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4. OVERRIDING ROYALTY LIMITATIONS -- It is agreed that this lease or any subsequent assignment hereof shall not be burdened with overriding royalties the aggregate of which exceeds two percent (296) of the gross value of the material at the first point of sale. Lessor must be notified of all overriding royalties accruing to this lease. Violation of the above may subject this lease to cancellation by Lessor. 5. ASSIGNMENT -Lessee, with the written consent of Lessor, may assign this lease as to the leasehold interest of Lessee in all or part of the lands covered hereby, not less, however, than tracts of approximately forth (40) acres, or governmental lots corresponding to aquarter-quarter section for partial assignment. For approval of such assignment Lessor may charge an assignment fee in an amount currently in effect at the time of the assignmen[. If an assignment of a part of this lease is approved, a new lease designated as an assignment will be issued to the assignee covering the lands assigned for the balance of the term of the base lease on the mining lease form in use at the time of assignment and limited as to term as said lease is limited. The assignor will be released and discharged from all further obligations for such lands assigned, as if the same had never been a part of this lease. No assignment or transfer of this lease will be held valid by Lessor unless made with its wnsent in writing and duly entered in the books or records of Lessor. Assignment Consideration --The consideration for approval of assignment by Lessor shall be Jgn percent ( 10 ~) of the value of any consideration tendered to Assignor by Assignee for the assignment. Divulgence of the value of these considerations shall be mandatory, in affidavit form, which form shall be presented to Lessor along with the other assignment inswments in order to obtain Lessor's approval for the assignment. An assignment does not constitute a new lease but is a continuation of the base lease. Any attempt to withhold this information shall be construed as an attempt to defraud the State of Colorado and shall render this lease null, void, and nonexistent, and all monies paid to Lessor shall be forfeited to Lessor. In addition, the current statutory fees will be paid at the time the assignment record form is submitted. 6. AGREEMENTS OUTSIDE THE TERMS OF THIS LEASE -- No assignment of undivided interests or retention or reservation of overriding royalties will be recognized or approved by Lessor; and the effect, if any, of any such assignments or reservations will be strictly and only as between the parties thereto, and outside the terms of this lease, and no dispute between parties to any such assignment or reservation shall operate to relieve Lessee from performance of any terms or conditions hereof or to postpone the time therefor. Lessor will and shall at all times be entitled to look solely to Lessee or its assignee shown on Lessor's books as being the sole owner hereof, and for the sending of all notices required by this lease and for the performance of all terms and conditions hereof. Although not binding on Lessor, all instruments of every kind and nature whatsoever, including but not limited to sublease agreements and operating agreements, affecting this lease shall be filed in the records of the Mineral Department of Lessor. Upon request, such instruments furnished may be kept wnfidential as consistent within the law. COMPLIANCE WITH REGULATIONS -- Lessee covenants and agrees that during the continuance of this lease he will fully comply with all of the provisions, terms and conditions of all laws, whether Federal, State, or Local, and orders issued thereunder, which may be in effect during the continuance hereof relating to the operations of Lessee under this lease, and the marketing of any product thereof, or labor relations in connection with such operations or marketing. Page 3 of 8