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, Washington 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 Grand
Island, Nebraska, shown on the print dated November 16, 2004, 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, and for no other purpose.
Article II. TERM.
A. The term of this Lease shall commence as of January 01, 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 Five Hundred Thirty Six
Dollars ($16,536.00) 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
B. The use of t