LEASE
AGREEMENT WITH CITY OF XXXXXX, IDAHO
ASSIGNMENT
OF MINING LEASE
For
value received, Planet Resources, Inc., a Delaware Corporation, formally known
as Allied Silver Lead Company, Assignor, hereby sells, assigns and transfers to
New Planet Resources Inc., a Delaware Corporation, Assignee, all of
Assignor's right, title and interest in and to that certain lease by and
between the City of Xxxxxx, County of Shoshone, State of Idaho and Allied Silver
Lead Company, dated May 7, 198 1, a copy of which is attached hereto as Exhibit
"1andquot;.
By
reason of this Assignment, Assignor assigns to the Assignee all of its rights,
privileges and duties arising or existing under said Lease. Assignee hereby
agrees to fully and faithfully perform all of Assignor's duties and
obligations under said Lease.
Dated this ___ day of ________________, 1999.
Planet Resources, Inc.
By: /s/Hunter M.A. Xxxx
-----------------------------------------
Hunter M.A. Xxxx, President
The above Assignment is hereby accepted by Assignee.
New Planet Resources, Inc.
By: /s/X.X. Xxxxx
-----------------------------------------
X.X. Xxxxx
STATE OF TEXAS )
)ss.
County of XXXXXX )
On
this ___ day of __________, 1999, before me, the undersigned, a Notary Public in
and for the state aforesaid, personally appeared Hunter M.A. Xxxx known or
identified to me to be the President of Planet Resources, Inc., a Delaware
corporation and the officer that executed the foregoing instrument on behalf of
said corporation, and acknowledged to me that such corporation executed the
same.
IN
WITNESS WHEREOF, I have hereunto set my hand and affixed my Notary the day and
year in this certificate first above written.
Notary Public in and for the State of Texas
Residing at:
--------------------------------
My Commission expires:
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STATE OF TEXAS )
)ss.
County of XXXXXX )
On
this ___ day of __________, 1999, before me, the undersigned, a Notary Public in
and for the state aforesaid, personally appeared _________________ or identified
to me to be the Secretary of Planet Resources, Inc., a Delaware corporation and
the officer that executed the foregoing instrument on behalf of said
corporation, and acknowledged to me that such corporation executed the same.
IN
WITNESS WHEREOF, I have hereunto set my hand and affixed my Notary the day and
year in this certificate first above written.
Notary Public in and for the State of Texas
Residing at:
--------------------------------
My Commission expires:
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MINING LEASE
THIS
LEASE AGREEMENT, entered into this 7th day of May, 1981, by and between the CITY
OF XXXXXX, a municipal corporation organized under the laws of the State of
Idaho, party of the first part and hereinafter referred to as the
"LESSOR", and ALLIED SILVER LEAD COMPANY, an Idaho Corporation, having
its principal place of business within the City of Xxxxxx, County of Shoshone,
State of Idaho, party of the second part, hereinafter referred to as the
"LESSEE".
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS,
the Lessor and the Lessee on the 28th day of December, 1970, entered into that
certain letter of intent wherein the Lessor desired to lease to the Lessee the
mineral rights owned by the Lessor and situated within the exterior boundaries
of the City of Xxxxxx, Shoshone County, State-of Idaho, and which letter of
intent was later revised to a written mining lease, dated December 3,-1971; and
WHEREAS, the parties now desire to enter into a new lease;
NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
1.
The Lessor does hereby let, lease and demise to the Lessee, for the term of
Twenty-Five (25) years pursuant to Idaho Code Section 50-234, the exclusive
right and privilege in the Lessee to mine for and extract any and all minerals
which may underlie the surface of the real- property within the exterior
geographical boundaries of the City of Xxxxxx, County of Shoshone, State of
Idaho, which may be owned by said Lessor and consisting of approximately 200
total acres and shown as outlined on Exhibit and#145;A" attached hereto and
by reference incorporated herein and shall be referred to as the
"Property" or "Properties".
2.
It is understood that the Lessee and/or its assignees intend to explore and
develop the mineral rights owned by the Lessor and the Lessee jointly. In this
regard, it is specifically understood by and between the parties hereto that the
Lessee has entered into a letter of intent with Sunshine Mining Company, a
Delaware corporation, licensed to transact business within the State of Idaho,
for the exploration and development of the mining properties lying north of the
Osburn fault as defined by attached Exhibit "B", owned by the Lessor
and the Lessee and to receive from the exploration and development therefrom
certain royalties to be paid by the Sunshine Mining Company for minerals
extracted from the properties of the Lessor and the Lessee. In this regard, it
is understood and agreed by the parties hereto that in consideration of the
lease granted hereunder by the Lessor to the Lessee, that the Lessor shall be
entitled to receive twenty per cent (20%) of any and all royalty payments,
advance or otherwise, or other consideration which may be paid by the Sunshine
Mining Company or any other assignee of all or part of this Lease to the Lessee.
If and when the Lessor herein enters into any agreement for the exploration and
development of its properties south of the Osburn fault, the Lessor shall be
entitled to fifteen per cent (15%) of the returns from this property.
3.
It is understood and agreed between the Lessor and the Lessee, that the Lessor,
if it elects, shall be entitled to have one representative upon the Board of
Directors of the Lessee during the term of this lease agreement or any extension
or renewal thereof, so that the Lessor may be properly informed upon the
progress of the work to be performed by the Lessee and/or its assignee under
this agreement.
4.
It is understood and agreed by the Lessee that in accordance with Idaho Code
Section 50-234 that the-surface of said property shall to the extent provided by
said statute in no wise be interfered with or disturbed, by the Lessee in the
mining and extraction of any and all minerals which may be found within the
property herein leased by the Lessor.
5.
It is expressly understood and agreed that the Lessee may either choose to
explore and/or develop the mineral rights of the Lessor subject to this
agreement or to engage others to perform such exploration and/or development.
The Lessor hereby agrees that the Lessee shall have the right to assign this
agreement and all rights pertaining thereto.
6.
It is expressly understood and agreed by and between the Lessor and the Lessee
that all work which may be performed under the terms of this lease agreement by
the Lessee and/or its assignee, shall be performed in such a manner and at such
depths below the surface as will not cause or result in any caving or settlement
of the surface or any damage to any buildings or other structures on the surface
and situated within the exterior boundaries of the City of Xxxxxx, County of
Shoshone, State of Idaho.
7.
To the extent permitted by the Laws of the State of Idaho, the Lessee shall have
the option to renew said lease upon the same terms and conditions for an
additional term of twenty-five (25) years from the date of expiration of this
lease agreement by giving written notice of said renewal on or before 180 days
from the expiration date of this lease agreement.
8.
This lease of' subsurface minerals is intended to and does convey according
to the terms and conditions hereof to the Lessee and/or its assignee during the
term of this agreement and any renewal or extension thereof, all veins,
fissures, stringers or other mineral bearing structures' and all ores
therein containing precious or base metals, including but not limited to silver,
lead, zinc, gold and copper, together with the right to enter into the above
described property by such underground tunnels, drifts, crosscuts, laterals,
raises, winzes or other necessary or appropriate openings as in the judgment of
the Lessee and/or its assignees shall be necessary or convenient in its
exploration and/or development of the property of the Lessor.
IN
WITNESS WHEREOF, The Lessor has caused these presents to be signed by its duly
authorized Mayor and attested to by its City Clerk, and the Lessee has caused
these presents to be signed by its duly authorized President and attested
thereto by its duly authorized Secretary, the day and year first above written.
ATTEST: CITY OF XXXXXX
City Clerk Mayor
ATTEST: ALLIED SILVER LEAD COMPANY
Secretary President
