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LEASE OF PROPERTY THIS LEASE is made by and between Cass County, North Dakota (hereinafter "County") and Mark Sand & Gravel Company, PO Box 458, Fergus Falls, MN (hereinafter "Lessee"). THE PAR11ES HEREBY COVENANT AND AGREE AS FOLLOWS: 1. Prooertv: The County hereby offers to lease, the County owned gravel unloading facility located in section 32 of Durbin Township. The lease shall include use of the conveyor mounted under the unloading area. 2. 2. Term: The term of this lease shan commence on Novembcr 6, 2007 and expire at midnight on December 31, 2007. 3. Rent: Rent shall be $500 dollars for each trainload of gravel unloaded at the facility. Payable for each month not later than the 10\h of the month following the facility use to the County by and through the Cass County Highway Department at 1201 Main Avenue West, West Fargo ND 58078. 4. Use: The property shall only be used for purposes of unloading gravel from rail cars and short term staging of the gravel unloaded from rail cars. All material shall be removed from the site by the end of the lease period unless the lease is extended by mutual consent of the parties. Furthennore, the property shall not be used for, among other purposes, building any kind of structure; disposal of any kind of materials, whether hazardous or not. The determination of compliance with these limitations on use of the property shall be at the County's sole discretion. The lessee is responsible to restore the property and adjacent township access road as good of condition as it was at the start of the lease. This includes but is not limited to any reshaping of the site to maintain drainage and addition of gravel as needed to the access road and site. 5. Delivery of Possession: Lessee acknowledges that Lessee has inspected the property and accepts it as suitable for the purpose and use described in this Lease and that the property then complies with the use limitations. 6. Insurance: At all times during the term of this Lease, Lessee shall maintain at Lessee's sole expense, public liability and property damage liability insurance in an amount not less than $500,000. Lessee shall deliver to County a copy of the certificate of insurance prior to the commencement, and renewal if applicable, of this Lease. County makes no representation that the limits of liability specified herein are adequate to protect Lessee. 7. Indemnification: County shall not be liable for any damage to Lessee, or any other person, or to any property, occurring on the premises or any part thereoC unless such damage is the proximate result of the negligence of an unlawful act of the County. Lessee agrees to hold the County harmless from any claims for damages occurring on the property, no matter how caused, except for injury damages tor which County is legally responsible. Page 1 of 3