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26. BOND-- Lessee shall execute a bond (or other sureties as may be approved by Lessor) at the time this
<br /> Lease is executed by the Parties in an amount fixed by Lessor. The bond shall guarantee performance
<br /> of this Lease by Lessee, which includes, but is not limited to, security for payment for damages caused
<br /> by Lessee's or Lessee's agent's operations on said lands. The bond shalt consist of cash, Letter of
<br /> credit, or other sureties as may be approved by the Lessor. However, if the bond is other than cash,
<br /> the bond must be in a form that will guarantee payment in cash to the Lessor upon receipt by any bank
<br /> or insurance company of written demand by the Lessor, without further condition. The Lessor shall
<br /> return the bond to the Lessee if and when Lessee has fully complied with the terms of this Lease;
<br /> however, Lessor may require such bond to be held in full force and effect for one year after cessation
<br /> of operations. The Lessee is aware and understands that certain covenants and agreements relating
<br /> to surface reclamation may require additional time beyond the Term, and agrees to keep this bond in
<br /> place until all agreements related to surface reclamation have been satisfied by inspection and
<br /> approved by the Lessor's staff or their designee. In the Lessor's discretion, the Lessor may draw upon
<br /> the bond after Lessee has failed to perform its obligations under the Lease beyond the stated cure
<br /> periods provided in the Lease. Lessor reserves the right to grant relief from the foregoing bond
<br /> requirements.This requirement may be waived in favor of the requirements of Division of Reclamation,
<br /> Mining and Safety.
<br /> 27. GOVERNMENTAL IMMUNITY -- Liability for claims or injuries to persons or property arising from the
<br /> negligence of the State of Colorado, its departments, institutions, agencies, boards, officials, and
<br /> employees is controlled and limited by the provisions of the Governmental Immunity Act, C.R.S. §24-10-
<br /> 101 et seq., and the risk management statues, C.R.S. § 24-30-1501 et seq., as amended. No term or
<br /> condition of this Lease will be construed or interpreted as a waiver, express or implied, of any of the
<br /> immunities, rights, benefits, protections, or other provisions, of the Governmental Immunity Act as
<br /> applicable now or hereafter amended.
<br /> 28. INDEMNIFICATION-- Lessee assumes all liability arising from the use, occupation or control of the Leased
<br /> Premises by Lessee under this Lease. This assumption includes, but is not limited to, liability for all
<br /> personal injuries (including death) and environmental and property damage and destruction. Lessee
<br /> agrees to defend, indemnify and hold harmless Lessor from and against any and all liabilities, losses,
<br /> damages, liens, expenses, claims, demands, debts, obligations, fines, penalties, suits or actions,
<br /> judgments, and costs of any kind whatsoever arising from the use, occupation or control of the Leased
<br /> Premises, caused by any act, omission or neglect of Lessee, or Lessee's employees, agents, guests,
<br /> invitees, contractors or assigns. Lessee further agrees to indemnify Lessor for any costs, including costs
<br /> of suit and fees for consultants, experts, and attorneys, incurred by Lessor in terminating or canceling,
<br /> enforcing obligations or defending itself against any matter arising under this Lease caused or permitted
<br /> by lessee or Lessee's employees, agents, guests, invitees, contractors or assigns. This provision shall
<br /> survive termination, cancellation or relinquishment of this Lease and any cause of action by Lessor to
<br /> enforce it shall not be deemed to accrue until Lessor's actual discovery of said liability, claim, loss,
<br /> damage, or exposure. This indemnity is in addition to any other indemnity provided for in this Lease.
<br /> Lessee will not be responsible for any liability caused by persons granted other uses of the Leased
<br /> Premises by Lessor.
<br /> 29. INSURANCE -- Lessee, at its sole cost and expense, shall during the entire term of this Lease procure,
<br /> pay for and keep in full force and effect an occurrence based general liability insurance policy from an
<br /> insurance carrier licensed to do business in Colorado, in an amount not less than one million dollars
<br /> ($1,000,000.00) per occurrence and two million dollars ($2,000,000.00) aggregate. Lessee, at its sole
<br /> cost and expense, shall during the entire term of this Lease procure, pay for and keep in full force and
<br /> effect a property insurance policy from an insurance carrier licensed to do business in Colorado covering
<br /> all insurable improvements owned by the State Land Board located on the Leased Premises in an amount
<br /> not less than necessary to cover the replacement cost. All policies shall name Lessor as an additional
<br /> insured, shall provide that the coverage is primary and noncontributory over any other insurance
<br /> GL 112927 Revised DOL 11/2018
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