|
SENT BY:F5P&T, LLC, t]2 ;11-21- 1 ;10:229!11 ; FSP&T,. LLC, Q2~ 303 721 9298;17/22
<br />' years. 1f arty suck examination shall reveal, or if either patty sltaLL discover soy error or iltrucutacy hi
<br />its own ur Ute Dater patty's atafcment, paymcrLL, calculation, or dcturmitlation, then proper adjustment dr
<br />correction thereof shall be made as promptly as practicable thereafter, except iftat no adjustment nr
<br />correction shall be made if more.dtstt 10 years have elapsrel~bctwoett d)c tune ate error vx irtaauracy
<br />.. occurred and the discvvaty by citheT party vl said er[ur of 111.accufacY.
<br />- purNer, (cssee dull furnish sanually, as at [hc cost of each cotenant year during the temr of
<br />- this lease, a complete uperatioas report to I,easnr disclosing the nuttther of tarts end tke assay dterevt of
<br />all ores, mineraIa end other nwterials mined from the premises during ate preceding year. Lessee shalt
<br />also ILhtiah ht saki repox[geologic iriterptetationcand recoverable reserve calculations jn [erma of bank
<br />. cnhic yArda alai apprt>)xiate tnmtnge conversion fattens for hank .obit yards and loose cubic yards,, and
<br />Snaps 4nd emus seedot[s showing location of airy minerd-braring outcrops, yirill Ltolcs, tr aches, on;
<br />Avdies and other prospecting oral explvmtion activi(ica, along with assays showing the amount ol"
<br />mineral conlainad in the um. The rfxards [eyuircd [v be ttteintaiueA by Lessee and yruvlAeA to hessor
<br />upon request includu logs yf ¢Ii strata pettctratcd ern] all geologic and hydru(ugic cantlifiut>s
<br />encountered,. and aoplea of ~in-hula Sa[Vtya-Inis I11fUCnlalloll la 1)C CnIfCCICd oral prepared uruier die
<br />supervision of a yvnlfGul geologist, gcolugipd engiucer nr tniniug eugineur. Other yu;tlified pesaua
<br />rosy coileu and prepare aria data, if agreed to in writing betwee+t I,essce and Lessor. Any regr;est to
<br />Itcep certain inforttutivn cnnfdential skonld he in writing W I..usor xt the lime such btfuhnafian is
<br />suhmit!ed to Lcsxnr, oral such data may be kept confidential as coreintcnt with State ]aw.
<br />' .L:sacc skall attbndt, if requcstcA by Lesaut, such. additiottxl reports, records' tit dca:wntstLs
<br />~regardutg Lessee's txieia[ion wt rite Leased Premises as accessary fur Ute compliutcc wiRt least
<br />pruviaiyna.
<br />7. OV&RAIDING ROYALTY Lu+llTgT1PNS -1t is agre«I tktnr this louse or any subscyuuu axsigtunetil
<br />hereof strait sot he but~dened withoven'iding royalties the aggregate of wkick exceeds two pecceuc (2p}
<br />- of the gross value of the [nioerals ur ore nt the first point of sale, Lessor must be notified of all
<br />overriding royalties aaruing to this ]cage.
<br />.•
<br />N. D VF,Id PMp 'f -~ Lessee will diligently explore wtd Aevelop the Icaae by 'utilizirt6 tmWoda oI
<br />explo[ationcommanlyused in the industi•,y, such az tazpping, sampiittg, drifting, uenching, geaphysicnl
<br />exploration, and laboratory analysis and will expend as a. minimum aznnally the amounts set forth below
<br />uraicr the hcadittg h3ittituucn Eapeudihuc (hfiu Dxpcud): .
<br />LEASE YEAR MIN EXPEND
<br />1996 thru 21NI5 S Q,(l0U
<br />and cgch vcor thcc er
<br />that the lettsols is full Porcc and eQecl
<br />indirectly rotated cxplorationand development work such as work done ou tWjacetu propeaies,
<br />ur design yr canstrucdon of a mill wfil not he wnsidered av diligent devefopn:enl nP the lease vtilcss
<br />approved by I~ssoc. However any exper,ditwe which is used for the propose of obtaining rail access
<br />from dm cxisfing rail line to the property will appty to the trtinimum amtual expenditure. Any properties
<br />:required by Lassoe which tie the nnttiAnfl~,UOUa p0.[Cels Of tllC 1RaPCd PSetIliacb Wgethcr irx:ludirr$ but
<br />net Iunittd to properties acyuired fur nil acctSS, will be grouted to Lessor al nn cost, upon lerminatiun
<br />of this Leaac,.'providedrhat it' Lcsacu acquires Jorge aaeages, such requirement will be sntisficd ay dm
<br />grant W Lraetur of up lu 16U +mrca hum Lcsace's acquireA acreage selected by Lessor ss aurae lands
<br />must suitable For rxi] access ar for acreagu,an which roads ineecing Yuebin County spenitlt~tians fur
<br />ututuy road cvustrucdoucatt be built.
<br />9. P~jAI.TIF_S , A Penalty shalibe imposed for, but nn[ lind[ed lo', lAW p;tYmarla, improper paymearts,
<br />apcrsdottal defrciencies of any kind whatsoever, vivintions o1' nnY cuvraants of this lease, nr any false
<br />stateutenta trtttde W Lessor. Pcnalttes shall br: deterrttirteA by Lessor unless otherwise provided for 6y
<br />law attd mny he in the form nf, but not limitui to, hnexest, fees, fines,-artA/nr lease cance}Ingan, A
<br />penalty schedule shall be prepared by l.esao[ anA shah become effective kttmediately after public notice.
<br />Said schedule may be cltangad $run tune to time aftcr..ruch notice. 5ttch pe[>fll[ies are Ihuse Utat, from
<br />time to Minn:, are uniformly ayplied lit other leb5eca uralu siudL•u circumsrarrces-
<br />lU. ASSIGNMENT -- Lessee, only with Written conaenfof Lessor, may assign this lease as lu rite iraschold
<br />interest. of such Ixsxea in aft or put of the lands covered hereby: rot less, kowever, than tracts of
<br />al+prgXlm»tely forty (40) acres or govermnetrtal Iola attresponding to n quneter-quariux acctiun fat' any
<br />. partial aasign[nen[. ~ - ~ .
<br />Page 4 of 9
<br />
|