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THAT EXCEPT FOR (A) THE REPRESENTATIONS AND WARRANTIES SET FORTH IN <br /> THIS AGREEMENT AND IN THE DEEDS AND (B) CLAIMS FOR FRAUD OR <br /> INTENTIONAL MISREPRESENTATION, THE TRANSFERRED REAL PROPERTY WILL <br /> BE CONVEYED TO BUYER IN AN "AS IS, WHERE IS" CONDITION, WITH ALL <br /> FAULTS AND THAT ALL OTHER REPRESENTATIONS AND WARRANTIES WITH <br /> REGARDS TO THE TRANSFERRED REAL PROPERTY ARE HEREBY DISCLAIMED. <br /> SELLER AGREES THAT IT WILL RELY EXCLUSIVELY ON ITS OWN TESTS STUDIED <br /> AND REPORTS WHEN DETERMINING WHETHER TO EXERCISE THE OPTION AND <br /> CLOSE. <br /> ARTICLE IX. <br /> LEASE TERMS <br /> 9.1 Lease. From the Execution Date through the expiration of the Option Term (as it <br /> may be extended in accordance with the terms of this Agreement), Seller hereby exclusively <br /> leases to Buyer the Jemadoj in Mine Property. <br /> 9.2 Use and Occupancy. During the Option Term, Buyer shall have exclusive use and <br /> possession of the Jemadojin Mine Property and be entitled to operate and utilize the Jemadojin <br /> Mine as an active sand mine, provided that Buyer and Seller can obtain any needed additional <br /> permits required to operate a mine, including obtaining or reactivating the Special Use Permit <br /> from El Paso County. Buyer shall not be permitted to mine any minerals other than sand from <br /> the Jemadojin Mine. <br /> 9.3 Consideration and Rent. In consideration of the First Option Payment, Buyer <br /> shall not be required to pay any rent or other royalty to Seller for the removal of 100,000 tons of <br /> sand as provided for herein. If Buyer desires to mine and remove from the Jemadojin Mine sand <br /> in excess of 100,000 tons, Buyer shall be required to pay Seller an amount equal toper <br /> additional ton of sand removed in excess of 100,000 tons. <br /> 9.4 Records and Reporting. Buyer agrees to maintain accurate records of all sand <br /> removed from the Jemadojin Mine and to provide a detailed report regarding its mining <br /> activities, including the quantity of sand removed and the disposition of that sand, including any <br /> sales prices therefor and uses made of the sand,on at least a quarterly basis. <br /> 9.5 Insurance. During the Option Term, Buyer agrees to maintain in full force and <br /> effect,with insurance companies licensed to do business and approved by Seller in its reasonable <br /> discretion, insurance in the following types and amounts: (1) property damage insurance <br /> coverage in an amount equal to the total replacement cost of Buyer's property to be placed and <br /> kept in the leased premises, and liability insurance coverage during the Option Term in an <br /> amount not less than $5,000,000.00, and (2) workmen's compensation insurance as required by <br /> Law on all of Buyer's employees, contractors, invitees, subcontractors and other persons who <br /> may be working in or around the leased premises. All policies of insurance which Buyer is <br /> required to provide under subparagraph (1) above shall name Seller and the Individuals as <br /> additional named insureds and shall provide that Seller shall be given not less than thirty (30) <br /> days' written notice prior to any cancellation,modification or termination of the policy. Prior to <br /> the commencement of any mining, Buyer shall provide Seller with a certificate evidencing that <br /> 33 <br />