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•I II ~allt/Liar ~~ ~i GRAVEL ~ILYING LEASE THIS GRAVEL MINING LEASE, made this ~~ day of ~'GT , 1996, by and between DONALD B. WII.LIr~uV1S and FRANCES E. WII.LIAMS of Miami Beach, Florida (hereinafter referred to as "Lessor), and WYATT RED[-MIX COMPANY, a Colorado corporation, of Walden, Colorado (hereinafter referred to as "Lessee"). Lessor agrees to lease to Lessee a tract of land in Jackson County, State of Colorado, described in Exhibit "A", (hereinafter referred to as "Premises"), for the sole purpose of mining, extracting, crushing, processing and marketing sand, gravel and rock (hereinafter refetTed to as "Materials"). Lessor warrants that it has legal title to the Materials situated in and under the real property described in Exhibit "A". 1. RIGHTS OF LESSEE. Lessee shall have the right to erect on the Premises a crusher, and equipment directly related to and necessary for the processing of Materials mined from the Premises. Lessee shall have only those rights and privileges directly related to the mining and removal of Materials from the Premises and shall have no authority regarding the use or other rights associated with the Premises. -~~ ~ ~. ~.. l Lessor reserves the right to remove from the Premises p~run gravel mined by Lessee without cost for use on Lessor's own property. During the first two Lease Years, Lessor will purchase from Lessee at least three thousand (,000) yards of crushed r~;.a base eravel at a cost of $2.00 per yard. Beginning with the third Lease Year, Lessor may purchase form Lessee, at a cost of $2.50 per yard, crushed gravel for use on Lessor's property. Lessee need not pay royalty on pit run or crushed gravel removed from the Premises by Lessor. 2. TERM OF LEASE. The term of this Lease shall be ten (10) years, and shall commence on November 1, 1996 and shall expire on October 31, 2006. Lessee is granted the option to extend the term of this Lease for an additional five (5) years by notifying Lessor 30 days prior to the expiration of the original Lease. The gravel mining operations may continue uninterrupted during which time terms of the Lease, including royalty rates shall be negotiated and mutually agreed upon by both Lessor and Lessee. If an agreement between both parties is not reached within sixty (60) days after the expiration of the original Lease, the extended term to the Lease shall be null and void. Lessee shall have the right to terminate the Lease in the event that the Materials underlying the Premises are no longer economically mineable.