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pertinent information,in reasonable detail,to explain the calculation of the payment with respect own risk and expense and in compliance with applicable laws and Producer's safety procedures,
<br /> to each month.Payment to Seller shall be made in cash or by check,or upon 48 hours prior written and may not unreasonably hinder operations on or pertaining to the Mine Premises.
<br /> notice from Seller,by wire transfer to the account specified by Seller in such notice.In the event
<br /> a payment is not due foi any month,Ptoducer shall not be required to provide Seller with any 11. Records
<br /> statement hereunder.
<br /> Producer shall keep accurate records of data necessary for the computation of the
<br /> Such monthly statement shall also list the quantity and quality of any Precious Net Smelter Returns.Producer's records,books,and accounts that are related to the computation
<br /> Metals<tore in inventory,if any,for more than sixty(60)days.No payment shall be due with and payment of the Net Smelter Returns shall be open to the inspection of and copying by Seller
<br /> respect to ores and minerals, Base Metals,Precious Metals or Other Products mined from the or its designated representatives at times selected by Seller upon not less than three(3)business
<br /> Property or stockpiles of the same unless and until the same are actually sold or deemed sold as days notice to Producer during normal business hours Seller will honor and comply with any
<br /> expressly set forth above, reasonable confidentiality restrictions placed upon such information by Producer.
<br /> 8. Assignment ofPaynrenls 12. Covenant Running With the Land
<br /> Seller may transfer,pledge,mortgage,charge of otherwise encumber all or any part 'rhe obligation to pay the Production Payments in the manner described in this
<br /> of its right, title and interest in and to the Production Payments to be made pursuant to the Schedule shall be a covenant running with the Property and shall be binding upon the Company,
<br /> Agreement provided,however,that Producer shall be under no obligation to make such payments its successors and assigns;provided,however,that(a)upon a sale by the Company of all or any
<br /> to any such assignee,transferee,pledgee or other third party until Producer's receipt of written portion of the Property to any third party,neither the Purchaser no'the Company shall have any
<br /> notice concerning the transfer,pledge, mortgage, charge or other encumbrance and provided further obligation or liability to Seller with respect to Pioductior Payments owed from Products
<br /> further that in no event shall Producer be obligated to deliver payment or notices pursuant to this produced from that portion of the Property after the date of such sale;and(b)upon a sale by
<br /> Agieetnent to mote than one entity or location. Purchaser of the Company,Purchaser shall have no fuiher obligation or liability to Seller with
<br /> 9. No Covenants to Develop respect to Production Payments owed to Seller based on the production of Products from the
<br /> p Property after the date of such sale.
<br /> The parties agree that in no event,whether arising from Purchaser's agreement to
<br /> pay or cause the Company to pay a portion of the Purchase Price to Seller based upon a percentage
<br /> of the Net Smelter Returns of Products mined,removed and sold from the Property or otherwise,
<br /> shall Purchaser, Producer or any of their respective successors or assigns have any duty or
<br /> obligation,express or implied,to explore foi,develop,mine or produce ores,minerals of Products
<br /> fiom the Property,and the timing,maimer,method,amounts and continuation of such exploration,
<br /> development,mining or production,if any,shall be in the sole discretion of Producer.
<br /> 10. Inspections
<br /> Seller,or its authorized agents or representatives,on not less than two(2)business
<br /> days notice to Producer,may enter upon the Property and facilities of Producer by which ore from
<br /> the Property is extracted or processed(the"Mine Premises")for the purpose of inspecting the Mine
<br /> Piemises,all improvements thereto and operations thereon,as well as inspecting and copying all
<br /> records and data, including without limitation such records and data which are maintained
<br /> electronically,pertaining to all activities and operations on or with respect to the Mine Premises,
<br /> improvements thereto and operations thereon. Seller may, at times reasonably convenient to
<br /> Producer at reasonable intervals and at Seller's expense,have a representative present at any stage
<br /> when ores and other mineral products derived after the treatment thereof are mined,handled,
<br /> stored,treated,weighed,sampled,assayed,and the contained moisture determined,and shall upon
<br /> request be furnished with a part of any sample taken. Seller, or its authorized agents or
<br /> representatives,shall enter the Mine Premises at Seller's
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<br /> Exhibit 2 Exhibit 2
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