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HomeMy WebLinkAbout20071113.tiff RIGHT TO ENTER AND MINE SAND AND GRAVEL Please refei to Exhibit N in the DMG application for deeds and gravel lease agreements. Per your request, please see the attached records for leases regarding properties owned by McWilliams, Chikuma, and D&S Mining. r' r-^ Lafarge West,Inc..-Rivet-bend Weld County USR Permit Page 31 of 42 2007-1113 1/8/99 STEVEN S.McWILLIAMS OPTION TO LEASE GRAVEL PROPERTY THIS OPTION TO LEASE GRAVEL PROPERTY(herein called"this Option")dated this S T day of d ni.ufj2 f , 1999. nsideration of the sum of , t e &rsigned Steven S. McWilliams whose legal address is 12236 Wel ounty Road#8, Fort Lupton, Colorado 80621 (herein called"Grantor"), for himself, his heirs,personal representatives,successors,and assigns,hereby gives and grants unto Mobile Premix Concrete,Inc., a Colorado corporation(herein called the"Company"),its successors and assigns,the exclusive right and option to lease for concrete and asphalt batch plants and for the extraction of stone,sand and gravel and other materials as hereinafter identified,at the royalty,for the term,and upon and subject to all of the other terms and conditions set forth in the form of lease (herein called the"Lease") attached to and made a part of this Option,all of that real estate (the"Property") situate in Weld County,Colorado, described in Exhibit A attached to the Lease and by this reference made a part of this Option. The materials which are the subject of this Option and the Lease are referred to herein as"Materials"and are 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 in the course of such operations. Grantor acknowledges tha received Cop iggl e foregoing sum of consideration for the granting of this Option. If this Option is exercised, the entire consideration shall be considered advance royalties and shall be credited on the advance minimum royalty payable as provided in the Lease. The term of this Option shall be for a twelve(12)month period commencing on the date fast above written. Solely for the purpose of obtaining zoning classifications,variances,or exceptions from governmental entities and other governmental approvals,permits, licenses, and rights as are required for the Company's proposed operations on the Pr rty G or agrees that the Company may, at its option, extend the term of the Option foditio six ( fionth periodsby the payment to Grantor of the sum oalallit.s consideration for exterisr such sum to be paid before the expiration of the original twelve (12) month option period, and any such additional payment shall also be considered advance royalties and shall be credited on the advance minimum royalty payable as provided in the Lease. 3. Notwithstanding the term of the Option described in Paragraph 2,the Company must exercise this Option, if at all, on or before the earlier of: (a)the end of the term of this Option as it may be extended pursuant to Paragraph 2;or(b)not later then thirty(30) days after the Company (1) obtains or verifies zoning classifications and/or variances and exceptions and receives a State Division of Minerals and Geology permit and (2) completes the testing, sampling and other 1/8/99 operations described in Paragraph 6. Grantor hereby authorizes the Company,at the Company's expense and in Grantor's name, if required, to apply for zoning classifications, variances or exceptions, and governmental approvals,permits,licenses or rights related to and required for the operations contemplated under the Lease and agrees to cooperate with the Company in obtaining such approvals and to execute or join in applications,plats and other documents which are required to obtain the same. This Option shall be exercised by the Company's depositing in the United States certified mail, return receipt requested,notice of such exercise addressed to the Grant° ittastigreis rs9 forth in Paragraph 1. The Lease shall i ediately become effective as of and, to evidence its being effective, the parties shall execute the I ease,and if requested by the Company,a notice or memorandum thereof in proper form for recording. 4. Grantor shall provide to the Company evidence that he owns the surface estate and the Materials for the Property including, without limitation, Grantor's title policy and exception documents, any existing abstracts, the deed(s) by which Grantor acquired the Property and any instruments affecting the Property executed by or in the possession of Grantor. If the Grantor does not own good and marketable title to the Property or Materials, the Grantor shall return lion y to the Company. 5. Exercise of this Option shall constitute the Company's acknowledgment that,to the best of the Company's knowledge,Grantor has good and marketable title to the surface estate and the Materials for the Property. 6. Grantor hereby grants to the Company the right through the Company's officers, employees,agents and contractors during the term of this Option to enter upon the Property, and to core, auger, drill, trench and otherwise test and sample for Materials, including stone, sand and gravel, soil and earth,in,on and under the Property and of free ingress and egress to and from the Property for such purposes and to bring thereon and remove their tools,machinery and equipment, and to take and remove such samples. The results of the Company's testing, sampling and operations shall be and remain the Company's confidential information and its sole and exclusive property;provided however,the Company shall provide Grantor with copies of all such results,data, reports, studies and information and otherwise share such information with Grantor within two weeks from the earlier date that either this Option is exercised or it terminates, and Grantor shall keep the same confidential while this Option and the LeAse are in effect. The Company shall pay Grantor the reasonable value of any crops then growing on the Property which are destroyed by operations pursuant to this Paragraph. 2 -i 1/8/99 7. If this Option terminates without exercise by the Company,the Company shall return the Property to the condition in which it was found by the Company at the commencement of operations. The Company shall pay Grantor reasonable amounts for any and all damages to crops, personal property and improvements and to the Property resulting from the operations of the Company, or its officers, employees, agents and contractors pursuant to the terms of this Option, including the provisions in Paragraph 6. 8. The Company shall be liable for any and all injuries or death to persons and any and all damages to or destruction of property that results from or is caused directly or indirectly, wholly or in part,from the prosecution or omission of any work or obligation undertaken or required by this Option. The Company shall defend, indemnify and save harmless Grantor and Grantor's agents, representatives, lessees,contractors, invitees, officers and employees,from and against any and all liability,cost or expense, including reasonable attorneys fees and expert fees,that arise from or are in any way connected to the Company's operations hereunder,provided that the Company shall be required to pay amounts incurred in the settlement of any claim or suit only where the settlement has been approved by the Company, which approval shall not be unreasonably withheld. 9. The exercise by the Company of this Option to lease is subject to the approval of the Mobile Premix Concrete,Inc. Board of Directors. 10. If not exercised within the time provided for in Paragraph 2,this Option shall expire and be of no further effect, and Grantor shall retain all payments received from the Company hereunder as consideration for the grant of this Option. 11. The Company, upon the expiration of this Option without exercise, or upon determination that it will not execute the Lease,shall assign and Grantor,at Grantor's option,shall accept all right,title and interest in any and all permits covering the Property and/or Materials at no cost and expense to Grantor,except as provided in this Paragraph. Such assignment shall be without warranty of any kind, and Grantor shall have no right to mine or conduct operations under any assigned permits or rights unless and until all releases of financial assurances posted by the Company with the applicable governmental authorities have been obtained,and Grantor or Grantor's agents, representatives, contractors or lessees have provided appropriate substitute financial assurances. Grantor shall have six(6)months after expiration of this Option in which to provide such substitute financial assurances. 12. The Company shall consult with Grantor with respect to all permit applications,plans and designs of the Company, and the Company shall make reasonable efforts to take Grantor's requests into account; provided, however, that all final decisions on mine plans, operations, reclamation, permits and other plans of operations shall be in the Company's sole discretion and control. 3 1/8/99 IN WITNESS WHEREOF, this Option has been duly executed as of the date first above written. MOBILE PREMIX CONCRETE,INC. STEVEN S.McWILLIAMS By: /� Phone: Home 303- Z054 -O71O C Position: sxatn-Q Mgyar_ Phone: Work 3O3 - z-1-6, - $5DO Phone: 3o 3-1057- `131• 1760916 4 FINAL STEVEN S. McWILLIAMS GRAVEL PROPERTY LEASE WITH RIGHT OF FIRST REFUSAL THIS INDENTURE,dated this /S-r day of ditivrcnty /999 [insert date of Lessor's receipt of Company's notice of exercise of Option],(hereinafter referred to as the"Lease", by and between Steven S. McWilliams,with his address being 12236 Weld County Road#8, Fort Lupton, Colorado 80621 (hereinafter referred to as lessor") and Mobile Premix Concrete, Inc., a Colorado corporation (hereinafter referred to as the'Company"), with its address at 1400 West 64th Avenue, Denver,Colorado 80221. WITNESSETH • In consideration of the sum of SEVEN THOUSAND DOLLARS ($7,000.00) paid by the Company to Lessor alIPIIIIIIMPIPPINIPMaSIMMMIPPIPpreviously paid for the Option to Lease Gravel •6 Property (`Option' under which this Lease is taken), the receipt and sufficiency of which is hereby acknowledged by Lessor,which sum shall satisfy the advance minimum royalty requirement identified in Paragraph 4 with respect to the period from the commencement date hereof to the end of the first year of the term of this Lease,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,drift, and test for,develop,mine,quarry,extract, process,sell,use and remove them during the Initial Term (as defined in Paragraph 2 below) of this Lease, along with the right during the Initial Term and Successive Terms (as defined in Paragraph 2 below) to locate and operate with associated use • easements,as provided in Paragraph 5 below. In no event shall all or any part of the Property be used as or for a landfill. TOGETHER WITH the right to use and exercise the water and water rights appurtenant to the Property that belong to Lessor('Water Rights')to the extent appropriate for the extraction, removal and processing of the Materials, as well as for revegetation and reclamation, and including exposure of alluvial waters to evaporation. 1. Definitions. • A. Commercially Economic Materials shall mean all Materials that are removed from the Property and all Materials that can be sold at a profit The determination of whether Materials can be sold at a profit shall be determined by Company in its sole and exclusive discretion. 31390320237 FINAL B. Lease Year shall mean a period of one year beginning on the date or the anniversary date on which the Lease is executed. C. 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. 2. Term. The Term of this Lease shall be an initial period of fifteen (15) years commencing on the j 5 day of d Warner , A ', [per introductory paragraph], and ending on the day of ,201_('Initial Term'). The Company shall have the option to extend the Initial Term for an additional nine (9) years ("Extended Initial Term") by giving Lessor notice of such extensions at least sixty (60) days before the end of the Initial Term and accompanying that notice with a payment to Lessor of During the Extended Initial Term,the Company shall continue to have the same rights under this Lease as it does during the Initial Term. The Company also shall have the option to extend either the Initial Term (if the Company does not elect to enter into the Extended Term as provided above)or the Extended Term for two additional periods of, first, eleven (11)years and, second, ten(10)years each ("Successive Terms')by giving to Lessor notice of such extensions at least sixty(60) days before the beginning of each such additional successive period; provided that, during any Successive Term,the Company's sole right shall be the right to utilize the Property for easements, as provided in Paragraph 5 below. During any Successive T th Company's sole obligation shall be the obligation to pay the Lessor the sum of prior to the expiration of each Lease Year during the Successive Term("Rent). During the Successive Terms (if any), the Company shall not be obligated to pay any advance minimum royalties or to make any other type of payment to Lessor other than Rent. Any easement granted pursuant to this Paragraph 2 shall be situated in accordance with the applicable provisions • of Paragraph 5. Either the Initial Term or the Successive Terms may be earlier terminated pursuant to applicable provisions of Paragraph 14 below. 3. Production Royalties. A. For all Materials mined, quarried, extracted and sold or removed from the Property during each calendar month, the Company shall pay to Lessor a royalty at the rate of thirty cents($0.30)per ton of 2,000 pounds within twenty(20) days after the close of such calendar month, which royalty rate shall be increased by three percent(3%)at the end of each Lease Year. The royalty payments shall be accompanied by a monthly statement with the royalty calculation that includes an accounting of the tons of Materials mined from the Property and sold for the month. • SLssmm.m FINAL B. The Company shall keep and maintain adequate and accurate records of the quantities sold for Materials mined,removed,and sold. Lessor shall have the right at all reasonable times during business hours to examine such records of the Company at the offices of the Company and to verify the quantities of Materials mined,removed,and sold and the accuracy of the scales used to weigh the Materials. 4. Minimum Royalties: No Implied Covenants. Advance minimum royalty shall be paid at the rate of SEVEN THOUSAND DOLLARS ($7,000.00) for each of the first through fifth Lease Years. In this regard, the Company has paid Lessor the sum of SEVEN THOUSAND DOLLARS ($7,000.00)as above receipted for,for the first Lease Year,and the Company shall pay a like amount prior to the beginning of each Lease Year thereafter through the fifth Lease Year. Commencing in the sixth Lease Year and continuing through the tenth Lease Year,the advance minimum royalty shall be EIGHT THOUSAND DOLLARS($8,000.00)per Lease Year. Commencing in the eleventh Lease Year and continuing through the fifteenth Lease Year, the advance minimum royalty shall be TEN THOUSAND DOLLARS ($10,000.00) per Lease Year. No advance minimum royalties shall be payable during any Successive Term. No advance minimum royalties shall be payable following termination of this Lease. Amounts paid as advance minimum royalties shall be credited against and applied to reduce amounts otherwise payable as production royalties pursuant to Paragraph 3. Production royalties paid pursuant to Paragraph 3, after taking into account advance minimum royalties paid pursuant to this Paragraph 4,shall be applied in succeeding years to reduce amounts subsequently payable as advance minimum royalties. There is no implied covenant or obligation of the Company to develop or mine the Property or to sell Materials. The Company may maintain this Lease in effect for the Initial Term by making the annual advance minimum royalty payments(the Company may maintain this Lease in effect for the first or both Successive Terms by paying the Rent specified in Paragraph 2), and if the Company mines Materials from other properties, it may transport Materials across the Property to off-site processing facilities so long as this Lease is maintained in effect. Except as otherwise specifically provided herein, Lessor shall not be required to return to Lessee any advance minimum royalty payment 5. Easements. Any access easements and the location and alignment or realignment of any conveyor shall be agreed upon by the Lessor, which agreement shall not be unreasonably withheld. Any access easement and conveyor easement shall be 50 feet in width in the original Property area. The conveyor easement shall include but not be limited to the right to construct, operate, maintain, repair and remove a conveyor system and similar, related or incidental . improvements for purposes of transporting materials across the Property. The Company also shall construct and maintain a crossing either under or over the conveyor to allow for a vehicle of 10 feet in width and 9 feet in height to pass under or over the conveyor. At any time that the Property is being used solely for transport of Materials across the Property, Lessor shall have the right to reenter, 5L990320.237 FINAL occupy and use those areas of the Property to the extent that the permit and related financial assurance have been released by the State Division of hi tines and Geology and to the extent that such use does not interfere with the Company's operations. 6. Water. The Company shall have the right to use any and all Water Rights associated with the Property to the extent such use is necessary in its operations. The use by Company of the Water Rights shall be in compliance with all applicable laws,rules and regulations and other conditions governing the use of the Water Rights and related to the Company's operations on the Property, including without limitation,all mining and post mining requirements for augmentation related to pith and reclaimed areas. The Company is wholly responsible for and shall obtain all water rights in addition to the Lessors'Water Rights that are necessary for its operations, including its mining and processing operations and to comply with all post mining and reclamation requirements, and shall obtain any agreements, decrees or permits for change of use or augmentation as may be required, all at the Company's sole cost and expense. For so long as the Initial Term of this Lease remains in effect, Company shall bear, at its sole cost and expense, all annual assessments and fees, if any, payable to ditch companies with respect to Lessor's Water Rights. After the Initial Term of this Lease, Lessor shall be solely responsible for all such assessments and fees. Notwithstanding any of the foregoing provisions to the contrary,the Company,at its sole cost and expense,shall provide all water rights required for augmentation of evaporative losses from pits resulting from the Company's mining operations on the Property and shall bear all costs and expenses associated with the approval of such an augmentation plan. Company shall transfer to Lessor any such water rights obtained by the Company for purposes of augmentation of such evaporative water losses, to the extent that those water rights have not been committed to any water districts or entities. 7. Operations. A. The Company shall conduct its operations on the Property in a prudent and • workmanlike manner and in accordance with good and accepted mining and business practices and in compliance with all applicable federal,state and local laws,rules and regulations. The Company shall plan its operations so as to avoid undue waste or loss of Materials. The timing, nature,manner and extent of mining operations, processing and sales shall be within the sole discretion of the Company, and the Company shall not be required to mine, preserve or protect in its operations any Materials which, under good mining practices,cannot be mined or sold at a reasonable profit to the Company at the time they are extracted. B. The Company shall have the right to install, construct, operate, maintain, dismantle,and remove plants,machinery,equipment,improvements,and other facilities including,but not limited to, roads, rail lines, pipe lines, power lines,telephone lines, water courses, wells, dams, ponds, and stockpiled areas and any right-of-way it deems necessary or desirable for its operations on the Property related to the Company's operations under this Lease. The Company shall have the 81.990320 237 FINAL right during the Initial Term of this Lease and without payment to Lessor (except for production royalties payable pursuant to Paragraph 3 and advance minimum royalties payable pursuant to Section 4) to strip and remove overburden and otherwise to use and occupy the Property in conjunction with other properties, as is reasonably required in connection with mining, quarrying, extracting, processing,storage,transportation,sale and removal of Materials from the Property and from other properties owned or leased by the Company. The Company shall not backfill any Materials into any pits on the Property unless and to the extent that it is required to do so by laws, rules, regulations or requirements of any governmental agency, or that Lessor approves of same, which approval shall not be withheld unreasonably. C. The Company shall consult with Lessor with respect to all permit applications, plans and designs of the Company,and the Company shall make reasonable efforts to take Lessor's requests into account provided, however, that all final decisions on mine plans, operations, reclamation, permits and other plans of operations shall be in the Company's sole discretion and control. D. Lessor authorizes the Company on Lessor's behalf and agrees to cooperate with the Company, at the Company's sole expense, to apply for and obtain zoning or other governmental land use classifications,permits,approvals, licenses,and rights(hereinafter"authority') that are reasonably required in connection with the operations that are contemplated under this Lease; provided,however, the Company shall provide bonds or other financial assurance for its operations, including for the restoration, reclamation or rehabilitation of the property, as may be required or advisable to obtain such permits and approvals. E. If Lessor or Lessor's actions preclude the Company from being able to perform mining or processing operations pursuant to this Lease,the Company,at its election, may terminate • this Lease by giving ninety(90)days prior written notice to Lessor without any further obligation to Lessor. Lessor, in its sole discretion,may remedy such action within thirty(30)days, in which case this Lease shall not terminate. The Company, as part of such termination,shall have the right at its option to have Lessor return any advance minimum royalties not offset by production royalties. 8. Waiver of Lateral Support Lessor hereby waives the lateral support for mining purposes for the lands located between the Property's boundary lines and the boundary lines for those adjacent properties that are owned or leased by the Company. Upon the completion of mining or the termination or expiration of this Lease, whichever occurs first, the Company shall reconstruct the lateral support on the Lessor's property line such that the support will have a minimum top width on Lessor's property of 35 feet 9. Liabilities. SL990Jm.237 FINAL A. The Company shall defend, indemnify and hold harmless Lessor and Lessor's agents and employees from and against any and all claims, demands, judgments, and liability, including reasonable attorneys fees and expert fees,by or to any and all third parties resulting from the negligent acts or omissions of the Company or its agents, representatives,officers, employees, lessees and contractors in,on or about the Property. B. Lessor shall defend and indemnify and hold harmless the Company and the Company's agents and employees from and against any and all claims, demands,judgments and liability, including reasonable attorneys fees and expert fees,by or to any and all third parties in any way related or connected to the use or operations of Lessor on the Property while this Lease is in effect,or the presence of Lessor or Lessor's agents,employees, licensees or invitees on the Property. C. The Company shall defend,indemnify,and hold harmless Lessor from any and all liability resulting from its operations hereunder pursuant to all local,state and federal environmental laws,ordinances,rules and regulations,including but not limited to,the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. § 9601 et seq.) and the Resource Conservation and Recovery Act(42 U.S.C. §6901 et seq.), as any of such laws, ordinances, rules and regulations have been or are amended from time to time. D. The foregoing indemnifications shall all survive the termination of this Lease. The indemnity provisions set forth in this Lease shall apply to amounts paid in settlement of a claim by an indemnified party only if such settlement is approved by the indemnifying party,which approval shall not be unreasonably withheld. 10. Insurance. A. The Company shall maintain at it sole expense and at all times statutory Worker's Compensation and Occupational Disease Disability Insurance coverage as required under the laws and regulations of the State of Colorado for all its officers and employees who perform work for the Company hereunder. B. The Company shall purchase, at its sole expense, and shall maintain at all times the following minimum insurance protection. Comprehensive General Liability and Property Damage Insurance in the amount of$1,000,000 combined single limit; ii. Employer's Liability Insurance in the amount of$100,000 each occurrence; 31.990320237 FINAL iii. Automobile Liability Insurance in the amount of$1,000,000 combined single limit and iv. Adequate and reasonable insurance for other risks ordinarily insured against in similar operations. C. The Company agrees that it shall require all independent contractors, contractors and subcontractors who perform work in connection with the Property to have similar and adequate insurance in full force and effect 11. Title. A. Lessor warrants that Lessor owns the surface estate and the Materials for the Property,and Lessor agrees to defend said title against adverse claims. B. The Company has accepted Lessor's marketable title, to the best of its knowledge,at the exercise of this Lease. If subsequent thereto the Company determines that Lessor's title to the Property and Materials is not good and marketable,the Company shall so notify Lessor in writing,in which case Lessor may,in Lessor's sole discretion and at Lessor's cost,correct the specified title defects. If any title defects which render the title unmarketable or adversely affect the Company's right to mine are not cured within sixty (60) days after receipt of such notice, the Company, at its option,may terminate this Lease without any further obligation to Lessor. The Company shall, as part of such termination, have the right at its option to have any and all prepaid royalties not offset by production royalties refunded to the Company. C. Without regard to the warranties of title given to the Company by Lessor, if Lessor owns less than one hundred percent(100%)of the Materials under all or any portion of the • Property,then the amounts payable to Lessor hereunder as advance minimum royalty payments and production royalties shall be reduced in the proportion that the interest of the Lessor in the Materials bears to one hundred percent(100%)of the Materials under the Property. 12. Taxes. During the term of this Lease (including both the Initial Term and any Successive Terms), Lessor shall pay when due all general,ad valorem and property taxes assessed against the Property,provided that the Company shall,upon the provision to it of reasonably sufficient documentation,reimburse Lessor for any increases in such taxes actually paid by Lessor during the Initial Term over and above the amount of such taxes paid by Lessor during 1998. During the Initial Term, the Company shall pay when due all taxes assessed upon the production, severance or extraction of Minerals from the Property by the Company. In addition, the Company shall pay all personal and real property taxes assessed against machinery,tools,equipment supplies, buildings, improvements, pipelines, stockpiles of Materials, and other property and/or fixtures placed by su.smm.al FINAL Company on the Property. Lessor shall pay all taxes on improvements that Lessor installs on the Property for Lessor's own purposes. 13. Labor and Materials. The Company shall defend,indemnify and hold harmless Lessor from and against any and all claims, charges, demands, causes of action, damages and liability, including reasonable attorneys fees and expert fees,that arise from or are connected to the acts or omissions of the Company hereunder or to those of its contractors, subcontractors, employees, officers,agents or lessees in regard to providing labor and acquiring or installing materials,equipment and supplies for operations under this Lease. The Company further agrees to keep the Property free and clear of liens,charges,claims or demands arising from the Company's operations hereunder and to promptly pay for all labor performed on the Property and for all supplies,materials,and equipment used or placed on the Property. The Company may contest in good faith any lien;provided that, the Company shall not allow title to the Property or any portion of it to be lost The Company shall promptly notify Lessor in writing in regard to any lien, affidavit or other claim which may be made or attached against the Property as the result of its operations hereunder. 14. Termination. A. Lessor shall have the right at Lessor's option to terminate this Lease if the Company fails to perform any of its obligations hereunder as follows: i. If the Company fails to pay when due any amounts to be paid hereunder, Lessor may at its option give the Company written notice of such failure and the Company shall have fifteen(15)days from the date it receives notice to pay the amounts owed to Lessor. All past due payments shall bear interest at the rate of one and one-half percent(1.5%)per month. If the Company fails to pay the past due amounts to Lessor within the fifteen(15)day period, Lessor may at its option declare the Company in default and terminate this Lease. ii. If the Company defaults in the performance of any obligation hereunder other than the obligation to pay money when due, Lessor may at its option give written notice of such default to the Company, and the Company shall have thirty(30)days from the date it receives such notice to cure the default If the Company fails to cure the default within the thirty day period, Lessor may at its option terminate this Lease;provided, however,that if the default is minor and the default can be fully compensated for in damages,then such default shall not be a basis for cancellation or forfeiture of this Lease or any of Company's rights hereunder if the Company pays the full amount of damages within thirty(30)days after demand by Lessor. If, through nq fault of the Company, such failure is impracticable to correct within the 30-day period,Lessor shall have no right to terminate this Lease if the Company commences in good faith to correct the failure and provided that the Company diligently pursues and completes the correction within a reasonable time. SL990JID 237 FINAL A default shall occur in the event and at any time that the Company becomes insolvent or the subject of bankruptcy proceedings or assigns any of its assets for the benefit of debtors. B. The Company shall have the right,at its option,to terminate this Lease at the end of any Lease Year during the Initial Term or any Successive Term by giving at least sixty(60)days prior written notice to Lessor. Lessor shall not be entitled to receive additional compensation after the date of termination,other than any and all royalties or Rent due and accrued;provided, however,that if Company terminates this Lease before Lessor has received a total of Fifty Thousand Dollars ($50,000.00)in the sum of: (i)payments under the Option;(ii)the initial payment under this Lease; (iii) production royalties paid pursuant to Paragraph 3 of this Lease; and (iv) advance minimum royalties paid pursuant to Paragraph 4 of this Lease;then Company shall pay the difference between Fifty Thousand Dollars($50,000.00)and that total to Lessor within ten (10)days after termination. C. Upon termination of this Lease for any reason,the Company shall continue to be liable for the performance of all obligations and the satisfaction of all liabilities to Lessor including, but not limited to,the payment of royalties which have accrued prior to the date of termination and the compliance with all laws, regulations, and permit conditions that apply to the Property and the operations on the Property including, but not limited to all reclamation, environmental and land use laws, regulations and permit conditions. D. Upon termination of this Lease with respect tg all or any part of the Property, the Company agrees to furnish Lessor with a document satisfactory to Lessor verifying such termination and release of Lease. E. Upon termination of this Lease for any reason, the Company shall furnish Lessor with maps showing the location of all test holes on the Property and provide Lessor with copies • of all test results,studies,data and analyses in its possession with respect to or in connection with the Materials or the mining of the Materials on the Property. F. Upon termination of this Lease by the Company for any reason,all sums paid hereunder to Lessor shall remain the property of Lessor and shall not be recoupable or refundable except to the extent that they have already been recouped or refunded as of the effective date of termination,or except as expressly provided in Paragraphs 7.E and 11.6 and C above. 15. End of Term. The Company shall have the right for six months from the date of the expiration or termination of this Lease to dismantle and remove plants, machinery, equipment, improvements,and other facilities installed or constructed on the Property by the Company and also to sell and remove Materials then stockpiled on the Property,subject to its obligation to pay production royalties pursuant to Paragraph 3. SL990320.237 FINAL 16. Post-Mining Use; Restoration of Property. Company understands that Lessor's intended post-mining use of the Property is for a private recreational site and wild-life habitat. Within two(2)years after the expiation or earlier termination of this Lease,the Company will seed,grade and replace topsoil on overburden piles,lake banks and other disturbed areas on the Property in such a manner as will accommodate ultimate reseeding and mowing. Following the expiration or termination of this Lease for any reason, Lessor covenants that Lessor will not extract or allow others to extract Materials until Lessor or others effect the transfer of the State Division of Minerals and Geology Permit to their names for reclamation or rehabilitation of the Property and the release of any security or bond provided by the Company to secure its performance or discharge its responsibilities. The Company shall have the right to access and enter the Property and effect on the Property such restoration, rehabilitation and reclamation as may be required to discharge the responsibilities which the Company has assumed pursuant to its permits and under Paragraphs 7.D and 8 and to procure the release of any bond or other financial assurance provided by the Company. 17. Right of First Refusal. In the event that, during the term of this Lease (including the Initial Term and any Successive Terms), Lessor receives a bona fide offer to purchase any of Lessor's right, title or interest in or to this Lease,the Property or the surface estate of the Property and Lessor desires to accept such offer, Lessor shall first offer to sell such right, title or interest(the 'Offered Interest') to the Company on the same terms and conditions by providing written notice to the Company setting forth the Offered Interest,the proposed purchase price (which shall only be cash), any other applicable terms or conditions and a copy of the bona fide offer or proposal received. The Company shall have thirty(30) days to elect whether or not to purchase the Offered Interest at the price and on the terms and conditions stated in Lessor's notice by providing written notice thereof to Lessor. If the Company does not provide such a notice to Lessor within such'30-day period, the Company shall conclusively be deemed to have elected not to purchase the Offered Interest. If the Company timely elects to purchase the Offered Interest,the closing of the purchase shall occur within • twenty(20) days following the provision to Lessor of the Company's notice. If the Company does not elect within such thirty(30)day period to purchase the Offered Interest,Lessor shall have twenty(20) days thereafter to close the sale of the Offered Interest to the third party offeror at the price and on the terms and conditions stated in Lessor's original notice to the Company. In the event that Lessor fails to close the sale to the third party offeror within such twenty(20)day period, the Company's right of first refusal under this Paragraph 17 shall be deemed revived. During the term of this Lease, Lessor shall not sell,or enter into any agreement or commitment to sell,any right,title or interest in or to this Lease, the Property or the surface estate of the Property except in accordance with the provisions of this Paragraph 17 and the Company's right of first refusal hereunder. Any such sale by Lessor to any third party shall expressly be subject to all of the Company's rights,title and interests under this Lease. 18. Lessors Option to Purchase. The parties acknowledge and understand that (i) the Company has entered into that certain Option to Lease Gravel Properly dated February 8, 1998(the 31990320 237 FINAL 'Rittenhouse Option to Lease') with Donald L. Rittenhouse and Suzanne Rittenhouse (the 'Rittenhouses');(ii)pursuant to the Rittenhouse Option to Lease,the Company has the option to enter into a Gravel Property Lease with Option to Purchase Surface agreement(the"Rittenhouse Lease and Purchase Option', a form of which is appended to the Rittenhouse Option to Lease); and (ii) if the Company enters into the Rittenhouse Lease and Purchase Option, it would have the option, under certain circumstances described therein,to purchase the surface estate of certain lands situated in Weld County, Colorado and owned by the Rittenhouses, including without limitation those certain lands situated to the north and west of the Platte River that are described in Exhibit B appended hereto (the 'Northwest Parcel"). In the event that, during the term of this Lease, the Company acquires ownership of the surface estate of the Northwest Parcel or any portion thereof(an"Acquired Surface Interest'),the Company shall promptly provide written notice of such acquisition to Lessor. Lessor shall have the right and option,for a period of thirty(30)days following the provision of the Company's notice, to elect to purchase the Acquired Surface Interest from the Company for the sum of FIVE HUNDRED DOLLARS($500.00)per acre, prorated as to fractional acreage. Lessor shall exercise its option to purchase by giving written notice thereof to the Company within the aforementioned thirty (30) day period,specifying a closing date not less than ten (10)nor more than thirty(30)days after the date Lessor's notice of exercise is delivered to the Company. If Lessor does not provide such a written notice of exercise to the Company within the aforementioned thirty day period, Lessor shall conclusively be deemed to have elected not to purchase the Acquired Surface Interest If Lessor timely elects to purchase the Acquired Surface Interest, the Company shall convey its ownership interest in the surface estate of the Acquired Surface Interest at the closing by quitclaim deed,subject to all of the Company's remaining rights, title and interest(if any) under the Rittenhouse Lease and Purchase Option and reserving all minerals, including without limitation sand, stone and gravel. Subsequent to the conveyance to Lessor of the Acquired Surface Interest,the Company shah retain all of its rights and privileges under the Rittenhouse Lease and Purchase Option; including without limitation the right to conduct mining operations, but shall have no liabilities, duties or obligations thereunder to Lessor, its successors or assigns, including without limitation any obligation to pay • production royalties, advance minimum royalties or any other type of payment or any liability for any damage to or use of the surface estate in connection with operations. 19. Assignment The provisions of this Lease shall extend to and be binding upon the heirs,personal representatives,successors,assigns and sublessees of Lessor and the Company. The Company shall have the right to subcontract with others for the performance of exploration, development and mining work hereunder,subject to all terms of this Lease, but no such subcontract shall relieve the Company of its obligations to Lessor hereunder. 20. Notice. Notices of default or of cancellation or termination of this Lease and all other notices required or permitted hereunder shall be given by registered or certified mail,postage prepaid, addressed to the parties as follows: SLS903 .n, FINAL Mobile Premix Concrete, Inc. Attn: Land Department 1400 West 64th Avenue P.O. Box 21588 Denver,Colorado 80221 Steven S.McWilliams 12236 Weld County Road#8 Fort Lupton, Colorado 80621 21. Entire Agreement This Lease contains the entire agreement between the parties hereto,and neither it nor any part of it may be changed,altered,modified,or limited orally or by any agreement between the parties unless such agreement be expressed in writing, signed, and acknowledged by the Lessor and the Company, or their respective heirs,personal representatives, successors and assigns. IN WITNESS WHEREOF,this Gravel Property Lease with Right of First Refusal has been duly executed as of the date first above written. MOBILE PREMIX CONCRETE, INC. STEVEN S. McWILLIAMS By: idliWASeditr ittat Position: ae+csre P/i{j/,riQtp-A--_ :L990720.237 FINAL EXHIBIT A PROPERTY All that part of the NW 1/4 of Section 19,Township 1 North,Range 66 West of the 6th P.M.which lies west of the center line of the South Platte River,Weld County,Colorado, EXCEPT: A parcel of land located in the NW 1/4 of Section 19, Township 1 North, Range 66 West of the 6th Principal Meridian,Weld County,Colorado,more particularly described as follows: Commencing at the northwest corner of said Section 19,thence S 00011'42"W, along the west line of said NW 1/4,a distance of 30.00 feet thence N 90000'00" E, along a line 30.00 feet south of and parallel with the north line of said NW 1/4, a distance of 747.67 feet to the Point of Beginning of said excepted parcel; 1) Thence continuing along said parallel line, N 90000'00" E, a distance of 882.35 feet to the centerline of the main channel of the South Platte River (1997) and continuing along said centerline the following 5(five)courses; 2) Thence S 22091'23"W,a distance of 119.58 feet; 3) Thence S 33019'22"W,a distance of 67.31 feet 4) Thence S 43051'39"W,a distance of 182.10 feet • 5) Thence S 46041'03"W, a distance of 182.88 feet 6) Thence S 35051'46"W, a distance of 4.35 feet; 7) Thence departing said centerline, N 90000'00"W,a distance of 542.31 feet 8) Thence N 00033'48" E, a distance of 427.13 feet to the Point of Beginning of said excepted parcel, containing 7.273 acres,more or less. 3L990320 237 1/8/99 MEMORANDUM OF OPTION TO LEASE GRAVEL PROPERTY THIS MEMORANDUM OF OPTION TO LEASE GRAVEL PROPERTY(herein called "this Memorandum") is dated this I5-E day of J RNu p-rt'( , 1999, and entered into between STEVEN S. McWILLIAMS, whose legal address is 12236 Weld County Road #8, Fort Lupton, Colorado 80621 (herein called "Grantor"), and MOBILE PREMIX CONCRETE, INC., a Colorado corporation, with its address at 1400 West 64th Avenue, Denver, Colorado 80221 (herein called the "Company"). 1. Property Subject to Option. The real estate subject to this Memorandum is situated in Weld County, Colorado. and described more particularly in Exhibit A attached hereto and by this reference made a part hereof(the "Property"). 2. Grant of Option. Grantor hereby grants to the Company for the Option Term described in paragraph 3 below the exclusive right and option (the "Option") to enter into a Gravel Property Lease With Right of First Refusal, with respect to all of the Property. 3. Term of Option. The term of the Option (the"O • h Term") shall be for an a initial twelve (12) month period, extendable foraa-additional six (6) months. p e-naot 5 „froi—a 4. Rights During Option Term. During the Option Term, the Company shall have the right to enter the Property and core, auger, drill, trench and otherwise test and sample for mineral materials and to take and remove samples thereof. 5. Release of Option. If the Option terminates without the Company having exercised the Option, it shall provide to Grantor an executed, recordable form of Release of Company's rights under the Option. 6. Govemi g Document. Grantor. and the Company agree that this Memorandum is executed solely for purposes of providing constructive notice to third parties of Company's Option rights, and that they have entered into a more detailed and complete Option to Lease Gravel Property (herein called the"Full Agreement") as of the 1/8/99 date hereof. In the event of any inconsistency between this Memorandum and the Full Agreement, Grantor and the Company hereby agree that, as between them and their respective successors and assigns, the Full Agreement shall govern in all respects. WHEREFORE, Grantor and the Company have executed this Memorandum to be effective as of the date first above written. STEVE S. McWILLI MS MOBILE PREMIX CONCRETE, INC., a Colorado corporation By: /Alias, Title: k.a„Ow a_.{1 ita H STATE OF ss. COUNTY OF ) t The foregoing instrument was acknowledged before me this 1�acrt day of e$P_L1A'.i.i , 1999 by STEVEN S. McWILLIAMS. P I .I My Commission expires:\ Ea. r( 1a�( 2 . 1/8/99 STATE OF COLORADO COUNTY OF G J-n s ss. The foregoing instrument)))was acknowledged before me this I L /-h day of 1999, byy (-Lir4 t Q. OB L MIX CONCRETE,I .,a Colorado corporation, on behalf of the Corporation. (seal) S tag I 7 I ARY PUB C My Commission expires: b-ter32o% —;WOo0`,, A:•NJ A4q. ,9�b ce: • , • / OICt5 924•••B.......0 191325.1 3 I AMENDMENT TO OPTION TO LEASE GRAVEL PROPERTY AND GRAVEL PROPERTY LEASE WITH RIGHT OF FIRST REFUSAL THIS AMENDMENT TO OPTION TO LEASE GRAVEL PROPERTY AND GRAVEL PROPERTY LEASE WITH RIGHT OF FIRST REFUSAL("this Amendment")is made and entered into as of the 1` day of January, 2000, by and between Steven S. McWilliams, 12236 Weld County Road #8, Ft. Lupton, Colorado 80621 ("Lessor") and Mobile Premix Concrete, Inc., a Colorado corporation ("the Company")with its address at 1400 West 64'"Avenue,Denver,Colorado 8022L Recitals Lessor and the Company have heretofore entered into that certain Option to Lease Gravel Property("the Option")dated January 1, 1999, a Memorandum of which was recorded at Reception No. 2680523 on March 17, 1999 in the Weld County, Colorado real property records for certain property of Lessor located in Weld County("the Property"). The Option includes,as an attachment,a certain Gravel Property Lease with Right of First Refusal("the Lease"). The parties desire to extend the Initial Term set forth in the Lease and resolve certain other issues,and therefore desire to enter into this Amendment. Amendment Agreement Now therefore, in consideration of the payment by the Company to the Lessor of the amount of $7,065,the receipt and sufficiency of which is acknowledged by Lessor,the parties agree as follows: 1. The parties acknowledge that the Option remains in full force and effect, and except as modified by this Amendment, the terms of the Option and Lease govern the nghts and obligations of the parties. 2. Terms used in this Amendment shall have the same meaning as in the Option and the Lease. 3. The"Initial Term"defined in Section 2 of the Lease is hereby extended for five(5)years beyond the time set forth in Section 2 of the Lease. All other time periods based upon the Initial Term shall run from this revised Initial Term. 4. Lessor covenants and agrees that he will execute the Application for Zoning the Company has prepared in connection with the Property and that Lessor will not object to or oppose the application or the proceedings to obtain such zoning. Lessor will likewise cooperate in and not oppose the Company's permit application to the Colorado Division of Minerals and Geology, including but not limited to the execution of such landowner consents as may be required for the permit. Executed this:ii day of January,2000, to be effective as of January 1,2000. ThMOBILE PREMIX CONCRETE, INC., �( � � /�, a Colorado corporation STEVEN S. MCWILLIAMS By: J// Deevezz /`/GG Ate _(Title) ,. 440 COPY EXPLORATION AGREEMENT WITH RIGHT OF FIRST REFUSAL THIS EXPLORATION AGREEMENT ITH RIGIjT OF FIRST REFUSAL ("this Agreement") is made and entered into this /7 day of get fret, 02000 , by and between MARY K. CHIKIJMA (hereinafter referred to as "Owner"), whose legal address is 3550 Weld County Road 23, Fort Lupton, CO 80621 and MINERAL RESERVES, INC., a Colorado corporation(herein called the"Company"). 1. Payment for Agreement. In consideration of the sum of Seventy-five thousand and to be paid by the Company to Owner after January I, 2001 and no later than January 15, 2001, the sufficiency of which is hereby acknowledged by Owner, Owner hereby grants the Company the sole and exclusive right for the period and on the terms and conditions set forth below, to enter upon all of that real estate (the "Property") situated in Weld County, Colorado, described in Exhibit A attached hereto and by this reference incorporated herein for the purpose of exploring for, testing, evaluating, planning and obtaining permits and land use authorizations for the extraction and processing of 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 may be removed incident to sand and gravel operations and which are saleable and recoverable in the course of such operations (such substances being referred to herein as "Materials"). The foregoing payment is consideration for the rights granted by Owner under this Agreement and,unless Owner's title under Paragraph 3. is defective, the payment is non-refundable and shall not be credited against any payment under the lease contemplated in Paragraph 10. The Company shall not conduct operations for the commercial extraction of Materials on the Property until the Lease described in Paragraph 10 is negotiated and in effect. 2. Term. The term of this Agreement("Term")shall be for a fifteen- (15) month period commencing on the date first above written. 3. Title. Owner shall provide to the Company evidence that Owner owns the surface estate and the Materials for the Property including, without limitation, Owner's title policy and exception documents, any existing abstracts, the deed(s) by which Owner acquired the Property and any instruments affecting the Property executed by or in the possession of Owner and, within 15 days after mutual execution of this Agreement (the Title Deadline), a current title commitment for the Property, together with legible copies of all documents giving rise to exceptions or requirements in the title commitment (collectively, the 'Title Documents").. The Company shall have 45 days after the Title Deadline in which to examine title and to give written notice of any defects that, in the Company's opinion, render the title unmarketable. If the Company does not give written notice of any objections to title within such 45-day period, the title shall be deemed acceptable to the Company. If the Owner receives notice of defects within such 45-day period, and such defects are not cured by Owner within twenty-five (25) days of receipt of the written notice of title defects, or waived by the Company, then the Owner shall be obligated to return the payment made pursuant to Paragraph I to the Company if the Company Chikuma_ExloAgmt9.doc .r+ elects to terminate the Agreement because of such title defect. Such election to terminate must be made by the Company in writing within 30 days of the end of the 45-day period; failure to timely provide such notice shall be deemed a waiver of such title defects by the Company. 4. Existing Data. Owner shall also supply to the Company all information in Owner's possession regarding the extent,quality and location of Materials in place within the Property. • 5. Inspection and Testing. Owner hereby grants to the Company the right, subject to and with due regard for the rights of the existing farm and oil and gas tenant, through the Company's officers, employees, agents and contractors during the term of this Agreement to enter upon the Property, and to core, auger, drill, trench and otherwise test and sample for Materials, including stone,sand and gravel,soil and earth, in, on and under the Property, to drill, install and operate groundwater monitoring wells (registered, as required, with the Colorado State Engineer), to install and operate any air or other monitoring devices, and of free ingress and egress to and from the Property for such purposes and to bring thereon and remove their tools, machinery and equipment, and to take,record and remove such samples and perform such monitoring. 6. Confidentiality. The economic terms of this Agreement and the results of the Company's testing, sampling and operations shall be and remain the Company's confidential information and its sole and exclusive property; provided however, the Company shall supply Owner with copies of all such results, data, reports, studies and information and otherwise share such information with Owner within sixty (60) days after the Agreement terminates without execution of a lease or other agreement for operations on the Property, as described below, and Owner shall keep the same confidential for eighteen months after this Agreement terminates. 7. Survey. During the term of the Agreement, the Company shall have the right to obtain an ALTA survey of the Property("Survey"). Such survey shall be completed within 60 days after mutual execution of this Agreement. Any matter disclosed by the Survey as adversely affecting the Property shall be treated as a title defect in the same manner as matters disclosed by the title commitment and other title documents pursuant to Paragraph 3. The cost of such survey shall be paid by the Company. The Survey shall locate and plat existing below-ground utilities, including gas pipelines and facilities. 8. Zoning; Permits. During the Term of this Agreement, Owner hereby authorizes the Company, at the Company's expense and in Owner's name, if required, to apply for zoning classifications, variances or exceptions, and governmental approvals, permits, licenses or rights related to and required for Mining Operations and agrees to cooperate with the Company in obtaining such approvals and to execute or join in applications, plats and other documents which are required to obtain the same. The Company shall consult with Owner with respect to all permit applications and mining and operating plans of the Company; provided, however, that all final decisions on mine plans, operations, and permits shall be in the Company's discretion and control. The Company and Owner shall discuss and negotiate in good faith to reach a reclamation and final land-use plan for the Property to which both agree and which meets, as a minimum, the requirements of the State Mine Land Reclamation Board. The Company reserves the right to adjust the mining and reclamation plans to the extent necessary to mitigate the - 2 - r objections of the regulatory agencies or the public that could jeopardize the ability to obtain approvals for the entire project. 9. Damages from Operations. The Company is aware that there is a farm lease and an oil and gas lease on the Property. In planning and conducting drilling and other investigations, the Company will work with Owner to minimize damage to crops and the oil and gas operations currently conducted on the Property. The Company shall pay Owner the reasonable value of any crops then growing on the Property which are destroyed or damaged by operations conducted by the Company on the Property under this Agreement. In addition, the Company shall be responsible for any damages to such oil and gas operations by operations conducted by the Company on the Property. 10. Leasing Agreement. During the Term of this Agreement, Owner and the Company shall use best efforts to negotiate and enter into a Sand and Gravel I ease or other agreement ("Lease") that allows the Company to conduct operations to extract,process, sell and remove all of the economically recoverable deposits of Materials from the Property ("Materials Operations"). It is anticipated that the Lease agreement will be based upon negotiations as to at least the following typical items: a. The lease will be for an term of thirty (30) years, and may be extended for an additional ten (10) years if the Company is still conducting Materials Operations at the end of the initial 30-year term. The Owner and the Company have already negotiated this commercial term and understand that it will be included in the Lease. b. The Company will initially pay a Production Royalty on Materials extracted and sold from the Property in the amount of$0.50 per ton if the Owner supplies water to satisfy the operational and augmentation requirements of such materials Operations. The Owner and the Company have already negotiated this commercial term and understand that it will be included in the Lease. If the Owner does not supply sufficient water rights to satisfy operational and augmentation requirements, including any requirements following completion of mining operations, it is anticipated that such Lease will provide that the foregoing royalty rate will be subject to a negotiated adjustment to account for the extra cost to the Company of supplying such water. c. Annual advance minimum payments which will be credited against the production royalty payments otherwise due. d. Provisions regarding adjustment of production royalty rates to reflect changes in the cost of living or average price of stone products over the term of the Lease. e. The full right of access to the Property and the grant or assignment of any easements or rights-of-way on or to the Property necessary for the Company to conduct Materials Operations and restoration of the Property during the Lease; provided that Lease will provide that extraction and other operations will not occur immediately adjacent to the two existing residences on the Property without the Owner's express consent. - 3 - E The right to conduct processing operations, including crushing, washing,disposing of washed-fines material, and loading facilities and installation of a concrete or asphalt batch plant on the Property. g. Payment by the Owner of property taxes or taxes attributable to production royalty or not attributable to Materials Operations on the Property and payment by the Company of taxes attributable to improvements installed on the Property by the Company and to the Company's Materials Operations on the Property. h. Supply by Owner or adjustment of lease terms to account for water or water rights for use by the Company for Materials extraction and processing and dust control and use for temporary and permanent augmentation made necessary by Materials Operations, as more particularly set forth in Paragraph 10.b above. i. The right to commingle Materials from the Property with Materials from other properties operated by the Company, provided that before any such Materials are commingled, their volume/weight and content shall be determined to allow proper allocation to the Property from which they were removed. j. Compliance by the Company with all applicable laws, ordinances, regulations and permits necessary to conduct Materials Operations on the Property. k. Restoration of the Property after completion of Materials Operations in accordance with the Lease and with applicable permits and authorizations, and the grant to the Company of the right to enter the property for a reasonable time after termination of the Lease in order to complete and monitor required reclamation. 11. Property Development. In connection with negotiation of a Lease for Materials Operations, the Company agrees to use best efforts to investigate and negotiate with the Owner mutually beneficial reclamation plans and other operations utilizing the Company's equipment and expertise that will accommodate, facilitate and enhance Owner's development of the Property and use thereof after completion of Materials Operations. Any such agreements may be integrated as part of the Lease or may be separate at the mutual election of the parties. 12. Water Supply. Owner agrees to make available such water as may be legally available to Owner under Owner's existing water rights for testing and evaluation operations by the Company under this Agreement at such times and in such amounts as the Company may reasonably require at existing wellheads or other distribution or supply points on the Property. Both parties to this Agreement assume that Owner's existing water rights and water supply is sufficient for the Company's anticipated testing and evaluation efforts. If the Owner's supply of water is insufficient, any additional water needed for such evaluation shall be the sole obligation and responsibility of the Company. 13. Exclusive Dealing. During the term of this Agreement, Owner shall not solicit, accept or entertain offers or inquiries from any third party regarding extraction, processing or sale of Materials from the Property. This covenant shall run with the land and shall be binding upon the heirs, successors and assigns of Owner as to the Property or any part thereof. If Owner -4 - receives any unsolicited inquiries or offers as to the Property of any nature, Owner shall advise the inquiring or offering party of this agreement and, specifically of this Paragraph and of Paragraph 14,and shall further advise the third party that it will not accept any offer or engage in any negotiations regarding the Property while the provisions of this Agreement are in effect. 14. Right of First Refusal. If this Agreement terminates under Paragraphs 16 and 21 without Owner and the Company entering into a Lease pursuant to Paragraph 10, and if, during the fifteen- (15)month period after the date of termination, Owner receives an offer to purchase, lease or otherwise transfer all or any portion of or interest in the Property or in Materials for a price and on terms that Owner is willing to accept, then Owner shall give the Company notice of such offer and a copy of the offer, and the Company shall have thirty (30) days after receipt of such notice to elect to match the offer, and the Company and Owner shall thereafter close the purchase and sale of the Property or relevant portion thereof in accordance with such offer or as they may otherwise agree. If the Company does not exercise its preemptive right hereunder, Owner shall thereafter be free to close the purchase and sale of the Property, subject to this Agreement, on terms no less favorable to Owner than those submitted to the Company by Owner, free and clear of the Company's preemptive right for a period of 90 days after the Company failed to exercise the right. If no such sale is closed within the 90-day period, this right of first refusal shall be revived in the Company. Notwithstanding anything in this Paragraph, if this Agreement terminates pursuant to the provision of Paragraph 3, the Company shall not have a right of first refusal following termination. 15.Null and Void Agreements; Exception for Affiliate. Any entry by Owner into an agreement affecting the Property in violation of Paragraphs 13 or 14 shall be null and void ab initio and of no force and effect. Transfer by Owner of the Property or any interest therein to a corporation, limited liability company, partnership or other entity wherein the owner or owners thereof are Mary K. Chikuma and/or an immediate family member of Mary K. Chikuma shall not be a transfer subject to Paragraph 13 or 14,provided that the transferee agrees to be bound by this Agreement, including Paragraphs 13 and 14. 16. Duties on Termination. If this Agreement terminates without entry of Owner and the Company into a I Pace, the Company shall return the Property to the condition in which the Company at the commencement of operations found it. Upon such termination, the Company shall pay Owner reasonable amounts for any and all damages to crops, personal property and improvements and to the Property resulting from the operations of the Company, or its officers, employees, agents and contractors pursuant to the terms of this Agreement. 17. Liabilities. During the Term hereof, the Company shall be liable for any and all injuries or death to persons and any and all damages to or destruction of property that results from or is caused by the prosecution or omission of any work or obligation undertaken or required by this Agreement. 18. Labor and Materials. The Company agrees to keep the Property free and clear of liens, charges, claims or demands arising from the Company's operations hereunder and to promptly pay for all labor performed on the Property and for all supplies, materials, and - 5 - equipment used or placed on the Property. The Company may contest in good faith any lien; provided that,the Company shall not allow title to the Property or any portion of it to be lost. 19.Indemnifications. a. The Company shall defend, indemnify and hold harmless Owner from and against any and all claims,demands,judgments,and liability,including reasonable attorneys fees and expert fees, by or to any and all third parties resulting from the negligent acts or omissions of the Company or its agents, representatives, officers, employees, lessees and contractors in, on or about the Property. b. Owner shall defend and indemnify and hold harmless the Company and the Company's agents and employees from and against any and all claims, demands,judgments and liability, including reasonable attorneys fees and expert fees, by or to any and all third parties in any way related or connected to the use or operations of Owner on the Property while this Agreement is in effect, or the presence of Owner or Owner' agents, employees, licensees or invitees on the Property. c. The Company shall defend, indemnify, and hold harmless Owner from any and all liability resulting from its operations hereunder pursuant to all local, state and federal environmental laws, ordinances, rules and regulations, including but not limited to, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. §9601 et seq.) and the Resource Conservation and Recovery Act (42 U.S.C. §6901 et seq.), as any of such laws,ordinances,rules and regulations have been or are amended from time to time. d. The foregoing indemnifications shall all survive the termination of this Agreement. The indemnity provisions set forth in this Agreement shall apply to amounts paid in settlement of a claim by an indemnified party only if such settlement is approved by the indemnifying party,which approval shall not be unreasonably withheld. 20. Taxes. During the term of this Agreement, the Company shall pay all personal and real property taxes assessed against machinery, tools, equipment, supplies, buildings, improvements, pipelines and other property and/or fixtures placed by Company on the Property. Owner shall pay all other real property taxes on the Property and on any improvements thereon, including without limitation, improvements that Owner installs on the Property for Owner's own purposes. 21. Termination. If, despite their best, good faith efforts, the parties are unable to negotiate a satisfactory Lease for Materials Operations or Property development agreements during the Term of this Agreement, this Agreement shall expire and, except as set forth in Paragraphs 6, 14, 15, 16, and 19, the parties shall have no other obligation to each other. Owner shall retain all payments received from the Company hereunder as consideration for the grant of this Agreement and the rights of exclusive dealing of paragraphs 13 and 14. 22. No Development Covenant. There is no implied covenant or obligation of the Company to explore, develop or mine the Property or to sell Materials. The Company may - 6- maintain this Agreement in effect for its term and any allowed extensions by making the payments set forth herein. 23. Assignment. The provisions of this Agreement shall extend to and be binding upon the heirs, personal representatives, successors, assigns and sublessees of Owner and the Company. The Company shall have the right to subcontract with others for the performance of exploration,development and mining work hereunder,subject to all terms of this Agreement, but no such subcontract shall relieve the Company of its obligations to Owner hereunder. 24.Notice. Notices of default or of cancellation or termination of this Agreement and all other notices required or permitted hereunder shall be given by registered or certified mail, postage prepaid,addressed to the parties as follows: If to the Company: Mineral Reserves, Inc. Attn: Land Manager P.O. Box 215001 1400 W.64th Avenue Denver,CO 80221 with a copy to: Lafarge Land Department 1590 W. 12i°Ave. Denver,Colorado 80204 If to Owner: Mrs.Mary Chikuma 3550 Weld County Road 23 Fort Lupton,CO 80621 25. Entire Agreement. This Agreement contains the entire agreement between the parties hereto, and neither it nor any part of it may be changed,altered, modified, or limited orally or by any agreement between the parties unless such agreement be expressed in writing, signed, and acknowledged by the Owner and the Company, or their respective heirs, personal representatives,successors and assigns. - 7 - IN WITNESS WHEREOF, this Agreement has been duly executed as of the date first above written. MAR K.CHIKUMA MINERA RESERVES, IN By: Sc tt udahl Vice President—General Manager i -8 - EXHIBIT A PROPERTY The N%:of Section 13,Township 1 North,Range 67 West of the 6th P.M.,and the W%of the NW%.of Section 18,Township 1 North, Range 66 West of the 6th P.M.,Weld County, Colorado. _9_ 1111111 IIIII X111111 III►°t1111111111111 III 11111 IIII lilt 326 2954326 05/24/2002 04:001' weld County CO 1 of 3 R 16.00 D 0.00 J.A. "Suld"Tsukamoto MEMORANDUM OF GRAVEL PROPERTY LEASE WITH RIGHT OF FIRST REFUSAL THIS MEMORANDUM is to evidence that certain Gravel Property Lease with Right of First Refusal dated May 1, 2002(the"Lease"),by and between the CHIKUMA FAMILY,L.L.C.,a Colorado limited liability company with its address being 3550 Weld County Road 23,Fort Lupton,Colorado 80621 ("Lessor")and MINERAL RESERVES,INC.,a Colorado corporation(hereinafter referred to as the"Company"),with its address at 1400 West 64th Avenue,Denver,Colorado 80221, Attn.: Division Land Manager. I. Real Property. The I Pace covers the real property situate in Weld County and described in Exhibit A attached hereto and made a part of this Memorandum(hereinafter referred to as the"Property"). 2. Grant. Pursuant to the terms of the Lease,Lessor hereby leases,lets and demises to the Company the Materials as defined herein, in,on and under 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 the I race,along with the right during the Term to locate and operate and/or sublease aggregate, asphalt and concrete plants and with associated easements as provided in the Lease. "Materials"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 and which are saleable and recoverable from the Property in the course of such operations. 3. Term. The term of the I Pace is for an initial period of thirty(30)years commencing on the 1"day of May, 2002,and ending on the 30th day of April,2032("Tern"). Provided the Company is conducting commercial mining operations at the end of the 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 Property. 4. Production and Advance Royalties. The Lease provides for the payment by the Company to Lessor of production and annual advance minimum royalties for materials removed and sold. Advance minimum royalties are credited against and offset production royalties otherwise due. 5. Operations. The Company,pursuant to the I ease, has the right to construct, maintain, and use roads, pipe lines,power lines,telephone lines,and stockpile areas and any right-of-way it deems necessary or desirable for its operations on the P.opc ty related to the Company's operations under the Lease, and the right to strip and remove overburden and otherwise to use and occupy the Property as is reasonably required in connection with mining,quarrying,extracting,processing, storage,transportation,sale and removal of Materials from the Property and from other properties on which the Company is conducting operations. Lessor,under the Lease,authorizes Company on Lessor's behalf to apply for and obtain zoning or other governmental land use classifications,permits,approvals, licenses,and rights that are reasonably required in connection with the operations that are contemplated under the Lease. 6. Right of First Refusal. During the Term of the Lease,the Company has the right to elect to match any offer to purchase all or any portion of the Property or any interest therein that Lessor receives and is willing to accept. The Company shall have thirty(30)days after receipt of notice of such offer to elect to match the offer, and Company and Lessor shall thereafter close the purchase and sale of the Property or relevant portion thereof in accordance with such offer or as they may otherwise agree. 7. End of Term. Under the Lease,the Company has(a)the right for one year from the date of the expiration or termination of the Lease to dismantle and remove machinery, equipment, improvements, and other facilities installed or constructed on the Property by the Company and to sell and remove Materials then stockpiled on the Property,and(b)the right for two years to access and enter the Property and effect on the Property such restoration,rehabilitation and reclamation as may be required to discharge the responsibilities which the Company has assumed pursuant to its permits and the I race and to procure the release of any bond or other financial assurance provided by the Company. 1111111111111111111 I I I11111111111111?"!I 11101E III I 2964326 05/24/2002 04:OOP Weld County CO 2 of 3 l[ 16.00 I) 0.00 J.A. "Sold"Taukamoto 7. Additional Information. This Memorandum is executed solely for providing notice of the existence of the Lease. Additional information regarding the Lease, the terms of which shall control the relationship of the parties hereto, may be obtained by contacting the parties at the addresses stated above. IN WITNESS WHEREOF,this Memorandum of Gravel Property Lease with Right of First Refusal has been duly executed to be effective as of the 1st day of May,2002. LESSOR: THE COMPANY: CHIKUMA FAMILY,L.L.C., MINERAL RESERVES,INC., a Colorado limited liability company a Colorado[ corporation am • •By: fa., ZJ Cic+, -.C.,c.n..,.� By: A•fx2P 72 Mary K hikuma,Manager DIM/ie, a-? AA/ O'✓'4.4o' ,e4 .44.i itle) STATE OF COLORADO ) ay N COUNTY OF /0 The foregoeing instrument was acknowledged before me this ddaayof 2OO. by Mary K. Chikuma as •---Manager of the Chikuma Family,L.L.C.,a Colorado limited liability company. Witness my hand and official seal. _ NN"\\ BITy �` My commission expires: MyComirission Expires 12/162000 —\�••""'•� 1� ?"--6-66 i •J2�' A.4..•; trr,, [SEAL] a �� t p i I I. . O Notary Public /firit A \• U,:�O,WO; .F • o STATE OF COLORADO )) r�grFapGOvr ss. at tic/COUNTY OFjltilti -e-.V ` The foregoing instrument was acknowledged before me this.5gy of n. 200c by �UU( i)C '0/_,as b,tiaSio n of Mineral Reserves,Inc.,a Colorado corporati ((JJ ictnd /Nttnk �,.- Witness my hand and tMcial seal. M7 Corcmissbn Ernes 12/18/2003 ";My commission expires: JO�jH SIP;`t� r [SEAL] /G i&ft 'fir/ f •.e• p1A/I • If J • *• / Notary Public i • • • 1 Olt-- ,..---. /i��J9jF Ug4�OPQ�l OF COQ, -- I 11110111111111111III111110111111111.a111111111VIII 2954326 05/2412002 04:00P Weld County CO 3 0l 3 R 15.00 D 0.00 J.A. "Suki"Tsukamoto EXHIBIT A PROPERTY The N%s of Section 13,Township I North,Range 67 West of the 6th P.M., and the W%: of the NW''A of Section 18, Township 1 North, Range 66 West of the 6th P.M.,Weld County,Colorado. MEMORANDUM 0FOUKUMA rhASE.00C l ( v ct,?-. -Recto : Vicki L. Jaynes, Paralegal Baker& Hostetler, LLP 303 E. 17th Ave., Ste. 1100 Denver, CO 80203 AMENDMENT TO GRAVEL PROPERTY LEASE WITH OPTION TO PURCHASE SURFACE This AMENDMENT TO GRAVEL PROPERTY LEASE WITH OPTION TO PURCHASE SURFACE ("Amendment") is made this _ day of May, 2005 by Donald L. Rittenhouse and Suzanne Rittenhouse, 205 N. Patit Road, Dayton, Washington 99328, ("Lessors") and Lafarge West, Inc. 10170 Church Ranch Way, Suite 200, Westminster, Colorado 80021 ("Lessee"). RECITALS A. Donald L. Rittenhouse and Suzanne Rittenhouse, as lessors, and Mobile Premix Concrete, Inc., as lessee, executed a Gravel Property Lease with Option to Purchase dated August 7, 2000 ("Original Lease"). All capitalized terms used in this Amendment and not defined herein shall have the meanings ascribed to such terms in the Original Lease, (together with this Amendment, the"Lease"). B. Lafarge West, Inc. is the successor-in-interest to Mobile Premix Concrete, Inc. in the Original Lease. C. Lessors and Lessee wish to amend the Original Lease to increase the size of the Operational Plant Site and eliminate Lessee's option to purchase the surface estate. AGREEMENT In consideration of the promises and agreements made in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessors and Lessee agree as follows: 1. Expansion of Operational Plant Site. The definition of "Operational Plant Site" in Paragraph 1.D on page 2 of the Original Lease shall be amended by replacing the phrase "up to 25 acres in area" with the phrase "up to 37 acres in area." 2. Deletion of Option to Purchase Surface Estate. Paragraph 17 on pages 12 and 13 of the Original Lease shall be deleted in its entirety and replaced with the following: 17. Order of Operations. In the mining of the property the parties understand and contemplate that the last portion of the Property to be mined would be in the south along Weld County Road 6. In addition, the reference to Paragraph 17 in Paragraph 14.C on page 11 of the Original Lease shall be deleted. 3. Permit Amendment. Lessor consents to and authorizes Lessee to prosecute in Lessor's name and with Lessor's consent the present application for an amendment to Reclamation Permit M-2000-016 filed with Weld County on or about May 10, 2005, provided Lessee does not request any changes having a material adverse effect on Lessor or Lessor's property. Lessee is expressly authorized to make or consent to changes in the application for such amendment that are required or reasonably requested by county authorities, provided such changes are not in violation of or do not contravene other express provisions of the Lease and do not have a material adverse effect on Lessor or Lessor's property. 4. Effect. Except as specifically amended by Section 1 of this Amendment, the Original Lease shall not be amended or modified and shall continue in full force and effect. In the event of any conflict or inconsistency between the terms and provisions of this Amendment and the terms and provisions of the Original Lease, the terms and provisions of this Amendment shall control. 5. Counterparts; Facsimiles. This Amendment may be executed in one or more counterparts, each of which taken together shall constitute one original document. A counterpart of this Amendment transmitted by facsimile shall, if it is executed, be deemed in all respects to be an original document. Receipt of a signed copy by facsimile shall constitute notice of acceptance of the terms of this Amendment by the party who signed the facsimile copy. IN WITNESS WHEREOF, Lessors and Lessee have executed this Amendment to be effective as of the date first set forth above. LESSORS: LESSEE: Lafarge West, Inc. Donald L. Rittenhouse - , i Title: /j-z., /tic., ;.Ni . /41<t,"_ -S e, .w CZCV ' (It.'1 Suzart a Rittenhouse 2 ACKNOWLEDGMENTS STATE OF COLORADO ) ss. COUNTY OF \•,VV'1C g ) The foregoing instrument was acknowledged before me on May 9_4 , 2005 by Donald L. Rittenhouse and Suzanne Rittenhouse, husband and wife. Witness my hand and official seal. • ........ CMy commission expires: �L � e . build _ • i • , . • Notary Public STATE OF COLORADO ) ) ss. COUNTY OF ,)1 ;1 ' i )The foregoing instrument wa acknowledged before me on May k I , 2005 by .U, Qe ent nn, as` t ' I d of Lafarge West, Inc., a Delaware .............. ,, corporation. ( V\9 n. (j �1�, ""nptlHO s ) Witness my hand and official seal. y Y • 6, • _Y, d c My commission expires: iu1\� \ LL j• �� s • Notary Public Atre 3 JUN. 23. 2005 11 :34AM LAFARGE' NO. 7439 P. 1 L FARG E NORTH AMERICA AGGREGATES, CONCRETE & ASPHALT 2 FAX TRANSMISSION Date: jfift& -/h l 7..05 To: SQJutlll/ Unr�I Company: uuU Fax Number. 3 No.of pages(including cover sheet):g� �(ala5 (0169 From: 00h • Subject: ^• ^ ,w t at I \ ' one, \ -R Vat a uSta S \iP3 tot-V n oc ca t\iv o, \c *Act o.�t, any addie,ss \ 0,iQJ) \fteA ek cm kAw , Ck\T LAFARGE WEST INC. —Aggregates, Concrete, and Asphalt _ -'` 1 _ 10170 Church Ranch Way,S ' , "` orado 80021 ` WWW�" "`1`f--i . 111104— `{J[-]) Telephone:(303)657-4000 acsImile: (303)857-4037 ---„ JUN. 23. 2005 11 :34AM LAFARGE NO. 7439 P. 2 AMEND1kWNT TO GRAVEL PROPERTY LEASE WITII OPTION TO PURCHASE SURFACE This AMENDMENT TO GRAVEL PROPERTY LEASE WITH OPTION TO PURCHASE SURFACE ("Amendment") is made this %day of May, 2005 by Donald L. Rittenhouse and Suzanne Rittenhouse, 205 N. Petit Road, Dayton, Washington 99328, ("Lessors")and Lafarge West,Inc. 10170 Church Ranch Way, Suite 200, Westminster,Colorado 80021 ("Lessee"). RECITALS A. Donald L. Rittenhouse and Suzanne Rittenhouse, as lessors, and Mobile Premix Concrete,Inc.,as lessee, executed a Gravel Property Lease with Option to Purchase dated August 7, 2000 ("Original Lease'). All capitalized terms used in this Amendment and not defined herein shall have the meanings ascribed to such terms in the Original Lease- (together with this Amendment,the"Lease"). B. Lafarge West, Inc. is the successor-in-interest to Mobile Premix Concrete, Inc. in the Original Lease. C. Lessors and Lessee wish to amend the Original Lease to increase the size of the Operational Plant Site and eliminate Lessee's option to purchase the surface estate. AGREEMENT In consideration of the promises and agreements made in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessors and Lessee agree as follows: 1. Expansion of Operational Plant Site. The definition of"Operational Plant Site" in Paragraph ID on page 2 of the Original Lease shall be amended by replacing the phrase "up to 25 acres in area"with the phrase"up to 37 acres in area." 2. Deletion of Option to Purchase Surface Estate. Paragraph 17 on pages 12 and 13 of the Original I Pace shall be deleted in its entirety and replaced with the following: 17. Order of Operations. In the mining of the property the parties understand and contemplate that the last portion of the Property to be mined would be in the south_along Weld County Rnad.6. .. In addition, the reference to Paragraph 17 in Paragraph 14.C on page 11 of the Original Inv.shall be deleted. 3. Permit Amendment. Ircaor consents to and authorizes Lessee to prosecute in Lessor's name and with Lessor's consent the present application for an amendment to Reclamation Permit M-2000-016 filed with Weld County on or about May 10, 2005, provided Joo916A76_7 nor JUN. 23. 2005 11 :34AM LAFARGE NO. 7439 P. 3 Lessee does not request any changes having a material adverse effect on Lessor or Lessor's property. Lessee is expressly authorized to make or consent to changes in the application for such amendment that are required or reasonably requested by county authorities, provided such changes are not in violation of or do not contravene other express provisions of the Lease and do not have a material adverse effect on Lessor or Lessor's property. 4. Effect. Except as specifically amended by Section 1 of this Amendment,the Original Lease shall not be amended or modified and shall continue in frill force and effect. In the event of any conflict or inconsistency between the terms and provisions of this Amendment and the terms and provisions of the Original Lease, the terms and provisions of this Amendment shall control. 5. Counterparts; Facsimiles. This Amendment may be executed in one or more counterparts, each of which taken together shall constitute one original document A counterpart of this Amendment transmitted by facsimile shall, if it is executed„be deemed in all respects to be an original document. Receipt of a signed copy by facsimile shall constitute notice of acceptance of the terms of this Amendment by the party who signed the facsimile copy. IN WITNESS WHEREOF, Lessors and Lessee have executed this Amendment to be effective as of the date first set forth above. LESSORS: LESSEE: Lafarge West,Inc. fir Donald L.Rittenho &—.?-4 fockt'n-EIrtt— "� Title: Arcc.; A/o.,7ar j%rA4•., Cl/ - Suz Rittenhouse , I 2 JUN. 23. 2005 11 :35AM LAFARGE, NO. 7439 P. 4 iIl ACKNOWLEDGMENTS STATE OF COLORADO ) )ss. COUNTY OF LAULYCL The foregoing instrument was acknowledged before me on May It,2005 by Donald L. Rittenhouse and Suzanne Rittenhouse,husband and wife. ...... Witness my hand and official seal_ My commission expires: . 19.k\\ R, ( f =r Notary Public STATE OF COLORADO ) +.,,n. ss. COUNTY OF_\d eAc V) ) The forego' instrument w acknowledged before me on May1 , 2005 by , nn l k erne. as acknowledged Lafarge West,Inc.,a Delaware corporation. j` ("cg ""Durao' Witness my hand and official seal. fr`'�� ��c` My commission expires: .\i ` `1 ).Ltri ;- ^ Notary Public .... ! r 3 JUN. 23. 200511 :35AM LAFARGE - N0. 7439 P. 5 DONALD L. RITPENHOUSE AND SUZANNE RITI'ENHOUSE GRAVEL PROPERTY LEASE WIT!!OPTION TO PURCHASE SIFRFACE. :040, ‘, azezh 2' ioc THIS INDENTURE, dated this 7 ' day of 45 )998-(hereinafter referred to as the "Lease"), b Ix eentD n�ld ' _ " aaae Rittenhouse, with their address being Qr, �' ereinafter referred to as 4/ "Lessor" inclusively) and Mobile Premix Concrete, Inc., a Colorado corporation (hereinafter 51/1- FFf7(at referred to as the "Company"), with its address at 1400 West 64th Avenue, Denver, Colorado 80221. WITNESSETH In consideration of the sum of FIFTEEN THOUSAND DOLLARS ($15,000.00) paid by the Company to Lessor (which includes $5,000 paid for the Option to Lease Gravel Property ("Option")under which this Lease is taken), the receipt of which is hereby acknowledged by Lessor, which sum shall satisfy the advance minimum royalty requirement identified in Paragraph 4 with respect to the period from the commencement date hereof to the end of the first year of the term of this Lease, 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 with associated uses an"Operational Plant Site," as defined herein. TOGE WITH the right to use and exercise the water and water rights appurtenant to the Property that belong to Lessor ("Water Rights") to the extent appropriate for the operation of the Operational Plant Site and for the extraction, removal and processing of the Materials, as well as for=vegetation and reclamation, including exposure of alluvial waters to evaporation. • LESSOR RESERVES the right to use and lease the surface of the Property for agricultural, hunting and fishing and horseback riding purposes and as provided in Paragraph 18 and for other existing residences and accessory structures only, provided that such uses shall cease during the times and for the portions of the Property where the Company is conducting active mining or reclamation activities and where the Operational Plant Site is located, and provided that Lessor as part of such use shall pay for, install and maintain at its sole cost any and all fencing the parties mutually agree is necessary to protect the Company's operations from interference from such uses of Lessor. Lessor shall not interfere with the Company's operations under this Lease in connection with such uses, and Lessor releases Orr-grave1.98 1 JUN. 23. 2005 11 :35AM LAFARGE' NO. 7439 P. 6 • Company from any liability for damages or loss to Lessor in connection with Lessors' use of the Property for such purposes. 1. Definitions. A. Commercially Economic Materials shall mean all Materials that are removed from the Property, and all Materials that can be sold at a profit. B. Lease Year shall mean a period of one year beginning on the date or the anniversary date on which the Lease is executed. C. Materials shall mean stone, sand and gravel and any overburden and valuable solid minerals, but excluding all hydrocarbon minerals including but not limited to 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. D. Operational Plant Site shall mean a portion of the Property to be determined by the parties as provided in Paragraph 5 that is up to 25 acres in area upon which may be located a concrete batch plant and/or asphalt batch plant and/or sand, gravel, concrete and asphalt crushing, screening and washing facilities. E. Residential Area shall mean the existing house and a one acre area upon and around the existing]louse referred to in the Option to Lease Gravel Property between the parties dated g,/998, (`Option") ,and which has been identified by< K the parties and excluded from the Property covered by this Inge- }% 2. Term. Tb,;Term of this Lease shall be an initial period of twenty,(20) yearse�,,�/ commencing on the t3 day of ��- , 199g and ending on the day of 7V AT� 20/9("Initial Term".Th Ctompany shall have the option to extend the Initial for two additional periods of eight(8)years each("Successive Terms")by giving to Lessor notice of such extensions at least sixty (60) days before the beginning of each additional successive period; provided, however, this Lease and the Property covered by this Lease during each Successive Term shall be limited to the Operational Plant Site and a 50 foot wide easement for the purposes of installing, maintaining and operating conveyors to service mining on other properties_ 3. Production Royalties. A. For all Materials mined, quarried, extracted and sold or removed from the Property during each calendar month, the Company shall pay to Lessor a royalty at Orr-gravd.98 2 JUN. 23. 2005 11 :35AM LAFARGE NO. 7439 P. 7 the rate of thirty-five (35) cents per ton of 2,000 pounds within twenty (20) days after the close of such calendar month, which royalty rate shall be increased annually on the first day of the month following the anniversary of the date this J ease becomes effective at the rate of three and one-half percent(3.5%) per annum. The royalty payments shall be accompanied by a monthly statement with the royalty calculation that includes an accounting of the tons of Materials mined from the Property for the month, the tons of such Materials removal from the Property for the month and the tons of such Materials sold for the month. B. The Company shall keep and maintain adequate and accurate records of the quantities and prices sold for Materials mined, removed and sold. Lessor shall have the right at all reasonable times during business hours to examine such records of the Company at the offices of the Company or at the Operational Plant Site and to verify the quantifies of Materials mined, removed and sold and the accuracy of the scales used to weigh Materials. 4. Minimum Royalties. Advance minimum royalty shall be paid at the rate of FIFTEEN THOUSAND DOLLARS ($15,000.00) for each of the fast through fifth Lease Years. In this regard, the Company has paid Lessor the sum of FIFTEEN THOUSAND DOLLARS ($15,000.00) as above receipted for, for the first Lease Year, and the Company shall pay a like amount(less credit for any $3,000 payment to extend the Option)prior to the beginning of each Lease Year thereafter through the fifth Lease Year. Commencing in the sixth Lease Year and continuing through the tenth Lease Year, the advance minimum royalty shall be FORTY-FIVE THOUSAND DOLLARS ($45,000.00)per Lease Year, and thereafter the advance minimum royalty shall be increased$30,000.00 for each subsequent five-year period so that in Lease Years eleven (11) through fifteen(15), it shall be $75,000.00, and in Lease Years sixteen(16) through twenty (20), it shall be $105,000.00, all such payments to be advance minimum royalty. Amounts paid as advance minimum royalty shall be credited against and applied to reduce amounts otherwise payable as production royalty pursuant to Paragraph 3. Production royalties paid pursuant to Paragraph 3, after taking into account advance minimum royalties paid pursuant to this Paragraph, shall be applied in succeeding years to reduce amounts subsequently payable as advance minimum royalty. Notwithstanding the foregoing, if the Company mines Materials from other properties which the Company processes at the Operational Plant Site, then, in order for the Company to maintain this Lease in effect for mining purposes during the Initial Term, the advance minimum royalty shall be increased to $175,000 ('enhanced advance minimum royalty") per Lease Yeal for so lotijas necessary to cause the total payments to Lessor to equal two million dollars ($2,000,000) from all prior advance royalty, production royalty and such enhanced advance minimum royalty. Such enhanced advance minimum royalties paid, if any, shall offset amounts of advance minimum royalties and production royalties to be paid subsequently. Except as otherwise specifically provided herein, Lessor shall not be required to return to Orr-gravel-98 3 JUL 23. 2005 11:36AM LAFARGE NO. 7439 P. 8 Lessee any advance minimum royalty payment or enhanced advance minimum royalty payment. Nor shall the payment by the Company of either advance minimum royalties or enhanced advance minimum ro alties suspend the obligation of the Company hereunder to fully mine the Property for Cornm►ercially Economic Materials during the Initial Term. 5. Operational Plant Site. A. The Company shall have the right to prematurely terminate the Initial Term for mining prior to the expiration of twenty (20)years and with such termination shall have the right to continue this Lease only with respect to the Operational Plant Site for an additional Successive Term or Terms as described in Paragraph 2, provided that, and only if the Company at the time of such early termination of the Initial Term has first mined all the Commercially Economic Material from all areas of the Property other than the Operational Plant Site. During any Successive Term or Terms after mining ceases either within the twenty (20) years that would have constituted the Initial Term or thereafter, the advance minimum royalties in Paragraph 4 shall be replaced by an anrn+al rent and advance minimum royalties as follows: If the Company uses the Operational Plant Site during the Successive Term or Terms to process, batch, transport or convey Materials from off site and/or from lands adjoining or surrounding the Property, the Company shall pay rent of$7,500.00 per Lease Year increased annually each Lease Year, at the rate of 3.5% per annum', If the Operational Plant Site has not been mined, the Company shall pay in addition to the rent each Lease Year, an advance minimum royalty in an amount equal to 108,000 tons of Materials multiplied by the production royalty rate applicable for the particular Lease Year as set forth in Paragraph 3. No advance minimum royalty shall be payable for the Operational Plant Site after advance minimum royalty has been paid for a total of 864,000 tons of Materials or if the Operational Plant Site was fully mined during the Initial Term, although the $7,500 annual rent plus increases shall be paid. Advance minimum royalties paid for the Operational Plant Site shall be offset on a tonnage basis against production royalties in the event and at the time the Company mines the Materials from the Operational Plant Site (e.g., the payment of advance royalty on 108,000 tons of Materials shall negate the duty to pay production royalties on the same tonnage when mined). Lessor shall retain any and all such advance minimum royalties paid whether or not or to what extent the Company actually mines the Operational Plant Site; provided, however, the Company shall pay production royalties as provided for in Paragraph 3 for tons of Materials actually mined in excess of the tonnage for which it has paid the advance minimum royalties hereunder. Orr-gravet.98 4 JUN. 23. 2005 11 :36AM LAFARGE' NO. 7439 P. 9 B. The I ' nal Plant Site and any arms easements and the location and alignment or r ,tlgpnnen of the conveyor shall be agreed upon by the Lessor, which agreement shall not be easonably withheld. The access casement and conveyor easement shall be 50 feet,in width in the original Property area. The Company shall also construct and maintain a crossing either over or under the conveyor to allow for a vehicle of 10 feet in width and 9 feet in height to pass over or under the conveyor. C. The Company shall have eighteen(18) months after it removes all improvements from the Operational Plant Site to remove and mine the Materials under the Operational Plant Site, for which it shall pay the production royalties described in Paragraph 3 subject to offset for advance minimum royalties paid pursuant to Paragraph 4 or Paragraph 5.A. D. At any timer that the Property is being used solely for an Operational Plant Site, Lessor shall have the right to reenter, occupy and use those areas of the Property to the extent that the permit and related financial assurance have been released by the State Division of Mines and Geology and to the extent that such use does not interfere with the Company's operations. 6. Water. The Company shall have the right to use any and all Water Rights associated with the Property to�tte extent such use is necessary in its operations. The use by the Company of the Water Ri'gh$$s shall be in compliance with all applicable laws, rules and regulations and other conditions governing the use of the Water Rights and related to the Company's operations on the Property, including without limitation, all mining and post mining requirements for augmentation related to pits and reclaimed areas. The Company is wholly responsible for and shall obtain all water rights in addition to the Lessors' Water Rights that arc necessary for its operations, including its mining and processing operations and to comply with all post mining and reclamation requirements, and shall obtain any agreements, decrees or permits for change of use or augmentation as may be required, all at the Company's sole cost and expense. 7. Operations. • A. Except as provided in Paragraph 5 with respect to the Operational Plant Site and except for the Residential Area, Lessee has the duty and obligation to fully mine the Property for all Commercially Economic Materials during the Initial Term. B. The Coariany shall conduct its operations on the Property in a prudent and workmanlike manner and in accordance with good and accepted mining and business practices and it}compliance with all applicable federal, state and local laws, rules and regulations. The Company shall plan its operations so as to remove all Commercially Economic Materials from the Property and so as to avoid undue waste or Orr-graveL98 5 JUN. 23. 2005 11 :37AM LAFARGE NO. 7439 P. 10 loss of Materials. Subject to its obligation to hilly mine all Commercially Economic Materials from the Property during the Initial Term set forth in Paragraph 7.A, and the time limit to mine the Operational Plant Site after removal of improvements as set forth in Paragraph 5, the timing, nature, manner and extent of mining operations, processing and sales shall be within the sole discretion of the Company, and the Company shall not • be required to mine, preserve or protect in its operations any Materials which, under good mining practices, cannot be mined or sold at a reasonable profit to the Company at the time they are extracted. C. The Company shall have the right to install, construct, operate, maintain, dismantle, and remove plants, machinery, equipment, improvements, and other facilities including, but not limited to, roads, rail lines, pipe lines, power lines, telephone lines, water courses, wells, dams, ponds, and stockpiled areas and any right- of-way it deems necessary or desirable for its operations on the Property related to the Company's operations under this Lease. The Company shall have the right during the Initial Term of this Len' and without payment to Lessor (except for production royalties payable pursuant to Paragraph 3), to strip and remove overburden and otherwise to use and occupy the Property in conjunction with other properties, as is reasonably required in connection with mining, quarrying, extracting, processing, storage, sale and removal of Materials from the Property and from other properties owned or leased by the Company. I). The Company shall consult with Lessor with respect to all permit applications, plans and designs of the Company, and the Company shall make reasonable efforts to take Lessors' requests into account; provided, however, that all final decisions on mine plans, operations, reclamation, permits and other plans of operations shall be in the Company's sole discretion and control. E. Lessor authorizes the Company on its behalf and agrees to cooperate with the Company, at the Company's sole expense, to apply for and obtain zoning or other governmental land use classifications, Permits, approvals, licenses, and rights (hereinafter'authority')'that are reasonably required in connection with the operations that are contemplated under this Lease; provided, however, the Company shall obtain in its name any permit from the State Division of Minerals and Geology and any special use permit from a local jurisdiction and provide bonds or other financial assurance for its operations, including for the restoration, reclamation or rehabilitation of the Property, as may be required or advisable. F.• If Les-tors' actions praolutre t6.e Company from being able to perform mining or processing operations pursuant to this Lease, the Company, at its election, may terminate this Lease by giving ninety (90) days prior written notice to Lessor without any further obligation to Lessor. Lessor, in its sole discretion, may remedy such action within thirty (30) days, in which case this Lease shall not terminate. The Orr-gravd.98 6 JUN. 23. 2005 11 :37AM LAFARGE NO, 7439 P. 11 Company, as part of termination, shall have the right at its option to have Lessor return any advance mi i royalties not offset by production royalties, except for those payments which th Company paid to Lessor for the Option. G. The Company shall comply with all applicable laws and regulations with respect to labor and employment for its officers and employees, including, but not limited to, laws and regulations relating to wages and hours and the withholding of taxes for payroll and contributions. 8. Waiver of Lateral Support. Lessor hereby waives the lateral support for mining purposes for the lands located between the Property's boundary lines and the boundary lines for those adjacent properties that arc owned or leased by the Company. Upon the completion of mining or the termination or expiration of this Lease, whichever occurs first, the Company shall reconstruct the lateral support on the lessors' property line such that the support will have a minimum top width on Lessors' property of 35 feet. 9. J.iabilities. A. The Company shall defend, indemnify and hold harmless Lessor and Lessors' agents and employees from and against any and all claims, demands, judgments, and liability,'including reasonable attorneys fees and expert fees, by or to any and all third parties in any way related or connected to the operations or activities of the Company or its agents, representatives, officers, employees, lessees and contractors in, on or about the Property or otherwise pursuant to this Lease, including but not limited to, any of the negligent acts or omissions of the Company or its agents, representatives, officers, employees, lessees or contractors, or their operations or activities, or the prosecution of or omission of any work or obligation under this Lease. B. Lessor shall defend and indemnify and hold harmless the Company and the Company's agents and employees from and against any and all claims, demands, judgments and liability; including reasonable attorneys fees and expert fees, by or to any and all third parties in any way related or connected to the use or operations of Lessor on the Property while this Lease is in effect, or the presence of Lessor or Lessors' agents, employees, licensees or invitees on the Property. C. The Company shall defend, indemnify, and bold harmless Lessor from any and all liafiilitp in any way related or connected to its operations heieunder pursuant to all local, state and federal environmental laws, ordinances, rules and regulations, including but not limited to, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. §9601 et seq.) and the Resource Orr-gravet.98 7 JUN. 23. 2005 11 :37AM LAFARGE NO. 7439 P. 12 Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), as any of such laws, ordinances, rules and regulations have been or are amended from time to time. D. The foregoing indemnifications shall all survive the termination of this Lease. The indemnity provisions set forth in this Lease shall apply to amounts paid in settlement of a claim by'an indemnified party only if such settlement is approved by the Indemnifying party, which approval shall not be unreasonably withheld. 10. Insurance. A. The Com any shall maintain at its sole expense and at all times stawtory Worker's Compensation and Occupational Disease Disability Insurance coverage as required under the laws and regulations of the State of Colorado for all its officers and employees who perform work for the Company hereunder. B. The Company shall purchase, at its sole expense, and shall maintain at all times the following minimum insurance protection: 1. Comprehensive General Liability and Property Damage Insurance in the amount of$1,000,000 combined single limit; 2. Employer's Liability Insurance in the amount of$100,000 each occurrence; 3. Automobile Liability Insurance in the amount of$1,000,000 combined single limit; and 4. Adequate and reasonable insurance for other risks ordinarily insured against in similar operations. 5. All policies shall provide thirty (30) days written notice to Lessor of cancellation or ally material changes. • C. The Company agrees that it shall require all independent contractors, contractors and subcontractors who perform work in connection with the Property to have similar and adequate insurance in full force and effect. A. Lessor warrants that they own the surface estate and the Materials for the Property, and Lessor agrees to defend said title against adverse claims to such title made by, through or under lessor, but not otherwise. Orr-gravcl.98 8 I! JUN. 23. 2005 11 :38AM LAFARGE, NO. 7439 P. 13 B. The Company has accepted Lessors' marketable title, to the best of its knowledge, at the exercise of this Lease. If subsequent thereto the Company determines that Lessors'title to the Property and Materials are not good and marketable, the Company shall so notify Lessor in writing, in which case Lessor may, in Lessors' sole discretion and at their cost, correct the specified title defects. If any title defects which render the title unmarketable or adversely affect the Company's right to mine arc not cured within sixty (60)days after receipt of such notice, the Company, at its option, may terminate this Lease without any further obligation to Lessors. The Company shall, as part of such termination, have the right at its option to have any and all prepaid royalties not offset by production royalties refunded to the Company. Lessors' liability and/or Lessors' costs together shall not exceed and shall be limited to the amount of prepaid royalties not offset by production. C. Without regard to any warranties of title given to the Company by Lessor, if Lessor owns less than one hundred percent (100%) of the Materials under all or any portion of the Property, then the amounts payable to Lessor hereunder as advance minimum royalty payments and production royalties shall be reduced in the proportion that the interest of the Lessor in the Materials bears to one hundred percent (100%) of the Materials Under the Property. 12. Taxes. During the term of this Lease, the Company shall pay when due all general, ad valorem and property taxes assessed against the Property and on production, severance or extraction of Materials therefrom in excess of$1,000 per year. Lessor shall pay up to a total of$1,000 of the annual ad valorem tax and/or property tax assessment, and the Company shall pay all taxes in excess of$1,000. In addition, the Company shall pay all personal and real property taxes against machinery, tools, equipment, supplies, buildings, improvements, pipelines, stockpiles of Materials, and other property and/or fixtures placed by the Company on the Property. Lessor shall pay all taxes on improvements that Lessor installs on the Property for Lessors' own purposes. 13. Labor and Materials. The Company shall defend, indejnnify and hold harmless Lessor from and against any and all claims, charges, demands, causes-of action, damages and liability, including reasonable attorneys fees and expert fees, that arise from or are connected to the acts or omissions of the Company hereunder or to those of its contractors, subcontractors, employees, officers, agents or lessees in regard to providing labor and acquiring or installing materials, equipment and supplies for operations under this Lease. The Company further agrees to keep the Property free and clear of liens, charges, claims or demands arising from the Company's operations hereunder and to promptly pay for all labor performed on the Property and for all supplies, materials, and equipment used or placed on the Property. The Company may contest in good faith any lien; provided that, the Company shall not allow title to the Property or any portion of it to be lost. The Company shall promptly Orr-gravel.98 9 JUN. 21 LAFARGE NO. 7439 P. 14 notify Lessor in writing in regard to any lien, affidavit or other claim which may be made or attached against the Property as the result of the Company's operations hereunder. 14. Termination. A. Lessor shall have the right at Lessors' option to terminate this Lease if the Company fails to perform any of its obligations hereunder as follows: 1. If the Company fails to pay when due any amounts to be paid hereunder, Lessor may at its option give the Company written notice of such failure and the Company shall have ten(10) days from the date it receives notice to pay the amounts owed to Lessor. All past due payments shall bear interest at the rate of one and one-half percent(1.5%)per month. If the Company fails to pay the past due amounts to Lessor within the ten(10) day period, Lessor may at its option declare the Company in default and terminate this Lease. 2. If the Company defaults in performance of any obligation hereunder other than the obligation to pay money when due, Lessor may at its option give written notice of such default to the Company, and the Company shall have thirty (30) days from the date it receives such notice to cure the default. If the Company fails to cure the default within the thirty (30) day period, Lessor may at its option terminate this Lease; provided, however, that if the default is minor and the default can be fully compensated for in damages, then such default shall not be a basis fort cancellation or forefciture of this Lease or any of Company's rights hereunder if the Company pays the full amount of damages within thirty (30)days after d mand by Lessor. If, through no fault of the Company, such failure is impracticable to correct within the 30-day period, Lessor shall have no right to terminate this Lease if the Company commences in good faith to correct the failure and provided that the Company diligently pursues and completes the correction within a reasonable time. A default shall occur in the event and at any time that the Company becomes insolvent or the subject of bankruptcy proceedings or assigns any of its assets for the benefit of creditors. B. The Company shall have the right, at its option, to terminate this Lease at the end of any Lease Year during the Initial Term or any Successive Term by giving at least.sixty.(60)days prior written notice to Lessor. Lessor shall not be entitled to receive additional compensation after the date of termination, other than any and all royalties due; provided that, if the Company terminates this Lease prior to the end of the Initial Term, the Company shall pay Lessor the difference remaining, if any, between$150,000, and the total amount of all option, advance minimum royalty and Orr-grave1.98 10 JUN. 23. 2005 11 :38AM LAFARGE Na 7439 P. 15 production royalty payments paid to Lessor such that the minimum payment to I egsor under this Lease shall total $150,000. C. Except as provided in Paragraphs 8, 9, 13, 16 and 17, and in permits or approvals issued by governmental entities, and pursuant to all federal, state and local laws, rules and regulations, and except any right or obligation which accrued prior to the effective date of termination, the rights and obligations of the parties shall cease upon,termination of this Lease by either party. I). Upon termination of this Lease for any reason, the Company shall continue to be liable for the performance of all obligations and the satisfaction of all liabilities to Lessor including, but not limited to, the payment of royalties which have accrued prior to the date of termination and the compliance with all laws, regulations, and permit conditions that apply to the Property and the operations on the Property, including, but not limited to all reclamation, environmental and land use laws, regulations and permit conditions. E. Upon termination of this Lease with respect to all or any part of the Property, the Company agrees to furnish Lessor with a document satisfactory to Lessor verifying such termination and release of Lease. F. Upon termination of this Lease for any reason, the Company shall furnish Lessor with maps showing the location of all test holes on the Property and provide Lessor with copies of all test results, studies, data and analyses in its possession with respect to or in connection with the Materials or the mining of the Materials on the Property. G. Upon termination of this I ease by the Company for any reason, all sums paid hereunder to Lessor shall remain the property of Lessor and shall not be recoupable or refundable except to the extent that they have already been recouped or refunded as of the effective date of termination, or except as expressly provided in Paragraphs 7. F and.11.B and C above_ 15. End of Term. The Company shall have the right for six months from the date of the expiration or termination of this Lease to dismantle and remove plants, machinery, equipment, improvements, and rother facilities installed or constructed on the Property by the Company and also to sell and remove Materials then stockpiled_on the yroperty, subject to its obligation to pay production royalties pursuant to Paragraph 3. • 16. Restorationof Property. Within two (2) years after the expiration or earlier termination of this Lease, the Company will seed and grade overburden piles and lake banks Orr-gravel.98 I 1 JUN. 23. 2005 11 :39AM LAFARGE NO. 7439 P. 16 on the Property to a grade that will accommodate ultimate reseeding and mowing. Following the expiration or termination of this Lease for any reason, Lessor covenants that Lessor will not extract or allow others to extract Materials until Lessor or others effect the transfer of the Stare Division of Minerals and Geology permit to their names for reclamation or rehabilitation of the Property and the release of any security or bond provided by the Company to secure its performance or discharge its re ponsibilities. Unless Lessor desires to continue operations to extract Materials (either by Les or or through an operator, representative, or other lessee), the Company shall have the right��d access and enter the Property and effect on the Property such restoration, rehabilitation and reclamation as may be required to discharge the responsibilities which the Company has assumed pursuant to its permits and under Paragraphs 7.E and 8 and to procure release of any bond or other financial assurance provided by the Company. 17. Option to Purchase Surface Estate. A. At any time during the term of this Lease after the Company has mined and removed or sold five Million(5,000,000)tons of Materials on which production royalty has been paid(or which is subject to offset by advance minimum royalty payments that have been paid),the Company shall have the right and option to purchase the surface estate for that portion of the Property for which the Materials have been removed as well as for the setbacks and public rights-of-way easements that are immediately adjacent and contiguous to the portion of the Property to which this option applies("Initial Surface Estate Option"). B. Provided that the Company exercises the Initial Surface Estate Option described in paragraph I A.,the Company shall also have the option to purchase additional parcels of the perty in increments of at least 35 acres,or, in the case of the last remaining parcel,in a amount of such acreage that remains,as and after the Company fully mines the parcel for all Commercially Economic Materials and after all royalties have been paid for such parcel.Each parcel subject to this option may include the setbacks and public rights-of-way easements that are immediately adjacent and contiguous to the parcel for which the option is exercised. C. The purchase price for each option shall be the sum of$500.00 an acre, prorated as to fractional acreage. The Company shall exercise each option to purchase by giving written notice to Lessor specifying a closing date that is not less than ten nor more than thirty days after the date that the notice is delivered to Lessor and including a copy of a survey of the parcel that is the subject of the particular option. The Company shall pay all costs and expenses to purchase the parcels hereinider, including the costs of all surveys. D. Lessor shall convey the portions of the surface estate for the Property for which an option is exercised by special warranty deed. Conveyance of portions of the Orr-gravel.98 12 JUN. 23. 2005 11 :39AM LAFARGE NO. 7439 . P. 17 surface estate shall not affect the Lease in any respect,including regarding mining operations,the duty to-remove all Commercially Economic Materials pursuant to �" paragraph 7 within the tem of the Lease or the payment of production royalties, minimum royalties or other royalties hereunder. I E. The Company agrees that in the event that it exercises one or more of the options described in paragraphs 17A. and 17B.,the Company shall conduct its ongoing mining operations adjacent to lands that it has previously mined and that,in the exercise of any option or options Under paragraph 17.B.,the parcels so purchased shall be contiguous to one anoth with the intent of the parties that no land continues to be owned by Lessor which i isolated or surrounded by parcels that have been purchased by the Company. The Com y shall grant access to Lessor at all times to all or any portions of the Property that at any time continues to be owned by Lessor. F. In the mining of the Property and in the exercise of the options in this paragraph 17,the parties understand and contemplate that the last portion of the Property to be mined would be in the south along Weld County Road 6. 18. Residential Area. The parties have excluded the Residential Area from the Lease. Lessor may lease the Residential Area at any time to any party; provided however, at the time that any existing or future lease for the Residential Area terminates or expires, Lessor shall give the Company the preemptive right to lease the Residential Area upon the same terms and conditions as the terminated or expired lease, but at market rental rates, and the Company shall have the right to sublease the Residential Area if it exercises its preemptive right. I 19. Successors and mo!≥». The provisions of this Lease shall extend to and be binding upon the heirs, person representatives, successors, assigns and sublessees of Lessor and the Company. The rights obligations of the Company hereunder may not be assigned to any party other than an affiliate of the Company without prior written consent of Lessor, which consent shall not be unreasonably withheld. Lessors' consent to a proposed assignment shall not operate to waive Lessors' right to disapprove any future assignments. The Company shall have the right to subcontract with others for the performance of exploration, development and mining work hereunder, subject to all terms of this Lease, but no such subcontract shall relieve the Company of its obligations to Lessor hereunder. 20. Notice. Notice of default or of cancellation or termination of this Lease and all other notices required or permitted hereunder shall be given by registered or certified mail, postage prepaid, addressed to the parties as follows: Orr-grave1.98 13 JUN. 23. 2005 11 :39AM LAFARGE. NO. 7439 P. 18 III Mobile Premix Concrete, Inc. Attn: Land 1400 West Avenue P.O. Box 21588 Denver, Colorado 80221 phone: (303) 657-4425 Donald L. and Suzanne Rittenhouse 2607 Hells AvLnne Zos N. Pat'.t 'Ra- tes Richland, Washington 99352 Oayi-on) W R �1431� � 21. Entire Aereement. This Lease contains the entire agreement between the parties hereto, and neither it nor any part of it may be changed, altered, modified, or limited orally or by any agreement between the parties unless such agreement be expressed in writing, signed, and acknowledged by the Lessor and the Company, or their respective heirs, personal representatives, successors and assigns. • IN WITNESS WHEREOF, this Gravel Property I rage with option to Purchase Surface Estate has been duly executed as of the date first above written. MOBILE PREMIX CONCRFI PE, INC. DONALD L. RITTENHOUSE and SUZANNE RITTENHOUSE By: 40:71i Title: p r,tiyt aQ �Gfy,,R'a¢�_ Lessor: Donald L. 'ttenhouse jaw le sso� . Suzanne Rittenhouse ouse • Phone: Home (509) 375a8 382- 100( lZrctV on-gza've1.98 14 JUN. 23. 2005 11 :40AM LAFARGE EMBITAto NO. 7439 . P. 19 Gravel Property Lease with Option to Purchase Surface • • • • �D(007oAn undivided An and 1' -5W interest in the following described property: That part of the NW ;1/4 of the SE 1/4 1 North, Range 66 West .�f / of Section 19, Township COMMENCING at the Nor:.hwesttcornero P.M. , eeSEr1/4d as aid? Section 19; the SE 1/4 of said follows: thence South along the West lire of said guarter section a distance of 853 feet, to the North line of the Damiana property described, in Deed recorded in Book 529, Page 433; thence East along the North line of said Damiana property 264 feet; . thence North and parellel to the West line of said quarter section a distance of 853 feet, more or less, to the North line of the•SE 1/._4. of said Section-t9; , thence West a distance of 264 feet along the North line of said quarter section to the POINT OF BEGINNING; EXCEPT that portion thereof conveyed-to The State Highway Commis- sion of Colorado for highway purposes in Special Warranty Deed recorded in Book 1401, Page 313, described as follows: BEGINNING corner point on the South property line from which the distance of or said Section 19 bears South S4'04' East a 3011.2 feet; thence along the South property line South 88'39' East a distance of 68.9 feet to the Soutieast corer of the property; thence along the East property line North 0'25'30" West a distance ' of 856.8 feet to the fast-West quarter line of Section 19; thence along the East-West quarter line of Section 19 South 89'39' West a distance of 159.3 feet; • thence South 4'48' East a distance of 535.9 feet; thence South 18'50' East a distance of 103.1 feet; thence South 4.48 ' East a distance of 223.4 feet, more or less to the POINT OF BEGINNING. PARCEL 2: I That part of the W 1/2 of the SE 1/4 of Section 19, Township 1 North, Range 66 West of tie 6th P.M. , described as follows- -.... EEGINNING at a i9auhich !point P.m. ,t1e west line of the S.E t/4 of said Sac s 1310 ieet' North of the Southwest corner of said SE 1/4 of said Section 19; thence North 504 feet; thence East 272 feet; thence South 304 feet; thence West 272 feet to the PLACE OF BEGINNING; EXCEPT that portion thereof. included within a parcel o: land con- veyed to John Scholl and Constantine Shell in Quit Claim Deed recorded in Book 1007, •Page 39, described as follows- JUN. 23. 2005 11 :40AM , LAFARG( N0. 7439 P. 20 • 'A' carmum • BEGINNING at a pout 247 feet East of the Southwest corner of the SW 1/4 of the SE 1/4 of said Section 19; thence North to alpoint on the North line of said SW 1/4 SE 1/4; thence East 25 feet to a point; thence South to a 'point on the South line of said SW- 1/4 SE 1/4; thence West 25 feet to the PLACE.OP BEGINNING; and EXCEPT that portion thereof lying•within the North 10 feet of the S 1/2 of the SE 1/4 and the South 20 feet of the N 1/2 of SE 1/4 of said Section 19 as conveyed to The Board of County Commissioners of Weld :ounty and to Weld -County to be used and maintained as a public road in Warranty Deed recorded in Book 1229, Page 556; and EXCEPT that portion tbsreof conveyed to The State Highway Commis- sion of Colorado for highway purposes in Special Warranty Deed recorded in Hook ;401, Page 313, described as follows: BEGINNING at a point on the North property line from which the Southeast corner of said Section 19 bears South 34'04' East a distance of 3011.2 feet:; thence South 4'48' East .-a distance of- 247. 6 feet; thence along the arc of a curve to the left a distance of 186.3 feet, the radius of which arc has a length of 5805 feet, and the chord of which arc bears South 5'43' East of distance of 186.2 feet, to the South property line; thence along the South property line North 89'50' East a distance of 32.8 feet to the East-property line; thence along the East property line North 0'25'30' West, a dis- tance of 430.3 feet to the North property line; thence along the North property line North -88'39' West a distance of 68. 9 feet, more or less, to the POINT OP BEGINNING. ALSO, Lots 1 and 2 of the SW 1/4 of Section 19, Townshit 1 -North, Range 66 West of the 6th P:M. • ExcuTh NG 'hydrocarbon mineral rights. • • • • • • r APPLICANT'S INTEREST IN THE PROPERTY See attached. Lafarge West,Inc..-Riverbend Weld County USR Permit Page 28 of 42 06/09/2008 THU 08:39 PAX 1001/oo9 Fax Transmission City Of Thornton Infrastructure Department 12450 Washington Street Thornton, Colorado 80241-2405 720-9774500 Fax Number. 720-977-6202 Date; June 9, 2005 To: Jennifer Vecchi Fax f: (303)665-8959 From: Emily Hunt, Water Resources Administrator Subject: Lafarge Riverbend Use by Special Review Permit Application Number of pages (including this cover page): 9 Comments: Attached please find a letter from Thornton consenting to Lafarge's USR permit application for its Riverbend project. Also attached is Thomton's Administrative Directive that authorizes Bud Elliot, Deputy City Manager for Infrastructure to grant this consent. Both documents have also been faxed to Jacqueline Hatch, and the originals will be sent to her via regular mail. Please contact me at 720-977-6504 with any questions. A hard copy of this facsimile message was also mailed to the addressee. ❑ 08/09/2005 THU 08:39 FAX 1002/009 City of Thornton udrostrucUra 66iimcraice Celle. 72C4)77-6500 - 12450 WN thhgten}erne{ Fax 720-077-6202 Tlictrulon.('.Dorado E024 1-24 0 5 lnntcdyatlwmtei net - June 8, 2005 . Ms. Jaqueline Hatch, Planner II Weld County Planning and Zoning Department 918 Tenth Street Greeley, CO 80631 RE: Lafarge Riverbend Weld County USR Permit Dear Ms. Hatch: The City of Thornton, as one of the surface owners of land subject to the above referenced application to Weld County, but with no ownership Interest in the mineral rights, does hereby consent to the June 8, 2005 filing of the application for a Use by Special Review Permit for the Riverbend site by Lafarge North America, Inc. Sincerely, i-ri.Kiltioetidili-14 Deputy City Manager-Infrastructure EPH/hjw cc: Dennis Hanson,Assistant City Attorney Emily Hunt,Water Resources Analyst GPAQ-Fort Lupton MLCR atoM,orara nn amp ua Past war i 1)5/09/2005 THO 08:39 FAT IM003/009 06/05/2005 WED 12:14 PAX 3028387427 THORNTON LEGAL +.4 INC SECOND FL la 002/008 CRY OF THORNTON ADMINISTRATIVE DIRECTIVE 1-4 Office of the City Manager Felhnrary 7.2003 gaSkitcriiQp__A_WinNix 1.0 ElleSeKc 1.1 To delegate the administrative authority of the arty Managernl 1es Director to the Depar67wnt Heads in certain matters.to ensure the smooth and timely low of information and documentation within and between the CIO, as employees,applicants for employment, contactors, suppliers, and outside service prodders..The term Department Heads means Assistant City Manager, Communications aid Pubic Affairs Director, Deputy City Managers,Executive Directors and Poke and Fire Griefs, 20 taw 2.1 This policy apples to al contracts, agreements,permits, easements,lights. of-way rsogtrisitlons, changeciders, interim and final payment releases perfetrtn9 thereto; procurement Pn rnert of materials, suuppliees, equipment, • construction, and services for di purchases made in accordance with the budget as authorized by Cly Count melons on ditch company boards, water bawds employee tithe City of Thornton is poi boards or ether entitles al voting an shares and authorization of City gybed tor stook,or elected,and to ition of on hno wateof r teas or Feet$, participation in the Colorado Water for certain - • water rights protection and transfer actions and certain administrative functions of the and City ManagedUtilities Director/Appointing Authority related to terms employment for City personnel. SA alMni 3.1 The adroitly of the City Manager to approve purdmee orders, check requests, agreements, contracts an projects spectrally approved in the budget and other related matters to ensure the smooth and timely flow of •documents and inforrratiorr within' the City is hereby delegated to the Deputy City Manager for Management Services. The Deputy City Manager for Management Services shad exercise this administrative authority in • conformance with the City Charter, the ordi nate:es of the City of Thornton, .• policDirective. and other .. 'City. pc es, procedures, and this • Administrative • 32 The authority of the City Manager to make budget adjustments between • objects of expendlkwe of an aocourt and betwixt)accounts of en individual department is hereby delegated to the Deputy City Manager for • Management Services provided that such adjustments do not cause a senAce delivery reduction and do not exceed the total amount of the original budget voivuizvu5 '1LU 08:40 FAX 1004/009 06/06/2008 WED 12:14 FAX 3058357427 THORNTON LEGAL +++ INC SECOND FL X003/008 A&*istradve Directive 1-4 Page 2 32 The authority to make budget adjustments between capital improvement projects. provided the adjustment is not in excess of $100.000 and there are evadable funds to transfer such that the agent does not result in a r ducbon in the overall Capital Improvement Plan, is hereby delegated to the Deputy City Manager for Management Services. Any adjustment to a - capital improvement pmt in mess of$100,000 must be approved by the • City Manager. 3.4 The authority of the City Manager to approve or deny change orders and cow amendments Is delegated to the Deputy City Manager for Management Senesces provided that such change orders amendments and co pertain to specifically approved projects In the and win budget otand that exceed the Improvement Plan budget departmental not emceed$100.000 without the written approorders val contract amendments do ab At the end of each quarter. the Deputy City Manager for Management Saltless shall e nema, changee«ders and the City Manager with areport � budget exceeded$50.000. amendments for that quarter that 3.6 The authodly of the City Manager to amevute ponds,agreements,eighb of • _entry. easethenbl y rights-of-way acquisitions required for the . arnpiememadon of the ovement Plan is hereby dell:9ted to the DePulY CllY Manager 'and the Assists,* City Manager provided that a1 Pont, agreements, *us of entry and purchases for easements and ,ay are made in acoondahos within the budget as approved by City Council The City Manager shad be notified of any such execution/approval in this subsection which would change an existing practice or policy prior to such execuuonfapprpyn_ 3.7 The authority of the City Manager to approve applications for permits to sene and consume alcohol on City property is hereby delegated to the Executive Director for the Deputy '.Manager �Mhasttrottr Services e f�stteet closures.facEties (andSee Administrative Directive 1-11 Alcohol Permits for City Property), 3.8 me authority Hof City Manager to approve Agreements related to the of Deve of legdieg Permits is opment. Deputy City the Deputy Manager for City 08/09/2005 TIM08:40 FAX X005/009 08/08/2005 RED 12:18 PAZ 3035387427 THORNTON LEGAL +,-. INC SECOND FL 1004/008 Administrative DIreatve 1-4 page 3 • 3.9 The authority of the City Manager to execute. imps. and administer the o«ongoing vad luable regular cani operations of of the municipal Wig, inciters the twquisfion, transfer and of water net real or personal making y; protection water fights and MtetaSs a appointments to ditch company boards, water boards.corporate boards,or other entitles. and authority to vote shares,including authorizing proxies, of City linter stock. as provided for In Section 2-121 of the City Code and pursuant to C.D. No. 94-238, is hereby t delegated to the Deputy City Manager for Infrastructure or designee in accordance with the following policies: a) Lease of property: The Deputy City Manager for infrastructure is aut horfined to eowarte leases for Qty owned real and personal property only after each lease has been reviewed by the Deputy City Manager for infrastructure to detarmne it follows City ordinances• and paw. Any leases that are not addressed by existing ordinances or policies wi first be discussed wlh the City Manager _pier to execution. b) Accaui;iffon of water rights or Irk:The Deputy City Manager for Infrastructure is authorized to acquire water rgtds and interests subject to the approved budget resolution and appropriations ordinance only after reviewby approval the City Manager. . o) Water Court The Deputy city Manager�for infrastructure is authorized to negotiate and appreve agreements of opposition cases which Deputy qty Manager for hue has determined are in the City's best interest to eetle based upon. but not kited to, such considemtbm as protection of the cuts ' " -water rghts. the cost to settle versus further litigation, and establishment of precedents as long as: 1) less than 150000 has • been spent in opposition: and 2) such delegation does not include cases where the icant is -another munidpaRy without fiat receiving approval from the City Manager. The Deputy will fie a monthly report to the City Manager that will contain a brief desalption of all water court eetlemerds approved by the Deputy d) Water Court striements of oopcilon:The Deputy City Manager for infrashucture Is -authorized to 1k statements of opposition and _ Inteivene in the• potential� of others n water court cases which • have the City of Thornton subject to the following condlnn to detrimentrily affect the water mono= of the 1) The oasts necessary to Se statements of opposition and incur legal. engineering and other associated costs are less than $50,000 and included in a budget adopted by City Councl; and 05/09/2005 THU 08:40 FAX X008/008 08/08/2005 !ED 12;18 FAX 3035387427 THORNTON LEGAL ++-. [MC SECOND PL X0os/sort Administrative Directve 1-4 Page 4 2) No statements of opposition wit belied where the applicant is another municipality without first receiving approval from the City Manager;and 3) The Deputy City Manager for infrasbucture will provide the City Manager swift a monthly report that °ordains a b►fef description of all statements of opposition. • a)'• Water Court transfer and/or urge of use abdications:Jlons:The Deputy • City Manager for ice, only after stsa salon with and appal by the city Manage. Is authorized to tie Water Court applications by the City of Thornton to bunt and/or change the use of water rights theof Thornton owns and applications for findings of reasonable di n and/or to make conditional water right with the consent of city Count. f) The City Manager reserves the authority to select or appoint City rePresetgebves who will stand for eledlon,and serve on the Board of Directorrarustees concpanies or other entries identified in Ca Board)as required if tegory. for thoseditch Exhibit 1 and any other entitles not Category A of b his s Administrative Directive. The alsoedicaly named b the City Manager reserves the authority to remove any such representatives,with or wihout Dense, • serving on a Board of an entrla, idengied in laegory A or B of attached Exhibit 1_ 1) The Deputy City Manager for Infrastructure is authorized to select City employees who will stand for elections and serve on the�� required if elected,for those ditch oompases - or other erdilleit identified ku Category B of attached Exidbit 1. The Deputy City Manager for kerastructure is also authorized to remove any such City employee, with or Without cause, serving on a Board of en entity Identfied In Category B of attached Exhibit 1. 2) The Deputy Cry Manager for Udrastnrdure is asthotlmed to • vote shares, including authorizing praodes,of City Water Mock - for al ditch companies listed in attached Extra* 1. Any City employee is authorized to vole shares of water stook if a prow has been I propedyauthorized their creme by the City o Deputy City Manager for 06/09/2005 Tao 08:41 PAZ QD007/009 06/08/2005 TED 12:18 PAL 3035387427 TEORN(•0M LEGAL ,.,, INC SECOND FL W008/cos Administrative Directive.14 Page 5 3) Each year, by December 31, the Deputy City Manager for Inf as bucuae wA oxalis and provide to the City Manager a listing of all City employees who will serve on any ditch company board, water board, corporate board or other entity pertakskrg to Sedan 2-121(5X4)of the City Code or listed on Exhibit 1 for the upcoming year. This Ong wit also be • provided to the City Clerk for reference. 3.10 The authority of the City Manager related to the employment of City enpeloyees stall be delegated as follows, a) In instances whereby drily procedures have been or WE be instituted, Department Heeds may suspend an employee with pay, pursuant to Sectors 54-186 or 54-160 of the Personnel Code. The City Manager, (Deputy City Manager for Management services, and Human Resources Di ector shat be notified, in writing, of the basis for such suspension ts&h r one business day of the tam b) Department Heads may approve the following Items or delegate their authority to Sector and Divisbn Heads only pursuant to a written • departmental poky or procedure. 1)- Recommendations to hire temporary (with or wihout a contact)empbyecas 2) Legal Request Forms 3) Oral Boatel Fonts 4) Shdus Fame atsif onsns involving demotion or pay changes) 5) Position eg 6) Outside Employment Request Forms 7) ITTuition�tneo s(ire eme(access,,software.t) 8) omo 9) Bereavement Leave Request Fame • c) The delegation of adn*Isaathre authority to the Deputy Cily Manager for Management Services includes, by way of example: Petaonneleayrol Action Request forms, position S • recommendations to Its, promote and reclassify employees up to but not Including the Sector Director or DMsbn Manager level, employment contracts, mdassocations.and discharge of temporary •orld oyees: but does terminations ryk vol transfer% and involuntary Lary demoti include ons - ReWar non-p >ary empbYees, and leave of absence 06/09/2005 THU 08:41 FAX IM008/009 . 06/08/2006 RED 12:16 PAZ 3035387427 THORNTON LEGAL a++ INC SECOND PL ®007/008 Administrative Directive 1.4 Page 6 The Deputy City Manager for Management Services shall have the authority to approve requests torn Department Heads for changes to work schedules and forward his/her determination to the City Manager provided that any unusual change to a work schedule that would set a substantive precedent orwordd have adverse budgetary impact must be approved by the City Mane 3.11 The aut horny lo approve and/or settle al work-related injury/loess claims and properlykasualtyslabillty claims shall be delegated as follows: a) The Deputy City Manager for Management Services shall approve work-related. Injury/Illness darts and properlykasuatytliablity dams or any related settlement up to$100.000. They Manager veil approve all claims over$100,000. . b) The Deputy City Manager for Management Benda* that no the City Manager of any work-related tyuryliknesa . claim and PmPackficalasaliVilability claim, the settlement ancVor approval of which would change an existing practice or ply prior to such • settlement and/or approval rye of the clakn amount 41t• : 4.1 Division Heads. .lack City Manager Date 1' Y • Attachments:6dhbk 1 06/09/2006 THU 06:41 FAX @009/00t 06/06/2005 WED 12:16 PAY 7036367427 THORNTON LEGAL 44. INC SECOND FL q0008/008 Adtrinistative Directive 1- Page 7 EXHIBIT 1 £ G9 Colorado Wastewater My Council Colorado Water Congress—State Maim Committee Cblorrdo Water UMW Candi Farmers Resen*and irrigation Gbmpany Noel Pan Range-Water Qualify Association SAY Operating Nanning • Stanley Lake Pipeline Committee Woman Meek ReservdrAulhodpr Water Supply and storage Compton cateoon B Mead Lateral Company • Bass tateni and krigarion Carwany New tiSon CommlNmlgr Mt Company North Padre lifigallon Company BurNtglon Ditch,Rent wid Land Oliver Ditch company • • Conway Fierce Lateral Company Burlington Extension Ditch Company Ranldn Reservoir Conway Castle Mountain Recreation ComPatlY Rocky Mountain DIM Company Church Did'Cotnpany Seven Wes coffins rand Agnomen' Baca of Goreperar Ditchcomparw • ny Class Cut Company unnel Water Company i Daniel Lateral Ditch v y • Dry Ci lie k Ditch Canpany WeRggbn Reservoir Omar/ >s Fanners Ligh Lhe Cartel and Reeerwir Compatw Fanners High Line Latent Fteher Ditch Company � • German Ditch Company . Good lateral Ditch C omparw - • Greeley and Loyelwad krigation CompanyomCompany Hayden Ditch Company Jackson Ditch Company Kershaw Dad'Company Lakeside Lateral Dish Company Laurier end Wald irrigation Oomparmy Lone Tree Lateral Cary Loveland and Greeley Reservoir Company Lamer Clew Creek Ma Company Mandalay Inigallon Company • Donald L. Rittenhouse & Suzanne Rittenhouse Quit Claim Deed and Gravel Property Lease Phase I mignon 2887239 M/15/118/ It:S00 Weld Camay CO I eq 1 R 0.00 0 0,80 JO Sulu Tadta.at. QUITCLAIM DEED 31 THIS DEED, made this ,j day of ,4',,<- , 1999, between Frank Damian, through his conservator, Randal G. Damiana, whose address is Route I, Box 113-A, Moore, ID 83225,grantor,and Donald L.Rittenhouse and Suzanne Rittenhouse,whose address is 205 W Patit Road,Dayton,WA 99328,grantees, WITNESS, that the grantor,for and in consideration of the aim of SP land other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,has remised,released, sold and QUITCLAIMED, and by these presents does remise, release sell and QUITCLAIM unto the grantees, their heirs, successors and assigns forever,all the right,tide, interest, claim and demand which the grantor has in and to the real property, together with improvements,if any,situate, lying and being in the County of Weld and State of Colorado,described as follows: Section 19,Township I North,Range 66 West,of the 6*PM. TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging,or in anywise thereunto appertaining, and all the estate,right,title,interest and claim whatsoever of the grantor,either in law or equity,to the only proper use,benefit and behoof of the grantees,their heirs and assigns forever. IN WITNESS WHEREOF, the grantor has executed this deed on the date set forth above. /J Ste,/ALEGOaLL Frank Damiana by his Conservator,Randal G.Damiana STATE OF IDAHO ) )8s. l r The foregoing instrument was acknowledged before me this 573 day of 1999,by Randal G.Damiana as conservator for Frank Damiana. Witness my hand and official seal_ My Commission Expires: /1- I I -JA .t_ � Lied.d.i .k a.(-ILt y Notary Public MIEN)tr ORb® KETU/g '[O: DONALD L. i SUZANNE RITTENHOUSE 0, - - 205 W PATIT ROAD - ' DAYTON WA 99328 ({20,( -2!0 DONALD L. RITTENHOUSE AND SUZANNE RITTENHOUSE FILE COPY GRAVEL PROPERTY LEASE WITH OPTION TO PURCHASE SURFACE £ aecki 7:Ck. THIS INDENTURE, dated this 7 day of u5 ,j99I(hereinafter referred to as the "Lease"), by and between D nald L. Rittenhouse acid Suzanne Rittenhouse, with their Zos N Punt} . Op- •-• wft ` 9 -sZg address being -v , try r *mm (hereinafter referred to as rL.� "Lessor" inclusively) and Mobile Premix Concrete, Inc_, a Colorado corporation (hereinafter 5" UV" referred to as the "Company"), with its address at 1400 West 64th Avenue, Denver, Colorado 80221_ WITNESSETH In consideration of the sum of paid by the Company to Lessor (which includes paid for the Option to Lease Gravel Property ("Option") under which this Lease is taken), the receipt of which is hereby acknowledged by Lessor, which sum shall satisfy the advance minimum royalty requirement identified in Paragraph 4 with respect to the period from the commencement date hereof to the end of the first year of the term of this Lease, 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, ract, process, sell, use and remove them during the Term of this Lease, along with the right to locate and operate with associated uses an "Operational Plant Site," as defined herein. TOGETHER WITH the right to use and exercise the water and water rights appurtenant to the Property that belong to Lessor ("Water Rights") to the extent appropriate for the operation of the Operational Plant Site and for the extraction, removal and processing of the Materials, as well as for revegetation and reclamation, including exposure of alluvial waters to evaporation_ LESSOR RESERVES the right to use and lease the surface of the Property for agricultural, hunting and fishing and horseback riding purposes and as provided in Paragraph 18 and for other existing residences and accessory structures only, provided that such uses shall cease during the times and for the portions of the Property where the Company is conducting active mining or reclamation activities and where the Operational Plant Site is located, and provided that Lessor as part of such use shall pay for, install and maintain at its sole cost any and all fencing the parties mutually agree is necessary to protect the Company's operations from interference from such uses of Lessor. Lessor shall not interfere with the Company's operations under this Lease in connection with such uses, and Lessor releases "' &gravel.98 Mobile Premix Concrete, Inc. Attn: Land Department 1400 West 64th Avenue P.O. Box 21588 Denver, Colorado 80221 phone: (303) 657-4425 Donald L. and Suzanne Rittenhouse y/�1 ZpS N- Pat;t Rd - dL,� Richland, Washington 99352 pay j-nn) W R 94 3 2 21. Entire Agreement. This Lease contains the entire agreement between the parties hereto, and neither it nor any part of it may be changed, altered, modified, or limited orally or by any agreement between the parties unless such agreement be expressed in writing, signed, and acknowledged by the Lessor and the Company, or their respective heirs, personal representatives, successors and assigns. - - IN WITNESS WHEREOF, this Gravel Property Lease with Option to Purchase Surface Estate has been duly executed as of the date first above written. MOBILE PREMIX CONCRETE, INC- DONALD L. RITTENHOUSE and SUZANNE RITTENHOUSE areat" 4.0 Ar-617-r Title: G c s .i2 O�p aR q e� Lessor: Donald L. 'ttenhouse SSO : Suzanne Rittenhouse Phone: Home (509) 37513- g 3 2t 2- I OD6 P6onc w.,r4 cant Fz27 k`r "atr-gravel-98 14 Gravel Property Lease with Option - to Purchase Surface 000 An undivided sec interest in the following described property: PARCEL 1 : That part of the NW 1/4 of the SE wnship 1 North, Range 66 West of 1/4 of Section 19, 1C North, G at the 6th P.R. , described as o the Northwest corner of the SE follows:Section 19; 1/4 of said thence South along the hest line of said quarter section a _ distance of 853 feet to the North line of the Damiana p per described in Deed recorded in Book 529, Page 433; thence East along ro �, feet; the North line of said Damiana property thence North and 264 parallel to the West line of said quarter section a distance of 853 feet, more or less, to the North line of the_ 5E 1/._4- of said Section-19r thence West ghencer section of 264 feet along the North line of to the PINT Or BEGINNING; said EXCEPT that portion thereof conveyed-to The State Highway sion of Colorado nrd orhighway purposes in Special Warranty g Y Commis- sion 1401 , Page 313, described asDeed at a point on the South Property follows: Southeast corner of said Section 19 bears South 54'0 Which the distance of 3011 . 2 feet; 54 04 East a thence along the South property line South 88-3g • East a distance of 68. 9 feet to the Southeast corner of the property; thence along tilt East prcperty lice North 0'25 '30^ West a distance of 856 . 8 feet to the East-West quarter line of Section 19; thence along the East-West quarter line of Section 19 South 89-39 ' West a distance of 159. 3 feet; thence South 4 "48' East a distance of 535. 9 feet; thence South 18. 50' East 3 distance of 103 . 1 feet; thence South 4 " 48 ' East a distance of 223 . 4 feet, more or less to - the POINT OF BEGINNING_ PARCEL 2 : That part of the W 1/2 of the SE 1/4 of Section 19, Toun ship 1 North, Range 66 West of tl.e 6th P_14_ , described as follows; BEGINNING at a point on the West line of the SE 1/4 of said Section 19 which is 1310 feet North of the Southwest corner of said SE 1/4 of said Section 19; thence North 504 feet; thence East 272 feet; thence South 504 feet; thence West 272 feet to the PLACE OF 2EGINNING; EXCEPT that portion thereof included within a parcel of land con- veyed to Joke Schell and Constantine Shell in Quit Claim Deed recorded in Book 1001 , -Page 39, described as follows_ �i' `A' bTh t BEGINNING at a point 247 feet East of the Southwest corner of the SW 1/4 of the SE 1/4 . of said Section 19; thence North to a point on the North line of said SW 1/4 SE 1/4; thence East 25 feet to a point; thence South to a point on the South line of said SW 1/4 SE 1/4; thence West 25 feet to the PLACE.OF BEGINNING; and EXCEPT that portion thereof lying-within the North 10 feet-of the S 1/2 of the SE 1/4 and the South 20 feet of the N 1/2 of SE 1/4 of said Section 19 as conveyed to The Board of County Commissioners of Weld :ounty and to Weld -County to be used and maintained as a public road in Warranty Deed recorded in Book 1229, Page 556; and EXCEPT that portion thereof conveyed to The State Highway Commis- sion of Colorado for highway purposes in Special. Warranty Deed recorded in Book 1401, Page 313, described as follows: BEGINNING at a point on the North property line from which the Southeast corner of said Section 19 bears South 54.04 ' -East a distance of 3011.2 feet; thence South 4-48• East-a distance of- 247 . 6 feet; thence .along the arc o1` a curve to the left a distance of 186. 3 feet, the radius of which arc has a length of 5805 feet, and the chord of which arc bears South 5-43 • East of distance of 186. 2 feet, to the Soul:h property line; - thence along the South property line North 89- 50 • East a distance of 32. 8 feet to the Ealtt property line; thence along the East property line North 0-25 '30! West, a dis- tance of 430 . 3 feet to the North property line; tf hence along the North property line North 88"39• West a distance ofS08 9 feet, more or less, to the POINT OF BEGINNING. Lots 1 and 2 of the SW 1/4- of Section 19, Township 1 -North, Range 66 West of the 6th P.M. EXCLUDING hydrocarbon mineral rights_ Mineral Reserves, Inc. Warranty Deed Phase 2 IEI IIII III EE III III E 11111.."�:N11 I630Si 071061'200/ 11:ONI 3*Sand TsibROlo al 1 R 5.00 D 63.50 Weld Candy CO '.((.))- -ecord tad day of ,h.o_ , at o'clock M. RECORDER. tl di/ b. 111 DEPUTY. SPECIAL WARRANTY DEED Op` TH Made on21',IS DEED. dethis day of ).ne 1(qi between GEORGE R NORDEN LIVING TRUST whose legal address is. Grantor(s), and I MINERAL RESERVES.INC..A COLORADO CORPORATION Jose Ieget address is: 1400 W.ACTH AVENUE,DENVER,CO 10221 of the Grantetts): WITNESS, That the Grantor, for and in consideration of the sus of aims ) DOLLARS the receipt and suit iciency of which Is hereby acknowledged, has granted, bargained, sold aid conveyed, and by these presents does grant, bargain, sell, convey and cadira onto the Grantee(s), their heirs aid assigns forever, all the real property, together with improvements, if easy, situate, lying and being in the Carry of WELD and State of Colorado, described as follows: SEE EXHIBIT'A'ATTACHED HERETO AND MADE A PART HEREOF • SY Do . - Fca D,fs 19- $ 103, c' also knows as street number 11520 WELD COUNTY ROAD I.FT LUPTON. TOGETHER with all and singular and hereditaments and apprtenaices thereinto belonging, or in anywise appe ".. 4 and the reversion and reversions, remainder and reminders, rents, issues ad profits DT ; and all the estate, right title interest, claim end demand whatsoever of the franta(s), either in law or equity, of, in and to the above bargained premises, with the hereditments and appurtenances: ' SEE Emma C TOHAVEANDTONOLD the said premises above bargained and described with a)purtenaces. info the Grantee(s). their heirs, successors end assigns forever, the Grantor, for itself, its successors and assigns, does covenant, and agree that it shall and will MARMs1 IRO ANEW*DEFEND the above-bargained premises in the putt and peaceable possession of the Grantee(s), their heirs, successors ard assigns, against alt and every person or persons claiming the whole or any part thereof, by, through or Ceder the Gradorfs). EXCEPT GENERAL TAXES AND ASSESSMENTS FOR THE YEAR 2001 AND SUBSEQUENT YEARS;EXCEPTIONS AS LISTED ON EXHIBIT-e'ATTACHED AND MADE A PART HEREOF AS IF FULLY SET FORTH HEREIN IN WITNESS WHEREOF the Grantor(s) have esecuted this deed on the date set forth above. GEORGE/L RDEN LIVIN ST BY:KA MARTIN,T RU� G RIDS 1PIED BY:GEORGE M.NORDEN,TRUSTEE //I� DALE Or l.`-(L.t • q� 1 county of /-rT DS.the foregoing instrument was kne de'J9ed before roe qn this daY lune N.2001 by faro/ Ma rrir trustee. Or 1 forge of . Annie," (_r 0149 Innf' nr cemaission noires 12-12-4°Y nine's a sz .s bald and olffciai seal. Notary P tic TERESA RIOS ConsritiarnS 12B/D1 n Woking Pubic—Colard° „ I`$'_ los Angeles County E group ragas.'Doe 7S. _ Escrow/ AC21059 1Fenlecorded Return to: MINERAL RESERVES, INC., A COtoozo title/ Ic2oSIAI-a CORPORA!ION na.Nam Caw-its 1000 M. JAIN AVENUE, DENVER, CO 80221 I Ili MI pnln it t 11111 Ell 1111111 III - 2063092 071a2001 11ittA M Saes Ts..eRlob ��P - 1 4 R 20.00 0 0.00 0 Weld costae CO ier tor record IAedal•of AA. _, at o'clock M. MECOYER.,i 092 an go. SW DIMITY. SPECIAL WARRANTY DEED Documentary J '�� TNLS DEED.Mods en this dog of *le21.2001 , between Ctafe Fee GEORGE R.NORDEN LIVING TRUST Date �--3 -Uf $ iree.npf (pet 4 r.-1)i whose toga address to: to ntgrta). • gi and MINERAL RESERVES,INC..A COLORADO CORPORATION Mess taw see. le: Id00 W.EMI AVENUE.DRIVERS°10111 of the Onmesalt - ' L IYI'I ESS, That the Griner, for end /n considerate.of the an ollialrhg DOLLARS E the receipt and Nth felony of which Is hereby sNsDNt�granted, bargained, sold and song eyfe ver by these rat pr does Itoge hr osin,with toll, coney and confirm ., the 6rond being their holm end esalmtt fxteen of the Mt Protect,. together With laprwwnnto, If any. ,irate, tying end being in the Canty of Wh7D and Snit of Colenaeb, described as folk*: r SAS ExfBoft'A'A1TAMED HERETO AND MADE A PART HEMP • oleo know at street nutter 11520 WELD COUNTY ROADS,PT uncut i t TOGETHER oath sal end singlear end hereditament* end orpereenencee thereunto belonging, or in *the .. appertaining - anE!thaine.rersion and reversions, renlnder and hemOtndrs, rents, bows and profits thereof; end ell the *tete• right title Interest, clols end*mend a ntmoovor of the,remora/, either in low or equity, of, In end to the above bargained premien, with the herediteeenta end eppMtenweee: .] SEE EXHIBIT C qY TO RAVE ANDTO BOLA the said premises above bewailed end described with appurtenances, unto the Gronteo(a)• their hen, aucceaaon end *alone forever. the Granter, for Itself, Its successors and molars. does cowmen, end agree tint it shall end will MAIM! MO TOMEI DEFIED the above-beneined premiers to the quiet and peaceable enmeshes of the 6rerneo(s), their hetis, suceeccort and asstpa, molest ell and every pert*or persons d dolling the whole or env port thereof, by, through or under the Grrsertel. EXCEPT GENERAL TAXES AND ASSESSMDNTS POR THE YEAR 2001 AND SUBSEQUENT YEARS:EXCEPTIONS AS 17STED ON EXHORT'B'ATTACHED AND MADE A PART HEREOF AS IF FULLY SET FORTH HEREIN [F INWITNESSWh EREOF the Genera,) Awe e*oeuted thle deed en the dote set forth eteva. i '- -%.- - GEORGE R.NORDEN LIVING TRUST COUNTERSIGNED Is ' 1 ;! DT: MM71N,1R h i ////// Ei.TRUSTEE MME of -"C An-cc-At' ) )n. crony a k L'ickC ) ) the fersootng Irstren.nt wee wknoulodged pppFfere me*TEle dry of Jo,Le 11.;001 by rrrniet.ni M7rrien,Trvstel -far-Ott CTto.ge F-AJ(Ld P'L-(�IvtI IPIA- my ce*elaalal*Pares ((�W� hams m d y hi end official test. �Q 1 Notary Publ lc' Escrow/ *MOW than Recorded Return to:NIIHARL MESONS; INC., A MOO. ^^n" (1206111-A CWIPOBAtlgi IMO R. 66TR AFESG, OENWI, c0 sent Fees We. COIN SID vi IZ0/6l0'i 69991 SSNLSO13 IOE03 OM 11=80 iooz.6L"Nnr IN1�IItE'tltNTINIgMlll(u 1111ltl1111 2863092 0MZ/2DM 11:0H1 AA s ld TsulomBb 2 of 4 R MOO B 6.00 weld Conk Co EXHIBIT A THE N 1/2 OF THE NE 1/4 OF SECTION 24, TOWNSHIP 1 NORTH, RANGE 67 WEST OF THE 6TH P.N., COUNTY OF WELD. STATE OF COLORADO, DESCRIBED AS FOLLOWS: BEGINNING AT THE NE CORNER OF SAID SECTION 24, THENCE S 00 DEGREES 25. 10• W. ALONG THE EAST LINE OF THE N 1/2 OF THE NE 1/4 OF SAID SECTION 24. 1310.16 FEET TO THE SE CORNER OF THE N 1/2 OF THE NE 1/4 OF SAID SECTION 24; THENCE S 89 DEGREES 45. 34" N, ALONG THE SOUTH LINE OF THEN 1/2 OF THE NE 1/4 OP SAID SECTION 24, 2637.68 FEET TO THE SW CORNER OF THE N 1/2 OF THE NE 1/4 OF SAID SECTION 24; THENCE N 00 DEGREES 12. 27• E. ALONG THE NEST LINE OF THE N 1/2 OF THE NE 1/4 or SAID SECTION 24, 1309.10 FEET TO THE NN CORNER OF THE N 1/2 OP TEE NE 1/4 OF SAID SECTION 24, THENCE N 89 DEGREES 44. 15" E. ALONG THE NORTH LINE OF THE N 1/2 OF TEE NE 1/4 OP SAID SECTION 24, 2642.54 FEET TO THE POINT OP BEGINNING. FC106t83- .A+ - III1111N0111111111111111111111111111111. IIII 2 ! R75,200,.. . 2Y.SB D o.la wed coIMY CO ole EXHIBIT J Our Order No. FC206I83-5 RIGHT OF WAY FOR COUNTY ROADS 30 FEET ON EITHER SIDE OF SECTION AND TOWNSHIP LINES.AS ESTABLISHED BY THE BOARD OF COUNTY COMMISSIONERS FOR WELD COUNTY,RECORDED OCTOBER 14,1889 IN BOOK 86 AT PAGE 273. RIGHT OF WAY EASEMENT AS GRANTED TO FOR DITCH IN INSTRUMENT RECORDED May 14,1918, IN BOOK 513 AT PAGE 205. ALL OIL.GAS,MINERALS AND OTHER MINERAL RIGHTS AS RESERVED IN INSTRUMENT RECORDED Fcbrmary 02, 1949,IN BOOK 1241 AT PAGE 331. OIL AND GAS LEASE RECORDED March 31,1970 UNDER RECEPTION NO.1544589 IN BOOK 623 AND ANY AND ALL ASSIGNMENTS THEREOF,OR INTEREST THEREIN_ TERMS,CONDITIONS AND PROVISIONS OF DECLARATION RECORDED January 08. 1982 AT RECEPTION NO-1879465 IN BOOK 958. RIGHTOF WAY EASEMENT AS GRANTED TO AMOCO PRODUCTION CO IN INSTRUMENT RECORDED May 20. 1973, UNDER RECEPTION NO 1625129IN BOOK 703. RIGHT OF WAY EASEMENT AS GRANTED TO PANHANDLE EASTERN PIPE LINE COIN INSTRUMENT RECORDED November 04, 1983, UNDER RECEPTION NO.1946063 IN BOOK 1012. MATTERS AS SET FORTH ON SURVEY BY ROBERT M SAYERS DATED MAY 5, 2001,INCLUDINO BUT NOT LIMITED TO,FENCES NOT ON PROPERTY LINES, EASEMENT FOR TELEPHONE LINES.EASEMENT FOR IRRIGATION DITCHES ri I maul non nuMI MINI IN MuMOttt not III um Otot my 2863092 07/0512001 11:01A JA Si"Tsukamoto - 4 0l 4 R 20.00 0 0.00 Weld Con CO EXHIBIT C Water. At Closing, Seller will convey to Buyer all water rights appurtenant to or used in connection with the Property, together with all well permits for all wells on the Property, including without limitation Permit No_ 128682;and including but not limited to;all ditch rights, headgates, and measuring devices; well and well rights, including permits with pumps, pipelines and measuring devices; all tributary, non-tributary or not-nontributary(as defined in CRS 37-90- !03 (10.7))groundwater underlying the Property, whether adjudicated or not, whether-permitted or not; reservoirs, ponds and lakes, and reservoir, pond and lake rights, including any and all ditches or diversion structures diverting water therein; spring and spring rights, including structures, measuring devices and well permits; stockwater ponds and pen-nits therefor, shares of stock in any ditch or reservoir company and leases and any other rights of use of any ditch,well and/or reservoir water rights for water used upon or appurtenant to the Property; it being specifically intended that all water rights, structures, permits, shares of stock in ditch and reservoir companies and easements and structures appurtenant to the Property will be transferred with the Property without reservation by Seller. • Minerals and other Rights. The Property expressly includes all minerals and mineral rights, sand and gravel and sand and gravel rights, oil and gas and oil and gas rights owned by Seller, all rights-of-way, easements, improvements, structures, fixtures and all other property rights appurtenant thereto and/or owned or used by Seller in connection therewith,and any right, title and interest in and to any adjoining or adjacent streets, roads, or rights-of-way, all vacated alleys, streets and roads, strips and gores of land adjoining the Property described in the Contract; provided, however, that Seller shall be entitled to retain the right to all royalty payments paid after Closing under all oil and gas leases presently encumbering the Property for so long as such leases remain in effect. This right to payment shall be effected by Buyer assigning such rights to payment to Seller at Closing in exchange for Seller's conveyance of the minerals and assignment of the lease(s). Lafarge West, Inc. Warranty Deed Phase 3 I119 Hill 1111111111 111 N1 IUUiI 1 I1I11 uN nN 1 d t A 6.00 D 152-S Steve Moreno Left&Aecmder Ohl WARRANTY DEED TIIIS DEED_ Made this 12th day of July , 2004, between Robert David Anderson and Ronald Dean Anderson and Richard Dale Anderson e.f the County of Weld and State of Colorado - granto.and Lafarge West, Inc., a Delaware corporation whosekgalatdresi is P.O. Box 21588, Denver, CO 80221-0558 of the County of Weld and Staled Colorado .grantee: 1VlTNESSETIL That the erartor,for and in consideration of the s mot eggiollIMISS the receipt and sufficiency of which is hereby acknowledged,has granted bargained.sold and conveyed.and by these presents does gat bargain.sell,convey and confiner unto the grantee,bis heirs and assigns forever,aR the real propnry together with improvements.if any.situate.lying awl being in the County of Weld ,and Stale of Collorado, described as follows: The West 1/2 of the Southwest 1/9 of Section 18. Township 1 North, Range 66 West of the 6th P.M., County of Weld, State of Colorado ** Ronald Dean Anderson reserves all gas/oil or hydrocarbons and associated rights of way. Lafarge (Grantee) receives all sand and gravel rights. also known by street ad number as 12237 Weld County Road 8. Ft. Lupton, CO 80621 TOGETHER with all and singular the hereditament;and appwienna'hereunto belonging,or in anywise a pabinine.and the reversion and reversions.renvider and tensrmdens.rents issues and profits thereof,and all the estate,right title interest claim and dermnd whatsoever of the grantor, either in law or equity_of.in and to the above bargained premises with the heredir urcnts and appoints-mots. TO NAVE ANT)TO I10111 the said premises above bargained and described,with the appurtenances.unto the grapier.his heirs:nut assigns forever. And the motor.for hinnell his heirs and personal representatives.does covenant grant.hvgain and agree to and with the grantee.his heirs ani assigns,that at the time of One enscaing and delivery of these presents he is well wired of the premises above conveyed. has good.sure. perfect absolute and indefeasible estate of inheritance, in law, in lee simple.and has good right full power and lawful authority to grant bargain,sell and convey the same in manner and form ac aforesaid.and that the same are free and clear from all former and odor pants_bargains-saes,liens.taxes.asessrrcms. encumbrances and restrictions of whatever kind or nature soccer.except for taxes for the current year,a lien but not yet due and payable,and these specific Exceptions described by reference to recorded documents as reflected in the Tile Documents accepted by Buyer in accordance with section la 11111e Review),of the contract dated April 28, 2004 ,between lbepartks., and the following matters:** The motor shall and will WARRANT ANDFOREVER DEFEND the abovelurgained premises in the quid awl peaceable posses- sion of the grantee his hens and assigns.against all and every penal or persons lawfully claiming the whole or any part thereof. The singular number shall include the plural.the phial die singular,and the use of any tender shall be:pplicabe to all renders. ers. I WITNESS WIIEF. grantor has executed this deed on the date set forth above ober David Ande on Ronald Dean Anderso f' al/N/1rs L"'J'frL�o l��n` d'chard Dale Anderson STATE OF COLORADO ss. COUNTY OF BOULDER The foregoing inewocm seas acknowledged before ones this 12th clay of July 2004 by Robert David Anderson and Ronald Dean Anderson and Richard Dale Anderson MyCommission expires: March 27, 2007 Wt*-t a'mr hand doffu nl - 1 170•.Q',t �l4j,\�< Public BEVERLY GRIESSE Beverly Griesse NOTO-RY rnjjc WsttA$TT lM;{DIm PSTtAJIE ORCO eRADO File a UTIIJIsAna My Cantriss.a Expires 312712/107 Steven S. McWilliams Warranty Deed and Gravel Property Lease Phase 4 - ",' - - --- B 1213 REC 02159442 10/24/88 11:50 53-00 1/001 B� r' A82159442 - F 1652 MARY ANN FEDERSdEIN CLERK & RECORDER WELD CO, CO . _ ____ — _ _ ._.. ___—_—__ _. tii WARRANTY •I DEED - I ii r-, fit a� l. THIS DEED,mad,this 21st day of October ...Ole . la between Esther N. Ocher aka Esther Ocher 71 k: State//DJJoci,/q.ren-t//an' Fte I - < I Dote/k �Yllnl c v e •.; i " of the i S /l. .� l; r 3� I Coumyof Weld .State of Colorado.stamina,and ii y4 * .,; J: , .' rr • Steven S. flckilliaos L - - • ..hose fegaladdtessis 12236 VCR 8, Fort Lupton t �� 4' I t . ii i. - ' oldie County of We 1d .Sure of Colorado,gry iI urcfsh ;l Y :l T _ • WrTHESETH.That the gomorts7.for and in consideration of the soot of t� II *receipt Ndsoffrctcncy (which shetebyactnodedged.ha 1 gnmcd.bargained.sold andconw)cd and by these prtseasdoes grant. 'I ;.x41 r : bargain.scat,cur-_Y.and confirm.unto the Enacts,. his heirs and coigns keen all the teal property.together with impovetneats. i' ny.if a situate..ying and bring in foe County of Weld .State of Colorado. J: -i des lcdnfoltxs All that part • of the BY I/4 of Section 19 Township 1 Worth, Range 66 Vest of the II e ? 'It 6th P.N , which lies gect of the center line of the South Platte River; EXCEPT AND RESERVING unto it , N1 the Grantor, see heirs and/or assigns an undivided 1/2 interest in and to all royalties paid under It y `¢ the existing oil and gas lease recorded in Book 650, Reception # 1572160 and extended by affidavit It i te _?ysx�- � v t of production recorded in Book 725. Reception # 1647350, Weld County Records, on all existing oil P H `. '• / : and gas tells and any wells that nay he developed and produced in the future until October 17, 1998, , 1-1-27:',.. e • Qv at wt.ich tin this reservation shall revert to the owners in title, at that tine, of the said part w ' f'Rt ..1/6.-'5'r) MN by scree and of said Section I9 It 3�t Y • d umber as 12236 VCR 8, Fort Lupton, CO 80621 1 3r�_ • Via. TOGETHER with all and yolr he hereditament;and appurtenances thereto belonging or in anywise appe ' g,and the mvsion ad. jt c-SS" _ re. . l trnOnders rents-roues and profits thereof.and all the wrote.right.titre -mu claim and d-mend whatsoever of do g-4 a .mist i h,it by 0 equity.it in and to the above baegaiord premises with the homds nts inc.-renames •It Ol .Vr AND TO HOLD tie aa dpmmne,Shove bargained anddescxibed with theappntenaeces.unto the gnneeesl. his heknad .7 oven rn-mr.And the gramodo.for herself, her heirs and personal represemarves do covenant eon_bargain.and II iµ14,. agme so and anti the 3anuclsk his bars and asce at r.th atthe tine of the caseating and delivery o:thesepeesenis. she is well it R� sited of the Tremor.Above onveyor lo s good sure.perfect.absolute and iodaftes'ble estate of inhentance in law in lee simple.and it has eoodn M1 r 1l pour.anda.nhmdy to gram bargain sell andcmaeyihenme in and Rpm a.aforesaid.ad tt .the same are line .. •�a and clear from all Ionic.and Aber grants.bargains.saki liens tact assesiincnes encumbrances,and msinciions of wharaer kinder rtvem snorer. *k amp reservations, Rights or Way, and easements of record and/or visually evident: SUBJECT ID IIit I oil and gas lease recorded July 26, 1971, Book 650, Reception #1572160 and extended Sy affidavit s a of production, recording in Book 725• Reception #1647350; ALSO EXCEPT AND SUBJECT 10 general taxes i ' for 1981 which the Grantee herein assu.es and agrees to pay when due. .`Fee t.• sm'• The gantaltt clillard will WARRANTANDIAREV<R DEFEND the abeaebrge..alpmmises m the grin and peaceable possession of the n X - potterer). M1 boss S and assigns.against all ode-y pasoeorpersoos lawfully maiming the elicitor any pan thereof . r&: IN WITNESS WHEREOF.the gnmiaCsl ha S atoned this deed en the dare set ri forth abuse a y art ��/�//�J ���"J ///'/(/��/7 o✓i.��///�. ) /f ` /( K-} I !t/w et Y( 7 - \ I 1" d /�6L1�/s/ / • fs:ber R. Ocker Esther Ocker a F_ a. '- I it 7 l Rot Se S 1( III r4,-.'.i+aa • STATE n )))' County of Weld y}. ii The kaeadidg'k,mp vas ackrwkdged before me this 21 day of October .1988 II I 1a EsIiNN k chair aka Esther Ocher 1 .Iqg�. 111. n Wdness my hand and official seal . Ie a 1 '= I:E .F•J. ,T.w.,- -x44, i Ai,..(r /� a lit _Q,` r �� Ii F Zit 1S9f ., _ .II . lit trefk. Warr 1030 Futon Arrow-Cy rd Ft tenter,.Cdee ed 806:1 �� F -'• ti. .I No_tr2 Ye-.l!5. PARR'MTV n DEED(Few nes,li lined. anntb Wd"ar a . .N V.W ii ow..aJaw,ue WTa.CO onl.n-sow ay s !' -1. 7- ,§ - Sot f-..a • +r' FINAL STEVEN S.McWILLIAMS GRAVEL PROPERTY LEASE WITH RIGHT OF FIRST REFUSAL THIS INDENTURE,dated this J J day of jR-Nun,2y /99g [insert date of Lessor's • receipt of Company's notice of exercise of Option],(hereinafter referred to as the'Lease"),by and between Steven S. McWilliams,with his address being 12236 Weld County Road 118, Fort Lupton, Colorado 80621 (hereinafter referred to as"Lessor ) and Mobile Premix Concrete, Inc., a Colorado corporation(hereinafter referred to as the'Company"),with its address at 1400 West 64th Avenue, Denver,Colorado 80221. WITNESSETH In consideration of the sum of paid by the Company to Lessor ( ' previously paid for the Option to Lease Gravel Property ('Option") under which this Lease is taken), the receipt and sufficiency of which is hereby acknowledged by Lessor,which sum shall satisfy the advance minimum royalty requirement identified in Paragraph 4 with respect to the period from the commencement date hereof to the end of the first year of the term of this Lease,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 driving the Initial Term (as defined in Paragraph 2 below) of this Lease, along with the right during the Initial Term and Successive Terms (as defined in Paragraph 2 below) to locate and operate with associated use easements,as provided in Paragraph 5 below. In no event shall all or any part of the Property be used as or for a landfill. TOGETHER WITH the right to use and exercise the water and water rights appurtenant to the Property that belong to Lessor ("Water Rights')to the extent appropriate for the extraction, removal and processing of the Materials, as well as for revegetation and reclamation, and including exposure of alluvial waters to evaporation. 1. Definitions. A. Commercially Economic Materials shall mean all Materials that are removed from the Property and all Materials that can be sold at a profiL The determination of whether Materials can be sold at a profit shall be determined by Company in its sole and exclusive discretion. SL99O32O.237 FINAL Mobile Premix Concrete, Inc. Attn: Land Department 1400 West 64th Avenue P.O.Box 21588 Denver,Colorado 80221 Steven S. McWilliams 12236 Weld County Road#8 Fort Lupton,Colorado 80621 21. Entire Agreement. This Lease contains the entire agreement between the parties hereto,and neither it nor any part of it may be changed, altered,modified,or limited orally or by any agreement between the parties unless such agreement be expressed in writing, signed, and acknowledged by the Lessor and the Company, or their respective heirs, personal representatives, successors and assigns. IN WITNESS WHEREOF,this Gravel Property Lease with Right of First Refusal has been duly executed as of the date first above written. MOBILE PREMIX CONCRETE, INC- STEVEN S. McWILLIAMS By- 1 d%.at( /J-/ ►c�� z/ �.?(Y.U.Ztf 6/WA Position: get-vra ,Q /t&. i • u.990M.B, FINAL EXHIBIT A PROPERTY AA that part of the NW 1/4 of Section 19,Township 1 North,Range 66 West of the 6th P.M.which lies west of the center line of the South Platte River,Weld County, Colorado, EXCEPT: A parcel of land located in the NW 1/4 of Section 19, Township 1 North, Range 66 West of the 6th Principal Meridian,Weld County,Colorado,more particularly described as follows: Commencing at the northwest corner of said Section 19, thence S 00011'42"W, along the west line of said NW 1/4, a distance of 30-00 feet thence N 90000'00" E, along a line 30.00 feet south of and parallel with the north line of said NW 1/4,a distance of 747.67 feet to the Point of Beginning of said excepted parcel; 1) Thence continuing along said parallel line, N 90000'00' E, a distance of 882-35 feet to the centerline of the main channel of the South Platte River (1997) and continuing along said centerline the following 5(five)courses; 2) Thence S 22021'23'W, a distance of 119.58 feet; 3) Thence S 33019'22"W, a distance of 67.31 feet; 4) Thence S 43051'39"W, a distance of 182.10 feet; • 5) Thence S 46041'03"W, a distance of 182.88 feet; 6) Thence S 35251'46"W, a distance of 4.35 feet; 7) Thence departing said centerline, N 90000'00"W, a distance of 54211 feet; 8) Thence N 00033'48"E, a distance of 427.13 feet to the Point of Beginning of said excepted parcel,containing 7.273 acres,more or less. • SL990320:,, Chikuma Family, LLC.Bargain and Sale Deed and Gravel Property Lease Phase 5 • 216141$ t11Y1812002 tf:00► add Omar CO 1 of 1 A 0.00 0 0.00 1JL"Set Tsuk rob BARGAIN AND SALE DEED rs-SDEEDLSMADETDCORRECTdteBARGAINANDSAIEDEFDpreviouslyexea IbyM K.Cltl iana and thereafter recorded on December 27.2001 in the recoetkOf Weld County.Colorado at Reception 0 2912395 THIS DEED,made April30,2002,between MARY K.CHIKUMA,of Weld County,State of Colorado.grantor,and theCHICUMA FAMILY LLC.,a Colorado limited liabStycompany,whose legal address is 3550 Weld County Road,Ft Lupton,Colorado.80621,grantee- Se and other valuable consideration,the receipt and sufficiency of whirl. is acknowledged,grantor sells and conveys unto the grantee,its successors and assigns,forever,all the right,tide,interest,claim and demand which the grantor has in and to the real property,together with improvements,if any,in die County of Weld and State of Colorado,described as follows- The N of Section 13,Township I North,Range 67 West of the 6th P.M.,and the V/'A of the NW 1/4 of Section 18,Township I North,Range 66 West of the 6"P.M., Weld County,Colorado. Except rights of way as conveyed by Deeds recorded in Book IS,Page 81,and Book 287,Page 208,Weld County Records. Except reservations as contained in Patent recorded in Book 20,Page 357,Weld County Records. Except rights of way for pipe lines as conveyed by instruments Recorded in Book 691 as Reception No. 1613042,Book 693 as Reception No. 1614812,Book 698 as Reception No. 1620035,Book 703 as Reception No. 1624605,Book 724 as Reception No. 1645678 and Book 753 as Reception No. 1674640,Weld County Records. All water rights, including 160 shares of The New Brantner Extension Ditch Company and 2.35 shares of The Brighton Ditch Company. All mineral rights,excepting oil_gas and associated liquid hydrocarbons. TO HAVE AND TO HOLD together with any and all appurtenances and privileges.and all the estate,right,title,interest and claim whatsoever,of the grantor,either in law or equity,to the only proper use and benefit of the grantee,its successors and assigns forever. The grantor has executed this deed on the date set forth above. !AA. k MAR`k.CHIKUMA STATE OF COLORADO ss- CI Y AND COUNTY OF DENVER The foregoing instrument was acknowledged before me on April 30. 2002 by MARY K CHIKUMA Witness my hand ad official seal. My commission expires: lafea e'risie"hpies 1211. 03 :,.::,,.may.,.. ,, Phblic V: � 1120 Lincoln Street,Suite 1100 .-8 i Denver,Colorado 80203 I O:t i h.�4TBOF _ 19-5 2912395tt/27J>!0, aft. JA td1 Tadao* 1 of I R BAN D D.00 Weld fly CO - — BARGAIN AND SALE DEED THIS DEED,madeLn- ,2 4 .2001.between MARY IC CHIXUMA,of Weld County.State of Colorado. grantor,and the CHIKUMA FAMILY L-L.C-,a Colorado limited liability company,whose legal address is 3550 Weld County Road. Ft.Lupton.Colorado.80621,grantee. and other valuable consideration. die receipt and sufficiency of which is acknowledged, grantor sells and conveys unto the grantee, its successors and assigns,forever,all the right,tide,interest,claim and demand which the grantor has in and to the real property,together with improvements,if any,in the County of Weld and State of Colorado. described as follows: The N t/of Section 13.Township 1 North.Range 67 West of the 6th P.M.,and the W 54 oldie NW 1/4 of Section 18,Township I North.Range 66 West of the 6"P.M-, Weld County,Colorado;subsequent to May 21. 1971,at 7:45 o'clock A.M. Except rights of way as conveyed by Deeds recorded in Book IS, Page 81.and Book 287,Page 208,Weld County Records. Except reservations as contained in Patent recorded in Book 20.Page 357,Weld County Records. Except rights of way for pipe lines as conveyed by instruments Recorded in Book 691 as Reception No. 160042. Book 693 as Reception No. 1614812, Book 698 as Reception No. 1620035, Book 703 as Reception No. 1624605,Book 724 as Reception No. 1645678 and Book 753 as Reception No. 1674640,Weld County Records. All water rights. including 160 shares of The New Brumes Extension Ditch Company and 2.35 shares of The Brighton Ditch Company. All mineral rights-excepting oil,gas and associated liquid hydrocarbons. TO HAVE AND TO HOLD together with any and all appurtenances and privileges,and all the estate,right,the,interest and claim whatsoever,of the grantor,either in law or equity,to the only proper use and benefu of the grantee.its successors and assigns forever. The grantor has executed this deed on the date set forth above. ��,tw.. err MAR7TC.CHIKUMA STATE OF COLORADO )ss- COUNTY OF WELD The foregoing instrument was acknowledged before me on/2 J/ .2001 by MARY K.CHIKUMA. —' Witness my hand and official seal- • My commission expires: - !LY0 - Notary Public oOTqt _z Address: ditc— 7 n - • BIIC Y 337 - - DATt OCCKTEMOty STAlt Of Coalman STATE OF COLORADO CERTIFICATE OF DEATH /.--- 238-684 et r CsAN O..COttONI ll YAM int C.WV•4• t*CSaMI. •.._•r •., Wa. tear _ HARRY SATOSHI _ CHIKUMA , Hale .December____ __2,_.1985__ _ _ __ _ 045 rn..... Ibn rr.tr.so scea Am - tn.•raw_•.tu VMr w• OO;p*MTM M11/.[.p• . Yellow __Japanese 73 j_ . MarcIsah $, 1912 Weld �:1• •.i..Y,.,.l.,IY...ry.s.. _.__ "IW.•a,1„WO(w,p$rtl•n _ __.___ _ _ a _ F . Lupton ., 3550 Weld County Road /23 ysTa_ric:c;,.-_._--.,loni7w:ri•;.�tnui•P::Tn.•dwtinirt�..7vr+ao, w+vw.cswwst -ti _--.17iun:ein=.:;:i31 T!._...._._. :ac0010.0.Y0at(O..-... jasen.so:- s• - . . ye . Colorado J. U.S.A. ,., Married_ •• Mary Kivomi Nishikaw o a scrq x..f-...•gang rvs,n.xn arr..._.-,.-.... �._1'-- - _ -.--_"-- 522=48-4759 F Farmer �— �� Agriculture .,!'Oily.! St.n CW.t. tee r.TOW on torn•M. !.! VW f Ana.MM.41• -_-FS:n -7 • Colorado I+ Weld •r_-.ts -. tilt. Lupton 80621 3550 Weld County Rd. /23, !. No b. Cotaro Chikuma a Yoshi Hatsunaga TrO.W..tt..u0( .._�.•.•- • Wotn•a.0004 SS net to ea.t•-W C....Os.•w.. woo M 4r. Mary Kiyomi Chikuma wife .3550 Weld Co. Rd.123 Ft. Lupton CO 80621 8 iu0!a. Ci4•tai.0u.11EO0••M raw t....•.. cmennucm CM wiOAY.M1...4 AND 000ATK/• (•t.as t.... t•..t Q "Z.,16:111 .. Elmwood Cemetery Brighton Colorado •�Cf t(O`_ ha;seaocsisSos fled sat•.o.tt wt.tft wat0w(a. 0.4 t••- 5 ,- hn R. ee .16i7 IGrist'$HighlandMortuarv,300E.104thAve.,Dehver•Co8023" a.M.fKtan !L COaCOIA-O.I•.40.P)7"...r.....= O,•t(Ync' •.00Lv1.tr I:09a........,....... CMfi•K.••M1.- w.Y...Or M.,�O[MCC•: __a-a ctO•. C )• C,;' ,"' —lint WIC..c•1.a age Out SO 1y ca04.s.n..t> — 11.0 M•E scut* Zo-..... ' -DalEYLna,1�-.e....—. O.q. ra .K(a txa,.n t awn a0M(R p N�'dn •nr t _ — Wan ',John M. Hiner, M.D. 1929 Egbert Brighton, Colorado I.CG3t.AA OAI(a(CcMOt' A(4Kuu......-O.._•n-. I... w•'— 2/i'-T . 'rrl/.mnr✓l Deputy 2. December 6 1985 '' Pa., lel(A Ian• 0444HS\ /On utast at.toI Old k.. ..s At Ol(.Or CO tas.unalt CAW:. /If .44 NI �- G` /f! GjirL�liS!!./lrz Q/ 4fY - , Li al l� .,.t .• hd 10.4+x5+CO✓.(ION+R rr O - • o c.o. e,..( YCnn✓_•,1 c•',a:•TI,-C �n....a I M•lOtt1 e.ri - W� .17';:c r—�'"/!t l- /-22,- !/i4e C..,P .5- 0::a": j�1:.' No L, No_ ---- cCCY(:, .o...K•0(. :i.:l t-....1....).s.Or TAM, 019(1,<f Ws,n.wan Of.NAA.J C1Ot-rA ,•KJ H..•Y/.wv(S•CaaY.J"'- • -" iC,. _ — O,rA.rY.f;l,A. ....... flack O••nu.._.y..^- '\Kat,pn 0•MC,Os..w Y.Ca-0.• ' '''• N. �.. Y- I I HEREBY CERTIFY THIS DOCUMENT IS A TRUE AND CORRECT COPY OF THE RECORD IN MY CUSTODY AS REQUIRED BY LAW. Witness My n and Seal NOT VALID WIT((OVT This I day of Decemb r , 1985 LOCAL REGISTRAR'S A SEAL - / De ut CAL REG RAR OF VITAI TATISTICS Ralph R. Wooley, MO, MPH Registration strict Numbe 230 Medical Director Greeley , Colorado WELD COUNTY PENALTY BY LAW if an DEPARTMENT OF hEALT1I Y person alters, uses, attempts to use, or furnishes to another for deceptive use any vital statistics certificate. I illI IIII I lill Illillilill MI III 1928337nines414:15P .1A as *Ta a 1 of 2 R 10.50 0 0.00 Weld Dm*CO EXHIBIT"A" • HARRY CHIKUMA, AKA HARRY SATOSHI CHIKUMA DOCUMENTS TO BE RECORDED: CERTIFICATE OF DEATH RECORD TO THE LEGAL DESCRIPTION LISTED BELOW: TOWNSHIP 1 NORTH,RANGE 66 WEST SECTION 18: LOT 1 (W/2NW/4) TOWNSHIP 1 NORTH. RANGE 67 WEST SEC. 13: N/2 WELD COUNTY, COLORADO I 11111 nia111 !'l IMllii O 2921337 02f2V2012 04:11P JA kid Tsakasolo 2 of 2 R 10.00 D 0.00 Wild Coaaty CO DL 2/1S/02 GRAVEL PROPERTY LEASE WITH RIGHT OF FIRST REFUSAL dated this ,Ti. day of 2002(hereinafter referred to as THIS INDENTURE. �� , L.L-C., a Colorado limited liability this "Lease'), by and between the C�UMAse aAddrftess is 3550 Weld County Road 23, Fort company, Taxpayer I.D. Na 84-1567524, RESERVES,INC.-t Lupton.Colorado 80621 (hereinafter referred to as"Lessor")and MINERALith S addressRE at 1400 West b to th Colorado corporation(hereinafter referred to as the"Company").M Avenue, Denver, Colorado 80221, Attention: Division Land Manager. WITNESSETH 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 n Exhibitd e attachediac heretoto sa and operty"),made a part of evel Lease , mine, quarrry, referredct,o as the rocessrssell use and remove them during the Term drill,and test for,develop, mine, quarry, process, 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. Term- The Term of this Lease shall be an initial period of thirty (30) years commencing on the 1st 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 of the initial Term the Company may obtain an extension of the Term for so long written notice to after the en d of thesor inpritial to Term end Lecommercial mining operations continue on the Property by of the initial Term. Commercial mining operations shall be deemed to continue on the Property 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. agreement between the parties unless such agreement be expressed in writing, signed. and acknowledged by the Lessor and the Company. or their respective heirs, personal representatives_ successors and assign& 28. Counterparts. This Lease may be executed in one or more counterparts_each of which shall be deemed an original and all of which together shall constitute one and the same Lease. IN WITNESS WHEREOF.this Gravel Property Lease with Option to Purchase has been duly executed as of the date first above written LESSOR: CHIICUMA FAMILY, L.L.C. By: Via r_ Mary/C. Chikuma. Manager LESSEE (THE COMPANY): MINERAL RESERVES, INC. By: � /� ��-� aevanc- - !� /7L ttitle) - 13 - EXHIBIT A PROPERTY The N'/of Section 13, Township 1 North, Range 67 West of the 6'h P.M_, and the W'V of the NW'/. of Section 18. Township 1 North_ Range 66 West of the 6th P.M_, Weld County_ Colorado. B-1 Clun.n.Lose FINAL dot This pare was updated in conjunction with the USR Application. June 23, 2005 City of Thornton Special Warranty Deed and Partial Assignment and Consent Agreement Phase 6 Ft.Lupton Pit DMG Ili Pe.nit Page 69 of85 • i � riMOS 12/01/2000 11:38A JA Sold o! di l of 5 R 25.09 0 9.00 Weld Cows CO kuiw� ' 1 8O SPECIAL WARRANTY DEED THIS DEED,made this a k{ 'day of November,2000,between D&S MINING, INC., of the County of Weld,State of Colorado,grantor and the CITY OF THORNTON,a Colorado municipal corporation, of the County of Adams,State of Colorado whose address is 9500 Civic Center Drive,Thornton,CO 80229,grantee WITNESSETH That the grantor,for and in consideration of the sum ofS the receipt and sufficiency of which is hereby acknowledged, has granted, bargained,sold and conveyed, and by these presents,does grant,bargain, sell, convey and confirm,unto the grantee, and its successors and assigns,forever, all the real property,together with improvements, if any,situate,lying and being In the County of Weld, State of Colorado,described as follows: The West Y: of the Southwest Ys of Section 7,Township 1 North, Range 66 West,6h Principal Meridian,and The East Y:of the Southeast Ya of Section 12,Township 1 North,Range 67 West, 6' Principal Meridian SUBJECT TO: a. Oil and Gas Lease recorded December 1, 1956 in Book 1376 at Page 250, between Lena Adcerson and The California Company. b. Oil and Gas Lease recorded April 22, 1970 in Book 624 at Reception No. 1545940, between Doris Ackerson and T. S. Pace. C. Right-of-way as granted to The Denver Laramie and Northwestern Railway Company as set forth in Instrument recorded February 13, 1909 in Book 289 at Page 539. d. Right-of-way set forth in instrument recorded December 28, 1920 in Book 628 at Page 254. e. Right-of-way as granted to Colorado Central Power Company set forth in instrument recorded January 22, 1948 in Book 1229 at Page 448. f. Right-of-way as granted to the United States of America set forth in instrument recorded October 10, 1958 In Book 1431 at Page 574. g. Right-of-way as granted to Amoco Production Co. as set forth in instrument recorded January 11, 1973 in Book 683 at Reception No. 1605178. Page 1 of 3 LIMN II lg In I IIInll 2810190 12/8112000 1118A JA kid Tsalramoto 2 of 5 R 25.00 D 0.00 Weld Cormq CO h. Rights-of-way as granted to Colorado Interstate Gas Corp. as set forth in instruments recorded November 19, 1973 in Book 703 at Reception No. 1625016,and November 17, 1975 In Book 753 at Reception No. 1674723. i. Right-of-way as granted to Panhandle Eastern Pipeline Co.as set forth In instrument recorded December 2, 1975 In Book 754 at Reception No. 1675875. j. Right-of-way as granted to Mountain States Telephone and Telegraph Co. as set forth in instrument recorded June 7, 1985 in Book 1072 at Reception No. 2012673. k. Right-of-way as granted to KN Front Range Gathering Co. as set forth in instrument recorded August 13, 1993 in Book 1397 at Reception No. 2346144. I. Right of way for county roads 30 feet wide on either side of section and township lines,as established by the Board of County Commissioners, Weld County, recorded October 14, 1889,in Book 86, Page 273. m. Taxes and assessments for the current year, payable January 1, 2001. E CEP11NG AND RESERVING THEREFROM: a. Water and water rights evidenced by shares in the Brighton Ditch owned by D&S Miring, Inc.which may be appurtenant to the Property; b. The right to receive, and the obligation to return or refund,rentals and royalty payments under the existing LPacn Agreement dated August 15, 1996 between D&S and Richardson Contracting,Inc. and the Assignment,Amendment and Consent Agreement dated April 20, 1998 ("Mining I Pace")until 12:00 midnight on August 15, 2018. c. Any and all mineral interests(excluding sand and gravel)currently owned by D&S Mining,Inc d. Any deep bedrock(Senate Bill 5)groundwater. Excluding therefrom any right the owner of said groundwater may have to enter upon the Property to extract said groundwater. also known by street and number as: vacant land; Page 2 of 3 • •010100 12N112100 11'd0A IA Sold Tsolrawoto al 5 R 25.00 0 0.00 Weld County CO TOGETHER with all and singular the hereditaments and appurtenances thereto belonging,or in anywise appertaining,and the reversion and reversions,remainder and remainders, rents,issues,and profits thereof: and all the estate,title,interest,claim and demand whatsoever of the grantor either in law or equity,of,in and to the above bargained premises, with the hereditaments and appurtenances; TO HAVE AND TO HOLD the said premises above bargained and described with the appurtenances,unto the grantee its successors and assigns forever. The grantor for Itself and successors does covenant and agree that It shall and will WARRANT AND FOREVER DEFEND the above-bargained premises in the quid and peaceable possession of the grantee, its successors and assigns,against all and every person or persons claiming the whole or any part thereof, by through or under the grantor. IN WITNESS WHEREOF,the grantor has executed this deed on the date set forth above. D&S MINING,INC. /f • �- 7.-Lefer �t 4Y�A.li fi President STATE OF COLORADO ) )ss. cowrie OF_s sm The foregoing instrument was acknowledged before me this] day of C>%-^) , 2000 by Freda Drelling,President of D&S Mining, Inc W my hand and official seal. 7 My commission expires: I st rJ O Notary Publics Address: .-a Page 3 of 3 I Iii ii !; I� nun umu NUMwaNUM 1210112000 �� "' in Ina 1 or b R 26.00 0 0.00 Weld Candy 00 ote COVENANT NOT TO IRRIGATE (Dry-Up Covenant) Notice is hereby given that D & S Mining, Inc., Freda Dreiling, Myrna Slabaszewski and their predecessors in interest have continuously and historically irrigated certain lands underlying the Brighton Ditch. These lands indude the following parcel of approximately 168 acres: The WVz of the SW% of Sec. 7,T1N, R66 West of the 6th P.M. and the Elh of the SE% of Sec. 12, T1N, R66 West of the 6th P.M., both in Weld County, Colorado. D&S Mining,Inc.contemplates conveying the above-described real property to the City of Thornton and, as part of that transaction, is not conveying the appurtenant water rights such as the interests in the Brighton Ditch Company shares which historically irrigated said property. D & S Mining, Inc., Freda Dreiling and Myrna Slabaszewski contemplate the separate sale and transfer of their interests in the Brighton Ditch Company, and the purpose of this Covenant Is to be able to give assurances that this historic acreage will never again be irrigated by waters from the Brighton Ditch once the-water is transferred to a new use by an appropriate proceeding in Water Court. However, nothing herein shall be construed to prevent any future owner of both the land and Brighton Ditch Company shares from reapplying said water to irrigation uses on the above described property by appropriate proceeding in Water Court. Nor shall anything herein be construed to prevent any future owner of the above described property from utilizing Brighton Ditch Company shares for the creation and filling of any reservoir developed on the property. Nor shall anything herein be construed as a release of D & S Mining, Inc., Freda Dreiling and Myrna Slabaszewski from any obligation they may have to supply Brighton Ditch Company water to the property under the Lease Agreement dated August 15, 1996 between D & S and Richardson Contracting, Inc. and the Assignment, Amendment and Consent Agreement dated April 20, 1998 ("Mining Lease". aow4 71 III - 21101$ 1210111000 1118A a Odd TS:emote O of 5 R 25.00 0 0.00 Weld Coeegl CO As part of this Covenant Not to Irrigate, which will run with the land, D &S Mining, Inc., Freda Dreiling and Myrna Slabaszewski and their respective heirs, successors and assigns, retain the right to enter upon, locate and maintain monuments in the field that may be required by the State Engineer or the Division Engineer in order to enforce this Covenant. etterins5P2 DONE this 2$e day of August, 2000. D &S Mining, Inc. sy Zu - ,tip./6*. President Freda Dreiling 4 4 M Slabaszews PARTIAL ASSIGNMENT AND CONSENT AGREEMENT This Partial Assignment and Consent Agreement is made and entered into this IA day of November,2000 by and among D&S Mining,Inc.,a Colorado corporation,whose address is 4025 Weld County Road 23,Fort Lupton,Colorado 80621 ("D&5")and the City of Thornton,a Colorado municipal corporation,whose address is 9500 Civic Center Drive,Thornton,Colorado 80229 ("Thornton"). RECITALS A. WHEREAS,D&S entered into that certain Lease Agreement dated August 15, 1996 with Richardson Contracting,Inc. for the right to mine gravel on approximately 200 acres in Weld County, Colorado("Mining L--cr"). B. WHEREAS,that Mining Lease,among other things,was assigned on April 20, 1998 to Mobile PreMix Concrete,Inc.for the right to mine the subject property. C. WHEREAS,on or about April 20, 1998 the City of Thornton initiated a condemnation proceeding in Weld County District Court(Case No.98-CV-449)which sought to acquire the approximate 168-acre parcel in the Southeast Quarter of Section 12,Township I North,Range 67 West as a water storage facility after the gravel mining had been completed and subject to the Mining Lease of August 15, 1996. D. WHEREAS,D&S and Thornton entered into a settlement of that litigation which included a Purchase Agreement of August 28,2000. That Purchase Agreement was closed on November 28,2000 and D & S conveyed the approximate 168-acre parcel to Thornton. E. WHEREAS,as part of the settlement,the said litigation and in accordance with the Purchase Agreement,Thornton is to take title to the approximate I68-acre parcel,among other things,subject to the Mining Leasr as amended and assigned to Mobile PreMix Concrete, Inc. F. WHEREAS,D&S is entitled to receive all rentals and royalty payments (including the obligation to return or refund any such rentals or royalty payments),but Thornton desires to assume all other rights or obligations of the Mining Lease for the 168 acres it has acquired. G. WHEREAS,this partial assignment does not relate to or affect the approximate 40-acre parcel in the Northeast Quarter of the Northwest Quarter of Section 12,Township I North,Range 67 West where an existing sand and gravel pit is located. Partial Assignment and Consent Agreement D&S Mining,Inc./City of Thornton Page 2 AGREEMENT NOW THEREFORE,in consideration of the covenants and agreements contained herein and referenced above and other good and valuable consideration,the receipt and adequacy of which are hereby acknowledged,the parties hereto agree as follows: 1. D&S hereby makes a partial assignment to Thornton of all of its right,title and interest in the I rase Agreement of August 15, 1996 as amended on April 20, 1998,subject to the following reservations a. This partial assignment relates only to the approximate 168 acres in the Southeast Quarter of Section 12 and does not relate to the approximate 40-acre parcel in the Northeast Quarter of the Northwest Quarter of the same Section 12. b. D&S will continue to receive all rentals and royalty payments under that base Agreement and will continue to have the obligation to return or refund any of said rentals or royalty payments in accordance with that agreement c. D& S shall continue to have the obligation to provide the use of the.45 share of the Brighton Ditch Company water for the term of the Mining Incr. 2. Thornton accepts this partial assignment on the terms and conditions set forth above. Thornton acknowledges that the extent or manner of sand and gravel mining operations is to be determined by Tenant,subject to the terms and condition of the Leases. Partial Assignment and Consent Agreement D& S Mining,IncJCity of Thornton Page 3 D& S MINING,INC. By: �✓tg2 rD. liuq Dated: /J-aa-co Freda Dreiling,Presiidengt STATE OF COLORADO ) )ss- COUNTY Ol ) SUBSCRIBED AND SWORN to before me by Freda Dreiling thisaF4hday of November, 2000. Witness my hand and official seal. My commission_ezpires; \' 1 .oa C>th-r-triccfrJ [SEAL] 'S Notary Publi CITY OF THORNTON-:;C By: Dated: 1 `"!51`2_000 a ge, anger ATTEST: ,tntNancy Vin�ity. Clerk APPROVED AS TO FORM: Margaret eric Thornton City Attorney SPECIAL WARRANTY DEED THIS DEED, made this- /5 k day of November,2000,between D&S MINING, INC., of the County of Weld, State of Colorado,grantor and the CITY OF THORNTON,a Colorado municipal corporation, of the County of Adams,State of Colorado whose address is 9500 Civic Center Drive,Thornton,CO 80229, grantee: WITNESSETH,That the grantor, for and in consideration of the the receipt and sufficiency of which is hereby acknowledged, has granted, bargained, sold and conveyed, and by these presents, does grant, bargain,sell, convey and confirm, unto the grantee, and its successors and assigns, forever,all the real property, together with improvements, if any, situate,lying and being in the County of Weld, State of Colorado,described as follows: The West Itz of the Southwest Y4 of Section 7,Township 1 North, Range 66 West, 6'"Principal Meridian, and The East Yz of the Southeast Y4 of Section 12,Township 1 North, Range 67 West,6m Principal Meridian SUBJECT TO: a. Oil and Gas Lease recorded December 1, 1956 in Book 1376 at Page 250, between Lena Ackerson and The California Company. b. Oil and Gas Lease recorded April 22, 1970 in Book 624 at Reception No. 1545940, between Doris Ackerson and T. S. Pace. c. Right-of-way as granted to The Denver Laramie and Northwestern Railway Company as set forth in instrument recorded February 13, 1909 in Book 289 at Page 539. d. Right-of-way set forth in instrument recorded December 28, 1920 in Book 628 at Page 254. e. Right-of-way as granted to Colorado Central Power Company set forth in instrument recorded January 22, 1948 in Book 1229 at Page 448. f. Right-of-way as granted to the United States of America set forth in instrument recorded October 10, 1958 in Book 1431 at Page 574. 9. Right-of-way as granted to Amoco Production Co. as set forth in instrument recorded January 11, 1973 in Book 683 at Reception No. 1605178. Page 1 of 3 h. Rights-of way as granted to Colorado Interstate Gas Corp.as set forth in instruments recorded November 19, 1973 in Book 703 at Reception No. 1625016,and November 17, 1975 in Book 753 at Reception No. 1674723. i. Right-of-way as granted to Panhandle Eastern Pipeline Co.as set forth in instrument recorded December 2, 1975 in Book 754 at Reception No. 1675875. j. Right-of-way as granted to Mountain States Telephone and Telegraph Co. as set forth in instrument recorded June 7, 1985 in Book 1072 at Reception No. 2012673. k. Right-of-way as granted to KN Front Range Gathering Co. as set forth in instrument recorded August 13, 1993 in Book 1397 at Reception No. 2346144. I. Right of way for county roads 30 feet wide on either side of section and township lines,as established by the Board of County Commissioners,Weld County, recorded October 14, 1889,in Book 86, Page 273. in. Taxes and assessments for the current year,payable January 1, 2001. EXCEFTING AND RESERVING THEREFROM: a. Water and water rights evidenced by shares in the Brighton Ditch owned by D&S Mining, Inc. which may be appurtenant to the Property; b. The right to receive, and the obligation to return or refund, rentals and royalty payments under the existing Lease Agreement dated August 15, 1996 between D&S and Richardson Contracting, Inc and the Assignment, Amendment and Consent Agreement dated April 20, 1998 ("Mining Leased until 12:00 midnight on August 15, 2018. c. Any and all mineral Interests(excluding sand and gravel)currently owned by D&S Mining,Inc. d. Any deep bedrock(Senate BM 5)groundwater. Excluding therefrom any right the owner of said groundwater may have to enter upon the Property to extract said groundwater. also known by street and number as: vacant land; Page 2 of 3 TOGETHER with all and singular the hereditaments and appurtenances thereto belonging, or in anywise appertaining,and the reversion and reversions,remainder and remainders, rents,issues,and profits thereof; and all the estate,title,interest,claim and demand whatsoever of the grantor either in law or equity,of,in and to the above bargained premises, with the hereditaments and appurtenances; TO HAVE AND TO HOLD the said premises above bargained and described with the appurtenances, unto the grantee its successors and assigns forever. The grantor for itself and successors does covenant and agree that it shall and will WARRANT AND FOREVER DEFEND the above-bargained premises in the quiet and peaceable possession of the grantee,its sirrrresors and assigns,against all and every person or persons claiming the whole or any part thereof,by through or under the grantor. IN WTTNFSS WHEREOF,the grantor has executed this deed on the date set forth above. D&S MINING,INC. By: T.1,A 4Y L Acez�i.w9 President STATE OF COLORADO ) )ss- COUNTY OF_;0 rl Am The foregoing instrument was acknowledged before me day of \v C - , 2000 by Freda Dre3Cng,President of D&S Mining,Inc Wi my hand and official seal. My commission expires: LMI0 D Notary Public, Address: Page 3 of 3 Mineral Reserves, Inc. Bargain and Sale Deed, Special Warranty Deed and Warranty Deed Phase 7 •i� ����w�e� noses 17i*01l001 IItt7A a 1St TottataMa 1 M 2 R 10.00 0 0.00 Weld Conti CO 496 BARGAIN AND SALE DEED THIS DEED,Made this 276 day of November,2001,between FREDA LEE DREILIING,formerly known as Freda Lee Ackerson,MYRNA KAY SLABASZEWSKI,formerly known as Myrna Kay Ackerson,LARRY R. LEMWEBER as personal representative of the Estate of Mary E.Leinweber,also known as Mary Evelyn Leinweber,formerly known as Mary Evelyn Ackerson.Deceased,and D&S MINING.INC.,a Colorado corporation,of the County of Weld and State of Colorado,Grantor&and MINERAL RESERVES,INC.,a Colorado corporation,whose legal address is 1000 West 64° Avenue,Denver,Colorado*0221.Attention:Duane Bettis.Division Land Manager,of the City and County of Denver, State of Colorado.Grantee: Wf7NESSETH,that the Grantors,for ten dollars and other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,sell and convey to Grantee all right,title,claim and demand of Grantors in and to all the real property situate,lying and being in the County of Weld,State of Colorado,described as follows: The SE%of the NW%.of Section 12,Township I North,Range 67 West of the 66 P.M. (conveyance made to clarify that die intent oldie Quit Claim Deed recorded February 5, 1992 in Book 1325 as Reception No.2277307 was to convey to D&S Mining.Inc.,the NE%of the NW%of said Section 12); and Vacated roads,streets,alleys or rights-of-way and any strips and gores of land within or adjoining the following described land in said Section 12: The NW Y.of the SEY.and the East 30 acres of the NE%of the SW Y.; The SEV.oldie N W Y.; The S%of die East 60 acres of the SW%and the West Quarter of die SWY..of the SPA;and The East 30 acres of the SW%of the SE%•, EXCEPTING AND RESERVING TO GRANTORS, HOWEVER, as their interests therein may now appear of record,the SWY..NW'/.,die NE'V.NW%and the E'ASEY.of said Section 12. Vacant Land—No Street Address With all appurtenances TO HAVE AND TO HOLD the premises above bargained and described with the appurtenances unto the Grantee, its successors and assigns forever. IN WITNESS WHEREOF,she Grantors have executed this deed on the date set forth above Is& �'.UQ" t✓t.4Gt.l'[irt.P' Freda Ice Drciling, (Ada Freda Lee Ackerson filch Myrna IC Ackerson D&S MINING,INC.,a Colorado corporation, Z_ Larry R.- Leinweber as Personal —� g Representative of the Estate of Mary By: ---(ACC akr-aLe. .ltde Evelyn Leinweber. a/k/a Mary E Freda Lee Dreiling,President Leinweber, f/k/a Mary Evelyn Ackerson,Deceased (Seal) 2001400 11/3112011 Oita a gidi(Tadowols 2 of 2 R 70.00 D Ott Wald Peaty CO STALE OF COLORA/sc — ) COUNTY OF t 'ss. The foregoing instrument was acknowledged before me iHc2 day of November,2001 by Freda Lee Dreiling, MU.Freda Lee Ackerson,and Myrna Kay Slabastewski,Ok/a Myna Kay Ackerson. Witness my hand and official seal. .Q.0 +TA0 q} My commission expires: • STATE OF CO DO ) �Y ' !tzs BL.:-:PrO;' SS- `OP COL—" COUNTY OF ) yrglmamatEyt c tivaal The foregoing instrument was acknowledged before me this21day of November,2001 by Larry R.Leinweber as Personal Representative of the Estate of Mary Evelyn Leinweber, a/k/a Mary E. Lcinweber, filch Mary Evelyn Ackerson.Deceased. Witness my hand and official seal. _ EM My commission expires: •A422.0 ,i Public 150 STATE OF COCA ADO ) AbetAcc O�%, )s= I � ° o COUNTY OF tea_ )The foregoing instrument was acknowledged before me thisa2day of November,2001 by Freda Lee Dreiling, 17k/a Freda Lee Ackerson,individually and as President of D&S Mining.Inc_a Colorado corporation_ Witness my hand and official seal. 't My commission expires i7 - 2 Public �1a`ti,V81�G:lOD; SOP wcass6110 t70t>o • MOM TIMM1 an* 1A AM TattlaaaN • 1 of 4 R 20.00 D 100.31 Wald Cau*r CO Ati SPECIAL WARRANTY DEED THIS DEED,Made this 2J'day of November,2001,between FREDA LEE DREIT.HNG,fp.mrry known as Freda Lee Ackerson,and MYRNA KAY SLABASZEWSKI,formerly known as Myrna Kay Ackerson,of the Canty of Weld and State of Colorado,Grantors,and MINERAL RESERVES, INC.a Colorado corporation, whose legal address is 1400 Wes 64'Avenue,Denver,Colorado 80221,Attention:Duane Bollig,Division Land Manager,of the City and County of Denver,State of Colorado,Granter. WIINESSETH,that the Grantors, for and in consideration of the sun of thc receipt and aniffaacra.y of which is hereby acknowledged,have granted,barganed,sold and conveyed,nary these presents do grant, bargain,sell,convey,and confirm,unto the Grantee,its successors and assigns forever,all the real property situate,lying and being in the County of Weld,State of Colorado,described as follows: Parcel I,: The SE%of the N WV..of Section 12,Township 1 North,Range 67 West of the 6'P.M.;and Parcel 2:The NW%of the SE%and the East 30 acres of the NE%of the SW'/.of Section 12,Township 1 North,Range 67 West of the 6'P.M, Vacant Land—No Street Address TOGETHER WITH all minerals and mineral rights,sand and gravel and sand and gravel rights,oil and gas and oil and gas rights,coal and coal rights owned by Grantors,all rights of Grantors in and to existing oil and gas wells and leases and other leases affecting the above-described premises ("Franises");all rights-of-way and easements owned or used by Grantors in connection with the Premises; all structures, fixtures, houses, buildings, pumps, wells, irrigation improvements and other improvements on the Premises and all other property rights appurtenant thereto;and except as otherwise provided herein,all water rights appurtenant to or used or usable in connection with the Premises,including all ditches and ditch rights,wells and well rights reservoirs and reservoir and storage rights;,all non-tributary or tributary groundwater underlying the Premises whether adjudicated or not, whether permitted or not; together with any and all structures and improvements and related facilities used for the diversion of such rights, such as headgates or other diversion structures, pumps, pipelines and measuring devices; well permits, shares of stock in any ditch or reservoir company and leases and any other rights of use of any ditch and/or reservoir water rights for water used icon and appurtenant to the Premises-,provided,however,there is expressly excepted from this Deed all of Grantors'right,title and interest in the water rights represented by 1.75 shares of the Brighton Ditch Company,evidenced by Certificate Nos. 166, 168 and 223(replacement for lost Certificate No.167),such shares being the subject of a separate Water Rights Purchase Agreement between the Grantors and Grantee. TO HAVE AND TO HOW the premises above bargained and described with the appurtenances unto the Grantee, its successors and assigns forever_ The Grantors,for themselves,their heirs and personal representatives or successors,do covenant and agree that they shall and well WARRANT AND FOREVER DEFEND the above-bargained premises in the quiet and peaceable possession of the Grantee its successors and assigns,against all and every person or persons claiming the whole or any pan thereof.by,through or under the Grantors,except for those matters set forth on Exhibit A attached hereto and incorporated by reference. IN WITNESS WHEREOF,thee Grantors have executed this deed on the date set above eh -GL- It t,e,n L.._. ere.-. Freda Lee Dialing, J - K .YT IaMsrev's�. Okla Freda Lee Ackerson fh/a Myrna Kay Ackerson STATE OF COLORADO �� M� )ss COUNTY OF l. — ) The foregoing instrument was ack nowkdgcd before me this' lI day of November.2001 by Freda Lee Orating, Okla Freda Lee Ackerson,and Myrna Kay Slabav<wslu,fh/a Myrna Kay Ackerson. Witness my hand and official sal. My commission expires: ID- in 7- ...�.. % 0 O Aqf'° otary Pu ₹{f i A 1 qoa rose amswa0a TRANSNATION TITLE INSURANCE COMPANY Commitment No.: 8053925B C-3 SCHEDULE B - Continued EXCEPTIONS EXCEPTIONS I THROUGH 6 DELETED 7. Oil and gas lease between Myrna Kay Slabaszewski, Mary Evelyn Leinweber and Freda Lee Dreiling and Frontier Land and Exploration, Inc_ dated May 24, 1978, recorded May 26, 1978 in Book 833 as Reception No. 1754768, and any interests therein or rights thereunder. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by Cotton Petroleum Corporation, recorded March 8. 1979 in Book 862 as Reception No. 1783828 and March 29, 1979 in Book 864 as Reception No. 1785820. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by HS Resources, Inc., recorded December 12, 2000 as Reception No. 2812777. (Affects Parcel 1) 8. Right of way, whether in fee or easement only, for a pipe line or pipe lines and appurtenances, granted to Continental Pipe Line Company by Myrna Slabaszewski, Freda Dreiling and Mary E. Leinweber by instrument recorded February 22, 1980 in Book 896 as Reception No. 1817710, in which the specific location of the easement is not defined. (Affects Parcel 1) 9. Right of way, whether in fee or easement only, for undisclosed purposes, as granted to Elsie Thiebault by Lena Ackerson and Harold Ackerson, recorded February 7, 1947 in Book 1197 at Page 229, affecting the following described property: The West 20 feet of the SE1/4. (Affects Parcel 2) 10. All ores and minerals, including oil and gas, as reserved by The Great Western Railway Company, a Colorado corporation, in the deed to Lena Ackerson recorded September 8, 1948 in Book 1234 at Page 34, and any interests therein or rights thereunder. (Affects a strip of land 100 feet wide, being 50 feet wide on each side of the center line of The Denver, Laramie and Northwestern Railway Company, as originally located, over, across and through the SE1/4, said center line being more fully described as follows: Beginning at a point on the South line of said SE1/4, 1374 feet, more or less, West from the Southeast corner thereof, thence North 1 degree 7 minutes East, a distance of 2643 feet, more or less, to a point on the North line of said SE1/4, 1312 feet, more or less, West from the Northeast corner thereof. Page 10 2$ON$I 11131211 !WA a f0Y Ted:me 2 01 4 R 20.80 D 7$0.31 Weld Cowl/CO TRANSNATION TITLE INSURANCE COMPANY Camitment No.a 80539258 C-3 SCHEDULE B - Continued EXCEPTIONS (Affects Parcel 2) 11. Right of way, whether in fee or easement only, to construct, maintain, inspect, operate, replace, change, or remove a road approximately 30 feet wide, as granted to Amoco Production Company by Doris Ackerson, recorded January 11, 1973 in Book 683 as Reception No. 1605178, affecting the following described property: Commencing at a point on the South line of Sec. 12 approximately 100 feet East of the N-S C/L then running approximately 250 feet North, then Northeasterly approximately 250 feet then generally North to the North line of the SE1/4, Sec. 12. (Affects SE1/4 of Parcel 2) 12. Right of way, whether in fee or easement only, for the purposes of laying, constructing, maintaining, operating, repairing, replacing and removing pipe lines and appurtenances, granted to Colorado Interstate Corporation by Doris R. Ackerswon, Executrix of the Estate of Lena Ackerson by instrument recorded November 19, 1973 in Book 703 as Reception No. 1625016, in which the specific location of the easement is not defined. (Affects SE1/4 of Parcel 2) 13. Oil and gas lease between Doris Ackerson, as Executrix of the Estate of Lena Ackerson, deceased and T. S. Pace dated March 19, 1970, recorded April 22, 1970 in Book 624 as Reception No. 1545940, and any interests therein or rights thereunder. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by Amoco Prcduction Company, recorded October 24, 1974 in Book 725 as Reception No. 1647353. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by NS Resources, Inc., recorded December 12, 2000 as Reception No. 2812777. (Affects Parcel 2) 14. Right of way, whether in fee or easement only, to lay, construct, maintain, lower, inspect, repair, replace, relocate, change the size of, operate, and remove a pipe line and appurtenances, granted to Panhandle Eastern Pipe Line Company by The Lena Ackerson Estate by instrument recorded December 2, 1975 in Book 754 as Reception No. 1675875, in which the specific location of the easement is not defined. (Affects SE1/4 of Parcel 2) Page 11 2004111 11131t2014 fltA7A a 818 180. IN4M Said Said t l IMIM0 9 .�Y • TRANSMUTES? TITLE INsURA14CE COMPANY Commitment No., 80539258 C-3 SCHEDULE B - Continued EXCEPTIONS 15. Right of way, whether in fee or easement only, to lay, maintain, inspect, alter, repair, operate, protect, remove and relay a pipe line or pipe lines and appurtenances, granted to Continental Pipe Line Company by Myrna Slabaszewski and Freda Dreiling by instrument recorded February 22, 1980 in Book 896 as Reception No. 1817708, in which the specific location of the easement is not defined. (Affects NE1/4SW1/4 of Parcel 2) 16. Easement, Richt of Way and Surface Use Agreement, and the terms, agreements, provisions, conditions and obligations contained therein, between Myrna Kay Slabaszewski, grantor, and HS Resources, Inc., a Delaware corporation, grantee, recorded February 3, 2000 as Reception No. 2747864, in which the specific location is not defined. (Affects Parcel 2) 17. Lack of a right of access from the land to any open public road, street or highway. NOTE: This exception is necessary because it does not appear frcm the instruments in the office of the Clerk and Recorder of the County in which subject property is situated that any right of access exists to an open public roadway. roadway. (Affects Parcels 1 and 2) NOTE: This exception will be deleted upon completion of the Easements called for in the Requirements being granted. 18. Notes, Areas of Concern, and Matters of Survey, as shown on ALTA/ACSM Land Title Survey by Robert M. Sayre. dated November 14, 2001, Job Reference LFRGLPTN, File Reference Sistersl. 19. All Covenants, conditions, restrictions, leases and assignments thereof, mineral reservations and mineral leases and assignments thereof. (Affects Easements 1, 2 and 3) 20. All rights of way and easements, including, but not limited to those for roads, ditches, waterways, utilities, drainage, pipelines, railroads, and avigation. (Affects Easements 1, 2 and 3) 2104412 1113WZNI 10.QA a Sow Issbmob 4 o1 1 R 21.10 0 110.31 WM Cent,CO Page 12 7// I 2777409 06/28/2000 OZ:L. JA Saki Tsukamoto - 1 of 4 R 2000 D 50.00 Weld County CO - $50.00 WARRANTY DEED doc fee THIS DEED, Made this 26th day of June, 2000 between '1 Myrna Kay Slabaszewski formerly known as Myrna Kay Ackerson FILE of the County of Weld and State of Colorado. grantor, and Mineral Reserves, Inc., a Carl Colorado corporation a corporation organized and existing under and by virtue of the laws of the State of COLORADO. grantee: whose legal address is 1400 W. 64th Avenue, Denver, Colorado 80221 WITNES$Z$TH: That the grantor, for and in consideration of the meollINIMIlibt � the receipt and sufficiency of which is —hereby-acknowledged,Tian granted, bargained, sold and conveyed, and by these presents does grant, bargain, sell, convey and confirm, unto the grantee, its successors and assigns forever, all the real property together with improvements, if any, situate,lying and being in the County of Weld and State of Colorado, described as follows: SEE EXHIBIT 'A' ATTACHED HERETO AND MADE A PART HEREOF also known by street and number as vacant land, , Colorado TOGETHER with all and singular the hereditaments and appurtenances thereunto belonging, or in anywise appertaining and the reversion and reversions, remainder and remainders, rents, issues and profits thereof, and all the estate, right, title, interest, claim and demand whatsoever of the grantor, either in law or equity, of, in and to the above bargained premises, with the hereditaments and appurtenances. TO HAVE AND TO HOLD the said premises above bargained and described, with the appurtenances, unto the grantee, its successors and assigns forever_ And the grantor, for himself, his heirs and personal representatives, does covenant, grant, bargain, and agree to and with the grantee, its successors and assigns, that at the time of the ensealing and delivery of these presents, he is well seized of the premises above conveyed, has good, sure, perfect, absolute and indefeasible estate of inheritance, in law, in fee simple, and has good right, full power and lawful authority to grant. bargain, sell and convey the same in manner and form as aforesaid, and that the same are free and clear from all former and other grants, bargains, sales, liens, taxes. assessments, encumbrances and restrictions of whatever kind or nature soever, except general taxes for 2000 and subsequent years; except easements, restrictions, �., covenants, conditions, reservations and rights of way of record, if any; as more particularly set forth on Exhibit B' attached hereto_ The grantor shall and will WARRANT AND FOREVER DEFEND the above-bargained premises in the quiet and peaceable possession of the grantee, its successors and assigns, against all and every person or persons lawfully claiming the whole or any part thereof. The singular number shall include the plural, the plural the singular, and the use of any gender shall be applicable to all genders. IN WITNESS WHEREOF, The grantor has executed this dee on the date set forth' tyve./ift"NC1a y Sla zewsk?FHA jna Kay Ackerson STATE OF COLORADO ss. The foregoing instrument was acknowledged before County of Weld ) me this 26th day of June. 2000, by Myrna Kay Slabaszewski formerly known as Myrna Kay Ackerson • My commission expires 10-17-2002 Witness my hand and official s_ �` -CpPr.Pug1 IN►Yl ¢ o r�L MELINDA -�) s! south 4th Avenue PUBLIC No. 952. Rev- 3-85 % BAESSLEB J-:jighton, COLORADO 80601 j: lA� R048616R - 2111090612612800 02_:87P JA add Ts.Raw .. ots _ 2 d 4 HMO B50.80 wed connry co ESCROW NO. : 80486168 DATE June 15 2000 "EXHIBIT A" LEGAL DESCRIPTION PARCEL 1: The S1/2 of the East 60 acres of the SW1/4 of Section 12, and the W1/4 of the SW1/4 of the SE1/4 of Section 12, all in Township 1 North, Range 67 West of the 6th P.M., County of Weld, State of Colorado. PARCEL 2: The East 30 acres of the SW1/4 of the SE1/4 of Section 12, Township 1 North, Range 67 West of the 6th P.M., County of Weld, State of Colorado. Both Parcels I and II are granted subject to a dry up covenant related to the Brighton Ditch dated June 26, 2000. • No water. rights are granted or conveyed with Parcels I or II _ !777409 46/20/2000 0t07P JA Solo Tslk..,00lo ••� I of 4 R 20.00 0 50.00 Weld County CO •EXBIBI'rB;- • Right of way ,y, whether in fee or easement only, for undisclosed purposes, as granted to Elsie Thiebault by Lena Ackerson and Harold Ackerson, recorded February 7, 1947 in Book 1197 at Page 229, affecting the following described pioperty. The West 20 feet of the SE1/4 Terms, agreements, provisions, conditions, obligations and easements as contained in Agreement recordeti February 24, 1944 .in Book 1221 at Page 552. Laramie Seepage and Drainage Ditches, and any arid'all rights of way therefore, as evidenced by hap and Statement filed=March 22, 1910 as Reception No. 153271, in which the specific location- is not defined. All ores and minerals, including oil and gas as reserved by The Great Western Railway Company in the Deed recorded September 8. 1948, in Book 1234 at Page 34, and any interests therein or rights thereunder. (Affects part of SEl/4) Oil and gas lease between Doris Ackerson, as Executrix of the Estate of Lena Ackerson; deceased and T. S_ Pace dated 4-larch 19, 1970, recorded April 22, 197D in Book 624 as Reception No_ 1545940, and any interests therein or rights thereunder. NOTE: \ Amendment recorded December is, 1972 in Book 682 as Reception No. 1601741. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 30-42-106, by Amoco Production Company, recorded October 24, 1974 in Book 725 as Reception No. 1641353. Right ofway, whether in fee or easement only, to-construct, maintain,-inspect; opetate,\ie(ilace; change, or remove a road approximately 30 feet wide, ho gtahted to Amoco Production Company, a Delaware Corporation hi Doris Ackerson,-recorded January 11, 1973 in Book 683 as Reception No. 1605178, as more particularly described in said ihOttdtnent. (Affects SE1/4) - Right of way, whether in fee or easement only, for pipe lines and appurtenances, granted to Colorado Interstate Corporation by Doris R. Ackerson, Executrix of the Estate of Lena Ackerson by instrument recorded November 19, 1973 in Book 703 as Reception No. 1625016, in which the specific location of the easement is not 'defined_ (Affects 5E1/4) Right of way, whether in fee or easement only, for a pipe line and appurtenances, granted to Panhandle Eastern Pipe Line Company by The Lena Ackerson Estate by instrument recoided December 2, 1975 in Book 754 as Reception No. 1675875, in which the specific location of the easement is not defined. Right-of- way, whether in fee or easement only, for el&ctrjcal . facilities and appurtenances, granted to Union Rural BlectilC= 'Association, Inc. by Lena Ackerson Estate, Doris Ackerson - Executrix by instrument recorded June 15, 1977 in Book 800 as Reception No. 1721935, in which the specific location of the easement is not defined. Right of way, whether in fee or easement only, for pipe line or pipe lines and appurtenances, 'granted to Continental Pipe Line Company, a Delaware corporation by Myrna Slabaszewski by instrument recorded February 22, 1980 in Book 896 as Reception No. 1817709, in which the specific location of the easementi4 is not defined. (Affects SEI/45X1/4) Right '&t way, whether in fee or easement only, for a pipe line or pipe lines and appurtenances, granted to Continental Pipe Line Company, a Delaware corporation by Myrna Kay Slabaszewski by instrument recorded September 8, 1981 in Book 946 as Reception No. 1868407, in which the specific location of the easement is not defined. (Affects WI/2W1/2SW1/45E1/4) Right of way, whether in fee or easement only, for a pipe line and appurtenances, granted to kji Front Range Gathering Company, a Colorado corporation by Myrnn Slabahiebski and Freda Dreiling by instrument recorded August 13j-.1993 In Book 1397 as Reception No: 2346144, in which the specific location of the easement is not dnflned. (Affects 561/4) - - --" - - Matters of Survey as shown oh 1.and Survey Plat recotded-May 12, 1992 in Book 1336 ad Reception No; 2287783: 2m409 06/20!2000 02.-972 JA Saint Seto 4 0l 4 B 20.00 D 50.00 Weld Canary C067[111 BIT- D• continued - _ . Any question as to the size or location of the subject property and as to the encroachment of the subject property onto adjoining • property. (Affects SH1/4 and SB1/4) Road over the Southerly portion of the subject property as shown on Map of Weld County. - Right of way, whether in fee oreasement only, for pipelines and appurtenances, granted to RS Resources, Inc. by Myrna Ray Slabaszewski by instrument recorded February 3, 2000 as Reception No. 2747064, in which the specific location of the easement is not defined. - Notes/comments and matters of Survey as shown on ALTA/ACSM Land Title Survey, dated June 20, 2000 by Robert M. Sayre, Job No. MYRNA-Si- -/- . • ‘-‘..CL ate- r3 x ti ilt �c {fit Mineral Reserves,Inc. Bargain and Sale Deed, Special Warranty Deed and Personal Warranty Deed Phase 8 i �1904415 111301211fl �� M �� . t Odd IsulannS d 2 R 10A8 D SAO Wald Pont,CO 496 BARGAIN AND SALE DEED THIS DEED,Made this 274 day of November,2001,between FREDA LEE DREILIING,formerly known as Freda Lee Ackessan.MYRNA KAY SLABASZEWSKI,formerly known as Myrna Kay Aekerson.LARRY R. LEINWEBER as personal representative of the Estate of Mary E.Leinweber.also known as May Evelyn Leinweber,formerly known as Mary Evelyn Ackerson.Deceased,and D&S MINING.INC.,a Colorado corporation,of the County of Weld and State of Colorado.Grantors,and MINERAL RESERVES.INC,a Colorado corporation.whose legal address is 1400 West 64- Avenue.Denver.Colorado 80221.Attention:Duane Bollig,Division Land Manager,of the City and County of Denver. Stale of Colorado.Granter WI7NESSETH,that the Grantors,for ten dollars and other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,sell and convey to Grantee all right,title,claim and demand of Grantors in and to all the real propetty situate,lying and being in the County of Weld.State of Colorado,described as follows: The SE%of the NWY.of Section 12,Township I North,Range 67 West of the 66 P.M. (conveyance made to clarify that the intent of the Quit Claim Deed recorded February 5, 1992 in Book 1725 as Reception No.2277707 was to convey to D&S Mining,Inc.,the NE%of the NW'/.of said Section 12); and Vacated roads,streets,alleys or rights-of-way and any strips and gores of land within or adjoining the following described land in said Section 12: The NW%of the SE%and the East 70 acres of the NE%of the SW'/.-, The SEA oldie NWY.; The S'A of the East 60 acres of the SW%and the West Quarter of the SW''/.of the SE%;and The East 30 acres of the SW%of the SE%. EXCEPTING AND RESERVING TO GRANTORS. HOWEVER, as their interests therein may now appear of record,the SW%NW%ti the NE''ANW%and the E%2SEY.of said Section 12. Vacant Land—No Street Address With all appurtenances TO HAVE AND TO HOLD the premises above bargained and described with the appurtenances unto the Grantee,its successors and assigns forever. IN WITNESS WHEREOF,��_�theGrantors have executed this deed on the date set forth above L•.C:¢.!1 JJJJv }[� Freda Lec Damning, ArS6 "fJ/ f/k/a Freda Lee Ackerson 0k/a Myrna K.Ackerson it- /' &S MINING.INC,a Colorado corporation, Larry R.. Lcinweber as Personal ., I �4 la.0 Representative of the Estate of Mary By: Evelyn Leinweber, a/k/a Mary E. Freda Lee Dreiling.President Leinweber. fh/a Mary Evelyn Ackerson,Deceased (Small .-t - iaIIIEIIHuIIIull 29ouns Wane a-.ml u Molttab.aa _- 2 el 2 R 71.119 D gal WS Coati CO ^. STATE OF COLORA 1 1 ss- COUNfYOF 1 !J_., The foregoing instrument was acknowledged before me tsi / day of November.2001 by Freda Lee Dreiling, f/kh Freda lire Ackason.and Myrna Kay Slabaszewski,Okla Myrna�y Ackerson. lit Witness my hand and official seal. e • A/f•,Op ' . My commission expires: a Syr K 01), i,BL?GCp0,; STATE OF C DO ) I OF sect.° ss. COUNTY OF ) we amYacntiplx K ORN. The foregoing instrument was acknowledged before me this ,day of November,2001 by Larry R.Leinweber as Personal Representative of the Estate of Mary Evelyn Leinweber, a/k/a Mary E Leinweber, Okla Mary Evelyn Ackerson,Deceased. Witness my hand and official seal. - yyMp' My commission expires: G.f' ' - •TA/9}O i N, - Public G oFtdale STATE OF COLO ADO ) I ; 41- )ss. COUNTY OF ) 9)yL01MIttlaaDOR1000039 The foregoing instrument was acknowledged before me this:512day of November,2001 by Freda Lee Dreiling, Ok/a Freda Lee Ackerson,individually and as President of D&S Mining.Inc.,a Colorado corporation. Witness my hand and official seal. 'l1 My commission expires: /2)d - / Public otasimis gWon IOWAN nines nays' OP./TA JA Soli ham* • 1 al 411 20.91 O till Want Con*CO PERSONAL REPRESENTATIVE'S DEED 483 THIS DEED made by Larry R.Leinweber,as Personal Representative of the Estate of Mary E. Leinweber, a/k/a Mary Evelyn Leinweber,Deceased,Grantor,to Mineral Reserves,Inc.,a Colorado corporation,Grantee, whose address is 1400 W.64'Avenue,Denver,CO 80221 WHEREAS.Mary E Leinweber died testate on March 10, (999; WHEREAS Grantor was appointed as Personal Representative, in Weld County District Court, Probate Case 899-PR-I 02 on March 22.1999; THEREFORE. for the consideration of and other good and valuable consideration, Grantor sells and conveys to Grantee, Grantor's interest in the following real property in Weld County. Colorado: The SE%of the NW%of Section 12,Township 1 North,Range 67 West of the 6h PM., Vacant Land—No Street Address TOGETHER WITH all minerals and mineral rights,sand and gravel and sand and gravel rights,oil and gas and oil and gas rights,coal and coal rights owned by Grantors,all rights of Grantors in and to existing oil and gas wells and leases and other leases affecting the above-described premises("Premises");all rights-of-way and easements owned or used by Grantors in connection with the Premises; all structures, fixtures,houses, buildings, pumps, wells, irrigation improvements and other improvements on the Premises and all other property rights appurtenant thereto;and except as otherwise provided herein,all water rights appurtenant to or used or usable in connection with the Premises,including all ditches and ditch rights, wells and well rights; reservoirs and reservoir and storage rights;all non-tributary or tributary groundwater underlying the Premises whether adjudicated or not,whether permitted or not;together with any and all structures and improvements and related facilities used for die diversion of such rights, such as headgates or other diversion structures, pumps,pipelines and measuring devices;well permits,shares of stock in any ditch or reservoir company and leases and any other rights of use of any ditch and/or reservoir water rights for water used upon and appurtenant to the Premises;provided,however,there is expressly excepted from this Deed all of Grantors' right, title and interest in the water rights represented by 135 shares of the Brighton Ditch Company, evidenced by Certificate Nos. 166, 168 and 223(replacement for lost Certificate No. 167),such shares being the subject of a separate Water Rights Purchase Agreement between the Grantors and Grantee. Grantor warrants title to above-described premises against all persons claiming under Grantor, except as to those matters set forth in Exhibit A attached hereto and incorporated by reference. Executed on this 27th day of November,2001 . !Sao Larry 2 weber, Personal Representative of the Estate of Mary E.Leinweber,a/k/a Mary Evelyn Leinweber STATE OF COLORADO ) )ss. COUNTY OF ADAMS ) The foregoing instrument was acknowledged before me this 27°i day of November, 2001 by Larry R. Leinweber,Personal Representative of the Estate of Mary E.Leinweber,a/k/a Mary Evelyn Leinweber (Seal) / ' . iD-21-Loo`r ;2,0 y Nora TRANffimrroN Time 2NSURANCE COMPANY Commitment No.2 80539258 C-3 SCHEDULE B - Continued EXCEPTIONS EXCEPTIONS I THROU6N 6 DELETED 7. Oil and gas lease between Myrna Kay Slabaszewski, Mary Evelyn Leinweber and Freda Lee Dreiling and Frontier Land and Exploration, Inc. dated May 24, 1978, recorded May 26, 1978 in Book 833 as Reception No. 1754768, and any interests therein or rights thereunder. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by Cotton Petroleum Corporation, recorded March 8, 1979 in Book 862 as Reception No. 1783828 and March 29, 1979 in Book 864 as Reception No. 1785820. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by HS Resources, Inc., recorded December 12, 2000 as Reception No. 2812777. (Affects Parcel 1) 8. Right of way, whether in fee or easement only, for a pipe line or pipe lines and appurtenances, granted to Continental Pipe Line Company by Myrna Slabaszewski, Freda Dreiling and Mary E. Leinweber by instrument recorded February 22, 1980 in Book 896 as Reception No. 1817710, in which the specific location of the easement is not defined. (Affects Parcel 1) 9. Right of way, whether in fee or easement only, for undisclosed purposes, as granted to Elsie Thiebault by Lena Ackerson and Harold Ackerson, recorded February 7, 1947 in Book 1197 at Page 229, affecting the following described property: The West 20 feet of the SE1/4. (Affects Parcel 2) 10. All ores and minerals, including oil and gas, as reserved by The Great Western Railway Company, a Colorado corporation, in the deed to Lena Ackerson recorded September 8, 1948 in Book 1234 at Page 34, and any interests therein or rights thereunder. (Affects a strip of land 100 feet wide, being 50 feet wide on each side of the center line of The Denver, Laramie and Northwestern Railway Company, as originally located, over, across and through the SE1/4, said center line being more fully described as follows: Beginning at a point on the South line of said SE1/4, 1374 feet, more or less, West from the Southeast corner thereof, thence North 1 degree 7 minutes East, a distance of 2643 feet, more or less, to a point on the North line of said SEI/4, 1312 feet, more or less, West from the Northeast corner thereof. Page 10 21014$3 1/1382081 01.4TA MUM TmdomMo 2 M 4 R 20.00 0 OAR Weld CwMY CO • TRANSNATION TITLE INSURANCE COMPANY Commitment No.s 80539259 C-3 LE 8 - Continued EXCEPTIONS (Affects Parcel 2) 11. Right of way, whether in fee or easement only, to construct, maintain, inspect, operate, replace, change, or remove a road approximately 30 feet wide, as granted to Amoco Production Company by Doris Ackerson, recorded January 11, 1973 in Book 683 as Reception No. 1605178, affecting the following described property: Commencing at a point on the South line of Sec. 12 approximately 100 feet East-of the N-S C/L then running approximately 250 feet North, then Northeasterly approximately 250 feet then generally North to the North line of the SE1/4, Sec. 12. (Affects SE1/4 of Parcel 2) 12. Right of way, whether in fee or easement only, for the purposes of laying, constructing, maintaining, operating, repairing, replacing and removing pipe lines and appurtenances, granted to Colorado Interstate Corporation by Doris R. Ackerswon, Executrix of the Estate of Lena Ackerson by instrument recorded November 19, 1973 in Book 703 as Reception No. 1625016, in which the specific location of the easement is not defined. (Affects SE1/4 of Parcel 2) 13. Oil and gas lease between Doris Ackerson, as Executrix of the Estate of Lena Ackerson, deceased and T. S. Pace dated March 19, 1970, recorded April 22, 1970 in Book 624 as Reception No. 1545940, and any interests therein or rights thereunder. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by Amoco Production Company, recorded October 24, 1974 in Book 725 as Reception No. 1647353. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by HS Resources, Inc., recorded December 12, 2000 as Reception No. 2812777. (Affects Parcel 2) 14. Right of way, whether in fee or easement only, to lay, construct, maintain, lower, inspect, repair, replace, relocate, change the size of, operate, and remove a pipe line and appurtenances, granted to Panhandle Eastern Pipe Line Company by The Lena Ackerson Estate by instrument recorded December 2, 1975 in Book 754 as Reception No. 1675875, in which the specific location of the easement is not defined. (Affects SE1/4 of Parcel 2) Page 11 IIININIMMIN FP 11110 O 2Md403 1113/12001 0..Q11 M Sell Takineb 3 et 4 R 21.M DOJO Weld Cant CO TRANSNATION T21T,H YNSUR3NCY COMPANY Commitment No.t 80533258 C-3 SCHEDULE 8 - Continued EXCEPTIONS 15. Right of way, whether in fee or easement only, to lay, maintain, inspect, alter, repair, operate, protect, remove and relay a pipe line or pipe lines and appurtenances, granted to Continental Pipe Line Company by Myrna Slabaszewski and Freda Dreiling by instrument recorded February 22, 1980 in Book 896 as Reception No. 1817708, in which the specific location of the easement is not defined. (Affects NE1/4SW1/4 of Parcel 2) 16. Easement, Right of Way and Surface Use Agreement, and the terms, agreements, provisions, conditions and obligations contained therein, between Myrna Kay Slabaszewski, grantor, and HS Resources, Inc., a Delaware corporation, grantee, recorded February 3, 2CO0 as Reception No. 2747864, in which the specific location is not defined. (Affects Parcel 2) 17. Lack of a right of access from the land to any open public road, street or highway. NOTE: This exception is necessary because it does not appear from the instruments in the office of the Clerk and Recorder of the County in which subject property is situated that any right of access exists to an open public roadway. (Affects Parcels 1 and 2) NOTE: This exception will be deleted upon completion of the Easements called for in the Requirements being granted. 18. Notes, Areas of Concern, and Matters of Survey, as shown on ALTA/ACSM Land Title Survey by Robert M. Sayre, dated November 14, 2001, Job Reference LFRGLPTN, File Reference Sistersl. 19. All Covenants, conditions, restrictions, leases and assignments thereof, mineral reservations and mineral leases and assignments thereof. (Affects Easements 1, 2 and 3) 20. All rights of way and easements, including, but not limited to those for roads, ditches, waterways, utilities, drainage, pipelines, railroads, and avigation. (Affects Easements 11, 2 and 33) �IYn ill Iii ;11111111111111111 2904193 t 012001 00AR A Add Tadaaor 4 N 1 R t0.00 0 0.00 Yle10 Lung co Page 12 - IIMININI®1�IV I� II . JUNE 1117112001 01:07A JA Sidi Taablate 1 a1 0R2161 D100.31 Weld pplyW 492 SPECIAL WARRANTY DEED THIS DEED,Made this 27'day of November,2001,between FREDA LEE DREW ING,formerly known as Freda Lee Ackerson.and MYRNA KAY SLABASZEWSKI,formerly known as Myrna Kay Ackerson,of the County of Weld and State of Colorado,Grantors,and MINERAL RESERVES, INC., a Colorado corporation, whose legal address is 1400 West 64'Avenue,Denver,Colorado 80221,Attention:Duane Bollig,Division Land Manager,of the Gty and County of Denver,State of Colorado,Grantee: WmINESSETH,that the Grantors,for and in consideration of the sum of - v.. the receipt and suffa.icia.y of which is hereby acknowledged,have granted,bargained,soldand conveyed,and by these presents do grant, bargain,sell,convey,and confirm,unto the Grantee,its successors and assigns forever,all the real property situate,lying and being in the County of Weld.State of Colorado.described as follows: Parcel l: The SEY.of the NW'/.of Section 12,Township I North,Range 67 West of the 6°P.M.;and Parcel 2:The NW''/.of the SE%and the East 30 acres of the NEV.of the SWV.of Section 12,Township 1 North,Range 67 West of the 6'P.M., Vacant Land—No Street Address TOGETHER WITH all minerals and mineral rights,sand and gravel and sand and gravel rights,oil and gas and oil and gas rights,coal and coal rights owned by Grantors,all rights of Grantors in and to existing oil and gas wells and leases and other leases affecting the above-described premises(-Premises");all rights-of-way and casements owned or used by Grantors in connection with the Premises; all structures, fixtures houses, buildings, pumps, wells, irrigation improvements and other improvements on the Premises and all other property rights appurtenant thereto;and except as otherwise provided herein,all water rights appurtenant to or used or usable in connection with the Premises,including all ditches and ditch rights,wells and well rights;reservoirs and reservoir and storage rights;all non-tributary or tributary groundwater underlying the Premises whether adjudicated or not,whether permitted or not; together with any and all structures and improvements and related facilities used for the diversion of such rights, such as headgatcs or other diversion structures, pumps, pipelines and measuring devices; well permits, shares of stock in any ditch or reservoir ,� company and leases and any other rights of we of any ditch and/or reservoir water rights for water used upon and appurtenant to the Premises;provided,however,there is expressly excepted from this Deed all of Grantors right,tide and interest in the water rights represented by 1.75 shares of the Brighton Ditch Company,evidenced by Certificate Nos. 166. 168 and 223(replacement for lost Certificate No.167).such shares being the subject of a separate Water Rights Purchase Agreement between the Grantors and Grantee. TO HAVE AND TO HOLD the premises above bargained and described with the appurtenances unto the Grantee,its successors and assigns forever. The Grantors,for themselves,their heirs and personal representatives or successors,do covenant and agree that they shall and will WARRANT AND FOREVER DEFEND the above-bargained premises in the quiet and peaceable possession of the Grantee its successors and assigns,against all and every person or persons claiming the whole or any pan thereof,by,through or under the Grantors,except for those matters set forth on Exhibit A attached hereto and incorporated by reference. IN WITNESS WHEREOF,the Grantors have executed this deed on the date set f above • -,te Let. l4 Y�/ 11 .trL Freda Lee Dwelling, lY labasu�• Rk/a Freda Lee Ackerson f/k/a Myrna Kay Ackerson STATE OF COLORADO ) ^1J M� )as. COUNTY OF(1/12wt y. ) The foregoing instrument was acknowledged before me this;11 day of November,2001 by Freda Let Drciling, f/k/a Freda Lee Ackerson,and Myrna Kay Slabaszewski,flk/a Myrna Kay Ackerson. Witness my hand and official seal. My mommiuiah expires: ID- "7- --Ise M DOQ �, i . fffOptA • J. /q}O ; �1`el,`` e, t rrCalsoi abilestoma001 TRANSNATION TITLE INSURANCE COMPANY Commitment No.: 8053925H C-3 SCHEDULE B - Continued EXCEPTIONS EXCEPTIONS I THROUGH 6 DELETED 7. Oil and gas lease between Myrna Kay Slabaszewski, Mary Evelyn Leinweber and Freda Lee Dreiling and Frontier Land and Exploration. Inc. dated May 24, 1978, recorded May 26, 1978 in Book 833 as Reception No. 1754768, and any interests therein or rights thereunder. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by Cotton Petroleum Corporation, recorded March 8, 1979 in Book 862 as Reception No. 1783828 and March 29, 1979 in Book 864 as Reception No. 1785820. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by HS Resources, Inc., recorded December 12, 2000 as Reception No. 2812777. (Affects Parcel 1) 8. Right of way, whether in fee or easement only, for a pipe line or pipe lines and appurtenances, granted to Continental Pipe Line Company by Myrna Slabaszewski, Freda Dreiling and Mary E. Leinweber by instrument recorded February 22, 1980 in Book 896 as Reception No. 1817710, in which the specific location of the easement is not defined. (Affects Parcel 1) 9. Right of way, whether in fee or easement only, for undisclosed purposes, as granted to Elsie Thiebault by Lena Ackerson and Harold Ackerson, recorded February 7, 1947 in Book 1197 at Page 229, affecting the following described property: The West 20 feet of the SE1/4. (Affects Parcel 2) 10- All ores and minerals, including oil and gas, as reserved by The Great Western Railway Company, a Colorado corporation, in the deed to Lena Ackerson recorded September 8. 1948 in Book 1234 at Page 34, and any interests therein or rights thereunder. (Affects a strip of land 100 feet wide, being 50 feet wide on each side of the center line of The Denver, Laramie and Northwestern Railway Company, as originally located, over, across and through the SE1/4, said center line being more fully described as follows: Beginning at a point on the South line of said SE1/4, 1374 feet. more or less, West from the Southeast corner thereof, thence North 1 degree 7 minutes East, a distance of 2643 feet, more or less, to a point on the North line of said SE1/4, 1312 feet, more or less, West from the Northeast corner thereof. Page 10 IN1� �� NN�IIII�IM� 2N44/2 1113012001 *4TH JA IS T9domon 2 d 4 R 20.00 DOOM Weld Cowl t0 rRANSlA?ION TITLE INSURANCE COMPANY Commitment No.: 80539258 C-3 SCHEDULE B - Continued EXCEPTIONS (Affects Parcel 2) 11. Right of way, whether in fee or easement only, to construct, maintain, inspect, operate, replace, change, or remove a road approximately 30 feet wide, as granted to Amoco Production Company by Doris Ackerson, recorded January 11, 1973 in Book 683 as Reception No- 1605178, affecting the following described property: Commencing at a point on the South line of Sec. 12 approximately 100 feet East of the N-S C/L then running approximately 250 feet North, then Northeasterly approximately 250 feet then generally North to the North line of the SE1/4, Sec. 12. (Affects SE1/4 of Parcel 2) 12. Right of way, whether in fee or easement only, for the purposes of laying, constructing, maintaining, operating, repairing, replacing and removing pipe lines and appurtenances, granted to Colorado Interstate Corporation by Doris R. Ackerswon, Executrix of the Estate of Lena Ackerson by instrument recorded November 19, 1973 in Book 703 as Reception No. 1625016, in which the specific location of the easement is not defined. (Affects SE1/4 of Parcel 2) 13. Oil and gas lease between Doris Ackerson, as Executrix of the Estate of Lena Ackerson, deceased and T. S. Pace dated March 19, 1970, recorded April 22, 1970 in Book 624 as Reception No. 1545940, and any interests therein or rights thereunder. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by Amoco Production Company, recorded October 24, 1974 in Book 725 as Reception No. 1647353. Note: Extension of the above lease as claimed by Affidavit of Production, pursuant to CRS 38-42-106, by HS Resources, Inc. , recorded December 12, 2000 as Reception No. 2812777. (Affects Parcel 2) 14. Right of way, whether in fee or easement only, to lay, construct, maintain, lower, inspect, repair, replace, relocate, change the size of, operate, and remove a pipe line and appurtenances, granted to Panhandle Eastern Pipe Line Company by The Lena Ackerson Estate by instrument recorded December 2, 1975 in Book 754 as Reception No. 1675875, in which the specific location of the easement is not defined. (Affects SE1/4 of Parcel 2) Page 11 IN 01N ' IM ftII2044492 lI ll 09:47A Al Sill Tidos* 3 N 4 R 1140 0 180.31 World Camp CO TRANSNATION TITLE INSURANCE COMPANY Commitment No.: 8053925B C-3 SCHEDULE B - Continued EXCEPTIONS 15. Right of way, whether in fee or easement only, to lay, maintain, inspect, alter, repair, operate, protect, remove and relay a pipe line or pipe lines and appurtenances, granted to Continental Pipe Line Company by Myrna Slabaszewski and Freda Dreiling by instrument recorded February 22, 1980 in Book 896 as Reception No. 1817708, in which the specific location of the easement is not defined. - (Affects NE1/4SW1/4 of Parcel 2) 16. Easement, Richt of Way and Surface Use Agreement, and the terms, agreements, provisions, conditions and obligations contained therein, between Myrna Kay Slabaszewski, grantor, and HS Resources, Inc., a Delaware corporation, grantee, recorded February 3, 2000 as Reception No. 2747864, in which the specific location is not defined. (Affects Parcel 2) 17. Lack of a right of access from the land to any open public road, street or highway. NOTE: This exception is necessary because it does not appear frcm the instruments in the office of the Clerk and Recorder of the County in which subject property is situated that any right of access exists to an open public roadway. (Affects Parcels 1 and 2) NOTE: This exception will be deleted upon completion of the Easements called for in the Requirements being granted. 18. Notes, Areas of Concern, and Matters of Survey, as shown on ALTA/ACSM Land Title Survey by Robert M. Sayre, dated November 14, 2001, Job Reference LFRGLPTN, File Reference Sistersl. 19_ All Covenants, conditions, restrictions, leases and assignments thereof, mineral reservations and mineral leases and assignments thereof. (Affects Easements 1, 2 and 3) 20. All rights of way and easements, including, but not limited to those for roads, ditches, waterways, utilities, drainage, pipelines, railroads, and avigation. (Affects Easements 1, 2 and 3) 290th2 1113012001 09.47A a Sold Tadao* 4 4 4 R 20-00 0 180.31 Wdd Gusty CO Page 12 Affidavit—Phases 2,3, 7,8 As per the enclosed Warranty Deeds dated June 20,2001;July 12,2004;November 27, 2001;and June 26,2000 Mineral Reserves,Inc.,a subsidiary of the Lafarge Corporation,is owner of portions of Sections 24 and 12,Range 67 West and portions of Section 18,Range 66 West,Township I North,6th Principal Meridian,Weld County,Colorado" Mineral Reserves,Inc. grants Lafarge West,Inc.the legal right to enter for the purposes of mining and reclamation and the authority to apply for all zoning and permits required for such operations. Minerals Reserves,Inc. also grants Lafarge West,Inc. the legal right to impact and/or remove man-made structures,such as lateral ditches,fences,wells,and buildings, for the purposes of said mineral extraction. Signed: Date: 11 I g /6 Ur Name: l A 1,1 s M y `jl-4 I_ The forgoing instrument was acknowledged before me this n-r') day of 1(�oven ber , _=NO Notary Public tkice, tc ci yJ. My Commission Expires: jalA/ 7 Ft Lupton Pa WIG 112Pernu! Page 71 481 Hello