2012-11-28_REVISION - M2007007 (3)

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2011 -10 -25 1516 ALL RITE 7198451024 » 719 275 8897 P 3/4 The Company desires to extract or purchase aggregate for cement and road bass located on the above described lard. Royalty fees will be paid at the following rate; Aggregate products removed at $1,00 per ton for the first five years, Then at,____,_, for the next No years. a. the Company shall pay to Owner a "sales Royalty" calculated from a "Base Royalty" at the rate of one dollar ($1.00) per Net Uies Ton, within twenty (20) days after the close of each calendar month, b, The Company shall keep and maintain adequate and accurate records of the quantities of Materials mined and sold. The Sales Royalty payments shall be accompanied by a monthly statement with the royalty calculation that Includes an accounting of the tons of Materials mined from the property and sold or deemed sold. Owner shell have the right at all reasonable times during business hours and upon reasonable prior notice to examine such records of the Company at the oMc e4 of the Company and to verify the quantities of Material removed and sold, and the accuracy of the scales used to weigh the Materials. ' This lease agreement with option to buy materials shall commence on the day of this agreement and remain in force for a term of ten (10) years, with the option to renew until the material Is mined out. Except the Owners may cancel the provisions of the lease agreement for any reason at any time provided thirty (30) days notice Is given. The Company agrees to provide a mining plan consistent with the future development criteria of the Owner mutually acceptable to both parties, The Company shall have the right of ingress and egress to and from the subject premises and to erect any temporary structures, such as screening, crushl% and /or asphalt or concrete plants; to stockpile material in any area of suf ant size; and to employ any reasonable methods for the removal as said material, The Company shall also have the right of ingress and egress for the purpose of reclamation. The Company agrees to provide liability insurance and shall be responsible for all of Its operations related to mining of the property. The Company agrees to provide proof of such liability Insurance to the Owees. The Owners will be hell harmless for acts of the Company and its employees or i subcontractors related to operations on the property. Payments for materials removed from the property will be made to the Owners in a tamely fashion.