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<br />10. ?srivtrrtent -The Lessee, with the written consent of the Lessor, wiB have the right to assign this lease u to the
<br />enure leasehold interest of such Lessee in all or pan of the lands covered hereby, not less, however, than tracts of
<br />approximately lorry (40) acres or Governmental lot eortesponding to a quartarqua:tt[ ec:ion for any putial
<br />aurgttmen[, and Cor approval. of such usignment the Lessor will make a chars: of ~`~ •00 for any
<br />one assigrunent. No assiggnnment of undivided in[erests ar retention or reservation of overriding ioyaltiei will be
<br />recognized or approved by Lessor; and the effect, if any, of any such assignments or resemtions will be strictly
<br />and only u between the polies thereto, and oupide the terms of this lease, and no dispute between par[ies to any
<br />such assignment or rexrvatron shall operate to relieve the Lessee from performance of any terms or conditions
<br />hereof or to pas[pone the time therefor. Lessor will at all times be entitled to look solely to the Lessee or his
<br />assignee shown om its books u being the sole owner hereof, and For the sending of all no[ices required by this
<br />feue, and for the performance of all terms and conditions hereof. !f an assignment of this lease, to •+.•holc or in
<br />put, is approved, a new lease will be issued to the assignee for the balance of the.Gfe oC the lease, covering the
<br />finds amgned. Said lease will be on the mining feue Farm in use a[ the time of assignment, and limited u to urm
<br />u said lease is limited, and the assignor shall be released from all Further obligations, and shall he held to have
<br />releued all rights and benefits thereafter accruing with respect to the assigned land, u if the same had never been
<br />s put of the subject rnattet of this feue.
<br />I1. Pros eerie - Lesxe agrees that while using and operating any diamond,churn, or other drill orvdF~6df-
<br />said premiss, it will keep an accurate log an all work so done and pperformed, showing geological
<br />ormatlotu penetrated, the depth or thickness of each, the mineral character of each especially mineral veins and
<br />water bearing strata, the loptton of same, the elention, and tie to a comer esublished by U. S. surveys of some
<br />legal subdivision, and each ahd every thing necessary to make a complete log of the hole ttuoughout [ts enttre
<br />depth, a true copy of which said log will be furnished to the Lessor.
<br />It is understood and agreed tlut the methods used in carryingq out any program ai exploration, and the rate of
<br />progress of such proggrraartrnt ma be determined by the Lessee. IF the Lessee carries on any progrun of exploration,
<br />other than drilling, Lessee will submit to Lessor written reports showing the character and extent of prospecting
<br />being evried out on the leued pttruises and giving any details of mineral outcropppings, :earns, and veirs which
<br />may have hem encoum[ered; sad Lessor agrees that during the term of this lease all•such mtorma[ion supplied to
<br />Lessor by Lessee will remain confidenda! and unpublished so far u consis«n[ with law.
<br />12. Surtender and Relin uishment -The Lesxe may a[ any time, by paying the State of Colorado, acting through its
<br />rate oars of n orttrmssionen, all amoun[s then due u provded herein, surtender and cancel this lease
<br />insofu'u the same covrn all or any portion of the lands herein leued and be relieved from further obligation: or
<br />'liability hereunder with respect to the lands so surrendered; provided, that no putial surtender or cancellation of
<br />this feue may be for less than tracu of approximately forty (40) acres or Govemmental lot corresponding :o a
<br />gttarterquarter xenon, the rental being reduced proportionately; provided further, that this surrender clause and
<br />option herein rtxrved to the Lessee will ceaze and become absolutely inoperative immediately and concurrently
<br />with the institutiortof any suit in any court of law by the Lessee, Lessor, or any assignee of either, to enforce this
<br />lease or any of its terms, express or implied, but in no case will surrender be effective until Lessee has made full
<br />provision for cansecvation of the minerals and protection of the surface. rights of the leased premises.
<br />rill information in Pan¢raphs 5 and 1 1, above, mus[ have been filed with the Board before this base may be
<br />temunatea.
<br />13. If leaxe initiates or establishes any water ri~ltt for the leased premises. the pain[ oC surface diversion or ground
<br />water withdrawal of which is on the leased premises, such right will, if the iurfate righu of said premises are
<br />owned by Imor, become property of lessor, wi[hou[ cost, at the [eratina[ion of the lease.
<br />14. Protection a nest Surface~Daina a -Bond Re uiremenu -Lessee has the right [o u[ilize u much of the surface
<br />of [~ an ul ds is necessary for msmng operatsons. an ss Bable and agree to pay for all damages [o livestock,
<br />growing crops, water wells, reservoirs, or unprovemenu, nosed 6y Lessee's openttons on said lands. Further, is is
<br />understood [hat this leax is panted subject [o surface patents, deeds, and certitica[es of purchue. and Lessee
<br />assumes responsibility Cor all claitru arising from damages to [he surface caused by Lessee's operations on sue::
<br />lands. It is agreed and under.;tood that no opperatiom may be commenced on the lands hereinabove described
<br />unless and until the Lesxe or his assignee hu filed a good and sufficient bond with the Lessor in an amount to be
<br />itxed by Lessor, to secure the payment fur such damage to livestock, growing crops, water, or improvements as
<br />may be caused by Lessee or his. assignee's o orations an said lands. The Lessor may gran[ relief from the foregoing
<br />band requirement upon application for such relief Cram the Cassee.
<br />I5. Indemnification of Lessor -The Lessee further agrees [o hold the Lessor harmless for any and all manner of
<br />nuns ansmg or [o arse from the said leued premises by Cassee whether from soil or surface subsidence or from
<br />any other cauu or any other muure whatsaerer; this paragraph a binding noon Lessee and upon the heir, assiets,
<br />tuecessors, and legal represrnt.atives of Lessee, and is a continuing obligation during and after the ezpitatian oC
<br />this lease, so long u any possibility of soil or surface subsidence remains.
<br />l6. Ri t of Removal- [n the event this leax is terminated 6y forfeiture, surtender, or the expiration of term. and
<br />o patrons of Lessee under this leax are satisfied, Lessee may remove all his improvements and equipment
<br />from the said premises within six months from the dale of such [erminatian, and such removal must be accom•
<br />p~ished without unnecessary wvte or injury to the premise. ,W improvements and equipment remaining on the
<br />(eased premises six months after the termination hettof will be forfeited au[omatically to the Stale of Colorado,
<br />without compensation.
<br />l7. Compliance with Law _ Lessee further covenan[s and agrees that during the continuance of this lease it will fjlly
<br />comp y~ t}~aI-t tFe provisions, temv, and conditions of all laws, whethei State or Federal,lnd Orden issued
<br />thereunder which may be in effect during the continuance hereof relating tb mining or other operatlons of Cassee
<br />hereunder. •
<br />18. Forfeiture - It is agreed that il' for any reason the Lessee fails to keep each and every one of the covenants herein,
<br />an~such default continues for a period of thirty (,0) days after service of writ[en notice thereof 6y certiried
<br />mail upon the Lessee by the Isssor, the Lessor has the right to declarrthis Icase forfeited, and to er_•.er onto the
<br />Inxd pttmises, or any part thereof, either with or without process of law, and [o expel, remove, and put out the
<br />Lessee or any erson occupyGsg the premise, using such force as may be necessary to do so. In [he event of the
<br />termination ofpthis lease 6y reason o[ breach of the covenants herein contained, the Cassee will surrender and
<br />peaceably deriver up to the Lessor the sbovedesctibed pretrti;es' which premises are [o be in good refrains
<br />condition. If, upon termination of this lease for any reuse, whether by surtender, forfeiture, or expratton of
<br />term, or otherwise, Lessee hu not Complied fully with the terms of the lease, Lessor will hold and «tain possession
<br />of the property, improvement:, and equipmeet of Lessee, u security unto Lessor for the paymene of rents and
<br />royalties due it, or [o protect it against liens, or to indemnify it against any foss or damage sustained Sy it by
<br />reason of the default o[ the Cassee, far which purpose Lessor is hereby given lien upon all such prop2rty,
<br />improvements, and a uipment, which Gen wiB attach u the same are plated upon the premises. In the event
<br />Lessor forecloses the lien in this article given [o it by Cassee, Lessor may r[self be a purchuer at any sale thereof
<br />under such foreclosure. Upon the termination of this lease for any cause, if the Lessee remains in pouession pf
<br />said premises, he will be guilty of an unlawful detainer under the statutes in such case made and provided. and he
<br />will pe sub))'ect to aB the conditions and provisions thereof and to eriction and removal, forcibly or orherwise.
<br />with or without process of law, as above provided.
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