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-a- IV RECITALS 1. On January 1981 Permit Number M-76-020 to Animas Aggregates, Inc. ("Permittee"), pursuant to which Permittee has been condo operation in the County of La Plata was granted (exist~ng operator) ting a raining State of Colorado. 2. Permittee wishes to assign the permit to Mountain Gravel and Construction Co. (new operator), as Successor operator ("Successor") and Successor wishes to become Successor Permittee under the permit. 3. Successor understands that the reclamation plan (the "Plan") required by the permit and by applicable State laws and regulations has not been completed and is willing to assume full responsibility for the completion of the Plan. V. AGREEMENTS Permittee and Successor hereby agree, for their own benefit and for the benefit of the State, such agreements to be effective ipSO facto upon the approval by the State of the transfer of the Permit from Permittee to Successor, as follows: 1. Successor has inspected the mining and reclamation operations to its entire satisfaction and is fully aware of the conditions thereof. Successor understands and accepts all of the conditions of the Permit. 2. Successor will complete the reclamation plan, and hereby assumes liability for completing such plan as to all areas heretofore disturbed, as well as to all areas hereafter disturbed. Successor will perform 311 of the obligations of the Permittee under the Permit which have not heret~~fore been performed by Permittee. 3. Successor hereby tenders to the State its attached Performam,e and Financial Warranties`, which are to be substituted for the Perform,~nce and Financial Warranties heretofore filed by the Permittee, effective ~~pon the release of the latter Warranties. 4. Successor represents to the State that, to the best of its knowledge, information and belief, it is not in violation of any of the provisions of the Colorado Mined Land reclamation Act with respect to any other oper;ttion conducted by it in the State of Colorado.