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M• I <br /> 10. OVERRIDING ROYALTY LIMITATIONS -- This Lease or any subsequent assignment hereof shall not be <br /> burdened with overriding royalties the aggregate of which exceeds two percent (2%) of the gross value <br /> of the Minerals at the first point of sale. Lessor must be notified of all overriding royalties accruing to <br /> this Lease. <br /> 11. PENALTIES -- A penalty shall be imposed for, but not limited to, late payments, improper payments, <br /> operational deficiencies of any kind whatsoever, violations of any covenants of this Lease, or any false <br /> statements made to Lessor. Penalties shall be determined by Lessor in accordance with applicable <br /> laws and may be in the form of, but not limited to, interest, fees, fines, and/or lease cancellation. A <br /> penalty schedule shall be prepared by Lessor. Such schedule may be changed from time to time and <br /> shall be made available by Lessor to Lessee. <br /> 12. ASSIGNMENT -- Lessee may not assign this Lease in whole or part except with the written approval of <br /> Lessor. No assignment of undivided interests or retention or reservation of overriding royalties will be <br /> recognized or approved by Lessor. The effect, if any, of any such assignments or reservations will be <br /> strictly and only as between the parties thereto and outside the terms of this Lease. No dispute <br /> between parties to any assignment or reservation shall operate to relieve Lessee from or postpone <br /> performance of any terms or conditions hereof. Lessor will at all times be entitled to took solely to <br /> Lessee or its assignee shown on Lessor's books as being sole owner hereof, for the sending of all notices <br /> required by this Lease, and for the performance of all terms and conditions hereof. <br /> If assignment of a part of this Lease is approved, a new lease, designated as an assignment, will be <br /> issued to the assignee covering the lands assigned for the balance of the term of this Lease on the <br /> lease form in use at the time of assignment and limited as to term as this Lease is limited. <br /> 13. ASSIGNMENT CONSIDERATION -- Assignments, if approved by Lessor, shall be subject to payment of <br /> consideration to Lessor in the amount of ten percent (j) of the value of any consideration tendered <br /> to Lessee for the assignment. Divulgence of the value of these considerations shalt be mandatory, in <br /> affidavit form, which form shall be presented to Lessor along with the other assignment instruments in <br /> order to seek Lessor's approval for the assignment. Any attempt to withhold this information shall <br /> render this Lease null, void and nonexistent, and all monies paid to Lessor shall be forfeited to Lessor. <br /> In addition, any amounts owed to Lessor under this Lease must be paid at the time an assignment is <br /> requested. <br /> 14. WEIGHTS -- It is agreed that alt Minerals mined and taken from the Leased Premises shall be weighed <br /> and assayed and the weight and assay thereof shall be entered in due form in weight and assay records <br /> kept for such purposes by Lessee. Ton means Two Thousand (2000) pounds. One troy ounce is <br /> equivalent to 31.1034768 grams. <br /> 15. STEWARDSHIP TRUST STIPULATION -- Lessee acknowledges that the Leased Premises was placed in <br /> the Stewardship Trust as set forth in Section 10(1)(b)(I) of Article IX, of the State Constitution prior to <br /> the Effective Date of this Lease. Lessee agrees to comply with the following stipulations: <br /> a) All plans for exploration, mining, and reclamation on the Leased Premises shall be submitted to <br /> Lessor for review and approval. No exploration, mining, and reclamation activities are <br /> permitted until Lessor provides written approval for such activities. <br /> b) Only underground mining methods are permitted under this Lease. <br /> c) Total surface disturbance will not exceed one (1) acre and shall be only for the purposes <br /> Page 6 of 18 <br />