2004-11-09_REVISION - M2000016 (2)

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GRAVEL PROPERTY LEASE WITH RIGHT OF FII2ST REFUSAL THIS INDENTURE, dated this /,~ . day of 2002 (hereinafter referred to as this "Lease"), by and between the CHIKUMA FAMIL L.L.C~, a Colorado limited liability company, Taxpayer I.D. No. 84-1567524, whose address is 3550 Weld County Road 23, Fort Lupton, Colorado 80621 (hereinafter referred to as "Lessor") and MINERa.L RESERVES. 1NC.. a Colorado corporation (hereinafter referred to as the "Company"), with its address at 1400 West 6.1'" Avenue, Denver, Colorado 80221, Attention: Division Land Manager. In consideration of the 0 or on behalf of Lessor, the receipt and sufficiency of which is hereby acknowledged by Lessor, and on and subject to the terms and conditions provided in this Lease, Lessor hereby leases, lets and demises to the Company the Materials as defined herein, in, on and under the real property situate in Weld County and described in Exhibit A attached hereto and made a part of this Lease (hereinafter referred to as the "Property"), and the exclusive right to sample, drill, and test for, develop, mine, quarry, extract, process, sell, use and remove them during the Term of this Lease, along with the right to locate and operate and /or sublease aggregate. asphalt and concrete plants and with associated easements as provided herein. Definitions. A. Lease Year shall mean a period of one year beginning on the date which the Lease is executed by Lessor or on any annual anniversary thereof. B. Materials shall mean stone, sand and gravel and any overburden and valuable solid minerals, other than hydrocarbon minerals such as coal, oil, gas and associated liquid hydrocarbons, that are removed incident to sand and gravel operations hereunder and which are saleable and recoverable from the Property in the course of such operations. C. Plant shall mean a facility for processing, storing, washing, sorting, handling loading and shipping of Materials, along with ancillary facilities, and shall also mean a concrete or asphalt batch plant. 2. Term. The Term of this Lease shall be an initial period of thirty (30) years commencing on the lst day of May, 2002, and ending on the 30th day of April, 2032 ("Term°). Provided the Company is conducting commercial mining operations at the end ofthe initial Term. the Company may obtain an extension of the Term for so long after the end of the initial Term as commercial mining operations continue on the Propetty by written notice to Lessor prior to the end of the initial Term. Commercial mining operations shall be deemed to continue on the Propetty during such extended term unless there is a total cessation in extraction or processing operations of Materials from the Property for a period in excess of one year. The period of any extension of the initial Term pursuant hereto shall likewise be considered to be within the Term of this Lease.