2011-08-09_REVISION - M1981185 (51)

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*° 947036 11/29/200611 34 AM Linda Daley 4 r I of 4 D R$21.00 D$0.00 ' Laplata County Clerk PERPETUAL NON PARTICIPATING PRODUCTION ROYALTY DEED For a good and valuable consideration, the receipt and sufficiency of which is hereby admitted and acknowledged, JAMES M. CLEMENTS, whose address is: 13643 baker Street, San Diego, CA, 92117 (hereinafter referred to as "Grantor "), hereby grants and conveys to AARON J. TAYLOR and SHARON R. TAYLOR, whose address is 4432 County Road 124, Hesperus, CO 81326, (hereinafter collectively referred to as "Grantee "), as tenants in common, each owning an undivided one -half interest, a perpetual, non participating production royalty on all of the Subject Minerals produced from the Premises (as those terms are hereinafter defined), in the amounts and upon the terms and conditions hereinafter set forth. Grantor and Grantee further agree as follows: 1. Definitions. The following terms shall have the meanings set forth below unless the context otherwise requires: (a) "Subject Minerals" means all metallic and non - metallic minerals of every kind and character whatsoever, precious and base, including oil, gas, and other hydrocarbons, coal, geothermal resources, carbon dioxide and other gases, and sand and gravel. (b) "Production Royalty" means the royalty payable on Subject Minerals calculated as set forth in Section 2 below. (c) 'Premises" means' those certain patented lode mining claims situate and being in the California Mining District, La•Plata County, Colorado, to -wit: NAME OF CLAIM (Patented Lode) PATENT U.S. SURVEY NUMBER Idaho Millsite 18320 Idaho Millsite No.1 18321 Idaho Millsite No.2 • 18321 Alpine 18321 Lord Kitchener 17108 Hartford 17108 Gertrude 16616 Good Hope 17124 Sunrise 17124 Cathryn 16616 Midnight 19646 Helen 195I5 Midnight 19646 Pay Day 19516 "A" Pay Day Millsite 19516'B" 2. Production Rovalty. Production Royalty payable with respect to Subject Minerals from the Premises shall be determined and calculated as follows: (a) If Grantor elects to sell Subject Minerals or ores or other products containing Subject Minerals in raw form, before any processing or beneficiation, the Production Royalty shall be equal to seven percent (7 %) of the net proceeds received by Grantor from such sale. As used herein, "net proceeds" shall mean the gross sales price less deductions for (i) actual transportation costs from the mine to the point of sale, (ii) sampling and assaying costs, and (iii) penalties imposed by the purchaser. « AaL / H et, g3z6 COLORADO LAND TITLE CO. 970 Main lwc. PM, Bo 3309 Durango Color ulo 81302 (970) 247-5464 G -5:3V.31-6