Laserfiche WebLink
1 <br />sheds, buildings, machinery, pumps, equipment, personal property, telephone lines, electric lines <br />' and water lines installed by GJP. <br />' ~. In consideration of [his lease, GJP agrees to pay to Lessor as follows: <br /> A. GJP shall pay a production royalty to Lessor at the rate of $0.65 per ton of <br />' sand, gravel, and other materials (the "product")mined and removed from the Property under <br /> [his lease, subject to adjustment as provided below. <br />' B. Annually on the anniversary date of the lease term (including the extended <br /> term, if GJP exercises its option to extend this lease as provided in Paragraph 3, above), the <br /> royalty payable [o Lessor shall increase in proportion to the increase in the Consumer Price <br />' Index for Urban Wage Earners and Clerical Workers, "All Items" category, U.S. City <br /> Average, as prepazed and published by the Depaztment of Labor, United States of America. <br /> Such increase shall relate to the index published for the month in which the lease term <br />' commences, as compared to the most current monthly index available on the anniversary <br /> date in each year of the lease term or any extension [hereof. Such increase, if any, when so <br />' determined, shall control until the next anniversary date. If for any reason the described <br /> Index shall no longer be published, then the parties shal I attempt to reach a mutual agreement <br /> on an index reasonably similar thereto. If no mutual agreement can be obtained, then the <br />' index to be applied shall be determined by arbitration under [he Rules and Procedures ofthe <br /> Anmerican Arbitration Association (Conmmercial). <br />' C. Subject to the provisions of Paragraph 6, below, no production royalty shall <br /> be payable to Lessor unless and until the product is removed from the Property. <br />' D. GJP shall provide Lessor with a written statement as to all product removed <br /> by it during the preceding month and, subject to the provisions ofPazagraph 6, below, shall <br />' make payments to Lessor of any royalty due by the 20th day of each nmonth. <br /> E. GJP slmal I instal I scales and weigh all product before or at the time of removal <br />' from time Property and shall preserve the weight tickets. Lessor shall have the right to review <br /> the weight tickets during GJP's normal business hours. <br />' 6. GJP shall pay advance royalties to Lessor as follows: <br />A. GJP shall pay Lessor an advance royalty of $10,000.00 on the date this lease <br />' is executed by Lessor, and an additional $5,000.00 on [he Commencenment Date. Thereafter, <br />GJP shall pay Lessor advance royalties of $10,000.00 per year, commencing on the firs[ <br />' anniversary date of the Comnmencenment Date, and continuing on each annual anniversary <br />date of the lease term thereafter (through and including the ninth anniversary date), and, if <br />GJP exercises the option to extend this lease for an additional term asset forth in Paragraph <br />r H:VdNI~G1PIPE~Karp~grav-leue wpd <br />-4- <br />