CIV214702 Sulphur Mountain/Gaggero v Redmonds Relevant Case Record 5

Nov-24-01 11:11AM;
101;
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FACSIMILE COVER PAGE
DATE: 11.24.01
John Redmond
TO:
FAX NO: 310.396.2554
FROM: Steve Gaggero
RE: Lease
Thank You,
Steve
ORIGINAL WILL NOT FOLLOW IN MAIL
001527
COMMENTS: Here are the Redlined changes we discussed yesterday and my attempt at cleaning
up the conflicts and confusion over the term “Term5’. I have made some other changes and
modifications which I feel clear up a few other issues and potential ambiguities. As before, you
may want to run these changes by your attorney. We will not deposit your checks until we are in
full agreement and the lease is fully executed. Please feel free to call me with any questions or
comments over the weekend or next week. I will fax or mail you the final for signatures when we
are all in agreement.
NUMBER OF PAGES FAXED (INCLUDING COVER PAGE): 14
IF YOU DO NOT RECEIVE ALL PAGES, PLEASE CALL (805) 643-6093 IMMEDIATELY.
PACIFIC COAST MANAGEMENT, INC.
Post Office Box 25070
Ventura, California 93002
Phone (805) 643-6093
Fax (805) 643-6094
Page 1
CONFIDENTIALITY NOTE: The information contained in this fax may be legally privileged and/or
confidential. It is intended only for the eyes and use ofthe individual or entity named above. Ifthe reader ofthis
message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying ofthis
fax is strictly prohibited. Ifyou have received this fax in error, please notify us immediately by telephone; call
collect ifnecessary. Thank you for your cooperation.

101 ;
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Equestrian Facility Lease
001528
1. Use
Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the approximately 30 acre equestrian
facility located in Ventura County, on Canada Larga Road, a dwelling unit more fully described herein below, the
use from time to time of portions of the ranch within which the equestrian facility exists as more fully described
and conditioned herein below as designated areas and restricted areas, all collectively referred to herein as the
facility ("Facility"). Tenant shall utilize the Facility exclusively for the purpose of boarding and training horses, and
related purposes.
5. Rent
During the Lease Term, or any extension thereof (subject to any modified Lease terms and conditions pursuant to
Article 3 herein above for any Option Periods, including modified rent terms and conditions) Tenant shall pay to
Landlord the greater of $83,500 (“Minimum Rent") or $100,000 plus fifty percent of all net income from any
revenue generating activities (“RGA") over $100,000. RGA shall include but not be limited to, equestrian events,
4. Holding Over
Tenant shall vacate the Facility upon the expiration or earlier termination of this Lease. If Tenant fails to vacate
the Facility within thirty (30) days after notice from Landlord of the expiration or earlier termination of this Lease,
Tenant shall reimburse Landlord for and indemnify Landlord against all damages which Landlord incurs from
Tenant's delay in vacating the Property. If Tenant does not vacate the Facility upon the expiration or earlier
termination of this Lease and Landlord thereafter accepts rents from Tenant, Tenant's occupancy of the Facility
shall be a "month-to-month" tenancy, subject to all of the terms of this Lease applicable to a month-to-month
tenancy, except that the Minimum Rent then in effect shall be increased by fifty percent (50%).
3. Term
Unless extended pursuant to the terms and conditions in this Article 3, The-the term of this agreement (“Lease |
Term") shall be twelve months, commencing January 1, 2002 (“Commencement Date"), and terminating
December 31, 2002 (“Termination Date"). Tenant shall have three, three-year options ("Option Penod(s)") to
extend the Lease..Term, subject to mutually agreed upon modifications to the terms and conditions contained in
this Lease, as may be determined to be necessary from time to time during the Lease Term by Landlord arid
Tenant. Between sixty and ninety days prior to the Termination Date, Landlord shall provide Tenant with any new
or modified Lease terms and conditions. Tenant shall have thirty days to accept the new or modified Lease terms
and conditions and extend the lease-Lease Term for three years, or elect to terminate the Lease on the
Termination Date. Upon execution of this Lease and payment of the security deposit. Tenant shall have use of the
equestrian facility at no charge until the Commencement Date.
This Equestrian facility Lease ("Lease") is entered into this — -23 day of November, 2001, by and between |
Sulphur Mountain Land and Livestock Co., LLC (Landlord) and Somerset, LLC (Tenant), and John A. Redmond,
Maureen C. Redmond and Geraldine Redmond (Guarantors) on the following terms and conditions:
2. Housing
Included in this lease shall be a two bedroom dwelling unit for Geraldine Redmond and her immediate family
("Dwelling"). The Dwelling shall initially be located within the duplex known as the Bunkhouse approximately one
mile west of the facility. Landlord reserves the right to provide a different Dwelling, in a different location, from
time to time at landlord's discretion. Tenant shall have the right at Tenants expense, to install a prefabricated
housing unit within the Facility for Geraldine’s use, provided the location is mutually agreed upon between tenant
and landlord. Tenant shall be responsible for the cost of all utilities, maintenance, repair, replacements etc. within
and surrounding the Dwelling. Tenant shall be billed for Tenants proportionate share of electricity used in the
Bunkhouse Dwelling. The amount per hour or kilowatt charged to tenant shall be the same amount charged to
any other user and may vary from time to time depending on the post of fuel, service, maintenance and repair of
the generator. If Tenant's Dwelling is changed by Landlord or by Tenant, and the new Dwelling has a dedicated
generator or uses the generator at the equestrian facility, Tenant shall be responsible for all generator costs,
including fuel, oil, regular maintenance, repair and replacement.
Nov-24-01 11:11AM;

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6. Utilities
Tenant shall be responsible for all utilities at the Facility. Propane and diesel service shall be put in Tenants name
at the Facility and Propane service shall be put in Tenants name for the tank that services the Dwelling. Tenant
acknowledges the propane tank and diesel tank at the Facility are full and in perfect working order, free of leaks
and spills, as of the execution of this Lease, and the propane servicing the Dwelling is in perfect working order,
free of leaks and spills and will be full at the time Tenant takes occupancy. Tenant agrees to deliver all tanks full
at the end of the Lease Term or any extension thereof. Tenant further agrees to maintain the tanks and abide by
any and all regulations effecting the use or storage of propane and diesel fuel. Tenant shall be solely responsible
for any requirements from any government agency regarding the tanks and use of the propane and diesel. Tenant
shall indemnify and hold Landlord harmless for any contamination or hazardous material cleanup resulting from
the storage or use of propane and diesel fuel. Tenant is hereby advised that the water to the Dwelling and the
Facility may not be potable from time to time, and Tenant agrees to use the water at Tenants own risk, or
purchase bottled water.
Tenant shall provide Landlord with detailed income and expense reports, deposit receipts and check registers on
a monthly basis, showing in detail, all income and expense for the operation of the Facility. Tenant shall also
provide Landlord on a monthly basis income and expense reports, deposit receipts and check registers for
Geraldine’s training and personal equine and other animal related expenses. Landlord shall have the right to
request additional reports, different formats and backup documentation form time to time, at Landlords discretion.
Geraldine Redmond, a member of Tenant, shall train certain horses that will be boarded at the Facility from time
to time. Any training income paid to tenant or Geraldine for Geraldine’s direct training shall be divided ninety
percent Tenant, ten percent Landlord. Landlords portion shall be paid to Landlord monthly, along with other RGA
and shall be included in the GP calculation at the end of the lease term. Tenants portion of Geraldine’s training
income shall not be included in the GP calculation. When determining the net revenue from any RGA, other than
stabling and pasturing, only the actual costs ("Cost") for outside services and materials, which were specifically
incurred for the specific RGA shall be deducted from the gross revenue, there shall be no deduction for general
expenses, salaries or compensation of any nature to Tenant or Tenant's members or employees. When
determining net revenue for stabling, Tenants Cost shall be $150.00 ("Stabling Cost’), per stall, which amount
shall include all labor, feed, shavings and any other cost associated with stabling and board. Notwithstanding the
foregoing, after-ninety days after the Commencement Dale, Landlord and Tenant shall meet and review the books
and records of the operation, if it is determined that the actual cost of stabling is materially different than $150.00
per stall, Tenant and Landlord shall review the-asfuaJ-sosis-and-adjust the Stabling Cost up or down accordingly.
The revised Stabling Cost shall then be in effect until the end of the LeaseTerm. Tenant shall only deduct Stabling
Cost from the gross stabling revenue, for each stall that is occupied with a paying clients horse. When
determining the net revenue for pasturing, Tenant shall deduct only the Cost of any supplemental feed from any
pastured horse of any paying client. There shall be no Stabling Cost or Cost deductions for any stall or horse in
pasture that is not generating revenue in excess of Cost. When determining short-term rentals net income, it will
be on revenue less Cost basis.
clinics, group activities, trainer fees, blanketing, hot walking, turnouts, pasturing, board, stabling, feed, supplies,
etc. Minimum Rent shall be paid monthly, on the first of every month, commencing January 1, 2002, according to
the monthly minimum rent schedule attached hereto as exhibit "A”, plus ninety percent of any and all net revenue
received from any RGA. Within thirty days following the Termination Date of this Lease, or, if extended, no later
than January 31st, of each year. Tenant shall provide an accounting to Landlord showing the total amount of
funds paid to Landlord and the total amount retained by Tenant during the Term prior twelve month period ending
December 31al ('TMP'). In the event the total amount paid to Landlord exceeds $100,000 for the Tew,TMP. the
remaining balance after deducting $100,000 shall be added to the amount retained by Tenant during the -Term
TMP and that amount shall be the gross profit ("GP”) and shall be divided fifty-fifty between Tenant and Landlord.
Landlord shall pay Tenant the difference between the amount retained by Tenant during the Term-TMP and fifty
percent of the GP within 10 days of receiving the accounting from Tenant and Landlords approval of same. In the
event the combined total of the Minimum Rent and the RGA paid to Landlord at any time during the Term- TMP
exceeds $100,000, Tenant shall be entitled to receive fifty percent of the GP pursuant to the formula herein
above. Thereafter, Tenant shall retain fifty percent of the RGA and pay landlord fifty percent of the RGA. monthly,
in lieu of the Minimum Rent and the ninety percent of the RGA, until the end of the T-ermTMP. In the event
Minimum Rent is not received by Landlord on or before the 10lh of any month, a late fee of five percent shall
become due and payable and added to the rent then due.

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Nov-24-01 11:13AM;
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8. Cancellation
At any time during the Lease Term--of-mi-s-Lease, or any extension thereof. Landlord may, at Landlords sole
discretion, terminate this Lease by giving a minimum of one hundred eighty (180) days written notice to Tenant of
Landlords election to terminate. Provided the Facility is left in good condition and there are no amounts due
Landlord, within ten days of Tenant vacating the facility, Landlord shall refund any and all deposits being held by
Landlord and Landlord shall pay to Tenant a cancellation fee calculated as follows: The GP for the prior twelve-
month-period TMP, divided by two, divided by twelve, times the months remaining on the Lease Term then in
effect (not including any unexercised ootlon-Option periodsPeriods), times .25, plus a percentage of the total cost
for any capital improvements paid for by Tenant out of Tenants funds, which percentage shall be calculated by
using the following formula: The capital expenditure amount, divided by the number of months remaining on the
Lease Term then in effect (not including any unexercised eptien-Option periodsPenods) as of the date of the
capital expenditure, times the remaining months of the Lease Term then in effect ( not including any unexercised
Option Periodsfas of the move out date.
10. Rules and Regulations
Tenant shall prepare, for Landlords approval, posting, and for distribution to all TC's, rules and regulations
(“R&R"), for the use of, and proper conduct at the Facility, including hours of operation. Landlord shall have the
unilateral right to reasonably modify, or supplement the R&R at any time, for any reason at Landlords sole
discretion. Tenant shall insure that all TC's obey the R&R or Tenant shall promptly evict them from the Facility
with no ability to re-enter for any reason. Landlord shall have the right to require Tenant to evict any TC for any
reason at Landlords sole discretion. Tenant shall include in the rules and regulations a warning and instructions
not to drink the water from any tap or hose as the water may not be potable from time to time, and Tenant shall
place signs at all faucet locations in Spanish and English explaining the water may not be potable and warning
TC's not to drink It.
9. Designated Areas
Tenant and all of Tenants members, clients, boarders, employees, agents, affiliates etc. (“TC”) shall only use the
designated areas ("DA”) as set forth on Exhibit “B” attached hereto. Tenant and TC shall not be permitted to use,
ride, walk, drive or enter upon any other area not specifically identified on Exhibit B, for any reason whatsoever.
Any area not designated on Exhibit B shall be considered a restricted area ("RA”). At Tenants sole expense.
Tenant shall place signage in appropriate locations, prepare and pass out rules, regulations and maps as
necessary to insure there is no trespassing on any RA. Any trespassing by any TC without express written
permission from Landlord shall be considered a material breach of this lease. In the event any TC is found
trespassing on any restricted area, Landlord shall send a written trespass notice to Tenant ("Trespass Notice”)
specifying the date, approximate time and location of the trespass event, along with the trespassers general
description and name (if obtainable from trespasser). Immediately upon receipt of a Trespass Notice, Tenant
shall investigate the trespassing event and interview the trespasser if he or she is known to Tenant, or interview
the person who was responsible for inviting the trespasser, if the trespasser is not known to Tenant. After the
investigation and interview, Tenant shall make a determination whether to evict the trespasser, or person
responsible for the trespass event or implement some other action, which will preclude future trespass events.
Tenant shall furnish Landlord with a written report on the investigation and mitigation action taken within three
days of the TresoasTrespass Notice. If more than four Trespass Notices are given to Tenant in any three-month
period, Landlord may deem it an Incurable Breach, at Landlords sole discretion. If Tenant desires to use portions
of the RA for an RGA, express written permission must be obtained from Landlord prior to any use.
7. Security Deposit
Upon execution of the Lease Tenant shall pay Landlord the sum of $16,000 as a security deposit, to insure
Tenants performance under the Lease. At any time during the Lease Term, or any extention thereof. Landlord
may deduct amounts from the security deposit if Tenant fails to perform any requirement of the Lease. Thereafter,
Tenant shall replenish the security deposit, or any portion thereof, upon written demand by Landlord. Provided the
Facility and all associated equipment is in good condition and working order, and that there are no sums
outstanding or due to Landlord, within thirty days after the termination date or any extension thereof, Landlord
shall refund the security deposit to Tenant. In the event the Facility, Dwelling, or any portion thereof, or any
associated equipment is not in good condition or needs repair (reasonable wear and tear excepted) at the end of
the Lease Term or any extension thereof, Landlord shall keep the security deposit, repair or replace portions of
the Facility, Dwelling, or equipment as necessary, deduct the cost for the repair and replacement from the security
deposit, and return any unused portion to Tenant thereafter along with the bills for the repair or replacement. In
the event the cost of any repair or replacement exceeds the amount of the security deposit, Tenant shall promptly
pay Landlord the difference, upon presentation of the bills by Landlord to tenant.

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101 ; Nov-24-01 11:14AM;
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001531
14.
(a)
Alterations, Additions, and Improvements
Tenant shall not make any alterations, additions, or improvements to the Facility without Landlord's prior
written consent. Tenant shall promptly remove any alterations, additions or improvements constructed in violation
of this paragraph upon Landlord's written request. All alterations, additions, and improvements shall be done in a
good and workmanlike manner, in conformity with all applicable laws and regulations, and by a contractor
approved by Landlord. Upon completion of any such work, Tenant shall provide Landlord with "as built" plans,
copies of all construction contracts, and proof of payment for all labor and materials.
11. Cattle Lease
Tenant acknowledges the pasture lease on the surrounding ranch land, and the fact that
the pasture lessee has access to the cattle corrals, working chute, loading chute and scales within the Facility
(“Cattle Area"), and that use of the Cattle Area by the pasture lessee may inconvenience or effect the quiet
enjoyment of Tenant and TC's from time to time.
12. Hunting
Under no circumstances shall Tenant or any TC enter upon the DA or the RA with any firearm, bow, crossbow,
trap, or any other device, which could be used for hunting. Hunting is strictly prohibited! In the event Tenant or
any TC is found with a firearm, bow. crossbow, trap, or any other device, which could be used for hunting, other
than a handgun duly licensed by a government authority, it shall be considered an incurable breach of this lease.
Tenant further acknowledges Landlords right to hunt and conduct private hunts from time to time, and that hunting
by Landlord or Landlords invitees shall not be construed as a negative impact or an infringement of any kind upon
Tenants use and quiet enjoyment of the Facility. Tenant hereby leases the Facility knowing some TC's may be
opposed to, and offended by hunting, and that Landlords hunting activities may have a negative effect on Tenants
income and use of the Facility from time to time.
13, Maintenance and Repair
It is understood and agreed that Landlord is providing the Facility and dwelling unit in good condition, having
recently completed extensive remodeling on the dwelling unit, and recently completed extensive repairs and
refurbishing on all the barns, roads, staff house, arenas, footing, landscaping, equipment, etc. At all times during
the Term, Tenant shall maintain, at Tenants sole cost and expense, the Facility and all equipment and machinery
associated or used in conjunction with the Facility, including but not limited to interior and exterior painting, barns,
stalls, mats, barn, stall, and walkway footing, arena's and arena footing, roads, landscaping, trees, housing
(including all appliances, plumbing fixtures, flooring, roofing, cabinets, finishes, heating, etc.), bathrooms, water
system, Water distribution manifold, electrical system, phone lines, generator, fuel and propane tanks, Facility
tractor (old gray Ford), drags, harrows, lighting, fencing, gates, pastures, troughs, weed abatement, gopher
abatement, bridges, crossings, drainage devices, downspouts, sprinklers, signage, locks, trails, etc. in the same
or better condition as received by Tenant as of the execution of this Lease. On or before Desember January 1. I
2804-2002 Tenant shall videotape and deliver to Landlord along with a copy of the video tape, a list of all items |
that are not in proper working order or that are damaged or worn to such a degree that they should be exceptions
from Tenants responsibility to return everything in good condition and repair (“Exception List"). Anything not on
the Exception List shall be conclusively deemed as Tenants responsibility to maintain and return in good
condition. Landlord shall be responsible to maintain the main water system and to insure water up to the water
distribution manifold located at the Facility next to the hay barn. Landlord shall not be responsible for any fencing
(whether fences are ineffective, damaged by cattle or any other cause), roads, maintenance or repair of any kind,
in or around the Facility and DA. Landlord may inspect the Facility. DA, and Dwelling from time to time to insure
proper maintenance and repair. If in Landlords opinion any portion of the Facility, associated equipment or the
Dwelling are not being properly maintained, Landlord may give written notice to Tenant of the items found to be in
need of proper maintenance, repair or replacement. Tenant shall have ten days from the date of the notice to
correct the required maintenance, or complete the repairs or replacement. If Tenant fails to correct the
maintenance, or complete the repairs or replacement within the ten day period, Landlord shall have the right but
not the obligation to facilitate the maintenance, repairs, or replacement and bill Tenant for the cost of same, which
amount Tenant shall pay within 10 days of receiving the bill from Landlord. Failure to pay Landlord for any
maintenance, repairs or replacements within thirty days from the date of the bill shall be abe a material breach of |
this lease.
(b) Tenant shall pay when due all claims for labor and materials furnished to the Facility. Tenant shall give
Landlord at least ten days' prior written notice of the commencement of any work on the Facility, regardless of

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101; Nov-24-01 11:15AM;
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001532
whether Landlord's consent to such work is required,
responsibility on the Property.
Landlord may elect to record and post notices of non-
18. Insurance
Prior to moving any animals or property on to the Facility. Tenant shall provide Landlord with a certificate of
workers compensation insurance and general liability and property damage insurance in a form and with
coverage terms acceptable to Landlord, with minimum coverage for general liability and property damage
including fire liability, in an amount not less than $2,000.000 per claim, _naming Landlord, the Giganin Trust,
Joseph J. Praske, Trustee, Pacific Coast Management and Stephen Gaggero as additional insured’s. Such
insurance must be maintained at all times during the term of this lease. Said certificate shall specify on its face
that Landlord shall be notified by certified mail at least 60 days prior to any cancellation. Landlord reserves the
right to change the insurance requirements of this Lease from time to time as determined necessary in Landlords
sole discretion. In the event Tenants insurance is cancelled, not renewed, or there is a lapse in coverage, for any
reason, Landlord may purchase any insurance at Landlords sole discretion, necessary to protect Landlord and the
Facility and thereafter bill Tenant for the cost of same, which amount Tenant shall pay within 10 days of receiving
the bill from Landlord. Failure to pay Landlord for any insurance advance within thirty days from the date of the bill
from Landlord, shall be an incurable breach of this lease.
17. Indemnity
Tenant shall indemnify Landlord and Landlords agents, employees, managers, associates, and affiliates, etc.
against and hold Landlord and Landlords agents, employees, managers, associates, and affiliates, etc. harmless
from any and all costs, claims or liability arising from: (a) Tenant's use of the Facility; (b) the conduct of Tenants
business or anything else done or permitted by Tenant to be done in or about the Facility, including any
contamination of the Facility or any other property resulting from the presence or use of Hazardous Materials
caused or permitted by Tenant; (c) any breach or default in the performance of Tenant's obligations under this
Lease; (d) any misrepresentation or breach of warranty by Tenant under this Lease; or (e) other acts or omissions
of Tenant. Tenant shall defend Landlord against any such cost, claim or liability at Tenant's expense with counsel
reasonably acceptable to Landlord or, at Landlord's election, Tenant shall reimburse Landlord for any legal fees or
costs incurred by Landlord in connection with any such claim. As a material part of the consideration to Landlord,
Tenant assumes all risk of damage to property or injury to persons in or about the Facility arising from any cause,
and Tenant hereby waives all claims in respect thereof against Landlord, except for any claim arising out of
Landlord's gross negligence or willful misconduct Tenant shall be responsible for all safety issues at the facility,
and all permits or other requirements from any governmental body or agency. Tenant shall obtain releases from
any person engaging in any activity at the facility, whether actually riding a horse or not. As used in this Section,
the term "Tenant" shall include Tenant's employees, agents, contractors, sub tenants, boarders, trainers,
customers and Invitees, if applicable.
16. Reserved Rights
All rights other than those specifically conveyed in this agreement by Landlord to Tenant are reserved to
Landlord, Landlord shall not be required to provide or pay any expenses related to the Facility other than property
tax and Landlords insurance. Except for the Dwelling, Landlord and Landlord’s invitees shall have the right to use
the Facility at any time, for any reason. Provided stalls are available (not rented to paying clients for standard
boarding rates), and provided Landlord supplies the feed and shavings for Landlords horses. Landlord may keep
up to eight horses at the Facility and Tenant shall feed landlords horses twice a day, and clean the stalls twice a
day at no charge to Landlord. If at anytime Landlords horses are preventing a paying client from boarding their
horse at the Facility, Landlord must either (a) remove the number of horses necessary to accommodate the
paying client, or (b) pay Tenant the amount the paying client would otherwise pay, or (c) immediately construct
additional stalls for Landlords horses at the Facility and move Landlords horses before the paying client needs or
wants occupancy.
15. Landlord's Access
Landlord or its agents may enter the Facility at all reasonable times to show the Facility to any person or party, to
do any other act or to inspect and conduct tests in order to monitor Tenant's compliance with all terms of this
Lease, applicable environmental laws, the presence and use of Hazardous Materials, or for any other purpose
Landlord deems necessary. Landlord shall not be required to give Tenant prior notice of such entry unless entry
to the Dwelling is required, at which time Landlord shall give Tenant 24 hours notice.

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20. Protection of Lenders
Subordination. This Lease shall be subordinate to any existing ground lease, deed of trust or mortgage, and
Landlord shall have the right to subordinate this Lease to any ground lease, deed of trust or mortgage hereafter
encumbering the Facility, any advances made on the security thereof and any renewals, modifications,
consolidations, replacements or extensions thereof, whenever made or recorded. Tenant shall cooperate with
Landlord and any lender, which is acquiring a security interest in the Facility or this Lease. Tenant shall execute
such further documents and assurances as such lender may require, provided that Tenant's obligations under this
Lease shall not be increased in any material way (the performance of ministerial acts shall not be deemed
material), and Tenant shall not be deprived of its rights under this Lease. Tenant’s right to quiet possession of the
Facility during the Lease Term shall not be disturbed by any future beneficiary under a deed of trust or mortgagee
under a mortgage if Tenant pays the rent and performs all of Tenant's obligations under this Lease and is not
otherwise in default. If any ground Landlord, beneficiary or mortgagee elects to have this Lease prior to the lien of
its ground lease, deed of trust or mortgage and gives written notice thereof to Tenant, this Lease shall be deemed
prior to such ground lease, deed of trust or mortgage whether this Lease is dated prior or subsequent to the date
of said ground lease, deed of trust or mortgage or the date of recording thereof.
Signing of Documents. Tenant shall sign and deliver any instrument or documents necessary or appropriate to
evidence any such attornment or subordination or agreement to do so.
Attornment. If Landlord's interest in the Facility is acquired by any ground Landlord, beneficiary under a deed of
trust, mortgagee, or purchaser at a foreclosure sale, then at such person’s or entity's election, Tenant shall attorn
to the transferee of or successor to Landlord's interest in the Facility and recognize such transferee or successor
as Landlord under this Lease. Tenant waives the protection of any statute or rule of law, which gives or purports
to give Tenant any right to terminate this Lease or surrender possession of the Facility upon the transfer of
Landlord's interest.
19. Guarantors
All parties signing this Lease as Tenant or as Guarantors shall be jointly and severally liable for all obligations of
Tenant. John Redmond and Maureen C. Redmond may be released from being Guarantors at any time during the
second three-year option period (years 5 through 7) by depositing with Landlord, an additional Fifty Thousand
Dollars as a cash guarantee and security deposit. However, in the event Tenant or any of Tenants members files
for, or is placed involuntarily into bankruptcy proceedings, John Redmond and Maureen C. Redmond shall
automatically be reinstated as Guarantors and Landlord shall be under no obligation to return any of the security
deposit as a result of the reinstatement.
(b) If Tenant does not deliver such statement to Landlord within such ten (10) day period, Landlord,
and any prospective purchaser or encumbrancer, may conclusively presume and rely upon the following facts: (i)
that the terms and provisions of this Lease have not been changed except as otherwise represented by Landlord;
(ii) that this Lease has not been cancelled or terminated except as otherwise represented by Landlord; (iii) that not
more than one month's Minimum Rent or other charges have been paid in advance; and (iv) that Landlord is not
in default under this Lease. In such event, Tenant shall be estopped from denying the truth of such facts.
Estoppel Certificates.
(a) Upon Landlord's written request, Tenant shall execute, acknowledge and deliver to Landlord a
written statement certifying: (i) that none of the terms or provisions of this Lease have been changed (or if they
have been changed, stating how they have been changed); (ii) that this Lease has not been cancelled or
terminated; (iii) the last date of payment of the Minimum Rent and other charges and the time period covered by
such payment; (iv) that Landlord is not in default under this Lease (or, if Landlord is claimed to be in default,
stating why); and (v) such other representations or information with respect to Tenant or this Lease as Landlord
may reasonably request or which any prospective purchaser or encumbrancer of the Facility may require. Tenant
shall deliver such statement to Landlord within ten (10) days after Landlord's request. Landlord may give any
such statement by Tenant to any prospective purchaser or encumbrancer of the Property. Such purchaser or
encumbrancer may rely conclusively upon such statement as true and correct.
(c) Upon Tenant's request, Landlord shall execute, acknowledge and deliver to Tenant a written
statement as to such matters relating to this Lease as are reasonably requested by Tenant and acceptable to
Landlord.

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Damage or Destruction
21.
If the insurance proceeds received by Landlord are not sufficient to pay the entire cost of repair,
(C)
Tenant.
001534
Partial Damage to Facility
(a) Tenant shall notify Landlord in writing immediately upon the occurrence of any damage to the
Facility. If the Facility is only partially damaged (i.e., less than fifty percent (50%) of the Facility is untenantable as
a result of such damage or less than fifty percent (50%) of Tenant's operations are materially impaired) and if the
proceeds received by Landlord from the insurance policies are sufficient to pay for the necessary repairs, this
Lease shall remain in effect and Landlord shall repair the damage as soon as reasonably possible. Landlord may
elect (but is not required) to repair any damage to Tenant's fixtures, equipment, or improvements (unless Landlord
obtained insurance for such improvements and sufficient proceeds are available therefrom for such repair), and
Tenant shall pay Landlord the "deductible" amount under Landlord's insurance policies.
22. Relationship
It is agreed and understood that Tenant is not an agent or employee of Landlord, and that this agreement
does not establish a partnership or joint venture between Landlord and
Substantial or Total Destruction. If the Facility is substantially or totally destroyed by any cause
whatsoever (i.e., the damage to the Facility is greater than partial damage), and regardless of whether Landlord
receives any insurance proceeds, this Lease shall terminate as of the date the destruction occurred.
Notwithstanding the preceding sentence, if the Facility can be rebuilt within nine (9) months after the date of
destruction, Landlord may elect to rebuild the Facility at Landlord's own expense, in which case this Lease shall
remain in full force and effect. Landlord shall notify Tenant of such election within thirty (30) days after Tenant's |
notice of the occurrence of total or substantial destruction. If Landlord so elects, Landlord shall rebuild the Facility
at Landlord's sole expense, except that if the destruction was caused by an act or omission of Tenant, Tenant
shall pay Landlord the difference between the actual cost of rebuilding and any insurance proceeds received by
Landlord, including the "deductible” amount (if any) under Landlord’s insurance policies. Tenant shall not be
obligated to pay rent until the Facility is rebuilt unless Tenant uses a portion of the Facility, or pasture area, or
uses portions of the Facility as they are rebuilt, at which time Landlord and Tenant shall agree on a rental amount
proportionate to the portions of the Facility and or pasture area being used.
(c) If the damage to the Facility occurs during the last three (3) months of this Term and such
damage will require more than thirty (30) days to repair, either Landlord or Tenant may elect to terminate this
Lease as of the date the damage occurred, regardless of the sufficiency of any insurance proceeds. The party
electing to terminate this Lease shall give written notification to the other party of such election within thirty (30)
days after Tenant's notice to Landlord of the occurrence of the damage.
(b) If the insurance proceeds received by Landlord are not sufficient to pay the entire cost of repair,
or if the cause of the damage is not covered by the insurance policies which Landlord maintains, Landlord may
elect either to (i) repair the damage as soon as reasonably possible, in which case this Lease shall remain in full
force and effect, or (ii) terminate this Lease as of the date the damage occurred. Landlord shall notify Tenant
within thirty (30) days after receipt of notice of the occurrence of the damage whether Landlord elects to repair the
damage or terminate this Lease. If Landlord elects to repair the damage, Tenant shall pay Landlord the
"deductible amount" (if any) under Landlord's insurance policies and, if the damage was due to an act or omission
of Tenant, or Tenant's employees, agents, contractors, clients, or invitees, the difference between the actual cost
of repair and any insurance proceeds received by Landlord. If Landlord elects to terminate this Lease, Tenant
may elect to continue this Lease in full force and effect, in which case Tenant shall repair any damage to the
Facility. Tenant shall pay the cost of such repairs, except that, subject to the terms of any deed of trust
encumbering the Facility, upon satisfactory completion of such repairs, Landlord shall deliver to Tenant any
insurance proceeds received by Landlord for the damage repaired by Tenant. Tenant shall give Landlord written
notice of such election within ten (10) days after receiving Landlord's termination notice.
23. Notices
Any notices to be given hereunder by either party to the other may be effected either by personal delivery in
writing or by mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be
addressed to the parties at the address provided at the end of this agreement, but each party may change his
address by written notice in accordance with this paragraph. Notices delivered personally shall be deemed
communicated as of the date of actual receipt; mailed notices shall be deemed communicated as of five (5) days
after mailing.

/13
101; Nov-24-01 11:17AM;
ent By:
Tenant shall be in material default under this Lease:
IfTenant abandons the Facility and fails to pay rent or any other charge when due or if Tenant's
If Tenant fails to pay rent or any other charge when due.
(b)
001535
(a) I
vacation of the Facility results in the cancellation of any insurance.
25. Remedies
On the occurrence of any material default by Tenant, Landlord may, at any time thereafter, with or without notice
or demand and without limiting Landlord in the exercise of any right or remedy which Landlord may have:
24. Defaults, Breach of Contract
Tenant's performance of each of Tenant’s obligations under this Lease is a condition as well as a covenant.
Tenant's right to continue in possession of the Property is conditioned upon such performance. Time is of the
essence in the performance of all covenants and conditions.
(d) (i) If Tenant makes a general assignment or general arrangement for the benefit of creditors; (ii)
if a petition for adjudication of bankruptcy or for reorganization or rearrangement is filed by or against Tenant and
is not dismissed within thirty (30) days, (iii) if a trustee or receiver is appointed to take possession of substantially
all of Tenant's assets located at the Facility or of Tenant's interest in this Lease and possession is not restored to
Tenant within thirty (30) days; or (iv) if substantially all of Tenant's assets located at the Facility or of Tenants
interest in this Lease is subjected to attachment, execution or other judicial seizure which is not discharged within
thirty (30) days. If a court of competentjurisdiction determines that any of the acts described in this subparagraph
(d) is not a default under this Lease, and a trustee is appointed to take possession (or if Tenant remains a debtor
in possession) and such trustee or Tenant transfers Tenant's interest hereunder, then Landlord shall receive, as
Minimum Rent, the excess, if any, of the rent (or any other consideration) paid in connection with such
assignment or sublease over the rent payable by Tenant under this Lease.
(e) If any guarantor of this Lease revokes or otherwise terminates, or purports to revoke or otherwise
terminate, any guarantee of all or any portion of Tenant's obligations under this Lease. Unless otherwise
expressly provided, no guaranty of this Lease is revocable.
(a) Terminate Tenant's right to possession of the Property by any lawful means, in which case this
Lease shall terminate and Tenant shall immediately surrender possession of the Facility to Landlord. In such
event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's
default, including (i) the worth at the time of the award of the unpaid Minimum Rent, and other charges which
Landlord had earned at the time of the termination, (ii) the worth at the time of the award of the amount by which
the unpaid Minimum Rent and other charges which Landlord would have earned after termination until the time of
the award exceeds the amount of such rental loss that Tenant proves Landlord could have reasonably avoided;
(iii) the worth at the time of the award of the amount by which the unpaid Minimum Rent and other charges which
Tenant would have paid for the balance of the Lease Term after the time of award exceeds the amount of such
rental loss that Tenant proves Landlord could have reasonably avoided; and (hr) 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, including, but not limited to,
any costs or expenses Landlord incurs in maintaining or preserving the Facility after such default, the cost of
recovering possession of the Facility, expenses of reletting, including necessary renovation or alteration of the
Facility. Landlord's reasonable attorneys’ fees incurred in connection therewith, and any real estate commission
paid or payable. As used in subparts (i) and (ii) above, the "worth at the time of the award" is computed by
allowing interest on unpaid amounts at the rate of fifteen percent (15%) per annum, or such lesser amount as may
then be the maximum lawful rate. As used in subpart (iii) above, the "worth at the time of the award" is computed
by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the
award, plus one percent (1%). If Tenant has abandoned the Facility, Landlord shall have the option of (i) retaking
(c) If Tenant fails to perform any of Tenant's non-monetary obligations under this Lease for a period
of ten (10) days after written notice from Landlord; provided that if more than ten (10) days are required to
complete such performance, Tenant shall not be in default if Tenant commences such performance within the ten
(10) day period and thereafter diligently pursues its completion. However, Landlord shall not be required to give
such notice if Tenant's failure to perform constitutes a non-curable breach of this Lease. The notice required by
this Paragraph is intended to satisfy any and all notice requirements Imposed by law on Landlord and is not in
addition to any such requirement.

/13
Nov-24-01 11:18AM;
101 ;
ent By:
Pursue any other remedy now or hereafter available to Landlord under the laws or judicial
001536
In the event Tenant violates any of the terms of this agreement which constitute an incurable breach. Tenant and
TC’s shall immediately vacate the Facility, the lease shall terminate, and Landlord shall have no obligation to
refund any amounts paid byTenant.
possession of the Facility and recovering from Tenant the amount specified in this Paragraph, or (if) proceeding
under Paragraph (b);
(c) I
decisions of the state in which the Facility is located.
27. Waiver
The waiver by either party of a breach or violation of any provisions of this agreement shall not operate as or be
construed as a waiver of any subsequent breach hereof.
28. Venue
This agreement shall be interpreted, construed, and governed according to the laws of the State of California,
County of Ventura.
30. Severability
A determination by a court of competentjurisdiction that any provision of this Lease or any part thereof is illegal or
unenforceable shall not cancel or invalidate the remainder of such provision or this Lease, which shall remain in
full force and effect.
31. Interpretation
The captions of the Articles or Sections of this Lease are to assist the parties in reading this Lease and are not a
part of the terms or provisions of this Lease. Whenever required by the context of this Lease, the singular shall
include the plural and the plural shall include the singular. The masculine, feminine and neuter genders shall
each include the other. In any provision relating to the conduct, acts or omissions of Tenant, the term "Tenant'
shall include Tenants managers, agents, employees, contractors, invitees, clients, successors or others using the
Facility with Tenants expressed or implied permission.
29. Assignment
This agreement shall inure to the benefit of and bind the successors, assigns, heirs, executors, and administrators
of the parties. However, this lease is not assignable, and no subleasing other than month to month stabling and
pasturing of horses shall be permitted without Landlords prior written approval, which Landlord may withhold at
Landlords sole discretion.
26. Attorneys Fees
If any legal action or other proceeding is brought for the enforcement of this agreement, or for the interpretation of
same, or because of an alleged dispute, breach, default or misrepresentation in connection with any of its
provisions, the successful or prevailing party shall be entitled to recover all attorneys fees and all costs, whether
legally recoverable under the Code of Civil Procedure or not, incurred in that action, enforcement or proceeding,
in addition to any other relief to which it may be entitled.
32. Incorporation of Prior Agreements; Modifications.
This Lease is the only agreement between the parties pertaining to the lease of the Facility and no other
agreements are effective. All amendments to this Lease shall be in writing and signed by all parties. Any other
attempted amendment shall be void.
(b) Maintain Tenant's right to possession, in which case this Lease shall continue in effect whether or
not Tenant has abandoned the Facility. In such event. Landlord shall be entitled to enforce all Landlord's rights
and remedies under this Lease, including the right to recover the rent as it becomes due;

/13
101 ; Nov-24-01 11:18AM;
ent By:
Executed on the date first above written.
Sulphur Mountain Land and Livestock Co.. LLC
Somerset, LLC
I
Address:
Guarantor
Address:
John A. Redmond
Guarantor
I
Address:
Maureen C. Redmond
Guarantor
I
Address:
Geraldine Redmond
001537
By:
Geraldine Redmond, Manager
By: Address:
Pacific Coast Management, Manager, By Mark Maravelas, CFO
12808 Greene Ave.
LA, CA. 90066
12808 Greene Ave.
LA, CA. 90066
12808 Greene Ave.
LA, CA. 90066
PO Box 25070
Ventura,CA.93002
12808 Greene Ave.
LA, CA. 90066
33. Waivers.
All waivers must be in writing and signed by the waiving party. Landlord's failure to enforce any provision of this
Lease or its acceptance of rent shall not be a waiver and shall not prevent Landlord from enforcing that provision
or any other provision of this Lease in the future. No statement on a payment check from Tenant or in a letter
accompanying a payment check shall be binding on Landlord. Landlord may, with or without notice to Tenant,
negotiate such check without being bound to the conditions of such statement.
34. Confidentiality.
Tenant agrees that except as required by law, it shall keep confidential, and shall not disclose to any third party,
the terms, provisions and contents of this Lease, or any information relating to this Lease.
35. Fax Signatures
This agreement may be signed in counterpart and signatures shall be faxed to the other party. A document
containing all signatures, whether original or faxed signatures, shall constitute an original agreement.

oy .
i
001538
a monthly basis, showing in detail, all income and expense for the operation of the Facility. Tenant shall also
Geraldine’s training and personal expenses. Landlord shall have the right to request additional reports, different
formats and backup documentation form time to time, at Landlords discretion.
6. Utilities
and spills, as of the execution of this Lease, and the propane servicing the Dwelling is in perfect working order,
at the end of the Term or any extension thereof. Tenant further agrees to maintain the tanks and abide by any and
all regulations effecting the use or storage of propane and diesel fuel. Tenant shall be solely responsible for any
requirements from any government agency regarding the tanks and use of the propane and diesel. Tenant shall
indemnify and hold Landlord harmless for any contamination or hazardous material cleanup resulting from the
storage or use of propane and diesel fuel. Tenant is hereby advised that the water to the Dwelling and the Facility
may not be potable from time to time, and Tenant agrees to use the water at Tenants own risk, or purchase
bottled water.
this Lease, Tenant shail provide an accounting to Landlord showing the total amount of funds paid to Landlord
and the total amount retained by Tenant during the Term. In the event the total amount paid to Landlord exceeds
3100,000 for the Term, the remaining balance after deducting $100,000 shall be added to the amount retained by
Tenant during the Term and that amount shall be the gross profit ("GP”) and shall be divided fifty-fifty between
Tenant and Landlord. Landlord shall pay Tenant the difference between the amount retained by Tenant during the
Term and fifty percent of the GP within 10 days of receiving the accounting from Tenant and Landlords approval
of same. In the event the combined total of the Minimum Rent and the RGA paid to Landlord at any time during
the Term exceeds $100,000, Tenant shall be entitled to receive fifty percent of the GP pursuant to the formula
herein above. Thereafter. Tenant shall retain fifty percent of the RGA and pay landlord fifty percent of the RGA,
monthly, in lieu of the Minimum Rent plus-and the ninety percent of the RGA, until the end of the Term. In the j
event Minimum Rent is not received by Landlord on or before the 10lh of any month, a late fee of five percent shall
7. Security Deposit
Upon execution of the Lease Tenant shall pay Landlord the sum of S2-5.000 $16 000 as a security deposit, to |
insure Tenants performance under the Lease. At any time during the Term, Landlord may deduct amounts from
the security deposit if Tenant fails to perform any requirement of the Lease. Thereafter, Tenant shall replenish the
security deposit, or any portion thereof, upon written demand by Landlord. Provided the Facility and all associated
equipment is in good condition and working order, and that there are no sums outstanding or due to Landlord,
Geraldine Redmond, a member of Tenant, shall train certain horses that will be boarded at the Facility from time
to time. Any training income paid to tenant or Geraldine for Geraldine's direct training shall be divided ninety
and shall be included in the GP calculation at the end of the lease term. Tenants portion of Geraldine’s training
income shall not be included in the GP calculation. When determining the net revenue from any RGA. other than
stabling and pasturing, only the actual costs {“Cost”) for outside services and materials, which were specifically
expenses, salaries or compensation of any nature to Tenant or Tenant’s members or employees. When
determining net revenue for stabling. Tenants Cost shall be $150.00 ("Stabling Cost”), per stall, which amount
shall include all labor, feed, shavings and any other cost associated with stabling and board. Notwithstanding the (
foregoing, after ninety days, if it is determined that the actual cost of stabling is materially different than $150 00 I
per stall. Tenant and Landlord shaii review Ihe actual costs and adjust the Stabling Cost up or down accordingly I
The revised Stabling Cost shall then be in effect ur.tii the eno of the Term Tenant shall only deduct Stabling Cost |
from the gross stabling revenue, for each stall that is occupied with a paying clients horse. When determining the
net revenue for pasturing. Tenant shall deduct only the Cost of any supplemental feed from any pastured horse of
any paying client. There shail be no Stabling Cost or Cost deductions for any stall or horse in pasture that is net
generating revenue in excess of Cost. When determining short-term rentals net income, it will be on revenue less
Cost basis.

001539
11. Cattle Lease
(■'Cattle Area"), and that use of the Cattle Area by the pasture lessee may inconvenience or effect the quiet
enjoyment of Tenant and TCs from time to time.
Tenant shall prepare, for Landlords approval, and for distribution to all TCs, rules and regulations (“R&R"). for the
use of, and proper conduct at the Facility, including hours of operation. Landlord shall have the unilateral right to
modify, or supplement the R&R at any time, for any reason at Landlords sole discretion. Tenant shall insure that
all TC's obey the R&R or Tenant shall promptly evict them from the Facility with no ability to re-enter for any
reason. Landlord shall have the right to require Tenant to evict any TC for any reason at Landlords sole
discretion. Tenant shall include in the rules and regulations a warning and instructions not to drink the water from
any tap or hose as the water may not be potable from time to time, and Tenant shall place signs at all faucet
locations in Spanish and English explaining the water may not be potable and warning TC’s not to drink it.
8. Cancellation
At any time during the Term of this Lease, or any extension thereof, Landlord may, at Landlords sole discretion,
terminate this Lease by giving a minimum of one hundred eighty (180) days written notice to Tenant of Landlords
election to terminate. Provided the Facility is left in good condition and there are no amounts due Landlord, within
ten days of Tenant vacating the facility, Landlord shall refund any and all deposits being held by Landlord and
Landlord shall pay to Tenant a cancellation fee calculated as follows: The GP for the prior twelve-month period,
divided by two, divided by twelve, times the months remaining on the Term then in effect (not including any option
periods), times .25, plus a percentage of the total cost for any capital improvements paid for by Tenant out of
Tenants funds, which percentage shall be calculated by using the following formula: The capital expenditure
amount, divided by the number of months remaining on the Term then in effect (not including any option pencds)
as of the date of the capital expenditure, times the remaining months of the Term as of the move out date.
9. Designated Areas
Tenant and all of Tenants members, clients, boarders, employees, agents, affiliates etc. (“TC") shall only use the
designated areas ("DA”) as set forth on Exhibit "B” attached hereto. Tenant and TC shall not be permitted to use.
ride, walk, drive or enter upon any other area not specifically identified on Exhibit B, for any reason whatsoever
Any area not designated on Exhibit B shall be considered a restricted area (“RA"). At Tenants sole expense,
necessary to insure there is no trespassing on any RA. Any trespassing by any TC without express written
permission" from Landlord shall be considered a material breach of this lease. In the event any TC is found
trespassing on any restricted area, Landlord shall send a written trespass notice to Tenant (“Trespass Notice”)
specifying the date, approximate time and iocation of the trespass event, along with the trespassers general
description and name (if obtainable from trespasser). In-the-event—Tenaet-reseivea-a tstaPot-twe-Trespass
Nahces at-any-time-dunRg4he-Terffir2i:eriaAt48-hefet>y-autem,atiGalty-ofi-notiGe4hat the-tf'-ifd-Tr'esBass-WQtise shall
constitute an incurable-frrear^-af—:b.'&-Lease. Immediately upon receipt of a Trespass Notice, Tenant shai;
investigate the trespassing event and interview the trespasser if he or she is known to Tenant, or interview rhe
person who was responsible for inviting the trespasser if the trespasser is not known to Tenant. After the
investigation and interview, Tenant shall make a determination whether to evict the trespasser, or person.
responsible for the trespass event or implement some other action, which will preclude future trespass events.
days of the Trespas Notice. If more than four Trespass Notices are given to Tenant in any three-month period.
Landlord may deem it an Incurable Breach, at Landlords sole discretion. If Tenant desires to use portions of the
RA for an RGA, express written permission must be obtained from Landlord prior to any use.
equipment is in good condition and working order, and that there are no sums outstanding or due to Landlord,
within thirty days after the termination date or any extension thereof, Landlord shall refund the security deposit to
Tenant. In the event the Facility, Dwelling, or any portion thereof, or any associated equipment is not in good
condition or needs repair (reasonable wear and tear excepted) at the end of the Term or any extension thereof,
Landlord shall keep the security deposit repair or replace portions of the Facility, Dwelling, or equipment as
necessary, deduct the cost for the repair and replacement from the security deposit, and return any unused
portion to Tenant thereafter along with the bills for the repair or replacement In the event the cost of any repair or
replacement exceeds the amount of the security deposit, Tenant shall promptly pay Landlord the difference, upon
presentation of the bills by Landlord to tenant.

001540
14.
(a)
-.12. Hunting -- , ■ . .
Under no circumstances shall I enant or any TC enter upon the DA or the RA with any firearm, bow, crossbow,
trap, or any other device, which could be used for hunting. Hunting is strictly prohibited! in the'event Tenant or
any TC is found with a firearm, bow, crossbow, trap, or any other device, which could be used for hunting, other
than a handgun duly licensed by a government authority, it shall be considered an incurable breach of this lease.
Tenant further acknowledges Landlords right to hunt and conduct private hunts from time to time, and that hunting
by Landlord or Landlords invitees shall not be construed as a negative impact or an infringement of any kind upon
Tenants use and quiet enjoyment of the Facility. Tenant hereby leases the Facility knowing some TC's may be
opposed to, and offended by hunting, and that Landlords hunting activities may have a negative effect on Tenants
income and use of the Facility from time to time.
13. Maintenance and Repair
the Term, Tenant shall maintain, at Tenants sole cost and expense, the Facility and al! equipment and machinery
| associated or used in conjunction with the Facility, including but not limited to interior and exterior painting, barns,
stalls, mats, barn, stall, and walkway footing, arena’s and arena footing, roads, landscaping, trees, housing
(including all appliances, plumbing fixtures, flooring, roofing, cabinets, finishes, heating, etc.), bathrooms, water
system, Water distribution manifold, electrical system, phone lines, generator, fuel and propane tanks. Facility
tractor (old gray Ford), drags, harrows, lighting, fencing, gates, pastures, troughs, weed abatement gopher
or better condition as received by Tenant as of the execution of this Lease On or before December 1. 2001
> Tenant shall deliver to Landlord a list of all items that are not in proper working order or that are damaged or worn
to such a degree that they should be exceptions from Tenants responsibility to return everything in good condition
and repair ("Exception List"). Anything not on the Exception List shall be conclusively deemed as Tenants
responsibility to maintain and return in good condition. Landlord shall be responsible to maintain the main water
system and to insure water up to the water distribution manifold located at the Facility next to the hay bam.
Laridlord shall not be responsible for any fencing (whether fences are ineffective, damaged by cattle or any other
I cause), roads, maintenance or repair of any kind, in or around the Facility and DA. Landlord may inspect the
Facility. DA, and Dwelling from time to time to insure proper maintenance and repair. If in Landlords opinion any
portion of the Facility, associated equipment or the Dwelling are not being properly maintained. Landlord may give
Written notice to Tenant of the items found to be in need of proper maintenance, repair or replacement Tenant
shall have ten days from the date of the notice to correct the required maintenance, or complete the repairs or
replacement. If Tenant fails to correct the maintenance, or complete the repairs or replacement within the ten day
period. Landlord shall have the right but not the obligation to facilitate the maintenance, repairs, or replacement
► and bill Tenant for the cost of same, which amount Tenant shall pay within 10 days of receiving the bill from
Landlord. Failure to pay Landlord for any maintenance, repairs or replacements within thirty days from the date of
the bill shall be an incurable-breach a material breach of this lease. |
15. ^Landlord's Access . . - .'.. j
* Landlord or its agents may enter the Facility at all reasonable times to show the Facility to any person or party, to
do any .other act or to inspect and conduct tests in order to monitor Tenant's compliance with all terms of this
Alterations, Additions, and Improvements
Tenant shall not make any alterations, additions, or improvements to the Facility without Landlord's prior
of this paragraph upon Landlord's written request All alterations, additions, and improvements shall be done in a
approved by Landlord. Upon completion of any such work, Tenant shall provide Landlord with "as built" plans,
copies of all construction contracts, and proof of payment for all labor and materials.
(b) Tenant shall pay when due all claims for labor and materials furnished to the Facility. Tenant shall give
Landlord at feast ten days' prior written notice of the commencement of any work, on the Facility, regardless of
whether Landlord's consent to such work is required. Landlord may elect to record and post notices of non
responsibility on the Property. • -

001541
... 19. Guarantors L. iX::.7^J........ ... i. V?...
All parties signing this Lease as Tenant or as Guarantors shall be jointly-and severally liable for all obligations of
Tenant. John Redmond and Maureen C. Redmond may be released from being Guarantors at any time during the
second three-year option period (years 5 through 7) by depositing with Landlord, an additional Fifty Thousand
■. Dollars as a cash guarantee and security deposit. However, jn the event Tenant or any of Tenants members files
- for, or is placed involuntarily into bankruptcy proceedings-.. John. Redmond and Maureen C. Redmond -shall.
* : automatically be reinstated as.Guarantors and Landlord shall be under no obligation to return any of the securiry
* .deposit as a result of the reinstatement.
' > SIB
18. Insurance
Poor to moving any animals or property on to the Facility, Tenant shall provide Landlord with a certificate of
coverage terms acceptable to Landlord, with minimum coverage for general liability and property damage in an
amount not less than 32,000,000, naming Landlord, the Giganin Trust, Joseph J. Praske, Trustee. Pacific Coast
Management and Stephen Gaggero as additional insured's. Such insurance must be maintained at all times
during the term of this lease. Said certificate shall specify on its face that Landlord shall be notified by certified
mail at least 60 days prior to any cancellation. Landlord reserves the right to change the insurance requirements
of this Lease from time to time as determined necessary in Landlords sole discretion. In the event Tenants
insurance is cancelled, not renewed, or there is a lapse in coverage, for any reason, Landlord may purchase any
insurance at Landlords sole discretion, necessary to protect Landlord and the Facility and thereafter bill Tenant for
the cost of same, which amount Tenant shall pay within 10 days of receiving the bill from Landlord. Failure to pay
Landlord for any insurance advance within thirty days from the date of the bill from Landlord, shall bean
incurable breach of this lease.
17. Indemnity ' :
Tenant shall indemnify Landlord and Landlords agents, .employees:.' managers, associates, and affiliates, etc.
against and hold Landlord and Landlords agents, employees, managers, associates, and affiliates, etc. .harmless
from any and all costs, claims or liability arising from: (a) Tenant’s use of the Facility; (b) the conduct of Tenant's
business or anything else done or permitted by Tenant to be done in or about the Facility, including any
contamination of the Facility or any other property resulting from the presence or use of Hazardous Materials
Lease; (d) any misrepresentation or breach of warranty by Tenant under this Lease; or (e) other acts or omissions
of Tenant. Tenant shall defend Landlord against any such cost, claim or liability at Tenant's expense with counsel
reasonably acceptable to Landlord or, at Landlord s election, Tenant shall reimburse Landlord for any legal fees or
costs incurred by Landlord in connection with any such claim. As a material part of the consideration to Landlord.
and Tenant hereby waives all claims in respect thereof against Landlord, except for any claim arising out of
Landlord's gross negligence or willful misconduct. Tenant shall be responsible for all safety issues at the facility,
and ail permits or other requirements from any governmental body or agency. Tenant shall obtain releases frcrn
customers and invitees, if applicable.
Lease, applicable environmental laws, the presence and use of Hazardous Materials, or for anyiqttier purpose'
Landlord deems necessary. <■ Landlord shajj not be.required to give Tenant prior notice of such entry unless entry■-
to the Dwelling is required, at which time Landlord shall give Tenant 24 hours notice. '
... . .. ... '
16. Reserved Rights ■ ..’ , •.. :,>■ ,.. .
All rights other than those specifically conveyed in this agreement by Landlord to Tenant are reserved to ' .
Landlord. Landlord shall not be required to provide or pay any expenses related to the Facility othecthan;property . 1
tax and Landlords insurance. Except for the Dwelling; Landlord ’and Landlord's invitees shall have the'nght to use'
the Facility at any time, for any reason. Provided stalls .are available (not rented to paying clients for standard
boarding rates), and provided Landlord supplies the feed and shavings for Landlords horses. Landlord may keep
up to eight horses at the Facility and Tenant shall feed landlords horses twice a day, and clean the stalls twice a
day at no charge to Landlord. If at anytime Landlords horses are preventing a paying client from boarding their
paying client or (b) pay Tenant the amount the paying client would otherwise pay, or (c) Immediately construct
additional stalls for Landlords horses at the Facility and move Landlords horses before the paying client needs or
wants occupancy. • ••

•r^yy >
(a)
(c) I, . , ... ... ....
statement as to such matters relating to this Lease as are reasonably requested by Tenant and acceptable to
Landlord.
I1U u - l UJ ’ *> I »
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„„„ «•-
Ljl'WSls® 001542 3
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tit u oy , ,
.
........ .: . ■;'• ■'■(?•“>? ■ ■■•;>- '■'.. '.L iri'T.«..
■;T> L ■*■ :■- '■ . .. •-■ .; r. . : ‘ '■-.' . ' TT ;•_' / ;.3T; ;? ;.TfX'T.';''<•’/•
•' Protection of Lenders •' ^£.1 .-...■;
Subordination. This Lease shall be subordinate to any existing ground lease, deed of trust or mortgage, arid.-7.rxL.....;
; -Landlord shall have the right to subordinate this Lease to any ground lease.ideed of trust or mortdag^BreaffiSf T
• . . encumbering the Facility, any advances made on the. security.toereef.arid- any . renewals,Lmb^ticatiqfe;?^’^;?-^
■ consolidations, replacements or extensions thereof, whenever made or recorded. Tenant shall .-cooperate.WithiiifL i ..."
"7. ./Landlord and any lender, which is-acquiring a security interest in the Facilit/;ori:^s..L^ase^TeriTOY^har«»ew^$W’i;;;-f’'
such farther documents and assurances as such lender may require, provided that Tenant's obfigationsgriderithldTcif-L l..-
Lease shall not be increased in any material way (the performance of ministerial acts shall notibfer.deemedL^v.-. .
material), and Tenant shall not be deprived of its rights under this Lease. Tenant's right to quiet possessidn,pfth.eC^-:-;..
Facility during the Lease Term shall not be disturbed by any future beneficiar/under a deed of trust pitnjgrtgage6-.'^:’ ■ ;■
“ under a mortgage if Tenant pays the rent and performs all of Tenant's obligations under this Leasei&t3.iis-flot'>v•• ■>
otherwise in default, if any ground Landlord, beneficiary or mortgagee elects to have this Lease prior to the lien of
its ground lease, deed of trust or mortgage and gives written notice thereof to Tenant, this Lease shall.beldeemed .. .?
prior to such ground lease, deed of trust or mortgage whether this Lease is dated prior or subsecuenLtij.toedatex;Ll.::.‘': 3.-
of said ground lease, deed of trust or mortgage or the date of recording thereof. ■-..
• Attornment. If Landlord's interest in the Facility is acquired by any ground Landlord, beneficiary under’a cfeedj/f
”” trust, mortgagee, or purchaser at a foreclosure sale, then at.such person's or entity's election,. Tenant,sbali-.attp(n-«3T,'?fA?
to the transferee of or successor to Landlord's interest in the Facility and recognize such transferee or.’successor?,-^..-:;^;;
as Landlord under this Lease. Tenant waives the protection of any statute or rule of law, which gives or.purports— L.
to give Tenant any right to terminate this Lease or surrender possession of the Facility upon the.transfer.pf'.^i-^ '.
Landlord's interest. .
• Signing of Documents. Tenant shall sign and deliver any instrument or documents necessary or appropriate to ~ . .. .
evidence any such attornment or subordination or agreement to do so.
Estoppel Certificates.
Upon Landlord's written request. Tenant shall execute, acknowledge and deliver to Landlord a
written statement certifying; (i) that none of the terms or provisions of this Lease have been changed (or if they
have been changed, stating how they have been changed), (ii) that this Lease has not been cancelled oi
terminated; (iii) the last date of payment of the Minimum Rent and other charges and the time period covered by .
such payment; (iv) that Landlord is not in default under this Lease (or, if Landlord is claimed to be. in default,
‘stating why); and (v) such other representations or information with respect to Tenant or this Lease as Landlord . ..
may reasonably request or which any prospective purchaser or encumbrancer of the Facility may require.' Tenant
shall deliver such statement to Landlord within ten (10) days after Landlord's request. Landlord may give any
such statement by Tenant to any prospective purchaser or encumbrancer of the Property. Such purchaser or
encumbrancer may rely conclusively upon such statement as true and correct.
(b) If Tenant does not deliver such statement to Landlord within such ten (10) day period, Landlord,^
and any prospective purchaser or encumbrancer, may conclusively presume and rely upon the following factsL'XD^xTT.i-V:-' ;
that the terms and provisions of this Lease have not been changed except as otherwise represented by Landlord;
(ii) that this Lease has not been cancelled or terminated except as otherwise represented by Landlord; (iii) that not
more than one month's Minimum Rent or other charges have been paid in advance; and (iv) that Landlord is not
in default under this Lease. In such event, Tenant shall be estopped from denying the truth of such facts.
Upon Tenant's request, Landlord shall execute, acknowledge and deliver to Tenant.a writtenc.jrV._,

001543
a monthly basis, showing in detail, ail income and expense for the operation of the Facility. Tenant shall also
Geraldine’s training and personal expenses. Landlord shall have the right to request additional reports, different
formats and backup documentation form time to time, at Landlords discretion.
Geraldine Redmond, a member of Tenant, shall tram certain horses that will be boarded at the Facility from time
to time. Any training income paid to tenant or Geraldine for Geraldine’s direct training shall be divided ninety
and shall be included in the GP calculation at the end of the lease term. Tenants portion of Geraldine's training
income shall not be included in the GP calculation. When determining the net revenue from any RGA, other than
stabling and pasturing, only the actual costs ("Cost") for outside services and materials, which were specifically
expenses, salaries or compensation of any nature to Tenant or Tenant’s members or employees. When
determining net revenue for stabling. Tenants Cost shall be 3150.00 ("Stabling Cost”), per stall, which amount
shall include all labor, feed, shavings and any other cost associated with stabling and board. Notwithstanding the
foregoing, after ninety days, if it is Determined that the actual cost of stabling is materially different than S150 PC
per stall. Tenant"and Landlord shall review the actual costs and adjust the Stabling Cost up or down accordingly
The leviseo Stabling Cost shall then be in effect until the end of the Term Tenant shall only deduct Stabling Cost
from the gross stabling revenue, for each stall that is occupied with a paying clients horse. When determining the
net revenue for pasturing, Tenant snail deduct only the Cost of any supplemental feed from any pastured horse of
any paying client. There shall be no Stabling Cost or Cost deductions for any stall or horse in pasture that is net
generating revenue in excess of Cost. When determining short-term rentals net income, it will be on revenue less
Cost basis.
6. Utilities
and spills, as of the execution of this Lease, and the propane setvicing the Dwelling is in perfect working order,
at the end of the Term or any extension thereof. Tenant further agrees to maintain the tanks and abide by any and
all regulations effecting the use or storage of propane and diesel fuel. Tenant shall be solely responsible for any
requirements from any government agency regarding the tanks and use of the propane and diesel. Tenant shall
indemnify and hold Landlord harmless for any contamination or hazardous material cleanup resulting from the
storage or use of propane and diesel fuel. Tenant is hereby advised that the water to the Dwelling and the Facility
may not be potable from time to time, and Tenant agrees to use the water at Tenants own risk, or purchase
bottled water.
this Lease, Tenant shall provide an accounting to Landlord showing the total amount of funds paid to Landlord
and the total amount retained by Tenant during the Term. In the event the total amount paid to Landlord exceeds
3100.000 for the Term, the remaining balance after deducting $100,000 shall be added to the amount retained by
Tenant during the Term and that amount shall be the gross profit (“GP”) and shall be divided fifty-fifty between
Tenant and Landlord. Landlord shall pay Tenant the difference between the amount retained by Tenant dunng the
Term and fifty percent of the GP within 10 days of receiving the accounting from Tenant and Landlords approval
of same. In the event the combined total of the Minimum Rent and the RGA paid to Landlord at any time during
the Term exceeds $100,000, Tenant shall be entitled to receive fifty percent of the GP pursuant to the formula
herein above. Thereafter, Tenant shall retain fifty percent of the RGA and pay landlord fifty percent of the RGA.
monthly, in lieu of the Minimum Rent plus-and the ninety percent of the RGA, until the end of the Term. In the |
event Minimum Rent is not received by Landlord on or before the 10lh of any month, a late fee of five percent shall
7. Security Deposit
Upon execution of the Lease Tenant shall pay Landlord the sum of S25t&0& $16,000 as a security deposit, to |
insure Tenants performance under the Lease. At any time during the Term, Landlord may deduct amounts from
the security deposit if Tenant fails to perform any requirement of the Lease. Thereafter, Tenant shall replenish the
security deposit, or any portion thereof, upon written demand by Landlord. Provided the Facility and all associated
equipment is in good condition and working order, and that there are no sums outstanding or due to Landlord.

001544
iC- C -
9. Designated Areas
Tenant and all of Tenants members, clients, boarders, employees, agents, affiliates etc. ("TC") shall only use the
designated areas (“DA") as set forth on Exhibit “B" attached hereto. Tenant and TC shall not be permitted to use.
ride, walk, drive or enter upon any other area not specifically identified on Exhibit B, for any reason whatsoever.
Any area not designated on Exhibit B shall be considered a restricted area (“RA"). At Tenants sole expense,
necessary to insure the_e is no trespassing on any RA. Any trespassing by any TC without express written
permission from Landlord shall be considered a material breach of this lease. In the event any TC is found
trespassing on any restricted area, Landlord shall send a written trespass notice to Tenant (“Trespass Notice")
specifying the date, approximate time and location of the trespass event, along with the trespassers general
description and name (if obtainable from trespasser), in-the-event—TeRaftt-receives-a-tot-sl-ai-twe—Trespass
■ Na?iee&-at-awy-?ime-dUFing4he-Term;-Tenaftt-i8-he«sby-aHt3matiGally-eFi-nottGe4hat the-#H^~frespass-NQtiGe shall
fonstitute an mewabie breach of-tlns-Lease. Immediately upon receipt of a Trespass Notice. Tenant snap
investigate the trespassing event and interview the trespasser if he or she is known to Tenant, or interview the
person who was responsible for inviting the trespasser if the trespasser is not known to Tenant. After ihe
investigation and interview. Tenant shall make a determination whether to evict the trespasser, or person
responsible for the trespass event or implement some other action, which will preclude future trespass events
days of the Trespas Notice. If more than four Trespass Notices are given to Tenant in any three-month oenco.
Landlord may deem it an Incurable Breach, at Landlords sole discretion. If Tenant desires to use portions of the
RA for an RGA, express written permission must be obtained from Landlord prior to any use.
Tenant shall prepare, for Landlords approval, and for distribution to all TCs, rules and regulations ("R&R"), for the
use of, and proper conduct at the Facility, including hours of operation. Landlord shall have the unilateral right to
modify, or supplement the R&R at any time, for any reason at Landlords sole discretion. Tenant shall insure that
all TCs obey the R&R or Tenant shall promptly evict them from the Facility with no ability to re-enter for any
reason. Landlord shall have the right to require Tenant to evict any TC for any reason at Landlords sole
discretion. Tenant shall include in the rules and regulations a warning and instructions not to drink the water from
any tap or hose as the water may not be potable from time to time, and Tenant shall place signs at all faucet
locations in Spanish and English explaining the water may not be potable and warning TC's not to drink it..
8. Cancellation
At any time during the Term of this Lease, or any extension thereof. Landlord may, at Landlords sole discretion,
terminate this Lease by giving a minimum of one hundred eighty (180) days written notice to Tenant of Landlords
election to terminate. Provided the Facility is left in good condition and there are no amounts due Landlord, within
ten days of Tenant vacating the facility, Landlord shall refund any and all deposits being held by Landlord and
Landlord shall pay to Tenant a cancellation fee calculated as follows: The GP for the prior twelve-month pericd.
divided by two, divided by twelve, times the months remaining on the Term then in effect (not including any option
periods), times .25, plus a percentage of the total cost for any capital improvements paid for by Tenant out of
Tenants funds, which percentage shall be calculated by using the following formula: The capital expenditure
amount, divided by the number of months remaining on the Term then in effect (not including any option periods)
as of the date of the capital expenditure, times the remaining months of the Term as of the move out date.
11. Cattle Lease
# ("Cattle Area”), and that use of the Cattle Area by the pasture lessee may inconvenience or effect, the quiet
V'enjoyment of Tenant and TC’s from time to time. ■ : • -
equipment is in good condition and working order, and that there are no sums outstanding or due to Landlord.
; within thirty days after the termination date or any extension thereof, Landlord shall refund the security deposit to
Tenant. In the event the Facility, Dwelling, or any portion thereof, or any associated equipment is not in good
condition or needs repair (reasonable wear and tear excepted) at the end of the Term or any extension thereof.
Landlord shall keep the security deposit, repair or replace portions of the Facility, Dwelling, or equipment as
necessary, deduct the cost for the repair and replacement from the security deposit, and return any unused
portion to Tenant thereafter along with the bills for the repair or replacement In the event the cost of any repair or
replacement exceeds the amount of the security deposit, Tenant shall promptly pay Landlord the difference, upcn
presentation of the bills by Landlord to tenant.

I
•ssB
.;';;5X}gfh?r;VL--
Il L tf r<«,«?.. ,■
• ■
«3Ov®“nting ...... ...
■. -Under no circumstances shall I enant or any TC enter upon the DA or the RA with any firearm, bow. crossbow, "■
. 7jM-itap;.orany other device, which could be used for hunting. Hunting is strictly prohibited! In the event Tenant or ..'
• “ry.-ahyLTC- is found with a firearm, bow, crossbow, trap, or any other device, which could be used for hunting, other iSlli'
' ■■■‘y fria.n'a handgun duly licensed by a government authority, it shall be considered an incurable breach of this lease. ’
’/^Tenant further acknowledges Landlords right to hunt and conduct private hunts from time to time, and that hunting Ti T t.
. —by^L'andlord or Landlords invitees shall nol be construed as a negative impact or an infringement of any kind upon' • “
-’.„.TePante use and duiet enjoyment of the Facility. Tenant hereby leases the Facility knowing some TC’s may be 7.; - -
". opposed to, and offended by hunting, and that Landlords hunting activities may have a negative effect on Tenants
. income, and use of the Facility from time to time.
13. Maintenance and Repair
the Term, Tenant snail maintain, at Tenants sole cost and expense, the Facility and all equipment and machinery.
: . associated or used in conjunction with the Facility, including but not limited to interior and exterior painting, bams,
stalls,, mats, barn, stall, and walkway footing, arena's and arena footing, roads, landscaping, trees, housing -•
,. (including all appliances, plumbing fixtures, flooring, roofing, cabinets, finishes, heating, etc.), bathrooms,'water
system. Water distribution manifold, electrical system, phone lines, generator, fuel and prepane tanks. Facility
tractor (old gray Ford), drags, harrows, lighting, fencing, gates, pastures, troughs, weed abatement, gopher
or better condition as received by Tenant as of the execution of this Lease. On or before December 1. 2001
Tenant shall deliver to Landlord a list of all items that are not in proper working order or that are damaged or worn
to such a degree that they should be exceptions from Tenants responsibility to return everything in good condition
and repair ("Exception List"). Anything not on the Exception List shall be conclusively deemed as Tenants
responsibility to maintain and return in good condition Landlord shall be responsible to maintain the main water
System and to insure water up to the water distribution manifold located at the Facility next to the hay bam.
Landlord shall not oe responsible for any fencing (whether fences are ineffective, damaged by cattle or any other
cause), roads, maintenance or repair of any kind, in cr around the Facility and DA. Landlord may inspect the
Facility, DA, and Dwelling from time to time to insure proper maintenance and repair If in Landlords opinion any
portion of the Facility, associated equipment or the Dwelling are not being properly maintained. Landlord may give
■^Written notice to Tenant of the items found to be in need of proper maintenance, repair or replacement. Tenant
’ .shall have ten days from the date of the notice to correct the required maintenance, or complete the repairs or
replacement. If Tenant fails to correct the maintenance, or complete the repairs or replacement within the ten day
period. Landlord shall have the right but not the obligation to facilitate the maintenance, repairs, or replacement
and bill Tenant for the cost of same, which amount Tenant shall pay within 10 days of receiving the bill from
Landlord. Failure to pay Landlord for any maintenance, repairs or replacements within thirty days from the date of
the bill shall be an incurable-breach a material breach of this lease.
(b) ” Tenant shall pay when due all claims for labor and materials furnished to the Facility. Tenant shall give
> Landlord at least ten days' prior written notice of the commencement of any work on the Facility, regardless of
. ^whether Landlord's consent to such work is required. Landlord may elect to record and post notices of non-
--.-.-responsibility on the Property.
. ■ : .. ’. ... . : . • ... . . . •
- -.. . • ■ •. . •■ ... . .- ■ - ..’ ....:■■•.■.
d5...;...Landlord'sAccess ....... . .... . ..
• ^Landlord or its agents may enter the Facility at all reasonable times to show the Facility to any person or party, to ...
any other,act or to inspect and conduct tests in order to monitor Tenant’s compliance with all terms of this
.TT-
001545
14. Alterations, Additions, and Improvements
(a) Tenant shall not make any alterations, additions, or improvements to the Facility without Landlord's prior
of this paragraph upon Landlord's written requesL All alterations, additions, and improvements shall be done in a
.approved by Landlord. Upon completion of any such work, Tenant shall provide Landlord with "as built' plans,
I’ copies of all construction contracts, and proof of payment for all labor and materials.

£
18. Insurance
• Prior to moving any animals or property on to the Facility, Tenant shall provide Landlord with a certificate of
coverage terms acceptable to Landlord, with minimum coverage for general liability and property damage in an
.. .amount not less than $2,000,000, naming Landlord, the Giganin Trust, Joseph J. Praske, Trustee. Pacific Coast ...
Management and Stephen Gaggero as additional insured's. Such insurance must be maintained at all times
during the term of this lease. Said certificate shall specify on its face that Landlord snail be notified by certified
mail at least 60 days prior to any cancellation. Landlord reserves the right to change the insurance requirements
• of this Lease from time to time as determined necessary in Landlords sole discretion. In the event Tenants
insurance is cancelled, not renewed, or there is a lapse in coverage, for any reason, Landlord may purchase any
insurance at Landlords sole discretion, necessary to protect Landlord and the Facility and thereafter bill Tenant for"/.
. the cost of same, which amountTenant shall pay within 10 days of receiving the bill from Landlord. Failure to pay '
Landlord for any insurance advance within thirty days from the date of the bill from Landlord, shaft be an c
incurable breach of this lease. '
.... 19 Guarantors ., ... .......... .. ... ... ..... . uTZ../ .
- All parties signing this Lease as Tenant or as Guarantors shall be jointly and severally liable for all obligations of;
Tenant. John Redmond and Maureen C Redmond may be released from being Guarantors at any time during the ’ .
_.... . second three-year option period (years 5 through 7) by depositing with Landlord, an additional Fifty Thousand ? ././ //
- .LZDollars as a cash guarantee and, security deposit. However, in the event Tenant or any of Tenants members4iles2.:i:ft'5«s«.fr> :
.•.• • Jor-.-or is placed involuntarily into bankruptcy proceedings.
• => rtr.mat.ranu pe reinstated as Guarantors and Landlord shall
.- LZDoilars as a cash guarantee and, security deposit. However, in the event Tenant or any of Tenants membetsttilesi
. ■ ■ Jor -or is placed involuntarily into bankruptcy proceedings. John Redmond and Maureen C. Redmond shallA ■/<///JT
“ Guarantors and Landlord shall be under no obligation to return any of the'secuntym
atgmenL. _... , .. .- ■ -.- ; 1/....
001546
■'TLease. applicable environmental tews, fhe presence and use of Hazardous Materials, or for any other purpose'
i Landlord deems necessary....Landlord shaU.jnpt be required to give Tenant prior notice of such entry Unless ehtry^W^T/
to the Dwelling is required, at which time Landlord shall give Tenant 24 hours notice.
• -T1.6.- - Reserved Rights ■ , : i. . . JI-, fe-y:
.- All rights other than those specifically conveyed in this agreement by Landlord to Tenant are reserved to
Landlord shall not be required to provide or pay any expenses related to the Facility other than property1.
• fax'ana-Landlords insurance.' Except forth© Dwelling, Landlord and Landlord’s invitees shall have the rioht to use -
... the Facility at any time, for. any'reason. Provided stalls are available (not rented to paying clients for standard 1L
. " boarding rates), and provided Landlord supplies the feed and shavings for Landlords horses. Landlord may keep =*•_
- ' .Tup'to eight horses at the Facilit/jand Tenant shall feed landlords horses twice a day, and clean tne stalls twice a : " ;J-, :■
“ , day al no charge to Landlord. If at anytime Landlords horses are preventing a paying client from boarding their
paying client, or (b) pay Tenant the amount the paying client would otherwise pay, or (c) immediately construct
-..additional stalls for Landlords horses at the Facility and move Landlords horses before the paying client needs or
■ .t’wants occupancy. • ..."
• L./iV'V Indemnity ? Z '/
..-T./TTenant shall indemnify Landlord and Landlords agents, employees, managers, associates, and affiliates,, etc.
' /. against and hold Landlord and Landlords agents, employees, managers, associates, and affiliates, etc. harmless- .....L. ..
from any and all costs, claims or liability arising from: (a) Tenant's use of the Facility; (b) the conduct of Tenant's
■ business or anything else done or permitted by Tenant to be done in or about the Facility, including any
contamination of the Facility or any other property resulting from the presence or use cf Hazardous Materials
• Lease; (d) any misrepresentation or breach of warranty by Tenant under this Lease: or (e) other acts or omissions
of Tenant. Tenant shall defend Landlord against any such -cost, claim or liability at Tenant's expense with counsel
reasonably acceptable to Landlord or. at Landlord's election, Tenant shall reimburse Landlord for any legal fees or
costs Incurred by Landlord in connection with any such claim. As a material pan of the consideration to Landlord.
and Tenant hereby waives alt claims in respect thereof against Landlord, except for any claim arising cut cf
• Landlord's gross negligence or willful misconduct. Tenant shall be responsible for all safety issues at the facility,
ana all permits or other requirements from any governmental body or agency. Tenant shall obtain releases from
customers and invitees, if applicable.

CIV214702 Sulphur Mountain/Gaggero v Redmonds Relevant Case Record 5

CIV214702 Sulphur Mountain/Gaggero v Redmonds Relevant Case Record 5

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