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Case 14-33427 Doc 256 Filed 12/14/15 Entered 12/14/15 15:37:17 Desc Main
<br />Document Page 16 of 17
<br />E) During the Term, Tenant shall be responsible, at Tenants sole cost and expense, for all maintenance, repairs and
<br />upkeep of the Leased Property;
<br />F) Tenant has inspected the Leased Property and is accepting the same 'as is, where is' without any representations or
<br />warranties from Owner;
<br />G) Upon reasonable advance notice to Tenant, Owner shall have the right to enter the Leased Property to make
<br />reasonable inspections or reasonably show the Leased Property to prospective buyers, mortgagees, tenants, workmen or
<br />creditors.
<br />H) Tenant shall be responsible for the payment of all charges for the use or consumption of electricity, natural gas,
<br />phone, cable TV, satellite TV, Internet service, sewer, waste water disposal and other utilities associated with Tenant's use of
<br />the Leased Property and Water Rights.
<br />1) lithe Leased Property is partially destroyed in a manner that prevents the use by the Tenant of the Leased Property in
<br />the ordinary course, and if the damages are reasonably reparable within thirty (30) days after the occurrence of the destruction,
<br />Tenant may repair the Leased Property at his sole cost, provided, however, that If the Leased Property is not so repaired by
<br />Tenant within such time, or lithe Leased Property is condemned, then Owner may terminate this Agreement upon ten (10) days'
<br />notice to Tenant;
<br />J) Owner may assign this Agreement, without Tenant's consent, provided, however, that notice of any such assignment
<br />shall be given to Tenant within ten (10) days after such assignment;
<br />K) This Agreement shall be binding on the heirs, legal representatives, successors and assigns of the respective parties;
<br />L) This Agreement may be signed upon any number of counterparts with the same effect as if the signature to any
<br />counterpart were upon the same document, and may be signed by facsimile or other electronic means;
<br />M) The provisions of this Agreement are severable, and the unenforceability of any provision shall not affect the
<br />enforceability of the other provisions;
<br />N) This Agreement may not be modified or amended except by a document signed by both parties;
<br />0) This Agreement shall be interpreted, construed and enforced according to the laws of the State of Colorado, and may
<br />be enforced in any court of competent jurisdiction in Denver, Colorado;
<br />P) Tenant consents to the personal and subject matter jurisdiction of the courts of Denver, Colorado for the purposes of
<br />enforcement of this Agreement, and further consents to service by mall; and
<br />Q) For the purpose of notice, the addresses specified below may be used by either Party, and any method of providing
<br />notice shall be sufficient.
<br />6. DEFAULT AND REMEDIES.
<br />A violation of any provision of this Agreement by Tenant, including, without limitation, a violation of any provision in section 5
<br />above, shall be an event of default. If Tenant violates the payment obligations in Sections 5(A) and (D) above, this Agreement
<br />shall terminate automatically, without further notice, and Tenant shall have no further rights under this Agreement. If Tenant
<br />violates any other provision of this Agreement, this Agreement shall terminate, and Tenant shall have no further rights
<br />hereunder, if Tenant does not cure such default within thirty (30) days after receiving written notice of the default from Owner.
<br />All remedies of the Owner for a default by Tenant shall be cumulative and not exclusive.
<br />7. EXTENSION OF OPTION PERIOD.
<br />At Tenant's written election, the Term and the Option Period may be extended for an additional 12 Months, if, prior to the end of
<br />Option Period, Tenant:
<br />a) Executes the Contract with Owner;
<br />b) Pays $3,000,000.00, nonrefundable, to Owner as an Initial payment under the Contract;
<br />c) Executes an Option Period extension agreement, In a form satisfactory to Owner;
<br />d) Executes and delivers to Owner a promissory note, In the amount of $3,500,000.00, payable, in full, on
<br />the closing date under the Contract, which shall not be a date longer than the date that Is 12 months after the
<br />expiration of the initial Option Period; and
<br />e) Continues to pay rent, and perform the other terms and conditions of the Lease during the extension of
<br />the Option Period.
<br />8. REVOCATION OF AGREEMENT.
<br />If, prior to Bankruptcy Court approval of a Contract for purchase between Owner and Tenant, Owner either (a) obtains
<br />Bankruptcy Court approval of a contract to purchase either the Lease Property, the Option Property or the entire mine, with or
<br />without the Water Rights, for a total cash purchase price that is in excess of $6,000,000, or, after dismissal of the Bankruptcy
<br />Case, Owner enters into a contract with a third party to sell the Leased Property, the Option Property or the entire mine, with or
<br />without Water Rights, for a purchase price that Is in excess of $6,000,000, then upon written notice from Owner to Tenant, this
<br />Agreement may be terminated unilaterally by Ower, without any liability of any kind of Owner to Tenant. In the event that this
<br />Agreement is terminated, Tenant shall have 3 months to vacate the Leased Property, so long as Tenant continues to comply with
<br />the lease terms of this Agreement during such 3 month period. Nothing in this Agreement shall prevent Tenant from negotiating
<br />with a new owner of the Leased Property for the right to continue using the Leased Property and the Water Rights upon terms
<br />acceptable to such new owner.
<br />IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date above written
<br />TENANT:
<br />RICHARD CIARDO
<br />W?)-.
<br />22814415
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