2015-12-07_GENERAL DOCUMENTS - M1974132

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GRAVEL LEASE AGREEMENT THIS GRAVEL LEASE AGREEMENT ("Lease") is made this Ity of idau eK �111v`200&, by and between DORCAS JENSEN, JAMES F. SHERIDAN, PAUL M. SHERIDAN, DONALD R. COPPOCK,SHIRLEY M. COPPOCK, DAVID RUDDY, SUZANNE RUDDY, ROY P. SIZEMORE and SARAH SIZEMORE , (collectively referred to as "Lessors") and United Companies of Mesa County, Inc., a Colorado corporation, 2273 River Road, Grand Junction, Colorado 81503 ("Lessee"). I. GRANT OF LEASE Lessors, in consideration of the agreements to be performed by Lessee and the payment of royalties by Lessee as provided in this Lease, and subject to the terms, conditions, and provisions contained in this Lease, lease to Lessee that certain tract of land situate in the County of Rio Blanco, State of Colorado ("Leased Property"), more particularly described on Exhibit A, attached hereto and incorporated herein by reference, for the purpose of quarrying, mining, removing and marketing all sand, gravel, rock, and/or dirt, except overburden required for reclamation, from the Leased Property (referred to as "Material"), and the operation of a crushing plant, a wash plant, a ready - mix concrete and/or asphaltic concrete plant or any other business whose primary activity is the utilization of concrete and/or asphaltic concrete products (all activity by Lessee on the Leased Property collectively referred to as "Gravel Mining Operations"). II. TERM OF LEASE The term of this Lease shall commence on the first day after Lessee has acquired all state and local licenses required to operate its Gravel Mining Operations ("Commencement Date"); Lessee agrees to obtain all permits in as expeditious a manner as possible. The term of this Lease shall be for a five-year period, unless terminated sooner pursuant to the provisions of this Lease. The first "Annual Anniversary Date" shall be one year after the Commencement Date provided above. There shall be a single five-year renewal option, which is to be exercised by Lessee serving upon Lessors, no later than ninety (90) days prior to the end of the initial five-year term, a written notice of Lessee's intention to renew the Lease for an additional five-year period. III. LESSEE'S RIGHT TO INSPECT As a condition precedent to this Lease, Lessee has the right for a thirty (30) day period following the Lease's execution to inspect the Leased Property to determine whether the depths of overburden and gravel are economically viable for extraction of the gravel. If Lessee determines that gravel extraction is not economically viable, it may terminate this Lease by giving Lessors written notice of this fact during the thirty (30) day inspection period.