_PERMIT FILE - M1997053 ‎(29)‎

• Permit No: M1997053
• IBM Index Class Name: Permit File
• Section_Exhibit Name: EXHIBIT N SOURCE OF LEGAL RIGHT-TO-ENTER
• Media Type: D
• Archive: No

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payment of any utility or other charges for machinery, pumps, equipment, personal property,
' telephone lines, electric lines and water lines installed by GJP.
' 6. In consideration of this Lease, GJP agrees to pay to District as follows:
A. GJP shall pay a production royalty to District at the rate ("Initial Rate") of
$0.75 per ton(2,000 lbs.)of Common Materials mined and removed from the Property under
this Lease, subject to adjustment as provided below.
B. Annually on each anniversary date ("Anniversary Date") of the Commence-
ment Date, the Initial Rate royalty payable to District shall increase (but not decrease) in
proportion to any increase in the Consumer Price Index for Urban Wage Earners and Clerical
Workers, "All Items" category, U.S. City Average (the "Index"), as prepared and published
by the Department of Labor, United States of America. At each Anniversary Date, the
Initial Rate shall be adjusted by multiplying the Initial Rate by the greater of one or a fraction
in which the denominator is the Index at the Commencement Date and the numerator is the
last published Index at that Anniversary Date. The adjusted rate so determined shall be the
' applicable royalty rate which shall be used until the next Anniversary Date. Such increase,
if any, shall control until the next Anniversary Date. If for any reason the described Index
shall no longer be published, then the parties shall attempt to reach a mutual agreement on
' an index reasonably similar thereto. If no mutual agreement is reached within 30 days of the
Anniversary Date for which the Index is no longer available, then the index to be applied
from the Anniversary Date for which the index is no longer published shall be determined
' by arbitration under the Rules and Procedures of the American Arbitration Association
(Commercial) subject to the following additional provisions:
' (i) Pending the outcome of that arbitration GJP will continue to pay
royalties to District at the rate in effect immediately prior to the Anniversary Date for
which the Index is no longer published. If the outcome of the arbitration is that
additional sums are owed by GJP to District for the period from the Anniversary Date
for which the Index is no longer published to the date of the arbitration decision, that
' sum shall be paid by GJP to District in good funds thirty days after the date of the
arbitration order.
' (ii) Despite anything to the contrary stated elsewhere in this Agreement,
in any arbitration under this Paragraph 6.13. the parties shall each pay one-half of the
costs of arbitration and their own attorney fees and costs related to the arbitration.
' C. Subject to the provisions of Paragraph 7, below, no production royalty shall
be payable to District unless and until the Common Materials are removed from the Property.
D. GJP shall provide District with a written statement as to all Common
Materials removed by it during the preceding calendar month and, subject to the provisions
!:\ p\I698\040\dxe\GRAVLES.4CWD -4- September 20. 1996