2018-02-22_GENERAL DOCUMENTS - M1999042

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In 1995, Dr. Bruce Collins prepared a report concerning the minerals that were in the White Banks Mine. The report states that the mine contains calcium sulfate, quartzite and black marble. The White Banks Claims also contain alabaster and gypsum. (See Exhibit 213). In 1997, Mr. Congdon created the children's 5% interest in the White Banks Claims. Because the children were minors, their interests were held in a trust managed by their maternal grandfather, James Otis, Jr. In 2000, Ms. Skinner and James Otis, Jr. sued Mr. Congdon and his company, Avalanche Creek Marble & Alabaster, in an effort to defend the children's interests against Congdon's creditors and to recover monies owed to Skinner. See Skinner v. Avalanche Creek Marble & Alabaster, et al, Case No. 00-CV-141 (Colo. Dist. Ct., Pitkin County). In an effort to salvage the Original While Banks Claims from a forced sale, on December 31, 2002, Congdon, Skinner and James Otis, Jr., entered into the "Formation Agreement Regarding White Banks, Inc." Under this agreement, a new company was formed called White Banks, Inc. for the purpose of leasing and developing the White Banks Claims. Mr. Congdon was to be a 90% owner of White Banks, Inc. and Ms. Skinner was to own a 10% interest. (See Exhibit 8). Under the Agreement, Ms. Skinner agreed to invest up to $250,000 in the mine and in exchange, their children would receive an additional 40% in the White Banks Claims so the children would then have a combined 50% interest in the mine. (See Exhibit 8). Between 2003 and 2004, Ms. Skinner invested a total of $382,000 in the mine under this Agreement. (See Exhibit 23).' The money was used to build infrastructure at the mine including, installing water, 1 Mr.Congdon was involved in a bankruptcy proceeding from 2003 through June of 2005. Mr. Congdon was still working the mine during this period of time. 4