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#3 will be as determined by CWH. The Royalty shall be paid monthly in arrears,not later than the twentieth
<br /> day of the month following the month in which the sales upon which such Royalty is based took place. The
<br /> Royalty Rate shall be adjusted on January 1,2020,and upon January 1st of each subsequent calendar year,
<br /> in accordance with Schedule 3(c)attached and incorporated by reference. For the avoidance of doubt,if a
<br /> Product or Imported Product is used in the production of another material (e.g.,asphalt)the weight of any
<br /> other components of such other material (e.g., asphalt oil) shall be subtracted from the weight of such
<br /> material for purposes of calculating the Royalty.
<br /> (d) Minimum Royalty. Tenant shall be required to pay Royalties on a minimum
<br /> of 50,000 tons of Products (the "Minimum Quantity") during each calendar year in the Term, provided
<br /> that such minimum quantity shall be evenly prorated for any partial years that may exist at the beginning
<br /> or end of the Term. In the event that Tenant sells less than the Minimum Quantity of Products during any
<br /> calendar year in the Term, Tenant shall make an additional payment equal to the difference between the
<br /> Minimum Quantity and the actual number of tons of Products sold by Tenant during such year,multiplied
<br /> by the Royalty Rate in effect as of December 31 of such year. Such additional payment shall be due on the
<br /> first business day of February of the following year.
<br /> (e) Interest on Past Due Payments. Amounts payable by Tenant under this Lease
<br /> which are not paid within 10 days of when due shall accrue interest at 12%per annum until paid.
<br /> 4. INSURANCE.
<br /> (a) Tenant at all times during the Term shall,at its own expense,keep in full force
<br /> and effect comprehensive general liability insurance with "personal injury" coverage and contractual
<br /> liability coverage with minimum limits of$1,000,000 on account of bodily injuries to,or death of, one or
<br /> more than one person as the result of any one accident or occurrence on the Premises and $2,000,000 on
<br /> account of damage to property, together with pollution liability insurance in the amount of$2,000,000.
<br /> CWH and Connell shall be additional named insureds on said policy or policies. Tenant shall provide
<br /> evidence of insurance to CWH annually.
<br /> (b) CWH at all times during the Term shall,at its own expense,keep in full force
<br /> and effect comprehensive general liability insurance with "personal injury" coverage and contractual
<br /> liability coverage with minimum limits of$1,000,000 on account of bodily injuries to,or death of, one or
<br /> more than one person as the result of any one accident or occurrence on the Premises and $2,000,000 on
<br /> account of damage to property, together with pollution liability insurance in the amount of$2,000,000.
<br /> Tenant shall be an additional named insured on said policies. CWH shall provide evidence of insurance to
<br /> Tenant annually.
<br /> 5. RECLAMATION. Tenant shall be responsible for all reclamation obligations relating
<br /> to the Mining Pods during the Term, and Tenant agrees to perform such obligations with respect to any
<br /> particular Mining Pod within three years of completing mining operations in such Mining Pod in accordance
<br /> with the applicable Colorado Division of Reclamation Mining and Safety mining plan. At the end of the
<br /> term, at CWH's option, Tenant shall either(a) complete all remaining reclamation obligations relating to
<br /> the Mining Pods (other than the obligations of CWH set forth in Section 2(c)), or (b) assign any mining
<br /> permits relating to the Mining Pods to CWH or its designee,which will assume and perform all remaining
<br /> reclamation obligations under such permits. In the event that CWH elects option (a), CWH shall grant
<br /> Tenant all access to the Mining Pods that is reasonably necessary for the fulfillment of Tenant's reclamation
<br /> operations thereon,at no additional cost to Tenant.
<br /> 6. TAXES AND UTILITIES. CWH shall be liable for all real estate taxes levied or
<br /> assessed against the Property and Tenant shall be liable for all taxes lev}ed or assessed against mined
<br /> Materials(including all items listed on the Earth or Stone Products Real and Personal Property Declaration
<br /> Schedule#C0035245),its personal property,furniture or fixtures on She Mining Pods. Tenant shall pay all
<br /> electrical,water,gas,heat,light,power,telephone,sewer,sprink4ei charges and other utilities and services
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