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The royalty will be adjusted upward in the event FCM exercises its renewal options for <br />the October 1, 2006 through September 30, 2010 term and the October 1, 2010 through <br />September 30, 2014 term. The ro al paid to Cugnini under the terms of this Lease <br />Agreement shall not be less tharper ton. The royalty shall be adjusted upward <br />utilizing the ppi index for the US ureau of Labor Statistics for non-metallic mineral <br />products -crushed and broken stone wpu13210121 and shall be calculated as follows: <br />For the October 1, 2006 through September 30, 2010 term: <br />Divide the final March 2006 ppi by the final October 2002 ppi and multiply that <br />number b~ <br />For the October 1, 2010 through September 30, 2014 term: <br />Divide the final March 2010 ppi by the final October 2006 ppi and multiply that <br />number by the royalty rate utilized for the October 1, 2006 through September <br />30, 2010 term. <br />6.02 <br />a minimum royalty payment to Cugnini <br />o for each year this Lease <br />Agreement is in effect. The initi~ aymen or the year of October 1, 2002 <br />through September 30, 2003 sha e 3 e upon full execution of this Lease Agreement <br />by all parties. For each successive year this Lease Agreement is in effect, FCM shall <br />make an initia~payment for each successive year on or before October 15 <br />of each applica le year beginning on or before October 15, 2003). <br />minimum payment made by FCM to Cugnini each year is <br />an advance on <br />Agreement, including the two renewal terms, and shall be credited against the actual <br />ro alties accrued and due to Cu nini throw h Se tember 30 2014. Royalty payments <br />in addition to the annua ayments due to Cugnini are not due from FCM <br />unless and until more matena s ave been removed from the Gravel Pit by FCM than <br />have been paid for by FCM through th~per year annual payments. Any <br />monthly royalty payment due Cugnini s a e paid by FCM within thirty (30) days <br />following the close of the applicable calendar month for the sale of sand, gravel or other <br />rock related products. Each such remittance of royalty shall be accompanied by a short <br />summary statement of the weighed amount and type of products sold. At the time this <br />Lease Agreement terminates pursuant to the terms stated herein, and in the event the <br />total of all annual payments received by Cugnini exceeds the royalties due Cugnini <br />under the terms stated herein, Cugnini may keep the overpayment. <br />Cugnini Pit Lcau <br />10/29/02 <br />Page 4 of 15 <br />