NOVATION AGREEMENT
Agreement made March 18, 1996, between Xxxxxxx X. Xxxx (and Xxxxx XxXxxxxx,
XxXxxxxx being the Lessor/Optionor as to the Mascott Lode claim only)
(collectively "Xxxx"), original party, and Durango Metals, Inc. ("Durango"),
discharged party, and Island Investment Corporation ("Island"), substituted
party.
The parties stipulate and recite that:
Xxxx and Durango entered into a contract referred to as
the "original mining lease" on November 9, 1992, that
provided that Xxxx would be Lessor and that Durango
would be Lessee under the mining lease with certain
obligations to Xxxx under the terms of the said
original mining lease.
Durango desires to be discharged from the performance
of the obligations enumerated in the original mining
lease.
Xxxx desires to release Durango from obligations as
described in the original mining lease provided that
Island agrees to perform the obligations and to be
bound by the terms of the said original mining lease.
For the reasons recited above, and in consideration of the mutual covenants
contained herein, the parties agree as follows:
1. Island shall perform the obligations of Durango that
are enumerated under the original mining lease, and
Island agrees to be bound by all the terms of the
original mining lease in every way as if an original
party thereto.
2. Xxxx hereby releases Durango from all claims for any
liability that has arisen or may have arisen in respect
to the original mining lease. Xxxx accepts the
liability of Island in lieu of the liability of
Durango. Xxxx shall be bound by the terms of the
original mining lease in every way as if Island was
named in the original mining lease in place of Durango
as a party thereto.
3. This Agreement supersedes the original mining lease
entered into by Xxxx and Durango, and all the rights
and obligations under the original mining lease are
completely extinguished. A copy of the original mining
lease is attached and incorporated by reference to
define the extent of the liability of Island under this
Agreement.
4. This Agreement has been executed in triplicate, and all
parties to this Agreement have received a signed copy
of it.
5. Xxxx, Durango, and Island consent to all the provisions
of this Agreement.
6. Xxxx and Island agree that upon execution of this
Novation Agreement they will then promptly execute a
lease to discharge and supersede the original mining
lease referred to as the New Mining Lease for a new
ten-year term plus options, which New Lease is attached
and incorporated by reference to define the entire new
lease relationship between them.
IN WITNESS WHEREOF, the parties have executed this Agreement in Golden,
Colorado, the day and year first above written.
XXXXXXX X. XXXX DURANGO METALS, INC
Lessor Discharged Party/Original Lessee
By /s/ Xxxxxxx X. Xxxx By /s/ Thames X. Xxxxxxx
-------------------------------- -------------------------------
Xxxxxxx X. Xxxx Thames X. Xxxxxxx President
000 Xxxxx Xxxxxx 0000 Xxxxxxxx Xxxxx
Xxxxxx Xxxxxxxx 00000 Xxxxxxx, Xxxxxxxx 00000
XXXXX XxXXXXXX ISLAND INVESTMENT CORPORATION
By /s/ Xxxxx XxXxxxxx By /S/Xxxxxx Xxxxxxxx
--------------------------------------- -------------------------------
Xxxxx XxXxxxxx Xxxxxx Xxxxxxxxx, President
X.X. Xxx 000 0000 Xxxxxxxxxx Xxxxxx
Xxxxxxxxx, Xx. 00000 Xxxxxx, Xxxxxxxx 00000
VERIFICATION
On this 18th day of March, 1996, before me appeared Xxxxxxx X. Xxxx known
to me to be Xxxxxxx X. Xxxx, who executed the above and foregoing Novation
Agreement of his voluntary and free act.
Subscribed and sworn to before me this 18th day of March, 1996, by Xxxxxxx
X. Xxxx.
/s/Xxxxx X. Xxxxxx
--------------------------------
Notary Public
My commission expires: August 30, 1999
2
My commission expires: August 30, 1999
3
VERIFICATION
On this 18th day of March, 1996, before me appeared Thames X. Xxxxxxx,
President of Durango Metals Inc., known to me to be Thames X. Xxxxxxx, President
of the said firm, who executed the above and foregoing Novation Agreement on
behalf of Durango Metals, Inc. as his voluntary and free act.
Subscribed and sworn to before me this 18th day of March,
1996, by Thames X. Xxxxxxx.
/s/Xxxxx X. Xxxxxx
------------------------
Notary Public
My commission expires August 30, 1999.
VERIFICATION
On this 18th day of March, 1996, before me appeared Xxxxx XxXxxxxx, known
to me to be Xxxxx XxXxxxxx, who executed the above and foregoing Novation
Agreement of his voluntary and free act.
Subscribed and sworn to before me this 18th day of March, 1996, by Xxxxx
XxXxxxxx.
/s/Xxxxx X. Xxxxxx
-------------------------
Notary Public
My commission expires August 30, 1999.
VERIFICATION
On this 18th day of March, 1996, before me appeared Xxxxxx Xxxxxxxxx,
President of Island Investment Corporation, known to me to Xxxxxx Xxxxxxxxx,
President of the said firm, who executed the above and foregoing Novation
Agreement of his voluntary and free act.
Subscribed and sworn to before me this 18th day of March, 1996, by Xxxxxx
Xxxxxxxxx.
/s/Xxxxx X. Xxxxxx
-------------------------
Notary Public
My commission expires August 30, 1999.
