2014-10-01_PERMIT FILE - M2014055

Home Browse Search

CMS 62167 iiL The Lease Fee shall adjust upward,on an annual basis,at the rate of one and one quarter percent(1.25%). iv. If Royalties do not equal at least Twenty Thousand Dollars and No Cents($20,000.00)in any year after the third year of the Lease Term,adjusted per§&BAL,the Lease Fee shall increase to a minimum of$76.00/acre of Leased Premises,adjusted per§B.A.iiL There is no upward Lease Fee adjustment relating to Royalty payments for the first three(3)years of the Lease Term. B.Royalties i. Lessor shall pay Royalties to Lessor per ton of Construction Materials removed from the Leased Premises, as weighed on the Leased Premises,at One Dollar and No Cents($1.00)for the first full year of the Lease Term. No volumetric accounting is allowed. ii. Royalties are due and payable within thirty(30)days after the month in which the Construction Materials are removed from the Leased Premises,regardless of whether Lessee has received payment for the Construction Materials. iii. Royalties shall be adjusted upward,on an annual basis from the Effective Date,using the greater of the BLS PPI,or the average annual rate of increase in the Lessee actual unit sale prices by type of Construction Material sold over the past twenty-four(24)months. When calculating the Royalty adjustment using the identified PPI,the rate of adjustment used will be determined by multiplying the difference in the prior two full calendar years,when this is a positive percentage,by the then previous year Royalty. There will never be a downward adjustment to the Royalty rates in any year,regardless of sales price or PPI changes. C.Time and Place of Payment Payment shall be made by check drawn on a national bank registered to do business in the state of Colorado. Lessee shall ensure DOC receives Lease Fee and Royalty payments on the due date at the following location. Colorado Department of Corrections Division of Correctional Industries Accounts Receivable P.0.Box 230 Canon City,CO 8 1215-023 0 D.Late Payment The late payment of Lease Fees or Royalties shall accrue interest at the rate of one-percent(1%)per month from Lessee,accruing as of the date the payment was due. 9.WARRANTIES and REPRESENTATIONS A.Regarding the Property Lessor has reason to believe that it is the owner of the Leased Premises Surface Estate. Lessor is unaware of any separation of the rights to Construction Materials from the Surface Estate. The Parties are aware of inconsistencies in the interpretation of Colorado real property law regarding whether Construction Materials might be considered a part of the Subsurface Estate when and if the ownership of the Leased Premises has a Split Estate. Lessee assumes the risk that Lessor has title and ownership in both the Surface Estate and its associated Construction Materials. Lessee,by execution of this Lease, asserts it has conducted due diligence to its satisfaction in this regard. Lessor makes no warranty of ownership of either the Surface Estate or the associated Construction Materials. B.Regarding the Use of Offender Labor The Parties recognize that a central purpose of this Lease is to train and employ offenders as required under the OLA,Exhibit H, for the Lessee operations at the Leased Premises. Operator further acknowledges that the failure to train and employ available offenders,in a meaningful way,as contemplated thereunder shall frustrate the purpose of this Lease,rendering it subject to termination as provided in§17.B. C.Regarding Fitness of Use and Commercial Value Lessor makes no representations as to ability of the Leased Premises to meet the business goals of Lessee or as to the commercial value of this Lease or the fitness of the Leased Premises for Lessee's intended purposes of the Lease. Lessor is relying solely on the interest of Lessee in the Leased Premises. Lessee completely assumes any and all direct or indirect costs incurred on the part of Lessee in entering into this Lease and complying with the terms and conditions of this Lease. D.Utilities Page 5 of 13 N -U