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4. OBLIGATIONS OF EACH PARTY UNDER THE TERMS OF THIS CONTRACT. <br /> a. The following shall be the obligation of the Lessor: <br /> i. The Lessor shall be responsible to provide the appropriate mining <br /> permit. <br /> ii. The Lessor shall be responsible to provide the appropriate <br /> reclamation bonding. <br /> iii. The Lessor shall be responsible to provide seed and planting of <br /> grass associated with reclamation of the mining site. <br /> b. The following shall be the obligation of the Operator: <br /> i. The Operator shall provide all labor, materials, and equipment to <br /> properly mine the property set forth herein. <br /> ii. The Operator shall retain onsite existing topsoil for future <br /> reclamation or provide such. <br /> iii. The Operator shall comply with all other local and/or State Health <br /> Department regulations for operation of a mining permit. <br /> iv. The Operator shall be obligated to mine the area in a safe and <br /> appropriate manner according to all local, state and Federal <br /> regulations. <br /> v. The Operator shall be responsible to properly slope and grade the <br /> used mining sites as provided in the application for mining permit <br /> as the mining progresses. Sloping and grade must have final <br /> Lessor approval. <br /> 5. COMPENSATION. The Operator hereby agrees to pay the Lessor $ 1per ton <br /> for all rock removed from the site. Payments shall be made by the 20th of each <br /> month following the month the material is removed from the mining site. <br /> 6. INDEMNIFICATION The Operator shall indemnify and hold harmless the <br /> Lessor from and against any and all liability, loss, damage, expense, fine or <br /> penalty, including but not limited to reasonable attorney's fees, caused by the <br /> negligence of the Operator in connection with the operations on the property <br /> being mined. The Operator shall further indemnify and hold harmless the Lessor <br /> against any and all claims or actions based upon or arising out of damage, injury <br /> or death to persons or property caused by the negligence of the Operator on the <br /> property being mined, or based upon a violation by the Operator. This <br /> indemnification and hold harmless includes any damage caused by the <br /> negligence of the Operator to any structures or facilities located on the mining <br /> site or adjacent to the mining site. Operator shall not be obligated to indemnify <br /> and hold harmless the Lessor from and against any and all liability, loss, <br /> damage, expense, fine, penalty or violation of any local, State or Federal statute, <br /> 2 <br />