Laserfiche WebLink
<br /> <br />4. This Lease shall extend for a period of five (5) years <br />from and after the effective date, as defined in Paragraph 3 <br />above. Thereafter, Corn shall have the right and option to <br />extend this Lease Agreement from year to year for a total of <br />fifteen (15) additional years. The option to extend must be <br />exercised by written notice to Burkett not less than thirty (30) <br />days prior to the expiration of the original five-year term and <br />thereafter, not less than thirty days prior to the expiration of <br />any extension. <br />5. In consideration of this Lease Agreement, and each and <br />every covenant of Burkett herein contained, Corn agrees to pay <br />to Burkett as follows: <br />A. A production royalty shall be paid to Burkett at the <br />rate of $.50 per ton of sand and gravel mined and <br />removed from the premises, subject to increase as <br />provided hereinafter. <br />B. The royalty to be paid to Burkett shall be subject to <br />increase each year in accordance with the percent <br />change in the Consumer Price Index (1967-100) - All <br />Urhan Consumers for ': he Area cf Denver, Coloradr,. as <br />published by the United States Department of Labor. <br />On each anniversary date of the beginning of the lease <br />term, the most current available Index shall be con- <br />sulted and the percent change from one year prior <br />thereto as revealed therein shall be initially applied <br />to the $.50 per ton and thereafter to the new price <br />per ton currently being paid. The new price per ton <br />shall then control until the next anniversary date. <br />For example, if the "percent change from one year ago" <br />as it is available in the most recent publication on <br />the first anniversary date reports an increase of <br />10.08, the price being paid prior to that anniversary <br />date shall then increase for the next 12 months by <br />10.08 (.10 x .50 + .50 = .55). Subsequently, on the <br />next anniversary date, the royalty for the next ensu- <br />ing year shall be determined by the percent increase <br />revealed in the most recent publication available on <br />the second anniversary date and applied to the figure <br />$.55. The royalty shall be recomputed in the same <br />manner on each anniversary date. <br />C. The parties agree that the Index may not be used to <br />cause a decrease in the price per ton at any time. If <br />in fact the application of such Index would result in <br />a decrease in the royalty rate, then the rate shall <br />continue at the same level for the ensuing year and, <br />thereafter, any Future rate of increases to be caused <br />by an increase in the Index shall be calculated by <br />determining the percentage of increase in the Index <br />applicable to the year for which the calculation is <br />being made as compared to either the Index applicable <br />on the effective date or the last anniversary date <br />- 2 - <br />