LEASE AGREEMENT FOR MR. SAN OLEN
Donald Haskell ("Haskell") leases to Tejon Ranchcorp, a California corporation ("Tejon"), and Tejon leases from
Haskell, the horse known as Mr. San Olen, on the terms stated below.
1. Lease Term. The initial term of this lease shall be from December 1, 1993, through December 31, 1995.
Tejon is granted the option to extend the term of this lease for two (2) periods of three
(3) years each. Tejon may exercise such options by delivering notice to Haskell by November 30 of the year in
which the lease term would otherwise expire.
2. Rent. The rent during the initial and option terms shall be Five Thousand Dollars ($5,000) per year, payable on
or before January 15 of each year. December 1993 shall be rent-free. If a succeeding lease is desired by the
parties, the rental will be renegotiated at that time.
3. Insurance. Tejon shall purchase and maintain at all times during the lease term an insurance policy with terms
standard in the horse breeding industry insuring against the death of or injury to Mr. San Olen. Haskell shall
reimburse Tejon on demand for one-half of the cost of such policy. The initial policy amount shall be Thirty Five
Thousand Dollars ($35,000); this amount shall be adjusted annually around December of each year, as the
parties shall reasonably agree, to reflect any increase or decrease in the value of Mr. San Olen based on the
performance of his foals. Haskell shall be named as loss payee of this policy and shall own all insurance
proceeds. Haskell agrees that his sole remedy in the event of the death of or injury to Mr. San Olen is limited to
recovery of the insurance proceeds from the policy described above, provided that such policy is currently paid
and in conformance with this paragraph, and waives any right to recover any other or additional sums against
4. Duty of Care. Tejon shall care for Mr. San Olen in the same manner as it would for any horse of his caliber. In
particular, when stabled at Tejon Ranch, Tejon