2015-12-07_GENERAL DOCUMENTS - M1974132

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GRAVEL LEASE AGREEMENT This Agreement is made this c291:1" day of August, 1999, by and between James K, Dukes, Paul Holmes, B. Eugene Berry and John W. Mecom, Jr., hereinafter collectively referred to as "Lessor" and United Companies of Mesa County, Inc., a Colorado corporation, 618 Dike Road, Grand Junction, Colorado 81503, hereinafter referred to as "Lessee." Lesser, in consideration of the agreements set forth herein to be kept and performed by Lessee, and the payment of royalties by Lessee as provided herein, and subject to the terms, conditions, and provisions contained herein, leases to Lessee that certain tract of land situatein the County of Rio Blanco, State of Colorado, more particularly described on Exhibit A, attached hereto and incorporated herein by reference, for the sole purpose of quarrying, mining; removing and marketing therefrom all sand, gravel, rock, and/or dirt which are herein referred to as "materials," and the operation of a ready -mix concrete and/or asphaltic concrete business or any other business whose primary, activity is the utilization of concrete and/or asphaltic concrete products. I. TERMS OF LEASE This Lease shall be in effect for a term commencing on the 1" of August, 1999, and continuing until July 31, 2004. II. ROYALTIES Lessee shall pay to Lessor, as royalty, the sum of $.50 (50 cents) for each ton of materials removed from the premises. The quantity shall be determined after the materials are loaded in trucks. Lessee guarantees that royalties payable to Lessor for each year that this Lease is in effect shall not be less than Two Thousand Five Hundred Dollars ($2,500.00). Lessee agrees to pay such amount in advance at the beginning of each year this Lease is in effect,,commencing upon execution hereof, and thereafter on or before August 1 of each succeeding year. Royalties for materials removed shall be credited against the advanced royalties until the entire amount is offset by such credits. If, in any lease year, Lessee fails to remove as much material as has been paid for by the advance payment of guaranteed royalties, the excess of such payment of guaranteed royalties shall remain Lessor's and shall not be refundable or applied as payment for materials removed in any prior or subsequent year. Commencing August 1, 2000, the royalty rate to be paid for sand, gravel, and related materials removed from the leased premises shall be adjusted at one-year intervals to reflect the change in the purchasing power of the dollar. Such adjustment shall be on the following basis.