Document:

Exhibit 10.10

 

MINING LEASE

 

THIS LEASE is made and
entered into this 2 day of January, 2004 between David Q. Tognoni,
hereinafter referred to as “Lessee”, whose address is 5235 Horseshoe Bend,
Clovis, California, 93611 and Kenneth Alan Sullivan and Cherrill L. Sullivan,
hereinafter referred to as “Lessor”, whose address is Box 90, Winston, New
Mexico, 87943.

 

IT IS HEREBY UNDERSTOOD AND AGREED AS
FOLLOWS:

 

1.  PROPERTY. 
Lessor hereby leases to lessee, and Lessee hereby hires from Lessor the
property described as follows: Lessor hereby leases to lessee, and Lessee
hereby hires from Lessor the Warm Springs Beryllium Deposit, located in Socorro
County, New Mexico, described as follows: All of Special Section 2, and
access through the East 1/2 of Special Section 4, Township 8 South, Range
7 West, save and except that portion of the Real Estate conveyed previously
Quitclaimed to Commissioners of the Acequia de Canada Alamosa of Sierra County,
New Mexico. The above property description is hereinafter referred to as “The
Property” and a map of “The Property” is attached to this agreement, all
located in Socorro County, New Mexico

 

2.  TERM. 
The term of this Lease shall be for 20 years, or as long as
minerals are being mined by Lessee, and royalties are paid to Lessor. The term
year is mutually understood to mean calendar year.

 

3.  ROYALTIES & PAYMENTS.  Lessee shall pay to Lessor, a four percent
(4%) gross production royalty from the sale or disposition of minerals, metal
and materials taken from “The Property” leased to Lessee and covered by this
Lease.

 

All payments made under this
agreement shall be made to Lessor by Lessee within fifteen (15) days from
that date that the buyer makes final settlement with Lessee. Payments shall be
made either in person or to the address under which Lessor enters this
agreement. Payment made to the Lessor shall be accompanied by the sales slip
showing the basis upon which the sale has been made. All settlement sheets or
sales slips shall be marked as sold from “The Property”.

 

In consideration for this
Lease, Lessee will pay Lessor $1000 upon signing, $5,000 March 15th 2004 and a minimum annual royalty of $6,000
Jan 1st 2005, $8,000 Jan 1st 2006, $10,000 Jan 1st 2007, $12,000 Jan 1st 2008 and $12,000 Jan 1st every year there after as long as this Lease
is in effect. All minimum annual royalties shall be applied to actual
royalties.

 

4.  ACCOUNTING. 
Lessee shall keep accurate records and books of account, in accordance
with generally accepted accounting principles, covering all monies it receives
from the sale or disposal of ore (including minerals, metals, and materials and
concentrates derived therefrom) taken from “The Property”. Said records and
books of account shall be kept in the vicinity of “The Property” or at Lessee’s
principal place of business and shall be open for inspection by Lessor or
Lessor’s agent at any reasonable time during normal business hours, provided
that same does not interfere with the orderly operation of Lessee. Within sixty
(60) days after the end of the calendar year during the term of this
Lease, Lessee shall furnish Lessor with a year end statement showing the amount
of royalty paid to Lessor, how said amount was determined, records of mining
relating to tons of both waste and ore mined, and general scope of mining plan
for next calendar year.

 

5.  SURFACE AND WATER RIGHTS  Lessor or its agent shall at all times have
access, at their own liability, to all parts of the leased “The Property” and
shall have the right, at it’s sole expense to inspect all mining and milling
practices. Lessor shall have the right to take samples of all ores as long as
Lessor returns to Lessee any or all values contained in said samples. Lessee
shall have the right to use that portion of the surface and appurtenant water
rights necessary for mining and milling operations and shall have the right of
all necessary ingress to, from, and over all property leased by Lessor so long
as said uses are in conformity with State and Federal laws, rules and
regulations.

 

 

6.  INSURANCE 
Lessee shall purchase and maintain commercial liability insurance during
the term of this Lease, Lessee agrees to indemnity and hold Lessor harmless
from any and all claims or judgments for personal injuries or death of any
person or for any property damage occasioned by Lessee’s operation upon the “The
Property”, providing that Lessor shall not have been a contributing cause to
the event giving rise to such suit, claim, demands, or judgment. Lessee shall,
at all times, maintain state industrial insurance.

 

7.  CONDUCT OF OPERATIONS  All work performed by Lessee on this “The
Property” pursuant to this Lease Agreement shall be done in a good and
workmanlike manner. Lessee shall use his best efforts to extract minerals and
metals from “The Property” in a cost effective way and manner. Lessee shall use
his best efforts to sell all metals and minerals derived from the “The Property”
at the best price and upon the most favorable terms and conditions.

 

8.  TAXES 
Lessor shall pay and bear the amount of all real property taxes assessed
with respect to “The Property”. Lessee shall pay any other taxes assessed with
respect to “The Property” or the proceeds therefrom (with the exception of
federal, sate and local taxes, which are measured by net income against
Lessor).

 

9.  PROTECTION FROM LIENS AND ENCUMBRANCES  Lessee shall pay all expenses incurred by him
in his operations on “The Property” and shall allow no liens arising from any
act of Lessee to remain on or against the “The Property”. Lessor shall pay any
and all expenses incurred by him relating to “The Property” and his operations
thereon, and shall hold Lessee harmless from any lien, encumbrance, or legal
action arising from any act of Lessor.

 

10.  TITLE 
Lessor represents to Lessee that he has the right to lease “The Property”
as a whole, Lessor’s title to “The Property” is free and clear and clear of all
liens and encumbrances. Lessor has possession thereof and, the Lessor has full
right, power, and capacity to enter into this Lease Agreement upon the terms
set forth herein.

 

11.  TERMINATION.  Either the Lessor or the Lessee, in the event
the other is in default under any of the terms or covenants of this Lease
Agreement and has not, within ten (10) days after the non-defaulting party
has given the defaulting party specific notice of such default, corrected said
default, may terminate this Lease by giving written notice of such termination
to the defaulting party.

 

12.  REMOVAL OF PROPERTIES AND EQUIPMENT.  Upon termination or expiration of this Lease
Agreement, Lessee shall have six (6) calendar months from the effective
date of said termination or expiration within which to remove from “The
Property” all of this machinery, structures, facilities and other property of
every nature and description erected, placed, or situated upon. Failure by
Lessee to do so shall constitute abandonment to Lessor.

 

13.  COMMINGLING OF ORES.  There will be no commingling of ores by
Lessee from other properties. In all cases where ore is stockpiled, Lessee
shall measure ore, weigh other products, and take and analyze samples thereof.

 

14.  ASSIGNMENT. 
Lessee does have the right to assign this lease to any third party.

 

15.  AREA OF INTEREST.  Should any party to this agreement acquire
claims, or leases within a one (1) mile distance from the perimeter of “The
Property” such claims, or leases shall be subject to the same terms and
conditions of this lease.

 

16.  COMMITMENTS.  Upon termination of the Lease the Lessor
shall have the option to have Lessee reseed any roads constructed or other
areas disturbed by mining operations.

 

17.  NOTICES. 
Any notice or communication required or permitted hereunder shall be
effective when either personally delivered or mailed certified mail to the
address of record of the party receiving said notice. If the Lease is
terminated or upon expiration, Lessee shall give Lessor a recordable

 

2

 

document sufficient to
provide legal notice that Lessee can no longer assert any rights granted by
this Lease Agreement either expressed or implied.

 

IN WITNESS WHEREOF, we have
executed this Mining Lease between David Q. Tognoni and Kenneth Alan &
Cherrill L. Sullivan on the day and year first above written.

 

	
  LESSEE:

  	
   

  	
  LESSOR:

  
	
   

  	
   

  	
   

  
	
  /s/ David Q. Tognoni

  	
   

  	
  /s/ Kenneth Alan Sullivan

  
	
  David Q. Tognoni

  	
   

  	
  Kenneth Alan Sullivan

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Cherrill L. Sullivan

  
	
   

  	
   

  	
  Cherrill L. Sullivan

  

 

	
  STATE OF NEW MEXICO

  	
  )

  	
   

  
	
  COUNTY OF SIERRA

  	
  )

  	
   

  

 

Kenneth Alan Sullivan
appeared before me and executed this instrument this 2 day of January,
2004.

 

	
   

  	
   

  	
   

  	
   

  	
  /s/ ANNE POWELL

  
	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  
	
  [SEAL]

  	
   

  	
  OFFICIAL SEAL

  ANNE POWELL

  NOTARY PUBLIC

  STATE OF NEW MEXICO

  MY COMMISSION EXPIRES 8/20/05

  	
   

  	
   

  

 

	
  STATE OF NEW MEXICO

  	
  )

  	
   

  
	
  COUNTY OF SIERRA

  	
  )

  	
   

  

 

Cherill L. Sullivan appeared
before me and executed this instrument this 2 day of January 2004.

 

	
   

  	
   

  	
   

  	
   

  	
  /s/ ANNE POWELL

  
	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  
	
  [SEAL]

  	
   

  	
  OFFICIAL SEAL

  ANNE POWELL

  NOTARY PUBLIC

  STATE OF NEW MEXICO

  MY COMMISSION EXPIRES 8/20/05

  	
   

  	
   

  

 

	
  STATE OF CALIFORNIA

  	
  )

  	
   

  
	
  COUNTY OF FRESNO

  	
  )

  	
   

  

 

David Q. Tognoni appeared
before me and executed this instrument this 2 day of                                      ,
2004

 

	
   

  	
   

  	
   

  	
   

  	
  /s/ SHERYL ROSS

  
	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [Seal]

  	
   

  	
  SHERYL ROSS

  Commission # 1304187

  Notary Public—California

  Fresno County

  My Comm. Expires May 11, 2005

  	
   

  	
   

  

 

3

 

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

 

	
  State of California

  County of Fresno

  	
  }

  	
  ss.

  

 

	
  On

  	
   

  	
  1-20-04

  	
   

  	
  before me,

  	
   

  	
  Sheryl Ross Notary Public

  
	
   

  	
   

  	
  (Date)

  	
   

  	
   

  	
   

  	
  [Ilegible]

  

 

	
  personally appeared

  	
   

  	
  David Q. Tognoni.

  
	
   

  	
   

  	
  (Name(s) of Signer(s)

  

 

	
   

  	
   

  	
   

  	
   

  	
  o personally
  known to me

  
	
   

  	
   

  	
   

  	
   

  	
  x proved to me
  on the basis of satisfactory evidence

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [Seal]

  	
   

  	
  SHERYL ROSS

  Commission # 1304187

  Notary Public—California

  Fresno County

  My Comm. Expires May 11, 2005

  	
   

  	
  to be the person whose name is subscribed to the within instrument
  and acknowledged to me that he executed the same in his authorized capacity,
  and that by his signature on the instrument the person, or the entity upon
  behalf of which the person acted, executed the instrument.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WITNESS my hand and official seal.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  /s/ Sheryl Ross

  
	
   

  	
   

  	
   

  	
   

  	
  Signature of Notary PublicExhibit 10.11

 

ASSIGNMENT OF LEASE

 

For one Dollar ($1.00) and other good and
valuable consideration, the receipt of which is hereby acknowledged, David Q.
Tognoni, (“Assignor”), does hereby assign, convey and set over unto Great
Western Exploration, LLC (“Assignee”), whose legal address is
2008 Meander Road, Windsor, CO, 80550, all of his right, title and
interest in and to that certain Mining Lease dated January 2, 2004,
between Assignor and Kenneth Alan Sullivan and Cherrill L. Sullivan, upon
certain real property described in said lease which is attached hereto and
incorporated herein by reference.

 

TO HAVE AND TO HOLD the same unto the
Assignee and its assigns from this date forward for the rest of the term of
said lease, subject to the covenants, conditions and provisions therein;

 

SIGNED AND DELIVERED this 3rd day of February, 2004.

 

	
   

  	
  /s/ David Q. Tognoni 

  	
   

  
	
   

  	
  David Q. Tognoni

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ George Ann Tognoni 

  	
   

  
	
   

  	
  Witness: George Ann Tognoni

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