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5. Access Easement. As further consideration for LESSEE's agreement to enter into this
<br />Lease, LESSOR hereby agrees that it shall and hereby does grant to LEESSE a fifty foot (50') wide
<br />non - exclusive access, ingress and egress easement over and across LESSOR's real property
<br />described in Exhibit "A" attached hereto and incorporated herein by this reference (the "Encumbered
<br />Party "), to and from the Leased Property, which easement shall be for LESSEE's use in connection
<br />with its production, transportation, and general operations on the Lease Property (the "Access
<br />Easement Roadway ")
<br />6. Requisite Permits; Conditions Precedent to LESSEE's Obligations. LEESEE hereby
<br />agrees that, during the Term of this Lease and to the extent required for LESSEE's mining operations
<br />described above, it shall be responsible for obtaining all County, State and Federal permits, licenses
<br />and approvals, and for the payment of all fees and bonds necessary for its operations. LESSOR and
<br />LEESSE each hereby understand, acknowledge and agree that LESSEE's obligations under this
<br />Lease are expressly contingent upon: (1) LESSEE obtaining and maintaining during the Term of the
<br />Lease a mining permit from the Division of Reclamation, Mining and Safety, together with any and all
<br />other permits or approvals from any other Federal, State or Local agency having jurisdiction over
<br />LESSEE's mining operations, sufficient to enable LESSEE to conduct its mining, production, and
<br />distribution activities in the manner contemplated by this Lease, and (ii) in addition to any other rights
<br />LESSEE may have to terminate, LESSOR hereby agrees that in the event any of these conditions
<br />precedent should fail at any time during the Term of this Lease or within the time periods specified
<br />above, LESSEE shall have the right to terminate this Lease or within the time periods specified above,
<br />LESSEE shall have the right to terminate this Lease upon thirty (30) days prior written notice to
<br />LESSOR. LESSOR further agrees that, in the event LESSEE should terminate this Lease for failure of
<br />the contingency set forth in item (1) above, the LESSEE shall be entitled to a full and complete
<br />reimbursement from LESSOR of all Base Rent payments made by LESSEE hereunder as of the date
<br />of such termination.
<br />7. Reclamation Requirements. The LESSEE will be responsible for performing all
<br />reclamation activities required by, and within the time periods set forth in, LESSEE's mining permit
<br />issued by the Colorado Mined Land Reclamation Board, or as otherwise necessary to comply with
<br />applicable Local, State, and Federal standards, and LESSEE hereby covenants that it shall post all
<br />bonds required by its mining permit issued by the Colorado Mined Land Reclamation Board to assure
<br />satisfactory completion of all such reclamation activities, all at no expense to LESSOR. LESSEE shall
<br />hold harmless LESSOR for compliance with all reclamation, Federal and State mining laws and
<br />regulations. The LESSEE shall reserve the right of ingress /egress on the described property until such
<br />time the Division of Reclamation Mining and Safety grants LESSEE a full reclamation release.
<br />8. No Other Relationship. The LESSEE is an independent contractor and no employer -
<br />employee or agency relationship exists between the parties. The LESSEE is responsible for acts of
<br />their employees, and agents and will indemnify and hold harmless the LESSOR for any damages or
<br />injuries incurred by any party (including employee's and agents of sub - leases and sub - contractors) to
<br />the extent the same result from LESSEE's negligent operation of is activities under this Lease.
<br />9. Assignment. The rights of the LESSOR and LESSEE may not be assigned in whole or part to
<br />other parties, without consent from the other party. No change in ownership of LESSOR's interest (by
<br />assignment or otherwise) shall be binding on LESSEE until LESSEE has received actual documented
<br />notice of said change in ownership. This Lease is binding on heirs, successors and assigns of the
<br />respective parties.
<br />10. Applicable Law. All express or implied covenants of this Lease shall be subject to all
<br />Federal and State Laws, Executive Orders, Rules and Regulations, and this Lease shall not be
<br />terminated, in whole or in part, nor LESSEE held liable in damages, for failure to comply therewith, if
<br />compliance is prevented by, or if such failure is the result of any such Law, Order, Rule or Regulation.
<br />11. LESSOR'S Payment of Taxes. LESSOR agrees to pay all real and personal property
<br />taxes levied upon the Leased Premises.
<br />12. Entire Agreernent. This Lease represents the entire agreement between the parties. No
<br />additional provisions may be added unless said provisions are in writing and signed by each party.
<br />LESSOR hereby agrees that LESSEE shall have the right to record this Lease in the real property
<br />records of Huerfano County Colorado.
<br />13. No Other Materials. Except as otherwise expressly set forth herein, this Lease is not to be
<br />construed as authorization for the mining of any materials other than rock, sand, gravel and /or earth
<br />fill.
<br />14. Damage Limited. Mining operations occurring outside the lease area, shall be limited to the
<br />exchange of un -mined material for mined property. If the amount of material mined exceeds the
<br />amount under this contract, the LESSEE will be liable for the portion amount under this contract plus a
<br />penalty of 2.5 cents per ton for all excess matE ial mined. These are mitigated damages and the
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