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Agency Permits and other permits, licenses or certificates required by LaPlata County, <br /> the State of Colorado, or the federal government. Lessee shall be responsible for <br /> obtaining all necessary permits and licenses. Lessor agrees to cooperate with Lessee in <br /> obtaining such permits. Lessee shall pay all annual permit and license fees_except those <br /> which are held in Lessor's name and shall abide by all the terms and conditions imposed <br /> by such permits and licenses. Lessee shall not engage in operations other than those <br /> allowed and provided by any permits. Otherwise Lessee shall be considered in default <br /> under this Lease. <br /> 9. tridefffnification of Lessor and*Reclamation. The Lessee-agrees to irydemnify the Lessor <br /> against any liability or claims for damages or injuries to persons or property that are <br /> claimed to have resulted from the activities or omissions of the Lessee or its agents or <br /> employees during the term of this Lease and any options to renew. Lessee is required <br /> under the terms of his permit with the State of Colorado to reclaim the land and has <br /> posted or shall post as required a reclamation bond for such purposes. Lessee shall <br /> conduct all operations in such a manner as not to unduly damage Lessor's property <br /> except to the extent required to operate the Gravel Pit. Upon termination of this <br /> agreement, Lessee shall restore the Gravel Pit in accordance with the approved <br /> reclamation plan. Lessee shall have thirty(30)days from the end of the ten year term or <br /> upon declaration of any default or termination of the Lease or the end of the option <br /> term to remove any product which has been stockpiled and shall proceed diligenty to <br /> complete all reclamation requirements. <br /> 10. liability Insurance. Lessee shall obtain and keep in full force and effect a standard <br /> policy of liability insurance for its operation of the Gravel Pit in the amount of <br /> $1,000,000. Lessor shall be furnished a copy of certificate of insurance at all times and <br /> be authorized to receive notice of cancellation of such insurance. <br /> 11. Encumbrances and Fees. During the terms of this lease, Lessor shall pay all real <br /> property taxes and assessments against the real property that may be levied against <br /> Lessor's property, but shall not be obligated to pay any such taxes,encumbrances,fees <br /> or costs necessary to protect Lessee's interest hereunder. Any such payments of real <br /> property taxes, if made by Lessee,shall be credited against amounts owed by Lessee to <br /> Lessor. In no event shall lessor have any obligation to pay taxes on sales of materials. <br /> 12. Surface Rights of Lessee. Lessee shall have the right to utilize the surface and as much <br /> of the subsurface as is necessary to properly operate the Gravel Pit. Lessee shall also <br /> have the right to use all roadways now existing on the property and the right to build <br /> such additional roads as may be necessary for its operations of the Gravel Pit. Lessee <br /> 3 <br />