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Blue Pit 112 Permit Amendment <br />ZA.. <br />and culverts necessary to transport water to its operations, and any relocation of ditches <br />Y r that is required by the mining operations will be done at the expense of Lessee and at a <br />time to avoid interruption of irrigation to other portions of Lessor's property not included <br />i herein. The parties acknowledge that from time to time it maybe necessary to relocate the <br />"Spring Ditch" which is the "Geigel Tunnel Ditch & Pipeline and McCarthy Waste Water <br />Ditch & Upper Extension (Application Water Court 91CW066). In the event new pipe is <br />laid or pumps installed, at the end of the termination of the Lease, such property shall <br />remain, in place and become the property of Lessor. Any such changes /relocations to <br />eitirer the Basin Ditch or the Spring Ditch shall not be made without notice to, and express <br />consent from, the Lessor. All such changes /relocafions, shall be at the sole expense of <br />Lessee. Lessee shall not make water calls on upstream use without the express <br />permission of Lessor. <br />j <br />I 16. ASSIGNMENT. <br />a. Lessee shall have the right to assign this Lease to a successor operator <br />only upon prior written approval of Lessor.and provided thatsuch successorshall agree to <br />I be bound by and comply with any and all of the terms and conditions of this Lease, the <br />j I Special Use Permit, the Mined Land Reclamation Permit above described, and. any other <br />1 permits that may be required from time to time. Lessee shall also have the right to <br />• I • sublease hereunder, subject to the same written approval and condition of compliance, <br />'• b. The sale, transfer, assignment orotherconveyance or agreementto do so <br />(including, but not limited to any involuntary transfer by reason of the death of Lessee's <br />l shareholder(s) or by bankruptcy of Lessee or judgment or execution) (whether legal or <br />equitable) of any of the capita[ stock of Lessee shall be an assignment of the.Lease, which <br />shall require Lessor's approval as stated above. Lessee states that as of the executien of <br />r this Lease, William M. Roberts is owner of 100 percent of the issued.and outstanding <br />shares of the capital stock of lessee. <br />+� {C. lessor has entered into this long -term Lease, relying upon the business <br />acumen and honesty of William M. Roberts, and for no other reason. Lessor's approval as <br />stated in paragraphs 16.a or 16,b is discretionary with Lessor, but such consent shall not <br />be unreasonably withheld, conditioned nor delayed, provided, any assignee or sublessee is <br />' a reputable and experienced mining and/or concrete batch plant operator. <br />! d. MINIMUM ROYALTY IN EVENT OF ASSIGNMENT. <br />If Lessee shall assign this Lease as provided in paragraphs 16.a or 16 :b herein, then the <br />successor operator shall pay to Lessor an annual minimum royalty payable In advance of <br />each year of the Lease term regard less of production or activity on the leased premises. <br />Such minimum royalty shall be sufficient to keep and maintain this Lease in full farce and <br />effect in the event of non - production or production insufficient to <br />generate a per-ton royalty <br />i equal to the minimum royalty. The minimum royalty shall not be in addition to the per -tort <br />l 1 Page 5 of 5 <br />Blue Pit May 2014 N -10 <br />