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pursuant to subsection 3.2, subject to the conditions that Lessee shall not be in <br /> default under this Lease at the time notice is received or at the time of <br /> commencement of the Extended Term and conditioned on Lessor's approval of <br /> the mining plan for Pit 5 as provided in subsection 3.2. The Primary Term and the <br /> Extended Term(if exercised)are together referred to in this Lease as the "Term." <br /> 4. Royalties and Reserves. In consideration for Lessee's rights and Lessor's obligations <br /> under this Lease, Lessee shall compensate Lessor as follows: <br /> 4.1 Lessee shall pay a production royalty ("Royalty" or "Royalties") to Lessor at the <br /> rate of $1.00 per ton (2,000 lbs.) of Common Materials removed from the <br /> Property under this Lease. <br /> 4.2 No production Royalty shall be payable to Lessor unless and until Common <br /> Materials are taken off the Property. <br /> 4.3 Lessee shall provide Lessor with a monthly written statement specifying the <br /> weight of all Common Materials removed by it during the preceding month and <br /> shall make payments to Lessor of any Royalty due by the 20 day of each month <br /> at Lessor's address stated in the introductory paragraph of this Lease, unless <br /> Lessee is otherwise directed in writing by Lessor. If Lessee fails to make any <br /> Royalty payment within fifteen (15) days after it is due, Lessee shall pay on <br /> demand to Lessor interest on the unpaid amount from its due date until paid at the <br /> lesser of twelve percent(12%)per annum or the maximum rate allowed by law, in <br /> either case compounded annually. Imposition or payment of interest on late <br /> payments will not excuse, or constitute a waiver of any remedy for, any default by <br /> Lessee based upon failure to pay Royalties when due. <br /> 4.4 At all times from the Commencement Date until the later of termination of this <br /> Lease or removal of all Common Materials from the Property under paragraph <br /> 1.4(a), Lessee shall maintain one or more weighing devices (for example truck <br /> scales or scale devices in a concrete batch plant or asphalt hot mix plant) on the <br /> Property which will be independently certified as accurate as and when required <br /> by applicable governmental authorities at Lessee's expense. All Common <br /> Materials removed from the Property by Lessee shall be weighed on these scales. <br /> Lessee shall keep accurate and complete records of the weights of all Common <br /> Materials taken off the Property by Lessee, which shall be available for review <br /> (and copying at Lessor's expense) by Lessor at Lessee's address in the <br /> introductory paragraph of this Lease during regular business hours. <br /> 4.5 Lessor retains all other minerals and mineral rights in the Property not specifically <br /> granted to Lessee by this Lease. If Lessee encounters other minerals in <br /> commercially paying quantities while operating under this Lease, Lessee will <br /> notify Lessor. <br /> 5. Lessor's Warranties. Lessor warrants title to the Property, and to all Common Materials <br /> located on the Property, subject to the following: all easements and rights-of-way of <br /> 4 <br />