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INDEMNIFICATION AGREEMENT <br />THIS AGREEMENT is made and entered into this 7~ day of 2002 <br />by and between Rudolph Fontanari, dba WESTERN SLOPE FLAGSTO , a soIVE le proprietorship, <br />hereinafterreferred to as "Fontanari" and SNOWCAP COAL COMPANY, INC., hereinafterreferred <br />to as "Snowcap Coal". <br />WHEREAS, Snowcap Coal currently owns property and operates an electric transmission <br />line, including above and below ground supporting structures lying in Section 35, Township 10 <br />South, Range 98 West, and in Section 2, Township 11 South, Range 98 West, of the 8th Principal <br />Meridian, Mesa County, Colorado. <br />WHEREAS, Fontanari is in the process of obtaining a mining permit from the Colorado <br />Division of Minerals and Geology for the purpose of mining, processing and removing sand and <br />gravel (construction and landscape materials) within 200 feet of the said property and <br />improvements owned by Snowcap Coal. Such mining activity is known and referred to as <br />WESTERN SLOPE FLAGSTONE QUARRY NO. 2. <br />WHEREAS, the Colorado Division of Minerals and Geology has conditioned such mining <br />permit on Fontanari, indemnifying and holding Snowcap Coal harmless for any damages that may <br />occur to its property and improvements within said 200 feet, as a result of Fontanari conducting <br />such mining activities authorized by said mining permit. <br />NOW THEREFORE, except to the extent caused by the negligence of Snowcap Coal, its <br />agents, employees or assigns, Fontanari shall defend, indemnify and hold harmless Snowcap <br />Coal, its agents, employees or assigns for any loss, cost or damage to said property and <br />improvements, including, without limitation, reasonable attorneys' fees and court costs, arising <br />from or related to the exercise of the rights granted under such mining permit. Fontanari shall <br />conduct its activities in a safe and prudent manner and shall comply with applicable rules and <br />regulations promulgated by federal, state and county agencies, including, but not limited to <br />reclamation obligations relating its mining operations. <br />All of the covenants and agreements set forth in this Indemnification Agreement are <br />intended to be and shall be construed as covenants (and not conditions) running with the land, <br />binding upon, inuring to the benefit of and enforceable by Snowcap Coal, and Snowcap Coal's <br />successors and assigns. <br />IN WITNESS WHEREOF, Fontanari has caused thisAgreement to be executed and it shall <br />become effective as of the day and year first above written. <br />Western Slope Flagstone, <br />a sole proprietorship <br />RudolptfFontanari <br />INDIVIDUAL ACKNOWLEDGMENT <br />STATE OF COLORADO ) <br />)ss. <br />COUNTY OF MESA ) <br />The foregoing instrument was acknowledged before me this ~ day of <br />~L~ ~_, 2002 by Rudolph-Fontanari, sole proprietor of Western Slope Flagstone.- <br />and official seal. <br />RANDALL L. <br />STACY JR. <br />My commission expires: <br />by: <br />SNOWCAP <br />COMPANY, INC. <br />Notary P ' <br />-~/~~~~_ <br />~~~~~z <br />~- Date <br />