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RECEPTION#: 214968, 10/01/2015 at 03:55:11 PM, 6 OF 6 PAGES, MICHELLE NAUER, <br />CLERK & RECORDER, OURAY COUNTY, CO. <br />such dore is sooner sold by Producer. The failure of Royalty Owner to respond within <br />such time shall be deemed to be an election under (2) above. No Net Smelter Royalty <br />shall be due with respect to stockpiles of ores or concentrates unless and until such ores <br />or concentrates are actually sold. <br />(j) All Net Smelter Royalty payments shall be considered final and in full satisfaction of all <br />obligations of Producer with respect thereto, unless Royalty Owner gives Producer <br />written notice describing and setting forth a specific objection to the calculation thereof <br />within one hundred twenty (120) days after receipt by Royalty Owner of the quarterly <br />statement herein provided for. If Royalty Owner objects to a particular quarterly <br />statement as herein provided, Royalty Owner shall, for a period of thirty (30) days after <br />Producer's receipt of notice of such objection, have the right, upon reasonable notice and <br />at a reasonable time, to have Producer's accounts and records relating to the calculation of <br />the Net Smelter Royalty in question audited by a certified public accountant acceptable to <br />Royalty Owner and to Producer. If such audit determines that there has been a deficiency <br />or an excess in the payment made to Royalty Owner such deficiency or excess shall be <br />resolved by adjusting the next quarterly Net Smelter Royalty payment due hereunder. <br />Royalty Owner shall pay all costs of such audit unless a deficiency of five percent or <br />more of the amount due is determined to exist. Producer shall pay the costs of such audit <br />if a deficiency of five percent or more of the amount due is determined to exist. All books <br />and records used by Producer to calculate Production Royalties due hereunder shall be <br />kept in accordance with generally accepted accounting principles. Failure on the part of <br />Royalty Owner to make claim on Producer for adjustment in such 120 day period shall <br />establish the correctness and preclude the filing of exceptions thereto or making of claims <br />for adjustment thereon. <br />