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such period, (ii) such extension of time shall not subject the Lessor or the Lessee to any <br />liability, civil or criminal, and (iii) the interest of the Lessee in this Lease or the Premises <br />shall not be jeopardized by reason thereof. <br />34. Lessee's Remedies. In the event of a default under this Lease by the <br />Lessor, the Lessee shall have the following rights and remedies, which shall be deemed to <br />be cumulative, at the Lessee's election, following notice to the Lessor: <br />a. If a final judgment of a court of competent jurisdiction has <br />been entered on such default, or if the parties so agree, to take as a credit against any <br />Royalties the amount reasonably necessary to compensate the Lessee for expenses and/or <br />damages incurred in curing the Lessor's default or breach of this Lease; <br />b. To commence proceedings against the Lessor to recover <br />damages for any default under or breach of this Lease by the Lessor. <br />35. Waiver. No waiver of any breach of any one of the conditions or <br />covenants of this Lease by the Lessor or the Lessee shall be deemed to imply or constitute <br />a waiver of any other condition or covenant of this Lease. The failure of either party to <br />insist on strict performance of any condition or covenant herein set forth, shall not <br />constitute or be construed as a waiver of the rights of either or the right thereafter to <br />enforce any other default of such condition or covenant; neither shall such failure to insist <br />upon strict performance be deemed sufficient grounds to enable either party hereto to <br />forego or subvert or otherwise disregard any other term, provision, condition or covenant <br />of this Lease. <br />36. Governing Law, Jurisdiction Venue. This Lease shall be construed <br />and enforced in accordance with the laws of the State of Colorado and each of the parties <br />hereto hereby agree that proper venue for any action between the parties shall be in Las <br />Animas County, State of Colorado. <br />37. Duty To Deal In Good Faith. The parties shall have the obligation to <br />deal with each other in good faith with respect to this Lease. <br />38. Legal Fees And Costs. In any legal proceedings brought as the result <br />of a dispute under this Lease, the substantially prevailing party, as determined by the <br />court, shall be recover its reasonable legal fees and costs from the other party. <br />39. Successors. All of the terms, conditions, covenants and provisions <br />set forth in this Lease shall inure to the benefit of and be binding upon the heirs, legal <br />representatives, successors, executors and permitted assigns of the parties. <br />40. Lease Memorandum To Be Recorded. Upon the execution and <br />delivery of this Lease, the parties shall also execute, deliver and record a written <br />Memorandum hereof. Lessee may, at Lessee's discretion, record this Lease in the records <br />of the county in which the Premises is located. <br />