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roads and/or access roads which do not directly benefit the Leased Premises will be subject to a <br /> separate road access permit and approval of Lessor. <br /> 6. REPORTS AND RECORDS -- After operations begin, it is agreed that on or before the last day of each <br /> month during the term of this lease Lessee shall submit a sworn, verified, written report to Lessor, in <br /> which report shall be entered and set down the exact amount in weight of all products and the assay <br /> thereof mined and removed from said Leased Premises during the preceding calendar month. Lessee <br /> agrees to keep and to have in possession complete and accurate books and records showing the <br /> production and disposition of any and all substances produced on the Leased Premises and to permit <br /> Lessor at all reasonable hours, to examine the same or to furnish copies of same to Lessor within 60 <br /> days following written request along with purchaser's support documentation. All said books and <br /> records shall 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 shalt discover any error or <br /> inaccuracy in its own or the other party's statement, payment, calculation, or determination, then <br /> proper adjustment or correction thereof shalt be made as promptly as practicable thereafter, except <br /> that no adjustment or correction shalt be made if more than 10 years have elapsed between the time <br /> the error or inaccuracy occurred and the discovery by either party of said error or inaccuracy. <br /> Further, Lessee shall furnish annually a complete operations report to Lessor disclosing the <br /> number of tons and the assay thereof of all ores, minerals and other materials mined from the premises <br /> during the preceding year. Lessee shall also furnish in said report geologic interpretations and <br /> recoverable reserve calculations, and maps and cross sections showing location of any mineral-bearing <br /> outcrops, drill 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 maintained by <br /> Lessee and provided to Lessor upon request include logs of all strata penetrated and all geologic and <br /> hydrologic conditions encountered, and copies of in-hole surveys; this information to be collected and <br /> prepared under the supervision of a qualified geologist, geological engineer or mining engineer. Other <br /> qualified persons may collect and prepare this data, if agreed to in writing between Lessee and Lessor. <br /> Any request to keep certain information confidential should be in writing to Lessor at the time such <br /> information is submitted to Lessor, and such data may be kept confidential as consistent with State <br /> taw. Lessee shall submit, if requested by Lessor, such additional reports, records or documents <br /> regarding Lessee's operation on the Leased Premises as necessary for the compliance with lease <br /> provisions. <br /> 7. OVERRIDING ROYALTY LIMITATIONS -- It is agreed that this Lease or any subsequent assignment hereof <br /> shall not be burdened with overriding royalties the aggregate of which exceeds two percent (2q) of the <br /> gross value of the minerals or ore at the first point of sale. Lessor must be notified of all overriding <br /> royalties accruing to this Lease. <br /> 8. DEVELOPMENT -- Lessee will diligently explore and develop the Leased Premises by utilizing methods <br /> of exploration commonly used in the industry, such as mapping, sampling, drilling, trenching, <br /> geophysical exploration, and laboratory analysis. Indirectly related exploration and development work <br /> such as work done on adjacent properties, or design or construction of a mill will not be considered as <br /> diligent development of the Leased Premises unless approved by Lessor. <br /> 9. PENALTIES -- A penalty may be imposed for, but not limited to, late payments, improper payments, <br /> errors on production reports, violation of any covenant of this Lease, or false statements made to <br /> Lessor. Penalties, taking into account the nature of the claimed deficiency, shall be determined by <br />