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<br />101 In- Iq 7 7- z19 3 <br />?/9406 <br />February 21; 2011 DRAFT Climax- Clinton Agreement <br />AGREEMENT <br />This Agreement dated February , 2011, is between the Climax Molybdenum <br />Company ("Climax") and the Clinton Ditch and Reservoir Company (the "Reservoir <br />Company"). <br />Whereas, the Reservoir Company is the owner of Clinton Gulch Reservoir located in <br />Summit County Colorado. <br />Whereas, Climax has an application for amendment AM-06 to its Climax Mine <br />Reclamation Permit, M-1977-493. <br />Whereas, the Reservoir Company submitted a July 8, 2010 letter to Peter Hays and <br />Allen Sorenson of the Division of Reclamation, Mining and Safety ("DRMS" or the <br />"Division") expressing concerns regarding the permit amendment application and requesting <br />party status. <br />• Whereas, on January 25, 2011, Bob Weaver of Leonard Rice Engineering, on behalf <br />of the Reservoir Company, provided preliminary technical comments on the permit <br />amendment application to Ray Lazuk of Climax. In response to these comments, counsel for <br />Climax met with counsel for the Reservoir Company on January 31, 2011 to discuss the <br />potential for resolving these issues outside of the DRMS permit amendment process. <br />Whereas, timely approval of the AM-06 permit amendment is crucial to planned <br />activities at the Climax Mine, and DRMS will not approve Climax's permit amendment <br />application until all parties' concerns are addressed by the parties or, in the case of <br />continuing objection, by resolution of the Mined Land Reclamation Board, or the comment <br />letters are withdrawn. <br />Whereas, the parties desire to resolve between themselves the issues raised by the <br />Reservoir Company comment letter in a timely manner to avoid significant delay in the <br />permitting process. <br />Now, therefore, for good and valuable consideration, the receipt and sufficiency of <br />which are hereby acknowledged, the parties agree as follows: <br />1. Clinton Gulch Reservoir Purchase and Sale Agreement. Climax and the <br />Reservoir Company have entered into a Reservoir Purchase Agreement for Clinton Gulch <br />Reservoir dated July 21, 1992, recorded at Reception No. 426603 of the Summit County <br />• records (the "Reservoir Purchase Agreement"). Paragraph 5 of the Reservoir Purchase <br />Agreement contains a number of covenants of Climax to prevent the water quality <br />contamination of Clinton Gulch Reservoir. The Parties agree that the terms of the Reservoir <br />43169 <br />2/11/11