2019-11-25_REVISION - M1979058 (3)

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RECEPTION#: 721529, 01/27/2012 at 10:05:36 AM, 3 OF 12' Doc Code:LEA, Kay Weinland, Routt County, CO to place a temporary asphalt batch plant at the gravel pit for use solely on Routt County projects. Purchaser warrants title to the Materials and the Premises. 4. Term of Lease. This Amended Lease Agreement shall be in effect from the Effective Date to and including March 31, 2024. Lessee shall have the option to extend the term for an additional ten(10)year period. The option shall be exercised by serving written notice of Lessee's election upon Purchaser not less than ninety(90)days prior to expiration of the initial term. If the option is exercised,all terms and conditions of this Amended Lease Agreement shall remain applicable. It is understood between the parties that this Amended Lease Agreement may be terminated by mutual agreement of the parties. In the event of such agreement, the Lessee shall have ninety(90) days from the agreement date in which to cease operations under this Amended Lease Agreement and to commence activity in order to comply with any reclamation responsibilities arising under the terms of this Amended Lease Agreement or state law or regulations and to commence removal of any stockpiled Materials. Lessee shall proceed with due diligence to complete reclamation and removal of stockpiles. 5. Royalties. a. Lessee shall pay Purchaser an annual $1,000.00 deposit fee as royalty on Materials removed by Lessee during each ensuing year. Purchaser shall retain the entire annual fee irrespective of the quantity of Materials removed by Lessee during the year. The annual fee shall be due on or before the 3rd day of May of each year in which this Amended Lease Agreement is in effect. This annual fee shall also be the royalty for the first One Thousand Dollars worth of Materials and asphalt removed at the rates set forth herein. b. After Lessee has removed One Thousand Dollars worth of Materials and asphalt from the Premises in any one year, Lessee shall pay to Purchaser, a royalty of One Dollar($1.00) for each additional cubic yard of Materials and sixty-six cents (66¢)per ton for all asphalt removed from the site during that year. The amount of Materials removed shall be calculated based on truck loads removed. End dump trucks shall be deemed to carry 10 cubic yards of Materials and belly dump trucks shall be deemed to carry 20 cubic yards of Materials. The amount of asphalt removed shall be determined by weighing the asphalt on the scales installed on the batch plant. c. Such royalties shall be payable monthly. Lessee shall maintain accurate records of the amount of Materials removed from the Premises by the Lessee pursuant to this Amended Lease Agreement and shall provide Purchaser with copies of such records on a monthly basis while Lessee is removing Materials from the Premises. d. All monthly royalty payments under this Amended Lease Agreement shall be made by Lessee to Purchaser on or before the tenth (10th) day of each month during the term of this Amended Lease Agreement for all Materials removed and asphalt hauled by the Lessee during the preceding month. Payments shall be made to Purchaser at 7785 Highland Meadows Parkway #100, Fort Collins, CO 80528. All Materials paid for by Lessee shall be removed by Lessee within one(1)year after the termination of this Amended Lease Agreement. e. Lessee agrees to keep a strict and accurate record of all Materials removed and asphalt hauled from the Premises, and Purchaser shall have the right at reasonable times of examining the mining procedures and checking the books and records of Lessee for the purpose of verifying the amount of royalties payable. 3