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OPTION AND LEASE AGREEMENT
<br />THIS OPTION AND LEASE AGREEMENT ("Agreement") is made and entered into this
<br />~ u ~` day of September, 2002 ("Effective Date"), by and between ROCK ISLAND LAND CO.
<br />LLC, a Colorado limited liability company, whose address is PO Box 1012, Breckenridge, Colorado
<br />80424 (hereinafter called "LESSOR"), and EVERIST MATERIALS, LLC, a South Dakota limited
<br />liability company, with a mailing address of PO Box 1150, Silverthorne, CO 80498 (hereinafter
<br />called "LESSEE").
<br />1. Grant: Subject to the terms, conditions and exercise of the Option described in
<br />Paragraph 2 hereof, the LESSOR, in consideration of the covenants and agreetnents hereinafter
<br />contained, has granted, demised, leased, and let and by these presents does grant, demise, lease, and
<br />let exclusively unto LESSEE, its successors and assigns, the following described real property
<br />situated, lying and being in the County of SUMMIT and State of Colorado (hereinafter called the
<br />"Property"), as depicted and described in Exhibit "A" and "Exhibit "B", respectively, which exhibits
<br />are attached hereto and incorporated herein by reference; TOGETHER WITH the exclusive right and
<br />privilege to mine, extract, store, stockpile, remove and sell all of the sand, gravel, and by-product
<br />materials incident thereto, (hereinafter called the "Leased Substances"), in, on or under the Leased
<br />Premises; TOGETHER WITH the right to remove any and all topsoil or overburden above the
<br />Leased Premises, the right to use so much of the surface of the Leased Premises as may be necessary
<br />or convenient in the construction of gravel plants, concrete and asphalt batch plants; TOGETHER
<br />W ITH the right to construct roads, bridges, and storage water ponds together with the right to install,
<br />store, and locate equipment of all kinds for any more of said purposes, and the right to erect suitable
<br />buildings for offices, workmen, equipment and repair and storage and the transportation and
<br />shipment of the Leased Substances (all of the foregoing being collectively referred to herein as the
<br />"Leased Premises")
<br />Option to Lease:
<br />(a) Inconsideration for payment ofthe NINETY THOUSAND Dollars ($90,000)
<br />to LESSOR ("Option Payment"), the receipt of which is hereby acknowledged, LESSOR
<br />hereby grants to LESSEE the right and option to lease the Leased Premises ("Option") upon
<br />all terms and conditions set forth herein.
<br />(b) The teen of the Option ("Option Tenn") shall extend from the Effective Date
<br />of this Agreement through December 31, 2003.
<br />\ 3. Contingency -Exercise of Option:
<br />(a) During the Option Tenn, LESSEE shall be entitled to take possession of the
<br />Leased Premises and commence mining operations. As used in this Agreement, the term
<br />"mining operations" includes the extraction and removal of Leased Substances to the extent
<br />09/06/2002 L.G. Everist /Rock Island Land Co. Page 1
<br />Option anJ Lcase Agreement
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