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i-` <br />Page 2 <br />"Lessee" shall keep an accurate record of all materials removed from the Property <br />and all sales of the materials. <br />"Lessee" shall pay to "Property Owner" the amount of ma#erials removed from the <br />site based on the actual material crushed and verified by the crushing contractor. "Lessee" <br />shall pay to "Property Owner" accordingly: <br />1) $10,000..upon execution of this agreement. <br />2) $1,0,000 30 days following completion of crushing operation. <br />9) Final payment of the balance due 60 days following completion of crushing <br />material. <br />"Property Owner''shall have the privilege, at reasonable times and upon:at least 5 <br />days prior notice of examining the mining procedures :and checking the records of "Lessee" <br />for the purpose of verifying the amount of royalties payable. <br />"Lessee" shall have sole- control and discretion to determine the purchasers of <br />materials from the Property, without interference ftom "Property Owner." <br />SURFACE RIGHTS OF "LESSEE" <br />"Lessee" may clear brush and undergrowth from the portions of the Property as may <br />be reasonably necessary to conduct operations and- to locate pits, quarries,. and stockpile <br />areas. <br />Access and Appurtenant Structures:. While this lease is in force, "Lessee" acid his <br />agents, employees, and contractors shall have rights of. ingress and egress over and <br />through "Property Owriers" adjoiriing lands to perform "Lessee's" operations. Further, <br />"Lessee" and his agents, employees, and contractors shall have rights. of ingress and <br />egress over and through the Property for the purpose of mining, storing,- processing, and <br />removing and transporting material. <br />"Lessee" will be applying fora "Special Use Permit" from Huerfano County, Colorado <br />and a State of Colorado Reclamation Permit from the Minerals and Geology Division of the <br />State of Colorado. "Property Owner" will allow any .and all tests necessary to obtain <br />approval for the above permits and will cooperative with "Lessee" in obtaining such permits <br />including signing documents. "Lessee" will be responsible for obtaining said permits and <br />"Property Owner" will not be liable for any of these obligations. "Lessee" will be responsible <br />for reclaiming the leased area in accordance with the State of Colorado Reclamation <br />Permit. <br />