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FROM SKIP HL79TON CDNSTRUCTIDN rr"A( tJO. 9702499298 Oct. 28 2002 10: 22gM P3 <br />If the Company faits or refuses to pay the royalties as afot+esaid promptly when due or <br />fails foz any reason to perform and fulfill all of the Company's promises and covenants <br />herein stated, then it shall be lawful for Owner, their agent or attorney, to deelaze this <br />Lease terminated and of no effect thereafter, and without process of law to enter upon and <br />take possession of said property, ha the latter event, and also at the expiration of this <br />Lease, the Company agrees to surrender and deliver to Owaex quiet and peaceable <br />possession of said property, and upon failing to da so, the Company shall be deemed <br />guilty of forcible detainer under the applicable statutes. The Comgany is responsible to <br />surrender property in good repair and in a reclaimed condition in accordance with the <br />reclamarion plea. <br />The Company agrees to provide liability insurance and shall be responsible for all of its <br />operations related to mining of the property. The Company shall liar all of the expenses <br />of such mining operation and it shall indemnify, hold harmless and defend the Owner <br />from any liability fur such costs and shall not permit or suffer the attachment of any lien <br />for such costs upon the subject real property. The Owner will be held harmless for acts <br />of the Company and its employees or subcontractors related w operations on the <br />property. <br />The terms hereof shall be binding upon and insure to the benefit of the heirs, executors, <br />administrators and assigns of the respective parties hereto. <br />The Gwner hereby warrants that they have good title to the above described premises, <br />t.the_Y11AVe_ia~vtial.til;t~$~.;~'~tj}~ Si~}of'tv~~~tii't`~r~4''uR~iWi`di ~ia`li ~~1hI~iR'TIh'f1P." <br />_~._......_ ~,,~~aJ~u i'Alilill Ili ~ <br />_._... ~.~._. ) Pm7 ~ttm ~~l>oeu ~[til>ut ulu ouu~l,~lt ptu~tt~. <br />SPECIAL CONDITIONS: <br />In place of cash advance, the following is accepted by both parties: Tho Ouster will bttild <br />the haul road from Highway 347 to the Pit. The Company wilt placo pit run materials <br />and will produce and haul roadbase for the haul toad. The Company will pave the <br />apptvach from the haul road to Highway 347 as described in the CDOT Highway Access <br />Pemtit The Company will set a cattle guard furnished by the owner on a concrete <br />foundation, directly below the pond that is adjacent to the pit. The Company shall <br />purchase and install the concrete foundation and a 24-foot cattle guard at the access to <br />Highway 347. <br />Water is available within'/. of a mile of the pit as Iong as irrigation allocations are met <br />gist. <br />The Company shall mine materials from the subject property in a manner consistrnt with <br />good mining przctices and in full cozupliaace at all times wit11 any and alI permits, laws, <br />Hiles and regulations applicable to said operations, including all provisions of the <br />MINED LAND RECLAMATION BOARD Permit the Montrose County Special Use <br />