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EASEMENT AGREEMENT <br />Douglas G. Thacker whose legal address is 2977 40`s Lane, Avondale, CO 81002, (hereinafter referred to <br />as "Grantor"), does hereby grant an easement for a specified period of time unto Fremont Paving & <br />Redi-Mix Inc. (hereinafter referred to as "Grantee") whose legal address is 839 MacKenzie Avenue, <br />Carlon City, CO 81212 described as existing within and across the following described property of <br />Grantor: <br />The Northeast % of Section 34, Township 21 South, Range 63 West of the 6`i' Prime Meridian, <br />Pueblo County, CO. <br />The specific location of the easement will be determined by mutual agreement of the parties, <br />and attached hereto as Exhibit A. Said easement shall be limited in width to no more than 60 <br />feet and shall be used exclusively by Grantee as a'haui road' for movement of sand and gravel <br />mined materials and all activities associated with sand and gravel mining, from its mining project <br />located in portions of Sections 19 and 30 of Township 21 South, Range 62 West and Sections 24 <br />and 25, Township 21 South, Range 63 West to State Highway X. <br />Term of Easement: The easement shall be granted unto Grantee for the economic life of the mine and <br />shall terminate on the date site reclamation is approved and bored released by CO Division of <br />Reclamation, Mining and Safety; or at such time as Grantee determines in its sole discretion there is no <br />economic value to continuing to mine. Grantee shall provide ninety (90) days written notice of its intent <br />to terminate this agreement, which notice shall be accompanied by payment of as consideration <br />for the right to terminate. Grantee shall have forty-five (45) days after the termination date to reclaim <br />all areas of the easement used or disturbed, and during that time period shall have the right to access <br />the easement area with equipment required to reclaim the easement area. <br />Easement Construction and Maintenance: Grantee, at its sole expense, shall construct, operate, use, <br />maintain and repair the haul road. The road will be constructed so as not to interfere with historic flows <br />of the natural surface drainage nor existing irrigation structures. Grantee shall and does hereby <br />indemnify and save Grantor harmless form all claims of any kind for damages or liens arising from the <br />operation, use, surveying, construction, repair, maintenance and snow plowing by grantee over and on <br />the easement. <br />Grantor Compensation: Grantor shall receive an annual fee of each year due on the <br />anniversary date of this agreement to compensate Grantor for granting right of access to Grantee, and <br />shall also receive compensation equal to$ per ton for mined material, or mined and processed <br />material transported across Grantor's pro pertyto the public highway from the gravel pit, as just <br />compensation for damages and loss of use of the granted property, said amount to be accounted for <br />and paid monthly by Grantee. Production reports calculated from certified scales will be available upon <br />request. <br />Final Land Use: Grantor and Grantee will determine final land use and subsequent reclamation upon <br />termination of the mine. If no agreement is reached, easement shall be returned to its natural state as <br />exists on date agreement is executed. <br />Assignability and Legal Effect: The easement cannot be assigned by either party without the written <br />consent of the other party, which shall not be unreasonably withheld. The easement agreement shall be <br />r,� <br />