2005-03-01_REVISION - M2000016

• Permit No: M2000016
• IBM Index Class Name: Revision
• Doc Date: 3/1/2005
• Doc Name: Notice of Default
• From: Lafarge West Inc.
• To: Margaret V. Morton Robert J. Stevens and Larry L. Stevens
• Type & Sequence: AM1
• Media Type: D
• Archive: No

,/
LAFARGE
NORTH AMERICA
Construction Materials
Margaret V. Morton
Robert J. Stevens
Larry L. Stevens
P.O. Box 693
Fort Lupton, CO 80621
Re: Lease with Lafarge
Dear Ms. Morton and Gentlemen:

11J ~ +,~ ca ~ (~ e -t~-~t ~f
RECEIV~®
MAR 0 1 2005
Division of Minerals and Geology
On May 19, 1999, you entered into an Option to Lease Gravel Property and Right of First
Refusal ("Option") with Mobile Premix Concrete, Inc., which was then awholly-owned
subsidiary of Lafarge West, Inc. ("Lafarge"), and has now been merged into Lafarge. The form
of the Gravel Property Lease with Right of First Refusal ("Lease") that was the subject of the
Option was attached as an exhibit to the Option and was incorporated into it. You accepted the
initial $3000 payment from Lafarge under the Option and all of the monthly $3000 payments
during the Option term. Lafarge exercised the option to lease by letter from Duane Bollig dated
May 10, 2001, which was accompanied by a $3,000 check for the first Lease payment and by
execution versions of the Lease you agreed to when the option was signed. By the express terms
of Paragraph 3 of the Option, the Lease became effective when you received notice of exercise
of the Option. You are obligated to execute the Lease to evidence it being effective, but that
does not affect the fact that it has been effective and binding on you since May 11, 2001.
Lafarge has made all monthly Lease payments since exercising the Option and you have
accepted all of the payments and cashed the monthly checks. As of February 10. 2005, Lafarge
has paid you $210,000 in monthly option and lease payments.
Although continuing to accept Lafarge's monthly payments, you have expressed various
objections to some of the Lease terms you previously agreed to. Although Lafarge did not
believe it had any obligation to do so, Lafarge offered to restructure the Lease in certain respects
to help you address your short-term need for additional cash to pay your debts. Lafarge also
attempted to put you in contact with potential buyers who might be interested in purchasing your
property. To our knowledge. the offers made For your property by knowledgeable potential
purchasers were rejected by you. Lafarge openly discussed its Lease with each of these potential
purchasers.
As was contemplated by the Lease, Lafarge has tiled its application for a mining and
reclamation permit for its Riverbend Operation with the Colorado Division of Minerals and
Geology (the "DMG Permit") which included, among other lands, your lands that are subject to
the Lease.
[n Section 7.D ofthe Lease you agreed:
LAFARGE WEST, INC.
70170 Church Ranch Way, Westminster, CO 80021
Office: [phone] Fax: [phone]