OPTION TO BUY MATERIAL
<br />AGREEMENT, made and entered into this 23" day of June, 2004, by and between The
<br />Greer Family Trust, Pat & Lila Greer, Trustees, whose address is 8097 County Road 100,
<br />Hesperus, CO 81326, hereinafter referred to as the OWNER, and Nielsons Skanska, Inc.,
<br />whose address is Post Office Box 1660, at 22419 County Road "G", Cortez, Colorado 81321,
<br />hereinafter referred to as NIELSONS SKANSKA, INC.,
<br />WITNESSETH THAT:
<br />THE PARTIES HERETO, for and on behalf of themselves, their heirs, executors,
<br />administers, personal representatives, and successors, agree as follows:
<br />THAT WHEREAS, NIELSONS SKANSKA, INC. desires to obtain construction
<br />materials of satisfactory quality and quantity for use in construction, which materials are
<br />available from land owned by the OWNER and described as follows; To wit:
<br />Northeast One Quarter (NE 1/4) of Section 7, Township 33 N., Range 12 W, New Mexico Principal
<br />Meridian, La Plata County, Colorado,
<br />NOW THEREFORE:
<br />IT IS AGREED BY THE PARTIES HERETO: THE OWNER for the consideration
<br />of Ten Dollars ($10.00), paid in hand, receipt of which is hereby acknowledged, hereby grants
<br />to NIELSONS SKANSKA, INC., the exclusive right and option from the date of this
<br />agreement until the 1' day of July, 2009, to purchase, extract, process, stockpile, and remove
<br />from the subject premises the following:
<br />Sand and gravel pit run material and sand and gravel products at a royalty price ofd
<br />mpmW and converted volume to weight at 1.50 ton/cubic yard.
<br />Measurement to be by certified scale weight for sand and gravel products removed from
<br />Greer Property. Payment to be made monthly on or before the 10'h day of each month
<br />NIELSONS SKANSKA, INC., shall pay the OWNER
<br />per year non-refundable advance royalty, due the first day of July each
<br />effective year of this option. Such royalty advance is to apply to royalty payments due
<br />for materials purchased and removed during the ensuing year. Any portion not so
<br />applied for materials taken during that ensuing year shall be forfeited to OWNER as
<br />liquidated damages. Records of materials weighed or otherwise measured and removed
<br />shall be made available to the OWNER for examination any time upon request.
<br />IF NIELSONS SKANSKA, INC., exercises this Option within the time aforesaid,
<br />NIELSONS SKANSKA, INC., shall then have the exclusive right to purchase and remove all
<br />material necessary for construction and for adequate stockpiles.
<br />NIELSONS SKANSKA, INC., shall have the right to ingress and egress to and from
<br />the subject premises and erect any temporary structures and employ any reasonable methods
<br />for the removal of said material. After NIELSONS SKANSKA, INC., has completed its
<br />removal operations, it will leave the premises in a neat condition according to an "reclamation
<br />plan" to be incorporated into the Colorado Mined Land Reclamation Permit and agreed to by
<br />the OWNER.
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