Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.8  

 
 

AGREEMENT    
    

        This Agreement is made as of this 30th day of May, 2000 by and between Sun State Rock & Materials Corp., an Arizona corporation, hereinafter referred to as
"Sun State," and Ready Mix, Inc., a Nevada corporation, hereinafter referred to as "Ready Mix." 

WITNESSETH:  

        WHEREAS, Sun State leases certain real property located in the general vicinity of 115th Avenue and Beardsley Road, Maricopa County, Arizona, and depicted and
legally described on Exhibits A and B attached hereto and incorporated herein by this reference (the property described on Exhibit A is hereinafter referred to as the "Sun State Property"),
pursuant to that certain Sand and Gravel Pit Lease, dated April 16, 1988 (hereinafter referred to as the "Lease"), between Sun State, as lessee, and Hope Enterprises, LLC and W.A.W.; LLC as
lessors (hereinafter referred to as "Owner"); and 

        WHEREAS,
pursuant to the terms of the Lease, Sun State has the right to extract sand and rock (hereinafter referred to collectively as "materials") from the Sun State Property and to
permit the use of the Sun State Property by a third party in connection with the processing of such materials; and 

        WHEREAS,
Ready Mix desires to utilize that portion of the Sun State Property depicted and legally described on Exhibit C attached hereto and incorporated herein by this reference
(the "Ready Mix Site") and to purchase sand and rock from Sun State, all for the purpose of producing and selling Portland Cement Concrete and redi-mix products. 

        NOW,
THEREFORE, in consideration of the mutual promises herein contained, and of other good and valuable consideration. Sun State and Ready Mix do hereby covenant and agree as follows: 

        1.    Term:    Unless sooner terminated as otherwise provided herein, the term of this Agreement shall be for a period
of ten (10) years, commencing on June 1, 2000 and ending on May 31, 2010 (the "Initial Term"). Upon the expiration of the Initial Term, the parties may, if both parties desire,
extend the term of this Agreement for such period of time and upon such terms and conditions as are mutually acceptable to the parties. 

        2.    Use by Ready Mix:    

        A.    During
the term of this Agreement, Ready Mix shall have the exclusive right to use the Ready Mix Site for the purpose of operating a business for the production and sale
of Portland Cement Concrete and the sale of redi-mix products and performing those acts which are ancillary to the operation of such a business, including, without limitation, the
processing, manufacture, storage, and sale of such products and the disposal of any waste materials generated as a result thereof. Ready Mix mav locate such items of equipment and machinery and any
structures and fixtures on the Ready Mix Site as it deems necessary for the operation of its business, and any such items, fixtures and structures shall remain the property of Ready Mix, subject to
removal at Ready Mix's will during the term of this Agreement and for a period of one hundred twenty (120) days thereafter. Ready Mix shall not use the Ready Mix Site for any purpose not
related or ancillary to the operation of its business, without the prior consent of Sun State. 

        B.    In
addition to the right to use the Ready Mix Site as set forth above, Ready Mix shall have the right to use other portions of the Sun State Property for purposes related
to its business operations on the Ready Mix Site, as follows: 

            i.  Ready
Mix, its employees, agents, invitees and customers shall have the right to use a portion of the Sun State Property to be designated by mutual agreement of Sun
State and Ready Mix for access to and from the Ready Mix Site necessary for Ready Mix's operations. If Sun State proposes to change the location of Ready Mix's access to the site, Sun State shall
notify Ready Mix of the proposed change for Ready Mix's approval. Ready Mix shall not 

 

unreasonably
withhold approval of a proposed change in the location of Ready Mix's access as long as the proposed change in access does not significantly increase the length of travel or significantly
reduce the convenience to Ready Mix of the access route originally designated by the parties. Ready Mix also shall have the right to use a portion of the Sun State property to be designated by mutual
agreement of Sun State and Ready Mix for placement of utilities necessary for Ready Mix's operations. 

           ii.  Ready
Mix shall have the right to use a portion of the pit area located on the Sun State Property to dispose of any waste concrete and other materials reasonably
resulting from the operation of its business on the Ready Mix Site; provided that Sun State shall from time to time designate and direct the method of disposal and the particular area or areas to be
used for such purpose; and provided further that Ready Mix shall conduct any such disposal in accordance with all applicable laws and shall be responsible, at its sole cost, for obtaining any required
licenses and permits. 

        3.    Washed Sand and Rock; Water:    

        A.    Sun
State shall use its best efforts to supply to Ready Mix washed sand and rock, in quantities and quality required by Ready Mix for its production of Portland Cement
Concrete and sale of redi-mix products at the Ready Mix Site. The sand supplied by Sun State shall meet the ASTM C-33 specification for fine aggregates, and Sun State
shall use all good faith efforts to maintain the average values of daily tests performed within the FM range of 2.70 and 2.95 and within the SE range of 80 and 90. SE tests will be performed in
accordance with ASTM D 2419-95 (utilizing sample prep procedure A). The pea gravel and rock supplied by Sun State shall meet the ASTM C-33 specification for #5 and #7
course aggregates. 

        B.    Sun
State shall use its best efforts to maintain a reasonable stockpile of washed sand and rock to supply Ready Mix's immediate requirements for production of Portland
Cement Concrete and sale of redi-mix products, and Ready Mix shall keep Sun State generally informed of such requirements. 

        C.    Nothing
contained in this Agreement shall be interpreted to prevent, restrict or otherwise limit Sun State from making unlimited sales of the sand, pea gravel and rock
aggregate it produces to third parties or to allow the use of the Sun State Property, other than the Ready Mix Site, for any purpose. 

        4.    Imported Sand and Rock:    If Sun State is unable, notwithstanding its best efforts, to supply Ready Mix with
all its requirements for washed sand, pea gravel and rock meeting the specifications set forth in this Agreement in connection with Ready Mix's operation on the Ready Mix Site, Ready Mix may, at its
option, import additional sand, pea gravel and rock from other locations for use in the production and sale of Portland Cement Concrete and the sale of redi-mix products in accordance with this
Section. Ready Mix shall notify Sun State, in writing, at least three (3) business days before importing any sand, pea gravel, or rock for use at the Ready Mix Site. The written notice shall
describe the type and amount of material that Ready Mix intends to import. If Sun State cannot supply the material specified in the notice within three (3) business days after receipt of the
written notice, Ready Mix may obtain the materials described in the notice for use at the Ready Mix Site. Sun State shall pay Ready Mix an amount equal to fifty percent (50%) of the amount by which
Ready Mix's cost for the material imported in accordance with this Section exceeded the amount that Ready Mix would have paid Sun State for the same type of material under this Agreement. Ready Mix
shall submit an invoice and documentation showing the type, amount and cost of the imported material and the amount due under this Section to Sun State. Sun State shall pay Ready Mix the amount due
under this Section within thirty (30) days after receipt of an invoice under this Section. Except as otherwise provided in this Section, Ready Mix shall obtain all sand, pea gravel and rock
used for production of Portland Cement Concrete and redi-mix products on the Ready Mix Site from Sun State. 

2

 

        5.    Payment Terms:    

        A.    Ready
Mix agrees to pay Sun State (i) an initial price of $5.60 per ton of concrete sand, (ii) an initial price of $5.55 per ton of pea gravel (ASTM
3/8"), and (iii) an initial price of $5.00 per ton of concrete rock (1" and 1/2" minus), payable in accordance with Subsection 5.C below. Said prices shall each be
adjusted each year in accordance with Subsection 5.B below. These prices include loading of the material into Ready Mix's bins by Sun State. 

        B.    Commencing
on the first anniversary of the date of this Agreement and on each anniversary thereafter, the prices for sand, pea gravel and rock listed in Subsection 5.A
hereof shall be adjusted for the next succeeding year based on the following formula: 

	 	 	        PPIE.
	 	 	IP × PPIB = Adjusted Price
	 	 	 	 	 	 	 
	Where:	 	IP	 	=	 	The initial price as listed in Subsection 5.A hereof.
	 	 	 	 	 	 	 
	 	 	PPIE	 	=	 	Producer Price Index—Table 6 Commodity Code 1321, construction sand, gravel and crushed stone, as published by the U.S. Department of Labor, Bureau of Labor Statistics, for May in the year just
ending;
	 	 	PPIB	 	=	 	Producer Price Index—Table 6 Commodity Code 1321, construction sand, gravel and crushed stone, as published by The U.S. Department of Labor, Bureau of Labor Statistics, for May, 2000.

provided, however, that in the event that the quotient of said ratio (PPIE/PPIB) in any given year is less than 1.00, then in such event, 1.00 shall be substituted for such
ratio and utilized in the formula for calculating the adjusted prices to be paid by Ready Mix (i.e., the Adjusted Price shall never be less than the initial price set forth in Subsection 5.A
hereof). 

        The
Producer Price Index Table 6 Commodity Code is currently indexed to the base year 1982. In the event of a change in base years during this Agreement, the Producer Price Index
numbers used in the calculation shall also be adjusted for relativity with one another with respect to the new base year, if necessary, to proportionately adjust the price for the relative percentage
change in the index. In the event the Producer Price Index shall cease to be published, then Sun State and Ready Mix shall agree upon another index to be substituted therefor, and if they are unable
to agree upon a substitute index within a reasonable time, such matter shall be determined by arbitration in accordance with this Agreement. 

        C.    Sun
State shall be entitled to payment for sand, pea gravel and rock supplied to Ready Mix pursuant to the terms of this Agreement at such time as the materials are used
by Ready Mix in the production of concrete including drum cleanout or, if not used to produce concrete, at such time as Ready Mix removes the materials from the Sun State Property. Payments from Ready
Mix to Sun State shall be made monthly, on or before the fifteenth (15th) day of each month following the month in which the materials were used in production or removed from the Ready
Mix Site. 

        D.    i.    Ready
Mix agrees that, commencing in the month of January, 2001 and for each month thereafter as long as this Agreement remains in effect, the monthly
payment Sun State receives shall not be less than an amount (the "Monthly Minimum Payment") calculated on the basis of minimum monthly sales volumes of sand and rock and the prices of sand and rock
during the month pursuant to Subsection 5.B. For the months of January through May 2001. the Monthly Minimum Payment shall be $65,875, which is based on the monthly minimum volumes of
6,875 tons of rock and 5,625 tons of sand. Beginning in June 2001, the Monthly Minimum Payment shall be calculated based on the minimum monthly sales volume of 6,750 tons of sand and 8,250 tons
of rock multiplied by the respective prices calculated pursuant to Subsection 5.B. Beginning in 

3

 

June 2002
and thereafter as long as this Agreement remains in effect, the Monthly Minimum Payment shall be adjusted each year on the anniversary date of this Agreement based on the Adjusted
Price for sand and rock determined in accordance with Section 5.B hereof, but never below the Monthly Minimum Payment for June 2001. 

           ii.  The
Monthly Minimum Payment shall be applied to adjust the monthly payment pursuant to Subsection 5.C as follows. If the monthly payment due under
Subsection 5.C in a given month does not equal or exceed the Monthly Minimum Payment for that month, Ready Mix shall increase the monthly payment for that month to equal the Monthly Minimum
Payment. If, in any month, the monthly payment due under Subsection 5.C is less than the Monthly Minimum Payment because inclement weather prevented Ready Mix from using sufficient materials to
cover the Monthly Minimum Payment, Ready Mix shall be entitled to a credit equal to the difference between the Monthly Minimum Payment and the monthly payment that would have been due under
Subsection 5.C. Ready Mix shall provide written notice to Sun State of the amount of the credit claimed along with the payment submitted for that month. Ready Mix may use the credit to reduce
the amount of any future monthly payment that exceeds the Monthly Minimum Payment for that month, provided that the payment for any month shall not be less than the Monthly Minimum Payment. Any unused
credit shall expire if not used within twelve months. All credits shall expire upon any termination of this Agreement, except that if Sun State terminates this Agreement pursuant to Section 16,
Sun State shall compensate Ready Mix for the amount of any unused and unexpired credits. 

          iii.  During
any month in which Sun State is unable to furnish, within a reasonable time after receiving an order from Ready Mix, sufficient materials to meet Ready Mix's
order, Ready Mix shall not be liable for the Monthly Minimum Payment, and the monthly payment due for that month shall be the amount due under Subsection 5.C for the materials supplied by Sun
State and used by Ready Mix. 

        6.    Measurement:    Measurement of materials used by Ready Mix for payment purposes pursuant to Section 5
hereof shall be made by Ready Mix. For materials used in the production of Portland Cement Concrete, measurements shall be based upon the quantities of sand, pea gravel and rock as shown on Ready
Mix's computer printouts for the plant located on the Ready Mix Site; provided, however, that if Ready Mix utilizes imported sand, pea gravel or rock pursuant to Sections 4 or 8 hereof, then
the sand, pea gravel and rock quantities to be paid for by Ready Mix shall be the total sand, pea gravel and rock quantities shown on such printouts reduced by the total quantity of imported sand, pea
gravel and rock documented by certified truck-scaled tickets and hatched by Ready Mix during the applicable monthly
period. Sun State may implement reasonable monitoring procedures to insure proper measurement of the imported sand, pea gravel and rock, provided that any such procedures shall be at no cost or
expense to Ready Mix. Upon request, Ready Mix shall supply Sun State with quantity usages each day for the previous day. For sand, pea gravel and rock not used in the production of concrete on the
Ready Mix Site, measurements shall be based on the quantities of rock, pea gravel and sand removed from the Sun State Property as shown on Sun State's truck scales. 

        Upon
written request, Sun State shall have the right to audit Ready Mix's books and records for the purpose of quantity verification and shall otherwise be allowed to verify the
quantities of materials being utilized pursuant to this Agreement, including, but not limited to, checking the calibration of Ready Mix's computer equipment to verify its accuracy. Ready Mix shall
make its books and records available to Sun State within ten (10) days after written request is made. 

        7.    Taxes:    

        A.    Each
party shall pay personal property taxes assessed on any personal property owned or leased by that party, regardless of who is using the equipment. Each party shall
pay real property 

4

 

taxes
assessed on property owned by that party, regardless of who is using or occupying the real property. 

        B.    Ready
Mix agrees that it is responsible to pay Sun State any and all transaction privilege or mining taxes legally owed as a result of sales of material from Sun State to
Ready Mix. Sun State is responsible to remit those taxes per current law. Ready Mix agrees to be responsible for collecting and remitting all privilege or mining taxes legally incurred as a result of
the sale of material purchased by Ready Mix from Sun State and sold by Ready Mix to another party. 

        C.    Any
and all other privilege tax (or any other tax), fees, permits, licenses, assessments, or similar items incurred and legally due with respect to any real or personal
property will be the responsibility of the party owning the personal or real property on which the obligation is imposed by law, in accordance with Subsection A of this Section. 

        D.    Any
new taxes or fees enacted subsequent to this agreement with respect to any real or personal property shall be the responsibility of the party who owns or leases the
personal or real property, consistent with Subsection A of this Section. 

        E.    Any
new taxes resulting from the sale of materials will be the responsibility of the party who would be responsible for the tax pursuant to Subsection B of this Section. 

        8.    Force Majeure:    Both parties shall be excused from their performance hereunder so long as, and to the extent
that, performance is prevented by reason of fire, storm, flood, war, rebellion, insurrection, riot, strike, labor disturbance, earthquake, failure of transportation or delivery facilities, acts,
orders or regulations imposed by Federal, State, or other authorized governmental authority, or other causes beyond the reasonable control of either party, hereunder, whether similar or dissimilar to
the foregoing ("Force Majeure Event"), but specifically excluding therefrom any mechanical or other failure of production or processing machinery or equipment; provided, however, that in no event
shall any Force Majeure Event operate to terminate this Agreement except as otherwise provided herein. 

        In
the event that Sun State is prevented from supplying Ready Mix with sand and/or rock as a result of a Force Majeure Event, then Ready Mix may import sand and/or rock for so long as
such Force Majeure Event shall continue in effect and until such time as Sun State is able to resume supplying sand and/or rock, and Ready Mix shall not be liable for the Monthly Minimum Payment
during any such period. 

        9.    Interpretation:    It is the mutual intention of the parties hereto that this Agreement shall be governed by the
laws of the State of Arizona as to the execution, authentication, construction, the legal obligations arising hereunder, and as to what is to be deemed a performance, satisfaction or discharge
thereof. 

        10.    Utilities Generally:    Ready Mix shall be responsible to obtain all utilities necessary for its operations,
including water, power, communications, and sewage disposal. Access for any utility lines across the Sun State Property shall be determined in accordance with Section 2.B.i. Sun State shall
have no obligation to furnish any utilities for Ready Mix's operations. Upon Ready Mix's request, and in Sun State's sole discretion, Sun State shall agree to provide water to Ready Mix. Ready Mix
shall reimburse Sun State for the cost of any water furnished by Sun State and used by Ready Mix for the operation of its plant within, ten (10) days after receipt of statements from Sun State
evidencing the cost thereof. 

        11.    Indemnification:    Ready Mix agrees to indemnify, protect and save Sun State and Owner harmless from any and
all actions, claims, costs, losses, damages (including, without limitation. compensatory and punitive damages), fines, penalties, expenses, attorneys fees, litigation expenses or liabilities from any
accident, injury or damage to person or property or violation of law occurring in, on or about the Ready Mix Site during the term of this Agreement or in connection with the Ready Mix's 

5

 

operations
on the Ready Mix Site, including, without limitation, any claims relating to Ready Mix's emissions, disposal, discharge, deposit, dumping, leaking, spilling, placing, or escape of any toxic
or hazardous substance or waste, pollutant or contaminant (as those terms may be defined from time to time under federal, state or local laws) on, in, under or from the Sun State Property or
compliance with any applicable environmental law; provided, however, that this provision shall not be construed so as to have the effect of indemnifying or holding harmless Sun State or Owner for,
from and against any actions, claims, costs, losses, damages (including without limitation compensatory and punitive damages), expenses, attorneys' fees or liabilities which shall arise solely out of
the acts or omissions of Sun State and/or Owner. 

        12.    Insurance:    Ready Mix shall maintain in effect insurance policies for the Ready Mix Site and Ready Mix's
operation on the Ready Mix Site or other portions of the Sun State Property against such risks as are regularly insured by reasonable prudent business persons operating concrete batching plants in
Arizona. Such insurance shall include, without limitation, (i) a policy or policies insuring against liability resulting from injury or death occurring to persons in, on or about the Ready Mix
Site, or otherwise related to Ready Mix's business operations on the Ready Mix Site, and from damage to property, the liability coverage under such insurance to be not less than $2,000,000 for one
person injured, $2.000,000 for any one accident and $2,000,000 for property damage, and (ii) comprehensive automobile liability coverage for vehicles used in the operation of the Ready Mix
Site, the liability on such insurance to be not less than $2,000,000 for any one person insured, $5,000,000 for any one accident and $500,000 for property damage. Sun State shall be named as an
additional insured under such policies. Insurance coverage to satisfy such requirements may be obtained through Primary and Umbrella Excess Liability policies. At Sun State's request, certificates of
insurance shall be furnished to Sun State evidencing such insurance coverage. These Certificates shall contain a provision that coverage afforded under the policy or policies will not be cancelled
until at least thirty (30) days' prior notice has been given to Sun State. Insurance requirements hereunder are not a limitation of Ready Mix's liability and obligation to indemnify Sun State
and Owner, but are simply additional security to Sun State and Owner. 

        13.    Notices:    Any notice to be given to the parties pursuant to the terms of this Agreement shall be given by
U.S. Mail, certified mail, return receipt requested or by personal delivery, addressed as follows: if to Sun State at P. O. Box 1340, Sun City, Arizona, 85372, with a copy to Dalva L.
Moellenberg, Gallagher & Kennedy, P.A., 2575 East Camelback Road, Phoenix, Arizona 85016-9225, and if to Ready Mix at 3430 E. Flamingo Road, Suite 100, Las Vegas,
Nevada 89121. Notices shall be deemed given when deposited, if mailed by certified mail, otherwise when received. 

        14.    Independent Contractor Operation:    Each party shall perform this Agreement as an independent contractor, and
in no event shall either party be deemed to be or act as an agent or employee of the other. Ready Mix shall be solely and completely responsible for the operation and care of its plant and
the Ready Mix Site and Sun State shall be solely and completely responsible for its operations and the remainder of the Sun State Property. 

        15.    Termination of Agreement by Default:    If either party fails to perform or abide by any of the conditions or
covenants of this Agreement, the other party may terminate this Agreement (and in the event of a default by Ready Mix, Sun State may terminate Ready Mix's right to possession of the Ready Mix Site);
provided that the non-defaulting party has first given the defaulting party written notice of any such default and thirty (30) days thereafter to cure the same, and the defaulting
party has not perfected a cure in such 30-day period. The foregoing shall not limit any rights or remedies otherwise available at law or in equity to the non-defaulting party
and the right of Sun State to receive payment for any materials already purchased by Ready Mix. 

        16.    Termination by Sun State:    In the event that the character of the raw material being utilized by Sun State to
produce the washed sand and rocks changes, and such change results in the total of all 

6

 

costs
directly or indirectly related to the production of said washed sand and rock exceeding the prices being paid by Ready Mix for said materials, Sun State may, at its option, terminate this
Agreement without further liability whatsoever to Ready Mix. In the event of a termination of this Agreement pursuant to this Section 16, Ready Mix may, at its option, notify Sun State in
writing within thirty (30) days after receipt of notice of termination that it desires to enter into a ground lease to maintain its operations on the Ready Mix site at a monthly lease rate to
be negotiated by the parties in good faith. If Ready Mix does not elect to enter into a ground lease, or if the parties are unable to negotiate a lease, the parties shall mutually agree to a time
schedule during which Ready Mix shall be allowed to remain on the Ready Mix Site before having to vacate; provided however, that such time period shall not exceed six (6) months after the
notification by Sun State to Ready Mix of its intent to terminate the Agreement pursuant to this Section. 

        17.    Assignment:    Ready Mix shall not: (i) assign, transfer, pledge or hypothecate its rights under this
Agreement without Sun State's prior written consent, (ii) sublet or lend the Ready Mix Site or any part thereof to any unaffiliated party, or; (iii) permit the Ready Mix Site, or any
part thereof, to be used by anyone other than Ready Mix and Ready Mix's employees and agents performing activities authorized pursuant to the terms of this Agreement. 

        18.    Laws and Permits:    Ready Mix, at its sole cost and expense, shall comply with all laws, ordinances and
regulations, now or hereafter in effect, relating to the possession. operation, or maintenance of its plant and the Ready Mix Site, and shall obtain any licenses or permits necessary for the operation
of its plant. 

        19.    Right of Inspection.    Sun State shall have the right at all reasonable times to enter upon the Ready Mix
Site, and shall be given free access thereto for the purpose of inspection and verification of compliance with this Agreement. 

        20.    Merger:    This writing represents the entire Agreement between the parties. No other writings, verbal
understandings or agreements of any nature exist between the parties concerning the subject matter of this Agreement. 

        21.    Changes:    Any changes, modifications or addenda to this Agreement must be evidenced in a writing which is
signed by all parties hereto before such shall be considered binding. 

        22.    Arbitration:    All claims, disputes and other matters in question between the parties hereto arising out of,
or relating to, this Agreement or the breach thereof shall be decided by arbitration unless the parties mutually agree otherwise. In any such event, the party desiring arbitration shall give notice to
that effect to the other party, specifying in such notice the name and address of the person designated to act as an arbitrator on its behalf. Within fifteen (15) days after receipt of such
notice, the other party shall give written notice to the first party specifying the name and address of the person designated to act as arbitrator on its behalf. If the second party fails to notify
the first party of the appointment of its arbitrator within such 15-day period, then the appointment of a second arbitrator shall be made by the then presiding Judge of the Superior Court
of the State of Arizona for the County of Maricopa upon the request of the first party, and the second party shall not raise any question as to the Court's full power and jurisdiction to entertain the
application and make the appointment and the person so appointed shall be the second arbitrator. The arbitrators so chosen shall meet within ten (10) days after the second arbitrator is
appointed. If the two arbitrators shall not agree upon the decision to be made in such dispute, they shall, themselves, appoint a third arbitrator who shall be a competent and impartial person, and in
the event they are unable to agree upon such appointment within ten (10) days, the, third arbitrator shall be selected by the parties themselves if they can agree thereon within a further
period of fifteen (15) days. If the parties do not so agree, then either party, on behalf of both, may request the then presiding Judge of the Superior Court of the State of Arizona for the
County of Maricopa to appoint such third arbitrator, and the other party shall not raise any question as to the Court's full power and jurisdiction to entertain the application and 

7

 

make
the appointment and the person so appointed shall be the third arbitrator. The decision of the arbitrators so chosen shall be given within a period of thirty (30) days after appointment of
such third arbitrator. The decision in which any two of the arbitrators so appointed and acting hereunder concur shall in all cases be binding and conclusive upon the parties. Each party shall pay the
fees and expenses of the arbitrator appointed by such party, or in whose stead as above provided such arbitrator was appointed, and the fees and expenses of the third arbitrator, if any, shall be home
equally by both parties. Any such arbitration shall be conducted in accordance with the rules then in effect of the American Arbitration Association. 

        The
foregoing agreement to arbitrate shall be specifically enforceable under the laws of the State of Arizona. The award rendered by the arbitrators shall be final, and judgment may be
entered upon it in accordance with applicable laws in any court having jurisdiction thereof. Any demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter
in question has arisen, and in no event shall it be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by
the applicable statute of limitations. Unless otherwise agreed in writing, the parties shall carry on the work required hereunder during any arbitration proceedings. 

        23.    Warranty of Title:    Sun State represents and warrants that (i) it is presently the lessee of the Sun
State Property, and (ii) it has the authority to enter into this Agreement and perform its obligations hereunder and to grant to Ready Mix all rights granted hereby. Sun State further
represents and warrants that it will not do or suffer anything to be done in connection with the Lease which will interfere with or impair the rights of Ready Mix hereunder. 

        24.    Binding Effect:    This Agreement shall inure to the benefit of and be binding on the parties hereto, their
successors, assigns, heirs and personal representatives. 

        IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement in duplicate as of the date first hereinabove written. 

	 	 	SUN STATE ROCK & MATERIALS CORP.
	 	 	 	 	 
	 	 	 	 	 
	/s/ [Illegible]
	 	/s/  DELORIS C. WALKER      

	Attest	 	By:	 	Deloris Walker
	 	 	Its:	 	President
	 	 	 	 	 
	 	 	 	 	 
	 	 	READY MIX, INC.
	 	 	 	 	 
	 	 	 	 	 
	/s/ [Illegible]
	 	/s/  ROBERT DERUITER      

	Attest	 	By:	 	Robert DeRuiter
	 	 	Its:	 	General Manager

8

 
 

EXHIBIT A    
    

Parcel 1  

        Approximately 140 acres of real property located in Maricopa County, Arizona, more particularly described as: 

	PARCEL NO. 1:	 	The East half of the Southeast quarter of Section 24, Township 4 North, Range 1 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona.
	

PARCEL NO. 2:	
 	

The Southwest quarter of the Southeast quarter of Section 24, Township 4 North, Range I West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona.
	

PARCEL NO. 3:	
 	

The East half of the Northwest quarter of the Northeast quarter of Section 25, Township 4 North, range 1 West of the Gila and salt River Base and Meridian, Maricopa County, Arizona.

        The
above-described Parcel 1 is owned at the date of the above-referenced Agreement by W.A.W., LLC. 

Parcel 2  

        Approximately 51 acres of real property located in Maricopa County, Arizona, more particularly described as: 

That
part of Lots 3 and 4 of Section 19, Township 4 North, Range 1 east of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, described as follows: 

BEGINNING
at the Southwest corner of said Section 19, thence North 0 degrees 09 minutes 40 seconds West along the West line of said Section 19, a distance of 268.37 feet; thence North 0
degrees 34 minutes 46 seconds West a distance of 2373.07 feet to the West quarter corner of said Section 19; thence North 88 degrees 53 minutes 21 seconds East along the East-West
mid section line a distance of 851.79 feet; thence South 0 degrees 00 minutes 09 seconds West a distance of 2643.91 feet to the South line of said Section 19; thence South 89 degrees 02 minutes
07 seconds West a distance of 826.88 feet to the Point of Beginning. 

EXCEPTING
THEREFROM the north 40 feet for highway purposes as recorded in Docket 9426, Page 84, Maricopa County Records. 

Also
known as a portion of Lots 73 through 90 of the PHOENIX FIG FARMS as recorded in Book 18 of MAPS, Page 35, Maricopa County Records. 

Together
with a 40 foot wide easement for access and installation of a private water line across the South half of the Southwest quarter of Section 19, Township 4 North, Range 1 East of the
Gila and Salt River Base and Meridian, more particularly described as follows: 

BEGINNING
at the Southwest corner of the Southwest quarter of said Section 19; thence North 0 degrees 35 minutes 38 seconds West along the West line of Section 19, a distance of 40.00
feet; thence North 89 degrees 02 minutes 12 seconds East, a distance of 2,177.26 feet to a point on the Westerly line of the Salt River Project R/W; thence South 02 degrees 24 minutes 06 seconds West
along the Westerly line of the Salt River Project R/W, a distance of 40.04 feet to a point on the South line of the Southwest quarter of said Section 19; thence South 89 degrees 02 minutes 12
seconds West along the South line of Section 19 a distance of 2,175.17 feet to the Point of Beginning; and 

BEGINNING
at the Southeast corner of the Southwest quarter of said Section 19; thence South 89 degrees 02 minutes 12 seconds West along the South line of said Section 19, a distance of
364.91 feet to a point on the Easterly line of the Salt River Project R/W; Thence North 02 degrees 

24
minutes 06 seconds East along the Easterly line of the Salt River Project R/W, a distance of 40.04 feet; thence North 89 degrees 02 minutes 12 seconds East, a distance of 363.15 feet to a point on
the East line of the Southwest quarter of said Section 19; thence South 0 degrees 06 minutes 58 seconds East along the East line of the Southwest quarter of said Section 19. a distance
of 40.00 feet to the Point of Beginning as recorded in 86-457604, Maricopa County Records. 

        The
above-described Parcel 2 is owned at the date of the above-referenced Agreement by Hope Resources, LLC. 

 
 

EXHIBIT B    
    

        Approximately 20 acres of real property located in Maricopa County, Arizona, more particularly described as: 

That
part of Lots 1 and 2 of Section 30, Township 4 North Range I East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, also being a part of PHOENIX FIG FARMS, a
subdivision of record in Book 18 of Maps, page 35 (M.C.R.), described as follows: 

Beginning
at the Northwest corner of said Section 30; thence North 89 degrees 02 minutes 07 seconds East along the North line of said Section 30, a distance of 40.00 feet to the TRUE
POINT OF BEGINNING. 

Thence
North 89 degrees 02 minutes 07 seconds East along the North line of said Section 30, a distance of 884.59 feet; 

thence
South 24 degrees 36 minutes 25 seconds West, a distance of 911.59 feet: thence South 31 degrees 06 minutes 31 seconds West, a distance of 416.72 feet; thence South 12 degrees 46 minutes 21
seconds West, a distance of 853.20 feet; thence South 2 decrees 50 minutes 10 seconds East, a distance of 635.92 feet to a point on the East-west mid-section line of said
Section 30; 

thence
South 89 degrees 10 minutes 29 seconds West along said mid-section line a distance of 125.00 feet to a point which is North 89 degrees 10 minutes 29 seconds East, a distance of
40.00 feet from the West quarter corner of said Section 30; thence North 0 degrees 09 minutes 40 seconds West parallel to and 40.00 feet East of the West line of said Section 30, a
distance of 2,417.38 feet; 

thence
North 82 degrees 34 minutes 11 seconds East, a distance of 784.14 feet; thence North 7 degrees 25 minutes 49 seconds West, a distance of 70.00 feet; thence South 82 degrees 34 minutes 11
seconds West, a distance of 775.22 feet to a point which is 40.00 feet East of the West line of said Section 30; thence North 0 degrees 09 minutes 40 seconds West, a distance of 151.81 feet to
the TRUE POINT OF BEGINNING. 

        The
above-described Parcel is owned at the date of the above-referenced Agreement by Hope Resources, LLC. 

 
 

EXHIBIT C    
    

        Approximately 3.5 acres of real property located in Maricopa County, Arizona. This property is located within Maricopa County Assessor Parcel
No. 200-13-003. The 3.5 acre area consists of a rectangular area approximately 420 feet long and 300 feet wide. The southeast corner of this area is located at a point
approximately 45 feet west of the eastern boundary of parcel 200-13-003 and 1000 feet north of the southern boundary of parcel 200-13-003. The southern
boundary of the 3.5 acre area runs parallel to the southern boundary of parcel 200-13-003. The eastern boundary of the 3.5 acre area runs parallel to the eastern boundary of
parcel 200-13-003. 

QuickLinks

AGREEMENT

EXHIBIT A

EXHIBIT B

EXHIBIT CQuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.9    
    

 
 

GROUND LEASE    
    

        THIS GROUND LEASE (this "Lease") is made this 21 day of
Nov., 2000, by and between THE LANDWELL COMPANY, L.P., a Delaware limited partnership ("Landlord"), and
READY MIX, INC., a Nevada corporation ("Tenant"). 

ARTICLE 1  

 PREMISES  

        1.1    Demise.    Landlord demises and leases to Tenant, and Tenant rents from Landlord for the Term, described in
Article 2 below, those certain premises which are shown on the site plan which is attached hereto as Exhibit "A" and incorporated herein by this reference, consisting of eleven and
27/100 (11.27) acres (the "Premises"). Tenant acknowledges that neither Landlord nor any agent of
Landlord has made any representation or warranty with respect to the Premises. 

        1.2    Permitted Use of Premises.    The Premises may be used by Tenant as a Ready Mix & Aggregate which shall
include the right to place temporary office space on the Premises (the "Permitted Use"). Landlord has
disclosed to Tenant that the Premises have previously been used for industrial purposes and Tenant acknowledges that it has investigated such prior use and has satisfied itself as to the condition of
the Premises. 

        1.3    Quiet Enjoyment.    If and so long as Tenant pays the rent, as defined in Article 3 below, and keeps,
observes and performs each and every term, covenant and condition of this Lease on the part of Tenant to be kept, observed and performed, Tenant shall peaceably hold and enjoy the Premises for the
Term without hinderance or interruption by Landlord or any other person lawfully claiming through or under Landlord except as expressly provided in this Lease. 

        1.4    Restrictions.    Tenant shall comply with any and all regulations that Landlord may reasonably impose upon the
Property. 

ARTICLE 2  

 TERM  

        The term of this Lease (the "Term") shall commence on October 15, 2000 (the  "Commencement Date") and shall terminate (the  "Termination Date") eighteen
(18) months after the Commencement Date, unless the Term is extended
as provided herein. Provided Tenant is not in default of any provision of the Lease at the time of exercise or at any time thereafter prior to the commencement of the Option Term (defined below),
Tenant may extend the Term for two (2) additional six (6) month periods (each an "Option
Term") only by giving Landlord written notice not more than four (4) months nor less than two (2) months before the expiration of the then
current initial Term (such option to extend is sometimes hereinafter referred to as the "Option"). All
of the terms and conditions of the Lease, except this right to extend the Term, shall apply to the Option Term so far as applicable, and reference in the Lease to the "Term" shall be deemed to include
the Option Term. The Option shall not be available to any subsequent assignee, subtenant or other transferee of the original Tenant. Time is of the essence of all of the provisions of this
Article 2 relating to Tenant's exercise of the Option. Tenant's failure to comply with any of the time or other requirements set forth in this Article 2 shall cause the Option to
automatically cease and terminate and, in such event, the Lease shall terminate upon the expiration of the then-current initial Term. Upon the expiration of the Option Terms, Landlord and
Tenant may mutually agree to continue this Lease on a month-to-month basis. 

1

 

ARTICLE 3  

 RENTAL  

        3.1    Rent.    Tenant shall pay Landlord a basic rent (the "Basic
Rent") for the Premises in the amount of Six Thousand Dollars ($6,000) per month. The Basic Rent for the last month of the Term shall be due and
payable on or before the Commencement Date. Commencing October 15, 2001, Basic Rent shall be increased to Six Thousand Six Hundred Dollars ($6,600). 

        3.2    Tenant to Pay Net Rent.    Throughout the Term, Tenant shall pay to Landlord the Basic Rent set forth in
Section 3.1 above, in the manner set forth in this Article, without deduction of any kind whatsoever. Basic Rent shall be paid without prior notice or demand, and without any setoff,
counterclaim or deduction whatsoever, and shall not be reduced or abated except as expressly provided in this Lease. 

        3.3    Payment of Basic Rent.    Tenant shall commence payment of Basic Rent on the Commencement Date and such rent
shall be paid in advance on the first day of each calendar month thereafter. Basic Rent for any partial month shall be pro-rated. 

        3.4    Currency; Agent; Place of Payment.    All Basic Rent and all other charges payable by Tenant under this Lease
(sometimes collectively referred to herein as "rent") shall be paid in lawful currency of the United
States of America to Landlord or to such agent as shall be designated by Landlord in written notice to Tenant on or before its due date. All payments of rent shall be paid to Landlord at the address
to which notices to Landlord are given. 

ARTICLE 4  

 ENCUMBRANCES  

        4.1    No Right to Encumber.    Tenant shall not have the right to encumber by way of a deed of trust, mortgage, or
other security instrument (collectively, a "Deed of Trust") all or any portion of Tenant's right, title
and interest in, to and under this Lease, without the written consent of Landlord, which
consent shall be given at Landlord's sole discretion. Any encumbrance without Landlord's consent shall be voidable and, at Landlord's election, shall constitute a material default by Tenant. 

        4.2    Encumbrances on Landlord's Interest.    Nothing herein contained shall limit Landlord's rights to assign or
otherwise encumber Landlord's interest in this Lease. In the event that Landlord at any time so encumbers its interest in this Lease, said encumbrance shall be subject and subordinate, and shall not
be a lien prior, to this Lease or any modifications or extensions hereof, and any such encumbrance by Landlord shall not be deemed to give any such assignee any greater rights than Landlord hereunder
or the right to cancel the Lease unless there is a default on the part of Tenant, uncured by Tenant, which, under the terms of this Lease, would enable Landlord to cancel this Lease. 

ARTICLE 5  

 INSURANCE  

        5.1    Fire and Hazard Insurance.    Tenant shall at its own expense and at all times during the Term keep all
improvements and fixtures, by whomsoever installed or constructed, existing on the Premises on the Commencement Date or at any time thereafter, insured against (a) all of the risks covered by a
standard "Special Form" endorsement, and (b) such other hazards or risks which a prudent businessman would insure against. This coverage shall be in an amount equal to the full replacement cost
of such improvements and fixtures without deduction for depreciation, shall be written on an "Agreed Amount" basis, and shall not have a deductible in excess of Five Thousand Dollars ($5,000).
The insurance policy shall name Landlord as a loss payee thereunder. 

2

 

        5.2    Liability Insurance.    Tenant shall maintain at its own expense during the Term a policy or policies of
"commercial general liability" insurance naming Landlord as additional insured thereunder in form and with coverage satisfactory to and approved by Landlord, with limits not less than Two Million
Dollars ($2,000,000), and with deductibles not more than Five Thousand Dollars ($5,000). Tenant shall periodically, but not less frequently than annually, reevaluate the scope of the
risks covered and the liability limits of such insurance policies and, if necessary, increase such coverage or liability limits in order to provide coverage of risks and liability limits which a
prudent businessman would provide under similar circumstances. Tenant shall also increase the liability limits or the scope of the risks covered by such insurance policies to such higher levels or
such broader scope of risks as Landlord may from time to time reasonably specify. The coverage required hereunder shall state the Tenant's insurance shall apply separately to each insured against whom
a claim is made or suit is brought, except with respect to the limits of the insurer's liability. 

        5.3    General Insurance Requirements.    

        (a)    Policy Provisions.    Each policy of insurance required in Sections 5.1 and 5.2
shall: 

          (i)  provide
that the liability of the insurer thereunder shall not be affected by, and that the insurer shall not claim, any right of set-off, counterclaim,
apportionment, proration, or contribution by reason of, any other insurance obtained by or for Landlord, Tenant, or any person claiming by, through, or under any of them; 

         (ii)  contain
no provision relieving the insurer from liability for loss occurring while the hazard to buildings, improvements and fixtures is increased, whether or not
within warranty or condition or any other act or neglect by Landlord, Tenant, or any person claiming by, through, or under any of them; 

        (iii)  provide
that such policy may not be cancelled, whether or not requested by Tenant, except upon the insurer giving at least thirty (30) days prior written notice
thereof to Landlord and Tenant; 

        (iv)  contain
a waiver by the insurer of any right of subrogation to any right of Landlord or Tenant against any of them or any person claiming by, through, or under any of
them; 

         (v)  be
written by an insurance company rated A or better, Class size IX or better, by the Best's Key Rating Guide, based upon the rating system in effect on the date this
Lease is signed, and approved in writing by Landlord. In the event that Best's changes its rating system or ceases to provide ratings at some later date, then such insurance company shall have a
rating from Best (or some other comparable rating service if Best's ceases to provide ratings) comparable to the "A or better, Class size IX or better" requirement of the immediately preceding
sentence, and 

        (vi)  be
written as primary policies, not contributing with and not in excess with any coverage that Landlord may carry. 

        (b)    Certificates of Insurance.    Tenant shall deposit with Landlord current certificates
of insurance issued by the insurance carriers certifying that Tenant has in effect all the insurance required in Sections 5.1 and 5.2. Tenant shall also deposit with Landlord current copies of
all insurance policies and endorsements required by this Article. 

ARTICLE 6  

 CONDEMNATION  

        6.1    Partial Termination and Reduction of Rent.    In the event at any time or times during the Term all or any part
of the Premises shall be taken or condemned by any authority having the power of 

3

 

eminent
domain, then and in every such case the estate and interest of Tenant in any part of the Premises so taken or condemned shall at once cease and terminate. 

        6.2    Compensation and Damages.    In every case of taking or condemnation of all or any part of the Premises, all
compensation and damages payable for or on account of the taking of all or any part of the Premises shall be payable to and be the sole property of Landlord, and Tenant shall not have any interest or
claim to such compensation or damages or any part thereof whatsoever. 

        6.3    Termination of Lease.    In the event only part of the Premises shall be so taken or condemned and Landlord and
Tenant shall agree in writing that the balance of the Premises is unsuitable for the purposes permitted under this Lease and intended by Tenant, Tenant shall, if so requested by Landlord, remove all
improvements then remaining on the Premises and restore the Land then remaining to good and orderly condition and even grade, and upon such removal and restoration and in every such case, Tenant shall
have the right at its option, by giving prior written notice thereof to Landlord within seventy-five (75) days after completing such removal and restoration, to terminate
this Lease. Upon such termination, Tenant shall be relieved of all further obligations under this Lease and Landlord shall refund to Tenant any unearned portion of the Rent paid in advance prior to
the effective date of such termination. 

        6.4    Conveyance as Condemnation.    The term  "condemnation" as used in this Lease shall include any conveyance made under threat or imminence of
condemnation by any public or private authority having the power of eminent domain. 

ARTICLE 7  

 MAINTENANCE AND USE OF PREMISES  

        7.1    Observance of Laws.    Tenant shall during the Term (i) keep the Premises in a clean and safe condition;
(ii) observe and perform all laws, ordinances, rules and regulations whether now or hereafter made by any governmental authority for the time being applicable to the Premises or the use thereof
(unless such observance or performance is specifically required by Landlord hereunder); and (iii) indemnify, defend and hold Landlord harmless against all actions, suits, claims and damages
(including reasonable attorneys' fees) by whomsoever brought or made by reason of Tenant's nonobservance or nonperformance of such requirements, laws, ordinances, rules and regulations or this
covenant. 

        Furthermore,
Tenant agrees that by taking possession of the Premises, Tenant acknowledges that the Premises are in compliance with any and all air pollution control regulations or
similar regulations issued and/or enforced by any governmental agency affecting the premises, including, without limitation, the Clark County Health District (collectively, the  "Air Quality
Regulations"). Tenant further acknowledges and agrees that at all times during the term of
this Lease, and any holdover period during which Tenant is occupying or using the Premises, if applicable, Tenant shall be solely responsible for complying with the Air Quality Regulations. If, at any
time, Tenant uses or occupies any of Landlord's property outside of the Premises ("Tenant's
Encroachment"), as determined in Landlord's sole discretion, or violates any Air Quality Regulations affecting the Premises or any of Landlord's
property, Tenant hereby agrees to pay to Landlord, immediately upon demand, a penalty fee in the amount of Ten Thousand Dollars ($10,000) (the  "Penalty Amount"). Tenant acknowledges that the Penalty Amount represents a reasonable estimate of the
damage that Landlord may suffer as a result of Tenant's Encroachment upon Landlord's property and/or Tenant's violation of any Air Quality Regulations over and above the Violation Costs (as defined
herein). Additionally, Tenant acknowledges and agrees that Tenant shall be solely responsible for any and all (i) penalties assessed against Landlord by any governmental or quasi-governmental
agency as a result of Tenant's use of the Premises or Tenant's Encroachment, including, without limitation, any penalties assessed for violations of the Air Quality Regulations; and
(ii) mitigation costs that may be imposed upon or incurred by Landlord in 

4

 

remedying
any violation of the Air Quality Regulations caused by Tenant's activities on the Premises or Tenant's Encroachment (the fees and costs referred to in the foregoing clauses (i) and
(ii) are referred to herein collectively as the "Violation Costs"). Tenant shall pay the
Violation Costs to Landlord immediately upon demand by Landlord. 

        Notwithstanding
anything to the contrary contained in this Lease, if (i) a Tenant's Encroachment (as defined herein) occurs, (ii) Tenant violates the Air Quality
Regulations (as defined herein) as a result of Tenant's use of the Premises or Tenant's Encroachment, (iii) Tenant fails to maintain the Premises as
provided in this Lease, or (iv) Tenant fails to comply with all applicable laws as provided in this Section 7, Tenant may terminate this Lease immediately upon delivering written notice
of such termination to Tenant. Tenant's obligations under this Section 7.1 shall survive the termination of this Lease. 

        7.2    Inspection of Premises.    Tenant shall permit Landlord and its agents at all reasonable times during the Term
to enter and examine the state of repair and condition of the Premises. If any defects which may cause the Premises to be unsafe or in violation of law come to Landlord's attention, Landlord may give
notice of such defects to Tenant and within thirty (30) days after such notice, Tenant shall repair and make good all defects required by the terms of this Lease to be repaired by
Tenant; provided, however, that if such repair or correction may be made within a reasonable period of time but cannot reasonably be made within thirty (30) days, then such repair or
correction shall be deemed to be made if begun within the thirty (30) day period and thereafter continuously and diligently undertaken to completion by Tenant. 

        7.3    Liens.    Tenant shall keep the Premises at all times free and clear of all liens, charges and encumbrances of
every nature, and will indemnify, defend and hold Landlord harmless from all loss, cost and expenses (including reasonable attorneys' fees) with respect to any such liens, charges and encumbrances,
unless such liens, charges and encumbrances (i) exist on the Commencement Date, or (ii) are created by Landlord or persons claiming by, through or under Landlord. Landlord shall have the
right to record such notices of nonresponsibility as Landlord shall reasonably deem to be appropriate to protect Landlord's Interest from being encumbered by any mechanics' or materialmen's lien. 

        7.4    No Interference with Seller's Work.    At no time during the Term, and any holdover period during which Tenant
is occupying or using the Premises, shall Tenant's use of the Premises interfere with Seller's offsite work at or near the Premises (collectively,  "Seller's Work"). Tenant specifically acknowledges that Landlord reserves the right to enter upon the
Premises as Seller's deems reasonably necessary to complete Seller's Work. 

ARTICLE 8  

 DEFAULT  

        8.1    Events of Default.    Tenant shall be in default under this Lease (herein a  "Default" if: 

        (a)    Failure to Pay Rent.    Tenant shall fail to make full payment of any payment of Rent
or any other payments to Landlord required under this Lease within five (5) days after the date that such payment is due, whether such payment shall or shall not have been otherwise demanded;
or 

        (b)    Breach of Covenant.    Tenant shall fail to observe or perform any of the covenants
contained in this Lease and on the part of Tenant to be observed and performed, and such failure shall continue for a period of five (5) days after written notice of such failure given by
Landlord to Tenant without substantial action having been (i) initiated by Tenant within such period and (ii) thereafter diligently and continuously continued to remedy such failure; or 

5

 

        (c)    Bankruptcy or Insolvency.    Tenant shall become bankrupt or insolvent, or seek
protection under any provision of any bankruptcy or insolvency law, or any similar law providing for the relief of debtors or if any assignment be made of Tenant's property for the benefit of
creditors; or 

        (d)    Liens.    If the Land shall become subject to any attachment or judgment, or to any
lien, charge or encumbrance not consented to by Landlord or permitted pursuant to the provisions of this Lease and the same shall not be released prior to the earlier of (i) thirty
(30) days thereafter; or (ii) the commencement of any process or action seeking to foreclose upon such lien, charge or encumbrance. 

        8.2    Landlord's Remedies.    

        (a)   In
the event of any such default by Tenant, then, in addition to any other remedies available to Landlord at law or in equity, Landlord shall have the immediate option
to terminate this Lease and all rights of Tenant hereunder by giving Tenant five (5) days' written notice of such election to terminate. In the event Landlord shall elect to so terminate this
Lease, Landlord may recover from Tenant: 

          (i)  the
worth at the time of award of any unpaid rent which has be earned at the time of such termination; plus 

         (ii)  the
worth at the time of award of any amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such
rental loss that Tenant proves could have been reasonably avoided; plus 

        (iii)  the
worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of the award exceeds the amount of such rental loss
that Tenant proves could be reasonably avoided; plus 

        (iv)  any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in
the ordinary course of things would be likely to result therefrom; and 

         (v)  at
Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law. 

        (b)   As
used in paragraphs (i) and (ii) above, the "worth at the time of award" is computed by allowing interest in the per annum amount equal to the prime rate
of interest or other equivalent reference rate from time to time announced by the Bank of America National Trust and Savings Association (the "Reference
Rate") plus two percent (2%), but in no event in excess of the maximum interest rate permitted by law. As used in paragraph (iii) above,
the "worth at the time of award" is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). 

        (c)   In
the event of any such default by Tenant, Landlord shall also have the right, with or without terminating this Lease, to re-enter the Premises and remove
all persons and property therefrom by summary proceedings or otherwise; such property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of Tenant. 

        (d)   In
the event of the vacation or abandonment of the Premises by Tenant, or in the event that Landlord elects to re-enter as provided in Paragraph (c)
above or takes possession of the Premises pursuant to legal proceeding or pursuant to any notice provided by law, and if Landlord does not elect to terminate this Lease, then Landlord may from time to
time, without terminating this Lease, either recover all rent as it becomes due or relet the Premises or any part thereof for such term or terms and at such rent and upon such other terms and
conditions as Landlord, in its sole discretion, may deem advisable, with the right to make alterations and repairs to the Premises. 

6

 

If
Landlord does not terminate this Lease and if Tenant requests Landlord's consent to an Assignment of this Lease or a Sublease of the Premises at such time as Tenant is in default, Landlord may not
unreasonably withhold its consent to such Assignment or Sublease. 

        (e)   In
the event that Landlord shall elect to so relet as provided in Paragraph (d) above, then rentals received by Landlord from such reletting shall be applied:
First, to the payment of any indebtedness
other than rent due hereunder from Tenant to Landlord; second, to the payment of any cost of such reletting; third, to the payment of the cost of any alterations and repairs to the Premises; fourth,
to the payment of rent due and unpaid hereunder; and the remainder, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder. Should
that portion of such rentals received from such reletting during any month, which is applied to the payment of rent hereunder, be less than the rent payable during that month by Tenant hereunder, then
Tenant shall pay such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. Tenant shall also pay to Landlord, as soon as ascertained, any costs and expenses incurred by
Landlord in such reletting or in making such alterations and repairs not covered by the rentals received from such reletting. 

        8.3    Non-waiver: Remedies Cumulative.    The waiver by Landlord or Tenant of any breach of any term,
covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein
contained. The subsequent acceptance of rent or any other payment hereunder by Landlord or the subsequent acceptance of payment by Tenant shall not be deemed to be a waiver of any preceding breach of
any term, covenant or condition of this Lease, other than the failure of the party to pay the particular rental or other payment so accepted, regardless of such party's knowledge of such preceding
breach at the time of acceptance of such rent or other payment. Each and all the remedies given to Landlord and Tenant hereunder are cumulative, and the exercise of one right or remedy by Landlord or
Tenant shall not impair Landlord's or Tenant's right to any other remedy under this Lease or available under applicable law. 

        8.4    No Accord and Satisfaction.    No payment by Tenant or receipt by Landlord of a lesser amount than the monthly
rent or other payments herein stipulated shall be deemed to be other than on account of the earliest stipulated rent or other payment, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment as rent or other payment be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the
balance of such rent or other payment or pursue any other remedy provided in this Lease, 

ARTICLE 9  

 SURRENDER  

        9.1    Surrender.    Subject to the terms of Section 6.3 above, dealing with termination of the Lease in the
event of condemnation under certain conditions, and subject further to Landlord's options set forth in this Section 9.2 below, at the end of the Term or sooner termination of this Lease, Tenant
shall peaceably deliver to Landlord possession of the Premises, in good order and condition, ordinary wear and tear excepted, provided, however, that Tenant shall remove, at Tenant's sole cost and
expense, any temporary utilities or other improvements that Tenant or its agents have installed on the Premises. 

        9.2    Removal and Restoration.    Notwithstanding the provisions of Section 9.1 above, upon fifteen
(15) days notice prior to the expiration of the Term, Landlord may in its sole discretion require the Tenant, at its sole expense, to remove promptly after the expiration of the Term any or all
improvements by whomsoever made then on the Premises, all debris from such demolition and restore the Premises to good and even grade. 

7

 
ARTICLE 10  

 ASSIGNMENTS AND SUBLEASES  

        Tenant shall not assign or transfer this Lease or any interest therein, or sublet the Premises in whole without Landlord's prior written consent, which consent
may be withheld in Landlord's sole discretion. Each assignee shall assume and be deemed to have assumed this Lease and shall become and remain liable jointly and severally with Tenant for the payment
of the rent and other payments due hereunder. No assignment shall be binding on Landlord unless such assignee or Tenant shall deliver to Landlord a counterpart of such assignment which contains a
covenant of assumption by the assignee, but the failure or refusal of the assignee to execute such instrument of assumption shall not release or discharge the assignee from its liability as set forth
above. Landlord's consent to any such assignment or subletting shall in no event release Tenant from its continuing liability hereunder unless such release is expressly set forth in a writing signed
by Landlord. Unless so released, Tenant's liability hereunder shall continue notwithstanding any other or further assignment of this Lease or subsequent amendment or revision hereof, Tenant hereby
expressly consents to all such amendments and revisions and waives notice thereof. Tenant's continuing liability hereunder shall be direct, primary and absolute and not secondary or conditional. 

ARTICLE 11  

 GENERAL PROVISIONS  

        11.1    Assumption of Risk.    Tenant shall and does hereby assume all risk of loss or damage to furnishings,
furniture, fixtures, supplies, merchandise and other property, by whomsoever owned, stored, placed or affixed in the Premises and does hereby agree that Landlord shall not be responsible for loss or
damage to any such property, and Tenant hereby agrees to indemnify, defend and hold Landlord
harmless from and against any and all claims for such loss or damage, including reasonable attorney's fees. 

        11.2    Holding Over.    If Tenant shall, with the consent of Landlord, remain in possession of the Premises after the
expiration of the Term without executing any extension or renewal of this Lease, Tenant shall be deemed to occupy the Premises as tenant from month-to-month subject to all of
the terms and conditions of the Lease, to the extent such terms and conditions are applicable to a month-to-month tenancy except that each month's Basic Rent shall be equal to
two hundred percent (200%) of the Basic Rent amount paid for the year preceding the expiration date. 

        11.3    Notices.    Any notice or demand to be given to or served upon either Landlord or Tenant in connection with
this Lease shall be in writing and shall be deemed to have been sufficiently given or served for all purposes by being sent by certified mail, postage prepaid, return receipt requested, addressed to
such party at its address specified below or at such other address as such party may have within the State of Nevada, and any such notices or demand shall be deemed conclusively to have been given or
served on the date indicated on the return receipt of delivery or upon the date of such personal delivery; provided, however, that if such party refuses to accept delivery of such notice or demand,
then delivery will be deemed conclusively to have been given or served on the date of such refusal. 

        Landlord's
Address: 

The
Landwell Company, L.P.

875 West Warm Springs Road

Henderson, Nevada 89015

Attention: Dan H. Stewart

Fax: (702) 567-0475 

8

 

        With
a copy to: 

Jones
Vargas

3773 Howard Hughes Parkway

Third Floor South

Las Vegas, Nevada 89109

Attention: Stephen M. Rice, Esq.

Fax: (702) 734-2722 

        Tenant's
Address: 

Ready
Mix, Inc.

3430 East Flamingo Road

Las Vegas, Nevada 89121

Attention: Bob Morris

Fax: (702) 433-0189 

        11.4    Article, Section, Paragraph Headings.    The article, section and paragraph headings in this Lease are
inserted only for convenience and reference and shall in no way define, limit or describe the scope or intent of any provision of this Lease. 

        11.5    Indemnity.    Tenant shall indemnify, defend and hold Landlord harmless from and against any and all claims
and demands for loss or damage, including claims for property damage, personal injury or wrongful death, arising out of or in connection with the use or occupancy of the Premises by Tenant or any
other person claiming by, through or under Tenant, or any accident or fire on the Premises, or any nuisance made or suffered thereon, or any failure of Tenant to maintain the Premises in a safe
condition, and Tenant shall reimburse Landlord for all costs and expenses, including reasonable attorneys' fees, paid or incurred by Landlord in connection with defense of any such claim or in any
such action as well as all costs for research regarding settlement or other preventive measures which Landlord may take prior to the filing of such action or to attempt to prevent the filing of such
an action. 

        11.6    No Increase of Tenant's Estate.    Tenant hereby waives and relinquishes any and all rights given to a lessee
under any law which may be enacted at any time during the Term giving Tenant the right to expand Tenant's leasehold estate under this Lease, which Tenant would not have under the terms of this Lease
in the absence of such chapter or such law, it being understood and agreed by and between Landlord and Tenant that the provisions of such chapter of such law shall not apply to this Lease. Any attempt
by Tenant or any person claiming by or through Tenant to expand its estate under this Lease pursuant to such chapter or such law shall be breach of this Lease. 

        11.7    Interest and Late Charges.    

        (a)    Interest.    All payments required to be made by Tenant to Landlord under this Lease
which are not paid within five (5) days of the due date for such payments required in the Lease shall bear interest at a rate equal to fifteen percent (15%) per annum accruing from the due date
until such overdue payments are paid in full. 

        (b)    Late Charges.    In the event Tenant is more than five (5) days late in paying
any installment of rent due under this Lease, Tenant shall pay Landlord a late charge equal to five percent (5%) of the delinquent installment of rent. The parties agree that the amount of such late
charge represents a reasonable estimate of the cost and expense that would be incurred by Landlord in processing each delinquent payment of rent by Tenant and that such late charge shall be paid to
Landlord as liquidated damages for each delinquent payment, but the payment of such late charge shall not excuse or cure any default by Tenant under this Lease. The parties further agree that the
payment of late charges and the payment of interest provided for in Section 11.7(a) 

9

 

above
are distinct and separate from one another in that the payment of interest is to compensate Landlord for the use of Landlord's money by Tenant, while the payment of a late charge is to
compensate Landlord for the additional administrative expense incurred by Landlord in handling and processing delinquent payments. 

        11.8    Neither Landlord nor Tenant Deemed Drafter.    All provisions of this Lease have been negotiated by Landlord
and Tenant at "arm's length" and with full opportunity for representation by their respective legal counsel and Landlord and Tenant agree that neither party shall be deemed to be the drafter of this
Lease and in the event this Lease is ever construed by a court of law, such court shall not construe this Lease against either party drafter of this Lease. 

        11.9    Landlord's Right to Transfer Landlord's Interest.    Tenant agrees that nothing in this Lease shall be
construed to prevent Landlord from selling, assigning or otherwise transferring all or any part of Landlord's Interest. In the event of Landlord's transfer of all of Landlord's Interest, Tenant agrees
that any and all obligations of Landlord under this Lease not then accrued shall terminate upon the effective date of such transfer and Tenant hereby releases Landlord from any obligations or
covenants under this Lease which have not accrued prior to such effective date; provided, however, that nothing herein shall be deemed or construed to release the transferee of Landlord's Interest
from the obligation to perform all of the obligations and covenants of Landlord under this Lease which accrue from and after the effective date of such transfer. 

        11.10    Entire Agreement.    This Lease together with the Exhibits attached hereto constitutes the full and complete
agreement of Landlord and Tenant and all other prior oral and written agreements shall be deemed to have merged into this Lease and have no further force or effect. 

        11.11    Consent.    Where the consent or approval of Landlord or Tenant is required by any provisions of this Lease,
all such approvals or consents shall be in writing and unless expressly so provided to the contrary, such consent shall not unreasonably withheld or delayed. 

        11.12    Amendment.    This Lease may only be amended in writing, executed by both Landlord and Tenant. 

        11.13    Estoppel Certificates.    Within ten (10) days of written notice from either party, the other party
shall execute, acknowledge and deliver to the requesting party a statement in writing (i) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the
nature of such modification and certifying that this Lease, as so modified, is in full force and effect) and the date to which the rent and other charges are paid in advance, if any, and
(ii) acknowledging that there are not, to certifying party's knowledge, any uncured defaults on the part of the other party, or specifying such defaults if any are claimed. Any such statement
may be conclusively relied upon by any prospective purchaser or encumbrancer of the Premises. 

        11.14    Attorneys' Fees.    If either party hereto institutes any action or proceeding in court to enforce any
provisions hereof or for damages or other relief by reason of any alleged breach of any provision hereof, the prevailing party shall be entitled to receive from the losing party all costs, including
reasonable attorneys' fees. If any litigation or legal expense incurred by either party hereto in connection with any litigation commenced by or against the other party (other than condemnation
proceedings) in which it shall without fault be made a party, then it will be entitled to recover against the opposite party all of its costs including reasonable attorneys' fees. 

        11.15    Expenditures By Landlord.    Whenever under any provision of this Lease, Tenant shall be obligated to make
any payment or expenditure, or to do any act or thing, or to incur any liability whatsoever, and Tenant fails, refuses or neglects to perform as herein required, Landlord shall be entitled but shall
not be obligated to make any such payment or expenditure, or do any such act or thing, or to incur any such liability, all on behalf of and at the cost and for the account of Tenant, and in such event
the amount thereof, together with interest computed at the rate of fifteen percent (15%) 

10

 

per
annum, shall be deemed additional rent hereunder and shall be added to and deemed a part of the next installment of rent thereafter becoming due. 

        11.16    Partial Invalidity.    If any term, provision, covenant or condition of this Lease should be held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of this Lease shall continue in full force and effect and shall in no way be affected, impaired or invalidated thereby. 

        11.17    Time of Essence.    Time is of the essence of this Lease and all of the terms, provisions, covenants and
conditions hereof 

        11.18    Successors and Assigns.    All the terms, covenants and conditions of this Lease shall inure to the benefit
of and be binding upon the successors, successors in trust and assigns of Landlord and, subject to the restrictions on assignment herein contained, the heirs, devisees, personal representatives,
successors and permitted assigns of Tenant to the same extent as said terms, covenants and conditions inure to the benefit of and are binding upon Landlord and Tenant, respectively. 

        11.19    Grammar; Governing Law.    The necessary grammatical changes required to make the provision of this Lease
apply in the plural sense where there is more than one Tenant and to either corporations, associations, partnerships, or individuals, males or females, shall in all instances be assumed as though in
each case fully expressed. The laws of the State of Nevada shall govern the validity, performance and enforcement of this Lease. 

        11.20    Counterparts.    This Lease may be executed in multiple counterparts, each of which, when so executed and
delivered, shall constitute an original fully enforceable instrument for all purposes. 

        11.21    Days.    Any reference in this Lease to "days" shall mean calendar rather than business days unless otherwise
specifically provided. 

11

 

        IN
WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day and year first above written. 

	 	 	LANDLORD:
	

 	
 	

THE LAND WELL COMPANY, L.P

a Delaware limited partnership
	

 	
 	

By:	

Basic Land Company,

a Nevada corporation

its general partner
	

 	
 	

 	

By:	

/s/  DAN H. STEWART      
 Dan H. Stewart
 President and Chief Executive Officer
	

 	
 	
TENANT:
	

 	
 	

READY MIX, INC.

a Nevada corporation
	

 	
 	

By:	

/s/  ROBERT R. MORRIS      

	 	 	Name:	Robert R. Morris

	 	 	Title:	President

12

 
CONSENT OF RECORD OWNER  

        Basic Environmental Company, LLC, a Nevada limited liability company, as the record owner of the Premises, hereby consents to the foregoing Lease. 

	 	 	BASIC ENVIRONMENTAL COMPANY, LLC

a Nevada limited liability company
	

 	
 	

By:	

/s/  DAN H. STEWART      
 Dan H. Stewart
 President

13

 
 

EXHIBIT "A"
  LEGAL DESCRIPTION OF PROCESSING SITE    
    

EXPLANATION:  

        THIS LEGAL DESCRIBES A PARCEL OF LAND LOCATED EAST OF U.S. HIGHWAY 95 AND SOUTH OF WARM SPRINGS ROAD. 

        BEING
A PORTION OF THE EAST HALF (E 1/2) OF SECTION 11, TOWNSHIP 22 SOUTH, RANGE 62 EAST, M.D.M., CLARK COUNTY, NEVADA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: 

        COMMENCING
AT THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER (NE 1/4) OF SAID SECTION 11; THENCE SOUTH 88°49'22" WEST, ALONG THE SOUTH LINE THEREOF, 1493.41
FEET TO THE POINT OF BEGINNING; THENCE SOUTH 20°09'11" WEST, DEPARTING SAID SOUTH LINE, 1508.01 FEET; THENCE NORTH 00°00'00"
WEST, 655.34 FEET; THENCE NORTH 13°51'46" WEST, 771.73 FEET; THENCE NORTH 88°57'58" EAST, 705.17 FEET; THENCE SOUTH 20°09'11" WEST, 1.74 FEET TO  THE POINT OF BEGINNING.

        CONTAINING
435,746 SQUARE FEET (10.00 ACRES), MORE OR LESS, AS DETERMINED BY COMPUTER METHODS. 

BASIS OF BEARINGS  

        THE BASIS OF BEARINGS FOR THIS PARCEL DESCRIPTION IS GRID NORTH AS DEFINED BY THE NEVADA COORDINATE SYSTEM OF 1983 (NC83) EAST ZONE (2701). 

SITE PLAN SHOWING PROCESSING SITE  

A PORTION OF THE EAST HALF (E 1/2) OF SECTION 11,

TOWNSHIP 22 SOUTH, RANGE 62 EAST, M.D.M., CLARK COUNTY, NEVADA 

LINE TABLE  

	No.
 
	 	BEARING
	 	DISTANCE

	L1	 	S20°09'11"W	 	1.74'

[GRAPHIC]

CONTAINING
435,746 SQUARE FEET,

10.00 ACRES. 

 
 

EXHIBIT "A"    
    

EXPLANATION:  

        THIS LEGAL DESCRIBES A PARCEL OF LAND LOCATED EAST OF U.S. HIGHWAY 95 AND SOUTH OF WARM SPRINGS ROAD FORE ACCESS ROAD PURPOSES. 

 
 

PARCEL DESCRIPTION
  READYMIX 30.00 FEET WIDE ACCESS EASEMENT    
    

        A PORTION OF THE NORTH HALF (N 1/2) OF SECTION 11, TOWNSHIP 22 SOUTH, RANGE 62 EAST, M.D.M., CLARK COUNTY, NEVADA, BEING A STRIP OF LAND 30 FEET IN
WIDTH, LYING 15 FEET ON BOTH SIDES OF THE FOLLOWING DESCRIBED CENTERLINE: 

        COMMENCING
AT THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER (NE 1/4) OF SAID SECTION 11; THENCE SOUTH 88°49'22" WEST, ALONG THE SOUTH LINE THEREOF, 2116.20
FEET; THENCE NORTH 01°02'02" WEST, DEPARTING SAID SOUTH LINE, 23.04 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING NORTH
01°02'02" WEST, 189.84 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 150.00 FEET; THENCE ALONG SAID CURVE TO THE LEFT THROUGH A CENTRAL ANGLE OF
90°00'00" AN ARC LENGTH OF 235.62 FEET; THENCE SOUTH 88°57'58" WEST, 174.14 FEET TO THE POINT OF TERMINUS.

        THE
SIDELINES OF SAID 30.00 FEET WIDE EASEMENT TO BE EXTENDED OR SHORTENED SO AS TO BEGIN AT RIGHT ANGLES WITH THE SOUTHERLY TANGENT
(NORTH 01°02'02" WEST), MEET AT ANGLE POINTS AND TERMINATE AT RIGHT ANGLES WITH THE NORTHERLY TANGENT (SOUTH 88°57'58" WEST). 

        CONTAINING
19,488 SQUARE FEET (0.45 ACRES), MORE OR LESS, AS DETERMINED BY COMPUTER METHODS. 

BASIS OF BEARINGS  

        THE BASIS OF BEARINGS FOR THIS PARCEL DESCRIPTION IS GRID NORTH AS DEFINED BY THE NEVADA COORDINATE SYSTEM OF 1983 (NC83) EAST ZONE (2701). 

EXHIBIT "C"  

EXHIBIT "A"  

EXHIBIT TO ACCOMPANY LEGAL DESCRIPTION

BLACK MOUNTAIN INDUSTRIAL CENTER
  A PORTION OF THE NORTH HALF (N 1/2) OF SECTION 11,

TOWNSHIP 22 SOUTH, RANGE 62 EAST, M.D.M., CLARK COUNTY, NEVADA 

LINE TABLE  

	No.
 
	 	BEARING
	 	DISTANCE

	L1	 	N01°02'02"W	 	23.04'

CURVE TABLE  

	CURVE
 
	 	RADIUS
	 	DELTA
	 	LENGTH
	 	TANGENT

	C1	 	150.00	 	90°00'00"	 	235.62'	 	150.00'

[GRAPHIC]

CONTAINING
19,488 SQUARE FEET, 0.45 ACRES. 

EXHIBIT "A"  

EXPLANATION:  

        THIS LEGAL DESCRIBES A PARCEL OF LAND LOCATED EAST OF U.S. HIGHWAY 95 AND SOUTH OF WARM SPRINGS ROAD. 

LEGAL DESCRIPTION

GROUND LEASE  

        BEING A PORTION OF THE EAST HALF (E 1/2) OF SECTION 11, TOWNSHIP 22 SOUTH, RANGE 62 EAST, M.D.M., CLARK COUNTY, NEVADA, MORE PARTICULARLY DESCRIBED
AS FOLLOWS: 

        COMMENCING
AT THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER (NE 1/4) OF SAID SECTION 11; THENCE SOUTH 88°49'22" WEST, ALONG THE SOUTH LINE THEREOF, 1493.41
FEET; THENCE NORTH 20°09'11" EAST, DEPARTING SAID SOUTH LINE, 1.74 FEET TO THE POINT OF BEGINNING; THENCE SOUTH 88°57'58" WEST,
705.17 FEET; THENCE NORTH 01°02'02" WEST,
50.00 FEET; THENCE NORTH 88°57'58" EAST, 724.55 FEET; THENCE SOUTH 20°09'11" WEST, 53.62 FEET TO THE POINT OF BEGINNING. 

        CONTAINING
35,743 SQUARE FEET (0.82 ACRES), MORE OR LESS, AS DETERMINED BY COMPUTER METHODS. 

BASIS OF BEARINGS  

        THE BASIS OF BEARINGS FOR THIS LEGAL DESCRIPTION IS GRID NORTH AS DEFINED BY THE NEVADA COORDINATE SYSTEM OF 1983 (NC83) EAST ZONE (2701). 

EXHIBIT "A"  

[PROFESSIONAL
LAND SURVEYOR—STATE OF NEVADA NO. 12063 SEAL]

TYRONE L. HICKS

11/8/00 

EXHIBIT "A"  

EXHIBIT TO ACCOMPANY LEGAL DESCRIPTION

BLACK MOUNTAIN INDUSTRIAL CENTER
  A PORTION OF THE EAST HALF (E 1/2) OF SECTION 11,

TOWNSHIP 22 SOUTH, RANGE 62 EAST, M.D.M., CLARK COUNTY, NEVADA 

LINE TABLE  

	No.
 
	 	BEARING
	 	DISTANCE

	L1	 	N20°09'11"E	 	1.74'
	L2	 	N01°02'02"W	 	50.00'
	L3	 	S20°09'11"W	 	53.62'

[GRAPHIC]

CONTAINING
37,743 SQUARE FEET,

0.82 ACRES. 

 
 

SITE PLAN SHOWING PROCESSING SITE    
    

[GRAPHIC] 

 
 

DATE (MM/DD/YY)
  7/31/00    
    

ACORDTM CERTIFICATE OF LIABILITY INSURANCE  

	PRODUCER

Aon Risk Services, Inc. of

Southern California

695 Town Center Drive, Ste 500

Costa Mesa, CA 92626

714-641-8355	 	THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.

	 	 	COMPANIES AFFORDING COVERAGE

	 	 	COMPANY

A	 	TIG Insurance Company
	

	INSURED

Ready Mix	 	COMPANY

B	 	 
	3430 E. Flamingo, #100	 	

	Las Vegas, NV 89121-5018	 	COMPANY

C	 	 
	 	 	

	 	 	COMPANY

D	 	 
	

COVERAGES  

THIS
IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY
CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND
CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. 

	CO

LTR
 
	TYPE OF INSURANCE
 
	POLICY NUMBER
 
	POLICY EFFECTIVE

DATE (MM/DD/YY)
 
	POLICY EXPIRATION

DATE (MM/DD/YY)
 
	LIMITS
 

	

	 	GENERAL LIABILITY	 	 	 	GENERAL AGGREGATE	 	$	2000000
	 	 	 	 	 	
	 	

	A	/x/ COMMERCIAL GENERAL LIABILITY	T6-38813622	4/01/00	4/01/01	PRODUCTS—COMP/OP AGG	 	$	1000000
	 	 	 	 	 	
	 	

	 	/ /    / / CLAIMS MADE

/x/ OCCUR	 	 	 	PERSONAL & ADV INJURY	 	$	1000000
	 	 	 	 	 	
	 	

	 	/ / OWNER'S & CONTRACTOR'S PROT	 	 	 	EACH OCCURRENCE	 	$	1000000
	 	 	 	 	 	
	 	

	 	/x/ Nevada Stop Gap	 	 	 	FIRE DAMAGE (Any one fire)	 	$	50000
	 	
	 	 	 	
	 	

	 	/ / Coverage Incl	 	 	 	MED EXP (Any one person)	 	$	5000
	

	 	AUTOMOBILE LIABILITY

    	 	 	 	 	 	 	 
	A	/x/ ANY AUTO	T6-38813622	4/01/00	4/01/01	COMBINED SINGLE LIMIT	 	$	1000000
	 	 	 	 	 	
	 	

	 	/ / ALL OWNED AUTOS	 	 	 	BODILY INJURY (Per person)	 	$	 
	 	 	 	 	 	
	 	

	 	/ / SCHEDULED AUTOS

    	 	 	 	BODILY INJURY (Per accident)	 	$	 
	 	 	 	 	 	
	 	

	 	/x/ HIRED AUTOS	 	 	 	PROPERTY DAMAGE	 	$	 
	 	 	 	 	 	
	 	

	 	/x/ NON-OWNED AUTOS

    	 	 	 	 	 	 	 
	 	    	 	 	 	 	 	 	 
	 	/x/ $2,500 Ded Comp	 	 	 	 	 	 	 
	 	
	 	 	 	 	 	 	 
	 	/x/ $2,500 Ded Coll	 	 	 	 	 	 	 
	

	 	GARAGE LIABILITY	 	 	 	AUTO ONLY—EA ACCIDENT	 	$	 
	 	 	 	 	 	
	 	

	 	/ / ANY AUTO	 	 	 	OTHER THAN AUTO ONLY:	 	 	 
	 	 	 	 	 	
	 	

	 	/ /	 	 	 	EACH ACCIDENT	 	$	 
	 	
	 	 	 	
	 	

	 	/ /	 	 	 	AGGREGATE	 	$	 
	

	 	EXCESS LIABILITY	 	 	 	EACH OCCURENCE	 	$	 
	 	 	 	 	 	
	 	

	 	/ / UMBRELLA FORM	 	 	 	AGGREGATE	 	$	 
	 	 	 	 	 	
	 	

	 	/ / OTHER THAN UMBRELLA FORM	 	 	 	 	 	$	 
	

	 	WORKERS COMPENSATION AND EMPLOYERS' LIABILITY	 	 	/ / WC STATUTORY LIMITS / / OTHER	 	 	 
	 	 	 	 	 	
	 	

	 	 	 	 	 	EL EACH ACCIDENT	 	$	 
	 	 	 	 	 	
	 	

	 	THE PROPRIETOR/ / / INCL	 	 	 	EL DISEASE—POLICY LIMIT	 	$	 
	 	 	 	 	 	
	 	

	 	PARTNERS/EXECUTIVE OFFICERS ARE: / / EXCL	 	 	 	EL DISEASE—EA EMPLOYEE	 	$	 
	

	 	OTHER

    	 	 	 	 	 	 	 
	

DESCRIPTION
OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS 

        Sand
pit at Warm Springs & Gibson Road, Henderson, NV 

        See
Endorsement(s) Attached. 

	CERTIFICATE HOLDER
 
	 	CANCELLATION
 

	The Landwell Company, L.P. 03

875 W. Warm Springs

Henderson, NV 89015

  

ATTN: MARK VAN STEENHUYSE	 	SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,

	 	/s/  PHYLLIS SMEAD      
	 	

	 	AUTHORIZED REPRESENTATIVE	 	SIS4930000

ACORD
25-S (1/95) 

	POLICY NUMBER: T6-38813622	 	COMMERCIAL GENERA LIABILITY

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY 

ADDITIONAL INSURED—OWNERS, LESSEES OR CONTRACTORS (FORM B)  

 (Including "Primary" Wording)  

This endorsement modifies insurance provided under the following: 

COMMERCIAL
GENERAL LIABILITY COVERAGE PART 

SCHEDULE  

 Name of Person or Organization:  

        The Landwell Company, L.P.  

	Re:
	 Sandpit at Warm Springs & Gibson Road, Henderson, NV  

(If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) 

WHO
IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of or related to "your work"
or its supervision for that insured by or for you. 

PRIMARY INSURANCE: It is agreed that such insurance as afforded by this policy for the benefit of the additional insured shall be primary insurance as
respects any claim, loss or liability arising directly or indirectly from the insured's operations and any other insurance maintained by the additional insured shall be non-contributory
with the insurance provided hereunder.

	

    	
 	

 
	

    	
 	

 
	Al-Primary	 	CG2010p(11-85)

FIRST AMENDMENT TO LEASE  

        This First Amendment to Lease ("First Amendment") is made and
entered into as of the 20th day of November 2003, by and between The LandWell Company, L.P., a Delaware limited partnership  ("Landlord"), and
Ready Mix, Inc., a Nevada corporation  ("Tenant"). 

RECITALS  

        A.    The
parties hereto have entered into that certain Ground Lease dated as of November 21, 2000 (the  "Lease") for premises located in an
industrial park known as the Black Mountain Industrial Center, all
as more particularly described therein. All terms defined in the Lease shall have the same meanings when used in this Agreement, unless a different meaning is clearly expressed herein. 

        B.    The
parties have agreed to relocate the Premises and to otherwise amend the Lease as set forth herein. 

        In
consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows: 

ARTICLE 1

AMENDMENT  

        1.1    Premises.    Beginning on November 1, 2003 (the  "Effective
Date"), the Premises shall mean that certain parcel of property which is described on
Exhibit "A" attached hereto and incorporated herein by this reference, consisting of approximately 4.21 acres. Landlord has disclosed to Tenant that the relocated Premises have previously been
used for industrial purposes and Tenant acknowledges that it has investigated such prior use and has satisfied itself as to the condition of the Premises. 

        1.2    Basic Rent.    Beginning on the Effective Date, the Basic Rent shall be adjusted to
Nine Thousand Dollars ($9,000) per month. 

        1.3    Term.    The Term is extended through November 30, 2005. Tenant may extend the
Term for one (1) additional eight (8) month period (the "Option Term") by giving Landlord
written notice not less than two (2) months before the expiration of the Term (such option to extend is sometimes hereinafter referred to as the  "Option"). All of the terms and conditions of the Lease, except this right to extend the Term, shall
apply to the Option Term so far as applicable, and reference in the Lease to the "Term" shall be deemed to include the Option Term. The Option shall not be available to any subsequent assignee,
subtenant or other transferee of the original Tenant. Upon the expiration of the Option Term, Landlord and Tenant may mutually agree to continue this Lease on a month-to-month
basis. 

        1.4    Rights of Termination.    Tenant shall have the right to terminate the Lease at any
time by giving Landlord written notice of termination at least six months prior to the effective date of termination. In addition, Landlord and Tenant shall each have the right to terminate the Lease
at any time during the Option Term by giving the other party written notice of termination at least thirty (30) days prior to the effective date of termination. 

        1.5    Permitted Use.    Landlord and Tenant acknowledge that the Premises may be used only
for the Permitted Use and for no other purpose without the prior written consent of Landlord, which consent may denied in Landlord's sole discretion. 

        1.6    Access.    Ingress and egress to and from the Premises shall be via the designated
right of way located immediately to the west of the Premises, connecting to Commercial Way, Eastgate Road and Warm Springs Road. In addition, Tenant may cross Landlord's property located immediately
to the southwest of the Premises to access Eastgate Road. Tenant may pave either or both of such access routes, but Tenant shall take such action as may be required to comply with all local
governmental requirements, including air quality requirements, which apply to Tenant's use of the Premises and such 

access
routes. Landlord may terminate Tenant's right to use either or both of such access routes, so long as Landlord provides a reasonable replacement access route for Tenant's use. 

        1.7    Water Lines.    Tenant has installed a temporary water line across property which is
now owned by third parties. Not later than December 31, 2003, Tenant shall, at Tenant's cost, move that temporary water line to Landlord's property which is now planned for future right of way.
Tenant will coordinate the location of that relocated water line with Landlord. 

        1.8.    Caliche Boulders and Fence.    Within thirty days after notice from Landlord, Tenant
shall, at Tenant's cost, move the caliche boulders which are now located upon the premises originally demised under the Lease to property which is reasonable close to the relocated Premises, as
designated by Landlord. In addition, Tenant shall also relocate the existing fence from the original premises to the property line which separates the relocated Premises from Landlord's property
immediately to the north. Landlord shall have its civil engineer set stakes to designate the new location of such fence, and Tenant shall relocate the fence within thirty (30) days after notice
from Landlord that such stakes have been set. 

        1.9    Continued Use of Original Premises.    Tenant may continue to use the premises
originally demised under the Lease for the storage of equipment but for no other purpose. Such use shall continue to be subject to all of the terms and conditions of the Lease, including, without
limitation, Article 5 (insurance) and Section 11.5 (indemnity). Landlord shall have the right to terminate Tenant's right to use the originally demised premises at any time by giving
Tenant written notice of termination at least ninety (90) days prior to the effective date of termination. 

 
 

ARTICLE 2
  Miscellaneous.    
    

        2.1    Confirmation of Lease.    Except as specifically amended or modified herein, the Lease
is hereby ratified and shall remain in full force and effect. 

        2.2    Successors and Assigns.    This Agreement shall be binding upon and inure to the
benefit of the parties hereto, their legal representatives, successors and permitted assigns. 

        2.3    Governing Law.    This instrument shall be interpreted and construed in accordance with
the law of the State of Nevada. 

        IN
WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date first above written. 

	 	 	LANDLORD:
	

 	
 	

THE LANDWELL COMPANY, L.P.

a Delaware limited partnership
	

 	
 	

By Basic Land Company
	 	 	 	a Nevada corporation

its general partner
	

 	
 	

By:	

/s/  MARK PARIS      
 Mark Paris

President and Chief Executive Officer
	

 	
 	
TENANT:
	

 	
 	

READY MIX, INC.
	 	 	 	a Nevada corporation
	

 	
 	

By:	

/s/  ROBERT R. MORRIS      

	

 	
 	

Its:	

President

[PBSJ
LOGO] 

2270 Corporate Circle, Suite 100

Henderson, Nevada 89074-6382

Telephone 702.263.7275

Fax 702.263.7200

www.pbsj.com 

 
 

LEGAL DESCRIPTION
  FOR READYMIX (BOC)    
    

        BEING A PORTION OF BLACK MOUNTAIN INDUSTRIAL CENTER GATES 8 & 9 PHASE II, A COMMERCIAL SUBDIVISION ON FILE IN THE OFFICE OF THE CLARK COUNTY RECORDER IN
BOOK 97 OF PLATS, PAGE 99, LOCATED IN SECTION 11, TOWNSHIP 22 SOUTH, RANGE 62 EAST, M.D.M., CLARK COUNTY, NEVADA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: 

        COMMENCING
AT THE NORTHEAST CORNER OF SAID SECTION 11; THENCE SOUTH 88°58'43" WEST, ALONG THE NORTH LINE OF SAID SECTION 11, A DISTANCE OF 1178.85 FEET; THENCE SOUTH
01°01'17" EAST, DEPARTING SAID NORTH LINE AND ALONG THE EAST BOUNDARY OF SAID COMMERCIAL SUBDIVISION, 1488.37 FEET; THENCE SOUTH 20°10'41" WEST, CONTINUING ALONG SAID EAST
BOUNDARY, 1181.73 FEET; THENCE SOUTH 20°04'46" WEST, CONTINUING ALONG SAID EAST BOUNDARY, 138.71 FEET TO THE POINT OF BEGINNING; THENCE
CONTINUING SOUTH 20°04'46" WEST, 623.72 FEET; THENCE SOUTH 89°30'29" WEST, 272.68 FEET; THENCE NORTH 12°31'58" EAST, 529.54 FEET TO THE BEGINNING OF A TANGENT CURVE
CONCAVE WESTERLY HAVING A RADIUS OF 275.00 FEET; THENCE ALONG SAID CURVE TO THE LEFT THROUGH A CENTRAL ANGLE OF 13°34'00", AN ARC LENGTH OF 65.11 FEET; THENCE NORTH 88°57'58"
EAST, 365.45 FEET TO THE POINT OF BEGINNING. 

        CONTAINING
183,347 SQUARE FEET (4.21 ACRES), MORE OR LESS, AS DETERMINED BY COMPUTER METHODS. 

BASIS OF BEARINGS  

        NORTH 89°00'41" EAST—BEING THE NORTH LINE OF THE NORTHWEST QUARTER (NW 1/4) OF SECTION 11, TOWNSHIP 22 SOUTH, RANGE 62 EAST, M.D.M., CLARK
COUNTY, NEVADA AS SHOWN BY A MAP ON FILE IN THE OFFICE OF THE CLARK COUNTY RECORDER IN BOOK 82, PAGE 71 OF PLATS, OFFICIAL RECORDS. 

[PROFESSIONAL
LAND SURVEYORS STATE OF GEORGIA SEAL] 

 
 

EXHIBIT TO ACCOMPANY LEGAL DESCRIPTION
  BLACK MOUNTAIN INDUSTRIAL CENTER    
    

[GRAPHIC]

QuickLinks

Exhibit 10.9

GROUND LEASE

EXHIBIT "A" LEGAL DESCRIPTION OF PROCESSING SITE

EXHIBIT "A"

PARCEL DESCRIPTION READYMIX 30.00 FEET WIDE ACCESS EASEMENT

SITE PLAN SHOWING PROCESSING SITE

DATE (MM/DD/YY) 7/31/00

ARTICLE 2 Miscellaneous.

LEGAL DESCRIPTION FOR READYMIX (BOC)

EXHIBIT TO ACCOMPANY LEGAL DESCRIPTION BLACK MOUNTAIN INDUSTRIAL CENTER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]