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Gravel Property Lease
<br />This Gravel Property Lease (this "Lease "), date this o� day of
<br />, 2012, (hereinafter referred to as the "Lease "), by and between Leo F.
<br />and Mildred E. Sharp ( "Lessor "), whose address is 33979 Rd 34, McClave, CO 81057,
<br />and All Rite Paving & Redi Mix, Inc., a Colorado Corporation ( "Company "), whose
<br />address is P.O. Box 165, Canon City, CO 81215.
<br />Recitals
<br />In consideration of the sum of paid by the Company to Lessor,
<br />the receipt and sufficiency of which is hereby acknowledged by Lessor, and on and
<br />subject to the terms and conditions provided in this Lease, Lessor hereby leases, lets and
<br />demises to the Company the Materials as defined herein, in, on and under the real
<br />property situate in Bent County, Colorado, and described in Exhibit A attached hereto
<br />and made a part of the Lease (hereinafter referred to as the "Property"), and the exclusive
<br />right to sample, drill, and test for, develop, mine, quarry, extract, process, convey, sell,
<br />use, and remove them during the Term of this Lease, along with the right to locate and
<br />operate and /or sublease aggregate, asphalt and concrete plants and with associated
<br />easements as provided herein.
<br />1. Definitions.
<br />a. Lease Year shall mean a period of one year beginning on the date the
<br />Term of the Lease commences, as set forth in Section 2, below, or on
<br />any annual anniversary thereof.
<br />b. Materials shall mean stone, sand and gravel and any overburden and
<br />valuable solid minerals, other than hydrocarbon minerals such as coal,
<br />oil, and gas and associated liquid hydrocarbons, that are removed
<br />incident to sand and gravel operations hereunder and which are
<br />saleable and recoverable from the Property in the course of such
<br />operations.
<br />Net Sales Ton shall mean 2000 pounds of Materials from the Property
<br />actually sold or used in products that are sold, measured or weighed
<br />after any processing of such Materials. Processing of Materials from
<br />the Property, including washing of sand and gravel, removes a portion
<br />of the total pit run Materials mined from the Property, which Materials
<br />are not salable and not subject to payment of Sales Royalty.
<br />d. Plant shall mean a portable and/or fixed facility for processing, storing,
<br />washing, sorting, handling loading and shipping of Materials, along
<br />with ancillary facilities, and shall also mean a concrete or asphalt batch
<br />plant.
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