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<br />_~ _ <br />which resulted in an increase in the royalty rate, <br />whichever is later. <br />D. If for any reason the described Index shall no longer <br />be published, then the parties shall attempt to reach <br />a mutual agreement on an Index reasonably similar <br />thereto for use thereafter, and if no mutual agreement <br />can be obtained with respect thereto, then the Index <br />to be applied shall be determined by arbitration under <br />the Rules and Procedures of the American Arbitration <br />Association (Commercial). <br />E. No royalty shall be payable to Burkett unless and <br />until the product has been removed from the leased <br />premies. <br />F. Corn shall provide Burkett with a written statement as <br />to all materials removed by it during the preceding <br />month and shall make payment to Burkett of any royalty <br />due by the 25th day of each month. <br />G. Corn shall weigh all materials before removal from the <br />premises and shall preserve weight tickets thereon. <br />With respect to sand and gravel incorporated into <br />asphalt hot mix, the royalty shall apply to the full <br />weight of the asphalt hot mix. <br />H. In lieu of the $.50 per ton royalty, as to all or any <br />portion of the premises, Corn may pay a royalty of <br />$.75 per cubic yard of material. It is agreed that <br />such a royalty would be based upon a measurement of <br />the volume of material in place. This per yard royal- <br />ty shall be subject to the same increase provided <br />above, and payment shall be made as the material.is <br />actually removed from the premises, with a final <br />adjustment to be calculated when the mining is <br />completed. <br />I. It is agreed that Corn anticipates using adjoining <br />property owned by Robert Latham and John H. Latham to <br />crush and stockpile. materials mined in connection with <br />this Lease. Corn shall use due diligence in segre- <br />gating materials mined from each of the properties, <br />but its determination as to the source of stockpiled <br />materials shall be conclusive upon the Lessee. For <br />purposes of royalty payments, materials shall not be <br />deemed to be "removed from the premises" until they <br />are removed from both Lessor's and the Lathams' <br />properties. <br />6. On the effective date of the Lease, Corn shall pay to <br />Burkett a $1,000.00 advance royalty and, additionally, shall pay <br />a $1,000.00 ~dvancc royalty to iurkect on each anniversary date <br />of the lease term, and on the beginning date of each extension <br />of the lease term for which Corn may exercise its option. The <br />advance royalty paid in each year shall be offset only against <br />royalties which shall accrue and be payable to Burkett for sand <br />and gravel removed from the premises in the twelve months for <br />which payment is made. If the commercial gravel shall be mined <br />out prior to the end of the base term, Corn may give written <br />- 3 - <br />