Charles W. Howard, by act passed before W. Christy, late
                  Notary Public in and for the City of New Orleans, La., on the
                  4th day of February, 1836.

                  (B) Another tract of land adjoining the one described situated
                  on the Northwest end of Cote Blanche Island, containing 400
                  arpents, formerly known as Dr. Walter Brashear tract, and
                  which was purchased by the said Tenney and Nicholas at public
                  sale made on March 3rd, 1836, by John

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                  Moore, Parish Judge, as property belonging to Dr. Walter
                  Brashear and his children as heirs of Margaret Brashear, his
                  deceased wife.

                  (C) Another tract of land on the Southwest corner of said Cote
                  Blanche Island, containing about 320 arpents, bounded North
                  and East by lands formerly belonging to said Tenney and
                  Nicholas, and on the, South and West by the Bay and Sea Marsh,
                  and being the same tract purchased by the said Tenney and
                  Nicholas from Owen, Mary and Sophie Thomas, as per deed
                  executed and recorded in the Recorder's Office in the Parish
                  of St. Mary, in Book E of Conveyances, Page 73.

                  LESS AND EXCEPTING FROM THE ABOVE DESCRIBED PROPERTY:

                  That portion of the extreme northern edge of Cote Blanche
                  Hummoch, commonly called Cote Blanche Island, situated
                  in-Township Fifteen (15) South, Range seven (7) East,
                  Southwestern Land District of Louisiana in the Parish of St.
                  Mary, immediately south of, and rendering fractional, Section
                  Five (5) of said Township and Range, and containing in the
                  aggregate 7.7b acres and to be composed of three tracts of
                  0.94 acres, 1.86 acres and 4.96 acres, all as delineated upon
                  a map or plat made by Walter Y. Kamper, Surveyor and Civil
                  Engineer, dated in May, 1917, attached to and made part
                  thereof for a full descript on of the property conveyed, to an
                  act of sale by the J.M. Burguieres Company, Ltd., and Donelson
                  Caffery to The Albert Hanso Lumber Company, Ltd., dated August
                  31, 1917, recorded January 4, 1919, Book 3-T page 473 No.
                  45501, conveyance records of St. Mary Parish, Louisiana.

               2. Lessee, in exercising the rights herein granted, shall not use
          any portion of the surface of the leased property other than:

                    (A) A 160 acre tract of land to be selected by Lessee within
               forty-five (45) days after the approval of surveyors as provided
               in Paragraph 36, surveyed by a surveyor approved by Lessor and
               the survey placed of record by Lessee in the public records of
               St. Mary Parish, Louisiana, the request for approval of surveyors
               to be made within forty-five (45) days of the effective date of
               this lease. The tract shall not include any of the present Shell
               production facilities or wellheads.

                    Lessee shall have the exclusive use of this 160 acre tract
               of land, shall have the right to fence or otherwise enclose same,
               and may use the surface thereof for

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               any and all legal uses and purposes whatsoever that it may desire
               in connection with the salt business contemplated herein.

                    It is understood and agreed that on said 160 acre tract of
               land Lessee's principal surface facilities shall be situated,
               including, but without limitation on the rights and uses
               otherwise authorized, the surface entrance to Lessee's mine or
               mines, shaft or shafts, well or wells, and Lessee's plants,
               offices, warehouses, power stations and all other surface
               structures other than hereinbelow mentioned.

                    (B) Lessee contemplates the improvement and use of a canal
               presently running from the Intracoastal Canal in a southerly
               direction near the western edge of the leased premises,
               originally dredged by Humble Oil & Refining Company, and the
               extension of said canal by Lessee, turning East and traversing
               the island a sufficient distance to have barges reasonably close
               to the surface facilities of Lessee. For this purpose Lessee
               shall have the right to dredge and maintain such a slip or canal
               across the leased premises with a maximum width of 200 feet. The
               canal sides shall be piled and bulwarked where the canal first
               enters the leased premises for a distance o(pound)at least
               thirty-five (35) feet. Lessee obligates itself to maintain its
               canal, bulwarks and piling in good repair so as to reasonably
               guard against erosion. At such time as this lease may terminate
               Lessee agrees, upon request of Lessor, to pile and bulwark the
               entire entrance to the canal, where it first enters the leased
               premises, and to backfill the canal with clam shells or gravel or
               similar material for a distance of at least thirty-five (35) feet
               from its entrance on the island so as to guard against future
               erosion.

                    Lessee shall not extend the canal beyond the 160 acre tract
               hereinabove referred to and whereon Lessee's principal surface
               facilities are to be situated.

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                    (C) A strip of land 150 feet in width between the location
               of Lessee's principal surface facilities and its canal
               hereinabove referred to in subparagraph 2(B), a strip of land 150
               feet in width between the location of Lessee's principal surface
               facilities and Cote Blanche Bay, and a strip of land 155 feet in
               width along each bank of the afore mentioned canal; said 150 foot
               strips of land to be used by Lessee primarily for transporting
               its products, as well as materials, supplies and equipment, and
               waste disposal, whether by truck, conveyor belt, pipe line, or in
               any other manner. Any installations or improvements by Lessee on
               each of said 150 foot access strips shall be so constructed or
               installed as to permit Lessor to cross from one side to the other
               on foot or in vehicles, at approximately surface level, at some
               point approximately midway of the length of each of the two said
               150 foot access strips, provided, however, that no bridge or
               underpass shall be required over or under the canal referred to
               in subparagraph 2(B) above, or the 155 foot strips on either side
               thereof. Said 155 foot strips are intended primarily for
               wharfage, dockage or storage, but may likewise be used for the
               same purposes as the 150 foot strips.

                    The strips of land herein authorized for Lessee's use are
               not to be fenced, or otherwise enclosed; it being intended that
               Lessors are to have access thereto and the use thereof insofar as
               such use does not interfere with or disturb the rights of Lessee.
               Lessee shall not construct facilities on the 150 foot strips
               (from Lessee's principal surface locations to the shore of Cote
               Blanche Bay and to the canal to be installed by Lessee) in such a
               manner as to cut off or hinder vehicular traffic from moving
               across the same from one side to the other in at least one place
               on each of them, so as to allow ready access by Lessor, its heirs
               or assigns, to all parts of Cote Blanche Island.

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                    (D) Lessee shall also have the right to use the surface of
               such additional portions of the leased premises as may be
               reasonably necessary for drilling, maintaining and operating
               water wells and brine wells at any reasonable place or places on
               the leased premises (including the 160 acre tract hereinabove
               described), with water and brine lines therefrom to Lessee's
               surface facilities, and for constructing and maintaining
               telephone and telegraph lines, pipe lines, power lines, gas
               lines, roads and other like facilities contemplated hereunder,
               together with the use of existing roads and the right of ingress
               to and egress from and across said leased premises for the proper
               enjoyment of the rights granted herein. At the request of Lessor,
               Lessee shall bury below plow depth any water, pipe or brine lines
               installed by it outside of the 160 acre tract.

               3. Lessor shall have the right to the full use and enjoyment of
          the surface of all other portions of the leased premises not
          hereinabove set forth as subject to use by Lessee, together with the
          right to use the 150 foot strips as hereinabove referred to in
          subparagraph 2(C), insofar as Lessor's use thereof does not interfere
          with or disturb the rights of Lessee.

               4. Lessor shall have the full right to grant future oil, gas and
          other mineral leases, except salt, provided that each such future oil,
          gas and mineral lease shall expressly obligate the lessee therein to
          cooperate with Lessee herein in the conduct of its operations in order
          that the purposes of both leases may be best effectuated, and Lessee
          herein expressly agrees to cooperate with any such future oil, gas and
          mineral lessee in the conduct of its operations in order that the
          purposes of both leases may be best effectuated, particularly, but not
          limited to, arranging with the oil, gas and mineral lessee so as to
          permit drilling of oil and/or gas wells within the areas affected by
          this lease.

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               5.   It is expressly understood and agreed that unless written
          permission of Lessor is first obtained:

                    (A) there is to be no mining of salt, drilling of brine
               wells, or use or sale of brine for its salt content by Lessee, or
               anyone claiming by or through Lessee, on or under the land
               identified in green on map or aerial photograph attached hereto
               and made a part hereof as "Exhibit `A' "; and

                    (B) there is to be no digging for or mining of rock salt by
               Lessee, or anyone claiming by or through Lessee, in or from any
               formation, strata or horizon lying below a depth of 3,000 feet
               from the surface of the earth, provided this shall not restrict
               the right of Lessee to drill brine wells and conduct brine
               operations at a greater depth.

               Except to such extent as is herein otherwise specifically
          authorized, it is intended hereby that neither Lessee nor Lessor, nor
          anyone claiming by or through either of them, is to (i) mine salt,
          drill brine wells, or use or sell brine for its content from said land
          referred to in subparagraph 5(A) above; or (ii) dig for or mine rock
          salt from depths below 3,000 feet from the surface of the earth.

               6. Lessor shall, however, have the right to leach out or excavate
          or grant to others the right to leach out or excavate salt cavities on
          said land hereinabove referred to in subparagraph 5(A), and said right
          is hereby expressly reserved to Lessor. It is recognized and
          understood that the reservation by Lessor of the rights herein set
          forth with respect to said land referred to in subparagraph 5(A)
          above, is, among other purposes, specifically in order that Lessor may
          retain sufficient area and salt wherein salt cavities may be created
          for the storage of gaseous and liquid substances, and, accordingly,
          Lessor shall have the right to use and/or authorize others to use such
          cavities for the storage of gaseous and liquid substances; provided,

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          however, that no fissionable or radioactive materials shall be stored
          in any such cavity or cavities at any time. Lessor agrees specifically
          to assume full responsibility and liability for any loss or damage in
          proper amount that Lessee may sustain in any manner arising out of or
          in connection with the excavation, construction, installation, care
          and/or maintenance of any such cavity or cavities or the use thereof,
          or the exercise by Lessor or any one claiming by, through or under
          Lessor, of any of the rights reserved above, including, but not
          limited to, breaking into any mine or mines, and/or well or wells, of
          Lessee, or loss or damage to any surface facilities or structures of
          Lessee; and Lessor agrees, immediately prior to the commencement of
          any such operations, to indemnify Lessee against any and all such loss
          and damage, and to furnish bond or carry adequate insurance for the
          purpose, delivering to Lessee evidence thereof in an acceptable form.

               7. The lands hereinabove described in this lease are subject to
          an oil, gas and mineral lease executed by John Taylor Caffery, et
          alii, as Lessor, under date of November 25th, 1953, in favor of Shell
          Oil Company, as Lessee, an extract of the provisions of which lease is
          recorded in St. Mary Parish, Conveyance Book 8-Q, Entry Number 89040,
          and amended by instrument dated November 25th, 1953, recorded in St.
          Mary Parish, Conveyance Book 8-W, Entry No. 90665, and in which lease
          Lessor reserved the right to thereafter mine and produce salt from the
          said premises, Lessor herein granting unto Lessee herein all rights so
          reserved as to the mining and production of salt by Lessor in the
          above referred to lease and amendment, except those specifically
          reserved herein to Lessor.

               8. No map or plat herein referred to, or required to be furnished
          hereunder, shall be used by anyone other than the parties hereto for
          the purposes of this agreement as a basis of attempting to establish
          what any person may believe to be the boundary of Cote Blanche Island,
          and the parties hereto shall not be stopped from asserting as against
          third parties that

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          some other boundary is the correct boundary of Cote Blanche Island. In
          other words, any such map used or referred to in connection herewith
          is for the purposes of this agreement and the convenience of the
          parties hereto, and shall have no other effect, bearing, consequence,
          result, applicability, reference or relevancy to any other ownership,
          map, thing, or otherwise whatsoever.

               9.   For the purposes of this lease, the following definitions
          shall apply:

                    (A) "Salt" shall mean chloride of sodium, whether shipped in
               the form in which it is mined, or whether it is additionally
               crushed, evaporated, otherwise processed or refined before
               shipment.

                    (B) "Rock Salt" refers to salt produced by mining, as
               distinguished from salt produced by brine operations or other
               processes.

                    (C) "Ton" shall refer to a short ton of 2,000 pounds.

                    (D) "Salt Shipped" shall mean all salt shipped from the
               leased premises, or used or consumed on the premises.

                    (E) "Minimum Tons of Salt to be Shipped" shall indicate the
               number of tons which, as a minimum, Lessee is obligated either to
               ship each calendar year this lease shall remain in effect
               subsequent to the Primary Term, or pay Production Royalty thereon
               just as though the same had been shipped.

                    (F) "Primary Term" shall refer to the period of time between
               the effective date hereof and the date of completion of
               Development Work; provided, however, that in no event shall the
               Primary Term of this lease extend beyond a period of five (5)
               years from the effective date hereof.

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                    (G) "Development Work" refers to the erection of the
               necessary physical facilities, the sinking of the shaft or
               shafts, the opening of working faces, and such other work as is
               preliminary to the actual commencement of mining operations,
               together with the initial mining, producing and shipping by
               Lessee of 190,000 tons of salt from the leased premises,
               exclusive of salt excavated or otherwise removed in the digging
               of the shaft or shafts.

                    (H) "Development Royalty" refers to the annual sum of
               $10,000.00 herein provided to be paid by Lessee to Lessor during
               the Primary Term of this lease, and shall cover and represent all
               royalty due on the salt removed in the digging of the shaft or
               shafts and the removal of the initial 190,000 tons of Salt
               Shipped from the leased premises during said Primary Term.

                    (I) "Production Royalty" refers to the royalty payable by
               Lessee to Lessor subsequent to the expiration of the Primary Term
               for Salt Shipped or on the Minimum Tons of Salt to be Shipped.

                    (J) "Base Period" means the initial fractional part of a
               calendar year, if any, and the first full calendar year for which
               Production Royalty is due, this being a period which commences
               immediately when the Primary Term of this lease comes to an end.

                    (K) "Basic Production Royalty" means Production Royalty per
               ton of Salt Shipped to be paid by Lessee to Lessor quarterly each
               year after the Primary Term hereof, subject to annual retroactive
               adjustment for each calendar year subsequent to the Base Period
               in the first quarter of the following year in the event of a
               change in the Base Average Price or Revised Base Average Price
               for that particular year.

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                    The Basic Production Royalty shall be' twenty-two cents
               (22(cent)) per ton of Salt Shipped, until adjusted as hereinbelow
               provided in paragraph 12.

                    The amount of the Basic Production Royalty to be paid by
               Lessee to Lessor per ton shall be subject to adjustment upward or
               downward in 2 1/2(cent) per ton units, in the manner hereinafter
               more fully set forth in paragraph 12, and when so adjusted shall
               thereafter continue as the Basic Production Royalty to be paid by
               Lessee to Lessor, subject to retroactive adjustment each year,
               until a further adjustment results from a subsequent change in
               the Base Average Price or Revised Base Average Price.

                    (L) "Deduction from Basic Production Royalty" shall mean an
               amount of two cents (2(cent)) per ton of Salt Shipped during the
               first full thirty (30) calendar months and the initial fractional
               part of a calendar month, if any, for which Production Royalty is
               due, which amount shall be deducted from the Basic Production
               Royalty otherwise due during such months.

                    (M) "Average Price" means, for the period involved, the
               average price received by Lessee from the Sale in Bulk of rock
               salt produced from the leased premises of the grades Coarse Rock
               Salt and Mine Run or Mill Run Rock Salt, determined by dividing
               the total dollars received by Lessee from the Sale in Bulk of
               Rock Salt of said grades, f.o.b. mine (or adjusted to allow for
               any freight factor included in the price), by the total tons of
               said grades sold. There shall be included in such determination
               for any period involved the tons of Mine Run or Mill Run Rock
               Salt used or consumed by Lessee, its successors or assigns, and
               not sold to a purchaser, as though sold at the Current Market
               Price of Mine Run or Mill Pun Rock Salt prevailing on the last
               day of the period in question.

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                    (N) "Base Average Price" means the Average Price for the
               Base Period, but in no event shall the Base Average Price be less
               than $3.70 per ton.

                    (O) "Annual Average Price" means the Average Price for each
               calendar year subsequent to the Base Period. This Annual Average
               Price shall be determined for each calendar year during the first
               quarter of the following year.

                    (P) "Revised Base Average Price" shall be the amount
               determined in the manner hereinafter set forth as an adjustment
               of the Base Average Price or a Revised Base Average Price
               previously determined and prevailing.

                    In the event the Annual Average Price as above defined
               should, for a particular year, be as much as fifty cents
               (50(cent)) per ton above or below the Base Average Price or the
               Revised Base Average Price theretofore prevailing, then the Base
               Average Price or Revised Base Average Price theretofore
               prevailing shall be adjusted up or down in the amount of fifty
               cents (50(cent)) per ton, or multiples thereof, according to
               whether or not the Annual Average Price increased or decreased.

                    Adjustments in the "Base Average Price or Revised Base
               Average Price shall only be in units of fifty cents (50(cent)),
               it being intended that no adjustment is to be made for the
               fractional part of any fifty cent (50(cent)) unit that the Annual
               Average Price for a particular year is above or below the Base
               Average Price or Revised Base Average Price. For example, if the
               Annual Average Price for a given year reflects a difference of
               forty-nine cents (49(cent)) above or below the prevailing Base
               Average Price or Revised Base Average Price there is to be no
               adjustment; if such difference is in the amount of sixty-three
               cents (63(cent)), the Base Average Price or Revised Base Average
               Price shall be

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               increased or decreased fifty cents (50(cent)), as the case may
               be; if such difference is in the amount of $1.47, the Base
               Average Price or Revised Base Average Price shall be increased or
               decreased $1.00, as the case may be.

                    (Q) Use herein of the term "Base Average Price or Revised
               Base Average Price" means Base Average Price until such time as a
               Revised Base Average Price has been determined and thenceforth
               means Revised Base Average Price.

                    (R) "Coarse Rock Salt" as used herein means those grades or
               screenings of Rock Salt, exclusive of Mine Run or Mill Run Rock
               Salt, Sold in Bulk, 90% or more of which, in a screen analysis,
               is retained on a U.S. Standard ]6 mesh sieve, and which contains
               no additives.

                    It is recognized by the parties that at the present time
               Coarse Rock Salt consists of the following four grades:

                                 (1)   No. 2
                                 (2)   No. 1
                                 (3)   "A" Grade
                                 (4)   "C" Grade.

                    It is further recognized that classification, description
               and identification of grades of Coarse Rock Salt may vary or
               change from time to time, and accordingly, it is intended that
               Coarse Rock Salt as used herein shall continue to include all
               salt presently included in the grades above mentioned,
               notwithstanding any change in the manner in which such salt may
               hereafter be classified, described or identified, and, further,
               to include in Coarse Rock Salt any and all other Rock Salt
               grades, other than Mine Run or

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               Mill Run Rock Salt, Sold in Bulk, 90% or more of which, in a
               screen analysis, is retained on a U.S. Standard 16 mesh sieve,
               and which contains no additives.

                    (S) "Mine Run or Mill Run Rock Salt" is that Rock Salt Sold
               in Bulk which has been subjected to primary and secondary
               crushing so that it passes through a screen with approximately
               5/8" openings, and not otherwise classified into grades or sizes.

                    (T) "Current Market Price of Mine Run or Mill Run Rock Salt"
               is considered as the price at which Southern Louisiana Mine Run
               or Mill Run Rock Salt of equal quality is available from other
               producers of salt, f.o.b. mine, to any purchaser of salt in
               quantities in excess of five thousand (5,000) tons of salt on an
               annual contract basis, and the parties agree that this price at
               the present time is $3.70 per ton.

                    (U) "Sale in Bulk" or "Sold in Bulk" as used herein shall be
               considered as any sale of Coarse Rock Salt or of Mine Run or Mill
               Run Rock Salt not in bag or container form or in compressed
               shapes.

               10. Subject to the terms, conditions and provisions hereinafter
          set forth, this lease shall remain in force for a period of
          ninety-nine (99) years from the effective date hereof; provided,
          however, that in the event actual mining operations are not conducted
          during any five (5) consecutive years subsequent to the Primary Term
          hereof, Lessor shall, at its option, have the right to cancel and
          terminate this lease, notwithstanding the payment of minimum
          Production Royalties during any such five (5) year period, by giving
          notice in writing to Lessee that it exercises its option for such
          cancellation and termination, such cancellation and termination to
          become effective sixty (60) days from the date of receipt by Lessee of
          such notice from Lessor of its intent to terminate.

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          Lessee agrees, subject to its right to surrender and terminate this
     lease as herein otherwise set forth, that it will commence such Development
     Work as is preliminary to the actual commencement of mining operations
     within two (2) years from the effective date of this lease, and will
     thereafter proceed with such Development Work with reasonable diligence.

          Lessee shall have the right to surrender and terminate this lease
     during the Primary Term hereof by giving Lessor notice in writing of its
     intention to so surrender and terminate the lease at least sixty (60) days
     prior to the date on which such surrender and termination is to become
     effective, and said notice shall set forth specifically the date on which
     the surrender and termination is to become effective. Upon compliance with
     this provision, this lease shall cease and terminate on the effective date
     of surrender as set forth in the aforementioned notice, and the rights and
     obligations of the parties shall be the same as though the lease had come
     to an end through expiration of its term.

          Should Lessee exercise its right to terminate this lease during the
     Primary Term hereof, Lessee agrees and obligates itself to restore
     substantially to its original condition the surface of the property other
     than the canal which shall be governed by subparagraph 2(B) herein. Should
     Lessor, within thirty (30) days from the date Lessor receives notice from
     Lessee of its intent to terminate the lease, so request in writing, Lessee
     agrees and obligates itself to plug or fill any holes or shafts created by
     it on the leased premises, other than the canal, provided Lessor makes
     available for the purpose an adequate supply of dirt situated on the 160
     acre portion of the leased premises referred to in subparagraph 2(A), and
     provided further that such dirt is to be taken reasonably evenly off the
     surface so as to not leave any other holes or objectionable depressions in
     or on the surface of the premises.

                                       16
<Page>

          After expiration of the Primary Term, Lessee shall have the right to
     surrender- and terminate this lease upon giving Lessor notice in writing of
     its intent to so surrender and terminate the lease at least two (2) years
     prior to the date on which such surrender and termination is to become
     effective, and said notice shall state specifically the date on which said
     termination shall become effective. Upon compliance with this provision,
     this lease shall cease and terminate on the effective date of the surrender
     as set forth in the above mentioned notice, and the rights and obligations
     of the parties shall be the same .as though the lease had come to an end
     through expiration of its term.

          Subject to the additional Production Royalty payment hereinafter set
     forth, Lessee shall have the right, after the expiration of the Primary
     Term hereof, to surrender and terminate this lease upon shorter notice of
     its intention to do so, provided it gives Lessor notice in writing of its
     intent to so surrender and terminate the lease and sets forth specifically
     the date on which such surrender and termination is to become effective. In
     the event of termination on less than two (2) years notice, Lessee agrees
     that if the Production Royalty for the period from date of notice to date
     of termination is less than $20,000.00, it will supplement the said amount
     so that Lessor shall receive a minimum of $20,000.00 Production Royalty for
     such period. While it is contemplated that notice of termination under the
     provisions of this paragraph will not be given by Lessee arbitrarily or
     without just cause, and that Lessee will not so terminate except in the
     exercise of sound business judgment, based on facts and circumstances
     beyond Lessee's control that render it unprofitable, impracticable or
     undesirable for Lessee to continue its operations, if Lessor is of the
     opinion that Lessee has acted arbitrarily in giving such notice, it shall
     so notify Lessee in writing, and any dispute between Lessor and Lessee in
     connection therewith shall be determined by arbitration, in accordance with
     the provisions of paragraph 27 hereof. In the event

                                       17
<Page>

     it is agreed or found by arbitrators that the termination is arbitrary,
     then the minimum Production Royalty to be paid by Lessee to Lessor for the
     period from date of notice to date of termination shall be $56,000.00
     instead of $20,000.00.

          11. During the Primary Term of this lease, as hereinabove defined,
     Lessee shall pay to Lessor an annual Development Royalty of $10,000.00, and
     which Development Royalty shall be in lieu of all Production Royalties
     during the Primary Term including Production Royalties on all salt removed
     in the digging of the shaft or shafts and for the initial 190,000 tons of
     salt mined, produced and shipped from the leased premises during the
     Primary Term hereof. The payment of the Development Royalty of $10,000.00
     for the first year of the Primary Terra is acknowledged. Subsequent
     Development Royalties for succeeding years of the Primary Term are to be
     paid annually in advance, beginning on or before one year from the date of
     this agreement of lease.

          It is understood and agreed that each annual Development Royalty
     payment is intended to cover a full twelve month period, and the
     Development Royalty of $10,000.00 for the then current year during which
     the Primary Term of this lease comes to an end is to be prorated, such
     proration to be in the same proportion as that elapsed portion of the year
     for which such Development Royalty has been paid bears to a full twelve
     month period, and Lessee shall be entitled to apply the remaining portion
     of that year's Development Royalty on Production Royalty accruing for salt
     thereafter mined, produced and shipped.

          12.  After expiration of the Primary Term Lessee shall pay Lessor
     Production Royalty on all Salt Shipped hereunder as follows:

               (A) During the first thirty (30) full calendar months and the
          initial fractional part of a month, if any, for which Production
          Royalty is payable, Lessee shall

                                       18
<Page>

          pay Lessor the Basic Production Royalty of twenty-two cents (22
          (cent)) per ton, subject to the provisions for adjustment as
          hereinbelow set forth, from which shall be deducted the two cents
          (2(cent)) per ton Deduction from Basic Production Royalty.

               (B) Subsequent to the first thirty (30) full calendar months and
          the initial fractional part of a month, if any, for which Production
          Royalty is payable, Lessee shall pay Lessor the Basic Production
          Royalty of twenty-two cents (22(cent)} per ton, subject to the
          provisions for adjustment hereinbelow set forth.

               The Basic Production Royalty shall be adjusted up or down, as the
          case may be, whenever upon expiration of any calendar year subsequent
          to the Base Period it is determined that the Annual Average Price for
          that particular year is above or below the Base Average Price or
          Revised Base Average Price previously determined and prevailing to
          such extent as to cause an adjustment therein.

               The Production Royalty per ton payable by Lessee to Lessor for
          the preceding calendar year shall be increased if the Revised Base
          Average Price for such preceding calendar year has increased and shall
          be decreased if the Revised Base Average Price for such preceding
          calendar year has decreased, the amount of retroactive adjustment of
          Production Royalty for such preceding calendar year to be calculated
          as follows:

               Divide the amount of the increase or decrease in the Revised Base
          Average Price for the particular calendar year above or below the
          previous Base Average Price or Revised Base Average Price by fifty
          cents (50(cent)) and multiply the result by 2 1/2(cent). The amount
          thus determined is the amount by which the Production Royalty for such
          calendar year is to be increased or decreased, as the case may be.

                                       19
<Page>

               The amount by which Production Royalty is to be adjusted for a
          particular calendar year is to be added to or subtracted from the
          Basic Production Royalty paid for that year, and the amount thereby
          determined shall thenceforth be the Basic Production Royalty for
          payment of Production Royalty during the year then in progress and
          thereafter, subject to further adjustment in accordance with the
          provisions hereof, and the previous Basic Production Royalty
          theretofore prevailing shall no longer be applicable.

               As an example of the foregoing: if the Revised Base Average Price
          for a particular year shows an increase of $1.00 above the Base
          Average Price or Revised Base Average Price theretofore prevailing,
          then $1.00 is to be divided by fifty cents (50(cent)), and the
          resultant quotient of two is then multiplied by 2 1/2(cent), thereby
          establishing a five cent (5(cent)) increase in Production Royalty to
          be paid by Lessee to Lessor retroactively for the preceding calendar
          year. This five cent (5(cent)) increase is then to be added to the
          Basic Production Royalty theretofore prevailing. Assuming this amount
          to have been twenty-two cents (22(cent)), a new Basic Production
          Royalty of twenty-seven cents (27(cent)) per ton would thereby be
          established, and Lessee would thereafter pay to Lessor a Basic
          Production Royalty of twenty-seven cents (27(cent)) per ton, until
          such time as the Revised Base Average Price was again adjusted, where
          upon the applicable increase or decrease in the Basic Production
          Royalty would again be determined in the same manner as hereinabove
          set forth, and a new Basic Production Royalty established. If in the
          above example the $1.00 increase in the Base Average Price or Revised
          Base Average Price were to occur during the period in which the
          Deduction from Basic Production Royalty is applicable, the following
          would result: To the Basic Production Royalty of twenty-two cents
          (22(cent)) would be added the indicated five cent (5(cent)) increase
          in Production Royalty,

                                       20
<Page>

          producing a Basic Production Royalty of twenty-seven cents (27(cent)),
          which would thereafter, until further adjustment, be the Basic
          Production Royalty. For this year, however, since the Basic Production
          Royalty is subject to the two cent (2(cent)) per ton Deduction from
          Basic Production Royalty, the Production Royalty retroactively payable
          for the preceding calendar year would be twenty-seven cents (27(cent))
          minus two cents (2(cent)), or twenty-five cents (25(cent)) per ton.

               Adjustment of Production Royalty by the payment to Lessor by
          Lessee of any additional amount due retroactively for a preceding
          calendar year shall be made during the first quarter of the following
          year, and in no event shall an adjustment of Production Royalty be
          retroactive for a greater period then the preceding calendar year.

               Whenever any reimbursement is due Lessee by Lessor retroactively
          for a particular calendar year, by reason of a decrease in the Revised
          Base Average Price, Lessee shall be entitled to retain royalty
          thereafter accruing to Lessor and to apply same to the credit of
          Lessor until Lessee has been fully reimbursed the amount of such
          excess payment; provided, however, that Lessor may, at its option,
          remit to Lessee such excess payment in cash. Lessor agrees that should
          they or any of them transfer, sell or otherwise dispose of their
          interest in the property, or in royalties accruing therefrom, or any
          portion thereof, such disposition is to be made expressly subject to
          Lessee's right to retain future royalty, as above set forth, and to
          reimburse itself for any excess royalty theretofore paid to Lessor and
          not previously reimbursed to Lessee.

     13. Lessee shall pay Production Royalties to Lessor quarterly in January,
April, July and October of each year, each payment to cover Production Royalty
for Salt Shipped during the immediately preceding three (3) month period, and
the payment in January of each

                                       21
<Page>

year shall include any amount payable under the provisions of paragraph 16
hereof, in the event the minimum number of tons of salt were not shipped during
the preceding year.

     14. In addition to the Production Royalty set out above, Lessee also agrees
to pay all severance, sales, use and/or production taxes with respect to the
salt mined, produced and shipped by Lessee or with respect to other operations
of Lessee under this lease, required by local, State or Federal laws, even
though the said laws may impose the payment of said taxes upon Lessor.

     15. Lessor shall be furnished with two copies of all the severance tax
reports filed by Lessee with the appropriate authorities.

     16. During the entire term, expecting the Primary Term, of this lease the
following minimum tons of salt must be shipped by Lessee each year as set out in
the schedule below, or Lessee must pay Lessor Production Royalty on such minimum
number of tons of salt, just as though they had been shipped, in order to keep
the lease in full force and effect:

<Table>
<Caption>
                                                                          MINIMUM NUMBER OF TONS OF SALT
                           YEARS                                                  TO BE SHIPPED
                           -----                                          ------------------------------
<S>                                                                             <C>
First three (3) full calendar years and initial fractional                      189,000 tons per year
part of year for which Production Royalties are to be Paid

Next three (3) full calendar years                                              216,000 tons per year

Next three (3) full calendar years                                              250,000 tons per year

Remaining term of lease                                                         300,000 tons per year
</Table>

provided, however, that during the calendar year in which the Primary Term of
this lease comes to an end and the payment of Production Royalty commences, the
minimum Production Royalty to be paid for the remainder of that year shall not
be on the basis of 189,000 tons of salt, but shall be prorated in, the
proportion that the remainder of the year after expiration of the Primary Term
bears to the full year, subject to those provisions of paragraph 10 above which
relate to a minimum Production Royalty to be paid Lessor in the event Lessee
terminates this lease subsequent to the Primary Term hereof on less than two (2)
years notice. In the event the term of this lease ends on other than the last
day of a calendar year., the minimum Production Royalty

                                       22
<Page>

for the first fractional part of the calendar year in which the term of this
lease ends shall be prorated in the proportion that such fractional part of the
year in which the lease is in effect bears to a full calendar year.

     The intent of the foregoing is that the penalty Lessee shall suffer in the
event the minimum tons of salt are not shipped is that Lessee shall pay Lessor
such amount of Production Royalty as this lease may provide during; the
particular calendar year within which less than the minimum tons of salt are
shipped, calculated upon the premise that the minimum number of tons of salt had
been shipped. This minimum Production Royalty shall be cancelled out each year
and there shall be no carry over or carry back as to either party.

     17. In addition to the taxes referred to in paragraph 14, Lessee shall bear
and pay all taxes imposed upon the entire 160 acre tract hereinabove described
in subparagraph 2(A), as well as the taxes on the full area of each 150 foot and
155 foot strips hereinabove provided for in paragraph 2 (whether or not the
entire area of each such 150 foot and foot 155 foot strips are being used by
Lessee).

     Lessee shall also bear and pay all taxes imposed upon property and
improvements placed by Lessee on the lands herein leased, and shall likewise
bear and pay all additional taxes which are imposed upon or are directly or
indirectly attributable to Lessee's operations and activities upon the leased
premises, provided that the Lessee shall not be obligated to pay increased taxes
on the Lessor's lands other than those portions hereinabove set forth and those
in actual physical use by Lessee. All other taxes are to be borne and paid by
Lessor.

     When the properties are not assessed separately, each party shall bear his
proportionate share on the basis of their respective areas or values, whichever
is the more appropriate.

     18. Until such time as Lessee may be notified of a change in ownership in
accordance with the provisions of paragraph 28, the royal ties provided for
hereunder shall be

                                       23
<Page>

paid to Lessor in the following proportions, by mailing to the address shown
following each respective name:

<Table>
<S>                                                   <C>
1.   The J.M. Burguieres Co., Ltd.
     Louisa Post Office, Louisiana                     3/8 of 8/8 or 96/256

2.   Mr. John Taylor Caffery
     1806 National Bank of Commerce Building
     New Orleans 12, Louisiana                         1/8 of 5/8 or 20/256

3.   Mrs. Mary Louise Caffery Ellis
     c/o The National Bank of
     Commerce in New Orleans
     Corner Baronne & Common Streets
     New Orleans 12, Louisiana                         1/8 of 5/8 or 20/256

4.   Mrs. Marion Caffery Campbell
     1010 22nd Street
     Beaumont, Texas                                   1/8 of 5/8 or 20/256

5.   Mr. Liddell Caffery
     808 West Beach Pass
     Pass Christian, Mississippi                      3/32 of 5/8 or 15/256

6.   Mrs. Marcie Caffery Gillis
     638 S. Beach
     Waveland, Mississippi                            1/16 of 5/8 or 10/256

7.   Mrs. Martha Gillis Restarick
     6 Arlington Court
     Rome, Georgia                                    1/16 of 5/8 or 10/256

8.   Mrs. Katherine Baker Senter
     6031 S. Robertson Street
     New Orleans 18, Louisiana                        1/16 of 5/8 or 10/256

9.   Miss Caroline Baker
     906 Royal Street--Apt. D
     New Orleans, Louisiana                           1/16 of 5/8 or 10/256

10.  Mrs. Bethia Caffery McCay
     c/o Percy L. McCay Whitney Bank
     228 St. Charles
     New Orleans 12, Louisiana                        1/16 of 5/8 or 10/256

11.  Mrs. Emma Caffery Jackson
     34 Tokalon Place
     Metairie, Louisiana                              1/16 of 5/8 or 10/256

12.  Mr. Donelson Caffery McCay
     4724 Carondelet Street
     New Orleans 15, Louisiana                         1/32 of 5/8 or 5/256
</Table>

                                       24
<Page>

<Table>
<S>                                                 <C>
13.  Mrs. Bethia McCay Brown
     320 Lakeside Drive
     Monroe, Louisiana                                 1/32 of 5/8 or 5/256

14.  Mr. Edward Rader Jackson, III
     206 Jefferson Avenue
     Metairie, Louisiana                               1/32 of 5/8 or 5/256

15.  Mr. Donelson Caffery Jackson
     c/o Mr. Edward R. Jackson, III
     206 Jefferson Avenue
     Metairie, Louisiana                               1/32 of 5/8 or 5/256

16.  Mr. Lucius Howard McCurdy, Jr.
     c/o Milling, Saal, Saunders, Benson &
     Woodward
     Whitney Building
     New Orleans, Louisiana                         1/64 of 5/8 or 21/2/256

17.  Mr. John Anderson McCurdy
     808 West Beach Pass
     Pass Christian, Mississippi                    1/64 of 5/8 or 21/2/256
                                                    -----------------------
                                                                    256/256
</Table>

     In the event royalties payable hereunder become payable to more than thirty
(30) persons or payees, Lessee shall have the option of paying all royalty due
hereunder in one check to the credit of Lessor in the Whitney National Bank of
New Orleans, Louisiana, which bank and its successors is hereby designated as
Lessor's Agent and shall thereafter continue as the depository for all royalties
payable hereunder regardless of changes of ownership of the right to receive
said royalties.

     19. It is specially agreed that if Lessee makes a bona fide effort to
properly pay royalties hereunder, this lease shall not be cancelled because of
an error in judgment or other mistake made in good faith by Lessee in the
payment of royalty; but the person to whom the royalty may legally be due, and
after the requirements of this lease as to notices of change of ownership set
out in paragraph 28 have been complied with, may make demand upon Lessee

                                       25
<Page>

therefor. Thereafter do default may be claimed until sixty (60) days after the
demand has been made upon Lessee by registered or certified mail, and Lessee has
failed to pay such royalty or to file a concursus proceeding and to deposit the
amount in question in the registry of the court.

     20. Lessee agrees that it will keep accurate records of the tonnage of all
Salt Shipped under this agreement, as well as the prices actually received by it
for all Mine Run, Mill Run and Coarse Grades of Rock Salt shipped and sold, and
deliver to Lessor statements thereof.

     Lessor, its agents and representatives, including certified public
accountants, shall have the right, annually, to inspect the records of Lessee
regarding the matters above set forth in this paragraph.

     It is specifically provided that neither the making by Lessee nor the
acceptance by Lessor of any payment hereunder, including the payment of
royalties, shall prejudice the right of Lessor or Lessee to protest the
correctness thereof; provided, however, that unless same is protested in writing
within three (3) years after the close of the calendar year in which such
payment was made, the same shall, for all purposes, be considered correct,
conclusive and binding.

     21. Lessee agrees that Lessor, its agents, engineers, and other
representatives shall have the right at its or their own risk and responsibility
to enter into the said mine or mines and other facilities, whether above or
below the surface of the earth, in order to survey, inspect, examine, certify or
measure the same, or any part or parts thereof, for any legal purpose, and for
these purposes to freely use the means of access to said mine or mines without
hindrance or molestation, and also to examine the maps of Lessee showing the
mine workings and improvements in and upon the leased premises. When requested
to do so by Lessor, Lessee shall furnish such copies of Lessee's blue prints or
maps as may be desired by Lessor.

                                       26
<Page>

     The rights of entry, inspection and visitation herein granted shall be
limited to only once in any three (3) month period, and in each instance shall
be exercised only at a reasonable time, upon Lessor first giving Lessee five (5)
days advance notice in writing of the date or dates on which Lessor desires to
exercise such rights.

     The rights of entry, inspection and visitation shall apply to Lessor as an
entirety, and not to individual lessors, it being intended that Lessee shall not
be required to make its facilities available for such entry, inspection and
visitation more often than once in any three (3) month `period. Each exercise of
the right as herein authorized may be more than one of the individual lessors,
together with their agents, engineers and other representatives.

     22. All of the roads on Cote Blanche Island are private, none having ever
been made public, and Lessee agrees that it will at no time grant permission to
any state, parish, ward or other governmental subdivision to maintain or
otherwise work on any of said roads unless requested by Lessor in writing to
grant such permission. Lessee agrees to maintain 100% any road which may service
facilities or places used commercially by Lessee only. As to all roads or parts
of roads which are used in common by Lessee and other present or future tenants
or lessees, Lessee shall arrange with said other tenant or tenants for the costs
of such upkeep, and any dispute between Lessor and Lessee with respect to such
upkeep shall be determined by arbitration in accordance with the provisions of
paragraph 27. Lessor, its successors, heirs, agents and representatives shall at
all times have the free right to use all roads for its private purposes. No main
roads shall be fenced off or blocked. Auxiliary roads within Lessee's 160 acre
surface area may be enclosed at the discretion of Lessee.

                                       27
<Page>

     23. At such time as this lease terminates for any cause or reason
whatsoever, the following provisions shall be applicable with reference to the
machinery, equipment, buildings and all things used in connection with the
operation of the mine:

          A. In any and all events the mine shaft, guides and buildings shall be
     left on the leased premises, without the necessity of payment by Lessor to
     Lessee therefor.

          B. As to all other property used in connection with the operation of
     the mine, Lessor shall have the option to purchase the same from Lessee at
     its then fair market value as is where is, but only if Lessor purchases all
     of said other property. To determine whether it wishes to exercise this
     option, Lessor shall have a period of sixty (60) days after receipt of
     notice of termination of the lease from Lessee to inspect the property. On
     or before the end of the sixty (60) day period Lessor shall notify Lessee
     in writing whether or not it elects to exercise the option to so purchase
     said other mining equipment and property. If Lessor elects to purchase the
     property it shall have an additional sixty (60) days within which to
     arrange for the payment therefor, which shall be made in cash to Lessee,
     and title and right to possession thereof shall pass to Lessor on the date
     of termination of the lease.

          C. If Lessor fails to give the notice required by subparagraph 23B
     above, or in the event Lessor does not elect to exercise its option to
     purchase said other property, Lessee shall have the right to remove the
     same from the premises, and shall have a period of six (6) months from the
     date of termination of the lease to do so. This right of Lessee to remove
     the remaining property includes the right to remove all

                                       28
<Page>

     machinery, equipment and materials and other property, regardless of
     whether or not attached to the building in which it is situated or the
     manner of such attachment.

          D. Any such property remaining at the end of the said six months
     period shall become the property of the Lessor without the necessity of
     Lessor paying Lessee therefor. On the other hand, at Lessor's option,
     Lessor may within ninety (90) days thereafter require Lessee to remove any
     property of Lessee it does not wish to remain on the premises, other than
     the mine shaft, guides and buildings.

          E. Any dispute between Lessor and Lessee in connection with the
     matters contained in this paragraph 23 shall be determined by arbitration
     in accordance with the provisions of paragraph 27.

     24. Lessee agrees to hold Lessor harmless from all claims for damages or
injuries, including death of any person, or damage to property in connection
with the leased premises occurring through the negligence of Lessee, and to
defend any such suit brought against Lessor on account of such claim, and to pay
any judgment against Lessor resulting from any such suit. Lessee further agrees
that it will use due care and diligence to avoid damage to property or injuries
to persons, and Lessee will compensate Lessor for any damage or injury,
including reasonable attorney fees in case of suit, suffered by it as the result
of any damage or injury occurring through the negligence of Lessee.
Correspondingly, Lessor agrees to hold Lessee harmless from all claims for
damages or injuries, including death of any person, or damage to property in
connection with the leased premises, occurring through the negligence of Lessor,
and to defend any suit brought against Lessee on account of such claim, and to
pay any judgment against Lessee resulting from any such suit. Lessor further
agrees that it will use due care and diligence to avoid damage to property or
injuries to persons and Lessor will compensate

                                       29
<Page>

Lessee for any damage or injury, including reasonable attorney fees in case of
suit, suffered by it as the result of any damage or injury occurring through the
negligence of Lessor. If injury, loss-or damage is caused by the joint or
concurring negligence of Lessor and Lessee, then Lessor and Lessee shall be
liable in solido therefor, with right of contribution against the other party.
Both Lessor and Lessee agree to notify the other in writing within ten (10) days
of the receipt of notice by said party that a suit has been filed against it
which may result in any liability on the part of the other under the provisions
of this lease, and within sixty (60) days of the receipt of notice by said party
that a claim is being asserted against it, which may result in any liability on
the part of the other under the provisions of this lease.

     25. It is recognized and understood that Lessee is considering an
arrangement hereunder it will exercise the rights hereunder in association with
another company, and the right of Lessee to assign this lease in whole or in
part to accomplish such purpose is expressly granted. In the event, however,
that Lessee does not enter into such an arrangement as contemplated, and ever
wishes to sell any of its rights hereunder, Lessor shall be given the privilege
of purchasing, the same if it meets any offer or bid which Lessee has received
for the same, by cash purchase within thirty (30) days of receipt of notice from
Lessee that such interest is for sale. A conveyance to a subsidiary or
affiliated company, or to the stockholders of Lessee, a merger, or the granting
of a mortgage or other security device shall not be considered a sale or
assignment for the purpose of this paragraph.

     26. It is agreed and understood that the estate of either party hereto may
be assigned or sub-leased in whole or in part, subject to the provisions set
forth in paragraph 25 above; provided, however, that in the event Lessor, after
receiving notice of any proposed sale to be given by Lessee to Lessor, and
within the thirty (30) days granted Lessor to purchase the

                                       30
<Page>

interest offered for sale, does not wish to exercise its rights to purchase the
interest, but considers the prospective purchaser to be either financially or
morally undesirable, Lessor shall so advise Lessee in writing, setting forth its
objection to such prospective purchaser and its reasons therefor. If Lessee is
of the opinion that Lessor's objections are justified, Lessee will not
consummate the proposed sale. If, however, Lessee is of the opinion that
Lessor's objections are not justified, it shall so notify Lessor, and Lessor and
Lessee agree that this dispute shall be determined by arbitration in accordance
with the provisions of paragraph 27.

     27. For the determination of any matter made subject to arbitration
hereunder, either party hereto may by written notice to the other appoint an
arbitrator. Thereupon, within twenty (20) days after giving of such notice, the
other shall by written notice to the former appoint another arbitrator. In
default of such second appointment within the twenty (20) day period, the
arbitrator first appointed shall be sole arbitrator. When any two arbitrators
have been appointed as aforesaid, they shall, if possible, agree upon a third
arbitrator and shall appoint him by notice in writing, signed by both of them in
triplicate, one of which triplicate notices shall be given to each party hereto
if twenty (20) days shall elapse after the appointment of the second arbitrator
without notice of appointment of the third arbitrator being given as aforesaid,
then either party hereto, or both parties jointly, may apply to any Judge of
either the District Court of St. Mary Parish or Orleans Parish, Louisiana, or
any Judge of the United States District Court for the Eastern District of
Louisiana, to appoint the third arbitrator, in which event the first appointment
so made shall be binding upon the parties. Upon appointment of the third
arbitrator (whichever way appointed as aforesaid), the arbitrators shall fix a
reasonable time and place for hearing, giving notice to each of the parties
hereto at least ten (10) days prior to the date of such hearing, and each party
hereto may submit such evidence as it may see fit. A majority vote of

                                       31
<Page>

the arbitrators shall constitute a final and binding determination of any matter
referred to them under any provision of this lease, and the arbitrators within
ten (10) days shall communicate their decision in writing to Lessor and Lessee.
In the event the arbitrators fail to communicate their decision in writing to
Lessor and Lessee within sixty (60) days from the date on which the hearing is
concluded, or within ninety (90) days from the date on which the third
arbitrator is appointed, whichever shall occur first, then their appointment as
arbitrators shall terminate and any action taken by them become null and void,
and either party hereto may thereupon again institute the procedure for
arbitration in the same manner as hereinabove set forth, as though no
arbitrators had theretofore been appointed.

     Each party shall pay the expense of the arbitrator selected by or for it,
and the costs and expenses incurred in the preparation and presentation of its
evidence and the fees and charges of its witnesses and counsel, and all other
costs of the arbitration shall be equally divided between the parties hereto.

     28. It is understood and agreed that no change or division whatsoever and
howsoever arising, relative to ownership of the land, royalties or lease, or any
part of the same, shall operate to increase the obligations or diminish the
rights of either party hereto, and that regardless of any such change or
division of ownership the leased land shall be developed and operated as an
entirety; and that notwithstanding any other actual or constructive knowledge or
notice whatsoever thereof, no such change or division shall be binding upon
either party unless and until after thirty (30) days written notice thereof,
together with certified copies of recordable written instruments evidencing such
change or divisions, shall have been delivered to the other party.

                                       32
<Page>

     29. Lessor warrants and agrees to defend the title to the leased premises
and to maintain Lessee in possession thereof for all purposes of this lease, but
it is stipulated and agreed that, in the event of loss or failure of title, or
eviction of the Lessee, the responsibility of Lessor to Lessee for restitution,
reimbursement and/or damages, under such warranty, shall be limited solely to
the reimbursement of Lessee for all money actually received by Lessor as
Production Royalty. The amount received as Development Royalty, which includes
payment for salt removed in opening the shaft and working surfaces, is never to
be returned in any event. This return of Production Royalty is further
restricted in that no Production Royalty received by Lessor more than one (1)
year prior to the very date upon which demand for return of royalty shall be
made need be returned or shall be returnable hereunder. Nor shall the returnable
Production Royalty include either interest or severance taxes accrued or paid.
Also, only that portion of the returnable Production Royalty need be returned
which shall be applicable to that portion of .the property from which Lessee may
be evicted in the event such eviction be from less than the entire property.
Lessee hereby waives and renounces in favor of Lessor any claim, right, demand
or cause of action for a greater return or for damages. However, it is agreed
that Lessee may, at its option, discharge any tax, mortgage or other lien or
privilege which may rank prior to this lease and be subrogated to the rights of
the holders thereof, and to apply royalties accruing hereunder toward satisfying
the same.

     30. If Lessor owns an interest in the leased premises less than the entire
fee simple estate, or no estate therein, then the royalties herein provided for
shall be paid to Lessor only in the proportion which its interest, if any, bears
to the whole and undivided fee.

     31. All terms and express or implied covenants of this lease shall be
subject to all valid federal and state laws, executive orders, rules and
regulations of any regulatory

                                       33
<Page>

authority having jurisdiction, and this lease shall neither be terminated in
whole or in part, nor Lessee be held liable in damages, or failure to comply
therewith, if compliance is prevented by or if such failure is the result of any
such law, order, rule or regulation.

     32. If Lessee should conduct any brine operations on the leased premises,
Production Royalty for the salt thus produced and shipped shall be computed
hereunder just as though the number of tons of Salt Shipped had been shipped as
Rock Salt. In the event Lessee advises Lessor that it has no further use for any
cavity so created and that such cavity may be used by Lessor, such cavity shall
be offered to Lessor free of cost to Lessor for use by Lessor, its successors
and assigns, in storing liquids. The outside casing or pipe installed for
production from any brine well or wells shall not be pulled by Lessee but shall
remain for use by Lessor, free of cost to Lessor. Lessee's use of any cavity
created by its brine operations shall not include the right to use same for
storage, but Lessee's right to use cavities otherwise created for such purpose
is expressly recognized. Lessee, however, shall not store any radioactive or
fissionable material in any such cavity. It is understood that Lessee, in its
sole judgment, shall determine when it has no further use for any such cavity
and as to whether or not to notify Lessor that it shall have the right to use
such cavity for its purposes.

     It is agreed and understood that in the use of any such cavity or cavities
by Lessor no radioactive or fissionable materials shall be stored. Lessor
further agrees specifically to assume full responsibility and liability for any
loss or damage that Lessee may sustain in any manner arising out of or in
connection with the care and maintenance of any such cavity or cavities or the
use thereof, including, but not limited to, breaking into any mine or mines
and/or well or wells of Lessee, or loss or damage to any surface facilities or
structures of Lessee, and Lessor agrees immediately prior to the use of any such
cavities to indemnify Lessee against any

                                       34
<Page>

and all such loss and damage, and to furnish bond or carry adequate insurance
for the purpose, delivering to Lessee evidence hereof in an acceptable form;
provided, however, that before any such cavity is turned over to Lessor and
becomes the responsibility of Lessor, Lessor shall be given ample opportunity
and time to inspect and test the cavity, and shall be furnished access to all
records of Lessee concerning the physical characteristics of the cavity promptly
upon request by Lessor. If Lessor does not desire to assume responsibility for
the cavity it may refuse the tender thereof, in which event Lessee may remove
therefrom such portions of its equipment or material as it may desire and plug
and abandon such cavity, or Lessee may use such cavity for such purposes as it
may see fit, including the right of storage.

     The term radioactive and fissionable, as herein used, does not apply to
normal hydrocarbons or chemical compounds but relates to material in an active
state of atomic decomposition, such as to be radioactive and which is dangerous
to persons or property.

     33. In the event Lessor considers that Lessee has failed to conform or
comply with any of the express or implied obligations of this agreement, Lessor
shall notify Lessee in writing, setting forth specifically the respects in which
Lessor considers that Lessee has so failed to perform or comply, and Lessee
shall have sixty (60) days after receipt of such notice within which to remedy
or commence to remedy any such .defaults so alleged by Lessor. The delivery of
said notice to Lessee and the lapse of sixty (60) days thereafter shall be a
precedent condition to the bringing of any action by Lessor under this
agreement. If an adverse claim is asserted against the title of Lessor, or any
portion thereof', Lessee shall be entitled to withhold payment to Lessor to' the
extent of the disputed portion, or to provoke a concursus and deposit the
disputed amount in the registry of the court until such claim has been finally
determined or until

                                       35
<Page>

Lessor shall have furnished bend to Lessee in an amount and with sureties
satisfactory to Lessee, or other adequate security with respect to such claim.

     34. When performance by Lessee hereunder is delayed or interrupted by lack
of labor or materials, or by fire, storm, flood, war, rebellion, insurrection,
riot, strike, differences with workmen or failure of carriers to transport or
furnish facilities for transportation, or as a result of some order, requisition
or necessity of the federal or state government, or any governmental
subdivision, or as the result of any cause whatsoever beyond the control of
Lessee, the time of such delay or interruption shall not be counted against
Lessee, anything in this lease to the contrary notwithstanding. During any
calendar year within which less than the minimum number of tons of salt may be
shipped and such force majeure as is defined herein shall occur, then and in
that event, the minimum number of tons of salt required to be shipped shall be
reduced proportionately, that is to say, as the ratio of the number of days
covered by the force majeure shall bear to 365 days (for example, if the force
majeure should cover a period of 14 days, the minimum number of tons of salt
required to be shipped shall be reduced by 14/365).

     The foregoing provisions of this force majeure clause shall not be so
interpreted under any circumstances as to extend the term of this lease beyond a
period of ninety-nine (99) years from the effective date hereof.

     By the same token, in the event any such force majeure as described above,
shall occur and operate to impair-the ability of Lessor to perform any
obligations hereunder Lessor shall be similarly excused from performing during
the existence of the force majeure and shall have a similar length of time after
the force majeure has ended to perform.

                                       36
<Page>

     35. In the event Lessee obtains a title opinion or title opinion or
supplemental title opinion or opinions upon the property herein leased, two
unsigned carbon copies thereof shall be furnished to Lessor.

     36. If Lessee shall cause any of the exterior or interior lines of the
property covered by this lease to be surveyed, Lessee shall furnish Lessor with
four copies or prints of such survey or surveys. Lessee agrees that before
having any such survey made, it will request Lessor in writing to submit the
names of at least three (3) registered surveyors property licensed by the State
of Louisiana, and Lessee agrees that it will use one of the surveyors on the
list submitted by Lessor for any survey it has made on the leased premises,
provided, however, that if Lessor fails to submit such list of approved
surveyors to Lessee in writing within a period of thirty (30) days from the date
of receipt by Lessor of Lessee's request to submit such a list of names of
surveyors satisfactory to Lessor, Lessee shall then have the right to select any
surveyor of its choice who is properly licensed in the State of Louisiana.
Lessee shall also furnish Lessor with four copies or prints of all maps
submitted by it to any parish, state or federal regulatory body in connection
with any proposed action, if there is such regulatory body or if such-map is
required.

     37. Lessee shall not cut, damage or use oak trees growing upon the premises
leased wherever it is possible to conduct its operations without disturbing the
same; provided, however, that Lessee shall have no liability for damage to trees
resulting from its normal operations.

     38. Any notice, request, approval, consent, exercise of an option or
election, furnishing of a report, statement, record, map, document, or other
instrument or communication

                                       37
<Page>

pursuant to any provision hereof shall be deemed sufficiently given, delivered,
furnished or served if sent by certified or registered mail addressed,
respectively, to the following:

          A. TO THE LESSOR:

               1. John Taylor Caffery 1572 Henry Clay Avenue New Orleans 18,
                  Louisiana

               2. The J.M. Burguieres Company, Ltd. Louisa Post Office,
                  Louisiana

          B. TO THE LESSEE:

               1. The Carey Salt Company Hutchinson, Kansas

     Either Lessor or Lessee shall have the right to change the person or
persons above designated to receive any such communication or instrument, or the
address to which any such person should be addressed, by giving written notice
thereof to the other signed by the persons then designated, or in the event. of
Lessor, if not signed by those designated, in lieu thereof signed by such of the
parties constituting Lessor then entitled in the aggregate to receive at least
51% of-the royalties due hereunder; provided, however, that neither Lessee nor
Lessor shall be entitled to designate more than two (2) such parties and, in the
event more than two (2) are designated, the other party may, at its option,
select any two of those designated as to whom the provisions of this paragraph
shall apply.

     In the event of the death or incapacity of any individual or the
liquidation or dissolution of any corporate party designated by Lessor under the
provisions of this paragraph, another person shall be designated in his stead,
by written notice signed by such of the parties constituting Lessor as are then
entitled in the aggregate to receive at least 51% of the royalties due
hereunder; provided that in absence of such notification and designation
communications and instruments sent in accordance with the previous designations
shall be valid and binding.

     In all instances in which Lessor is required or empowered herein to give
notices to Lessee, to make requests of Lessee, to advise Lessee of approvals or
grant consents to Lessee, to

                                       38
<Page>

appoint arbitrators, to exercise options or any similar rights or privileges
hereunder, same shall be made, given or sent to Lessee by the parties designated
by Lessor to receive notices under the provisions of this paragraph and, when so
given, shall be conclusively presumed to be on behalf of and shall be binding
upon all parties constituting Lessor. Notwithstanding the provisions of the
preceding sentence, however, whenever Lessor is require to consent to or approve
of a proposed action or operation by Lessee hereunder, such consent or approval
of such of the parties constituting Lessor and then being entitled in the
aggregate to receive at least 51% of the royalties due hereunder shall be
sufficient to enable Lessee to so act or operate and shall bind all of the
parties then constituting Lessor and their heirs, executors, administrators,
successors and assigns, whether or not notice of such consent or approval is
given by Lessor in the manner otherwise provided in this paragraph 38, and
whether or not the parties designated by Lessor under the provision of this
paragraph join in such consent or approval. Failure of Lessor to communicate to
Lessee whether or not any consent or approval requested of Lessor by Lessee is
granted within sixty (60) days from the mailing of such request shall be
equivalent to approval or consent of Lessor.

     39. This agreement shall be binding upon, and, subject to other provisions
of this agreement, inure to the benefit of, the heirs, executors,
administrators, successors and assign of the parties hereto.

     40. This lease may be executed by the parties separately, on different
dates, and in counterparts, but shall nevertheless be binding and effective as
of the date first written on the first page hereof.

IN WITNESS WHEREOF the parties hereto have executed this lease in quadruplicate
originals in the presence of the competent witnesses who have signed opposite
their respective names.

WITNESSES TO SIGNATURE OF
LESSORS:

LOIS DIECK                              LESSORS:
----------
LOIS DIECK

DOROTHY THOMPSON                        JOHN TAYLOR CAFFERY
----------------                        -------------------
DOROTHY THOMPSON                        JOHN TAYLOR CAFFERY, Individually and as
                                        agent and Attorney-in-Fact for Mrs.
                                        Marcie Caffery Gillis, Col. Marcel
                                        A. Gillis, Mrs. Bethia Caffery McCay,
                                        Percy L. McCay, Mrs. Mary Louise Caffery
                                        Ellis, Mrs. Emma Caffery Jackson, Edward
                                        R. Jackson, Liddell Caffery, Mrs. Marion
                                        Caffery Campbell, George Lee Campbell,
                                        M.D., Mrs. Martha Gillis Restarick, Mrs.
                                        Katherine Baker Senter, Miss Caroline
                                        Baker, Mrs. Bethia McCay Brown, Donelson
                                        Caffery McCay, Lucius Howard McCurdy,
                                        Jr. and John Anderson McCurdy.

LOIS DIECK                              EDWARD RADER JACKSON, III
----------                              -------------------------
LOIS DIECK                              EDWARD RADER JACKSON, III

DOROTHY THOMPSON                        DONELSON CAFFERY JACKSON
----------------
DOROTHY THOMPSON
                                        BY: EDWARD RADER JACKSON, III, TRUSTEE
                                            ----------------------------------
                                            EDWARD RADER JACKSON, III

LOIS DIECK
----------
LOIS DIECK

DOROTHY THOMPSON
----------------
DOROTHY THOMPSON

                                        THE J.M. BURGUIERES COMPANY, LTD.

LOIS DIECK                              BY: JOAN BURGUIERES BROWN
----------                                  ---------------------
LOIS DIECK                                  JOAN BURGUIERES BROWN, DIRECTOR

DOROTHY THOMPSON                        BY: EDWARD E.BURGUIERES
----------------                            -------------------
DOROTHY THOMPSON                            EDWARD E.BURGUIERES, ASSISTANT
                                            SECRETARY AND MANAGING DIRECTOR

WITNESSES TO SIGNATURE                  LESSEE:
OF LESSEE:

DAVID L. JOHNSTON                       THE CAREY SALT COMPANY
-----------------

WILLIAM B. SWEARER                      BY: HOWARD J. CAREY, JR.
------------------                          --------------------
                                            HOWARD J. CAREY, JR., PRESIDENT

                                       39
<Page>

ENTRY N. 153936                    RECORDED IN CONVEYANCE BOOK 17-S AT FOLIO 870

STATE OF LOUISIANA

PARISH OF ST. MARY

                         ACT OF AMENDMENT TO SALT LEASE

                  THIS ACT OF AMENDMENT, made and entered into as of the 30th
day of May, 1973, by and between THE J. M. BURGUIERES CO., LTD. and JOHN TAYLOR
CAFFERY, individually and as Agent and Attorney in Fact of the persons listed on
the Exhibit attached hereto as Exhibit "A", pursuant to and by virtue of powers
of attorney of record in St. Mary Parish, Louisiana, or attached hereto, being
the owners of all mineral, royalty, surface and leasing rights in and to the
lands more particularly described in that certain Salt Lease dated June 21,
1961, recorded in Conveyance Book 11-U, Entry No. 111822 of the records of St.
Mary Parish, Louisiana, (hereinafter referred to as "Lease") hereinafter
collectively referred to as "LESSORS", and DOMTAR CHEMICALS INC., a Delaware
corporation, owner of all of the rights of the Lessee under the above Lease
hereafter referred to as "LESSEE".

                               W I T N E S S E T H

                  For and in consideration of good and valuable considerations
the receipt and adequacy of which is hereby acknowledged) and of the mutual
advantages and obligations of the parties as set out hereinbelow, Lessors and
Lessee hereby agree to amend the Lease, effective as of the date hereof, as
follows:

                  1.)      Sub-paragraph 9 (M) is hereby deleted and replaced by
the following:

                  "`Average Price' means, for the period involved, the average
         price per ton received by Lessee from the sale in bulk of Rock Salt
         produced from the leased premises, in the following grades; Coarse Rock
         Salts, Mine Run or Mill Run Rock Salt and Ice Control Salt. The said
         `Average Price shall be determined by dividing the total dollars
         received by Lessee from the sale in bulk of Rock Salt of the said
         grades of f.o.b. mine (or adjusted to allow for any freight factor
         included in the price) by the total tonnage of the said grades sold.
         Provided, however, that

<Page>

         there shall be deducted from the total dollars received in respect of
         the sale of Salt the cost to Lessee of depot operations, Y.P.S. process
         and additives allocable to such Salt sold. There shall be included in
         such determination for any period involved the tons of Mine Run or Mill
         Run Rock Salt used or consumed by Lessee, its successors or assigns,
         and not sold to a purchaser, as though sold at the Current Market Price
         of Mine Run or Mill Run Rock Salt prevailing on the last day of the
         period in question."

                  2.)      Sub-paragraph 9 (T) is hereby deleted and replaced by
 the following:

                  "(T) `Current Market Price of Mine Run or Mill Run Rock Salt'
         shall be considered to be the average price obtained by Lessee, F.O.B.
         mine, from all sales of such salt by Lessee of quantities in excess of
         five thousand (5,000) tons during any calendar year."

                  3.)      The initial sub-paragraph of paragraph 38 is hereby
 deleted and replaced by the following:

                  "Any, notice, request, approval, consent, exercise of an
         option or election, furnishing of a report, statement, records, maps
         document or other instrument or communication pursuant to any provision
         hereof shall be deemed sufficiently given, delivered, furnished or
         served if sent by certified or registered mail addressed, respectively,
         to the following:

                           A.       TO THE LESSORS:

                                    1.    John Taylor Caffery
                                          1572 Henry Clay Avenue
                                          New Orleans, Louisiana 70118

                                    2.    The J. M. Burguieres Co., Ltd.
                                          Suite 1800, 225 Baronne Street
                                          New Orleans, Louisiana 70112

                           B.       TO THE LESSEE:

                                    1.    Domtar Chemicals, Inc.
                                          Chicago O'Hare Aerospace Office Center
                                          406 - 9950 Lawrence Avenue
                                          Schiller Park, Illinois

                                                   with copy to:

                                          Domtar Chemicals, Inc.
                                          P. 0. Box 7210

                                        2
<Page>

                                          Montreal 101, Canada
                                          Attention:  Mr. Andre Gascon"

                  4.)      The Lease is amended by adding thereto the following:

                  "Anything herein contained to the contrary notwithstanding,
         the only royalties to be paid by Lessee to Lessors on account of Salt
         Shipped shall be paid in accordance with the Royalty Schedule set forth
         on Exhibit `B' to this amendment. The quarterly royalty payments to be
         paid by Lessee to Lessors on account of Salt Shipped shall be
         provisionally based on the Average Price for the immediately preceding
         calendar year. Such provisional royalties payable shall be calculated
         by multiplying the appropriate Base Production Royalty in Exhibit `B'
         by the total tonnage of Salt Shipped in such quarter. The appropriate
         Base Production Royalty shall be determined from the column titled
         `Base Production Royalty' which is directly opposite the range into
         which the Average Price for the immediately preceding calendar year
         falls in the columns titled `Average Price'. For the purpose of
         determining whether an underpayment or overpayment of royalties has
         occurred in the preceding calendar year, within the first quarter of
         each year, Lessee shall determine the average price for the preceding
         year (herein referred to as `Actual Average Price'). In the event the
         total Royalty paid by Lessee to Lessors during such preceding year
         (herein referred to as `Actual Royalty Paid') is less than that which
         would have been paid had the Actual Average Price been utilized as the
         basis under Exhibit `B' for such royalty payments (herein referred to
         as `Adjusted Royalty'), Lessee shall, within the first quarter of each
         year, pay to Lessors the difference between Actual Royalty Paid and
         Adjusted Royalty. In the event Actual Royalty Paid exceeds Adjusted
         Royalty, Lessee may retain royalty thereafter accruing to Lessors until
         Lessee has been fully reimbursed the amount of such excess Royalty
         Payment. (Nothing herein contained shall change Lessee's obligations
         under paragraph 14.)"

                  AS THUS AMENDED, the Lease shall remain in full force and
effect as originally executed.

                  Lessors hereby acknowledge that the aforesaid Lease is in full
force and effect and that Domtar Chemicals, Inc. is the proper current Lessee.

                  This agreement and all rights, interests, titles and
obligations of the parties hereto shall be binding upon and inure to the benefit
of the respective parties, their heirs, successors and assigns.

                                        3
<Page>

                  IN WITNESS WHEREOF, Lessors and Lessee have executed this
agreement in quadruplicate originals in the presence of the undersigned
competent witnesses as of the date hereinabove mentioned. WITNESSES:

-----------------------------   ------------------------------------------------
                                JOHN TAYLOR CAFFERY, Individually and on
-----------------------------   behalf of and as Agent for the other Owners and
                                Lessors

                                THE J. M. BURGUIERES CO., LTD.

                                By:
-----------------------------      ---------------------------------------------
                                                                       "LESSORS"
-----------------------------

                                DOMTAR CHEMICALS, INC.

                                By:
-----------------------------      ---------------------------------------------
                                                                       "LESSORS"
-----------------------------

                                        4
<Page>

                                    AGREEMENT

                  AGREEMENT entered into as of this 21st day of November, 1990,
by and among:

                  THE J.M. BURGUIERES CO., LTD., ISLAND PARTNERSHIP and FIRST
                  NATIONAL BANK OF COMMERCE, as trustee for Carolina F. Baker
                  ("Lessor"),

                  DOMTAR INDUSTRIES INC. ("Domtar"`), and

                  CAREY SALT COMPANY ("Assignee");

                  WHEREAS, Domtar is the Lessee under a Salt and Surface Lease
dated June 21, 1961, recorded C.O.B. 11-U. Entry No. 111822 of the records of
St. Mary Parish, Louisiana, by and between John Taylor Caffery, et al. as Lessor
and the Carey Salt Company as Lessee, as amended, which Lease as amended is made
a part hereof by reference as though set out herein in extenso (hereinafter
referred to as the "Lease");

                  WHEREAS, the Lease:

                  a.       Provides in Section 25 that the Lessor shall have the
                  privilege of purchasing the leasehold interest of Lessee under
                  certain circumstances as fully set out in the Lease;

                  b.       Provides in Section 25 that a leasehold mortgage or
                  other security device shall not be considered a sale or
                  assignment for the purposes of such Section;

                  c.       Provides in Section 26 that in the event of a
                  proposed assignment Lessor shall have the right to object to a
                  prospective assignee;

                  d.       Provides in Section 36 that Lessor may approve the
                  surveyor which will prepare a survey of the premises demised
                  under the Lease (the "Leased Premises"); and

                  e.       Provides in Section 38 for certain notice provisions;

<Page>

                  WHEREAS, Domtar desires to assign to Assignee its interest in
the Lease and all properties relating to the operation of the salt mine as set
out in an Agreement, as amended, furnished Lessor by Domtar under cover of
letters dated September 29, 1989, November 9, 1990 and November 14, 1990 (the
"Assignment(degree)) which letter and the Agreement enclosed therein are made a
part hereof by reference as though set out herein in extenso (such interest is
hereinafter referred to as the "Leasehold Interest"); and

                  WHEREAS, Lessor is willing to consent to the Assignment and
approve the Assignee in consideration of and on the basis of the agreements set
out herein, without admitting in any way that the form of the September 29, 1989
letter complied with the terms of the Salt and Surface Lease.

                  NOW, THEREFORE, THIS INSTRUMENT WITNESSETH:

                  1. Effective the data of Assignment of the Leasehold Interest
to Assignee, the Lease is deemed to be modified so as to add a provision to
Section 24 providing that Lessor will be named as an additional assured in
Lessee's liability policies in the insured amount of $20,000,000.00 per
occurrence with no lesser ceiling per claimant relating to the mine which is
located in and under the leased property and that Leases shall carry insurance
in sufficient amounts with carriers reasonably acceptable to Lessor which shall
insure the continuation of the payment of royalties for up to two years in
annual amounts equal to the annual Production Royalty payable with respect to
1,500,000 tons of salt even though the mine on the leasehold properties may be
unable to produce for any reason, including but not limited to mine disaster or
any other business interruption. Lessee shall from time to time deliver such
certificates of insurance as Lessor may reasonably request to evidence the
existence of the coverages repaired by this Section.

                                        2
<Page>

                  2. Effective the date of the Assignment of the Leasehold
Interest to Assignee, section 16 of the Lease is deemed to be amended so that
"MINIMUM NUMBER OF TONS OF SALT TO BE SHIPPED" commencing January 1, 1990 and
for the remaining term of the Lease shall be one million (1,000,000) tons per
year.

                  3. At the date and time of the Assignment of the Leasehold
Interest to Assignee, Domtar shall pay to Lessor the sum of TEN DOLLARS ($10.00)
and other valuable consideration, which amount shall be over and above any and
all other payments due to the Lessor under the Lease.

                  4. In consideration of the agreements and payments herein set
out, the Lessor:

                  a.       Hereby advise Domtar and the Assignee that they do
                  not wish to purchase the Leasehold Interest of Domtar;

                  b.       Hereby waive and release the option to purchase under
                  the provisions of Section 25 of the Lease for the purposes of
                  this transaction only;

                  c.       Approve Assignee as a lessee under the provisions of
                  Section 26 of the Lease;

                  d.       Grant to Domtar the right to assign the Leasehold
                  Interest to Assignee and stipulate that they have no further
                  objections of any sort to such assignment;

                  e.       Approve the use of the services of Gandolfo, Kuhn &
                  Luecke to survey the Leased Premises for Lessee's own
                  purposes, provided that four (4) copies of any such survey
                  will be provided to Lessor, that such survey shall not be used
                  in any respect for any purposes between Lessor and Lessee, and
                  that the Lessor shall not in any way be deemed to vouch for
                  the accuracy of the survey.

                                        3
<Page>

                  5.       Lessor acknowledges that:

                  a.       The Lease is in full force and effect and has not
                  bean amended or modified except by Act of Amendment to Salt
                  Lease dated as of May 30, 1973, recorded Entry No. 153935,
                  C.O.B. 17-S, folio 870 of the records of St. Mary Parish, and

                  b.       To the best knowledge of Lessor, there are no
                  defaults by Lessee thereunder.

                  6.       Effective the date of the Assignment of the Leasehold
                  Interest to Assignee, the Lease is hereby amended to add the
                  following provision after section 40 thereof:

                                       "41

                  a.       For the purpose of this Section 41, the following
                  definitions shall apply: The term "Mortgagee" shall mean any
                  bank, bank holding company, savings and loan association,
                  trust company, credit corporation, insurance company or
                  pension fund (including any entity acting as trustee or agent
                  for any of the foregoing), having assets in excess of One
                  Billion Dollars ($1,000,000,000.00), or a wholly-owned
                  subsidiary of any of the foregoing entities. The term
                  "Nominee" shall mean a direct or indirect wholly-owned
                  subsidiary of a Mortgagee.

                  b.       Lessee is hereby given the right by Lessor to
                  mortgage to one or more Mortgagees its interest in this Lease,
                  under one or more mortgages or other security devices (a
                  "Mortgage"), and as collateral security for such Mortgage(s),
                  to give to such Mortgagee(s) a lien, assignment and/or
                  security interest in (i) any personal property included within
                  this Lease and (ii) the income, receipts, revenues and profits
                  of the premises demised under this, Lease (the "Leased
                  Premises") save and except the Lessor's royalties. If Lessee
                  shall mortgage this Lease and if any such Mortgagee shall send
                  to Lessor a true copy thereof, together

                                        4
<Page>

                  with written notice specifying the name and address of the
                  Mortgagee, Lessor agrees that so long as such Mortgage shall
                  remain unsatisfied, the following provisions shall apply: (i)
                  Lessor shall not agree to a consensual cancellation,
                  termination, surrender, or modification of this Lease by
                  Lessee, without the prior consent in writing of such Mortgagee
                  and no such consensual cancellation, termination, surrender or
                  modification without such prior consent shall be binding on
                  such Mortgagee: and (ii) Lessor shall, upon sending Lessee any
                  notice of default, simultaneously send a copy of such notice
                  to such Mortgagee(s), at the same time and in the same manner
                  that such notice is sent to Lessee, and to such addresses as
                  may be designated in a written notice from such Mortgagee(s)
                  received by Lessor. No notice given by Lessor to Lessee shall
                  be binding upon or affect a Mortgagee unless a copy of such
                  notice shall be given to the Mortgagee pursuant to this
                  subparagraph (b). In addition to the other rights of the
                  mortgagee(s) set forth in this Paragraph 41, such Mortgagee(s)
                  shall after service of any such notice upon it, have the right
                  to cure and cause the cure of any default by Lessee hereunder,
                  and Lessor shall accept such performance by or at the
                  instigation of such Mortgagee(s) as if the same had been done
                  by Lessee.

                  c.       Before giving any notice of election to terminate
                  this Lease. Lessor shall allow Mortgagee the same cure periods
                  given to Lessee hereunder to cure such default, running
                  concurrently with the cure period afforded to Lessee.

                  d.       In the event of a default by Lessee in the
                  performance of any term, covenant, condition or agreement on
                  Lessee's part to be performed under this lease of a nature
                  that cannot practicably be cured by Mortgagee without taking

                                        5
<Page>

                  possession of the Leased Premises, or of a nature that is not
                  susceptible of being cured by Mortgagee, Lessor shall not
                  terminate this Lease by reason of such default, if and so long
                  as (i) in the case of a default which cannot practicably be
                  cured by Mortgagee without taking possession of the Leased
                  Premises, Mortgagee shall deliver to Lessor, prior to the date
                  of which Lessor shall be entitled to terminate this Lease, a
                  written instrument in which Mortgagee agrees to commence
                  foreclosure proceedings or take any other steps or actions to
                  obtain possession of the Leased Premises, and Mortgagee
                  thereafter commences such proceedings or actions within a
                  reasonable time, diligently prosecutes the same to completion
                  (unless in the meantime the Mortgagee acquires Lessee's
                  interest under this Lease, either in its own name or through a
                  Nominee), and upon obtaining possession of the Leased Premises
                  (including possession by a keeper, receiver, Nominee of
                  purchaser at a foreclosure or other sale), diligently and with
                  continuity proceeds to cure such default and effects a cure of
                  such default; or (ii) in the case of a default which is not
                  susceptible of being cured by Mortgagee, Mortgagee shall,
                  within a reasonable time, institute foreclosure proceedings or
                  take any other steps or actions to obtain possession of the
                  Leased premises, and diligently prosecute the same to
                  completion (unless in the meantime, Mortgagee acquires
                  Lessee's interest under this Lease, either in its own name or
                  through a Nominee). Mortgagee shall not be required to
                  continue to proceed to obtain possession, or to continue in
                  possession of the Leased Premises pursuant to clause (i), or
                  continue to prosecute foreclosure proceedings or any other
                  action pursuant to clause (ii) above, if and when such default
                  shall be cured. If

                                        6
<Page>

                  Mortgagee, its Nominee, or a purchaser at a foreclosure or
                  other sale shall acquire title to Lessee's interest in the
                  Lease and shall cure all of Lessee's defaults under this
                  Lease, which defaults mortgagee received notice of in
                  accordance with the terms of this Section 41, and which are
                  susceptible of being cured by such mortgagee or by such
                  Nominee or purchaser, as the case may be, within the time
                  reasonably required therefor, then the defaults of any prior
                  holder of Lessee's interest in this Lease which are not
                  susceptible of being cured by such Mortgagee (or by such
                  Nominee or purchaser) shall not be deemed to be defaults under
                  this Lease as between Lessor and the Mortgagee, its Nominee or
                  such purchaser.

                  e.       No mortgagee or its Nominee shall become liable under
                  the provisions of this Lease unless and until such time as it
                  becomes the owner of Lessee's interest in this Lease.

                  f.  (i)  In the case of termination of this Lease by reason of
                  any default or for any other reason prior to the end of the
                  stated term of the Lease and if an assignment under subsection
                  (g) hereof is prohibited as a result of a bankruptcy, Lessor
                  shall give prompt notice thereof to each Mortgagee in the
                  manner provided is subsection (b) hereof. Lessor, on written
                  request of any such mortgagee, made any time within sixty (60)
                  days after the receipt of such notice by such Mortgagee, shall
                  execute and deliver a new lease of the Leased premises to the
                  Mortgages, or its Nominee, for the remainder of the term of
                  this Lease had this Lease not been terminated, upon all of the
                  terms, covenants and conditions contained in this Lease,
                  provided that the prospective tenant thereunder agrees to
                  comply with the requirements of this subparagraph (f). The
                  tenant under such

                                        7
<Page>

                  new lease shall (x) simultaneously with the delivery of such
                  new lease, pay to Lessor all unpaid rental, royalties and any
                  other amounts of money due under this Lease as if this Lease
                  had continued in effect up to and including the data o! the
                  commencement of the team of such new lease, and all reasonable
                  expenses, including reasonable attorneys fees, incurred by
                  Lessor in connection with any defaults by Lessee under this
                  Lease, the termination of this Lease and the preparation of
                  the new lease, less any amounts collected by Lessor from any
                  subtenants or other occupants of the Leased Premises in
                  payment of any obligations described hereinabove, and (y) cure
                  all defaults existing under the Lease which are susceptible of
                  being cured by such tenant under the new lease within the time
                  reasonably required therefor.

                  (ii)     Any such new lease shall maintain the same priority
                  as this Lease with regard to any mortgage affecting the teased
                  Premises or any part thereof or any other rights, liens or
                  encumbrances thereon. The provisions of the immediately
                  preceding sentence shall be self-executing, and Lessor shall
                  have no obligation to do anything, other than to execute and
                  deliver such new lease, to assure to the tenant under such new
                  lease good title to the leasehold estate created thereby.

                  (iii)    If more than one Mortgagee requests a new lease
                  pursuant to this subparagraph (f), the Lessor shall recognize
                  as the Mortgagee entitled to receive such new lease the holder
                  of the Mortgage with the highest lien priority.

                  (iv)     Any new Lessee must accept all Lessee obligations and
                  responsibilities and acquire all Lessee's assets (relating to
                  or used in connection with the Leased premises that are
                  necessary to discharge Lessee's obligations under the Lease),

                                        8
<Page>

                  which- are then in existence and owned by Lessee at the time
                  of the execution of the new lease. Further, there may be no
                  partial assignment of lessee's rights under the Lease.

                  g.       Lessee shall have the right to assign this Lease to a
                  Mortgagee or to a Nominee of such Mortgagee (provided that, in
                  the case of an assignment to a Nominee of a mortgagee, the
                  mortgagee shall guarantee the Nominee's obligations to pay
                  royalties and to maintain the insurance provided for herein).
                  The provisions of Sections 25 and 26 of this Lease shall not
                  apply to the acquisition by the Mortgagee or such Nominee of
                  Lessee's interest hereunder as a result of foreclosure of a
                  mortgage, exercise of a power of sale or by assignment in lieu
                  of foreclosure or any first transferee of either of them,
                  provided the Mortgage& or a Nominee or the first transferee of
                  the Mortgagee or such Nominee of the estate created under this
                  Lease (i) shall have a net worth immediately after such
                  transfer that is equal to or greater than the net worth of
                  Casey Salt Company immediately after its acquisition of the
                  Lessee's interest in this Lease, (ii) has or will have
                  supervisory personnel at the Leased premises who are
                  experienced in underground mining operations, and (iii) as to
                  the Mortgagee at the time of such taking of title (or if there
                  is more than one Mortgagee, then the holders or participants
                  of at least ten per cent (lot) of the debt secured by the
                  Mortgage) shall have a rating by Moody's or Standard and
                  Poor's on their respective long term debt of at least the
                  minimum "investment" grade. Any transfers of this Lease
                  thereafter occurring shall be subject to Sections 25 and 26 of
                  the Lease. Unless an assignment pursuant to this subsection
                  (g) is prohibited

                                        9
<Page>

                  by bankruptcy, Messes will take any steps necessary to
                  effectuate as assignment and render unnecessary the execution
                  of a new lease pursuant to subsection 6(f)."

                  7.       The Lease, as amended by this Agreement and the
                  Amendment to salt Lease dated May 30, 1973, is hereby ratified
                  and confirmed.

                  WITNESS the signatures of the parties on the data first above
                  set out.

WITNESSES:                                LESSOR:

                                          THE J.M. BURGUIERES CO., LTD.

--------------------------------          By:
                                             -----------------------------------
                                          Its:
--------------------------------              ----------------------------------

                                          ISLAND PARTNERSHIP

--------------------------------          By:
                                             -----------------------------------
                                          Its:
                                              ----------------------------------

--------------------------------          By:
                                             -----------------------------------
                                          Its:
                                              ----------------------------------

                                          By:
                                             -----------------------------------
                                          Its:
                                              ----------------------------------

                                          FIRST NATIONAL BANK OF COMMERCE,
                                              as Trustee for CAROLINE F. BAKER

--------------------------------          By:
                                             -----------------------------------
                                          Its:
--------------------------------              ----------------------------------

                                          DOMTAR INDUSTRIES INC.

--------------------------------          By:
                                             -----------------------------------
                                          Its:
--------------------------------              ----------------------------------

                                       10
<Page>

                                          ASSIGNEE:

                                          CAREY SALT COMPANY

--------------------------------          By:
                                             -----------------------------------
                                          Its:
--------------------------------              ----------------------------------

                                       11
<Page>

ENTRY N. 258,785                   RECORDED IN CONVEYANCE BOOK 40-0 AT FOLIO 532

BY AND BETWEEN                                                STATE OF LOUISIANA

ISLAND PARTNERSHIP, ET AL
AND CAREY SALT COMPANY                                        PARISH OF ST. MARY

                       AMENDMENT TO SALT AND SURFACE LEASE

                  KNOW ALL MEN BY THESE PRESENTS THAT:

                  THIS ACT OF AMENDMENT is made and entered into as of the 1st
         day of July, 1997, by and between

         ISLAND PARTNERSHIP (TIN: 72-1172684), a Louisiana partnership whose
         Articles of Partnership were recorded September 6, 1990 with the Office
         of the Louisiana Secretary of State under Charter No. 34363277J and in
         Partnership Book 10, page 931, under Entry No. 555 of the Recorder's
         office of St. Mary Parish, Louisiana, domiciled in Jefferson Parish,
         Louisiana, appearing herein through and being represented by CAFFERY
         McCAY, RADER JACKSON and K. B. SENTER, duly authorized pursuant to the
         terms and provisions of the aforesaid Articles of Partnership, whose
         mailing address is 332 Friedrichs Avenue, Metairie, LA 70005;

         JMB PARTNERSHIP (TIN: 72-1324158), a Louisiana partnership whose
         Articles of Partnership were recorded May 31, 1996 with the Office of
         the Louisiana Secretary of State and in Partnership Book 12, under
         Entry No. 602 of the Recorder's office of St. Mary Parish, Louisiana,
         domiciled in Franklin, St. Mary Parish, Louisiana, appearing herein
         through and being represented by RONALD C. CAMBRE, its President, duly
         authorized by authority delegated to him at the annual meeting of the
         Partners of JMB Partnership held January 27, 1997, whose mailing
         address is P. O. Box 333, Franklin, LA 70538-0333; and

         CAROLINE F. BAKER TRUST #1 (TIN: 72-6125336), a Louisiana intervivos
         trust recorded February 2, 1988 in Book 30-Z, folio 584, under Entry
         No. 221709, of the Conveyance Records of St. Mary Parish, Louisiana,
         appearing herein through and being represented by FIRST NATIONAL BANK,
         OF COMMERCE, its Trustee, said bank appearing herein through and being
         represented by CHRISTIAN FATZER, JR., its Assistant Vice President and
         Trust Officer, duly authorized by resolution of the Board of Directors
         of said bank, a certified copy of which is annexed hereto and made a
         part hereof, whose mailing address is P. O. Box 60279, New Orleans, LA
         70160;

                  (hereinafter collectively referred to as "LESSORS"), AND

<Page>

         CAREY SALT COMPANY (TIN: 13-3563048), a Delaware corporation,
         authorized to do and doing business in the State of Louisiana,
         appearing herein through and being represented by JOHN S. FALLIS, its
         Vice President, duly authorized, whose mailing address for the purpose
         of this instrument is P. O. Box 10, Lydia, LA 70569

                  (hereinafter referred to as "LESSEE")

                                   WITNESSETH

                  LESSORS declared that they are the owners of all mineral,
royalty, surface and leasing rights in and to the lands more particularly
described in that certain SALT AND SURFACE LEASE dated June 21, 1961, recorded
in Book 11-U, under Entry No. 111822 of the Conveyance Records of St. Mary
Parish, Louisiana; as supplemented by the SELECTION OF SURFACE ACREAGE dated
October 9, 1961, filed October 19, 1961, recorded in Book 11-X, folio 444, under
Entry No. 112825 of the Conveyance Records of St. Mary Parish, Louisiana; as
amended by ACT OF AMENDMENT TO SALT LEASE dated May 30, 1973, filed May 31,
1973, recorded in Book 17-S, folio 870, under Entry No. 153936 of the Conveyance
Records of St. Mary Parish, Louisiana, as further amended by AGREEMENT dated
November 21, 1990, filed November 26, 1990, recorded in Book 33-Z, folio 186,
under Entry No. 232548 of the Conveyance Records of St. Mary Parish, Louisiana,
(hereinafter collectively referred to as the "Lease") and in and to the lands
hereinafter described.

                  For and in consideration of good and valuable consideration
and of the mutual advantages to be derived, LESSORS and LESSEE hereby agree to
amend the Lease, as of the effective date hereof, as follows:

                  1. LESSORS and LESSEE do release from the lands covered by the
Lease the following described property, to-wit:

                  That certain tract or parcel of land lying and being situated
                  in Section 20, T15S-R7E, St. Mary Parish, Louisiana, being
                  more particularly shown, designated and described as Tract
                  "EFGHIJKE" on plat of survey entitled

                                        2
<Page>

                  "PLAN OF LAND SHOWING PROPERTY OF ISLAND PARTNERSHIP, ET AL TO
                  BE RELEASED FROM AND TO BE ADDED TO LEASE TO CAREY SALT
                  COMPANY" made by Lamon G. Miller, P.L.S, dated April 18, 1997,
                  bearing Drawing No. 9694, a copy of which is annexed hereto
                  and made a part hereof for greater particularity as to
                  description, containing 12.0879 acres.

                  2. LESSORS and LESSEE do add to and include in the lands
covered by the Lease (and, accordingly, LESSORS do grant, lease, let and hire
unto LESSEE) the following described property, to-wit:

                  That certain tract or parcel of land lying and being situated
                  in Sections 19 & 20, T15S-R7E, St. Mary Parish, Louisiana,
                  being more particularly shown, designated and described as
                  Tract "ABCDA" on plat of survey entitled "PLAN OF LAND SHOWING
                  PROPERTY OF ISLAND PARTNERSHIP, ET AL TO BE RELEASED FROM AND
                  TO BE ADDED TO LEASE TO CAREY SALT COMPANY" made by Lamon G.
                  Miller, P.L.S, dated April 18, 1997, bearing Drawing No. 9694,
                  a copy of which is annexed hereto and made a part hereof for
                  greater particularity as to description, containing 10.0589
                  acres.

                  EXCEPT AS HEREIN AMENDED, LESSORS and LESSEE declare that the
Lease shall remain in full force and effect.

                  LESSORS hereby acknowledge that the Lease is in full force and
effect and that CAREY SALT COMPANY is the proper current LESSEE.

                  This amendment and all rights, titles, interests and
obligations of the LESSORS and LESSEE shall be binding upon and inure to the
benefit of the respective parties, their heirs, successors or assigns.

                  LESSORS and LESSEE do hereby authorized and request the Clerk
of Court and Ex-Officio Recorder of Conveyances for St. Mary Parish, Louisiana,
to make mention of this amendment in the margin of his records in Book 11-U,
Entry No. 111822 of the Conveyance Records of St. Mary Parish, Louisiana, to
serve as occasion may require.

                                        3
<Page>

WITNESSES:

                                         ISLAND PARTNERSHIP
---------------------------------

                                         By:
---------------------------------           ------------------------------------
                                            CAFFERY McCAY
---------------------------------

                                         By:
---------------------------------           ------------------------------------
                                            RADER JACKSON
---------------------------------

                                         By:
---------------------------------           ------------------------------------
                                            K. B. SENTER
---------------------------------

                                         JMB PARTNERSHIP

                                         By:
---------------------------------           ------------------------------------
                                            RONALD C. CAMBRE, PRESIDENT

---------------------------------

                                         CAROLINE F. BAKER TRUST #1

                                         BY: FIRST NATIONAL BANK OF
                                             COMMERCE TRUSTEE

                                         By:
---------------------------------           ------------------------------------
                                            CHRISTIAN FATZER, JR., ASST.
                                            VICE PRES. AND TRUST OFFICER
---------------------------------

WITNESSES:
                                         CAREY SALT COMPANY

                                         By:
---------------------------------           ------------------------------------
                                            JOHN S. FALLIS
---------------------------------

                                        4<Page>

                                                                    EXHIBIT 10.3

                                                                       No. 19024

                                ROYALTY AGREEMENT

Parties:          Utah State Land Board - "State."

                  Dix R. Turnbow - 50%, N.G. Morgan, Sr. - 25%, and Virgil V.
                  Peterson - 25%, "Lessees."

Date:             September 1, 1962

                  WHEREAS, Lessees wish to extract and recover salts and salt
products, or products manufactured from salts, excluding production of Magnesium
Chloride and its derivatives, from Great Salt Lake, and is entering into a lease
of even date for such purpose.

     1. As used herein, the word "salts" means sodium chloride and all other
salts, salt products, or products manufactured from salts, except Magnesium
Chloride and derivatives, extracted from Great Salt Lake, and it means and
includes other substances extracted from said waters, sodium chloride produced
or derived from other sources.

     The word "dry" used in conjunction with the word "salts" means actual
weight of salt calculated to a moisture-free basis. Methods of sampling. testing
and calculating moisture-free weight shall conform to methods prescribed by
Ass'n of Official Agricultural Chemists and approved by State. "Ton" means 2000
lbs avoirdupois.

     "Shipped by Lessees" means "shipped, used or consumed in a manufacturing
process, or sold or disposed of by Lessees.

     2. During term of agreement Lessees have continuing right to appropriate,
remove and divert water of and from Great Salt Lake for purpose of extracting
salts; provided agreement shall not be construed to relieve Lessees from full
compliance with Title 73, Utah Code Annotated, 1963, relative to diversion of
waters of State of Utah, where such is applicable.

     3. Lessees shall pay royalty to State when and as herein provided. Royalty
on gross value at point of shipment of any and all extracted products sold or
used, except KC1 which shall be not lest than 9%, shall be: 1.6% for first 3
years; 2.0% for next 5 years; and then increase at a rate of 0.2 of 1% per year
until it reaches maximum of 3%. In any event, royalty shall be not less than 30
cents/ton for KC1, 10 cents/ton for Na2SO4, 10 cents/ton for sodium chloride, 40
cents/ton for chlorine.

     4. Within 60 days after close of each calendar quarter, Lessees to file
with State a certificate specifying number of tons of dry salts shipped during
such quarters, and pay State appropriate royalty.

     5. State or its agents have right at reasonable times to inspect books and
records of Lessees as they pertain to number of tons shipped and computations
relating to moisture content.

<Page>

     6. Lessees have continuing right to construct and maintain ditches, flumes,
etc. where they deem essential for transporting waters of Lake to evaporating
ponds. After installation of any ditches, flumes, etc. Lessees to file with
State a plat or map showing exact location, size and dimensions. Any residue
brines to be returned to the Lake.

     7. Terms of agreement 16 years from September 1, 1962, ending August 31,
1979 and thereafter so long as salts are removed from premises and/or from Lake
brines, and State receives a minimum royalty of not less than $10,000 per year,
unless sooner terminated as in this paragraph. This agreement may be terminated
by Lessees on the last day of any calendar year by written notice to State of
intention at least 6 months prior to date specified in said notice. Coincidental
with termination date, Lessees to cease extraction of salts from waters of the
Lake unless and until it shall have once more entered into an agreement therefor
with the State. In event Lessees fail to pay all monies due the State under
terms of this agreement or violate any other term or condition, and within 60
days after written notice of such by State to Lessees, Lessees fail to make
payment or correct default, then State may terminate agreement by written notice
to Lessees not less than 30 days prior to date specified in notice. Coincidental
with termination Lessees shall cease extraction of salt from waters of the Lake
unless and until it has once more entered into an agreement with State and has
cured any and all defaults.

     8. In event any other person or company enters into an agreement with State
requiring them to pay monies to State for extraction of salts from Lake in
amounts which, when computed on dry basis shipped, is less than the royalty
stated in Item No. 3, then from the 1st day of the next calendar quarter after
date of such other agreement and while such other agreement remains in effect,
this agreement shall be deemed to be automatically amended so that Lessees pay
an equivalent amount. In event State enters into an agreement with a third party
providing for a royalty less than above for crude salts shipped outside the
State, then this agreement is automatically amended so Lessees pay a like
amount.

     9. Any notice to be given by State to Lessees shall be deemed to have been
served when served personally on any individual or when mailed, registered mail
postage prepaid to Lessees at principal office of Lessees.

     Any notice to be given by Lessees by State shall be deemed to have been
served when served personally on the Director of Utah State Land Board, or
successor board, commission or agency of State, or when mailed registered mail
postage prepaid addressed to Director, Utah State Land Board, or successor
board, etc.

     10. Neither party is liable to the other for loss or damage nor is either
party considered in default if performance is delayed or prevented due to acts
of God, war, revolution, etc., or by any acts, laws, regulations, etc. of U.S.
Government, fires, explosions, cyclones, floods, strikes, embargoes, failure of
transportation or sources of supply, etc.

     11. Lessees' benefits and its liabilities binding on its successors and
assigns. State's benefits and its liabilities binding on all boards, commissions
and agencies of the State, including Utah State Land Board and all successor
boards, etc.

                                        2
<Page>

     12. State reserves a lien on all unshipped salts for royalties due
hereunder and for such royalties as may be hereafter due from any unshipped
salts.

     13. Lessees understand that there is a previous lease for extraction of
Magnesium Chloride and derivatives with Bonneville-on-the-Hill Company and
Lessees agree to hold State harmless against any claims of
Bonneville-on-the-Hill pursuant to their lease.

                                         Utah State Land Board

                                         Max G. Gardner, Director

Dix R. Turnbow
N.G. Morgan, Sr.
Virgil V. Peterson

                                        3
<Page>

                                                                       No. 19024

                                 LEASE AGREEMENT

Parties:   Utah State Land Board - "State."

           Dix R. Turnbow - 50%, N.G. Morgan - 25%, and Virgil V.
           Peterson, 25% - "Lessees."

Date:      September 1, 1962

     WHEREAS, State is entering into an Agreement with Lessees for payment of
royalty on salts and salt products extracted from waters of Great Salt Lake,
excluding Magnesium Chloride and its derivatives, referred to as "Royalty
Contract;" and

     WHEREAS, Lessees desire to use premises of the State for extraction and
recovery of such salts, etc., excluding Magnesium Chloride and derivatives,
which premise State is authorized by law to lease:

     1. Agreed State leases to Lessees land (see lease) in Box Elder County,
Utah:

                 14,380.66 acres m/1 - unsurveyed - in Twp. 6
                 North, Range 6 West, and 6,400 acres m/1  -
                 unsurveyed - in Twp. 6 North, Range 4 West and
                 Twp. 6 North, Range 5 West.
                 Total leased 20,780.56 acres

     2. Lessees agree to pay rental of fifty cents (50(cent)) per acre per
annum, in advance on January 2nd of each year, except first year paid on
application for lease. State may adjust rentals at end of first 25 years if it
sees fit. All rentals paid to be credited against royalties, if any, which may
accrue during year in which rentals are paid. Minimum rental of $10,000 per
annum whether or not Lessees surrender or contract a portion of the lands under
lease.

     3. Lessees have right to use premises for production or manufacture of
salts and salt products, and manufacture of salt production of Magnesium
Chloride and its derivatives.

     4. Lease for term of 49 years commencing 9-1-62 and ending 8-31-2011, or
upon termination of Royalty Agreement dated 9-1-62, whichever is sooner.

     5. Lease is subject to law and to rules and regulations of Utah State Land
Board and to rules and regulations hereafter promulgated by the State.

     6. Lease may not be assigned, mortgaged, encumbered or disposed of in whole
or in part without consent of the State.

     7. State has right to enter premises at all reasonable times to inspect
workings thereon.

<Page>

     8. Agreed lease is issued only under such title as the State now holds, and
in event the State is divested of title, State is not liable for damage
sustained by Lessee, nor is Lessee entitled to any refund of rents or royalties
heretofore paid.

     9. Agreed that State reserves right to grant easements over and on the
lands for installation and maintenance of roads, power lines, pipe lines, etc.,
and Lessees are not entitled to compensation for loss of land due to granting
such easements. State reserves any and all existing easements and Lessees agree
to use premises in such a manner. State reserves right to grant additional
leases for other purposes providing they do not conflict with use of lands by
Lessees.

                                         State of Utah - State Land Board
                                                  Max C. Gardner

                                                     Director

Dix R. Turnbow
N.G. Morgan, Sr.
Virgil V. Peterson

                                        2
<Page>

                             SUPPLEMENTAL AGREEMENT

Parties:     Virgil V. Peterson, et al. - Nonoperators

             Lithium Corporation - Operator

Date:        October 1, 1963

     Concurrent with execution of this Agreement, parties are entering into an
agreement dated 10-1-63 relating to State of Utah Leases Nos. 19024 and 19059
and State of Utah Royalty Agreement No. 19024, and

     WHEREAS, on January 8, 1962, Peterson filed in office of Utah State
Engineer his Application to Appropriate Water (No. 34020) - approved by State
Engineer Feb. 28, 1963, and

     WHEREAS, on July 16, 1963, Peterson filed Application to Appropriate Water
(No. 35428) on which action is pending:

     Parties agree:

     1. Peterson represents and declares that said water applications were filed
for use and benefit of Nonoperators and their successors. Peterson agrees that
he will, upon request of owners, transfer and assign all rights under such water
applications.

     2. Parties recognize and agree that water applications and rights
thereunder are intended to be subject to Agreement of 10-1-63, and said water
applications and rights are included in the term "Property" as used in Agreement
of 10-1-63, as fully as if specifically referred to and identified therein.
Parties agree that all rights and obligations of both parties under Agreement of
10-1-63 shall extend to and apply to each of said water applications and all
rights thereunder.

                             /s/ Virgil V. Peterson

E.L. Bondy                   Lithium corporation

                             /s/      F. F. C.

                             Dix R. Turnbow

                             N.G. Morgan, Sr.
                             Virgil Peterson

                             Morgan-Peterson Enterprises
                                      N.G. Morgan, Sr.

<Page>

                                                                           19024

                           L E A S E   A G R E E M E N T

                  THIS AGREEMENT, made and entered into at Salt Lake City, Utah,
by and between the UTAH STATE LAND BOARD, acting in behalf of the STATE OF UTAH,
hereinafter referred to as the "STATE," and DIX R. TURNBOW - 50% interest, N.G.
MORGAN - 25% interest, and VIRGIL V. PETERSON - 25% interest, having their
principal place of business at Salt Lake City, Utah, hereinafter referred to as
"LESSEES."

                              W I T N E S S E T H :

               WHEREAS, by instrument of even date herewith the STATE is
entering into an agreement with the LESSEES for the payment of royalty on salts,
and salt products extracted and recovered by LESSEES from the waters of the
Great Salt Lake, excluding the production of Magnesium Chloride and its
derivatives, herein referred to as "Royalty Contract," and

               WHEREAS, LESSEES desire to use premises of the STATE for or in
connection with the extraction and recovery of such salts, salt products, or
salt products manufactured therefrom, excluding the production of Magnesium
Chloride and its derivatives, and the STATE has premises suitable for such
purposes which it is authorized by law to lease;

               NOW, THEREFORE, it is agreed at follows:

               1. The STATE does hereby lease to the LESSEES the following
described tracts of land situated in Box Elder County, State of Utah:

               UNSURVEYED LANDS:

                    Commencing at a point where the meander line of Great Salt
               Lake intersects or meets the east line of Section 36, T. 6 N., R.
               6 W., SLM, running thence S.3/4mi m/1 to the proposed southeast
               corner of Section

<Page>

     36, being a township corner, thence W. 5 mi. m/1, N. 1-1/4 mi. m/1, W. 1
     mi. m/1, N.3/4mi m/1, E. 1 mi. m/1, N. 4 mi. m/1, E. 2-7/8 mi. m/1 to a
     point where the meander line of Great Salt Lake intersects the north line
     of Section 3, T. 6 N., R. 6 W., SLM, thence southerly along said meander
     line 3-1/2 mi. m/1 to the north boundary of the north segment of Lake
     Crystal Salt Company lease ML 1623, then westerly along the north boundary
     to the northwest corner of said lease, thence south along the west boundary
     to the southwest corner of said lease, thence south 2376' m/1 to the north
     boundary of the south segment of Mineral Lease 01623, thence west 7245' m/1
     to the proposed west boundary of Section 27, T. 6 N., R. 6 W., SLM, thence
     south along said west boundary 1526' m/1 to the north property line of the
     Southern Pacific Company, thence easterly along said property line 2-1/2
     miles m/1 to the meander line of Great Salt Lake, thence southeasterly
     along said meander line to point of beginning, which when surveyed will
     probably be described as:

<Table>
<Caption>
     Township 6 North, Range 6 West, SLM
     ------------------------------------
             <S>                                  <C>
             Sec.    3 - Part, Unsur.             Sec.    22 - All
             Sec.    4 - All                      Sec.    23 - Part
             Sec.    5 - All                      Sec.    25 - Part
             Sec.    8 - All                      Sec.    26 - Part
             Sec.    9 - All                      Sec.    27 - Part
             Sec.   10 - Part, Unsur.             Sec.    28 - All
             Sec.   11 - Part, Unsur.             Sec.    29 - All
             Sec.   14 - Part, Unsur.             Sec.    30 - N1/2, N1/2S1/2
             Sec.   15 - All                      Sec.    32 - All
             Sec.   16 - All                      Sec.    33 - All
             Sec.   17 - All                      Sec.    34 - All
             Sec.   20 - All                      Sec.    35 - All
             Sec.   21 - All                      Sec.    36 - Part, Unsur.
</Table>

                                                Containing 14,380.56 acres m/1

     ALSO UNSURVEYED LANDS:

          Commencing at a point where the meander line of Great Salt Lake joins
     or intersects the south boundary of Section 15, Township 6 N., R. 5 W.,
     SLM, running thence northerly 2-1/2 mi., m/1, to the center line of Sec. 2,
     T. 6 N., R. 5 W., SLM, thence E. 1-3/4 mi. m/1, to the proposed west
     boundary northwest corner when surveyed of section 7, T. 6 N., R. & W.,
     SLM, thence E. 1-1/2 mi. m/1, S. 2 mi. m/1, E.1/2mi. m/1, S. 1 mi. m/1, W.
     2 mi. m/1 to the proposed SW corner when surveyed of Sec. 19, T. 6 N., R. 4
     W., SLM, thence N.3/4mi. m/1 to the proposed northeast corner, when
     surveyed of Section 24, T. 6 N., R. 5 W., SLM, thence W. 2-3/4 mi. m/1, to
     point of beginning, which when surveyed will probably be described as:

                                        2
<Page>

<Table>
<Caption>
    Township 6 North, Range 4 West          Township 6 North, Range 5 West
    ------------------------------          ------------------------------
        <S>                                 <C>
        Sec.    7 - All                     Sec.    1 - S1/2
        Sec.    8 - W1/2                    Sec.    2 - S1/2 of unsur. part
        Sec.   17 - W1/2                    Sec.   10 - Part, unsur.
        Sec.   18 - All                     Sec.   11 - Part, unsur.
        Sec.   19 - Part                    Sec.   12 - All
        Sec.   20 - Part                    Sec.   13 - All
                                            Sec.   14 - All
                                            Sec.   15 - Part, unsur.
</Table>

                          Containing 6,400.00 acres m/1

                     TOTAL for lease - 20,780.56 acres m/1

     2. LESSEES agree during the term hereof, as rental for land covered by this
lease, to pay the sum of fifty cents ($0.50) per acre per annum, all such
payments of rentals to be made in advance on the second day of January of each
year except the rental for the year in which the lease is issued, which is
payable on the application for this lease. The STATE may adjust lease rentals at
the end of the direct twenty-five years as it shall see fit in the best interest
of the STATE. All rentals paid hereunder shall be credited against the
royalties, if any, which may accrue on production during the year for which such
rentals are paid. There shall be a minimum rental hereunder of Ten Thousand
Dollars ($10,000.00) per annum whether or not LESSEES shall surrender or
contract a portion of the area of lands under lease.

     3. LESSEES shall have the right to use the leased premises for the
production manufacture of salts and salt products, and manufacture of salt
products exclusive of the production of Magnesium Chloride and its derivatives.

     4. This lease agreement shall be for a term of Forty-Nine (49) years
Commencing at of September 1, 1962, and ending August 31, 2011, or upon
termination of the Royalty Agreement between the parties dated September 1,
1962, whichever is sooner.

                                        3
<Page>

     5. This Lease is made subject to law and to the rules and regulations of
the Utah State Land Board and to such rules and regulations as may be hereafter
promulgated by the STATE.

     6. This Lease shall not be assigned, mortgaged, or otherwise encumbered or
disposed of in whole or in part without the consent of the STATE.

     7. The STATE or its officers or agents shall have the right to enter upon
the leased premises at all reasonable times to inspect the workings thereon.

     8. It is mutually understood and agreed that this Lease is issued only
under such title as the State of Utah may now hold, and that in the event the
STATE is hereafter divested of such title, the STATE shall not be liable for any
damage sustained by the LESSEE, nor shall the LESSEE be entitled to or claim any
refund of rentals or royalties or other moneys theretofore paid to the LESSOR.

     9. It is understood and agreed that the STATE reserves the right to grant
and convey easements over and upon the lends hereby leased for the installation
and maintenance of roads, power lines, pipe lines or other facilities, and
LESSEES shall not be entitled to any compensation for loss of lands due to the
granting of such easements. The STATE also reserves any and all existing
easements over and upon the leased premises, and LESSEES agree to use the leased
premises in such a manner. The STATE also reserves the right to grant additional
leases on the above described lands for other purposes, providing such leases
would not conflict with the use of the lands by the LESSEES hereunder.

                                        4
<Page>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
as of the first day of September 1962.

                                     STATE OF UTAH - STATE LAND BOARD

                                     By
                                        ----------------------------------
                                         Max C. Gardner, Director

LESSEES:

---------------------------
Dix R. Turnbow

---------------------------
N. G. Morgan, Sr.

---------------------------
Virgil V. Peterson

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}]]