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F <br /> C. The right at all times during the life of this Lease to go upon said premises and every E <br /> part thereof for the purpose of inspecting said premises, and the books of accounts and <br /> records of mineral workings therein, and of ascertaining whether or not said Lessee and <br /> those holding thereunder by and from it, are carrying out the terms, covenants and <br /> agreements in this Lease contained. <br /> TO HAVE AND TO HOLD the above described Leased Premises unto Lessee, its heirs, <br /> successors, assigns, or legal representatives for the primary term of 10 years, and until Twelve <br /> O'clock noon on the 8th day of January, 2025. The Lease may continue in effect for an l <br /> additional 10 years to the 8th day of January, 2035 (the "Secondary Term") as long as sand and <br /> gravel are being produced in paying quantities from the Leased Premises and subject to the <br /> terms of paragraph 5 of this Lease, and the royalties and rentals provided for herein are being <br /> paid, subject to the following terms, conditions and agreements, to wit: <br /> 1. ADVANCE MINIMUM ROYALTY -- As minimum and advance royalty, without relation to the <br /> amount of minerals mined from the Leased Premises, Lessee shall pay annually in <br /> advance to Lessor the following amounts: <br /> LEASE YEAR AMR <br /> 1-10 $0 t <br /> If Lessee does not extract minerats from the Leased Premises sufficient to return to <br /> the Lessor the minimum amounts above specified, it is nevertheless understood that the <br /> above sums of money are due and payable to Lessor whether or not minerals are mined, <br /> but that such advance minimum royalty shall be credited upon the first royalties due as <br /> herein provided for minerals actually produced from the Leased Premises. In the <br /> absence of production of minerals in continuous paying quantities before the expiration, <br /> date of the Lease, all advance minimum royalties shall be forfeited to Lessor. <br /> Further, at the beginning of the Secondary Term and at the end of each five-year <br /> period thereafter, Lessor may reasonably change the rate or amount of advance <br /> minimum royalty to be paid by Lessee. Failure to comply with any new advance <br /> minimum royalty rate set by Lessor may subject this Lease to cancellation by thirty day <br /> written notice by Lessor. <br /> In case of assignment of this Lease, all advance minimum royalty paid to the Lessor <br /> shall be carried forward and credited to the new assignee. <br /> 2. PRODUCTION ROYALTY -- Lessor reserves as royalty, and Lessee agrees to pay to Lessor <br /> on or before the last day of each calendar month following a month of production of <br /> sand and gravel the following amounts: <br /> • The royalty rate shall be $ 0.40 per ton (2000 pounds) of sand 8t gravel or $0.60 <br /> per loose cubic yard produced and removed from the Leased Premises. <br /> Further, at the end of each five-year period, commencing from the original Lease <br /> date, for so long as this Lease remains in effect, Lessor may increase the rate or amount <br /> of production royalty to be paid by Lessee by a rate not to exceed the rate of increase of <br /> i <br /> i <br /> Page 2 of 13 <br />