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4 <br /> 7. OVERRIDING ROYALTY LIMITATIONS -- It is agreed that this lease or any <br /> subsequent assignment hereof shall not be burdened with overriding <br /> royalties the aggregate of Which exceeds two percent (2`g) of the gross <br /> value of the minerals or ore at the first point of sale. Lessor must be <br /> notified of all overriding royalties accruing to this lease. Violation <br /> of the above may subject this lease to cancellation by Lessor. <br /> 8. ASSIGNMENT -- Lessee, with the written consent of Lessor, may assign this <br /> lease as to the leasehold interest of Lessee in all or part of the lands <br /> covered hereby, not less, however, than tracts of approximately forty <br /> (40) acres, or governmental lots corresponding to a quarter-quarter <br /> section for partial assignment. For approval of such assignment Lessor <br /> may charge an assignment fee in an amount currently in effect at the time <br /> of the assignment. <br /> If an assignment of a part of this lease is approved, a new lease <br /> designated as an assignment will be issued to the assignee covering the <br /> lands assigned for the balance of the term of the base lease on the <br /> mining lease form in use at the time of assignment and limited as to term <br /> as said lease is limited. The assignor will be released and discharged <br /> from all further obligations for such lands assigned, as if the same had <br /> never been a part of this lease. <br /> No assignment or transfer of this lease will be held valid by Lessor <br /> unless made with its consent in writing and duly entered in the books or <br /> records of Lessor. <br /> Assignment Consideration -- The consideration for approval of assignment <br /> by Lessor shall be ten percent (10%) of the value of any consideration <br /> tendered to Assignor by Assignee for the assignment. Divulgence of the <br /> value of these considerations shall be mandatory, in affidavit form, <br /> which form shall be presented to Lessor along with the other assignment <br /> instruments in order to obtain Lessor's approval for the assignment. An <br /> assignment does not constitute a new lease but is a continuation of the <br /> base lease. Any attempt to withhold this information shall be construed <br /> as an attempt to defraud the State of Colorado and shall render this <br /> lease null, void, and nonexistent, and all monies paid to Lessor shall be <br /> forfeited to Lessor. In addition, the current statutory fees will be <br /> paid at the time the assignment record form is submitted. <br /> 9. AGREEMENTS OUTSIDE THE TERMS OF THIS LEASE -- No assignment of undivided <br /> interests or retention or reservation of overriding royalties will be <br /> recognized or approved by Lessor; and the effect, if any, of any such <br /> assignments or reservations will be strictly and only as between the <br /> parties thereto, and outside the terms of this lease, and no dispute <br /> between parties to any such assignment or reservation shall operate to <br /> relieve Lessee from performance of any terms or conditions hereof or to <br /> postpone the time therefor. Lessor will and shall at all times be <br /> entitled to look solely to Lessee or its assignee shown on Lessor's <br /> books as being the sole owner hereof, and for the sending of all notices <br /> required by this lease and for the performance of all terms and <br /> conditions hereof. <br /> Although not binding on Lessor, all instruments of every kind and nature <br /> whatsoever, including but not limited to sublease agreements and <br /> operating agreements, affecting this lease shall be filed in the records <br /> of the Mineral Department of Lessor. Upon request, such instruments <br /> furnished may be kept confidential as consistent within the law. <br /> 10. REPORTS -- After operations begin, it is agreed that on or before the <br /> last day of each month during the term of this lease Lessee shall submit <br /> a sworn, verified, written report to Lessor, in which report shall be <br /> entered and set down the exact amount in weight of all products and the <br /> assay thereof mined and removed from said leased premises during the <br /> preceding calendar month, which report shall show the amount of work <br /> performed during the preceding calendar month. Lessee shall also, <br /> annually during the term of this lease, submit a sworn, verified, written <br /> statement to Lessor disclosing the number of tons and the assay thereof <br /> of all ores, minerals and other materials mined from the premises during <br /> the preceding year. Such annual statements may coincide with Lessee's <br /> fiscal years or with official calendar years. Further, Lessee shall <br /> furnish a map annually showing all workings, depth, thicknesses and shape <br /> of any ore body with location of same tied to a corner established by <br /> t <br />