Document:

EX-10.3

 EXHIBIT 10.3 
  

 
 ASSET REPRESENTATIONS REVIEW
AGREEMENT 
 among 
 DISCOVER
CARD EXECUTION NOTE TRUST, 
 as Issuer 

DISCOVER BANK, 
 as Master Servicer
and Servicer 
 and 

[                    ], 

as Asset Representations Reviewer 

Dated as of [            ], 20[    ] 

 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	 ARTICLE I          USAGE AND DEFINITIONS
	  	 	1	  
			
	 Section 1.1.
	 	 Usage and Definitions
	  	 	1	  
	 Section 1.2.
	 	 Additional Definitions
	  	 	1	  
		
	 ARTICLE II         ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER
	  	 	3	  
			
	 Section 2.1.
	 	 Engagement; Acceptance
	  	 	3	  
	 Section 2.2.
	 	 Confirmation of Status
	  	 	3	  
		
	 ARTICLE III       ASSET REPRESENTATIONS REVIEW PROCESS
	  	 	3	  
			
	 Section 3.1.
	 	 Review Notices
	  	 	3	  
	 Section 3.2.
	 	 Identification of Subject Receivables
	  	 	3	  
	 Section 3.3.
	 	 Review Materials
	  	 	3	  
	 Section 3.4.
	 	 Performance of Reviews
	  	 	4	  
	 Section 3.5.
	 	 Review Reports
	  	 	4	  
	 Section 3.6.
	 	 Review Representatives
	  	 	5	  
	 Section 3.7.
	 	 Dispute Resolution
	  	 	5	  
	 Section 3.8.
	 	 Limitations on Review Obligations
	  	 	5	  
		
	 ARTICLE IV       ASSET REPRESENTATIONS REVIEWER
	  	 	6	  
			
	 Section 4.1.
	 	 Representations and Warranties
	  	 	6	  
	 Section 4.2.
	 	 Covenants
	  	 	7	  
	 Section 4.3.
	 	 Fees and Expenses
	  	 	8	  
	 Section 4.4.
	 	 Limitation on Liability
	  	 	8	  
	 Section 4.5.
	 	 Indemnification by Asset Representations Reviewer
	  	 	8	  
	 Section 4.6.
	 	 Indemnification of Asset Representations Reviewer
	  	 	8	  
	 Section 4.7.
	 	 Inspections of Asset Representations Reviewer
	  	 	9	  
	 Section 4.8.
	 	 Delegation of Obligations
	  	 	10	  
	 Section 4.9.
	 	 Confidential Information
	  	 	10	  
	 Section 4.10.
	 	 Personally Identifiable Information
	  	 	11	  
		
	 ARTICLE V         RESIGNATION AND REMOVAL; SUCCESSOR ASSET
REPRESENTATIONS REVIEWER
	  	 	13	  
			
	 Section 5.1.
	 	 Eligibility Requirements for Asset Representations Reviewer
	  	 	13	  
	 Section 5.2.
	 	 Resignation and Removal of Asset Representations Reviewer
	  	 	13	  
	 Section 5.3.
	 	 Successor Asset Representations Reviewer
	  	 	14	  
	 Section 5.4.
	 	 Merger, Consolidation or Succession
	  	 	14	  
		
	 ARTICLE VI       OTHER AGREEMENTS
	  	 	14	  
			
	 Section 6.1.
	 	 Independence of Asset Representations Reviewer
	  	 	14	  
	 Section 6.2.
	 	 No Petition
	  	 	15	  
	 Section 6.3.
	 	 Limitation of Liability of Owner Trustee
	  	 	15	  
	 Section 6.4.
	 	 Termination of Agreement
	  	 	15	  

  
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 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
		
	 ARTICLE VII     MISCELLANEOUS PROVISIONS
	  	 	15	  
			
	 Section 7.1.
	 	 Amendments
	  	 	15	  
	 Section 7.2.
	 	 Assignment; Benefit of Agreement; Third Party Beneficiaries
	  	 	16	  
	 Section 7.3.
	 	 Notices
	  	 	16	  
	 Section 7.4.
	 	 GOVERNING LAW
	  	 	16	  
	 Section 7.5.
	 	 Submission to Jurisdiction
	  	 	17	  
	 Section 7.6.
	 	 WAIVER OF JURY TRIAL
	  	 	17	  
	 Section 7.7.
	 	 No Waiver; Remedies
	  	 	17	  
	 Section 7.8.
	 	 Severability
	  	 	17	  
	 Section 7.9.
	 	 Headings
	  	 	17	  
	 Section 7.10.
	 	 Counterparts
	  	 	17	  
	Schedule A — Representations and Warranties, Review Materials and Tests	  			

  
 ii 

 ASSET REPRESENTATIONS REVIEW AGREEMENT, dated as of
[            ], 20[    ] (this “Agreement”), among DISCOVER CARD EXECUTION NOTE TRUST (the “Issuer”), a Delaware statutory trust, as
Issuer, DISCOVER BANK, a Delaware banking corporation, as Master Servicer and Servicer, and [                    ] (the “Asset
Representations Reviewer”), a [                    ], as Asset Representations Reviewer. 

BACKGROUND 
 In connection with
that certain credit card securitization program sponsored by Discover Bank, Discover Bank transferred Receivables arising in the Accounts to Discover Funding LLC. Discover Funding LLC (“Discover Funding” transferred those
Receivables to Discover Card Master Trust I in exchange for a collateral certificate representing a 100% beneficial interest in those Receivables (the “2007-CC Collateral Certificate”). Discover Funding LLC transferred the 2007-CC
Collateral Certificate to the Issuer. 
 The Issuer has granted a security interest in the 2007-CC Collateral Certificate to U.S. Bank,
N.A., as indenture trustee (the “Indenture Trustee”), for the benefit of the Secured Parties, as security for the Notes issued by the Issuer under the Indenture. 

The Issuer has determined to engage the Asset Representations Reviewer to perform reviews of compliance of Discover Bank and Discover Funding
with respect to the representations and warranties made by Discover Bank and Discover Funding LLC with respect to certain Receivables. 

The parties agree as follows. 

ARTICLE I 
 USAGE AND DEFINITIONS

 Section 1.1. Usage and Definitions. Capitalized terms used but not defined in this Agreement shall have the meaning (if any)
specified in the Pooling and Servicing Agreement (including any supplement thereto) and, if not otherwise defined therein, shall have the meaning specified in the Indenture (including any supplement thereto). 

Section 1.2. Additional Definitions. The following terms have the meanings given below: 

“Asset Representations Review” means the performance by the Asset Representations Reviewer of the testing procedures for each
Test and each Subject Receivable according to Section 3.4. 
 “Confidential Information” has the meaning stated in
Section 4.9(b). 
 “Depositor” means Discover Funding LLC. 

“Information Recipients” has the meaning stated in Section 4.9(a). 

“Indemnified Parties” has the meaning stated in Section 4.6(a). 

 “Indenture” means that certain Amended and Restated Indenture, dated as of
[            ], 20[    ], by and between the Issuer and the Indenture Trustee, as such agreement may be amended, restated, amended and restated, supplemented, replaced
or otherwise modified from time to time. 
 “Issuer PII” has the meaning stated in Section 4.10(a). 

“Note” has the meaning given to such term in the Indenture. 

“Personally Identifiable Information” or “PII” has the meaning stated in Section 4.10(a). 

“Pooling and Servicing Agreement” means the Third Amended and Restated Pooling and Servicing Agreement, dated as of
[            ], 20[    ], among Discover Bank, as Master Servicer and Servicer, the Depositor, and U.S. Bank, N.A., as Trustee, as such agreement may be amended,
restated, amended and restated, supplemented, replaced or otherwise modified from time to time. 
 “Rating Agency
Condition” has the meaning given to such term in the Indenture. 
 “Review Fee” has the meaning stated in
Section 4.3(b). 
 “Review Materials” means, for an Asset Representations Review and a Subject Receivable, the
documents and other materials for each Test listed under “Review Materials” in Schedule A or any additional documents or other materials that the Asset Representations Reviewer may reasonably request. 

“Review Report” means, for an Asset Representations Review, the report of the Asset Representations Reviewer prepared
according to Section 3.5. 
 “Review Satisfaction Date” means the date on which the Holders have voted to cause the
Asset Representations Reviewer to conduct an Asset Representations Review pursuant to Section 715 of the Indenture. 
 “Subject
Receivables” means, for any Asset Representations Review, all Receivables which are 60-Day Delinquent Receivables as of the last day of the calendar month prior to the related Review Satisfaction Date; provided that, any Receivable
which becomes a repurchased Receivable after the Review Satisfaction Date will no longer be a Subject Receivable. 
 “Test”
has the meaning stated in Section 3.4(a). 
 “Test Complete” has the meaning stated in Section 3.4(c). 

“Test Fail” has the meaning stated in Section 3.4(a). 

“Test Pass” has the meaning stated in Section 3.4(a). 

  
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 ARTICLE II 

ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER 

Section 2.1. Engagement; Acceptance. The Issuer engages
[                    ] to act as the Asset Representations Reviewer for the Issuer.
[                    ] accepts the engagement and agrees to perform the obligations of the Asset Representations Reviewer on the terms in this
Agreement. 
 Section 2.2. Confirmation of Status. The parties confirm that the Asset Representations Reviewer is not
responsible for (a) reviewing the Receivables for compliance with the representations and warranties under the Transaction Documents, except as described in this Agreement, or (b) determining whether noncompliance with the representations
or warranties constitutes a breach of the Transaction Documents. 
 ARTICLE III 

ASSET REPRESENTATIONS REVIEW PROCESS 

Section 3.1. Review Notices. On receipt of a Review Notice from the Master Servicer according to Section 715 of the
Indenture, the Asset Representations Reviewer will start an Asset Representations Review. The Asset Representation Reviewer will have no obligation to start an Asset Representations Review until a Review Notice is received. 

Section 3.2. Identification of Subject Receivables. Within [    ] Business Days after receipt of a Review
Notice, the Master Servicer will deliver to the Asset Representations Reviewer and the Indenture Trustee a list of the Accounts related to the Subject Receivables. 

Section 3.3. Review Materials. 

(a) Access to Review Materials. The Servicer will give the Asset Representations Reviewer access to the Review Materials for all of the
Subject Receivables within [    ] Business Days after receipt of the Review Notice in one or more of the following ways: (i) by electronic posting to a password-protected website to which the Asset Representations Reviewer
has access, (ii) by providing originals or photocopies of documents relating to the Receivables at one of the properties of the Servicer or (iii) in another manner agreed by the Servicer and the Asset Representations Reviewer. The Servicer
shall redact or remove Personally Identifiable Information from the Review Materials without changing the meaning or usefulness of the Review Materials for the Asset Representations Review. 

(b) Missing or Insufficient Review Materials. If any of the Review Materials are missing or insufficient for the Asset Representations
Reviewer to perform any Test, the Asset Representations Reviewer will notify the Servicer promptly, and in any event no less than [    ] Business Days before completing the Asset Representations Review, and the Servicer will have
[    ] Business Days to give the Asset Representations Reviewer access to such missing Review Materials or other documents or information to correct the insufficiency. If the missing or insufficient Review Materials have not been
provided by the Servicer within [    ] Business Days, the parties agree that each Subject Receivable subject to the applicable Test(s) will have a Test Fail for the related Test(s) and the Test(s) will be considered completed and
the Review Report will indicate the reason for the Test Fail. 

  
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 Section 3.4. Performance of Reviews. 

(a) Test Procedures. For an Asset Representations Review, the Asset Representations Reviewer will perform for the Subject Receivables
the procedures listed under “Tests” in Schedule A for each representation and warranty (each, a “Test”), using the Review Materials listed for each such Test in Schedule A. For each Test, the Asset Representations Reviewer
will determine in its reasonable judgment if the Test has been satisfied (a “Test Pass”) or if the Test has not been satisfied (a “Test Fail”). The Asset Representations Reviewer will use such determination for all
Subject Receivables that are subject to the same Test. 
 (b) Review Period. The Asset Representations Reviewer will complete the
Review of all of the Subject Receivables within [    ] Business Days after the Review Satisfaction Date. However, if additional Review Materials are provided to the Asset Representations Reviewer under Section 3.3(b), the
Asset Representations Review period will be extended for an additional [    ] Business Days. 
 (c) Completion of
Asset Representations Review for Certain Subject Receivables. Following the delivery of the list of the Subject Receivables and before the delivery of the Review Report by the Asset Representations Reviewer, the Master Servicer may notify
the Asset Representations Reviewer if a Subject Receivable is paid in full by the Obligor or purchased by Discover Bank or the Depositor according to the Pooling and Servicing Agreement. On receipt of notice, the Asset Representations Review of such
Receivables will be considered complete (a “Test Complete”). In this case, the Review Report will indicate a Test Complete for such Receivables and the related reason. 

(d) Previously Reviewed Receivable. If any Test was performed in a prior Asset Representations Review, the Asset Representations
Reviewer will not perform such Test again, but will include the results of such previous Tests in the Review Report for the current Asset Representations Review. 

(e) Termination of Asset Representations Review. If an Asset Representations Review is in process and all Outstanding Notes of the
Issuer will be paid in full on the next Distribution Date, the Master Servicer will notify the Asset Representations Reviewer and the Indenture Trustee no less than ten days before that Payment Date. On receipt of notice, the Asset Representations
Reviewer will terminate the Asset Representations Review immediately and will have no obligation to deliver a Review Report. 

Section 3.5. Review Reports. Within [    ] Business Days after the end of the Asset Representations Review
period under Section 3.4(b), the Asset Representations Reviewer will deliver to the Issuer, the Master Servicer, the Depositor and the Indenture Trustee a Review Report indicating for the Subject Receivables whether there was a Test Pass or a
Test Fail for each Test, or whether the Subject Receivables were assigned a Test Complete and the related reason. The Review Report will contain a summary of the Asset Representations Review results, which may (in whole or in part) be included in
the Issuer’s Form 10-D report for the Due Period in which the Review Report is received. The Asset Representations Reviewer will ensure that the Review Report does not contain any Issuer PII. 

  
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 Section 3.6. Review Representatives. 

(a) Master Servicer Representative. The Master Servicer will designate one or more representatives who will be available to assist the
Asset Representations Reviewer in performing the Asset Representations Review, including responding to requests and answering questions from the Asset Representations Reviewer about access to Review Materials on the Master Servicer’s systems,
obtaining missing or insufficient Review Materials and/or providing clarification of any Review Materials or Tests. 
 (b) Servicer
Representative. The Servicer will designate one or more representatives who will be available to assist the Asset Representations Reviewer in performing the Asset Representations Review, including responding to requests and answering questions
from the Asset Representations Reviewer about access to Review Materials on the Servicer’s systems, obtaining missing or insufficient Review Materials and/or providing clarification of any Review Materials or Tests. The representatives
designated by the Servicer pursuant to this Section 3.6(b) may be the same individuals designated as representatives of the Master Servicer pursuant to Section 3.6(a). 

(c) Asset Representations Reviewer Representative. The Asset Representations Reviewer will designate one or more representatives who
will be available to the Issuer, the Master Servicer, the Servicer, the Depositor and the Indenture Trustee during the performance of an Asset Representations Review. 

(d) Questions About Review. The Asset Representations Reviewer will make appropriate personnel available to respond in writing to
written questions or requests for clarification of any Review Report from the Issuer, the Indenture Trustee, the Depositor, the Master Servicer or the Servicer until the earlier of (i) the payment in full of all of the Outstanding Notes of the
Issuer and (ii) one year after the delivery of the Review Report. The Asset Representations Reviewer will have no obligation to respond to questions or requests for clarification from Noteholders or any other Person and will direct such Persons
to submit written questions or requests to the Indenture Trustee. 
 Section 3.7. Dispute Resolution. The Asset Representations
Reviewer agrees and acknowledges that any Review Report may be used by the Issuer, the Depositor, the Servicer or the Master Servicer in any dispute resolution proceeding. No additional fees or reimbursement of expenses shall be paid to the Asset
Representations Reviewer regarding such use of any Review Report. 
 Section 3.8. Limitations on Review Obligations. 

(a) Review Process Limitations. The Asset Representations Reviewer will have no obligation: 

(i) to determine whether a Delinquency Trigger has occurred or whether the required percentage of Noteholders has voted to
direct a Review under the Indenture, and may rely on the information in any Review Notice delivered to the Asset Representations Reviewer; 

  
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 (ii) to determine which Receivables are subject to an Asset Representations
Review, and may rely on the lists of Subject Receivables provided by the Master Servicer; 
 (iii) to obtain or confirm the
validity of the Review Materials; 
 (iv) to obtain missing or insufficient Review Materials from any party or any other
source; 
 (v) to take any action or cause any other party to take any action under the Receivables Sale and Contribution
Agreement or the Pooling and Servicing Agreement or otherwise to enforce any remedies against Discover Bank or the Depositor, as applicable, for breaches of representations or warranties about the Subject Receivables; or 

(vi) to determine the reason for the delinquency of any Receivable, the creditworthiness of any Obligor, the overall quality of
any Receivable or the compliance by the Master Servicer or the Servicer with its covenants with respect to the servicing of the Receivable. 

(b) No Testing Procedure Limitations. In addition to performing the testing procedures listed under “Tests” in Schedule A,
the Asset Representations Reviewer may perform additional procedures on the Subject Receivables or request additional information about the Subject Receivables that it determines in good faith to be material to the Asset Representations Review. 

ARTICLE IV 
 ASSET REPRESENTATIONS
REVIEWER 
 Section 4.1. Representations and Warranties. The Asset Representations Reviewer represents and warrants to the
Issuer as of the Closing Date: 
 (a) Organization and Qualification. The Asset Representations Reviewer is duly organized and
validly existing as a [            ] in good standing under the laws of [            ]. The Asset Representations Reviewer is
qualified as a foreign [            ] in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its properties or the
conduct of its activities requires the qualification, license or approval, unless the failure to obtain the qualifications, licenses or approvals would not reasonably be expected to have a material adverse effect on the Asset Representations
Reviewer’s ability to perform its obligations under this Agreement. 
 (b) Power, Authority and Enforceability. The Asset
Representations Reviewer has the power and authority to execute, deliver and perform its obligations under this Agreement. The Asset Representations Reviewer has authorized the execution, delivery and performance of this Agreement. This Agreement is
the legal, valid and binding obligation of the Asset Representations Reviewer enforceable against the Asset Representations Reviewer, except as may be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of
creditors’ rights or by general equitable principles. 

  
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 (c) No Conflicts and No Violation. The completion of the transactions contemplated by this
Agreement and the performance of the Asset Representations Reviewer’s obligations under this Agreement will not (A) conflict with, or be a breach or default under, any indenture, mortgage, deed of trust, loan agreement, guarantee or
similar agreement or instrument under which the Asset Representations Reviewer is a debtor or guarantor, (B) result in the creation or imposition of any Lien on any of the properties or assets of the Asset Representations Reviewer under the
terms of any indenture, mortgage, deed of trust, loan agreement, guarantee or similar agreement or instrument, (C) violate the organizational documents of the Asset Representations Reviewer or (D) violate any law or, to the Asset
Representations Reviewer’s knowledge, any order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its
properties that applies to the Asset Representations Reviewer, which, in each case, would reasonably be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement.

 (d) No Proceedings. To the Asset Representations Reviewer’s knowledge, there are no proceedings or investigations pending or
threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its properties (A) asserting the invalidity of
this Agreement, (B) seeking to prevent the completion of the transactions contemplated by this Agreement or (C) seeking any determination or ruling that would reasonably be expected to have a material adverse effect on the Asset
Representations Reviewer’s ability to perform its obligations under, or the validity or enforceability of, this Agreement. 
 (e)
Eligibility. The Asset Representations Reviewer meets the eligibility requirements in Section 5.1. 
 Section 4.2.
Covenants. The Asset Representations Reviewer covenants and agrees that: 
 (a) Eligibility. It will notify the Issuer, the
Depositor and the Master Servicer promptly if it no longer meets the eligibility requirements in Section 5.1. 
 (b) Review Systems;
Personnel. It will maintain business process management and/or other systems necessary to ensure that it can perform each Test and, on execution of this Agreement, will load each Test into these systems. The Asset Representations Reviewer will
ensure that these systems allow for each Subject Receivable and the related Review Materials to be individually tracked and stored as contemplated by this Agreement. The Asset Representations Reviewer will maintain adequate staff that is properly
trained to conduct Asset Representations Reviews as required by this Agreement. 
 (c) Maintenance of Review Materials. It will
maintain copies of any Review Materials, Review Reports and other documents relating to an Asset Representations Review, including internal correspondence and work papers, for a period of two years after the termination of this Agreement, after such
time all such documents shall be destroyed. 

  
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 Section 4.3. Fees and Expenses. 

(a) [Monthly][Annual] Fee. Discover Bank will pay the Asset Representations Reviewer, as compensation for agreeing to act as the Asset
Representations Reviewer under this Agreement, [a monthly][an annual] fee of $[        ]. The [monthly][annual] fee will be paid as agreed in this Section 4.3(a) by Discover Bank until this Agreement is
terminated. 
 (b) Review Fee. Following the completion of an Asset Representations Review and the delivery to Discover Bank, the
Depositor and the Indenture Trustee of the Review Report, or the termination of an Asset Representations Review according to Section 3.4(e), and the delivery to the Master Servicer of a detailed invoice, the Asset Representations Reviewer will
be entitled to a fee of [$[●] for each Account containing a Subject Receivable][$[●] per hour][insert any other rate agreed upon by the Asset Representations Reviewer and Discover Bank] (the “Review Fee”). However, no
Review Fee will be charged for any Tests that were performed in a prior Asset Representations Review or for any Asset Representations Review in which no Tests were completed prior to the Asset Representations Reviewer being notified of a termination
of the Asset Representations Review according to Section 3.4(e). Discover Bank will pay the Review Fee to the Asset Representations Reviewer according to the terms of the detailed invoice from the Asset Representations Reviewer. 

(c) Reimbursement of Travel Expenses. If the Master Servicer or the Servicer provides access to the Review Materials at one of its
properties, Discover Bank will reimburse the Asset Representations Reviewer for its reasonable travel expenses incurred in connection with the Asset Representations Review upon receipt of a detailed invoice. 

Section 4.4. Limitation on Liability. The Asset Representations Reviewer will not be liable to any Person for any action taken, or
not taken, in good faith under this Agreement or for errors in judgment. However, the Asset Representations Reviewer will be liable for its willful misconduct, bad faith or negligence in performing its obligations under this Agreement. In no event
will the Asset Representations Reviewer be liable for special, indirect or consequential losses or damages (including lost profit), even if the Asset Representations Reviewer has been advised of the likelihood of the loss or damage and regardless of
the form of action. 
 Section 4.5. Indemnification by Asset Representations Reviewer. The Asset Representations Reviewer will
indemnify each of the Issuer, the Depositor, the Master Servicer, the Servicer, the Owner Trustee, the Trustee and the Indenture Trustee and their respective directors, officers, employees and agents for all costs, expenses, losses, damages and
liabilities resulting from (a) the willful misconduct, bad faith or negligence of the Asset Representations Reviewer in performing its obligations under this Agreement or (b) the Asset Representations Reviewer’s breach of any of its
representations or warranties in this Agreement. The Asset Representations Reviewer’s obligations under this Section 4.5 will survive the termination of this Agreement, the termination of the Issuer and the resignation or removal of the
Asset Representations Reviewer. 
 Section 4.6. Indemnification of Asset Representations Reviewer. 

(a) Indemnification. Discover Bank will indemnify the Asset Representations Reviewer and its officers, directors, employees and agents
(each, an “Indemnified Person”), for all costs, expenses, losses, damages and liabilities resulting from the performance of its 

  
 8 

 
obligations under this Agreement (including the costs and expenses of defending itself against any loss, damage or liability), but excluding any cost, expense, loss, damage or liability resulting
from (i) the Asset Representations Reviewer’s willful misconduct, bad faith or negligence or (ii) the Asset Representations Reviewer’s breach of any of its representations or warranties in this Agreement. 

(b) Proceedings. Promptly on receipt by an Indemnified Person of notice of a Proceeding against it, the Indemnified Person will, if a
claim is to be made under Section 4.6(a), notify Discover Bank of the Proceeding. Discover Bank may participate in and assume the defense and settlement of a Proceeding at its expense. If Discover Bank notifies the Indemnified Person of its
intention to assume the defense of the Proceeding with counsel reasonably satisfactory to the Indemnified Person, and so long as Discover Bank assumes the defense of the Proceeding in a manner reasonably satisfactory to the Indemnified Person,
Discover Bank will not be liable for legal expenses of counsel to the Indemnified Person unless there is a conflict between the interests of Discover Bank and an Indemnified Person. If there is a conflict, Discover Bank will pay for the reasonable
fees and expenses of separate counsel to the Indemnified Person. No settlement of a Proceeding may be made without the approval of Discover Bank and the Indemnified Person, which approval will not be unreasonably withheld. 

(c) Survival of Obligations. The Discover Bank’s obligations under this Section 4.6 will survive the resignation or removal
of the Asset Representations Reviewer and the termination of this Agreement. 
 (d) Repayment. If Discover Bank makes any payment
under this Section 4.6 and the Indemnified Person later collects any of the amounts for which the payments were made to it from others, the Indemnified Person will promptly repay the amounts to the Discover Bank. 

Section 4.7. Inspections of Asset Representations Reviewer. The Asset Representations Reviewer agrees that, with reasonable prior
notice not more than once during any year, it will permit authorized representatives of the Issuer, the Master Servicer, the Servicer or the Depositor, during the Asset Representations Reviewer’s normal business hours, to examine and review the
books of account, records, reports and other documents and materials of the Asset Representations Reviewer relating to (a) the performance of the Asset Representations Reviewer’s obligations under this Agreement, (b) payments of fees
and expenses of the Asset Representations Reviewer for its performance and (c) a claim made by the Asset Representations Reviewer under this Agreement. In addition, the Asset Representations Reviewer will permit the Issuer’s, the Master
Servicer’s, the Servicer’s or the Depositor’s representatives to make copies and extracts of any of those documents and to discuss them with the Asset Representations Reviewer’s officers and employees. Each of the Issuer, the
Master Servicer, the Servicer and the Depositor will, and will cause its authorized representatives to, hold in confidence the information except if disclosure may be required by law or if the Issuer, the Master Servicer, the Servicer or the
Depositor reasonably determines that it is required to make the disclosure under this Agreement or the other Transaction Documents. The Asset Representations Reviewer will maintain all relevant books, records, reports and other documents and
materials for a period of at least two years after the termination of its obligations under this Agreement. 

  
 9 

 Section 4.8. Delegation of Obligations. The Asset Representations Reviewer may not
delegate or subcontract its obligations under this Agreement to any Person without the consent of the parties to this Agreement, which may be withheld in such party’s sole discretion. 

Section 4.9. Confidential Information. 

(a) Treatment. The Asset Representations Reviewer agrees to hold and treat Confidential Information given to it under this Agreement in
confidence and under the terms and conditions of this Section 4.9, and will implement and maintain safeguards to further assure the confidentiality of the Confidential Information. The Confidential Information will not, without the prior
consent of the Issuer, the Master Servicer and the Servicer, be disclosed or used by the Asset Representations Reviewer, or its officers, directors, employees, agents, representatives or affiliates, including legal counsel (collectively, the
“Information Recipients”) other than for the purposes of performing Asset Representations Reviews of Subject Receivables or performing its obligations under this Agreement. The Asset Representations Reviewer agrees that it will not,
and will cause its Affiliates to not (i) purchase or sell securities issued by Discover Bank or the Issuer or their Affiliates or special purpose entities on the basis of Confidential Information or (ii) use the Confidential Information
for the preparation of research reports, newsletters or other publications or similar communications. 
 (b) Definition.
“Confidential Information” means oral, written and electronic materials (irrespective of its source or form of communication) furnished before, on or after the date of this Agreement to the Asset Representations Reviewer for the
purposes contemplated by this Agreement, including: 
 (i) lists of Subject Receivables and any related Review Materials;

 (ii) origination and servicing guidelines, policies and procedures, and form contracts; and 

(iii) notes, analyses, compilations, studies or other documents or records prepared by the Master Servicer or the Servicer,
which contain information supplied by or on behalf of the Master Servicer, the Servicer or their respective representatives. 
 However, Confidential
Information will not include information that (A) is or becomes generally available to the public other than as a result of disclosure by the Information Recipients, (B) was available to, or becomes available to, the Information Recipients
on a non-confidential basis from a Person or entity other than the Issuer, the Master Servicer or the Servicer before its disclosure to the Information Recipients who, to the knowledge of the Information Recipient is not bound by a confidentiality
agreement with the Issuer, the Master Servicer or the Servicer and is not prohibited from transmitting the information to the Information Recipients, (C) is independently developed by the Information Recipients without the use of the
Confidential Information, as shown by the Information Recipients’ files and records or other evidence in the Information Recipients’ possession or (D) the Issuer, the Master Servicer or the Servicer provides permission to the
applicable Information Recipients to release. 
 (c) Protection. The Asset Representations Reviewer will use best efforts to protect
the secrecy of and avoid disclosure and unauthorized use of Confidential Information, including 

  
 10 

 
those measures that it takes to protect its own confidential information. The Asset Representations Reviewer acknowledges that Personally Identifiable Information is also subject to the
additional requirements in Section 4.10. 
 (d) Disclosure. If the Asset Representations Reviewer is required by applicable law,
regulation, rule or order issued by an administrative, governmental, regulatory or judicial authority to disclose part of the Confidential Information, it may disclose the Confidential Information. However, before a required disclosure, the Asset
Representations Reviewer, if permitted by law, regulation, rule or order, will use its best efforts to provide the Issuer, the Master Servicer and the Servicer with notice of the requirement and will cooperate, at Discover Bank’s expense, in
the Issuer’s, the Master Servicer’s and the Servicer’s pursuit of a proper protective order or other relief for the disclosure of the Confidential Information. If the Issuer, the Master Servicer or the Servicer is unable to obtain a
protective order or other proper remedy by the date that the information is required to be disclosed, the Asset Representations Reviewer will disclose only that part of the Confidential Information that it is advised by its legal counsel it is
legally required to disclose. 
 (e) Responsibility for Information Recipients. The Asset Representations Reviewer will be
responsible for a breach of this Section 4.9 by its Information Recipients. 
 (f) Violation. The Asset Representations Reviewer
agrees that a violation of this Agreement may cause irreparable injury to the Issuer, the Master Servicer or the Servicer and each of the Issuer, the Master Servicer and the Servicer may seek injunctive relief in addition to legal remedies. If an
action is initiated by the Issuer, the Master Servicer or the Servicer to enforce this Section 4.9, the prevailing party will be entitled to reimbursement of costs and expenses, including reasonable attorney’s fees, incurred by it for the
enforcement. 
 Section 4.10. Personally Identifiable Information. 

(a) Definitions. “Personally Identifiable Information” or “PII” means information in any format about
an identifiable individual, including, name, address, phone number, e-mail address, account number(s), identification number(s), any other actual or assigned attribute associated with or identifiable to an individual and any information that when
used separately or in combination with other information could identify an individual. “Issuer PII” means PII furnished by the Issuer, the Master Servicer, the Servicer or their Affiliates to the Asset Representations Reviewer and
PII developed or otherwise collected or acquired by the Asset Representations Reviewer in performing its obligations under this Agreement. 

(b) Use of Issuer PII. The Issuer does not grant the Asset Representations Reviewer any rights to Issuer PII. None of the Issuer, the
Master Servicer or the Servicer intend to share, provide or supply any Issuer PII to the Asset Representations Reviewer. However, if the Asset Representations Reviewer receives any Issuer PII, the Asset Representations Reviewer will immediately
(i) notify the Master Servicer and (ii) indefeasibly delete and destroy such Issuer PII. Notwithstanding the foregoing, the Asset Representations Reviewer must comply with all laws applicable to PII, Issuer PII and the Asset
Representations Reviewer’s business, including any legally required codes of conduct, including those relating to privacy, security and data protection. The Asset Representations Reviewer will implement and maintain reasonable and

  
 11 

 
appropriate practices, procedures and systems, including administrative, technical and physical safeguards to (i) protect the security, confidentiality and integrity of Issuer PII,
(ii) ensure against anticipated threats or hazards to the security or integrity of Issuer PII, (iii) protect against unauthorized access to or use of Issuer PII and (iv) otherwise comply with its obligations under this Agreement.
These safeguards include a written data security plan, employee training, information access controls, restricted disclosures, systems protections (e.g., intrusion protection, data storage protection and data transmission protection) and physical
security measures. 
 (c) Additional Limitations. In addition to the use and protection requirements described in
Section 4.10(b), the Asset Representations Reviewer’s disclosure of Issuer PII is also subject to the following requirements: 

(i) The Asset Representations Reviewer will not disclose Issuer PII to its personnel or allow its personnel access to Issuer
PII. The Asset Representations Reviewer will inform personnel with access to Issuer PII of the confidentiality requirements in this Agreement and train its personnel who may access Issuer PII on the proper deletion of and protection of Issuer PII.

 (ii) The Asset Representations Reviewer will not sell, disclose, provide or exchange Issuer PII with or to any third party
without the prior consent of the Issuer. 
 (d) Notice of Breach. The Asset Representations Reviewer will notify the Issuer and the
Master Servicer promptly in the event of an actual or reasonably suspected security breach, unauthorized access, misappropriation or other compromise of the security, confidentiality or integrity of Issuer PII, if any, and, where applicable,
immediately take action to prevent any further breach. 
 (e) Disposal of Issuer PII. Except where return or disposal is prohibited
by applicable law, promptly on receipt of, any Issuer PII in any medium the Asset Representations Reviewer will destroy such Issuer PII in a manner that prevents its recovery or restoration without charge to the Issuer. 

(f) Compliance; Modification. The Asset Representations Reviewer will cooperate with and provide information to the Issuer regarding
the Asset Representations Reviewer’s compliance with this Section 4.10. The Asset Representations Reviewer and the Issuer agree to modify this Section 4.10 as necessary from time to time for either party to comply with applicable law.

 (g) Audit of Asset Representations Reviewer. The Asset Representations Reviewer will permit the Issuer and the Master Servicer and
their authorized representatives to audit the Asset Representations Reviewer’s compliance with this Section 4.10 during the Asset Representations Reviewer’s normal business hours on reasonable advance notice to the Asset
Representations Reviewer, and not more than once during any year unless circumstances necessitate additional audits. Each of the Issuer and the Master Servicer agrees to make reasonable efforts to schedule any audit described in this
Section 4.10 with the inspections described in Section 4.7. The Asset Representations Reviewer will also permit each of the Issuer and the Master Servicer during normal business hours on reasonable advance written notice to audit any
service providers used by the Asset Representations Reviewer to fulfill the Asset Representations Reviewer’s obligations under this Agreement. 

(h) Affiliates and Third Parties. If the Asset Representations Reviewer processes the PII of the Issuer’s Affiliates or a third
party when performing an Asset Representations Review, and if such Affiliate or third party is identified to the Asset Representations Reviewer, such Affiliate or third party is an intended third-party beneficiary of this Section 4.10, and this
Agreement is intended to benefit the Affiliate or third party. The Affiliate or third party will be entitled to enforce the PII related terms of this Section 4.10 against the Asset Representations Reviewer as if each were a signatory to this
Agreement. 

  
 12 

 ARTICLE V 

RESIGNATION AND REMOVAL; 
 SUCCESSOR
ASSET REPRESENTATIONS REVIEWER 
 Section 5.1. Eligibility Requirements for Asset Representations Reviewer. The Asset
Representations Reviewer must be a Person who (a) is not Affiliated with the Depositor, the Master Servicer, the Servicer, the Indenture Trustee, the Trustee, the Owner Trustee or any of their Affiliates and (b) was not, and is not
Affiliated with a Person that was, engaged by the Sponsor or any Underwriter to perform any due diligence on the Receivables. 

Section 5.2. Resignation and Removal of Asset Representations Reviewer. 

(a) No Resignation of Asset Representations Reviewer. The Asset Representations Reviewer will not resign as Asset Representations
Reviewer unless (a) the Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1 or (b) upon determination that the performance of its duties under this Agreement is no longer permissible under
applicable law. The Asset Representations Reviewer will deliver a notice of its resignation to the Issuer and the Master Servicer, together with an Opinion of Counsel supporting its determination. 

(b) Removal of Asset Representations Reviewer. If any of the following events occur, Discover Bank, by notice to the Asset
Representations Reviewer, may remove the Asset Representations Reviewer and terminate its rights and obligations under this Agreement: 

(i) the Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1; 

(ii) the Asset Representations Reviewer breaches any of its representations, warranties, covenants or obligations in this
Agreement; or 
 (iii) an Insolvency Event of the Asset Representations Reviewer occurs. 

(c) Notice of Resignation or Removal. Discover Bank will notify the Issuer, the Depositor and the Indenture Trustee of any resignation
or removal of the Asset Representations Reviewer. 
 (d) Continue to Perform After Resignation or Removal. No resignation or removal
of the Asset Representations Reviewer will be effective, and the Asset Representations Reviewer will continue to perform its obligations under this Agreement, until a successor Asset Representations Reviewer has accepted its engagement according to
Section 5.3(b). 

  
 13 

 Section 5.3. Successor Asset Representations Reviewer. 

(a) Engagement of Successor Asset Representations Reviewer. Following the resignation or removal of the Asset Representations Reviewer,
the Master Servicer will engage a successor Asset Representations Reviewer who meets the eligibility requirements of Section 5.1. 

(b) Effectiveness of Resignation or Removal. No resignation or removal of the Asset Representations Reviewer will be effective until
the successor Asset Representations Reviewer has executed and delivered to the Issuer and the Master Servicer an agreement accepting its engagement and agreeing to perform the obligations of the Asset Representations Reviewer under this Agreement or
entering into a new agreement with the Issuer on substantially the same terms as this Agreement. 
 (c) Transition and Expenses. If
the Asset Representations Review resigns or is removed, the Asset Representations Reviewer will cooperate with the Issuer and take all actions reasonably requested to assist the Issuer in making an orderly transition of the Asset Representations
Reviewer’s rights and obligations under this Agreement to the successor Asset Representations Reviewer. The Asset Representations Reviewer will pay the reasonable expenses of transitioning the Asset Representations Reviewer’s obligations
under this Agreement and preparing the successor Asset Representations Reviewer to take on the obligations on receipt of an invoice with reasonable detail of the expenses from the Issuer, the Master Servicer or the successor Asset Representations
Reviewer. 
 Section 5.4. Merger, Consolidation or Succession. Any Person (a) into which the Asset Representations Reviewer
is merged or consolidated, (b) resulting from any merger or consolidation to which the Asset Representations Reviewer is a party or (c) succeeding to the business of the Asset Representations Reviewer, if that Person meets the eligibility
requirements in Section 5.1, will be the successor to the Asset Representations Reviewer under this Agreement. Such Person will execute and deliver to the Issuer and the Master Servicer an agreement to assume the Asset Representations
Reviewer’s obligations under this Agreement (unless the assumption happens by operation of law). 
 ARTICLE VI 

OTHER AGREEMENTS 

Section 6.1. Independence of Asset Representations Reviewer. The Asset Representations Reviewer will be an independent contractor
and will not be subject to the supervision of the Issuer, the Depositor, the Master Servicer, the Servicer, the Trustee, the Owner Trustee or the Indenture Trustee for the manner in which it accomplishes the performance of its obligations under this
Agreement. Unless authorized by the Issuer, the Owner Trustee or the Indenture Trustee, the Asset Representations Reviewer will have no authority to act for or represent the Issuer and will not be considered an agent of the Issuer, the Depositor,
the Master Servicer, the Servicer, the Trustee, the Owner Trustee or the Indenture Trustee. Nothing in this Agreement will make the Asset Representations Reviewer and any of the Issuer, the Owner Trustee or the Indenture Trustee members of any
partnership, joint venture or other separate entity or impose any liability as such on any of them. 

  
 14 

 Section 6.2. No Petition. Each of the parties, by entering into this Agreement,
agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after payment in full of (a) all securities issued by the Depositor or by a trust for which the Depositor was a depositor or
(b) the Notes, it will not start or pursue against, or join any other Person in starting or pursuing against (i) the Depositor, (ii) the Issuer or (iii) any Master Trust, respectively, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law. This Section 6.2 will survive the termination of this Agreement. 

Section 6.3. Limitation of Liability of Owner Trustee. It is expressly understood and agreed by the parties hereto that
(i) this Agreement is executed and delivered by the Owner Trustee not individually or personally but solely as Owner Trustee under the Trust Agreement, in the exercise of the powers and authority conferred and vested in it, (ii) each of
the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as a personal representation, undertaking or agreement by the Owner Trustee but is made and intended for the purpose of binding only the
Issuer, (iii) nothing herein contained will be construed as creating any liability on the Owner Trustee individually or personally, to perform any covenant of the Issuer either expressed or implied herein, all such liability, if any, being
expressly waived by the parties to the Indenture and by any Person claiming by, through or under them and (iv) under no circumstances will the Owner Trustee be personally liable for the payment of any indebtedness or expenses of the Issuer or
be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Agreement or any related documents. 

Section 6.4. Termination of Agreement. This Agreement will terminate, except for the obligations under Section 4.6 or as
otherwise stated in this Agreement, on the earlier of (a) the payment in full of all outstanding Notes and the satisfaction and discharge of the Indenture and (b) the date the Issuer is terminated under the Trust Agreement. 

ARTICLE VII 
 MISCELLANEOUS
PROVISIONS 
 Section 7.1. Amendments. 

(a) This Agreement only can be modified in a written document executed by the parties hereto. Notwithstanding anything to the contrary in this
Agreement, so long as any Note is outstanding, this Agreement may not be modified, altered, supplemented or amended unless (a) such amendment shall not, as evidenced by an opinion of counsel or officer’s certificate, materially and
adversely affect the interests of the holders of any outstanding Note or (b) the Rating Agency Condition is satisfied with respect to such amendment except: (i) to clarify an ambiguity, correct an error or correct or supplement any term of
this Agreement that may be defective or inconsistent with the other terms of this Agreement or to provide for, or facilitate the acceptance of this Agreement by, a successor Asset Representations Reviewer or (ii) to convert or supplement any
provision in a manner consistent with the intent of this Agreement. 
 (b) Notice of Amendments. The Master Servicer will notify the
Rating Agencies in advance of any amendment. Promptly after the execution of an amendment, the Master Servicer will deliver a copy of the amendment to the Rating Agencies. 

  
 15 

 Section 7.2. Assignment; Benefit of Agreement; Third Party Beneficiaries. 

(a) Assignment. Except as stated in Section 5.4, this Agreement may not be assigned by the Asset Representations Reviewer without
the consent of the Issuer and the Master Servicer. 
 (b) Benefit of Agreement; Third-Party Beneficiaries. This Agreement is for the
benefit of and will be binding on the parties and their permitted successors and assigns. The Indenture Trustee, for the benefit of the Noteholders, will be a third-party beneficiary of this Agreement entitled to enforce this Agreement against the
Asset Representations Reviewer and the Master Servicer. No other Person will have any right or obligation under this Agreement. 

Section 7.3. Notices. 

(a) Delivery of Notices. All notices, requests, demands, consents, waivers or other communications to or from the parties must be in
writing and will be considered given: 
 (i) on delivery or, for a letter mailed by registered first class mail, postage
prepaid, three days after deposit in the mail; 
 (ii) for a fax, when receipt is confirmed by telephone, reply email or
reply fax from the recipient; 
 (iii) for an email, when receipt is confirmed by telephone or reply email from the
recipient; and 
 (iv) for an electronic posting to a password-protected website to which the recipient has access, on
delivery (without the requirement of confirmation of receipt) of an email to that recipient stating that the electronic posting has occurred. 

(b) Notice Addresses. Any notice, request, demand, consent, waiver or other communication will be delivered or addressed to
(i) (a) in the case of the Issuer, 12 Read’s Way, New Castle, Delaware 19720, Attention: Secretary, telecopy (302) 323-7393 and email as separately provided by the Issuer to the other parties to this Agreement, (b) in the
case of Discover Bank, 12 Read’s Way, New Castle, Delaware 19720, Attention: Secretary, telecopy (302) 323-7393 and email as separately provided by Discover Bank to the other parties to this Agreement and (c) in the case of the Asset
Representation Reviewer, [                    ], telecopy
[                    ] and email as separately provided by the Asset Representations Reviewer to the other parties to this Agreement; or,
(ii) as to each party, at such other address or email as shall be designated by such party in a written notice to each other party. 

Section 7.4. GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF NEW
YORK. 

  
 16 

 Section 7.5. Submission to Jurisdiction. Each party submits to the nonexclusive
jurisdiction of any federal or state court in the state of Delaware for legal proceedings relating to this Agreement. Each party irrevocably waives, to the fullest extent permitted by law, any objection that it may now or in the future have to the
venue of a proceeding brought in such a court and any claim that the proceeding has been brought in an inconvenient forum. 

Section 7.6. WAIVER OF JURY TRIAL. EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO
TRIAL BY JURY IN LEGAL PROCEEDING RELATING TO THIS AGREEMENT. 
 Section 7.7. No Waiver; Remedies. No party’s failure
or delay in exercising a power, right or remedy under this Agreement will operate as a waiver. No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any
other power, right or remedy. The powers, rights and remedies under this Agreement are in addition to any powers, rights and remedies under law. 

Section 7.8. Severability. If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable
from the remaining Agreement and will not affect the validity, legality or enforceability of the remaining Agreement. 
 Section 7.9.
Headings. The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement. 

Section 7.10. Counterparts. This Agreement may be executed in multiple counterparts. Each counterpart will be an original and all
counterparts will together be one document. 
 [Remainder of Page Left Blank] 

  
 17 

 EXECUTED BY: 
  

			
	DISCOVER CARD EXECUTION NOTE TRUST,
	as Issuer
	
	By: Wilmington Trust Company, not in its individual capacity but solely as Owner Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	DISCOVER BANK,
	as Master Servicer and Servicer
		
	By:	 	  

		 	Name:
		 	Title:
	
	[                    ],
	as Asset Representations Reviewer
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Asset Representations Review Agreement] 

 Schedule A 

Representations and Warranties, Review Materials and Tests 
  

					
	 Representations and Warranty
	  	 Review Materials
	  	 TestsExhibit 10.1

 

 

CONTRIBUTION AGREEMENT

 

THIS AGREEMENT (this
“Agreement”) is made and entered into as of the 4th day of September, 2015 (the “Effective Date”),
by and between Limoneira Company, a Delaware corporation (“LIMCO”), and Lewis Santa Paula Member, LLC,
a Delaware limited liability company (“Lewis”). Except as otherwise indicated, the capitalized terms used
herein have the meanings ascribed to such terms in this Agreement.

 

RECITALS

 

A.           LIMCO
is the owner of that certain land in the City of Santa Paula, California (the “City”) described on Exhibit “A-1”
attached hereto known as East Area 1 (the “East Area 1 Land”) and that certain land in the City described
on Exhibit “A-2” attached hereto known as the Mendez Property (the “Mendez Land”, and
together with the East Area 1 Land, the “Land”).

 

B.           LIMCO
and Lewis desire that the following occur in connection with and at the Closing (as defined below), all upon and subject to the
terms and conditions hereinafter set forth:

 

(1)         On
the Business Day prior to the Closing Date (as defined below), Limoneira EA1 Land, LLC, a Delaware limited liability company
(“Limoneira”), which is an Affiliate of LIMCO, will form Limoneira Lewis Community Builders, LLC, a Delaware
limited liability company (the “Company”).

 

(2)         LIMCO,
on behalf of Limoneira, will contribute to the Company a portion of the East Area 1 Property and the Mendez Property (as those
terms are defined below) pursuant to this Agreement, which is collectively referred to herein as the Project Property and contains
the land which is depicted and marked as the “Project Land” on Exhibit “A-3” attached hereto.

 

(3)         Lewis
will pay to LIMCO the Lewis Initial Cash Consideration (as defined below) pursuant to this Agreement.

 

(4)         Limoneira,
as the sole Member of the Company, will assign to Lewis, a fifty percent (50%) interest in the Company, subject to the terms and
conditions of the Company LLC Agreement (the “Lewis JV Interest”).

 

(5)         Lewis
will be admitted as a member of the Company, and Limoneira and Lewis will enter into an amended and restated limited liability
company agreement for the Company in the form of Exhibit “B” attached hereto (the “Company LLC
Agreement”) such that Limoneira and Lewis will be the sole members of the Company.

 

(6)         The
Company and LIMCO will enter into the Lease Agreement (as defined below).

 

(7)         The
Company and LIMCO will enter into the Retained Property Development Agreement (as defined below).

 

NOW, THEREFORE, in
consideration of the mutual undertakings of the parties hereto, it is hereby agreed as follows:

 

    	 	1	 

     

    

  

1.          Certain
Defined Terms. Exhibit “U” attached hereto contains an index of each
defined term used in this Agreement. The following terms shall have the respective meanings set forth below:

 

1.1           “Additional
Permitted Exceptions” has the meaning set forth in Section 4.1.3(c) below.

 

1.2           “Affiliate”
has the meaning set forth in the Company LLC Agreement.

 

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

 

1.4           “CEQA
Challenge” means a judicial challenge to the approval by the City of the Specific Plan Amendment (as defined below) based
on failure to comply with the California Environmental Quality Act (California Public Resources Code Sec. 21000 et seq.).

 

1.5           “CEQA
Challenge Period” means a period of thirty-two (32) days after the approval by the City of the Specific Plan Amendment.

 

1.6           “Caltrans
Agreement” means that certain agreement captioned “Highway Improvement Agreement” dated July 30, 2014
by and between LIMCO and the State of California acting by and through its Department of Transportation (the “State”).

 

1.7           “Closing”
means the closing of the transactions contemplated by this Agreement.

 

1.8           “Closing
Date” means the date that is two (2) business days after the expiration of the CEQA Challenge Period; provided,
however, that if a CEQA Challenge is filed during the CEQA Challenge Period, the Closing Date shall mean the date that is two (2)
business days after the “Satisfactory Resolution Date” (as hereinafter defined) of any such CEQA Challenge, which date
may not be later than one (1) year from the expiration of the CEQA Challenge Period, or such earlier or later date as may
be agreed upon by LIMCO and Lewis.

 

1.9           “Collateral
Agreement” means any agreement, instrument, document or covenant made or entered into under, pursuant to, or in connection
or concurrently with this Agreement (including the Company LLC Agreement, the Lease Agreement, the joinder attached to the Company
LLC Agreement and the Retained Property Development Agreement), and any certifications made in connection herewith or therewith
or amendment or amendments made at any time or times heretofore or hereafter to any of the same.

 

1.10         “Conveyance
Map” means that certain map to be recorded by the Company pursuant to the Retained Property Development Agreement, making
the Retained Property a separate legal parcel.

 

1.11         “County”
means the County of Ventura, California.

 

    	 	2	 

     

    

  

1.12         “Dedication
and Property Improvement Agreement”, means that certain agreement captioned “Dedication and Property Improvement
Agreement” dated February 26, 2014 by and between LIMCO and Telegraph 18201 LLC, a Delaware limited liability
company, recorded as instrument nos. 20140918-00117553, 20140018-00117554 and 20140918-00117555, in the official records of
the County (the “Official Records”).

 

1.13           Intentionally
Omitted.

 

1.14         “Developer”
has the meaning set forth in the Company LLC Agreement.

 

1.15         “Development
Agreement” means that certain agreement captioned “First Amended and Restated Development Agreement by and between
the City of Santa Paula and Limoneira Company”, dated as of February 26, 2015, as such agreement may be further amended
and/or restated from time to time.

 

1.16         “Development
Approvals” means any of the following approvals and authorizations relating to the Project (as defined below): (a) general
plan amendments, (b) specific plans and specific plan amendments, (c) zoning rights, (d) easements, (e) tentative
and final subdivision and parcel maps, (f) conditional use permits, (g) preliminary plans, conceptual plans, design review
approvals, development review approvals and precise plans, (h) demolition, grading, and other building permits, (i) environmental
and regulatory approvals and certifications, (j) any Government Agreements, indemnity, surety or performance bond or similar
assurance to any governmental authority in connection with obtaining Entitlements (as defined below) or other governmental approvals
for the Project, (k) public or private licenses, easements, approvals or utility connection permits (including other requirements
imposed by utility companies as a condition of providing utilities), and (l) any other approvals or authorizations required by
the City or any other governmental authorities for the Project.

 

1.17         “East
Area 1 Property” means the following, to the extent owned by LIMCO, (a) the East Area 1 Land, (b) all
easements, interests in roadways, strips and other rights appurtenant to any of the East Area 1 Land, including all minerals,
oil and gas and other hydrocarbon substances thereon or therein, air rights and sewer rights on, under or above the same or any
part or parcel thereof (collectively, the “East Area 1 Appurtenances”), (c) all improvements,
structures and fixtures now or on the Closing Date located upon any of the East Area 1 Land (collectively, the “East
Area 1 Improvements” and collectively with the East Area 1 Land and the East Area 1 Appurtenances, the
“East Area 1 Real Property”), and (d) except as otherwise specifically provided in this Agreement,
to the extent assignable and related to the Project Real Property (as defined below), the Project Entitlements, Government Agreements,
the Pre-Closing Agreements, reports, pre-paid fees, fee credits, studies, deposits, rights of reimbursement and similar receivables,
the names of any projects or communities comprising a portion of the East Area 1 Real Property, advertising material, telephone
exchange numbers and any other intangible property directly relating to any of such East Area 1 Real Property (collectively,
the “East Area 1 Intangible Property”). Notwithstanding the foregoing, the term “East Area 1
Property” shall not be deemed to include and LIMCO shall not be required to convey to the Company any of, the Excluded Property,
nor shall LIMCO be required to convey to the Company any of the East Area 1 Intangible Property with respect to which the
transactions contemplated by this Agreement require the discretionary approval of an unrelated third party, until such approval
has been obtained, and LIMCO shall use commercially reasonable efforts to obtain such approvals.

 

    	 	3	 

     

    

  

1.18         “Entitlements”
means collectively the Project Entitlements and the Excluded Entitlements (as those terms are defined below).

 

1.19         “Environmental
Law(s)” means the Resource Conservation Recovery Act and the Comprehensive Environmental Response Compensation Liability
Act and all other federal laws and regulations governing the release, discharge and monitoring of hazardous or toxic materials,
as in effect on the date of this Agreement, and all state and local laws and regulations that are equivalent or similar to the
federal laws and regulations recited above or that purport to regulate Hazardous Materials.

 

1.20         “
Environmental Reports” means the reports listed on Exhibit “N” attached hereto.

 

1.21         “Excluded
Agreements” has the meaning set forth in Section 7.1.2(g).

 

1.22         “Excluded
Property” means (a) all of LIMCO’s right, title and interest in and to all of the tangible personal property
owned by LIMCO and now or on the Closing Date on or used in connection with the East Area 1 Real Property, including, without
limitation, LIMCO’s inventory of trees, plants (including all LIMCO’s seedlings and vegetation on or in the East Area 1
Land whether in containers or planted in the ground), equipment, irrigation facilities, pumps, machinery, furniture, furnishings
and supplies (collectively, the “Excluded Personal Property”); (b) all water, water courses, water stock,
and water rights (whether riparian rights, appropriative rights, adjudicated or otherwise), and water allocations appurtenant to
any of the Land excepting the Project Water Rights described in Section 3.4; (c) all Project Entitlements, Government
Agreements, reports, pre-paid fees, fee credits, studies, deposits, rights of reimbursement and similar receivables, and advertising
material to the extent related to the Retained Property (as defined below), including the Excluded Entitlements (as defined below),
all rights and obligations under the Pre-Closing Agreements other than the Assigned Pre-Closing Agreement Rights (as defined below),
which shall be assigned to the Company pursuant to Section 3.2.1 below, and the Excluded Property Information (as defined
below) (collectively, the “Excluded Intangible Property”).

 

1.23         “Excluded
Property Information” has the meaning set forth in Section 4.2 below.

 

1.24         “Government
Agreements” means the agreements between LIMCO and, variously, the City, School District, the State of California and
other governmental authorities under which LIMCO agreed to take certain actions related to and designed to facilitate the Project
and construction of related infrastructure and public facilities for the Project. The Government Agreements in effect as of the
Effective Date are listed on Exhibit “M” attached hereto.

 

1.25         “Hazardous
Materials” means petroleum, natural gas, natural gas liquids or synthetic gas usable for fuel, asbestos and asbestos-containing
materials and any substance, material waste, pollutant or contaminant listed or defined as hazardous or toxic under Environmental
Law; provided, however, Hazardous Materials shall not include (a) motor oil and gasoline contained in or discharged from vehicles
not used primarily for the transport of motor oil or gasoline or (b) materials which are stored or used in the ordinary course
of business, which are stored and used in compliance with all applicable environmental laws and which do not pose any material
threat to the environment or person or property.

 

    	 	4	 

     

    

  

1.26         “Initial
Deposit” means the Two Million Dollars ($2,000,000) in cash required to be deposited by Lewis with the Title Company
(as defined below) pursuant to Section 2 below.

 

1.27           Intentionally
omitted.

 

1.28         “Knowledge”
has the meaning set forth in Section 7.5.1 hereof.

 

1.29         “Lease
Agreement” means a lease agreement between the Company and LIMCO (or an Affiliate of LIMCO) for the lease of the Property
by LIMCO, in the form of Exhibit “C-3”, attached hereto.

 

1.30         “Lewis
Initial Cash Consideration” means the Twenty Million Dollar ($20,000,000) cash consideration required to be paid to LIMCO
by Lewis for the JV Interest Assignment in two deposits of $2,000,000 and $18,000,000 as set forth in Sections 2.1 and 2.2 hereof,
respectively.

 

1.31         “LIMCO
Closing Payment” means the amount, if any, required to be remitted to the Title Company by LIMCO hereunder (in its capacity
as the contributor of the East Area 1 Property and the Mendez Property) in order to consummate the Closing.

 

1.32         “LIMCO
Contribution” means the transfer of fee title to the East Area 1 Property (exclusive of the beneficial interest
in Retained Property as more particularly described in Section 3.3 below) and the Mendez Property required to be made to the
Company by LIMCO on the Closing Date under Section 2 hereof.

 

1.33         “LIMCO
Contribution Value” means Forty Million Dollars ($40,000,000).

 

1.34         “Material
Adverse Effect” means any fact, event or circumstance that would materially and adversely affect the development of the
Project or result in an increase in the cost thereof by Two Million Dollars ($2,000,000).

 

1.35         “Memorandum
of Duty to Reconvey” means the memorandum attached hereto as Exhibit “T”.

 

    	 	5	 

     

    

  

1.36         “Mendez
Property” means the following, to the extent owned by LIMCO, (a) the Mendez Land, (b) the easements, interests
in roadways, strips and other rights, appurtenant to the Mendez Land including all mineral, oil and gas and other hydrocarbon substances
thereon or therein, air rights, and sewer rights on, under or above the same or any part or parcel thereof (collectively, the “Mendez
Appurtenances”), (c) the improvements, structures and fixtures now or on the Closing Date located upon any of the
Mendez Land (collectively, the “Mendez Improvements” and collectively with the Mendez Land and the Mendez Appurtenances,
the “Mendez Real Property”), (d) all tangible personal property located on, and used in connection with,
the Mendez Land and/or Mendez Improvements (collectively, the “Mendez Personal Property”) and (e) except
as otherwise specifically provided in this Agreement, to the extent assignable and related to the Mendez Real Property, all Project
Entitlements, Pre-Closing Agreements, Government Agreements, reports, pre-paid fees, fee credits, studies, deposits, rights of
reimbursement and similar receivables, and any other intangible property directly relating to the Mendez Real Property (collectively,
the “Mendez Intangible Property”). Notwithstanding the foregoing, the term “Mendez Property” shall
not be deemed to include and LIMCO shall not be required to convey to the Company any of the Excluded Property, nor shall LIMCO
be required to convey to the Company any of the Mendez Intangible Property with respect to which the transactions contemplated
by this Agreement require the discretionary approval of an unrelated third party, until such approval has been obtained and LIMCO
shall use commercially reasonable efforts to obtain such approvals.

 

1.37         “Pre-Closing
Agreements” means the agreements entered into by LIMCO to procure services, including design, engineering, business and
other services, but expressly excluding the Excluded Agreements (as defined below), relating to and in support of the development
of the Project in effect as of the Effective Date as well as those agreements entered into entered into by LIMCO after the Effective
Date in accordance with the “Approved Business Plan” (as defined in the Company LLC Agreement) and “Approved
Budget” (as defined in the Company LLC Agreement) of the Company approved by LIMCO and Lewis to procure services, including
design, engineering, business and other services, relating to and in support of the development of the Project, with Lewis’s
consent, as each of the same may be amended from time to time. The Pre-Closing Agreements in effect as of the Effective Date are
listed on Exhibit “O” attached hereto.

 

1.38         “Project”
has the meaning set forth in the Company LLC Agreement.

 

1.39         “Project
Entitlements” means all approvals, authorizations and other actions relating to the Project Property obtained from
the City as more specifically described in the Property Documents (as defined below), including, but not limited to those Development
Approvals. Notwithstanding the foregoing, “Project Entitlements” shall not include any approvals, authorizations or
other actions, including but not limited to the Development Approvals, to the extent related to the Excluded Property or the Retained
Property or the proposed development thereof (collectively, the “Excluded Entitlements”).

 

1.40         “Project
Land” means the land that is depicted on and marked as “Project Land” on Exhibit “A-3”.

 

1.41         “Project
Property” means the Property but not including the Excluded Property or the Retained Property.

 

1.42         “Project
Real Property” has the meaning set forth in Section 3.3 below.

 

1.43         “Property”
means, collectively, the East Area 1 Property and the Mendez Property.

 

1.44         “Retained
Property” means the following, (a) the land that is depicted on and marked as “Retained Property” on
Exhibit “A-3” (the “Retained Land”), and (b) all easements, interests in roadways,
strips and other rights appurtenant to any of the Retained Land, including all minerals, oil and gas and other hydrocarbon substances
thereon or therein air rights, water rights, water courses, water stock and water rights (whether riparian rights, appropriated
rights, adjudicated rights or otherwise), sewer rights on, under or above the same or any part or parcel thereof, (c) all
improvements, structures and fixtures now or on the Closing Date located on the Retained Land).

 

    	 	6	 

     

    

  

1.45         “Retained
Property Development Agreement” means an agreement between the Company and LIMCO for the reconveyance of the Retained
Property and the construction of certain improvements to the Retained Property, in the form of Exhibit C-2.

 

1.46         “Satisfactory
Resolution Date” means the date on which a CEQA Challenge has been finally resolved in favor of LIMCO, whether by judgement,
settlement, dismissal or otherwise.

 

1.47         “School
District” means the Santa Paula Unified School District.

 

1.48         “School
Mitigation Agreements” means collectively (i) that certain agreement captioned “School Mitigation Agreement
by and between Santa Paula Union High School District and Limoneira Company (East Area 1)”, dated as of October 27,
2010, a memorandum of which agreement was recorded on March 8, 2011 as Instrument No. 20110308-00039926-0 in the Official
Records, as amended by that certain agreement captioned “Amendment to School Mitigation Agreement by and between Santa Paula
Union High School District and Limoneira Company (East Area 1)”, dated as of May 8, 2013; (ii) that certain
“School Impact Mitigation Agreement between Santa Paula Elementary School District and Limoneira Company (East Area 1)”,
dated March 23, 2009, a memorandum of which agreement, dated March 10, 2009 was recorded on April 2, 2009 as Instrument
No. 20010402-0051538 in the Official Records; and (iii) that certain document captioned “Memorandum of Understanding
between Santa Paula Unified School District and Limoneira Company”, dated as of March 11, 2015 (the “MOU”),
as such agreements may be further amended from time to time.

 

1.49         “Second
Deposit” means the Eighteen Million Dollars ($18,000,000) in cash required to be deposited by Lewis with the Title Company
(as hereinafter defined) pursuant to Section 2 below.

 

1.50         “Subdivision
Map” means that certain Vesting Tentative Tract Map for Tract No. 5854 dated January 27, 2015 prepared by Jensen
Design and Survey Inc.

 

1.51         “Title
Company” means Lawyer’s Title Company (which is also to act as escrow agent in connection with the Closing).

 

1.52         “Title
Policy” means an owner’s policy of title insurance substantially in the form attached hereto as Exhibit “D”
(the “Pro Forma Title Policy”), modified to include the Additional Permitted Exceptions (as defined below),
if any.

 

2.          Contributions
to, and Assignment of Interest in, the Company. On the Closing Date, subject to the terms
and conditions set forth in this Agreement, (a) LIMCO shall contribute the East Area 1 Property (exclusive of any beneficial
interest in the Retained Property, as more particularly described in Section 3.3 below) and the Mendez Property to the Company;
(b)  the remaining portion of the Lewis Initial Cash Consideration, as adjusted by the prorations and credits specified herein,
shall be released to LIMCO; (c) Limoneira shall assign the Lewis JV Interest to Lewis; and (d) Lewis shall be admitted
as a member of the Company. To evidence the foregoing, on the Closing Date, Limoneira shall assign the Lewis JV Interest to Lewis
pursuant to the form of JV Interest Assignment Agreement (as defined below), and LIMCO shall cause Limoneira to execute and deliver
and Lewis shall execute and deliver the Company LLC Agreement (and thereby amend and restate the initial limited liability company
agreement for the Company entered into by Limoneira). The Lewis Initial Cash Consideration shall be paid by Lewis to LIMCO as
follows:

 

    	 	7	 

     

    

  

2.1           Initial
Deposit. One (1) business day after the execution and delivery of this Agreement,
Lewis shall deliver the Initial Deposit to the Title Company at its offices at 2751 Park View Court, Suite 241, Oxnard,
California 93036. The Initial Deposit shall be delivered to the Title Company by wire transfer of immediately available federal
funds or by bank or cashier’s check drawn on a national bank reasonably satisfactory to LIMCO. The Initial Deposit shall
be released to LIMCO immediately following Lewis’s delivery of such funds to the Title Company.

 

2.2           Second
Deposit. Provided that (i) all of LIMCO’s deliveries set forth in Section
5.2.1 (except for the deliveries to be made by LIMCO on behalf of the Company on the Closing Date, the LIMCO Closing Payment and
the LIMCO Closing Certificate, in lieu of which LIMCO shall deliver a LIMCO Closing Certificate dated as of the Second Deposit
Delivery Date, provided, however, that LIMCO shall still be obligated to deliver a LIMCO Closing Certificate at Closing) have
been delivered to the Title Company, and (ii) the conditions precedent to Lewis’s obligation to proceed with Closing, as
set forth in Sections 4.4, 4.6 and 4.8 (the “Second Deposit Conditions”) of this Agreement have been satisfied
or otherwise waived by Lewis, then two (2) business days after the approval of the Specific Plan Amendment by the Santa Paula
City Council (the “Second Deposit Delivery Date”), Lewis shall deliver the Second Deposit to the Title Company
at its offices at 2751 Park View Court, Suite 241, Oxnard, California 93036. The Second Deposit shall be delivered to the Title
Company by wire transfer of immediately available federal funds or by bank or cashier’s check drawn on a national bank reasonably
satisfactory to LIMCO. Notwithstanding anything set forth in Sections 4.4, 4.6 or 4.8 to the contrary, (a) for the purposes of
determining whether such The Second Deposit Conditions have been satisfied, the date for such determination shall be the Second
Deposit Delivery Date, rather than the Closing Date, provided that Section 4.6 must also be satisfied on the Closing Date,
and (b) to the extent that the condition set forth in Section 4.6 is not satisfied as of the Second Deposit Delivery Date, Lewis
shall deliver the Second Deposit to the Title Company on that the date that is two (2) business days after Lewis receives notice
that such condition has been satisfied. The amounts deposited hereunder shall be held by the Title Company as a deposit against
the Lewis Initial Cash Consideration in accordance with the terms and provisions of this Agreement with interest accruing to Lewis.
At all times that the Second Deposit is being held by Title Company, the Second Deposit shall be invested by the Title Company
in the following investments (“Approved Investments”): (a) United States Treasury obligations, (b) United
States Treasury-backed repurchase agreements issued by a major money center banking institution reasonably acceptable to LIMCO
and Lewis, (c) a money market fund reasonably acceptable to LIMCO and Lewis that invests in U.S. Treasury securities, or
(d) such other manner as may be reasonably agreed to by LIMCO and Lewis. The Second Deposit shall be disposed of by the Title
Company only as provided in this Agreement.

 

    	 	8	 

     

    

  

2.3           Independent
Consideration. Lewis shall deliver to the Title Company concurrently with and in addition
to the Initial Deposit the amount of One Hundred Dollars ($100.00) (the “Independent Consideration”). The Independent
Consideration shall be non-refundable to Lewis as independent consideration for the rights and options extended to Lewis under
this Agreement. The Independent Consideration shall be released to LIMCO immediately following Lewis’s delivery of such
funds to the Title Company. In all instances under this Agreement in which Lewis elects to terminate or is deemed to have terminated
the Agreement and the Initial Deposit and the Second Deposit (to the extent Lewis has made the Second Deposit) is returned to
Lewis, LIMCO shall retain the Independent Consideration when the Initial Deposit and the Second Deposit (to the extent Lewis has
made the Second Deposit) is returned to Lewis. The Independent Consideration shall not be applicable towards the Lewis Initial
Cash Consideration or treated as consideration given by Lewis for any purpose other than stated in this Section 2.3.

 

3.          Additional
Covenants.

 

3.1           Project
Entitlements. On the Closing Date, subject to the terms and conditions set forth in this Agreement, LIMCO shall assign to
Company, without warranty or additional consideration, except for the express representations and warranties of LIMCO in this
Agreement and in any of the documents executed by LIMCO and delivered to Lewis in connection with the Closing, all of LIMCO’s
right, title and interest in the Project Entitlements, and LIMCO and Lewis shall cause the Company, to assume all of LIMCO’s
burdens and obligations under the Project Entitlements, except as otherwise expressly provided in this Agreement, the Company
LLC Agreement, or in the applicable assignment documents executed by LIMCO and Company at the Closing.

 

3.2          Contracts.

 

3.2.1           Assignment.
On the Closing Date, subject to the terms and conditions set forth in this Agreement, LIMCO shall also assign to the Company,
to the extent assignable, without warranty or additional consideration except for the express representations and warranties of
LIMCO in this Agreement, the Company LLC Agreement (other than the representation and warranty set forth in Section 12.17(o)
of the Company LLC Agreement, which shall not apply to this Agreement) and in any of the documents executed by LIMCO and delivered
in connection with the Closing, LIMCO’s rights under the Government Agreements and any indemnities and warranties in favor
of LIMCO set forth in the Pre-Closing Agreements to the extent the same are assignable to the Company on a non-exclusive basis
(collectively, the “Assigned Pre-Closing Agreement Rights”) and Lewis and LIMCO shall cause the Company to
assume, all of LIMCO’s obligations thereunder to the extent related to the Project Property, except as otherwise set forth
in the applicable assignment documents, provided, however, that the following rights and obligations of LIMCO thereunder shall
not be transferred to the Company:

 

(a)          All
rights and obligations related to the Excluded Property;

 

(b)          All
rights and obligations related to the Retained Property;

 

(c)          All
rights and obligations under the Excluded Agreements;

 

(d)          All
rights and obligations under the terms of that certain agreement captioned “Capital Improvement Cost Sharing Agreement for
Improvements to Santa Paula Creek Channel, Agreement No. WPD-2-2013-1” dated February 5, 2013 between the Ventura
County Watershed Protection District and LIMCO;

 

    	 	9	 

     

    

  

(e)          All
rights and obligations under any agreements relating to LIMCO’s agriculture business;

 

(f)          All
rights and obligations under the Pre-Closing Agreements other than the Assigned Pre-Closing Agreement Rights; and

 

(g)          Except
as set forth on Schedule 3.2.1(f) attached hereto, any indemnification obligations or other obligations arising by reason of a
breach by LIMCO prior to the Closing of any of the Government Agreements assigned to the Company or arising by reason of a failure
by LIMCO to perform an obligation under the Project Entitlements that was required by the City or other applicable governmental
authority to be performed by LIMCO prior to the Closing or satisfy a condition required by the City or other applicable governmental
authority to be satisfied by LIMCO prior to the Closing.

 

Except with respect to the Assigned Pre-Closing
Agreement Rights, the foregoing assignment is exclusive as to the Project Property provided LIMCO shall retain (i) the right
but not the obligation to enforce the Government Agreements and the Pre-Closing Agreements as to the Excluded Property and the
Retained Property and (ii) all rights and claims under the Government Agreements and the Pre-Closing Agreements concerning
the Excluded Property and the Retained Property. Subject to the provisions of Section 7.6.2 below, LIMCO may amend the list
of Pre-Closing Agreements set forth in Exhibit “O” before the Closing as additional Pre-Closing Agreements
are signed by LIMCO and shall provide Lewis with copies of all the Pre-Closing Agreements promptly thereafter.

 

3.3           Retained
Property. The parties intend that the real property owned by the Company shall ultimately
be limited to the Project Land, the East Area 1 Appurtenances and the Mendez Appurtenances and the East Area 1 Improvements and
the Mendez Improvements (other than the Excluded Property) (the “Project Real Property”) and shall not include
any of the Retained Property. The parties acknowledge that if LIMCO could legally retain title to the Retained Property, and convey
just the Project Real Property to the Company at the Closing, the obligation hereunder to convey real property to the Company
would have been limited to the Project Real Property. However, since as of the Closing Date the Conveyance Map that will create
the Retained Property as separate legal parcels or tracts will not have been recorded and therefore the Retained Property will
not be separate legal parcels or tracts, LIMCO has agreed to convey the East Area 1 Property (which includes the Retained
Property) to the Company on the condition that LIMCO and Lewis cause the Company to record the Conveyance Map and reconvey the
Retained Property to LIMCO or its designee concurrent with, or immediately after, such recordation without any payment or other
consideration. The parties hereby acknowledge and agree that upon the Closing the Company will acquire only bare legal title to
the Retained Property, and that in no event will it acquire any beneficial rights or obligations incident to ownership with respect
thereto, it being the intent of the parties that the Company hold the Retained Property in trust for the benefit of LIMCO, and
at all times subject to (a) the obligation hereunder to reconvey the Retained Property to LIMCO or its designee free and
clear of any and all encumbrances the Company may have placed on the Retained Property (except as contemplated by this Agreement
or the Retained Property Development Agreement or approved by LIMCO in writing), including any liens of any deeds of trust, and
(b) the restrictions on the Company’s use and enjoyment of the Retained Property, as described below. Since the parties
do not intend that the Company acquire a present beneficial interest in the Retained Property (i.e., an interest with a value
substantially equal to the fee interest) or to transfer the beneficial use of the Retained Property to the Company, all of the
LIMCO Contribution Value and the Lewis Initial Cash Consideration shall be allocated to East Area 1 other than the Retained Property.
LIMCO shall retain the exclusive rights to use and occupy the Retained Property, and the Company shall have no rights to any income
generated by the Retained Property or to develop, improve (except as otherwise contemplated by the Company LLC Agreement or Retained
Property Development Agreement), sell, assign, lease or transfer (other than to LIMCO or its designee as required herein), encumber
or pledge all or any portion of the Retained Property at any time. At Closing LIMCO and Lewis shall cause the Company to deliver
to the Title Company a memorandum of the Company’s reconveyance obligation substantially in the form of Exhibit “T”
attached hereto evidencing the obligation of the Company to reconvey the Retained Property to LIMCO or its designee. The parties
acknowledge and agree that LIMCO shall be and remain responsible for all real estate taxes, personal property taxes and assessments
that may be levied or assessed against the Retained Property, maintenance and repair of the Retained Property (except as otherwise
provided in the Company LLC Agreement or the Retained Property Development Agreement), charges for utilities in respect to the
Retained Property and property insurance covering the Retained Property. Real estate taxes shall be allocated as between the Project
Real Property and the Retained Property on the basis of the relative gross acreage of the Retained Property to all of East Area 1
such that the Retained Property shall be allocated 9.53% of the total real estate taxes on East Area 1. The parties acknowledge
and agree that upon recordation of the Conveyance Map and reconveyance of the Retained Property to LIMCO or its designee, the
Company will cease to have a record title interest or any other interest in the Retained Property. The terms and provisions of
this Section 3.3 shall survive the Closing indefinitely, and shall not be subject to the provisions of Section 7.3.1
below.

 

    	 	10	 

     

    

  

3.4           Water
Rights. Upon not less than thirty (30) days’ prior written notice from the
Manager (as defined in the Company LLC Agreement), LIMCO shall transfer to the Company sufficient groundwater production and/or
water rights to the City to allow the Company to satisfy the requirements of Section 3.2.2 of the Development Agreement,
and any other groundwater production and/or water rights required by the City or other governmental agency in connection with
existing or future entitlements for the Project.

 

4.          Conditions
Precedent. The obligations of the parties to proceed with the Closing are subject
to satisfaction of each of the following conditions precedent on or before the applicable date specified for satisfaction of the
applicable condition. Except as set forth in Section 4.8 below, any of the following conditions precedent may be waived prior
to the Closing but only in writing and only by the party in whose favor such condition exists. If any of such conditions is not
fulfilled (and not waived in writing to the extent permitted hereunder) pursuant to the terms of this Agreement, then the party
in whose favor such condition exists may, in its sole discretion, terminate this Agreement by notice to the other party at any
time prior to the Closing and, in connection with any such termination, LIMCO, Lewis, the Company and their respective Affiliates
shall be released from further obligation or liability hereunder (except for those obligations and liabilities which, pursuant
to the terms of this Agreement, survive such termination). In the event that the failure of the condition is for the benefit of
Lewis under Sections 4.1, 4.4, 4.6, 4.8 or 4.9, then the terms of Section 9.1 shall apply. However, except as otherwise set
forth in Section 4.8 below, if a party proceeds with the Closing, then it shall be deemed to have waived any unsatisfied conditions
precedent for its benefit under this Section 4. Notwithstanding the foregoing, except as otherwise expressly provided in
this Agreement, each of the parties shall use commercially reasonable efforts to satisfy the conditions precedent to the other
party’s obligations.

 

    	 	11	 

     

    

  

4.1          Title
Matters.

 

4.1.1           Pro
Forma Title Policy; Survey. Subject to Section 4.1.2 regarding Additional Title Matters
first disclosed after the Effective Date and Section 4.1.4 regarding monetary liens, Lewis has approved the exceptions to
title shown on the Pro Forma Title Policy, the matters disclosed on the that certain survey that included the Project Real Property
dated March 19, 2013, prepared by Jensen Design and Survey and identified as Job No. LIM01.4521 (“Survey”)
and matters that would be shown on a survey of the Property updated as of the Effective Date. Lewis has also approved the Interim
Binder Form A (the “Binder”), delivered by the Title Company in accordance with the Pro Forma Title Policy,
the cost of which shall be initially paid by LIMCO and shall be included in the Limoneira Pre-Assignment Expenses (as defined
in the Company LLC Agreement).

 

4.1.2           Additional
Title Matters. Approval by Lewis of any additional exceptions to title or survey
matters relating to the Project Real Property first disclosed after the Effective Date that (a) did not arise from acts or
omissions of Lewis or any Affiliate or agent of Lewis, and (b) would have a Material Adverse Effect shall be a condition
precedent to Lewis’s obligations under this Agreement to proceed with the Closing (each an “Additional Title Matter”).
Unless Lewis gives written notice (“Title Disapproval Notice”) that it disapproves any Additional Title Matters,
stating the Additional Title Matters so disapproved, before the sooner to occur of the Closing or ten (10) days after receipt
of written notice of such Additional Title Matters, Lewis shall be deemed to have approved such Additional Title Matters. LIMCO
shall have up to a thirty (30) day period after its receipt of any Title Disapproval Notice within which to remove the disapproved
Additional Title Matters set forth therein from title or obtain from Title Company an unconditional and irrevocable commitment
to issue an endorsement to the Title Policy at the Closing affirmatively insuring against such items in a form reasonably acceptable
to Lewis at no cost or expense to Lewis (LIMCO having the right but not the obligation to do so), and the Closing Date shall be
extended, at LIMCO’s option, to allow for such thirty (30) day period. In the event LIMCO determines at any time that
it is unable or unwilling to remove any one or more of such disapproved Additional Title Matters, LIMCO may give notice to Lewis
to such effect; in such event, Lewis may, at its option, terminate this Agreement upon notice to LIMCO but only if given prior
to the sooner to occur of the Closing or five (5) Business Days after Lewis receives LIMCO’s notice. If Lewis fails
to give such termination notice by such date, Lewis shall be deemed to have waived its objection to, and approved, the matters
set forth in LIMCO’s notice.

 

4.1.3           Exceptions
to Title. Notwithstanding the foregoing, the Company shall be obligated to accept
title to the Property subject to the following exceptions to title (the “Permitted Exceptions”) as to which
Lewis shall have no right to object:

 

(a)          Real
estate taxes and assessments not yet due and payable;

 

(b)          The
exceptions to title or survey exceptions shown on the Pro Forma Title Policy; and

 

(c)          The
following other exceptions to title or survey exceptions: (i) those approved or deemed approved by Lewis pursuant to the above
provisions of this Section 4.1, (ii) those that do not relate to the Project Real Property and (iii) those otherwise
expressly permitted under this Agreement (the “Additional Permitted Exceptions”).

 

    	 	12	 

     

    

  

Conclusive evidence of the availability
of such title shall be the willingness of Title Company to issue the Title Policy to the Company on the Closing Date.

 

4.1.4           LIMCO
Title Obligations. Notwithstanding anything contained in Section 4.1.2 to the contrary,
at or before the Closing, LIMCO shall at or prior to the Closing pay and cause to be removed from title to the Project Real Property
any LIMCO Monetary Liens (as defined below). LIMCO represents and warrants to Lewis that, to LIMCO’s knowledge, as of the
Effective Date there are no unrecorded LIMCO Monetary Liens nor any unrecorded Non-LIMCO Monetary Liens that encumber the Project
Real Property unless listed on Schedule 4.1.4 attached hereto and to the best of the knowledge of LIMCO, no unrecorded Non-LIMCO
Monetary Liens are pending or threatened. LIMCO shall not record or permit the recordation of any LIMCO Monetary Liens before
or at the Closing. “LIMCO Monetary Liens” shall mean trust deeds, mechanics liens, or other monetary liens
(other than (i)  any monetary liens created as a result in whole or in part by or through any act or omission of Lewis or
any Affiliate or agent of Lewis [individually, a “Lewis Lien” and collectively, the “Lewis Liens”),
and (ii)  any monetary liens not created in whole or in part by or through any act or omission of LIMCO or any Affiliate
or agent of LIMCO, to the extent that the aggregate amount of such monetary lien or liens equals or exceeds Two Million and No/100
Dollars ($2,000,000) (individually, a “Non-LIMCO Monetary Lien” and collectively, the “Non-LIMCO Monetary
Liens”)]. Notwithstanding anything contained herein to the contrary, LIMCO shall have no obligation to pay or otherwise
satisfy, remove from title, or cause the Title Company to issue a lien-free endorsement against loss due to any Lewis Lien. With
regards to any Non-LIMCO Monetary Lien, upon its receipt of written notice of any Non-LIMCO Monetary Lien, LIMCO shall use commercially
reasonable efforts to either cause the removal of such Non-LIMCO Monetary Lien from title or to cause the Title Company to issue
a lien-free endorsement insuring against loss due thereto in a form reasonably acceptable to Lewis at no cost or expense to Lewis.
Without limitation on the foregoing, “commercially reasonable efforts” shall not include any obligation on the part
of LIMCO to pay or otherwise satisfy any such Non-LIMCO Monetary Lien or to provide an indemnity agreement in favor of the Title
Company against loss due thereto. LIMCO shall have up to a sixty (60) day period after its receipt of written notice of any Non-LIMCO
Monetary Lien, to satisfy its obligation to use commercially reasonable efforts to remove such Non-LIMCO Monetary Lien from title
or obtain from the Title Company a commitment to issue a lien-free endorsement insuring against loss due thereto, and the Closing
Date shall be extended to allow for such sixty (60) day period. If upon the expiration of such sixty (60) period LIMCO is diligently
pursuing a resolution of any such Non-LIMCO Monetary Lien and needs additional time, the Closing Date shall be further extended,
at LIMCO’s option, to allow for such extra time, not to exceed a total of ninety (90) days from the date of LIMCO’s
receipt of notice of such Non-LIMCO Monetary Lien.  In the event LIMCO determines at any time that it is unable to remove
any one or more of such Non-LIMCO Monetary Liens or provide a lien free endorsement insuring against loss with respect thereto,
 LIMCO may give notice to Lewis to such effect, in such event, Lewis may, at its option terminate this Agreement upon notice
to LIMCO, but only if such notice is given prior to the sooner to occur of the Closing or five (5) Business Days after Lewis receives
LIMCO’s notice.  If Lewis fails to timely give such termination notice, Lewis shall be deemed to have waived its objection
to, and to have approved any such Non-LIMCO Monetary Liens.  If Lewis terminates this Agreement pursuant to this Section 4.1.4,
then no party hereto shall have any further obligation in connection herewith, except under those provisions that expressly survive
a termination of this Agreement, and Lewis shall be entitled to return of the Initial Deposit and the Second Deposit (to the extent
Lewis has made the Second Deposit).

 

    	 	13	 

     

    

  

4.2           Due
Diligence Reviews. Prior to the Effective Date LIMCO delivered to Lewis and Lewis
received or was provided access to copies of those documents and other items relating to the Property that are listed on Exhibit “O”
(“Property Information”), and LIMCO provided Lewis with reasonable access to the Property. Lewis hereby
acknowledges that it has performed and completed (to Lewis’s satisfaction) all of its due diligence examinations, reviews
and inspections of all matters pertaining to the Property and its value and suitability for the Company’s purposes, including
review of all the Project Entitlements and Pre-Closing Agreements, and all physical, environmental and compliance matters and
conditions respecting the Property. Lewis acknowledges and agrees that LIMCO did not and does not have any obligation to make
available to Lewis any of the Excluded Property Information (as defined below). Lewis is hereby advised that the Property Information
may include reports by third parties prepared exclusively for LIMCO, and Lewis may not be entitled to rely upon such reports.
If Lewis desires to rely upon such reports, Lewis shall be responsible for obtaining the agreement of the party who prepared the
same to permit Lewis to rely thereon and LIMCO shall, at no cost to LIMCO, cooperate with Lewis in connection with obtaining reliance
letters from such parties. “Excluded Property Information” means any documents or other information involving
either LIMCO’s financing or refinancing of the Property, pertaining to the potential acquisition of the Property or an interest
therein by any past or prospective purchasers, any third party purchase inquiries and correspondence, appraisals, LIMCO’s
valuation of the Property, internal budgets or financial projections, pertaining to LIMCO’s agribusiness, campaign and other
materials relating to the proposal to amend the City’s 1998 General Plan, Excluded Agreements, and other agreements with
consultants (other than the Pre-Closing Agreements), agreements with the School District, with the City or other government entities
(other than the Government Agreements), any drafts of the documents that comprise the Project Entitlements, drafts of any agreements
that have been executed, any proprietary or confidential documents or documents related to the Excluded Property or the Retained
Property (other than documents relating to the physical and/or environmental condition of the Retained Property) and any other
internal documents.

 

4.3           Lewis’s
Agreement to Indemnify. Lewis agrees to indemnify, defend and hold LIMCO harmless from
and against any liens, claims, causes of action, damages, liabilities, costs and expenses (including reasonable attorneys’
fees) (collectively “Claims”) arising out of Lewis’s inspections or tests of the Property or the entry
by Lewis or any Affiliate or agent of Lewis into or presence upon the Property prior to the Closing but not including any Claims
that arise by reason of the mere discovery by Lewis (or by its Affiliates or consultants) of any physical condition, which physical
condition was not caused by an act or omission of Lewis or any of its consultants or Affiliates, that may affect the use or value
of the Property including, without limitation, the existence of any Hazardous Materials, or of any protected habitat, species
or archeological conditions, or any negative geological condition. Lewis’s obligations under this Section 4.3 shall
survive the termination of this Agreement and shall also survive the Closing, and shall not be subject to the provisions of Section 7.3.1
below.

 

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4.4           Estoppel
Certificates.  Receipt of an estoppel certificate from the City with respect
to the Development Agreement substantially in the form of Exhibit “S” attached hereto (the “City
Estoppel Certificate”) shall be a condition precedent to Lewis’s obligation to proceed with the Closing. LIMCO’s
sole obligation hereunder with respect to the City Estoppel Certificate shall be to utilize commercially reasonable efforts (and,
as used in this Agreement, commercially reasonable efforts shall not include any obligation to institute legal proceedings, incur
any liabilities or expend any monies) to obtain the City Estoppel Certificate. Without limitation on the foregoing, if the City
Estoppel Certificate discloses matters that would have a Material Adverse Effect, that are not consistent with the Development
Agreement, were not disclosed to Lewis in writing prior to the Effective Date, and are not cured or satisfied by LIMCO on or before
the Closing Date, then Lewis shall have the right to terminate this Agreement upon notice to LIMCO, but only if given prior to
the sooner to occur of the Closing and five (5) Business Days after receipt (and failure to terminate timely shall be deemed a
waiver of the right to terminate by reason thereof); and, if Lewis so terminates this Agreement, then no party hereto shall have
any further obligation in connection herewith except under those provisions that expressly survive a termination of this Agreement.

 

4.5           Releases.
Receipt of the following releases with regards to the Project Property only, but not the Retained Property or Excluded Property,
shall be a condition precedent to LIMCO’s obligation to close the transactions contemplated by this Agreement:

 

(a)          a
release of LIMCO from the City of all liability under the Development Agreement with respect to the burdens and obligations thereunder
assumed by the Company under this Agreement;

 

(b)          a
release of LIMCO from the State of all liability under the Caltrans Agreement; and

 

(c)          a
release of LIMCO from the School District of all liability under the School Mitigation Agreements with respect to the burdens and
obligations thereunder assumed by the Company under this Agreement.

 

4.6           Performance
by LIMCO and Affiliates. The performance and observance, in all material respects, by
LIMCO and its Affiliates of all covenants and agreements in this Agreement to be performed or observed by any of them prior to
or on the Closing Date shall be a condition precedent to Lewis’s obligation to proceed with the Closing. Similarly, the
truth and accuracy in all material respects of all representations and warranties of LIMCO and its Affiliates made or to be made
hereunder or under the Company LLC Agreement, as of the Closing Date, shall be a condition precedent to Lewis’s obligation
to proceed with the Closing. LIMCO shall use reasonable efforts to (and to cause its Affiliates to) refrain from taking any action
or intentionally omitting to take any action, which action or omission would result in a breach of any such covenant or agreement
or an exception to or breach of any such representation or warranty.

 

4.7           Performance
by Lewis. The performance and observance, in all material respects, by Lewis and its Affiliates
of all covenants and agreements in this Agreement to be performed or observed by any of them prior to or on the Closing Date shall
be a condition precedent to LIMCO’s obligation to proceed with the Closing. Similarly, the truth and accuracy in all material
respects of all representations and warranties of Lewis and its Affiliates made or to be made hereunder or under the Company LLC
Agreement, as of the Closing Date, shall be a condition precedent to LIMCO’s obligation to proceed with the Closing. Lewis
shall use reasonable efforts to (and to cause its Affiliates to) refrain from taking any action or intentionally omitting to take
any action, which action or omission would result in a breach of any such covenant or agreement or an exception to or breach of
any such representation or warranty.

 

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4.8           Property
Status. Receipt by LIMCO and Lewis of evidence reasonably acceptable to LIMCO and Lewis,
which may be in the form of a determination by the County of Ventura that the East Area 1 Land is a legal lot or a Certificate
of Compliance with respect thereto from the County that conveyance of the East Area 1 Land to the Company will not violate
the California Subdivision Map Act (California Government Code §66410-66499.37) and the issuance by Title Company of a CLTA
116.7 endorsement that the Property is in compliance with the Subdivision Map Act shall be a condition precedent to Closing that
neither Lewis nor LIMCO shall have the right to waive. This condition shall be a condition precedent to both Lewis’s and
LIMCO’s obligation to proceed with the Closing.

 

4.9           Amendment
to East Area 1 Specific Plan SP-3. The approval of the City Council of the City
of Santa Paula of that certain amendment to the East Area 1 Specific Plan SP-3 attached as Exhibit “R” (the “Specific
Plan Amendment”) and the expiration of the CEQA Challenge Period shall be a condition to the respective obligations
of LIMCO and of Lewis to proceed with the Closing. In the event that a CEQA Challenge is filed before the expiration of the CEQA
Challenge Period, the terms of Section 7.6.3 shall apply.

 

5.          Closing
Procedure. The Closing shall occur on the Closing Date, subject to the rights of
each party under this Agreement.

 

5.1           Escrow.
The Closing shall be accomplished pursuant to escrow instructions (the “Escrow Instructions”) among LIMCO,
Lewis and the Title Company, in form of Exhibit “E” attached hereto, which LIMCO and Lewis shall execute
concurrently herewith.

 

5.2          Closing
Deliveries. On or before 11:00 a.m. (Pacific Time) on the Closing Date, the parties
shall deliver to the Title Company the following in connection with the Closing:

 

5.2.1           LIMCO’s
Deliveries. LIMCO shall deliver to, or cause to be delivered to, the Title Company
the following:

 

(a)          A
duly executed and acknowledged grant deed relating to the Property (the “Deed”) in the form of Exhibit “F”
attached hereto;

 

(b)          A
duly executed original general bill of sale, assignment and assumption agreement (the “General Assignment and Assumption”)
in the form of Exhibit “G-1” attached hereto;

 

(c)          A
duly executed original partial assignment and assumption of the Development Agreement (the “Partial Assignment and Assumption
of Development Agreement”) substantially in the form of Exhibit “G-2” attached hereto;

 

(d)          Subject
to Section 4.4, the City Estoppel Certificate if not previously delivered to Lewis;

 

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(e)          Intentionally
Omitted;

 

(f)          A
duly executed original assignment and assumption of the Dedication and Property Improvement Agreement (the “Dedication
and Property Improvement Agreement Assignment and Assumption”) substantially in the form of Exhibit “G-5”
attached hereto;

 

(g)          A
duly executed original assignment and assumption of the School Mitigation Agreements (the “School Mitigation Agreements
Assignment and Assumption”) substantially in the form of Exhibit “G-6” attached hereto;

 

(h)          A
duly executed original assignment and assumption of the Caltrans Agreement (the “Caltrans Assignment and Assumption”)
substantially in the form of Exhibit “G-7” attached hereto;

 

(i)          The
LIMCO Closing Payment, if any, by wire transfer of immediately available federal funds;

 

(j)          Two (2)
original counterparts of the Company LLC Agreement, duly executed by Limoneira;

 

(k)          Two (2)
original counterparts of the Lease Agreement, duly executed by LIMCO;

 

(l)          An
original of the Memorandum of Duty to Reconvey duly executed by LIMCO and the Company and acknowledged;

 

(m)          Two (2)
original counterparts of the Retained Property Development Agreement duly executed by LIMCO;

 

(n)          A
duly executed original certificate of “non-foreign” status in the form of Exhibit “J” attached
hereto, and any required state certificate that is sufficient to exempt LIMCO and the Company from any state withholding requirement
with respect to the Company’s acquisition of the Property (including a California Form 593-C certificate);

 

(o)          A
duly executed original certificate of LIMCO (the “LIMCO Closing Certificate”) in the form of Exhibit “H”
attached hereto updating the representations and warranties contained in Section 7.1 to the Closing Date and noting any changes
that would have a Material Adverse Effect;

 

(p)          A
duly executed original assignment agreement (the “JV Interest Assignment Agreement”) substantially in the form
of Exhibit “G-8” attached hereto;

 

(q)          Evidence
reasonably satisfactory to Lewis and the Title Company respecting the due organization of LIMCO, Limoneira and the Company and
the due authorization and execution by LIMCO of this Agreement and by LIMCO, Limoneira and the Company, as applicable, of the documents
required to be delivered by LIMCO hereunder in connection with the Closing; and

 

    	 	17	 

     

    

  

(r)          Such
additional documents as are contemplated hereby or as may be reasonably required by Lewis or the Title Company in order to consummate
the Closing (provided the same do not increase in any material respect the costs to, or liability or obligations of, LIMCO in any
manner not otherwise provided for herein).

 

5.2.2         Lewis’s
Approval of Third Party Agreements. LIMCO shall have the right to present to Lewis for approval, execution copies or executed
copies of any of the following: The Partial Assignment and Assumption of Development Agreement, the School Mitigation Agreements
Assignment and Assumption, the Caltrans Assignment and Assumption and/or the City Estoppel Certificate. Within five (5) days of
receipt of any of the aforementioned documents from LIMCO, Lewis shall, either (a) confirm that such document is acceptable to
Lewis and satisfies the delivery requirement under this Agreement, or (b) notify LIMCO that such document is not acceptable to
Lewis, in which case Lewis shall concurrently notify LIMCO in writing of the reason why the document is unacceptable to Lewis.

 

5.2.3         Lewis
Deliveries. Lewis shall deliver to or cause to be delivered to the Title Company the following:

 

(a)          Two
(2) originals of the Lease Agreement, duly executed by the Company;

 

(b)          A
duly executed original of the JV Interest Assignment Agreement;

 

(c)          Two
(2) original counterparts of the Company LLC Agreement, duly executed by Lewis;

 

(d)          Two
(2) original counterparts of the Retained Property Development Agreement duly executed by the Company;

 

(e)          A
duly executed original certificate of Lewis (“Lewis Closing Certificate”) in the form of Exhibit “I”
attached hereto updating the representations and warranties contained in Section 7.2 to the Closing Date and noting any material
changes thereto and confirming the release and other provisions therein contained;

 

(f)          Evidence
reasonably satisfactory to LIMCO and the Title Company respecting the due organization of Lewis and each Lewis Guarantor (as defined
in the Company LLC Agreement) and the due authorization and execution of this Agreement and the documents required to be delivered
by Lewis and each Lewis Guarantor hereunder in connection with the Closing; and

 

(g)          Such
additional documents as are contemplated hereby or as may be reasonably required by LIMCO or the Title Company in order to consummate
the Closing (provided that the same do not increase in any material respect the costs to, or liability or obligations of, Lewis
in any manner not otherwise provided for herein).

 

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5.2.4           Mutual
Deliveries. Lewis and LIMCO shall (a) mutually execute and deliver to the Title Company
a “Closing Statement” reflecting the LIMCO Contribution, the Lewis Initial Cash Consideration, the payment
to LIMCO of the Lewis Initial Cash Consideration, and the prorations and adjustments required hereunder, and such other matters
as may be agreed upon by LIMCO and Lewis and (b)cause the execution and delivery of such additional documents as are contemplated
hereby or as may be reasonably required by the Title Company in order to consummate the Closing.

 

5.3           Closing
Costs. Lewis and LIMCO shall cause the Company to pay: (i) the title insurance
costs for the Title Policy (including all endorsements thereto), including costs to update the Survey, if any (ii) all escrow
charges and other escrow-related closing costs in connection with the Closing, (iii) all state, county and city transfer
taxes payable, if any, in connection with the Closing, and (iv) any other closing costs relating to the transactions contemplated
hereby (excluding any amounts payable to any broker or finder). Lewis shall pay all fees, costs or expenses in connection with
Lewis’s due diligence reviews hereunder, LIMCO shall pay the cost of the Binder and Lewis and LIMCO shall each bear their
respective legal fees and costs incurred in connection with negotiating and documenting this Agreement, any agreement attached
hereto as an Exhibit, and the term sheet relating to the transactions contemplated hereby.

 

5.4           Prorations
and Adjustments.

 

5.4.1           Items
to be Prorated. The following shall be prorated between LIMCO and the Company as of the Closing
Date, with LIMCO being responsible for the period prior to the Closing Date, and subject to the terms of the Lease Agreement,
the Company being responsible for the period on or after the Closing Date (on the basis of the actual number of days elapsed over
the applicable period, the actual number of days elapsed over the applicable period before the Closing Date and the actual number
of days elapsed over the applicable period on or after the Closing Date, except as may otherwise be provided below). The parties
acknowledge that LIMCO shall be entitled to revenues from the Property for the period prior to the Closing Date and for the period
after the Closing Date to the extent generated by or attributable to the Excluded Property, the Retained Property or LIMCO’s
agricultural business conducted on any portion of the Property.

 

(a)          All
real estate and personal property taxes and assessments allocated to the Project Real Property for the tax year (the “Current
Tax Year”) in which the Closing occurs (with LIMCO and the Company each being responsible for a pro rata share of such
taxes and assessments based upon the number of days in such tax year occurring before the Closing Date, in the case of LIMCO, and
on or after the Closing Date, in the case of the Company). LIMCO shall be responsible for all real estate and personal property
taxes and assessments in respect of the Project Real Property for any tax year prior to the Current Tax Year and all real estate
and personal property taxes allocated to the Retained Property. Real estate taxes shall be allocated between the Project Real Property
and the Retained Property based upon relative gross acreage such that the Project Real Property would be allocated 90.47% of the
total real property taxes on East Area 1. If any assessments are payable in installments, then the installment for the current
period shall be prorated (with the Company being allocated the obligation to pay any installments due after the Closing Date).
LIMCO shall pay, remain liable for, and shall indemnify, defend and hold harmless the Company and Lewis (as a member of the Company)
from all real estate and personal property taxes and assessments on the Project Real Property allocable to all tax periods ending
prior to the Closing Date, and all costs, expenses, liabilities and penalties incurred by the Company or Lewis as a result thereof.

 

    	 	19	 

     

    

  

(b)          LIMCO
shall be entitled to a credit for all deposits held by utility companies and other third parties in respect of the Property, to
the extent assigned to the Company on the Closing Date.

 

(c)          All
charges for utilities in respect of the Project Real Property shall be prorated outside of the escrow as LIMCO vacates and surrenders
possession of portions of the Project Real Property to the Company pursuant to the Lease Agreement.

 

(d)          Pursuant
to Section 3.4 above, LIMCO shall pay and remain responsible for all real estate taxes, personal property taxes and assessments
on, and insurance and utility charges in respect of, the Retained Property.

 

5.4.2           Calculation.
The prorations and adjustments for the Closing shall be calculated by LIMCO and submitted by written statement to Lewis for reasonable
approval prior to Closing. In the event any prorations or apportionments made under this Section 5.4.2 shall prove to be
incorrect for any reason, then any party shall be entitled to an adjustment to correct the same. Any item that cannot be finally
prorated because of the unavailability of information shall be tentatively prorated on the basis of the best data then available
and reprorated when the information is available. The obligations of LIMCO and Lewis under Section 5.4 shall survive the
Closing until the end of the Survival Period (as defined below). As soon as reasonably practicable after the end of the calendar
year in which the Closing occurs, Lewis shall deliver an accounting and substantiation to LIMCO covering all prorations and adjustments
under this Section 5.4. Within a reasonable period after the parties agree on a reasonably acceptable accounting for the
Closing, LIMCO and the Company shall pay to the other any monies owed to the other thereunder.

 

5.5           Possession.
LIMCO shall deliver possession of the Project Real Property to the Company at the Closing, subject to LIMCO’s right to remain
in possession of the Project Real Property pursuant to the terms and conditions of the Lease Agreement and subject to the provisions
of Section 3.3 above restricting Company’s use and enjoyment of the Retained Property.

 

    	 	20	 

     

    

  

6.          Damage
or Destruction; Condemnation.

 

6.1           Damage
or Destruction. Except as otherwise set forth below, if prior to the Closing the Project
Real Property or any portion thereof is damaged or destroyed, this Agreement shall remain in full force and effect and there shall
be no credit, offset or deduction to the Lewis Initial Cash Consideration, but upon the Closing, LIMCO shall deliver and assign
to the Company any resulting insurance claim or proceeds (other than a claim relating to LIMCO’s agribusiness, which claim
shall be retained by LIMCO). Notwithstanding the foregoing, (a) to the extent that prior to the Closing the Project Real Property
or any portion thereof is damaged or destroyed (except for any damage resulting from rock crushing operations, which shall in
any event, not be considered damage or destruction) as a result of an act of LIMCO or its agents or affiliates, which would cost
in excess of an amount equal to $50,000 to repair or restore, as determined by a contractor mutually acceptable to LIMCO and Lewis
in their reasonable discretion, LIMCO shall pay for the cost to repair or restore the damaged portion of the Project Real Property,
not to exceed Two Million and No/100 Dollars ($2,000,000), and if the cost to repair or restore such damage or destruction would
cost in excess of Two Million and No/100 Dollars ($2,000,000) to repair or restore (either with respect to a single incident or
in the aggregate, with respect to multiple incidents) , as determined by a contractor mutually acceptable to LIMCO and Lewis in
their reasonable discretion, Lewis may either (i) proceed to Closing, or (ii) terminate this Agreement by written notice thereof
delivered to LIMCO within ten (10) days after Lewis has received notice of the contractor’s determination that the
cost to repair or restore such damage or destruction would cost in excess of Two Million and No/100 Dollars ($2,000,000), and
if such termination right is exercised, the Initial Deposit and the Second Deposit (to the extent Lewis has made the Second Deposit)
shall be returned to Lewis and neither party shall have any further rights or obligations under this Agreement except for LIMCO’s
indemnification rights from Lewis under Section 4.3 and both parties’ right to recover damages for the other party’s
breach of the confidentiality restrictions set forth in Section 10.14, and Lewis shall also be entitled to receive from LIMCO
Lewis’s reasonable third-party out-of-pocket expenses reasonably incurred by Lewis in connection with the Project Property,
including legal fees, to a maximum of Three Hundred Thousand Dollars ($300,000), and (b) to the extent that prior to Closing the
Project Real Property or any portion thereof is damaged or destroyed (except for any damage resulting from rock crushing operations,
which shall in any event, not be considered damage or destruction), not as a result of an act of LIMCO, which damage or destruction
would have a Material Adverse Effect, Lewis may either (i) proceed to Closing, or (ii) terminate this Agreement by written notice
thereof delivered to LIMCO within ten (10) days after Lewis has received notice of the contractor’s determination that
the cost to repair or restore such damage or destruction would cost in excess of Two Million and No/100 Dollars ($2,000,000),
and if such termination right is exercised, the Initial Deposit and the Second Deposit (to the extent Lewis has made the Second
Deposit) shall be returned to Lewis and neither party shall have any further rights or obligations under this Agreement except
for LIMCO’s indemnification rights from Lewis under Section 4.3 and both parties’ right to recover damages for the
other party’s breach of the confidentiality restrictions set forth in Section 10.14; provided, however, that Lewis
shall not have any termination right to the extent such damage or destruction was caused by an act of Lewis or any of its agents
or affiliates.

 

6.2           Condemnation.
If prior to the Closing Date, any portion of the Project Real Property is taken pursuant to eminent domain proceedings (or such
proceedings are commenced or threatened), upon LIMCO’s receipt of written notice (or LIMCO otherwise attaining knowledge)
thereof, LIMCO shall give Lewis prompt notice of the same. This Agreement will remain in full force and effect, and there shall
be no credit, offset or deduction to the Lewis Initial Cash Consideration, but upon the Closing, LIMCO shall deliver and assign
to the Company any right, title and interest of LIMCO to all claims respecting any related condemnation (other than any claim
relating to LIMCO’s agribusiness, which claim shall be retained by LIMCO). Notwithstanding the foregoing, if prior to the
Closing, a portion of the Project Real Property is taken or LIMCO or Lewis receives written notice from any governmental agency
indicating its intent to exercise its power of eminent domain of all or any portion of the Project Real Property and, in the reasonable
estimate of the parties hereto as a result of such taking, the number of residential dwelling units that may be constructed on
the Project Real Property or the revenues projected from the sale of residential dwelling units constructed on the Project Real
Property will be reduced by more than five percent (5%), then Lewis and LIMCO shall each have the right to terminate this
Agreement upon notice to the other and to the Title Company on or before the scheduled Closing Date, in which case this Agreement
shall terminate.

 

    	 	21	 

     

    

 

 

7.            Representations,
Warranties and Covenants. 

 

7.1          Representations
and Warranties of LIMCO.

 

7.1.1          General
Disclaimer. Except as specifically set forth in this Agreement, in the Deed, the Company LLC Agreement (other than the
representation and warranty set forth in Section 12.17(o), which shall not apply to this Agreement) and any other
documents delivered to Lewis in connection with the Closing, the transfer of the Project Property hereunder in connection
with the Closing is and will be made on an “as is” basis, without representations and warranties of any kind or
nature, express, implied or otherwise, including any representation or warranty concerning (a) title to the Property,
(b) the physical condition of the Property (including the condition of the soil or any improvements), (c) the
environmental condition of the Property (including the presence or absence of Hazardous Materials on or respecting the
Property), (d) geological or geotechnical conditions, including, without limitation, subsidence, subsurface conditions,
water table, underground water reservoirs, limitations regarding the withdrawal of water, and geologic faults and the
resulting damage of past and/or future faulting, (e) whether, and to the extent to which the Property or any portion
thereof is affected by any stream (surface or underground), body of water, wetlands, flood prone area, flood plain, floodway
or special flood hazard, (f) drainage, (g) soil conditions, including the existence of instability, past soil
repairs, soil additions or conditions of soil fill, or susceptibility to landslides, or the sufficiency of any
undershoring, (h) the presence of endangered species or any environmentally sensitive or protected areas,
(i) zoning or development entitlements to which the Property or any portion thereof may be subject, (j) the
availability of any utilities to the Property or any portion thereof including, without limitation, water, sewage, gas and
electric, (k) usages of adjoining property, (l) access to the Property or any portion thereof, (m) the value,
compliance with the plans and specifications, size, location, age, use, design, quality, description, suitability, structural
integrity, operation, title to, or physical or financial condition of the Property or any portion thereof, or any income,
expenses, charges, liens, encumbrances, rights or claims on or affecting or pertaining to the Property or any part thereof,
(n) the condition or use of the Property or compliance of the Property with any or all past, present or future federal,
state or local ordinances, rules, regulations or laws, building, fire or zoning ordinances, codes or other similar laws,
(o) the existence or non-existence of underground storage tanks, methane gas, surface impoundments, or landfills,
(p) the merchantability of the Property or fitness of the Property for any particular purpose, (q) the truth,
accuracy or completeness of the Property Documents, (r) tax consequences, (s) the financial condition of the
Property, (t) any other representation or warranty respecting any income, expenses, charges, liens or encumbrances,
rights or claims on, affecting or pertaining to the Property or any part thereof, or (u) the status of the Entitlements.
Lewis acknowledges that it has had the opportunity to examine, review and inspect all matters that in Lewis’s judgment
bear upon the Property and its value and suitability for the Company’s purposes, and has either done so or elected not
to do so. Except as to matters specifically set forth in this Agreement, in the Deed, the Company LLC Agreement and any other
documents delivered in connection with the Closing, Lewis will proceed with the Closing solely on the basis of its own
physical and financial examinations, reviews and inspections and the title insurance protection afforded by the Title
Policy.

 

7.1.2           Limited
Representations and Warranties of LIMCO. Without limiting the liability and obligations of LIMCO under Section 4.6, LIMCO hereby
represents and warrants to Lewis and the Company as follows as of the Effective Date:

 

    	 	22	 

     

    

  

(a)          Due
Authority; Consents. This Agreement and all agreements, instruments and documents herein provided to be executed or to be caused
to be executed by LIMCO or any Affiliate of LIMCO are and on the Closing Date will be duly authorized, executed and delivered by
and binding upon LIMCO and each such Affiliate, as applicable. LIMCO is a corporation, duly formed, validly existing and in good
standing under the laws of the state of its formation. LIMCO and each applicable Affiliate of LIMCO is or on the Closing Date will
be duly authorized and qualified to consummate the transactions contemplated by this Agreement. LIMCO has the capacity and authority
to enter into this Agreement, and on the Closing Date it and each applicable Affiliate of LIMCO will have the authority to consummate
the transactions herein provided without the consent or joinder of any other party and will have obtained all consents and permissions
related to the transactions herein contemplated and required under any applicable covenant, agreement, encumbrance, law or regulation.

 

(b)          No
Conflicts. The execution, delivery and performance by LIMCO of this Agreement and the other documents contemplated hereunder
to which it is a party or by which it is bound, and the consummation of the transactions contemplated hereby and thereby, do not
and will not (i) conflict with or result in a breach of or constitute a default under any provision of the governing or organizational
documents of LIMCO, (ii) conflict with, result in the breach of, or constitute a default or accelerate any right under, any
lease, note, bond, mortgage, license, indenture or loan or credit agreement or other binding agreement to which LIMCO may be bound
or the Project Property may be subject, (iii) violate any law, regulation or order or decree of any court, arbitrator or other
governmental authority (A) against or binding upon LIMCO or (B) to which (to LIMCO’s knowledge) the Project Property
is subject.

 

(c)          Litigation.
Except as set forth in Exhibit “K” attached hereto or as otherwise disclosed to Lewis in writing and
claims covered by insurance, to the knowledge of LIMCO, there is no pending (and LIMCO has received no written notice of any pending
or threatened) action, litigation, arbitration, mediation, reference, condemnation or other proceeding (each, a “Proceeding”)
involving any portion of the Project Property, the water rights to be contributed to the Company under Section 3.4 above or Retained
Property or against LIMCO that would have a Material Adverse Effect.

 

(d)          Compliance.
Except as set forth on Exhibit “K”, to the knowledge of LIMCO neither the Project Property or Retained
Property or the condition thereof, is in violation of any law, statute, ordinance, rule or regulation and LIMCO has not received
written notice that is the case.

 

(e)          Leases.
There are no leases, or any other agreement which provides any person or entity with the right to use or occupy any portion of
the Project Real Property that will be in force after the Closing, other than as set forth in any of the Permitted Exceptions and
the Lease Agreement. There are no security deposits under any of the Leases (as defined below), and neither LIMCO nor any of the
respective tenants under the Leases has given written notice of any default under any of the Leases, except as set forth in Exhibit
“K”.

 

    	 	23	 

     

    

 

(f)          Environmental
Matters. Except as set forth on Exhibit “K” attached hereto described in the Property Information,
including the Environmental Reports, or otherwise disclosed to Lewis in writing, LIMCO has not received written notice of any violations
of Environmental Laws concerning the Project Real Property or the Retained Property that has not been cured and to LIMCO’s
knowledge, there are no present violations of Environmental Laws concerning the Project Property or the Retained Property that
have not cured.

 

(g)          Property
Agreements. Except as set forth in Exhibit “K” or otherwise disclosed to Lewis in writing, LIMCO has
not entered into any contracts relating to the Project Real Property that  will be in force after the Closing and are not
cancelable on thirty (30) days’ or less notice, except for the Property Agreements and the Excluded Agreements (as defined
below). As used herein, the term “Property Agreements” means collectively, (i) the Government Agreements, Dedication
and Property Improvement Agreement, and (ii) any contracts entered into in accordance with this Agreement that will be assigned
to the Company at the Closing, and excludes the Excluded Agreements. Except as set forth in Exhibit “K”,
or otherwise disclosed to Lewis in writing, the Property Agreements are in full force and effect and to LIMCO’s knowledge
LIMCO is not in monetary default or in material default of any material non-monetary obligation under any of such Property Agreements
beyond any applicable notice and cure periods, which default could have a Material Adverse Effect. As used herein, “Excluded
Agreements” means LIMCO’s contracts for (i) insurance; (ii) existing property management; (iii) the
engagement of attorneys, accountants and brokers; (iv) contracts entered into in the normal course of LIMCO’s agribusiness,
(v) that certain agreement captioned “Capital Improvement Cost Sharing Agreement for Improvements to Santa Paula Creek
Channel Agreement No. WPD 2 2013 1”, dated February 5, 2013 by and between the Ventura County Watershed Protection District
and LIMCO and (vi) that certain agreement captioned “Rough Grading Contract”, dated November 7, 2013 by and
between Limoneira EA1 Management LLC and MRC Rock & Sand LLC, which Lewis acknowledges may remain in force and effect for the
benefit of LIMCO after Closing, subject to the terms and conditions of the Lease Agreement. The Excluded Agreements are not being
assigned to or assumed by the Company hereunder.

 

(h)          Property
Information. To LIMCO’s knowledge, the Property Information includes all of the studies, reports, maps, drawings, agreements
and any other documents that contain information material to the Project Property or the development of the Project that is in
its possession or under its control, including without limitation the physical condition, current and historic uses, and improvement
and development of the Project Real Property and correspondence that LIMCO has caused to be prepared relating to the ownership
of the Project Property and the Project or of which it has knowledge, except for the Excluded Property Information and the Excluded
Agreements.

 

(i)          Project
Entitlements. Except as set forth on Exhibit “K” or otherwise disclosed to Lewis in writing, and except
for the pending Specific Plan Amendment, (i) LIMCO has not modified or amended any of the Project Entitlements, (ii) LIMCO has
not received written notice that the Project Entitlements have been modified, reduced or terminated, (iii) LIMCO has not, to its
knowledge, failed to satisfy the conditions or requirements of the Project Entitlements required by the City or other governmental
authority to be satisfied by LIMCO, and (iv) to LIMCO’s knowledge, the Project Entitlements are in full force and effect.

 

    	 	24	 

     

    

 

Nothing in this Agreement or in any of
the documents delivered by LIMCO to Lewis in connection with the Closing, including without limitation the limitations and restrictions
in Sections 7.3 or 8 of this Agreement, shall limit or restrict the liability of LIMCO with regards to those representations and
warranties set forth in Sections 7.1.2(a), 7.1.2(b) and Section 10.18 of this Agreement, the representations and warranties
in the JV Interest Assignment and Assumption, in the Company LLC Agreement, in the Deed and in the Lewis Closing Certificate (collectively
the “Excluded Representations”). The representation and warranty set forth in Section 12.17(o) of the Company
LLC Agreement is not included as part of the Excluded Representations and shall not apply to this Agreement but its exclusion shall
not modify or otherwise effect the representations and warranties of LIMCO expressly set forth in this Agreement.

 

7.2         Representations
and Warranties of Lewis. Lewis hereby represents and warrants to LIMCO as of the Effective Date:

 

7.2.1           Due
Authority; Consents. This Agreement and all agreements, instruments and documents herein provided to be executed or to be caused
to be executed or caused to be executed by Lewis or any Affiliates of Lewis are and on the Closing Date will be duly authorized,
executed and delivered by and binding upon Lewis and each such Affiliate, as applicable. Lewis is a corporation, partnership or
limited liability company (as applicable), duly formed, validly existing and in good standing under the laws of the state of its
formation. Lewis and each applicable Affiliate of Lewis is or on the Closing Date will be duly authorized and qualified to consummate
the transactions contemplated by this Agreement. Lewis has the capacity and authority to enter into this Agreement and the authority
to consummate the transactions herein provided without the consent or joinder of any other party and will have obtained all consents
and permissions related to the transactions herein contemplated and required under any applicable covenant, agreement, encumbrance,
law or regulation.

 

7.2.2           No
Conflicts. The execution, delivery and performance by Lewis of this Agreement and the other documents contemplated hereunder
to which it is a party or by which it is bound, and the consummation of the transactions contemplated hereby and thereby, do not
and will not (i) conflict with or result in a breach of or constitute a default under any provision of the governing or organizational
documents of Lewis, (ii) conflict with, result in the breach of, or constitute a default or accelerate any right under, any
lease, note, bond, mortgage, license, indenture or loan or credit agreement or other binding agreement to which Lewis may be bound,
(iii) violate any law, regulation or order or decree of any court, arbitrator or other governmental authority against or binding
upon Lewis, or (iv) result in, or require the creation or imposition of, any encumbrance upon or with respect to the assets
of Lewis.

 

7.3         Survival;
Basket.

 

7.3.1          The
foregoing representations and warranties under Sections 7.1 and 7.2 and in Section 4.1.4 (with the exception of the Excluded
Representations) and all other obligations, provisions and liabilities under this Agreement or any certificate delivered in connection
herewith (including any cause of action by reason of a breach thereof) shall, except as otherwise expressly provided in this Agreement
or in any other documents delivered in connection with the Closing (including in Section 3.3 and Section 4.3 above), survive until
the date that is one (1) year after the Closing (the period beginning on the date hereof and ending on such date being herein
called the “Survival Period”), at which time such representations, warranties, covenants, obligations, provisions,
and liabilities (and any cause of action from a breach thereof) shall terminate, except that (a) such representations, warranties
and liabilities shall continue to survive to the extent written notice of the breach thereof (identifying such breach with reasonable
detail) has been theretofore delivered, and (b) the Survival Period for the representations and warranties in Section 8
and Section 10.18 of this Agreement and in the Deed, Lewis Closing Certificate, and JV Interest Assignment (collectively,
the “Surviving Provisions”) shall be unlimited.

 

    	 	25	 

     

    

 

7.3.2           Notwithstanding
anything to the contrary contained herein, if the Closing of the transactions hereunder shall have occurred: (1) LIMCO shall
have no liability (and Lewis shall make no claim against LIMCO) for a breach of any representation or warranty made in this Agreement
(with the exception of the Excluded Representations) or a breach of any other obligation of LIMCO in this Agreement that occurred
prior to the Closing, but which is not discovered by Lewis until after the Closing or for indemnification under this Agreement
applicable to any such breach, unless the valid claims for all such breaches collectively aggregate to more than Fifty Thousand
Dollars ($50,000); (2) the liability of LIMCO under this Agreement and such documents shall not exceed, in the aggregate,
an amount (the “Maximum Liability Amount”) equal to Two Million Dollars ($2,000,000) minus an amount equal to
any legal fees that Lewis claims it is entitled to receive from LIMCO in connection with any breach by LIMCO of the representations
and warranties set forth in this Agreement (with the exception of the Excluded Representations) (it being understood that, notwithstanding
anything to the contrary in this Agreement or any other document, LIMCO’s liability under this Agreement and the documents
executed by LIMCO in connection herewith for a breach of any representation or warranty made in this Agreement (with the exception
of the Excluded Representations) or a breach of any other obligation of LIMCO in this Agreement which occurred prior to the Closing
but which is not discovered by Lewis until after the Closing or for indemnification under this Agreement applicable to any such
breach shall in no event exceed, in the aggregate, the Maximum Liability Amount), and (3) in no event shall LIMCO be liable for
any consequential or punitive damages. Notwithstanding anything to the contrary set forth in this Section 7.3.2., the indemnity
provision in Section 3.3 of this Agreement and the indemnity provisions in the Retained Property Development Agreement,
the Lease Agreement, the Company LLC Agreement and in any other documents delivered to Lewis in connection with the Closing, shall
not be subject to the Maximum Liability Amount.

 

7.4           Limitation
of Liability. No constituent member or partner in or agent of LIMCO, nor any advisor, trustee, director, officer,
employee, beneficiary, shareholder, member, partner, participant, representative or agent of any partnership, limited
liability company, corporation, trust or other entity that has or acquires a direct or indirect interest in LIMCO, shall have
any personal liability, directly or indirectly, under or in connection with this Agreement or any agreement made or entered
into under or pursuant to the provisions of this Agreement, or any amendment or amendments to any of the foregoing made at
any time or times, heretofore or hereafter, and Lewis and its successors and assigns and, without limitation, all other
persons and entities, shall look solely to LIMCO’s assets for the payment of any claim or for any performance, and
Lewis, on behalf of itself and its successors and assigns, hereby waives any and all such personal liability. Notwithstanding
anything to the contrary contained in this Agreement, neither the negative capital account of any constituent member or
partner in LIMCO (or in any other constituent member or partner of LIMCO), nor any obligation of any constituent member or
partner in LIMCO (or in any other constituent member or partner of LIMCO) to restore a negative capital account or to
contribute capital to LIMCO (or to any other constituent member or partner of LIMCO), shall at any time be deemed to be the
property or an asset of LIMCO or any such other constituent member or partner (and neither Lewis nor any of its successors or
assigns shall have any right to collect, enforce or proceed against or with respect to any such negative capital account or a
member’s or partner’s obligation to restore or contribute). The foregoing shall be in addition to, and not in
limitation of, any further limitation of liability that might otherwise apply (whether by reason of Investor’s
waiver, relinquishment or release of any applicable rights or otherwise). 

 

    	 	26	 

     

    

 

7.5         Knowledge.

 

7.5.1           Definition.
When a statement is made under this Agreement to the “knowledge” of a party (or other similar phrase), it means
that none of the Designated Representatives of such party has any actual knowledge (without further investigation) of any facts
indicating that such statement is not true. None of the Designated Representatives shall have any personal liability in such capacity
under this Agreement.

 

7.5.2           Designated
Representatives. The “Designated Representatives” are limited to the following individuals:

 

      (a)          for
LIMCO: Harold Edwards, Alex Teague, Joseph D. Rumley and Mike Penrod.

 

      (b)          for
Lewis: Robert Martin, John Goodman and Glen Crosby.

 

7.5.3           Knowledge
as a Defense. Notwithstanding the foregoing provisions of Section 7.3.1, neither Lewis nor LIMCO (“Obligated
Party”), or their respective Affiliates, shall have any liability to the other (“Beneficiary”), or
its Affiliates or the Company, and Beneficiary shall make no claim against Obligated Party (or its Affiliates), for a breach of
any representation or warranty, covenant or other obligation of Obligated Party (or its Affiliates) under this Agreement or any
certificate executed by Obligated Party in connection with this Agreement (including for this purpose any matter that would have
constituted a breach of LIMCO’s representations and warranties had they been made on the Closing Date) (a) if the failure
or breach in question constitutes or results from a condition, state of facts or other matter that was known to Beneficiary on
the Effective Date, (b) if the failure or breach in question constitutes or results from a condition, state of facts or other
matter that was known to Beneficiary prior to Closing and Beneficiary proceeds with the Closing, or (c) to the extent, in
the case of a representation and warranty of LIMCO, the same is confirmed by any estoppel from the City with respect to the Development
Agreement delivered to Lewis prior to the Closing and Lewis proceeds with the Closing.

 

7.6         Interim
Covenants. Until the Closing Date or the sooner termination of this Agreement:

 

7.6.1           Existing
Entitlements and Agreements. Except for the Specific Plan
Amendment, LIMCO shall not modify or otherwise amend any of the Project Entitlements, the Government Agreements or the Dedication
and Property Improvement Agreement.

 

    	 	27	 

     

    

 

7.6.2           New
Agreements. Except for agreements entered into in the ordinary course of the conduct of its agribusiness and agreements entered
into pursuant to this Agreement in furtherance of the Project which are approved by Lewis, including pursuant to Sections 7.6.3,
7.6.4, 7.6.5 and 7.6.6 below, LIMCO shall not enter into any agreement that will survive the Closing and cause the Company to incur
a loss in excess of Fifty Thousand and No/100 Dollars ($50,000), without the prior written consent of Lewis, which consent may
not be unreasonably withheld, conditioned or delayed so long as LIMCO pays for the loss incurred by the Company, provided, however,
that if any new agreement entered into by LIMCO causes the Company to incur a loss in excess of Two Million and No/100 Dollars
($2,000,000), then Lewis may, in its sole discretion, elect to terminate this Agreement by written notice thereof delivered to
LIMCO , but only if given prior to the sooner to occur of the Closing and ten (10) days after Lewis has received notice of
the determination that the loss to the Company would be in excess of Two Million and No/100 Dollars ($2,000,000), and if such termination
right is exercised, the Initial Deposit and the Second Deposit (to the extent Lewis has made the Second Deposit) shall be returned
to Lewis and neither party shall have any further rights or obligations under this Agreement except for LIMCO’s indemnification
rights from Lewis under Section 4.3 and both parties’ right to recover damages for the other party’s breach of the
confidentiality restrictions set forth in Section 10.14. Further, if LIMCO delivers a written request for Lewis’s consent
to any of the foregoing, Lewis shall have five (5) Business Days from the date of receipt of such request to reject or deny
the same. In the event Lewis does not respond to such written request within such five (5) business-day period, Lewis’s
consent shall be deemed granted hereunder.

 

7.6.3           Specific
Plan Amendment. LIMCO and Lewis shall cooperate as may be necessary to facilitate the approval of the Specific Plan Amendment
by the Santa Paula City Council. If a CEQA Challenge is filed during the CEQA Challenge Period, (a) LIMCO and Lewis agree to work
together to resolve such CEQA Challenge prior to the date that is one (1) year after the expiration of the CEQA Challenge Period,
(b) Stowell, Zeilenga, Ruth, Vaughn & Treiger LLP or any other attorney approved by both LIMCO and Lewis shall be hired as
counsel to defend the CEQA Challenge, and (c) all commercially reasonable costs or expenses incurred in connection with the resolution
and/or defense of any CEQA Challenge shall be split evenly between LIMCO and Lewis.

 

7.6.4           Local
Hiring Program. Pursuant to Section 8.6.5 of the Development Agreement the Developer (as defined therein) agreed to prepare
the Local Hiring Program (as that term is defined in the Development Agreement) within one hundred eighty (180) days of the City’s
approval of the Vesting Tentative Map (as defined in the Development Agreement). LIMCO and Lewis shall work together and cooperate
to prepare the Local Hiring Program and all commercially reasonable costs or expenses incurred in connection therewith shall be
split evenly between LIMCO and Lewis. If for any reason the Local Hiring Program is not prepared within the timeframe set forth
in Section 8.6.5 of the Development Agreement, then notwithstanding anything contained in this Agreement to the contrary, Lewis
agrees (a) such failure alone shall not be deemed a failure to satisfy any of the Second Deposit Conditions or Lewis’s
conditions to its obligation to proceed with the Closing or constitute a breach of any of LIMCO’s representations or warranties,
and (b) the obligation to prepare and implement the Local Hiring Program shall be assumed by the Company at Closing.

 

    	 	28	 

     

    

 

7.6.5           Leases
and Pre-Closing Agreements. On or before the Closing LIMCO shall terminate (a) that certain lease dated January 1, 1995
by and between LIMCO and Juan Mara for that certain property known as 364 Padre Drive, Santa Paula, California (the “Mara
Lease”), that certain lease dated January 1, 1995 by and between LIMCO and Gildardo R. Mendez for that certain property known
as 187 Padre Drive, Santa Paula, California (the “Mendez Lease”) and that certain lease dated June 30, 2009 by and
between the City of Santa Paula and LIMCO relating to the use of certain soccer fields (the “Soccer Fields Lease”,
and collectively with the Mara Lease and the Mendez Lease, the “Leases”), subject to LIMCO’s right under the
Lease Agreement to enter into subleases with respect to the “Houses” and the “Interim Soccer Fields” (as
those terms are defined in the Lease Agreement) and (b) all of the Pre-Closing Agreements; provided, however, that to the
extent that any of the Pre-Closing Agreements permit termination by LIMCO prior to the Closing Date without any cost or liability
to LIMCO or jeopardy to the continued progress of the development of the Project or the Retained Property, LIMCO shall use commercially
reasonable efforts to earlier terminate such Pre-Closing Agreements.

 

7.6.6           Ongoing
Operations. From the Effective Date through Closing LIMCO and Lewis shall cooperate and coordinate their efforts in order to
maintain progress on certain matters relating to the development of the Project and the Retained Property, including the hiring
of consultants and contractors using Lewis’s standard contract forms reasonably approved by LIMCO, processing modifications
to the Entitlements and continuing the planning and permitting process of the related design and engineering work, all in accordance
with an agreed upon business plan and budget for such pre-Closing work. LIMCO and Lewis hereby agree that the costs incurred by
each of LIMCO and Lewis pursuant to this Section 7.7.6 shall be eligible for reimbursement pursuant to Sections 2.2(b) and
2.2(c) of the Company LLC Agreement as Limoneira’s Pre-Assignment Expenses and Lewis Pre-Assignment Expenses, respectively
(as those terms are defined in the Company LLC Agreement).

 

8.           DISCLAIMER,
RELEASE AND ASSUMPTION. AS AN ESSENTIAL INDUCEMENT TO LIMCO TO ENTER INTO THIS AGREEMENT, AND AS PART OF THE DETERMINATION
OF THE LIMCO CONTRIBUTION VALUE, LEWIS ACKNOWLEDGES, UNDERSTANDS AND AGREES AS OF THE DATE HEREOF AND AS OF THE CLOSING DATE AS
FOLLOWS:

 

8.1         DISCLAIMER.

 

8.1.1           AS-IS,
WHERE-IS. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS DELIVERED TO LEWIS IN CONNECTION WITH
THE CLOSING (OTHER THAN IN SECTION 12.17(o) OF THE COMPANY LLC AGREEMENT, WHICH REPRESENTATION AND WARRANTY SHALL NOT APPLY TO
THIS AGREEMENT), THE TRANSFER OF THE PROPERTY HEREUNDER IS AND WILL BE MADE ON AN “AS IS, WHERE IS” BASIS. LIMCO HAS
NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES OR GUARANTIES OF ANY KIND OR CHARACTER
WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE OF, AS TO, CONCERNING OR WITH RESPECT TO THE
PROPERTY OR ANY OTHER MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, AS TO THE AREA OF THE LAND.

 

    	 	29	 

     

    

 

8.1.2           SOPHISTICATION
OF LEWIS. LEWIS IS A SOPHISTICATED REAL ESTATE INVESTOR WHO IS FAMILIAR WITH THE OWNERSHIP AND OPERATION OF REAL ESTATE PROJECTS
SIMILAR TO THE PROPERTY AND THAT LEWIS HAD ADEQUATE OPPORTUNITY TO COMPLETE ALL PHYSICAL AND FINANCIAL EXAMINATIONS (INCLUDING
ALL OF THE EXAMINATIONS, REVIEWS AND INVESTIGATIONS REFERRED TO IN SECTION 4) RELATING TO THE PROPERTY AND ITS VALUE AND
SUITABILITY FOR THE COMPANY’S PURPOSES IT DEEMS NECESSARY, AND WILL CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT
SOLELY ON THE BASIS OF AND IN RELIANCE UPON SUCH EXAMINATIONS AND THE TITLE INSURANCE PROTECTION AFFORDED BY THE OWNER’S
POLICY AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY LIMCO (OTHER THAN AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN
ANY DOCUMENTS DELIVERED TO LEWIS IN CONNECTION WITH THE CLOSING OTHER THAN THE REPRESENTATION AND WARRANTY IN SECTION 12.17(o)
OF THE COMPANY LLC AGREEMENT), WHICH SHALL NOT APPLY TO THIS AGREEMENT.

 

8.1.3           DUE
DILIGENCE MATERIALS. ANY INFORMATION PROVIDED OR TO BE PROVIDED WITH RESPECT TO THE PROPERTY IS SOLELY FOR LEWIS’S CONVENIENCE
AND WAS OR WILL BE OBTAINED FROM A VARIETY OF SOURCES. LIMCO HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH
INFORMATION AND MAKES NO (AND EXPRESSLY DISCLAIMS ALL) REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION (EXCEPT
TO THE EXTENT PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS DELIVERED TO LEWIS IN CONNECTION WITH THE CLOSING OTHER THAN IN SECTION
12.17(o) OF THE COMPANY LLC AGREEMENT). LIMCO HAS BEEN INVOLVED IN THE PLANNING FOR THE PROPOSED DEVELOPMENT AND ENTITLEMENT OF
THE PROPERTY FOR MANY YEARS AND FACTS CONCERNING THE PROPERTY HAVE CHANGED OVER THE YEARS, AND LIMCO HAS NOT UNDERTAKEN ANY INDEPENDENT
INVESTIGATION AS TO THE CURRENT TRUTH, ACCURACY OR COMPLETENESS OF THE PROPERTY DOCUMENTS, AND LEWIS HEREBY ACKNOWLEDGES THAT THE
INFORMATION AND DESCRIPTIONS CONTAINED IN THE PROPERTY DOCUMENTS MAY NOT BE ENTIRELY ACCURATE AND IS SUBJECT TO CHANGE AND THAT
LEWIS IS REQUIRED TO INDEPENDENTLY REVIEW THE MATERIAL AND BE SATISFIED AS TO ITS ACCURACY AND CORRECTNESS, AND EXCEPT AS OTHERWISE
EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN ANY DOCUMENTS DELIVERED TO LEWIS IN CONNECTION WITH THE CLOSING OTHER THAN THE REPRESENTATIONS
AND WARRANTIES IN SECTION 12.17(o) OF THE COMPANY LLC AGREEMENT, WHICH SHALL NOT APPLY TO THIS AGREEMENT, LEWIS IS NOT RELYING
UPON ANY STATEMENTS MADE BY LIMCO WITH REGARD TO SUCH ISSUES. LIMCO SHALL NOT BE LIABLE FOR ANY MISTAKES, OMISSIONS, MISREPRESENTATION
OR ANY FAILURE TO INVESTIGATE THE PROPERTY NOR SHALL LIMCO BE BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS,
APPRAISALS, ENVIRONMENTAL ASSESSMENT REPORTS, OR OTHER INFORMATION PERTAINING TO THE PROPERTY OR THE OPERATION THEREOF, FURNISHED
BY LIMCO, ITS MANAGER, OR BY ANY REAL ESTATE BROKER, AGENT, REPRESENTATIVE, AFFILIATE, DIRECTOR, OFFICER, SHAREHOLDER, EMPLOYEE,
SERVANT OR OTHER PERSON OR ENTITY ACTING ON LIMCO’S BEHALF (COLLECTIVELY, “LIMCO RELATED PARTIES”).

 

    	 	30	 

     

    

 

8.2           RELEASE.
EXCEPT AS OTHERWISE PROVIDED IN SECTION 7.3.2 ABOVE AND EXCEPT FOR THE EXCLUDED REPRESENTATIONS AND ANY OBLIGATIONS TO BE
PERFORMED BY LIMCO OR ANY LIMCO RELATED PARTY AFTER THE CLOSING, LEWIS RELEASES LIMCO AND ALL LIMCO RELATED PARTIES FROM ALL CLAIMS
WHICH LEWIS OR ANY PARTY RELATED TO OR AFFILIATED WITH LEWIS (A “LEWIS RELATED PARTY”) HAS OR MAY HAVE ARISING FROM
OR RELATED TO ANY MATTER OR THING RELATED TO OR IN CONNECTION WITH THE PROPERTY INCLUDING THE PROJECT DOCUMENTS AND OTHER INFORMATION
REFERRED TO HEREIN, ANY CONSTRUCTION DEFECTS, ERRORS OR OMISSIONS IN THE DESIGN OR CONSTRUCTION OR ANY OTHER ACTIVE OR PASSIVE
NEGLIGENCE, AND ANY ENVIRONMENTAL CONDITIONS, AND LEWIS SHALL NOT LOOK TO ANY LIMCO RELATED PARTIES IN CONNECTION WITH THE FOREGOING
FOR ANY REDRESS OR RELIEF. THIS RELEASE SHALL BE GIVEN FULL FORCE AND EFFECT ACCORDING TO EACH OF ITS EXPRESSED TERMS AND PROVISIONS,
INCLUDING THOSE RELATING TO UNKNOWN AND UNSUSPECTED CLAIMS, DAMAGES AND CAUSES OF ACTION, AND, IN THAT REGARD, LEWIS HEREBY EXPRESSLY
WAIVES ALL RIGHTS AND BENEFITS IT MAY NOW HAVE OR HEREAFTER ACQUIRE UNDER CALIFORNIA CIVIL CODE SECTION 1542 WHICH PROVIDES: “A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME
OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

	   
	INITIALS OF LEWIS

 

8.3         Certain
Property Disclosures. With respect to all of the following matters in this Section 8.3 and without limitation on any
other provisions of this Agreement, Lewis has evaluated such matters prior to the Effective Date in accordance with the provisions
of Section 4. Lewis shall assume all responsibility for such matters and shall not seek any payment or other action from
LIMCO (and LIMCO shall have no obligation) with respect to such matters; such matters have already been taken into account in
calculation of the LIMCO Contribution Value; and such matters shall not be deemed to expand in any manner the limited representations
and warranties of LIMCO contained herein.

 

8.3.1           LIMCO
has informed Lewis and Lewis acknowledges that there is a Native American cultural site located on the Project Real Property in
the area designated as “Undeveloped Open Space” on the Subdivision Map, and that such area is required to remain as
open space. Lewis acknowledges that the location of such Native American burial ground previously disclosed to Lewis may not be
exact.

 

8.3.2           LIMCO
has informed Lewis and Lewis acknowledges that there is a setback requirement along the Western boundary of the Land adjacent to
the Santa Paula Creek Channel in which construction is restricted that ranges from 160' to 250'.

 

    	 	31	 

     

    

 

8.3.3           LIMCO’s
Environmental Inquiry. LIMCO has informed Lewis and Lewis acknowledges that the sole inquiry and investigation LIMCO has conducted
in connection with the environmental condition of the Property on or after the Effective Date is to obtain the Environmental Reports,
and that, for all purposes, including California Health and Safety Code Section 25359.7, LIMCO has acted reasonably in solely
relying upon said inquiry and investigation. The foregoing shall not limit the terms of Section 7.1.2(f).

 

8.3.4           Natural
Hazard Disclosure Statement Requirement Compliance. Notwithstanding anything to the contrary in this Section 8.3.4 below,
Lewis hereby knowingly, voluntarily and intentionally waives its right to disclosure of natural hazards found in the Natural Hazard
Disclosure Statement Act, California Government Code Sections 8589.3, 8589.4, and 51183.5, California Public Resources Code
Sections 2621.9, 2694, and 4136, and California Civil Code Section 1102.6c(d), and any successor statutes or laws (the
“Act”). This waiver is a material inducement to LIMCO’s decision to enter into this Agreement and the
calculation of the LIMCO Contribution Value. Lewis acknowledges that LIMCO would not have entered into this Agreement but for this
waiver. Lewis acknowledges that prior to the Effective Date, Lewis received the Natural Hazard Disclosure Statements (collectively,
“Natural Hazard Disclosure Statements”) and that Lewis shall have executed and delivered to LIMCO the acknowledgement
contained in the Natural Hazard Disclosure Statement at or prior to Closing. Lewis acknowledges that the Natural Hazard Disclosure
Statement was delivered pursuant to the Act. Lewis acknowledges and agrees that nothing contained in the Natural Hazard Disclosure
Statement shall release Lewis from its obligation to fully investigate the condition of the Property, including without limitation
whether the Property is located in any natural hazard areas, and that Lewis will have the opportunity to engage a consultant that
has the expertise to perform such investigations. LIMCO does not warrant or represent either the accuracy or completeness of the
information in the Natural Hazard Disclosure Statement, and Lewis shall use same merely as a part in its overall investigation
of the Property. Lewis further acknowledges and agrees that the matters set forth in the Natural Hazard Disclosure Statement may
change on or prior to the Closing, that the Natural Hazard Disclosure Statement has been prepared by a third party and that neither
LIMCO nor the third-party preparer has an obligation to update, modify or supplement the Natural Hazard Disclosure Statement.

 

8.4           Survival.
This Section 8 shall survive any termination of this Agreement and the Closing indefinitely.

 

9.           Termination
and Certain Remedies.

 

9.1           Failure
of Condition Benefiting Lewis; Default by LIMCO. If the transactions herein provided shall not close by reason of the failure
of satisfaction of any conditions benefiting Lewis under Section 4 or the termination of this agreement in accordance with
Section 6, then no party shall have any further obligation or liability under this Agreement (other than those obligations
that expressly survive the termination of this Agreement); provided, however, that if the transactions herein provided shall not
close for any reason other than Lewis’s default under this Agreement, then Lewis shall be entitled, as its sole and exclusive
remedy for such default, (a) to terminate this Agreement, and (b) obtain a return of the Initial Deposit from LIMCO
within ten (10) days after the termination of the Agreement and the Second Deposit (to the extent Lewis has made the Second Deposit)
from the Title Company immediately unless the transactions hereunder shall not close by reason of LIMCO’s default under
this Agreement, in which event Lewis shall also be entitled to receive from LIMCO Lewis’s reasonable third-party out-of-pocket
expenses reasonably incurred by Lewis in connection with the Project Property, including legal fees, to a maximum of Three Hundred
Thousand Dollars ($300,000) and no party shall have any further obligation or liability to the other hereunder. This section does
not limit Lewis’s right to indemnification pursuant to Section 10.1 or to recover damages for LIMCO’s breach
of the confidentiality restrictions set forth in Section 10.14.

 

    	 	32	 

     

    

 

9.2           CONDITION
BENEFITING LIMCO; DEFAULT BY LEWIS. IF THE TRANSACTIONS HEREIN PROVIDED SHALL NOT CLOSE BY REASON OF THE FAILURE OF SATISFACTION
OF ANY CONDITIONS BENEFITTING LIMCO OR LEWIS UNDER SECTION 4, THEN NO PARTY SHALL HAVE ANY FURTHER OBLIGATION OR LIABILITY
UNDER THIS AGREEMENT (OTHER THAN THOSE OBLIGATIONS THAT EXPRESSLY SURVIVE THE TERMINATION OF THE AGREEMENT); PROVIDED, HOWEVER,
THAT IF THE TRANSACTIONS HEREIN PROVIDED SHALL NOT CLOSE ON ACCOUNT OF LEWIS’S DEFAULT UNDER THIS AGREEMENT, THEN THIS AGREEMENT
SHALL AUTOMATICALLY TERMINATE AND LIMCO SHALL RETAIN THE INITIAL DEPOSIT AS FULL COMPENSATION AND LIQUIDATED DAMAGES UNDER THIS
AGREEMENT FOR SUCH FAILURE TO CLOSE. IN CONNECTION WITH THE FOREGOING, THE PARTIES RECOGNIZE THAT LIMCO WILL INCUR EXPENSES IN
CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND THAT THE PROJECT PROPERTY WILL BE REMOVED FROM THE MARKET;
FURTHER, THAT IT IS EXTREMELY DIFFICULT AND IMPRACTICABLE TO ASCERTAIN THE EXTENT OF DETRIMENT TO LIMCO CAUSED BY THE DEFAULT
BY LEWIS UNDER THIS AGREEMENT AND THE FAILURE OF THE CONSUMMATION OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT OR THE AMOUNT
OF COMPENSATION LIMCO SHOULD RECEIVE AS A RESULT OF LEWIS’S DEFAULT. IN THE EVENT THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT DO NOT OCCUR ON ACCOUNT OF LEWIS’S DEFAULT, THEN THE TERMINATION OF THIS AGREEMENT AND THE RETENTION OF THE INITIAL
DEPOSIT SHALL BE LIMCO’S SOLE AND EXCLUSIVE REMEDY UNDER THIS AGREEMENT BY REASON OF SUCH DEFAULT, SUBJECT TO THE PROVISIONS
OF THIS AGREEMENT (INCLUDING THIS SECTION 9.2) THAT EXPRESSLY SURVIVE A TERMINATION OF THIS AGREEMENT. NOTWITHSTANDING THE
FOREGOING, THIS SECTION SHALL NOT LIMIT LIMCO’S RIGHT TO INDEMNIFICATION PURSUANT TO SECTION 4.3 OR 10.1 OR TO RECOVER
DAMAGES FOR LEWIS’S BREACH OF THE CONFIDENTIALITY RESTRICTIONS SET FORTH IN SECTION 10.14 OR ITS ATTORNEYS’ FEES
UNDER SECTION 10.10.

 

 

	LIMCO’s Initials	 	Lewis’s Initials

 

    	 	33	 

     

    

  

10.         Miscellaneous.

 

10.1         Brokers.
Lewis and/or business entities affiliated with Lewis are California BRE licensee(s) acting as principals in this transaction and
Lewis was represented by John Goodman (Broker Licensee No. 00853263) and Bob Martin (Broker License No. 00963777), respectively,
who are employees of Lewis Operating Corp., an affiliate of Purchaser, and such licensees are not receiving any commission or fee
as a licensee and are representing Purchaser exclusively in this transaction. In the event of any claim for a broker’s or
finder’s fee or commission in connection with the transactions contemplated by this Agreement based upon any statement or
agreement alleged to have been made or action alleged to have been taken by LIMCO, then LIMCO shall indemnify, defend and hold
harmless Lewis from the same. In the event of any claim for a broker’s or finder’s fee or commission in connection
with the transactions contemplated by this Agreement based upon any statement or agreement alleged to have been made or action
alleged to have been taken by Lewis, then Lewis shall indemnify, defend and hold harmless LIMCO from the same. No broker or finder
shall have any rights by reason of this Agreement.

 

10.2         Exhibits;
Entire Agreement; Modification. All recitals at the beginning of this Agreement and all Exhibits attached and referred to
in this Agreement are hereby incorporated herein as if fully set forth in (and shall be deemed to be a part of) this
Agreement. Without limitation, LIMCO shall not be in breach or in default for disclosing information on the wrong exhibit,
and to the extent any information is disclosed on any exhibit, it shall be deemed disclosed to Lewis for all purposes under
this Agreement. This Agreement contains the entire agreement between the parties respecting the matters herein set forth and
supersedes all prior agreements between the parties hereto respecting such matters (including any term sheets). (For the
avoidance of doubt, this Agreement does not supersede the Company LLC Agreement, the Lease or the Retained Property
Development Agreement and none of the Company LLC Agreement, the Lease or the Retained Property Development Agreement
supersedes this Agreement.) This Agreement may not be modified or amended except by written agreement signed by all parties
hereto.

 

10.3         Business
Day. Whenever action must be taken (including the giving of notice or the delivery of documents) under this Agreement during
a certain period of time (or by a particular date) that ends (or occurs) on a non-Business Day, then such period (or date) shall
be extended until the immediately following Business Day.

 

10.4         Interpretation.
Section headings shall not be used in construing this Agreement. Each party acknowledges that such party and its counsel, after
negotiation and consultation, have reviewed and revised this Agreement. As such, the terms of this Agreement shall be fairly construed
and the usual rule of construction, to the effect that any ambiguities herein should be resolved against the drafting party, shall
not be employed in the interpretation of this Agreement or any amendments, modifications or exhibits hereto or thereto. The words
“herein”, “hereof”, “hereunder”, “hereby”, “this Agreement” and other
similar references shall be construed to mean and include this Agreement and all amendments and supplements hereto unless the context
shall clearly indicate or require otherwise. Whenever the words “including”, “include” or “includes”
are used in this Agreement, they shall be interpreted in a non-exclusive manner. Except as otherwise indicated, all Exhibit and
Section references in this Agreement shall be deemed to refer to the Exhibits and Sections in this Agreement. As used herein, “good
faith” means “honesty in fact”, as such phrase is used in the Uniform Commercial Code, as adopted in the
State of Delaware as of the date of this Agreement.

 

    	 	34	 

     

    

 

10.5         Governing
Law; Venue. This Agreement shall be construed and enforced in accordance with the laws of California (without regard to conflicts
of laws), and each of the parties hereto (a) irrevocably and unconditionally agrees to be subject to the exclusive jurisdiction
of the courts of the State of California and of the Federal courts sitting in the State of California, (b) does hereby consent
to and agree that any action for the enforcement of this Agreement shall be brought to the courts of the State of California sitting
in Ventura, California or any Federal court sitting in Ventura County, California and consent to the exclusive jurisdiction and
venue of such courts, and (c) hereby waives any objection that it may now or hereafter have to the venue of any such action
or any such court or that suit is brought in an inconvenient court.

 

10.6         Successors
and Assigns. Lewis may not assign or transfer its rights or obligations under this Agreement without the prior written consent
of LIMCO. LIMCO may not assign or transfer its rights or obligations under this Agreement without the prior written consent of
Lewis. No consent to any transfer or assignment of any rights or obligations hereunder shall be construed as a consent to any other
transfer or assignment of rights or obligations hereunder. No transfer or assignment in violation of the provisions hereof shall
be valid or enforceable. Subject to the foregoing, this Agreement and the terms and provisions hereof shall inure to the benefit
of and be binding upon the successors and assigns of the parties.

 

10.7         Notices.
Any notice, demand, request or communication required or permitted to be given by any provision of this Agreement shall be in
writing and shall be delivered personally to the party to whom the same is directed, sent by registered or certified mail, return
receipt requested, or sent by Federal Express or any other courier service guaranteeing overnight delivery, addressed to the party
at the address appearing below such party’s name in this Section or by electronic transmission to the electronic mail address
set below such party’s name (followed by notice by mail sent in the manner described above or by Federal Express or other
courier service):

 

If to LIMCO:

The Limoneira Company

1141 Cummings Road

Santa Paula, California 93060

Attention:    Mr. Harold Edwards

Email:          hedwards@limoneira.com

 

With Copy To:

Pircher, Nichols & Meeks

1925 Century Park East, Suite 1700

Los Angeles, California 90067

Attention:   Real Estate Notices (KMH/MDS 5735.2)

Email:         realestatenotices@pircher.com

                    khogaboom@pircher.com

 

    	 	35	 

     

    

 

If to Lewis:

Lewis Santa Paula Member, LLC

1156 N. Mountain Avenue

Upland, California 91786

Attention:   John M. Goodman

Email:         john.goodman@lewisop.com

 

With Copy To:

Lewis Operating Corp.

1156 N. Mountain Avenue

Upland, California 91786

Attn:            W. Bradford Francke

Email:          brad.francke@lewisop.com

 

or to such other address as each party
may from time to time specify by notice in accordance with this Section. Any such notice shall be deemed to have been delivered,
given, and received for all purposes as of the date so delivered, at the applicable address; provided that notices received on
a day that is not a Business Day, or after 5:00 p.m. (at the location to which delivery is to be made) on a Business Day shall
be deemed received on the next Business Day. Notice to a party shall not be effective unless and until each required copy of such
notice specified in this Section (or as the parties may from time to time specify by notice in accordance with this Section) is
given. The inability to deliver a notice because of a changed address of which no notice was given or an inoperative facsimile
number for which no notice was given of a substitute number, or any rejection or other refusal to accept any notice, shall be deemed
to be the receipt of the notice as of the date of such inability to deliver or rejection or refusal to accept. Any notice to be
given by any party hereto may be given by legal counsel for such party. Any telephone numbers set forth in this Section are provided
for convenience only and shall not alter the manner of giving notice set forth in this Section.

 

10.8         Third
Parties. Nothing in this Agreement, whether expressed or implied, is intended to confer any rights or remedies under or by
reason of this Agreement on any other person other than the parties hereto, their respective Affiliates, the Company and their
respective successors and assigns, nor is anything in this Agreement intended to relieve or discharge the obligation or liability
of any third persons to any party to this Agreement, nor shall any provision give any third parties any right of subrogation or
action over or against any party to this Agreement.

 

10.9         Approvals.
Except as otherwise expressly provided herein, any approval or consent provided to be given by a party hereunder must be in writing
to be effective and may be given or withheld in the sole and absolute discretion of such party for any or no reason.

 

    	 	36	 

     

    

 

10.10       Legal
and Other Costs. Except as expressly provided herein or in the Company LLC Agreement, the parties hereto agree that they shall
pay directly any and all legal costs which they have incurred on their own behalf in the preparation of this Agreement and other
documents pertaining to the transactions contemplated hereby. In addition, if any party obtains a judgment against any other party
in connection with a dispute with regard to this Agreement (whether in an action or through arbitration), such party shall be entitled
to recover from each non-prevailing party its court (or arbitration) costs, costs of collection and reasonable attorneys’
fees and disbursements incurred in connection therewith and in any appeal or enforcement proceeding thereafter, including any bankruptcy
proceeding (and any action for relief from the automatic stay of any bankruptcy proceeding), in addition to all other recoverable
costs. The provisions of this Section 10.10 shall survive any termination of this Agreement.

 

10.11       No
Recordation. Except for the Memorandum of Duty to Reconvey, in no event shall this Agreement or any document or other memorandum
related to the subject matter of this Agreement be recorded without the consent of LIMCO.

 

10.12       Counterparts;
Delivery. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of
which shall constitute one and the same document. The delivery of an executed counterpart of this Agreement by facsimile or as
a PDF or similar attachment to an email shall constitute effective delivery of such counterpart for all purposes with the same
force and effect as the delivery of an original, executed counterpart.

 

10.13       Effectiveness.
In no event shall any draft of this Agreement create any obligation or liability, it being understood that this Agreement shall
be effective and binding only when a counterpart hereof has been executed and delivered by each party hereto.

 

10.14      Intentionally
Omitted.

 

10.15       Further
Assurances. Each of LIMCO and Lewis shall, from time to time after the Closing, execute, acknowledge where appropriate and
deliver, such further instruments and documents, and take such other action, as the other party may reasonably request in order
to carry out the intent and purpose of this Agreement or of any of the documents executed in connection herewith, at the expense
of the party making such request.

 

10.16      Severability.
If any portion of this Agreement shall become illegal, null or void or against public policy, for any reason, or shall be held
by any court of competent jurisdiction to be illegal, null or void or against public policy, or shall be terminated in accordance
herewith, the remaining portion of this Agreement shall not be affected thereby and shall remain in full force and effect to the
fullest extent permissible by law.

 

10.17      Cumulative
Remedies. Except as otherwise expressly herein provided, no remedy conferred upon a party in this Agreement is intended to
be exclusive of any other remedy herein or by law provided or permitted, but each shall be cumulative and shall be in addition
to every other remedy given hereunder or now or hereafter existing at law, in equity or by statute.

 

10.18      OFAC.
Each of Lewis, on the one hand, and LIMCO, on the other hand, hereby represents and warrants to the other that:

 

10.18.1         
Neither it nor, to its knowledge, its Affiliates, is in violation of any laws relating to terrorism, money laundering or the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Action of 2001, Public Law
107-56 and Executive Order No. 13224 (Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to
Commit, or Support Terrorism) (the “Executive Order”) (collectively, the “Anti-Money Laundering and
Anti-Terrorism Laws”).

 

    	 	37	 

     

    

 

 

10.18.2         
Neither it nor, to its knowledge, its Affiliates, is acting, directly or indirectly, on behalf of terrorists, terrorist organizations
or narcotics traffickers, including those persons or entities that appear on the Annex to the Executive Order, or are included
on any relevant lists maintained by the Office of Foreign Assets Control of U.S. Department of Treasury, U.S. Department of State,
or other U.S. government agencies, all as may be amended from time to time.

 

10.18.3         
Neither it nor, to its knowledge, its Affiliates (A) conducts any business or engages in making or receiving any contribution
of funds, goods or services to or for the benefit of any person included in the lists set forth in the preceding paragraph, (B) deals
in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive
Order, or (C) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Money Laundering and Anti-Terrorism Laws.

 

10.18.4         
Neither it, nor any person controlling or controlled by it, is a country, territory, individual or entity named on a “Government
List” (as hereinafter defined); and, to its knowledge, the monies used in connection with this Agreement and amounts committed
with respect thereto, were not and are not derived from any activities that contravene any applicable anti money laundering or
anti-bribery laws and regulations (including funds being derived from any person, entity, country or territory on a Government
List or engaged in any unlawful activity defined under Title 18 of the United States Code, Section 1956(c)(7)).

 

    	 	38	 

     

    

 

10.18.5         
“Government List” means any of (i) the two lists maintained by the United States Department of Commerce
(Denied Persons and Entities), (ii) the list maintained by the United States Department of Treasury (Specially Designated
Nationals and Blocked Persons), and (iii) the two lists maintained by the United States Department of State (Terrorist Organizations
and Debarred Parties).

 

 

	LEWIS INITIALS	 	LIMCO INITIALS

 

10.19       Judicial
Reference. The terms and condition of Section 12.11 of the Company LLC Agreement are incorporated herein by reference.

 

[SIGNATURES BEGIN ON FOLLOWING PAGE]

 

    	 	39	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first above written.

 

	LEWIS:
	 
	LEWIS SANTA PAULA MEMBER, LLC,
	a Delaware limited liability company
	 
	By:	Lewis Operating Corp.,
	a California corporation,
	Its Manager
	 
	By:	 
	Name:	John M. Goodman
	Title:	Senior VP/CEO/CFO
	 
	LIMCO:
	 
	LIMONEIRA COMPANY,
	a Delaware corporation
	 
	By:	 
	Name:	 
	Title:	 

 

     

     

    

 

EXHIBIT LIST

 

	A-1	–	Legal Description of the East Area 1 Land
	A-2	–	Legal Description of the Mendez Land
	A-3	–	Depiction of Project Land and Retained Property
	B	–	Form of Company LLC Agreement
	C-1	–	Reserved
	C-2	–	Form of Retained Property Development Agreement
	C-3	–	Form of Lease Agreement
	D	–	Pro Forma Title Policy
	E	–	Form of Escrow Instructions
	F	–	Form of Grant Deed
	G-1	–	Form of General Assignment and Assumption
	G-2	–	Form of Assignment and Assumption of Development Agreement
	G-3	–	Reserved
	G-4	–	Intentionally Omitted
	G-5	–	Form of Dedication and Property Improvement Agreement Assignment and Assumption
	G-6	–	Form of School Mitigation Agreements Assignment and Assumption
	G-7	–	Form of Caltrans Assignment and Assumption
	G-8	–	Form of JV Interest Assignment Agreement
	H	–	Form of LIMCO’s Closing Certificate
	I	–	Form of Lewis’s Closing Certificate
	J	–	Form of Certificate of Non-Foreign Status
	K	–	LIMCO’s Exceptions to Representations and Warranties
	L	–	Reserved
	M	–	List of Government Agreements
	N	–	List of Environmental Reports
	O	–	List of Pre-Closing Agreements
	P	–	List of Property Information
	Q	–	Reserved
	R	–	Copy of the Application for the Specific Plan Amendment
	S	–	Form of City Estoppel Certificate
	T	–	Form of Memorandum of Duty to Reconvey
	U	–	Index of Defined Terms

 

	Schedules 
	3.1.2(f)	List of Pre-Closing Assumed Obligations
	4.1.4	List of Unrecorded Monetary Liens

 

     

     

    

 

Exhibit B to Contribution Agreement

 

FIRST AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

LIMONEIRA LEWIS COMMUNITY BUILDERS,
LLC

 

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

 

RECITALS

 

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

 

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

 

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

 

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

 

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

 

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

 

    
 

     

    

 

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

 

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

 

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

 

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

 

SECTION 1.

DEFINITIONS; THE COMPANY

 

1.1          Definitions.

 

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

 

1.2          Admission
of Lewis.

 

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

 

    -2-

     

    

 

1.3          Formation.

 

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

 

1.4          Name.

 

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

 

1.5          Purposes.

 

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

 

1.6          Intent.

 

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

 

1.7          Offices.

 

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

 

1.8          Public
Filings.

 

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

 

    -3-

     

    

 

1.9          Term.

 

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

 

SECTION 2.

MEMBERS; CAPITAL CONTRIBUTIONS

 

2.1          Members.

 

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

 

2.2          Member
Funding Prior to Obtaining Project Loan.

 

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

 

(b)          Limoneira
Pre-Assignment Expenses. The parties acknowledge and agree that prior to the Effective Date, Limoneira and/or its Affiliates
paid third-party expenses in connection with the Project described on Schedule 2.2(b) attached hereto in the amount
of ________________ Dollars ($__________) (the "Limoneira Pre-Assignment Expenses"). The Limoneira Pre-Assignment
Expenses shall be treated as Approved Project Costs. Each of the Capital Account and Unreturned Additional Contribution Balance
of Limoneira shall be credited with the amount of the Limoneira Pre-Assignment Expenses as of the Effective Date. As of the Effective
Date, the balance standing in Limoneira's Capital Account is equal to the amount set forth opposite such Member's name on Exhibit B
under the column labeled "Capital Account." Note: As of the execution of the Contribution Agreement, the Limoneira
Pre-Assignment Expenses are as identified on Schedule 2.2(b). Schedule 2.2(b) will be (i) updated and replaced prior to the Closing
under the Contribution Agreement to include any additional Limoneira Pre-Assignment Expenses incurred after that CA Effective Date
in accordance with the Approved Business Plan and Approved Budget or otherwise approved by Lewis, and (ii) reduced by an amount
reasonably determined by the Executive Committee to reflect the Retained Property’s allocable share of those costs, and of
the Lewis Pre-Assignment Expenses (if any), that benefitted the Retained Property and that were not reimbursed by Limoneira.

 

    -4-

     

    

 

(c)          Lewis
Pre-Assignment Expenses. The parties acknowledge and agree that prior to the Effective Date, Lewis and/or its Affiliates (i)
paid third-party expenses in connection with the Project described on Schedule 2.2(c) attached hereto, and (ii) incurred
reimbursable expenses, after the execution of the Contribution Agreement, of the type described in Section 6.8(a) and itemized
on Schedule 2.2(c), in the aggregate amount of ________________ Dollars ($__________) (the "Lewis Pre-Assignment
Expenses"). Each of the Capital Account and the Unreturned Additional Account Balance of Lewis shall be credited with
the amount of the Lewis Pre-Assignment Expenses as of the Effective Date. As of the Effective Date, the balance standing in Lewis'
Capital Account is equal to the amount set forth opposite such Member's name on Exhibit B under the column labeled
"Capital Account." Note: As of the execution of the Contribution Agreement, the Lewis Pre-Assignment Expenses are
as identified on Schedule 2.2(c). Schedule 2.2(c) will be updated and replaced prior to the Closing under the Contribution Agreement
to include any additional Lewis Pre-Assignment Expenses incurred after that CA Effective Date in accordance with the Approved Business
Plan and Approved Budget or otherwise approved by Limoneira.

 

(d)          Pre-Financing
Contributions.

 

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

 

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

 

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

 

    -5-

     

    

 

(iv)        Any
Capital Contribution that a Member contributes pursuant to this Section 2.2(d) is referred to as a ("Pre-Financing
Contribution"). The Manager shall promptly notify the Executive Committee of any Shortfalls. The Executive Committee shall
have the right, but not the obligation, to approve each such capital call before any Member will be obligated to make any additional
Capital Contribution to the Company pursuant to this Section 2.2(d) provided any capital call made to enable the Company
to pay any “Budgeted Capital Call” or “Emergency Expense” (each as defined in Section 2.3) shall be deemed
automatically approved by the Executive Committee on the date the Executive Committee receives notice of such capital call. The
Manager shall send approved requests for Pre-Financing Contributions to all Members, regardless of whether a Member is required
to fund any such Capital Contribution. Any Capital Contribution that a Member is required to make under this Section 2.2(d)
shall be made on the date requested by the Manager provided each Member shall have at least ten (10) Business Days' notice
before it is required to make any such Capital Contributions. Each Member's Capital Account and Unreturned Additional Contribution
Balance shall be credited by any Capital Contribution made by such Member pursuant to this Section 2.2(d) on the date
such contribution is made.

 

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

 

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

 

    -6-

     

    

 

2.3          Member
Funding After Obtaining Project Loan.

 

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

 

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

 

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

 

    -7-

     

    

 

2.4          Member
Loans.

 

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

 

2.5          Failure
to Fund.

 

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

 

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

 

    -8-

     

    

 

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

 

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

 

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

 

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

 

    -9-

     

    

 

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

 

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

 

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

 

    -10-

     

    

 

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

 

2.6          Cost
Overrun Provisions.

 

(a)          Definitions.

 

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

 

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

 

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

 

(b)          Controllable
Cost Overruns.

 

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

 

    -11-

     

    

 

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

 

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

 

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

 

2.7          Contribution
of Water Rights.

 

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

 

2.8          Limitations
Pertaining to Capital Contributions.

 

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

 

    -12-

     

    

 

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

 

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

 

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

 

SECTION 3.

PROJECT LOANS

 

3.1          Terms
of the Project Loan.

 

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

 

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

 

    -13-

     

    

 

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

 

3.2          Credit
Enhancements.

 

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

 

    -14-

     

    

 

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

 

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

 

SECTION 4.

DISTRIBUTIONS

 

4.1          Distributions
of Net Cash Flow.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4.2          Other
Special Distributions.

 

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

 

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

 

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

 

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

 

4.3          Withholding.

 

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

 

SECTION 5.

TAX ALLOCATIONS

 

5.1          General
Allocation Rules.

 

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

 

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

 

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

 

5.2          Regulatory
Allocations.

 

Notwithstanding Section 5.1
and Section 5.3:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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5.3          Other
Allocation Rules.

 

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

 

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

 

5.4          Special
Tax Allocations.

 

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

 

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

 

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

 

SECTION 6.

MANAGEMENT

 

6.1          Designation
of Manager.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.2          Management
of Company.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.3          Entitlement
Services.

 

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

 

6.4          Executive
Committee.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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6.5          Major
Decisions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(xvi)      Any
amendment to this Agreement;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(b)          Mechanism
for Obtaining Consents.

 

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

 

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

 

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

 

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

 

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

 

6.6          Business
Plan.

 

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

 

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

 

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6.7          Budgets.

 

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

 

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

 

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

 

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6.8          Reimbursements.

 

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

 

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

 

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

 

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6.9          Buy/Sell
Procedure.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	 	 	 
	INITIALS OF LEWIS	 	INITIALS OF LIMONEIRA

 

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

 

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

 

    	 	-34-	 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

6.10         Project
Insurance.

 

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

 

SECTION 7.

BOOKS AND RECORDS

 

7.1           Books
and Records.

 

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

 

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

 

7.2           Reports.

 

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

 

7.3           Tax
Matters.

 

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

 

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7.4           Fiscal
Year; Accounting; Elections.

 

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

 

7.5           Tax
Matters Partner.

 

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

 

SECTION 8.

TRANSFER OF COMPANY INTERESTS; NEW MEMBERS; DEFAULT REMEDY

 

8.1           General.

 

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

 

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8.2           Permitted
Transfers and Excluded Transfers.

 

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

 

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

 

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

 

8.3           Assignee
of Member's Interest.

 

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

 

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

 

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

 

    	 	-39-	 

     

    

  

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

 

8.4           Election;
Allocations Between Transferor and Transferee.

 

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

 

8.5           Withdrawal.

 

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

 

8.6           Substituted
Members.

 

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

 

8.7           Effective
Date of Transfer.

 

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

 

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8.8           Additional
Limitations on Transfer.

 

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

 

8.9           Transfer
Indemnity.

 

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

 

SECTION 9.

DISSOLUTION AND TERMINATION

 

9.1           Dissolution.

 

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

 

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

 

    	 	-41-	 

     

    

  

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

 

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

 

9.2          Winding
Up.

 

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

 

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

 

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

 

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

 

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

 

9.3           Certificate
of Cancellation.

 

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

 

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SECTION 10.

EXCULPATION AND INDEMNIFICATION

 

10.1         Exculpation
and Reliance on Information and this Agreement.

 

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

 

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

 

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

 

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

 

10.2         Member
Indemnification.

 

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

 

    	 	-43-	 

     

    

  

10.3         Company
Indemnification.

 

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

 

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

 

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

 

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

 

SECTION 11.

DEFAULT AND REMEDIES

 

11.1         Events
of Default.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

11.2         Remedies.

 

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

 

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

 

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

 

    	 	-46-	 

     

    

  

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

 

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

 

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

 

SECTION 12.

MISCELLANEOUS

 

12.1         Notices.

 

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

 

    	 	-47-	 

     

    

  

12.2         Non-Competition
and Independent Activities.

 

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

 

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

 

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

 

    	 	-48-	 

     

    

  

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

 

12.3         Binding
Effect.

 

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

 

12.4         Construction.

 

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

 

12.5         Time.

 

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

 

12.6         Headings.

 

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

 

12.7         Severability.

 

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

 

    	 	-49-	 

     

    

  

12.8         Incorporation
by Reference.

 

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

 

12.9         Additional
Documents.

 

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

 

12.10         Variation
of Pronouns.

 

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

 

12.11         Dispute
Resolution; Jury Trial Waiver.

 

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

 

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

 

    	 	-50-	 

     

    

  

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

 

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

 

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

 

    	 	-51-	 

     

    

  

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

 

12.12         Attorneys'
Fees.

 

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

 

12.13         Governing
Law.

 

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

 

12.14         Waiver
of Action for Partition.

 

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

 

12.15         Counterpart
Execution; Facsimile Signatures.

 

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

 

    	 	-52-	 

     

    

  

12.16         Entire
Agreement.

 

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

 

12.17         Representations
and Warranties.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-53-	 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-54-	 

     

    

  

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

 

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

 

12.18         Enforceability
of Provisions.

 

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

 

12.19         Contractual
Duties Prevail; Approval Standard.

 

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

 

    	 	-55-	 

     

    

  

12.20         Scope
of Representation.

 

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

 

12.21         Nonrecourse
Parties.

 

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

 

12.22         No
Suretyship Defenses.

 

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

 

12.23         Interpretation.

 

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

 

    	 	-56-	 

     

    

  

12.24         Omitted.

 

12.25         Joinder.

 

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

 

12.26         Definitions.

 

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

 

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

 

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

 

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

 

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

 

    	 	-57-	 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-58-	 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-59-	 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-60-	 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

"Entity"
means any Person other than an individual.

 

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

 

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

 

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

 

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

 

    	 	-61-	 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-62-	 

     

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-63-	 

     

    

  

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

 

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

 

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

 

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

 

[SIGNATURES BEGIN ON FOLLOWING PAGE]

 

    	 	-64-	 

     

    

  

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

 

	 	MEMBERS:
	 	 
	 	LEWIS SANTA PAULA MEMBER, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	Lewis Operating Corp.,
	 	 	a California corporation
	 	 	Its:  Manager
	 	 	 
	 	 	By:	 
	 	 	 	John M. Goodman
	 	 	 	Its:  Senior Vice President
	 	 	 
	 	LIMONEIRA EA1 LAND, LLC
	 	a Delaware limited liability company
	 	 	 
	 	By:	Limoneira Company,
	 	 	a Delaware corporation
	 	 	its sole Member
	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 
	 	MANAGER:
	 	 
	 	LEWIS SANTA PAULA MEMBER, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	Lewis Operating Corp.,
	 	 	a California corporation
	 	 	Its:  Manager
	 	 	 
	 	 	By:	 
	 	 	 	John M. Goodman
	 	 	 	Its:  Senior Vice President

 

    	 	(1)

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