Document:

Exhibit
10.3

 

	

        RECORDING
        REQUESTED BY:

         

        Paul,
        Weiss, Rifkind, Wharton & Garrison LLP

         

        AND
        WHEN RECORDED MAIL TO:

         

        Paul,
        Weiss, Rifkind, Wharton & Garrison LLP

        1285
        Avenue of the Americas

        New
        York, NY 10019-6064

        Attn.:
        Peter E. Fisch, Esq.
	 

 

Space
above this line for recorder’s use only

 

DEED
OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY

AGREEMENT, FINANCING STATEMENT AND FIXTURE FILING

 

dated
as of May 25, 2017

 

Cadiz
Inc., Cadiz Real Estate LLC, and Octagon Partners, LLC,

collectively, as Trustor

 

to

 

Chicago
Title Company,

as Trustee

 

and

 

Wells
Fargo Bank National Association, as Agent for the Lenders from time to time

under the Credit Agreement, 

as Beneficiary

 

     

     

    

 

DEED
OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY

AGREEMENT,
FINANCING STATEMENT AND FIXTURE FILING

 

THIS
DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT, FINANCING STATEMENT AND FIXTURE FILING (this “Deed
of Trust”) is made as of May 25, 2017 (the “Effective Date”), by and among CADIZ INC., a Delaware
corporation formerly known as and formerly named Cadiz Land Company, Inc., a Delaware corporation, which (i) took title to
the property described as Parcel 21 on Exhibit A hereto as “Pergola Properties” and (ii) was successor by merger
to Cadiz Valley Development Corporation, a California Corporation, with an address of 550 South Hope Street, Suite 2850, Los Angeles,
California, 90071 (“Cadiz”) and CADIZ REAL ESTATE LLC, a Delaware limited liability company with an address
of 550 South Hope Street, Suite 2850, Los Angeles, California, 90071 (“CRE”), and Octagon Partners, LLC, a
California limited liability company with an address of 550 South Hope Street, Suite 2850, Los Angeles, California, 90071 (“Octagon”,
together with Cadiz and CRE, collectively the “Trustor”), in favor of Chicago Title Company, having an office
at 560 East Hospitality Lane, San Bernardino, California 92408, as trustee (the “Trustee”) for the benefit
of WELLS FARGO BANK NATIONAL ASSOCIATION, with an address of 9062 Old Annapolis Road, Columbia, Maryland 21045, as the Agent for
the Lenders from time to time under the Credit Agreement (together with its successors and assigns in such capacity, the “Beneficiary”).

 

WHEREAS,
reference is made to that certain Credit Agreement, dated as of May 1, 2017 (as amended, modified, waived, amended and restated
or otherwise changed from time to time, the “Credit Agreement”), by and among Cadiz, CRE, the lenders from
time to time party thereto (the “Lenders”) and Wells Fargo Bank National Association, as administrative agent
(the “Agent”) whereupon Lenders have extended a credit facility to the Trustor in an aggregate principal amount
of $60,000,000 in the form of Secured Term Loans and Loan Commitments (as defined in the Credit Agreement).

 

WHEREAS,
the Trustor will receive substantial benefits from the execution, delivery and performance of the obligations under the Credit
Agreement and the other Loan Documents (as defined in the Credit Agreement), and is, therefore, willing to enter into this Deed
of Trust.

 

WHEREAS,
this Deed of Trust is given by Trustor in favor of the Trustee for the benefit of the Beneficiary to secure the payment and performance
of all of the Obligations (as defined in the Credit Agreement) with respect to the Secured Term Loans and Loan Commitments.

 

WHEREAS,
it is a condition to the obligations of the Lenders to make the Secured Term Loans under the Credit Agreement that Trustor execute
and deliver this Deed of Trust.

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

    	 	2	 

     

    

 

ARTICLE
I

GRANTS AND OBLIGATIONS SECURED

 

A.
          GRANT

 

1.1.           
 FOR
GOOD AND VALUABLE CONSIDERATION, including the indebtedness
herein recited and the trust herein created, the receipt of which is hereby acknowledged, as collateral security for the payment
and performance of all the Obligations, Trustor hereby irrevocably GRANTS, BARGAINS, ASSIGNS, SELLS,
CONVEYS and CONFIRMS to Trustee, IN TRUST, WITH POWER OF SALE AND RIGHT OF ENTRY AND POSSESSION, for the
benefit and security of Beneficiary, under and subject to the terms and conditions hereinafter set forth, and grants to Beneficiary
a security interest in the following property, rights, interests and estates of Trustor whether now owned or hereafter arising
or acquired, from time to time:

 

(i)           that
certain real property located in the County of San Bernardino, State of California more particularly described in Exhibit A
attached hereto and by this reference incorporated herein (all such real property described in Exhibit A is collectively
referred to herein as the “Premises”);

 

(ii)          TOGETHER
WITH any and all structures, buildings and improvements and any and all alterations now or hereafter located or erected on
the Premises, all pumps and pumping stations used in connection therewith and all shares of stock evidencing the same, all fixtures,
attachments, appliances, equipment, machinery, furnishings, inventory and other articles or property used or usable in connection
with the Premises or attached or affixed in any manner to said structures, buildings and improvements including, but not limited
to all storage tanks and pipelines, all gas, electric, heating, cooling, air conditioning, refrigeration, ventilation, sanitation,
and plumbing fixtures and equipment and any additions to, substitutions for, changes or replacements of the whole or any part
thereof (collectively, the “Improvements”), all of which shall be deemed and construed to be a part of the
realty;

 

(iii)         TOGETHER
WITH all rents, earnings, issues, profits, royalties, income, accounts receivable, revenues, deposits, security deposits,
receipts and other benefits (collectively, the “Rents”) derived or generated from the use and operation of
the Premises, Improvements and the Collateral (as hereinafter defined) or to which Trustor may be entitled, whether now due, past
due or to become due or from any lease, sublease, license, franchise or concession, occupancy agreement or other agreement now
or hereafter affecting all or any portion of the Premises or the Improvements or the use, operation or occupancy thereof (collectively,
the “Leases”), subject to the terms and provisions of Article 3 hereof;

 

(iv)          TOGETHER
WITH all right, title and interest now or hereafter appertaining, belonging to or acquired by Trustor in and to any easements,
rights-of-way, rights, licenses, profits, and privileges used in connection therewith or as a means of access thereto, including,
without limiting the generality of the foregoing, all rights pursuant to any trackage agreement and all rights to the nonexclusive
use of common drive entries, any after acquired title and reversion in or to each and every part of all streets, roads, ways,
passages, sidewalks, highways and alleys adjacent to and adjoining the same, and all tenements, hereditaments and appurtenances
thereof and thereto (collectively, the “Appurtenances”);

 

(v)           TOGETHER
WITH all right, title and interest of Trustor, whether owned legally, of record, equitably, beneficially or otherwise, whether
constituting real or personal property (or subject to any other characterizations), whether created or authorized under existing
or future laws or regulations, and however arising, in all water rights and assets (collectively, the “Water Rights and
Assets”), including without limitation, the following;

 

(a)       All
water (including any water inventory in storage), water rights and entitlements, other rights to water and other rights to receive
water or water rights of every kind or nature whatsoever including (i) the groundwater on, under, pumped from or otherwise
available to the Premises, whether as the result of groundwater rights, contractual rights or otherwise, (ii) Trustor’s
right to remove and extract any such groundwater including any permits, rights or licenses granted by any governmental authority
or agency or any rights granted or created by any use, easement, covenant, agreement, or contract with any Person, (iii) any
rights to which the Premises is entitled with respect to surface water, whether such right is appropriative, riparian, prescriptive,
decreed or otherwise and whether or not pursuant to permit or other governmental authorization, or the right to store any such
water, (iv) any water, water right, water allocation, distribution right, delivery right, water storage right, or other water-related
entitlement appurtenant or otherwise applicable to the Premises by virtue of the Premises being situated within the boundaries
of any district, agency, or other governmental entity or within the boundaries of any private water company, mutual water company,
or other non-governmental entity, and (v) all rights in and to pumping plants, pipes, flumes and all rights in ditches for
irrigation of the Premises;

 

(b)       All
stock, interest or rights (including any water allocations, voting or decision rights) in any entity, together with any and all
rights from any entity or other Person to acquire, receive, exchange, sell, lease or otherwise transfer any water or other Water
Rights and Assets, to store, deposit or otherwise create water credits in a water bank or similar or other arrangements for allocating
water, to transport or deliver water, or otherwise to deal with any Water Rights and Assets;

 

(c)       All
licenses, permits, approvals, contracts, decrees, rights and interests to acquire or appropriate any water or other Water Rights
and Assets, water bank or other credits evidencing any right to water or other Water Rights and Assets, to store, carry, transport
or deliver water or other Water Rights and Assets, to sell, lease, exchange, or otherwise transfer any water or other Water Rights
and Assets, or to change the point for diversion of water, the location of any water or Water Rights and Assets, the place of
use of any water or Water Rights and Assets, or the purpose of the use of any water or Water Rights and Assets;

 

    	 	3	 

     

    

 

(d)       All
rights, claims, causes of action, judgments, awards, and other judicial, arbiter or administrative relief in any way relating
to any water or Water Rights and Assets;

 

(e)       All
storage and treatment rights for any water or any other Water Rights and Assets, whether on or off the Premises or other property
of Trustor, together with all storage tanks, and other equipment used or usable in connection with such storage and any water
bank deposit credits, deposit accounts;

 

(f)       All
rights to transport, carry, allocate or otherwise deliver water or other Water Rights and Assets by any means wherever located;

 

(g)       All
guaranties, warranties, marketing, management or service contracts, indemnity agreements, and water right agreements, other water
related contracts and water reallocation rights, all insurance policies regarding or relating to any Water Rights and Assets;
and

 

(h)       All
rents, issues, profits, proceeds and other accounts, instruments, chattel paper, contract rights, general intangibles, deposit
accounts, and other rights to payment arising from, or on account of any us, nonuse, sale, lease, transfer or other disposition
of any Water Rights and Assets.

 

The
references to “water” and “water rights and assets” are used herein in the broadest and most comprehensive
sense of the terms. The term “water” includes water rights and rights to water or whatever rights to money, proceeds,
property or other benefits are exchanged or received for or on account of any Water Rights and Assets or any conservation or other
nonuse of water, including whatever rights are achieved by depositing shares of any Water Right and Assets in any water bank or
with any water authority, or any other water reallocation rights;

 

(vi)       TOGETHER
WITH all leasehold estates, rights, titles and interests of Trustor in, to and under all leases, permits, subleases, licenses,
franchises and other agreements covering the Premises however characterized, issued or in any way furnished, whether necessary
or not for the operation and use of the Premises, including, without limitation, building permits, certificates of occupancy,
environmental certificates of operation relating to, the Improvements or any portion thereof now or hereafter existing or entered
into, and all rights, titles and interests of Trustor thereunder, including, without limitation, all cash or security deposits,
advance rentals, and deposits or payments of similar nature;

 

    	 	4	 

     

    

 

(vii)       TOGETHER
WITH all right, title and interest now owned or hereafter acquired by Trustor in and to any greater estate in the Premises
or the Improvements;

 

(viii)       TOGETHER
WITH all the estate, interest, right, title, other claim or demand, both in law and in equity, including, without limitation,
claims or demands with respect to the proceeds of insurance in effect with respect to the Premises or the Improvements, which
Trustor now has or may hereafter acquire in the Premises or the Improvements, and any and all awards, damages, remunerations,
reimbursements, settlements or compensation made by any governmental authority pertaining to any condemnation or other taking
by eminent domain, or by any proceeding of purchase in lieu thereof, of any other component of the whole or any part of the Trust
Estate (as hereinafter defined), including, without limitation, any awards resulting from a change of grade of streets, awards
for severance damages, and all property tax refunds payable with respect to the Trust Estate (as hereinafter defined) (collectively,
the “Claims”);

 

(ix)         TOGETHER
WITH all right, title and interest now owned or hereafter acquired by Trustor in and to any and all articles of personal property
of every kind and nature whatsoever and any additions to, substitutions for, changes in or replacements of the whole or any part
thereof, including, without limitation, all goods, fixtures, wall-beds, wall-safes, built-in furniture and installations, shelving,
partitions, door-stops, vaults, elevators, dumb-waiters, awnings, window shades, venetian blinds, light fixtures, fire hoses and
brackets and boxes for the same, fire sprinklers, alarm systems, drapery rods and brackets, screens, linoleum, carpets, plumbing,
laundry tubs and trays, iceboxes, refrigerators, heating units, stoves, ovens, water heaters, incinerators, furniture and furnishings,
communication systems, all specifically designed installations and furnishings and all of said articles of property, the specific
enumerations herein not excluding the general, now or at any time hereafter affixed to, attached to, placed upon, used or useful
in any way in connection with the use, enjoyment, occupancy or operation of the Premises or the Improvements or any portion thereof
and owned by Trustor or in which Trustor now has or hereafter acquires an interest, and all building materials, supplies, tools
and equipment now or hereafter delivered to the Premises and intended to be installed or placed in or about the Improvements (collectively,
the “Personal Property”);

 

(x)          TOGETHER
WITH all inventory in all of its forms (except real estate), wherever located, now or hereafter existing, including, but not
limited to, (a) all plastic, corrugated and other containers and raw materials and work in progress therefor, finished goods
thereof, and materials used or consumed in the manufacture or production thereof, (b) goods in which the Trustor has an interest
in mass or a joint or other interest or right or interest of any kind (including, without limitation, goods in which the Trustor
has an interest or right as consignee), and (c) goods which are returned to or repossessed by the Trustor, and all accessions
thereto and products thereof and documents therefor;

 

    	 	5	 

     

    

 

(xi)         TOGETHER
WITH all farm products in all of their respective forms, wherever located, now or hereafter existing, to be planted or grown
on the Premises (including, but not limited to, crops, nursery stock, root stock, container grown products, seedlings, vines,
trees, and other plants or plant products, fertilizers and herbicides), but specifically excluding growing crops, and all accessions
to and products of and documents for any of the foregoing;

 

(xii)       TOGETHER
WITH all general intangibles relating to design, development, operation, management and use of the Premises and construction
of the Improvements, including, but not limited to, (a) all permits, licenses, authorizations, variances, land use entitlements,
approvals and consents issued or obtained in connection with the construction of the Improvements, (b) all permits, licenses,
approvals, consents, authorizations, franchises and agreements issued or obtained in connection with the use, occupancy or operation
of the Premises or the Improvements, (c) all rights as a declarant (or its equivalent) under any covenants, conditions and
restrictions or other matters of record affecting the Premises or the Improvements, (d) all materials prepared for filing
or filed with any governmental agency, (e) all rights under any contract in connection with the development, design, use,
operation, management and construction of the Premises or the Improvements and (f) all books and records prepared and kept
in connection with the acquisition, construction, operation and occupancy of the Premises, the Improvements and any other component
of the Trust Estate (as hereinafter defined);

 

(xiii)      TOGETHER
WITH all construction, service, engineering, consulting, leasing, architectural and other similar contracts of any nature
(including, without limitation, those of any general contractors, subcontractors and materialmen), as such may be modified, amended
or supplemented from time to time, concerning the design, construction, management, operation, occupancy, use, and/or disposition
of any other component of any portion of or all of the Trust Estate (as hereinafter defined);

 

(xiv)       TOGETHER
WITH all architectural drawings, plans, surveys, specifications, soil tests and reports, feasibility studies, appraisals,
engineering reports and similar materials relating to any portion or all of the Premises and the Improvements;

 

(xv)        TOGETHER
WITH all payment and performance bonds or guarantees and any and all modifications and extensions thereof relating to the
Premises and the Improvements;

 

(xvi)       TOGETHER
WITH all reserves, deferred payments, deposits, refunds, cost savings, letters of credit and payments of any kind relating
to the construction, design, development, operation, occupancy, use and disposition of any other component of all or any portion
of the Trust Estate (as hereinafter defined), including, without limitation, any property tax rebates now owing or hereafter payable
to Trustor;

 

    	 	6	 

     

    

 

(xvii)      TOGETHER
WITH all proceeds of the Secured Term Loans secured hereby and any commitment by any Lender to extend permanent or additional
construction or other financing to Trustor relating to any other component of the Trust Estate (as hereinafter defined);

 

(xviii)     TOGETHER
WITH all proceeds and claims arising on account of any damage to or taking of any other component of the Trust Estate (as
hereinafter defined) or any part thereof, and all causes of action and recoveries for any loss or diminution in the value of any
other component of the Trust Estate (as hereinafter defined);

 

(xix)       TOGETHER
WITH all policies of, and proceeds resulting from, insurance relating to any other component of the Trust Estate (as hereinafter
defined) or any of the above collateral, and any and all riders, amendments, renewals, supplements or extensions thereof, and
all proceeds thereof;

 

(xx)        TOGETHER
WITH all deposits made with or other security given to utility companies by Trustor with respect to the Premises and/or the
Improvements, and all advance payments of insurance premiums made by Trustor with respect thereto and claims or demands relating
to insurance and all deposit accounts wherever located;

 

(xxi)       TOGETHER
WITH all shares of stock or other evidence of ownership of any other component of any part of the Trust Estate (as hereinafter
defined) that is owned by Trustor in common with others, including all water stock relating to the Premises or the Improvements,
if any, and all documents or rights of membership in any owners’ or members’ association or similar group having responsibility
for managing or operating any part of the Premises or the Improvements;

 

(xxii)      TOGETHER
WITH all proceeds, whether cash, promissory notes, contact rights or otherwise, of the sale or other disposition of all or
any part of the estate of Trustor upon the Trust Estate now or hereafter existing thereon, provided, however, the foregoing shall
not authorize or entitle Trustor to dispose of the Trust Estate (as hereinafter defined), except as may be permitted pursuant
to the Loan Documents;

 

(xxiii)     TOGETHER
WITH all sales contracts, escrow agreements and broker’s agreements concerning the sale of any other component of any
or all of the Trust Estate (as hereinafter defined);

 

(xxiv)       TOGETHER
WITH any and all monies and other property, real or personal which may from time to time be subjected to the lien hereof by
Trustor or by anyone on its behalf or with its consent, or which may come into the possession or be subject to the control of
Trustee or Beneficiary pursuant to this Deed of Trust, the Credit Agreement, or any other Loan Document, including, without limitation,
any protective advances under this Deed of Trust;

 

    	 	7	 

     

    

 

(xxv)       TOGETHER
WITH all Goods, Accounts, Documents, Instruments, Money, Chattel Paper and General Intangibles, as those terms are defined
in the Uniform Commercial Code from time to time in effect in the State of California (“California Commercial Code”)
(collectively with the property described in subsections (x) through (xxiv), the “Collateral”).

 

The
security interest granted by Section 1.1 with respect to the property described in subsection (iii) above is intended
by Trustor to be subject to the provisions of Article 3 hereof and shall not take priority unless and until the license
granted to Beneficiary by Trustor in Article 3 is for any reason deemed to be ineffective, terminated or revoked.

 

1.2.           
 MINERAL
RIGHTS. Trustor hereby assigns and transfers to Beneficiary
all damages, royalties and revenue of every kind, nature and description whatsoever that Trustor may be entitled to receive from
any Person owning or having or hereafter acquiring a right to the oil, gas or mineral rights and reservations of the Premises,
with the right of Beneficiary to receive and receipt therefor, and apply the same to the indebtedness secured hereby either before
or after any default hereunder, and Beneficiary may demand, sue for and recover any such payments but shall have no duty to do
so.

 

The
entire estate, property and interest hereby conveyed to Trustee in Sections 1.1 and 1.2 of this Article 1(A)
may hereafter be collectively referred to as the “Trust Estate.”

 

1.3.           
FIXTURE FILING.
The personal property in which Beneficiary has a security interest includes goods which are or shall become fixtures on the Premises.
This Deed of Trust is intended to serve as a fixture filing pursuant to the terms of Division 9 of the California Commercial Code.
The information provided in this Section 1.3 is provided so that this Deed of Trust shall comply with the requirements of the
California Commercial Code for a mortgage instrument to be filed as a financing statement. This filing is to be recorded in the
real estate records of the county in which the Premises is located. This filing remains in effect as a fixture filing until this
Deed of Trust is released or satisfied of record or its effectiveness otherwise terminates as to the Trust Estate. In that regard,
the following information is provided:

 

Names
of Debtor: Cadiz Inc., Cadiz Real Estate LLC

and
Octagon Partners, LLC

 

Address
of Debtor: See Section 5.5 hereof.

 

Name
of Secured Party: Wells Fargo Bank National Association, as Agent for the Lenders

 

Address
of Secured Party: See Section 5.5 hereof.

 

Trustor
is the owner of a record interest in the real estate concerned. Trustor warrants and agrees that, except as otherwise permitted
under the Credit Agreement, there is no financing statement covering the foregoing Collateral, the Premises, the Improvements,
the Trust Estate, or any part thereof, on file in any public office.

 

    	 	8	 

     

    

 

1.4.        SECURITY
AGREEMENT. This Deed of Trust shall also constitute a “security agreement” on
personal property within the meaning of the California Commercial Code and other applicable law and with respect to the portions
of the Trust Estate that constitute personal property. To this end, subject to Liens permitted by Section 6.2 of the Credit
Agreement, Trustor grants to Beneficiary a security interest in such portion of the Trust Estate which constitutes personal property
and to the extent that the same may be subject to the California Commercial Code to secure the payment and performance of the
Obligations, and agrees that Beneficiary shall have all the rights and remedies of a secured party under the California Commercial
Code with respect to such property. Any notice of sale, disposition or other intended action by Beneficiary with respect to such
portion of the Trust Estate which constitutes personal property sent to Trustor at least ten (10) days prior to any action under
the California Commercial Code shall, except as otherwise provided by applicable law, constitute reasonable notice to Trustor.

 

1.5.        FINANCING
STATEMENTS. Trustor shall execute and deliver to Beneficiary such other documents, instruments
and further assurances, in each case, in form and substance reasonably satisfactory to Beneficiary (and the Lenders in accordance
with the Credit Agreement), as Beneficiary may, from time to time, reasonably consider necessary to create, perfect and preserve
Beneficiary’s security interest hereunder. Trustor hereby irrevocably authorizes Beneficiary to cause financing statements
(and amendments thereto and continuations thereof) and any such documents, instruments and assurances to be recorded and filed,
at such times and places as may be required or permitted by law to so create, perfect and preserve such security interest.

 

B.           OBLIGATIONS
SECURED

 

1.1.         FOR
THE PURPOSE OF SECURING, IN SUCH ORDER OF PRIORITY AS BENEFICIARY MAY DETERMINE
(collectively, the “Obligations”):

 

(i)           payment
and performance in full when due of the Secured Term Loans in the original principal amount of up to $60,000,000.00 and all other
“Obligations” (as defined in the Credit Agreement);

 

(ii)          payment
of all sums advanced by Beneficiary to protect the Trust Estate, with interest thereon at the lesser of (a) the rate otherwise
applicable to the outstanding Secured Term Loans under section 2.4 of the Credit Agreement plus four percent (4%), or (b) the
maximum interest rate permitted by applicable law (which rate of interest is hereinafter referred to as the “Agreed Rate”).

 

(iii)        payment
of all other sums, with interest thereon, which may hereafter be loaned to Trustor, its partners, or its successors or assigns,
by Beneficiary, or its successors or assigns, and all renewals, extensions, modifications, changes or amendments thereto, reciting
that they are secured by this Deed of Trust;

 

    	 	9	 

     

    

 

(iv)    
   performance of every obligation, covenant or agreement of Trustor contained herein and all
supplements, amendments and modifications thereto and all extensions and renewals thereof;

 

(v)           performance
of every obligation, covenant and agreement of Trustor contained in any Loan Document or any agreement now or hereafter executed
by Trustor which recites that the obligations thereunder are secured by this Deed of Trust; and

 

(vi)         compliance
with and performance of each and every material provision of any declaration of covenants, conditions and restrictions pertaining
to the Trust Estate or any portion thereof.

 

TO
PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR HEREBY COVENANTS AND AGREES AS FOLLOWS;

 

ARTICLE
II

COVENANTS AND AGREEMENTS OF TRUSTOR

 

2.1.         Authority.
Trustor represents and warrants that it is duly authorized and has full corporate power to execute this Deed of Trust
and enter into the transactions described herein.

 

2.2.         Payment
of Secured Obligations. Trustor shall pay when due the principal of and the interest on the indebtedness as stated
in the Credit Agreement; all charges, fees and other sums as provided in the Loan Documents; the principal of and interest on
any future advances secured by this Deed of Trust; and the principal of and interest on any other indebtedness secured by this
Deed of Trust.

 

2.3.        Fees
and Expenses. Trustor shall pay all filing, registration or recording fees and taxes and all expenses incident to the
execution, delivery and recording of this Deed of Trust, any mortgage instrument supplemental hereto, any security instrument
with respect to such portion of the Trust Estate, any California Commercial Code financing statements and continuation statements,
and any instrument of further assurance reasonably required by Trustee or by applicable law to be filed, registered or recorded
pursuant to this Deed of Trust.

 

2.4.        Maintenance,
Repair, Alterations. Trustor shall keep the Premises and Improvements
in good condition and repair; Trustor shall not remove, demolish or substantially alter any material portion of the Improvements
(other than in the ordinary course of constructing tenant improvements) except upon the prior written consent of the Beneficiary
or as may be required by any law, ordinance, rule, regulation or order of any governmental authority or political subdivision
having jurisdiction over the Trust Estate; Trustor shall complete promptly and in a good and workmanlike manner any Improvement
which may be now or hereafter constructed on the Premises and promptly restore in like manner any portion of the Improvements
which may be damaged or destroyed from any cause whatsoever, and pay when due all claims for labor performed and materials furnished
therefor; Trustor shall not initiate or acquiesce in any change of zoning or other land classification without Beneficiary’s
prior written consent; Trustor shall comply in all material respects with all laws, ordinances, regulations, covenants, conditions
and restrictions now or hereafter affecting the Trust Estate or any part thereof or requiring any alterations or improvements;
Trustor shall not commit or permit any waste or deterioration of the Trust Estate, and shall keep and maintain abutting grounds,
sidewalks, roads, parking and landscape areas in good and neat order and repair; and Trustor shall not commit, suffer or permit
any act to be done in or upon the Trust Estate in violation of any law, ordinance or regulation or of any matter of record affecting
the Trust Estate.

 

    	 	10	 

     

    

 

2.5.        Required
Insurance. Trustor shall procure and maintain or shall cause
to be procured and maintained continuously in effect until repayment and performance of all Obligations, policies of insurance
in form and amounts and issued by companies, associations or organizations satisfactory to the Lenders covering such casualties,
risks, perils, liabilities and other hazards required by Beneficiary, including, without limitation, any insurance required under
any of the Loan Documents. All original policies, or certificates thereof, and endorsements and renewals thereof shall be delivered
to and retained by Beneficiary unless the Lenders waive this requirement in writing. All policies shall expressly protect or recognize
Beneficiary’s interest as required by Beneficiary.

 

2.6.         General
Requirements. All policies to be maintained pursuant to Section
2.5 shall (a) be issued by companies with a Best’s Insurance Guide rating of at least A-VII and duly qualified
and authorized to do such business in the State of California and approved by the Lenders, (b) provide for severability of
interests, (c) provide that an act or omission of one of the named insureds shall not reduce or avoid coverage to the other
named insureds, (d) shall be subject to the approval of the Lenders as to the insuring companies, amount, deductibles, content
and forms of policies and expiration dates, and (e) provide that it cannot be cancelled or materially modified without ten
(10) days, prior written notice to the Lenders. Any policy to be maintained hereunder may be maintained under a so-called “blanket
policy” insuring other parties and/or other locations so long as the amount of insurance and type of insurance coverage
required to be provided hereunder is not thereby diminished, changed or adversely affected.

 

    	 	11	 

     

    

 

2.7.         Delivery
of Policies, Payment of Premiums.

 

(i)           At
the Lender’s option, all policies of Insurance shall either have attached thereto a lender’s loss payable endorsement
for the benefit of Beneficiary in form satisfactory to the Lenders or shall name Beneficiary as an additional insured. At least
(10) days prior to the expiration of each required policy, Trustor shall deliver to Beneficiary evidence reasonably satisfactory
to the Lenders of the renewal or replacement (and, if payment is due at the same time, evidence of the payment of premium) of
such policy continuing insurance in form as required by this Deed of Trust. At least (10) days prior to the date when any premium
on each such required policy is due, Trustor shall deliver to the Lenders evidence reasonably satisfactory to Beneficiary of the
payment of such premium. All such policies shall contain a provision that, notwithstanding any contrary agreement between Trustor
and the insurance company, such policies will not be cancelled, allowed to lapse without renewal, surrendered or materially amended,
which term shall include any reduction in the scope or limits of coverage, without at least ten (10) days prior written notice
to, and (other than a termination for non-payment) the consent of, the Lenders.

 

(ii)          In
the event Trustor fails to provide, maintain, keep in force or deliver to Beneficiary the policies of insurance required by this
Deed of Trust or by any Loan Document, Beneficiary may (but shall have no obligation to) procure such insurance or single-interest
insurance for such risks covering Beneficiary’s interest, and Trustor will pay all premiums thereon promptly upon demand
by Beneficiary, and until such payment is made by Trustor, the amount of all such premiums shall bear interest at the Agreed Rate.

 

(iii)         At
any time after a default under any Loan Document, then upon request by Beneficiary, Trustor shall deposit with Beneficiary in
monthly installments an amount equal to one-twelfth (1/12) of the estimated aggregate annual insurance premiums on all policies
of insurance to be maintained pursuant to this Deed of Trust. In such event Trustor further agrees to cause all bills, statements
or other documents relating to the foregoing insurance premiums to be sent or mailed directly to Beneficiary. Upon receipt of
such bills, statements or other documents evidencing that a premium for a required policy is then payable, and providing Trustor
has deposited sufficient funds with Beneficiary pursuant to this Section 2.7, Beneficiary shall promptly pay such amounts
as may be due thereunder out of the funds so deposited with Beneficiary. If at any time and for any reason the funds deposited
with Beneficiary are or will be insufficient to pay such amounts as may be then or subsequently due, Beneficiary shall notify
Trustor and Trustor shall immediately deposit an amount equal to such deficiency with Beneficiary. Notwithstanding the foregoing,
nothing contained herein shall cause Beneficiary to be deemed a trustee of said funds or to be obligated, to pay any amounts in
excess of the amount of funds deposited with Beneficiary pursuant to this Section 2.7, nor shall anything contained herein
modify the obligation of Trustor set forth in Section 2.5 hereof to maintain and keep such insurance in force at all times.
To the extent permitted by law, Beneficiary may commingle said reserve with its own funds and Trustor shall be entitled to no
interest thereon.

 

    	 	12	 

     

    

 

2.8.         Casualties;
Insurance Proceeds. Trustor shall give prompt written notice
to Beneficiary after the happening of any casualty to or in connection with the Trust Estate or any part thereof, whether or not
covered by insurance. In the event of such casualty, all proceeds of insurance shall be payable to Beneficiary, and Trustor hereby
authorizes and directs any affected insurance company to make payment of such proceeds directly to Beneficiary. If Trustor receives
any proceeds of insurance resulting from such casualty, Trustor shall promptly pay over such proceeds to Beneficiary. Beneficiary
may participate in any proceedings and join Trustor in adjusting, settling or compromising any loss or event of loss covered by
insurance, and any such adjustment settlement or compromise shall by subject to obtaining the consent of Beneficiary, which consent
shall not be unreasonably withheld. Subject to the next following sentence, in the event of any damage or destruction of the Premises
or the Improvements, Beneficiary shall apply all loss proceeds remaining after deduction of all expenses of collection and settlement
thereof, including, without limitation, attorneys’ and adjusters’ fees and expenses, to the restoration of the Improvements,
upon such conditions as Beneficiary shall reasonably determine (it being expressly agreed that Beneficiary may condition disbursement
of such proceeds for restoration upon proof that an amount equal to the sum which Beneficiary is requested to disburse has theretofore
been paid by Trustor, or is then due and payable for materials theretofore installed or work theretofore performed upon said property
and properly includable in the cost of restoration thereof), and any balance of such proceeds shall be paid over to Trustor. If,
notwithstanding the foregoing to the contrary,

 

(i)           any
Event of Default or event which with the passage of time or giving of notice or both would constitute an Event of Default (a “Potential
Default”) has occurred and, at the time of such damage or destruction or at the time of application of insurance proceeds,
is continuing, or

 

(ii)          said
loss proceeds are not in Beneficiary’s reasonable judgment, sufficient for restoration of said property, or

 

(iii)         the
damage or destruction will, in Beneficiary’s reasonable judgment, materially affect or require a change in the contemplated
use or operation of the Improvements or the Premises, then, unless Trustor cures such Potential Default or Trustor provides to
Beneficiary reasonable security by depositing with Beneficiary, within five (5) days of demand by Beneficiary, the additional
amounts necessary to accomplish restoration, or Beneficiary consents to the contemplated modification or change to the use and
operation of the Improvements or the Premises, whichever is applicable,

 

Beneficiary
shall (at the sole and absolute discretion of the Lenders) (a) to apply all or any portion of such proceeds to any of the
Obligations in such order as the Lenders may determine, or (b) to apply all or any portion of such proceeds to the restoration
of said property, subject to such conditions as the Lenders shall determine, or (c) to deliver all or any portion of such
proceeds to Trustor, subject to such conditions as the Lenders shall determine. Nothing herein contained shall be deemed to excuse
Trustor from repairing or maintaining the Trust Estate as provided in Section 2.4 hereof or restoring all damage or destruction
to the Trust Estate, regardless of whether or not there are insurance proceeds available to Trustor or whether any-such proceeds
are sufficient in amount, and the application, or release by Beneficiary of any insurance proceeds shall not cure or waive any
default or notice of default under this Deed of Trust or invalidate any act done pursuant to such notice, provided, however, that
so long as no Event of Default is then in existence and Beneficiary has applied all or a portion of such proceeds to any of the
Obligations (such amount which is applied, the “Applied Proceeds”), Trustor shall have no obligation to repair
or restore any damage or destruction to the Trust Estate in an amount equal to the Applied Proceeds, provided, however, further,
that Trustor shall not be excused from using any proceeds other than the Applied Proceeds plus any deductible under any applicable
insurance policy to repair or restore any damage or destruction, to the Trust Estate.

 

    	 	13	 

     

    

 

2.9.         Assignment
of Policies Upon Foreclosure. In the event of a foreclosure
pursuant to this Deed of Trust or other transfer of title or assignment of the Trust Estate in extinguishment, in whole or in
part, of the debt secured hereby, all right, title and interest of Trustor in and to all policies of insurance maintained pursuant
to Section 2.5 shall inure to the benefit of and pass to the successor in interest to Trustor or the purchaser or grantee
of the Trust Estate.

 

2.10.       Indemnification;
Subrogation; Waiver of Offset.

 

(i)            Trustor
agrees to indemnify, protect, hold harmless and defend Trustee and Beneficiary from and against any and all losses, liabilities,
suits, obligations, fines, damages, judgments, penalties, claims, charges, costs and expenses (including reasonable attorneys’
fees and disbursements) which may be imposed on, incurred or paid by or asserted against Trustee and/or Beneficiary by reason
or on account of, or in connection with, (a) any willful misconduct of Trustor, (b) the construction, reconstruction
or alteration of the Improvements or the Premises, (c) any negligence of Trustor or any negligence or willful misconduct
of any lessee or sublessee of the Premises or the Improvements, or any of their respective agents, contractors, subcontractors,
servants, employees, licensees or invitees, or (d) any accident, injury, death or damage to any Person or property occurring
in, on or about the Premises or the Improvements or any street, driveway, sidewalk, curb or passageway adjacent thereto, except
for the willful misconduct or gross negligence of Trustee or Beneficiary. Any amount payable to Trustee or Beneficiary under this
Section 2.10 shall be due and payable within ten (10) days after demand therefor and receipt by Trustor of a statement
from Trustee and/or Beneficiary setting forth in reasonable detail the amount claimed and the basis therefor. Trustor’s
obligations under this Section 2.10 shall survive the repayment or any other satisfaction of the Obligations and shall
not be affected by the absence or unavailability of insurance covering the same or by the failure or refusal of any insurance
carrier to perform any obligation on its part under any such policy of insurance. If any claim, action or proceeding is made or
brought against Trustee and/or Beneficiary which is subject to the indemnity set forth in this Section 2.10, Trustor shall
resist or defend against the same, if necessary in the name of Trustee and/or Beneficiary, by attorneys for Trustor’ s insurance
carrier (if the same is covered by insurance) approved by Trustee and/or Beneficiary (as applicable) or otherwise by attorneys
retained by Trustor and approved by Trustee and/or Beneficiary (as applicable). Notwithstanding the foregoing, Trustee and Beneficiary,
in their discretion, if either or both of them disapprove of the attorneys provided by Trustor or Trustor’s insurance carrier,
may engage their own attorneys to resist or defend, or assist therein, and, Trustor shall pay, or, on demand, shall reimburse
Trustee and Beneficiary for the payment of the reasonable fees and disbursements of such attorneys.

 

    	 	14	 

     

    

 

(ii)          Trustor
waives any and all right to claim or recover against Beneficiary, its officers, employees, agents and representatives, for loss
of or damage to Trustor, the Trust Estate, Trustor’s property or the property of others under Trustor’s control from
any cause insured against or required to be insured against by the provisions of this Deed of Trust,

 

(iii)         All
sums payable by Trustor pursuant to this Deed of Trust shall be paid without notice, demand, counterclaim, setoff, deduction or
defense and without abatement, suspension, deferment, diminution or reduction, and the obligations and liabilities of Trustor
hereunder shall in no way be released, discharged or otherwise affected (except as expressly provided herein) by reason of: (a) any
damage to or destruction of or any condemnation or similar taking of the Trust Estate or any part thereof; (b) any restriction
or prevention of or interference by any third party with any use of the Trust Estate or any part thereof; (c) any title defect
or encumbrance or any eviction from the Premises or the Improvements or any part thereof by title paramount or otherwise; (d) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to
Beneficiary or any guarantor of any secured obligation, or any action taken with respect to this Deed of Trust by any trustee
or receiver of Beneficiary, or by any court, in any such proceeding; (e) any claim which Trustor has or might have against
Beneficiary; (f) any default or failure on the part of Beneficiary to perform or comply with any of the terms hereof or of
any other agreement with Trustor; or (g) any other occurrence whatsoever, whether similar or dissimilar to the foregoing;
whether or not Trustor shall have notice or knowledge of any of the foregoing. Except as expressly provided herein, Trustor waives
all rights now or hereafter conferred by statute or otherwise to any abatement, suspension, deferment, diminution or reduction
of any sum secured hereby and payable by Trustor.

 

2.11.       Hazardous
Materials.

 

(i)           Environmental
Compliance. Trustor shall keep and maintain (and cause all tenants to keep and maintain) the Trust Estate, including, without
limitation, the groundwater on or under the Trust Estate, in compliance with, and shall not cause or permit the Premises to be
in violation of, or to require clean up under, any applicable present and future federal, state or local laws, statutes, rules,
policies, codes, licenses, permits, orders, approvals, plans, authorizations, ordinances or regulations, now or hereafter in effect,
relating to environmental conditions, industrial hygiene, public health and safety, or Hazardous Materials (as defined below)
including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42
U.S.C. Section 9601, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., the Hazardous
Materials Transportation Act 49 U.S.C. Section 1801, et seq., the Clean Water Act, 33 U.S.C, Section 1251, et seq.,
the Clean Air Act, 42 U.S.C. Section 7401, et seq., the Toxic Substances Control Act, 15 U.S.C. Sections 2601 through 2629,
the Safe Drinking Water Act, 42 U.S.C. Sections 300f through 300j, and any similar state and local laws and ordinances and the
regulations now or hereafter adopted, published and/or promulgated pursuant thereto (collectively, the “Hazardous Materials
Laws”).

 

    	 	15	 

     

    

 

(ii)          Restrictions
On Use. Trustor shall not (and shall take all reasonable efforts to assure that all of its tenants shall not) use, generate,
manufacture, treat, handle, refine, produce, process, store, discharge, release, dispose of or allow to exist on, under or about
the Trust Estate any flammable explosives, radioactive materials, asbestos, organic compounds known as polychlorinated biphenyls,
chemicals known to cause cancer or reproductive toxicity, pollutants, materials containing gasoline, diesel fuel or other petroleum
hydrocarbons, contaminants, corrosive, infectious or carcinogenic materials, hazardous wastes, toxic substances or related materials,
including, without limitation, any substances defined as or included in the definitions of “hazardous substances,”
“hazardous wastes,” “hazardous materials” or “toxic substances” under the Hazardous Materials
Laws (collectively, “Hazardous Materials”), except in compliance with applicable Hazardous Materials Laws and
in a manner that would not reasonably be expected to require cleanup under any Hazardous Materials Laws. Furthermore, Trustor
shall not allow to exist on, under or about the Trust Estate, any underground storage tanks or underground deposits except with
respect to the storage of water and then in compliance with all applicable Hazardous Materials Laws and in accordance with the
terms of the Credit Agreement.

 

(iii)         Access.
Beneficiary shall be entitled, at any reasonable time, to enter upon and inspect the Trust Estate and take any other actions the
Lenders reasonably deem necessary to confirm Trustor’s compliance with the obligations and agreements set forth in this
Section 2.11.

 

(iv)          Notice
to Beneficiary. Trustor shall immediately advise Beneficiary in writing of (a) any and all enforcement, clean up, removal,
mitigation or other governmental or regulatory actions instituted, contemplated or threatened pursuant to any Hazardous Materials
Laws affecting the Premises; (b) all actual or threatened investigation, inquiry, lawsuit, citation, directive, summons,
proceeding, complaint, notice, order, writ, injunction, claims, liens, encumbrances, penalties or fines made or threatened by
any third party against Trustor or the Trust Estate relating to damage, contribution, cost recovery, compensation, loss or injury
resulting from any Hazardous Materials (the matters set forth in clauses (a) and (b) above are hereinafter referred to as “Hazardous
Materials Claims”); (c) any notice or other communication concerning any actual, alleged, suspected or threatened
violation of Hazardous Materials Laws, or liability of Trustor for any losses or damages related thereto in connection with any
portion of the Premises or Improvements or past or present activities of any Person thereon, including, without limitation, any
notice or other communication concerning any Hazardous Materials Claim; (d) Trustor’s discovery of any occurrence or
condition on any real property adjoining or in the vicinity of the Premises that could cause the Trust Estate or any part thereof
to be classified as “border-zone property” under the provisions of California Health and Safety Code Section 25220,
et seq., or any regulation adopted in accordance therewith or which may support a similar claim or cause of action under
the Hazardous Materials Laws; and (e) Trustor’s discovery of any occurrence or condition on the Trust Estate or any
real property adjoining or in the vicinity of the Premises which could subject the Trustor or the Trust Estate to any restrictions
on ownership, occupancy, transferability or use of the Trust Estate under any Hazardous Materials laws. Beneficiary shall have
the right to join and participate in, as a party if it so elects, any settlements, remedial actions, legal proceedings or actions
initiated in connection with any Hazardous Materials Claims and to have its reasonable attorneys’ fees in connection therewith
paid by Trustor.

 

    	 	16	 

     

    

 

(v)       Liens.
Trustor shall not create or suffer to exist with respect to the Premises or permit any of its agents to create or suffer to exist
thereon, any lien, security interest or other charges or encumbrance imposed pursuant to Section 107(f) of the Superfund Amendments
and Reauthorization Act of 1986 (42 U.S.C. Section 9607(f)) or any similar state statute or local ordinance.

 

2.12.        Taxes
and Impositions.

 

(i)            Trustor
shall pay, or cause to be paid prior to delinquency, all real property taxes and assessments, general and special, and all other
taxes and assessments of any kind or nature whatsoever, including, without limitation, non-governmental levies or assessments
such as maintenance charges, levies or charges resulting from covenants, conditions and restrictions affecting the Trust Estate,
which are assessed or imposed upon the Trust Estate, or become due and payable, and which create, may create or appear to create
a lien upon the Trust Estate, or any part thereof, or upon any Person, property, equipment or other facility used in the operation
or maintenance thereof (all the above collectively hereinafter referred to as “Impositions”); provided, however,
that if, by law any such Imposition is payable, or may at the option of the taxpayer be paid, in installments, Trustor may pay
the same or cause it to be paid, together with any accrued interest on the unpaid balance of such Imposition, in installments
as the same become due and before any fine, penalty, interest or cost may be added thereto for the nonpayment of any such installment
and interest.

 

(ii)          If
at any time after the date hereof there shall be assessed or imposed (a) a tax or assessment on the Trust Estate in lieu
of or in addition to the Impositions payable by Trustor pursuant to subsection 2.12(i), or (b) a license fee, tax
or assessment imposed on Beneficiary and measured by or based in whole or in part upon the amount of the outstanding Obligations
secured hereby, then all such taxes, assessments or fees shall be deemed to be included within the term “Impositions”
as defined in subsection 2.1.2(i) and Trustor shall pay and discharge the same as herein provided with respect to the payment
of Impositions. If Trustor fails to pay such Impositions prior to delinquency or if Trustor is prohibited by law from paying such
Impositions, Beneficiary may at its option declare all Obligations secured hereby together with all accrued interest thereon,
immediately due and payable. Anything to the contrary herein notwithstanding, Trustor shall have no obligation to pay any franchise,
estate, inheritance, income, excess profits or similar tax levied on Beneficiary or on interest or other income received by Beneficiary
comprising a portion of or in connection with, the Obligations secured hereby.

 

    	 	17	 

     

    

 

(iii)         Subject
to the provisions of subsection 2.12(iv) and upon request by Beneficiary, Trustor shall deliver to Beneficiary prior to
the date upon which any such Imposition is due and payable by Trustor, evidence of payment of such Imposition and within thirty
(30) days after the date upon which any such Imposition is due and payable by Trustor, official receipts of the appropriate taxing
authority, or other proof satisfactory to the Lenders, evidencing the payment thereof.

 

(iv)         Trustor
shall have the right before any delinquency occurs to contest or object to the amount or validity of any such Imposition by appropriate
proceedings, but this shall not be deemed or construed in any way as relieving, modifying or extending Trustor’s covenant
to pay any such Imposition at the time and in the manner provided in this Section 2.12, unless Trustor has given prior
written notice to Beneficiary of Trustor’s intent to so contest or object to an Imposition, and unless, at Beneficiary’s
sole option, (a) Trustor shall demonstrate to the Lender’s satisfaction that the proceedings to be initiated by Trustor
shall conclusively operate to prevent the sale of the Trust Estate, or any part thereof, to satisfy such Imposition prior to final
determination of such proceedings; or (b) Trustor shall furnish a good and sufficient bond or surety as requested by and
satisfactory to the Lenders; or (c) Trustor shall demonstrate to the Lender’s satisfaction that Trustor has provided
a good and sufficient undertaking as may be required or permitted by law to accomplish a stay of any such sale.

 

(v)           At
any time after an Event of Default under any Loan Document, then upon request by Beneficiary, Trustor shall pay to Beneficiary
an initial cash reserve in an amount adequate to pay all Impositions for the ensuing tax fiscal year and shall thereafter continue
to deposit with Beneficiary, in monthly installments, an amount equal to one-twelfth (1/12) of the sum of the annual Impositions
reasonably estimated by Beneficiary, for the purpose of paying the installment of Impositions next due on the Trust Estate (funds
deposited for this purpose shall hereinafter be referred to as “Impounds”). In-such event Trustor further agrees
to cause all bills, statements or other documents relating to Impositions to be sent or mailed directly to Beneficiary. Upon receipt
of such bills, statements or other documents, and providing Trustor has deposited sufficient Impounds with Beneficiary pursuant
to this subsection 2.12(v), Beneficiary shall promptly pay such amounts as may be due thereunder out of the Impounds so
deposited with Beneficiary. If at any time and for any reason the Impounds deposited with Beneficiary are or will be insufficient
to pay such amounts as may then or subsequently be due, Beneficiary may notify Trustor and upon such notice Trustor shall deposit
immediately an amount equal to such deficiency with Beneficiary. Notwithstanding the foregoing, nothing contained herein shall
cause Beneficiary to be deemed a trustee of said funds or to be obligated to pay any amounts in excess of the amount of funds
deposited with Beneficiary pursuant to this subsection 2.12(v). To the extent permitted by law, Beneficiary may commingle
Impounds with its own funds and shall not be obligated to pay or allow any interest on any Impounds held by Beneficiary pending
disbursement or application hereunder. Beneficiary may reserve for future payment of Impositions such portion of the Impounds
as Beneficiary may in its absolute discretion deem proper. Upon an Event of Default, Beneficiary may apply the balance of the
Impounds upon any indebtedness or obligation secured hereby in such order as Beneficiary may determine, notwithstanding that said
indebtedness or the performance of said obligation may not yet be due according to the terms thereof. Should Trustor fail to deposit
with Beneficiary (exclusive of that portion of said payments which has been applied by Beneficiary upon any indebtedness or obligation
secured hereby) sums sufficient to fully pay such Impositions at least fifteen (15) days before delinquency thereof, Beneficiary
may, at Beneficiary’s election, but without any obligation so to do, advance any amounts required to make up the deficiency,
which advances, if any, shall be secured hereby and shall be repayable to Beneficiary as herein elsewhere provided, or at the
option of Beneficiary the latter may, without making any advance whatever, apply any Impounds held by it upon any indebtedness
or obligation secured hereby in such order as the Lenders may determine, notwithstanding that said indebtedness or the performance
of said obligation may not yet be due according to the terms thereof. Should any Event of Default occur, Beneficiary may at any
time at Beneficiary’s option, apply any sums or amounts in its hands received pursuant to subsections 2.7(iii) and
2.12(v) hereof, or as rents or income of the Trust Estate or otherwise, to any indebtedness or obligation of the Trustor
secured hereby in such manner and order as Beneficiary may elect, notwithstanding said indebtedness or the performance of said
obligation may not yet be due according to the terms thereof. The receipt, use or application of any such Impounds paid by Trustor
to Beneficiary hereunder shall not be construed to affect the maturity of any indebtedness secured by this Deed of Trust or any
of the rights or powers of Beneficiary or Trustee under the terms of the Loan Documents or any of the obligations of Trustor or
any guarantor under the Loan Documents.

 

(vi)          Trustor
shall not suffer, permit or initiate the joint assessment of any real and personal property which may constitute all or a portion
of the Trust Estate or suffer, permit or initiate any other procedure whereby the lien of the real property taxes and the lien
of the personal property taxes shall be assessed, levied or charged to the Trust Estate as single lien.

 

(vii)       
Trustor shall cause to be furnished to Beneficiary a tax reporting service covering the Trust Estate of the type, duration
and with a company satisfactory to the Lenders.

 

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2.13.      Mortgage
Tax. In the event of the passage, after the date of this Deed
of Trust, of any law deducting from the value of the Trust Estate for the purpose of taxation any lien thereon or changing in
any way the laws now in force for the taxation of deeds of trust or debts secured by deeds of trust, or the manner of the collection
of any such taxes, so as to affect this Deed of Trust, or imposing payment of the whole or any portion of any taxes, assessments
or other similar charges against the Trust Estate upon Beneficiary, the indebtedness secured hereby shall become due and payable
at the option of the Lenders within sixty (60) days after delivery of written notice to Trustor; provided, however, that such
election by the Lenders shall be ineffective if such law either (a) shall not impose a tax upon the Lenders nor increase
any tax now payable by the Lenders, or (b) shall impose a tax upon the Lenders or increase any tax now payable by the Lenders
and prior to the due date: (A) Trustor is permitted by law and can become legally obligated to pay such tax or the increased
portion thereof (in addition to all interest, additional interest and other charges payable hereunder and under the Loan Documents
without exceeding the applicable limits imposed by the usury laws of the State of California); (B) Trustor does pay such
tax or increased portion; and (C) Trustor agrees with the Lenders and the Beneficiary in writing to pay, or reimburse the
Lenders and the Beneficiary for the payment of, any such tax or increased portion thereof when thereafter levied or assessed against
the Trust Estate or any portion thereof. The obligations of Trustor under such agreement shall be secured hereby.

 

2.14.       Utilities.
Trustor shall pay when due all utility charges which are Incurred
by Trustor for the benefit of the Trust Estate or which may become a charge or lien against the Trust Estate for gas, electricity,
water, sewer or any other utility service furnished to the Trust Estate and all other assessments or charges of a similar nature,
whether public or private, affecting or related to the Trust Estate or any portion thereof, whether or not such taxes, assessments
or charges are or may become liens thereon.

 

2.15.       Actions
Affecting Trust Estate. Trustor shall appear in and contest
any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and shall
pay all costs and expenses, including the cost of evidence of title and reasonable attorneys’ fees, in any such action or
proceeding in which Beneficiary or Trustee may appear.

 

2.16.       Actions
By Trustee or Beneficiary to Preserve Trust Estate. If Trustor
fails to make any payment or to do any act as and in the manner provided in any of the Loan Documents, Beneficiary and/or Trustee,
each in its own discretion, without duty or obligation so to do, without releasing Trustor from any obligation, and without notice
to or demand upon Trustor, may make or do the same in such manner and to such extent as either may deem necessary to protect the
security hereof. In connection therewith (without limiting their general powers, whether conferred herein, in the other Loan Documents,
or by law), Beneficiary and Trustee shall have, and are hereby given, the right, but not the obligation, (a) to enter upon
and take possession of the Trust Estate; (b) to make additions, alterations, repairs and improvements to the Trust Estate
which they or either of them may consider necessary or proper to keep the Trust Estate in good condition and repair; (c) to
appear and participate in any action or proceeding affecting or which may affect the security hereof or the rights or powers of
Beneficiary or Trustee; (d) to pay, purchase, contest or compromise any encumbrance, claim, charge, lien or debt which in
the judgment of either may affect or appears to affect the security of this Deed of Trust or be prior or superior hereto; and
(e) in exercising such powers, to pay-necessary expenses, including reasonable attorneys’ fees and costs or other necessary
or desirable consultants. Trustor shall, immediately upon demand therefor by Beneficiary and Trustee or either of them, pay to
Beneficiary and Trustee an amount equal to all respective costs and expenses incurred by such party in connection with the exercise
of the foregoing rights, including, without limitation, costs of evidence of title, court costs, appraisals, surveys and receiver’s,
trustee’s and reasonable attorneys’ fees, together with interest thereon from the date of such expenditures at the
maximum rate permitted by applicable law.

 

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2.17.      Transfer
of Trust Estate by Trustor. Except as otherwise permitted by
the Credit Agreement, Trustor shall not transfer all or any portion of the Trust Estate without obtaining the Lenders’s
prior written consent, which consent may be withheld in the Lender’s sole and absolute discretion. In order to induce Beneficiary
to make the Secured Term Loans secured hereby, Trustor agrees that, in the event of any transfer of the Trust Estate without the
prior written consent of the Lenders, the Lenders shall have the absolute right, at their option, without prior demand or notice,
to declare all sums secured hereby immediately due and payable. Consent to one such transaction shall not be deemed to be a waiver
of any right to require consent to future or successive transactions. The Lenders may grant or deny such consent in its sole discretion
and, if consent should be given, any such transfer shall be subject to this Deed of Trust, and any such transferee shall assume
all obligations hereunder and agree to be bound by all provisions contained herein. Such assumption shall not, however, release
Trustor from any liability thereunder without the prior written consent of the Lenders, As used herein, “transfer”
includes the sale, agreement to sell, transfer, conveyance or hypothecation of the Trust Estate, or any portion thereof or interest
therein, whether voluntary, involuntary, by operation of law or otherwise, the execution of any installment land sale contract
or similar instrument affecting all or a portion of the Trust Estate, or the lease of all or substantially all of the Trust Estate.

 

2.18.       Full
Performance Required; Survival of Warranties. All representations,
warranties and covenants of Trustor contained in any Loan Documents or incorporated by reference herein, shall survive the execution
and delivery of this Deed of Trust and shall remain continuing obligations, warranties and representations of Trustor so long
as any portion of the Obligations, secured by this Deed of Trust remains outstanding.

 

2.19.       Preservation
of Trust Estate; Further Assurances. Trustor shall do any and
all acts which, from the character or use of the Trust Estate, may be reasonably necessary to protect and preserve the lien, the
priority of the lien and the security of Beneficiary granted herein, the specific enumerations herein not excluding the general.
Without limiting the foregoing, Trustor agrees to execute such documents and take such action as the Lenders shall determine to
be necessary or desirable to further evidence, perfect or continue the perfection and/or the priority of the lien and security
interest granted by Trustor herein.

 

    	 	20	 

     

    

 

2.20.       Compliance
With Premises Restrictions. Trustor will faithfully perform
each and every covenant to be performed by Trustor under any lien or encumbrance upon or affecting the Trust Estate, including,
without limiting the generality hereof, mortgages, deeds of trust, leases, declaration of covenants, easements, conditions and/or
restrictions and other agreements which affect the Premises, in law or in equity and never permit the same to go into default.
A default or delinquency under any material lien or encumbrance (as determined by the Lenders in their sole and absolute discretion)
which is superior to this Deed of Trust (“Superior Lien”) shall automatically and immediately constitute a
default under this Deed of Trust. The Lenders are hereby authorized to advance (Third party Beneficiaries have no authority to
advance funds), at their option, all sums necessary to keep any Superior Lien in good standing, and all sums so advanced, together
with interest thereon at the Agreed Rate permitted by applicable law, shall be repayable to the Lenders as in the case of other
advances made by the Lenders hereunder. Trustor agrees that it shall not make any agreement with the holder of any Superior Lien
which shall in any way modify, change, alter or extend any of the terms or conditions of such Superior Lien, nor shall Trustor
request or accept any future advances under such Superior Lien, without the express written consent of the Lenders.

 

2.21.       Eminent
Domain. In the event that any proceeding or action be commenced
for the taking of the Trust Estate or any part thereof or interest therein for public or quasi-public use under the power of eminent
domain, condemnation or otherwise, or if the same be taken or damaged by reason of any public improvement or condemnation proceeding,
or in any other manner, or should Trustor receive any notice or other information regarding such proceeding, action, taking or
damage, Trustor shall give prompt written notice thereof to Beneficiary. The Lenders shall be entitled at its option, without
regard to the adequacy of its security, to commence, appear in and prosecute in its own name any such action or proceeding. The
Lenders shall also be entitled to make any compromise or settlement in connection with such taking or damage. All compensation,
awards, damages, rights of action and proceeds awarded to Trustor by reason of any such taking or damage (the “Condemnation
Proceeds”) are hereby absolutely and unconditionally assigned to Beneficiary and Trustor agrees to execute such further
assignments of the Condemnation Proceeds as the Lenders or Trustee may require. Subject to the next following sentence, after
deducting from the Condemnation Proceeds all costs and expenses (regardless of the particular nature thereof and whether incurred
with or without suit), including reasonable attorneys’ fees, incurred by Beneficiary in connection with any such action
or proceeding, Beneficiary shall apply all such Condemnation Proceeds to the restoration of the Improvements, upon such conditions
as the Lenders shall reasonably determine (including, without limitation, those described in Section 2.8 above) and any
balance of such proceeds shall be paid over to Trustor. If, notwithstanding the foregoing to the contrary,

 

(i)           any
Event of Default or Potential Default has occurred and, at the time of such taking or damage, or at the time of application of
the Condemnation Proceeds, is continuing, or

 

(ii)          said
loan proceeds are not, in the Lenders’s reasonable judgment, sufficient for restoration of said property, or

 

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(iii)         the
damage or destruction will, in the Lender’ s reasonable judgment, materially affect or require a change in the contemplated
use or operation of the Improvements, then, unless Trustor cures such Potential Default, or Trustor provides to Beneficiary reasonable
security by depositing with Beneficiary, within five (5) days of demand by Beneficiary, the additional amounts necessary to accomplish
restoration, or the Lender consents to the contemplated modification or change to the use and operation of the Improvements, whichever
is applicable,

 

Beneficiary
shall have the option, acting at the direction of the Lenders, (a) to apply all or any portion of such proceeds to any of
the Obligations in such order as the Lenders may determine, or (b) to apply all or any portion of such proceeds to the restoration
of said property, subject to such conditions as the Lenders shall determine, or (c) to deliver all or any portion of such
proceeds to the Lenders, subject to such conditions as the Lenders shall determine. Application or release of the Condemnation
Proceeds as provided herein shall not cure or waive any Event of Default or Potential Default or notice of default hereunder or
under any other Loan Document or invalidate any act done pursuant to such notice.

 

2.22.       Additional
Security. All right, title and interest of Trustor in and to all extensions, improvements, renewals,
substitutes and replacements of the Trust Estate, and all additions and appurtenances thereto, hereafter acquired by or
released to Trustor or constructed, assembled or placed by Trustor on the Premises and all conversions of the security
constituted thereby, immediately upon such acquisition, release, construction, assembling, placement or conversion, as the
case may be, and in each such case, without any further deed of trust, conveyance, assignment or other act by Trustor, shall
become subject to the lien of this Deed of Trust, as fully and completely, and with the same effect, as though now owned by
Trustor. No other security now existing, or hereafter taken, to secure the obligations secured hereby shall be impaired or
affected by the execution of this Deed of Trust, and all additional security shall be taken, considered and held as
cumulative. The taking of additional security, execution of partial releases of the security, or any extension of the time of
payment of the indebtedness shall not diminish the force, effect or lien of this Deed of Trust and shall not affect or impair
the liability at any time holds additional security for any of the obligations secured hereby, it may enforce the sale
thereof or otherwise realize upon the same, at its option, either before, concurrently, or after a sale is made
hereunder.

 

2.23.      Assignment
of Contracts. In addition to any other grant, transfer or assignment
effectuated hereby, without in any manner limiting the generality of the grants given above, Trustor shall assign to Beneficiary,
as security for the indebtedness secured hereby, Trustor’s interest in all agreements, contracts, leases, licenses and permits
affecting the Premises and Improvements in any manner whatsoever, such assignments to be made, if so requested by the Lenders,
by instruments in form satisfactory to the Lenders. No such assignment shall be construed as a consent by Beneficiary to any agreement,
contract, license or permit so assigned, or to impose upon Beneficiary any obligations with respect thereto.

 

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2.24.      Appointment
of Successor Trustee. Beneficiary may, from time to time, by
a written instrument executed and acknowledged by Beneficiary, mailed to Trustor and recorded in the county in which the Trust
Estate is located and by otherwise complying with the provisions of applicable law, at any time and from time to time, substitute
a successor or successors to any Trustee named herein or acting hereunder. The power of appointment of a successor Trustee may
be exercised as often as and whenever Beneficiary may choose, and the exercise of the power of appointment, no matter how often,
shall not be an exhaustion thereof. Said successor shall, without conveyance from the Trustee predecessor, succeed to all title,
estate, rights, powers and duties of said predecessor. Whenever in this Deed of Trust reference is made to Trustee, it shall be
construed to mean each Person appointed as Trustee for the time being, whether original or successor in trust.

 

2.25.       Trustee’s
Powers. At any time, or from time to time, without liability
therefor and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and the Credit Agreement
secured hereby and without affecting the personal liability of any Person for payment of the indebtedness secured hereby or the
effect of this Deed of Trust upon the remainder of said Trust Estate, Trustee may (a) reconvey any part of said Trust Estate,
(b) consent in writing to the making of any map or plat thereof, (c) join in granting any easement thereon, or (d) join
in any extension agreement or any agreement subordinating the lien or charge hereof.

 

2.26.      Beneficiary’s
Powers. Without affecting the liability of any other Person
liable for the payment of any obligation herein mentioned, and without affecting the lien or charge of this Deed of Trust upon
any portion of the Trust Estate not then or theretofore released as security for the full amount of all unpaid obligations, Beneficiary
(acting at the direction of the Lenders in accordance with the Credit Agreement) may, from time to time and without notice (a) release
any Person so liable, (b) extend the maturity or alter any of the terms of any such obligation, (c) grant other indulgences,
(d) release or reconvey, or cause to be released or reconveyed at any time at Beneficiary’s option any parcel, portion
or all of the Trust Estate, (e) take or release any other or additional security for any obligation herein mentioned, or
(f) make compositions or other arrangements with debtors in relation thereto.

 

2.27.      Leases.

 

(i)           Trustor
shall provide Beneficiary with true, correct and complete copies of all material Leases, together with such other information
relating to the Leases, as the Lenders shall reasonably request. Except as otherwise permitted under the Credit Agreement, Trustor
shall not accept prepayments of rent for any period in excess of three (3) months and shall perform all covenants of the lessor
under all Leases affecting the Trust Estate. Leases, as used herein, includes any extensions or renewals thereof and any amendments
thereto. Trustor shall perform and carry out all of the provisions of the Leases to be performed by Trustor and shall appear in
and defend any action in which the validity of any Lease is at issue and commence and maintain any action or proceeding necessary
to establish or maintain the validity of any lease and to enforce the provisions thereof,

 

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(ii)          If
a leasehold estate constitutes a portion of the Trust Estate, then, except as otherwise permitted under the Credit Agreement,
Trustor agrees not to amend, change, terminate or modify such leasehold estate or any interest therein without the prior written
consent of the Lenders. Consent to one amendment, change, agreement or modification shall not be deemed to be a waiver of the
right to require consent to other, future or successive amendments, changes, agreements or modifications. Trustor agrees to perform
all obligations and agreements under said leasehold and shall not take any action or omit to take any action which would affect
or permit the termination of said leasehold. Trustor agrees to promptly notify Beneficiary’ in writing with respect to any
default or alleged default by any party thereto and to deliver to Beneficiary copies of all notices, demands, complaints or other
communications received or given by Trustor with respect to any such default or alleged default. Beneficiary shall have the option
to cure any such default and to perform any or all of Trustor’s obligations thereunder. All sums expended by Beneficiary
in curing any such default shall be secured hereby and shall be immediately due and payable without demand or notice and shall
bear interest from date of expenditure at Agreed Rate.

 

(iii)        Subject
to the Credit Agreement and except as otherwise permitted under the Credit Agreement, each Lease of any portion of the Trust Estate
shall be absolutely subordinate to the lien of this Deed of Trust, but shall contain a provision satisfactory to the Lenders,
and in any event, each tenant thereunder, by virtue of executing a Lease covering the Premises or any portion thereof, hereby
agrees, that in the event of the exercise of the private power of sale or a judicial foreclosure hereunder, such Lease, at the
option of the purchaser at such sale, shall not be terminated and the tenant thereunder shall attorn to such purchaser and, if
requested to do so, shall enter into a new Lease for the balance of the term of such Lease then remaining upon the same terms
and conditions. Each such Lease shall, at the request of the Lenders, be assigned to Beneficiary upon the Lender’s approved
form, and each, such assignment shall be recorded and acknowledged by the tenant thereunder. Concurrently with the execution of
any and all Leases executed after the date hereof, Trustor shall cause the tenants thereunder to execute a subordination, non-disturbance
and attornment agreement in favor of Beneficiary in form and substance satisfactory to the Lenders and immediately thereafter
deliver such agreement to Beneficiary.

 

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2.28.       Reimbursement;
Attorneys’ Fees. Trustor shall pay, within five (5) business
days of receiving demand for payment, all sums expended or expenses incurred by Trustee and/or Beneficiary in acting under any
of the terms of this Deed of Trust, including, without limitation, any fees and expenses (including reasonable attorneys’
fees) incurred in connection with any reconveyance of the Trust Estate or any portion thereof, or to compel payment of the obligations
or any portion of the indebtedness evidenced by the Credit Agreement or Loan Documents or in connection with any default thereunder.
Without limiting the generality of the foregoing, upon election of either Beneficiary or Trustee so to do, employment of an attorney
is authorized, and payment by Trustor of all reasonable attorneys’ fees, costs and expenses in connection with any action
and/or actions (including the cost of evidence or search of title) which may be brought for the foreclosure of this Deed of Trust,
and/or for possession of the Trust Estate covered hereby, and/or for the appointment of a receiver, and/or for the enforcement
of any covenant or right in this Deed of Trust contained as hereinafter provided, shall be secured hereby. As used herein, the
terms “attorneys’ fees” or “attorneys’ fees and costs” shall mean the fees and expenses of
counsel to the parties hereto, which may include printing, photostating, duplicating and other expenses, air freight charges,
and fees billed for law clerks, paralegals, librarians and others not admitted to the bar but performing services under the supervision
of an attorney. The terms “attorneys’ fees” or “attorneys’ fees and costs” shall also include,
without limitation, all such fees and expenses incurred with respect to appeals, arbitrations, judicial or nonjudicial foreclosure
and bankruptcy proceedings, and whether or not any action or proceeding is brought with respect to the matter for which such fees
and expenses were incurred.

 

2.29.       Title.
Trustor has good and marketable title to the Trust Estate subject
to no lien, charge or encumbrance except as permitted by the Beneficiary in accordance with the terms of the Credit Agreement.
This Deed of Trust is and will remain a valid and enforceable lien on the Trust Estate subject only to the exceptions referred
to above. Trustor will preserve its interest in and title to the Trust Estate and will forever warrant and defend the same to
Trustee and Beneficiary and will forever warrant and defend the validity and priority of the lien hereof against the claims of
all persons and parties whomsoever. Trustor shall promptly and completely observe, perform, and discharge each and every obligation,
covenant and agreement affecting the Trust Estate whether the same is prior and superior or subject and subordinate hereto including,
if the security hereunder is or will be a condominium, community apartment, stock cooperative, or part of a planned development,
each and every provision under any declaration of covenants, conditions and restrictions pertaining thereto.

 

    	 	25	 

     

    

 

ARTICLE
III

ASSIGNMENT OF RENTS, ISSUES AND PROFITS

 

3.1.         Assignment
to Beneficiary; License. Trustor hereby absolutely and irrevocably
grants, sells, assigns, transfers and sets over to Beneficiary all of the Rents derived from any Lease, now existing or hereafter
created and affecting all or any portion of the Trust Estate or the use or occupancy thereof, together with (i) all of Trustor’s
rights, titles and interests in the Leases including all modifications, amendments, extensions and renewals of the Leases (whether
heretofore or hereafter entered into) and all rights and privileges incident thereto; and (ii) all security deposits, guaranties
and other security now or hereafter held by Trustor as security for the performance of the obligations of the tenants under the
Leases. This assignment of rents is intended by Trustor and Beneficiary to create and shall be construed to create an absolute
assignment to Beneficiary of all of Trustor’s rights, titles and interests in the Rents and in the Leases and shall not
be deemed an assignment for additional security for the Obligations. Trustor irrevocably appoints Beneficiary its true and lawful
attorney, at the option of Beneficiary at any time, to demand, receive and enforce payment, to give receipts, releases and satisfactions,
and to sue, either in the name of the of Trustor or in the name Beneficiary, for all such income, rents, issues, deposits, profits
and proceeds and apply the same to the indebtedness secured hereby. Trustor and Beneficiary further agree that, during the term
of this assignment the Rents shall not constitute property of Trustor (or of any estate of Trustor) within the meaning of 11 U.S.C.
§541, as amended from time to time. By its acceptance of this assignment and so long as an Event of Default shall not have
occurred and be continuing under the Loan Documents, Beneficiary hereby grants to Trustor a revocable license to enforce the Leases,
to collect the Rents, to apply the Rents to the payment of the costs and expenses incurred in connection with the development,
construction, operation, maintenance, repair and restoration of the Trust Estate and to any indebtedness secured thereby and to
distribute the balance, if any, to Trustor as may be permitted by the terms of the Loan Documents.

 

3.1.         Revocation
of License. Upon the occurrence of an Event of Default and at
any time thereafter during the continuance thereof, Beneficiary shall have the right to revoke the license granted to Trustor
hereby by giving written notice of such revocation to Trustor. Upon such revocation, Trustor shall promptly deliver to Beneficiary
the original copies of all Leases and all Rents then held by Trustor and Beneficiary shall thereafter be entitled to enforce the
Leases, to collect and receive, without deduction or offset, all Rents payable thereunder, including but not limited to, all Rests
which were accrued and unpaid as of the date of such revocation and to apply such Rents as provided in the Loan Documents. Trustor
hereby irrevocably constitutes and appoints Beneficiary its true and lawful attorney-in-fact to enforce, in Trustor’s name
or in Beneficiary’s name or otherwise, all rights of Trustor in the instruments, including without limitation checks and
money orders, tendered as payments of Rents and to do any and all things necessary and proper to carry out the purposes hereof

 

3.2.         Election
of Remedies. Upon the occurrence of an Event of Default hereunder,
Beneficiary may, at its option, exercise (or cause the Trustee to exercise) its rights hereunder. If Beneficiary elects to exercise
its rights hereunder, Beneficiary or Trustee may, at any time without notice, either in person, by agent or by a receiver appointed
by a court, enter upon and take possession of all or any portion of the Trust Estate, enforce all Leases, collect all Rents, including
those past due and unpaid, and apply the same to the costs and expenses of operation and collection, including, without limitation,
reasonable attorneys’ fees, and to any indebtedness then secured hereby, in such order as Beneficiary may determine. In
connection with the exercise by Beneficiary of its rights hereunder, Trustor agrees that Beneficiary shall have the right to specifically
enforce such rights and to obtain the appointment of a receiver in accordance with the provisions of Section 4.2 hereof
without regard to the value of the Trust Estate or the adequacy of any security for the Obligations then secured hereby. The collection
of such Rents, or the entering upon and taking possession of the Trust Estate, or the application thereof as aforesaid, shall
not cure or waive any default or notice of default hereunder or invalidate any act done in response to such default or pursuant
to such notice of default.

 

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ARTICLE
IV

EVENTS OF DEFAULT AND REMEDIES

 

4.1.         Events
of Default. The occurrence of any one or more of the following
shall constitute an “Event of Default” under this Deed of Trust:

 

(a)       failure
to pay any monies, obligations or other consideration when due under the Credit Agreement, this Deed of Trust or any other Loan
Document, subject to any applicable notice and cure period;

 

(b)       except
with respect to the payment of monies or the specific items set forth in this Section 4.1, failure to comply with, perform
or observe any of the covenants made by Trustor in this Deed of Trust and such failure continues for more than thirty (30) days
following Trustor’s receipt of notice of default (provided, however, if the breach is not reasonably capable of cure within
such thirty (30) day period, Trustor shall not be in default of this Deed of Trust if Trustor (i) promptly commences to cure
the breach within the thirty (30) day period, (ii) diligently and in good faith continues to cure the breach, and (3) cures
such breach within ninety (90) days of the notice of default);

 

(c)       failure
to comply with, perform or observe any obligation or condition of any of the other Loan Documents within the time periods specified
therein and the expiration of any applicable notice and cure period set forth thereunder, if any;

 

(d)       any
representation, warranty, statement, certificate, schedule or report furnished by Trustor under or in connection with the Loan
Documents, whether given hereunder or any other Loan Document or otherwise, shall prove to have been inaccurate in any material
respect on or as of the date deemed made;

 

(e)       the
occurrence of a default under Section 7 of the Credit Agreement, subject to any applicable notice and cure period thereunder.

 

(f)        failure
to procure or maintain any insurance policies which are determined to be material, as determined by Beneficiary in its sole and
absolute discretion;

 

(g)       if
Trustor violates or does not comply with any of the provisions of subsection 5.4(ii) hereof;

 

(h)       a
default occurs under any of the other Loan Documents and such default is not cured within the applicable notice and cure period,
if any; or

 

(i)        if
the Premises or Improvements become subject to any lien, other than a lien permitted pursuant to Section 6.2 of the Credit Agreement.

 

    	 	27	 

     

    

 

4.2.         Remedies.
Upon the occurrence of any Event of Default, Trustee and Beneficiary
shall have the following rights and remedies:

 

(i)           Beneficiary
may declare the entire principal amount then outstanding (if not then due and payable) pursuant to the Credit Agreement, and accrued
but unpaid interest thereon, to be due and payable immediately, and, notwithstanding the stated maturity in the Credit Agreement
or any other term or provision of the Loan Documents or this Deed of Trust to the contrary, the outstanding principal amount of
the Loan Documents and the accrued but unpaid interest thereon shall become and be immediately due and payable.

 

(ii)          Irrespective
of whether Beneficiary exercises the option provided in Section 4.2(i) above, Beneficiary in person or by agent may, without
any obligation so to do and without notice or demand upon Trustor and without releasing Trustor from any obligation hereunder:
(a) make any payment or do any act which Trustor has failed to make or do; (b) enter upon, take possession of, manage
and operate the Trust Estate or any part thereof; (c) make or enforce, or, if the same be subject to modification or cancellation,
modify or cancel any Leases of the Trust Estate or any part thereof upon such terms or conditions as Beneficiary deems proper;
(d) obtain and evict tenants, and fix or modify rents, make repairs and alterations and do any acts which Beneficiary deems
proper to protect the security hereof; and (e) with or without taking possession, in its own name or in the name of Trustor,
sue for or otherwise collect and receive rents, royalties, issues, profits, revenue, income and other benefits, including those
past due and unpaid, and apply the same less costs and expenses of operation and collection, including reasonable attorneys’
fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. Upon request of Beneficiary, Trustor
shall assemble and make available to Beneficiary at the Premises any of the Trust Estate which has been removed therefrom. The
entering upon and taking possession of the Trust Estate, the collection of any rents, royalties, issues, profits, revenue, income
or other benefits and the application thereof as aforesaid shall not cure or waive any default theretofore or thereafter occurring
or affect any notice of default hereunder or invalidate any act done pursuant to any such notice; and, notwithstanding continuance
in possession of the Trust Estate, or any part thereof, by Beneficiary, Trustee or a receiver, and the collection, receipt and
application of rents, royalties, issues, profits, revenue, income or other benefits, Beneficiary shall be entitled to exercise
every right provided for in this Deed of Trust or by law upon or after the occurrence of an Event of Default, including the right
to exercise the power of sale. Any of the actions referred to in this Section 4.2(ii) may be taken by Beneficiary, either
in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and any such
action may also be taken irrespective of whether any notice of default or election to sell has been given hereunder and without
regard to the adequacy of the security for the indebtedness hereby secured. Further, Beneficiary, at the expense of Trustor, either
by purchase, repair or construction, may from time to time maintain and restore the Trust Estate or any part thereof and complete
construction of the Improvements uncompleted as of the date thereof and in the course of such, completion may make such changes
in the contemplated Improvements as Beneficiary may deem desirable and may insure the same.

 

    	 	28	 

     

    

 

(iii)        Beneficiary
shall be entitled, without notice and to the full extent provided by law, to the appointment by a court having jurisdiction of
a receiver to take possession of and protect the Trust Estate or any part thereof, and operate the same and collect the Rents.

 

(iv)         Beneficiary
may bring an action in any court of competent jurisdiction to foreclose this Deed of Trust or enforce any of the terms, covenants
and conditions hereof or contained in any other Loan Document.

 

(v)           Beneficiary
may elect to cause the Trust Estate or any part or parts thereof to be sold as follows:

 

(a)       Beneficiary
may proceed as if all of the Trust Estate were real property in accordance with subparagraph (d) below, or Beneficiary may elect
to treat any of the Trust Estate which consists of a right in action or which is property that can be severed from the Premises
or the Improvements without causing structural damage thereto as if the same were personal property, and dispose of the same in,
accordance with subparagraph (c) below, separate and apart from the sale of real property, the remainder of the Trust Estate being
treated as real property.

 

(b)       Beneficiary
may cause any such sale or other disposition to be conducted immediately following the expiration of any grace period herein provided
(or immediately upon the expiration of any redemption or reinstatement period required by law) or Beneficiary may delay any such
sale or other disposition for such period of time as Beneficiary deems to be in its best interest. Should Beneficiary desire that
more than one (1) such sale or other disposition be conducted, Beneficiary may, at its option, cause the same to be conducted
simultaneously, or successively, on the same day, or at such different days or times and in such order as the Lenders may deem
to be in their best interest.

 

(c)       Should
Beneficiary elect to cause any of the Trust Estate to be disposed of as personal property as permitted by subparagraph (a) above,
it may dispose of any part thereof in any manner now or hereafter permitted by the California Commercial Code, the commercial
code of the state in which any of the Trust Estate is located or in accordance with any other remedy provided by law. Any such
disposition may be conducted by an employee or agent of Beneficiary or Trustee. Both Trustor and Beneficiary shall be eligible
to purchase any part or all of such property at any such disposition. Any such disposition may be either public or private as
Beneficiary may elect, subject to the provisions of the California Commercial Code or the commercial code of the state in which
any of the Trust Estate is located. Beneficiary shall have all of the rights and remedies of a Secured Party under the California
Commercial Code or the commercial code of the state in which any of the Trust Estate is located. Expenses of retaking, holding,
preparing for sale, selling or the like shall include Beneficiary’s reasonable attorneys’ fees and legal expenses,
and upon such default, Trustor, upon demand of Beneficiary, shall assemble such personal property and make it available to Beneficiary
at the Premises, a place which is hereby deemed reasonably convenient to Beneficiary and Trustor. Beneficiary shall give Trustor
at least five (5) days’ prior written notice of the time and place of any public sale or other disposition of such property
or of the time at or after which any private sale or any other intended disposition is to be made, and if such notice is sent
to Trustor, in the manner provided for the mailing of notices herein, it shall constitute reasonable notice to Trustor.

 

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(d)       Should
Beneficiary elect or be directed to sell the Trust Estate or any part thereof which is real property or which Beneficiary has
elected to treat as real property, upon such election, Beneficiary or Trustee shall give such notice of default election to sell
as may then be required by law and by any Loan Document. Thereafter, upon the expiration of such time and the giving of such notice
of sale as may then be required by law, and without the necessity of any demand on Trustor, Trustee, at the time and place specified
in the notice of sale, shall sell the Trust Estate, or any portion thereof specified by Beneficiary, at public auction to the
highest bidder for cash in lawful money of the United States or any other form of consideration acceptable to Beneficiary, subject,
however, to the provisions of Section 4.2(vii). Trustee may, and upon request of Beneficiary shall, from time to time postpone
the sale of all or any portion of the Trust Estate by public announcement at the time and place of such sale, and from time to
time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement or subsequently
noticed sale, and without further notice make such sale at the time fixed by the last postponement, or may, in its discretion,
give a new notice of sale. If the Trust Estate consists of several lots or parcels, Beneficiary may direct that the same be sold
as a unit or be sold separately and, if to be sold separately, Beneficiary may designate the order in which such lots or parcels
shall be offered for sale or sold. Any Person, including Trustor, Trustee or Beneficiary, may purchase at the sale. Upon any sale,
Trustee shall execute and deliver to the purchaser or purchasers a deed or deeds conveying the property so sold, but without any
covenant or warranty whatsoever, express or implied, whereupon such purchaser or purchasers shall be let into immediate possession.

 

(e)       Beneficiary,
from time to time before any Trustee’s sale as provided herein, may rescind any notice of default and election to sell or
notice of sale by executing and delivering to Trustee a written notice of such rescission, which such notice, when recorded, shall
constitute a cancellation of any prior declaration of default and demand for sale. The exercise by Beneficiary of such right of
rescission shall not constitute a waiver of any breach or default then existing or subsequently occurring, or impair the right
of Beneficiary to execute and deliver to Trustee, as above provided, other declarations or notices of default and demand for sale
of the Trust Estate to satisfy the obligations hereof, nor otherwise affect any provision, covenant or condition of any Loan Document.

 

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(f)        In
the event of a sale or other disposition of the Trust Estate, or any part thereof, and the execution of a deed or other conveyance
pursuant thereto, the recitals therein offsets, such as default, the giving of notice of default and notice of sale, demand that
such sale should be made, postponement of sale, terms of sale, sale, purchase, payment of purchase money and other facts affecting
the regularity or validity of such sale or disposition, shall be conclusive proof of the truth of such facts and any such deed
or conveyance shall be conclusive against all persons as to such facts recited therein.

 

(g)      The
acknowledgment of the receipt of the purchase money, contained in any deed or conveyance executed as aforesaid, shall be sufficient
discharge to the grantee of all obligations to see to the proper application of the consideration therefor as hereinafter provided.
The purchaser at any trustee’s or foreclosure sale hereunder may disaffirm any easement granted or rental or lease contract
made in violation of any provision of this Deed of Trust and may take immediate possession of the Trust Estate free from, and
despite the terms of, such grant of easement and rental or lease contract.

 

(h)       Upon
the completion of any sale or sales made by Trustee or Beneficiary, as the case may be, under or by virtue of this Article
4, Trustee or any officer of any court empowered to do so, shall execute and deliver to the accepted purchaser or purchasers
a good and sufficient instrument, or good and sufficient instruments, conveying, assigning and transferring all estate, right,
title and interest in and to the property and rights sold. Trustee is hereby irrevocably appointed the true and lawful attorney-in-fact
of Trustor in its name and stead to make all necessary conveyances, assignments, transfers and deliveries of the Trust Estate
or any part thereof and the rights so sold and for that purpose Trustee may execute all necessary instruments of conveyance, assignment
and transfer, and may substitute one or more persons with like power, Trustor hereby ratifying and confirming all that its said
attorney or any substitute or substitutes shall lawfully do by virtue hereof. Nevertheless, Trustor, if so requested by Trustee
or Beneficiary, shall ratify and confirm any such sale or sales by executing and delivering to Trustee or to such purchaser or
purchasers all such instruments as may be advisable in the judgment of Trustee or Beneficiary, for the purpose as may be designated
in such request. The foregoing power of attorney is coupled with an interest and cannot be revoked. Any such sale or sales made
under or by virtue of this Article 4, whether made under the power of sale herein granted or under or by virtue of judicial
proceedings or of a judgment or decree of foreclosure and sale, shall operate to divest all of the estate, right, title, interest,
claim and demand whatsoever, whether at law or in equity, of Trustor in and to the properties and rights so sold, and shall be
a perpetual bar, both at law and in equity, against Trustor and any and all persons claiming or who may claim the same, or any
part thereof, from, through or under Trustor.

 

    	 	31	 

     

    

 

(i)       Trustor
hereby expressly waives any right which it may have to direct the order in which any of the Trust Estate shall be sold in the
event of any sale or sales pursuant hereto.

 

(vi)         The
purchase money, proceeds or avails of any sale made under or by virtue of this Article 4, together with all other sums
which may then be held by Trustee or Beneficiary under this Deed of Trust, whether under the provisions of this Article 4,
or otherwise, shall be applied as follows:

 

FIRST:
To the payment of the costs and expenses of the sale, including reasonable compensation to Trustee and Beneficiary, their agents
and counsel, and of any judicial proceedings wherein the same may be made and to the payment of all expenses, liabilities and
advances made or incurred by Trustee under this Deed of Trust, together with interest as specified in the Credit Agreement on
all advances made by Trustee and all taxes or assessments, except for any taxes, assessments or other charges subject to which
the Trust Estate shall have been sold, and further including all costs of publishing, recording, mailing and posting notice, the
cost of any search and/or other evidence of title procured in connection therewith and the cost of any revenue stamps on any deed
of conveyance.

 

SECOND:
To the payment of any and all sums expended under the terms hereof, not then repaid, with accrued interest as specified in the
Credit Agreement and all other sums required to be paid by Trustor pursuant to any provisions of this Deed of Trust or of the
Credit Agreement or of any other Loan Document, including all expenses, liabilities and advances made or incurred by Beneficiary
under this Trust Estate or in connection with the enforcement hereof, together with interest as specified in the Credit Agreement
on all advances.

 

THIRD:
To the payment of the principal and interest then due, owing and unpaid upon the Credit Agreement, with interest on the unpaid
principal as specified therein from the due date of any such payment of principal until the same is paid.

 

FOURTH:
The remainder, if any, to the Person or Persons legally entitled thereto.

 

(vii)        Upon
any sale or sales made under or by virtue of this Article 4, whether made under the power of sale herein granted or under
or by virtue of judicial proceedings or of a judgment or decree of foreclosure and sale, Beneficiary may bid for and acquire the
Trust Estate or any part thereof and, in lieu of paying cash therefor, may make settlement for the purchase price by crediting
upon the indebtedness or other sums secured by this Deed of Trust the net sales price after deducting therefrom the expenses of
sale and the costs of the judicial proceedings, if any, and any other sums which Trustee or Beneficiary is authorized to deduct
under this Deed of Trust or the Loan Documents, and, in such event, this Deed of Trust, the Loan Documents and documents evidencing
expenditures secured hereby shall be presented to the Person or Persons conducting the sale in order that the amount so used or
applied may be credited upon said indebtedness as having been paid.

 

    	 	32	 

     

    

 

(viii)       Upon
the occurrence of any Event of Default and upon written demand by Beneficiary, Trustor will pay to Beneficiary the entire principal
then outstanding, and all accrued but unpaid interest thereon, and, after the happening of said Event of Default, will also pay
to Beneficiary interest as specified in the Credit Agreement on the then unpaid principal, and the sums required to be paid by
Trustor pursuant to any provision of this Deed of Trust, or any other Loan Document and in addition thereto such further amount
as shall be sufficient to cover the costs and expenses of collection, including reasonable compensation to Trustee and Beneficiary
hereunder. In the event Trustor shall fail forthwith to pay such amounts upon such demand, Beneficiary shall be entitled and empowered
to institute such action or proceedings at law or in equity as may be advised by its counsel for the collection of the sums so
due and unpaid, and may prosecute any such action or proceedings to judgment or final decree, and may enforce any such judgment
or final decree against Trustor and collect, out of the property of Trustor wherever situated, as well as out of the Trust Estate,
in any manner provided by law, moneys adjudged or decreed to be payable.

 

(a)       Beneficiary
shall be entitled to recover judgment as aforesaid either before or after or during the pendency of any proceedings for the enforcement
of the provisions of this Deed of Trust, and the right of Beneficiary to recover such judgment shall not be affected by any entry
or sale hereunder, or by the exercise of any other right, power or remedy for the enforcement of the provisions of this Deed of
Trust, or the foreclosure of the lien hereof; and in the event of a sale of the Trust Estate, and of the application of the proceeds
of sale, as in this Deed of Trust provided, to the payment of the debt hereby secured, Beneficiary shall be entitled to enforce
payment of, and to receive all amounts then remaining due and to enforce payment of all other charges, payments and costs due
under this Deed of Trust, and shall be entitled to recover judgment for any portion of the debt remaining unpaid, with interest.
In case of proceedings against Trustor in insolvency or bankruptcy or any proceedings for the reorganization of Trustor or involving
the liquidation of its assets, Beneficiary shall be entitled to prove the whole amount of principal and interest due pursuant
to the Loan Documents to the full amount thereof, and all other payments, charges and costs due under this Deed of Trust or any
other Loan Document.

 

(b)       No
recovery of any judgment by Beneficiary and no levy of an execution under any judgment upon the Trust Estate or upon any other
property of Trustor shall affect, in any manner or to any extent, the lien of this Deed of Trust upon the Trust Estate or any
part thereof, or any liens, rights, powers, or remedies of Trustee or Beneficiary hereunder, but such liens, rights, powers and
remedies of Trustee and Beneficiary shall continue unimpaired as before.

 

    	 	33	 

     

    

 

(c)       Any
moneys thus collected by Beneficiary under this Section 4.2(viii) shall be applied by Beneficiary in accordance with the
provisions of Section 4.2 (vi).

 

(ix)         Upon
the commencement of any action, suit or other legal proceedings by Beneficiary to obtain judgment for the principal of, or interest
on sums required to be paid by Trustor pursuant to any provision of this Deed of Trust, or of any other nature in aid of the enforcement
of the Loan Documents or of this Deed of Trust, Trustor, to the fullest extent permitted by law, will and does hereby (a) waive
the issuance and service of process and enter its voluntary appearance in such action, suit or proceedings, and (b) if required
by Beneficiary, consent to the appointment of a receiver or receivers of the Trust Estate and of all the Rents. After the happening
of any Event of Default, or upon the commencement of any proceedings to foreclose this Deed of Trust or to enforce the specific
performance hereof or in aid thereof or upon the commencement of any other judicial proceedings to enforce any right of Trustee
or Beneficiary, Trustee or Beneficiary shall be entitled forthwith, as a matter of right, if either shall so elect, without the
giving of notice to any other party and without regard to the adequacy of the security of the Trust Estate, either before or after
declaring the unpaid principal of the Loan Documents to be due and payable, to the appointment of such a receiver or receivers.

 

(x)          Notwithstanding
the appointment of any receiver, liquidator or trustee of Trustor, or of any of its property, or of the Trust Estate or any part
thereof, Trustee and Beneficiary shall be entitled to retain possession and control of all property now or hereafter held under
this Deed of Trust, including, but not limited to, the Rents.

 

(xi)         No
remedy herein conferred upon or reserved to Trustee or Beneficiary is intended to be exclusive of any other remedy herein or by
any Loan Document or by law provided, but each shall be cumulative and shall be in addition to every other remedy given hereunder
or by and Loan Document or now or hereafter existing at law or in equity or by statute. No delay or omission of Trustee or Beneficiary
in exercising any right or power accruing upon any Event of Default shall impair any right or power or shall be construed to be
a waiver of any Event of Default or any acquiescence therein; and every power and remedy given by this Deed of Trust to Trustee
or Beneficiary may be exercised from time to time as often as may be deemed expedient by Trustee or Beneficiary. If there exists
additional security for the performance of the obligations secured hereby, Beneficiary, or its assigns, at its sole option, and
without limiting or affecting any of the rights or remedies hereunder, may exercise any of the rights and remedies to which it
may be entitled hereunder either concurrently with whatever rights it may have in connection with such, other security or in such
order as it may determine. Nothing in this Deed of Trust or any other Loan Documents shall affect the obligation of Trustor to
pay the principal of, and interest as specified in the Credit Agreement in the manner and at the time and place therein respectively
expressed.

 

    	 	34	 

     

    

 

(xii)        To
the fullest extent permitted by applicable law, Trustor will not at any time insist upon, or plead, or in any manner whatsoever
claim or take any benefit or advantage of any stay or extension or moratorium law or law pertaining to the marshaling of assets,
the administration of estates of decedents, any exemption from execution or sale of the Trust Estate or any part thereof, including
exemption of homestead, wherever enacted, now or at any time hereafter in force, which may affect the covenants and terms of performance
of this Deed of Trust, nor claim, take or insist upon any benefit or advantage of any law now or hereafter in force providing
for the valuation or appraisal of the Trust Estate, or any part thereof, prior to any sale or sales thereof which may be made
pursuant to any provision herein, or pursuant to the decree, judgment or order of any court of competent jurisdiction; nor after
any such sale or sales, claim or exercise any right under any statute heretofore or hereafter enacted to redeem the property so
sold or any part thereof, and Trustor hereby expressly waives all benefit or advantage of any such law or laws, and covenants
not to hinder, delay or impede the execution of any power herein granted or delegated to Trustee or Beneficiary, but to suffer
and permit the execution of every power as though no such law or laws had been made or enacted. Trustor, for itself and all who
claim under it, hereby waives, to the extent that it lawfully may, all right to have the Trust Estate marshaled upon any sale
or foreclosure hereunder.

 

(xiii)      Upon
the occurrence of any Event of Default and pending the exercise by Trustee or Beneficiary or their agents or attorneys of their
right to exclude Trustor from all or any part of the Trust Estate, Trustor agrees to vacate and surrender possession of the Trust
Estate to Trustee or Beneficiary, as the case may be, or to a receiver, if any, and in default thereof may be evicted by any summary
action or proceeding for the recovery of possession of leased premises for nonpayment of rent, however designated.

 

(xiv)       In
the event ownership of the Trust Estate or any portion thereof becomes vested in a Person other than the Trustor herein named,
Beneficiary may, without notice to the Trustor herein named, whether or not Beneficiary has given written consent to such change
in ownership, deal with such successor or successors in interest with reference to this Deed of Trust and the indebtedness secured
hereby, and in the same manner as with the Trustor herein named, without in any way vitiating or discharging Trustor’s liability
hereunder or for the indebtedness or obligations hereby secured.

 

(xv)         In
the event that there be a Trustee’s sale hereunder and if at the time of such sale Trustor, or its heir, executor, administrator
or assign, be occupying the Premises and Improvements or any part thereof so sold, each and all shall immediately become the tenant
of the purchaser at such sale, which tenancy shall be a tenancy from day to day, terminable at the will of either tenant or landlord,
at a reasonable rental per day based upon the value of the Premises and Improvements, such rental to be due daily to the purchaser.
An action of unlawful detainer shall lie if the tenant holds over after a demand in writing for possession of said Premises and
Improvements; and this agreement and the Trustee’s deed shall constitute a lease and agreement under which any such tenant’s
possession arose and continued.

 

    	 	35	 

     

    

 

(xvi)       Trustor
shall pay immediately, without notice or demand, all costs and expenses in connection with the enforcement of Beneficiary’s
rights under any of the Loan Documents, including, without limitation, reasonable attorneys’ fees, whether or not any suit
is filed in connection with such enforcement; such costs and expenses shall include, without limitation, all costs, reasonable
attorneys’ fees and expenses in connection with any insolvency, bankruptcy, reorganization, arrangement or other similar
proceedings involving Trustor or Trustor’ s obligations under any Loan Document, which in any way affects the exercise by
Beneficiary of its rights and remedies under the Deed of Trust or any other Loan Document.

 

4.3.         Avoidance
of Lock-Out Period. Following an Event of Default, if Trustor
or anyone on Trustor’s behalf makes a tender of payment of the amount necessary to satisfy the Obligations secured by this
Deed of Trust at any time prior to a foreclosure sale (including, but not limited to, sale under power of sale under this Deed
of Trust), or during any redemption period after foreclosure and such tender of payment as of the date tendered will constitute
a prepayment not permitted by Section 2.3 of the Credit Agreement, then, to the maximum extent permitted by law, Trustor
shall pay Beneficiary, in addition to such tender payment, an amount equal to the greater of (i) three percent (3%) of all
outstanding principal and interest amounts owed under or in connection with the Credit Agreement and (ii) an amount equal
to the excess of (A) the sum of the present values of a series of payments payable at the times and in the amounts equal
to the payments of principal and interest (including, but not limited to the principal and interest payable on the Maturity Date)
which would have been scheduled to be payable after the date of such tender under the Credit Agreement had the Obligations not
been accelerated, with each such payment discounted to its present value at the date of such tender at the rate which when compounded
monthly is equivalent to the Prepayment Rate (as hereinafter defined), over (B) the then principal amount due under the Credit
Agreement.

 

The
term “Prepayment Rate” means the bond equivalent yield (in the secondary market) on the United States Treasury
Security that as of the Prepayment Rate Determination Date (hereinafter defined) has a remaining term to maturity closest to,
but not exceeding, the remaining term to the Maturity Date, as most recently published in the “Treasury Bonds, Notes and
Bills” section in The Wall Street Journal as of the date of the related tender of payment. If more than one issue of United
States Treasury Securities has the remaining term to the Maturity Date referred to above, the “Prepayment Rate” shall
be the yield on the United States Treasury Security most recently issued as of such date. The term “Prepayment Rate Determination
Date” shall mean the date which is five (5) Business Days prior to the prepayment date. The rate so published shall
control absent manifest error. As used herein, “Business Day” shall mean any day other than Saturday, Sunday or any
other day on which bank are required or authorized to close in California.

 

    	 	36	 

     

    

 

ARTICLE
V

MISCELLANEOUS

 

5.1.         Amendments.
This Deed of Trust may only be waived, changed, discharged or
terminated by an instrument in writing signed by the party against whom enforcement of any waiver, change, discharge or termination
is sought

 

5.2.         No
Waiver. By accepting payment of any sum secured hereby after
its due date or in an amount less than the sum due, Beneficiary does not waive its rights either to require prompt payment when
due of all other sums so secured or to declare a default as herein provided for failure to pay the total sum due.

 

5.3.         Trustor
Waiver of Rights. Trustor waives to the extent permitted by
law, (i) the benefit of all laws now existing or that may hereafter be enacted providing for any appraisement before sale
of any portion of the Trust Estate, (ii) all rights of redemption, valuation, appraisement, stay of execution, notice of
election to mature or declare due the whole of the secured indebtedness and marshalling in the event of foreclosure of the liens
hereby created, and (iii) all rights and remedies which Trustor may have or be able to assert by reason of the laws of the
State of California pertaining to the rights and remedies of sureties; provided, however, nothing contained herein shall be deemed
to be a waiver of Trustor’s rights under Section 2924c of the California Civil Code.

 

5.4.         Environmental
Matters.

 

(i)           Trustor
agrees to submit from time to time, if requested by Beneficiary, a report, satisfactory to Beneficiary, certifying that the Premises
and the Improvements are not now being used nor been used in the past for any use, generation, transportation, treatment, storage
or disposal of any Hazardous Materials at any time located on or present or under or near the Premises. Beneficiary reserves the
right, in its sole and absolute discretion, to retain, at Trustor’s expense, an independent professional consultant to review
any report prepared by Trustor and/or to conduct its own investigation of the Premises and Improvements for Hazardous Materials.
Trustor hereby grants to Beneficiary, its agents, employees, consultants and contractors the right to enter upon the Premises
and Improvements and to perform such tests as are reasonably necessary to conduct such a review and/or investigation.

 

    	 	37	 

     

    

 

(ii)          Upon
the discovery by Trustor of any event or situation which would render any of the representations, warranties or covenants contained
in Section 2.11 herein above inaccurate in any respect if made at the time of such discovery, Trustor shall promptly notify
Beneficiary of such event or situation and, within fifteen (15) days after discovery, submit to Beneficiary a preliminary written
environmental plan setting forth a general description of such event or situation and the action, if any, that Trustor proposes
to take with respect thereto, including, without limitation, the giving of notice to and receipt of approval from appropriate
governmental agencies. Within fifteen (15) days after submission, of such preliminary report, Trustor shall submit to Beneficiary
a final written environmental report, setting forth a detailed description of such event, or situation and the action that Trustor
proposes to take with respect thereto, including, without limitation, any proposed corrective work, the estimated cost and time
of completion, the name of the contractor, a copy of the construction contract, if any, the governmental agencies contacted, the
governmental agencies claiming jurisdiction, the approvals required from said governmental agencies and the estimated time to
obtain said approvals, and such additional data, instruments, documents, agreements or other materials or information as Trustor
may reasonably request. The plan shall be subject to the Lenders’s written approval, which approval may be granted or withheld
in the Lender’s reasonable discretion. Beneficiary shall notify Trustor in writing of its approval or disapproval of the
final plan within fifteen (15) days after receipt thereof by Beneficiary. If Beneficiary disapproves the plan, Beneficiary’s
notice to Trustor of such disapproval shall include a brief explanation of the reasons therefor. Within fifteen (15) days after
receipt of such notice of disapproval. Trustor shall submit to Beneficiary a revised final written environmental plan that remedies
the defects identified by Beneficiary as reasons for Beneficiary’s disapproval of the initial final plan. If Trustor fails
to submit a revised plan to Beneficiary within said fifteen (15) day period, or if such revised plan is submitted to Beneficiary
and Beneficiary disapproves said plan, such failure or disapproval shall, at Beneficiary’s option and upon notice to Trustor,
constitute an Event of Default hereunder, in which event Beneficiary shall have all of the rights and remedies available to it
under subsection 4.2(ii). If Beneficiary does not notify Trustor of its approval or disapproval of the final plan or any
revisions thereof within fifteen (15) days after receipt thereof, the plan or revision shall be deemed disapproved. Once any such
plan is approved in writing or deemed approved by Beneficiary, Trustor shall promptly commence all action necessary to implement
such plan and to comply with any requirements and conditions imposed by Beneficiary, and shall diligently and continuously pursue
such action to completion in strict accordance with the terms thereof.

 

5.5.         Notices.
Whenever Trustor, Trustee or Beneficiary shall desire to give
or serve any notice, demand, request or other communication with respect to this Deed of Trust, each such notice, demand, request
or communication shall be given in writing (at the address set forth below) by any of the following means: (a) personal service:
(b) electronic communication, whether by telex or telecopying (if confirmed in writing sent by overnight delivery service);
or (c) overnight delivery service (such as FedEx), providing proof of delivery. Such addresses may be changed by notice to
the other parties given in the same manner as provided above. Any notice, demand or request sent pursuant to either subsection
(a) or (b) hereof shall be deemed received upon such personal service or upon dispatch by electronic means, and, if
sent pursuant to subsection (c) shall be deemed received as of the date of delivery (whether accepted or refused) established
by the overnight carrier’s proof of delivery.

 

    	 	38	 

     

    

 

	To
    Beneficiary:	Wells
    Fargo Bank, N.A.

    9062 Old Annapolis Road

    Columbia, MD 21045

    Attention: Jason Prisco – Cadiz Inc./Cadiz 

    Real Estate LLCP

    Telephone No.: (410) 884-2271

    Email: ctsbankdebtadministrationteam@wellsfargo.com
	 	 
	with
    a copy to:	Perkins
        Coie LLP

        

        30
        Rockefeller Plaza 22nd Floor

        

        New
        York, NY 10112-0015

        

        Attention:
        Ronald Sarubbi

        

        Telephone:
        212.262.6914

        Email: RSarubbi@perkinscoie.com

        

	 	 
	To
    Trustor:	Cadiz
    Inc./Cadiz Real Estate LLC/Octagon Partners LLC

    550 South Hope Street, Suite 2850,

    Los Angeles, California 90071

    Attention:  Chief Financial Officer

    Telephone No.:  213-271-1600

    Telecopy No.:  213-271-1614
	 	 
	with
    a copy to:	Mitchell
    Silberberg & Knupp LLP

    11377 W. Olympic Blvd.

    Los Angeles, CA 90064

    Attention:  Kevin Friedmann

    Telecopy:  (310) 312-3100

    Telephone:  (310) 312-3106
	 	 
	To
    Trustee:	Chicago
        Title Company

        560 East Hospitality Lane

        San Bernardino, California

        Telephone No.: 909-884-0448

        Telecopy No.: 909-384-7893

        

 

5.6.         Sale
of Participation. Beneficiary may, at any time, sell, transfer,
assign or grant participations herein and other Obligations secured hereby, and Beneficiary may forward to each participant and
prospective participant all documents and information which Beneficiary now has or later may acquire relating to those Obligations
and to Trustor, and any partners or joint venturers of Trustor, whether furnished by Trustor or otherwise, as Beneficiary determines
necessary or desirable.

 

    	 	39	 

     

    

 

5.7.         Acceptance
by Trustee. Trustee accepts this Trust when this Deed of Trust,
duly executed and acknowledged, is made a public record as provided by law.

 

5.8.         Captions.
The captions or headings at the beginning of each Section hereof
are for the convenience of the parties and are not a part of this Deed of Trust.

 

5.9.         Affidavit
to Trustee. Trustee, upon presentation to it of an affidavit
signed by or on behalf of Beneficiary, setting forth any fact or facts showing a default by Trustor under any of the terms or
conditions of this Deed of Trust, is authorized to accept as true and conclusive all facts and statement in such affidavit and
to act hereunder in complete reliance thereon.

 

5.10.      Severability;
Invalidity of Certain Provisions. Every provision of this Deed
of Trust is intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid for any reason
whatsoever by a court of competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and provisions
hereof, which terms and provisions shall remain binding and enforceable. If the lien of this Deed of Trust is invalid or unenforceable
as to any part of the debt, or if the lien is invalid or unenforceable as to any part of the Trust Estate, the unsecured or partially
unsecured portion of the debt shall be completely paid prior to the payment of the remaining and secured or partially secured
portion of the debt, and all payments made on the debt, whether voluntary or under foreclosure or other enforcement action or
procedure, shall be considered to have been first paid on and applied to the full payment of that portion of the debt which is
not secured or fully secured by the lien of this Deed of Trust.

 

5.11.       Waiver
of Statute of Limitations. The right to plead any and all statutes
of limitation as a defense to any demand secured by this Deed of Trust is hereby waived to the full extent permitted by law.

 

5.12.       No
Merger of Lease. If both the lessor’s and lessee’s
estate under any lease or any portion thereof which constitutes a part of the Trust Estate shall at any time become vested in
one owner, this Deed of Trust and the lien created hereby shall not be destroyed or terminated by application of the doctrine
of merger unless Beneficiary so elects as evidenced by recording a written declaration so stating, and, unless and until Beneficiary
so elects. Beneficiary shall continue to have and enjoy all of the rights and privileges of Beneficiary as to the separate estates.
In addition, upon the foreclosure of the lien created by this Deed of Trust on the Trust Estate pursuant to the provisions hereof,
any leases or subleases then existing and affecting all or any portion of the Trust Estate shall not be destroyed or terminated
by application of the law of merger or as a matter of law or as a result of such foreclosure unless Beneficiary or any purchaser
at such foreclosure sale shall so elect. No act by or on behalf of Beneficiary or any such purchaser shall constitute a termination
of any lease or sublease unless Beneficiary or such purchaser shall give written notice thereof to such tenant or subtenant.

 

    	 	40	 

     

    

 

5.13.       Governing
Law. Insofar as permitted by otherwise applicable law, this
Deed of Trust and the indebtedness and obligations secured hereby shall be governed by and construed in accordance with the laws
of California.

 

5.14.       Beneficiary’s
Right to Enter, Inspect and Cure. Beneficiary is authorized,
by itself, its contractors, agents, employees or workmen, to enter at any reasonable time upon any part of the Premises for the
purpose of inspecting the same, and for the purpose of performing any of the acts it is authorized to perform under the terms
of the Loan Document and this Deed of Trust

 

5.15.       Interpretation
and Successors in Interest. Subject to the provisions of Section
2.17 hereof, this Deed of Trust applies to, to the benefit of, and binds all parties hereto, their heirs, legatees, devisees,
administrators, executors, successors and assigns. The term “Beneficiary” shall mean the owner and holder, including
pledgees, of the Credit Agreement, now or hereafter whether or not named as Beneficiary herein. All capitalized terms used herein
without definition shall have the respective meanings ascribed to them in the Credit Agreement. The rules of construction specified
in Section 1.2 of the Credit Agreement shall also apply to this Deed of Trust. Any reference in this Deed of Trust to any
document, instrument or agreement creating or evidencing an obligation secured hereby shall include such document, instrument
or agreement both as originally executed and as it may from time to time be modified. In the performance of its duties hereunder,
the Beneficiary shall be afforded all of the rights, benefits, protections, immunities and indemnities entitled to it under the
Credit Agreement.

 

5.16.       Reconveyance
by Trustee. Upon written request of Beneficiary stating that
all sums secured hereby have been paid, and upon surrender of this Deed of Trust to Trustee for cancellation and retention and
upon payment by Trustor of Trustee’s fees, Trustee shall reconvey to Trustor, or to the Person or Persons legally entitled
thereto, without warranty, any portion of the Trust Estate then held hereunder. The recitals in such reconveyance of any matters
or facts shall be conclusive proof of the truthfulness thereof. The grantee in any reconveyance may be described as “the
person or persons legally entitled thereto.”

 

5.17.       Conflicts.
To the extent that this Deed of Trust or any of the other Loan
Documents are inconsistent with the Credit Agreement, the Credit Agreement shall supersede any other agreement or document relating
to the matters referred to herein or therein.

 

5.18.       Counterparts;
Recording References. This Deed of Trust may be executed in
several original counterparts. To facilitate filing and recording, there may be omitted from certain counterparts the parts of
Exhibit A hereto containing specific descriptions of certain collateral constituting the Trust Estate which relate to land
under the jurisdiction of offices or located in cities or counties other than the office or city or county in which the particular
counterpart is to be filed or recorded. A complete copy of this Deed of Trust is being filed for record in the Office of the County
Recorder of San Bernardino. Each counterpart shall be deemed to be an original for all purposes, and all counterparts shall together
constitute a single document; provided, however, Beneficiary and Trustee shall also have the option to exercise all rights and
remedies available to Beneficiary and Trustee hereunder and under applicable law as though each counterpart hereof were a separate
deed of trust, or other security instrument covering only the portions of the collateral constituting the Trust Estate located
in the city or county wherein such counterpart is recorded. Unless otherwise specified in Exhibit A hereto, all recording
references in Exhibit A are to the official real property records of the city or county as appropriate, in which the affected
land is located. The references in Exhibit A to liens, encumbrances and other burdens, if any, shall not be deemed to recognize
or create any rights in third parties.

 

    	 	41	 

     

    

 

5.19.       Nonforeign
Entity. Section 1445 of the Internal Revenue Code of 1986, as
amended (the “Internal Revenue Code”) provides that a transferee of a U.S. real property interest must withhold
tax if the transferor is a foreign Person. To inform Beneficiary that the withholding of tax will not be required in the event
of the disposition of the Premises or Improvements pursuant to the terms of this Deed of Trust, Trustor hereby certifies, under
penalty of perjury, that:

 

(i)           Trustor
is not a foreign corporation, foreign, partnership, foreign trust or foreign estate, as those terms are defined in the Internal
Revenue Code and the regulations promulgated thereunder;

 

(ii)          Cadiz’s
U.S. employer identification number is 77-0313235, CRE’s U.S. employer identification number is 77-0313235 and Octagon Partner’s
U.S. employer identification number is ___________; and

 

(iii)         Trustor’s
principal place of business is 550 South Hope Street, Suite 2850 Los Angeles CA 90071

 

It
is understood that Beneficiary may disclose the contents of this certification to the Internal Revenue Service and that any false
statement contained herein could be punished by fine, imprisonment or both. Trustor covenants and agrees to execute such further
certificates, which shall be signed under penalty of perjury, as Beneficiary shall reasonably require. The covenant set forth
herein shall survive the foreclosure of the lien of this Deed of Trust or acceptance of a deed in lieu thereof

 

5.20.       Agent’s
Rights. It is expressly understood and agreed by the parties to this Deed of Trust that (i)
Wells Fargo Bank, National Association is entering into this Agreement and acting hereunder solely in its capacity as Agent under
the Credit Agreement and (ii) in entering into and acting as Agent hereunder, Wells Fargo Bank, National Association shall be
afforded all of the rights, protections, benefits, indemnities and immunities granted to the Agent in the Credit Agreement as
if set forth in their entirety herein. Any act, or refusal to act, hereunder requiring the Agent to exercise discretion (including,
but not limited to, the exercise of remedies following an Event of Default) shall be exercised in accordance with the terms of
the Credit Agreement. The permissive authorizations, entitlements, powers and rights granted to the Agent herein (including the
right to (i) request any documentation, (ii) request the taking of any action and (iii) exercise any remedies) shall not be construed
as duties.

 

    	 	42	 

     

    

 

5.21.       Discretionary
Acts. Any duty, role, responsibility, action or inaction contemplated or required on the part
of Agent hereunder is expressly subject to the terms and conditions of the Credit Agreement, and Agent shall be entitled to all
of the rights, powers, benefits, protections, immunities and indemnities granted to it in the Credit Agreement from the Lenders
as if explicitly set forth herein. Any act or omission to act involving the exercise of discretion by Agent shall be exercised
in accordance with the terms of the Credit Agreement. The Agent may execute any of its duties under this Agreement by or through
agents or attorneys-in-fact and shall not be responsible for the negligence or misconduct of any agents or attorneys in-fact selected
by it with reasonable care.

 

5.22.       Consent/Performance
by Beneficiary or Lenders.   Notwithstanding anything to the contrary set forth herein,
with respect to (a) any consent or notice herein to be obtained or given by Beneficiary or Lenders, as applicable and (b) any
and all decisions, actions or performance which may be made or taken by Beneficiary or Lenders hereunder, as applicable, Trustor
shall accept any such notices, consents, actions and performance, from or by Agent, as that also being from, by or on behalf of,
Beneficiary and the Lenders as though, and with the same effect as if, the same had been directly given, done or performed by
the Beneficiary and Required Lenders (as defined in the Credit Agreement).  In furtherance thereof, in the event that Trustor
receives any such notices, consents, actions and performances from Agent, Trustor may rely thereon without the requirement that
Agent provide, or Trustor obtain, proof of Agent’s authority with respect thereto to bind Beneficiary or the Lenders. 
In the event that Trustor receives any written notice from, and executed by, Lenders qualifying as Required Lenders that, from
and after the date thereof, Trustor shall thereafter only rely upon any consent, notice, action or performance from the Required
Lenders (and not Beneficiary), and to ignore any of the same from Agent, and such notice specifically names one of the Required
Lenders as the party upon which all subsequent notices shall be given or be sent to (it being the express intent of Agent, Beneficiary
and Lenders that Trustor shall at all times only be required to give or accept notices to or from one of Agent, Beneficiary or
one of the Required Lenders), Trustor shall (i) comply with such written notice until such time as the same has been rescinded
or modified by written notice signed by the Required Lenders and (ii) Trustor may thereafter rely upon any subsequent notice,
consent, action or performance given by the Required Lender so named without the requirement that Agent, Beneficiary or any other
Lender provide, or Trustor obtain, proof of said Required Lender(s) authority with respect thereto to bind Beneficiary or Lenders.

 

    	 	43	 

     

    

 

ARTICLE
VI

SURETYSHIP WAIVERS

 

6.1.         In
addition to all waivers expressed in the Credit Agreement and the other Loan Documents, to the extent that any Person comprising
Trustor (a “Trustor Party”) is construed as or constitutes a surety with respect to any other Trustor Party,
then the following provisions shall apply:

 

(a)       Each
Trustor Party hereby absolutely, unconditionally, knowingly, and expressly waives and agrees not to assert or take advantage of
any defense based upon (1) presentment, demand, protest and notice of protest, notice of dishonor and of non-payment, notice
of acceptance of the Loan Documents, and diligence in collection; (2) notice of the existence, creation, or incurring of
any new or additional obligations under or pursuant to any of the Loan Documents; (3) any right to require Beneficiary to
proceed against, give notice to, or make demand upon any other Trustor Party; (4) any right to require Beneficiary to proceed
against or exhaust any security or to proceed against or exhaust any security in any particular order; (5) any right to require
Beneficiary to pursue any remedy of Beneficiary; (6) any right to direct the application of any security held by Beneficiary;
(7) any right of subrogation or to enforce any remedy which Beneficiary may have against any other Trustor Party and any
right to participate in any security now or hereafter held by Beneficiary and any right to reimbursement from any other Person
comprising Trustor for amounts paid to Beneficiary by any other Trustor Party at any time prior to the Payment in Full (as hereinafter
defined) of all obligations of Trustor under the Loan Documents and of all Obligations secured by this Deed of Trust; (8) any
defense arising out of any disability or other defense of any Trustor Party, including bankruptcy, dissolution, liquidation, cessation,
impairment, modification, or limitation, from any cause, of any liability of Trustor, or of any remedy for the enforcement of
such liability; (9) any right to plead or assert any election of remedies by Beneficiary; (10) any other defenses available
to a surety under applicable law: (11) notice of any adverse change in the financial condition of any Trustor Party or of
any other fact that might increase such Trustor Party’s risk under the Loan Documents; and (12) all notices (except
if such notice is specifically required to be given to such Trustor Party) and demands to which Trustor might otherwise be entitled.
As used herein, the term “Payment in Full” with respect to any obligation shall mean the payment in full in
cash of all such obligations and the expiration of all applicable time periods regarding bankruptcy preference, fraudulent conveyance
or other avoidance actions that may be applicable to the circumstances of payment of any or all of such obligations under any
and all laws of the State of California and federal laws.

 

(b)       Each
Trustor Party hereby waives any rights it may have under Sections 2845 or 2850 of the California Civil Code, or otherwise, to
require Beneficiary to institute suit against, or to exhaust any rights or remedies which Beneficiary has or may have against,
any other Trustor Party or any third party, or against any collateral for the Obligations provided by Trustor or any third party.
In this regard, each Trustor Party agrees that it is bound to the payment of all Obligations, whether now existing or hereafter
accruing as fully as if such Obligations were directly owing to Beneficiary by each Trustor Party. Each Trustor Party further
waives any defense arising by reason of any disability or other defense (other than the defense that the Obligations shall have
been fully and finally performed and paid) of such Trustor Party or by reason of the cessation from any cause whatsoever of the
liability of such Trustor Party in respect thereof.

 

    	 	44	 

     

    

 

(c)       Each
Trustor Party hereby waives: (1) any rights to assert against Beneficiary any defense (legal or equitable), set-off, counterclaim,
or claim which any other Trustor Party may now or at any time hereafter have against any other Trustor Party or any other party
liable to Beneficiary; (2) any defense, set-off, counterclaim, or claim, of any kind or nature, arising directly or indirectly
from the present or future lack of perfection, sufficiency, validity, or enforceability of the Obligations or any security therefor;
and (3) any defense Trustor has to performance hereunder, and any right Trustor has to be exonerated, provided by Sections
2819, 2822, or 2825 of the California Civil Code, or otherwise, arising by reason of: any claim or defense based upon an election
of remedies by Beneficiary; the impairment or suspension of Beneficiary’s rights or remedies against Trustor; the alteration
by Beneficiary of the Obligations; any discharge of Trustor’s Obligations to Beneficiary by operation of law as a result
of Beneficiary’s intervention or omission; or the acceptance by Beneficiary of anything in partial satisfaction of the Obligations.

 

(d)       Each
Trustor Party hereby waives any right of subrogation it may have as against any other Trustor Party with respect to the Obligations.
In addition, each Trustor Party hereby waives any right to proceed against any other Trustor Party, now or hereafter, for contribution,
indemnity, reimbursement, and any other suretyship right and claims, whether direct or indirect, liquidated or contingent, whether
arising under express or implied contract or by operation of law, which any Trustor Patty may now have or hereafter have as against
any other Trustor Party with respect to the Obligations. Each Trustor Party also hereby waives any rights to recourse to or with
respect to any asset of any other Trustor Party. Each Trustor Party agrees that in light of the immediately foregoing waivers,
the execution of this Deed of Trust shall not be deemed to make each Trustor Party a “creditor” of any other Trustor
Party, and that for purposes of Sections 547 and 550 of the Bankruptcy Code each Trustor Party shall not be deemed a “creditor”
of any other Trustor Party. Notwithstanding the foregoing, the waivers set forth is this subsection 6.1(d) shall only apply
until the indefeasible Payment in Full of all obligations of Trustor under the Loan Documents and of all of the Obligations under
this Deed of Trust.

 

(e)       Each
Trustor Party waives all rights and defenses arising out of an election of remedies by Beneficiary, even though that election
of remedies, such as a non-judicial foreclosure with respect to security for the Obligations, has destroyed such Trustor Party’s
rights of subrogation and reimbursement against the principal by the operation of Section 580d of the California Code of Civil
Procedure (the “CCP”) or otherwise. Each Trustor Party acknowledges and agrees that, as a result of the foregoing
sentence, it is knowingly waiving in advance a complete or partial defense to this Deed of Trust arising under CCP Sections 580d
or 580a and based upon Beneficiary’s election to conduct a private non-judicial foreclosure sale, even though such election
would destroy, diminish, or affect such Trustor Party’s rights of subrogation against any other Trustor Party or any other
party and each such Trustor Party’s rights to pursue any other Trustor Party or such other party for reimbursement contribution,
indemnity, or otherwise.

 

(f)       WITHOUT
LIMITING THE GENERALITY OF ANY OTHER WAIVER OR OTHER PROVISION SET FORTH IN THIS DEED OF TRUST OR ANY OTHER AGREEMENT ENTERED
INTO WITH RESPECT TO THE LOAN DOCUMENTS, TRUSTOR HEREBY WAIVES AND AGREES NOT TO ASSERT ANY AND ALL BENEFITS OR DEFENSES ARISING
DIRECTLY OR INDIRECTLY UNDER ANY ONE OR MORE OF CALIFORNIA CIVIL CODE SECTIONS 2799, 2808, 2809, 2810, 2815, 2819, 2820, 2821,
2822, 2825, 2839, 2845, 2848, 2849, 2850, 2899 and 3433, AND CHAPTER 2 OF TITLE 14 OF THE CALIFORNIA CIVIL CODE.

 

[Signature
Page Follows]

 

    	 	45	 

     

    

 

IN
WITNESS WHEREOF, Trustor has, effective as of the Effective Date, caused this instrument to be duly EXECUTED AND DELIVERED
by authority duly given.

 

	 	TRUSTOR:
	 	 
	 	CADIZ
    INC., a Delaware corporation
	 	 
	 	By:	/s/
    Timothy J. Shaheen
	 	 	Name:	Timothy
    J. Shaheen
	 	 	Title:	Chief
                                         Financial Officer

 

Acknowledgment

 

	A
        notary public or other officer completing this certificate verifies only the identity of the individual who signed the
        document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 
STATE
                                         OF                    California       )

COUNTY
OF                Los Angeles  )

 

On
May 23, 2017 before me, Teffiny Bagnara, notary public (insert name and title of the officer), personally appeared Timothy J.
Shaheen, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I
certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS
my hand and official seal.

 

	/s/
    Teffiny Bagnara	 	 
	(Signature)	 	(Affix
    Seal)

 

[Signature Page to Deed of Trust]

 

     

     

    

 

IN
WITNESS WHEREOF, Trustor has, effective as of the Effective Date, caused this instrument to be duly EXECUTED AND DELIVERED
by authority duly given.

 

	 	TRUSTOR:
	 	 
	 	CADIZ REAL ESTATE LLC,
	 	a
    Delaware limited liability company
	 	 
	 	By:	/s/ Timothy J. Shaheen
	 	 	Name:	Timothy
    J. Shaheen
	 	 	Title:	Chief Financial Officer

 

Acknowledgment

 

	A
        notary public or other officer completing this certificate verifies only the identity of the individual who signed the
        document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 STATE
OF                    California       )

COUNTY
OF                Los Angeles  )

 

On
May 23, 2017 before me, Teffiny Bagnara, notary public (insert name and title of the officer), personally appeared Timothy J.
Shaheen who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I
certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS
my hand and official seal.

 

	/s/
    Teffiny Bagnara	 	 
	(Signature)	 	(Affix
    Seal)

 

[Signature Page to Deed of Trust]

 

     

     

    

 

IN
WITNESS WHEREOF, Trustor has, effective as of the Effective Date, caused this instrument to be duly EXECUTED AND DELIVERED
by authority duly given.

 

	 	TRUSTOR:
	 	 
	 	OCTAGON
    PARTNERS, LLC,
	 	a
    Delaware limited liability company
	 	 
	 	By:	/s/ Timothy J. Shaheen
	 	 	Name:	Timothy
    J. Shaheen
	 	 	Title:	Manager

 

Acknowledgment

 

	A
        notary public or other officer completing this certificate verifies only the identity of the individual who signed the
        document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

STATE
OF                    California       )

COUNTY
OF                Los Angeles  )

 

On
May 23, 2017 before me, Teffiny Bagnara, notary (insert name and title of the officer), personally appeared Timothy J. Shaheen,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I
certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS
my hand and official seal.

 

	/s/
    Teffiny Bagnara	 	 
	(Signature)	 	(Affix
    Seal)

 

[Signature Page to Deed of Trust]

 

    	 	 	 

     

    

 

EXHIBIT A

 

Description of Real Property

 

[Attached] 

 

     

     

    

  

DIVISION
A:

 

PARCEL
1:      (558-201-11)

 

ALL
OF SECTION 29, TOWNSHIP 6 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND.

 

PARCEL
2:       (558-201-13,14)

 

ALL
OF SECTION 33, TOWNSHIP 6 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND.

 

EXCEPTING
THEREFROM THE ABOVE PARCELS 1 AND 2 ALL RIGHT, TITLE AND INTEREST IN AND TO ALL MINERALS AND MINERAL RIGHTS, INCLUDING WITHOUT
LIMITATION, OIL, GAS AND OTHER HYDROCARBONS, COAL, GEOTHERMAL RESOURCES, PRECIOUS METAL ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES,
FISSIONABLE MATERIALS, SAND GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER
OR NOT PRESENTLY KNOWN TO SCIENCE OR INDUSTRY, NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE
AT WHICH ANY SUCH SUBSTANCES MAY BE FOUND; HOWEVER, GRANTOR, ITS SUCCESSORS AND ASSIGNS SHALL NOT HAVE THE RIGHT FOR ANY PURPOSE
WHATSOEVER TO ENTER UPON, INTO OR THROUGH THE SURFACE OF THE FIRST 300 FEET OF THE SUBSURFACE OF THE PROPERTY IN CONNECTION THEREWITH.
GRANTOR ACKNOWLEDGES AND AGREES THAT SAID MINERAL RESERVATION SHALL NOT BE DEEMED TO LIMIT THE RIGHT OF GRANTEE TO EXTRACT WATER
FROM THE PROPERTY WHICH MAY INCLUDE THE INCIDENTAL EXTRACTION OF MINERALS, SAND, GRAVEL OR OTHER MATERIAL IN CONNECTION WITH THE
EXTRACTION OF WATER, AS RESERVED BY SF PACIFIC PROPERTIES INC., A DELAWARE CORPORATION IN THE DEED RECORDED DECEMBER 26, 1996
AS INSTRUMENT NO. 96-472401 OFFICIAL RECORDS.

 

DIVISION
B:

 

PARCEL
3:      (658-131-02)

 

GOVERNMENT
TRACT 38, TOWNSHIP 11 NORTH, RANGE 20 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
AS PER GOVERNMENT RESURVEY DATED SEPTEMBER 29, 1924.

 

EXCEPTING
THEREFROM, ALL RIGHT, TITLE AND INTEREST IN AND TO ALL COAL, HYDROCARBONS, GEOTHERMAL RESOURCES, PRECIOUS METALS ORES, BASE METALS
ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MINERALS, SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY
KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY KNOWN TO SCIENCE OR INDUSTRY, NOW KNOW TO EXIST OR HEREAFTER
DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE
MAY BE FOUND; HOWEVER, GRANTOR OR ITS SUCCESSORS AND ASSIGNS, SHALL NOT HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON,
INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OR THE SUBSURFACE OF THE PROPERTY AS RESERVED BY SF PACIFIC PROPERTIES, INC.,
A DELAWARE CORPORATION, RECORDED JANUARY 6, 1993, AS INSTRUMENT NO. 93-000748, OFFICIAL RECORDS.

 

PARCEL
4:      (658-131-06)

 

GOVERNMENT
TRACT 42, TOWNSHIP 11 NORTH, RANGE 20 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO GOVERNMENT RESURVEY, DATED SEPTEMBER 29, 1924.

 

EXCEPTING
THEREFROM, ALL RIGHT, TITLE AND INTEREST IN AND TO ALL COAL, HYDROCARBONS, GEOTHERMAL RESOURCES, PRECIOUS METALS ORES, BASE METALS
ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MINERALS, SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY
KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY KNOWN TO SCIENCE OR INDUSTRY, NOW KNOW TO EXIST OR HEREAFTER
DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE
MAY BE FOUND; HOWEVER, GRANTOR OR ITS SUCCESSORS AND ASSIGNS, SHALL NOT HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON,
INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OR THE SUBSURFACE OF THE PROPERTY AS RESERVED BY SF PACIFIC PROPERTIES, INC.,
A DELAWARE CORPORATION, RECORDED JANUARY 6, 1993, AS INSTRUMENT NO. 93-000748, OFFICIAL RECORDS.

 

    A-1

     

    

 

PARCEL
5:      (568-341-07)

 

LOTS
1, 2, 3, 4 AND 5 AND THE NORTH 1/2 OF SECTION 29, TOWNSHIP 12 NORTH, RANGE 20 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY
OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO GOVERNMENT SURVEY.

 

EXCEPTING
THEREFROM, ALL RIGHT, TITLE AND INTEREST IN AND TO ALL COAL, HYDROCARBONS, GEOTHERMAL RESOURCES, PRECIOUS METALS ORES, BASE METALS
ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MINERALS, SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY
KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY KNOWN TO SCIENCE OR INDUSTRY, NOW KNOW TO EXIST OR HEREAFTER
DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE
MAY BE FOUND; HOWEVER, GRANTOR OR ITS SUCCESSORS AND ASSIGNS, SHALL NOT HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON,
INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OR THE SUBSURFACE OF THE PROPERTY AS RESERVED BY SF PACIFIC PROPERTIES, INC.,
A DELAWARE CORPORATION, RECORDED JANUARY 6, 1993, AS INSTRUMENT NO. 93-000748, OFFICIAL RECORDS.

 

PARCEL
6:       (568-341-04)

 

LOTS
1, 2 AND 3 AND THE EAST 1/2 AND THE EAST 1/2 OF THE WEST 1/2 AND THE SOUTHWEST 1/4 OF THE SOUTHWEST 1/4 OF SECTION 33, TOWNSHIP
12 NORTH, RANGE 20 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO
GOVERNMENT SURVEY.

 

EXCEPTING
THEREFROM, ALL RIGHT, TITLE AND INTEREST IN AND TO ALL COAL, HYDROCARBONS, GEOTHERMAL RESOURCES, PRECIOUS METALS ORES, BASE METALS
ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MINERALS, SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY
KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY KNOWN TO SCIENCE OR INDUSTRY, NOW KNOW TO EXIST OR HEREAFTER
DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAND LAND REGARDLESS OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE
MAY BE FOUND; HOWEVER, GRANTOR OR ITS SUCCESSORS AND ASSIGNS, SHALL NOT HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON,
INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OR THE SUBSURFACE OF THE PROPERTY AS RESERVED BY SF PACIFIC PROPERTIES, INC.,
A DELAWARE CORPORATION, RECORDED JANUARY 6, 1993, AS INSTRUMENT NO. 93-000748, OFFICIAL RECORDS.

 

PARCEL
7:      (658-141-04)

 

GOVERNMENT
TRACT 39, TOWNSHIP 11 NORTH, RANGE 20 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO GOVERNMENT RESURVEY DATED SEPTEMBER 29, 1924.

 

EXCEPTING
THEREFROM, ALL RIGHT, TITLE AND INTEREST IN AND TO ALL COAL, HYDROCARBONS, GEOTHERMAL RESOURCES, PRECIOUS METALS ORES, BASE METALS
ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MINERALS, SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY
KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY KNOWN TO SCIENCE OR INDUSTRY, NOW KNOW TO EXIST OR HEREAFTER
DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE
MAY BE FOUND; HOWEVER, GRANTOR OR ITS SUCCESSORS AND ASSIGNS, SHALL NOT HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON,
INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OR THE SUBSURFACE OF THE PROPERTY AS RESERVED BY SF PACIFIC PROPERTIES, INC.,
A DELAWARE CORPORATION, RECORDED JANUARY 6, 1993, AS INSTRUMENT NO, 93-000748, OFFICIAL RECORDS.

 

    A-2

     

    

 

PARCEL
8:      (659-061-16)

 

SECTION
13, TOWNSHIP 10 NORTH, RANGE 19 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO GOVERNMENT SURVEY. EXCEPTING THEREFROM, ALL RIGHT, TITLE AND INTEREST IN AND TO ALL COAL, HYDROCARBONS, GEOTHERMAL
RESOURCES, PRECIOUS METALS ORES, BASE METALS ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MINERALS, SAND, GRAVEL,
AGGREGATES, AND ALL OTHER MINERALS OF EVERY KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY KNOWN TO SCIENCE
OR INDUSTRY, NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS OF THE
DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE MAY BE FOUND; HOWEVER, GRANTOR OR ITS SUCCESSORS AND ASSIGNS, SHALL NOT HAVE
THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON, INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OF THE SUBSURFACE OF SAID
LAND AS RESERVED IN THE DEED FROM SF PACIFIC PROPERTIES INC., A DELAWARE CORPORATION, RECORDED SEPTEMBER 30, 1993 AS INSTRUMENT
NO. 93-419956, OFFICIAL RECORDS.

 

PARCEL
9:      (659-051-07)

 

SECTION
25, TOWNSHIP 10 NORTH, RANGE 19 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO GOVERNMENT SURVEY.

 

EXCEPTING
THEREFROM, ALL RIGHT, TITLE AND INTEREST IN AND TO ALL COAL, HYDROCARBONS, GEOTHERMAL RESOURCES, PRECIOUS METALS ORES, BASE METALS
ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MINERALS, SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY
KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY KNOWN TO SCIENCE OR INDUSTRY, NOW KNOWN TO EXIST OR HEREAFTER
DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE
MAY BE FOUND; HOWEVER, GRANTOR OR ITS SUCCESSORS AND ASSIGNS, SHALL NOT HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON,
INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OF THE SUBSURFACE OF SAID LAND AS RESERVED IN THE DEED FROM SF PACIFIC PROPERTIES
INC., A DELAWARE CORPORATION, RECORDED SEPTEMBER 30, 1993 AS INSTRUMENT NO. 93-419956, OFFICIAL RECORDS.

 

PARCEL
10:      (659-081-03)

 

SECTION
21, TOWNSHIP 10 NORTH, RANGE 20 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO GOVERNMENT SURVEY.

 

EXCEPTING
THEREFROM, ALL RIGHT, TITLE AND INTEREST IN AND TO ALL COAL, HYDROCARBONS, GEOTHERMAL RESOURCES, PRECIOUS METALS ORES, BASE METALS
ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MINERALS, SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY
KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY KNOWN TO SCIENCE OR INDUSTRY, NOW KNOWN TO EXIST OR HEREAFTER
DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE
MAY BE FOUND; HOWEVER, GRANTOR OR ITS SUCCESSORS AND ASSIGNS, SHALL NOT HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON,
INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OF THE SUBSURFACE OF SAID LAND AS RESERVED IN THE DEED FROM SF PACIFIC PROPERTIES
INC., A DELAWARE CORPORATION, RECORDED SEPTEMBER 30, 1993 AS INSTRUMENT NO. 93-419956, OFFICIAL RECORDS.

 

PARCEL
11:      (659-081-25,26)

 

SECTION
29, TOWNSHIP 10 NORTH, RANGE 20 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO GOVERNMENT SURVEY.

 

    A-3

     

    

 

EXCEPTING
THEREFROM, ALL RIGHT, TITLE AND INTEREST IN AND TO ALL COAL, HYDROCARBONS, GEOTHERMAL RESOURCES, PRECIOUS METALS ORES, BASE METALS
ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MINERALS, SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY
KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY KNOWN TO SCIENCE OR INDUSTRY, NOW KNOWN TO EXIST OR HEREAFTER
DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE
MAY BE FOUND; HOWEVER, GRANTOR OR ITS SUCCESSORS AND ASSIGNS, SHALL NOT HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON,
INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OF THE SUBSURFACE OF SAID LAND AS RESERVED IN THE DEED FROM SF PACIFIC PROPERTIES
INC., A DELAWARE CORPORATION, RECORDED SEPTEMBER 30, 1993 AS INSTRUMENT NO. 93-419956, OFFICIAL RECORDS.

 

EXCEPTING
THEREFROM THAT PORTION OF SECTION 29 CONVEYED TO THE CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY, A CORPORATION, BY DEED
RECORDED MARCH 16, 1914 IN BOOK 548, PAGE 29 OF DEEDS.

 

PARCEL
12:      (556-341-04)

 

PARCEL
4 OF PARCEL MAP NO. 10131, IN THE UNINCORPORATED AREA OF SAN BERNARDINO COUNTY, AS PER PLAT RECORDED IN BOOK 108, OF
PARCEL MAPS, PAGE 55, RECORDS OF SAID COUNTY.

 

PARCEL
13:      (556-311-14,16)

 

SECTIONS
32 AND 34, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
14:      (556-311-52)

 

THE
NORTHWEST ONE-QUARTER AND THE NORTHEAST ONE-QUARTER AND THE NORTH ONE-HALF OF THE SOUTHWEST ONE-QUARTER AND THE NORTH
ONE-HALF OF THE SOUTHEAST ONE-QUARTER OF SECTION 21, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY
OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
15:      (556-291-10,11)

 

ALL
OF SECTION 16, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM A RECTANGULAR PARCEL OF LAND IN THE NORTHEAST ONE-QUARTER OF THE SOUTHEAST ONE-QUARTER OF SAID SECTION 16 DESCRIBED
AS FOLLOWS:

 

BEGINNING
AT A POINT IN THE NORTHERN RIGHT OF WAY LINE OF THE CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY, DISTANT 86 FEET NORTHERLY,
AT RIGHT ANGLES FROM THE CENTER LINE OF WESTBOUND MAIN TRACT OF SAID RAILWAY COMPANY, SAID POINT BEING 546.1 FEET WESTERLY ALONG
SAID RIGHT OF WAY LINE FROM ITS INTERSECTION WITH THE EAST LINE OF SAID SECTION 16, DISTANT 365.6 FEET SOUTH ON SAID EAST LINE
FROM THE EAST 1/4 CORNER OF SAID SECTION; THENCE WESTERLY ALONG SAID RIGHT OF WAY LINE, 363 FEET; THENCE NORTHERLY AT RIGHT ANGLES,
120 FEET; THENCE EASTERLY, PARALLEL WITH SAID NORTHERN RIGHT OF WAY LINE, 363 FEET; THENCE SOUTHERLY AT RIGHT ANGLES, 120 FEET
TO THE POINT OF BEGINNING.

 

ALSO
EXCEPTING THEREFROM A RECTANGULAR PARCEL OF LAND IN THE NORTHEAST ONE-QUARTER OF THE SOUTHEAST ONE-QUARTER OF SECTION 16, TOWNSHIP
5 NORTH, RANGE 14 EAST, SAN BERNARDINO BASE AND MERIDIAN, DESCRIBED AS FOLLOWS:

 

    A-4

     

    

 

BEGINNING
AT A POINT IN THE NORTHERN RIGHT OF WAY LINE OF THE CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY, DISTANT 86 FEET NORTHERLY,
AT RIGHT ANGLES FROM THE CENTER LINE OF THE WESTBOUND MAIN TRACK OF SAID RAILWAY COMPANY, SAID POINT BEING DISTANT 183.1 FEET
WESTERLY ALONG SAID RIGHT OF WAY LINE FROM ITS INTERSECTION WITH THE EAST LINE OF SAID SECTION 16, DISTANT 165.6 FEET SOUTH ON
SAID EAST LINE FROM THE EAST 1/4 CORNER OF SAID SECTION: THENCE WESTERLY ALONG SAID RIGHT OF WAY LINE, 363 FEET TO THE SOUTHEAST
CORNER OF THE LAND CONVEYED BY W.F. ZIEGLER AND OLIVA M. ZIEGLER BY DEED RECORDED IN BOOK 677, PAGE 159, OFFICIAL RECORDS;
THENCE NORTHERLY AT RIGHT ANGLES ALONG THE EASTERLY LINE OF THE LAND CONVEYED BY DEED JUST REFERRED TO, 120 FEET; THENCE EASTERLY,
PARALLEL WITH SAID NORTHERN RIGHT OF WAY LINE, 363 FEET; THENCE SOUTHERLY AT RIGHT ANGLES, 120 FEET TO THE POINT OF BEGINNING.

 

ALSO
EXCEPTING THEREFROM:

 

FIRST:
A STRIP OF LAND, 50 FEET WIDE, LYING SOUTH OF AND ADJACENT TO THE SOUTHERN PACIFIC RAILWAY COMPANY’S 200-FOOT RIGHT
OF WAY THROUGH SECTION 16, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO BASE AND MERIDIAN.

 

SECOND:
A PIECE OR PARCEL OF LAND LYING IN THE SOUTHEAST ONE-QUARTER OF SAID SECTION 16, BOUNDED AND DESCRIBED AS FOLLOWS:

 

BEGINNING
AT A POINT IN THE SOUTHERLY BOUNDARY OF THE ABOVE DESCRIBED PIECE OF LAND, DISTANT 770 FEET WESTERLY ALONG SAID SOUTHERLY LINE
FROM THE EAST LINE OF SAID SECTION 16;

THENCE
SOUTHWESTERLY ALONG SAID SOUTHERLY LINE FROM THE EAST LINE OF SAID SECTION 16: THENCE SOUTHWESTERLY ON A CURVE CONCAVE SOUTHEASTERLY,
WITH A RADIUS OF 739.49 FEET, A DISTANCE OF 750 FEET; THENCE SOUTH 5° 24’ WEST, A DISTANCE OF 1481 FEET, MORE OR LESS,
TO A POINT IN THE SOUTH LINE OF SAID SECTION 16; THENCE WEST ALONG SAID SOUTH LINE, 50.2 FEET; THENCE NORTH 5° 24’ EAST,
A DISTANCE OF 2389 FEET; THENCE NORTHWESTERLY ON A CURVE CONCAVE SOUTHWESTERLY WITH A RADIUS OF 739.49 FEET, A DISTANCE OF 998
FEET, MORE OR LESS, TO A POINT IN THE SOUTHERLY BOUNDARY LINE OF THE ABOVE FIRST DESCRIBED PIECE OF LAND; THENCE EASTERLY ALONG
SAID SOUTHERLY BOUNDARY LINE, A DISTANCE OF 975 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

 

PARCEL
16:      (645-091-09)

 

THE
WEST HALF OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 12, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO BASE
AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM ONE-FOURTH OF ALL MINERALS, OIL, GAS, CARBON AND HYDROCARBON SUBSTANCES ON AND UNDER SAID LAND, AS RESERVED IN THE DEED
FROM HOMER S. KNOWLES, ET UX., RECORDED JANUARY 13, 1958 IN BOOK 4410 PAGE 475 OFFICIAL RECORDS.

 

ALSO
EXCEPTING THEREFROM ONE-FOURTH OF ALL MINERALS, OIL, GAS, CARBON AND HYDROCARBON SUBSTANCES ON AND UNDER SAID LAND, AS RESERVED
IN THE DEED FROM JOAN L. ZMINA, TRUSTEE, RECORDED OCTOBER 12, 1994 AS INSTRUMENT NO. 94-415289 OFFICIAL RECORDS.

 

PARCEL
17:      (645-121-06)

 

THE
NORTH 1/2 OF THE NORTHWEST 1/4 OF THE SOUTHEAST 1/4 OF SECTION 36, TOWNSHIP 2 NORTH, RANGE 18, EAST, SAN BERNARDINO MERIDIAN,
IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS CONTAINED IN SAID LAND, TOGETHER
WITH THE RIGHT TO DRILL FOR AND EXTRACT SUCH DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE, AND REMOVE SUCH DEPOSITS
OF OTHER MINERALS FROM SAID LAND, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF SAID LAND AS MAY BE REQUIRED THEREFOR, UPON,
COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES
CODE, AS RESERVED TO THE STATE OF CALIFORNIA, BY PATENT RECORDED APRIL 12, 1960, IN BOOK 5109, OF OFFICIAL RECORDS, PAGE 174.

 

    A-5

     

    

 

ALSO
EXCEPTING THEREFROM A STRIP OF LAND 200 FEET IN WIDTH IN THE SOUTHEAST QUARTER OF SECTION 36, TOWNSHIP 2 NORTH, RANGE 18 EAST,
SAN BERNARDINO BASE AND MERIDIAN, LYING 100 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTER LINE, EXTENDED:

 

BEGINNING
AT A POINT ON THE SOUTH LINE OF SAID SECTION 36, SAID POINT BEING LOCATED NORTH 46° 03’ WEST 45,738.1 FEET FROM THE
SOUTHEAST CORNER OF SECTION 36, TOWNSHIP 1 NORTH, RANGE 19 EAST, SAN BERNARDINO MERIDIAN; THENCE NORTH 47° 57’ WEST
2500 FEET, MORE OR LESS, TO A POINT ON THE WEST LINE THE SOUTHEAST QUARTER OF SECTION 36, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN
BERNARDINO MERIDIAN, AS GRANTED TO THE ARIZONA AND CALIFORNIA RAILWAY COMPANY BY PERMIT DATED FEBRUARY 4, 1910, EXECUTED BY THE
SURVEYOR GENERAL OF THE STATE OF CALIFORNIA PURSUANT TO SECTION 478 OF THE CALIFORNIA CIVIL CODE.

 

PARCEL
18:      (645-271-03)

 

THE
NORTH 1/2 OF THE NORTHWEST 1/4 OF THE NORTHWEST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN
THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS CONTAINED IN SAID LAND, TOGETHER
WITH THE RIGHT TO DRILL FOR AND EXTRACT DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE, AND REMOVE SUCH DEPOSITS OF
OTHER MINERALS FROM SAID LAND, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF SAID LAND AS MAY BE REQUIRED THEREFOR, UPON, COMPLIANCE
WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES CODE,
AS RESERVED TO THE STATE OF CALIFORNIA, BY PATENT RECORDED APRIL 12, 1960, IN BOOK 5109, OF OFFICIAL RECORDS, PAGE 174.

 

ALSO
EXCEPT THOSE PORTIONS OF A STRIP OF LAND 400 FEET IN WIDTH WHICH ARE LOCATED WITHIN THE NORTHWEST QUARTER AND THE SOUTHWEST QUARTER
OF THE SOUTHWEST QUARTER OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, CONTAINED BETWEEN TWO LINES
DRAWN FROM THE NORTH LINE OF SAID SECTION 16, TO THE SOUTH LINE OF SAID SECTION 16, ONE LINE BEING LOCATED 70 FEET NORTHWESTERLY
FROM AND THE OTHER LINE BEING LOCATED 330 FEET SOUTHEASTERLY FROM AND BOTH LINES BEING PARALLEL TO THE FOLLOWING DESCRIBED LINE,
EXTENDED:

 

BEGINNING
AT A POINT ON THE NORTH LINE OF SAID SECTION 16, SAID POINT BEING LOCATED SOUTH 89° 42’ 40” EAST 1112.42 FEET
FROM THE NORTHWEST CORNER OF SAID SECTION 16; THENCE SOUTH 11° 10’ 04” WEST 5348.94 FEET, MORE OR LESS, TO A POINT
ON THE SOUTH LINE OF SAID SECTION WHICH IS LOCATED SOUTH 89° 14’ 56” EAST 147.60 FEET FROM THE SOUTHWEST CORNER
OF SAID SECTION 16, AS GRANTED TO THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA BY INSTRUMENT DATED SEPTEMBER 15, 1934,
EXECUTED ON BEHALF OF THE STATE OF CALIFORNIA BY THE CHIEF OF THE DIVISION OF STATE LANDS PURSUANT TO THE PROVISIONS OF CHAPTER
507 OF THE STATUTES OF CALIFORNIA, 1933.

 

PARCEL
19:      (645-271-11)

 

THE
NORTH 1/2 OF THE SOUTHWEST 1/4 OF THE NORTHWEST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN
THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS CONTAINED IN SAID LAND, TOGETHER
WITH THE RIGHT TO DRILL FOR AND EXTRACT SUCH DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE, AND REMOVE SUCH DEPOSITS
OF OTHER MINERALS FROM SAID LAND, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF SAID LAND AS MAY BE REQUIRED THEREFOR, UPON,
COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES
CODE, AS RESERVED TO THE STATE OF CALIFORNIA, BY PATENT RECORDED APRIL 12, 1960, IN BOOK 5109, OF OFFICIAL RECORDS, PAGE 174.

 

    A-6

     

    

 

ALSO
EXCEPT THOSE PORTIONS OF A STRIP OF LAND 400 FEET IN WIDTH WHICH ARE LOCATED WITHIN THE NORTHWEST QUARTER AND THE SOUTHWEST QUARTER
OF THE SOUTHWEST QUARTER OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, CONTAINED BETWEEN TWO LINES
DRAWN FROM THE NORTH LINE OF SAID SECTION 16, TO THE SOUTH LINE OF SAID SECTION 16, ONE LINE BEING LOCATED 70 FEET NORTHWESTERLY
FROM AND THE OTHER LINE BEING LOCATED 330 FEET SOUTHEASTERLY FROM THE BOTH LINES BEING PARALLEL TO THE FOLLOWING DESCRIBED LINE,
EXTENDED:

 

BEGINNING
AT A POINT ON THE NORTH LINE OF SAID SECTION 16, SAID POINT BEING LOCATED SOUTH 89° 42’ 40” EAST 1112.42 FEET
FROM THE NORTHWEST CORNER OF SAID SECTION 16; THENCE SOUTH 110 10’ 04” WEST 5348.94 FEET, MORE OR LESS, TO A POINT
ON THE SOUTH LINE OF SAID SECTION WHICH IS LOCATED SOUTH 89° 14’ 56” EAST 147.60 FEET FROM THE SOUTHWEST CORNER
OF SAID SECTION 16, AS GRANTED TO THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA BY INSTRUMENT DATED SEPTEMBER 15, 1934,
EXECUTED ON BEHALF OF THE STATE OF CALIFORNIA BY THE CHIEF OF THE DIVISION OF STATE LANDS PURSUANT TO THE PROVISIONS OF CHAPTER
507 OF THE STATUTES OF CALIFORNIA, 1933.

 

ALSO
EXCEPT THOSE PORTIONS OF A STRIP OF LAND 200 FEET IN WIDTH WHICH ARE LOCATED WITHIN THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER
AND THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, LYING
100 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTER LINE EXTENDED:

 

BEGINNING
AT A POINT ON THE SOUTH LINE OF SAID SECTION 16, SAID POINT BEING LOCATED NORTH 46° 42” WEST 69,424.5 FEET FROM THE
SOUTHEAST CORNER OF SECTION 36, TOWNSHIP 1 NORTH, RANGE 19 EAST, SAN BERNARDINO MERIDIAN;

 

THENCE
NORTH 47° 57’ WEST 3879.8 FEET, MORE OR LESS, TO A POINT ON THE WEST LINE OF SAID SECTION 16, AS GRANTED TO THE ARIZONA
AND CALIFORNIA RAILWAY COMPANY BY PERMIT DATED FEBRUARY 4, 1910, EXECUTED BY THE SURVEYOR GENERAL OF THE STATE OF CALIFORNIA PURSUANT
TO SECTION 478 OF THE CALIFORNIA CIVIL CODE.

 

PARCEL
20:      (645-271-13)

 

THE
NORTH 1/2 OF THE SOUTHWEST 1/4 OF THE NORTHEAST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN
THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS CONTAINED IN SAID LAND, TOGETHER
WITH THE RIGHT TO DRILL FOR AND EXTRACT SUCH DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE, AND REMOVE DEPOSITS OF
OTHER MINERALS FROM SAID LAND, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF SAID LAND AS MAY BE REQUIRED THEREFOR, UPON, COMPLIANCE
WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES CODE,
AS RESERVED TO THE STATE OF CALIFORNIA, BY PATENT RECORDED APRIL 12, 1960, IN BOOK 5109, OF OFFICIAL RECORDS, PAGE 174.

 

PARCEL
21:      (645-271-23)

 

THE
NORTH 1/2 OF THE SOUTHWEST 1/4 OF THE SOUTHWEST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN
THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS CONTAINED IN SAID LAND, TOGETHER
WITH THE RIGHT TO DRILL FOR AND EXTRACT SUCH DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE, AND REMOVE SUCH DEPOSITS
OF OTHER MINERALS FROM SAID LAND, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF SAID LAND AS MAY BE REQUIRED THEREFOR, UPON,
COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES
CODE, AS RESERVED TO THE STATE OF CALIFORNIA, BY PATENT RECORDED APRIL 12, 1960, IN BOOK 5109, OF OFFICIAL RECORDS, PAGE 174.

 

    A-7

     

    

 

ALSO
EXCEPT THOSE PORTIONS OF A STRIP OF LAND 400 FEET IN WIDTH WHICH ARE LOCATED WITHIN THE NORTHWEST QUARTER AND THE SOUTHWEST QUARTER
OF THE SOUTHWEST QUARTER OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, CONTAINED BETWEEN TWO LINES
DRAWN FROM THE NORTH LINE OF SAID SECTION 16, TO THE SOUTH LINE OF SAID SECTION 16, ONE LINE BEING LOCATED 70 FEET NORTHWESTERLY
FROM AND THE OTHER LINE BEING LOCATED 330 FEET SOUTHEASTERLY FROM AND BOTH LINES BEING PARALLEL TO THE FOLLOWING DESCRIBED LINE,
EXTENDED:

 

BEGINNING
AT A POINT ON THE NORTH LINE OF SAID SECTION 16, SAID POINT BEING LOCATED SOUTH 89° 42 40” EAST 1112.42 FEET FROM THE
NORTHWEST CORNER OF SAID SECTION 16; THENCE SOUTH 11° 10’ 04” WEST 5348.94 FEET, MORE OR LESS, TO A POINT ON THE
SOUTH LINE OF SAID SECTION WHICH IS LOCATED SOUTH 89° 14’ 56” EAST 147.60 FEET FROM THE SOUTHWEST CORNER OF SAID
SECTION 16, AS GRANTED TO THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA BY INSTRUMENT DATED SEPTEMBER 15, 1934, EXECUTED
ON BEHALF OF THE STATE OF CALIFORNIA BY THE CHIEF OF THE DIVISION OF STATE LANDS PURSUANT TO THE PROVISIONS OF CHAPTER 507 OF
THE STATUTES OF CALIFORNIA, 1933.

 

PARCEL
22:      (645-121-05)

 

THE
NORTH 1/2 OF THE NORTHEAST 1/4 OF THE SOUTHEAST 1/4 OF SECTION 36, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN
THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS CONTAINED IN SAID LAND, TOGETHER
WITH THE RIGHT TO DRILL FOR AND EXTRACT SUCH DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE, AND REMOVE SUCH DEPOSITS
OF OTHER MINERALS FROM SAID LAND, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF SAID LAND AS MAY BE REQUIRED THEREFOR, UPON,
COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES
CODE, AS RESERVED TO THE STATE OF CALIFORNIA, BY PATENT RECORDED APRIL 12, 1960, IN BOOK 5109, OF OFFICIAL RECORDS, PAGE 174.

 

PARCEL
23:      (645-121-09)

 

THE
NORTH 1/2 OF THE SOUTHEAST 1/4 OF THE SOUTHEAST 1/4 OF SECTION 36, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN
THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS CONTAINED IN SAID LAND, TOGETHER
WITH THE RIGHT TO DRILL FOR AND EXTRACT SUCH DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE, AND REMOVE SUCH DEPOSITS
OF OTHER MINERALS FROM SAID LAND, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF SAID LAND AS MAY BE REQUIRED THEREFOR, UPON,
COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES
CODE, AS RESERVED TO THE STATE OF CALIFORNIA, BY PATENT RECORDED APRIL 12, 1960, IN BOOK 5109, OF OFFICIAL RECORDS, PAGE 174.

 

ALSO
EXCEPTING THEREFROM A STRIP OF LAND 200 FEET IN WIDTH IN THE SOUTHEAST QUARTER OF SECTION 36, TOWNSHIP 2 NORTH, RANGE 18 EAST,
SAN BERNARDINO BASE AND MERIDIAN, LYING 100 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTER LINE, EXTENDED:

 

BEGINNING
AT A POINT ON THE SOUTH LINE OF SAID SECTION 16, SAID POINT BEING LOCATED NORTH 46° 03’ WEST 45,738,1 FEET FROM THE
SOUTHEAST CORNER OF SECTION 36, TOWNSHIP 1 NORTH, RANGE 19 EAST, SAN BERNARDINO MERIDIAN; THENCE NORTH 47° 57’ WEST
2500 FEET, MORE OR LESS, TO A POINT ON THE WEST LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 36, TOWNSHIP 2 NORTH, RANGE 18 EAST,
SAN BERNARDINO MERIDIAN, AS GRANTED TO THE ARIZONA AND CALIFORNIA RAILWAY COMPANY BY PERMIT DATED FEBRUARY 4, 1910, EXECUTED BY
THE SURVEYOR GENERAL OF THE STATE OF CALIFORNIA PURSUANT TO SECTION 478 OF THE CALIFORNIA CIVIL CODE.

 

    A-8

     

    

 

PARCEL
24:      (645-271-07)

 

THE
SOUTH 1/2 OF THE NORTHEAST 1/4 OF THE NORTHEAST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN
THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS CONTAINED IN SAID LAND, TOGETHER
WITH THE RIGHT TO DRILL FOR AND EXTRACT SUCH DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE, AND REMOVE SUCH DEPOSITS
OF OTHER MINERALS FROM SAID LAND, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF SAID LAND AS MAY BE REQUIRED THEREFOR, UPON,
COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES
CODE, AS RESERVED TO THE STATE OF CALIFORNIA, BY PATENT RECORDED APRIL 12, 1960, IN BOOK 5109, OF OFFICIAL RECORDS, PAGE 174.

 

PARCEL
25:      (645-271-15)

 

THE
SOUTH 1/2 OF THE SOUTHEAST 1/4 OF THE NORTHEAST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN
THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS CONTAINED IN SAID LAND, TOGETHER
WITH THE RIGHT TO DRILL FOR AND EXTRACT SUCH DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE, AND REMOVE SUCH DEPOSITS
OF OTHER MINERALS FROM SAID LAND, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF SAID LAND AS MAY BE REQUIRED THEREFOR, UPON,
COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES
CODE, AS RESERVED TO THE STATE OF CALIFORNIA, BY PATENT RECORDED APRIL 12, 1960, IN BOOK 5109, OF OFFICIAL RECORDS, PAGE 174.

 

PARCEL
26:      (645-271-08)

 

THE
SOUTH 1/2 OF THE NORTHWEST 1/4 OF THE NORTHEAST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN
THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS CONTAINED IN SAID LAND, TOGETHER
WITH THE RIGHT TO DRILL FOR AND EXTRACT SUCH DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE, AND REMOVE SUCH DEPOSITS
OF OTHER MINERALS FROM SAID LAND, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF SAID LAND AS MAY BE REQUIRED THEREFOR, UPON,
COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES
CODE, AS RESERVED TO THE STATE OF CALIFORNIA, BY PATENT RECORDED APRIL 12, 1960, IN BOOK 5109, OF OFFICIAL RECORDS, PAGE 174.

 

PARCEL
27:      (645-271-05)

 

THE
NORTH 1/2 OF THE NORTHWEST 1/4 OF THE NORTHEAST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN
THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS CONTAINED IN SAID LAND, TOGETHER
WITH THE RIGHT TO DRILL FOR AND EXTRACT SUCH DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE, AND REMOVE SUCH DEPOSITS
OF OTHER MINERALS FROM SAID LAND, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF SAID LAND AS MAY BE REQUIRED THEREFOR, UPON,
COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES
CODE, AS RESERVED TO THE STATE OF CALIFORNIA, BY PATENT RECORDED APRIL 12, 1960, IN BOOK 5109, OF OFFICIAL RECORDS, PAGE 174.

 

    A-9

     

    

 

PARCEL
28:      (645-071-18)

 

ALL
OF SECTION 36, TOWNSHIP 3 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO GOVERNMENT SURVEY.

 

EXCEPTING
THEREFROM ALL MINERALS AND MINERAL DEPOSITS, INCLUDING, BUT NOT LIMITED TO, OIL AND GAS, OTHER GASES, INCLUDING BUT NOT LIMITED
TO NONHYDROCARBON AND GEOTHERMAL GASES, OIL SHALE, COAL, PHOSPHATE, ALUMINA, SILICA, FOSSILS OF ALL GEOLOGICAL AGES, SODIUM, GOLD,
SILVER, METALS AND THEIR COMPOUNDS, ALKALI, ALKALI EARTH, SAND, CLAY, GRAVEL, SALTS AND MINERAL WATERS, URANIUM, TRONA, AND GEOTHERMAL
RESOURCES, TOGETHER WITH THE RIGHT OF THE STATE OR PERSONS AUTHORIZED BY THE STATE TO PROSPECT FOR, DRILL FOR, EXTRACT, MINE AND
REMOVE SUCH DEPOSITS OR RESOURCES, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF THE LANDS AS MAY BE NECESSARY THEREFOR, AS
RESERVED IN THE PATENT FROM THE STATE OF CALIFORNIA, RECORDED MARCH 21, 1995 AS INSTRUMENT NO. 95-085121, OFFICIAL RECORDS.

 

PARCEL
29:      (645-091-10)

 

THE
EAST ONE-HALF OF THE NORTHWEST ONE-QUARTER OF THE NORTHWEST ONE-QUARTER SECTION 12, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO
BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM ONE-QUARTER OF ALL MINERALS, OIL, GAS, CARBONS AND HYDROCARBON SUBSTANCES ON AND UNDER SAID LAND, AS RESERVED IN THE
DEED FROM HOMER S. KNOWLES, ETUX, RECORDED JANUARY 16, 1958 IN BOOK 4414 PAGE 237 OFFICIAL RECORDS.

 

ALSO
EXCEPTING THEREFROM ONE-FOURTH OF ALL MINERALS, OIL, GAS, CARBONS AND HYDROCARBON SUBSTANCES ON AND UNDER SAID LAND, AS RESERVED
IN THE DEED FROM CAROL 0. ALLEN, ET AL., RECORDED OCTOBER 7, 1994 AS INSTRUMENT NO. 94-411051 OFFICIAL RECORDS.

 

PARCEL
30:      (645-091-06)

 

THE
NORTH HALF OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER, SECTION 12, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO BASE
AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM 50% OF ALL OIL, GAS, MINERAL, URANIUM, AND OTHER HYDROCARBON SUBSTANCES IN AND UNDER SAID LAND, AS RESERVED IN THE DEED
RECORDED JUNE 7, 1962, IN BOOK 5712, PAGE 338, OFFICIAL RECORDS.

 

PARCEL
31:      (645-271-06)

 

THE
NORTH 1/2 OF THE NORTHEAST 1/4 OF THE NORTHEAST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO BASE AND MERIDIAN.

 

EXCEPTING
THEREFROM ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS, CONTAINED IN SAID LANDS,
AND FURTHER RESERVING TO THE STATE OF CALIFORNIA AND PERSONS AUTHORIZED BY THE STATE, THE RIGHT TO DRILL FOR AND EXTRACT SUCH
DEPOSITS OF OIL AND GAS, OR GAS AND TO PROSPECT FOR, MINE AND REMOVE SUCH DEPOSITS OF OTHER MINERALS FROM SAID LANDS AND TO OCCUPY
AND USE SO MUCH OF THE SURFACE OF SAID LANDS AS MAY BE REQUIRED THEREFOR, UPON COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE
PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES CODE, AS RESERVED IN THE PATENT RECORDED APRIL
12, 1960 IN BOOK 5109, PAGE 174, OFFICIAL RECORDS.

 

    A-10

     

    

 

PARCEL
32:      (645-271-18)

 

THE
SOUTH 1/2 OF THE SOUTHWEST 1/4 OF THE NORTHWEST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO BASE AND MERIDIAN.

 

EXCEPTING
THEREFROM THOSE PORTIONS OF A STRIP OF LAND 400 FEET IN WIDTH WHICH ARE LOCATED WITHIN THE NORTHWEST 1/4 AND THE SOUTHWEST 1/4
OF THE SOUTHWEST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO BASE AND MERIDIAN, CONTAINED BETWEEN TWO LINES
DRAWN FROM THE NORTH LINE OF SAID SECTION 16 TO THE SOUTH LINE OF SAID SECTION 16, ONE BEING LOCATED 70 FEET NORTHWESTERLY FROM
AND THE OTHER LINE BEING LOCATED 330 FEET SOUTHWESTERLY FROM AND BOTH LINES BEING PARALLEL TO THE FOLLOWING DESCRIBED LINE, EXTENDED:

 

BEGINNING
AT A POINT ON THE NORTH LINE OF SAID SECTION 16, SAID POINT BEING LOCATED SOUTH 89° 42’ 40” EAST, 1112.42 FEET
FROM THE NORTHWEST CORNER OF SAID SECTION 16; THENCE SOUTH 11° 10’ 04” WEST, 5348.94 FEET, MORE OR LESS, TO A
POINT ON THE SOUTH LINE OF SAID SECTION, WHICH IS LOCATED SOUTH 89° 14’ 56” EAST, 147.60 FEET FROM THE SOUTHWEST
CORNER OF SAID SECTION 16, AS GRANTED TO THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, BY INSTRUMENT DATED SEPTEMBER
15, 1934, RECORDED SEPTEMBER 26, 1954 IN BOOK 996, PAGE 160, OFFICIAL RECORDS, EXECUTED ON BEHALF OF THE STATE OF CALIFORNIA
BY THE CHIEF OF THE DIVISION OF STATE LANDS PURSUANT TO THE PROVISIONS OF CHAPTER 507 OF THE STATUTES OF CALIFORNIA, 1933.

 

EXCEPTING
THEREFROM ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS, CONTAINED IN SAID LANDS,
AND FURTHER RESERVING TO THE STATE OF CALIFORNIA AND PERSONS AUTHORIZED BY THE STATE, THE RIGHT TO DRILL FOR AND EXTRACT SUCH
DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE AND REMOVE SUCH DEPOSITS OF OTHER MINERALS FROM SAID LANDS AND TO OCCUPY
AND USE SO MUCH OF THE SURFACE OF SAID LANDS AS MAY BE REQUIRED THEREFOR, UPON COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE
PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES CODE, AS RESERVED IN THE PATENT RECORDED APRIL
12, 1960 IN BOOK 5109, PAGE 174, OFFICIAL RECORDS.

 

PARCEL
33:      (645-271-10)

 

THE
SOUTH 1/2 OF THE NORTHWEST 1/4 OF THE NORTHWEST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO BASE AND MERIDIAN.

 

EXCEPTING
THEREFROM THOSE PORTIONS OF A STRIP OF LAND 400 FEET IN WIDTH WHICH ARE LOCATED WITHIN THE NORTHWEST 1/4 AND THE SOUTHWEST 1/4
OF THE SOUTHWEST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO BASE AND MERIDIAN, CONTAINED BETWEEN TWO LINES
DRAWN FROM THE NORTH LINE OF SAID SECTION 16 TO THE SOUTH LINE OF SAID SECTION 16, ONE LINE BEING LOCATED 70 FEET NORTHWESTERLY
FROM AND THE OTHER BEING LOCATED 330 FEET SOUTHWESTERLY FROM AND BOTH LINES BEING PARALLEL TO THE FOLLOWING DESCRIBED LINE, EXTENDED:

 

BEGINNING
AT A POINT ON THE NORTH LINE OF SAID SECTION 16, SAID POINT BEING LOCATED SOUTH 89° 42 40” EAST, 1112.42 FEET FROM THE
NORTHWEST CORNER OF SAID SECTION 16; THENCE SOUTH 11° 10’ 04” WEST, 5348.94 FEET, MORE OR LESS, TO A POINT ON
THE SOUTH LINE OF SAID SECTION, WHICH IS LOCATED SOUTH 89° 14’ 56” EAST, 147,60 FEET FROM THE SOUTHWEST CORNER
OF SAID SECTION 16, AS GRANTED TO THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, BY INSTRUMENT DATED SEPTEMBER 15, 1934,
RECORDED SEPTEMBER 26, 1954 IN BOOK 996, PAGE 160, OFFICIAL RECORDS EXECUTED ON BEHALF OF THE STATE OF CALIFORNIA BY THE
CHIEF OF THE DIVISION OF STATE LANDS PURSUANT TO THE PROVISIONS OF CHAPTER 507 OF THE STATUTES OF CALIFORNIA, 1933.

 

FURTHER
EXCEPTING THEREFROM THOSE PORTIONS OF A STRIP OF LAND 200 FEET IN WIDTH WHICH ARE LOCATED WITHIN THE SOUTHWEST 1/4 OF THE NORTHWEST
1/4 AND THE SOUTHWEST 1/4 OF THE SOUTHEAST 1/4 OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO BASE AND MERIDIAN,
LYING 100 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTER LINE, EXTENDED:

 

BEGINNING
AT A POINT ON THE SOUTH LINE OF SAID SECTION 16, SAID POINT BEING LOCATED NORTH 46° 42’ WEST, 69,424.5 FEET FROM THE
SOUTHEAST CORNER OF SECTION 36, TOWNSHIP 1 NORTH, RANGE 19 EAST, SAN BERNARDINO BASE AND MERIDIAN; THENCE NORTH 47° 57’
WEST, 3879,8 FEET, MORE OR LESS, TO A POINT ON THE WEST LINE OF SAID SECTION 16, AS GRANTED TO THE ARIZONA AND CALIFORNIA RAILWAY
COMPANY BY PERMIT DATED FEBRUARY 4, 1910, EXECUTED BY THE SURVEYOR GENERAL OF THE STATE OF CALIFORNIA, PURSUANT TO SECTION 478
OF THE CALIFORNIA CIVIL CODE.

 

    A-11

     

    

 

EXCEPTING
THEREFROM ALL OIL, GAS, OIL, SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS, CONTAINED IN SAID LANDS,
AND FURTHER RESERVING TO THE STATE OF CALIFORNIA AND PERSONS AUTHORIZED BY THE STATE, THE RIGHT TO DRILL FOR AND EXTRACT SUCH
DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE AND REMOVE SUCH DEPOSITS OF OTHER MINERALS FROM SAID LANDS AND TO OCCUPY
AND USE SO MUCH OF THE SURFACE OF SAID LANDS AS MAY BE REQUIRED THEREFOR, UPON COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE
PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES CODE, AS RESERVED IN THE PATENT RECORDED APRIL
12, 1960 IN BOOK 5109, PAGE 174, OFFICIAL RECORDS.

 

PARCEL
34:      (645-101-04)

 

THE
NORTH ONE-HALF OF THE NORTHEAST ONE-QUARTER OF SECTION 23, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY
OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
35:      (645-271-16)

 

THE
SOUTH HALF OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 16, TOWNSHIP 2 NORTH, RANGE 18 EAST, SAN BERNARDINO MERIDIAN,
IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF ON FILE IN THE DISTRICT LAND OFFICE.

 

EXCEPT
THEREFROM ALL OIL, GAS, OIL SHALE, COAL, PHOSPHATE, SODIUM, GOLD, SILVER AND ALL OTHER MINERAL DEPOSITS, CONTAINED IN SAID LAND,
AND FURTHER RESERVING TO THE STATE OF CALIFORNIA AND PERSONS AUTHORIZED BY THE STATE, THE RIGHT TO DRILL FOR AND EXTRACT SUCH
DEPOSITS OF OIL AND GAS, OR GAS, AND TO PROSPECT FOR, MINE AND REMOVE SUCH DEPOSITS OF OTHER MINERALS FROM SAID LANDS AND TO OCCUPY
AND USE SO MUCH OF THE SURFACE OF SAID LANDS AS MAY BE REQUIRED THEREFOR, UPON COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE
PROVISIONS AND LIMITATIONS OF CHAPTER 5, PART I, DIVISION 6 OF THE PUBLIC RESOURCES CODE, AS RESERVED IN THE PATENT RECORDED APRIL
12, 1960, IN BOOK 5109, PAGE 174, OFFICIAL RECORDS.

 

DIVISION
C:

 

PARCEL
36:      (556-271-06)

 

SECTION
1, TOWNSHIP 5 NORTH, RANGE 13 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
37:      (556-271-25, 26)

 

SECTION
13, TOWNSHIP 5 NORTH, RANGE 13 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

EXCEPT
THEREFROM THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA, AND SANTA FE RAILWAY COMPANY BY DEED RECORDED MARCH 16, 1914 IN BOOK
548, OF DEEDS, PAGE 29.

 

ALSO
EXCEPT THEREFROM THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY BY DEED RECORDED NOVEMBER 26, 1913
IN BOOK 542 OF DEEDS, PAGE 1.

 

PARCEL
38:      (556-321-18)

 

SECTION
13, TOWNSHIP 4 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

    A-12

     

    

 

PARCEL
39:      (556-281-02,12)

 

SECTIONS
5 AND 9, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
40:      (556-301-06,07)

 

SECTION
13, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

EXCEPT
THEREFROM THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA, AND SANTA FE RAILWAY COMPANY BY DEED RECORDED MARCH 16, 1914 IN BOOK
548, OF DEEDS, PAGE 29. ALSO EXCEPT THEREFROM THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY BY
DEED RECORDED NOVEMBER 26, 1913 IN BOOK 542, OF DEEDS, PAGE 1.

 

ALSO
EXCEPT THEREFROM THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY BY DEED RECORDED AUGUST 8, 1936 IN
BOOK 1155, PAGE 155 OF OFFICIAL RECORDS.

 

PARCEL
41:      (556-311-17,41)

 

SECTIONS
25 AND 35, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF. EXCEPT FROM SAID SECTION 25 THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA, AND SANTA FE RAILWAY COMPANY
BY DEED RECORDED JULY 18, 1914, IN BOOK 554 OF DEEDS, PAGE 155.

 

PARCEL
42:      (653-021-14)

 

SECTION
17, TOWNSHIP 4 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
43:      (653-041-23,24)

 

SECTION
5, TOWNSHIP 5 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO
THE OFFICIAL PLAT THEREOF.

 

EXCEPT
THEREFROM THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY BY DEED RECORDED MARCH 16, 1914 IN BOOK
548, OF DEEDS, PAGE 29.

 

PARCEL
44:      (653-041-10)

 

THE
NORTH ONE-HALF AND THE WEST ONE-HALF OF THE WEST ONE-HALF OF THE NORTHWEST ONE-QUARTER OF THE SOUTHWEST ONE-QUARTER AND THE NORTHEAST
ONE-QUARTER OF THE SOUTHEAST ONE-QUARTER AND THE SOUTHWEST ONE-QUARTER OF THE SOUTHEAST ONE-QUARTER AND THE EAST ONE-HALF OF THE
NORTHWEST ONE-QUARTER OF THE SOUTHEAST ONE-QUARTER. AND THE EAST ONE-HALF OF THE WEST ONE-HALF OF THE NORTHWEST ONE-QUARTER OF
THE SOUTHEAST ONE-QUARTER OF ALL IN SECTION 9, TOWNSHIP 5 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN
BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM ALL MINERALS AND MINERAL RIGHTS, INTERESTS, AND ROYALTIES, INCLUDING, WITHOUT LIMITING THE GENERALITY THEREOF, ALL OIL
GAS AND OTHER HYDROCARBON SUBSTANCES, AS WELL AS ALL GEOTHERMAL RESOURCES, AND METALLIC OR OTHER SOLID MINERALS, TOGETHER WITH
THE EXCLUSIVE AND PERPETUAL RIGHT OF GRANTOR, ITS SUCCESSORS, ASSIGNS AND LESSEES, OF INGRESS AND EGRESS IN, UPON AND OVER SAID
LAND TO EXPLORE FOR, EXTRACT, STORE, REFINE, PROCESS, AND REMOVE THE SAME, AND MAKE SUCH USE OF SAID LAND AS IS NECESSARY OR USEFUL
IN CONNECTION THEREWITH, TOGETHER WITH THE RIGHT TO USE SUCH WATER AS MAY BE FOUND ON OR BENEATH SAID LAND FOR EXTRACTION OR PROCESS
ION OF SUCH MINERALS AS MAY BE FOUND THEREON. GRANTOR COVENANTS AND AGREES THAT IT WILL COMPENSATE THE OWNER OF THE SURFACE OF
SAID LAND FOR SUCK PORTION THEREOF AS MAY BE TAKEN OR DAMAGED BY EXERCISE OF THE RIGHTS RETAINED BY GRANTOR, SUCH COMPENSATION
TO BE AN AMOUNT EQUAL TO THE DIMINUTION OF THE FAIR MARKET VALUE OF SAID SURFACE ESTATE SO TAKEN OR DAMAGED, WHICH IN THE ABSENCE
OF AGREEMENT, SHALL BE DETERMINED BY THE SUPERIOR COURT OF THE COUNTY IN WHICH SAID LAND IS LOCATED, IN THE MANNER PRESCRIBED
FOR DETERMINATION OF VALUES OF REAL PROPERTY BEING ACQUIRED THROUGH EXERCISE OF THE POWER OF EMINENT DOMAIN, AS RESERVED IN THE
DEED FROM SANTA FE PACIFIC REALTY CORPORATION, RECORDED OCTOBER 14, 1988, AS INSTRUMENT NO. 88-346016, OFFICIAL RECORDS.

 

    A-13

     

    

 

PARCEL
45:      (653-041-16)

 

SECTION
17, TOWNSHIP 5 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
46:      (654-031-02,03)

 

SECTION
1, TOWNSHIP 6 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO
THE OFFICIAL PLAT THEREOF.

 

EXCEPT
THEREFROM THE SOUTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF SAID SECTION 1.

 

PARCEL
47:      (654-021-27,28)

 

THE
WEST ONE-HALF OF SECTION 13, TOWNSHIP 6 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE
OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPT
THEREFROM THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA, AND SANTA FE RAILWAY COMPANY BY DEED RECORDED MARCH 16, 1914 IN BOOK
548, OF DEEDS, PAGE 29.

 

ALSO
EXCEPT THEREFROM THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY BY DEED RECORDED NOVEMBER 26, 1913
IN BOOK 542, OF DEEDS, PAGE 1.

 

PARCEL
48:      (654-011-03,11,21,22)

 

SECTIONS
21, 29 AND 33, TOWNSHIP 6 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPT
FROM SAID SECTION 33 THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA, AND SANTA FE RAILWAY COMPANY BY DEED RECORDED MARCH 16, 1914,
IN BOOK 548, OF DEEDS, PAGE 29.

 

PARCEL
49:      (556-321-03)

 

SECTION
4, TOWNSHIP 4 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO
THE OFFICIAL PLAT THEREOF.

 

PARCEL
50:      (653-041-13)

 

SECTION
8, TOWNSHIP 5 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO
THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM ANY PORTION OF THE ABOVE DESCRIBED PARCELS OF LAND LYING WITHIN THE 200 FOOT RIGHT OF WAY GRANTED TO SOUTHERN PACIFIC
RAILROAD COMPANY BY ACT OF CONGRESS APPROVED JULY 27, 1866.

 

EXCEPT
ALL MINERAL AND MINERAL RIGHTS AS MORE FULLY SET FORTH IN THE DEED FROM SANTA FE PACIFIC REALTY CORPORATION, A DELAWARE CORPORATION,
AS SUCCESSOR IN INTEREST TO SOUTHERN PACIFIC LAND COMPANY, A CALIFORNIA CORPORATION, RECORDED OCTOBER 14, 1988 AS INSTRUMENT NO.
88-346016 OF OFFICIAL RECORDS.

 

    A-14

     

    

 

SAID
DEED RECITES THE FOLLOWING:

 

GRANTOR
EXCEPTS FROM SECTION 9, TOWNSHIP 5 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, AND RESERVES UNTO ITSELF, ITS SUCCESSORS AND
ASSIGNS ALL MINERALS AND MINERAL RIGHTS, INTERESTS, AND ROYALTIES, INCLUDING, WITHOUT LIMITING THE GENERALITY THEREOF, ALL OIL
GAS AND OTHER HYDROCARBON SUBSTANCES, AS WELL AS ALL GEOTHERMAL RESOURCES, AND METALLIC OR OTHER SOLID MINERALS, TOGETHER WITH
THE EXCLUSIVE AND PERPETUAL RIGHT OF GRANTOR, ITS SUCCESSORS, ASSIGNS AND LESSEES, OF INGRESS AND EGRESS IN, UPON AND OVER SAID
LAND TO EXPLORE FOR, EXTRACT, STORE, REFINE, PROCESS, AND REMOVE THE SAME, AND MAKE SUCH USE OF SAID LAND AS IS NECESSARY OR USEFUL
IN CONNECTION THEREWITH, TOGETHER WITH THE RIGHT TO USE SUCH WATER AS MAY BE FOUND ON OR BENEATH SAID LAND FOR EXTRACTION OR PROCESSING
OF SUCH MINERALS AS MAY BE FOUND THEREON. GRANTOR COVENANTS AND AGREES THAT IT WILL COMPENSATE THE OWNER OF THE SURFACE OF SAID
LAND FOR SUCH PORTION THEREOF AS MAY BE TAKEN OR DAMAGED BY EXERCISE OF THE RIGHTS RETAINED BY GRANTOR, SUCH COMPENSATION TO BE
AN AMOUNT EQUAL TO THE DIMINUTION OF THE FAIR MARKET VALUE OF SAID SURFACE ESTATE SO TAKEN OR DAMAGED, WHICH IN THE ABSENCE OF
AGREEMENT, SHALL BE DETERMINED BY THE SUPERIOR COURT OF THE COUNTY IN WHICH SAID LAND IS LOCATED, IN THE MANNER PRESCRIBED FOR
DETERMINATION OF VALUES OF REAL PROPERTY BEING ACQUIRED THROUGH EXERCISE OF THE POWER OF EMINENT DOMAIN.

 

PARCEL
51:      (556-321-04)

 

SECTION
3, TOWNSHIP 4 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO
THE OFFICIAL PLAT THEREOF.

 

PARCEL
52:      (556-281-13,17,19,20; 556-311-01,02,05,06,10,11,47)

 

SECTIONS
8, 17, 18, 19, 20, 23, 24, THE NORTHEAST ONE-QUARTER, THE WEST ONE-HALF AND THE NORTH ONE-HALF OF THE SOUTHEAST ONE-QUARTER OF
SECTION 26 AND SECTIONS 28 AND 29, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
FROM SAID SECTION 17 THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY BY DEED RECORDED AUGUST 16, 1914
IN BOOK 548 OF DEEDS, PAGE 29.

 

ALSO
EXCEPT FROM SAID SECTION 17 THAT PORTION CONVEYED TO CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY BY DEED RECORDED NOVEMBER
26, 1913 IN BOOK 542, OF DEEDS, PAGE 1.

 

EXCEPTING
THEREFROM ANY PORTION OF THE ABOVE DESCRIBED PARCELS OF LAND LYING WITHIN THE 200 FOOT RIGHT OF WAY GRANTED TO SOUTHERN PACIFIC
RAILROAD COMPANY BY ACT OF CONGRESS APPROVED JULY 27, 1866.

 

PARCEL
53:      (653-041-15)

 

SECTION
18, TOWNSHIP 5 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM ANY PORTION OF THE ABOVE DESCRIBED LAND LYING WITHIN THE 200 FOOT RIGHT OF WAY GRANTED TO SOUTHERN PACIFIC RAILROAD
COMPANY BY ACT OF CONGRESS APPROVED JULY 27, 1866.

 

PARCEL
54:      (558-181-04)

 

THE
SOUTH 1/2 OF THE SOUTHWEST 1/4 OF THE NORTHEAST 1/4 AND THE SOUTHWEST 1/4 OF THE SOUTHEAST 1/4 OF THE NORTHEAST 1/4 OF SECTION
31, TOWNSHIP 6 NORTH, RANGE 14 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND.

 

    A-15

     

    

 

DIVISION
D:

 

PARCEL
55:      (556-311-49)

 

THE
SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 21, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY
OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

DIVISION
E:

 

PARCEL
56:      (556-341-01,02,03,05 TO 08; 556-351-01 TO 08)

 

PARCELS
1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 AND 16 OF PARCEL MAPS NO. 10131, IN THE UNINCORPORATED AREA OF SAN BERNARDINO
COUNTY, AS PER PLAT RECORDED IN BOOK 108, OF PARCEL MAPS, PAGE 55, RECORDS, RECORDS OF SAID COUNTY.

 

PARCEL
57:      (556-311-53)

 

THE
SOUTH HALF OF THE SOUTHWEST QUARTER OF SECTION 21, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF
SAN BERNARDINO, STATE OF CALIFORNIA ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
58:      (556-321-02,06,10; 556-321-05)

 

SECTIONS
1, 5 AND 9, TOWNSHIP 4 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF, AND SECTION 2, TOWNSHIP 4 NORTH, RANGE 14 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

DIVISION
G:

 

PARCEL
59:      (659-241-02)

 

SECTION
17, TOWNSHIP 10 NORTH, RANGE 21 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM THE LAND OF THE ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY AS THE SAME WAS DESCRIBED IN THE DEEDS RECORDED MARCH
16, 1914 IN BOOK 348, PAGE 29 OF DEEDS, DECEMBER 28, 1911 IN BOOK 496, PAGE 169 OF DEEDS AND NOVEMBER 26, 1913 IN
BOOK 542, PAGE 1 OF DEEDS, RECORDS OF SAID COUNTY.

 

EXCEPT
THE FOLLOWING AS RESERVED IN THE DEED FROM SF PACIFIC PROPERTIES INC. RECORDED JUNE 18, 1999 AS INSTRUMENT NO. 260205 ALL
RIGHT, TITLE AND INTEREST IN AND TO ALL MINERALS AND MINERAL RIGHTS, INCLUDING, WITHOUT LIMITATION, OIL, GAS AND OTHER HYDROCARBONS,
COAL, GEOTHERMAL RESOURCES, PRECIOUS METAL ORES, BASE METAL ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MATERIALS,
SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY
KNOWN TO SCIENCE OR INDUSTRY, NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS
OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE MAY BE FOUND; HOWEVER, GRANTOR, ITS SUCCESSORS AND ASSIGNS, SHALL NOT
HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON, INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OF THE SUBSURFACE OF
THE PROPERTY IN CONNECTION THEREWITH. GRANTOR HEREBY ACKNOWLEDGES AND AGREES THAT THE FOREGOING RESERVATION SHALL NOT BE DEEMED
TO LIMIT THE RIGHT OF GRANTEE TO EXTRACT WATER FROM THE PROPERTY WHICH MAY INCLUDE THE INCIDENTAL EXTRACTION OF MINERALS, SAND,
GRAVEL OR OTHER MATERIALS IN CONNECTION WITH THE EXTRACTION OF WATER.

 

PARCEL
60:      (659-181-03)

 

SECTION
5 IN TOWNSHIP 10 NORTH, RANGE 21 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

    A-16

     

    

 

EXCEPT
THE FOLLOWING AS RESERVED IN THE DEED FROM SF PACIFIC PROPERTIES INC. RECORDED JUNE 18, 1999 AS INSTRUMENT NO. 260205 ALL
RIGHT, TITLE AND INTEREST IN AND TO ALL MINERALS AND MINERAL RIGHTS, INCLUDING, WITHOUT LIMITATION, OIL, GAS AND OTHER HYDROCARBONS,
COAL, GEOTHERMAL RESOURCES, PRECIOUS METAL ORES, BASE METAL ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MATERIALS,
SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY
KNOWN TO SCIENCE OR INDUSTRY, NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS
OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE MAY BE FOUND; HOWEVER, GRANTOR, ITS SUCCESSORS AND ASSIGNS, SHALL NOT
HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON, INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OF THE SUBSURFACE OF
THE PROPERTY IN CONNECTION THEREWITH. GRANTOR HEREBY ACKNOWLEDGES AND AGREES THAT THE FOREGOING RESERVATION SHALL NOT BE DEEMED
TO LIMIT THE RIGHT OF GRANTEE TO EXTRACT WATER FROM THE PROPERTY WHICH MAY INCLUDE THE INCIDENTAL EXTRACTION OF MINERALS, SAND,
GRAVEL OR OTHER MATERIALS IN CONNECTION WITH THE EXTRACTION OF WATER.

 

PARCEL
61:      (659-181-06)

 

SECTION
9 IN TOWNSHIP 10 NORTH, RANGE 21 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPT
THE FOLLOWING AS RESERVED IN THE DEED FROM SF PACIFIC PROPERTIES INC. RECORDED JUNE 18, 1999 AS INSTRUMENT NO. 260205 ALL
RIGHT, TITLE AND INTEREST IN AND TO ALL MINERALS AND MINERAL RIGHTS, INCLUDING, WITHOUT LIMITATION, OIL, GAS AND OTHER HYDROCARBONS,
COAL, GEOTHERMAL RESOURCES, PRECIOUS METAL ORES, BASE METAL ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MATERIALS,
SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY
KNOWN TO SCIENCE OR INDUSTRY, NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS
OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE MAY BE FOUND; HOWEVER, GRANTOR, ITS SUCCESSORS AND ASSIGNS, SHALL NOT
HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON, INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OF THE SUBSURFACE OF
THE PROPERTY IN CONNECTION THEREWITH. GRANTOR HEREBY ACKNOWLEDGES AND AGREES THAT THE FOREGOING RESERVATION SHALL NOT BE DEEMED
TO LIMIT THE RIGHT OF GRANTEE TO EXTRACT WATER FROM THE PROPERTY WHICH MAY INCLUDE THE INCIDENTAL EXTRACTION OF MINERALS, SAND,
GRAVEL OR OTHER MATERIALS IN CONNECTION WITH THE EXTRACTION OF WATER.

 

PARCEL
62:      (659-241-16,17)

 

SECTION
21 IN TOWNSHIP 10 NORTH, RANGE 21 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPT
THEREFROM THOSE PORTIONS OF SECTION 21 DESCRIBED AS PARCEL NOS. 5 AND 6 IN THE DEED TO THE CALIFORNIA, ARIZONA AND SANTA FE RAILWAY
COMPANY, A CORPORATION, RECORDED NOVEMBER 26, 1913 IN BOOK 542, PAGE 1 OF DEEDS IN THE OFFICE OF THE COUNTY RECORDER OF
SAID COUNTY.

 

ALSO
EXCEPT THEREFROM THOSE PORTIONS INCLUDED WITHIN THE LINES OF THAT CERTAIN RAILROAD RIGHT OF WAY, 200 FEET IN WIDTH, AND THE ‘STATION
GROUNDS AT IBIS, ORIGINALLY IBEX,” AS DESCRIBED IN THE DEED TO THE CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY, A CALIFORNIA
CORPORATION, RECORDED MARCH 15, 1914 IN BOOK 548, PAGE 29 OF SAID DEEDS.

 

ALSO
EXCEPT THEREFROM THAT PORTION DESCRIBED IN THE DEED TO THE CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY, A CORPORATION, RECORDED
JULY 1, 1952 IN BOOK 2977, PAGE 469 OF OFFICIAL RECORDS IN SAID OFFICE OF THE COUNTY RECORDER.

 

    A-17

     

    

 

EXCEPT
THE FOLLOWING AS RESERVED IN THE DEED FROM SF PACIFIC PROPERTIES INC. RECORDED JUNE 18, 1999 AS INSTRUMENT NO. 260205.
ALL RIGHT, TITLE AND INTEREST IN AND TO ALL MINERALS AND MINERAL RIGHTS, INCLUDING, WITHOUT LIMITATION, OIL, GAS AND OTHER HYDROCARBONS,
COAL, GEOTHERMAL RESOURCES, PRECIOUS METAL ORES, BASE METAL ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MATERIALS,
SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY
KNOWN TO SCIENCE OR INDUSTRY, NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS
OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE MAY BE FOUND; HOWEVER, GRANTOR, ITS SUCCESSORS AND ASSIGNS, SHALL NOT
HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON, INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OF THE SUBSURFACE OF
THE PROPERTY IN CONNECTION THEREWITH, GRANTOR HEREBY ACKNOWLEDGES AND AGREES THAT THE FOREGOING RESERVATION SHALL NOT BE DEEMED
TO LIMIT THE RIGHT OF GRANTEE TO EXTRACT WATER FROM THE PROPERTY WHICH MAY INCLUDE THE INCIDENTAL EXTRACTION OF MINERALS, SAND,
GRAVEL OR OTHER MATERIALS IN CONNECTION WITH THE EXTRACTION OF WATER.

 

PARCEL
63:      (659-171-10)

 

SECTION
29 IN TOWNSHIP 10 NORTH, RANGE 21 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPT
THE FOLLOWING AS RESERVED IN THE DEED FROM SF PACIFIC PROPERTIES INC. RECORDED JUNE 18, 1999 AS INSTRUMENT NO. 260205 ALL
RIGHT, TITLE AND INTEREST IN AND TO ALL MINERALS AND MINERAL RIGHTS, INCLUDING, WITHOUT LIMITATION, OIL, GAS AND OTHER HYDROCARBONS,
COAL, GEOTHERMAL RESOURCES, PRECIOUS METAL ORES, BASE METAL ORES, INDUSTRIAL-GRADE SILICATES AND CARBONATES, FISSIONABLE MATERIALS,
SAND, GRAVEL, AGGREGATES, AND ALL OTHER MINERALS OF EVERY KIND AND CHARACTER, METALLIC OR OTHERWISE, WHETHER OR NOT PRESENTLY
KNOWN TO SCIENCE OR INDUSTRY, NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED UPON, WITHIN OR UNDERLYING THE SURFACE OF SAID LAND REGARDLESS
OF THE DEPTH BELOW THE SURFACE AT WHICH ANY SUCH SUBSTANCE MAY BE FOUND; HOWEVER, GRANTOR, ITS SUCCESSORS AND ASSIGNS, SHALL NOT
HAVE THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON, INTO OR THROUGH THE SURFACE OR THE FIRST 300 FEET OF THE SUBSURFACE OF
THE PROPERTY IN CONNECTION THEREWITH. GRANTOR HEREBY ACKNOWLEDGES AND AGREES THAT THE FOREGOING RESERVATION SHALL NOT BE DEEMED
TO LIMIT THE RIGHT OF GRANTEE TO EXTRACT WATER FROM THE PROPERTY WHICH MAY INCLUDE THE INCIDENTAL EXTRACTION OF MINERALS, SAND,
GRAVEL OR OTHER MATERIALS IN CONNECTION WITH THE EXTRACTION OF WATER.

 

DIVISION
F:

 

PARCEL
1: (0556-271-02-0-000)

 

ALL
OF SECTION 5, TOWNSHIP 5 NORTH, RANGE 13 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF.

PARCEL
2: (0556-271-10-0-000)

 

SECTION
9, TOWNSHIP 5 NORTH, RANGE 13 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO
THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM THAT PORTION OF THE SOUTH ONE-HALF OF THE SOUTHEAST ONE-QUARTER OF SECTION 9, TOWNSHIP 5 NORTH, RANGE 13 EAST, DESCRIBED
AS FOLLOWS:

 

BEGINNING
AT A POINT IN THE SOUTH LINE OF SAID SECTION 9, 167 FEET WEST FROM THE SOUTHEAST CORNER OF SAID SECTION 9; THENCE NORTH 52o
34’ WEST 1650 FEET; THENCE SOUTH 25o 51’ WEST 1114.4 FEET TO A POINT IN THE SAID SOUTH LINE OF SECTION 9; THENCE
EAST, ALONG SAID SOUTH LINE 1795.1 FEET TO THE POINT OF BEGINNING.

 

ALSO
EXCEPTING THEREFROM THAT PORTION OF THE SOUTHWEST ONE-QUARTER OF THE SOUTHEAST ONE-QUARTER AND OF THE SOUTHEAST ONE-QUARTER OF
THE SOUTHWEST ONE-QUARTER OF SECTION 9, TOWNSHIP 5 NORTH, RANGE 13 EAST, DESCRIBED AS FOLLOWS:

 

BEGINNING
AT A POINT IN THE NORTHERN RIGHT OF WAY LINE OF SAID RAILWAY COMPANY, 100 FEET NORTHERLY FROM AND AT RIGHT ANGLES TO THE CENTER
LINE OF SAID RAILWAY COMPANY’S TRAIN TRACK, AT ENGINEER’S STATION 4495 PLUS 25.7; THENCE NORTH 28o 55’
EAST, 1132.4 FEET; THENCE SOUTH 47o 34’ EAST, 1720 FEET, MORE OR LESS, TO THE SOUTH LINE OF SAID SECTION 9; THENCE
WESTERLY, ALONG SAID SOUTH LINE OF SAID NORTHERN RIGHT OF WAY LINE, TO THE POINT OF BEGINNING.

 

ALSO
EXCEPTING THEREFROM THAT PORTION OF THE SOUTH ONE-HALF OF THE SOUTHWEST ONE-QUARTER AND THE NORTHWEST ONE-QUARTER OF THE SOUTHWEST
ONE-QUARTER OF SECTION 9, TOWNSHIP 5 NORTH, RANGE 13 EAST, DESCRIBED AS FOLLOWS:

 

    A-18

     

    

 

BEGINNING
AT A POINT IN THE NORTHERN RIGHT OF WAY LINE OF SAID RAILWAY COMPANY, 100 FEET NORTHERLY FROM AND AT RIGHT ANGLES TO THE CENTER
LINE OF SAID RAILWAY COMPANY’S MAIN TRACK AT ENGINEER’S STATION 4465 PLUS 25.7; THENCE NORTH 38o 39’ WEST,
2360 FEET, MORE OR LESS, TO A POINT IN THE WEST LINE OF SAID SECTION 9; THENCE SOUTH, ALONG SAID WEST LINE, TO AN INTERSECTION
WITH THE NORTHERN BOUNDARY OF SAID RAILWAY COMPANY’S STATION GROUNDS AT OLD BENGAL; THENCE SOUTH 84o 39’ EAST,
759.4 FEET, MORE OR LESS, ALONG SAID NORTHERN BOUNDARY TO THE NORTHEAST CORNER OF SAID STATION GROUNDS, 200 FEET, NORTHERLY AT
RIGHT ANGLES FROM THE CENTER LINE OF SAID RAILWAY COMPANY’S MAIN TRACK AT ENGINEER’S STATION 4492 PLUS 50; THENCE
SOUTH 5o 21’ WEST, 100 FEET, ALONG THE EASTERLY BOUNDARY OF SAID STATION GROUNDS, TO SAID NORTHERN RIGHT OF WAY LINE;
THENCE SOUTH 84o 39’ EAST ALONG SAID RIGHT OF WAY LINE, 724.3 FEET TO THE POINT OF BEGINNING.

 

ALSO
EXCEPTING THEREFROM THAT PORTION LYING WITHIN THE FOLLOWING DESCRIBED PROPERTY:

 

THE
STATION GROUNDS AT OLD BENGAL, ORIGINALLY BRISTOL; SITUATED IN THE SOUTH ONE-HALF OF THE SOUTHEAST ONE-QUARTER OF SECTION 8, IN
THE SOUTHWEST ONE-QUARTER OF THE SOUTHWEST ONE-QUARTER OF SECTION 9 AND IN THE NORTHWEST ONE-QUARTER OF THE NORTHWEST ONE-QUARTER
OF SECTION 16, TOWNSHIP 5 NORTH, RANGE 13 EAST, BEING 2 STRIPS OF LAND, EACH 100 FEET IN WIDTH BY 2600 FEET IN LENGTH, CONTIGUOUS
TO AND ON THE NORTHERLY AND SOUTHERLY SIDES OF THE 200 FOOT RIGHT OF WAY AND EXTENDING FROM A LINE AT RIGHT ANGLES TO THE MAIN
TRACK THROUGH ENGINEER’S STATION 4518 PLUS 50 SOUTH 54o 39’ EAST 2600 FEET TO A LINE AT RIGHT ANGLES TO THE MAIN
TRACK THROUGH ENGINEER’S STATION 4492 PLUS 50.

 

ALSO
EXCEPTING THEREFROM THAT PORTION LYING WITHIN THE 200 FOOT WIDE STRIP OF LAND DESCRIBED IN THE DEED TO THE CALIFORNIA, ARIZONA
AND SANTA FE RAILWAY COMPANY DATED MAY 29, 1913 RECORDED APRIL 16, 1914 IN BOOK 548 PAGE 29 OF DEEDS.

 

PARCEL
3: (0556-271-16-0-000)

 

THAT
PORTION OF THE SOUTH ONE-HALF OF THE SOUTHEAST ONE-QUARTER OF SECTION 9, TOWNSHIP 5 NORTH, RANGE 13 EAST, DESCRIBED AS FOLLOWS:

 

BEGINNING
AT A POINT IN THE SOUTH LINE OF SAID SECTION 9, 167 FEET WEST FROM THE SOUTHEAST CORNER OF SAID SECTION 9; THENCE NORTH 52o
34’ WEST 1650 FEET; THENCE SOUTH 25o 51’ WEST 1114.4 FEET TO A POINT IN THE SAID SOUTH LINE OF SECTION 9; THENCE
EAST, ALONG SAID SOUTH LINE 1795.1 FEET TO THE POINT OF BEGINNING.

 

PARCEL
4: (0556-271-15-0-000)

 

THAT
PORTION OF THE SOUTHWEST ONE-QUARTER OF THE SOUTHEAST ONE-QUARTER AND OF THE SOUTHEAST ONE-QUARTER OF THE SOUTHWEST ONE-QUARTER
OF SECTION 9, TOWNSHIP 5 NORTH, RANGE 13 EAST, DESCRIBED AS FOLLOWS:

 

BEGINNING
AT A POINT IN THE NORTHERN RIGHT OF WAY LINE OF SAID RAILWAY COMPANY, 100 FEET NORTHERLY FROM AND AT RIGHT ANGLES TO THE CENTER
LINE OF SAID RAILWAY COMPANY’S TRAIN TRACK, AT ENGINEER’S STATION 4495 PLUS 25.7; THENCE NORTH 28o 55’
EAST, 1132.4 FEET; THENCE SOUTH 47o 34’ EAST, 1720 FEET, MORE OR LESS, TO THE SOUTH LINE OF SAID SECTION 9; THENCE
WESTERLY, ALONG SAID SOUTH LINE OF SAID NORTHERN RIGHT OF WAY LINE, TO THE POINT OF BEGINNING.

 

    A-19

     

    

 

PARCEL
5: (0556-271-14-0-000)

 

THAT
PORTION OF THE SOUTH ONE-HALF OF THE SOUTHWEST ONE-QUARTER AND THE NORTHWEST ONE-QUARTER OF THE SOUTHWEST ONE-QUARTER OF SECTION
9, TOWNSHIP 5 NORTH, RANGE 13 EAST, DESCRIBED AS FOLLOWS:

 

BEGINNING
AT A POINT IN THE NORTHERN RIGHT OF WAY LINE OF SAID RAILWAY COMPANY, 100 FEET NORTHERLY FROM AND AT RIGHT ANGLES TO THE CENTER
LINE OF SAID RAILWAY COMPANY’S MAIN TRACK AT ENGINEER’S STATION 4465 PLUS 25.7; THENCE NORTH 38o 39’ WEST,
2360 FEET, MORE OR LESS, TO A POINT IN THE WEST LINE OF SAID SECTION 9; THENCE SOUTH, ALONG SAID WEST LINE, TO AN INTERSECTION
WITH THE NORTHERN BOUNDARY OF SAID RAILWAY COMPANY’S STATION GROUNDS AT OLD BENGAL; THENCE SOUTH 84o 39’ EAST,
759.4 FEET, MORE OR LESS, ALONG SAID NORTHERN BOUNDARY TO THE NORTHEAST CORNER OF SAID STATION GROUNDS, 200 FEET, NORTHERLY AT
RIGHT ANGLES FROM THE CENTER LINE OF SAID RAILWAY COMPANY’S MAIN TRACK AT ENGINEER’S STATION 4492 PLUS 50; THENCE
SOUTH 5o 21’ WEST, 100 FEET, ALONG THE EASTERLY BOUNDARY OF SAID STATION GROUNDS, TO SAID NORTHERN RIGHT OF WAY LINE;
THENCE SOUTH 84o 39’ EAST ALONG SAID RIGHT OF WAY LINE, 724.3 FEET TO THE POINT OF BEGINNING.

 

PARCEL
6: (0556-271-23-0-000)

 

ALL
OF SECTION 17, TOWNSHIP 5 NORTH, RANGE 13 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
7: (0556-251-03-0-000)

 

ALL
OF SECTION 21, TOWNSHIP 5 NORTH, RANGE 13 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
8: (0556-251-11-0-000)

 

SECTION
29, TOWNSHIP 5 NORTH, RANGE 13 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
9: (0556-251-15-0-000)

 

SECTION
33, TOWNSHIP 5 NORTH, RANGE 13 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
10: (0556-251-10-0-000)

 

SECTION
29, TOWNSHIP 13 NORTH, RANGE 19 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
11: (0653-011-15-0-000)

 

SECTION
33, TOWNSHIP 4 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
12: (0558-151-14-0-000)

 

THAT
PORTION OF SECTION 33, TOWNSHIP 6 NORTH, RANGE 13 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF ON FILE IN THE DISTRICT LAND OFFICE, LYING NORTHERLY OF THE STATE HIGHWAY.

 

PARCEL
13: (0558-151-15-0-000)

 

THAT
PORTION OF SECTION 33, TOWNSHIP 6 NORTH, RANGE 13 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF ON FILE IN THE DISTRICT LAND OFFICE, LYING SOUTHERLY OF THE STATE HIGHWAY.

 

    A-20

     

    

 

PARCEL
14: (0556-271-22-0-000)

 

SECTION
16, TOWNSHIP 5 NORTH, RANGE 15 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM THOSE CERTAIN STRIPS OF LAND FOR RAILWAY PURPOSES AND STATION GROUNDS DEEDED TO CALIFORNIA, ARIZONA AND SANTA FE RAILROAD
COMPANY BY DEEDS RECORDED NOVEMBER 26, 1913 IN BOOK 542 OF DEEDS, PAGE 1, AND MARCH 16, 1914 IN BOOK 548 OF DEEDS, PAGE
29.

 

ALSO
EXCEPTING THEREFROM ALL COAL, OIL, GAS AND OTHER MINERAL DEPOSITS, TOGETHER WITH THE RIGHTS TO PROSPECT FOR, MINE AND REMOVE THE
SAME, ACCORDING TO THE PROVISIONS OF SAID ACT OF JUNE 1, 1938 AS RESERVED IN THE PATENT FROM THE STATE OF CALIFORNIA, RECORDED
JULY 28, 1958, IN BOOK 4564 PAGE 100 OF OFFICIAL RECORDS.

 

PARCEL
15: (0656-111-18-0-000)

 

SECTION
13, TOWNSHIP 9 NORTH, RANGE 17 EAST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING
TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
16: (0556-311-04-0-000)

 

ALL
OF SECTION 22, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
17: (0556-311-09-0-000)

 

ALL
OF SECTION 27, TOWNSHIP 5 NORTH, RANGE 14 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

PARCEL
18:

 

INTENTIONALLY
OMITTED

 

PARCEL
19:

 

INTENTIONALLY
OMITTED

 

PARCEL
20: (0556-341-02-0-000)

 

PARCEL
2 OF PARCEL MAP 10131, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 108, OF PARCEL
MAPS, PAGE 55, RECORDS OF SAID COUNTY.

 

PARCEL
21: (0558-171-16-0-000)

 

THE
EAST 1/2 OF THE SOUTH 1/2 OF THE SOUTHEAST 1/4 OF SECTION 36, TOWNSHIP 6 NORTH, RANGE 13 EAST, SAN BERNARDINO BASE AND MERIDIAN,
ACCORDING TO GOVERNMENT SURVEY, RECORDS OF SAID COUNTY.

 

PARCEL
22: (0558-181-21-0-000)

 

THAT
PORTION OF THE SOUTHEAST 1/4 OF SECTION 31, TOWNSHIP 6 NORTH, RANGE 14 EAST, SAN BERNARDINO BASE AND MERIDIAN, LYING SOUTH OF
THE SOUTH LINE OF ROUTE 66, OF SAID COUNTY, AND MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

    A-21

     

    

 

BEGINNING
AT THE SOUTHEAST CORNER OF AFOREMENTIONED SECTION 31; THENCE NORTH 1o 09’ 15” WEST, ALONG THE EAST LINE OF SAID
SECTION, 1118.69 FEET TO THE SOUTH LINE OF ROUTE 66 AS DESCRIBED IN THAT CERTAIN QUITCLAIM DEED FROM MELVANE CHAMBLESS TO THE
STATE OF CALIFORNIA, RECORDED IN BOOK 594 PAGE 279, OFFICIAL RECORDS; THENCE ALONG SAID SOUTH LINE SOUTH 88o 42’
45” WEST 2,648.78 FEET TO A POINT ON THE WEST LINE OF SAID SOUTHEAST 1/4 OF SECTION 31; THENCE SOUTH 1o 14’ 08”
EAST 1,043.56 FEET ALONG SAID WEST LINE TO THE SOUTH 1/4 CORNER OF SAID SECTION 31; THENCE ALONG THE SOUTH LINE OF SAID SOUTHEAST
1/4 SOUTH 89o 39’ 43” EAST, 2,648.12 FEET TO THE POINT OF BEGINNING.

 

PARCEL
23: (0558-181-21-0-000)

 

THAT
PORTION OF THE SOUTHEAST 1/4 OF SECTION 31, TOWNSHIP 6 NORTH, RANGE 14 EAST, SAN BERNARDINO BASE AND MERIDIAN, LYING NORTH OF
THE NORTH LINE OF ROUTE 66 WHICH HIGHWAY IS 200 FEET WIDE AND MORE PARTICULARLY DESCRIBED IN THAT CERTAIN QUITCLAIM DEED FROM
MELVANE CHAMBLESS TO THE STATE OF CALIFORNIA, RECORDED IN BOOK 594 PAGE 279, OFFICIAL RECORDS.

 

PARCEL
24: (0558-181-05-0-000)

 

THE
SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 31, TOWNSHIP 6 NORTH, RANGE 14 EAST, OF THE SAN
BERNARDINO BASE AND MERIDIAN, CONTAINING 10 ACRES MORE OR LESS.

 

PARCEL
25: (0645-061-15-0-000)

 

ALL
OF SECTION 16, TOWNSHIP 3 NORTH, RANGE 18 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM ALL MINERALS AND MINERAL DEPOSITS, INCLUDING, BUT NOT LIMITED TO, OIL AND GAS, OTHER GASES, INCLUDING, BUT NOT LIMITED
TO, NONHYDROCARBON AND GEOTHERMAL GASES, OIL SHALE, COAL, PHOSPHATE, ALUMINA, SILICA, FOSSILS OF ALL GEOLOGICAL AGES, SODIUM,
GOLD, SILVER, METALS AND THEIR COMPOUNDS, ALKALI, ALKALI EARTH, SAND, CLAY, GRAVEL, SALTS AND MINERAL WATERS, URANIUM, TRONA,
AND GEOTHERMAL RESOURCES, TOGETHER WITH THE RIGHT OF THE STATE OR PERSONS AUTHORIZED BY THE STATE TO PROSPECT FOR, DRILL FOR,
EXTRACT, MINE AND REMOVE SUCH DEPOSITS OR RESOURCES, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF THE LANDS AS MAY BE NECESSARY
THEREFROM, AS RESERVED BY THE STATE OF CALIFORNIA IN PATENT RECORDED JUNE 4, 1996 AS INSTRUMENT NO. 19960197383 OF OFFICIAL
RECORDS.

 

    A-22

     

    

 

PARCEL 26: (0659-241-03-0-000)

 

ALL
OF SECTION 16, TOWNSHIP 10 NORTH, RANGE 21 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ACCORDING TO THE OFFICIAL PLAT THEREOF.

 

EXCEPTING
THEREFROM ALL MINERALS AND MINERAL DEPOSITS, INCLUDING, BUT NOT LIMITED TO, OIL AND GAS, OTHER GASES, INCLUDING, BUT NOT LIMITED
TO, NONHYDROCARBON AND GEOTHERMAL GASES, OIL SHALE, COAL, PHOSPHATE, ALUMINA, SILICA, FOSSILS OF ALL GEOLOGICAL AGES, SODIUM,
GOLD, SILVER, METALS AND THEIR COMPOUNDS, ALKALI, ALKALI EARTH, SAND, CLAY, GRAVEL, SALTS AND MINERAL WATERS, URANIUM, TRONA,
AND GEOTHERMAL RESOURCES, TOGETHER WITH THE RIGHT OF THE STATE OR PERSONS AUTHORIZED BY THE STATE TO PROSPECT FOR, DRILL FOR,
EXTRACT, MINE AND REMOVE SUCH DEPOSITS OR RESOURCES, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF THE LANDS AS MAY BE NECESSARY
THEREFROM, AS RESERVED BY THE STATE OF CALIFORNIA IN PATENT RECORDED JUNE 4, 1996 AS INSTRUMENT NO. 19960197382 OF OFFICIAL
RECORDS.

 

PARCEL
NO. 27: (0556-271-27, 0556-271-29, 0556-271-30 & 0556-271-31)

 

THE
SOUTHERLY 25 FEET OF THAT CERTAIN SOUTHERLY 100 FOOT WIDE BY 2600 FOOT LENGTH STRIP OF LAND LYING IN THE SOUTHWEST QUARTER OF
SECTION 9, AND IN THE SOUTHEAST QUARTER OF SECTION 8, AND IN THE NORTHWEST QUARTER OF SECTION 16, AND IN THE NORTHEAST QUARTER
OF SECTION 17, ALL IN TOWNSHIP 5 NORTH, RANGE 13 EAST, OF THE SAN BERNARDINO MERIDIAN, DESCRIBED AS "STATION GROUNDS AT OLD
BENGAL" IN THAT CERTAIN INDENTURE DATED MAY 29, 1913, CONVEYING LANDS TO THE CALIFORNIA, ARIZONA AND SANTA FE RAILWAY COMPANY
(PREDECESSOR IN INTEREST TO THE ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY, BY DEED RECORDED IN BOOK 548 AT PAGE 29, DEED RECORDS
OF SAN BERNARDINO COUNTY, CALIFORNIA.

 

 

 

A-23Exhibit 4.1

 

AMENDED AND RESTATED VOTING AND FIRST REFUSAL AGREEMENT

This AMENDED AND RESTATED VOTING AND FIRST REFUSAL AGREEMENT (the “Agreement”) is made and entered into as of May 26, 2017, by and among Boston Omaha Corporation, a Delaware corporation (the “Company”), Boulderado Partners, LLC (“Boulderado”) and Magnolia Capital Fund, LP (“Magnolia” and together with Boulderado each, a “Class B Stockholder” and collectively, the “Class B Stockholders” and, together with the Company, the “Parties”).  The Company’s Board of Directors is referred to herein as the “Board.”

RECITALS

WHEREAS, the Class B Stockholders hold in the aggregate all of the outstanding shares of Company’s Class B Common Stock, par value $0.001 per share (the “Class B Common Stock”), in the originally issued amounts set forth on Exhibit A attached hereto (as adjusted for stock splits, combinations or other similar recapitalizations; 

WHEREAS, the Company’s Second Amended and Restated Certificate of Incorporation (as the same may be amended and/or restated from time to time, the “Certificate of Incorporation”) provides that (a) holders of shares of Class B Common Stock, voting as a separate class, shall elect two (2) members of the Board (the “Class B Directors”), and (b) holders of shares of the Company’s Class A Common Stock, par value $0.001 per share (the “Class A Common Stock”) and holders of shares of all other classes of voting capital stock, including the Class B Common Stock (on an as converted to Class A Common Stock basis), voting together as a single class, shall be entitled to elect the remaining members of the Board, if any; and

WHEREAS, the Company and the Class B Stockholders are party to that certain Voting and First Refusal Agreement, dated as of June 19, 2015 (the “Original Agreement”), and pursuant to Section 10.5 of the Original Agreement, the Parties hereto wish to amend and restate the Original Agreement as set forth herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, and certain other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree to amend and restate the Original Agreement in its entirety as follows:

1. Agreement to Vote.  Each Class B Stockholder, as a holder of Class B Common Stock, hereby agrees on behalf of itself and any transferee or assignee of any such shares of Class B Common Stock, to hold all of the shares of Class B Common Stock registered in its name and any other securities of the Company currently owned or subsequently acquired by such Class B Stockholder in the future (and any securities of the Company issued with respect to, upon conversion of, or in exchange or substitution for such shares or other securities) (hereinafter collectively referred to as the “Shares”), subject to, and to vote such shares at a regular or special meeting of stockholders (or by written consent) in accordance with, the provisions of this Agreement.   

2. Voting Provisions Relating to the Board. 

2.1. Board Size.  Each of the Class B Stockholders shall vote, or cause to be voted, at a regular or special meeting of stockholders (or by written consent) all Shares owned by such Class B Stockholder (or as to which such Class B Stockholder has voting power) to ensure that the size of the Board shall be set and remain at six (6) directors, unless otherwise increased or decreased by the Class B Directors. 

2.2. Election of Directors.  

2.2.1. In any election of directors of the Company to elect the Class B Directors, the Class B Stockholders shall each vote at any regular or special meeting of stockholders (or by written consent) all shares of Class B Common Stock then owned by them (or as to which they then have voting power) to elect to the Board as Class B Directors each of Alex B. Rozek, as a nominee of Boulderado (the “Boulderado Class B Director”) and Adam K. Peterson, as a nominee of Magnolia (the “Magnolia Class B Director”). 

2.2.2. In the event that (a) a Class B Stockholder sells, assigns or otherwise transfers more than eighty percent (80%) of its originally issued shares of Class B Common Stock or (b) a Class B Director becomes Incapacitated as described in Section 5 below, then the Boulderado Class B Director or the Magnolia Class B Director, as applicable, associated with the selling Class B Stockholder, or the incapacitated Class B Director, as the case may be, may be removed from the Board upon the majority vote of the holders of Class A Common Stock and Class B Common Stock, voting together as a single class, and in such event (i) the number of Class B Directors shall be reduced to one (1), and (ii) the remaining director shall be elected by the majority vote of the holders of Class A Common Stock and Class B Common Stock, voting together as a single class, in accordance with the Certificate of Incorporation.  For the avoidance of doubt, in the event that both Class B Stockholders transfer their shares of Class B Common Stock, or both Class B Directors become incapacitated, or one Class B Stockholder transfers its shares of Class B Common Stock and the Class B Director associated with the other Class B Stockholder becomes incapacitated, then the number of Class B Directors may be reduced to zero (0). 

2.2.3. In the absence of any nomination from the persons with the right to nominate a director as specified above, the director or directors previously nominated by such persons and then serving shall be reelected if still eligible to serve as provided herein. 

2.2.4. To the extent that the application of Subsections 2.2.1 and 2.2.2 above shall result in the designation of less than all of the authorized directors, then any remaining directors shall be nominated and elected by the stockholders of the Company entitled to vote thereon in accordance with, and pursuant to, the Certificate of Incorporation. 

2.3. Removal; Vacancies. Any director of the Company may be removed from the Board in the manner allowed by law and the Certificate of Incorporation and Bylaws, but with respect to any director nominated pursuant to Subsections 2.2.1 or 2.2.2 above, only upon the vote or written consent of the Class B Stockholders (or other persons) entitled to nominate such director.  Any vacancy created by the resignation, removal or death of a director elected pursuant to Section 2.2 above shall be filled pursuant to the provisions of Section 2. 

2

3. Vote to Increase Authorized Common Stock.  Each Class B Stockholder agrees to vote or cause to be voted all Shares owned by such Class B Stockholder, or over which such Class B Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to increase the number of authorized shares of Class A Common Stock from time to time to ensure that there will be sufficient shares of Class A Common Stock available for conversion of all of the shares of Class B Common Stock outstanding at any given time. 

4. First Refusal Right. 

4.1. Notice of Transfer.  In the event any Class B Stockholder wishes to sell, assign or otherwise transfer its shares of Class B Common Stock (the “Offered Shares”), such Class B Stockholder (the “Transferor”) shall provide written notice (the “Transfer Notice”) to the Company and the other Class B Stockholder (the “Offeree”).  The Transfer Notice shall include (i) the purchase price and form of consideration proposed to be paid for the Offered Shares (which shall be no less than all of the Class B Common Stock held by the Transferor), (ii) the name and address of the prospective transferee (the “Prospective Transferee”), and (iii) the other material terms and conditions upon which the proposed transfer is to be made, including the intended date of the proposed transfer.  

4.2. Right of First Refusal.  The Offeree shall have an option for a period of fifteen (15) days from delivery of the Transfer Notice to elect to purchase the Offered Shares at the same price and subject to the same material terms and conditions as described in the Transfer Notice.  The Offeree may exercise such purchase option and purchase all (but not less than all) of the Offered Shares by notifying the Company and the Transferor in writing before expiration of such fifteen (15) day period of its election to purchase the Offered Shares.  If the Offeree gives the Company and the Transferor notice that it desires to purchase such shares, then payment for the Offered Shares shall be made by check or wire transfer against delivery of the Offered Shares to be purchased at a time and place agreed upon between the Transferor and the Offeree, which time shall be no later than forty-five (45) days after delivery to the Offeree of the Transfer Notice, unless the Transfer Notice contemplated a later closing. 

4.3. Conversion and Sale Upon Failure to Exercise Purchase Option.  If the Offeree fails to purchase all of the Offered Shares by exercising the option granted in Section 4.2 within the fifteen (15)-day period provided, then the Transferor shall be free to sell all, but not less than all, of the Offered Shares to the Prospective Transferee on terms and conditions substantially similar to (and in no event more favorable than) the terms and conditions set forth in the Transfer Notice; provided, that such sale shall be consummated within forty-five (45) days after receipt of the Transfer Notice by the Offeree and, if such sale is not consummated within such forty-five (45)-day period, such sale shall again become subject to the right of first refusal on the terms set forth in Section 4.2; and provided, further, that immediately prior to any such sale to the Prospective Transferee, the Offered Shares shall automatically convert into shares of Class A Common Stock, in accordance with the procedures set forth in Article IV, Part B, Section 5.1 of the Certificate of Incorporation. 

3

5. Conversion Upon Incapacitation.  In the event of (a) the death of a Class B Director, (b) the incapacitation of a Class B Director as a result of illness or accident, whether physical or mental which, in the opinion of an independent medical expert or another independent authority selected by Company, makes it reasonably unlikely that the Class B Director will be able to perform his normal duties for the Company for a period of ninety (90) days, whether or not consecutive, during any 360-day period (collectively, “Incapacitation”), or (c) a Change of Control of a Class B Stockholder, then the Class B Stockholder which nominated such dead or Incapacitated Class B Director, or the Class B Stockholder undergoing such Change of Control, shall (as promptly as practicable following the death or incapacitation of such Class B Director, or immediately prior to such Change of Control, as applicable) convert all of such Class B Stockholder’s Shares of Class B Common Stock into shares of Class A Common Stock, in accordance with the procedures set forth in the Certificate of Incorporation.   For the purposes of this Section 5, a “Change of Control” means, with respect to a Class B Stockholder, (i) the replacement of the current Managing Member, General Partner or other individual or entity having similar responsibilities with respect to either Boulderado or Magnolia, as applicable (a “Manager”), with another party not controlled by such Manager or its affiliates, or (ii) a reduction in the current Manager’s controlling power through the inclusion of one or more additional Managing Members, General Partners or other individuals or entities having similar responsibilities with respect to either Boulderado or Magnolia, as applicable. 

Notwithstanding the provisions of the preceding paragraph, in the event of a Change of Control or dissolution of (a) Magnolia, then at the written request of Adam K. Peterson to the Company no later than thirty (30) days after such Change of Control or dissolution, Magnolia may assign all of its rights and obligation under this Agreement to Adam K. Peterson or any entity owned or controlled by Adam K. Peterson, provided that Adam K. Peterson directly, or through any affiliates, continues to own a legal or beneficial interest in at least twenty percent (20%) of the shares of Class B Common Stock originally issued to Magnolia, and (b) of Boulderado, at the written request of Alex B. Rozek to the Company no later than thirty (30) days after such Change of Control or dissolution, Boulderado may assign all of its rights and obligation under this Agreement to Alex B. Rozek or any entity owned or controlled by Alex B. Rozek, provided that Alex B. Rozek directly, or through any affiliates, continues to own a legal or beneficial interest in at least twenty percent (20%) of the shares of Class B Common Shares originally issued to Boulderado.  In calculating the number of shares of Class B Common Stock owned under this Agreement, appropriate adjustment shall be made for any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any distribution to holders of shares of Class B Common Stock other than a cash dividend.

 

6. Legend on Share Certificates.  Each certificate representing any Shares shall be endorsed by the Company with a legend reading substantially as follows: 

4

“THE SHARES EVIDENCED HEREBY ARE SUBJECT TO AN AMENDED AND RESTATED VOTING AND FIRST REFUSAL AGREEMENT, AS MAY BE AMENDED FROM TIME TO TIME (A COPY OF WHICH MAY BE OBTAINED UPON WRITTEN REQUEST FROM THE ISSUER), AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SAID AMENDED AND RESTATED VOTING AND FIRST REFUSAL AGREEMENT.”

7. No Liability for Election of Recommended Directors.  Neither any Party to this Agreement, nor any officer, director, stockholder, partner, employee or agent of any such Party, makes any representation or warranty as to the fitness or competence of the nominee of any Party hereunder to serve on the Board by virtue of such Party’s execution of this Agreement or by the act of such Party in voting for such nominee pursuant to this Agreement. 

8. Remedies. 

8.1. Grant of Proxy and Power of Attorney; No Conflicting Agreements.  Each Class B Stockholder hereby constitutes and appoints as the proxies of such Class B Stockholder, and hereby grants a power of attorney, to (a) the Co-Chief Executive Officers of the Company and (b) a stockholder or other person designated by the Board, and each of them, with full power and substitution, with respect to the matters set forth herein, and hereby authorizes each of them to represent and to vote, if and only if such Class B Stockholder (i) fails to vote or (ii) attempts to vote (whether by proxy, in person or by written consent) in a manner which is inconsistent with the terms of this Agreement, all of such Class B Stockholder’s Shares in the manner provided in Sections 2 and 3 hereof, and hereby authorizes each of them to take any action necessary to give effect to the provisions contained in Sections 2 and 3 hereof.  Each of the proxy and power of attorney granted in this Section 8.1 is given in consideration of the agreements and covenants of the Parties in connection with the transactions contemplated by this Agreement and, as such, each is coupled with an interest and shall be irrevocable until this Agreement terminates pursuant to its terms or this Section 8 is amended to remove such grant of proxy and power of attorney in accordance with Section 10.5 hereof.  Each Class B Stockholder hereby revokes any and all previous proxies or powers of attorney with respect to such Class B Stockholder’s Shares and shall not hereafter, until this Agreement terminates pursuant to its terms or this Section 8 is amended to remove this provision in accordance with Section 10.5 hereof, grant, or purport to grant, any other proxy or power of attorney with respect to such Shares, deposit any of such Shares into a voting trust or enter into any agreement (other than this Agreement), arrangement or understanding with any person, directly or indirectly, to vote, grant any proxy or power of attorney or give instructions with respect to the voting of any of such Shares, in each case, with respect to any of the matters set forth in this Agreement. 

8.2. Specific Enforcement.  It is agreed and understood that monetary damages would not adequately compensate an injured Party for the breach of this Agreement by any other Party, that this Agreement shall be specifically enforceable in any action instituted in any court of the United States or any state having subject matter jurisdiction, and that any breach or threatened breach of this Agreement shall be the proper subject of a temporary or permanent injunction or restraining order.  Further, each Party hereto waives any claim or defense that there is an adequate remedy at law for such breach or threatened breach. 

5

8.3. Remedies Cumulative.  All remedies, either under this Agreement or by law or otherwise afforded to any Party, shall be cumulative and not alternative. 

9. Execution by the Company.  The Company, by its execution in the space provided below, agrees that it will cause the certificates evidencing the Shares issued after the date hereof to bear the legend required by Section 6 hereof, and it shall supply, free of charge, a copy of this Agreement to any holder of a certificate evidencing shares of capital stock of the Company upon written request from such holder to the Company at its principal office.  The Parties hereto do hereby agree that the failure to cause the certificates evidencing the Shares to bear the legend required by Section 6 hereof and/or failure of the Company to supply, free of charge, a copy of this Agreement, as provided under this Section 6, shall not affect the validity or enforcement of this Agreement. 

10. Miscellaneous. 

10.1. Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 

10.2. Notices.  All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given upon the earlier to occur of actual receipt or:  (a) upon personal delivery to the Party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient; or if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent to the respective Parties at the addresses set forth on the signature pages attached hereto (or at such other addresses as shall be specified by notice given in accordance with this Section 10.2). 

10.3. Term.  This Agreement shall terminate and be of no further force or effect upon the earliest to occur of: (a) the transfer by each of the Class B Stockholders of more than eighty percent (80%) of their originally issued shares of Class B Common Stock, (b) the consummation of a Deemed Liquidation Event (as defined in the Certificate of Incorporation), or (c) the consummation of a transaction in which more than fifty percent (50%) of the outstanding voting capital stock of the Company on an as-converted to Class A Common Stock basis is transferred to one or more unaffiliated third parties. 

10.4. Manner of Voting.  The voting of shares pursuant to this Agreement may be effected in person, by proxy, by written consent or in any other manner permitted by applicable law. 

10.5. Amendments and Waivers.  Any term hereof may be amended and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of both of the Class B Stockholders. Notwithstanding the foregoing, any provision hereof may be waived by the waiving Party on such Party’s behalf, without the written consent of any other Party.   

6

10.6. Stock Splits, Stock Dividends, etc.  In the event of any issuance of shares of the Company’s voting securities hereafter to any of the Parties hereto (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization or the like), such shares shall become subject to this Agreement and shall be endorsed with the legend set forth in Section 6. 

10.7. Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 

10.8. Governing Law.  This Agreement shall be governed by and construed in accordance with the General Corporation Law of the State of Delaware as to matters within the scope thereof, and as to all other matters shall be governed by and construed in accordance with the internal laws of the State of Delaware, without regard to conflicts of law principles thereof. 

10.9. Entire Agreement.  Upon the effectiveness of this Agreement, the Original Agreement shall be deemed amended and restated in its entirety by this Agreement, and shall be of no further force or effect.  This Agreement (including the Exhibits hereto) constitutes the full and entire understanding and agreement among the Parties with respect to the subject matter hereof and thereof, and supersedes all other agreements of the Parties relating to the subject matter hereof and thereof. 

10.10. Counterparts.  This Agreement may be executed and delivered by electronic or facsimile signature and in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

10.11. Delays or Omissions.  No delay or omission to exercise any right, power or remedy accruing to any Party under this Agreement, upon any breach or default of any other Party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting Party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence thereto, or of any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default previously or thereafter occurring.  Any waiver, permit, consent or approval of any kind or character on the part of any Party of any breach or default under this Agreement, or any waiver on the part of any Party of any provision or condition of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. 

10.12. Further Assurances.  At any time or from time to time after the date hereof, the Parties agree to cooperate with each other, and at the request of any other Party, to execute and deliver any further instruments or documents and to take all such further action as the other Party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the Parties hereunder. 

7

10.13. Aggregation.  All Shares held or acquired by a Class B Stockholder and/or its affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement, and such affiliated persons may apportion such rights as among themselves in any manner they deem appropriate. 

10.14. Dispute Resolution.  Any unresolved controversy or claim arising out of or relating to this Agreement, except as otherwise provided in this Agreement, shall be submitted to arbitration by one arbitrator mutually agreed upon by the parties, and if no agreement can be reached within thirty (30) days after names of potential arbitrators have been proposed by the American Arbitration Association (the “AAA”), then by one arbitrator having reasonable experience in corporate finance transactions of the type provided for in this Agreement and who is chosen by the AAA.  The arbitration shall take place in Boston, Massachusetts in accordance with the AAA rules then in effect, and judgment upon any award rendered in such arbitration will be binding and may be entered in any court having jurisdiction thereof.  There shall be limited discovery prior to the arbitration hearing as follows:  (a) exchange of witness lists and copies of documentary evidence and documents relating to or arising out of the issues to be arbitrated, (b) depositions of all party witnesses and (c) such other depositions as may be allowed by the arbitrators upon a showing of good cause.  Depositions shall be conducted in accordance with the Delaware Code of Civil Procedure, the arbitrator shall be required to provide in writing to the parties the basis for the award or order of such arbitrator, and a court reporter shall record all hearings, with such record constituting the official transcript of such proceedings. 

The prevailing party shall be entitled to reasonable attorney’s fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Court located in Boston, Massachusetts or any court of the Commonwealth of Massachusetts having subject matter jurisdiction.

10.15. Class B Stockholder Acknowledgements. Each Class B Stockholder acknowledges that it: (i) has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of such Class B Stockholder’s own choice or has voluntarily declined to seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of Gennari Aronson, LLP is acting as counsel to the Company in connection with the transactions contemplated by the Agreement, and is not acting as counsel for such Class B Stockholder. 

 

[Remainder of page intentionally left blank]

8

IN WITNESS WHEREOF, the parties have executed this Amended and Restated Voting and First Refusal Agreement as of the date first above written.

	 

	 

	BOSTON OMAHA CORPORATION

	 

	By:

	/s/ Alex B. Rozek

	 

	 

	Name: Alex B. Rozek

	 

	Title:

	Co-Chief Executive Officer

	 

	 

	 

	 

	 

	 

	 

	 

	BOULDERADO PARTNERS, LLC

	 

	 

	By its Managing Member

	 

	 

	Boulderado Group, LLC, Manager

	 

	 

	 

	 

	By:

	/s/ Alex B. Rozek

	 

	 

	Name: Alex B. Rozek

	 

	Title:

	Manager

	 

	 

	 

	 

	 

	MAGNOLIA CAPITAL FUND, LP

	 

	 

	By its General Partner

	 

	 

	The Magnolia Group, LLC

	 

	 

	 

	 

	By:

	/s/ Adam K. Peterson

	 

	 

	Name: Adam K. Peterson

Signature Page to Amended and Restated Voting and First Refusal Agreement

Exhibit A

	Class B Stockholder

	 

	Shares of Class B Common Stock

	Boulderado Partners, LLC

	 

	527,780

	Magnolia Capital Fund, LP

	 

	527,780

 

  

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