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operations including the mining, quarrying, excavating, crushing, screening, <br />washing, selling and/or mixing for shipment of Sand & Gravel. Lessee shall <br />promptly obtain all amendments and extensions/continuations of permits required <br />for Lessee's operations, including the addition of any Lands in Exhibit A which <br />are not covered by the required permits for mining. Owner hereby agrees to <br />support said efforts in all respects and appear at hearing if Lessee deems it <br />necessary or advisable. Lessee shall provide copies of submitted documents and <br />notice of outcome of permit applications. Renewal or significant amendments to <br />the permits and operation/reclamation plans governing the Property shall require <br />the Lessee t o present the new plans to the Owner for approval, which shall not <br />unreasonably be withheld. The county, as to the Special Use Permit, and the <br />Division of Minerals and Geology, shall be notified in writing by Owner in the <br />form prescribed by such authorities that Lessee is the operator under such <br />permits. <br />13. Rioht to Redeem. Owner agrees that the Lessee shall have the right at <br />any time to redeem or protect the Property from any foreclosure, execution or <br />other forced sale which would impair Lessee's interest hereunder, by payment of <br />any mortgages, taxes or other liens on the Property in the event of default of <br />payment by Owner (to the extent Owner is obligated to pay same). Such payments <br />so made by the Lessee without limiting Lessee's other remedies shall be deducted <br />from the Royalties, Production Royalties or other money due, or which may become <br />due, to the Owner from Lessee, during the term of this Lease. <br />14. Annexation and Development. In the event Owner desires to annex or <br />rezone all or any part of the Property, the Lessee shall not impede the, action <br />to be taken and will affirmatively support said action, except Owner shall not <br />take action to annex or rezone which would be of a character which would <br />unreasonably or materially interfere with Lessee's rights previously set forth <br />in this Lease. <br />14.1 Sn connection with the sale of any portion of the Schmidt Ranch owner <br />will disclose in writing the existence of this Lease. <br />14.2 Upon completion of Phase I of Lessee's mining plan, owner may,- with <br />Lessee's prior written consent which shall not be unreasonably withheld or <br />delayed, commence use and development of the surface of such Phase I property, <br />provided (i) Owner's use and development does not materially interfere with <br />Lessee's mining on Phase II or subsequent phases and (ii) Owner pays the cost of <br />relocating any of Lessee's improvements, fixtures and other equipment from Phase <br />I to a subsequent phase of the Property. Upon the completion of Lessee's mining <br />of Phase T_I and later phases, Owner may commence use and development of the <br />surface of such property under the same terms and conditions as are provided <br />herein. Lessee may withhold the consent required in the first sentence of this <br />subsection 14.2 because, among other reasons, the proposed relocation of <br />Lessee's improvements and equipment would not be allowed under applicable zoning <br />classifications, mining permits or other required governmental approvals or <br />would be made more restrictive under new zoning classifications, mining permits <br />or other required governmental approvals. <br />14.3 upon completion of Phase I of Lessee's mining plan, Lessee shall, <br />through the reclamation of the Property, including, but not limited to, bringing <br />in material that may be available from time to time from other locations, return <br />the elevation of the Property in Phase I to original elevation or one which is <br />reasonably susceptible to commercial development. <br />RECElVE® <br />FEB 12 2003 <br />0 <br />Qivision of Minerals and Geology <br />