ASSIGNMENT OF CONTRACTUAL WATER RIGHT
After Recording, Return To:
Crown Mines, L.L.C.
P. O. Xxx 000000
Xxxxxx, Xxxxx 75374-3547
ASSIGNMENT OF CONTRACTUAL WATER RIGHT
This Assignment of Contractual Water Right (this “Assignment”) is entered into between CROWN MINES, L.L.C., a Texas limited liability company, with an address of P. X. Xxx 000000, Xxxxxx, Xxxxx 00000-0000 (“Crown Mines”), and DEER TRAIL MINING COMPANY, L.L.C., a Nevada limited liability company, with an address of 8880 Rio San Diego Drive, 8th Floor, Xxx Xxxxx, Xxxxxxxxxx 00000 (“DTMC”), this 30th day of July, 2007 (“Effective Date”). Crown Mines and DTMC may be referred to herein individually as a “Party” and collectively as the “Parties.”
RECITALS
A.
Crown Mines owns a contractual right to use water diverted under Water Right No. 63-3043 as evidenced and described in the Agreement between Cottonwood Irrigation Company and Deer Trail Development Corporation, dated July 28, 1977 (the “Contractual Right”), a copy of which is attached to this Agreement as Exhibit A.
B.
Concurrently with the Effective Date, Crown Mines conveyed to DTMC certain patented and unpatented mining claims and mill sites and dumps situated in Piute County, State of Utah, described in the attached Exhibit B (the “Claims”).
C.
DTMC desires to use the Contractual Water Right in its operation of the Claims.
D.
Crown Mines is willing to assign to DTMC one-half of its interest in the Contractual Water Right and concurrently with the Effective Date, Crown Mines has leased the remaining one-half of its interest in the Contractual Water Right to DTMC through that certain Water Rights Lease and Water Pipeline Easement Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of their mutual covenants and promises described herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:
1.
Recordation of Agreement. This Agreement may be recorded by a Party with any governmental agency, including in the offices of the County Recorder of Piute County, Utah, and Xxxxxx County, Utah
1
2.
Lease of Water Right and Pipeline. Crown Mines hereby assigns one-half of its interest in the Contractual Water Right to DTMC for purposes consistent with the approved uses of the Water Right and subject to the limitations set forth in the Agreement between Cottonwood Irrigation Company and Deer Trail Development Corporation, dated July 28, 1977, Exhibit A hereto.
3.
Acceptance of Assignment, Representation and Warranty of Compliance, and Agreement to Indemnify. DTMC hereby accepts the assignment by Crown Mines of one-half of Crown Mine’s interest in the Contractual Water Right, and DTMC represents and warrants that it shall at all times comply with the covenants and restrictions set forth in the Agreement between Cottonwood Irrigation Company and Deer Trail Development Corporation, dated July 28, 1977, Exhibit A hereto, as if it were a party thereto and that it shall indemnify Crown Mines, its officers, directors, employees, agents and assigns, for any breach by DTMC, or its officers, directors, employees, agents and assigns of such covenants or restrictions.
4.
Filing of Change Applications Restricted. DTMC shall not file any permanent or temporary change applications on the Contractual Water Right without the express prior written consent of Crown Mines, which consent may be withheld by Crown Mines if Crown Mines, in its sole but reasonable discretion, determines that such change application could jeopardize the Contractual Water Right or the underlying Water Right No. 63-3043 .
5.
Notices. All notices, payments and other required communications (“Notices”) to the Parties shall be in writing, and shall be addressed as follows:
If to Crown Mines:
Crown Mines, L.L.C.
P. O. Xxx 000000
Xxxxxx, Xxxxx 00000-0000
With a Copy to:
Xxxxxxx X. Xxxxxxxx
Xxxxxxx Xxxxxx L.L.P.
000 Xxxx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxx 00000
If to DTMC:
Deer Trail Mining Company, L.L.C.
0000 Xxx Xxx Xxxxx Xxxxx, 0xx Xxxxx
Xxx Xxxxx, Xxxxxxxxxx 00000
With a Copy to:
Xxxxxx X. Xxxxxxxxx, Esq.
00 Xxxx Xxxxx Xxxxxx, Xxxxx 0000
Xxxx Xxxx Xxxx, Xxxx 00000
All Notices shall be given by personal delivery, by electronic communication or facsimile, with a confirmation sent by registered or certified mail return receipt requested, or by commercial courier service. All Notices shall be effective and shall be deemed delivered on the date of delivery if delivered during normal business hours, and if not delivered during normal business hours, on the next business day following delivery. A Party may change its address by Notice to the other Party.
2
6.
Authority. Crown Mines and DTMC represents and warrants to the other that its undersigned officer has been duly authorized and has the power and authority to execute this Agreement on its behalf.
7.
Successors and Assigns. This Agreement and the covenants contained herein shall be binding upon and inure to the benefit of the Parties, their successors and assigns.
IN WITNESS WHEREOF, the parties have caused this Agreement to be properly executed by persons thereunto duly authorized for the purposes therein stated.
EXECUTED as of the date first above written.
DEER TRAIL MINING COMPANY, L.L.C.,
CROWN MINES, L.L.C.,
a Nevada limited liability company
a Texas limited liability company
By: _/s/ Xxxx X. Lopez___________
By: _/s/ I.N. Fehr_______________
Its: _Manager___________________
Its: _________________________
3
STATE OF CALIFORNIA
)
: ss.
COUNTY OF
SAN DIEGO
)
The foregoing instrument was acknowledged before me this 31 day of July, 2007, by Xxxx X. Xxxxx, Manager of DEER TRAIL MINING COMPANY, L.L.C., a Nevada limited liability company.
[NOTARY SEAL]
_/s/ Xxxxxx X. Harris___________
Notary Public
STATE OF TEXAS
)
: ss.
COUNTY OF
DALLAS
)
The foregoing instrument was acknowledged before me this 30th day of July, 2007, by I.N. Xxxx, the President of CROWN MINES, L.L.C., a Texas limited liability company.
[NOTARY SEAL]
_/s/ Xxxxxx X. Bartos____________
Notary Public
4
EXHIBIT A
To Assignment of Contractual Water Right
Agreement between Cottonwood Irrigation Company and
Deer Trail Development Corporation, dated July 28, 1977
5
![[f1551001.jpg]](https://www.sec.gov/Archives/edgar/data/1110737/000102317507000224/f1551001.jpg)
6
![[f1551002.jpg]](https://www.sec.gov/Archives/edgar/data/1110737/000102317507000224/f1551002.jpg)
7
![[f1551003.jpg]](https://www.sec.gov/Archives/edgar/data/1110737/000102317507000224/f1551003.jpg)
8
![[f1551004.jpg]](https://www.sec.gov/Archives/edgar/data/1110737/000102317507000224/f1551004.jpg)
9
![[f1551005.jpg]](https://www.sec.gov/Archives/edgar/data/1110737/000102317507000224/f1551005.jpg)
10
EXHIBIT B
TO ASSIGNMENT OF CONTRACTUAL WATER RIGHT
PART 1
Crown Mines L.L.C. Claims Purchased by Deer Trail Mining Company, L.L.C.
Patented Claims Located in Piute County, Utah
CLAIM NAME |
| MINERAL SURVEY NUMBER |
CLIFF |
| MS 00 |
XXXX XXXXX |
| XX 42 A |
DEER TRAIL | #01 | MS 0000 X |
XXXX XXXXX | #00 XXXXXXXX | XX 0000 X |
XXXX XXXXX | #00 | XX 0000 X |
XXXX XXXXX | #00 XXXXXXXX | XX 0000 X |
XXXX XXXXX | #00 | XX 0000 X |
XXXX XXXXX | #00 XXXXXXXX | XX 0000 X |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX | #00 | XX 0000 X |
XXXX XXXXX | #00 XXXXXXXX | XX 0000 X |
XXXX XXXXX | #00 | XX 0000 X |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX | #00 | XX 0000 |
XXXX XXXXX XXXX. |
| XX 0000 |
XXXX XXXXX XXXXXXXX |
| XX 42 B |
XXXXXX & XXXXXXXX |
| MS 52 A |
*XXXXXX & FERSUSON MILLSITE | MS 52 B | |
GREEN EYED MONSTER |
| MS 43 A |
MONSTER APEX |
| MS 5972 |
MONSTER APEX #2 |
| MS 5972 |
PLUTO |
| MS 46 |
SPHINX |
| MS 6397 |
TOTAL CLAIMS 32
*XXXXXX & XXXXXXXX MILLSITE MINERAL RIGHTS ONLY
11
EXHIBIT B
To Water Rights Lease and Water Pipeline Easement Agreement
PART II
Crown Mines L.L.C. Claims Purchased by Deer Trail Mining Company, L.L.C.
Unpatented Claims Located in Piute County, Utah
CLAIM NAME | RECORDED BOOK | RECORDED PAGE | AMENDED BOOK PAGE | BLM SERIAL NUMBER |
APEX XXXX | X | 000 |
| 00000 |
XXXXXXX | X | 423 |
| 95580 |
BUSTER | G | 459 |
| 95585 |
BUSTER XX.0 | X | 000 |
| 00000 |
XXXXXX XX.0 | X | 000 |
| 00000 |
XXXXXX NO.3 | G | 461 |
| 95588 |
BUSTER XX.0 | X | 000 |
| 00000 |
XXXXXX XX.0 | X | 000 |
| 00000 |
XXXXXX XX.0 | X | 000 |
| 00000 |
XXXXXX XX.0 | X | 000 |
| 00000 |
XXXXXX XX.0 | X | 000 |
| 00000 |
XXXXXX XX.0 | X | 000 |
| 00000 |
XXXXXXXXX XXXX | X | 000 |
| 00000 |
XXXXXXXX XXXX | D | 584 |
| 95599 |
CLIFF XX. 0 | X | 000 |
| 00000 |
XXXXX XX. 0 | X | 372 |
| 95601 |
CLIFF XX. 0 | X | 000 |
| 00000 |
XXXXX XX. 0 | X | 373 |
| 95603 |
CLIFF XX. 0 | X | 000 |
| 00000 |
XXXXX XX. 0 | X | 373 |
| 95605 |
CLIFF XX. 0 | X | 000 |
| 00000 |
CLIFF XX. 0 | X | 000 |
| 00000 |
XXXXXXXXX XXXX | X | 586 |
| 95608 |
CREST LODE | D | 452 |
| 00000 |
XXXX XXXXX XXX. | C | 250 |
| 00000 |
XXXX XXXXX XXX. NO. 01 | C | 250 |
| 00000 |
XXXX XXXXX XXX. NO. 02 | C | 250 |
| 00000 |
XXXX XXXXX XXX. NO. 03 | C | 251 |
| 00000 |
XXXX XXXXX XXX. NO. 04 | C | 251 |
| 00000 |
XXXX XXXXX XXX. NO. 05 | C | 252 |
| 00000 |
XXXX XXXXX XXX. NO. 06 | C | 252 |
| 00000 |
XXXX XXXXX XXX. NO. 07 | C | 253 |
| 00000 |
XXXX XXXXX XXX. XX. 00 | X | 000 |
| 00000 |
00
XXXX XXXXX XXX. NO. 09 | C | 253 |
| 00000 |
XXXX XXXXX XXX. NO. 10 | C | 254 |
| 00000 |
XXXX XXXXX XXX. NO. 11 | C | 254 |
| 00000 |
XXXX XXXXX XXX. NO. 12 | ll | 710 | JJ 65 | 000000 |
XXXX XXXXX XXX. NO. 13 | ll | 711 |
| 000000 |
XXXX XXXXX XXX. NO. 14 | ll | 772 |
| 000000 |
XXXX XXXXX XXX. NO. 15 | ll | 713 |
| 000000 |
XXXX XXXXX XXX. NO. 24 | ll | 722 |
| 000000 |
XXXX XXXXX XXX. NO. 25 | ll | 723 |
| 000000 |
XXXX XXXXX XXX. NO. 26 | ll | 724 |
| 000000 |
XXXX XXXXX XXX. NO. 27 | ll | 725 |
| 000000 |
XXXX XXXXX XXX. NO. 28 | ll | 726 |
| 000000 |
XXXX XXXXX XXX. NO. 29 | ll | 727 |
| 000000 |
XXXX XXXXX XXX. NO. 30 | ll | 728 |
| 000000 |
XXXX XXXXX XXX. NO. 31 | ll | 729 |
| 000000 |
XXXX XXXXX XXX. NO. 32 | ll | 730 |
| 000000 |
XXXX XXXXX XXX. NO. 33 | ll | 731 |
| 000000 |
XXXX XXXXX XXX. NO. 34 | ll | 732 |
| 000000 |
XXXX XXXXX XXX. NO. 35 | ll | 733 |
| 000000 |
XXXX XXXXX XXX. NO. 36 | ll | 734 |
| 000000 |
XXXX XXXXX XXX. NO. 37 | ll | 735 |
| 000000 |
XXXX XXXXX XXX. NO. 38 | ll | 736 |
| 000000 |
XXXX XXXXX XXX. NO. 39 | ll | 737 |
| 000000 |
XXXX XXXXX XXX. NO. 40 | ll | 738 |
| 000000 |
XXXX XXXXX XXX. NO. 41 | ll | 739 |
| 000000 |
XXXX XXXXX XXX. NO. 42 | ll | 740 |
| 000000 |
XXXX XXXXX XXX. NO. 43 | ll | 741 |
| 000000 |
XXXX XXXXX XXX. NO. 44 | ll | 742 |
| 000000 |
XXXX XXXXX XXX. NO. 45 | ll | 743 |
| 000000 |
XXXX XXXXX XXX. NO. 46 | ll | 744 |
| 000000 |
XXXX XXXXX XXX. NO. 47 | ll | 745 |
| 000000 |
XXXX XXXXX XXX. NO. 48 | ll | 746 |
| 000000 |
XXXX XXXXX XXX. NO. 49 | ll | 747 |
| 000000 |
XXXX XXXXX XXX. NO. 50 | ll | 748 |
| 000000 |
XXXX XXXXX XXX. NO. 51 | ll | 749 |
| 000000 |
XXXX XXXXX XXX. NO. 52 | ll | 750 |
| 354022 |
DEER TRAIL NO. 11 | A | 135 |
| 00000 |
XXXX XXXXX NO. 12 | A | 142 |
| 00000 |
XXXX XXXXX NO. 13 | A | 142 |
| 00000 |
XXXX XXXXX NO. 14 | A | 143 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | A | 144 |
| 95617 |
00
XXXX XXXXX XX. 00 | A | 144 |
| 00000 |
XXXX XXXXX NO. 18 | A | 145 |
| 00000 |
XXXX XXXXX NO. 19 | A | 145 |
| 00000 |
XXXX XXXXX NO. 21 | 24 | 114 |
| 95621 |
DEER TRAIL NO. 22 | 24 | 114 |
| 95622 |
DEER TRAIL NO. 23 | 24 | 115 |
| 95623 |
DEER TRAIL NO. 24 | 24 | 116 |
| 95624 |
DEER TRAIL NO. 25 | 24 | 117 |
| 95625 |
DEER TRAIL NO. 26 | 24 | 117 |
| 95626 |
DEER TRAIL NO. 27 | 24 | 118 |
| 95627 |
DEER TRAIL NO. 28 | 24 | 119 |
| 95628 |
DEER TRAIL NO. 29 | 24 | 120 |
| 95629 |
DEER TRAIL NO. 31 | 1 | 599 |
| 95630 |
DEER TRAIL NO. 32 | 24 | 122 |
| 95631 |
DEER TRAIL XX. 00 | X | 00 |
| 00000 |
XXXX XXXXX XX. 00 | X | 100 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | X | 101 |
| 00000 |
XXXX XXXXX NO. 43 | B | 245 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | X | 247 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | X | 246 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | X | 322 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | X | 323 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | X | 324 |
| 00000 |
XXXX XXXXX NO. 54 | B | 324 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | G | 227 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | G | 229 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | G | 230 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | G | 231 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | G | 233 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | G | 234 |
| 95659 |
00
XXXX XXXXX XX. 00 | G | 234 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | G | 235 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXX XXXXX XX. 00 | G | 237 |
| 00000 |
XXXX XXXXX XX. 00 | X | 000 |
| 00000 |
XXXXXX XXXX | X | 584 |
| 95681 |
FIRE FLY LODE | D | 584 |
| 95682 |
GOLDEN XXXXX XXXX | X | 000 |
| 00000 |
XXXXX XXXX | X | 453 |
| 95697 |
GRAND VIEW XXXX | X | 000 |
| 00000 |
XXXXXX TREASURE AMENDED | D | 589 |
| 95701 |
XXXXXXX XXXX | D | 587 |
| 95705 |
XXXXXXX | X | 000 |
| 00000 |
XX XXXXXX | D | 587 |
| 95707 |
XXXXX PLACER | N | 000 |
| 00000 |
LOWER CONTACT | D | 000 |
| 00000 |
MONSTER #3 | B | 123 |
| 95719 |
MONSTER #4 | B | 123 |
| 95720 |
MONSTER #5 | B | 124 |
| 95721 |
MONSTER #6 | B | 124 |
| 95722 |
MONSTER #7 | B | 125 |
| 95723 |
MONSTER #8 | B | 125 |
| 95724 |
MONSTER #9 | B | 126 |
| 95725 |
MOUNTAIN CHIEF AMENDED | D | 589 |
| 95726 |
MOUNTAIN CHIEF XX. 0 | X | 000 |
| 00000 |
MOUNTAIN CHIEF XX. 0 | X | 000 |
| 00000 |
XXX XXXXXXX XXXX | X | 464 |
| 95747 |
OLD CHANNEL LODE XX. 0 | X | 00 |
| 00000 |
XXXXXXXXX XXXX | X | 588 |
| 95742 |
PORTAL XXXX | X | 000 |
| 00000 |
XXXXXX XX. 0 | X | 00 |
| 00000 |
XXXXXX XX. 0 | X | 00 |
| 00000 |
XXXXXX XXXX | X | 585 |
| 95729 |
RED XXXXX XXXX | X | 000 |
| 00000 |
XXXXX XXXXX | X | 464 |
| 95735 |
SILVER WEDGE | D | 422 |
| 95737 |
SLOPE XX. 0 | X | 000 |
| 00000 |
XXXXX XX. 0 | X | 000 |
| 00000 |
XXXXX XX. 0 | X | 000 |
| 00000 |
00
XXXXX XX. 0 | X | 00 |
| 00000 |
XXXXX XX. 0 | X | 000 |
| 00000 |
XXXXX XX. 0 | X | 000 |
| 00000 |
XXXX XXXX XXXX | X | 583 |
| 95760 |
XXXXXX PLACER | N | 126 |
| 95763 |
TAMARAC XXXX | X | 000 |
| 00000 |
XXX XXXX XXXX | X | 588 |
| 95732 |
TOMAHAWK XXXX | X | 000 |
| 00000 |
XXXXX XXXX | D | 587 |
| 95768 |
VICTORY LODE | D | 586 |
| 95771 |
WHITE FLINT LODE | D | 423 |
| 95776 |
WILD CAT XXXX | X | 000 |
| 00000 |
XXXXXXXX LODE | D | 451 |
| 95759 |
|
|
|
|
|
|
|
|
|
|
TOTAL CLAIMS | 170 |
|
|
|
16
