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average yield on United States Treasury Securities adjusted to a constant maturity of <br /> one year,as made available by the Federal Reserve Board,plus a margin of 3.000 <br /> percentage points,the sum rounded up to the nearest 0.125 percent; provided, <br /> however, that the maximum increase or decrease in the interest rate in a given year <br /> shall not exceed 2.00 percentage points.All interest under this paragraph shall be <br /> amortized over 10 years. The entire amount outstanding under this paragraph, <br /> including all principal and interest, shall be due and payable in full on November 1, <br /> 2022 if not sooner paid. There shall be no prepayment penalty. In the event that <br /> Purchaser is not permitted by the current owner of the mineral rights in the Dickerson <br /> Pit(i.e. the Dickerson family)to continue at least current operations for the next five <br /> years through no fault of Purchaser,the amount owed under this paragraph 2. shall be <br /> reduced by 50%per year for every year(or prorated portion thereof)that Purchaser is <br /> not permitted to continue operations at the Dickerson Pit. <br /> 3. Percentage Pavment.Starting November 1,2022,and in addition to the above <br /> payments,Purchaser, GAR and any other owner of the Permits shall also pay to <br /> Wilcox 5%of all sales proceeds from inventory or materials extracted after the date <br /> hereof from the pits subject to the Permits, including without limitation all future <br /> extractions similar to the Inventory. This 5%(as the same adjusts as set forth below) <br /> will not be reduced by transportation or other costs incurred if the point of sale is not <br /> at the pits subject to the Permits. The 5%(as the same adjusts as set forth below)will <br /> be calculated on the gross sales proceeds from the pits subject to the Permits. <br /> Purchaser and GAR will not assign,transfer,sell or intentionally release or abandon <br /> the Permits without the prior consent of Wilcox,which shall not be unreasonably <br /> withheld provided that any assignee,heir,successor or other buyer from Purchaser, <br /> GAR or any other owner of the Permits shall agree to make this 5%payment(as the <br /> same adjusts as set forth below)in lieu of Purchaser or GAR. Payments to Wilcox <br /> under this paragraph shall be made no less frequently than quarterly. The term"sales <br /> proceeds"as used herein means consideration of any type or nature whatsoever, <br /> including without limitation additional payment on work for any affiliate of Purchaser <br /> or the hiring of an affiliate of Purchaser for a premium. Should Purchaser or any <br /> affiliate of Purchaser become an owner or obtain an ownership interest of any of the <br /> pits subject to the Permits such Purchaser or affiliate shall make 5%payment(as the <br /> same adjusts as set forth below)set forth above. Beginning November 1, 2037,the <br /> 5%rate will change to a 2.5%rate until November 1,2047, at which time no further <br /> amounts shall be owed under this paragraph. The term"affiliate"as used herein <br /> means any family member of Chauncey Zane Lutterell as well as entity in which <br /> Purchaser or Chauncey Zane Lutterell or any family member of Chauncey Zane <br /> Lutterell have any ownership or other beneficial interest. Inventory and materials <br /> will be sold in good faith for an amount not less than 10%less than the average list <br /> price for the same type of inventory or materials of a comparable quality established <br /> by all other suppliers of the same in Gunnison County and,if none,than such other <br /> suppliers as exist in the State of Colorado. Purchaser,upon 30 days written notice, <br /> shall provide Wilcox with the right to inspect Purchaser's books and records no more <br /> frequently than once quarterly for the purpose of determining compliance with this <br /> la�,. <br /> Page 2 of 8 ru <br /> ' <br />