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2. Agreement to Trade Real Property. As additional consideration for entering into this <br />Lease and Contract, Lessor hereby agrees to trade Lessor's surface and improvements on the above <br />described 52 acres (Parcel A, constituting the surface rights appurtenant to the Leased Coal, and <br />transferred by Attachment A hereto) for the surface rights and associated improvements on about <br />160 acres of land (Parcel B, transferred by Attachment B hereto) situated in: <br />Section 25. T47N R16W, N M P M <br />(i) E1/2 SW1 /4 a.k.a. San Miguel property, conditional on its sale to the Lessee by San <br />Miguel Power Association. <br />(ii) W1/2 SW1 /4 a.k.a. Rice Tract, owned by Lessee but subject to waiver of the `first <br />right of refusal to purchase" from Don and Mariana Rice. <br />Lessee will give Lessor a warranty deed to the surface property traded to Lessor subject only to <br />items specified in this lease and other (if any) right -of -way, easements, leases, encumbrances, <br />reservations and exceptions which are of current public record. Lessor, after transfer of Parcel B <br />specifically, agrees to allow Lessee to complete the currently ongoing reclamation work in Parcel B <br />as required by the Colorado Division of Minerals & Geology or any successor entity. Lessor grants <br />Lessee a right -of- access to accomplish this work. Lessee will be allowed to complete required <br />reclamation work, including without limitation, inspection of vegetation, reseeding, weed control, <br />hydrological testing and control, etc. until Lessee's reclamation bond on the Parcel B property is <br />released by the state agency. <br />Lessee will provide at its expense a complete abstract of title or title insurance commitment as <br />Lessor shall select brought down to current date showing title to Parcel B in Lessee's name, <br />sufficient in extent and legal quality to grant Parcel B and rights specified in this contract. <br />Lessee, following whatever procedures are required by the Colorado Cooperative Ditch Company, <br />will also transfer its 27 shares of stock in the Colorado Cooperative Ditch Company to Lessor. <br />Lessor, following whatever procedures are required by that company, will transfer its 21 shares of <br />stock in the Colorado Cooperative Ditch Company to Lessee. Any other water rights associated with <br />the exchanged properties (e.g., springs, wells or seep usage) will be part of the trade of the surface <br />rights involved in the property trade. <br />The closing on the transfer of property shall be at the same time as the initial lump sum royalty <br />payment providled for in section 3, below, provided that all necessary preconditions to the transfer, <br />including those in paragraphs (i) and (ii) above and all title verifications, have been met prior to that <br />time. The transfer shall take place by the exchange of warranty deeds in the forms attached as <br />Attachments A and B hereto. <br />2 <br />