operations on the Leased Premises. Lessee also agrees to procure, maintain in effect, and pay the
<br /> premium on a policy or policies of Workmen's Compensation Insurance insuring Lessee's
<br /> employees in the amounts required by law. Lessee shall supply current certificates evidencing
<br /> such insurance to Lessor, and shall include Lessor as an additional named insured under the
<br /> commercial general liability coverage.
<br /> 14. Lessee's Covenants and Warranties.
<br /> a. Lessee shall conduct its operations on the Property in a prudent and workmanlike
<br /> manner in accordance with good and accepted mining and business practices and in compliance
<br /> with this Lease, the Permits, and all applicable federal, state and local laws, rules and
<br /> regulations, including without limitation those relating to safety, health and the environment.
<br /> b. Lessee shall keep the Leased Premises free and clear of liens, charges, claims or
<br /> demands arising from Lessee's operations hereunder and shall promptly pay for all labor
<br /> performed on the Leased Premises and for all supplies, materials, and equipment used or placed
<br /> on the Leased Premises. Lessee may contest in good faith any lien; provided that, Lessee shall
<br /> not allow title to the Leased Premises or any portion of it to be lost and subject to the lien
<br /> provisions in this Lease.
<br /> 15. Indemnification.
<br /> a. By Lessee. Lessee shall defend, indemnify and hold harmless Lessor from and
<br /> against any and all claims, demands, judgments, and liability by or to any and all third parties
<br /> resulting from the acts or omissions of Lessee or Lessee's agents, representatives, officers,
<br /> employees, and contractors in, on or about the Leased Premises.
<br /> b. By Lessor. Lessor shall defend, indemnify and hold harmless Lessee from and
<br /> against any and all claims, demands, judgments, and liability by or to any and all third parties
<br /> resulting from the acts or omissions of Lessor or Lessor's agents, representatives, officers,
<br /> employees, and contractors in, on or about the Leased Premises.
<br /> C. Scope of Indemnifications. The indemnification obligations set forth in the
<br /> foregoing paragraphs of this Section shall include the full amount of all judgments and
<br /> reasonable expenses, costs and fees of every kind and nature incurred by the indemnified party
<br /> arising out of any indemnified claims, and costs of suit to defend such claims or enforce this
<br /> indemnity(including, without limitation, reasonable attorney's fees and litigation and other legal
<br /> costs, accounting, consulting, engineering fees and other expenses). The indemnity provisions
<br /> set forth in this Lease shall apply to amounts paid in settlement of a claim by an indemnified
<br /> party only if such settlement is approved by the indemnifying party, which approval shall not be
<br /> unreasonably withheld; and if not approved, the indemnifying party shall undertake defense of
<br /> such actions using counsel reasonably acceptable to the indemnified party.
<br /> 16. Taxes. During the term of this Lease, Lessee shall pay when due all general, ad valorem
<br /> property taxes assessed on Lessee's operations on the Leased Premises and all personal property
<br /> taxes assessed against machinery, tools, equipment, supplies,buildings, improvements, pipelines,
<br /> stockpiles of materials, and other property and/or fixtures placed by Lessee on the Leased
<br /> Premises. Lessor shall pay all other real property taxes on Lessor's Property and on any
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