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I <br /> produced on the Leased Premises and to permit Lessor at all reasonable hours, to <br /> examine the same or to furnish copies of same to Lessor within 60 days following written <br /> request along with purchaser's support documentation. All said books and records shall <br /> be retained by Lessee and made available in Colorado to Lessor for a period of not less <br /> than 10 years. If any such examination shall reveal, or if either party shall discover any <br /> error or inaccuracy in its own or the other party's statement, payment, calculation, or <br /> determination, then proper adjustment or correction thereof shall be made as promptly <br /> as practicable thereafter, except that no adjustment or correction shall be made if more <br /> than 10 years have elapsed between the time the error or inaccuracy occurred and the <br /> discovery by either party of said error or inaccuracy; provided such error or inaccuracy <br /> was not intentional or willful. <br /> Further, Lessee shalt furnish annually a complete operations report to Lessor <br /> disclosing the number of tons and any assay collected thereof of all ores, minerals and <br /> other materials mined from the Leased Premises during the preceding year. Lessee shalt <br /> also furnish in said report geologic interpretations and recoverable reserve calculations, <br /> and maps and cross sections showing location of any mineral-bearing outcrops, drill <br /> holes, trenches, ore bodies and other prospecting and exploration activities, along with <br /> assays showing the amount of mineral contained in the ore. The records required to be <br /> maintained by Lessee and provided to Lessor upon request include logs of all strata <br /> penetrated and all geologic and hydrologic conditions encountered, and copies of in-hale <br /> surveys; this information to be collected and prepared under the supervision of a <br /> qualified geologist, geological engineer, or civil or mining engineer. Other qualified <br /> persons may collect and prepare this data, if agreed to in writing between Lessee and <br /> Lessor. Any request to keep certain information confidential should be in writing to <br /> Lessor at the time such information is submitted to Lessor, and such data may be kept <br /> confidential as consistent with State law. Lessee shall submit, if requested by Lessor, <br /> such additional reports, records or documents regarding Lessee's operation on the <br /> Leased Premises as necessary for the compliance with Lease provisions. <br /> 7. OVERRIDING ROYALTY LIMITATIONS It is agreed that this Lease or any subsequent <br /> assignment hereof shalt not be burdened with overriding royalties the aggregate of <br /> which exceeds two percent (2%) of the gross value of the minerals or ore at the first <br /> point of sale. Lessor must be notified of all overriding royalties accruing to this Lease. <br /> 8. DEVELOPMENT -- Lessee will diligently explore and develop the Leased Premises by <br /> utilizing methods of exploration commonly used in the industry, such as mapping, <br /> sampling, drilling, trenching, geophysical exploration, and laboratory analysis and will <br /> expend as a minimum annually the amounts set forth below: <br /> LEASE YEAR MIN EXPEND LEASE YEAR MIN EXPEND <br /> NA NA NA NA <br /> Indirectly related exploration and development work such as work done on adjacent <br /> properties, or design or construction of a mill will not be considered as diligent <br /> development of the Leased Premises unless approved by Lessor. <br /> Page 4 of 13 <br />