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/'`N Aoftk Lessor. If Lessor or the City's Rangeland Manager determines that the Pastures are being overgrazed, the number of units must be reduced within three days of such notice to Lessee. 4. Lessee shall cause the Pastures to be grazed in compliance with the Grazing/ Resource Management Plan that Lessor has adopted for the Pastures and other City-owned property in Happy Valley. Lessee acknowledges that he has received a copy of such Grazing/ Resource Management Plan. Lessee shall also comply with the directives of the City's Rangeland Manager. If there is any conflict between the terms of this Lease, direction provided to Lessee from the City's Rangeland Manager, and the terms of the Grazing/Resource Management Plan, the order of precedence shall be: (1) Rangeland Manager; (2) Lease; and then (3) the Grazing/Resource Management Plan. Lessee acknowledges that to comply with the Grazing/Resource Management Plan, the actual grazing of the Pastures by Lessee's cattle shall occur only from February thru June of each year, unless prior written approval is given to the Lessee from the City's Rangeland Manager and the Lessor. 5. This lease shall commence on February 1, 2008, and shall automatically renew annually for a total period of five(5) years, through June 1, 2013, unless the Lessee gives 30 days written notice to Lessor to terminate the Lease, in which case the Lease hereby created shall terminate in accordance with such notice. Lessee's failure to comply with the provisions of the Grazing/Resource Management Plan, the Lease or directives from the City's Rangeland Manager, shall be the basis for termination of this Lease if Lessee does not promptly correct such failure or comply with the directive within 72 hours of such failure or directive being brought to the Lessee's attention by telephone, fax or U.S. mail. 6. Lessee understands that the leased Pastures are adjacent to a golf course and that golf courses have risks associated with them not associated with other property that is grazed by cattle or other livestock. Risks include, but are not limited to, damage to property or injury to persons or animals from: (a) golf balls that are hit onto the leased Pastures; (b)the entry by golfers onto the leased Pastures to retrieve golf balls or otherwise; (c) overspray from watering the golf course that may be offensive or cause damage to the leased Pastures or improvements (including fences); (d)noise from maintenance and operation of the golf course and/or of agricultural uses including, without limitation, compressors,blowers,pumps, mulchers, tractors and utility vehicles, all of which may be operated at various times of the day or night and/or continuously; (e) odors arising from irrigation and fertilization of the golf course and/or from agricultural uses; and (f) disturbances and loss of privacy resulting from golf cart traffic and golfers. In addition,pesticides,herbicides, fertilizers and other chemicals may be applied to the golf course and to the agricultural uses throughout the year, and reclaimed water, treated waste water or other sources of non-potable water may be used for irrigation of the golf course and the agricultural uses. Lessee expressly assumes the detriments and risks described in this Section 6 and agrees that neither Lessor, nor any of its contractors, agents, successors or assigns, shall be liable to the Lessee or anyone claiming any loss or damage, including, without limitation, indirect, special or consequential loss or damage arising from personal injury, destruction of Page 2 of 6