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tons of Materials mined from the Property and sold or deemed sold pursuant to Paragraph 5.C. for <br />the month. Lessor shall have the right at all reasonable times during business hours and upon <br />reasonable prior notice to examine such records of the Company at the offices of the Company, and <br />to verify the quantities of Materials removed, and sold and the accuracy of the scales used to weigh <br />the Materials through testing and observation. <br />D. Import Fee. Subject to Paragraph 3.E, if the Company chooses to import <br />aggregate Materials from other sources or to import Recycle Material, the Company shall pay a fee <br />of per ton of aggregate Materials or Recycle Material imported, processed and <br />sold or used in the Company's Plant ("Import Fee"). Any Import Fee shall become payable upon <br />sale or other removal of the imported Materials or Recycle Material from the Property and payment <br />of the Import Fee shall then be due at the same time as payment of Sales Royalty would be due under <br />Paragraph 3.A. The rate stated in this Paragraph D for the Import Fee shall be subject to adjustment <br />on each Adjustment Date in the same manner as is set forth in Paragraph 3.B. for Sales Royalty. <br />The Import Fee shall be subject to the same payment records requirements set forth inParagraph 3.C. <br />The: Company shall not stockpile or store more than 60,000 tons of imported unprocessed material <br />on the Property at any time without Lessor's prior written consent. <br />E. Materials Not Subject to Import Fee. The Company shall not be required to <br />pay an Import Fee on Waste Material returned to the Property if a Sand and Gravel Fee was <br />previously paid on the Waste Material. <br />4. Annual Payments. <br />A. Bonus/Rental, The initial 8? paid to Lessor at the time this Lease <br />becomes effective shall be deemed "signing bonus" and shall apply to maintain the Lease in effect <br />for the first Lease Year, commencing on the date this Lease becomes effective. Provided the <br />Company has complied with its diligence obligations under Paragraph 7.A.i, if, at the end of the first: <br />Lease Year, the Company has not acquired all necessary Permits that allow the Company to begin <br />production and sale of Materials, the Company may either continue the Lease in force and effect for <br />a second Lease Year by paying Lessor an additional sure of $JIM at least 30 days prior to the end <br />of the first Lease Year, or may terminate the Lease without obligation to make any further annual <br />payments. If all necessary Permits are not acquired by the end of the second Lease Year the <br />Company may continue the Lease in erect for a third Lease Year and, if necessary, for a fourth <br />Lease Year, by payment of the sum ofd per Lease Year as rent (plus the Advance.Minimum <br />Royalty described in Paragraph 4.C.i, below) at least 30 days prior to the end of the applicable Lease <br />Year for which the extension is sought, or the Company may instead terminate the Lease without <br />obligation to make any {farther annual payments. <br />B. The signing bonus and any annual ? payment to extend the Term ofthe <br />Lease under Paragraph 4.A, above, if required Permits have not been obtained are considered non- <br />refundable and are not considered as Advance Minimum Royalty. Additional annual payments under <br />Paragraph 4.C.i shall be considered Advance Minimum Royalty. <br />-3-