Document:

Exhibit 10.1

 

FIRST AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

LIMONEIRA LEWIS COMMUNITY BUILDERS,
LLC

 

This FIRST AMENDED
AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (the "Agreement") is entered into as of November 10, 2015 (the
"Effective Date"), by and between LEWIS SANTA PAULA MEMBER, LLC, a Delaware limited liability company ("Lewis"),
and LIMONEIRA EA1 LAND, LLC, a Delaware limited liability company ("Limoneira"), as the members and Lewis as the
Manager of Limoneira Lewis Community Builders, LLC, a Delaware limited liability company (the "Company"). This
Agreement is entered into with reference to the following facts and circumstances:

 

RECITALS

 

WHEREAS, the
Company was formed under the Act pursuant to the filing of a Certificate of Formation with the Secretary of State of the State
of Delaware (the "Certificate") on November 3, 2015 (the "Formation Date");

 

WHEREAS, the
Company is governed by that certain Limited Liability Company Agreement entered into by Limoneira effective as of the Formation
Date (the "Original Agreement");

 

WHEREAS, Limoneira
Company, a Delaware corporation ("LIMCO") and Lewis have entered into that certain agreement captioned "Contribution
Agreement" dated as of September 4, 2015 (the "Contribution Agreement");

 

WHEREAS, Limoneira
contributed or caused to be contributed to the Company that certain “Project Real Property"” identified
on the map attached as Exhibit A together with all of the other “Project Property” as defined in the Contribution
Agreement including, in part, the Government Agreement, Pre-Closing Agreements and Project Entitlements, all as defined in the
Contribution Agreement. As used herein the term “Property"” means the “Project Property” as
defined in Contribution Agreement;

 

WHEREAS, pursuant
to the Contribution Agreement (i) Lewis has agreed to purchase fifty percent (50%) of Limoneira's entire interest in the Company
(the "Assigned Interest") for Twenty Million Dollars ($20,000,000), and (ii) Limoneira has agreed to assign
and transfer the Assigned Interest to Lewis. The Assigned Interest will be transferred and conveyed by Limoneira to Lewis pursuant
to that certain Assignment of Company Interest entered into as of the Effective Date (the "Assignment Agreement");

 

    	 	 	 

     

    

 

 

WHEREAS, the
Members desire to cause the Company to develop the Project Real Property as contemplated in the Government Agreement, Pre-Closing
Agreements and Project Entitlements, the Approved Business Plan and Approved Budget;

 

WHEREAS, each
Member acknowledges and agrees that, (i) a portion of East Area 1 (such portion, as identified on Exhibit A, the "Retained
Property") was conveyed to the Company, but Limoneira has retained beneficial ownership thereof, and the Retained Property
will be conveyed to Limoneira (or its designated Affiliate) as soon as possible following the recordation of the Final Tract Map
No. 5854 for the Property or other final tact map or parcel map that subdivides the Retained Property as a legal parcel (and,
in all events, prior to commencement of construction activity on the Property); (ii) Limoneira has agreed to reimburse the
Company for certain infrastructure costs incurred by the Company that will benefit the Retained Property and certain adjacent real
property owned by Limoneira commonly known as "East Area 2"; and (iii) the Company has agreed to lease
to Limoneira certain agricultural land contained within the Property, until the Company requires such land to develop the Project;

 

WHEREAS, each
Member intends that the Company will (i) own, develop, subdivide, entitle, maintain, improve, hold for investment, market
and dispose of the Property in accordance with the business plan and budget approved by the Executive Committee; (ii) perform
the Assigned Agreements; and (iii) undertake such other activities that are necessary, incidental, related, or convenient
to the foregoing as may be approved by the Executive Committee (the foregoing subdivision, entitlement and development of the Property
referred to collectively as the "Project" and the Company's activities in connection with the Project referred
to as the "Business"); and

 

WHEREAS, Limoneira
and Lewis desire to enter into this Agreement (i) to provide for the admission of Lewis into the Company as a member therein,
and (ii) to amend, restate and supersede the Original Agreement in its entirety to set forth the rights, duties and obligations
of the Members and to set forth the terms and conditions for the Company's management including, without limitation, the terms
and conditions pursuant to which the Company will undertake the development of the Property.

 

NOW, THEREFORE,
in consideration of the respective obligations undertaken by the parties and other good and adequate consideration, the receipt
of which is hereby acknowledged, the parties hereby agree to amend, supersede and completely restate the Original Agreement in
its entirety as follows:

 

SECTION 1.

DEFINITIONS; THE COMPANY

 

1.1Definitions.

 

Capitalized words and
phrases used in this Agreement shall have the meanings set forth in Section 12.26.

 

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1.2Admission
of Lewis.

 

As of the Effective
Date, Lewis is hereby admitted as a member into the Company and is hereby entitled to exercise all of the rights, powers and privileges,
and is hereby obligated to perform all of the duties and obligations, of a member as set forth in this Agreement and under the
Act. The Company shall not dissolve or terminate as a result of the foregoing admission; on the contrary, the Company's business
shall continue without interruption and without any break in continuity.

 

1.3Formation.

 

The Company was formed
as a Delaware limited liability company on the Formation Date pursuant to the Act by the filing of the Certificate. The Members
hereby adopt this Agreement as the Company's limited liability company agreement within the meaning of the Act.

 

1.4Name.

 

The name of the Company
is Limoneira Lewis Community Builders, LLC. The name of the Company may be changed from time to time upon the approval of the Executive
Committee.

 

1.5Purposes.

 

The purposes of the
Company are to (a) undertake and complete the Project and operate the Business, and (b) engage in such other activities
as may be approved by the Executive Committee and permissible under the Act.

 

1.6Intent.

 

It is the intent of
the Members that the Company shall always be operated in a manner consistent with its treatment as a "partnership" for
federal and state income tax purposes. No Member shall take any action inconsistent with the express intent of the parties hereto.
Notwithstanding the foregoing, the Company is not a "partnership" for purposes of the Delaware Uniform Partnership Act
or the Delaware Uniform Limited Partnership Act and the Members are not partners of each other.

 

1.7Offices.

 

The Company shall maintain
a registered office at a location designated by the Executive Committee. The registered office may be changed to any other place
as the Executive Committee may designate from time to time. The Company's principal place of business shall be at 1156 North
Mountain Avenue, Upland, California 91786-3633, or at such other location as may be approved by the Executive Committee. The Company
may maintain one or more additional offices in such locations as may be approved from time to time by the Executive Committee.

 

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1.8Public Filings.

 

The Executive Committee
shall designate agents for service of legal process on the Company in Delaware and California from time to time in accordance with
applicable law. Any agent(s) so designated may be changed from time to time by the Executive Committee. The Manager shall cause
to be filed with the California Secretary of State such documents as are necessary to qualify the Company to transact business
in California as a foreign limited liability company (the "Application for Registration"). The Executive Committee
shall cause to be filed any amendments to the Certificate and/or the Application for Registration that are necessary to reflect
amendments to this Agreement adopted by the Members in accordance with the terms hereof or to comply with the requirements of applicable
laws.

 

1.9Term.

 

The term of the Company
commenced upon the filing of the Certificate with the Delaware Secretary of State and shall continue until the Company is dissolved
in accordance with Section 9.1 of this Agreement.

 

SECTION 2.

MEMBERS; CAPITAL CONTRIBUTIONS

 

2.1Members.

 

The name, notice address
and Percentage Interest of each Member as of the Effective Date are set forth on Exhibit B attached hereto. Upon the
admission of any additional or substituted member in accordance with this Agreement, or upon any other change in the notice address
or Percentage Interest of any Member, the Executive Committee shall update Exhibit B to reflect the then current Percentage
Interests of the Members.

 

2.2Member Funding
Prior to Obtaining Project Loan.

 

(a)Initial Capital
Contributions. Solely for federal and California state income tax purposes, as a result of the Assignment Agreement, (i) Lewis
is treated as purchasing an undivided fifty percent (50%) interest in the Property and the Company's other assets from Limoneira,
and (ii) each of Limoneira and Lewis is treated immediately thereafter as contributing an undivided fifty percent (50%) interest
in the Property and each such other asset to the Company in exchange for such Member's Membership Interest. Notwithstanding the
foregoing, neither Member has actually acquired title to the Property or any other asset of the Company under California state
law or otherwise. The Members acknowledge and agree that the fair market value of the Property is equal to $40,000,000. As a result
of the transactions described above in this Section 2.2(a), (A) the balance standing in Limoneira's Capital Account
and Unreturned Initial Contribution Balance has been credited on the Effective Date by $20,000,000; and (B) the balance standing
in Lewis' Capital Account and Unreturned Initial Contribution Balance has been credited on the Effective Date by $20,000,000. Neither
the Capital Account nor the Unreturned Initial Contribution Balance of Limoneira shall be credited as a result of the conveyance
of the Retained Property to the Company.

 

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(b)Limoneira Pre-Assignment
Expenses. The parties acknowledge and agree that prior to the Effective Date, Limoneira and/or its Affiliates paid third-party
expenses in connection with the Project described on Schedule 2.2(b) attached hereto in the amount of One Million Three
Hundred Seventy-Four Thousand Two Hundred Seventy-Nine and No/100 Dollars ($1,374,279) (the "Limoneira Pre-Assignment
Expenses"). The Limoneira Pre-Assignment Expenses shall be treated as Approved Project Costs. Each of the Capital Account
and Unreturned Additional Contribution Balance of Limoneira shall be credited with the amount of the Limoneira Pre-Assignment Expenses
as of the Effective Date. As of the Effective Date, the balance standing in Limoneira's Capital Account is equal to the amount
set forth opposite such Member's name on Exhibit B under the column labeled "Capital Account."

 

(c)Lewis Pre-Assignment
Expenses. The parties acknowledge and agree that prior to the Effective Date, Lewis and/or its Affiliates (i) paid third-party
expenses in connection with the Project described on Schedule 2.2(c) attached hereto, and (ii) incurred reimbursable
expenses, after the execution of the Contribution Agreement, of the type described in Section 6.8(a) and itemized on Schedule
2.2(c), in the aggregate amount of Two Hundred Seventeen Thousand Seven Hundred Seventy-Four and 26/100 Dollars ($217,774.26)
(the "Lewis Pre-Assignment Expenses"). Each of the Capital Account and the Unreturned Additional Account
Balance of Lewis shall be credited with the amount of the Lewis Pre-Assignment Expenses as of the Effective Date. As of the Effective
Date, the balance standing in Lewis' Capital Account is equal to the amount set forth opposite such Member's name on Exhibit B
under the column labeled "Capital Account."

 

(d)Pre-Financing
Contributions.

 

(i)If the Company
has insufficient funds to pay any Approved Project Costs (the "Shortfall"), then Lewis shall be required to make
Capital Contributions to the Company to the extent reasonably necessary to enable the Company to satisfy such Shortfall until the
earlier of (i) the Capital Balancing Date, or (ii) the date the initial Project Loan closes. The term "Capital
Balancing Date" means the date upon which the sum of (A) the Lewis Pre-Assignment Expenses, and (B) the additional
Capital Contributions made by Lewis pursuant to this Section 2.2(d) equal the amount of the Limoneira Pre-Assignment
Expenses.

 

(ii)If the initial
Project Loan has not closed prior to the Capital Balancing Date, then each Member shall be required, after the Capital Balancing
Date, to contribute fifty percent (50%) of all Capital Contributions required to enable the Company to satisfy any Shortfall until
the earlier of (1) the date the aggregate amount contributed by such Member pursuant to this sentence equals Two Million Five
Hundred Thousand Dollars ($2,500,000), or (2) the closing of the initial Project Loan.

 

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(iii)After the
aggregate Capital Contributions made by Limoneira pursuant to Section 2.2(d)(ii) equal Two Million Five Hundred Thousand
Dollars ($2,500,000), the Manager shall send a notice to Limoneira that such Capital Contributions have been made. Within ten (10)
Business Days after receipt of such notice, Limoneira shall have the right, but not the obligation, to make an initial election
to contribute fifty percent (50%) of all Capital Contributions that are required by the Company for the next 12-month period to
satisfy any Shortfall, and then shall have that same right, on each anniversary of that first election notice and after notice
from the Manager, to make the election for the next 12-month period, all until the date that the initial Project Loan closes by
delivering written notice of each such election to Lewis. If Limoneira timely elects to contribute fifty percent (50%) of such
Capital Contributions for a 12-month period, then all Capital Contributions required for such 12-month period by the Company to
satisfy any Shortfall shall be funded by the Members in accordance with their Percentage Interests. If Limoneira does not timely
elect to contribute fifty percent (50%) of Capital Contributions for any 12-month period, then Lewis shall contribute all additional
Capital Contributions required to satisfy any Shortfall for such 12-month period (or, if earlier, until the initial Project Loan
closes).

 

(iv) Any Capital
Contribution that a Member contributes pursuant to this Section 2.2(d) is referred to as a ("Pre-Financing
Contribution"). The Manager shall promptly notify the Executive Committee of any Shortfalls. The Executive Committee shall
have the right, but not the obligation, to approve each such capital call before any Member will be obligated to make any additional
Capital Contribution to the Company pursuant to this Section 2.2(d) provided any capital call made to enable the Company
to pay any “Budgeted Capital Call” or “Emergency Expense” (each as defined in Section 2.3) shall be deemed
automatically approved by the Executive Committee on the date the Executive Committee receives notice of such capital call. The
Manager shall send approved requests for Pre-Financing Contributions to all Members, regardless of whether a Member is required
to fund any such Capital Contribution. Any Capital Contribution that a Member is required to make under this Section 2.2(d)
shall be made on the date requested by the Manager provided each Member shall have at least fifteen (15) days’ notice before
it is required to make any such Capital Contributions. Each Member's Capital Account and Unreturned Additional Contribution Balance
shall be credited by any Capital Contribution made by such Member pursuant to this Section 2.2(d) on the date such
contribution is made.

 

(e)Balancing Contribution.
If, on the earlier of the date the initial Project Loan closes or the dissolution of the Company, Limoneira or Lewis has not received
distributions pursuant to Section 4.2 sufficient to reduce such Member's Unreturned Additional Contribution Balance
to zero (0), then the Member (if any) whose Unreturned Additional Contribution Balance is less than the other Member's Unreturned
Additional Contribution Balance shall be obligated within ten (10) days thereafter to make a Capital Contribution to the Company
equal to fifty percent (50%) of such excess amount (the "Balancing Contribution"). The contributing Member's Capital
Account and Unreturned Additional Contribution Balance shall each be credited by any Capital Contribution made by such Member pursuant
to this Section 2.2(e) on the date such contribution is made. The Capital Contribution made by the contributing Member
under this Section 2.2(e) shall be promptly distributed by the Company to the other Member pursuant to Section 4.2(c)
(and shall reduce the non-contributing Member's Capital Account and Unreturned Additional Contribution Balance) on the date
such distribution is made.

 

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(f)Project Loan
Contributions. Notwithstanding the terms of Section 2.2(d), if the Executive Committee approves a Project Loan,
the terms of which require the Members to contribute additional capital to the Company (such amount, a "Project Loan Capital
Shortfall"), then each Member shall be responsible for contributing to the Company, within five (5) Business Days
(or such later date designated by the Executive Committee) after receiving notice from the Manager of the Project Loan Capital
Shortfall, such Member's Percentage Interest of the amount of such Project Loan Capital Shortfall. Each Member's Capital Account
and Unreturned Additional Contribution Balance shall be credited by any Capital Contribution made by such Member pursuant to this
Section 2.2(f) on the date such contribution is made.

 

2.3Member Funding
After Obtaining Project Loan.

 

If the Company has
a Shortfall that is not otherwise required to be funded by either Member pursuant to Section 2.2(d), Section 2.2(e), Section 2.2(f),
Section 2.6 or Section 2.9, then the Manager shall promptly notify the Executive Committee of such Shortfall. The Executive Committee
shall have the right, but not the obligation, to approve each such capital call before any Member will be obligated to make any
additional Capital Contribution to the Company pursuant to this Section 2.3 provided any capital call made to enable
the Company to pay any Budgeted Capital Call or Emergency Expense shall be deemed automatically approved by the Executive Committee
on the date the Executive Committee receives notice of such capital call. The term "Emergency Expense" means an
expense that is necessary (i) to prevent an immediate threat to the health, safety or welfare of any individual in the immediate
vicinity of the Property, (ii) to prevent immediate damage or loss to any portion of the Property, (iii) to prevent the
immediate loss of value to the Property by the incurrence of any liability to the Company or otherwise, (iv) to avoid the
suspension of any necessary service in or to any portion of the Property, (v) to avoid criminal or civil liability on the
part of the Company and/or any of the Members or the direct and/or indirect owners thereof with respect to activities at the Property
or pursuant to this Agreement, or (vi) to prevent any default under any agreement to which the Company is a party, including,
without limitation, any loan documents evidencing, securing or relating to any loan made to the Company. The term "Budgeted
Capital Call" means an Approved Project Cost which the Executive Committee previously agreed in the Approved Budget or
by vote of the Executive Committee to fund by Capital Contributions.

 

Upon the approval of
any capital call by the Executive Committee pursuant to this Section 2.3, the Manager shall deliver written notice
to the Members (a "Funding Notice"). The Funding Notice shall specify (A) the amount of funding required
(such amount, the "Called Funds"); and (B) the date the Called Funds shall be contributed to the Company,
which date (the "Funding Date") shall be not earlier than (1) fifteen (15) days following the date of
the Funding Notice if the Called Funds are not required for an Emergency Expense, or (2) three (3) Business Days following
the date of the Funding Notice if the Called Funds are required for an Emergency Expense.

 

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If the Executive Committee
reasonably determines that the Company will have sufficient funds from a draw under a Project Loan or from other sources to return
the Called Funds within six (6) months after the date such funds are advanced, then the Called Funds shall be funded by the
Members in proportion to their respective Percentage Interests in the form of a loan to the Company (each such loan, a "Member
Loan"), and not as a capital contribution. If the Company does not repay any such Member Loan within such six (6)-month
period, then the balance owing under such Member Loan (both accrued and unpaid interest and unreturned principal) shall be deemed
to have been contributed to the capital of the Company by the Member that made such Member Loan (on the due date of such Member
Loan) (and such Member Loan shall be deemed to have been fully paid by the Company). If the Executive Committee determines that
the Company will not have sufficient funds to return the Called Funds within such six (6)-month period, then the Called Funds
shall be funded by Capital Contributions to be made by the Members in proportion to their respective Percentage Interests. Each
Member's Capital Account and Unreturned Additional Contribution Balance shall be credited by any Capital Contribution made (or
deemed made) by such Member pursuant to this Section 2.3 on the date such contribution is made (or deemed made).

 

2.4Member Loans.

 

All Member Loans shall
bear interest at the greater of (i) seven and 5/10ths percent (7.5%) per annum, or (ii) the Prime Rate plus two hundred
(200) basis points, with such interest under clause (i) or clause (ii) compounded monthly. In addition, each Member Loan
shall be (A) due and payable in six (6) months from the date advanced, (B) fully recourse to the Company and its
assets, but nonrecourse as to each Member and its assets, (C) repayable at any time in whole or in part without penalty, and
(D) evidenced by a promissory note executed by the Executive Committee or by such Representative(s) of the Executive Committee
as designated by the Executive Committee on behalf of the Company, which shall contain such terms and conditions as are commercially
reasonable or as may be agreed to by the lending Member and the Executive Committee. The repayment of any and all Member Loans
shall be subordinate to the payment of any fees or other reimbursements required to be made by the Company pursuant to Sections 6.8,
but shall be made prior to the distribution of any Cash Flow and/or liquidation proceeds to the Members. Accordingly, subject to
the payment of any fees and/or reimbursements required to be made under Sections 6.8, but notwithstanding the provisions
of Sections 4.1 and 9.2(b), until any and all Member Loans are repaid in full, the Members shall receive no
further distributions from the Company (except for any such fees and/or reimbursements), and all cash or property otherwise distributable
to the Members (except for any such fees and/or reimbursements) shall be paid to the advancing Member(s) as a reduction of the
outstanding balances of such Member Loans, with such funds being applied first to reduce any interest accrued thereon, and then
to reduce the principal amount of such loans.

 

2.5Failure to
Fund.

 

The following provisions
shall apply if any Member fails to fund in full when due its Funding Percentage of either a Capital Contribution required under
Sections 2.2(d), (e), (f) or Section 2.3, or a Member Loan required under Section 2.3.
A Member's "Funding Percentage" with respect to a required funding under Sections 2.2(d), (e),
(f) or Section 2.3 means the percentage of each funding that such Member is required to contribute (so that,
for example, Lewis' Funding Percentage under Section 2.2(d)(i) prior to the earlier of the Capital Balancing Date or
the date the initial Project Loan closes is 100%, but its Funding Percentage under Section 2.3 is 50%).

 

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(a)Delinquency.
If any Member (a "Delinquent Member") fails to fund in full when due its Funding Percentage of either a Capital
Contribution required under Sections 2.2(d), (e), (f) or Section 2.3, or a Member Loan required
under Section 2.3 and 2.4, and if the other Member (the "Non-Delinquent Member") has fulfilled
its required funding obligation (if any), with respect to that particular capital call then (i) the Delinquent Member's funding
shortfall shall be referred to as the "Deficit Amount"; and (ii) any amount funded by the Non-Delinquent
Member with respect to that particular Funding Notice shall be held by the Company in trust for the benefit of the Non-Delinquent
Member until the earlier of (A) the expiration of the period during which the Non-Delinquent Member can elect either remedy
pursuant to Section 2.5(b); and (B) the date the Delinquent Member cures its failure to fund in accordance with
Section 2.5(c).

 

(b)Default Remedies.
If the Delinquent Member fails to fund its entire Deficit Amount prior to the expiration of the Funding Cure Period (as defined
in Section 2.5(c) below) (the "Capital Default"), then the Non-Delinquent Member shall have the right,
but not the obligation, within thirty (30) days following the expiration of the Funding Cure Period, to elect, by written
notice to the Manager and the Delinquent Member:

 

(i)to cancel the
applicable Capital Contributions or Member Loans, in which event all amounts funded by the Members with respect to such Capital
Contributions or Member Loans shall be promptly refunded to each of them;

 

(ii)to recover
the Non-Delinquent Member's Excess Funding Amount and reduce the amount of the required Capital Contribution or Member Loan to
an amount equal to the sum of the amounts actually funded by the Members minus the Excess Funding Amount. The term "Excess
Funding Amount" means the positive difference, if any of (i) the aggregate amount funded by the Non-Delinquent Member,
minus (ii) the excess of (a) the quotient of the amount (if any) funded by the Delinquent Member divided by the Delinquent
Member's Funding Percentage minus (b) the amount (if any) funded by the Delinquent Member. As an example, but without limitation
on the foregoing, assume that Lewis' Funding Percentage is 25%, Limoneira's Funding Percentage is 75%, there is a Funding Notice
for $100 of Called Funds, Lewis funds $10 and Limoneira funds $75. In such case: (1) the Excess Funding Amount is $45, i.e.,
$75 – [($10/0.25) - $10], (2) Lewis would be treated as funding $10, and (3) Limoneira would be treated as funding
$30, i.e., its $75 initial funding minus the $45 refund of the Excess Funding Amount.

 

(iii)to advance
the entire Deficit Amount as a Default Loan to the Delinquent Member. As of the effective date of the advance of any Default Loan,
the Delinquent Member's Capital Account and Unreturned Additional Contribution Balance shall be increased by an amount equal to
the original principal balance of the Default Loan advanced to such Delinquent Member. Notwithstanding the provisions of Sections 4.1,
4.2 and 9.2(b)(ii), until any and all Default Loans advanced to the Delinquent Member are repaid in full, the Delinquent
Member shall receive no further distributions or other amounts from the Company, and all cash or property otherwise distributable
with respect to the Delinquent Member's Membership Interest in the Company (including, without limitation, any reimbursements under
Section 6.8) shall be distributed to the Non-Delinquent Member. Any such amounts distributed to the Non-Delinquent
Member shall be applied to repay all outstanding Default Loans made to the Delinquent Member on a last in, first out (LIFO) basis,
with such funds being applied first to reduce any and all interest accrued on such Default Loan(s) and then to reduce the principal
amount thereof. Any amounts so applied shall be treated, for all purposes under this Agreement, as having actually been distributed
or paid to the Delinquent Member pursuant to Sections 4.1, 4.2, 6.8 or 9.2(b) and applied by the
Delinquent Member to repay such outstanding Default Loan(s). Any Member that has received a Default Loan shall be treated as a
Delinquent Member until such Default Loan is paid in full.

 

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(c)Cure Rights.
For a period of thirty (30) days from the due date of a Capital Contribution or Member Loan, as applicable (such period, the
"Funding Cure Period"), the Delinquent Member shall have the right to cure its failure to fully fund the Deficit
Amount by making a payment to the Company in an amount equal to the Deficit Amount. The Delinquent Member's payment shall be treated
as a Capital Contribution or Member Loan, as applicable, as of the date that the Company receives the payment and any such Capital
Contribution shall be credited to the Delinquent Member's Capital Account and Unreturned Additional Contribution Balance on the
date such contribution is made.

 

(d)Loss of Voting
Rights. If the outstanding balance of any and all Default Loans made to the Delinquent Member equal or exceed Three Million
Five Hundred Thousand Dollars ($3,500,000), then, regardless of any remedy that may be selected by the Non-Delinquent Member (and
notwithstanding any other term of this Agreement), (i) the Delinquent Member's Representatives shall not be entitled to serve
on the Executive Committee and its Representatives shall not be entitled to otherwise vote upon any matters under this Agreement
(exclusive of any Fundamental Decision), (ii) the management of the business and affairs of the Company shall be vested solely
in the Representatives of the Non-Delinquent Member, (iii) the rights of the Delinquent Member shall be limited solely to
those of an assignee that is not admitted as a substituted member in accordance with the provisions of Section 8.3
(i.e., sharing in any allocations and/or distributions of Profits, Losses (and items thereof) and Net Cash Flow and liquidating
distributions to which such Member is entitled to receive under this Agreement), and (iv) the Delinquent Member shall not
have any authority to act for or bind the Company. For the avoidance of any doubt, the Members acknowledge that the loss of voting
and approval rights provided for in this Section 2.5(d) shall only apply during such time period that the outstanding
amount owed on any and all Default Loans to the Delinquent Member equal or exceed Three Million Five Hundred Thousand Dollars ($3,500,000).

 

The term "Fundamental
Decision" means (A) the admission of a new member into the Company (other than as specifically authorized under Section 8),
(B) the formation of any Company Entity, or, with respect to any Company Entity, any merger, consolidation, or other similar
arrangement, or the entry into of any joint venture, partnership, limited liability company, or other entity or business combination,
(C) the lending of Company Entity funds to, or directly or indirectly providing any Credit Enhancement for, any Person, (D) the
acquisition of any real property by the Company or any Company Entity, except as provided in the Approved Business Plan last approved
by the Delinquent Member, (E) the entering into by the Company of any transaction with any Member or any Affiliate of any
Member, except on terms and conditions generally available from third-parties providing similar goods and services of similar quality
in the same geographical location as the Project, (F) any amendment of this Agreement that would materially and adversely
affect the Delinquent Member disproportionately to the Non-Delinquent Member, (G) any act or omission that would cause the Delinquent
Member or its Affiliates to have any liability under a Recourse Document, other than acts in the ordinary course of the business
of the Company and consistent with the Approved Business Plan last approved by the Delinquent Member (for example, making draws
under a Project Loan or providing guaranties required to obtain subdivision improvement bonds), and (H) a sale of the Project,
except as contemplated in the Approved Business Plan last approved by the Delinquent Member.

 

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(e)Exclusive Remedies.
The remedies set forth in Sections 2.3(b) and 2.3(d) are the sole and exclusive remedies for a Member’s failure to make a
required Capital Contribution or Member Loan.

 

2.6Cost Overrun
Provisions.

 

(a)Definitions.

 

(i)"Base
Budget" means, as of a particular date, the Approved Budget last approved in accordance with this Agreement prior to commencement
of the construction of the Project (which commencement will be deemed to have occurred no later than the date any third party is
instructed to proceed with its work under its construction contract), as the same may have been modified only to reflect (i) a
discretionary increase in scope that was approved by the Executive Committee in a writing that expressly specifies that such increase
in scope shall be a basis for an adjustment to the Base Budget, (ii) a reduction in scope that was approved by the Executive
Committee, or (iii) additional costs that were approved by the Executive Committee in a writing that expressly specifies such
additional costs as a basis for an adjustment to the Base Budget (it being understood that the Executive Committee shall not have
any obligation to so approve an adjustment to the Base Budget in connection with any such additional costs, and that reallocations
among line items by reason of the transfer of cost savings pursuant to Section 2.6(b)(i) shall not constitute modifications
to the Base Budget). For avoidance of doubt, (a) the Base Budget shall be used by the Members solely for purposes of determining
Controllable Cost Overruns (i.e., it is the baseline budget against which actual expenditures are compared for such purpose) and
permitting the specification of sources of funds therefor, and (b) the Approved Budget may be modified in accordance with
this Agreement (for example and without limitation, if the Executive Committee approves a revision to the Approved Budget in connection
with a change order in respect of additional costs) but no such modification to the Approved Budget shall affect the Base Budget
except as expressly provided above.

 

(ii)"Controllable
Cost Overrun" means (A) a Line Item Overrun, or (B) any cost not covered by a line item (other than the contingency
line item) in the Base Budget, in each case that was caused by an act or omission of Lewis (or an Affiliate of Lewis) that constitutes
Bad Conduct.

 

(iii)"Line
Item Overrun" means, as of a particular date for a particular line item of the Base Budget, the amount, if any, by which
(x) the costs for such line item actually incurred by the Company on or before such date exceeds (y) the dollar amount
of such line item in the Base Budget.

 

    	 	 -11-	 

     

    

 

(b)Controllable
Cost Overruns.

 

(i)If a Controllable
Cost Overrun occurs at any time, it shall be paid one hundred percent (100%) by Lewis. If Lewis fails to pay a Controllable Cost
Overrun within ten (10) Business Days of written notice from Limoneira, then Lewis shall be in breach of this Agreement and, without
limitation on any other remedies, Limoneira shall have the right to reduce and offset distributions, reimbursements and other payments
otherwise required to be paid by the Company to Lewis.

 

(ii)The parties
acknowledge that Controllable Cost Overruns may be computed upon the completion of the work described in the applicable line items
or completion of the Project as a whole or as construction progresses, at the election of Limoneira, and (without limitation on
the foregoing) Limoneira's failure to require payment of a Controllable Cost Overrun as construction progresses shall not constitute
a waiver of Lewis' obligation to pay such Controllable Cost Overrun.

 

(iii)Lewis shall
pay all Controllable Cost Overruns under Section 2.6(b)(i) above in its individual capacity and not in its capacity
as a member of the Company, and such payments shall not be deemed a Capital Contribution or loan by Lewis to the Company, shall
not increase Lewis' Capital Account or Unreturned Additional Contribution Balance, and shall not entitle Lewis to the recoupment
or payment of any interest, charge or other credit or consideration in respect thereof.

 

(iv)As the final
costs of construction with respect to each Base Budget line item are determined, the same shall be added to a schedule maintained
by Manager during the construction process (the "Final Cost Schedule") showing the actual project cost ("Actual
Project Cost") in the same format (i.e., with the same line item categories) as the Base Budget. The Final Cost Schedule
shall be supported by appropriate bills and receipts and such other material as may be in the possession of Manager as verification
of Actual Project Cost.

 

2.7Contribution
of Water Rights.

 

Upon not less than
thirty (30) days' prior written notice from the Manager, Limoneira shall cause LIMCO, to transfer to the Company sufficient groundwater
production and/or water rights to the City to allow the Company to satisfy the requirements of Section 3.2.2 of that certain
First Amended and Restated Development Agreement entered into by and between the City of Santa Paula and LIMCO, dated as of February 26,
2015 (as such agreement may be further amended and/or restated from time to time), and any other groundwater production and/or
water rights required by the City or other governmental agency in connection with existing or future entitlements for the Project.
Limoneira shall not be deemed to have made a Capital Contribution or otherwise receive credit to its Capital Account or Unreturned
Additional Contribution Balance as a result of such transfer, and neither Limoneira nor LIMCO shall be entitled to the recoupment
or payment of any interest, charge or other credit or consideration as a result of such transfer.

 

    	 	 -12-	 

     

    

 

2.8Limitations
Pertaining to Capital Contributions.

 

(a)Return of Capital.
Except as otherwise provided in this Agreement, no Member shall withdraw any Capital Contributions or any money or other property
from the Company without the written consent of the other Member. Under circumstances requiring a return of any Capital Contributions,
no Member shall have the right to receive property other than cash, unless otherwise specifically provided for in this Agreement
or otherwise agreed in writing by all of the Members at the time of such distribution.

 

(b)No Interest
or Salary. No Member shall receive any interest, salary, or draws with respect to its Capital Contributions or its Capital
Account or for services rendered on behalf of the Company or otherwise in its capacity as a Member, except as otherwise expressly
provided in this Agreement.

 

(c)Liability of
Members. Except as expressly agreed upon in any writing signed by the party to be bound thereby (including this Agreement and
each Recourse Document described in Section 3.2), no Member or Representative shall be liable for the debts, liabilities,
contracts, or any other obligations of the Company. Except as set forth herein or as approved by the Executive Committee, and except
as otherwise provided by the Act or by any other applicable state law, no Member shall (i) be obligated to make a Capital
Contribution or Member Loan or otherwise provide funding to the Company; (ii) have any personal liability for the repayment
of the Capital Contributions or loans of any other Member to the Company; or (iii) have any obligation to restore or repay
to the Company any negative balance standing at any time in such Member's Capital Account.

 

(d)No Third Party
Rights. Nothing contained in this Agreement is intended or will be deemed to benefit any creditor of the Company or other third
party, and no creditor of the Company or other third party will be entitled to require any Member to solicit or demand Capital
Contributions or Member Loans from any Member. A Member's obligation to make a Capital Contribution or Member Loan cannot be assigned
to any other Person without the prior written consent of other Member.

 

2.9Special Reimbursement
of LIMCO. The Members acknowledge that LIMCO has paid $500,000 to the City under Operating Memorandum – No. 3
of the Development Agreement (as defined in the Contribution Agreement) (the “Initial Public Safety Facility Payments”).
Limoneira shall not receive any Capital Contribution credit for the Initial Public Safety Facility Payments. The Company shall
reimburse LIMCO for the Initial Public Safety Facility Payments as Budgeted Capital Call as follows: $250,000 shall be reimbursed
by the Company to LIMCO on February 1, 2017, and $250,000 shall be reimbursed by the Company to LIMCO on February 1,
2018. If the Company does not have sufficient funds to make such reimbursements to LIMCO, then the Manager shall notify the Executive
Committee of such Shortfall as required in Section 2.2(d) (iv) or 2.3, as applicable, and deliver a Funding Notice (which shall
serve as the request for Pre-Financing Contribution under Section 2.2(d)(iv) if applicable) to the Members a minimum of 15 days
prior to the scheduled reimbursement date for Called Funds sufficient to enable the Company to make such reimbursement (and if
the Manager fails to deliver such a Funding Notice, then Limoneira shall have the right to deliver such Funding Notice). If such
a Funding Notice is delivered and Lewis is not then required under Section 2.2(d) to make Capital Contributions to fund 100% of
the Shortfall, then Limoneira shall receive a Capital Contribution credit for its share of such Funding Notice (which credit shall
reduce, dollar for dollar, the Company’s reimbursement obligation to LIMCO). If Lewis fails to timely fund its share of such
a Funding Notice, then Lewis shall be the Delinquent Member and Limoneira shall have the remedies of the Non-Delinquent Member
set forth in Section 2.5. In addition to the foregoing reimbursements to Limoneira, the Company shall, as a Budgeted Capital Call,
make an additional Public Safety Facility Payment in the amount of $250,000 on February 1, 2016 to the City in accordance with
Operating Memorandum – No. 3 of the Development Agreement and the process for the notice and funding of the
capital call to make that payment to the City shall be as set forth in Section 2.2(d)(iv).

 

    	 	 -13-	 

     

    

 

SECTION 3.

PROJECT LOANS

 

3.1Terms of
the Project Loan.

 

The Members shall use
their commercially reasonable efforts to cause the Company to obtain the initial Project Loan from one (1) or more institutional
third-party lenders ("Project Lender") to finance the entitlement and development of the Project on commercially
reasonable terms and conditions and on the best terms otherwise available to the Company. Any Project Loan shall be on terms and
conditions approved by the Executive Committee, which approval shall not be unreasonably withheld, delayed or conditioned.

 

At least sixty (60)
days prior to the anticipated funding of the initial Project Loan (as reasonably determined by the Manager), the Manager shall
present to the Executive Committee for its approval the most favorable initial Project Loan that Manager believes is available
to the Company as of such date (the "Proposed Initial Loan"). If Limoneira's Representatives do not approve the
Proposed Initial Loan and Lewis' Representatives approve the Proposed Initial Loan, then Limoneira shall have ninety (90)
days following the date the Manager presented the Proposed Initial Loan to the Executive Committee to obtain an alternative Project
Loan that the Limoneira Representatives approve (the "Alternative Initial Loan") provided such loan is on terms
and conditions at least as favorable to the Company and Lewis as the terms of the Proposed Initial Loan. If Limoneira is not able
to obtain an Alternative Initial Loan prior to the expiration of such ninety (90)-day period, then Limoneira shall be required
either (i) to consent to and approve the Proposed Initial Loan (and use its commercially reasonably efforts to cause the Company
to close the Proposed Initial Loan), or (ii) to contribute to the capital of the Company within ten (10) days following
the expiration of the ninety (90)-day period above the Balancing Contribution described in Section 2.2(e) (even though
the Company will not yet have closed the initial Project Loan).

 

If Limoneira's Representatives
approve the Proposed Initial Loan and Lewis' Representatives do not approve the Proposed Initial Loan, then Limoneira, shall have
the right, but not the obligation, for a period of sixty (60) days following the date the Manager presented the Proposed Initial
Loan to the Executive Committee, as its sole right and remedy available at law and/or in equity (or otherwise), to elect by delivering
written notice to Lewis to purchase the entire Membership Interest of Lewis for an amount equal to the sum of Lewis' Unreturned
Initial Contribution Balance and Unreturned Additional Contribution Balance, together with a return thereon calculated like simple
interest at a rate equal to the lesser of (i) two hundred (200) basis points in excess of the Prime Rate, or (ii) eight
percent (8%) per annum. The closing date for the purchase of Lewis' Membership Interest pursuant to this Section 3.1
shall be within thirty (30) days following Limoneira's delivery of the purchase notice. The terms and conditions of Section 6.9(c)(iii),
(iv), (v), (vi) and (viii) shall apply to any purchase of Lewis' Membership Interest pursuant to this
Section 3.1 (and any references in such Sections to the Triggering Member shall refer to Lewis and any references to
the Non-Triggering Member shall refer to Limoneira); provided, however, if the terms of this Section 3.1 conflict with
the terms of Section 6.9(c)(iii), (iv), (v), (vi), or (viii), then the terms of this Section 3.1
shall control.

 

    	 	 -14-	 

     

    

 

3.2Credit Enhancements.

 

It is the objective
of the Members that each Project Loan shall be without recourse to the Members and their Affiliates; provided, however, if a Project
Loan may only be obtained with the execution and delivery of one (1) or more cost overrun guarantees, repayment guarantees,
completion guarantees, environmental indemnities and/or other guarantees, indemnities, documents or other agreements (collectively,
the "Recourse Documents"), then each Member hereby agrees to cause one (1) or more of its Affiliates to provide
such Recourse Documents required by the applicable Project Lender provided the terms and conditions of any such repayment or completion
guaranty that is required to be executed by any such party are not materially less favorable than the terms and conditions set
forth in the form guarantees from US Bank, Union Bank, and Wells Fargo Bank provided by Lewis to Limoneira on August 24, 2015.
Each Member further hereby agrees to provide (and cause one (1) or more of its Affiliates) to provide any Recourse Document
required to be executed as a condition to obtain any subdivision improvement or maintenance bond required for the development of
the Project or any title policy for the Company or any Project Lender. Any such party that executes and delivers any Recourse Document
is referred to individually as a "Guarantor" and collectively as the "Guarantors." Notwithstanding
any other term of this Agreement (or any fiduciary or other duties that any Member may have), each Member shall have the right
to withhold its approval of any Major Decision or other matter that would result in any Guarantor incurring any liability under
any Recourse Document.

 

The Company hereby
agrees to indemnify, defend and hold each Guarantor wholly harmless from and against any and all liabilities, obligations, losses,
damages, deficiencies, demands, claims, suits, actions, causes of action, awards, assessments, interest, fines, penalties, costs,
and expenses of all investigations, proceedings, judgments, orders, and settlements including, but not limited to, fees and expenses
of attorneys, accountants and other experts incurred in connection with the settlement or defense of any Action (collectively,
"Damages") incurred by such Guarantor that arises out of or relates to any Recourse Document to the extent provided
in Section 10.3(b).

 

The Guarantors will
enter into a Reimbursement Agreement in the form attached as Exhibit D (the "Reimbursement Agreement"),
which will provide that if the Company does not satisfy its indemnity and other obligations described in Section 10.3(b),
then the Guarantors will generally reimburse each other in such amounts as are necessary to cause the total liability that is incurred
by all of the Guarantors (for which they are entitled to be indemnified under Section 10.3(b) below) to be borne fifty
percent (50%) by the Guarantors affiliated with Lewis (the "Lewis Guarantors") and fifty percent (50%) by the
Guarantors affiliated with Limoneira (the "Limoneira Guarantors"). The Lewis Guarantors and Limoneira Guarantors
will also each be liable for fifty percent (50%) of any liability incurred by LIMCO (for which LIMCO is entitled to be indemnified
under Section 10.3(b) below) under any contracts assumed by the Company for which LIMCO is unable to obtain a release
to the extent the Company fails to satisfy its indemnity obligations described in Section 10.3(b). If there is any
inconsistency between the terms of this Agreement and the Reimbursement Agreement, then the terms of the Reimbursement Agreement
shall control.

 

    	 	 -15-	 

     

    

 

SECTION 4.

DISTRIBUTIONS

 

4.1Distributions
of Net Cash Flow.

 

Except as provided
in Sections 4.2 and 9.2(b), distributions of Net Cash Flow, if available, shall be distributed to the Members
on a quarterly basis (or at such more frequent intervals as the Executive Committee may determine) in amounts reasonably determined
by the Executive Committee, in the following order of priority:

 

(a)First, to the
Members in proportion to their respective Additional Capital Contribution IRR Deficiencies (as defined on Exhibit E),
until each Member's Additional Capital Contribution IRR Deficiency is reduced to zero;

 

(b)Second, forty-eight
percent (48%) to Limoneira and fifty-two percent (52%) to Lewis until Lewis' Initial Capital Contribution IRR Deficiency (as defined
on Exhibit E) is reduced to zero;

 

(c)Third, twenty-five
percent (25%) to Limoneira and seventy-five percent (75%) to Lewis until the Company has made aggregate distributions to the Members
pursuant to this Section 4.1(c) in an amount equal to Ten Million Dollars ($10,000,000);

 

(d)Fourth, sixty
percent (60%) to Limoneira and forty percent (40%) to Lewis until the Company has made aggregate distributions to the Members pursuant
to this Section 4.1(d) in an amount equal to Twenty Million Dollars ($20,000,000);

 

(e)Fifth, fifty percent
(50%) to Limoneira and fifty percent (50%) to Lewis until the Company has made aggregate distributions to the Members pursuant
to this Section 4.1(e) in an amount equal to Twenty Million Dollars ($20,000,000);

 

(f)Sixth, seventy-eight
percent (78%) to Limoneira and twenty-two percent (22%) to Lewis until the Company has made aggregate distributions to the Members
pursuant to this Section 4.1(f) in an amount equal to Twenty Five Million Dollars ($25,000,000);

 

    	 	 -16-	 

     

    

 

(g)Seventh, ninety-five
percent (95%) to Limoneira and five percent (5%) to Lewis until the Company has made aggregate distributions to the Members pursuant
to this Section 4.1(g) in an amount equal to Twenty Million Dollars ($20,000,000); and

 

(h)Thereafter, seventy
percent (70%) to Limoneira and thirty percent (30%) to Lewis.

 

4.2Other Special
Distributions.

 

(a)Limoneira.
An amount equal to Limoneira's Unreturned Additional Contribution Balance shall be distributed by the Company to Limoneira from
the first disbursement that is made under the initial Project Loan. If there are insufficient funds available from the Initial
Project Loan to return Limoneira's entire Unreturned Additional Contribution Balance and all of the amounts that Lewis is entitled
to receive under Section 4.2(b), then the Company shall reimburse each such Member in proportion to the amount each
such Member is entitled to receive under this Section 4.2(a).

 

(b)Lewis.
An amount equal to Lewis' Unreturned Additional Contribution Balance shall be distributed by the Company to Lewis from the first
disbursement that is made under the initial Project Loan. If there are insufficient funds available from the Initial Project Loan
to return Lewis' entire Unreturned Additional Contribution Balance and all of the amounts that Limoneira is entitled to receive
under Section 4.2(a), then the Company shall reimburse each such Member in proportion to the amount of the reimbursement
that each Member is entitled to receive from the Company under this Section 4.2(b).

 

(c)Balancing Distribution.
If each of Limoneira and Lewis is not fully reimbursed by the Company for all of the amounts each such Member is entitled to receive
under Section 4.2(a) or Section 4.2(b), as the case may be, on the date the initial Project Loan closes, then the
Member whose Unreturned Additional Contribution Balance is less than the Unreturned Additional Contribution Balance of the other
Member shall be required to make the Balancing Contribution to the Company pursuant to Section 2.2(e). Any such amounts
contributed by any Member pursuant to Section 2.2(e) shall be promptly distributed by the Company to the other Member
pursuant to this Section 4.2(c). Any such amounts distributed by the Company to any Member pursuant to this Section 4.2(c)
shall reduce such Member's Capital Account and Unreturned Additional Contribution Balance on the date such distribution is made.

 

(d)Retained Property.
The Retained Property shall be conveyed to Limoneira (or its designated Affiliate) as soon as possible following the recordation
of the Final Tract Map No. 5854 for the Property or other final tact map or parcel map that subdivides the Retained Property as
a legal parcel but, in all events, prior to obtaining a Project Loan and commencement of construction activity on the Property.
Such conveyance shall not reduce Limoneira's Capital Account or Unreturned Initial Contribution Balance. Limoneira hereby agrees
to reimburse the Company for any loss, expense, damage or liability incurred by the Company with respect to the Retained Property,
except to the extent caused by any acts or omissions of the Company or Lewis (or any Affiliates of Lewis) (and except as otherwise
set forth in that certain “Retained Property Development Agreement”, as defined in the Contribution Agreement). Any
payment made by Limoneira pursuant to the preceding sentence shall be paid by Limoneira in its individual capacity and not in its
capacity as a member of the Company and any such payment shall not be deemed a Capital Contribution or loan by Limoneira to the
Company, shall not increase Limoneira's Capital Account or Unreturned Additional Contribution Balance, and shall not entitle Limoneira
to the recoupment or payment of any interest, charge or other credit or consideration in respect thereof. Limoneira shall also
reimburse the Company for any cost incurred by the Company that benefits the Retained Property in accordance with the terms of
Exhibit F attached hereto.

 

    	 	 -17-	 

     

    

 

4.3Withholding.

 

The Company is authorized
with notice to the applicable Member to withhold and/or pay to the applicable tax authority from distributions under Sections 4.1
and 4.2 (including by reference thereto pursuant to Section 9.2(b)(ii)) if required to do so by any applicable
rule, regulation, or law any amount of federal, state, local or foreign taxes that the Executive Committee determines in good faith
and after consultation with the Company's tax advisors, that the Company is required to withhold or pay with respect to any amount
distributable or allocable to such Member pursuant to this Agreement. All amounts withheld pursuant to the Code or any provision
of any state, local or international tax law or treaty with respect to a distribution made to a Member under this Agreement will
be treated as an amount distributed to the Member pursuant to Section 4.1 or 4.2 for all purposes of this Agreement.
All amounts withheld pursuant to the Code or any provision of any state, local or international tax law treaty with respect to
an allocation will be offset against any future amounts otherwise distributable to such Member and, in the event such amount is
not offset against future amounts otherwise distributable to such Member at the time of and taking into account the liquidation
of the Company, then such Member shall be obligated to make a contribution to the Company equal to such amount. A Member's authorization
and obligations under this Section 4.3 will survive the dissolution, liquidation, or winding up of the Company.

 

SECTION 5.

TAX ALLOCATIONS

 

5.1General Allocation
Rules.

 

(a)General Allocation
Rule. For each taxable year of the Company, subject to the application of Section 5.2, Profits and Losses shall
be allocated to the Members in a manner that causes each Member's Adjusted Capital Account Balance to equal the amount that would
be distributed to such Member pursuant to Section 9.2(b)(ii) upon a hypothetical liquidation of the Company in accordance
with Section 5.1(b).

 

(b)Hypothetical
Liquidation Defined. In determining the amounts distributable to the Members under Section 9.2(b)(ii) upon a hypothetical
liquidation, it shall be presumed that (i) all of the Company's assets are sold at their respective Book Value without further
adjustment, (ii) payments to any holder of a nonrecourse debt are limited to the Book Value of the assets securing repayment
of such debt, and (iii) the proceeds of such hypothetical sale are applied and distributed in accordance with Section 9.2(b)
(without retention of any reserves).

 

    	 	 -18-	 

     

    

 

(c)Item Allocations.
If the Executive Committee determines, upon consultation with the Company's tax advisors, that allocations of Profits and Losses
over the term of the Company are not likely to cause each Member's Adjusted Capital Account Balance to equal the amount that would
be distributed to such Member pursuant to Section 9.2(b)(ii) upon a hypothetical liquidation of the Company in accordance
with Section 5.1(b), then special allocations of income, gain, loss, and/or deduction shall be made as reasonably deemed
necessary by the Executive Committee to achieve the intended Adjusted Capital Account Balances.

 

5.2Regulatory
Allocations.

 

Notwithstanding Section 5.1
and Section 5.3:

 

(a)Loss Limitation.
The Losses allocated pursuant to Section 5.1 shall not exceed the maximum amount of Losses that can be so allocated
without causing any Member to have an Adjusted Capital Account Deficit at the end of any Fiscal Year. If only one (1) Member
would have an Adjusted Capital Account Deficit as a consequence of an allocation of Losses pursuant to Section 5.1,
then the limitation set forth in this Section 5.2(a) shall be applied on a Member by Member basis so as to allocate
the maximum permissible Losses to each Member under Section 1.704-1(b)(2)(ii)(d) of the Regulations. All Losses in excess
of the limitations set forth in this Section 5.2(a) shall be allocated to the Members in proportion to their Percentage
Interests. This Section 5.2(a) shall be interpreted consistently with the loss limitation provisions of Regulations
§ 1.704-1(b)(2)(ii)(d).

 

(b)Minimum Gain
Chargeback. Except as otherwise provided in Regulations § 1.704-2(f), if there is a net decrease in partnership minimum
gain (as defined in Regulations §§ 1.704-2(b)(2) and 1.704-2(d)(1)) during any Fiscal Year, each Member shall be
specially allocated items of Company income and gain for such Fiscal Year (and, if necessary, subsequent Fiscal Years) in an amount
and in the manner required by Regulations §§ 1.704-2(f) and 1.704-2(j)(2). This Section 5.2(b) shall
be interpreted consistently with the "minimum gain" provisions of Regulations § 1.704-2 related to nonrecourse
liabilities (as defined in Regulations § 1.704-2(b)(3)).

 

(c)Member Minimum
Gain Chargeback. Except as otherwise provided in Regulation § 1.704-2(i)(4), if there is a net decrease in partner
nonrecourse debt minimum gain (as defined in Regulations §§ 1.704-2(i)(2) and 1.704-2(i)(3)) attributable to partner
nonrecourse debt (as defined in Regulations § 1.704-2(b)(4)) during any Fiscal Year, each Member who has a share of the
partner nonrecourse debt minimum gain attributable to such Member's partner nonrecourse debt, determined in accordance with Regulations
§ 1.704-2(i)(5), shall be specially allocated items of Company income and gain for such Fiscal Year (and, if necessary,
subsequent Fiscal Years) in an amount and in the manner required by Regulations §§ 1.704-2(i)(4) and 1.704-2(j)(2).
This Section 5.2(c) shall be interpreted consistently with the "minimum gain" provisions of Regulations § 1.704-2
related to partner nonrecourse liabilities (as defined in Regulations § 1.704-2(b)(4)).

 

    	 	 -19-	 

     

    

 

(d)Qualified Income
Offset. If any Member unexpectedly receives any adjustments, allocations, or distributions described in Regulations §§ 1.704-1(b)(2)(ii)(d)(4),
1.704-1(b)(2)(ii)(d)(5) or 1.704-1(b)(2)(ii)(d)(6) that results in such Member having an Adjusted Capital Account Deficit (or otherwise
increases the amount of any deficit), then items of Company income and gain shall be specially allocated to such Member in an amount
and manner sufficient to eliminate, to the extent required by the Regulations, the Adjusted Capital Account Deficit, if any, of
such Member as quickly as possible. This Section 5.2(d) shall be interpreted consistently with the "qualified
income offset" provisions of Regulations § 1.704-1(b)(2)(ii)(d).

 

(e)Nonrecourse
Deductions. Any non-recourse deduction (as defined in Regulations § 1.704-2(b)(1)) for any Fiscal Year shall be allocated
to the Members in proportion to their respective Percentage Interests.

 

(f)Member Nonrecourse
Deductions. Any partner nonrecourse deductions (as defined in Regulations §§ 1.704-2(i)(1) and 1.704-2(i)(2))
for any Fiscal Year shall be specially allocated to the Member who bears the economic risk of loss with respect to the partner
nonrecourse debt (as defined in Regulations § 1.704-2(b)(4)) to which such Member nonrecourse deductions are attributable
in accordance with Regulations § 1.704-2(i)(1).

 

(g)Section 754
Adjustments. To the extent an adjustment to the adjusted tax basis of any Company asset is required pursuant to Code § 732(d),
Code § 734(b) or Code § 743(b), the Capital Accounts of the Members shall be adjusted pursuant to Regulations
§ 1.704-1(b)(2)(iv)(m).

 

(h)Curative Allocations.
The allocations under Sections 5.2(a) through 5.2(f) (the "Regulatory Allocations") are intended
to comply with certain requirements of the Regulations. It is the intent of the Members that, to the extent possible, all Regulatory
Allocations shall be offset either with other Regulatory Allocations or with special allocations of other items of Company income,
gain, loss or deduction pursuant to this Section 5. Therefore, notwithstanding any other provision this Section 5
(other than the Regulatory Allocations), the Company shall make such offsetting special allocations of Company income, gain, loss
or deduction in whatever manner the Executive Committee reasonably determines is appropriate so that, after such offsetting allocations
are made, each Member's Capital Account balance is, to the extent possible, equal to the Capital Account balance such Member would
have had if the Regulatory Allocations were not part of this Agreement and all Company items were allocated pursuant to Section 5.1.
In exercising its discretion under this Section 5.2(h), the Executive Committee shall take into account future Regulatory
Allocations under Sections 5.2(a) through 5.2(f) that are likely to offset other Regulatory Allocations previously
made.

 

5.3Other Allocation
Rules.

 

(a)Profits, Losses,
and any other items allocable to any period shall be determined on a daily, monthly, or other basis, as determined by the Executive
Committee using any permissible method under Code § 706 and the Regulations thereunder.

 

(b)The Members are
aware of the income tax consequences of the allocations made by this Section 5 and as otherwise provided in this Agreement
and hereby agree to be bound by the provisions of this Section 5 and this Agreement in reporting their shares of Company
Profit, Loss, income, gain, deduction and credit for income tax purposes.

 

    	 	 -20-	 

     

    

 

5.4Special Tax
Allocations.

 

In accordance with
Code § 704(c) and the Regulations thereunder, income, gain, loss, and deduction with respect to any property contributed
to the capital of the Company (including, but not limited to, the Property) shall, solely for tax purposes, be allocated among
the Members so as to take account of any variation between the adjusted basis of such property to the Company for federal income
tax purposes and its initial Book Value (computed in accordance with the definition of Book Value) using the "remedial method"
as described in Regulations promulgated under Code § 704(c).

 

In the event the Book
Value of any Company asset is adjusted pursuant to subparagraph (ii) of the definition of Book Value, subsequent allocations
of income, gain, loss, and deduction with respect to such asset shall take account of any variation between the adjusted basis
of such asset for federal income tax purposes and its Book Value in the same manner as under Code § 704(c) and the Regulations
thereunder.

 

Any elections or other
decisions relating to such allocations shall be made by the Executive Committee in any manner that reasonably reflects the purpose
and intention of this Agreement. Allocations pursuant to this Section 5.4 are solely for purposes of federal, state,
and local taxes and shall not affect, or in any way be taken into account in computing, any Member's Capital Account or share of
Profits, Losses, other items, or distributions pursuant to any provision of this Agreement.

 

SECTION 6.

MANAGEMENT

 

6.1Designation
of Manager.

 

(a)Manager.
The Members hereby appoint Lewis as the initial manager (the "Manager") of the Company. Lewis shall act as the
Manager, unless removed pursuant to Section 6.1(b) or a replacement Manager is appointed by the Executive Committee.

 

(b)Designation;
Removal. Limoneira may deliver a termination notice to Lewis ("Removal Notice") removing Lewis as Manager
upon the occurrence of any of the following events:

 

(i)the Manager
is a member and Transfers its Membership Interest in breach of the terms of this Agreement, which is not cured within the Cure
Period;

 

(ii)Manager, Manager
Affiliate, or any Representative of Lewis has been convicted of a felony related to the Property or the Company (exclusive of any
felony involving the operation of a motor vehicle);

 

(iii)any Bad Conduct
by Manager, its Affiliates, or any Representative of Lewis relating to the Project or the Company;

 

    	 	 -21-	 

     

    

 

(iv)any material
breach of this Agreement or any Affiliate Agreement by Manager or any of its Affiliates, which is not cured within the Cure Period;

 

(v)The occurrence
of a Voluntary Bankruptcy Event, Involuntary Bankruptcy Event or Dissolution Event with respect to Lewis, the Manager Affiliate,
or Lewis Guarantor.

 

(c)Adjudication
of Removal. The Removal Notice shall specify the basis for the same and shall become effective ten (10) Business Days
after delivery. However, Lewis may dispute the existence of grounds for the removal by delivering written notice ("Adjudication
Notice") to Limoneira within such ten (10) Business Day period. If Lewis fails to provide an Adjudication Notice
within such ten (10) Business Day period, then notwithstanding anything to the contrary herein, Lewis shall have no right
to dispute the effectiveness of the Removal Notice, which shall be conclusive. If an Adjudication Notice is given within the period
set forth above, then (i) the dispute shall be resolved by judicial reference as provided in Section 12.11, and
(ii) if the referee upholds the grounds for termination, then the Removal Notice shall thereupon become effective immediately.

 

(d)Signature Power
of the Manager. The Manager, acting without the joinder of any Member, shall have the right, power and authority to execute
and deliver documents and instruments of every type and nature on behalf of the Company, which executed documents shall be binding
on the Company, provided the same have been approved and authorized in accordance with the terms hereof, to the extent required
herein. Any Person dealing with the Company may rely, without further inquiry, upon the identity of the Manager and may rely on
a certificate signed by the Manager as to the existence or nonexistence of any fact or facts which constitute a condition precedent
to acts by the Manager or which are in any other manner germane to the affairs of the Company. No Member shall have any authority
to hold itself out as a general agent of the Company or any other Member in any other business or activity. If requested by the
Manager, the Members shall execute and deliver resolutions confirming the authority of the Manager to act for and bind the Company
on matters described in such resolutions.

 

(e)Standard for
Management. The Manager shall fully and faithfully discharge its obligations and responsibilities and shall devote such time
and attention to affairs of the Company as may be reasonably necessary for the proper management and supervision of the business
of the Company and the discharge of its duties under this Agreement. The Manager shall, at all times, exercise good faith and shall
promote and protect the best interests of the Company. The Manager shall diligently and continuously pursue the Approved Business
Plan in accordance with its reasonable professional business judgment, and shall make the personnel of its Affiliates available
to the Company to the extent reasonably necessary to carry out its duties and obligations under this Agreement in a timely manner.
Subject to the foregoing, the Manager shall not be obligated to devote its full time efforts to the Company.

 

(f)Replacement
Manager After Removal. If Lewis is removed as Manager pursuant to a Removal Notice, Limoneira shall have the right to appoint
a replacement Manager, which may be Limoneira or an Affiliate of Limoneira.

 

    	 	 -22-	 

     

    

 

6.2Management
of Company.

 

Except as expressly
set forth in this Agreement, no Member shall undertake any action, expend any sum, make any decision, give any consent, approval
or authorization or incur any obligation for or on behalf of the Company.  Each Member shall only have the right to vote on
(and propose) the Major Decisions described in Section 6.5 and any other matter that such Member is granted the express right to
approve (or propose) under this Agreement.  The Members shall not be entitled to vote on any other matter, nor shall the consent
of the Members be required for any other decision or action.  Subject to all applicable limitations, standards, and requirements
set forth in this Agreement (including with respect to Major Decisions), the right to manage, control, and conduct the day-to-day
business and affairs of the Company is vested in the Manager which right may be delegated to a Manager Affiliate as provided below;
provided however, neither the Manager nor Manager Affiliate shall have no power to do any act outside the purposes of the Company
as set forth in Section 1.5 hereof.  Without limiting the generality of the foregoing, the Manager shall have the right, duty
and obligation to perform the development services described on Schedule 6.2 attached hereto provided Manager may delegate such
right, duty and obligation (and the right duty and obligation to perform any other services or duties required to be provided by
Manager under this Agreement) to any Affiliate of Manager (a “Manager Affiliate”) (provided such delegation
shall not in any way release Manager from its right, duty and, obligation to provide the services described in the Agreement). 
Manager has informed Limoneira that Manager has no employees and that all of Manager’s rights, duties and obligations under
this Agreement as the Manager  have been initially delegated by Manager to its Manager Affiliate, Lewis Operating Corp., a
California corporation (“LOC”) and that effective January 1, 2016, and provided Lewis is the Manager on that
date,  Lewis Management Corp., a California corporation (“LMC”), will succeed LOC as the Manager Affiliate
without the need for further approval by the Company. Subject to the limitations set forth in this Section 6.2, the Manager shall
have the authority to take any action it deems necessary or advisable in connection with implementation of the Approved Business
Plan and the Approved Budget, including, but not limited to, the following:

 

(a)Implement the
Approved Business Plan consistent with the Approved Budget, and decisions and directions of the Executive Committee;

 

(b)At the expense
of the Company, supervise contractors, accountants, attorneys and other persons necessary or appropriate to carry out the business
of the Company, and to maintain the books of account and other records and to produce the reports required by the terms of this
Agreement;

 

(c)Monitor the Company's
activities and use commercially reasonable efforts to cause the Company to maintain, at the expense of the Company, such insurance
as is required under Section 6.10 and not (i) commit or permit others to commit any waste on or of such assets,
or (ii) make any change in the use of the assets that will in any way increase the risk of fire or other hazard arising out
of the use, ownership or operation of such assets;

 

(d)Pay, at the expense
of the Company, and to the extent funds of the Company are available, all Approved Project Costs of the Company;

 

    	 	 -23-	 

     

    

 

(e)Cause all books
of account and other records of the Company to be kept in accordance with the terms of this Agreement;

 

(f)Prepare and deliver
to each Member all reports required by the terms of this Agreement;

 

(g)Maintain all funds
of the Company in a Company account in a bank or banks or financial institution or financial institutions as reasonably determined
by the Executive Committee, and be the signatory to such accounts;

 

(h)Undertake, at
the expense of the Company, such actions as are reasonably necessary or desirable in order that the Company promptly complies with
all material present and future laws, ordinances, orders, rules, regulations and requirements of all governmental authorities having
jurisdiction which may be applicable to the Company, its assets, and the operations and management of the Company;

 

(i)Perform all other
duties otherwise described in this Agreement to be carried out by the Manager and take all actions reasonably deemed necessary
to carry out any of the above rights and duties.

 

6.3Entitlement
Services.

 

Limoneira shall fully
and faithfully discharge any services specifically requested by the Executive Committee related to obtaining entitlements for the
Project, and shall devote such time and attention as may be reasonably necessary to perform such services. Limoneira shall, at
all times, exercise good faith and shall promote and protect the best interests of the Company in performing such services. Limoneira
shall make its personnel available to the Company to the extent reasonably necessary to carry out the services described in this
Section 6.3 in a timely manner. As compensation for rendering such services, Limoneira shall be entitled to receive
the amounts described in Section 6.8(b).

 

6.4Executive
Committee.

 

(a)Executive Committee.
Whenever the approval of the Executive Committee is required by this Agreement, or when this Agreement contemplates joint
action, consent or approval of the Members, such actions shall be taken through a committee (the "Executive Committee").
The Executive Committee may reserve authority to itself or delegate additional responsibilities or authority to the Manager, as
deemed necessary or advisable by the Executive Committee to accomplish the purposes of the Company.

 

(b)Election.
The Executive Committee shall be comprised of four (4) representatives (individually, a "Representative"
and collectively, the "Representatives"). Two (2) Representatives shall be appointed by Lewis (the "Lewis'
Representatives") and two Representatives shall be appointed by Limoneira (the "Limoneira's Representatives").
The Representatives shall be natural persons, but need not be residents of Delaware or members of the Company. As of the Effective
Date, Lewis' Representatives are John M. Goodman and Leon S. Swails and Limoneira's Representatives are Harold Edwards and Joe
Rumley. Each Representative shall have the authority to act on behalf of (i) the Member that appointed such Representative
on all matters that require the consent or approval of such Member under this Agreement, or (ii) the other Representative
appointed by such Member if such other Representative is absent from a meeting of the Executive Committee.

 

    	 	 -24-	 

     

    

 

(c)Removal and
Replacement. Only Lewis may remove and/or replace Lewis' Representatives and only Limoneira may remove and/or replace Limoneira's
Representatives. A Representative may resign at any time by giving written resignation to the other Representatives. The resignation
is effective without acceptance when such resignation is actually received by the other Representatives, unless a later effective
time is specified in the resignation.

 

(d)Vacancies.
A vacancy created by the removal, death, incapacity or resignation, or by any other reason, of any Representative may only be filled
by election or appointment by the Member that appointed such Representative.

 

(e)Meetings of
the Executive Committee. The Executive Committee shall meet monthly at such times and places as the Executive Committee may
designate. Unless otherwise agreed by the Executive Committee, meetings shall be held in Santa Paula, California (provided any
such meeting may be held by telephone in accordance with Section 6.4(e)(i) below). Meetings of the Executive Committee
may be called by any Member or a Representative upon written notice to the other Member and Representatives, delivered not less
than five (5) Business Days before the meeting, setting forth the time and general purpose of the meeting. Any Representative
may waive such notice.

 

(i)Conduct of
the Meetings. Any meeting of the Executive Committee may be held in person and by means of a conference, telephone or similar
communication equipment by means of which all Representatives and other individuals participating in the meeting can hear each
other, and such participation in a meeting shall constitute presence by such person at the meeting. Each Member (and its advisors)
shall be entitled to attend all meetings and conferences (both internal meetings and those including third parties) held with respect
to the Company.

 

(ii)Voting and
Decisions. Subject to Sections 2.5(d), 8.3 and 11.2(d) (which provide for the loss of voting and
approval rights), all matters that are subject to the approval, or require the action, of the Executive Committee under this Agreement
must be approved by at least one of the Lewis' Representatives and one of the Limoneira's Representatives. Notwithstanding any
other provision of this Agreement to the contrary:

 

(A)If there is a
contract between a Company Entity, on the one hand, and a Member or an Affiliate of a Member, on the other hand, then without limitation
on the rights of the Executive Committee to approve such contract under Section 6.5), the other Member (or its Representatives)
shall have the right unilaterally (but not the obligation) to make any decision or determination by the Company Entity under, exercise
any right under, or terminate, extend, modify or agree to a waiver or forbearance of, such contract. However, any approval or consent
(or other determination that does not relate to (x) a default, or (y) whether to exercise a right of the Company other
than a mere approval or consent) to be made by the Company Entity under such contract shall be subject to the approval of the Executive
Committee. Nothing in this Section 6.4(e)(ii)(A) shall reduce the obligations of the Manager to enforce such contracts
and to keep each Member informed of the status thereof (including any defaults thereunder and all facts relevant thereto) and of
any rights that may be exercised thereunder.

 

    	 	 -25-	 

     

    

 

(B)If there is a
good faith dispute under an Affiliate Agreement respecting the payment of money by the Company to the other party to such agreement,
then the Member who is an Affiliate of such party shall have no right to make a Capital Contribution or Member Loan and/or call
on the other Member to make a Capital Contribution or Member Loan, to fund such disputed payment until such dispute has been resolved.

 

(C)If there is an
outstanding Default Loan made to any Member, then the approval of such Member's Representatives serving on the Executive Committee
shall not be required for the Company to make any distribution under Sections 4.1, 4.2 or 9.2, to the
extent such distribution is not in excess of the amount required to discharge all outstanding Default Loans.

 

(iii)Attendance
and Waiver of Notice. Attendance of a Representative at any meeting shall constitute a waiver of notice of such meeting, except
where a Representative attends a meeting for the express purpose of objecting to the transaction of any business on the ground
that the meeting is not lawfully called or convened.

 

(iv)Actions
Without a Meeting. Notwithstanding any provision contained in this Agreement, any action of the Executive Committee may be
taken by written consent without a meeting. Subject to Sections 2.5(d), 8.3 and 11.2(d), any such action
taken by the Executive Committee without a meeting shall be effective only if the written consent or consents set forth the action
to be taken in writing and are signed by at least one Lewis' Representative and one Limoneira's Representative.

 

(f)Compensation.
No Representative shall be entitled to compensation for attendance at meetings of the Executive Committee or for time spent in
the capacity as a Representative. Nothing contained in this Agreement shall be construed to preclude a Representative from serving
the Company in any other capacity and receiving compensation from the Company for such service, as determined by the Executive
Committee.

 

(g)Minutes.
Minutes of all meetings of the Executive Committee shall be kept and distributed to each Representative and the Members as soon
as reasonably practicable following each meeting. If no objection is raised in writing following receipt of minutes or in any event
at the next meeting of the Executive Committee, then such minutes shall be deemed to be accurate and shall be binding on the Representatives
and the Company with respect to the matters dealt with therein.

 

6.5Major Decisions.

 

(a)Major Decisions.
Notwithstanding any other provision of this Agreement to the contrary, the following actions and matters relating to the Company
and any subsidiary of the Company (each a "Company Entity") shall be "Major Decisions" that require
the prior approval of the Executive Committee and may be proposed by any Member:

 

    	 	 -26-	 

     

    

 

(i)Any update,
revision or modification to the Approved Business Plan as set forth in Section 6.6(b) of this Agreement;

 

(ii)Any update,
revision or modification to the Approved Budget as set forth in Section 6.7(b) of this Agreement;

 

(iii)Any activity
that is inconsistent the Approved Business Plan, the Government Agreements or the Pre-Closing Agreements;

 

(iv)The entry into
any construction, development, sale or other agreement relating to any Company Entity or any of their respective assets, which
(i) materially deviates from any corresponding form contract approved by the Executive Committee or is not on a form of contract
that has been approved by the Executive Committee (any such approval not to be unreasonably withheld), (ii) is not contemplated
in the Approved Business Plan or Approved Budget or is inconsistent with the Approved Business Plan or Approved Budget, or (iii) any
termination or material modification to any of the foregoing;

 

(v)Subject to Section 3.1,
the entering into and terms of all Project Loans (and related documents) or any material modification to, or extensions thereof;

 

(vi)Undertaking
or causing a Company Entity to take any action or failure to act that would result in a breach of, or inconsistent with, the terms
of any of the Project Loan Documents, including, for this purpose, causing a Company Entity to make any prepayment of a Project
Loan that is outside the ordinary course of the terms of the payment schedules set forth therein; provided, further, the decision
to pay any final unamortized loan balance, or to refinance any Project Loan, and the terms thereof, shall be a Major Decision;

 

(vii)Except as
contemplated in the Approved Business Plan or Approved Budget, any modification to the general plan, specific plan, subdivision
maps, zoning, covenants, conditions and restrictions, or plans and specifications for the Project after they have been approved
by all applicable governmental authorities, quasi-governmental authorities, and utility providers and regulators or seeking modification
of any such approval;

 

(viii)Whether to
sell, and the terms and conditions of any sale or other conveyance of any portion of, the Project;

 

(ix)Admitting a
new member into the Company (other than as specifically authorized under Section 8);

 

(x)The selection
or termination of any Company legal counsel or auditors, the institution of any legal proceedings in the name of a Company Entity
(other than collection or enforcement actions involving trade payables or receivables valued at less than $100,000), settlement
of any legal proceedings against a Company Entity in excess of One Hundred Thousand Dollars ($100,000), confession of any judgment
against a Company Entity or any property of Company Entity in excess of One Hundred Thousand Dollars ($100,000), submitting a claim
in excess of One Hundred Thousand Dollars ($100,000) to arbitration, or releasing, compromising, assigning, or transferring any
claims, rights, or benefits of a Company Entity in excess of One Hundred Thousand Dollars ($100,000);

 

    	 	 -27-	 

     

    

 

(xi)Except for
any Capital Contributions (and issuing Funding Notices for those Capital Contributions) authorized under Sections 2.2(d),
2.2(e), 2.2(f), 2.3, 2.6, 2.7, 2.9 and 10.3(c), making any Capital Contributions,
issuing any Funding Notices, or making distributions other than distributions pursuant to Sections 4.1 or 9.2(b);

 

(xii)The formation
of any Company Entity, or, with respect to any Company Entity, any merger, consolidation, or other similar arrangement, or the
entry into any joint venture, partnership, limited liability company, or other entity or business combination;

 

(xiii)Making loans
of Company Entity funds to, or directly or indirectly providing any Credit Enhancement for, any Person;

 

(xiv)Acquiring
any real property other than in accordance with the provisions of this Agreement or the Approved Business Plan;

 

(xv)Entering into
or consummating any transaction or arrangement with any Member or any Affiliate of any Member, or any other transaction involving
an actual or potential conflict of interest;

 

(xvi)Any amendment
to this Agreement;

 

(xvii)An act that
is not reasonably related to the Business;

 

(xviii)The dissolution
of a Company Entity (exclusive of any dissolution resulting from the consummation of any transaction allowed under the current
Approved Business Plan or as a result of any transaction approved by the Executive Committee);

 

(xix)Filing, consenting
to, or acquiescing in any act or event that would constitute an event of bankruptcy with respect to a Company Entity;

 

(xx)Directly or
indirectly establishing, increasing or decreasing any reserves (other than any reserves contained in the Approved Budget);

 

(xxi)A Company
Entity entering any contract or other arrangement under which the potential value or liability of or payments by the Company Entity
are reasonably expect to exceed Two Million Dollars ($2,000,000.00);

 

(xxii)Directly
or indirectly deciding to rebuild any portion of the Project after a casualty in a case where the Company has the right to elect
whether or not to rebuild under applicable agreements to which the Company is a party, including any Project Loan; provided, however,
that consent of the Executive Committee shall be required to decide not to rebuild if the failure of the Company to rebuild could
give rise to recourse obligations of the Members or any Affiliate of a Member under any Project Loan, Recourse Document or Credit
Enhancement;

 

    	 	 -28-	 

     

    

 

(xxiii)Executing
a contract engaging a mortgage broker in connection with any financing or refinancing of the Property, the Business or any part
thereof, or giving listings of “Lots” or “Parcels” (as defined on Schedule 6.2) to outside brokers;

 

(xxiv)Except as
contemplated in the Approved Business Plan or Approved Budget, amending, modifying or deviating from the Government Agreements
or the Pre-Closing Agreements;

 

(xxv)Opening any
Bank Account at a financial institution not previously approved by the Executive Committee, or closing any Bank Account; and

 

(xxvi)Press releases
and marketing for the Property, the Company or any Company Entity (and, without limitation on the foregoing, in no event shall
Manager identify Limoneira or its Affiliates in any press release or marketing).

 

(b)Mechanism for
Obtaining Consents.

 

(i)Request for
Approval. Any Representative may propose Executive Committee approval of a Major Decision by giving written notice thereof
to each other Representative serving on the Executive Committee.

 

(ii)Failure
to Respond. If neither of the Lewis' Representatives responds in writing to any matter in a notice given under Section 6.4(b)(i)
by (i) expressly granting or withholding approval; (ii) providing notice that more time is needed; or (iii) requesting
a meeting for further information within ten (10) days following delivery of such notice, that matter shall be deemed to have been
disapproved by the Lewis' Representatives. If neither of Limoneira's Representatives responds in writing to any matter in a notice
given under Section 6.4(b)(i) by (i) expressly granting or withholding approval; (ii) providing notice that
more time is needed; or (iii) requesting a meeting for further information within ten (10) days following delivery of such
notice that matter shall be deemed to have been disapproved by Limoneira's Representatives.

 

(iii)Failure
to Agree. If mutual agreement cannot be achieved with respect to a Major Decision submitted to the Executive Committee, then
either Member may give written notice (a "Major Dispute Notice") to the other Member and its Representatives that
a dispute exists with respect thereto (a "Major Dispute"), in which event:

 

(A)The Executive
Committee shall meet in person, if possible, and otherwise by telephone, not later than five (5) Business Days following delivery
of the Major Dispute Notice and attempt in good faith to resolve the applicable Major Dispute.

 

    	 	 -29-	 

     

    

 

(B)If a Major Dispute
with respect to any "Eligible Major Decision" (defined below) is not resolved for any reason pursuant to Section 6.5(b)(iii)(A)
within a total of fifteen (15) Business Days following delivery of a Major Dispute Notice, then an impasse (the "Impasse")
shall be deemed to exist and any Member that is not in default under this Agreement (an "Eligible Member") may
initiate the buy/sell sale procedure under Section 6.9 at any time following the expiration of such fifteen (15)
Business Day period and prior to the resolution of the applicable Major Dispute. An "Eligible Major Decision"
means only the Major Decisions described in Sections 6.5(a)(i), (ii), (iv), (v), (vi),
(vii), (viii), (x), (xi), (xviii), (xix), (xx), (xxi), (xxii), and
(xxiv).

 

6.6Business
Plan.

 

(a)Adoption of
Initial Business Plan . The Company shall undertake the Project and conduct the Business, and the Manager shall, in accordance
with Section 6.1(e), operate the Company in conformance with the Company's business plan. Each business plan shall
contain (i) a narrative description of the Company's business objectives and proposed activities to be undertaken by the Company
in the conduct of the Business for the next two (2) Fiscal Years including sales plans and construction activities, (ii) a
description of the Project including a description of the proposed entitlements, site planning and amenities, (iii) development
schedules and timelines, including, without limitation, a description of the phasing for the Project, (iv) the budget for
the Company described in Section 6.7 below, (iv) a proforma for the Project, which shall set forth for the anticipated
life of the Project (A) the anticipated costs and expenses that will be incurred by the Company, in connection with the development,
construction and sale of the Project, (B) the anticipated revenues that will be realized by the Company from the Project,
(C) the anticipated Capital Contributions that the Members will be required to make to the capital of the Company, and (D) the
projected returns that will be realized by the Company, and (v) any other material matters relating to the business and operation
of the Project that is deemed relevant by the Executive Committee.

 

(b)Revisions to
Business Plan. The business plan shall be revised by the Manager on or before November 1 of each calendar year commencing
on November 1, 2016, and submitted to the Executive Committee for its review and approval. The most recent version of the
business plan that has been approved by the Executive Committee is referred to as the "Approved Business Plan"
and shall govern the operations of the Company, until such time as a revised business plan is approved. Except as otherwise provided
in this Agreement, no revisions or modifications to, or deviations from, the Approved Business Plan shall be implemented, unless
approved by the Executive Committee (which approval shall not be unreasonably withheld, delayed or conditioned). Each Approved
Business Plan shall be consistent with the Company's intention of the developing the Project as soon as market and other circumstances
reasonably permit. The Members acknowledge that the initial business plan for the Company (including, without limitation, the proforma
and the budget contained therein) has been approved by the Executive Committee as of the Effective Date.

 

    	 	 -30-	 

     

    

 

6.7Budgets.

 

(a)Adoption of
Initial Budget. Each business plan shall contain a budget, which shall include, without limitation, the following: (i) a
reasonable contingency reserve for unanticipated costs associated with the matters covered thereby; (ii) periodic payments
(including any payments due at maturity) on any debt incurred by the Company in accordance with this Agreement; (iii) the
projected costs to develop and construct the Project; (iv) routine costs incurred by the Company in connection with holding
and maintaining the Property including, without limitation, property taxes, assessments, insurance premiums and accounting and
other professional fees; (v) anticipated Capital Contributions or Member Loans that the Members will be required to make,
if any; (vi) anticipated draws from a Project Loan, if any; (vi) any other debt proceeds or public finance proceeds, and (viii)
anticipated revenues from the Project. Each budget shall apply to one Fiscal Year, but may include non-binding projections for
subsequent Fiscal Years.

 

(b)Revisions to
Budget. The Manager shall revise and update the budget on a monthly basis and present it the Executive Committee at the monthly
meeting of the Executive Committee described in Section 6.4(e). The Executive Committee shall have the right to approve
each such revised and updated budget. Any Representative having objections to any such proposed revision or update shall provide
written notice thereof to the other Representatives and the Manager ("Objection Notice"), which Objection Notice
shall set forth the objections with specificity. The Manager shall respond in writing with specificity to the Objection Notice
and include therein proposed revisions to the proposed revised budget to address each such Representative's objections. For a period
of ten (10) days after receipt by the Manager of an Objection Notice, the Executive Committee shall confer to resolve the
objections described in the Objection Notice. The most recent version of the budget that has been approved by the Members or the
Executive Committee is referred to as the "Approved Budget" and shall govern the operations of the Company for
one (1) Fiscal Year. Except as otherwise provided in this Agreement, no revisions or modifications to, or deviations from, the
Approved Budget shall be implemented, unless approved by the Executive Committee (which approval shall not be unreasonably withheld,
delayed or conditioned). The Members acknowledge that the Executive Committee has approved the initial budget as of the Effective
Date as part of the Approved Business Plan. The Approved Budget shall be automatically adjusted to take into account any increases
in real property taxes, insurance premiums, utility charges and similar items over which the Company has no control.

 

(c)Expenditure
of Company Funds. Subject to the variances described in this Section 6.7(c), specific expenditures to develop and
operate the Project may be made only by the Manager pursuant to the Approved Business Plan and Approved Budget. Notwithstanding
the foregoing, the Manager shall have discretion, without the approval of the Executive Committee or any Member, (i) to use
any contingency reserves included in the Approved Budget in any reasonable manner, (ii) to re-allocate the portion of any
line item included in the Approved Budget for which the Manager reasonably determines there will be cost savings to any other line
item contained in the Approved Budget, and (iii) to incur expenditures in excess of any line item contained in the Approved Budget,
provided, however, that in each case, (x) the amount of any expenditures made for any line item shall not exceed the greater of
$25,000 or 110% of the budgeted amount of such line item, and (y) the aggregate amount of all expenditures for any Fiscal Year
shall not exceed 105% of the aggregate amount of all budgeted line items (excluding any contingency line items) for such Fiscal
Year. The Manager shall notify the Executive Committee of any expenditures made pursuant to this Section 6.7(c). All expense items
identified in the Approved Budget from time to time, as the same may be adjusted pursuant to this Section 6.7(b), shall
constitute "Approved Project Costs" of the Company.

 

    	 	 -31-	 

     

    

 

6.8Reimbursements.

 

(a)Reimbursement
of the Manager. The Company shall reimburse the Manager on a monthly basis for the costs and expenses incurred by the Manager
or any Affiliate thereof allocable to the Company and/or the Project. The costs and expenses to be reimbursed to the Manager shall
be limited to the Manager's and its Affiliates' employees who are rendering services for the benefit of the Company and/or the
Project and to those third party expenses set forth in Section 6.8(c). The reimbursement will be calculated in accordance with
the wage schedules approved by the Members or as otherwise approved by the Executive Committee from time to time (but at least
once per Fiscal Year). Except as provided in this Section 6.8(a), the Manager will be responsible for all direct and
indirect expenses associated with the compensation of the Manager's and its Affiliates' personnel or employees associated with
Manager's performance of duties and responsibilities as Manager of the Company (the "Excluded Costs"). The Company,
however, will be responsible for all other expenses related to the Company's formation (e.g., filing fees and other costs
and expenses directly related to its organization) and operations, and the Manager shall be entitled to reimbursement from the
Company for its reasonable out-of-pocket costs that are not Excluded Costs incurred in the performance of its duties hereunder.

 

(b)Reimbursement
of Limoneira. The Company shall reimburse Limoneira on a monthly basis for the costs and expenses incurred by Limoneira allocable
to the Company and/or the Project. The costs and expenses to be reimbursed to Limoneira shall be limited to Limoneira's employees
and consultants who are rendering services for the benefit of the Company and/or the Project and to those third party expenses
set forth in Section 6.8(c). The reimbursement will be calculated in accordance with the wage schedules approved by the Members
or as otherwise approved by the Executive Committee from time to time (but at least once per Fiscal Year). Except as provided in
this Section 6.8(b), Limoneira will be responsible for all direct and indirect expenses associated with the compensation
of the Limoneira's personnel or employees associated with Limoneira's performance of duties and responsibilities hereunder.

 

(c)Compensation
and Reimbursement of Members and Representatives. The Members and Representatives shall be reimbursed by the Company for any
third-party out-of-pocket costs incurred by them in connection with the performance of their duties hereunder, to the extent and
provided that such expenses are included in the Approved Budget. The Members and Representatives will bear their own legal costs
and expenses in negotiating and documenting this Agreement and the Contribution Agreement (including, without limitation, all exhibits
and schedules contained therein). Except as provided in this Section 6.8, the Members, the Representatives and their
Affiliates shall not be entitled to compensation or reimbursement of expenses from the Company, unless the amounts of any such
compensation or reimbursements have previously been approved in writing by the Executive Committee.

 

    	 	 -32-	 

     

    

 

6.9Buy/Sell
Procedure.

 

(a)Right to Invoke.
At any time after the Development Milestone is satisfied, each Eligible Member shall have the right, but not the obligation, to
implement the procedures set forth in this Section 6.9 if there is an Impasse with respect to an Eligible Major Decision
between the Representatives of the Executive Committee by delivering written notice (the "Buy/Sell Notice") to
the other Member. The term "Development Milestone" means the completion of the grading and those infrastructure
improvements for the Project described more fully on Exhibit G. The Member delivering a Buy/Sell Notice pursuant to
this Section 6.9 is hereinafter referred to as the "Triggering Member" and the Member receiving such
Buy/Sell Notice from the Triggering Member is hereinafter referred to as the "Non-Triggering Member." The Buy/Sell
Notice shall set forth the proposed sales price for the entire Project determined in the sole and absolute discretion of the Triggering
Member (the "Sales Price"), which shall be payable, in cash, at the closing.

 

Within fifteen (15)
days following the delivery date of any Buy/Sell Notice, the Triggering Member shall cause the Independent Accountant to determine
the aggregate amount of cash that would be distributed and paid to each Member pursuant to Section 9.2(b) (including,
without limitation, any Member Loans made by such Member that would be repaid by the Company pursuant to Section 9.2(b)(i)
below) if (i) the entire Project was sold for the Sales Price as of the effective date of the Buy/Sell Notice; (ii) the
liabilities of the Company were liquidated pursuant to Section 9.2(b)(i); (iii) a reasonable reserve was established
for contingent liabilities of the Company pursuant to Section 9.2(b)(i); and (iv) the Company distributed any
remaining amounts in accordance with the provisions of Sections 9.2(b)(ii) as of the effective date of the Buy/Sell
Notice (with respect to each Member, the "Purchase Price" for such Member’s Membership Interest). Upon such
determination, the Independent Accountant shall give each Member written notice (the "Accountant's Notice") thereof.
The determination by the Independent Accountant of such amounts, including all components thereof, shall be deemed conclusive on
all of the Members, absent any material computational error. Each Member shall bear its own cost in connection with any sale of
a Membership Interest pursuant to this Section 6.9.

 

(b)Right to Deliver
Election Notice. Within one hundred twenty (120) days following the effective date of the Accountant's Notice (the “Exercise
Period"”), the Non-Triggering Member shall elect one of the following: (1) to consent to the Triggering Member’s
proposed determination for the applicable Impasse, (2) to purchase the entire Membership Interest of the Triggering Member, or
(3) to sell its entire Membership Interest to the Triggering Member, in any such case by delivering written notice (the "Exercise
Notice") of such election to the Triggering Member.

 

(i)If the Non-Triggering
Member timely delivers an Exercise Notice under the preceding clause (b)(2), then the Non-Triggering Member shall purchase the
entire Membership Interest of the Triggering Member in accordance with the terms and conditions of Section 6.9(c).

 

(ii)If the Non-Triggering
Member timely delivers an Exercise Notice under the preceding clause (b)(1), then the Executive Committee shall be deemed to have
approved the Triggering Member’s proposed determination for the applicable Impasse, and there shall be no purchase or sale
of either Member’s Membership Interest pursuant to this Section 6.9.

 

    	 	 -33-	 

     

    

 

(iii)If the Non-Triggering
Member timely delivers an Exercise Notice under the preceding clause (b)(3), or if the Non-Triggering Member fails to timely deliver
any Exercise Notice, then the Non-Triggering Member shall be deemed to have elected to sell its entire Membership Interest to the
Triggering Member and the Triggering Member shall purchase the entire Membership Interest of the Non-Triggering Member in accordance
with the terms and conditions of Section 6.9(c).

 

(c)Purchase of
a Member's Membership Interest. Following the election by the Non-Triggering Member to be a purchaser pursuant to Section 6.9(b)(i)
or the election (or deemed election) to be a seller pursuant to Section 6.9(b)(iii) (the “Buy/Sell Election”),
the following terms and conditions shall apply (with the purchasing Member referred to as the “Purchasing Member”,
and the selling Member referred to as the “Selling Member”):

 

(i)Within ten (10)
days following the Buy/Sell Election, the Purchasing Member shall deposit into an escrow account established in the reasonable
discretion of the Selling Member with a nationally recognized escrow company, a deposit (the "Deposit") by wire
transfer of immediately available federal funds in an amount equal to five percent (5%) of the Purchase Price of the Selling Member’s
Membership Interest, which shall be non-refundable to the Purchasing Member if the closing of the sale fails to occur by reason
of a default by the Purchasing Member. Upon the closing of the sale of the Selling Member's Membership Interest, the Deposit shall
be a credit against the Purchase Price. If the sale fails to occur due to a default by the Purchasing Member, then the Selling
Member may elect (i) to sue the Purchasing Member for specific performance to compel the Purchasing Member to sell its entire
Membership Interest to the Selling Member in accordance with the terms of this Section 6.9(c), (ii) to retain
the Deposit (without reduction to the Selling Member's Capital Account, Unreturned Initial Contribution Balance or Unreturned Additional
Contribution Balance) as liquidated damages, as its sole and exclusive remedy at law or equity in connection with such default
(provided that from and after any such default, the Purchasing Member and the Representatives of the Purchasing Member shall also
lose any and all rights to vote on any Company matters in accordance with the terms of Section 11.2(d) below), (iii) to
pursue all rights and remedies available at law, in equity or otherwise against the Purchasing Member if the Purchasing Member
failed to make the Deposit (including, without limitation, the right to seek the recovery of the Deposit), or (iv) to purchase
the entire Membership Interest of the Purchasing Member pursuant to Section 6.9(c)(vii).

 

The Members acknowledge
that it would be impractical and extremely difficult to estimate the damages that the Selling Member may suffer in connection with
a default by the Purchasing Member under this Section 6.9(c). Therefore, the Members have agreed that a reasonable
estimate of the total net detriment that the Selling Member would suffer in such event is and shall be the right of the Selling
Member to retain the Deposit if the Selling Member elects to do so under clause (ii) above as liquidated damages, as its sole and
exclusive remedy at law and in equity under this Section 6.9(c) (subject to the terms of Section 11.2(d)
below). The Members expressly acknowledge and agree that the retention of the Deposit is not intended as a forfeiture or penalty
within the meaning of the Act or any other state law. The Members acknowledge that they have been advised by their counsel with
respect to the foregoing provisions of this Section 6.9(c)(i) and by their initials set forth below indicate that the
foregoing remedies are fair and reasonable and agree and covenant not to contest the validity of such remedy as a penalty, forfeiture
or otherwise in any court of law (and/or in any reference or other proceeding).

 

    	 	 -34-	 

     

    

 

	
         

         

        ___________________

        INITIALS OF LEWIS
	
         

         

        ________________________

        INITIALS OF LIMONEIRA

 

(ii)Within five (5)
days before the actual date of the closing pursuant to Section 6.7(c)(iii) below, the Independent Accountant shall
recalculate the amount of cash that would be distributed and/or paid to each Member pursuant to Section 9.2(b) if such
amount were determined as of the closing date under Section 6.9(c)(iii) (in lieu of the effective date of the Buy/Sell
Notice) taking into account any contributions and/or distributions that occur after the effective date of the Buy/Sell Notice.
Upon such determination, the Independent Accountant shall give each Member written notice ("Adjusted Price Determination
Notice") thereof. The Independent Accountant shall reasonably and in good faith adjust the Purchase Price, if and to the
extent necessary, to take into account the adjustments described in the Adjusted Price Determination Notice and to take into account
appropriate prorations that would have been made if there had been an actual sale of the Project to a third party.

 

(iii)The closing
of a purchase and sale held pursuant to this Section 6.9(c) shall be held at the principal office of the Company on
a Business Day designated by the Purchasing Member within forty-five (45) days following the Buy/Sell Election. The Selling Member
shall transfer to the Purchasing Member (or the Purchasing Member's nominee(s)) the entire Membership Interest of the Selling Member
free and clear of all liens, security interests, and competing claims and shall deliver to the Purchasing Member (or the Purchasing
Member's nominee(s)) such instruments of transfer and such evidence of due authorization, execution, and delivery, and of the absence
of any such liens, security interests, or competing claims, as the Purchasing Member (or the Purchasing Member's nominee(s)) shall
reasonably request. The Purchase Price for the Selling Member's Membership Interest shall be paid by the Purchasing Member by delivering
at the closing of a confirmed wire transfer of readily available funds or one (1) or more certified or bank cashier's checks made
payable to the Selling Member in an amount equal to the Purchase Price, less the amount of the Deposit paid by the Purchasing Member
pursuant to Section 6.9(c)(i) above (which shall be released to the Selling Member at the closing). Effective as of
the closing for the purchase of the Selling Member's Membership Interest, the Selling Member shall withdraw as a member of the
Company. In connection with any such withdrawal, the Purchasing Member may cause any nominee designated in the sole and absolute
discretion of such Member to be admitted as a substituted member of the Company. Notwithstanding the foregoing, any indemnity of
the Selling Member and its Affiliates provided for under this Agreement shall survive the sale of the Membership Interest of the
Selling Member and its withdrawal as a member of the Company.

 

    	 	 -35-	 

     

    

 

(iv)At the closing,
the Selling Member shall represent and warrant to the Purchasing Member that the sale of the Selling Member's Membership Interest
to the Purchasing Member (or its nominee(s)) (A) does not violate, conflict with, or result in a breach of any provisions
of, or constitute a material default (or an event that, with notice or lapse of time or both, would constitute a material default)
under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, security or pledge agreement,
license, lease, franchise, permit, agreement or other instrument or obligation to which the Selling Member is a party (exclusive
of any such agreement or other instrument or obligation to which the Company is a party), and (B) does not violate any judgment,
ruling, order, writ, injunction, decree, statute, rule or regulation applicable to the Selling Member or any of the other properties
or assets of the Selling Member (exclusive of its Membership Interest in the Company). The Selling Member shall also represent
and warrant to the Purchasing Member at such closing that no notice to, declaration, filing or registration with, or authorization,
consent or approval, or permit from, any domestic or foreign governmental regulatory body or authority, or any other Person, is
necessary in connection with the sale of its Membership Interest to the Purchasing Member.

 

(v)The Purchase
Price shall be offset at the closing of such purchase by the then unpaid principal balance of any and all Default Loan(s) (together
with all accrued, unpaid interest thereon) made by the Purchasing Member to the Selling Member. Such Default Loan(s) (together
with all accrued, unpaid interest thereon) shall be deemed paid to the extent of such offset, with such deemed payment to be applied
first to the accrued interest thereon and thereafter to the payment of the outstanding principal amount thereof. If the Purchase
Price is insufficient to fully offset the then unpaid principal balance of any and all Default Loan(s) (together with all accrued,
unpaid interest thereon) made by the Purchasing Member to the Selling Member, then the portion of any such Default Loan(s) (and
accrued, unpaid interest thereon) that remains outstanding following such offset shall be paid at the closing referenced in Section 6.9(c)(iii).
Also, notwithstanding any provision of this Agreement to the contrary, the unpaid balance of any and all Default Loan(s) (including
all outstanding principal amounts thereof and all accrued, unpaid interest thereon) made by the Selling Member to the Purchasing
Member shall be required to be paid by the Delinquent Member at the closing referenced in Section 6.9(c)(iii).

 

(vi)On or before
the closing of a purchase and sale held pursuant to this Section 6.9(c), the Purchasing Member shall use such Member's
reasonable and good faith efforts to obtain written releases of the Selling Member and the Selling Member's Affiliates from all
liabilities under all Recourse Documents and all other liabilities of the Company for which the Selling Member (and/or its Affiliates)
may have personal liability. To the extent the Purchasing Member is unable to obtain such releases on or before the closing, the
Purchasing Member and an Affiliate of the Purchasing Member with a net worth reasonably acceptable to the Selling Member (and,
in the case of Limoneira as the Purchasing Member, LIMCO shall be deemed a reasonably acceptable party) shall jointly and severally
indemnify, defend and hold the Selling Member (and its Affiliates) wholly harmless from and against all such liabilities and guaranties,
except for any liabilities arising out of the Bad Conduct of the Selling Member (and/or its Affiliates).

 

(vii)If the Purchasing
Member defaults in its obligation to timely and validly close the purchase of the Selling Member's Membership Interest, then (A) the
Purchasing Member shall not have any further right to deliver a Buy/Sell Notice pursuant to Section 6.9(a), and (B) the
Selling Member shall have the right, but not the obligation, to elect to purchase the Membership Interest of the Purchasing Member
by delivering written notice to such defaulting Member within thirty (30) days following such default. If the Selling Member makes
the election described in clause (B) above, then the Purchase Price for the Purchasing Member's Membership Interest shall
be equal to 90% of the Purchase Price determined under Section 6.9(a) and on the other terms and conditions set forth
in this Section 6.9(c). If the Selling Member elects to purchase the Membership Interest of the Purchasing Member pursuant
to this Section 6.9(c)(vii), then the Selling Member shall not be entitled to retain the Deposit under Section 6.9(c)(i).

 

    	 	 -36-	 

     

    

 

(viii)During the
pendency of any proceedings under this Section 6.9(c), the Company shall continue its operations in the ordinary course
of business, in accordance with the terms and conditions of this Agreement, provided that no Funding Notice shall be delivered
pursuant to Section 2.3 and the Company shall not accept any contributions from the Members, but shall accept Member
Loans if the Company has a Shortfall from either or both Members on terms reasonably approved by the Executive Committee.

 

(ix)If, during
the course of proceedings under this Section 6.9(c), and prior to the Closing, there is material damage to the Project,
taken as a whole, by fire, accident, act of God or other similar casualty, the Company receives notice of a threat of condemnation
of a material portion of the Project, a claim is asserted against the Company by third parties that may not be fully satisfied
from available insurance proceeds, or another similar event threatening the continuing viability of the Company occurs, then the
Purchasing Member may terminate the proceedings under this Section 6.9(c) by written notice to Selling Member provided
that the material damage, threat of condemnation, or claim that is the basis for such termination did not result from the intentional
act or omission of Purchasing Member occurring after the commencement of proceedings under this Section 6.9(c).

 

6.10Project
Insurance.

 

The Company shall purchase
and maintain, or shall cause to be purchased and maintained, the policies of insurance determined by the Executive Committee.

 

SECTION 7.

BOOKS AND RECORDS

 

7.1Books and
Records.

 

(a)The Manager shall
keep or cause to be made available at the specified office of the Company the following: (a) a current list of the full name
and last known business, residence or mailing address of each Member, (b) a copy of the initial Certificate and all amendments
thereto, (c) copies of all written limited liability company agreements, including this Agreement, and all amendments to the
limited liability company agreements for each Company Entity, including any prior written limited liability company agreements,
no longer in effect, (d) copies of the Company's federal, state and local income tax returns and reports, (e) minutes
of every meeting of the Executive Committee as well as any written consents of the Executive Committee or actions taken by the
Executive Committee without a meeting, and (f) any other additional pertinent information, including any information and expenses
regarding any third party arrangement. Any such records or information maintained by the Company may be kept on or be in the form
of any information storage device, provided that the records so kept are convertible into legible written form within a Cure Period
of time. Any Member or its designated representative shall have the right, at any reasonable time upon at least two (2) Business
Days prior written notice, to have access to and inspect and copy the contents of such books or records and information, which,
upon request, shall be made available to such Member at the Company's office.

 

    	 	 -37-	 

     

    

 

(b)The Manager shall
keep adequate books and records at the Company's office, setting forth an account of all business transactions arising out of and
in connection with the conduct of the Company. Any Member or its designated representative shall have the right, at any reasonable
time upon at least two (2) Business Days prior written notice, to have access to and inspect and copy the contents of such books
or records.

 

7.2Reports.

 

The Manager shall provide
the following reports on the dates specified: (a) within twenty (20) days following the end of each calendar month other
than the last calendar month of the fiscal year of the Company, the Manager shall furnish to each Member, at the Company's expense,
with unaudited financial statements consisting of a balance sheet, income statement, a statement of cash flows and a statement
of sources and uses of funds for the month then ended; and (b) within twenty (20) days following the end of the last
calendar month of the Fiscal Year of the Company, the Manager shall furnish to each Member, at the Company's expense, with unaudited
financial statements consisting of a balance sheet, income statement and statement of cash flows for the Fiscal Year then ended.
In addition, the Manager shall provide monthly reports (within twenty (20) days following the end of each month) to the Members,
which shall include (i) a Project status report comparing actual results to the current Approved Budget and the Base Budget;
(ii) year-to-date draw requests on the Project Loan; (iii) status of any litigation involving the Company; (iv) status
of marketing efforts and pending sales; (v) a job cost report; (vi) such financial statements and financial and other
reports as are required to be provided by the Company under any of the Project Loan Documents; and (vii) such other reports
and information regarding the Company and/or the Business as and when reasonably requested by Limoneira. The reports described
in clauses (i) and (v) above will be in a form substantially similar to the form reports attached hereto as Exhibit H.
The Company's annual financial statements shall be audited by the Independent Accountant, and the costs of the audit shall be treated
as an Approved Project Cost for purposes of this Agreement. All of such financial statements shall be prepared in accordance with
United States generally accepted accounting principles consistently applied, provided that monthly financial statements may omit
footnotes and may be subject to normal year-end adjustments.

 

7.3Tax Matters.

 

The Manager shall cause
the Company's tax returns to be prepared and filed by the Independent Accountant, unless otherwise required by the Executive Committee,
at the expense of the Company as soon as reasonably practicable after the end of each Fiscal Year and shall cause tax information
to be delivered to each Member as reasonably necessary for the filing of tax returns by such Member. The cost of preparing and
filing such returns shall be borne by the Company (and shall be treated as an Approved Project Cost for all purposes of this Agreement).
All such tax returns shall require the approval of Limoneira prior to their filing.

 

    	 	 -38-	 

     

    

 

7.4Fiscal Year;
Accounting; Elections.

 

The Fiscal Year of
the Company shall conclude on October 31st of each year as required by Code Section 706(b) and the Regulations
promulgated thereunder ("Fiscal Year"). All decisions as to accounting matters and any election available pursuant
to the Code, except as specifically provided to the contrary herein, shall be made by the Tax Matters Partner in its reasonable
discretion and approved by the Executive Committee.

 

7.5Tax Matters
Partner.

 

Lewis shall be the
"Tax Matters Partner" pursuant to the Code and is authorized and required to represent the Company in connection
with all examinations of the Company's affairs by tax authorities, including resulting administrative and judicial proceedings,
and to expend Company funds for professional services and costs associated therewith and such costs shall be treated as an Approved
Project Costs for purposes of this Agreement. The Tax Matters Partner shall take such action as may be necessary to cause each
of the Members to become a "notice partner" within the meaning of Code Section 6223. The Tax Matters Partner agrees
to promptly notify the Members (other than the Tax Matters Partner) and the Executive Committee upon the receipt of any correspondence
from any federal, state or local tax authorities relating by giving writing notice within five (5) Business Days after becoming
aware thereof. The Tax Matters Partner may not take any action on behalf of the Company (including actions contemplated by Code
Sections 6222 through 6232) without the prior approval of the Executive Committee. The prior sentence does not authorize the
Tax Matters Partner to take any action left to the determination of an individual Member under Code Sections 6222 through
6232. Each Member (and its tax advisors) shall have the right to participate in all meetings or telephone calls with any taxing
authority and in any tax proceedings.

 

SECTION 8.

TRANSFER OF COMPANY INTERESTS; NEW MEMBERS; DEFAULT REMEDY

 

8.1General.

 

No Member shall Transfer
all or any portion of its Membership Interest in the Company, or permit any Person (an "Interest Holder") that
holds an Ownership Interest in such Member to Transfer any part of such interest, except for Transfers that comply with the requirements
of Section 8.8 and that are either (a) approved in writing by the Executive Committee, (b) permitted under
Section 8.2(a), or (c) Excluded Transfers. A transferee of a Member's interest in the Company will be admitted
as a Substituted Member only pursuant to Section 8.2(b) or Section 8.6. Any purported Transfer that does
not comply with the provisions of this Section 8 shall be void and of no force or effect to the maximum extent allowed
by law.

 

8.2Permitted
Transfers and Excluded Transfers.

 

(a)Permitted Transfers.
A Member or any direct or indirect owner of a Member shall be permitted to Transfer its entire Membership Interest or Ownership
Interest to any Person provided the Ownership Requirement applicable to such Member remains satisfied after such Transfer. The
term "Ownership Requirement" means (i) with respect to Lewis, (A) more than fifty percent (50% ) of
the total beneficial interests in Lewis are owned, directly or indirectly, by one (1) or more lineal descendants of Ralph M. Lewis
(the "Lewis Descendants") and (B) the Lewis Descendants have the right, directly or indirectly, to appoint
and replace the individual(s) that manage Lewis; and (ii) with respect to Limoneira, (A) more than fifty percent (50%)
of the total beneficial interests in Limoneira are owned, directly or indirectly, by LIMCO, and (B) only LIMCO has the right
to appoint and replace the individual(s) that manage Limoneira.

 

    	 	 -39-	 

     

    

 

(b)Admission of
Permitted Transferees. If the Executive Committee approves a Transfer of a Member's entire Membership Interest in the Company,
then the transferee shall be admitted as a Substituted Member upon (i) the payment of the reasonable out-of-pocket costs incurred
by the Company and the non-transferring Member in connection with such admission, and (ii) the execution of instruments reasonably
satisfactory in form and substance to the non-transferring Member, whereby the transferee agrees to be bound by all terms and conditions
of this Agreement that were applicable to the transferring Member. Following the satisfaction of the requirements in clauses (i)
and (ii), any such transferee shall be admitted as a member in the Company effective immediately prior to the effective date of
the Transfer (as set forth in Section 8.7), and, immediately following such admission, the transferring Member shall
cease to be a member of the Company, but shall not be released from any of its obligations or liability under this Agreement without
the written consent of the other Member, which may be granted or withheld in the other Member's sole and absolute discretion, unless
the transferee is a Person that results from a merger or consolidation with the transferring Member or that purchases all of the
assets of the transferring Member.

 

(c)Excluded Transfers.
For purposes of this Agreement, an "Excluded Transfer" means any of the following events, to the extent they would
otherwise be treated as a Transfer under the definition thereof: (i) the transfer of any publicly traded equity securities
of LIMCO; (ii) the sale of all or substantially all of the assets of LIMCO, any change of control of LIMCO, or any merger
or consolidation involving LIMCO; or (iii) the transfer of any direct or indirect interest in Lewis provided the Ownership
Requirement applicable to Lewis remains satisfied after any such transfer.

 

8.3Assignee
of Member's Interest.

 

If, pursuant to a Transfer
of a Membership Interest in the Company by operation of law and without violation of Section 8.1 (or pursuant to a
Transfer that the Company is required to recognize notwithstanding any contrary provisions of this Agreement), a Person acquires
an interest in the Company, but is not admitted as a Substituted Member pursuant to Section 8.2 or Section 8.6,
then such Person:

 

(a)shall be treated
as an assignee of a Member's interest, as provided in the Act;

 

(b)shall have no
right to inspect the books or records of the Company, to participate in the business and affairs of the Company or to exercise
any rights of a Member under the Act or this Agreement (including, without limitation, any management, voting, or consent rights
under this Agreement or the right to appoint any Representative to the Executive Committee); and

 

    	 	 -40-	 

     

    

 

(c)shall share in
distributions from the Company with respect to the transferred interest, on the same basis as the transferring Member provided
that any Damages to the Company as a result of such Transfer shall be offset against amounts that otherwise would be distributed
to such Member or otherwise paid to such Member or an Affiliate of such Member pursuant to any contract or other arrangement with
the Company (including any Affiliate Agreement).

 

8.4Election;
Allocations Between Transferor and Transferee.

 

Upon the transfer of
the Membership Interest in the Company by any Member or the distribution of any property of the Company to a Member, the Manager
may file an election in accordance with applicable Regulations, to cause the basis of the Company property to be adjusted for federal
income tax purposes as provided by Sections 734 and 743 of the Code.

 

8.5Withdrawal.

 

Except as provided
in this Section 8, no Member may voluntarily or involuntarily withdraw or dissociate from the Company or terminate
its Membership Interest therein without the prior written consent of the other Member, which consent may be withheld in such other
Member's sole and absolute discretion. Any Member who withdraws from the Company in breach of this Section 8.5 shall
be treated in accordance with Section 8.3 as an assignee of a Member's Membership Interest that is not admitted as
a member, and shall not be relieved from any obligations under this Agreement, including, but not limited to, the obligation to
make Capital Contributions and Member Loans to the Company as required under Sections 2.2 and 2.3. The right
to share in distributions granted under this Section 8.5 shall be in lieu of any right the withdrawn Member may have
under the Act or otherwise to receive a distribution or payment of the fair market value of the Member's Membership Interest in
the Company.

 

8.6Substituted
Members.

 

Except as provided
in Section 8.2, no Person taking or acquiring, by whatever means, the Membership Interest of any Member in the Company
shall be admitted as a substituted member in the Company (a "Substituted Member") without the written consent
of the Executive Committee, which consent may be withheld or granted in the sole and absolute discretion of each Representative.

 

8.7Effective
Date of Transfer.

 

Any valid Transfer
of a Member's Membership Interest in the Company, pursuant to the provisions of this Section 8 shall be effective as
of the close of business on the day preceding the closing of the transaction evidencing the Transfer. The Company shall, from the
effective date of such Transfer, thereafter make all distributions on account of the Membership Interest so transferred, to the
transferee of such Membership Interest. As between any Member and its transferee, the Profits and Losses of the Company for federal,
state, and local income tax purposes for the Fiscal Year of the Company in which such assignment occurs shall be apportioned for
federal income tax purposes in accordance with any convention permitted under Section 706(d) of the Code reasonably selected
by the Executive Committee.

 

    	 	 -41-	 

     

    

 

8.8Additional
Limitations on Transfer.

 

Notwithstanding any
other term of this Agreement, no Transfer of any Membership Interest in the Company or Ownership Interest in any Member may be
effectuated, unless in the opinion of the Company's counsel the Transfer (a) would not result in a breach of, or acceleration
of obligations under, any provision of any instrument governing any Recourse Document or under any provision of the Project Loan
Documents or other major contract to which the Company is a party; (b) would comply with the Securities Act of 1933 and applicable
securities laws of any other jurisdiction; and (c) would not violate any other applicable laws, provided that the provisions
of this Section 8.8 may be waived by the consent of the Representatives of the Executive Committee of the Member that
is not causing the Transfer of a Membership Interest or Ownership Interest in a Member. The Member who desires to Transfer a Membership
Interest in the Company (or in which an Ownership Interest is desired to be transferred) shall be responsible for all legal fees
incurred in connection with said opinion.

 

8.9Transfer
Indemnity.

 

If the transfer of
any Member's Membership Interest or the transfer of an Ownership Interest in any Member would either (i) cause the Company
to "terminate" under Section 708(b)(1)(b) of the Code, or (ii) cause there to be a "change in control"
of the Company within the meaning of California Revenue and Taxation Code Section 64(c)(1), then such Member and its transferee
shall jointly and severally indemnify the Company for any loss, cost, expense or liability incurred by the Company as a result
of (A) any documentary taxes that may be imposed on the Company, and (B) any reassessment of the Project under California
Proposition 13.

 

SECTION 9.

DISSOLUTION AND TERMINATION

 

9.1Dissolution.

 

In the event of any
Member's bankruptcy, dissolution, retirement, resignation, expulsion or other cessation to serve or the admission of any new member
into the Company, the Company shall not dissolve, but the business of the Company shall continue without interruption and without
any break in continuity. Except as may be permitted in accordance with this Agreement, to the maximum extent allowed by law, each
Member shall not have the right to, and each Member hereby agrees that such Member shall not, seek to dissolve or cause the dissolution
of the Company or seek to cause a partial or whole distribution or sale of Company assets whether by court action or otherwise,
it being agreed that any actual or attempted dissolution, distribution or sale would cause a substantial hardship to the Company
and the remaining Member. The Company shall only dissolve upon the first to occur of any of the following events:

 

(a)The unanimous
election by the Members to dissolve the Company;

 

    	 	 -42-	 

     

    

 

(b)The sale or description
of all of the Company's assets and the collection of all proceeds realized in connection thereunder (including, without limitation,
the collection of any promissory note or other deferred amounts); or

 

(c)The entry of a
judicial decree of dissolution under Section 18-802 of the Act.

 

9.2Winding Up.

 

(a)General Matters.
Following the dissolution of the Company, as provided in Section 9.1, the Manager, or if there is no Manager, each
remaining Member, shall wind up the Company as provided in Section 18-803 of the Act. During such winding up process, the
Profits, Losses and Net Cash Flow distributions shall continue to be shared by the Members in accordance with this Agreement. After
the dissolution of the Company, the Company shall cease to carry on its business, except insofar as may be necessary for the winding
up of its business, but the Company's separate existence shall continue until a certificate of cancellation has been filed with
the Delaware Secretary of State or until a decree dissolving the Company has been entered by a court of competent jurisdiction.

 

(b)Liquidation
and Distribution of Assets. Upon the dissolution of the Company, the Executive Committee shall take full account of the Company's
liabilities and assets, and such assets shall be liquidated by the Manager as promptly as is consistent with obtaining the fair
value thereof. During the period of liquidation, the business and affairs of the Company shall continue to be governed by the provisions
of this Agreement, with the management of the Company continuing as provided in Section 6. The proceeds from liquidation
of the Company's property, to the extent sufficient therefor, shall be applied and distributed in the following order:

 

(i)To the payment
and discharge of all of the Company's debts and liabilities, including those to Members who are creditors in the order of priority
required by law, and to the establishment of any necessary reserves (including, without limitation, reserves for insurance deductibles);
and

 

(ii)To the Members
in accordance with Section 4.1.

 

Any reserves withheld
pursuant to Section 9.2(b)(i) shall be distributed as soon as practicable, as determined in the reasonable discretion
of the Manager, to the Members pursuant to Section 9.2(b)(ii).

 

9.3Certificate
of Cancellation.

 

When all debts, liabilities,
and obligations of the Company have been paid and discharged or adequate provisions have been made therefor and all of the remaining
property and assets of the Company have been distributed to the Members, a certificate of cancellation shall be executed and filed
by any Member with the Delaware Secretary of State.

 

    	 	 -43-	 

     

    

 

SECTION 10.

EXCULPATION AND INDEMNIFICATION

 

10.1Exculpation
and Reliance on Information and this Agreement.

 

The Members hereby
agree to the exculpation, indemnity and other provisions set forth below as follows:

 

(a)Limitation
on Liability. Neither the Manager, and Manager Affiliate, any Member, any Officer nor any direct or indirect member, partner,
shareholder, director, officer, manager or trustee of any such Person or any other Person designated by the Manager (collectively,
the "Covered Persons") shall be liable or accountable in damages or otherwise to the Company or to any Member
for any error of judgment or any mistake of fact or law or for anything that such Covered Person may do or refrain from doing hereafter,
except to the extent caused by such Covered Person's bad faith, fraud, willful misconduct, gross negligence or breach of this Agreement
or any Affiliate Agreement.

 

(b)Reliance upon
Information, Opinions, Reports, etc. A Covered Person shall be fully protected in relying in good faith upon the records of
the Company, any information received by the Manager, any Member or the Company with respect to the Property (financial or otherwise),
and upon such information, opinions, reports or statements presented to the Company by any Person as to matters the Covered Person
reasonably believes are within such other Person's professional or expert competence including, but not limited to, information,
opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses or cash flow or any other
facts pertinent to the existence and amount of assets from which distributions to Members might properly be paid.

 

(c)Reliance upon
Agreement. To the extent that, at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities
relating thereto to the Company or to any other Covered Person, a Covered Person acting under this Agreement shall not be liable
to the Company or to any Member for its good faith reliance on the provisions of this Agreement. The provisions of this Agreement,
to the extent that they define the duties and liabilities of a Covered Person otherwise existing at law or in equity, are agreed
by the parties hereto to replace such other duties and liabilities of such Covered Person.

 

10.2Member Indemnification.

 

Each Member (such Member,
the "Indemnifying Party") shall and does hereby indemnify, defend and hold wholly harmless, to the fullest extent
permitted by law, the Company, the other Member and their respective Affiliates (each, as applicable, the "Indemnified
Parties") for, from and against and in respect of any and all Damages, actually incurred by the Indemnified Parties to
the extent attributable to Bad Conduct or breach of this Agreement (including any Capital Default) or any Affiliate Agreement by
the Indemnifying Party or any Affiliate thereof (including, but not limited to, the breach by any Indemnifying Party or Affiliate
thereof of any representation or warranty contained in this Agreement or any Affiliate Agreement); provided, however, that Damages
shall not include any Damages to the extent covered by insurance maintained by or for the benefit of such Indemnified Party or
any Excluded Liabilities. In the event the Indemnifying Party or any of its Affiliates incurs an indemnification obligation pursuant
to this Section 10.2, then the Indemnifying Party shall (i) in the event the Company has suffered Damages, make
a cash payment to the Company in the amount of the indemnification obligation which, for the avoidance of doubt, will (A) not
be treated as a Capital Contribution to the Company; and (B) not result in credit to the Indemnifying Party's Capital Account
(or Unreturned Initial Contribution Balance or Unreturned Additional Contribution Balance); or (ii) in the event the Indemnified
Party is not the Company, make a cash payment to the Indemnified Party in the amount of the indemnification obligation.

 

    	 	 -44-	 

     

    

 

10.3Company
Indemnification.

 

(a)General Indemnity.
The Company shall and does hereby indemnify, defend (with counsel selected by the Executive Committee) and hold wholly harmless,
to the fullest extent permitted by law, each Covered Person, from and against any and all Damages incurred by such Covered Person
by reason of anything which such Covered Person may do or refrain from doing that arises out of or relates to the Company. Notwithstanding
the foregoing, no Covered Person shall be entitled to be indemnified by the Company to the extent any such Damages are covered
by insurance maintained by or for the benefit of such Covered Person or to the extent such Damages are incurred by such Covered
Person by reason of such Covered Person's Bad Conduct or breach of this Agreement or any Affiliate Agreement.

 

(b)Financing Indemnity.
Without limiting the provisions of Section 10.3(a), the Guarantors may execute and deliver one (1) or more Recourse
Documents pursuant to Section 3.2 that may impose liability upon such Guarantors in connection with any financing or
refinancing obtained by the Company or other transactions entered into by the Company. The Members acknowledge and agree that each
Guarantor shall execute and deliver one (1) or more Recourse Documents as an accommodation to the Company and the Members.
Accordingly, if any Guarantor incurs any Damages under any Recourse Document, then the Company shall indemnify, defend, protect
and hold such Guarantor wholly harmless from and against all such Damages incurred by such Guarantor as a result of such Recourse
Document; provided, however, the foregoing indemnification obligation shall not extend or apply to any Damages incurred by any
such Guarantor resulting from the Bad Conduct or breach of this Agreement by, such Guarantor (other than a failure to pay any amounts
due under any such Recourse Document as a result of the breach or default of the Company) or to the extent such Damages are covered
by insurance maintained by or for the benefit of such Guarantor. For purposes of this Section 10.3(b), any contract
entered into by LIMCO that is expressly assumed by the Company under the Contribution Agreement shall be treated as a Recourse
Document if LIMCO is unable to obtain a release from any liability thereunder. Additionally, at the request of Limoneira (and at
Limoneira’s sole cost and expense), if Limoneira or its Affiliates are prohibited by the other contracting party from enforcing
any obligations expressly retained by Limoneira on any such assumed contracts by reason of the assignment of the assumed contract
to Company , the Company shall use its commercially reasonable efforts to enforce any such obligations on any such assumed contracts,
on behalf of, and for the benefit of Limoneira and its Affiliates.

 

    	 	 -45-	 

     

    

 

(c)Delivery of
Funding Notice. Notwithstanding any other term of this Agreement, the Manager may deliver a Funding Notice to the Members pursuant
to Section 2.3 if the Company has insufficient funds to satisfy its obligations under this Section 10.3.

 

10.4Survivability
of Provisions. The provisions of this Section 10 shall survive each Member's withdrawal as a member of the Company
and the liquidation of the Company.

 

SECTION 11.

DEFAULT AND REMEDIES

 

11.1Events of
Default.

 

The occurrence of any
of the following events (each an "Event of Default") shall constitute an event of default and the Member so defaulting
(the "Defaulting Member") shall thereafter be deemed to be in default without any further action whatsoever on
the part of the Company or the other Member (the "Non-Defaulting Member") (other than with respect to any notice
specifically required by this Agreement):

 

(a)Bad Acts.
Bad Conduct by such Member (or by such Member as the Manager, or by such Member’s Manager Affiliate) in connection with the
Business ("Bad Act Event");

 

(b)Resignation
or Withdrawal. The resignation or withdrawal, or attempted resignation or withdrawal, by a Member from the Company in violation
of this Agreement without the prior written consent of the other Member ("Withdrawal Event");

 

(c)Dissolution
or Liquidation. Any dissolution or liquidation of a Member or the taking of any action by its owners, members, managers, partners,
directors, majority stockholder, or Parent intended to cause the dissolution or liquidation of such Member, unless either (i) the
business of such Member is carried on without termination; or (ii) substantially all assets of the Member, including its interests
in the Company, are transferred or are to be transferred to a Permitted Transferee or to a Person acquiring substantially all of
the assets of the Parent of such Member, whether by purchase, contribution, merger, or change of control resulting from stock transfers
in a Parent that is publicly traded ("Dissolution Event");

 

(d)Voluntary Bankruptcy.
The bankruptcy of a Member, which means: (i) the inability of the Member generally to pay its debts as such debts become due,
or an admission in writing by the Member of the Member's inability to pay the Member's debts generally or a general assignment
by the Member for the benefit of creditors; (ii) the filing of any petition or answer by the Member seeking to adjudicate
the Member as bankrupt or insolvent, or seeking for the Member any liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, or composition of the Member or the Member's debts under any law relating to bankruptcy, insolvency, or reorganization
or relief of debtors, or seeking, consenting to, or acquiescing in the entry of an order for relief or the appointment of a receiver,
trustee, custodian, or other similar official for the Member or for any substantial part of the Member's property; or (iii) any
action taken by the Member to authorize any of the actions set forth above ("Voluntary Bankruptcy Event");

 

    	 	 -46-	 

     

    

 

(e)Involuntary
Bankruptcy. The involuntary bankruptcy of a Member, which means, without the consent or acquiescence of the Member, the entering
of an order for relief or approving a petition for relief or reorganization or any other petition seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or other similar relief under any present or future bankruptcy, insolvency,
or similar statute, law, or regulation, or the filing of any such petition against such person, which petition shall not be dismissed
within ninety (90) days, or without the consent or acquiescence of the Member, the entering of an order appointing a trustee, custodian,
receiver, or liquidator of the Member or of all or any substantial part of the property of the Member, which order shall not be
dismissed within ninety (90) days ("Involuntary Bankruptcy Event"); or

 

(f)Breach.
The occurrence of any of the following events; provided that if any of such event is reasonably susceptible of cure, then such
event shall not constitute an Event of Default unless and until such occurrence is not cured within a Cure Period after notice
of such default is given by the other Member:

 

(i)If any material
representation, warranty, or other statement of fact made by any Member or Affiliate thereof contained in this Agreement or any
Affiliate Agreement is materially misleading in any material respect;

 

(ii)A Member's
failure to perform any other material obligation or act required of that Member (whether in its capacity as a Member or the Manager)
by the provisions of this Agreement;

 

(iii)An Affiliate
of a Member failing to perform any material obligation, act, or acts required of such Affiliate by the provisions of any Affiliate
Agreement;

 

(iv)Any Transfer
by any Member in breach of the terms of this Agreement ("Transfer Event"); or

 

(v)Any other breach
by a Member (whether in its capacity as a Member or the Manager) of this Agreement.

 

11.2Remedies.

 

With respect to each
Event of Default other than a failure to make a Capital Contribution (except the water rights under Section 2.7) or Member
Loan which shall be exclusively governed by Section 2.5 of this Agreement:

 

(a)Non-Defaulting
Member Remedies. The Non-Defaulting Member shall have all rights and remedies set forth in this Agreement and all available
remedies at law and in equity;

 

(b)Company Remedies.
The Company shall have all rights and remedies set forth in this Agreement and all available remedies at law and in equity;

 

    	 	 -47-	 

     

    

 

(c)Default Loan
Remedies. If the Event of Default is attributable to the Defaulting Member's failure to make a cash payment to the Company
pursuant to the provisions of Section 10.2, then (i) the Non-Defaulting Member shall have the right, but not the
obligation, to make a Default Loan to the Defaulting Member in the amount of the Company's Damages; and (ii) the Defaulting
Member shall be deemed to have used the proceeds of such Default Loan to satisfy its obligation to reimburse the Company for the
Company Damages (without credit to such Defaulting Member's Capital Account, Unreturned Initial Contribution Balance or Unreturned
Additional Contribution Balance). The Non-Defaulting Member shall also be entitled to offset against the Defaulting Member's obligation
(i) any distributions or payments to be made by the Company to the Defaulting Member pursuant to Section 4.1 or
4.2 (including reference thereto pursuant to Section 9.2(b)(ii)); and (ii) any payments owed or to be made
by the Company to the Defaulting Member or any Affiliate of the Defaulting Member pursuant to any contracts with the Company (including,
without limitation, under any Affiliate Agreement). Amounts that the Company offsets pursuant to the preceding sentence shall be
treated for all purposes of this Agreement and the applicable contract as if such amounts had been paid by the Company directly
to the Defaulting Member or the Affiliate of the Defaulting Member followed by the Defaulting Member's and/or the Affiliate's payment
of such amount to the Company pursuant to the indemnification obligation provided by Section 10.2 of this Agreement.

 

(d)Loss of Voting
Rights. If there is an uncured Event of Default that is a Bad Act Event, Withdrawal Event, Voluntary Bankruptcy Event, Involuntary
Bankruptcy Event or Transfer Event, then (i) the Delinquent Member's Representatives shall not be entitled to serve on the
Executive Committee and its Representatives shall not be entitled to otherwise vote upon any matters under this Agreement (exclusive
of any Fundamental Decision), (ii) the management of the business and affairs of the Company shall be vested solely in the
Representatives of the Non-Delinquent Member, (iii) the rights of the Delinquent Member shall be limited solely to those of
an assignee that is not admitted as a substituted member in accordance with the provisions of Section 8.3 (i.e., sharing
in any allocations and/or distributions of Profits, Losses (and items thereof) and Net Cash Flow and liquidating distributions
to which such Member is entitled to receive under this Agreement), and (iv) the Delinquent Member shall not have any authority
to act for or bind the Company. For the avoidance of any doubt, the Members acknowledge that a Transfer Event shall not be to have
occurred unless such event is not cured within the Cure Period after notice of such default is given by the Non-Delinquent Member.

 

(e)Notwithstanding
the foregoing provisions of this Section 11.2, a Member (and its Affiliates) shall not be liable for any Excluded Liabilities.

 

    	 	 -48-	 

     

    

 

SECTION 12.

MISCELLANEOUS

 

12.1Notices.

 

Any notice, demand,
request or communication required or permitted to be given by any provision of this Agreement shall be in writing and shall be
delivered personally to the Person to whom the same is directed, sent by registered or certified mail, return receipt requested,
or sent by Federal Express or any other courier service guaranteeing overnight delivery, addressed to any Member at the address
appearing below such Person's name on Exhibit B or by electronic transmission to the electronic mail address set below
such Person's name on Exhibit B (followed by notice by mail sent in the manner described above, or by Federal Express
or other courier service), or if to the Company, by notice to each Member as herein provided, or to such other address as each
Member may from time to time specify by notice in accordance with this Section 12.1. Any such notice shall be deemed
to have been delivered, given, and received for all purposes as of the date so delivered, at the applicable address; provided that
notices received on a day that is not a Business Day, or after 5:00 p.m. (at the location to which delivery is to be made)
on a Business Day shall be deemed received on the next Business Day. Notice to a party shall not be effective unless and until
each required copy of such notice specified on Exhibit B (or as the parties may from time to time specify by notice
in accordance with this Section 12.1) is given. The inability to deliver a notice because of a changed address of which
no notice was given or an inoperative facsimile number for which no notice was given of a substitute number, or any rejection or
other refusal to accept any notice, shall be deemed to be the receipt of the notice as of the date of such inability to deliver
or rejection or refusal to accept. Any notice to be given by any party hereto may be given by legal counsel for such party. Any
telephone numbers set forth on Exhibit B are provided for convenience only and shall not alter the manner of giving
notice set forth in this Section 12.1.

 

12.2Non-Competition
and Independent Activities.

 

(a)Non-Competition.
Each Member agrees that it will not, and will cause its Affiliates not to, and will cause its Representatives on the Executive
Committee not to, directly or indirectly, engage in the development, construction and/or sale of any single family residential
housing projects within any of the real property that is located in the geographical area designated on Exhibit I attached
hereto during the time both Members (and/or any Affiliate(s) thereof) are members in the Company; provided, however, the restrictions
contained in this Section 12.2 will automatically expire on the date the Company has fewer than 250 residential lots
to sell in the Project and/or the Company has been dissolved. Notwithstanding the foregoing sentence, with respect to East Area 2
and the Retained Property, the restrictions and covenants contained in this Section 12.2 shall not apply to (i) any
Person that owns stock of LIMCO, or (ii) Limoneira and its Affiliates.

 

(b)Enforcement.
Each Member recognizes that irreparable harm and damage will result to the Company in the event of any breach by any Member of
any of the covenants contained in this Section 12.2. Each Member agrees that, in the event of such a breach and in
addition to any other legal or equitable remedies to which the Company may be entitled or which may be available, the Company will
be entitled to specific performance of the covenants in this Section 12.2, to an injunction from a court of law to
restrain the violation of those covenants by any Member and all other Persons acting for or with the Member, or to both specific
performance and an injunction. Each Member further agrees that, in the event the Company brings an action for the enforcement of
the covenant contained in this Section 12.2, and if the court or arbitrator under Section 12.11 finds any
part of the covenant unreasonable as to time, area, or activity covered, then such Member agrees to abide by any finding, judgment
or decree of the court or arbitrator as to what is reasonable and the Member agrees that the Company may enforce this Agreement
to the extent of such finding, judgment or decree.

 

    	 	 -49-	 

     

    

 

(c)Waiver of Rights
with Respect to Independent Activities. Except with respect to restrictions of business activities as set forth in this Section 12.2(a)
or as otherwise expressly set forth in this Agreement, nothing in this Agreement shall be construed to: (i) prohibit any Member
or any of its respective Affiliates from continuing, acquiring, owning, or otherwise participating in any transaction, investments,
and business ventures and undertakings of every type and nature (each an "Independent Activity" and collectively
the "Independent Activities") that is not owned or operated by the Company even if such Independent Activity is
or may be in competition with the Company; (ii) require any Member or any of its Affiliates to allow the Company or any other
Member to participate in the ownership or profits of any such Independent Activity; or (iii) require any Member or any of
its Affiliates to provide notice to the Company or any Member regarding any Independent Activity of such Person. To the extent
any Member would have any rights or claims against the other Member as a result of the Independent Activities of such Member or
its Affiliates, whether arising by statute, common law, or in equity, the same are hereby waived.

 

(d)Acknowledgment
of Reasonableness. The Members hereby expressly acknowledge, represent and warrant that they are sophisticated investors, they
understand the terms, conditions and waivers set forth in this Section 12.2, and that the provisions of this Section 12.2
are reasonable, taking into account the relative sophistication and bargaining position of the Members.

 

12.3Binding
Effect.

 

Subject to any transfer
restrictions set forth in this Agreement, every covenant, term, and provision of this Agreement shall be binding upon and inure
to the benefit of the Members and their respective heirs, legatees, legal representatives, successors, transferees, and assigns.

 

12.4Construction.

 

Every covenant, term,
and provision of this Agreement shall be construed simply according to its fair meaning and not strictly for or against any Member.

 

12.5Time.

 

Time is of the essence
with respect to this Agreement. In the event that the last day for performance of an act or the exercise of a right under this
Agreement falls on a day other than a Business Day, then the last day for such performance or exercise shall be the first Business
Day thereafter.

 

12.6Headings.

 

Section and other headings
contained in this Agreement are for reference purposes only and are not intended to describe, interpret, define, or limit the scope,
extent, or intent of this Agreement or any provision hereof.

 

    	 	 -50-	 

     

    

 

12.7Severability.

 

Every provision of
this Agreement is intended to be severable. If any term or provision hereof is illegal, invalid, or unenforceable for any reason
whatsoever, then such illegality, invalidity, or unenforceability shall not affect the legality, validity, or enforceability of
the remainder of this Agreement.

 

12.8Incorporation
by Reference.

 

Every exhibit, schedule,
recital and other appendix attached to this Agreement and referred to herein is hereby incorporated into this Agreement by reference.

 

12.9Additional
Documents.

 

Each Member, upon the
request of the other Member, agrees to perform all further acts and execute, acknowledge, and deliver any documents that may be
reasonably necessary, appropriate, or desirable to carry out the provisions of this Agreement.

 

12.10Variation
of Pronouns.

 

All pronouns and any
variations thereof shall be deemed to refer to masculine, feminine, or neuter, and singular or plural, as the identity of the Person
or Persons may require.

 

12.11Dispute
Resolution; Jury Trial Waiver.

 

(a)Generally.
Each and every controversy, dispute, or claim between the Members arising out of or relating to this Agreement or the transactions
contemplated hereby (exclusive of any impasse on any Major Decision other than the Major Decision) ("Dispute")
that is not settled in writing within thirty (30) days after the date (the "Claim Date") upon which any such party
hereto gives written notice to the other that a Dispute exists, shall be submitted for binding adjudication to a reference proceeding
in California, without a jury, in accordance with the provisions of Section 638, et seq. of the California
Code of Civil Procedure ("CCP"), or their successor sections. The procedures set forth herein in this Section 12.11
shall constitute the exclusive means for the resolution of any such Dispute, including, without limitation, whether such Dispute
is subject to such reference proceedings and regardless of whether such Dispute includes any tort claims.

 

The referee shall be
a retired Judge of the Superior Court in Ventura County (the "Court") selected by mutual agreement of the parties
to the Dispute, and if they cannot so agree within thirty (30) days after the Claim Date, then the referee shall be promptly
selected by the Presiding Judge of the Court (or his or her representative) and in accordance with CCP §640. The referee shall
be appointed to sit as a temporary judge, with all of the powers for a temporary judge, as authorized by law, and upon selection
should take and subscribe to the oath of office as provided for in Rule 244 of the California Rules of Court (or any subsequently
enacted Rule). Each party shall have one (1) peremptory challenge of a referee selected by the Court pursuant to CCP §170.6.
The referee shall (i) be requested to set the matter for hearing within ninety (90) days after the referee's appointment,
and (ii) try any and all issues of law or fact and report a statement of decision upon them, if possible, within thirty (30)
days after all parties have rested and the case has been submitted for decision. Any decision rendered by the referee will be final,
binding and conclusive (except as otherwise provided expressly in this Agreement) and judgment thereon shall be entered pursuant
to CCP §644 in any court in the State of California having jurisdiction.

 

    	 	 -51-	 

     

    

 

Any party may apply
for a reference proceeding by filing a petition for a hearing and/or trial by reference pursuant to CCP §638 at any time after
the earlier of (A) thirty (30) days following notice of the Claim Date, or (B) commencement by a party to this Agreement
of a regular (non-reference) legal action involving a Dispute. All discovery permitted herein shall be at the discretion of the
referee and shall be completed no later than fifteen (15) days before the first hearing (trial) date established by the referee.
The referee may extend such period in the event of a party's refusal to provide requested discovery for any reason whatsoever,
including, without limitation, legal objections raised to such discovery or unavailability of a witness due to absence or illness.
No party shall be entitled to "priority" in conducting discovery. Subject to the discretion of the referee, depositions
may be taken by either party upon seven (7) days' written notice, and request for production or inspection of documents shall be
responded to within fourteen (14) days after service. All disputes relating to discovery that cannot be resolved by the parties
shall be submitted to the referee whose decision shall be final and binding upon the parties. Pending appointment of the referee
as provided herein, the Court is empowered to issue temporary and/or provisional remedies, as appropriate.

 

(b)Manner of Proceedings.
Except as expressly set forth herein, the referee shall determine the manner in which the reference proceeding is conducted including
the time and place of all hearings, the order of presentation of evidence and all other questions that arise with respect to the
course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall be conducted
without a court reporter except that when any party so requests, a court reporter will be used at any hearing conducted before
the referee. The party making such a request shall have the obligation to arrange for and pay for the court reporter. The costs
of the court reporter at the trial shall be borne equally by the parties. All other costs shall be divided equally between all
of the parties to the proceeding; provided, however, that such costs, along with all other costs and expenses, including, without
limitation, attorneys' fees, shall be subject to award, in full or in part, by the referee, in the referee's discretion, to the
prevailing party. Unless the referee so awards attorneys' fees, each party shall be responsible for such party's own attorneys'
and expert witness fees and costs.

 

(c)Determination
of Issues. The referee shall be required to determine all issues in accordance with existing case law and the statutory law
of the State of Delaware; provided, however, that the referee shall apply the rules of civil procedure and evidence applicable
to proceedings at law in the State of California. The referee shall be empowered to enter equitable as well as legal relief, to
provide all temporary and/or provisional remedies and to enter equitable orders that will be binding upon the parties. The referee
shall issue written findings of fact and conclusions of law, a written statement of decision, and a single judgment at the close
of the reference proceeding that shall dispose of all of the claims of the parties that are the subject of the reference. The parties
hereto expressly reserve the right to contest or appeal from the final judgment or any appealable order or appealable judgment
entered by the referee. The parties hereto also expressly reserve the right to move for a new trial or a different judgment, which
new trial, if granted, is also to be a reference proceeding under this provision.

 

    	 	 -52-	 

     

    

 

(d)WAIVER OF JURY
TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTIES HERETO EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF
ANY DISPUTE AS DEFINED HEREINABOVE, IN ANY ACTION, PROCEEDING, OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST
ANY OTHER PARTY OR ANY ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE PARTIES HERETO EACH AGREE
THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A REFERENCE PROCEEDING AS PROVIDED ABOVE BUT THIS WAIVER SHALL BE EFFECTIVE
EVEN IF, FOR ANY REASON WHATSOEVER, SUCH CLAIM OR CAUSE OF ACTION CANNOT BE TRIED BY SUCH REFERENCE PROCEEDING. WITHOUT LIMITING
THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION
AS TO ANY ACTION, COUNTERCLAIM, OR OTHER PROCEEDING THAT SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY
OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS, OR MODIFICATIONS
TO THIS AGREEMENT.

 

12.12Attorneys'
Fees.

 

If any proceeding is
commenced by any Member against any other Member that arises out of, or relates to, this Agreement (including, but not limited
to, any reference proceeding), then the prevailing Member in such proceeding shall be entitled to recover reasonable attorneys'
fees and costs. Any judgment or order entered in any legal proceeding shall contain a specific provision providing for the recovery
of all costs and expenses of suit including, but not limited to, reasonable attorneys' and expert witness fees, costs and expenses
incurred in connection with (i) enforcing, perfecting and executing such judgment; (ii) post-judgment motions; (iii) contempt
proceedings; (iv) garnishment, levy, and debtor and third-party examinations; (v) discovery; and (vi) bankruptcy
litigation.

 

12.13Governing
Law.

 

Subject to Section 12.12,
the laws of the State of Delaware (without reference to the rules regarding conflict or choice of laws of such State), including,
without limitation, the Act, shall govern the organization and internal affairs of the Company, the liability of the Members of
the Company and the construction and interpretation of this Agreement.

 

12.14Waiver
of Action for Partition.

 

The Company may be
dissolved, liquidated and terminated only pursuant to the provisions of Section 9.1 above, and, to the fullest extent
permitted by applicable law but subject to the terms of this Agreement, each Member (on behalf of itself and any person or entity
that may claim for or on behalf of such Member) hereby irrevocably waives any and all other rights that it (or any such person
or entity) may have to maintain any action for or otherwise cause (i) a dissolution, liquidation or termination of the Company
or any Company Subsidiary or (ii) a sale or partition of, or appointment of a receiver for, any or all of the assets of the
Company or any Company Subsidiary, except as expressly provided in this Agreement.

 

    	 	 -53-	 

     

    

 

12.15Counterpart
Execution; Facsimile Signatures.

 

This Agreement may
be executed in any number of counterparts, each of which may be executed by less than all of the parties to this Agreement, each
of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute
one and the same agreement. Executed copies of the signature pages of this Agreement sent by facsimile or transmitted electronically
in either Tagged Image Format Files or Portable Document Format shall be treated as originals, fully binding and with full legal
force and effect, and the parties waive any rights they may have to object to such treatment.

 

12.16Entire
Agreement.

 

This Agreement constitutes
the entire agreement of the parties with respect to the subject matter hereof. All prior agreements among the parties with respect
to the subject matter of this Agreement, whether written or oral, are merged herein and shall be of no force or effect. This Agreement
can be modified or amended only upon the written consent of all Members.

 

12.17Representations
and Warranties.

 

Each Member hereby
represents and warrants as of the Effective Date, for the sole and exclusive benefit of the Company, the Manager and each other
Member, as follows:

 

(a)Such Member has
acquired its interest in the Company for its own account, for investment, and not with a view to or for the resale, distribution,
subdivision, or fractionalization thereof;

 

(b)Such Member has
no contract, undertaking, understanding, agreement or arrangement, formal or informal, with any Person to sell, transfer, or pledge
all or any portion of its interest in the Company and has no current plans to enter into any such contract, undertaking, understanding,
agreement or arrangement;

 

(c)Such Member has
such business and financial experience alone, or together with its professional advisers, that it has the capacity to protect its
own interests in connection with its acquisition of an interest in the Company;

 

(d)Such Member has
sufficient financial strength to hold the interest in the Company as an investment and bear the economic risks of that investment
(including possible complete loss of such investment) for an indefinite period of time;

 

(e)Such Member has
performed its own due diligence with respect to its interest in the Company and the Company's acquisition of the Property and is
relying on that due diligence in making this investment, and such Member is not relying on the Manager or representation or information
provided by the other Member or any of the other Member's Affiliates, with respect to tax, suitability, or other economic considerations,
other than the representations and warranties contained in this Section 12.17 and the Contribution Agreement;

 

(f)Such Member has
not received any assurances from anyone, including the other Member, that it will receive the return of, or any return on, its
Capital Contributions, and that it is aware that its investment in the Company has substantial risks, including, without limitation,
the risk of changes in the Ventura County, California real estate market and risk of the use of substantial leverage, and that
it may lose all of its Capital Contributions;

 

    	 	 -54-	 

     

    

 

(g)The Membership
Interest in the Company acquired by such Member has not been registered under the Securities Act of 1933, 15 U.S.C. § 15b
et seq., the Delaware Securities Act, the California Corporate Securities Law of 1968 or any other state securities
laws (the "Securities Acts") because the Company has issued the Interests in the Company in reliance upon the
exemptions from the registration requirements of the Securities Acts providing for issuance of securities not involving a public
offering;

 

(h)Such Member has
not received any advertisement or general solicitation with respect to the sale of the Membership Interests in the Company;

 

(i)Such Member acknowledges
and agrees that the projections contained in any documents, reports or other information previously or subsequently provided to
such Member are based on numerous assumptions that are subject to uncertainty and over which the Company and the Manager have no
control, are for illustrative purposes only and should not be viewed as a guarantee of actual results. Neither the Company, the
Manager nor any of their Affiliates (or any other party) have any obligation whatsoever to update information contained in any
projections or other materials provided to any Member. Such Member should consult with its own advisors (A) to evaluate any
projections and any associated assumptions, (B) to make its own independent determination of the feasibility of any projections
(and the assumptions contained therein), and (C) to evaluate whether such Member should execute and deliver this Agreement;

 

(j)Such Member is
an "accredited investor" within the meaning of Regulation D and the rules and regulations promulgated under the
Securities Act of 1933;

 

(k)This Agreement
constitutes a legal, valid, and binding obligation of the Member enforceable against the Member in accordance with its terms, except
as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter
in effect affecting generally the enforcement of creditors' rights and statutes or rules of equity concerning the enforcement of
the remedy of specific performance;

 

(l)Such Member is
duly organized, validly existing, and in good standing under the laws of the state of its formation or incorporation, as applicable,
is qualified to do business in the State of California, and has full power and authority to enter into this Agreement and to perform
the terms and provisions hereof;

 

(m)The execution,
delivery, and performance of this Agreement by such Member have been duly authorized by all necessary limited liability company
and corporate action and the Persons executing this Agreement and all documents related thereto on behalf of such Member are fully
authorized to do so. No consent of any person exercising control (as such term is defined in the definition of Affiliate) over
such Member or any judicial or administrative body or other governmental authority or any other Person or party is required for
such execution, delivery, or performance (or, if required, such consent already has been obtained);

 

    	 	 -55-	 

     

    

 

(n)The execution,
delivery, and performance of this Agreement by such Member do not and will not violate, conflict with or contravene any judgment,
order, decree, writ or injunction, or any law, rule, regulation, contract or agreement to which the Member is subject, which conflict,
violation, or breach would have a material adverse effect on the business, operations, properties or condition (financial or otherwise)
of the Company;

 

(o)To the actual
knowledge of such Member, no representation, warranty or covenant of such Member in this Agreement or any Affiliate Agreement contains
or will contain any untrue statement of material facts or omits or will omit to state material facts necessary to make the statements
or facts contained therein not misleading; and

 

(p)Such Member has
not retained any broker, finder, agent or the like in connection with this Agreement or the transactions contemplated under this
Agreement for which the Company or the other Member is responsible, in whole or in part, for any fee or commission.

 

12.18Enforceability
of Provisions.

 

THE MEMBERS ACKNOWLEDGE
AND AGREE THAT, UNDER THE CIRCUMSTANCES EXISTING AS OF THE DATE HEREOF, THE REMEDIES PROVIDED FOR IN SECTIONS 2.5,
6.9 AND 11.2 ARE FAIR AND REASONABLE AND DO NOT CONSTITUTE A FORFEITURE OR PENALTY. THE MEMBERS FURTHER ACKNOWLEDGE
AND AGREE THAT THEY HAVE BEEN PROVIDED WITH THE OPPORTUNITY TO CONSULT WITH INDEPENDENT COUNSEL WITH RESPECT TO THE PROVISIONS
OF SECTIONS 2.5, 6.9 AND 11.2 AND AGREE AND COVENANT NOT TO CONTEST THE VALIDITY OR ENFORCEABILITY OF
ANY SUCH REMEDY AS A PENALTY, FORFEITURE OR OTHERWISE IN ANY COURT OF LAW AND/OR REFERENCE PROCEEDING (OR OTHERWISE).

 

12.19Contractual
Duties Prevail; Approval Standard.

 

To the extent that,
at law or in equity, a Member has duties (including fiduciary duties) and liabilities relating thereto to the Company or any Company
Entity or to the other Member, a Member acting pursuant to this Agreement shall not be liable to the Company or any Company Subsidiary
or to any other Member except to the extent provided in Section 10.2. The provisions of this Agreement, to the extent
that they restrict the duties and liabilities of a Member otherwise existing at law or in equity, are agreed by the parties hereto
to replace such other duties (including fiduciary duties) and liabilities of such Member. Except as expressly provided herein:
(1) any agreement, approval, consent, judgment or other determination to be made by a Member (or its Representatives) under
this Agreement shall not be effective unless it is in writing and shall be in the sole and absolute discretion of such Member (or
its Representatives) for any reason or no reason; and (2) such Member (and its Representatives) shall be entitled to consider
only such interests and factors as it desires, including such Member's interests, and shall, to the fullest extent permitted by
applicable law, have no duty (including fiduciary duties) or obligation to give any consideration to any interest of or factors
affecting the Company, any Company Entity or any other Member.

 

    	 	 -56-	 

     

    

 

12.20Scope of
Representation.

 

EACH MEMBER HEREBY
ACKNOWLEDGES AND AGREES THAT, IN CONNECTION WITH THE DRAFTING, PREPARATION AND NEGOTIATION OF THIS AGREEMENT AND THE CONTRIBUTION
AGREEMENT, THE FORMATION OF THE COMPANY AND ANY OTHER MATTERS RELATED THERETO, (I) ALLEN MATKINS LECK GAMBLE MALLORY &
NATSIS LLP HAS ONLY REPRESENTED THE INTERESTS OF LEWIS, AND NOT THE INTERESTS OF LIMONEIRA OR THE COMPANY OR ANY OTHER PARTY (AS
A GROUP AND/OR INDIVIDUALLY), AND (II) PIRCHER, NICHOLS & MEEKS HAS ONLY REPRESENTED THE INTERESTS OF LIMONEIRA AND NOT
THE INTERESTS OF LEWIS OR THE COMPANY (OR ANY OTHER PARTY). THE ATTORNEYS, ACCOUNTANTS AND OTHER EXPERTS WHO PERFORM SERVICES FOR
ANY OF THE PARTIES HERETO MAY ALSO PERFORM SERVICES FOR THE COMPANY. TO THE EXTENT THE FOREGOING REPRESENTATION CONSTITUTES A CONFLICT
OF INTEREST, EACH MEMBER HEREBY EXPRESSLY WAIVES ANY SUCH CONFLICT OF INTEREST. EACH MEMBER FURTHER ACKNOWLEDGES THAT THE ATTORNEYS,
ACCOUNTANTS AND OTHER EXPERTS WHO PERFORM SERVICES FOR THE COMPANY SHALL NOT BE DEEMED BY VIRTUE OF SUCH REPRESENTATION TO HAVE
ALSO REPRESENTED ANY OTHER PARTY IN CONNECTION WITH ANY SUCH MATTERS.

 

12.21Nonrecourse
Parties.

 

Except as provided
in Sections 3.2 and 10.2 (and without limiting the liability of Lewis Guarantor or Limoneira Guarantor under
its Joinder), no direct or indirect partner, shareholder, officer, director or trustee of the Manager or any Member (collectively,
the "Nonrecourse Parties") shall be personally liable in any manner or to any extent under or in connection with
this Agreement, and the Company shall not have any recourse to any assets of any of the Nonrecourse Parties to satisfy any liability,
judgment or claim that may be obtained or made against any such Nonrecourse Party under this Agreement. The limitation of liability
provided in this Section 12.21 is in addition to, and not in limitation of, any limitation on liability applicable
to any Nonrecourse Parties provided by law or by this Agreement or any other contract, agreement or instrument; provided, however,
the foregoing shall not limit any liability that a Nonrecourse Party has to return any distribution received by such party in violation
of applicable law.

 

12.22No Suretyship
Defenses.

 

Each Member hereby
unconditionally waives any guarantor or suretyship defense that may otherwise apply with respect to this Agreement.

 

    	 	 -57-	 

     

    

 

12.23Interpretation.

 

For purposes of this
Agreement, except as otherwise expressly provided or unless the context otherwise requires, (i) the terms defined herein shall
include the plural as well as the singular; (ii) accounting terms not otherwise defined herein have the meanings assigned
to them in accordance with US generally accepted accounting procedures; (iii) references in this Agreement to "Sections,"
"subsections," "paragraphs" and other subdivisions without reference to a document are to designated Sections,
subsections, paragraphs and other subdivisions of this Agreement; (iv) a reference to a subsection without further reference
to a Section is a reference to such subsection as contained in the same Section in which the reference appears, and this rule shall
also apply to paragraphs and other subdivisions; (v) the words "herein," "hereof," "hereunder"
and other words of similar import refer to this Agreement as a whole and not to any particular provision; (vi) the words "include",
"such as" and "including" and their variations, shall mean "including, but not limited to;" (vii) references
to "days" shall mean calendar days unless otherwise stated; (viii) every reference to any document refers to that
document as modified from time to time, and includes all exhibits and schedules to that document; (ix) "good faith"
means "honesty in fact" as such phrase is used in the Uniform Commercial Code, as adopted in the State of Delaware as
of the date of this Agreement; (x) "reasonable efforts" or "commercially reasonable efforts" means the
level of effort a reasonable person would exert under similar circumstances acting on its own behalf and shall require diligence
and good faith but not illegal or other unreasonable actions; and (xi) the headings in this Agreement are for convenience
only and are not intended to describe, interpret, define, or limit the scope, extent, or intent of any of the provisions of this
Agreement.

 

12.24Omitted.

 

 

 

12.25Joinder.

 

Certain obligations
of Lewis under this Agreement shall be guaranteed by the parties (the "Lewis Guarantors") pursuant to that certain
Joinder of Lewis Guarantors attached to this Agreement to be executed by the Lewis Guarantors. Certain obligations of Limoneira
under this Agreement shall be guaranteed by LIMCO (the "Limoneira Guarantor") pursuant to that certain
Joinder of Limoneira Guarantor attached to this Agreement to be executed by Limoneira Guarantor.

 

12.26Definitions.

 

The following terms
shall have the meanings specified in this Section 12.26:

 

"Act"
means the Delaware Limited Liability Company Act, as set forth in Del. Code Ann. Tit. 6, 18-101, et. seq., as amended from
time to time (or any corresponding provisions of succeeding law).

 

"Action"
means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation,
citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at
law or in equity.

 

"Adjusted Capital
Account Balance" means an amount with respect to each Member equal to the balance in such Member's Capital Account at
the end of the relevant Fiscal Year, after taking into account contributions and distributions during such Fiscal Year and after
increasing the balance in such Member's Capital Account by any amount such Member is deemed to be obligated to restore pursuant
to Regulations Sections 1.704-2(g)(1), 1.704-2(i)(5) or 1.704-1(b)(2)(ii)(c).

 

    	 	 -58-	 

     

    

 

"Adjusted Capital
Account Deficit" means, with respect to any Member, a deficit balance in such Member's Capital Account as of the end of
the Fiscal Year after giving effect to the following adjustments: (a) credit to such Capital Account the additions, if any,
permitted by Regulations §§ 1.704-1(b)(2)(ii)(c) (referring to obligations to restore a capital account deficit),
1.704-2(g)(1) (referring to "minimum gain") and 1.704-2(i)(5) (referring to a partner's share of "partner nonrecourse
debt minimum gain"), and (b) debit to such Capital Account the items described in §§ 1.704-1(b)(2)(ii)(d)(4),
(5) and (6) of the Regulations. This definition of Adjusted Capital Account Deficit is intended to comply with the provisions of
Regulation § 1.704-1(b)(2)(ii)(d).

 

"Affiliate"
means, with respect to any Person: (i) any Person directly or indirectly controlling, controlled by or under common control
with such Person; (ii) any Person owning or controlling twenty-five percent (25%) or more of the outstanding voting and/or
beneficial ownership interests of such Person; (iii) any officer, director, manager, managing member, or general partner of
such Person; or (iv) any Person who is an officer, director, manager, managing member, general partner, trustee, or holder
of twenty-five percent (25%) or more of the voting interests of any Person described in clauses (i) through (iii) of this
definition. For purposes of clause (i) of this definition, two or more Persons shall be deemed to be under common control
if there is a twenty-five percent (25%) or greater overlap in the ownership of any classes of equity in such Persons. Without limitation
on the foregoing, Lewis, LOC and LMC are Affiliates of each other.

 

"Affiliate
Agreement" means an agreement, contract or other arrangement between the Company and an Affiliate of a Member including,
but not limited to, the Contribution Agreement and the Assignment Agreement.

 

"Agreement"
means this First Amended and Restated Limited Liability Company Agreement, as amended from time to time. Words such as "herein,"
"hereinafter," "hereof," "hereto" and "hereunder," refer to this Agreement as a whole,
unless the context otherwise requires.

 

"Assigned Agreements"
has the meaning given that term in the recitals of this Agreement.

 

"Bad Conduct"
means acts or omissions constituting gross negligence, willful or wanton misconduct, fraud, intentional misrepresentation, criminal
conduct, bad faith or a knowing violation of law.

 

"Bank Account"
means a bank account established by the Company at a financial institution reasonably approved by the Executive Committee.

 

"Book Value"
means, with respect to any asset, the asset's adjusted basis for federal income tax purposes, except as follows:

 

    	 	 -59-	 

     

    

 

(i)The initial
Book Value of any asset contributed by a Member to the Company shall be the fair market value of such asset at the time of contribution
to the Company, as reasonably determined by the contributing Member and the Executive Committee as reflected in this Agreement
or another writing agreed to by all the Members;

 

(ii)The Company
shall adjust the Book Value of all Company assets to equal their respective gross fair market values (taking Code § 7701(g)
into account), as determined by the Executive Committee as of the following times: (A) the acquisition of an additional interest
in the Company by any new or existing Member in exchange for more than a de minimis Capital Contribution; (B) the distribution
by the Company to a Member of more than a de minimis amount of Company property as consideration for an interest in the Company;
(C) the liquidation of the Company within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); and (D) in connection
with the issuance by the Company of a non-compensatory option (as defined in Regulations § 1.721-2(f) other than an option
for a de minimis interest; provided that the Company is required to make an adjustment described in clauses (A), (B) and (C)
of this paragraph only if the Executive Committee determines that the adjustment is necessary to reflect the relative economic
interests of the Members in the Company.

 

(iii)The Company
shall increase (or decrease) the Book Value of Company assets to reflect any adjustments to the adjusted basis of the Company's
assets pursuant to Code § 734(b) or Code § 743(b), but only to the extent that the adjustments are taken into
account in determining Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m), provided, however, that the
Company will not adjust the Book Value pursuant to this subparagraph (iii) to the extent that an adjustment pursuant to subparagraph (ii)
is required in connection with a transaction that would otherwise result in an adjustment pursuant to this subparagraph (iii).

 

(iv)The Book Value
of any Company asset distributed to any Member shall be the gross fair market value of such asset on the date of the distribution
as reasonably determined by the Executive Committee.

 

(v)If any non-compensatory
option is outstanding at the time the Book Value of the Company's assets is adjusted, then the provisions of Regulations § 1.704-1(b)(iv)(h)(2)
apply.

 

If the Book Value of
an asset has been determined or adjusted pursuant to subparagraph (ii) or (iii) above, then the Book Value will thereafter be adjusted
by the Capital Account Depreciation taken into account with respect to such asset, for purposes of computing Profits and Losses.

 

"Business Day"
means any day that is not a Saturday, Sunday, legal holiday in California, or a day on which banking institutions in California
are authorized or required by law to close.

 

"Capital Account"
means, with respect to each Member or assignee, the Capital Account maintained for such Person in accordance with the following
provisions:

 

    	 	 -60-	 

     

    

 

(a)To each Person's
Capital Account there shall be credited such Person's Capital Contributions, including the amount listed under the column labeled
"Capital Account" on Exhibit B, such Person's distributive share of Profits and any items in the nature of
income or gain which are specially allocated to such Person pursuant to Section 5.2, and the amount of any Company
liabilities assumed by such Person or which are secured by any Property distributed to such Person.

 

(b)To each Person's
Capital Account there shall be debited the amount of cash and the Book Value of any Property distributed to such Person pursuant
to any provision of this Agreement, such Person's distributive share of Losses and any items in the nature of expenses or losses
which are specially allocated to such Person pursuant to Section 5.2, and the amount of any liabilities of such Person
assumed by the Company or which are secured by any property contributed by such Person to the Company.

 

(c)In the event all
or a portion of a Membership Interest in the Company is transferred in accordance with the terms of this Agreement, the transferee
shall succeed to the Capital Account of the transferor to the extent it relates to the transferred interest, except that if the
Transfer causes a termination of the Company under Section 708(b)(1)(B) of the Code, then Regulations § 1.708.1(b)
shall apply.

 

(d)In determining
the amount of any liability for purposes of (a) and (b) of this definition, there shall be taken into account Code § 752(c)
and any other applicable provisions of the Code and Regulations.

 

The foregoing provisions
and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Regulations
§ 1.704-1(b), and shall be interpreted and applied in a manner consistent with such Regulations. In the event the Executive
Committee determines that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto (including
debits or credits relating to liabilities which are secured by contributions or distributed property or which are assumed by the
Company, a Member, or assignee), are computed in order to comply with such Regulations, the Executive Committee may make such modification,
provided that it is not likely to have a material effect on the amounts distributed to any Person pursuant to Section 9.2
of this Agreement upon the dissolution of the Company. The Executive Committee also shall (i) make any adjustments that are
necessary or appropriate to maintain equality between (A) the aggregate balances standing in the Capital Accounts of the Members
and assignees, and (B) the amount of Company capital reflected on the Company's balance sheet, as computed for book purposes,
in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g), and (ii) make any appropriate modifications in
the event unanticipated events might otherwise cause this Agreement not to comply with Treasury Regulations Section 1.704-1(b).

 

If the Book Value of
Company assets are adjusted pursuant to this Agreement, then the Capital Accounts of all Members shall be adjusted simultaneously
to reflect the aggregate net adjustments as if the Company recognized gain or loss equal to the amount of such aggregate net adjustment.
On the exercise of a non-compensatory option (as defined in Regulations § 1.721-2(f) the Capital Accounts of the Members
shall be adjusted in accordance with Regulations § 1.704-1(b)(2)(iv)(s).

 

    	 	 -61-	 

     

    

 

"Capital Account
Depreciation" shall mean for each Fiscal Year or other period, an amount equal to the depreciation, amortization or other
cost recovery deduction allowable with respect to an asset for such Fiscal Year or other period, except that if the Book Value
of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such Fiscal Year or other period,
then Capital Account Depreciation shall be an amount which bears the same ratio to such beginning Book Value as the federal income
tax depreciation, amortization or other cost recovery deduction for such Fiscal Year or other period bears to such beginning adjusted
tax basis.

 

"Capital Contribution"
means, with respect to each Member, the amount of money and the net fair market value of any property (other than money) contributed
to the Company by such Member pursuant to any provision of this Agreement (exclusive of any amounts paid by any Indemnifying Party
pursuant to Section 10.2).

 

"Code"
means the Internal Revenue Code of 1986, as amended from time to time (or any corresponding provisions of succeeding law).

 

"Company"
means the limited liability company formed pursuant to the filing of the Certificate and the execution of the Original Agreement
and any limited liability company continuing the business of this Company in the event of dissolution as herein provided.

 

"Credit Enhancement"
means any letter of credit, bond or similar credit enhancement.

 

"Cure Period"
means, with respect to any Defaulting Member, a period of thirty (30) calendar days after such Defaulting Member receives
written notice of its default from a non-defaulting Member; provided, however, that if such breach can be cured but cannot reasonably
be cured within such thirty (30)-day period, then the period shall continue, if such Defaulting Member commences to cure the
breach within such thirty (30)-day period, for so long as such defaulting Member diligently prosecutes the cure to completion,
up to a maximum of the lesser of (a) sixty (60) calendar days, or (b) the period of time allowed for such performance
under any Project Loan Documents.

 

"Default Loan"
means a recourse loan that has been advanced to a Delinquent Member or a Defaulting Member pursuant to Section 2.5(b)(iii)
or Section 11.2(c), respectively, that shall bear interest at a rate equal to fifteen percent (15%) per annum, compounded
annually; provided that any applicable laws limiting the rate of interest that may be legally charged with respect to such loan
shall be taken into account and, if applicable, the rate of interest charged on such loan shall be reduced to the maximum rate
of interest permitted by such law. Subject to any extension provided for under this Agreement, each Default Loan shall be due and
payable in full one (1) year from the date advanced (or, if earlier, upon the sale of any Member's Membership Interest under
Section 6.9(c) or the dissolution of the Company).

 

"Entity"
means any Person other than an individual.

 

"Excluded Liabilities"
means (a) special, exemplary, punitive, and/or consequential damages, unless payable to third parties; and (b) any claim
for lost profits or similar claim by a Member.

 

    	 	 -62-	 

     

    

 

"Gross Revenues"
means the gross cash proceeds realized by the Company from any source pursuant to sound accounting principles.

 

"Independent
Accountant" means Ernst & Young, or such other accounting firm that is approved by the Executive Committee.

 

"Manager"
means Lewis and any Person who succeeds to Lewis as Manager in accordance with Section 6.1(a).

 

"Member"
means any Person identified as a member of the Company in the introductory paragraph to this Agreement. If any Person is admitted
as Substituted Member pursuant to the terms of this Agreement, then the term "Member" shall also be deemed to refer to
such Person. "Members" refers collectively to all Persons who are designated as a "Member" pursuant
to this definition, until such time as any such Person ceases to be a member of the Company in accordance with this Agreement or
the Act.

 

"Membership
Interest" means, with respect to each Member, (i) that Member's status as a member, (ii) that Member's Capital
Account and share of the Profits, Losses and other items of income, gain, loss, deduction and credits of, and the right to receive
distributions (liquidating or otherwise) from, the Company under the terms of this Agreement, (iii) all other rights, benefits
and privileges enjoyed by that Member (under the Act or this Agreement) in its capacity as a member, including that Member's rights
to vote, consent and approve those matters described in this Agreement, and (iv) all obligations, duties and liabilities imposed
on that Member under the Act or this Agreement in its capacity as a member.

 

"Net Cash Flow"
means Gross Revenues less the portion thereof used to pay for Company expenses, to repay any Member Loans and to establish reserves
for Approved Project Costs, all as reasonably determined by the Executive Committee, consistent in all material respects with any
Approved Business Plan then in effect.

 

"Ownership
Interest" means the direct and/or indirect ownership in any Member.

 

"Parent"
means any Person that holds, directly or indirectly, more than fifty percent (50%) of the outstanding equity securities, or comparable
equity interests, of a Member.

 

"Percentage
Interest" means, with respect to a particular Member, that Member's interest, expressed as a percentage. The Percentage
Interest of each Member is fifty percent (50%).

 

"Person"
means any individual, partnership, corporation, trust, limited liability company, or other entity.

 

"Pre-Assignment
Expenses" means Lewis Pre-Assignment Expenses and the Limoneira Pre-Assignment Expenses, collectively.

 

    	 	 -63-	 

     

    

 

"Pre-Closing
Agreements" has the meaning assigned to such term in the Contribution Agreement.

 

"Prime Rate"
means the highest prime rate of interest published in the then most recent edition of the Wall Street Journal, Western Edition
(if such edition is then published), or any successor publication.

 

"Profits"
and/or "Losses" for each Fiscal Year or other period, an amount equal to the Company's taxable income or loss
for such year or period determined in accordance with Code Section 703(a) (including in such taxable income or loss all items
of income, gain, loss or deduction required by Code Section 703(a) to be stated separately) with the following adjustments:

 

(a)Any income of
the Company that is exempt from federal income tax, and not otherwise taken into account in this definition in computing
Profits or Losses, shall be added to such taxable income or loss;

 

(b)Any Company expenditures
described in Code Section 705(a)(2)(B), or treated as such pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and
not otherwise taken into account in this definition in computing Profits or Losses shall be subtracted from such taxable income
or loss, including nonrecourse deductions;

 

(c)Gain or loss resulting
from any disposition of Company property shall be computed by reference to the Book Value of the Company property disposed of,
notwithstanding that the adjusted tax basis of such property differs from its Book Value;

 

(d)In lieu of the
depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there
shall be taken into account the Capital Account Depreciation computed in accordance with such definition contained above; and

 

(e)Notwithstanding
any other provision of this subsection, any items of income, gain; loss or deduction which are specially allocated shall not be
taken into account in computing Profits or Losses.

 

"Project Loan"
means a third-party loan made to the Company necessary for the Company to acquire, own, develop, design, construct, furnish, operate
and maintain the Project.

 

"Project Loan
Documents" shall mean any instrument and documents that evidence or secure the Project Loan.

 

"Regulations"
means the Income Tax Regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding
provisions of succeeding regulations).

 

"Related Party"
means, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such specified Person. For purposes of this definition of Related
Party, the term "control" (including the terms "controlled by" and "under common control with") with
respect to the relationship between or among two or more Persons, means direct or indirect, record or beneficial, ownership of
one hundred percent (100%) of the outstanding equity, capital, or right to profits of such Person.

 

    	 	 -64-	 

     

    

 

"Transfer"
means any change in the ownership of any Membership Interest in the Company or in the Ownership Interest of any Member, whether
made voluntarily, involuntarily, directly, indirectly or by operation of law, including, but not limited to, the following: (i) a
sale, assignment, contribution, distribution, gift or other transfer of an Ownership Interest to any Person; (ii) a transfer
of an Ownership Interest to the personal representative of the estate of a Person upon such Person's death, and any subsequent
transfer of an Ownership Interest from such personal representative to the heirs or devisees of the deceased Person under his will
or by the laws of descent and distribution; (iii) a transfer of an Ownership Interest to a judicially appointed personal representative
as a result of the adjudication by a court of competent jurisdiction that the transferring Person is mentally incompetent to manage
his person or property; (iv) a transfer of an Ownership Interest to the transferring Person's spouse or former spouse, or
heirs of such spouse or former spouse, in connection with a division of their community or other property upon the death or divorce
of the transferring Person, divorce or the death of such spouse; (v) a general assignment for the benefit of creditors, or
any assignment to a creditor resulting from the creditor's foreclosure upon or execution against any Person holding an Ownership
Interest; (vi) the filing of a voluntary bankruptcy petition; (vii) the adjudication of any Person holding an Ownership
Interest as bankrupt or insolvent or the entry of an order for relief under the United States Bankruptcy Code against any Person
holding an Ownership Interest; (viii) the filing of a petition or answer by any Person holding an Ownership Interest seeking
for such Person's reorganization, arrangement, composition, readjustment, liquidation or similar relief under any statute, law
or rule; (ix) the filing of an answer or other pleading by any Person holding an Ownership Interest admitting or failing to
contest the material allegations of a petition filed against such Person in a bankruptcy, insolvency, reorganization or similar
proceeding; (x) the seeking, consenting to or acquiescing in the appointment of a trustee, receiver or liquidator of any Person
holding an Ownership Interest or of all or any substantial part of such Person's property; (xi) if a Person holding an Ownership
Interest is a general or limited partnership, the dissolution and commencement of winding up of the partnership; (xii) if
a Person holding an Ownership Interest is a corporation, the filing of a certificate of dissolution or its equivalent for the corporation
or revocation of its charter; (xiii) if a Person holding an Ownership Interest is another limited liability company, the filing
of articles of dissolution or termination or their equivalent for the limited liability company; or (xiv) if a Person holding
an Ownership Interest is an Entity, any change in the control or majority ownership of such Person to another Person that is not
a Related Party of the transferring Person.

 

"Unreturned
Additional Contribution Balance" means, with respect to each Member, an amount equal to (a) the sum of such Member's
Capital Contributions made or deemed made to the Company pursuant to the provisions of either Section 2.2(b), 2.2(c),
2.2(d), 2.2(e), 2.2(f), 2.3 or 2.5(iii) of this Agreement, minus (b) all distributions
to such Member pursuant to Section 4.1(a) (including by reference thereto pursuant to Section 9.2(b)) and
Section 4.2 until the balance standing in such account has been reduced to zero.

 

    	 	 -65-	 

     

    

 

"Unreturned
Additional Contribution Balances" means the Unreturned Contribution Balance for both Members.

 

"Unreturned
Initial Contribution Balance" means, with respect to each Member, an amount equal to the sum of such Member's Capital
Contributions made or deemed made to the Company pursuant to the provisions of Section 2.2(a) of this Agreement, minus
all distributions to such Member pursuant to Section 4.1(b) (including by reference thereto pursuant to Section 9.2(b))
until the balance standing in such account has been reduced to zero.

 

 

 

 

[SIGNATURES BEGIN ON FOLLOWING PAGE]

 

    	 	 -66-	 

     

    

 

IN WITNESS WHEREOF,
the Members have executed and entered into this First Amended and Restated Limited Liability Company Agreement of Limoneira Lewis
Community Builders, LLC as of the date first set forth above.

 

	 	MEMBERS:
	 	 
	 	LEWIS SANTA PAULA MEMBER, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	Lewis Operating Corp.,
	 	 	a California corporation
	 	 	Its:  Manager
	 	 	 
	 	 	By:	/s/ John M. Goodman
	 	 	 	John M. Goodman
	 	 	 	Its:  Senior Vice President

 

 

	 	LIMONEIRA EA1 LAND, LLC
	 	a Delaware limited liability company
	 	 
	 	By:	Limoneira Company,
	 	 	a Delaware corporation
	 	 	its sole Member
	 	 	 
	 	 	By:	/s/ Joseph D. Rumley
	 	 	Name:	Joseph D. Rumley
	 	 	Title:	Chief Financial Officer
	 	 	 	 

 

	 	MANAGER:
	 	 
	 	LEWIS SANTA PAULA MEMBER, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	Lewis Operating Corp.,
	 	 	a California corporation
	 	 	Its:  Manager
	 	 	 
	 	 	By:	/s/ John M. Goodman
	 	 	 	John M. Goodman
	 	 	 	Its:  Senior Vice President

 

    	Signature Page to First Amended and Restated Limited Liability Company Agreement	 	 

     

    

 

 

JOINDER OF LEWIS GUARANTORS

 

 

In consideration of
Limoneira's execution of that certain First Amended and Restated Limited Liability Company Agreement of Limoneira Lewis Community
Builders, LLC (the "Agreement"), to which this Joinder ("Joinder") is attached each of the undersigned
(each, a "Lewis Guarantor"), jointly and severally, hereby absolutely, unconditionally and irrevocably guarantees
to Limoneira that all obligations (the “Guaranteed Obligations”) of Lewis under Sections 2.2, 2.3, 2.4,
2.5, 2.6, 2.9, 10.2, and 12.2, of the Agreement will be timely satisfied. Capitalized terms used in this Joinder of Lewis Guarantors
and not otherwise defined herein shall have the same meanings as set forth in the Agreement. Each Lewis Guarantor represents and
acknowledges that the direct or indirect owners of such Lewis Guarantor own a substantial direct or indirect interest in Lewis,
that the direct or indirect owners of such Lewis Guarantor will derive substantial benefits from the execution of the Agreement
and the transactions contemplated thereby, and that such Lewis Guarantor's execution of this Joinder is a material inducement and
condition to Limoneira's execution of the Agreement and that Limoneira is, for all purposes, a third-party beneficiary of this
Joinder.

  

To the fullest extent
permitted by applicable law, each Lewis Guarantor unconditionally waives any guarantor or suretyship defenses that might otherwise
be available to such Lewis Guarantor. The obligations of each Lewis Guarantor under this Joinder are independent of the obligations
of Lewis under the Agreement and, in the event of any default hereunder, a separate action or actions may be brought and prosecuted
against such Lewis Guarantor whether or not any Lewis Guarantor is the alter ego of Lewis and whether or not Lewis is joined therein
or a separate action or actions are brought against Lewis. The obligations of each Lewis Guarantor hereunder shall remain in full
force and effect without regard to, and shall not be affected or impaired by, the following, any of which may be taken without
the consent of, or notice to, any Lewis Guarantor, nor shall any of the following give any Lewis Guarantor any recourse or right
of action against the Company, any Company Subsidiary, or Limoneira: (a) any express or implied amendment, modification, renewal,
addition, supplement, extension of the Guaranteed Obligations or the Agreement; (b) any exercise or non-exercise by the Company,
any Company Subsidiary, or Limoneira of any right or remedy under the Agreement or this Joinder of or available at law or in equity;
(c) any Bankruptcy Event relating to any Lewis Guarantor or Lewis, or any action taken with respect to the Company, any Company
Subsidiary or this Joinder by any trustee or receiver, or by any court, in any such proceeding, whether or not any Lewis Guarantor
shall have had notice or knowledge of any of the foregoing; (d) the occurrence of a Dissolution Event with respect to any
Lewis Guarantor or Lewis; (e) any release or discharge of Lewis from its liability under the Guaranteed Obligations or any
release or discharge of any other party at any time directly or contingently liable for the Guaranteed Obligations; (f) any
limitation or exculpation of liability under the Agreement provided for Lewis, Manager or any Affiliate, or any of their respective
agents, officers, directors, managers, members, partners, shareholders and employees; (g) any subordination, compromise, release
(by operation of law or otherwise), discharge, compound, collection, or liquidation of any or all of the Property, or any substitution
with respect thereto; (h) any assignment or other transfer of any interest in the Company, in whole or in part; and (i) any
acceptance of partial performance of the Guaranteed Obligations.

  

    	Lewis Joinder
	 	 

     

    

 

Each Lewis Guarantor
agrees to pay all costs and expenses, including reasonable attorneys' fees, that may be incurred by Limoneira in any effort to
collect or enforce any of the Guaranteed Obligations, whether or not any lawsuit is filed, including all costs and attorneys' fees
incurred by Limoneira as the prevailing party in any bankruptcy proceeding (including any action for relief from the automatic
stay of any bankruptcy proceeding). Such amounts shall bear interest until paid at the lesser of (i) fifteen percent (15%) per
annum, compounded monthly (i.e., 1.0125% per month, compounded monthly), or (ii) the maximum rate allowed by law. No Lewis Guarantor
shall have the right to assign any of its rights or obligations under this Joinder. Notwithstanding the foregoing, in no event
shall Lewis Guarantor have any liability under this Joinder for any Excluded Liability.

  

For so long as Lewis
is a Member of the Company, the Lewis Guarantors shall collectively maintain a Net Worth equal to or greater than One Hundred Million
Dollars ($100,000,000). Within one hundred eighty (180) days after the end of each calendar year, and within twenty (20) days of
a written request by Limoneira to Lewis (which requests may not occur more frequently than once per calendar quarter), the Lewis
Guarantors shall certify in writing their then aggregate Net Worth, with evidence of the same reasonably acceptable to Limoneira.
"Net Worth" means, as of a given date, (i) the Lewis Guarantors’ total assets as of such time, less,
(ii) the Lewis Guarantors’ total liabilities as of such time, determined in accordance with US GAAP, except that
material assets and liabilities will be valued in accordance with ASC 820 - Fair Value Measurements and Disclosures.

  

The following Sections
of the Agreement shall apply to this Joinder as though herein set forth in full, mutatis mutandis (and, without limitation
on the foregoing, references to "the Members," “Lewis” and "this Agreement" therein shall be deemed
changed for this purpose to "the parties," "Lewis Guarantor" and "this Joinder," respectively): 12.1
(with any notice to Lewis Guarantor to be sent to the address set forth for Lewis in the Agreement), 12.3 through 12.7, 12.11,
12.12, 12.13, 12.16, 12.18, 12.20 and 12.23. Each Lewis Guarantor acknowledges (a) that this Joinder involves at least One
Hundred Thousand Dollars ($100,000), and (b) that this Joinder has been entered into and accepted in express reliance upon
6 Del. C. § 2708.

 

	 	LEWIS HOLDING COMPANY, L.P.
	 	a Delaware limited partnership
	 	 
	 	By: EMPIRE BUILDING CORP.,
	 	 	a Nevada corporation
	 	 	Its Administrative Partner
	 	 	 
	 	By:	/s/ John M. Goodman
	 	Name:	John M. Goodman 
	 	Its:	Authorized Agent

  

    	Lewis Joinder
	 2	 

     

    

 

JOINDER OF LIMONEIRA GUARANTOR

   

 

In consideration of
Lewis' execution of that certain First Amended and Restated Limited Liability Company Agreement of Limoneira Lewis Community Builders,
LLC (the "Agreement") to which this Joinder of Limoneira Guarantor is attached, the undersigned ("Limoneira
Guarantor"), hereby absolutely, unconditionally and irrevocably guarantees to Lewis that all obligations (the “Guaranteed
Obligations”) of Limoneira under Sections 2.2, 2.3, 2.4, 2.5, 2.9, 10.2, and 12.2 of the Agreement will be timely
satisfied. Capitalized terms used in this Joinder of Limoneira Guarantor ("Joinder") and not otherwise defined
herein shall have the same meanings as set forth in the Agreement. Limoneira Guarantor represents and acknowledges that Limoneira
Guarantor owns a substantial interest in and controls Limoneira, that such Limoneira Guarantor will derive substantial benefits
from the execution of the Agreement and the transactions contemplated thereby, and that Guarantor's execution of this Joinder is
a material inducement and condition to Lewis' execution of the Agreement and that Lewis is, for all purposes, a third party beneficiary
of this Joinder of Limoneira Guarantor.

  

To the fullest extent
permitted by applicable law, Limoneira Guarantor unconditionally waives any guarantor or suretyship defenses that might otherwise
be available to Limoneira Guarantor. The obligations of Limoneira Guarantor under this Joinder are independent of the obligations
of Limoneira under the Agreement and, in the event of any default hereunder, a separate action or actions may be brought and prosecuted
against Limoneira Guarantor whether or not Limoneira Guarantor is the alter ego of Limoneira and whether or not Limoneira is joined
therein or a separate action or actions are brought against Limoneira. The obligations of Limoneira Guarantor hereunder shall remain
in full force and effect without regard to, and shall not be affected or impaired by, the following, any of which may be taken
without the consent of, or notice to, Limoneira Guarantor, nor shall any of the following give Limoneira Guarantor any recourse
or right of action against the Company, any Company Subsidiary, or Lewis: (a) any express or implied amendment, modification,
renewal, addition, supplement, extension of the Guaranteed Obligations or the Agreement; (b) any exercise or non-exercise
by the Company, any Company Subsidiary, or Lewis of any right or remedy under the Agreement or this Joinder of or available at
law or in equity; (c) any Bankruptcy Event relating to Limoneira Guarantor or Limoneira, or any action taken with respect
to the Company, any Company Subsidiary or this Joinder by any trustee or receiver, or by any court, in any such proceeding, whether
or not Limoneira Guarantor shall have had notice or knowledge of any of the foregoing; (d) the occurrence of a Dissolution
Event with respect to Limoneira Guarantor or Limoneira; (e) any release or discharge of Limoneira from its liability under
the Guaranteed Obligations or any release or discharge of any other party at any time directly or contingently liable for the Guaranteed
Obligations; (f) any limitation or exculpation of liability under the Agreement provided for Limoneira, Manager or any Affiliate,
or any of their respective agents, officers, directors, managers, members, partners, shareholders and employees; (g) any subordination,
compromise, release (by operation of law or otherwise), discharge, compound, collection, or liquidation of any or all of the Property,
or any substitution with respect thereto; (h) any assignment or other transfer of any interest in the Company, in whole or
in part; and (i) any acceptance of partial performance of the Guaranteed Obligations.

 

    	 	 (1)	 

     

    

 

Limoneira Guarantor
agrees to pay all costs and expenses, including reasonable attorneys' fees, which may be incurred by Lewis in any effort to collect
or enforce any of the Guaranteed Obligations, whether or not any lawsuit is filed, including all costs and attorneys' fees incurred
by Lewis as the prevailing party in any bankruptcy proceeding (including any action for relief from the automatic stay of any bankruptcy
proceeding). Such amounts shall bear interest until paid at the lesser of (i) 15% per annum compounded monthly (i.e., 1.0125% per
month, compounded monthly), or (ii) the maximum rate allowed by law. Limoneira Guarantor shall not have the right to assign any
of its rights or obligations under this Joinder. Notwithstanding the foregoing, in no event shall Limoneira Guarantor have any
liability under this Joinder for any Excluded Liability.

  

The following Sections
of the Agreement shall apply to this Joinder as though herein set forth in full, mutatis mutandis (and, without limitation
on the foregoing, references to "the Members", "Limoneira" and "this Agreement" therein shall be
deemed changed for this purpose to "the parties", "Limoneira Guarantor" and "this Joinder", respectively):
12.1 (with any notice to Guarantor to be sent to the address set forth for Limoneira in the Agreement), 12.3 through 12.7, 12.11,
12.12, 12.13, 12.16, 12.18, 12.20 and 12.23. Limoneira Guarantor acknowledges (a) that this Joinder involves at least One
Hundred Thousand Dollars ($100,000), and (b) that this Joinder has been entered into and accepted in express reliance upon
6 Del. C. § 2708.

 

 

	 	Limoneira Company,	 
	 	a Delaware corporation	 
	 	 	 
	 	By:	/s/ Joseph D. Rumley	 
	 	Name:	Joseph D. Rumley	 
	 	Title:	Chief Financial Officer	 

 

    	 	 (2)Exhibit 10.2

 

  

LEASE AGREEMENT

 

1.Parties. THIS LEASE AGREEMENT (“Lease”) is made and entered into this 10th day of November, 2015 (the
“Effective Date”), by and between Limoneira Lewis Community Builders, LLC, a Delaware limited
liability company (“Landlord”), and Limoneira Company, a Delaware corporation
(“Tenant”) (collectively, the “Parties,” or individually, a
“Party”).

 

2.Recitals.

 

2.1Concurrently with
the execution and delivery of this Lease, Tenant (or an Affiliate of Tenant) conveyed to Landlord the East Area 1 Real Property
(inclusive of the Fire Station Lot) and the Mendez Real Property pursuant to that certain Contribution Agreement dated September
4, 2015 between Limoneira and Lewis (the “Contribution Agreement”). Capitalized terms not defined herein shall
have the meanings ascribed to them in the Contribution Agreement.

 

2.2The East Area 1
Real Property includes the Retained Property as to which Landlord acquired only bare legal title, with Limoneira retaining both
equitable title and the right to beneficial use. The East Area 1 Real Property, exclusive of the Retained Property, and the
Mendez Real Property are collectively referred to in the Contribution Agreement as the “Project real Property” and
referred to herein as the “Landlord’s Real Property” which property is identified on the map attached
hereto as Exhibit “A”.

 

2.3Landlord intends
to develop Landlord’s Real Property as a phased master-planned residential community in accordance with Project Entitlements
as generally shown in Exhibit “B” attached hereto (the “Project”). The phases of the Project
are referred to herein collectively as the “Stages” and each individually as a “Stage”.

 

2.4For a number of
years Tenant and its predecessors conducted agricultural operations, including growing lemons, avocados, and other crops, on Landlord’s
Real Property. In addition to the agriculture operations, Tenant has also been conducting a grading operation (the “Grading
Operation”) on that certain portion of Landlord’s Real Property identified on Exhibit “B” (the
“Grading Area”) pursuant to that certain Agreement captioned “Rough Grading Contract” (the “Grading
Contract”) dated November 7, 2013 by and between Limoneira EA1 Management LLC and MRC Rock & Sand LLC (the “Grading
Contractor”), a copy of which is attached as Exhibit “D”. There are also existing improvements
to the Landlord’s Real Property including certain houses (the “Houses”) and interim soccer fields as described
in the Soccer Fields Lease (the “Interim Soccer Fields”). Tenant now desires to lease Landlord’s Real
Property from Landlord and Landlord desires to lease Landlord’s Real Property to Tenant, upon and subject to the terms and
conditions hereinafter set forth, so that Tenant may continue its agricultural operations, the Grading Operations, and use of the
Houses and Interim Soccer Fields (collectively the “Permitted Uses”) until Landlord terminates the Lease in
accordance with Sections 3.2 and 4.1 below.

 

3.Lease of
Premises.

 

3.1Premises Leased.
Landlord hereby leases to Tenant and Tenant hereby leases from Landlord Landlord’s Real Property (the “Premises”)
to continue its agricultural operations and those other existing Permitted Uses, which shall be conducted in accordance with the
same standards of care and quality as Tenant has utilized during it agricultural operations and such other existing uses prior
to this Lease and is subject to the terms and conditions set forth herein including those limitations on use set forth in Section
6 below. For avoidance of doubt, the Premises includes the Houses and the Interim Soccer Fields. The parties hereby acknowledge
since Limoneira retained equitable title to, and the exclusive beneficial use of, the Retained Property, the Retained Property
is not included in the Premises.

 

    	 	 1	 

     

    

 

3.2Leasing Stages.
Landlord shall provide Tenant with a minimum of one hundred eighty (180) days prior written notice before the commencement of
the grading of each Stage (a “Stage Termination Notice”) and upon receipt of each Stage Termination Notice,
the Term of the Lease shall expire as to that Stage and Tenant shall vacate and surrender that Stage to Landlord in accordance
with Section 10 below. Landlord hereby agrees, as each Stage is surrendered and continuing until the expiration or earlier
termination of the Term as to the final Stage, it will continue to provide reasonable access (i) to all of the remainder of the
Premises, and (ii) to the water system which serves the agricultural operations including the on-site recycling, collection basins
and pumps (collectively the “Water System”). Subject to Landlord’s relocation of water transmission piping
at its cost so as to not interfere with the development of each Stage, the Water System existing on the Effective Date shall remain
available to Tenant during the Term as reasonably necessary to conduct its agricultural operations on, and other uses of, the
Premises but all costs to operate and maintain the Water System (except the aforementioned relocation costs) shall be the sole
cost and expense of Tenant.

 

3.3Landlord Disclaimer 

. Landlord makes no representations or
warranties to Tenant concerning the physical condition or repair of the Landlord’s Real Property, the Houses, the Interim
Soccer Fields, the Water System, or any improvements located on the Landlord’s Real Property and disclaims all representations
and warranties of any kind concerning the Premises, including merchantability and fitness for any purpose or intended use.

 

4.Term.

 

4.1The term of this
Lease (the “Term”) shall commence on the Effective Date (the “Commencement Date”), and
shall expire as to each Stage as set forth in Section 3 above and expire as to any portion of the Premises not previously the subject
of a Stage Termination Notice on the earlier of (i) one hundred eighty (180) days after the delivery by Landlord of a final
Stage Termination Notice covering all of the Premises for which the Term was not previously terminated under Section 3 above, or
(ii) five (5) years after the Effective Date. Notwithstanding the foregoing to the contrary:

 

4.1.1Upon not less
than forty-five (45) days’ written notice from Landlord to Tenant (“Landlord’s Modification Notice”),
Landlord may, in Landlord’s sole and absolute discretion, modify the location, size, configuration and/or expiration date(s)
with respect to any Stage or Stages or any portion or portions thereof, create new stages or consolidate any Stages. Landlord’s
Modification Notice shall set forth in reasonable detail the modifications made by Landlord and the Stage or Stages, or portions
thereof, to which such modifications apply; and

 

    	 	 2	 

     

    

 

4.1.2Following
written request by Tenant (the “Tenant’s Request Notice”), Landlord may, in Landlord’s
sole and absolute discretion, elect to extend the expiration date of any Stage or Stages or any portion or portions thereof as
provided herein below. Tenant’s Request Notice shall identify the Stage or Stages or the applicable portion or portions thereof
as to which Tenant desires the lease to continue beyond the scheduled expiration of the Term applicable thereto and the length
of the requested extension period, and shall be delivered to Landlord, if at all, not less than ninety (90) days prior to
the earliest then scheduled expiration date with respect thereto. In the event Landlord, in Landlord’s sole and absolute
discretion, elects to extend the expiration date with respect to all or any portion of the Premises identified in the Tenant’s
Request Notice, Landlord shall deliver written notice to Tenant (the “Landlord’s Extension Notice”) of
such election within thirty (30) days of Landlord receipt of the Tenant’s Request Notice; if Landlord does not deliver
a Landlord’s Election Notice within the time set forth herein, Tenant’s Request Notice shall be deemed to have been
disapproved. Landlord’s Extension Notice shall identify the portion of the Premises identified in the Tenant’s Request
Notice that Tenant may continue to lease after the then scheduled expiration date and the revised expiration date therefore. Tenant’s
lease of such portion of the Premises identified in Landlord’s Extension Notice shall be in accordance with and subject to
terms and conditions of this Lease.

 

4.2Notwithstanding
the provisions of Section 4 or anything contained in this Lease to the contrary, Tenant may terminate this Lease with respect
to all or any portion of the Premises (including portions of various Stages) at any time and from time to time by delivering to
Landlord written notice of such termination. Said written notice shall identify the portion of the Premises as to which this Lease
is to be terminated and the effective date of such termination and shall be delivered to Landlord not less than thirty (30)
days prior to the proposed termination date.

 

5.Rent; Payments
to Landlord.

 

5.1Rent.
Tenant shall pay to Landlord as base rental for the Premises One Dollar ($1.00) per year (the “Base Rent”).
The Base Rent shall be due and payable annually in advance commencing on the Commencement Date and continuing thereafter on each
anniversary of the Commencement Date. All amounts required to be paid by Tenant hereunder, including, but not limited to, insurance
premiums, maintenance and repair costs, and utilities, shall be deemed to be rent for purposes of this Lease.

 

5.2Payments to
Landlord. Tenant shall pay any amount required to be paid by Tenant to Landlord in lawful money of the United States
on or before the day on which it is due under the terms of this Lease. Charges for any period during the Term that are for less
than one (1) full calendar month shall be prorated based upon the number of days of the calendar month involved; provided,
however, that the Base Rent shall not be prorated. Payment of such amounts shall be made to Landlord at its address stated herein
or to such other persons or at such other addresses as Landlord may from time to time designate in writing to Tenant.

 

    	 	 3	 

     

    

  

6.Use.
The Premises may be used for growing lemons, avocados, and any of those other crops listed on Exhibit “C” attached
hereto and for purposes ancillary thereto. Tenant may also use or sublease the Houses and the Interim Soccer Fields and continue
the Grading Operation; provided that (a) the Interim Soccer Fields may only be subleased to the City pursuant to a lease
agreement in substantially the same form as the Soccer Field Lease and Tenant won’t terminate said sublease, if any, without
the consent of Landlord, which shall not be unreasonably withheld, conditioned or delayed, (b) all subleases of the Houses
shall be on Tenant’s standard form, and shall be terminable on thirty (30) days’ notice, and (c) the Grading Operations
may only be conducted in accordance with the terms of the Grading Contract and only within the Grading Area. The Grading Contract
shall not be modified or amended without the prior written consent of Landlord, which shall not be unreasonably withheld, conditioned
or delayed, except that Landlord may withhold its consent to any modification or amendment to the Grading Contract that would
lengthen the existing ninety (90) day termination right in its sole discretion. Provided that the Grading Contract has not been
previously terminated by Tenant, the Landlord may, on ninety (90) days prior written notice to Tenant at any time during the Term,
either (i) terminate such use or (ii) request that the Grading Contract be assigned to Landlord whereupon Tenant shall either
complete that assignment or terminate the Grading Contact prior to the expiration of that 90 day period. Tenant shall require
that the Grading Operations be conducted in accordance with all Applicable Laws. All insurance and indemnity provisions, if any,
under the Soccer Field sublease, if any, and under any subleases of the Houses, if any (all of which subleases the parties agree
will be on Tenant’s standard form), shall include Landlord as an additional indemnitee and additional insured party. Except
as to each Stage for which the Lease is terminated under Section 3 above, Tenant shall have access to and use of the Premises
twenty-four (24) hours per day, seven (7) days per week for the entire Term.

 

7.Maintenance;
Repairs; Ownership.

 

7.1Maintenance
and Repair. Subject to the provisions of Section 15 below, Tenant shall, at Tenant’s sole cost and expense,
and at all times, maintain the Premises in substantially the same good condition and repair as the Premises exist on the Commencement
Date, ordinary wear and tear and damage from the elements or casualty excepted; provided, however, that Tenant shall not be required
to make any capital expenditures except as Tenant deems necessary to maintain the Interim Soccer Fields, to maintain the Water
System for its use during the Term or as required by all applicable laws for the habitability of any of the Houses that Tenant
is using or subleasing for persons to reside in during the Term, and provided, further, that it is understood that Tenant will
be winding down its agricultural operations on the Premises and shall be free to do so. Without limiting the terms of this Section
7.1, Tenant shall maintain in good, safe and habitable condition, and in accordance with all applicable building codes and other
laws, any of the Houses that Tenant is using or subleasing for persons to reside in.

 

7.2Alterations.
Subject to Landlord’s prior written approval therefor, not to be unreasonably withheld, delayed, or conditioned, Tenant
shall have the right, at its sole cost and expense, to make reasonable alterations, additions and improvements to the Premises
during the Term that are necessary for the agricultural operations or the use of the Houses or the Interim Soccer Fields (collectively,
“Alterations”) and that do not materially or adversely affect the Project. For purposes of this Lease, activities
related to the conduct of Tenant’s agricultural operations on the Premises including planting, growing, picking and harvesting
of crops, and installation and modification of irrigation systems, shall not be deemed to be “Alterations” so long
as they are non-structural in nature. Any Alterations shall be performed in a workmanlike manner in accordance with all applicable
Laws with good and sufficient materials. Unless otherwise expressly required in writing by Landlord, at the time it approves the
Alterations, Tenant shall not be required to remove any Alterations.

 

7.3Payment for
Labor and Materials. Tenant shall pay when due all claims for labor or materials furnished or alleged to have been furnished
to or for Tenant at or for use on the Premises, which claims are or may be secured by any mechanics’ or materialmen’s
lien against the Premises or any interest therein. Tenant shall give Landlord not less than ten (10) days written notice
prior to the commencement of any Alterations work on the Premises and Landlord shall have the right to post notices of non-responsibility.
If Tenant shall contest the validity of any such lien, claim or demand then Tenant shall, at its sole expense, take the actions
set forth in Section 7.4 and defend and protect itself, Landlord and the Premises against the same and shall pay and satisfy any
such adverse judgment that may be rendered thereon before the enforcement thereof.

 

    	 	 4	 

     

    

 

7.4Notice of
Liens. If Tenant receives notice of any claim of lien filed against the Premises or of any action affecting the title
to such property as a result of work performed by or on behalf of Tenant, or related to any of the other Permitted Uses, Tenant
shall promptly give Landlord written notice thereof. If a lien is recorded against the Premises as a result of work performed
by or on behalf of Tenant, Tenant shall have thirty (30) days following the date of recordation of such lien in which to
cause the lien to be removed or bonded pursuant to statute. If Tenant fails to remove such lien within such thirty (30) day
period, in addition to Landlord’s other rights and remedies, Landlord may (but shall not be so required to) pay the claim.
The amount so paid, together with interest at the rate set forth in Section 19 and reasonable attorneys’ fees, costs
and expenses incurred in connection therewith, shall be due and owing from Tenant to Landlord within thirty (30) days after
receipt of invoice and substantiating documentation.

 

8.Compliance
with Law. During the Term, Tenant shall, at its sole cost and expense, comply with all local, state and federal ordinances,
statutes, laws, regulations, orders and other requirements (“Law”) now in force and which may hereafter be
enacted with respect to Tenant’s use of the Premises, including in connection with its agricultural business, the Grading
Operations, use of the Interim Soccer Fields, or its use of the Water System or the Houses, or with respect to any Alterations
made by or for Tenant on the Premises. Tenant shall not be required to remediate any Hazardous Materials that are situated on
the Premises on the Commencement Date (except to the extent, if any, required by the Contribution Agreement), or which may migrate
onto or under the Premises during the Term from sources other than Tenant and Tenant shall not use or release any Hazardous Materials
on the Premises except for its use of those Hazardous Materials listed in Schedule 8 attached hereto in a manner that
is customary in connection with its agricultural operations, provided such use shall be in strict accordance with all Environmental
Laws and at levels and concentrations that do not exceed the levels set forth on Schedule 8.

 

9.Removal of
Improvements and Personal Property Located on Premises. Upon expiration or earlier termination of this Lease with respect
to the Premises or any portion or Stage thereof Tenant shall have the right, but not the obligation (except as otherwise provided
in Section 7.2 above), to remove any personal property owned by it or any Alterations from the Premises, and ownership of
any Alterations or personal property that is not so removed shall automatically pass to Landlord. Notwithstanding anything to
the contrary in this Section 9, any personal property that contains Hazardous Materials shall be removed by Tenant at its sole
cost from each Stage prior to the expiration date for each Stage.

 

10.Surrender
of Premises. Upon expiration or earlier termination of the Term with respect to the Premises or any portion or Stage
thereof, Tenant shall vacate and surrender possession thereof, including the Houses and the Interim Soccer Fields located therein,
if any, in its then present as-is condition, subject to Tenant’s right set forth in Section 7.2 to remove Alterations
and personal property. As part of its surrender of the Premises, Tenant shall remove all residents or trespassers that were living
on any of the Houses located within that Stage of the Premises for which the term has expired or been terminated at its sole cost
and expense.

 

    	 	 5	 

     

    

 

11.Insurance.

 

11.1Liability
Insurance.

 

11.1.1Carried
by Tenant. Tenant shall obtain and keep in force during the Term the insurance set forth on Schedule 11.1.1 attached
hereto. The Commercial General Liability policy of insurance shall protect Tenant against claims for bodily injury, personal injury
and property damage based upon, involving or arising out of the use, occupancy or maintenance of the Premises. Such insurance
shall be on an occurrence basis providing single limit coverage in an amount not less than One Million Dollars ($1,000,000)
per occurrence and Three Million Dollars ($3,000,000) in the aggregate with an “Additional Insured-Managers or Landlords
of Premises” Endorsement. The commercial general liability policy shall include coverage for liability assumed under this
Lease as an “insured contract” for the performance of Tenant’s indemnity obligations under this Lease. All insurance
to be carried by Tenant shall be primary to and not contributory with any similar insurance carried by Landlord, whose insurance
shall be considered excess insurance only. Landlord and Landlord’s lender, if any, shall be named as additional insureds
in the policies required in this Section 11.1.1.

 

11.1.2Carried
by Landlord. Except as otherwise provided in the Company LLC Agreement, Landlord may maintain any liability insurance
or no liability insurance as Landlord may elect in its sole discretion.

 

11.2Insurance
Policies. Insurance required hereunder shall be in companies duly licensed to transact business in California, and maintaining
during the policy term a General Policyholders Rating of at least A-VII, as set forth in the most current issue of “Best’s
Insurance Guide.” Tenant shall not do or permit anything to be done that will invalidate the insurance policies referred
to in this Section 11. Tenant shall cause to be delivered to Landlord certificates evidencing the existence and amounts of
such insurance with the insureds and loss payable clauses as required by this Lease. Such policy shall include a provision that
the issuer thereof shall endeavor to give Landlord at least ten (10) days’ prior written notice of any cancellation of such
policy. If Tenant shall fail to procure and maintain the insurance required to be carried by the Insuring Party under this Section 11,
Landlord may, but shall not be required to, procure and maintain the same, at Tenant’s expense, which amount shall be payable
by Tenant to Landlord within thirty (30) days after demand.

 

12.Real Property
Taxes .

 

12.1Payment of
Taxes. Landlord shall pay all Real Property Taxes, as defined in Section 12.2, applicable to the Premises during
the entire Term of this Lease.

 

12.2Definition
of Real Property Taxes. The term “Real Property Taxes” means any form of real estate tax or assessment,
general, special, ordinary or extraordinary, and any license fee, commercial rental tax, improvement bond or bonds, levy or tax
(other than inheritance, personal income or estate taxes) imposed upon the Premises by any authority having the direct or indirect
power to tax, including any city, state or federal government, or any school, agricultural, sanitary, fire, street, drainage or
other improvement district thereof, levied against any legal or equitable interest of Landlord in the Premises or in the Landlord’s
Real Property, Landlord’s right to rent or other income therefrom, and/or Landlord’s business of leasing the Premises.

 

    	 	 6	 

     

    

 

13.Personal
Property Taxes. Tenant shall pay prior to delinquency all taxes assessed against and levied upon Tenant’s personal
property on the Premises. When possible, Tenant shall cause Tenant’s personal property to be assessed and billed separately
from the Landlord’s Real Property. If any of Tenant’s personal property shall be assessed with the Landlord’s
Real Property, Tenant shall pay Landlord the taxes attributable to Tenant within ten (10) days after receipt of a written
statement setting forth in particularity the taxes applicable to Tenant’s personal property.

 

14.Utilities
and Water. Tenant shall obtain and pay directly to the provider thereof, at Tenant’s sole cost during the Term,
all sewer, electrical, water, telephone, and other utilities supplied to the Premises. Tenant shall pay for its trash disposal
with respect to the Premises.

 

15.Damage and
Destruction. In the event of damage or destruction to all or any portion of the Premises, whether or not such damage
is material, and whether or not such damage is insured, neither Landlord nor Tenant shall have any obligation to repair or restore
such affected portion of the Premises; provided, however, Landlord and Tenant shall each have the right to make such repairs as
they deem necessary or desirable. This Section shall not apply to (a) damage resulting from any breach of this Lease by Tenant,
from any violation by, or with the permission of, Tenant of any of the Environmental Laws or any damage caused by the gross negligence
or willful misconduct of Tenant (other than damage to, or destruction of, the Houses, as which Tenant shall have no repair or
restoration obligation), or (b) damage resulting from a breach of this Lease by Landlord, from any violation by, or with
the permission of, Landlord of any Environmental Laws or any damage caused by the gross negligence or willful misconduct of Landlord.

 

16.Default;
Breach; Remedies.

 

16.1Default;
Breach. A “Default” means a failure by Tenant to observe, comply with or perform any of the terms,
covenants, conditions or rules applicable to Tenant under this Lease. A “Breach” means the occurrence of any
one or more of the following Defaults, and, where a grace period for cure after notice is specified herein, the failure by Tenant
to cure such Default prior to the expiration of the applicable grace period:

 

16.1.1The failure
by Tenant to make any monetary payment required to be made by Tenant hereunder, where such failure continues for a period of five (5)
days following written notice thereof.

 

16.1.2Except as
provided in Section 24 below, a Default by Tenant other than a Default described in Section 16.1.1 above, where such Default
continues for a period of thirty (30) days after written notice thereof by or on behalf of Landlord to Tenant; provided, however,
that if the nature of Tenant’s default is such that more than thirty (30) days are reasonably required for its cure,
then it shall not be deemed to be a Breach of this Lease by Tenant if Tenant commences such cure within said thirty (30) day
period and thereafter diligently prosecutes such cure to completion.

 

16.1.3The occurrence
of any of the following events: (i) The making by Tenant of any general arrangement or assignment for the benefit of creditors;
(ii) Tenant’s becoming a “debtor” as defined in 11 U.S.C. §101 or any successor statute thereto
(unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); (iii) the appointment
of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s
interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or (iv) the attachment, execution
or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in
this Lease, where such seizure is not discharged within thirty (30) days; provided, however, in the event that any provision
of this Section 16.1.3 is contrary to any applicable Law, such provision shall be of no force or effect, and not affect the
validity of the remaining provisions.

 

    	 	 7	 

     

    

 

16.2Remedies.
If there exists a non-monetary Breach, Landlord may at its option (but without obligation to do so), cure such Breach on Tenant’s
behalf. The reasonable third-party out-of-pocket costs of any such performance by Landlord shall be due and payable by Tenant
to Landlord within thirty (30) days after receipt by Tenant of an invoice therefor, together with documentation supporting
the amount thereunder reasonably satisfactory to Tenant and such amount shall accrue interest at ten percent (10%) per annum compounded
monthly until paid. In the event of a Breach, with or without further notice or demand, and without limiting Landlord in the exercise
of any right or remedy that Landlord may have by reason of such Breach, Landlord may do any of the following:

 

16.2.1Terminate
Tenant’s right to possession of the Premises by any lawful means, in which case this Lease and the Term shall terminate and
Tenant shall immediately vacate and surrender possession of the Premises to Landlord. In such event Landlord shall be obligated
to mitigate its damages, and shall be entitled to recover from Tenant such sums as are permitted by applicable Law.

 

16.2.2Pursue any
other remedy now or hereafter available to Landlord at law or in equity.

 

16.3Breach by
Landlord. Landlord shall not be deemed in breach or default of this Lease unless Landlord has received notice from Tenant
of such breach or default and Landlord fails to cure such breach or default within a reasonable time thereafter. For purposes
of this Section 16.3, except in the case of emergencies, a reasonable time shall be deemed to be thirty (30) days after
receipt by Landlord of written notice specifying the obligation of Landlord that has not been performed; provided, however, that
if the nature of Landlord’s breach or default is such that more than thirty (30) days are reasonably required for its
cure, then it shall not be deemed to be a breach or default of this Lease by Landlord if Landlord commences such cure within said
thirty (30) day period and thereafter diligently prosecutes such cure to completion.

 

17.Subordination
and Non-Disturbance.

 

17.1Tenant shall,
within fifteen (15) Business Days after written request by Landlord, execute all documents reasonably required by a Mortgagee to
subordinate its rights under this Lease to the lien of any mortgage, under a deed of trust, or other lien now or hereafter placed
on the Premises, and to any renewals, modifications, refinancings and extensions thereof (collectively “Mortgage”
and the party having the benefit of a Mortgage being referred to as a “Mortgagee”); provided, however, that
Tenant shall not be required to subordinate its rights under this Lease, unless Landlord delivers to Tenant, a recordable, commercially
reasonable form of non-disturbance agreement executed by the Mortgagee, which in all events shall include provisions to the effect
that (i) so long as there is not a continuing Breach under this Lease, Tenant’s rights to possession and the other terms
of this Lease shall be undisturbed and remain in full force and effect (ii) Tenant shall not be named as a defendant in any
foreclosure action or proceeding that may be instituted by the Mortgagee; (iii) if the Mortgagee or other purchaser acquires
title to the Premises through foreclosure or otherwise, this Lease shall continue in full force and effect as a direct lease between
Tenant and the purchaser, and the purchaser shall assume and perform all of the terms and covenants of this Lease for the period
from and after the date it acquires title; and (iv) such other customary and commercially reasonable covenants requested by
Tenant.

 

    	 	 8	 

     

    

 

17.2Attornment
by Tenant. If the Mortgage or other purchaser acquires title to the Premises through foreclosure, deed in lieu of foreclosure,
or otherwise, Tenant shall attorn to the purchaser or transferee upon any such foreclosure or other transfer and recognize such
Mortgagee or other purchaser as Landlord under this Lease.

 

17.3Estoppel
Certificate. Each Party (as “Responding Party”) shall, within ten (10) days after written
notice from the other Party (the “Requesting Party”), execute and deliver to the Requesting Party a commercially
reasonable estoppel certificate in favor of those third parties as are reasonably requested by the Requesting Party. Such certificate
shall provide for the other Party to certify this Lease is unmodified and in full force and effect (or if there have been modifications,
the same is in full force and effect as so modified), whether to the Requesting Party’s actual knowledge Landlord or Tenant,
as the case may be, is in default or breach hereunder, and such other factual matters reasonably requested by the Requesting Party
that cannot be determined by reviewing this Lease.

 

18.Severability.
The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the
validity of any other provision hereof.

 

19.Interest
on Past-Due Obligations. Any monetary payment due Landlord hereunder and not received by Landlord within ten (10)
days following Tenant’s receipt of written notice of such delinquency shall bear interest from the eleventh (11th)
day after such notice at the rate of ten percent (10%) per annum, compounded monthly, but not exceeding the maximum rate allowed
by Law.

 

20.Time of
Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the
Parties under this Lease.

 

21.No Prior
or Other Agreements. This Lease contains all agreements between the Parties with respect to the occupancy of the Premises
by Tenant, all prior agreements among the Parties with respect to the subject matter of this Lease, whether oral or written, are
merged herein and shall be of no force or effect.

 

22.Notices.
Any notice, demand, request or communication required or permitted to be given by any provision of this Lease shall be in writing
and shall be delivered personally to the Party to whom the same is directed, sent by registered or certified mail, return receipt
requested, or sent by Federal Express or any other courier service guaranteeing overnight delivery, addressed to any Party at
the address appearing below such Party’s name on the signature page to this Lease or by electronic transmission to the electronic
mail address set below such Party’s name on the signature page to this Lease (followed by notice by mail sent in the manner
described above, or by Federal Express or other courier service), or to such other address as each Party may from time to time
specify by notice in accordance with this Section 22. Any such notice shall be deemed to have been delivered, given, and
received for all purposes as of the date so delivered, at the applicable address, provided that notices received on a day that
is not a business day, or after 5:00 p.m. (at the location to which delivery is to be made) on a business day shall be deemed
received on the next business day. The inability to deliver a notice because of a changed address of which no notice was given
or an inoperative facsimile number for which no notice was given of a substitute number, or any rejection or other refusal to
accept any notice, shall be deemed to be the receipt of the notice as of the date of such inability to deliver or rejection or
refusal to accept. Any notice to be given by any Party hereto may be given by legal counsel for such Party.

 

    	 	 9	 

     

    

 

23.Waivers.
One or more waivers by Landlord or Tenant of any breach or default of any term, covenant or condition contained in this Lease
shall not be a waiver of any subsequent breach or default of the same or any other term, covenant or condition.

 

24.Holdover.
If Tenant holds over on any Stage after the scheduled expiration date of such Stage (as the same may be extended pursuant to Section
4.1 above) or at the expiration of the Term, then notwithstanding the provisions of Section 16.1.2 above, Tenant shall be
in Breach (without any notice thereof or opportunity to cure).

 

25.Cumulative
Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with
all other remedies at law or in equity.

 

26.Binding
Effect; Choice of Law. This Lease shall be binding upon and inure to the benefit of the Parties, and their respective
legal representatives, successors, transferees and assigns and be governed by the laws of California.

 

27.Legal and
Other Costs. If any Party obtains a judgment against any other Party in connection with a dispute with regard to this
Lease Agreement, such Party shall be entitled to recover from the non-prevailing Party its court costs, costs of collection and
reasonable attorneys’ fees and disbursements incurred in connection therewith and in any appeal or enforcement proceeding
thereafter, in addition to all other recoverable costs. The provisions of this Section 27 shall survive any termination of
this Agreement.

 

28.Landlord’s
Access; Showing Premises. It is anticipated that during the Term, Landlord will be planning for the development of its
Project on the Landlord’s Real Property in accordance with Project Entitlements. Tenant hereby grants to Landlord and Landlord’s
agents, employees, contractors and consultants access to the Premises twenty-four (24) hours per day, seven (7) days
per week for the entire Term provided any such access other than during normal business hours shall be subject to a minimum of
twenty-four (24) hours prior written notice to Tenant. Any such access by Landlord shall be for the purpose of preparing
for development of the Project (which shall not be deemed to include any construction activities thereon) and such other purposes
as Landlord shall desire, including showing the same to prospective lenders or purchasers or to Landlord’s contractors,
architects or other agents in connection with Landlord’s proposed development of Landlord’s Real Property, providing
such activities of Landlord do not unreasonably interfere with the Tenant operations on the Premises. Landlord and Landlord’s
agents shall also have the right to enter the Premises at any time, in the case of an emergency.

 

29.Termination;
Merger. Unless specifically stated otherwise in writing by Landlord, the voluntary or other surrender of this Lease
by Tenant, the mutual termination or cancellation hereof, or a termination hereof by Tenant pursuant to Section 4.1 above or by
Landlord for Breach by Tenant, shall automatically terminate any sublease or lesser estate in the Premises.

 

    	 	 10	 

     

    

 

30.Consents.
Except as otherwise expressly provided in this Lease, wherever in this Lease the consent of a Party is required to an act by or
for the other Party, such consent shall not be unreasonably withheld, conditioned or delayed.

 

31.Quiet Possession.
Upon observance and performance of all of the covenants, conditions and provisions on Tenant’s part to be observed and performed
under this Lease, Tenant shall have quiet possession of the Premises for the entire Term hereof, subject to all of the provisions
of this Lease.

 

32.Performance
Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the
other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to
make payment “under protest” and such payment shall not be regarded as a voluntary payment and there shall survive
the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal
obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or
so much thereof as it was not legally required to pay under the provisions of this Lease, plus interest at the maximum rate allowable
by Law.

 

33.Authority.
If either Party hereto is a corporation, limited liability company or partnership, then such Party represents and warrants that
the person or persons executing this Lease on its behalf is duly authorized to execute and deliver this Lease and that this Lease
is binding upon the corporation, limited liability company or partnership.

 

34.Contingency.
This Lease is contingent upon occurrence of the Closing and shall be null and void and of no force and effect unless the Closing
occurs.

 

35.Exhibits.
The exhibits attached to this Lease are hereby incorporated herein by this reference.

 

36.Counterpart
Execution; Facsimile Signatures. This Lease may be executed in any number of counterparts, each of which may be executed
by less than all of the Parties, each of which shall be enforceable against the Parties actually executing such counterparts,
and all of which together shall constitute one and the same agreement. Executed copies of the signature pages of this Lease sent
by facsimile or transmitted electronically shall be treated as originals, fully binding and with full legal force and effect,
and the Parties waive any rights they may have to object to such treatment.

 

37.Amendments.
This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification.

 

38.Indemnification.

 

38.1Tenant Indemnity.
To the fullest extent permitted by Law, Tenant shall indemnify, defend and hold harmless Landlord and its agents, lenders, predecessors,
successors, Affiliates and their respective partners, employees, Affiliates and agents (collectively, the “Landlord Parties”)
from and against any and all losses, claims, demands, liabilities, actions, penalties, judgments, damages, costs and expenses,
including without limitation court costs and reasonable attorneys’ fees (individually, a “Claim” and
collectively, “Claims”) caused by, a Breach or Default or from the negligence or willful misconduct of Tenant
or any other “Tenant Parties” (as defined below) or from the acts or omissions of the Grading Contractor or otherwise
in connection with the Grading Contract. Notwithstanding the foregoing, Tenant shall not be obligated to indemnify Landlord for
any Claim to the extent such Claim is caused by, arises out of, or results from (i) the negligence or willful misconduct
of Landlord or any of the other Landlord Parties or (ii) a breach or default of this Lease by Landlord.

 

    	 	 11	 

     

    

 

38.2Landlord
Indemnity. To the fullest extent permitted by Law, Landlord shall indemnify, defend and hold harmless Tenant, and its
agents, lenders, predecessors, successors and Affiliates, and their respective partners, employees, Affiliates and agents (collectively,
the “Tenant Parties”) from and against any and all Claims caused by Landlord’s breach or default
of its obligations under this Lease or from the negligence or willful misconduct of Landlord or any Landlord Parties. Notwithstanding
the foregoing, Landlord shall not be required to indemnify Tenant against any Claim to the extent such Claim is caused by, arises
out of, or results from (i) the negligence or willful misconduct of Tenant or any other Tenant Parties, or (ii) a Breach
or Default of this Lease by Tenant.

 

38.3General.
This Section 38 is not intended and shall not relieve any insurance carrier of its obligations under policies covered or
required to be carried pursuant to the provisions of this Lease. The provisions of Section 38 shall survive the expiration
or sooner termination of this Lease with respect to any Stage as to any Claims occurring prior to such expiration or termination.

 

39.Transfers.
Tenant shall not, without the prior written consent of the Landlord which consent may be withheld by Landlord in Landlord’s
sole discretion, assign, mortgage, pledge, hypothecate, encumber, or permit any lien to attach to, or otherwise transfer, this
Lease or any interest hereunder, permit any assignment or other such foregoing transfer of this Lease or any interest hereunder
by operation of law, or sublet the Premises or any part thereof, except as otherwise expressly provided herein with respect to
the Houses and the Soccer Fields.

 

40.Waiver of
Consequential Damages. Notwithstanding anything to the contrary contained in this Lease, neither Landlord nor
Tenant shall be liable under any circumstances for, and each hereby releases the other from all liability for, any form of special
or consequential damages however occurring, including, but not limited to, loss of profits, loss of business opportunity, loss
of goodwill or loss of use, except that this sentence shall not limit the indemnification obligations of either Party under this
Lease with respect to third-party claims.

 

[SIGNATURE PAGES BEGIN ON FOLLOWING]

 

 

    	 	 12	 

     

    

 

The parties hereto
have executed this Lease at the place and on the dates specified above their respective signatures.

  

	LANDLORD:	 	TENANT:
	 	 	 
	 	 	 
	Limoneira Lewis Community Builders, LLC,	 	Limoneira Company,
	a Delaware limited liability company	 	a Delaware corporation

 

	By:	Limoneira EA 1 Land, LLC,	 	By:	/s/ Joseph D. Rumley
	 	a Delaware limited liability company,	 	Name:  	Joseph D. Rumley
	 	its sole Member	 	Title:	Chief Financial Officer

 

	 	By:	Limoneira Company,	 	 
	 	 	a Delaware corporation,	 	Notice Address:
	 	 	its sole Member	 	 

 

	 	 	By:	/s/ Harold S. Edwards	 	1141 Cummings Road
	 	 	Name:  	Harold S. Edwards	 	Santa Paula, California 93068
	 	 	Its:	Chief Executive Officer	 	Attention:  Mr. Harold Edwards
	 	 	 	 	 	Email:  hedwards@limoneira.com

 

	Notice Address:
	 
	Limoneira Lewis Community Builders, LLC
	1156 N. Mountain Avenue
	Upland, California 91786
	Attention: John M. Goodman

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