2011-12-21_PERMIT FILE - M2011033 (2)

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• • 4. QVERRiDiNG ROYALTY LIMITATIONS — R is agreed due this lease or any subsequent assigwnt hereof shall not be burdened with overriding royalties the agate of which exceeds two percent (2%) of the gross value of the material at tier 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, SS1GNMMENr — Lessee, with the written consent of Lessor. may assign this lease as to the leasehold intermit of Lam in all or part of the lands covered hereby, net less, however, than tracts of apptostmatedy forth ( sera, or governmental lots corresponding to a quara .quarter section for partial assignment. For approval of such assignment Lessor may charge an assignment foe in to amount woolly in effect at the time of the auigoesent. If as assignment of a put of this lease is approved, a now lease designated as an asaigmneat will be issued to the assignee covering the lands assigned for the balance of the tam of the base lease on the mining tease form in use at the tune of assignment and limited as to taps_ IS said lease is limited. The assignor will be released and discharged from all further obligations for such lands assigned, as if the same had neva been a pan of this tease. 5. No assignment or transfer of this lease will be held valid by Lessor unless made with as cossets in writing and duly entered in Use books or records of Lessor. Assignment Cons — The consideration for approval of assignment by Lessor shall bejes. percent ( 1� % ) of the value of any consideration tendered to Assignor by Assignee for the assignment. Divulgence of the value of these eonsiiderations shall be mandatory. In affidavit form. which form shall be presented to Lessor along with the other as instruments in order to obtain Lessor's approval for the assignnnem. An assignment does not constitute a new lease but Is a continuations 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 i pexiateru, and all monies paid to Lessor shall be forfeited to Lessor. In addit ion, the current statutory fees will be paid at the time the assignment record form is submitted. 6. AGREEMENTS OUT" IDE 7114 TERMS OF THIS L E » No assiounte t of undivided interests or retention or rewvation of overriding royalties will be recognized or approved by Lessor; a till 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 leasw, and no dispute between panics to any such assignment or reservation shall operate to relieve Lessee from performance of any toms or conditions hereof or to promisee 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 tauter and conditions hereof. Although not binding on Lessor, ail instruments of every kind and nature whatsoever, including but not limited to sublease agreements sad 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 confid_ _ tiai as coesisteot within the law. 7. COMPLIANCE WMt RECI.1J.ATiONS — Lessee covenants and agrees that daring the eartinuanee of this lease he will fully comply with all of the provisions, terms and awoditions of all laws, whether Federal. State, or Local, and orders issued thereunder, which may be in effect during the oontamance hereof rdeting to the operations of Lessee under this lease, and the atarltetipg of any product thereof, or labor relations in connection with such operations or marketing. Page 3of