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• which may be levied against the Mining Properties. <br />(e) Lessee agrees to indemnify and hold the Lessor harmless from any and all <br />claims, demands and liabilities arising out of or in connection with the operations or <br />activities of the Lessee on the Mining Properties from and after the effective date. <br />The Lessee assumes full and sole responsibility for the operation and direction of the <br />work done hereunder. No employee or agent of Lessee shall under any <br />circumstances be deemed an employee or agent of the Lessor. <br />(f) Lessee agrees to maintain at all times Workmen's Compensation Insurance <br />pursuant to the laws of Colorado and shall comply with state and federal laws and <br />regulations pertaining to employment; and shall maintain (and furnish copies to the <br />Lessor if requested) liability insurance in amounts Lessee deems reasonable for its <br />operations on the Mining Properties. <br />(g). No surface disposal of milled tailings shall be permitted on the property without <br />prior written approval of Lessor. All milled tailings shall be solidified in concrete <br />and disposed of underground if any disposal of such material is made on the Mining <br />Properties. Waste rock containing acid leaching material or minerals shall be placed <br />underground unless prior written approval of Lessor is obtained. <br />(h) Lessee shall maintain books, records and accounts consistent with those <br />• ordinarily kept by mining operators covering operations on the Mining Properties, <br />including the mining, milling, sale and disposal of ore and concentrate in accordance <br />with generally accepted principles and practices of accounting. The books and <br />records of the Lessee insofar as they relate to operations on the Mining Properties <br />pursuant to this Lease shall be open to the inspection of the Lessor's authorized <br />representatives during regular business hours of Lessee upon at least one (1) day's <br />notice. <br />Within sixty (60) days after the end of each calendar year, or if net smelter <br />returns are being generated from the operations, within thirty (30) days after the end <br />of each calendar quarter, Lessee shall furnish Lessor progress reports showing the <br />character and amount of work performed by the Lessee during the preceding period <br />on the Mining Properties. Lessee shall maintain all sample data, geological maps, <br />and other items of information resulting from such work. <br />Lessee will permit Lessor's representatives authorized in writing and upon <br />reasonable notice during normal business hours, to inspect the information <br />maintained by the Lessee, and also to enter upon the Mining Properties accompanied <br />by Lessee's representative, to inspect the work performed by the Lessee pursuant to <br />this Lease provided such activity shall not unreasonably interfere with the Lessee's <br />operations. Entry upon the Mining Properties by Lessor's authorized representatives <br />shall be at Lessor's risk. Lessor indemnifies and holds Lessee harmless from any <br />claim, damage or demand by reason of injury to Lessor's representatives, invitees or <br />the like incurred as a result of their inspecting the Mining Properties. <br />• <br />March 12, 2010 Amendment M- 1981 -185 7 <br />