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<br />EXHIBIT N <br />SOURCE OF LEGAL RIGHT TO ENTER <br />ROYALTY AGREEMENT <br />THIS AGREEMENT, this 28"' day of June 2001, by and between Asphalt Constructors, Inc., a <br />Colorado Corporation, hereinafter referred to as ACI (First Party) and Doug McDonald, hereinafter <br />referred to as Owner (Second Party). <br />WITNESSETH That in consideration of the mutual covenants and agreements to be kept and <br />pertormed on the part of said parties hereto, respectively as herein stated, the said party of the first <br />part does hereby covenant and agree it shall: <br />I. ACI does hereby agree to pay royalty on any and all material removed from the mining <br />operation known as the McDonald Pit located in ALL THAT PART OF THE S'/z OF <br />THE NW'/4 AND THE N'/z OF THE SW'/< OF SECTION 21, LYING EAST <br />OF STATE HWY 112 AND NORTH OF THE LATERAL No. 1 OF THE RIO <br />GRANDE CANAL; THE S'/z OF THE NE'/4; AND ALL THAT PART OF THE <br />SE'/4 OF SECTION 21, LYING NORTH OF LATERAL No. 1 OF THE RIO <br />GRANDE CANAL, ALL IN TOWNSHIP 40 NORTH, RANGE 6 EAST OF <br />THE NEW MEXICO PRIME MERIDIAN. Royalty rate be paid at the unit <br />rate (CONFIDENTIAL). ACI is to maintain all records at their office located <br />at 7040 W HWY 160, and records shall be available for Owners review <br />upon request. <br />II. And said party of the second party covenants and agrees that it shall: <br />Owner does hereby grant a right to ingress and egress from said land for <br />the purpose of exploration for and extraction of sand and gravel. <br />III. Other terms to be observed by and between the parties: Payments are to <br />made the following month for any month in which material is removed for <br />the pit. Each check shall be accompanied by a summary of that month's <br />activity. <br />This agreement shall be binding upon the parties, their successors, assigns and <br />personal representatives. Time is of the essence on all undertakings. This agreement <br />shall be enforced under the laws of the State of Colorado. This is the entire <br />agreement. <br />