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VL Covenants of Lessee <br /> 6.1 l..essee Covenants and.A.g <br /> (a)It shall conduct operations in a miner-ldce manner in accordance with <br /> good industry practice and applicable laws and regulations.All work <br /> shall at all tunes be unclear the sole control of and done in accordance <br /> with the exercise of the discretion and judgment of Lessee as to time, <br /> place,method and manner of performance. Accordingly,as to such work <br /> and the responsibility for it as provided in Paragraph 6. 1 (e)following <br /> there is not deemed by Lessor and Lessee to be a condractaal relationship <br /> between them as to the manner of performance,direction,and <br /> supervision of such work since such matters,,by the Lease terms,are to <br /> be determined in the discretion of the Lessee subject to applicable rules <br /> of State and Federal regulatory agwe i,es. <br /> (b)Lessee shall post and keep posted on the Mining Properties a notice <br /> that it holds possession pursuant to this Mining Lease and that it is <br /> solely responsible for the payment of all obligations incurred by its <br /> operations. <br /> t <br /> (c)Lessee shall pay when due all claims for work done,services <br /> rendered,or materials fiunished to the Mining Properties,except those <br /> which Lessee disputes in good faith. <br /> (d)Lessee shall keep the Mining Properties free and clear from all Items <br /> and encumbrances,but may in good:faith contest the validity or amount <br /> of any lien which may be levied against the Mining Properties. <br /> (e)Lessee agrees to indemnify and hold the Lessor harmless from any <br /> and all claims,demands and liabilities arising out of or in connection <br /> with the operations or activities of the Lessee on the Mining Properties <br /> from and after the effective date. The Lessee assumes full and sole <br /> responsi"bility for the operation and direction of the work done <br /> hereunder. No employee or agent of Lessee shall under any <br /> circumstances be deemed an employee or agent of the Lessor. <br /> (f)Lessee agrees to maintain at all times WorkmeWs Compensation <br /> Insurance pursuant to the laws of Colorado and shall comply with state <br /> 8 <br />