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successive periods of one (1)year each (each, a "Renewal Period"), up to a maximum total Lease <br /> term of nine (9) years. Each Renewal Period shall be on the same terms, covenants and <br /> conditions as provided in this Lease, except that there shall be no privilege to renew the Term for <br /> any period of time beyond the expiration of the last Renewal Period without the express written <br /> agreement of the parties, and except that the Royalty Payments for each such Renewal Period <br /> shall be adjusted as provided herein. At the beginning of each Renewal Period, the unit Royalty <br /> Payment shall be adjusted per Section 3(b). The Initial Term together with any applicable <br /> Renewal Periods are hereinafter referred to as the"Term." <br /> 3. Royalties. <br /> (a) As consideration for Lessee's right to occupy and use the Leased Premises <br /> for the Approved Use, on or before the thirtieth (30th) day following the end of any calendar <br /> month during the Term, Lessee shall deliver to Lessor a royalty payment initially equal to $2.50 <br /> per ton of all Aggregate scaled, sold, used or otherwise processed by Lessee, and removed from <br /> the Leased Premises during such calendar month (the "Royalty Payment"), as may be adjusted <br /> per Section 3(b). Each Royalty Payment shall be accompanied by an itemization of Material <br /> removed during the calendar month in question. Lessee shall keep tally records of Material <br /> removed from the Leased Premises, whether sold to others or used in Lessee's own business. <br /> Any Materials originating on the Leased Premises other than Aggregate that are removed from <br /> the Leased Premises to facilitate the Approved Use shall not be subject to the Royalty Payment, <br /> Importing Materials from off-site for recycling, such as used concrete and asphalt ("Recycle <br /> Materials") shall be allowed; Lessee shall pay Lessor a royalty of $2.50 per ton for Recycle <br /> Materials processed on the Leased Premises, as adjusted per Section 3(b). <br /> (b) The per ton Royalty Payment for Aggregate and royalty for Recycle <br /> Materials shall be adjusted annually. The Parties shall adjust the royalty based on a factor <br /> determined from the I3LS index for commodity code 1321 of the producer price index. The rate <br /> for previous year shall be multiplied by a factor obtained by dividing the index value for the <br /> month of November preceding the commencement of the calendar year to which the adjustment <br /> is applicable by the value from the month of November of the preceding year. <br /> (c) If there is no production from the Leased Premises during any calendar <br /> tnonth during the Term, Lessee shall so state in a monthly report to Lessor. Lessor shall be <br /> entitled to a minimum total annual compensation of thirty thousand dollars ($30,000.00), which <br /> the parties intend shall be derived from the Royalty Payments. However, if the total Royalty <br /> Payments for an individual year shall be less than $30,000.00, Lessee shall pay to Lessor an <br /> amount equal to the difference between $30,000.00 and the actual total Royalty Payments <br /> received by Lessor during said calendar year (the "Shortfall Payment"). The Shortfall Payment <br /> shall be due to Lessor within 30 days after the end of the individual calendar year during which <br /> the shortfall occurred. <br /> (d) Lessee shall maintain accurate written books and records of all Material <br /> mined, removed, used or sold by Lessee hereunder, as well as any Recycle Materials brought to <br /> and processed on the Leased Premises, including books and records showing the basis on which <br /> Royalty Payments are calculated. Lessor shall have the right hereunder to employ, at its sole cost <br /> Page 2 of 10 <br /> Elintsione-Scott Mining Lease <br />