2004-01-16_REVISION - M1986061 - Laserfiche WebLink

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6.03 Weighed Materials. All aggregate mined, removed and sold by FCM from the Gravel Pit, including future expansion area, shall be weighed and sold on a tonnage basis and not by bulk volume. Before FCM removes any aggregate from the Gravel Pit, FCM agrees to install and maintain truck scales at the Gravel Pit in accordance with applicable state and federal standards. 6.04 Production and Other Taxes. FCM shall be responsible for any taxes on production, equipment and property owned by FCM or undertaken by FCM or undertaken by FCM pursuant to this Lease Agreement. 6.05. Audits. Cugnini shall have the right to audit FCM's records with respect to the removal of gravel products from the Gravel Pit, and future expansion area. Any such audit shall be at Cugnini's sole expense and shall be conducted by a certified accountant selected by Cugnini. If such an audit is conducted and a report prepared by the auditor which establishes that an understatement of royalty has occurred and additional royalty is due to Cugnini in excess of 5% of the royalty paid, the reasonable costs incurred by Cugnini associated with the audit shall be paid by FCM. FCM shall pay any additional royalty payment due to Cugnini within 45 days after receipt of the auditor's report. Section 7. GRAVEL FOR CUGNINI'S USE 7.01 Gravel for Cugnini. After FGM establishes mining and extraction operations at the Gravel Pit, and so long as FCM is producing gravel and operating a crusher at the Gravel Pit, FCM agrees to crush up to 2000 tons of base gravel on an annual basis for use by Cugnini on the Cugnini Properly. Said gravel shall be provided at no cost to Cugnini and stockpiled in a separate and designated location on the Cugnini Property. 7.02 Cugnini access to scales. During the term of this Lease Agreement, Cugnini shall have access and the right to use the scales being utilized at the Gravel Pit. 7.03 Current Stockoiles. The stockpiles of gravel and associated rock products currently located on the Cugnini Property (left by LaFarge) may be sold or disposed of by Cugnini as Cugnini chooses. The sale or disposition of such stockpiled materials by Cugnini shall not be considered interterence with, nor a breach of, this Lease Agreement. To ensure that FCM's operations are not adversely affected by the stockpiled materials, FCM has the right, but not the obligation, to move the stockpiles from their current locations to an out-of-the-way location on the Cugnini Property, said out-of-the-way location to be selected jointly by Cugnini and FCM. If the stockpiled Cugnini Pit Lease 10119/02 Page S of IS