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4. RECLAMATION& RECLAMATION BOND. The Company is obligated by law and <br /> the terms of it's mining permit to.reclaim the mine site during and at the conclusion of mining <br /> operations. Seller, Darryl Steele, individually, and for the benefit of Company has filed the <br /> necessary financial assurances with the Colorado Department of Natural Resources, Division of <br /> Reclamation, Mining and Safety in the form of two irrevocable Letters of Credit, one issued by <br /> the Yampa Valley Bank in the amount of$154,405.00 and one issued by the Bank of Colorado <br /> in the amount of$43,721.00. <br /> In addition to the considerations outlined in paragraph 2 above, Purchasers shall <br /> substitute sufficient financial assurances with the Division of Reclamation, Mining and Safety to <br /> obtain the release of the foregoing Letters of Credit. Additionally, upon Closing of this <br /> transaction, Purchasers shall release Sellers, individually, and as former shareholders, directors <br /> and officers of the Company from further obligation to reclaim the property or post additional <br /> financial assurances with the Division of Reclamation,Mining and Safety. <br /> 5. EXISTING CLAIMS AND ENCUMBRANCES. Company previously leased the <br /> limestone and gravel pits owned by Company to Maybell Enterprises, Inc., which lease has been <br /> terminated as a result of Maybell Enterprises' failure to pay rent. <br /> The following liens have been filed alleging that certain debts of Maybell Enterprises <br /> have not been paid: <br /> Claimant Claim Amount- Recording Information <br /> a. Honnen Equipment Co. $60,337.02 June 3,2003 at Reception No.20132023 <br /> of the Moffat County, Colorado records <br /> b. Wagner Equipment $30,296. July 24,2013 at Reception No. 20f32748 of <br /> the Moffat County, Colorado records <br /> C. XField Services,LLC $7,031.28. June 11, 2013 at Reception No. 20132186 of <br /> the Moffat County, Colorado records <br /> Claimants' Honnen Equipment Co. and Wagner Equipment have sued Company and others <br /> seeking judgment to foreclose their liens and further seeking judgment against Company for <br /> unjust enrichment. Company has and will continue to defend itself against these claims until <br /> Closing, all at the expense of Sellers herein. Moreover, from and after Closing, Sellers will pay <br /> all costs of defense, including attorney fees, as well as any adverse judgment assessed or entered <br /> against Company or Sellers and will indemnify and agree to defend Buyers and Company and <br /> hold each harmless from any costs incurred in the ongoing defense and satisfaction, if required, <br /> SPA Anson TCV Clean 052814 3 <br />