PERMFILE117348

• Permit No: M1999076
• IBM Index Class Name: Permit File
• Doc Name: LEGAL DESCRIPTION
• Section_Exhibit Name: EXHIBITI A
• Media Type: D
• Archive: No

ROYALTY AGREEMENT
This Royalty Agreement is made effective as of April 21, 1999, by and between RODNEY L.
WHITING ("Landlord"), and SLAM CONSTRUCTION, INC. ("Tenant"). The parties agrce as
follows:
PREMLSES. Landlord, in consideration of the payments provided in this Agreement, grants to
Tenant the exclusive right to enter upon the Premises and to remove soil and aggregate resources in
accordance with the terms hereof on the property (the "Premises") located southwest of Highway
50 and north of Kannah Creek in Mesa County, Colorado.
LEGAL DESCRIP'T'ION. A tract of land located in part of the SW '/. Section 32, Township 2 South,
Range 2 East of the Ute Meridian, being more particulazly described as follows:
Commencing at the NW comer SW Ya SW'/a of said Section 32; thence N. 88°07'50" W., 578.94
feet to the Tme Point of Beginning; thence N. 29°00'02" E., 290.87 feet; thence N. 76° 12'46" E.,
a distance of 512.72 feet to a point on the southerly right-of-way line for US Highway 50; thence
along said southerly rightof-way the following 3 courses:
I. S. 42°09'33" E., 552.48 fee[;
2. N. 88°07'35" W., 61.30 feet;
3. S. 42°08'48" E., 618.36 feet;
Thence S. 47°51' 12" W., 399.75 feet thence N. 86°09'34" W., 434.25 feet; thence N. 42°08'48"
W., 536.53 feet thence N. 88°09'34" W., 364.46 feet; thence N. 01°50'26" E., 180.12 feet; thence
N. 29°00'02" E., 176.30 feet to the True Point of Beginning. Containing 21.93 acres, more or less.
STORAGE. Tenant shall be entitled to store items of personal property in within the limits of
property owned by landlord during the term of this Agreement. Landlonl shall not be liable for loss
of, or damage to, such stored items.
TERM. This Agreement shall begin on Apri18, 1999 and will terminate on April B, 2000.
PAYMENTS. Tenant shall pay to Landlord:
The Royalty payments are based upon the removal of an estimated volume of L20,000 cubic
yards of soil material and approzimalely 60,000 tons of aggregate from the property. For any
material removed, the landlord will be wmpensated as follows:
1. $ 0. ~ per cubic yazd for soil,
2. $ 0. i per ton for aggregate.
POSSESSION. Tenant shall be entitled to possession on the fast day of the term of this agreement,
and shall yield possession to Landlord on the last day of the term of this agreement, unless otherwise
agreed by both parties in writing. Landlord warrants the title to the Property together with any
ingress, egress easements and unobstntcted access to the premises.
USE OF PREMISES. Tenant may use the Premises only for extraction of soil, sand and gravel
within the property boundary. Including the storage of equipment ancillary to the operation. The
Premises maybe used for any other purpose only with the prior written consent of Landlord. Tenant
shall notify landlord of any anticipated extended absence from the Premises not later than the first
day of the extended absence.
MAINTENANCE. Tenant's obligation for maintenance shall include:
- the control of dust
- the maintenance of the haul route(s)
I,andlorcl's obligation for maintenance shall include:
- payment of all property taxes and water assessments.