DUPLICATE ORIGINAL- LESSEE COPY
LEASE OF PROPERTY
THIS LEASE (“Lease”) is entered into on the 27th day of May, 2005, between UNION
PACIFIC RAILROAD COMPANY (“Lessor”) and CXT INCORPORATED, a Delaware
corporation, whose address is 2420- North Pioneer Lane, Spokane, WA 99216 (“Lessee”).
IT IS AGREED BETWEEN THE PARTIES AS FOLLOWS:
Article I. PREMISES; USE.
Lessor leases to Lessee and Lessee leases from Lessor the premises (“Premises”) at
Tucson, Arizona , shown on the print dated May 27, 2005 marked Exhibit A, hereto attached and
made a part hereof, subject to the provisions of this Lease and of Exhibit B attached hereto and
made a part hereof. The Premises may be used for manufacture of concrete ties for the Lessor’s
use, and such other uses as may be permitted in the Agreement referred to in Article II of this lease,
only, and for no other purpose.
Article II. TERM.
A. The term of this Lease shall commence on January 1, 2005, and, unless sooner terminated
as provided in this lease, shall be co-terminus with the term of the Purchase Agreement between
Lessor and CXT dated January 21, 2005, which covers the manufacture and production of
concrete rail ties for Lessor (“the CXT Tie Agreement”). Upon expiration or termination howsoever
of the CXT Tie Agreement, this Lease shall also terminate upon the effective date of expiration or
termination of the CXT Tie Agreement.
Article III. RENT.
A. Lessee shall pay to Lessor, in advance, rent of Sixteen Thousand Eighty Dollars ($16,080.00)
annually. The rent shall be increased by Three Percent (3%) annually cumulative and compounded.
Article IV. SPECIAL PROVISION — ROADWAY (NON-EXCLUSIVE).
Subject to the terms and conditions of this Lease, Lessee may construct, use and maintain the
roadway shown on the attached exhibit print, provided that:
A. The roadway is to be strictly private and not intended for, and may not be used for, public