Common use of Royalty Schedule Clause in Contracts

Royalty Schedule. Lessee shall pay Lessor a 20% Net Profits Royalty, as defined in Exhibit B, on all development and production ores and minerals extracted, milled and sold from the leased premises in accordance with Exhibit B which is attached hereto and by this reference is made a part of this Lease. The Net Profits Royalty shall be increased above twenty percent (20%), or decreased to not less than twenty percent (20%), in accordance with the quarterly average price of silver, as shown on the schedule which follows: Sliding Scale Royalty Payments ------------------------------------------- Net Profit Royalty Quarterly Average Percentage Silver Price ------------------ ----------------- 20% less than $11.00 21% greater than $11.00 22% greater than $11.25