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adjoining property boundaries. However, at the expiration or earlier termination of this lease, <br /> Elam shall restore support on all exterior mined walls created by Elam and shall take such steps as <br /> may be necessary to stabilize all slopes created by Elam as result of its mining operations. <br /> DAMAGES. The State of Colorado,Division of Minerals and Geology requires that the operator of <br /> any sand and gravel facility provide agreements for restitution of damages between the operator and <br /> the owner of any significant valuable manmade structures located within 200 feet of the gravel <br /> operations. Elam Construction, Inc. does hereby certify that the Lessors will be compensated for <br /> any costs incurred resulting from damage caused by Elam located within 200 feet of the affected land <br /> owner by the Lessors. <br /> LIABILITY INSURANCE. Elam shall maintain liability insurance in total aggregate sum of at <br /> least$1,000,000. If requested by the Lessors,Elam shall deliver appropriate evidence to Lessors as <br /> proof that adequate insurance is in force and names the Lessors as additional insured. Lessors shall <br /> have the right to require that the Lessors receive notice of any termination of such insurance policies. <br /> SUBLETTING. Elam may not assign or sublease any interest in the Premises without the prior <br /> written consent of Lessors. <br /> OPTION. Elam is granted the option to extend this agreement for additional ten (10) years, after the <br /> original term has expired. In order to exercise such option Elam shall give written notice to Lessors <br /> at least ninety (90) days before the expiration of the original agreement term. If the option is <br /> exercised,each and every provision herein shall be applicable. <br /> MONTH TO MONTH. It is mutually agreed that if, after the expiration of this Agreement by <br /> lapse of time,Elam shall, with the consent of the Lessors, remain in possession of said premises and <br /> continue to pay royalties, including any minimum annual prepaid royalty, without written <br /> agreement as to such possession Elam shall be regarded as a tenant from month to month. Royalty <br /> rate shall progress from the last amount applicable hereunder consistent with and subject to all <br /> terms and provisions of this lease. In such event Lessors shall give Elam 90 days written notice to <br /> terminate this agreement and vacate the property (except as otherwise indicated herein for <br /> reclamation work). <br /> RIGHT OF FIRST REFUSAL In the event, either Lessor receives a bona fide offer to purchase the <br /> property during the term of this lease or any extension thereof, and that Lessor intends to accept the <br /> offer of purchase, Lessor shall give Elam the privilege of purchasing the premises at the price <br /> and on the terms of the offer so made. This privilege shall be given by a notice sent to Elam by <br /> certified mail or delivered in person,including a copy of the bona fide offer, requiring Elam to accept <br /> the offer in writing and to sign a suitable contract to purchase the premises within the period of <br /> thirty days (30) after the mailing of the notice or date of delivery thereof(i.e. the Right of First <br /> Refusal Period). <br /> The failure of Elam to accept the offer to purchase or sign a contract within the period provided <br /> shall nullify and void the privilege to Elam, and Lessors shall be at liberty to sell the premises to any <br /> other person, firm,or corporation at the terms provided in the bona fide offer, provided that closing is <br /> completed within 120 days of expiration of Elam's Right of First Refusal. <br /> Fetcher Vale Royalty Agreement <br /> Page 3 of 5 <br />