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JUL. 10.2001 12~23PM UNITED COMPgNIES NG.423 P.3 <br />,' • • <br />• <br />from the Leased Property (referred to as "Material"), and the operation of a cnrsbiag plant, a <br />wash plant, aready-nrix wncrete and/or asphaltic concrete plant or any other business whose <br />primary activity is the utilizarion of concrete and/or asphaltic concrete products (all activity by <br />Lessee on the Leased Property collectively referred to as "Gravel Mining Operations"). <br />III. TERM OF LEAS]r <br />The term of this Lease shall commence on the first day after Lessee has acquired all state <br />and local licenses required to operate its Gravel Mining Operations ("CorRtnencement Date"); <br />Lessee agrees to obtain all permits is as expeditious a manner as possible. The term of this <br />Leaseshall befar afive-year period, tmless terminated sooner pursuant to the protizsions of this <br />Lease. The first "Annual Amtivcrsary Date" shall be one year after the Commencement Date <br />provided above, There shat] be a single five-year renewal option, which is to be exercised by <br />Lessee serving upon Lessor, no later than ninety (90) days prior to the end of the initialfive-yoar <br />term, a written notice of Lessee's intention to renew the Lease for an additional five-year period. <br />N. ROYALTIES <br />Lessee shall pay to Lessor, as royalty, the sum of fifty cents (5.50) for each ton of sand <br />• ~ and gravel removed from the Leased Property and twenty-five cents (S.ZS) far each ton of <br />overburden dirt removed from the Leased Property. The quantity shall be determined before the <br />materials are removed frara the Leased Property. Lessee agrees to pay Lessor Four Thousand <br />Dollazs ($4,000.00) annually in advance of the Lease Yeaz: the first Four Thousand Dollar <br />($4,000.00) paymentduewitbinfifteen(15} days ofthe CorornencementDate, andpayments due <br />thereafter on the Annual Anniversary Date for each sttcceeding yeaz. Royalties for materials <br />removal shall be credited against the advanced royalties until the entire amount is offset by the <br />advance payment crodit. If, in any lease year, Lessee fails to remove Material as has been paid <br />for by the advance payment, the excess ofthe advance payment shall constitute a credit against <br />tons removed end sold in the future, except that cumulative credits shall expire at the end of the <br />original five-year term of this Loose and at the end of any five-year renewal term for this Lease. <br />On each Annual Anniversary Date, the royalty rate to be paid for Material removed from <br />the Leased property shallbe adjusted ro reflectthe chaagein the purchasitlgpower of the dollar. <br />The adjustment computation shall be based on The Consumer Price Index (Al] Urban <br />Consumers, All Cities, All Items), as prepazed by the Uaite3 States Department of Labor as of <br />the Annual Anniversary bate. The index obtained shall be compazed with the price index figure <br />for rho irrrmediatoly preceding Annual Anniversary Rate (or Commencement Date, whichever <br />the case maybe), and the per-ton price shall be varied (either increased or decreased) in the same <br />ratio as the more recent price index bears to the less recent price index. If the index prescribed <br /> <br />