EFTA Document EFTA01305252

WATERLINE RIGHT-OF-WAY - R-30137 COMPLETE LEASE FILE CONTENTS SDNY_GM_00173352 EFTA_00195007 EFTA01305252 80056f00V1.43 _ MEL 1.00 IND ANDS NEW MEXICO STATE LAND OFFICE Records Action Form for ROVV's Additional Scanning Requested By: Nick Jaramillo Contact NumberPhone#: 7-5773 Date g/P-4//P- Received By: ROW-DIVISION AREA SCANNING DEPARTMENT LEASE It CODE* PAGES POST SCAN RE-SCAN COM ARC NOTES: FORM TYPE SCAN DATE INITIALS R-30137 7 2 / l Green Paper clip ' 1 7 1 V Blue Paper clip a= 1.- I-I Le e 04.4)sles d-ln tgietycatatu: LICIC PPu. lAfet:indgit upoUA7takino NM:ewr°Lease Name --' 7_ Cate r---2',..4422---- CI Vernico-inials Date ir CODES and FORM TYPES: 9. Check List 18. Memo (Internal Memorandun 110. Collateral Assignment 19. Merger 11. Contract 20. Partial Assignment 12. E-Mail 21. OCD Info 13. Expired/Cancellation 22. Partial Relinquishment 14. Field Assignment 23.Plat 15.Field Reports-PRA 24. Relinquishment 16. Field Request 25. Waiver 17. General-Letter 26. Worksheet 1. Address Change 2. Affidavit 3. Amended Application 4. Amended Contract 5. Application 6. Appraisal-IPRA-YES 7.Assignment 8. Billing requesting a ReScan please Identity with a pos -no e which oc Is to be rescanned and add comments necessary EFTA01305253 Ray Powell, M.S., D.V.M. COMMISSIONER August 20, 2012 Sutin, Thayer, Browne P.O. Box 1945 Albuquerque, NM 87103 State of New Mexico Commissioner of Pad& Lana 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 Ann: Stacy L. Camacho Re: New Mexico State Land Office Assignment for W-301371 Dear Ms. Camacho, COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org Enclosed is the approved copy of an assignment between Zorro Trust., as Assignor and Cypress Inc. as Assignee. If we can be of further assistance to you, please do not hesitate to contact this office at the above address or myself at 827-5773. Sincere Nick fa o, Management Analyst Right-of-Way Section Surface Resource Division Enclosures SDNY_GM_001 EFTA_00 195009 EFTA01305254 NEW MEXICO STATE LAND OFFICE ASSIGNMENT OF RIG -WAY AND EASEMENT Type of Assignment Partial (circle one) KNOW ALL MEN BY THESE PRESENTS: This agreement is entered into this' 16th day of December ., 2011 , between Zorro Trust as Assignor and Cypress, Inc., a Virgin Islands corporation of 9100 Havensight, Port of Sale, Suite 15/16, St. Thomas, Virgin Islands 00802 as Assignee. (Address) Assignor is holder of right-of-way and easement from the New Mexico State Land Office, by its Commissioner of Public Lands, designated as No. RW- 30137 dated September 6, 2006. (Original Approval Date) The amount of $ 1.00 and other • r ideration, the receipt of which is hereby acknowledged, Assignor does hereby convey r partial (circle one) rights, title and interest in and topi-111-1771 (Attach description or exhibit if applicable.) Assignor and Assignee acknowledge and agree that, unless agreed to by the Commissioner of Public Lands, Assignor shall remain fully liable for all damage to the subject trust lands arising from or in conjunction with Assignor use of the subject right-of-way; and that Assignee assumes all subsequent liability from the date of this assignment forward, and agrees to be strictly bound by all the terms of the assigned right-of-way as though those terms were set out herein. EXF(TED TH1 ciaof cert-ciwefe" ,20 I1 . BY: (Assignor) STATE OF '' COUNTY OF a The foregoing instrument was acknowledged before me this 16th day of Dornhor 2011 by Jeffrey Epstein as Trustee of the Zorro Trust uta March 1, 1993, as amended. (Name of Assignor) (Title of Officer, if appticab¢ qnd Name of C oration) My Commission Expires: tuNorary Pabliall ',irony 7'1.1 11 : nc Now York No Z.11 0nailisid in iv/A:KIM County y Commis:lion Expires Feb. 17. 20' FEES 4 tOISLO 001-0000.1 SDNY_GM_00173355 EFTA_00 I 95010 EFTA01305255 BY: (Assignee) STATE OF COUNTY OF The foregoing instrument was acknowledged before me this 16th day of December 20 11 by Jeffery Epstein as President of Cypress, Inc., a Virgin Islands corporation. (Name of Assignee) (Title of Officel, if applicable an Name of C.-mondial& .-• • • • • • . My Commission Expires: Approved by me on 1 2/, 20/2-. FULL ASSIGNMENT 550.00 PARTIAL ASSIGNMENT 575.00 S-3I (Revised 03/2007) - • , Notary Stab, of new `trkt:...c& No 1 ;X:13f7 .320 50 ;Pop.. . Qualithd in tleclanti Count). ''' Com Mis3ien !mire: Fob. 17, 20 ' • gsaritien :pF Tipp Lops ' ,,,,,,,,,,,, SDNY_GM_00113356 EFTA_00195011 EFTA01305256 STATE OF NEW MEXICO COMMISSIONER OF PUBLIC LANDS GRANT OF RIGHT-OF-WAY Right-of-Way Easement No. RW-30137 This indenture, made this 6th day of September, 2006 by and between the State of New Mexico, acting by and through its Commissioner of Public Lands, "Grantor", Zorro Trust whose address is 457 Madison Ave., New York, NY 10022 Grantee; WITNESSETH: That Grantor, for and in consideration of the sum of 512.969,00-- -Twelve Thousand Nine Hundred and Such? Nine Dollars and 03/100-----cash in hand, receipt of which is hereby acknowledged, and other good and valuable consideration, hereby conveys to grantee a right-of-way for the sole and exclusive purpose of water pipeline including the right to enter upon the real estate hereinafter described at any time that it may see fit to construct, maintain and repair the structures upon the right-of-way, together with the right to remove trees, brush, undergrowth, and other obstructions interfering with the location, construction, and maintenance of said right-of-way. The right-of-way hereby granted covers a strip of land 30 feet in width in Santa Fe County (ies), as more particularly described by the attached centerline description and survey plats, which are incorporated herein. This grant is made upon the following express terms and conditions: 1. This right-of-way is granted for a term of 35 years. The grant may be renewed for additional periods upon application to Grantor, Any such renewals are subject to such terms and conditions as the Grantor may require, and payment of compeniation. 2. Grantor reserves the right to authorize or grant rights-of-way or other easements to third parties, which may be parallel to. cross over or bisect this right-of-way. In such cases, the subsequent grantee may, at the discretion of the Grantor, be required to post a bond guaranteeing payment for damages to the installations and improvements of Grantee herein. In crossing any right-of-way for a highway, road, telephone, telegraph, transmission line, etc. Grantee herein will exercise due care so as not to interfere with said rights-of-way and will comply with all applicable laws, rules, and regulations in connection with the making of such crossings 3. The right to grant additional rights-of-way or easements within this right-of-way belongs exclusively to Grantor. Grantor hereby agrees, however, that in the event Grantor elects to exercise such right and if Grantee herein is the New Mexico State Highway and Transportation Department, Grantor will secure in writing the agreement of subsequent right-of-way grantee that no facilities will be constructed or installed within the right-of-way subsequently granted without first obtaining from the Department a permit prescribing the conditions under which facilities may be placed within such right-of-way in accordance with the Department's applicable rules and regulations. GRANTEE EXPRESSLY AGREES THAT PRIOR TO THE CONSTRUCTION OR INSTALLATION OF ANY FACILITIES WITHIN THE RIGHT-OF-WAY GRANTED HEREIN, GRANTEE WILL DETERMINE WHETHER THE RIGHT-OF-WAY IS WITHIN A PREVIOUSLY S-25 (Revised 01/03/2000) SLO SCAN (2) DEC 16 1609 SDNY_GM_00173357 EFTA_00 I 95012 EFTA01305257 (2) Right-of-Way Easement No. RW-30137 ESTABLISHED NEW MEXICO STATE HIGHWAY AND TRANSPORTATION DEPARTMENT RIGHT- OF-WAY, AND IF IT IS, GRANTEE WILL OBTAIN FROM THE DEPARTMENT A PERMIT THAT PRESCRIBES THE CONDITIONS UNDER WHICH FACILITIES MAY BE PLACED WITHIN THE RIGHT-OF-WAY IN ACCORDANCE WITH THE DEPARTMENT'S APPLICABLE RULES AND REGULATIONS. GRANTEE FURTHER UNDERSTANDS AND AGREES THAT THE FAILURE TO OBTAIN SUCH PERMIT SHALL RESULT IN THE FORCIBLE REMOVAL BY THE DEPARTMENT OF ANY FACILITIES THAT MAY BE CONSTRUCTED OR INSTALLED WITHIN THE RIGHT-OF-WAY. 4. In clearing the right-of-way, Grantee agrees to dispose of brush and other debris so as not to interfere with the movement of livestock of state agriculture lessees. 5. All pipelines placed on said lands by virtue of this grant shall be buried not less than twenty inches (20") deep. An exception to this requirement may be granted on other than agricultural lands when hard rock is encountered which would require blasting, or when a temporary pipeline is necessary and will not unduly hamper other surface uses. Deviation of the twenty-inch depth must be shown on the plat accompanying the application for right-of-way or by the filing of an amended plat upon completion of construction. 6. Grantee hereby agrees to carefully avoid destruction or injury to any improvements or livestock lawfully upon the premises described herein, to close all gates immediately upon passing through same, and to pay promptly the reasonable and just damages for any injury or destruction arising from construction or maintenance of this right-of way. 7. Grantee shall not assign this right-of-way without the prior written approval of Grantor. Such approval may be conditioned upon the agreement by Grantee's assignee to additional conditions and covenants and may require payment of additional compensation to Grantor. This right-of-way is for the sole purpose stated and no other. Grantee agrees not to sell or otherwise grant to any person or entity any interest therein or the right to use any portion thereof. 8. The rights granted herein arc subject to valid existing rights. 9. Grantor reserves the right to execute leases for oil and gas, coal, and minerals of whatsoever kind and for geothermal resources development and operation, the right to sell or dispose of same and the right to grant rights-of-way and easements related to such leasing. 10. In all matter affecting the premises described herein or operations thereon, Grantee, its employees, agents and contractors shall, at their own expense, fully comply with all laws, regulations, rules, ordinances, and requirements of any governmental authority or agency, which may be enacted or promulgated, including, but not limited to, requirements or enactment's pertaining to conservation, sanitation, aesthetics, pollution, cultural properties, fire, or ecology, including those provisions of the New Mexico Cultural Properties Act, §§18-6-1 through 17, NMSA 1978, that attach criminal penalties to the appropriation, excavation, injury or destruction of any site or object of historical, archaeological, architectural, or scientific value located on state lands. In addition, Grantee, its employees, agents and contractors must comply with the provisions of the Pipeline Safety Act, §§ 70-3-11 through 20, NMSA 1978, and rules enacted pursuant to the Act, and agree to provide the Public Regulation Commission access to records of compliance. 11. Non-use of the right-of-way granted herein for any period in excess of one (1) year without the prior written consent of Grantor shall be conclusive proof of abandonment of the right-of-way, and non-use for shorter periods shall place upon grantee the burden of providing that there was no intent to abandon. S-25 (Revised 01/03/2000) SLO SCAN DEC 1 6 2:30 SDNY_GM_00173358 EFTA_00I 95013 EFTA01305258 (3) Right-of-Way Facement No. RW-30 137 12. Grantee, if other than a governmental entity that is provided immunity from suit by the New Mexico Tort Claims Act, agrees to save and hold harmless, defend and indemnify the State of New Mexico, the Commissioner of Public Lands, and his agents or employees, in their official and individual capacities, of and from any and all liability, claims, losses, or damages arising out of or alleged to arise out of or indirectly connected with the operations of Grantee, its employees, agents, or contractors hereunder. 13. Notwithstanding anything contained herein, Grantor may cancel this grant for violation of any of the covenants of this agreement; provided, however, that before any such cancellation shall become effective, Grantor shall mail to grantee or any approved assignee, by certified mail addressed to the post office address of Grantee or such assignee shown by Land Office records, a thirty (30) day notice of intention to cancel, specifying the default for which the grant is subject to cancellation. No proof of receipt of notice shall be necessary and thirty (30) days after such mailing, Grantor may enter cancellation unless Grantee shall have sooner remedied the default to the satisfaction of Grantor. 14. Grantee agrees to preserve and protect the natural environmental conditions of the land encompassed in this grant, and to take those reclamation or corrective actions that are accepted soil and water conservation practices and that are deemed necessary by Grantor to protect the land from pollution, erosion, or other environmental degradation. 15. Grantee agrees to reclaim by grading, leveling, or terracing all areas disturbed by the construction or maintenance of the right-of-way or operations thereon and to landscape such areas at its own cost and expense. Landscaping shall include the planting of native grasses, shrubs, or other vegetation so as to return disturbed areas to their natural state and prevent water and wind erosion. 16. This grant shall become effective upon its execution by Grantor. STIPULATION: 5-25 (Revised 01/03/2000) SLO SCAN DEC 16 4339 SDNY_GM_00 173359 EFTA 00195014 EFTA01305259 ACKNOWLEDGMENT STATE OF New.] .-- le- ) ) ss• COUNTY OF Ne. .A1 0 ,-*-- ) The foLegoing ingrument was acknowledged before me this 22" 4 day of Au.scps /1/2 20S by Jettre y eesfr in , of a ons -fins.itc of said.ceeperatientust - My Commission Expires: LAUREN J. KWINTNER Notary Public, State of New York No. 02KW60i8686 Qualified In New York County Commission Expires November 39, 20 £k S-25 (Revised 0110312000) SLO SCAN DEC 1 6 iti) Y PUBLIC . . • . . . . . . . SDNY_GM_00173360 EFTA_00195015 EFTA01305260 NEW MEXICO STATE LAND OFFICE APPLICATION FOR RIGHT-OF-WAY EASEMENT Commissioner of Public Lands State Land Office P.O. Box 1148 Santa Fe, New Mexico 87504-1148 Dear Commissioner: (Highways, Roads, Telephone and Telegraph, Pipelines, Saltwater Disposal, etc.) Zoto (Name of applicant) a nk k.\-1 of (Address) hereby applieVormo ant- way ease nt for co ion and location of a 1 i Tr) 0 - Ott \r, , orn 11* lb - 11 taw Nonote \CI A a a, nal 4.:_:cei‘i•c1 (Type of line or facility. for pipeline give tad) It is requested that the right-of-way be -113A • 3(- feet wide as indicated on the attached two copies of survey maps or plats, shown in red, (except for saltwater disposal well easement applications.) the survey centerline and the length of the right-of-way measured in rods. Also, enclosed is the legal description of the proposed right-of-way allocated by 40-acre acts and a computation of the number of acres included in the proposed right-of-way. If the right-of-way is desired for a period other than thirty-five years. state the duration for which the grant is sought. One of the following is enclosed to cover payment for damages that might occur to the state land improvements of a surface lessee: A bond in the amount of $500.00 for a single right-of-way. 0 A blanket bond in a minimum amount of $2,500.00 is already on file with the Slate Land Office. Applicant desires to have bond waived by consent of the Commissioner of Public Lands. A waiver of property damage bond by the omen' surface lessee is enclosed. Enclosed is a check in the amount of $ a rt 4-14: CC) for (acres) (rods) at $ 30 -CO per (acre) (rod), plus $100.00 application fee and $75.00 appraisement fee. (If applicable) The approximate dates for construction of facilities on the right of way ar from to IA CO,Q Applicant covenants and agree to abide by all laws and regulations of the. Land Office and to hold harmless, indemnify, and defend the Commissioner, his agents and lessees, in their official and individual capacities of and from any and all liability, claims, losses, or daniages arising out of or alleged to arise out of or indirectly connected with operation any grant made by the Commissioner. SLO SCAN DEC 1 6 2a (Page I of 2) Applicant By: Title:^11- ta SA" SDNY_GM_00173361 EFTA_00195016 EFTA01305261 ACKNOWLEDGMENT FOR CORPORATION STATE OF COUNTY OF N The foregoing instru 20S, by 4-ratk of 2rab (Name of Corporation Acknowledging) corporation, on behalf of said corporation. ) ) sn. ) M Commission Expires: b --r+-%Poro STATE OF COUNTY OF nowledged before me this day of ame of Officer) a sf Officer) (State of Incorporation) 1 4° NO ART PUBLIC HARRY I. BELLER Notary Public. State of New York No. 018E4 853924 Qualified In Rockland County IC) Commission Expires Feb. 17, 20 ACKNOWLEDGEMENT FOR NATURAL PERSONS ) )ss. ) The foregoing instrument was acknowledged before me this day of 20 by My Commission Expires: 06 (Revised 06/27/2001) int VJ.MVS 3!‘t ! 1, fly:1 7ivis hi 8 WY h2 TIP 9UPZ SLO SCAN DEC 16 2U9 (Page 2 of 2) NOTARY PUBLIC cri T. ›- • c= —3 Lr, SDNY_GM_00173362 EFTA_00195017 EFTA01305262 NEW MEXICO STATE LAND OFFICE CONSENT TO RIGHT-OF-WAY AND WAIVER OF PROPERTY DAMAGE WTI'NESSETH: That ?ciao 6..A9 ( Nemo (s) of Surface Lessee and Spouse, if applicable ) • Grantor, for and in consideration of the amount of cash in hand paid receipt of which is hereby acknowledged, and/or other good and valuable consideration, does hereby waive filing of property damage bond as prescribed by the Rules and RegulatiopsnofAhe Sift,ite Land Office, on the following described state land leased by Grantor under Lease No. (-IV, a'a ( Described state land by forty-acre tracts.) SUBDIVISON SECTION / TOWNSHIP / RANGE ACREAGE 16 lakicAin Oaf LA5 Grantor hereby consents to the exercise by Grantee, its successors and assigns, of all rights granted to it by a certain right-of-way agreement heretofore or hereinafter to be executed between the Commissioner of Public Lands of the State of New Mexico and the Grantee, with the understanding that the damages, if any occulting from the exercise of the rights therein granted, to any crops or other property of said Grantor SlIall% paid to said Grantor as agreed upon by the Grantor and Grantee. > o, > - 7 4. • r- Dated , 20 -I r- > ; WITNESSES: NAME itmc Mt, (1/4,V /dna ADDRESS NAME tic7 MM won ADDRESS SLO SCAN DEC isles GRANTOR/SURFACE LESSEE C-ri ADD 2 GRANTEE/RIG APPLICANT ADDRESS SDNY_GM_00173363 EFTA_00 I 950 I 8 EFTA01305263 SIMONS & SLATTERY 1 LI, 1' 'lianas A. Sims,* Wart P. Salton. Daniel* Moron Fat IA aorta Fain Kaman byes °mkt.. lcrmane AletiO Connors:no Dona Siontrdnlikady Seth I. Cohen en, Senora Howood Gila ta. II/puked Front Pod Croak September 26, 2006 VIA HAND DELIVERY Ms. Melissa Armijo Management Analyst Surface Resource Management Division New Mexico State Land Office 310 Old Santa Fe Trail Santa Fe, NM 87504-1148 Re: Right-of-Way Easement No. RW-30137 Dear Ms. Armijo: make anew P.O. eat =XI Sonia fe. NM WS024333 Son Welts: 1640A Od Pecos hal Sonia Et NM 17935 wic•MINNO begfrit== I . I attach for you the right-of-way easement, RW-30137, signed by my client for the Zorro Trust. Also enclosed is the Affidavit of Completion of Right-of-Way Construction, executed by the manager of Zorro Ranch. In the third paragraph of the Right-of-Way easement, we recognize that this easement applies to lands leased by Zorro Trust in Santa Fe County, not Lea County, as written. We authorize and request that you strike through "Lea" and insert "Santa Fe" by hand, then initial the charge. This, of course, was an inadvertent error. With these two documents I believe that the documentation to complete the wateriiiii n ht-of--way is complete. If I may answer any questions, please contact Brice at Zorro Ranch. Sincerely yours, 4Acii n't.(1-•-J Frank M. Bond FMB/gdg cc: Zorro Trust (w/encl.) WAS3631000103COMArmijo 092606 Grant of Right of Wayside SLO SCAN DEC I 6 A' A SDNY_GM_00173364 EFTA_00 I 950 19 EFTA01305264 PATRICK H. LYONS COMMISSIONER September 7, 2006 ZOITO Trust 49 Zorro Ranch Road Stanley, NM 87056 Ann: Re: Right-of-Way Easement No. R-30137 Dear Ms. Gordon; Enclosed is the completed Grant of Right of Way, and "Affidavit of Completion" form to be completed and returned to this office upon completion of the project. State ofgk&w Mexico Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87504-1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827.5766 www nmsiatelands.org If-prbs:corre . ctions are necessary, please let us know and we will retype or amend this lease as 'necessary. If you have any questions, please feel free to contact this office at the above address or at (505) 61.-5729. S' cerely, Melis ijo, Management Analyst Surf ource Management Division SLO SCAN DEC 1 ti 2009 *Mali. Land OIIIN Beneliciarks • C2ffit 71nky floSpha • Chatituble Pool Es Motto • Comm= Schools • Emsem NM Uniseniey • Rio Crash losprosoomm • Kiwis' Hospiwl of NM •NM Do» School • rim sishbne• unhane• • NM Imam/ of 'slinky & Tetimulan • Now Wok* What/ lastimc•NM School k4 si Deal • NM klool Sc. *e Visually 141~ • NM Sum Hophal • Nev Woke Saw thivetsity • Nantwn NM Cormaiy Collect • Penitentiary of Now Mesita • Polak Butklinos at Capital • SON RA Commission • Voistray of Nov Maim • UNOI Sant tat • Wale, ~flan • WO/ol New Make University SDNY_GM_00173365 EFTA_00195020 EFTA01305265 PATRICK II. LYONS COMMISSIONER August 17, 2006 Zorro Trust 49 Zorro Ranch Road Stanley, NM 87056 State of 91(cw Mexico Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 COMMISSIONERS OFFICE Phone (505) 827.5760 Fax (505) 827.5766 www.nmstntelands.org Re: Right-of-Way Application No. RW-30137 Dear Ms. Gordon, Please sign the enclosed gram of right-of-way and easement in the presence of a Notary Public and return to this office for approval. BOTH COPIES MUST BE RETURNED. Be advised that the grant must be signed by the applicant or a person authorized to sign for the applicant, such as an officer or authorized agent of a company or corporation. Please DO NOT DATE THE GRANT. It will be dated when the Commissioner's signature and official seal are affixed to the document. If any corrections are necessary, notify this office and we will retype or amend the grant as required. If we can be of further assistance, do not hesitate to contact this office at A'nc .erely, /14.. ut Anna V Manager Surfac ource Management Division Slo SCAN DEC 1 ti 2099 -Stale Land OrEct Beneficiaries • Came Tingley Hospital • Cloriabk Punt & Reform • Common Schools • Emma NM Unhonity • Rio Grande Imptoventre • Mimi Ho, iol WOO •NM Goys Seheol • NM Ilipldnicla University • NM INtiore d Minh, & Tedronlopy • New MUir0 MiLiary Inintne•NM School Far On Deaf • NM School for the Vistolly Handoopped • NM SUN Hospital • New Mexico SOH University • Natio NM Comannity COlkft • Penatadary or New Meth, • NINE 0ttikhims airaohal • Sore Put Cominlision • Univelsity el Nov Mexico • UNM Woe Loot • Nita Rennet's • erenct• New Malta Uniwrsiy SONY GM 00173366 — — EFTA (X1195021 EFTA01305266 LEASE Na - 30131 Date g - I -1-1/0 TYPE "EASEMENT" FOR 0 2.91di. 0O DATED PRICE PER ROD $ a.) ACRE ESMT OR WELL$ WIDTH 50 TERM 4.--- STIPULATIONS YES OR NO STIPULATIONS: TYPE OF RJW ----e------- SLO SCAN DEC 1 6 21139 MORE MONEY $ SDNY_GM_00173367 EFTA_00195022 EFTA01305267 PATRICK H. LYONS COMMISSIONER July 13, 2006 Zorro Trust C/o Zorro Ranch 49 Zorro Ranch Road Stanley, NM 87056 Attn: State of New Mexico Commissioner of Plate Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87504.1148 Re: Right of Way Application No. RW-30137 Dear Ms. Gordon: COMMISSIONER'S OFFICE Phone (505) 827.5760 Fax (505) 827-5766 www.amstatelands.ors Your application for a new Right of Way has been received and'is being processed by the Surface Resources Management Division of The New Mexico State Land Office. Receipt by the New Mexico State Land Office of the application, fee, and/or accompanying payment does not constitute issuance.of a lease by the Commissioner of Public Lands. You will be notified when the lease application is approved or denied. Application fees are not refundable. Other payments submitted with your application will be deposited in a suspense account and will be refunded if the application is denied. The New Mexico State Land Office thanks you for your cooperation and we look forward to a successful business relationship. Please contact us at for Melissa Armijo or Gilbert Borrego, Surface Director, if you have any questions regarding the status of your application. incerelyt Melissa Jo, Management Analyst R/W ti. , Surface Resource Management Division SLL' " SCAN DEC 1 6 1339 Slate Land Office Beneficiaries • Carrie Tingley HOstneal • Shatienk Penal @ Reform • Comma Schools • Dime NM Unleash, • RIO Grande Imennetrow • Mims Hosgeol of NM •NM Pori School • NM Mabee, thivenin • NM malice of Minot & Technology • Nov Mexico MIEnry Insaime•NM School fog ale Deal • NM School foe the Visually Ihnsicapped • NM Snit Nospeal • Nen Mesito Sim @elm* • Plonhw NM Commons College • Pcmicallsly of New Malta • Nene Builthese ai Capin' • Snit Put Commisnon • Unkroky of New Mimeo • UNM Salim lank • Wrier Rettnlin • WOICie New Medea Univeuily SDNY_GM_00173368 EFTA_00I 95023 EFTA01305268 SLO SCAN DEC 1 a 1039 SDNY_GM_00173369 EFTA_00 195024 EFTA01305269 ZORRO RANCH 49 ZORRO RANCH ROAD STANLEY, NM 87056 TELEPHilli FAX: E MAIL July 6,2006 Reference: GR-2122 Mr. Leroy A. Ulibarri Surface Resources Division NM State Land Office PO Box 1148 Santa Fe NM 87504-1148 Dear Mr. Ulibarri, As per our conversation May 16, 2006, I have attached a completed application to Validate Improvements on GR-2122 with an attached description of said improvements. Enclosed the application fee of S30.00. The Application for Right-of-Way and survey has been submitted to Melissa Arrnijo If you require any further information please do not hesitate to call. Sincerely Ranch Manager SLO SCAN DEC 7 61539 N3 Cri SDNY_GM_00173370 EFTA_00 I 95025 EFTA01305270 NEW MEXICO STATE.LANTI OFFICE Application to Validate Improvements. 211)4C)1 Wb make application for the Commissioner of Public Lands' validation of improvements placed on nate oust lands held under Agricultural Lease No. GR tQQa described below. These improvements were place on state trust lands without the prior written commit of the Commissioner of Public Lands. Subdivision Section Township Range Acres 16 12Oi1n oq h /40 . • • • _ • • Please list any federal.shleor other cost-share programs ;evolved with developing the improvements and any recovery provisions: Indicate below the separate costs expended by yourself and any federal or state agency: Amount paid Amount paid Amtesdnue nods by Lessee by cost share and year built Barns, stables and corrals Wells (give depth & description) :ewes (give length and kind) Windmill Water riglus Pipeline I < Th .. AtTADA 117.suifiDn s M.:Vre s •••• W s C Other improvements Cr) C— C- -3 -o Lessee • ^ Crt Lessee Lessee Commissioner of Public Lands, hereby give my consent to the above lessce(s) to validate improvements as listed above, (Any changes In valuations will be shown on an attachment). Validation date SL0 SCAN DEgibrINONIER OF PUBLIC LANDS Application fee: 530.00 6./C HSVd sevaoSLVIV'OI '140u4DOiadnoill9TP(5-AVN EFTA_00 I 95026 EFTA01305271 ZORRO RANCH 49 ZORRO RANCH ROAD STANLEY, NM 87056 TELEPHONE: F • E MAU. July 6, 2006 Reference: GR-2122 Water Pipeline — Section 16. Township_12 North. Range 09 East: Construction - 3 inch PVC pipe Depth — 4 feet Use — to provide water for domestic, irrigation and livestock from Dakota Well # 7871, terminating at a 25,000 gal reservoir Total Length of Pipeline Crossing thru GR-2122 — 7132.36' Approx Cost of Pipeline Crossing dim GR-2122 —S19,333.00 Please Note: A completed centerline survey plats and Right-Of-Way Easement application was submitted to Melissa Armijo of R/W Section, Surface Resource Management Division on July 7, 2006 Sincerely - A Ranch Manager Crt SLO SCAN DEC 1614.39 SDNY_GM_00173372 EFTA_00 195027 EFTA01305272 ZORRO RANCH 49 ZORRO RANCH ROAD STANLEY, NM 87056 TELEPHONE: F • E MAIL: July 6, 2006 Commissioner of Public Diners State Land Office P.0 Box 1148 Santa Fe NM 87504-1148 Reference: Water Pipeline Section 16, Township 12 North, Range 09 East Dear Ms M. Armijo, Reference your letter dated April 13, 2006, concerning an unapproved water pipeline installed for domestic and livestock purposes. Attached is a completed Application for Right-Of- Way, Centerline Survey Plat, Waiver of Property Damage, check for $13,144.00 (based on 432.3 rods at $30.00 per rod) and check for $100.00 (application fee). If there are in questions or concerns please do not hesitate to call Sincerely 7 , Range Manager SLO SCAN DEC 1 6 2033 SDNY_GM_00173373 EFTA_00 I 95028 EFTA01305273 NEW MEXICO STATE LAND OFFICE AFFIDAVIT OF COMPLETION OF RIGHT-OF-WAY CONSTRUCTION Zorro Trust of (Name of Individual or Entity Holding Right-of-Way) 457 Nadi ;inn Aw New York, New York 10022 (Address) holder of Right-of-Way No. RW-30137 issued for construction operation and location of a Right of Way Easement (type of right-of-way) hereby certifies that construction of the subject right-of-way has been completed, and that all guidelines of the State Land Office relating to reseeding and reclamation of disturbed areas have been or will be followed. OR No construction was required as the right-of-way is for an existing A honied Representative Manager Position ACKNOWLEDGEMENT STATE OF HEW MEXICO ) ) SS. COUNTY Santa Fe ) The foregoing instrument was acknowledged before me this 21st day of Septoinktr 20 06 by Brice Gordon gEe ,, rai t '' -74 of Zorro Trust cable, - \ .11 .. r ..':!.. 0 and name of Corporation) (Title of Officer, if applicable, • ..j,• 1.. ';'04..0 : r - • ( ITI, 2 slim t 2 Expires: i i 7 2 oe,c 1—/1 a :t. ' ,.,-. • 1 ,-.4_ a ‘.. . .: : i Notary Public 1.16 I f *: to • J .6 ., .' ' \ Ote.r 10,0 4Sc_ /iffidavit of Completion. Upon the completion of construction of any ",ri " Ply,ay; the applicant shall promptly file with the Commissioner of Public Lands an AfircTiNii of Completion. Failure to file such Affidavit in accordance with this section shall subject the right-of-way to cancellation in accordance with the provisions of these rules. S-63 (Revised 01/03/2000) SLO SCAN DEC 1 8 104 SS.INY taM OU1 (4 EFTA_00195029 EFTA01305274 wst-itto Ihl 41•••••• ._I_ ba. le 40 SAW *On I; pen la hag 4444.444filt P. nen, 1.•• 440.••• kA. OC4 •• Di Of MY Yin u. 1•44 4•4 tee :St •ams es me tt9 4.44 eies .1 01 In 404 nen an Nal n"• ••••••• WI a 4-4— •••• -- nom Oa -sem. • se. ninon. 644., 40•414•4' " 21•4 IS nolo al II *Vet {Old ( OM I AP WOO YAW Iron an, 44.4 1. 41 rollitUela4 .44 a 4 r allictir alt `44413• Naa lanasiT M. I N Inn Minn - —. min 4 en evioamaittUla I ...ay, mu,. nag • I— - le I 44 44 044 S Man n bel 0.44 4 . - 4 nel 440 .044, • 4dt:t est. t ; #0 Tr.= ./."Te. • sun" 4•54•••1 Cr t o. r • •in — n'a • • • — — - ••• /SOL as 4444 414 41444 Inns. 5 _ 11 / Ili •Valattler2an•WILIIII:415•02V41476:4 • • -.5,•:.1.1=4.7.1:674.•••te ;r a nt "11411rallhil;r • -1 04c4 - 7 4 rSV IS Cr -Vn114:41 &F.7.Z " YwP 1• rz )'a .r."."7 • -4;trenorwrw,w: 1 ..war,...;:szt...tur sec . ..,..2,= ,......;--pc•- ..... ... raja.. rasa. ••• Ili wig. ••••••••=wo.....4 4.-:;"*.. :^-741=1: :cm= 1.112;4174.••• " It" Th.‘b ... -masa- - — -I 0 £056 I 00-V.Ld3 yA EFTA01305275 CONFIDETIAL DOCUMENTS PRIVILEGED AN 1ONFIDENTIAL MATERIAL -THIS MATERIAL IS N4O BE INCLUDED IN ANY LEASE. CONTRACT OR OTR FILE OR RECORD AVALIABLE TO THE PUBLIC. IT Is/ f BE DISCLOSED ONLY BY EXPRESS WRITTEN (DER OF THE COMMISSIONER List of confidential Materials redard froin this lease file: -3o131 (A copy of this list may be providj to the public during inspections of public records) I 3 Meld retort it :„.. t 19 (..p 7i 8', 9 10 11 12 13 i 14. 1 15 16 1 17 1 18 ' 19 I 20 -- 1 SDNY_GM_00173376 EFTA_0019503 I EFTA01305276 NEW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT DirE TO FIELD DIVISION: 4,OJESTING DIVISION: LEASE NUMBER: NAME OF OF LESSEE/APPLICANT: ADDRESS: g5S7jZte c4 dddcska C-72042 DESIGNATED CONTACT: Asaete.-.4--. dt*s1 PHONE: oar cir„g.7- 047,5- ADDRESS: 451 FIELD DIVISION CONTROL NO.a c-- -- BY: TYPE OF REQUEST a 7" A/is' looeRa /177 A7 LEGAL DESCRIPTION: SECTION TINE RANGE COUNTY _096 A9A-te74 REMARKS 4e— cP-42 a 32.14,e) ah.4274--- ;AT .ETURNED TO REQUESTING DIVISION/BUREAU: 7 -.3 -e DISTRICT RESOURCE MANAGER RECOMMENDATION: rat +11.../2/iitogi La.A24 11..;LO /S0147 3OR Grit *V 13,9. o Strazii. a .7/ So _94 Az) *cued Lt. latteplO -6 -mi._ 4thif r 61411d. Ktme... Wthy, e.t.d./144AP A.14trwia Aitimv-nancp(ait o .PPROVE ION: FIELD DIVI,ON) (REQUESTING DIVISION 7 27/04 ( O NOT APPROVE RECOMMENDATION: (Please stale reasons) • cnoN TAKENtY REQUESTING DIVISION: VIM RETURNED TO DISTRICT RESOURCE MANAGER: 89 Revised: II/I/99 SLO SCAN UDC 16 zug SONY_GM_Poi73377 EFTA_D0 I 95032 EFTA01305277 NEW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT DATE TO FIELD DIVISION: i , I I • FIELD DIVISION CONTROL NO. JESTING -311 LEASE NUMBER: , • 7( TVPE OF REQUEST: NAME OF LESSEE/APPLICANT: ADDRESS DESIGNATED CONTACT: ADDRESS: BYt_ , ( 1 /7 /9 AI ,1; ••••- PRONE: ;'- •-7 - / • , LEGAL DESCRIPTION: SECTION • /1, RANGE COUNTY eici r /L• REMARKS: D :ETURNED TO REQUESTING DIVISION/BUREAU: 7 -3/ DISTRICT RESOURCE MANAGER RECOMMENDATION: I. "rt. ..) a. of Lr I ;et 3S4 • ?Jo dig"! 3 t, ci Li ,2L • zitif.t u .(1., IN v j c:At f-ki; • 4. 'ILL/ PA-LAY 4,11.24 Cenci' .11 ktla (.4 1;Ci i , .4; -Ln4.• /it" ? LJ: t c. J. ; .t is :44. 41:(14.17064.1-47: / /. IPPROVE RECOMMENDATION: FIELD DIVISON) gy if) I (REQUESTING DIVISION '0 NOT APPROVE RECOMMENDATION: (Please state reasons) CTION TAKENTIY REQUESTING DIVISION: •-• • I lir— • ".• crt. y As X Q %.) / 1 \ ..'yj f LTF a,a1TUFtNED TO DISTRICT RESOURCE MANAGER • " : 49 Revised: 11/1/99 SLO SCAN DEC 1 0 Aug • SONY_Gm_001.73378 EFTA_00195033 EFTA01305278 NEW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT Ws! TO FIELD DIVISION , L r FIELD DIVISION CONTROL NO R.E..e.rESTING DIVISION: 6Y'. LEASE NUMBER: TYPE OF REQUEST: NAME OF LESSEE/APPLICANT: ADDRESS: DESIGNATED CONTACT: PHONE: ADDRESS: LEGAL DESCRIPTION: SECTION TM' RANGE COUNTY REMARKS: DA'. ETURNED TO REQUESTING DIVISION/BUREAU. MSTRICT RESOURCE MANAGER RECOMMENDATION: ci i. PPROVE RECOMMENDATION: FIELD DIVLSON) (REQUESTING DIVISION ) O NOT APPROVE RECOMMENDATION: (Pleanstate rasoas) CTION TAKENWREQUESTING DIVISION: ITE RETURNED TO DISTRICT RESOURCE MANAGER: S9 Revi.red: 11/1/99 CLO SCAN LC 7 6 gm • • SDNY_GM_00173379 EFTA_00 195034 EFTA01305279 PATRICK H. LYONS COMMISSIONER JULY 26, 2006 TO: ATTENTION: THROUGH: FROM: SUBJECT: MARCUS J. GARCIA, SANTA FE DISTRI RW-30137. ZORRO TRUST. NEW RIGHT-SF-WA APPLICATION FOR A TRESPASS DOMESTIC USE WATER PIPELINE State of Vw afealco Commissioner of Public Lath 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org MJG-1196 GILBERT BORREGO, SURFACE RESOURCES DIVISION MELISSA ARMJO RIGHT-OF-WAY BUREAU BRIAN HENINGTON, FIELD OPERATIONS SIGN / SYNOPSIS This new application is to approve an existing domestic use water pipeline that is in trespass. The recommendation is to approve the application at the offered value of $30.00 per rod and to acrss an additional $30.00 per rod penalty for the trespass. The easement should be 10 feet wide and be issued for a 35 year term. A cultural resource survey for the corridor is also recommended. See the REMARKS section for additional information. LEGAL DESCRIPTION Section 16, Township 12 North, Range 9 East, N.M.P.M., Santa Fe, County, New Mexico; containing 432.30 rods or 7,13236 feet, more-or-less. LOCATION This state trust land section is located in south central Santa Fe County between Galisteo and Stanley, New Mexico. The section abuts fee land and lacks public access. 'UGLIEST AND BEST USE Highest, best and current use is estimated to be livestock grazing. ESTIMATE OF VALUE Valuation of pipelines easements on state trust lands in Santa Fe County (Central Quadrant) are based on fair market value, as per the Pipeline Easement/Right-of-Way Price Schedule currently in effect. Since sale disclosure is not required, private land market data for land sales and -State cries - Carrie O.4k7 Betspitel • Charitable Pima & Acton, • Comma schools • isclotIlUo Grande lapronnwal • MMus' Nemplial of NM •NM Don School • NM Highlands Wm/shy • NM butte of MLA% & Technology • Now Mexico Mi hwiluic•NM School for the Deaf • NM School for etc Vista IlaSicapped • NM Si.. liosphol • New Make Siam UM•crsity • Nathern 'Is college, • Peolcuolary of New Mc*ico • Palk BMIctiow 01 CaPtil • Suss Pork Cononission • U•ivenlry or New Maim • UNM Solis loads • W {WA's.* New Wilco thlivenky SDNY_GIVI_001 M80 EFTA_00 I 95035 EFTA01305280 JULY 26, 2006 -2- MJG-1196 easements, etc. is not readily available to the public sector and when discovered, it is difficult to confirm all pertinent data. This problem is magnified when some private land contracts specifically stipulate non-disclosure. The applicant has offered $30.00 per rod for this water pipeline and the recommendation is to accept the offer. The center line survey for the corridor refers to a 20 foot wide easement, but this is excessive for a buried 3 inch PVC pipeline. A 10 foot wide easement should be sufficient and this is the recommended width in addition to a 35 year term. REMARKS I documented this trespass while on another field evaluation within the ranch unit. The recommendation is to issue the right-of-way and to assess penalty of $30.00 per rod in addition to the offered fee of $30.00 per rod. The penalty is justified since there are other instances where the lessee has installed practices or built infrastructure without approval from this office, and presumably, ranch personnel are ignorant of or conveniently opt to ignore required permitting applications. Water is pumped from a well (referred to as the Dakota Well, indicating the geologic formation from where the water is mined) located on private land on the adjacent Section 17, to the lessees' house approximately one and a half miles to the northwest Although the State Engineer permit is for domestic and livestock use, the primary purpose is domestic. It is the more intense or higher use, which also justifies the recommended trespass fee. Although ground disturbance has already occurred, it is recommended that the lessee submit a cultural resource survey for the corridor. This undertaking may have bad an effect on the cultural resource assets of the Trust. Prior to approval for the placement of such an item on state trust land, an archaeological survey is required. Because the waterline is already in place, the archaeological fieldwork will have to include a complete survey of the entire waterline route as well as a damage assessment of the possible negative effects the installation may have bad on any cultural resources identified by the survey. For finther information regarding these requirements, the lessee may contact David Eck, Trust Land Archaeologist (827-5857). MJG Attaclunents S'..0 SCAN li, C162C39 SDNY_GM_00173381 EFTA_00 195036 EFTA01305281 DIGITAL IMAGES — MJG-1196 Looking northwest from the SVPASVA of Section 16. This image shows the subject corridor and note that a 10-foot wide easement should suffice. SDNY_GM_00173382 EFTA_00 I 95037 EFTA01305282 no fi 1'1.4t 4 stir 19 • . _ 21 I '•• 106•00• imam in' Wan' I Kappa. e0440. and Mashed by On Gialtadtal Sown 0200.•$ 1.1145 bad YnC605 Towson 1PV Onsidneowinc owns% I_ •••0 NO4p4OM 11000 1964. 2:06 ebeCO2 1900 Nticaot2.00.0.. WO nes /sae Os io.003nam V14 4W an Nn Hn. mann se nun. tali* was ICCOas Was' tesnontse *nth+ sod 1.0f. MS.. ea low Foe nit emWed Nati 0.1•19 WWI.. SOWS Ian . i y •,. 3 . • 3 d • .4 .4... - '. — I . . *t i ros . . . ' -:-/ 14-- ' ' '-) : - •—''--- -- '--- 't- e I ........--Th • ..----napft. _ ”--: &SO 1 I ata'.--1 , .. i ii - 4.- 7 P i E. .k-I .,I •- 7 t .ii if lc • lit. /r -ti •• • -ri iva.• I as. I I I. IP en. Nu atmti it ni CM") 11144 %PAW{ SW. Ilatou••• .4 Clain CO 6.yei . • " 7\2',.; - Celt°C. > r •••. H I ai s AMni se SCALE 12.I —= Bede. ').-17••••• . 2-I not „, I it tat • MO axe km S NI Sill' O 410200 CONTOU0 NOMINAL 20 MT MTIOut <1.000C atCal OL94 OP m$ Sntato SW SCAN • anansul was EFTA (x1195035 EFTA01305283 DATE TO FIELD DIVISION .F.STING DIVISION: LEASE NUMBER: NAME OF LESSEE/APPLICANT: ADDRESS z/5-7 DESIGNATED CONTACT: ADDRESS: 4? LEGA,. DESCR)PTION: ....AV MEXICO STATE LAND O IMO.. REQUEST FOR FIELD ASSIGNMENT - / 3-0 (a FIELD DIVISION CONTROL. NO. BV: TYPE OF REQUE.ST 2 4$2.1.4•146 a7112° . SECTION TWP /6 /a ,c1 di oacala PHONE: tOc - 38,P - .2676 la te-2% AMI R 7e6? , RANGE 096 COUNTY gaiL 1/4 .?° REIKAKKS- eia Di( lETURNED TO REQUESTING DIVISION/BUREAU- DISTRICT RESOURCE MANAGER RECOMMENDATION: APPROVE RECOMMENDATION: FIELD DIVISON) (REQUESTING DIVISION ( )0 NOT APPROVE RECOMMENDATION: (Please state reasons) CTI0N TAKEN UV REQUESTING DIVISION: ATco.ETURNED TO DISTRICT RESOURCE MANAGER. 89 Raised: I1/1/99 SLO SCAN DFC 18 mg SDNY_GM_00113384 EFTA_(() I95039 EFTA01305284 EFIA_00 195040 EFTA01305285 AGRICULTURAL LEASE - GR2088 COMPLETE LEASE FILE CONTENTS SONY_GM_00173386 EFTA_00195041 EFTA01305286 RECORDS ACTION FORM LEASE -Z 11.,,;.a3 7aZiLlii".3 4. ;?..:11tVgjer‘ - -1' 5- • • • S -5;:1-- P • -7-7. -- --5,7.C.435':tt, ,:yri v. .. • ..4.1.;Zt- CL,P •Zr_e---Artir • • , j ..,•: . , - - • - - -. - iiL •ya ‘ :;7 •••' - ..-tc_ti gn i, •;.:7A5 ,-• t ;rt.: - - -,-- - /4111465 -, la —R7c, - - Date - range By Code # Pages Post ,• Scan MF Arc Comments Received By c e aelita Date Scan Date Initials Approved Date -'11-/41 Acquested uctr=0,1 0. 3 g.--  7 (1-‘S 1 to 4---- /0 a_ i.-- (kx i t (-Is-(b it) 0..... C. V- 2 \C kli side tt-tr-tt - ,/ n 1 X r-tot at, ikts<ic. . it ! o / x e 4 . £'/9Q r hil CT/ 114 Sit? fki 104 1. Contract 2. Memo to file 3. Improvements 4. Assignment 5. Notes to file 6. Change of Address 7. Sublease R. Notice 9. Field Report 10. General Corresp. 11. Bid SDNY GM 00173387 _ EFTA_00 195042 EFTA01305287 THE CONTENTS OF THIS FOLDER HAVE BEEN PREPARED FOR IMAGING. PLEASE TAKE SPECIAL CARE NOT TO REARRANGE THE CONTENTS AS YOU WORK WITH THE FOLDER. IF YOU THINK YOU MAY HAVE GOTTEN IT OUT OF ORDER, no bid deal. but PLEASE CONTACT MARY DUBOSE OR OTHER AGRICULTURAL LEASING DIVISION STAFF ABOUT HOW TO REASSEMBLE. YOUR COOPERATION IS MUCH APPRECIATED. LEASE DATE OF PREP EFTA_00195043 EFTA01305288 This is a Pa ch i type sepa a or sheet. 1 1 1 0 11 1 Form Type = citogra type 0acode tcBid" This is a Patch I type separator sheet. 7 < 0 a U. * Portrait Feed New Form Follows... I 111111 J1111,11111 o Landscape Feed Printed 011 7/6/2001 11:49:21 AM CepppMOKoda. Mugs Products 19041999 SDNY_GM_00173389 EFTA_00 195044 EFTA01305289 NEW MEXICO STATE LAND OFFICE COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 1148, SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GR2088 THIS LEASE, DATED OCTOBER 01, 2016 , IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW MEXICO, HEREINAFTER CALLED "LESSOR" AND: CYPRESS INC., A VIRGIN ISLANDS CORPORATION HEREINAFTER CALLED "LESSEE(S)", WHOSE ADDRESS OF RECORD IS: 49 ZORRO RANCH ROAD STANLEY, NM 87056 LESSOR AND LESSEE AGREE AND COVENANT AS FOLLOWS: 1. LEASE. FOR AND IN CONSIDERATION OF AND SUBJECT TO THE RENTALS AND THE TERMS, COVENANTS, CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE AND ALL OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSEE TAKES FROM LESSOR THE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. THIS LEASE IS GOVERNED BY 19.2.8 NMAC(RULE 8). 2. TERM. THE TERM OF THIS LEASE SHALL BEGIN ON OCTOBER 01, 2016 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 2021. 3. RENT. THE ANNUAL RENTAL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NMSA 1978 AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN THE STATE LAND OFFICE ON OR BEFORE OCTOBER 1. THE ANNUAL RENTAL FOR GRAZING LAND SHALL BE DETERMINED AS FOLLOWS : ANNUAL RENTAL BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY SLO RULE 8 "RELATING TO AGRICULTURAL LEASES" (19 N.M.A.C. 3, SLO 8.11). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OF THE EVI, FOR EACH SUCCESSIVE YEAR OF THE LEASE TERM, BE DECREASED OR INCREASED BY MORE THAN THIRTY-THREE AND ONE-THIRD PERCENT.IN THE CASE OF GRAZING RENTAL OFFERS ON OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID, LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL GRAZING RENTAL DUE IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, ASSOCIATED LAND AND CONSERVATION RESERVE PROGRAM LAND SHALL BE DETERMINED BY LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERM OF THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. raa CA "I 4 • PERMITTED USE. LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AND IN ORDER TO COMPLY WITH ALL APPLICABLE PROVISIONS OF LAW REGARDING THE CARE AND PROTECTION OF THE LEASED PREMISES. eS. .... I A T? It Up e2 ?or 9ICZ 8 ti LAB SUSPENSE 3MM001-000V 34 0 01-AUG-16 09:16 1[4.86 SDNY_GM_00173390 EFTA_00 I 95045 EFTA01305290 5. LIEN. AS SECURITY FOR THE PAYMENT OF ANY RENT THAT IS OR MAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL BE PLACED ON THE LEASED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR. ALL IMPROVEMENTS PLACED ON THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED AS UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH THE APPLICABLE LAWS AND RULES. 7. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE THE LEASED PREMISES OR THE IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY LEASE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT BE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. 8. COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY BE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OF THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OF A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT THE CANCELLATION OF THE LEASE AND TERMINATION OF THE COLLATERAL ASSIGNMENT FOR THE NONPAYMENT OF RENTALS OR OTHER VIOLATIONS OF THE LEASE TERMS. 9. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF THE TERMS, CONDITIONS, OR COVENANTS OF THIS LEASE OR THE NONPAYMENT BY LESSEE OF THE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THE COMMISSIONER BE CONSIDERED A DEFAULT AND SHALL CAUSE THE CANCELLATION OF THIS LEASE 30 DAYS AFTER LESSOR HAS SENT WRITTEN NOTICE OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OF COLLATERAL ASSIGNMENTS BY REGISTERED MAIL, ADDRESSED TO THE POST OFFICE ADDRESS OF RECORD, PROVIDED, HOWEVER, IF WITHIN THE THIRTY DAYS THE LESSEE OR HOLDERS OF ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN THE NOTICE, CANCELLATION SHALL NOT BE MADE. 10. RENEWAL. ANY LESSEE WHO DESIRES TO SECURE A NEW LEASE SHALL MAKE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OF THIS LEASE. THE RIGHT OF RENEWAL SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS PROVIDED FOR BY LAW AND RULE. 11. RESERVATIONS. A. LESSOR RESERVES THE RIGHT TO EXECUTE LEASES ON THE LAND GRANTED BY THIS LEASE FOR MINING PURPOSES AND FOR THE EXTRACTION OF OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND THE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS OF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORTI- CULTURAL PRODUCTS AND TO GRANT SUCH OTHER RIGHTS-OF-WAY AND EASEMENTS AS PROVIDED 12 TT LILi S7 11111 9103 EFTA_00195046 EFTA01305291 BY LAW. B. LESSOR RESERVES THE RIGHT TO WITHDRAW PURSUANT TO RULE, UP TO 640 ACRES, BUT IN NO CASE MORE THAN HALF, OF THE LAND HELD BY THIS LEASE. 12. COMPLIANCE WITH LAWS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OF LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES WHICH HAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL MATTERS AND THINGS AFFECTING THE LEASED PREMISES AND OPERATIONS THEREON. SUCH OTHER AGENCIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALL SAVE AND HOLD HARMLESS, INDEMNIFY AND DEFEND LESSOR AND THE STATE or NEW MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND FROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OUT OF OR ALLEGED TO ARISE OUT OF OR INDIRECTLY CONNECTED WITH THE OPERATIONS OF LESSEE UNDER THIS LEASE, OFF OR ON THE LEASED PREMISES OR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NOT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. 15. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE OF ANY OF THE TERMS, CONDITIONS OR COVENANTS OF THIS LEASE SHALL BE HELD TO BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID OR BINDING UNLESS THE SAME IS IN WRITING AND SIGNED BY LESSOR. 16. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OF INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE FROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 18. SUCCESSORS IN INTEREST. ALL TERMS, CONDITIONS AND COVENANTS IN THIS LEASE SHALL EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST OF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE LESSOR RESERVES THE RIGHT DURING THE TERM OF THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MAKE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS MAY BE REQUIRED. 20. SURFACE DAMAGES NOTIFICATION. t? TT 418 8a 111P 912 0 M_00 173392 EFTA_(() I95047 EFTA01305292 PURSUANT TO 19.2.8.21 NMAC, IF LESSEE IS INVOLVED IN LITIGATION WITH ANY OTHER PERSON OR ENTITY FOR DAMAGES CONNECTED WITH THEIR LEASED TRUST LAND, LESSEE MUST NOTIFY THE COMMISSIONER AS SOON AS PRACTICABLE. THIS NOTICE REQUIREMENT DOES NOT APPLY TO LITIGATION INVOLVING ONLY THE LESSEE'S PERSONAL OR REAL PROPERTY. TO TT WI 82 If1r 912 SDNY 00173393 EFTA_00 I 95048 EFTA01305293 I/WE CERTIFY THAT I/WE ) REFERENCED ON THE FACE PAGE OF THIS LEASE. ( LESSEE SIGNATURE LESSEE SIGNATURE STATE OF NEW MEXICO ) ) COUNTY OF ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF , 20 ACKNOWLEDGMENTS NATURAL PERSON(S) TELEPHONE EMAIL • 4."."‘iruniri"."11 ) 'CS 4: /0 TELEPHCpile• .•'. ( ry.• \lc '. 16 e: n— 0,1 • OF . 7**X(7./- • NE', I ...or': BY (NAME OF LESSEE ACKNOWLEDGED) MY COMMISSION EXPIRES: NOTARY PUBLIC PARTNERSHIP STATE OF NEW MEXICO ) ) COUNTY OF ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF 20_, BY (NAME OF PERSON ACKNOWLEDGED) PARTNER(S) ON BEHALF OF MY COMMISSION EXPIRES: A PARTNERSHIP. NOTARY PUBLIC OF SASI1 CORPORATION. MY COMMISSION EXPIRES:1C)I)(,,,tlit NIEU3 V021- STATE OF 4a14-MBH4GG- ) ) COUNTY OF KEW 1CIU- ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS egi n DAY OF BY actrecy pc•t-tin Pire...64A‘CA- l (NAVE OF OFFICER) (TITLE OF OFFICER) press, -It A OStftin Loins& CORPORATION, (CORPORATION NAME) rz ri 14,4 cAlohtfie (ludw • •` ALE Afr ' ‘ 6.2 • ..•• .kyt.,;tb 7 L A,:... .e.- gle7: 01;•Vot: t31 I& .. ... • • 15,*. NV:410M • . -95). • m. 1/3 • • • • • 0 • ' OF tt e•-• • . . . . . Y, 92 7fl? CORPORATION cola EXP. • duty NOTARY PUBLIC MUM AVOW NOTARY IMUC4TME OF MW YORK NO. 01M/6313116 GUMS In Richmond County My ComMadon Explms Want 14, 2011 20 )0, OF ON BEHALF SDNY_GM_00173394 EFTA_00 I 95049 EFTA01305294 NEW MEXICO STATE LAND OFFICE APPRAISEMENT OF GRAZING AND AGRICULTURAL LANDS COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING PO BOX 1148, SANTA FE, NEW MEXICO 87504-1148 LESSEE: SECTION 10 OF THE NEW MEXICO ENABLING ACT SPECIFICALLY REQUIRES THAT ALL STATE LAND TO BE LEASED BE APPRAISED AT ITS TRUE VALUE. STATE LAW, UNDER SECTION 19-7-1 NMSA 1978, FURTHER PRESCRIBES THAT SUCH APPRAISEMENT BE SECURED BY THE LESSEE WHEN ACQUIRING A LEASE AND THAT SUCH APPRAISEMENT BE COMPLETED BY A DISINTERESTED PERSON. THE INSTRUCTIONS FOR THE COMPLETION OF THIS FORM ARE SET OUT BELOW. APPRAISEMENT INSTRUCTIONS: THIS INFORMATION MUST BE COMPLETED BY A DISINTERESTED PERSON AND BASED ON THAT INDIVIDUAL'S INFORMATION AND BELIEF. THIS FORM CANNOT BE COMPLETED BY A LICENSED APPRAISER. (NMSA 1978, 61-30-16). YOU CANNOT PAY TO HAVE THIS FORM COMPLETED. (NMSA 1978, 60-30-3A). THE LAND MUST BE APPRAISED AS VACANT, I.E. WITHOUT IMPROVEMENTS, FOR BOTH SALE AND LEASE PURPOSES. IT MUST ALSO BE SIGNED BEFORE A NOTARY PUBLIC. ,/Alt , DO SOLEMNLY SWEAR (OR AFFIRM), UNDER THE PENALTIES OF PERJURY,,2,HAT AFeEB HAVING PERSONALLY INSPECTED THE TRACT(S) OF LAND CONTAINED IN LEASE NO tc-tx-- 2142 AND DESCRIBED IN EXHIBIT A OF SAIDW, J2afHAT MY OPINION OF THE APPRAISED SASH VALUE OF SAME (WITHOUT IMPROVEMENTS) IS $ PER _ ACRE, IF SOLD, AND $ PER ACRE, FOR LEASE PURPOSES, AND CERTIFY THAT I AM NOT INTERESTED IN SAID LAND FOR LEASING OR SALE THEREOF. SIGNEPa ADDRESS MTh , CITY/STATE fif ofle Sins SUBSCRIBED AND SWORN TO BEFORE ME THIS R56 DAY OF II 20 MY COMMISSION EXPIRES: 10 - q-1'[ t2 ir 51p NOTARY 3 BLIC SDNY_GM_00173395 EFTA_00 195050 EFTA01305295 EXHIBIT A LEASE NO: GR2088 SUBDIVISION SEC-TWN-RNG ACREAGE U PRICE S PER E UNIT CARRY CAP • LOT1 LOT2 LOTS LOT4 RENEWAL LEASE 36 13N 09E 84.86 G - TOTAL ACREAGE: 84.86 TOTAL RENTAL: 11 $104.86 LEGEND: USE TYPE CODES C= CONSERVATION RESERVE PROGRAM I= IRRIGATED CROPLAND, M= 2= DRYLAND FARMING (BID), 3= H= 1/2 SOUTH FOR TOWNSHIP, H. LAND, D= DRYLAND FARMING, MOBILE HOME ON LAND, R= RSIP LAND, IRRIGATED CROPLAND(BID) 4= CRP(BID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS re it (Ely 80 w Rez G= GRAZING, 1- GRAZING (BID), 5= RSIP(BID) , SDNY_GM_00173396 EFTA_00 1 9505 1 EFTA01305296 Date: ilaDKCI IMPROVEMENT LISTING FOR EXISTING LESSEE'S RENEWAL APPLICATION The State Land Office Rule Relating to Agricultural Leases, 19 N.M.A.C. 8.9.2.2. requires you to submit a listing of your improvements located on the state leased land held under this lease with your application. LEASE NUMBER (Please check ooc of the boxes) DO IMPROVEMENTS EXIST ON STATE LAND: YES NO z IF yP-S PI SASE LIST BELOW. (none) All improvements must be listed even if they are on record with our office. LOCATION Inclusion of unauthorized improvements on this listing or any appraisal submitted to the Commissioner for any purpose shall not be interpreted as approval of those improvements by the Commissioner. (19 N.M.A.C. 8.9.11) This office will reject your renewal lease application if this form is not completed. The information provided above is true and correct to the best of my knowledge. Please sign and date. whether has 1 rovements exist or not. Lessee Signature 12 ITL8 8? 111? 9102 EFTA 00)95052 EFTA01305297 (mailing address) v6 nc9 Aubrey Dunn, Commissioner of Public Lands State of New Mexico APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL OUT IN INK) I/We, a., cora . o ry, (s. being lessee(s) under Agriculture Lease No. granted by the piommissioner of Public Lands, do hereby make application to sublease the lands described as follows: , of SUBDIVISION SEC. TWP. RANGE ACRES Inge. EsLti hi\ ( A aklad kt40 If additional space is needed to describe legal subdivision, please attach additional sheet using the n above format Please give name oflubleissettedemakng address: fira ita k }et C.1^0tVe2. ILR 2db Vorn bk9, Nmiho5L It being understood that said permission to sublease does not in any way relieve me/us from obligation assumed under the lease stated above. Sublease term on the designated lands to commence October 1, 20 , and to expire on September 30, 20 (1 (Sublease cannot be given be ond expir, date of leasell Give reasons this land is being subleased: Cary p Da Lia2n1Q The number, type, class of livestock, and period of use, are as follows: LIVESTOCK KIND NO. a Cs-al (Revised 10/2015) g t=i ap. CLASS PERIOD OF USE FROM TO eto3 3 las htl 4Rcl 17 cl39 KtincgrioN FEE $100.00 FEES I 14119_0 001-00004 99 0 21-SEP-16 080 100.00 SDNY_GM_00173398 EFTN_00195053 EFTA01305298 Ear SO: 682066 SUBDIVISION BEC-TNN-REG ACREAGE It PRICE S PER S UNIT CARRY CRP Cal ar2 1T3 )T4 !NATAL ,LEASE t 35 ',139 092 21.14 G 11 J 36 131t 092 21.19 G 11 36 131 ORA: 21.24 0 - 11 36 13A lops, '21.29 G - 11 TOTAL / en 64.06 TOTAL RENTAL: 963.71 //Wren MAD: USE TIPS CODES CONSERVATION RESERVE PROGRAM LAND, D= DRILAND PARSING, IRRIGATED CROPLAND. E= MOBILE ROBB ON LAUD. Er- warp LAND, UNMAKE PANNING (BID), 3" IRRIGATED CROPLAND(BID) 4c CRP(BID) 1/2 SOUTH FOR TOWNSHIP, 0= 1/2 EAST FOR RANGE agarzno CAPACITY RATES Inn ARE EASED ON 640 ACRE PARCIMS hi 1 TZ tussle, 6= GRAZING. 1= GRIMM (Hm), 5= av1P(B-1) . SONY_GM_00173399 EFTA OO195O5 EFTA01305299 NEW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT DATE TO FIELD DIVISION: 09/27/2016 REQUESTING DIVISION: Agriculture LEASE NUMEERJ OR 20811 101 Pi= DIVISION CONTROL NO: JUL2S4 BY, Danny Sandoval TYPE OP REQUEST: Sublease Renewal SANS OP LESSEE/APPLICANT: CYPRESS INC., A VIRGIN ISLANDS CORPORATION ADDRESS: 49 ZORRO RANCH ROAD, STANLEY, New Mexico, 07056, NAME PHONE ADDRESS EMAIL CYPRESS INC., A VIRGIN ISLANDS CORPORATION 5059333401 49 ZORRO RANCH ROAD STANLEY, NM B/056 LEGAL DESCRIPTIONS TWP RNO SEC COUNTY 1,2,3,4 13N 09E 36 Santa Po RINAPABI DATE RETURNED TO REQUESTING DIVISION/BUREAU: :1/07/2016 Recommendation Supervisor Recommendation Please see attached report JUL-254 Approval recoamended to allow sublease on 00.2088. ACTION TAKEN BY REQUESTING DIVISION: Approve Sublease Renewal per ORM,. recommendation. 11/8/2016 DNS APPROVE RECONNENDATION: (TIM DIVISION] ELECTRONICALLY APPROVED: 11/07/2016 Kenneth Baca IREQUESTINO DIVISION] ELECTRONICALLY APPROVED: 11/00/2016 ' Danny Sandoval REQUESTING DIVISION SUPERVISOR COMMENT, Approval of the Sublease Application is recommended for a one (1) year term. October 1, 2016 - September 30, 2017 11/10/2016 LM APPROVE RECOMMENDATION: [REQUESTING DIVISION SDPZRVIS0R) ELECTRONICALLY APPROVED: 12/10/2016 Lucille Martinet CHECKLIST 241. If acreage is in poor condition, please provide transecta. 242. Please advise on range conditions using an ocular estimate approach. 243. Please inspect and make your recommendations. 244. Please provide a ranch map and indicate where the state lend sits in relation to the private lend. 245. Please provide other pertinent information regarding this sublease. 246. Please verify how touch acreage is being subleased and to whom? !co \s. SD 00173400 EFFA_00195055 EFTA01305300 Aubrey Dunn COMMISSIONER State of 9S6w Meztico Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 COMMISSIONER'S OFFICE Phonc (505) 827-5760 Fax (505) 827-5766 www.nmstatelancls.org November 4, 2016 JUL-254 TO: Lucille Martinez, Assistant Director Surface Resources ATTN: Danny Sandoval, Management Analyst THRU: Kenny Baca, Assistant Director Field Operations FROM: Jason Lithgow, District Resource Manager Santa Fe District Office SUBJECT: Sublease Renewal: GR-2088 Cypress Inc. Date Received: September 27, 2016 SYNOPSIS This field report address's the sublease renewal application for grazing lease GR-2088. GR-2088 consists of 84.86 acres and is located in Santa Fe County. Cypress Inc wishes to sublease the total acreage to Ernest Ortiz & Steve Chavez. A field visit was conducted on November 04, 2016. O!. C.4 :c1) N-..8ffiNlY_GM_00173401 EFTA_00195056 EFTA01305301 JUL-254 November 4, 2016 LEGAL LAND DESCRIPTION A tract of land containing 84.86 acres, more or less, and allocated by forties as Mows: N.M.P.M. Section Quarter/Quarter Township Range County 36 Lots 1,2,3,4 13N 09E Santa Fe LOCATION 310 Old Santa Fe Trail Santa Fe, NM 87501 Continue to NM-466 S/Old Pecos Trail 6 min (2.1 mi) Follow I-25 N/US-285 S and NM-41 S to Zorro Ranch Rd 34 min (31.8 mi) Turn right onto Zorn) Ranch Rd Destination will be on the right 2 min (0.5 mi) 1-107 Zorro Ranch Road Stanley, NM 87056 SITE/PHYSICAL DESCRIPTION This site is rural rangeland. Adjoining lands are used for livestock grazing, arid wildlife habitat. Vegetation consists of short arid mid native grasses, fortis, and shrubs. REMARKS A field visit was conducted on November 04, 2016. No issues were found that should stop this sublease. I recommend approval of the sublease. This will continues sound management on the subject tract. JUL-254 2 November 4, 2016 SDNY_GM_00173402 EFTA_0011 95057 EFTA01305302 JUL-254 November 4, 2016 241 - If acreage is in poor condition, please provide transects. Transects were not required at this time. 242 - Please advise on range conditions using an ocular estimate approach. The range conditions were Mir using an ocular estimation approach. The ranch runs a total of 40 cows on 10,000+ acres. 243 - Please inspect and make your recommendations. The ranch is in good order, I recommend approving this subbase. 244 - Please provide a ranch map and indicate where the state land sits in relation to the private land. See attached maps. 245 - Please provide other pertinent information regarding this sublease. The subject tract is in good shape with no issues to report 246 - Please verify how much acreage is being subleased and to whom? The entire grazing lease is being leased to Ernest Ortiz & Steve Chavez. JUL-254 3 November 4, 2016 SDNY_GM_00173403 EFTA_00 I 95058 EFTA01305303 JUL-254 APPENDIX A: PHOTOS JUL-254 4 November 4, 2016 November 4, 2016 SONYGM00173404 EFTA_00195059 EFTA01305304 JUL-254 * I II • e at -"tFits .41/4 .... • 4* JUL-254 Notember 4, 2016 Plc 2. GP-20138 5 November 4, 2016 CY' r% co O SDNYGMO 0173405 EFTA_00195060 EFTA01305305 JUL-254 APPENDIX B: MAP GR-2088 ate ce Ito ll Lail Slates • V if 02 11 If AO Dead Ina Wes Ida 1•01 411114.n4Jon Sim Dam JUL-264 6 November 4, 2016 *nein, lir foam et cn.les «van. Carla =On 041.• mor.raw Lel Oom Va. 43110•4•V - OleWor - bid loll OP ISM Iteall whet Maws inn SUS Astor Vaal •41140•44ms Owe 44A/Mallin Tyne alNiass Owns 44Tarfr • Ogg hap Yea, al RI VW* %min . bui• Yin JAM Ibis/ Pia Sabo ba•Caltallalisia Pawn Solt Wei Lis wan.. Idbmhe C44 Sabina lefraCtI azami Lanippo YOWYIr MAnbella Cabala to MEI a LIM. xw ma. VW sou... nest*. • an.," • OBION•sIon N greens MAY; I an•••••••• • ha t fat rg Ma Aetna "Oat. 0...flestlavesIes Crow br3,Inearam• 0•0.400114 NV 0 :IAMPII November 4, 2016 SDNY_GM_00173406 EFTA_00 195061 EFTA01305306 Aubrey Dunn COMMISSIONER Cypress Inc. 49 Zorro Ranch Stanley, NM 87056 State of New Mexico Commissioner of Public Lath 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 Re: State Agricultural Lease GR-2088 Sublease GR-2088-101 Dear Lessee(s): Please find enclosed a copy of your approved sublease application. commenced on October 1, 2016 and will expire on September 30, 2017. If you have any questions lease, please feel free to contact Mr. address above or at Sincerely, Aubre Commissioner of Public Lands AD/ds Encl. COMMISSIONERS OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org November 10, 2016 Your sublease will Danny Sandoval at the SDNY_GM_00173407 EFTA_00 195062 EFTA01305307 Ortiz, Julian Jbject: Ms. Gordon Zorro Ranch RE: CYP_GRAZiNG_LEASES_110714 Thank you for bringing this to my attention. After reviewing your two leases, GR2088, GR2122 and the two subleases, 1, GR2122-0001, I have found that the sublease rental has not been paid on GR2088-0001 since 2011. If you intend to keep your leases, please submit the sublease rental for GR2088.0001 in the amount of $50.00 for each year, 2012,2013, and 2014. The Interest for late payment on the leases for 2014 in the amount of $11.10 is also due. The total amount due will be $161.10. Once again, thank you for bringing this to my attention. If there is anything more that I can help with, please do not hesitate to contact me. Julian Ott New Mexico State Laud Office Management Analyst Surface Resources Division 310 Old Santa Fe Trail . anti Fe New Mexico 8750,1 From: Zorn Ranch Dnitt Sent: Monday, November 10, 2014 1:57 PM To: Ortiz, Julian Subject: Re: aP_GRAZ1NG_LEASES_110714 Good Afternoon, Just touching base to confirm that a revised Billing Statement will be forwarded Thank you Sincere! On Fri, Nov 7, 2014 at 1:55 PM, Zorro Ranch a wrote: Good Afternoon, Attached original Billing Statement 2014, which was processed out for Check to be generated Sept 12th 2014. Check was generated Sept 17th 2014 and mailed out to the Santa Office Sept 19th 2014. It does concern me that it either took 2 weeks for your office to receive this and or was there a delay in release offunds clearing since this check was generated in the USK Attached Billing Statement 2014 that was received 11/6/14, which does correspond to what you said about 'qte payment, noting nothing is mentioned about a GR 2088 Sublease. Attached Billing Statement 2013 showing how billing was previously formatted 1 1 7N\e !co 4; SD\KLP44173408 EFTA_00195063 EFTA01305308 Please forward a revised Billing Statement Thank you Vincerel Zorro Development Corp 49 Zorro Ranch Road Stan* NM 87056 Ranch Matra er Tel: Fax: Zorro Development Corp 49 Zorro Ranch Road Stanley, NM 87056 Ranch Marta er F : This email has been scanned by the Symantec Email Security.cloud service. For more information please visit htto://www.svmanteccloud.com 2 SDNY_G X173409 EFTA_00195064 EFTA01305309 Ray Powell, M.S., D.V.M. COMMISSIONER State of Mexico Commissioner of Pia Lands 310 OLD SANTA FE TRAIL. P.O. BOX 1148 SANTA FE. NEW MEXICO 87504-1148 Cypress Inc. 49 Zorro Ranch Road Stanley, NM 87O56 Re: State Agricultural Lease No. GR2122 (Sublease No. GR-2088-0001 & 2-001) Dear Lessee(s): COMMISSIONER'S OFFICE Phone (505) 827-5760 Fox (505) 827.5766 www.mnstatelands.org June 11, 2014 Please find enclosed a copy of your approved sublease applications. Your sublease commenced on October 1, 2013 and will expire on September 3O, 2016. If you have any questions lease feel free to contact me at the address above or at Sin Julian Ortiz Surface Resources Division NM State Land Office end. SDNY_GM_00173410 EFTA_00 I 95065 EFTA01305310 CYPRESS, INC 49 Zorro Ranch Road Stanley, NM 87056 Telephone: May 7th, 2014 New Mexico State Land Office PO Box 1148 Santa Fe NM 87504 Attention: Ms Lucille Martinez -C cn Dear Ms Martinez, We would like to confirm that Cypress, Inc has a new mailing address. If all correspondence could please be forwarded to the following 49 Zorro Ranch Road Stanley, NM 87056 If you have any questions or concerns in reference to this could you please call Thank you for you assistance with this matter Sincereley, SONY_GM_00173411 EFTA_00 I95066 EFTA01305311 Ray Powell, M.S., D.V.M. State of Vw Mexico COMMISSIONER Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87504-1148 Cypress Inc. 49 Zorro Ranch Rd Stanley, NM 87056 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmsillelands.org May 16, 2014 RE: STATE AGRICULTURAL LEASE NO. R-2088-0001 & GR-2122-0001 Dear Lessee(s): This office has received your applications to Sublease State Trust Lands. This office will send a District Resource Manager to inspect your leased lands on site and make a recommendation. Typically, it takes four to six weeks until we can approve or disapprove the application. If you have any questions lease feel free to contact me at the address above or at Sincerely, Danny Sandoval Surface Resources Division NM State Land Office SDNY_GM_00173412 EFTA_00 I 95067 EFTA01305312 5'3" it NEW MEXICO STATE LAND OFFICE OFFICIAL REQUEST FOR CHANGE OF ADDRESS To: Commissioner of Public Lands Post Office Box 1148 Santa Fe, New Mexico 87504-1148 Dear Sir: I am the holder of (Oil and Gas) (Mineral) (Other) Lease No. (Specify) Assignment No. , covering (Land Description) of record in the New Mexico State Land Office, and I request that all official notices from your office which are required to be sent to me by law or under the terms of my lease or contract be sent to me at the address shown below, which address shall remain unchanged upon your records unless and until expressly directed in writing by me to do so. ev precs The. ' (Conl'pany Name) Signature (Please sign aspme appeacs on lease) 1,161 torn) katirti (street Address or Box Number) IN Nig $7 0 S-L (City,,)Siate and Zip Code) par: K. -rent L. 0rd- e h 5/15-/P74 This form to be filed with the original lease instrument in the State Land Office. 0-67 04/01/94 SONY_GM_00173413 EFTA_00 195068 EFTA01305313 NEW MEXICO STATE LAND OFFICE OFFICIAL REQUEST FOR CHANGE OF ADDRESS To: Commissioner of Public Lands Post Office Box 1148 Santa Fe, New Mexico 875O4-1148 Dear Sir: I am the holder of (Oil and Gas) (Mineral) (Other) Lease No. C IL — (Specify) Assignment No. , covering (Land Description) of record in the New Mexico State Land Office, and I request that all official notices from your office which are required to be sent to me by law or under the terms of my lease or contract be sent to me at the address shown below, which address shall remain unchanged upon your records unless and until expressly directed in writing by me to do so. (Company Name) C/O ,c-- (3-<„ ,td, Signature (Please sign as name appears on tease) z c /cal (Street Address or Box Number) 7 4/71 V- 7 (City, State and Zip Code) .f" 1,7 kfr-• /C. o I- ,c_ n. This form to be filed with the original lease instrument in the State Land Office. 0-67 04/01/94 SONY_GM_00173414 EFTA_00 195069 EFTA01305314 NEW MEXICO STATE LAND OFFICE APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL OUT IN INK) l/We, of (mailing address) Al AINIVI i . (gym sirblo , being lessee(s) under Agriculture Lease N , granted by the Commissioner of Public Lands, do hereby make application to sublea the lands as follows: SUBDIVISION SEC. TWP. RANGE ACRES c450,0imt k)thwil i'lv86 If additional space is needed to describe legal subdivision, please attach additional sheet using the above format Please give name of sublessee and mailing address: L Mk, Ism g/635 /I la Counit, el t 101S. {s ,n rimaida It being understood that said permission to sublease does not in any way relieve me/us from obligation assumed under the lease stated above. Subleaseiterm on the designated lands to commence October 1, 20 and to expire on September 30, 20 lb , (Sublease cannot be given beyond expiration date of lease.) &o,-zio9 crc Give masons this land is being subleased: The number, type, class of livestock, and period of use, are as follows: NO. LIVESTOCK ult/Ns PERIOD OF USE CLASS FROM TO Yfr A& (Loss LAS I S-01 (Revised 01/2001) SONY_GM_O0173415 EFTA_(() I95070 EFTA01305315 Please indicate the person and/or party that you wish our field representative to contact relative to this application to sublease: Name: Address. LA %ix) fr,ran (lord Home Telephone No WMilog Business Telephone No. Include 20% (twenty-percent) of the yearly rental with completed Sublease Application Form. The minimum fee for subleasing is $50.00 (fifty dollars). tOkii Ire) , do solemnly swear (or affirm) that statements ad answers to the questions in this application are true and correct to the best of my knowledge and belie£ ANY FALSE STATEMENTS CONTAINED HEREIN WILL SUBJECT MY LEASE OR LEASES TO CANCELLATION. CYPICESS, INIC. Signed:Setiama, I Signed: Inset SUNFRIBED AND SWORNto telfore me this 7th day of Mai , 20 ,,,,,,,, by (Yu" -1-01a1V1/4-e— ot;,,e,FF "t,,. {Name of Person's Signature bein acknowledged) 1 LESLEY K GROFF tiotoiiii(iiteMilinfenciNCP S: 111L-‘) T t c)AD IR- 103. 010R1205700 Ovolltiod la New York County _ I Commission Er Jul s. 2011 ublic r 2a.chri jotJadi , COMMISSIONER OF PUBLIC LANDS, do hereby • : grant the lessee(s)Tisted above permission to sublease the above described land. ;% /vIC L44, , APPROVED THIS lb 5-01 (Revised 01/2001) day of Cart . • 20 .itt dj'ffeit: .'• f • (it- ‘; a • 7' • ie IOC LAWS .11, woo hT T Si AN hie COMMISSIONER SDNY_GM_00173416 EFTA_00195071 EFTA01305316 EXHIBIT A LEASE NO: GR2088 SUBDIVISION SEC -IVM-RNG ACREAGE U PRICE S PER E UNIT CAR CAP LOT1 LOT2 LOT3 LOT4 RENEWAL LEASE 36 13N 09E 84.86 G - TOTAL ACREAGE: 84.86 TOTAL RENTAL: 11 LEGEND: USE TYPE CODES C- CONSERVATION RESERVE PROGRAM I- IRRIGATED CROPLAND, M- 2- DRYLAND FARMING (BID), 3- H- 1/2 SOUTH FOR TOWNSHIP, He LAND, De DRYLAND FARMING, MOBILE HONE ON LAND, R- RSIP LAND, IRRIGATED CROPLAND(BID) 4e CRP(BID) 1/2 EAST FOR RANGE * CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS Ili I Lid Si AULJ h102 C h ;Id , • 'It G- GRAZING, 1- GRAZING (BID), 5- RSIP(BID) SONY_GM_00173417 EFTA_00 I 95072 EFTA01305317 siEW MEXICO STATE LAND OFFIL. REQUEST FOR FIELD ASSIGNMENT FIELD DIVISION CONTROL NO. 114 -1- ( ?VESTING Drnsi -- /1 DATE TO FIELD DIVISION: ..C.:/ ar- iti /6 t ret Z-I rij BY: lea ea as -C4..... /iv iv / LEASE NUMBER: TYPE OF REQUEST: M w Ski feit Se NAME OF LESSEE/ S S n C. ADDRESS: 1i 2„tro At.., ...k Rd, g4 Q.. t DESIGNATED CONTACT: ADDRESS: S LEGAL DESCRIPTION: SECTION 7 144L It 2 t i s q S A. is 0 $11._ TWP t 3 N PHO RANGE IA COUNTY a.,4 FL CD. REMARKS: ?(t 4.1e- I ItSpetrf r ot ...Ake- re CO trkrekt AcseA4( 'art . Ste griikebe rt jY1e..w 1;" InatSCS • /I RETURNED TO REQUESTING DIVISION/BUREAU: DISTRICT RESOURCE MANAGER RECOMMENDATION: 6 ei—/ AD/ raSte-ihr9G ef 2.-eva_a_ 424 4'O &et 4. Ai...2_ ofira- rfrt"-- 63-003C> APPRO CO ATION: FIELD DIVISON) ( VESTING DIVISION ) ( 41 4 - /v -AL DO NOT APPROVE RECOMMENDATION: (Please state reasons) ACTION TAKEN BizEi t LErTING al 121.PAS e. tipp ithei at par DP* I reoMu rite t . 6 0011 eon) -.2 11 -LATE RETURNED TO DISTRICT RESOURCE MANAGER: . G-89 Raised: 11/1/99 SDNY_GM_00173418 EFTA_(() I95073 EFTA01305318 Ray Powell, M.S., D.V.M. COMMISSIONER June 03, 2014 TO: ATTN: THRU: FROM: State of stew Mexico Commissioner ofPub Tic Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87504-1148 Donald Martinez, Director Surface Resources Danny Sandoval, Management Analyst Bill Pearson, Assistant Director Field Operations Jatlon Lithgow,4trict Resource Manager mr, Santa Fe District Office SUBJECT: New Sublease: GR-2122, GR-2088 Cypress Inc. Date Received: May 20, 2014 SYNOPSIS COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org JUL-110, JUL-111 This report is to address the new sublease for GR-2122 and GR-2088. The sublease will encompass three sections totaling 1,243.83 acres. The subject trust land lies within the greater 11,000 Acre+ Zorro Ranch. At the time of the field visit an ocular estimate of the land was fair to good. There are no known reasons to not approve this sublease. LEGAL LAND DESCRIPTION A tract of land containing 1,243.83 acres, more or less, and allocated by forties as follows: N.M.P.M. Section Quarter/Quarter Township Range County 02 Lot 1, 2,3,4,7 12N 09E Santa Fe 02 SW/4NE/4, S2NW4, SW4 12N 09E Santa Fe 16 All 12N 09E Santa Fe 36 Lot 1,2,3,4 13N 09E Santa Fe SDNY_GM_00173419 EFTA_00 195074 EFTA01305319 JUL-110, JUL-111 June 03, 2014 LOCATION 1 )310 Old Santa Fe Trail Santa Fe, NM 87501 1. Head south on Old Santa Fe Trail toward E De Vargas St 0.5 ml 2. Continue onto Old Pecos Trail 1.6 mi 3. Turn left onto NM-466 S/Old Pecos Trail 1.4 mi 4. Take the Interstate 25 N ramp to Las Vegas/US 285 S/Clines Corners 0.3 mi 5. Merge onto 1-25 WUS-285 S 8. Take exit 290 for US-285 S toward Clines Corners 7. Keep right at the fork and merge onto US-285 S 8. Turn right onto NM-41 S 9. Turn right onto Zorro Ranch Rd 6.2 mi 02 ml 6.7 mi 16.8 ml 75 ft The Zorro Ranch Rd is the access point to the State Trust Land. There is no public access to the subject tracts. SITE/PHYSICAL DESCRIPTION This site is rural rangeland. The leased site occupies 1,243.83 acres. Adjoining lands are used for livestock grazing, and wildlife habitat. Vegetation consists of short and mid native grasses, forbs, and shrubs and pinyon-juniper mixed forest. HIGHEST AND BEST USE The highest and best use of this land is livestock grazing and wildlife habitat. No other trends exist at this time. ENVIRONMENTAL CONCERNS/CULTURAL SITES No environmental concerns where observed at this time. Please note that this area has a very high concentration of artifacts, including Pueblo Blanco. If any improvements are made a thorough archeological review would be necessary. JUL-110, JUL-111 2 June 03, SDNY_GM_DO 173420 EFTA_001 95075 EFTA01305320 JUL-110, JUL-111 June 03, 2014 REMARKS On May 27, 2014 I met with a Mr. Gordon, who represents Cypress Inc., and conducted a site visit of the subject tract. At the time of the inspection the range was in better than fair condition. It was very apparent that the greater Zorro ranch took great care in managing the landscape. The Zorro ranch has been actively treating choya on both trust and deeded lands. They blade and pile the choya during the dormant period in winter, and burn the piles when they dry. The new sub-lessees will be Steve Chavez and Ernest Ortiz. I recommend approval of the sublease. JUL-110, JUL-111 3 June 03, 2014 SDNY_GM_00173421 EFTA_00 195076 EFTA01305321 JUL-110, JUL-111 Appendix A: Photos Photo 1- Overlooking Pueblo Blanco. Section 16. JUL-110, JUL-111 4 June 03, 2014 2014 SDNY_GM_00173422 EFTA_00195077 EFTA01305322 JUL-110, JUL-111 June 03, 2014 Photo 2- Representation of the range. Section 02. JUL-110, JUL-111 5 June 03, 2014 SDNY_GM_00173423 EFTA_0() I95078 EFTA01305323 JUL-110, JUL-111 Photo 3: East of Pueblo Blanco. Section 16. JUL-110, JUL-111 6 June 03, 2014 June 03, 2 SDNY_GM_00173424 EFTA_00 I 95079 EFTA01305324 JUL-110, JUL-111 June 03, 2014 Photo 4: Some choya encroachment. The ranch has been actively conducting choya removal during the winter months. This pasture was slated for treatment next winter. Section 2. JUL-110, JUL-ill 7 June 03, 2014c4O4,6. co 0 SDNY_G _ 25 EFTA_00195080 EFTA01305325 JUL-110, JUL-111 Photo 5: Section 36. JUL-110, JUL-111 8 June 03, 2014 June 03, 2014 SDNY_GM_00173426 EFTA_00195081 EFTA01305326 JUL-110, JUL-111 Appendix B: Maps es% WWII L.S Wen UMW, 43 VI abet Skarn Akar MPG Yea— OraffirInAl LAMM June 03, 2014 lial- eV vs anis wit .4.4.4•rowaswerclit psi al Ian s.lar410.14Ste Same WOO Me= Lad alWOrerplialarse• tense nrgion•mas bane,* es tors VIs Cos lase& CS c Casks O. • CLOMIdala oad so MY Swale • Salami ▪ Ica/ MOM --d Min - DS IOW — Laud tads 3•41 esdinl Sorbs Ilisapiwil in•aftanalosses Snow, Wad. *Ira Webs. bps AWE.. OgpassiteS44 Lams as sm.. WA as is oar fat r lIreasSaAesis lteitma Fa late CASs!Cloof knew Slut Dan Lath fatale — le C3Srbsoel Lb lase Tmr. Chlablad••• Aphaisal Ls • — M.= b WIN II pol•1 eat 'put rata' wwarsokikaial Sections: 16 and 2 and 36. All the land around the sections is privately owned by the Zorro Ranch. JUL-110, JUL-111 9 EFTA_00 195082 EFTA01305327 Ray Powell, M.S., D.V.M. COMMISSIONER State of Mexico Commissioner ofPubfic Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 June 6, 2012 Cypress, Inc. 9100 Havensight, Port of Sale, Suite 15/16 St. Thomas, VI 00802 Re: State Agricultural Lease No. GR-2088 (Sublease No. GR-2088-0001) Dear Mr. Gordon: COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatends.org Please find enclosed a copy of your approved sublease applications. Your sublease commenced on October 1, 2011 and will expire on September 30, 2016. If you have any questions lease feel free to contact me at the address above or at Sincerely, Leroy A. Ulibarri Surface Resources Division NM State Land Office end. SLO SCAN ,WN.0Z NU SDNY_GM_00173428 EFTA_00 I 95083 EFTA01305328 NEW MEXICO STATE LAND OFFICE APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL OUT IN INK) I/We, Cypress. Inc , of (mailing address) 9100 Haven:sight Port of Sale, SuIle 15/16, St Thomas. VI 00802 being lessee(s) under Agriculture Lease No. GR 2088 , granted by the Commissioner of Public Lands, do hereby make application to sublease the lands described as follows: SUBDIVISION SEC. TWP. RANGE ACRES See attached Exhibit A use If additional space is needed to describe legal subdivision, please attach additional sheet using the above format Please give name of sublessee and mailing address: Joe M. Chavez and Steve Chavez PO Box 1054, Moriarty, NM 87035 It being understood that said permission to sublease does not in any way relieve me/us from obligation assumed under the lease stated above. Sublease tenn on the designated lands to commence October 1, 20 11 and to exp ire on September 30, 20 16 , (Sublease cannot be given beyond expiration date of lease.) Give reasons this land is being subleased: cattle grazing The number, type, class of livestock, and period of use, are as follows: NO. LIVESTOCK KIND CLASS PERIOD OF USE FROM TO 11 cattle cattle 10/1/2011 9/30/2018 S-01 (Revised 01/2001) SLO SCAN JUN (1 7 2012 LAND SUSPENSE 3 NtiSL0 001-00003 67 0 29-PER-12 11:43 50.00 SDNY_GM_00113429 rT, EFTA_00 I 95084 EFTA01305329 Please indicate the person and/or party that you wish our field representative to contact relative to this application to sublease: Name: Brice Gordon Address: 49 ZOff0 Ranch Rd, Stanley, NM 87056 Home Telephone No. Business Telephone No. Include 20% (twenty-percent) of the yearly rental with completed Sublease Application Form. The minimum fee for subleasing is $50.00 (fifty dollars). I, Cypress, Inc. , do solemnly swear (or affirm) that statements and answers to the questions in this application are true and correct to the best of my knowledge and belief. ANY FALSE STATEMENTS CONTAINED HEREIN WILL SUBJECT MY LEASE OR LEASES TO CANCELLATION. Signed:) Lessee Signed: risSCO4 SUBSCRIBED AND SWORN to before me this l b day of Ft two./ , 20 l ei by Darren Indyke as Vice President of Cypress, Inc. {name of Agricultural Lessee} MY COMMISSION EXPIRES: reingc hie 4. tip i ia_raY.4:. eiNonskYkuilier'fr'e , COMMISSIONER OF PUBLIC LANDS, do hereby tressee(s) listed above permission to sublease the above described land. Leff APPROVED THIS S day of S-01 (Revised 01/2001) SLO SCAN JUN 0 71011 , „ , OF F ,, ItT§IJC LANDS - • •AV.) ! '7 • " '' • .... •- 4, '' e ''''''' ' 1144,460.4%) SDNY_GM_00173430 ni r▪ ▪. - N EFTA_00 I95085 EFTA01305330 EXHIBIT A LEASE NO: GR2088 SUBDIVISION SEC-TWN-RNG. ACREAGE U PRICE S PER E UNIT CAR CAP LOT1 LOI2 LOT3 LOT4 TOTAL ACREAGE: RENEWAL LEASE 36 13N 09E 84.86 G - 84.86 TOTAL RENTAL: 11 $50.44 LEGEND: USE TYPE CODES C- CONSERVATION RESERVE PROGRAM I- IRRIGATED CROPLAND, Mot 2= DRYLAND FARMING (BID), 3- H- 1/2 SOUTH FOR TOWNSHIP, 105 LAND, D- DRYLAND FARMING, MOBILE HOME ON LAND, R= RSIP LAND, IRRIGATED CROPLAND(BID) CRP(BID) 1/2 EAST FOR RANGE * CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS SLO SCAN JUN .0 7 2012 h Li 42 lid' 11C? C- GRAZING, 2= GRAZING (BID), 5= RSIP(BID) , SDNY_GM_00173431 EFTA_00195086 EFTA01305331 Ray Powell, M.S., D.V.M. COMMISSIONER State of New Meaico Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87504-1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Pax (505) 827-5766 www.nmstatelands.org March 2, 2012 Cypress, Inc. 9100 Havensight, Port of Sale, Suite 15/16 St. Thomas, VI 00802 y Re: State Agricultural Lease No.'s GR-208841 & GR -2122-01 Dear Mr. Gordon: This office has received your applications to Sublease State Trust Lands. This office will send a District Resource Manager to inspect your leased lands on site and make a recommendation. Typically, it takes four to six weeks until we can approve or disapprove the application. If you have any questions lease feel free to contact me at the address above or at Sincerely, 1 24"7,- fa-• Leroy A. Ulibarri Surface Resources Division NM State Land Office encl: SLO SCAN JUN .07 ZU12 SDNY_GM_00173432 EFTA_00 I 95087 EFTA01305332 SUTIN THAYERvr BROWNE A PROFESSIONAL CORPORATION LAWYERS AWN 5 MOISE (M00-1B641 MICHAEL J. GOLDEN TIMOTHY J MURPHY TWO PARK SQUARE 8555 AMERICAS PARXVVAY, N.E. ALBUQUERQUE, NEW MEXICO en 10 POST OFFICE BOX 1945 LEWIS R SLJTIN (1[09-1992) DAVID G GORDON &ARITA NAIR ALBUQUERQUE, NEW MEXICO 87103 FRANKLIN :ONES (191S.195A) GM- GOTTLIEB TRACI N. CANAS 505-813-2500 RAYMOND W SCHOWERS (154819 ES) SUSAN M. PAPKA MICHELLE K OSTRYE FAX 5CP 868-8565 GRAHAM BROWNE (1655-2COR ROBERT O. HEYMAN CHARLES J. PIECHOTA TRACY L HOFMANN NY D. ROSENBUM 317 PASEO DE PERALTA SAIL CO/ fEN (Of Ccurisol) CHRISTOPHER A HOLLAND GBENOBA N I DM SANDRA E ROTRUCK FRANK C EALAZAR SANTA FE. NEW MEXICO 87501 BENJAMIN ALLMON HENRY A KELLY JUSTIN R. SAWYER POST OFFICE BOX 2187 TIMOTHY J. ATLER KERRY KIERNAN RONALD SEGEL SANTA FE, NEW MEXICO 87504 PAIR BAJIDACKE PETER S MOIST MORE Y/ SPIONS 505.988.5521 MINE P. BROWNE RACHEL S. KING MARIPOSA PADILLA SWAGE FAX 505-9924297 SUZANNE V.000 BRUCKNER TWILA B. LRAM TRAVIS R. STEELE RODIN.* C. CAVE DEREK V. LARSON NORMAN S THAYER VMW.SUTINFIRM.COM SUSAN G CHAPPELL STEVAN DOUGLAS LOONEY BENJAMIN E. THOMAS MARA MONTOYA CHAVEZ JEAN C. MOORE HANNAH S. TURNER EDUARDO A DUFFY LYNNE MOSTOLLER CIA:MINA S. NEST %IOWA C. EWNO February 29, 2012 BY HAND DELIVERY New Mexico State Land Office Attn: Mr. Leroy Ulibarri 310 Old Santa Fe Trail Santa Fe NM 87501 Application to Sublease New Mexico State Leases GR 2088 and GR 2122 Dear Mr. Ulibarri: We enclose the following for processing in the New Mexico State Land Office: 1. Application to Sublease State Trust Lands for Agricultural Lease Number GR 2088. 2. Application to Sublease State Trust Lands for Agricultural Lease Number GR 2122. 3. Check number 179859 in the amount of $50.00 for the sublease fee for Lease Number GR 2088. 4. Check number 179860 in the amount of $150.30 for the sublease fee for Lease Number GR 2122. SLO SCAN JUN 0 7 2012 SD NY_GM_00 173433 EFTA_00195088 EFTA01305333 SUTIN THAYERY BROWNE A PROFESSIONAL CORPORATION LAW= February 29, 2012 Page 2 Please accept the enclosed materials for processing_ If vou ave any questions regarding this correspondence please contact me at . Thank you. Very truly yours, SUTIN, THAYER & BROWNE A Professional Corporation DGG (Enclosures) 2309183.doe SLO SCAN JUN 0 7. ZO1Z By - avid G. Gordon Albuquerque Office SDNY_GM_00173434 EFTA_00 I 95089 EFTA01305334 NEW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT It TO FIELD DIVISION: 3-4-12 FIELD DIVISION CONTROL NO. 4 1-3\ ). REQUESTING DIVISION: Surface BY: Leroy A. Ulibarri LEASE NUMBER: CR-2088-01 TYPE OF REQUEST: Sublease New NAME OF LESSEE/APPLICANT: Cypress, Inc. ADDRESS 49 Zorro Ranch Rd. Stanley, NH 87066 DESIGNATED CONTACT: Brice Gordon PRONE: ADDRESS: LEGAL DESCRIPTION: SECTION RANGE COUNTY 36 13N 09E S . F. REMARKS: Please inspect and make recommendation See attached Memo for remarks. • IT RETURNED TO REQUESTING DIVISION/BUREAU: DISTRICT RESOURCE MANAGER RECOMMENDATION: g4 itzoitkr/ APPROVE RECOMME ATIO : FIELD DIVLSON) (REQUESTING DIVISION DO NOT APPROVE RECOMMENDATION: (Please state reasons) ACTION TAKEN-SY REQUESTING DIVISION: delebrom., Ji 4 Lex-4 fr e s r ofr, .4-; 4.1 471 / 1 1 efe had DATE RETURNED TO DISTRICT RESOURCE MANAGER: 649 Revised: 11/1/99 SLO SCAN JUN 0 7 2012 SDNY_GM_00173435 EFTA_00 195090 EFTA01305335 Ray Powell, M.S., D.V.M. COMMISSIONER May 21, 2012 State of New Mexico Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504.1148 TO: Donald Martinez, Manager Agricultural Bureau Santa Fe, New Mexico ATTN: THRU: FROM: Leroy Ulibarri, Management Analyst c im Norwick, Division Director Field Operations Andrew Price, District Resource Manager Albuquerque District Office SUBJECT: GR-2088-01 Cypress Inc. rice Gordon SYNOPSIS COMMISSIONER'S OFFICE Phone (505) 827-576O Fax (505) 827-5766 www.nmstatelands.org ADP-304 Application was submitted for permission to sublease state trust lands. Field research was completed on May 17, 2012 by reporting DRM. Lessee was on site at time of field site visit. SLO SCAR, JUN.01 21.112 SDNY_GM_00173436 EFTA_0019509 1 EFTA01305336 ADP-304 5/22/2012 LEGAL LAND DESCRIPTION Section of land, containing 84.86 acres, more or less, and allocated by forties as follows: N.M.P.M. Section Quarter/Quarter Township Range County 36 Lots 1,2,3,4 13 North 09 East Santa Fe LOCATION This tract is located northwest of Stanley, New Mexico. Access is via Interstate 40 to Moriarty, take SH 4lnorth past Stanley until a large gate on the western side reading Zorro Ranch, see attached map. SITE DESCRIPTION: This site occurs as rangeland. Slopes are level to gently sloping, usually less then 8%. This is a grassland site with scattered shrubs throughout the site. Forbs are conspicuous when in bloom but otherwise comprise a minor component. Other species include: sideoats grama, blue grama, sand dropseed, pine dropseed, mat muhly, cheatgrass, pingue, wooly Indianwheat, globemallow spp., prairie coneflower, oneseed juniper, pinyon pine, pale wolfberry, broom snakeweed, yucca spp., cholla cactus and antelope bitterbrush. IMPROVEMENTS Subleasing these lands will not negatively impact any existing ranch improvements. ADP-304 SLO SCAN 2 J.U.ti .0 1. 2011 5/22/2012 SONY_GM_00 173437 EFTA (0)195092 EFTA01305337 ADP-304 5/22/2012 CONFIDENTIAL This section of the report may contain privileged information including but not limited to attorney/client privileged communication, and/or attorney work product HIGHEST AND BEST USE: The highest and best use of this subject tract is agricultural activities, particularly, livestock grazing. No other Trends exist at this time. REMARKS: I recommend approval of this sublease on state trust land. A total of 84.86 acres will be subleased to Cypress Inc. Range conditions are good to excellent using an ocular estimate approach. Cattle are not currently present on trust lands. Sub lessee has requested to place cattle on subject lease. No other concerns are present. Access is easily obtained from ranch road. Surrounding land ownership is all private lands. No biological or cultural resources will be negatively impacted. No watersheds will be affected. Sublease Value: 20% (twenty-percent) of the yearly $50.44 rental Minimum Sublease Rate is $50.00 ADP-304 3 SLO SCAN dUN.0 J. 2011 5/22/2012 SDNYGM_00 173438 EFTA_00 195093 EFTA01305338 ADP-304 APPENDIX A: PHOTOGRAPHS 5/22/2012 4. • k j ir irlit „.1.4 4. • • -VC 1 j t " y. , - ty res. - 4C409--Vige 44!•.4"--*•"- • 444,4‘. .ir mi • 14"454 ; ;I SIC • Vitik e. H. • - _ • _., .1-1,:::1/44 74;:tar:ciri--;•,;;;;.:..7.:_tf..,\t •,:r-be-.--; ---, - --- • - =••• --::-.:;,- c.,rThiotyx. - A1 ADP-304 tn. -- ..::1,00••••-••••-•• lot IF 4 SW SCAN JUN.07 10U 5/22/2012 Section 36 SDNY_GM_00173439 EFTA_00 I95094 EFTA01305339 ADP-304 7:44, 97:41r7r. 5/22/2012 _ ..- .-4 • ... „.. . -..., rte• , _. i; , ..-...„,..::,:-.... . __--, -1-' •L --L. ...tit ,- ‘ C,,, :I: -•••• ... - - -. irt A ." !:17 .,,e- .• . . -... - " :".• 1. , _ ;L ~► 11-4- Jr .... -1. "•• _ a gr. .may 4 Ajl iiito Zs it. ' t, 4 : •-••• . _,4 2 -1? .....; t4 H4 . 77:aitte. , .. - - !Iv ." ... "ltt , • 7.....itribmilp: ADP-304 t ark Rangeland is productive and in good-excellent condition. 5 SLO SCAN JUN 0 7. NM 5/22/2012 SONY_GM_D0 173440 EFTA_00195095 EFTA01305340 ADP-304 APPENDIX B: MAPS est...nane..m.w4aden• t. *asap*. tar mina.= c.aofrAtamdwiefres...c••••, 11•••••••••• Onlenleariaaaand Trani lad Rahn • dial -4 Y. leis likarerralIs • lwassals AMA ••••• •••••••••• ADP-304 6 SLO SCAN JUN D 1.2012 5/22/2012 Cluogriplit ?an gra Orp. Sim a W. * ems, Sea 5/22/2012 SDNY_GM_00173441 EFTA_00195096 EFTA01305341 L6056 I 00-Vin attELLOO IND ANUS NEW MEXICO STATE LAND OFFICE Records Action Form for Grazing's Additional Scanning Requested by: <1. °LA Contact Number/Phone#: T --.Sa°q 4s- Date: 1 ,og1 Received by: Grazing- DIVISION AREA SCANNING DEPARTMENT LEASE it CDE# r PAGa POST SCAN MF ARC Notes: Form Type Scan Dail -4 6--- g- ozog 8 I 5 >c ic. 0.0"_-ireic...-± COni-KCJ _.LC 0 -6- i s ID 5 ex (r-cruevs1 i'-1 • 0 1 q -15 )1 )1 t emmeto. SLO SCAN CIAR 121012 r CODES and FORM TYPES: 9. Field Report 10. General Corresp. 11. Bid 1. Contract 2. Memo to file 3. Improvements 4. Assignement 5. Notes to file 6. Change of Address 7. Sublease 8. Notice EFTA01305342 NEW MEXICO STATE LAND OFFICE ASSIGNMENT OF AGRICULTURAL LEASE TO BE COMPLETTED BY LESSEE: (I,We), the undersigned lessee(s), hereby assign to Cypress Inc.. A Virgin Islands Corporation_ whose address is: 9100 Bavensight, Port of Sala, Suite 15/16, St. Thomas Brice Gar 1, (mailing address) vi UMW Telephone all (my/our) right, title and interest in State Agricultural Lease No. OR 2088 and alights to compensation for the improvements located on the leased lands, for which improvements (I/we) hereby either waive payment or acknowledge receipt of payment of full improvement value. (Uwe), understand and agree that any outstanding sublease of all or a portion of the leased lands is hereby terminated. The lands covered by said lease are described as follows: SUBDIVISION SEC. TWP. RGE. ACRES Attached 22448/0 Ae, Lesse Trust Lessee County of State of Lessee Ad Lessee Subscribed and sworn to before me this 16th day of December is --LI-- by Jeffrey Epstein. Trustee of the Zorro Trust uta March 1. 1993. es amended {print natne(s) of pasonts) aeknowle } My commission expires: TEL -MUG S-37(rnimed2A/0) RP I di SLO SCAN AR 121.012 C reniaserernosoe page 1 iis.rinif I. REU,En (' \iN?tPliegulnic .3tsp of Now York No. Qualified in ilocider.d couilikty, commission EMITS* FBI?, 17.; FEES 4 OSLO 001-00003 55 0 01-FED-12. 0 .115 50.00 SDNY_GM_00173443 EFTA_00195098 EFTA01305343 TO BE COMPLETED BY PURCHASERI (UWe), the undersigned lease purchaser(s), being eighteen years or more of age, do solemnly swear or affirm that (Uwe) have read State Agricultural Lease No. GR 2088 , accept its terms and conditions, and agree to assume all obligations to the State as the lessee(s) of record under said lease, which lease is on file with the Commissioner of Public Lands as a public record. (1/We) ( intend 410 not intend-) to cultivate a portion of the described lands. oche m) intend go,not inter) to easra--- ll or a portion of the described lands. oast") Transitive . Ducks= Cypress, Inc., a gin nds Corporation Ximzeiccet Trapsfey , Canary of rria 0 tr""t " State of xttuJusc Subscribed and sworn to before me nits 16th day of December 2011 by Jeffrey Epstein. -TOR. - w aOM - nF nyprpee,.IN4, virgin Tel nag Corporation (print name(s) of sanes(') acicaow ItlY I. eit!I.LER •C''-7 4( t)Qer My COMMISSIO9 expires: Nolen. Pe)rc, iot Now Y f; I Polak Ourel;:i , I COmmist,ion 2-.0i; 17. NT I THIS LEASE ASSIGNMENT SHALL NOT BE EFFECTIVE UNLESS APPROVED IN WRITING BYTES COMMISSIONER OF PUBLIC LANDS. Commissioner's Approval: APPROVED IN FAVOR OF THE ABOVE NAMED PURCHASERS) THIS 3 DAY OF la ne, , 20 it -9,9 Cie LANDS ;I; . . Z $.37 Medea 1100) pose I on . vaj • eN . C EUP 2122 ''' '''' ‘:'‘‘ LI SLO SCAN MAR 12 2012 SDNY_GM_00173444 EFTA_00 I 95099 EFTA01305344 EXHIBIT A LEASE NO: GR2088 SUBDIVISION SEC-TWN-RNG ACREAGE U PRICE S PER E UNIT CAR CAP LOT1 LOT2 LOT3 LOT4 36 13N 09E 84.86 G - TOTAL ACREAGE: 84.86 TOTAL RENTAL: LEGEND: USE TYPE CODES C- CONSERVATION RESERVE PROGRAM I- IRRIGATED CROPLAND, M- 2- DRYLAND FARMING (BID), 3- H- 1/2 SOUTH FOR TOWNSHIP, Ha 11 $50.44 LAND, Da DRYLAND FARMING, MOBILE HOME ON LAND, R- RSIP LAND, IRRIGATED CROPLAND(BID) 4- CEP(BID) 1/2 EAST FOR RANGE * CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS SL,O SCAN MAR 12 2012 Ga GRAZING, 1a GRAZING (BID), 5- RSIP(BID) r SDNY_GM_00173445 EFTA_00 I 95 I 00 EFTA01305345 Ray Powell, M.S., D.V.M. COMMISSIONER February 8, 2012 State of Mexico Commissioner ofPubric Lane 310 OLD SANTA PE IRAK. P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 Cypress Inc. 9100 Havensight Port of Sale, Suite 15/16 St. Thomas, Brice Gordon, VI 00802 Re: State Grazing Lease No. Dear Lessee(s): GR2088 & O112122 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.runstatelands.org Enclosed are approved copies of the Assignments for the above referenced leases for you to keep for your records. If you have any questions re arding your lease, please feel free to contact me at the address above or at Fernando Roybal Agricultural Lease Analyst Enclosure xc: Sutin, Thayer & Brown SLO SCAN 12 7017 SDNY_GM_00173446 EFTA_00 195 101 EFTA01305346 SUTIN THAYERY BROWNE A PROFESSIONAL CORPORATION LAWYERS IWO PARK SQUARE 6565 A.tAERI CAS PARKWAY, N.E. ALBUQUERQUE. NEW M ExICO 57110 EMU. S. MOM (1006-11014) NIGPAEL J. GOLDEN TAWNY I NURPNI POST OFFICE BOX 1945 tEW SUTIN (1[0141021 3APO G. GORDON SANTA ANN ALSLXWEROME.NDX 7467000 VMS MANIOSN JONES (l 1, s [ow) OM. 001TUGS TWACI N. OUVAS 5013483-7500 RANCHO N. SWARM (INSI NS) SUSAN IA RAMA IM:44ELLE N. =RYE FAX 5054894545 GRANAU PROMS GtoSzocT) ROBERT C. /IRWIN °MMES.!. PIEDIOTA TRACY L. HOFMANN JAY 0 ROSIDNILUN 317 PASEO QS PERALTA SAW. CO 331 Cassel CH RISTOPICR A HUANG GOINOSA K IDAH SAMOSA C. ROT RUCK MAW° SALAZAR SANTA FE, NEW MEXICO STEM Weal ALUSON HENRY A. KELLY AST I SAWYER POST OFFICE BOX 2157 MORN AMR KERRY RIEMAN RONALD SEGEL SANTA FE, NEW MIDOCO $7504 PAUL [PANACHE PETERS. MAST IMOREW a SINGS@ 5054596521 ANNE P. SHOWN! MOIEL S. RING AlIAP3SA PADILLA SNAGS FAX 505.912-5297 SuZANNE IVCCOORMCNER TWI(AS LARKN TRAM R. STEELE NOMA C. CAVE WSW 0. CHAPPELL DEREK V. LARSON STEVAN 'fl AS LOONEY NOAWN S. MAYER BetIPASN E. MOWS WWW,SUTINTIFUSCOM MAN C. MOORE MARK ICEROVA CHAVEZ IUNNAN S. TURNER EDUARDO A. MEV LYNNE LOSTOUER GAMMA S. WEST liCtICA C. EWING January 31, 2012 BY HAND DELIVERY Commissioner of Public Lands P.O. Box 1148 Santa Fe, New Mexico 87504 Assignment of Agricultural Leases To Whom It May Concern: We enclose duplicate originals of the following documents for filing in the New Mexico State Land Office: 1. Assignment of Agricultural Lease No. GR 2088. 2. Assignment of Agricultural Lease No. GR 2122. check In the amount of $100.00 to cover the recording fees. Please call me at if you have any questions. Thank you. Very truly yours, SUTIN, THAYER & BROWNE A Professional Corporation DGG Enclosures 2285929.doe avid G. Gordon Albuquerque Office LI C lilll SLO SCAN AtAft 12 2012 SONY_GM_00 173447 EFFA_00195102 EFTA01305347 NEW MEXICO STATE LAND OFFICE COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 114B, SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GR2088 THIS LEASE, DATED OCTOBER 01, 2011 , IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW MEXICO, HEREINAFTER CALLED "LESSOR° AND: ZORRO TRUST HEREINAFTER CALLED "LESSEE(S)", WHOSE ADDRESS OF RECORD IS: C/O 49 2ORRO RANCH RD. STANLEY,NM 87056 LESSOR AND LESSEE AGREE AND COVENANT AS FOLLOWS: 1. LEASE. FOR AND IN CONSIDERATION OF AND SUBJECT TO THE RENTALS AND THE TERMS, COVENANTS, CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE AND ALL OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSEE TAKES FROM LESSOR THE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. THIS LEASE IS GOVERNED BY 19.2.8 NMAC(RULE 8). 2. TERM. THE TERM OF THIS LEASE SHALL BEGIN ON OCTOBER 01, 2011 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 2016. 3. RENT. THE ANNUAL RENTAL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NMSA 1978 AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN THE STATE LAND OFFICE ON OR BEFORE OCTOBER 1. THE ANNUAL RENTAL FOR GRAZING LAND SHALL BE DETERMINED AS FOLLOWS : ANNUAL RENTAL Pm BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY SLO RULE 8 "RELATING TO AGRICULTURAL LEASES" (19 N.M.A.C. 3, 51.0 8.11). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OF THE EVI, FOR EACH SUCCESSIVE YEAR OF THE LEASE TERM, BE DECREASED OR INCREASED BY MORE THAN THIRTY-THREE AND ONE-THIRD PERCENT.IN THE CASE OF GRAZING RENTAL OFFERS ON OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID, LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL GRAZING RENTAL DUE IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, ASSOCIATED LAND AND CONSERVATION RESERVE PROGRAM LAND SHALL BE DETERMINED BY LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERM OF THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. 4. PERMITTED USE. 0 LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AND IN ORDER TO COMPLY WITH ALL APPLICABLE PROVISIONS OF LAW REGARDING THE L'a t2 !L? ,L.O SCAM tr.! t.l, all LAND SUSPENSE 3 NNSLO 001-00004 169 0 28-JUL-11 09:51 50.44 SDNY_GM_00173448 EFTA_00 I 95 I 03 EFTA01305348 CARE AND PROTECTION OF THE LEASED PREMISES. 5. LIEN. AS SECURITY FOR THE PAYMENT OF ANY RENT THAT IS OR MAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL BE PLACED ON THE LEASED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR. ALL IMPROVEMENTS PLACED ON THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED AS UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH THE APPLICABLE LAWS AND RULES. 7. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE THE LEASED PREMISES OR THE IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY LEASE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT BE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. 8. COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY BE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OF THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OF A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT THE CANCELLATION OF THE LEASE AND TERMINATION OF THE COLLATERAL ASSIGNMENT FOR THE NONPAYMENT OF RENTALS OR OTHER VIOLATIONS OF THE LEASE TERMS. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF THE TERMS, CONDITIONS, OR COVENANTS OF THIS LEASE OR THE NONPAYMENT BY LESSEE OF THE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THE COMMISSIONER BE CONSIDERED A DEFAULT AND SHALL CAUSE THE CANCELLATION OF THIS LEASE 30 DAYS AFTER LESSOR HAS SENT WRITTEN NOTICE OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OF COLLATERAL ASSIGNMENTS BY REGISTERED HAIL, ADDRESSED TO THE POST OFFICE ADDRESS OF RECORD, PROVIDED, HOWEVER, IF WITHIN THE THIRTY DAYS THE LESSEE OR HOLDERS OF ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN THE NOTICE, CANCELLATION SHALL NOT BE MADE. 10. RENEWAL. ANY LESSEE WHO DESIRES TO SECURE A NEW LEASE SHALL MAKE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OF THIS LEASE. THE RIGHT OF RENEWAL SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS PROVIDED FOR BY LAW AND RULE. 11. RESERVATIONS. A. LESSOR RESERVES THE RIGHT TO EXECUTE LEASES ON THE LAND GRANTED BY THIS LEASE FOR MINING PURPOSES AND FOR THE EXTRACTION OF OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND THE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS OF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORTI- SDNY_GM_00173449 EFTA_00 I 95 I 04 EFTA01305349 CULTURAL PRODUCTS AND TO GRANT SUCH OTHER RIGHTS-Or-WAY AND EASEMENTS AS PROVIDED BY LAW. B. LESSOR RESERVES THE RIGHT TO WITHDRAW PURSUANT TO RULE, UP TO 640 ACRES, BUT IN NO CASE MORE THAN HALF, OF THE LAND HELD BY THIS LEASE. 12. COMPLIANCE WITH LAWS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OF LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES,WHICH HAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL MATTERS AND THINGS AFFECTING THE LEASED PREMISES AND OPERATIONS THEREON. SUCH OTHER AGENCIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALL SAVE AND HOLD HARMLESS, INDEMNIFY AND DEFEND LESSOR AND THE STATE OF NEW MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND FROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OUT OF OR ALLEGED TO ARISE OUT OF OR INDIRECTLY CONNECTED WITH THE OPERATIONS OF LESSEE UNDER THIS LEASE, OFF OR ON THE LEASED PREMISES OR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NOT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. 15. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE OF ANY OF THE TERMS, CONDITIONS OR COVENANTS or THIS LEASE SHALL BE HELD TO BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID OR BINDING UNLESS THE SAME IS IN WRITING AND SIGNED BY LESSOR. 16. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OF INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE FROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 18. SUCCESSORS IN INTEREST. ALL TERMS, CONDITIONS AND COVENANTS IN THIS LEASE SHALL EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST OF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE LESSOR RESERVES THE RIGHT DURING THE TERM OF THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MARE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS MAY BE REQUIRED. 20. SURFACE DAMAGES NOTIFICATION. SDNY_GM_00173450 EFTA_00 I 95 I 05 EFTA01305350 PURSUANT TO 19.2.8.21 NMAC, IF LESSEE IS INVOLVED IN LITIGATION WITH ANY OTHER PERSON OR ENTITY FOR DAMAGES CONNECTED WITH THEIR LEASED TRUST LAND, LESSEE MUST NOTIFY THE COMMISSIONER AS SOON AS PRACTICABLE. THIS NOTICE REQUIREMENT DOES NOT APPLY TO LITIGATION INVOLVING ONLY THE LESSEE'S PERSONAL OR REAL PROPERTY. SDNY_GM_00113451 EFTA_00I95106 EFTA01305351 I/WE IF THA ARE THE SSEE(S) REFERENCED ON THE FACE PAGE OF THIS LEASE. SEE SIGNATURE ( LESSEE SIGNATURE STATE OF 'rat S ric\Cra ) COUNTY OF% trOICAtin:61 THEr5OREGO/ING IrSTRUInNT,SMCIENO DG BEF95 ME THIS 2g ilDAY OF By 5Dain (41[1)(N r)I ‘C/HP (NAME OF LESSEE ACKNOWLEDGED) MX COMMISSION EMS: \JMIUPCY Cnt SELLPHONE Va\k. 420 :ere/tree TELEPBCpir •e'') SSIONER OF ACKNOWLEDGMENTS NATURAL PERSON(S) STATE OF NEW MEXICO ) COUNTY OF ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF , 20 , ) PARTNERSHIP H I ; • • •• re; e' 0\ .1). : E ' -- (NAME OF PERSON ACKNOWLEDGED) PARTNER(S) ON BEHALF OF A PARTNERSHIP. MY COMMISSION EXPIRES: NOTARY PUBLIC STATE OF NEW MEXICO ) CORPORATION COUNTY OF ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF 20 , BY • OF (NAME OF OFFICER) (TITLE OF OFFICER) A CORPORATION, ON BEHALF (CORPORATION NAME) OF SAID CORPORATION. MY COMMISSION EXPIRES; NOTARY PUBLIC SDNY_GM_00113452 EFTA_00 I 95 I 07 EFTA01305352 NEW MEXICO STATE LAND OFFICE APPRAISEMENT OF GRAZING AND AGRICULTURAL LANDS COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING PO BOX 1148, SANTA FE, NEW MEXICO 87504-1148 LESSEE: SECTION 10 OF THE NEW MEXICO ENABLING ACT SPECIFICALLY REQUIRES THAT ALL STATE LAND TO BE LEASED BE APPRAISED AT ITS TRUE VALUE. STATE LAW, UNDER SECTION 19-7-1 NMSA 2978, FURTHER PRESCRIBES THAT SUCH APPRAISEMENT BE SECURED BY THE LESSEE WHEN ACQUIRING A LEASE AND THAT SUCH APPRAISEMENT BE COMPLETED BY A DISINTERESTED PERSON. THE INSTRUCTIONS FOR THE COMPLETION OF THIS FORM ARE SET OUT BELOW. APPRAISEMENT INSTRUCTIONS: THIS INFORMATION MUST BE COMPLETED BY A DISINTERESTED PERSON AND BASED ON THAT INDIVIDUAL'S INFORMATION AND BELIEF. THIS FORM CANNOT BE COMPLETED BY A LICENSED APPRAISER. (NMSA 1978, 61-30-16). YOU CANNOT PAY TO HAVE THIS FORM COMPLETED. (NMSA 1978, 60-30-3A). THE LAND MUST BE APPRAISED AS VACANT, I.E. WITHOUT IMPROVEMENTS, FOR BOTH SALE AND LEASE PURPOSES. IT MUST ALSO BE SIGNED BEFORE A NOTARY PUBLIC. I, Er1414 hL tNi . 'Most 1 , DO SOLEMNLY SWEAR (OR AFFIRM), UNDER THE PENALTIES OF PERJURY, THAT TER HAVING PERSONALLY INSPECTED THE TRACT(S) OF LAND CONTAINED IN LEASE NOCrfaul.0 Ira AND DESCRIBED IN EXHIBIT A OF SAID .LZASE, THAT MY OPINION OF THE APPRAISED CASH VALUE OF SAME (WITHOUT IMPROVEMENTS) IS $ 6ove). CO PER ACRE, IF SOLD, AND S iL • O O PER ACRE, FOR LEASE PURPOSES, AND CERTIFY THAT I AM NOT INTERESTED IN SAID LAND FOR LEASING OR SALE THEREOF. SIGNED 4- /.4...vic 1%A. k,s•_,4 ADDRESS 3 2 C `I40. 01 1 i.ta Loy Alutekd CITY/STATE .3;4 ,..414 Fe l NMI 84 771;1) i? SUBSCRIBED AND SWORN TO BEFORE ME THIS 2: 7 DAY OF 20 II MY COMMISSION EXPIRES: AML. 2(1 2C4S- r iPtc ---(iiifailliTATI 1 f l'i Amy Lula n i WiEnigilco %in.., STANO TARY TE My Commission rifAtati ii _.#41ZaLgii i TART' PUBLIC SDNY_GM_00173453 EFTA_00 I 95 I 08 EFTA01305353 EXHIBIT A LEASE NO: GR2088 SUBDIVISION SEC-TWN-RNG ACREAGE U S E LOT1 LOT2 L0T3 LOT4 RENEWAL LEASE PRICE PER UNIT CAR CAP 36 13N 09E 84.86 G - TOTAL ACREAGE: 84.86 TOTAL RENTAL: 11 $50.44 LEGEND: USE TYPE CODES Cm CONSERVATION RESERVE PROGRAM I= IRRIGATED CROPLAND, Me 2m DRYLAND FARMING (BID), 3= H= 1/2 SOUTH FOR TOWNSHIP, H= LAND, D= DRYLAND FARMING, MOBILE HOME ON LAND, R= RSIP LAND, IRRIGATED CROPLAND(BID) 4= CRP(BID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS G= GRAZING, 1= GRAZING (BID), 5= RSIP(BID) , SDNY_GM_00173454 EFTA_00 I 95 I 09 EFTA01305354 LEASE NO. GR2088 MISCELLANEOUS INSTRUMENT PAGE MISCELLANEOUS INSTRUMENT: FILE NO: 11737 LIMITED POWER OF ATTORNEY: BRICE GORDON APPOINTED POWER OF ATTORNEY FOR JEFFREY EPSTEIN, TRUSTEE OF ZORRO TRUST. SDNY_GM_00173455 EFTA_001951 10 EFTA01305355 IMPROVEMENT LISTING FOR EXISTING LESSEE'S RENEWAL APPLICATION The State Land Office Rule Relating to Agricultural Leases, 19 N.M.A.C. 8.9.2.2. requires you to submit a listing of your improvements located on the state leased land held under this lease with your application. LEASE NUMBER G- R 2 0 g g (Please deck one of the boxes) DO IMPROVEMENTS EXIST ON STATE LAND: YES IF YES PLEASE LIST BELOW. NO X (none) All improvements must be listed even if they are on record with our office. LOCATION Inclusion of unauthorized Improvements on this listing or any appraisal submitted to the Commissioner for any purpose shall not be interpreted as approval of those improvements by the Commissioner. (19 N.M.A.C. 8.9.11) This office will reject your renewal lease application if this form is not completed. The information provided above is true and correct to the best of my knowledge. Please sign and date. Si 1 ature is required whether improvements exist or not. e Signature Lessee Signature Date: 1 IC25- !Roil ;I . SDNY_GM_00173456 EFTA_001951 II EFTA01305356 NEW MEXICO•STATE LAND OFFICE COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 1148, SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GR2088 THIS LEASE, DATED OCTOBER 01, 2006 , IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW MEXICO, HEREINAFTER cALlep "LESSOR" AND: ZORRO TRUST HEREINAFTER CALLED "LESSEE(S)", WHOSE ADDRESS OF RECORD IS: C/O 49 ZORRO RANCH RD. STANLEY,NM 87056 LESSOR AND LESSEE AGREE AND COVENANT AS FOLLOWS: 1. LEASE. — cC- - - -J rn 0 FOR AND IN CONSIDERATION OF AND SUBJECT TO THE RENTALS AND THE TERMS, COVENANTS, CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE AND ALL OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSEE TAKES FROM LESSOR THE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN 3Y REFERENCE. 2. TERM. 3. THE TERM OF THIS LEASE SHALL BEGIN ON OCTOBER 01, 2006 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 20:1. THE ANNUAL RENTAL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NXSA 1978 AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN, THE STATE LAND OFFICE ON OR BEFORE OCTOBER :. THE ANNUAL RENTAL FOR GRAZING LAND SHALL BE DETERMINED AS FOLLOWS : ANNUAL RENTAL a BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY SLO RULE 8 "RELATING TO AGRICULTURAL LEASES" (19 N.M.A.C. 3, SLO 8.11). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OF THE EVI,FOR EACH SUCCESSIVE YEAR OF THE LEASE TERM,BE DECREASED OR INCREASED BY MORE THAN THIRTY-THREE AND ONE-THIRD PERCENT.IN THE CASE OF GRAZING RENTAL OFFERS CN OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID, LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL GRAZING RENTAL DUE IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, ASSOCIATED LAND AND CONSERVATION RESERVE PROGRAM. LAND SHALL BE. DETERMINED BY LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERM OF THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. 4. PERMITTED USE. LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AND IN ORDER TO COMPLY WITH ALL APPLICABLE PROVISIONS OF LAW REGARDING THE cc scan 1,9/51,w( SONY_GM_00173457 EFTA 00195112 EFTA01305357 CARE AND PROTECTION OP .AE LEASED PREMISES. S. LIEN. AS SECURITY FOR THE PAYMENT OF ANY RENT THAT. IS OR MAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL BE PLACED ON THE LEASED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR. -ALL IMPROVEMENTS PLACED ON THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED AS UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH TEE APPLICABLE LAWS AND RULES. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE TILE LEASED PREMISES OR THE. IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY LEASE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT BE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. R. COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY BE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OF THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OF A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT THE CANCELLATION OF THE LEASE AND TERMINATION OF 7NE COLLATERAL ASSIGNMENT FOR THE NONPAYMENT OF RENTALS OR OTHER VIOLATIONS OF THE LEASE TERMS. 9. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF TIM TERMS, CONDITIONS, OR COVENANTS OF THIS LEASE . OR THE NONPAYMENT BY LESSEE OF TILE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THE COMMISSIONER BE CONSIDERED A DEFAULT AND SHALL CAUSE THE. CANCELLATION OF THIS LEASE 30 DAYS AFTER LESSOR HAS SENT WRITTEN NOTICE OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OF COLLATERAL ASSIGNMENTS BY REGISTERED MAIL, ADDRESSED TO THE POST OFFICE ADDRESS OF RECORD, PROVIDED, HOWEVER, IF WITHIN THE THIRTY DAYS THE LESSEE. OR HOLDERS OF ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN THE NOTICE, CANCELLATION SHALL NOT BE MADE. 10. RENEWAL. ANY LESSEE WHO DESIRES TO SECURE A NEW LEASE SHALL MAKE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OF THIS LEASE. THE RIGHT OF RENEWAL SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS PROVIDED FOR BY LAW AND RULE. 11. RESERVATIONS. A. LESSOR RESERVES 11IE RIGHT TO EXECUTE LEASES ON THE LAND GRANTED BY THIS LEASE FOR MINING PURPOSES AND FOR THE EXTRACTION OF OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND TILE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS OF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORTI SDNY_GM_00 173458 EF-Dk_00I95113 EFTA01305358 CULTURAL PRODUCTS TO GRANT SUCH OTHER RIGHTS-OF-WA. -ND EASEMENTS AS PROVIDED BY LAW. B. LESSOR RESERVES THE RIGHT TO WITHDRAW PURSUANT TO RULE, UP TO 640 ACRES, BUT IN NO CASE MORE THAN HALF, OF THE LAND HELD BY THIS LEASE. 12. COMPLIANCE WITH LAWS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OF LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES WHICH RAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL MATTERS AND THINGS AFFECTING THE LEASED PREMISES -AND OPERATIONS THEREON. SUCH OTHER -AGENCIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALL SAVE AND HOLD HARMLESS, INDEMNIFY AND DEFEND LESSOR AND THE STATE OF NEW MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND FROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OUT OF OR ALLEGED TO ARISE OUT OF OR INDIRECTLY CONNECTED WPTH THE OPERATICNS OF LESSEE UNDER THIS LEASE, OFF OR ON THE LEASED PREMISES OR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NOT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. 15. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE OF ANY OF THE TERMS, CONDITIONS OR COVENANTS OF THIS LEASE SHALL BE HELD TO BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID OR BINDING UNLESS THE SAME IS IN WRITING AND SIGNED BY LESSOR. 16. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OF INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE FROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 18. SUCCESSORS IN INTEREST. ALL TERMS, CONDITIONS AND COVENANTS IN THIS LEASE SHALL EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST OF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE LESSOR RESERVES THE RIGHT DURING THE TERM OF THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MAKE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS MAY BE REQUIRED. SD NY_GM_00 173459 EFTA 00195114 EFTA01305359 ILWE CERTIFY THAT .eL.ESSEE REFERENCED ON THE FACE .AGE OF THIS LEASE. LESSEE eik Erman 17Lelee the 21..t-CA.J TELEPHONE LESSOR- .ISSIONER OF BLIC LAN ACKNOWLEDGMENTS NATURAL PERSON(S) STATE OP NEW MEXICO COUNTY OP THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF , 20 HY (NAME OP PERSON ACKNOWLEDGED) MY COMMISSION EXPIRES: PARTNERSHIP STATE OF NEW MEXICO COUNTY OP THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS • BY (NAME OF PERSON ACKNOWLEDGED) PARTNER(S) ON BEHALF OF , A PARTNERSHIP. NOTARY PUBLIC -r DAY OF , 20 MY COMMISSION EXPIRES: NOTARY PUBLIC STATE OP NEW Ito --ef*PeRATTON- lit-AS ) ) COUNTY OF 14aPtIV. ) THE FOREGOING INSTRUMENT' WAS ACKNOWLEDGED BEFORE ME THIS 111 DAY OF „2011b_ q1/40,0 CiD3/466n "-CLAP AME OF OFFICER) (TITLE OF OFFICER) a atION, ON BEHALF 4 1.0-•••" BY a)lio (eembeftheteo NAME) OF SAID PHR:PSHNPISN. <ha MY COMMISSION EXPIRES: HA1tRY I. 34LL.,..ri Notary Public, State of New York No. O18E4853924 Qualified in Rockland County re, Commission Expires Feb. 17, 20.L. OF SDNY_GM_00173460 EF-EA_00I9SII5 EFTA01305360 2/I2/'06 WED 21:39 )0321617 NEW MEXICO STATE LAND OFFICE 6/ 6 APPRAIsemENT OF GRAZING AND AGRICULTURAL LANDS COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFPICE BUILDING PO BOX 1148, SANTA FE, NEW MEXICO 87504-1140 LESSEE: SECTION 10 OF THE NEW MEXICO ENABLING ACT SPECIFICALLY REQUIRES THAT ALL STATE LAND TO BE LEASED BE APPRAISED AT ITS TRUE VALUE. STATE LAN. UNDER SECTION 19-7-1 NMSA 1970, FURTHER PRESCRIBES THAT SUCH APPRAISEMENT BE SECURED BY THE LESSEE WHEN ACQUIRING A LEASE AND THAT SUCH APPRAISEMENT BE COMPLETED DY A DISINTERESTED PERSON. THE INSTRUCTIONS FOR THE COMPLETION OF THIS FORM ARE SET OUT BELOW. APPPAI£EMENP L r - . 7 r rs, ) INSTRUCTIONS, THIS INFORMATION MUST BE COMPLETED BY A DISINTERESTED PERSON ARb BASED ON THAT INDIVIDUAL'S INFORMATION AND BELIEF. THIS FORM CANNOT BE COMPLETED BY A LICENSED APPRAISER. (NMSA 1978. 61-30-16). YOU CANNOT PAY TO HAVE THIS FORM COMPLETED. (N)45A 197E, 60-30-3A). THE LAND MUST BE APPRAISED AS VACANT, I.E. WITHOUT IMPROVEMENTS, FOR BOTH SALE AND LEASE PURPOSES. IT MUST ALSO BE SIGNED BEFORE A NOTARY PUBLIC. C) I, - r,u, 2 . DO SOLEMNLY SWEAR (OR AFFIRM), UNDER THE PENAL B.S OF PER Y ER HAVING PERSONALLY INSPECTED THE TRACT(S) OF LAND CONTAINED IN LEASE NO. l AND DESCRIBED IN EXHIBIT A OP SAID LEASEf THAT MY OPINION OF THE APPRA SED CASH OF SAME (WITHOUT IMPROVEMENTS) IS S lr A G PER -, ACRE, IF SOLD. AND $ - PER ACRE, FOR LEASE PURPOSES, AND CERTIFY THAT I AM NOT INTERESTED IN SAID FOR LEASI.NG OR SALE THEREOF. SIGNED "") ADDRESS CITY/STATE SUBSCRIBED AND SWORN TO BEFORE ME THIS Ifi DAY OF MY COMMISSION EXPIRES, OFFIVALSEAL PeggyNambedy NOTARY PSC STATE OF kti Masai atpreLstabLin 20 Otel • C SDNY_GM_00173461 EFTA_00195116 EFTA01305361 EXHIBIT A LEASE NO: GR2088 SUBDIVISION SEC-TNN-RNG ACREAGE U S E PRICE PER UNIT CARRY CAP • LOT1 LOT2 LOT3 LOT4 36 13N 09E 84.86G - TOTAL ACREAGE: 84.86 TOTAL RENTAL: RENEWAL LEASE 11 $73.01 LEGEND: USE TYPE CODES C. CONSERVATION RESERVE PROGRAM I. IRRIGATED CROPLAND, M. 2= DRYLAND FARMING (BID). 3= H. 1/2 SOUTH FOR TOWNSHIP, H. LAND, D. DRYLAND FARMING, MOBILE HOME ON LAND, R= RSIP LAND, IRRIGATED CROPLAND(BID) 4= CRP(BID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS G• GRAZING, 1= GRAZING (BID), 5= RSIP(BID) SONY_GMJ:4173462 EFI;k_00195II7 EFTA01305362 IMPROVEMENT LISTING FOR EXISTING LESSEE'S RENEWAL APPLICATION The State Land Office Rule Relating to Agricultural Leases, 19 N.M.A.C. 8.9.2.2. requires you to submit a listing of your improvements located on the state leased land held under this lease with your application. LEASE NUMBER CIR 10S8 (Please cheek one of the boxes) DO IMPROVEMENTS EXIST ON STATE LAND: YES IF YES PLEASE LIST BELOW. NO F-71- (none) All improvements must be listed even if they are on record with our office. IMPROVEMENT APPROXIMATE MONTH AND YEAR EUILT LOCATION SECTION TOWNSHIP RANCE Ni r- :2 rn rn c 477:i ry Inclusion of unauthorized improvements on this listing or any appraisal submitted to the Commissioner for any purpose shall not be interpreted as approval of those improvements by the Commissioner. (19 N.M.A.C. 8.9.11) This office will reject your renewal lease application if this form is not completed. The information provided above sign antffate.$i na correct to the best of my knowledge. Please quired whether improvements exist or not. Lessee Signature Date: C, 3t) — O(7:7 Lessee Signature SDNY_GM_00173463 EFTA_00 I 95 I IS EFTA01305363 Zorro Trust 49 Zorro Ranch Road Stanley, NM 87056 Ph: 505 938 2920 Fax: 505 938 2924 E mail State of New Mexico Commissioner of Public Lands Surface Resources Division P.O Box 1148 Santa Fe NM 87504-1148 2011 AUG 29 fill 7 50 Aug 23m, 2011 Reference: Sublease Renewal 2011-2012 — Agricultural Lease No. GR-2122-01 Dear Mr. Ulibani, Please be advised as of the above date Zorro Trust will not be renewing the sublease for GR-2122-01. If you require anv further informationy yeumay contact me at the above E Mail address or directly at Sincere' L. Gordon Stop. w sM /has. o rot 0 0-• Gan e-af 5.5 (4.4.s-c SLO SCAN MAE 12 2011 CA-Act / 14 54 9 fe, rc a- request, th4 r (LA r't co4.4114 G 70 at —O . - ( JLT I A ZI)11 Cm" eefiet (O(//ii SDNY_GM_00173464 EFTA_001951 19 EFTA01305364 PATRICK H. LYONS COMMISSIONER State of Mexico Commissioner of Public Lands Zorro Trust 49 Zorro Ranch Rd. Stanley. Nm 87056 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 875044148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org September 18, 2006 Re: State Agricultural Leases No. GR-2088 & GR-2122 (Sublease No. GR-2088-000I) & (Sublease No. GR-2122-OOO1) Dear Mr. Epstein: Please find enclosed a copy of your approved sublease application. Your sublease will commence on October 1, 2006 and will expire on September 30, 2011. If you have an uestions please feel free to contact me at the address above or at . Sincerely. Leroy A. A. Ulibarri Surface Resources Division NM State Land Office end. Scale Land Office Beneficiaries - Cure Twiky Hospital • °Umiak Paal & &Sam • COMM& Scbools • boas NM UMwriiiy • Rio Grade leaarennorn • Millers' Hospital of NM •NM Boys Sara, • NM Webbed. Haim*, • NM lattios Of Mittitry & rechwalogy • New Mmes Mlroary Imuuee•NM Schaal foe the Oat • NM Saes fee the Visually Hatlirapped • NM Sae Hospital • New Mateo Sun Ultima). • Northern NM Connally Colley • Penitentiary of New Mesita • Pak fOriltany &Capital • Sate Park Commission • thiversity of New Mesita • OHM Bain LsS • Vag &steaks • Western New Scala University GDNY_GM_00173465 • EFTA_00 I 95 I 20 EFTA01305365 ZORRO RANCH 49 ZORRO RANCH ROAD STANLEY, NM 87056 TELEPHONE: 505 832 2675 FAX: 505 832 2676 E August 24, 2006 Commissioner of Public Lands State Land Office P.O Box 1148 Santa Fe NM 87504-1148 Reference: Sublease Renewal — Agricultural Lease No. GR-2088 (2006-2007) Dear Mr. Leroy A. Ulibarri, Reference your letter dated August 15, 2006, concerning sublease renewal for Agricultural Lease No. GR-2088, enclosed you will find 2 copies which have been notarized and signed. The attached rental for 2006-2007 of $50.00. If there are in questions or concerns please do not hesitate to call Sincerely ./ ,{2,,d, A Ranch Manager SDNY_GM_00173466 EFTA 00195121 EFTA01305366 P43) DATE TO FIELD DIVISION. NZW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT 30 e FIELD DIVISION CONTROL NO. Veer' 120 RLJZSTING DIVISION: 544 144-4.-e_ BY: /..e."--eor . /zit oioe.c I-- a° TYPE OF REQUEST: C2 bc--.5-( teen-leda.4.5 NAME OF LESSEE/AP LICANT: ,-/ LEASE NUMBER: 0 ADDRESS: y e, 7 47 AOC 0 4 4-4 LA i feCt • . , 7 hn irk A Try i Allilins DESIGNATED CONTACT: .<.; cA• . C Ott dr, o PHONE: ADDRESS: LEGAL DESCRIPTION: SECTION me RANGE COUNTY 5'c . o • -74,4 - -1 F:yk;LI -" 4 2' -5 ers i 4 g.,. REMARKS: "I leA 5:4 r &5 c-F a --r1 J /rtd.A.4 ,C ece.nn,enJ. . edit a F /Le ks DA 'ETURNED TO REQUESTING DIVISION/BUREAU: HSTKICT RESOURCE MANAGER COMMENDATION: 0606iteft Qua. f to . & 0p0 PPROVE RECOMMENDATION: FIELD DIVLSON1 (RMUESTANG DIVISION 1401° ) (COIN 9 -15-.O6 0 NOT APPROVE RECOMMENDATION: (Pleasestate reasons) CTION TAKENNV EIMILSTINO Afrog AfAra • o Ve /3 fijk TURNED TO DISTRICT RESOURCE MANAGER: 89 Revised: 11/1,99 SDNY_GM:00173467 EFTA_00195122 EFTA01305367 PATRICK H. LYONS COMMISSIONER AUGUST 31, 2006 TO: State of Mexico Commissioner of Public Lath 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org GILBERT BORREGO, SURFACE RESOURCES DIVISION ATTENTION: LEROY ULD3ARRI cm THROUGH: BRIAN HENINGTON, FIELD OPERATIONS FROM: MARCUS J. GARCIA, SANTA FE DIS SUBJECT: GR-2088 AND OR-2122. ZORRO TRUST. APPLICATION TO SUBLEASE. MJG-1201 SYNOPSIS The recommendation is to approve this application to sublease. The ocularly estimated range condition varies from fair to good condition. See the IMPROVEMENTS for additional information relative to unauthorized improvements. GR-2088: GR-2122: LEGAL DESCRIPTION Lot 1, 2, 3 and 4 within Section 36, Township 13 North, Range 9 East, N.M.P.M., Santa Fe, County, New Mexico; containing 84.86 acres, more-or-less. Lot 1, 2, 3, 4 and 7; SW'ANE1A, S1/2NW'A, SW% of Section 2, Township 12 North, Range 9 East, N.M.P.M., Santa Fe, County, New Mexico; containing 518.97 acres, more-or-less. Section 16, Township 12 North, Range 9 East, N.M.P.M., Santa Fe, County, New Mexico; containing 640 acres, more-or-less. LOCATION These state trust lands are located in south central Santa Fe County between Galisteo and Stanley, New Mexico. Section 16 is landlocked but Section 36 can be accessed directly from The Anaya Ranch Road (County Road 38-B). Section 2 abuts Section 36 and can conceivably be reached by walking across Section 36. The condition of the grazable sites was ocularly estimated to be in fair to good condition. State Land arm Benelldiria - Conk Mosley Hospital • Charitable Real & Refers • Comm Scixols • Eastern NM University • Rio Grande Improitment • Mien Kemal of NM •NM Boys School • NM Hisblards Uobersity • NM lutist of Midas & Tata:elegy • New Mexico Military lastirale•NM Seheol for the Deaf • NM School far the Visoolly Handicapped • NM Slit Hospital • New 041431:0 Saran Uli•Mill • Hookas NM Consamity Coles/ • Peniceralary of New Mexico • Palk Builatis •1 capital . Sue Pt Commission • Uniersity of New Mexico • UNM Seine leds • Wales Reservoir ...Western New Monk° Unirmity SDNY_GM_00173468 EFTA_00 I 95 I 23 EFTA01305368 AUGUST 31, 2006 -2- MJG-1201 Generally, the condition of section 16 is fair and Sections 2 and 36 are in good condition. The ranch has not been extensively graved since being sold to the current owner approximately 10 years ago. According to the ranch manager, the surface ownership status consists of 7,575 deeded and 1,582 acres of leased, mainly state trust land. Currently, there are 50 bead of livestock grazing the ranch that belong to an employee of the ranch, as listed in the application. HIGHEST AND BEST USE Highest, best and current use is estimated to be livestock grazing. Historic rock art panels associated with the Creston geologic feature on Section 2 attract people interested in historic graffiti. IMPROVEMENTS On the day of the field evaluation, I documented a new water distribution pipeline within the S'ASY2 of Section 16 and cholla removal in the same section. There is another water distribution pipeline also on Section 16 but this should be covered under a water easement since it is the water supply for the lessees' residence. These items have already been addressed in special assignment reports. REMARKS I met with the ranch manager, Brice Gordon, for this field evaluation. The lessee has essentially given over care and control of the livestock on the subject property, so a sublease is needed. Based on my field evaluation and the fair to good range conditions of the ranch, it is recommended to approve the sublease application. MJG Attachments SDNY_GM_00173469 EFTA 00195124 EFTA01305369 DIGITAL IMAGES - MJG-1201 Looking west from the SW1/4SE% of Section 16. This image shows the existing dirt tank. Looking east from the SWASE1/4 of Section 16. Range condition is estimated to be fair. SONY_GM_00173470 EFTA 00195125 EFTA01305370 DIGITAL IMAGES - MI6-1201 Looking north from the accfrsc mad in the SWASE% of Section 16. fl Looking south from the access road in the SVPASE1/4 of Section 16. SDNY_GM_00173471 EFTA 00195126 EFTA01305371 DIGITAL IMAGES - MJG-1201 Looking northwest from the SVASE% of Section 16. Range condition is estimated to be fair. It • -cre•-;?.. r • -1." • _ •••• /gra • " • • - - • ...or. Aar. • 'as Ito' lap 4...stkwo, ...:.;7J ar. - ,4O,7, • . A. 7 44 ' ) el • • . tit , .11 • c . — ' • • • • •• a rat Y• Looking northeast from the SWV,SW1/4 of Section 16. Range condition is estimated to be fair. SDNY_GM_00173472 EFTA 00195127 EFTA01305372 DIGITAL IMAGES - MJG-1201 Looking west from the access mad in the SW1/4SEY4 of Section 2. Range condition is estimated to be good. Looking southwest from the access road in the SVASEIA of Section 2 to the north side of the Creston geologic feature. Range condition is estimated to be good. SDNY_GM_00173473 EFTA_00 I 95 I 28 EFTA01305373 DIGITAL IMAGES - MJG-1201 Looking west from the access road in Lot I of Section 2. Range condition is estimated to be good. 4 • yN 4 tt. !444j -- • - - • • . _ r iSn •:". • . •••-t ttsabt.:;.-; "•• P b , '46* - • - _ -ca' c ; 99..: 474,4 _ '" 4.5 i7. 547:1."4•24"..nn-S lnt Looking south from the access road in Lot 1 of Section 2. Range condition is estimated to be good. Note the north side of the Creston geologic feature. •" 9 • • .•04.• • • • . • It) • r;•• SDNY_GM_00173474 EFTA_00195129 EFTA01305374 DIGITAL IMAGES - MJG-1201 Looking north from the access road in Lot 4 of Section 36. Range condition is estimated to be good. n talisman Looking south from the access road in Lot 1 of Section 36. Range condition is estimated to be good. . arcer.•%-osiowsirsaawasaii "7"------- • n _ lit , • • • ik • sk •-• • Z.'"` • . 44 "±:f 6t.4:_tgaar....4.444 75-tp.... %S.:\ ''• • 14K.,417.„-c* , • • •t. •••4, 4•••••V SDNY_GM_00173475 EFTA_00195B0 EFTA01305375 NEW MEXICO STATE LAM) OFFICE APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL OUT IN INK) I/We, ZOliO VUS , of (mailing address) hO 2rwio ath R eccd)Stritaling 8-05k , being lessee(s) under Agriculture Lease No. erg- aan , granted'by the 'ssioner of ublic Lands, do hereby make application to sublease the lands described as follows: SUBDIVISION. SEC. TWP. RAW i..\C\t [XVI brI IA If additional space is needed to describe legal subdivision, please attach additional sheet using the above format Please give name of sublessee and mailing address: L. euino d:44''F4) l~g2ottoQoronLod,3briey, NY1 %it% It being understood that said permission to sublease does not in any way relieve me/us from obligation assumed under the lease stated above. Sublease term on the designated lands to commence October 1, 20Z, and to expire on September 30, (Sublease cannot be given beyond expiration date of lease.) o e-tt (<4.0--n cCed/lacion D--06 9ive reasons this land is being subleased: PD.( 9(0211 9cazin9 IteenP_. The number, type, class of livestock, and period of use, are as follows: NO. LIVESTOCK KIND PERIOD OF USE CLASS FROM TO 35 la S-01 (Revised 01/2001) AeLtucieics 1 .0 ems 5`49 US 'WM '3..4 3INVS 1130 (1!4V1 31.VIS 2. WY 87 911d 9 CI3A13038 FEES 4 10491.0 001-00003 48 0 28-AUG-06 10235 50.00 SDNY_GM_00173476 EFTA_00195131 EFTA01305376 7 NO: GR2OSE SUBDIVISION SEC-TNN-RNS ASRBAGE U PRICE CARRY 9 PSR CEP S UNIT 36 ',136 098 21.14 0 11 GT2 • N J 36 33R GEE 21.19 G 11 023 WM. 36 136 098 21.24 G 11 WT4 'Off\ 36 136 0911 21.29 G 11 TOTAL AOREA02* I '1 4 SURVAL ,LEASE 3010: 088 TIPS CODES • CoNSIDDYNTIOA RESERVE PROGRAX L IINLIGATED CROPLAND. Ns t ilNILAND BARKØ (DID). 3s 1 1/2 SOUTH FOR 2OWNSU/P, E- 64.86 TOTZLwrtima.: LAND. Ds DRILAND PAKNING. MULE BONS ON LaND, Rs R9IP LAND, IRRIGATED CROPLAND(RID) 4s CRP(11I0) 1/2 EAST POR RUSE CRPSIING CAPACITY RATES 016780 ARE BASED ai 640 AGM PARCELS $63.71 Gs GRAZING. 1s GRAMS: (BID). SS RSIP(6:0) SONY 6M_,00173477 EFTA 0119513 EFTA01305377 31Y3S I •••• A Irtivn a. a. i I .\-4‘\ --,,,r--4-- ... \ .., 4.,.. .... ...4 ...,t. : • a.- 1-, / I I ' • 1.. .t- 1 /- . 2 \ 4...,.., , ',. . 1-1 ', n .,,,,.._ -1‘.."1., • .. ,.. ..+,:. .. . -.Ot t ': .".... i yr' 1.-•/. I - " ‘v . 1 e......".‘ - 4 • I l ;:al, ----", - k •-._ r• .". ... N.-.N,, i c i / II I _ ‘ • : • .% )1 b. rratrrrrons gag a I orr2orar' 0 s:uvxn M soy, tl p94,03 4.1*-OS Ir).20MS 441 W P•311•. QW PIN 'MN* 'PW<NYI e MI Prat . rib •••••• NoN•loNN0 mat No/ anA1C54., 41400400,1 2.9 .00.901 At.ir •P16 • ; / / Net SO NY_GM_00173478 EFTA 001951;3 EFTA01305378 VELIANUEVA, NEW MEXICO apt toner se IMO* Illif RANCH UNIT BOUNDARY TOW T IN III :as .0r CI N+. c EFTA_00195134 EFTA01305379 PATRICK H. LYONS COMMISSIONER State of gew Mexico Commissioner ofPubfic Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87SO4-I tdR May 8, 2006 Zorro Trust C/O Jeffery E. Epstein 457 Madison Ave. New York, NY 10022 Re: State Agricultural Lease No. GR-2088 (Sublease No. GR-2088-0001) Dear Lessee(s): COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827.5766 www.nmstatelands.org P]ease find enclosed a copy of your approved sublease application. Your sublease commenced on January 1, 2005 and will expire on September 30, 2006. lf you have an uestions please feel free to contact me at the address above or at Sincerely, ?‘ 14 ) 6/7- Lervy A. Ulibani Surface Resources Division NM State Land Office encl. aale Land Office Berbeciories. Cum/ links Hamal • CbrisaNe Prag k Reform • Cotnencet Sao* • LiPtla NM Uoiversity • Rio Grat* briatoverent • Hiwi Hospital «NM *NM Boys &bod • Nm 'Inhbitt minn». »A poset of mmin ,p Teessoff • New Mako Mlllwy lostinne• NM SeMol fix 4N Oref • NM School rot the Vivaity Hatoicapped • NM Statt Hospital • New Mnko Uwe Usthersity • Nonhm NM Corameity CoUtge • Peeisemiary of New Hake • Per. Bodens si Cegisal • SION Patt Comensaken • UM% feil of New Melke • UNM Salwe LM& • wagt Romoits • Waten New Hake Uointilly SDNY GM 00175080 _ _ EFTA_001951135 EFTA01305380 PATRICK H. LYONS COMMISSIONER State op&w Mexico Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87304-1 148 May 1, 2006 Zorro Trust CIO Jeffery E. Epstein 457 Madison Ave New York, NY 10022 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org Re: State Agnieultural Leases No. GO-2088 & GO-2122 Dear Lessee(s): Enclosed please find 2 Applications to Validate Improvements. While on other field evaluations on the Zorro Trust Ranch the District Resource Manager noticed several unauthorized improvements. If you would like to have these unauthorized improvements added to your lease, please lill out the enclosed applications. Please be aware that the applications for approval of unauthorized improvements does not necessarily guarantee that the improvements will be authorized or that the value allowed vill be equal to 100% of the value estimated by the State Land Office. Our District Resource Manager will investigate the situation on site and make a recommendation. Please feel free to contact me at the address above or at if you have any questions or need further assistance. Sincerely, • Leroy A. Ulibarri Surface Resources Division NM State Land Office sut. Land Office Iknefaiarin Curie Tlqky NosOhol • Chariot« Pesai & Reka • Cornac &Mois • Un NM UtiverOly • Rio Garde ltrootwelnon • Minai Nosiital d NM •NM Boys School • NM Medina Usiousky • NM Win« of Minier & Tectoolosy • Nove Moite Mikary letthoo•Nm &hm kr oie Drof • NM SØ Cor Ja otoety Hondkopped • NM Suot Hosphal • Nor Mczko Soie Llsivendy • Northers NM Commmily Conte • Petilemiars of New Mexico • PobtWeSemoi 0.003481 Store Park Conoistio, • Unircnity dNt«Mtxko • 'MM Seine Lut • Wou Resenolo • linon No. Mexico Unlonity EFTA_00I95136 EFTA01305381 ZORRO RANCH 49 Zorro Ranch Road Stanley, NM 87056 TELEPHONE: E MAIL January 24, 2006 New Mexico State Land Office PO Box 1148 Santa Fe NM 87504-1148 Reference: GR — 2088 & GR - 2122 Attention: Leroy Dear Leroy, As per our conversation 01/20/06 reference submitting Application to Sublease State Trust Lands, attached you will find two (2) applications for GR 2088 & 2122, completed as per the changes required. Attached a check for S75.72 the balance required to complete this process. Thank you for you guidance in this matter and hope that this completes all the changes and additions that you require. If you do have any questions or concerns please call. Sincerely, Ranch Manager St0SCAN 5/?3/ 2006 SDNY_GM_00173482 EFTA_00195137 EFTA01305382 NEW M ma) STATE LAND OFFICE APPLICATION TO StFBIAA,SE STATE TRUST LANDS:,tij (PLEASE PIARDTININIC) r I ' • ' _ O of (mailing address) La2--rlio gad t 53z2nA8S14112 , being lassee(s) under Agriculture Lease No. granted by the Commissioner of Public Lands, do hereby make application to sublease ht e lands described as follows: I i cZnV. uwe, attic ..-4.Ab's SUBDIVISION SEC. TWP. RANGE ACRES ?Ora) tie.: fi b} PLE Q O4e...chez:A kaie.. -1O If additional space is needed to describe legal subdivision, please attach additional sheet using the above format Please give name of s*' 0`.t and mailing address: etand% 1.: Quirt I icanSee. 412c4(O Qad.S ttj vim no% It being understood that said permission to sublease does not in any way relieve me/us from obligation assumed under the lease stated above. ' CX1U40a4L3 Sublease term on the designated lands to commence edam i, 20 O17 and to expire on September 30, 20 0b , (ubleene cannot be given beyond expiration dare of lease.) Give reasons this land Is being subleased: lea2W11, pt/i(faxs linPree The number, type, class of livestock, and period of use, are as follows; NO. 35 S-01 (Revised 01/2001) LIVESTOCK KIND CLASS PERIOD OF USE FROM TO ,StAil Pe& Tolle Ancit4 elms SL0SCAS 5/23/2006 SDNY_GM_00173483 EFTA_00195138 EFTA01305383 OR— atter Please indicate the person and/or party that you wish our field representative to contact relative to this -nplication to subleasa Name: &lee. 01 &JICJOY-1 Address. 44 zs.o) Oro. icx/(J 3}2ert.:j. toi87-50() Home Telephone N Business Telephone No.1 Include 20% (twenty-percent) of the yearly rental with completed Sublease Application Form. The minimum fee for subleasing is S50.00 (fitly dollars). refet1/4.4 ExivrAci , do solemnly swear (or statements add answers to the questions in this application are true and correct to knowledge and belie. ANY FALSE STATEMENTS CONTAINED LEASE OR LEASES TO CANCELLATION. Signed: Lessee ) that of my CT Iffy Signed: SU CRIBED AND SWORN to before me this ' / r , by 1H5t.rplei— MY COMMISSION F.XPERES: day or (name of Agricultural Leavy ire 20 at HARRYY.tU.pR Nen ery Public. Stale o Newt bliPtary Public No. 16E4 853924 (I whiffed 0 AnStoGIOn4CoonlY Commission Expires reb.1 7:2034 • P tek y Q hJ S „ COMMISSIONER OF PUBLIC LANDS. do hereby gram the lessee(s) listed above permission to sublease the above described land. s-f- APPROVED THIS I day of ea 4-- y 204_L cetral_31);{ COMMISSIONER F PUBLI e-01 (Revised ouzion • /9 t IOCOOSaltl CLOSCAN 5/23/2q06 Llott-0391910303M4 I / EFTA_00 I 95 I 39 EFTA01305384 NEW MEXICO STATE LAND OFFICE APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE PILL OUT IN INK) 7n4fr Please give name of sublessee and mailing IA tam Lin Porii, IIVIe, (castling address) trader Agriculture Lease No. greeted by the make application to sublease the lends described as follows: 5"A4, r of being lessee(s) Lands, do hereby SUBDIVISION SEC. TWP. ACRES !Vat. "' MAIDto_co EiChibk nil-, A attchod c..)el' 4- \. fr- I- If additional space is needed 'be legal subdivision, please attach additional using the above &mutt larit alt LIM It being understood that said pa n to sublease does not in any way relieve mein from obligation assumed abler the lease • ted above. Sublease term on the designated ds to commence October 1, 24 0 6 1 and to expire on September 30, 201%-) , (Sublease given brad expiration date of lease.) Give reasons this land is be tzearig The number, type, c of livestock, and period of use, are as follows: LIVESTOCK NO. KIND CLASS iQ S-01 01/2001) U AS • 1 SLOSCAN 5/?3/20 06 SDNY_GM_00173485 EFTA 00195140 EFTA01305385 DATE TO FIELD DIVISION: IESTING DIVISION: LEASE NUMBER: 6 It - OO x1117 LW MEXICO STATE LAND OFFICra 3130 REQUEST FOR FIELD ASSIGNMENT FIELD DIVISION CONTROL NO. Wk.% - 5 ct.t. ,, BY: A. it t(i; beig.LL: a_O8,8, TYPE OF REQUEST: Skh keu5 NAME OF LESSEE/APPLICANT: Z O (Zito -7- At4.5-1- ADDRESS: 9 1 Z o iCho LA, ;S'4-4... e Alm DESIGNATED CONTACT: /3r; C4 Al cnitclan PHONE: ADDRESS: t7aid LEGAL DESCRIPTION: SECTION nt • Std a- 4-4--a.cLI lei a L di RANGE e r L 4- a COUNTY 544 4 f4 5 -e< 4-4-c, te, 41.4. en-L, AA_ •-/t g , DAT?" RETURNED TO REQUESTING DIVISION/BUREAU: ..ACT RESOURCE MANAGER RECSMMENDATION: 2 Qp0itt eatritiok Csnrkestai CM ( ker. avaa) tPPROVE RECOMMENDATION: FIELD DMSON) (' W.R) ESIWG DIVISION w 1/4 10b ) ( 6.Ak / - / 0 "DO )0 NOT APPROVE RECOMMENDATION: (Please flak reasons) iCTION TAICEITHYREQUESTING DIVISION: glar./4 1 42/24(fitted . A1( .TURNED TO DISTRICT RESOURCE MANAGER -89 Revised: 11/1/99 cL0SCAN 5/25/2006 SDNY_GM_00113486 EFTA_00195141 EFTA01305386 PATRICK H. LYONS COMMISSIONER MARCH 30, 2006 TO: State of dew Mexico Commissioner of Public Lane 310 OW SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org MJG-1174 AND MJG-1175 GILBERT BORREGO, SURFACE RESOURCES DIVISION ATTENTION: MARY DUBOSE GRAZING MANAGER THROUGH: BRIAN HENINGTON, FIELD OPERATIONS ISJON FROM: MARCUS J. GARCIA, SANTA FE DISTRI SUBJECT: GR-2088 AND GR-2122. ZORRO TRUST. r PL1 SUBLEASE. SYNOPSIS The recommendation is to approve this application to sublease. The ocularly estimated range condition varies from fair to good condition. See the IMPROVEMENTS for additional information relative to unauthorized improvements. LEGAL DESCRIPTION GR-2088: Lot 1, 2, 3 and 4 within Section 36, Township 13 North, Range 9 East, N.M.P.M., Santa Fe, County, New Mexico; containing 84.86 acres, more-or-less. GR-2122: Lot 1, 2, 3, 4 and 7; SWYNE1/4, Si/INV/4, SW'/. of Section 2, Township 12 North, Range 9 East, N.M.P.M., Santa Fe, County, New Mexico; containing 518.97 acres, more-or-less. Section 16, Township 12 North, Range 9 East, N.M.P.M., Santa Fe, County, New Mexico; containing 640 acres, more-or-less. LOCATION These state trust lands are located in south central Santa Fe County between Galisteo and Stanley, New Mexico. Section 16 is landlocked but Section 36 can be accessed directly from The Anaya Ranch Road (County Road 38-B). Section 2 abuts Section 36 and can conceivably be reached by walking across Section 36. The condition of the grazable sites was ocularly estimated to be in fair to good condition. -Stale Land Office Baxfidaries • Curie Tingley Hospital • Chards* Petal & Reform • Comma Schools • &man NM University • Rio Grande Innownset • Mimi licepital of NM •NM Soya School • NM highlands Ihistrilty • NM haiku &Minim @ Technobsy • New Mexico LaMar/ linninne•NM School for the Deaf • NM School fee be Vnally Hendicapped • NM Sire HospiW • New Menke Soma University • Nernem NM Commonity College • realientiary of New Wake • rtsfritivr otpnek Sun Put Comninion • Ueivereity of New Mexico • UNM Seine lamb • Won Reseavoire • %elm New Mexico Unisonity EFTA 00195142 EFTA01305387 MARCH 30, 2006 -2- MJG-1174 AND MJG-1175 Generally, the condition of section 16 is fair and Sections 2 and 36 are in good condition. The ranch has not been extensively grr.d since being sold to the current owner approximately 10 years ago. According to the ranch manager, the surface ownership status consists of 7,575 deeded and 1,582 acres of leased, mainly state trust land. Currently, there are 50 bead of livestock grazing the ranch that belong to an employee of the ranch, as listed in the application. HIGHEST AND BEST USE Highest, best and current use is estimated to be livestock grazing. Historic rock art panels associated with the Creston geologic feature on Section 2 attract people interested in historic graffiti. IMPROVEMENTS On the day of the field evaluation, I documented a new water distribution pipeline within the SY2S% of Section 16 and cholla removal in the same section. There is another water distribution pipeline also on Section 16 but this should be covered under a water easement since it is the water supply for the lessees' residence. These items will be covered in special assignment reports. REMARKS I met with the ranch manager, Brice Gordon, for this field evaluation. The lessee has essentially given over care and control of the livestock on the subject property, so a sublease is needed. Based on my field evaluation and the fair to good range conditions of the ranch, it is recommended to approve the sublease application. MJG Attachments SDNY_GM_00173488 EFTA_00 I 95 I 43 EFTA01305388 DIGITAL IMAGES - MJG-1174 AND MJG-1175 Looking east from the SSW/4SE% of Section 16. Range condition is estimated to be fair. Looking west from the SSW/4SE% of Section 16. This image shows the existing dirt tank. • • 4. et r • 1,1.,* ;etc,- • - • '1 ••••!tri, Ile • . • -;_• .! -412"...- re 14CI raC t • PC1.1k-e!Le'i.-Ci ...7 : 147.? -42S4. • cioitto_ • . . is. r , wI C 'CsP P • Ps ' • r 4 • it - - •, .1" • is - P' 4 ,4 4 ' - „. " " l ow . • -r r • _ . 4; -:".• - -. k-, • - • „. • ••••z 4, • ' • - ti.a , -,0•••••• :7111..4...C11J rot A1/2... - -44-- 9 • 1. 1:•,' c't‘Z•PS-4- PtCt f•ct/ 4C‘I 1•11.11.. jeireSt e' ork 4.1!: :fr. • - ..kurper' t4ts'imisa -rs•S` 41, "it --As • • -te At1 4.8 cr t . k: 17 , 5-ea cc r, 5/23/70ar SDNY_GM_00173489 EFTA_00195144 EFTA01305389 DIGITAL IMAGES - MJG-1174 AND MJG-1175 Looking north from the access road in the SWASE% of Section 16. Looking south from the access road in the SWASE1/4 of Section 16. • • • .afjori. ...IL -1 `...arr _a, • - • <-4- - 411" - • ....ea.: ,.. 37;t15.:7*-4:4, • ;so Z••••••••te-.±:-‘4• ;FOL:4 tat v .0a i' :,41:*k r-t-S-C:alte i: • +at- %.;,12•4> beadm,r,fir- • Ja 7.."HTeiev.2:: 141-r 7 ‘ . 44:44‘ /%4 7'17: SOoattre ... . :?.?'‘ Sctiaart- • "4"-4.eWs i cja r"-;t1.041Aie ltt"1/Cli atearak be t .4: 1* ". t 4.: lit4F,,tr7Pr 410:tie it;as-rtatfiCiiig ',„5.cer -/L6C: 71.41 r_ a ,. . . -• I — ;4, fr ,...i:.- • ..•-• "•,...)47 ?I- 4 ' ,. t li; X; •-• o: 7 t 1 L . ' l i • " — '*itt .lif ) y . •:".. t .ii t Agkil.; .. 4 ‘. t,.......„7„ ,,a .. _ . 'rm. iii ditliS -'...1. : 47 .-1 : 7 .4 O ' . -- ,',: ••: -.1- .1.‘: "; • E . .azz va scan 5b5/a c SDNYGM00173490 EFIA_00195145 EFTA01305390 DIGITAL IMAGES - MJG-1174 AND MJG-1175 Looking northwest from the SEV,SVA of Section 16. Range condition is estimated to be fair. Looking northeast from the SW'/.SW'/ of Section 16. Range condition is estimated to be fair. 510 SOW G/93/a/07 SDNY_GM_00173491 EFTA_00 I 95 I 46 EFTA01305391 DIGITAL IMAGES - MJG-1174 AND MJG-1175 Looking west from the access road in the SWV4SEVi of Section 2. Range condition is estimated to be good. - --Agallit Looking southwest from the access road in the SW1/4SE'll of Section 2 to the north side of the Creston geologic feature. Range condition is estimated to be good. $.-1 0 cre 5/23/20,1 SDNY_GM_00173492 EFTA_00 I 95 I 47 EFTA01305392 DIGITAL IMAGES - MJG-1174 AND MJG-1175 Looking west from the access road in Lot 1 of Section 2. Range condition is estimated to be good. - o a , ;Nrtt,es • — • - " fi ; rte. -; • w.0 "s• .7-2-`'S 7 a .14 -..oZ" ..felwearek at • -+ - 1 t aie t'-alkt-05 • rt.„,- _;-;4:01 ez..; - - /petit Jr••• ne.. • ' 4", - '‘ "SC •••-r rjar tir dar.. _. 4“.. 4.• • .... 1.- --et;" • rtelars a^ p. • rM ‘,Lalior„..,- ‘_• „. ••"'";',•t,""' - Looking south from the access road in Lot 1 of Section 2. Range condition is estimated to be good. Note the north side of the Creston geologic feature. • "Ni r te.a. D g• • - • 46. 57. 0 Sr* 54 Vlela SDNY_GM_00173493 EFTA_00195148 EFTA01305393 DIGITAL IMAGES - MJG-1174 AND MJG-1175 Looking north from the access road in Lot 4 of Section 36. Range condition is estimated to be good. Looking south from the access road in Lot 1 of Section 36. Range condition is estimated to be good. La I La' it.r4; z,it" ,, ., 44 7:4-- e "P.P-;- se • • . . e en's.... • ink li . • 40 A ‘ t r. I S Nli. • .14 •-• ,-,4 7 : 1.7 it ttZ t _ 0 a * - ' 1 c • .• - - ' -_ . 44....t_a4 F.:47 S • .- - Atal.`17.‘: -;:•-; 2 i. ' t --4;;"4 - -I I ' - Z.""•' c. - r +Z .3 •-• " -- --"" I - •-..' . ' • -•-• mist i - , ..-_- 5 : sse64 ... . ... lilt'. .2:7,43.ficy 4 7 .L:771/1;. - Naer;;Cir_ - rer. :40.1"tc, ZtAntt. r's-L-rraz * mal es is ."V fat..et tatetiVAIS" :zirt "rit--C, C. roirlki$A47 ). #91. 510 ccen 5493/02aci SDNY_GM_00173494 EFTA_00 I 95 I 49 EFTA01305394 O 1F30" 4. cfr Pobereik mows 102)11.16 Amorit.**** i . : s- C.`-.... i 9 f / : e A i :I/ -‘ ‘ . ' n : Fs. . / s: ) . : I ,, e a . ( ' r. i r \. 1/ 106 00' IM *MOM LI . • 21, I.. ss•av de /600061. edited. sue dubliebied by Pie Gookitied Sony JP COMM bp 1/10$ *0 VICACIS 4. ****** *1******1* *Os* me es 1.3.1**64 Woo 1961. 16S anted 2%6 "" • I • ..gets A. \./ s. vel; ' 0 •{‘ of r NTS% In.sair=E LCA OSIO SONY_GM_0017 —'• CONTOUR I EFTA_00195150 EFTA01305395 unp VILLAIVUEVA. NEW MEXICO WSW I" R14 RANCH UNIT BOUNDARY EFTA_0019515 I EFTA01305396 This is a Pa ch I type separator sheet. C.) E I (1) N in w al 0 0 _J LT II a) a O u_ YI II RINIIYVnI IIIEIIVINIV VIII Portrait Feed New Form Follows... Printed on 7/6/2001 11:48 14 All Copyright CiKotat knago Prologs 1994-1999 11111111,11111111,111111111111,1 41111,1111111111 • SDNY_GM_00173497 EFTA 00195152 EFTA01305397 N . MEXICO STATE LAND OFFICE COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 1148, SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GR2088 THIS LEASE, DATED OCTOBER 01, 2001 , IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW MEXICO, HEREINAFTER CALLED "LESSOR" AND: ZORRO TRUST HEREINAFTER CALLED "LESSEE(S)", WHOSE ADDRESS OF RECORD IS: C/O JEFFREY E. EPSTEIN 457 MADISON AVE NEW YORK,NY 10022 LESSOR AND LESSEE AGREE AND COVENANT AS FOLLOWS: 1. LEASE. FOR AND IN CONSIDERATION OF AND SUBJECT TO THE RENTALS AND THE TERNS, COVENANTS, CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE AND ALL OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSEE TAXES FROM LESSOR THE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. 2. TERM. THE TERN OF THIS LEASE SHALL BEGIN ON OCTOBER 01, 2001 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 2006. 3. RENT. THE ANNUAL RENTAL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NMSA 1978 AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN THE STATE LAND OFFICE ON OR BEFORE OCTOBER 1. THE ANNUAL RENTAL FOR GRAZING LAND SHALL BE DETERMINED AS FOLLOWS : ANNUAL RENTAL = BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY SLO RULE 8 "RELATING TO AGRICULTURAL LEASES" (19 N.M.A.C. 3, SLO 8.11). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OF THE EVI,FOR EACH SUCCESSIVE YEAR OF THE LEASE TERN,BE DECREASED OR INCREASED BY MORE THAN THIRTY-THREE AND ONE-THIRD PERCENT.IN THE CASE OF GRAZING RENTAL OFFERS ON OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID, LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL GRAZING RENTAL DUE IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, ASSOCIATED LAND AND CONSERVATION RESERVE PROGRAM LAND SHALL BE DETERMINED BY LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERM OF THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. 4. PERMITTED USE. LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AND IN ORDER TO COMPLY WITH ALL APPLICABLE PROVISIONS OF LAW REGARDING THE 000 SLO 8-06-0111112 $50.00F1 GOO SLO 8-06-014113 $63.71F4 SDNY_GM_00173498 EFI;k_00195153 EFTA01305398 CARE AND PROTECTION OF Ine i_dASED PREMISES. 5. LIEN. AS SECURITY FOR THE PAYMENT OF ANY RENT THAT IS OR MAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL BE PLACED ON THE LEASED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR. ALL IMPROVEMENTS PLACED ON THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED AS UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH THE APPLICABLE LAWS AND RULES. 7. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE THE LEASED PREMISES OR THE IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY LEASE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT BE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. 8. COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY BE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OF THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OF A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT THE CANCELLATION OF THE LEASE AND TERMINATION OF THE COLLATERAL ASSIGNMENT FOR THE NONPAYMENT OF RENTALS OR OTHER VIOLATIONS OF THE LEASE TERMS. 9. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF THE TERMS, CONDITIONS, OR COVENANTS OF THIS LEASE OR THE NONPAYMENT BY LESSEE OF THE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THE COMMISSIONER BE CONSIDERED A DEFAULT AND SHALL CAUSE THE CANCELLATION OF THIS LEASE 30 DAYS AFTER LESSOR HAS SENT WRITTEN NOTICE OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OF COLLATERAL ASSIGNMENTS BY REGISTERED MAIL, ADDRESSED TO THE POST OFFICE ADDRESS OF RECORD, PROVIDED, HOWEVER, IF WITHIN THE THIRTY DAYS THE LESSEE OR HOLDERS OF ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN THE NOTICE, CANCELLATION SHALL NOT BE MADE. 10. RENEWAL. ANY LESSEE WHO DESIRES TO SECURE A NEW LEASE SHALL MAKE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OF THIS LEASE. THE RIGHT OF RENEWAL SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS PROVIDED FOR BY LAW AND RULE. 11. RESERVATIONS. A. LESSOR RESERVES THE RIGHT TO EXECUTE LEASES ON THE LAND GRANTED BY THIS LEASE FOR MINING PURPOSES AND FOR THE EXTRACTION OF OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND THE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS OF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORT:7- SDNY_GM_00 173499 EFTA (X)195154 EFTA01305399 CULTURAL PRODUCTS Airy 1.. GRANT SUCH OTHER RIGHTS-OF-Wni ""D EASEMENTS AS PROVIDED BY LAW. B. LESSOR RESERVES THE RIGHT TO WITHDRAW PURSUANT TO RULE, UP TO 640 ACRES, BUT IN NO CASE MORE THAN HALF, OF THE LAND HELD 3Y THIS LEASE. 12. COMPLIANCE WITH LAWS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OF LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES WHICH HAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL HATTERS AND THINGS AFFECTING THE LEASED PREMISES AND OPERATIONS THEREON. SUCH OTHER AGENCIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALL SAVE AND HOLD HARMLESS, INDEMNIFY AND DEFEND LESSOR AND THE STATE OF NEW MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND FROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OUT OF OR ALLEGED TO ARISE OUT OF OR INDIRECTLY CONNECTED WITH THE OPERATIONS OF LESSEE UNDER THIS LEASE, OFF OR ON THE LEASED PREMISES OR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NOT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE OF ANY OF THE TERMS, CONDITIONS OR COVENANTS OF THIS LEASE SHALL BE HELD TO BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID OR BINDING UNLESS THE SAME IS IN WRITING AND SIGNED BY LESSOR. 16. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OF INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE FROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 18. SUCCESSORS IN INTEREST. ALL TERMS, CONDITIONS AND COVENANTS IN THIS LEASE SHALL EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST OF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE LESSOR RESERVES THE RIGHT DURING THE TERN OF THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MAKE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS MAY BE REQUIRED. SDNY_GM_00 173500 EFTA_00195155 EFTA01305400 I/WE CERTIFY uisSEE ) REFERENCED ON THE FACe, P4,6E OF THIS LEASE. LESSEE a ri t erj ej oD zen.trac+- LESSEE TELEPHONE TELEPHONE LESSOR-,COIfNISSIONER OF PUJ 1 tC LANDS STATE OF NEW MEXICO COUNTY OF THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE NE THIS DAY OP , 20 ACKNOWLEDGMENTS NATURAL PERSON(S) BY (NAME OF PERSON ACKNOWLEDGED) NY COMMISSION EXPIRES: J erk Iff-‘TE OF NEW AWAHND- ) ) COUNTY OF 141.‘.0444: ) NOTARY PUBLIC PARTNERSHIP THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF , 20 , BY (NAME OF PERSON ACKNOWLEDGED) PARTNER(S) ON BEHALF OF , A PARTNERSHIP. MY COMMISSION EXPIRES: NOTARY PUBLIC STATE OF OF NEW MHX463. • COUNTY OF Nirtmlot/K, THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS 30b DAY OP 'Ta , 2001 BY „Tc-Ccir-e_ti c (.e i''1 74 7:644-CP-- OF t (NAAt OF OFFICER) (TITLE OF OFFICER) "7--env-inn 4- A NIAJAJ %irk TatikTICIN-c-g N BEHALF (CORPORATION NAME) OF SAID CORPORATION. IOMMISSION EXPIRES: IPBELd Notary. ublic, State of New York aumiNned o. Oin1 BRE0c413ki583n692c4ounty Commission Expires Feb. 17, 20_y_ SDNY_GM_00173501 EFTA_001195 I 56 EFTA01305401 NEW MEXICO STATE LAND OFFICE APPRAISEMENT OF GRAZING AND AGRICULTURAL LANDS COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING PO BOX 1148, SANTA FE, NEW MEXICO 87504-1148 LESSEE: SECTION 10 OF THE NEW MEXICO ENABLING ACT SPECIFICALLY REQUIRES TEAT ALL STATE LAND TO BE LEASED BE APPRAISED AT ITS TRUE VALUE. STATE LAW, UNDER SECTION 19-7-1 NMSA 1978, FURTHER PRESCRIBES THAT SUCH APPRAISEMENT BE SECURED BY THE LESSEE WHEN ACQUIRING A LEASE AND THAT SUCH APPRAISEMENT BE COMPLETED BY A DISINTERESTED PERSON. THE INSTRUCTIONS FOR THE COMPLETION OF THIS FORM ARE SET OUT BELOW. APPRAISEMENT I,NaTRUCTIONS: THIS INFORMATION MUST BE COMPLETED BY A DISINTERESTED PERSON AND BASED ON INDIVIDUAL'S INFORMATION AND BELIEF. THIS FORM CANNOT BE COMPLETED BY A LICENSED Al-eRAISER. (NMSA 1978, 61-30-16). YOU CANNOT PAY TO HAVE THIS FORM COMPLETED. (NMSA 1978, 60-30-3A). THE LAND MUST BE APPRAISED AS VACANT, I.E. WITHOUT IMPROVEMENTS, FOR BOTH SALE AND LEASE PURPOSES. IT MUST ALSO BE SIGNED BEFORE A NOTARY PUBLIC. I, at- f . .k (riot WV" W2 t , DO SOLEMNLY SWEAR (OR AFFIRM), UNDER THE PENALTIES OP PERJURY, THAT AFTER HAVING PERSONALLY INSPECTED THE TRACT(S) OF LAND CONTAINED IN LEASE No.Geatss AND DESCRIBED IN EXHIBIT A OF SAID LEASE, THAT MY OPINION OF THE APPRAISED CASH VALUE OF SAME (WITHOUT IMPROVEMENTS) IS $ facto.00 PER ACRE, IP SOLD, AND $ 4on.ann PER ACRE, FOR LEASE PURPOSES, AND CERTIFY THAT I AM NOT INTERESTED IN SAID LAND FOR LEASING OR SALE THEREOF. SIGNED ADDRESS Lic-7 CITY/STATE p1/4.) <pia `(or k .t SUBSCRIBED AND SWORN TO BEFORE ME THIS qmSt DAY OF ;Pt / 20 . MY COMMISSION EXPIRES: 0 I NMI PUBLIC tc vay HA . BLLER Notary PubRRY! lic, StateE of New Fork QuailiNo. 018E4963924 Commission Expires Rr Feb. 17, 20,2 ckland County 2.--- SDNY_GM_00173502 EFTA_00195157 EFTA01305402 EXHIBIT A LEASE NO: GR2088 SUBDIVISION SEC-TWN-RNG ACREAGE U PRICE S PER E UNIT CARRY CAP * LOT]. 36 13N 09E 21.14 G 11 LOT2 36 13N 09E 21.19 G 11 LOT3 36 13N 09E 21.24 G 11 LAT. 36 13N 09E 21.29 G 11 TOTAL ACREAGE: • II1J Wr• t RENEWAL LEASE 84.86 TOTAL RENTAL: 563.71 LEGEND: USE TYPE CODES Com CONSERVATION RESERVE PROGRAM I= IRRIGATED CROPLAND, M= 2= DRYLAND FARMING (BID), 3= H= 1/2 SOUTH FOR TOWNSHIP, H= LAND, D= DRYLAND FARMING, MOBILE HOME ON LAND, R= RSIP LAND, IRRIGATED CROPLAND(BID) 4= CRP(BID) 1/2 EAST FOR RANGE * CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS G= GRAZING, 1- GRAZING (BID). 5= RSIP(BID) , SDNY_GM_00173503 EFTA_001195 I 58 EFTA01305403 IMPROVEMENT LISTING FOR EXISTING LESSEE'S RENEWAL APPLICATION The State Land Office Rule Relating to Agricultural Leases, 19 N.M.A.C. 8.9.2.2. requires you to submit a listing of your improvements located on the state leased land held under this lease with your application. LEASE NUMBER G-E. St (Please check one of the boxes) DO IMPROVEMENTS EXIST ON STATE LAND: YES IF YES PLEASE LIST BELOW. NO I p.siczt(none) All improvements mast be listed even if they are on record with our office. EtintOVEMENT APPItOnNIAMBIDIgkariii7EAR LOCATION SECTION TQ._ Inclusion of unauthorized improvements on this listing or any appraisal submitted to the Commissioner for any purpose shall not be interpreted as approval of those improvements by the Commissioner. (19 N.M.A.C. 8.9.11) This office will reject your renewal lease application if this form is not completed. - - - - true and correct to the best of my knowledge. Please fired whether improvements exist or not. see Signature Date: 1 1150/0 I Lessee Signature SDNY_GM_00173504 EFTA_00 I 95 I 59 EFTA01305404 This is a Patch I ype sepa a or sheet. 1 NH1111111111 Form Type = 'AgM scBid" CODE12 type baccda This is a Patch i type separator sheet. * Portrait Feed New Form Follows... Pdnled on 7M/2001 11:49:21 AM Copyr19124:Korsit keine Products 1294-1999 11111111,J111,1111 1j111111 SDNY_GM_00173505 EFTA_00195160 EFTA01305405 O STATE LAND OFFICE COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 1148, SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GR2088 THIS LEASE, DATED FEBRUARY 03, 1997 , IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW MEXICO, HEREINAFTER CALLED "LESSOR" AND: ZORRO TRUST HEREINAFTER CALLED "LESSEE(S)", WHOSE ADDRESS OF RECORD IS; C/O JEFFREY E. EPSTEIN 457 MADISON AVE NEW YORK,NY 10022 LESSOR AND LESSEE AGREE AND COVENANT AS FOLLOWS: 1. LEASE. FOR AND IN CONSIDERATION OF AND SUBJECT TO THE RENTALS AND THE TERMS, COVENANTS, CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE AND ALL OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSER TAKES FROM LESSOR THE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. 2. TERM. THE TERM OF THIS LEASE SHALL BEGIN ON FEBRUARY 03, 1997 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 2001. 3. RENT. THE ANNUAL RENTAL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NMSA 1978 AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN THE STATE LAND OFFICE ON OR BEFORE OCTOBER 1. THE ANNUAL RENTAL FOR GRAZING LAND SHALL BE DETERMLNED AS FOLLOWS : ANNUAL RENTAL = BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY SLO RULE 8 "RELATING TO AGRICULTURAL LEASES" (19 N.M.A.C. 3, SLO 8.11). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OF THE EVI,FOR EACH SUCCESSIVE YEAR OF THE LEASE TERM,BE DECREASED OR INCREASED BY MORE THAN THIRTY-THREE AND ONE-THIRD PERCENT.IN THE CASE OF GRAZING RENTAL OFFERS ON OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID, LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL GRAZING RENTAL DUE IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, ASSOCIATED LAND AND CONSERVATION RESERVE PROGRAM LAND SHALL BE DETERMINED BY LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERM OF THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. 4. PERMITTED USE. LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AND IN ORDER TO COMPLY WITH ALL APPLICABLE PROVISIONS OF LAW REGARDING THE -SONY-6Itrotira1506 EFTA_0019516I EFTA01305406 CARE AND PROTECTION Ok THE LEASED PREMISES. 5. LIEN. AS SECURITY FOR THE PAYMENT OF ANY RENT THAT IS OR MAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL BE PLACED ON THE LEASED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR. ALL IMPROVEMENTS PLACED ON THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED AS UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH THE APPLICABLE LAWS AND RULES. 7. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE THE LEASED PREMISES OR THE IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY LEASE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT BE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. 8 COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY BE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OF THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OF A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT THE CANCELLATION OF THE LEASE AND TERMINATION OF THE COLLATERAL ASSIGNMENT FOR THE. NONPAYMENT OF RENTALS OR OTHER VIOLATIONS OF THE LEASE TERMS. 9. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF THE. TERMS, CONDITIONS, OR COVENANTS OF THIS LEASE OR THE NONPAYMENT BY LESSEE. OF THE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THE COMMISSIONER BE CONSIDERED A DEFAULT AND SHALL CAUSE THE CANCELLATION OF THIS LEASE 30 DAYS AFTER LESSOR HAS SENT WRITTEN NOTICE OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OF COLLATERAL ASSIGNMENTS BY REGISTERED MAIL, ADDRESSED TO THE POST OFFICE ADDRESS OF RECORD, PROVIDED, HOWEVER, IF WITHIN THE THIRTY DAYS THE LESSEE OR HOLDERS OF ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN THE NOTICE, CANCELLATION SHALL NOT BE MADE. 10. RENEWAL. ANY LESSEE WHO DESIRES TO SECURE A NEW LEASE SHALL MAKE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OF THIS LEASE. THE RIGHT OP RENEWAL SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS PROVIDED FOR BY LAW AND RULE. 11. RESERVATIONS. A. LESSOR RESERVES THE RIGHT TO EXECUTE LEASES ON THE LAND GRANTED BY THIS LEASE FOR MINING PURPOSES AND FOR TEE EXTRACTION OF OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND THE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS OF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORTI- opERATO.. SDNY_GM_00173507 EFTA 0029526? EFTA01305407 CULTURAL PRODUCTS ...4D TO GRANT SUCH OTHER RIGHTS-OF-h..-. AND EASEMENTS AS PROVIDED BY LAW. B. LESSOR RESERVES THE RIGHT TO WITHDRAW PURSUANT TO RULE, UP TO 640 ACRES, BUT IN NO CASE MORE THAN HALF, OP THE LAND HELD BY THIS LEASE. 12. COMPLIANCE WITH LAWS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OP LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES WHICH HAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL MATTERS AND THINGS AFFECTING THE LEASED PREMISES AND OPERATIONS THEREON. SUCH OTHER AGENCIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALL SAVE AND HOLD HARMLESS, INDEMNIFY AND DEFEND LESSOR AND THE STATE OF NEW MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND FROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OUT OF OR ALLEGED TO ARISE OUT OF OR INDIRECTLY CONNECTED WITH THE OPERATIONS OF LESSEE UNDER THIS LEASE, OFF OR ON THE LEASED PREMISES OR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NOT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. 15. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE OF ANY OF THE. TERMS, CONDITIONS OR COVENANTS OF THIS LEASE SHALL BE HELD TO BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID OR BINDING UNLESS THE SAME IS IN WRITING AND SIGNED BY LESSOR. 16. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OF INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE FROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 18. SUCCESSORS IN INTEREST. ALL TERMS, CONDITIONS AND COVENANTS IN THIS LEASE SHALL EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST OF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE LESSOR RESERVES THE RIGHT DURING THE TERM OP THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MAKE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS MAY BE REQUIRED. tifJ------ esec.... SDNY_GM00173508 EFTA_00195163 EFTA01305408 WITNESS THE LESSE LESSEE S AND SEALS JF LESSOR AND LESSEE ON THE DAY AAA, /F ' TELEPHONE 7 ( ) TE P NE elIMISSIONER OF P IC LANDS ACKNOWLEDGMENTS NATURAL PERSON(S) STATE OF NEW MEXICO ) ) COUNTY OF ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF BY (NAME OF PERSON ACKNOWLEDGED) MY COMMISSION EXPIRES: , 19 NOTARY PUBLIC PARTNERSHIP STATE OF NEW MEXICO ) ) COUNTY OF ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF , 19 (NAME OF PERSON ACKNOWLEDGED) PARTNER(S) ON BEHALF OP A PARTNERSHIP. MY COMMISSION EXPIRES: NOTARY PUBLIC CORPORATION STATE OP NEW MEXICO ) ) COUNTY OF4A)tat,... ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF 4(44(1 , 199? BY CGwee.- Adeet7:74 111 OF NAME OFFICER) (TITLE OFOFFICER) ,frtirs9 04s44.71" (CORPORATION NAME) OF SAID CORPORATION. MY COnNISSION EXPIRES: test . ff /999 A & /7 7tit CORPORATION, ON BEHALF rase./ .9 51 10-tcar....--• NOTARY PUBLIC • GM_00173509 g • EFTA_PO I 95 I 64 EFTA01305409 E)DIIBIT A LEASE NO: GR2088 SUBDIVISION SEC-TWN-RNG ACREAGE U PRICE CC S PER AA E UNIT RP LOT1 - 36 13N 09E 21.14 1 500.0000 11 LOT2 - - 36 13N 09E 21.19 1 500.0000 11 LOT3 - - 36 13N 09E 21.24 1 500.0000 11 LOT4 - - - 36 13N 09E 21.29 1 500.0000 11 TOTAL ACREAGE: 84.86 LEASE ISSUED OUT OF OPEN-ACREAGE FROM A COMPETITIVE BID. TOTAL RENTAL: $2,000.00 LEGEND: USE TYPE CODES C. CONSERVATION RESERVE PROGRAM LAND, D. DRYLAND FARMING, On RANGELAND, I. IRRIGATED CROPLAND, M. MOBILE HOME ON LAND, R. RSIP LAND, 1. BID ON GRAZING, 2- BID IN DRYLAND FARMING, 3- BID ON IRRIGATED, 4. BID ON CRP LAND, 5. BID ON RSIP SDNY_GM_00173510 EFTA00I95165 EFTA01305410 HEW ELEXECO STATE lam mina • APPLICATION TO LEASE STATE TRUST LAND The Commissioner of Public Lands P.O. Box 1148 Santa Pe, New Mexico 87504-1148 • Purpose of application (check ones X COMPETITIVE BID OPEN ACREAGE (I/We), Jeffrey E. Epstein, trustee of the ZorrolAnch. a (name) New York Trust, 457 Madison Avenue, New York, New York 10022 (address) Telephone , having reached the age of majority and not in de ault under any state lease, do hereby apply to lease for a term not to exceed five years, a total of acres which is described below. USE FOR COMPETITIVE BID PURPOSES ONLY: WITH THIS APPLICATION I/NZ REMIT $ 2000i00 AS THE FIRST YEAR'S OFFERED RENTAL ON TEE DESCRIBED 1.1 ,S. IF AWARDED THE LEASE, IME A= TO PAY NO LESS THAN THE oPPERED INT ANNUALLY POR THE REMAINING TERM OP TEE LEASE SUBDIVISION SECTION TOWNSHIP RANGE ACRES • Lots 1, 2, 3, and 4 - .. .ication fee $50.00 ;ravi d . /S3) 3.6 13N 9E approx. 84.7 continued on reverse sidr SDNY_GM_00173511 EFTA_00 I 95 I 66 EFTA01305411 - 457 Madison Avenue pow Ynrk, MY Vin7, Telephone Subscribed and sworn to before .UMFOM PM VIM A. Mr am omm cum We Mao. UM Ikon Noisy Silt UtiOndlis Notary Public I Snit. in answer to the following questions: is this land within your pasture or grazing allotment? For what purpose is the land wanted? grazing Do you intend to irrigate any portion of the land? Mo No Do you intend to sublease any portion of this land? No I/We, Jeffrey E. Epstein , do solemnly swear (or affirm) that the statements and answers to questions in this application are true and co the best of my knowledge and belief. Signed Address Signed Address Telephone me this a9 day of My c scion expires: /f99 Z. Subscribed and sworn to before me this day of 19 My commission expires Notary Public SDNY_GM_00173512 - _ EFTA_00 I 95 I 67 EFTA01305412 .IEW MEXICO STATE LAND O}-riCE APPRAISEMENT OF GRAZING AND AGRICULTURAL LANDS TO THE COMMISSIONER OF PUBLIC LANDS, SANTA FE, N. M. Sir: I am well acquainted with the character of state owned lands as described on the back of this form, located in5Roat County. New Mexico. together with statement of the natural character thereof and the condition thereof: CHARACTER OF LAND The land is bast adapted for grazing or agriculture -r-re,..., C There are natural streams, springs. ponds. and water holes as follows:. AM NC There are irrigating ditches on land as follows: 4f,10/./c Give depth of well nearest this in land, and state Inpation_by section. township and range On said nd there are —rateto...,-.5 /a t /07... 4.1 i o eRA, t 9E. acres nature) hay land; A/0 acres agricultural land, without irrigation. 0 acres of irrigable land, /1/0 acres in actual cultivation, and Ak, acres timber land. State kind of timber, quality and presep condition 4./C,A., C Is there mineral or coal on the land? 4 .10 . If so. state location. extent and kind of mineral FE •TheCilo A-, The attached plat represents the location of said lands, the location of streams, springs, water sources and irrigation ditches, as well as the agriculttiral, hay and grazing land, if any. also the improvements, and said map is made a part of this affidavit. House. give size and type of construction EV -4, stables and corrals V give depth and description IMPROVEMENTS il OAPE /110.•-ze ot/o..:-/e Value I Value I Value $ ,„4.; ct .c.r Value $ Fences. give amount and kind / 4a:a7P0 AL, e sne.44.,0 g .ca, Value $ c2o Other improvements 4./0 C Total Value of improvements The first improVements ware placed upon this section by of Value $ State of After having personally inspected the within described tract of land. I HEREBY APPRAISE THE SAME at and state the ACTUAL CASH VALUE of same to be S R 0 par acre, and certify that I am not interested in said land or leas- ing or sale thereof. Subscribed and sworn to before me this al day of My Commission Expires: 7T/otos a.i, 1Q99 Signed P.O. -.St_ 7 -- Januas11 y I , 19 97 t aral t 4s ., Notary 1/ NOTE: The Laws of New Mexico require that all statements in appraisements must be made from per- inal knowledge. and not upon information and belief; eave.only those with reference to the actual value of the4and appraised. This appraisement must be sworn to before a Notary Public or other office ized to administer oaths. S-44(REV-1985) 000 SL0 2-05-97#024 $2,000.00F4 ( OVER ) 000 SL0 2-05-97#025 aup sat rn.,:fofii e°_&00039itton,„,49,_. EFTA_00195168 EFTA01305413 THE CONTENTS OF THIS FOLDER HAVE BEEN PREPARED FOR IMAGING. PLEASE TAKE SPECIAL CARE NOT TO REARRANGE THE CONTENTS AS YOU WORK WITH THE FOLDER. IF YOU THINK YOU MAY HAVE GOTTEN IT OUT OF ORDER, no big deal, but PLEASE CONTACT MARY DUBOSE OR OTHER AGRICULTURAL LEASING DIVISION STAFF ABOUT HOW TO REASSEMBLE. YOUR COOPERATION IS MUCH APPRECIATED. LEASE G1) DATE OF PREP EFTA_00195169 EFTA01305414 COMMERCIAL RESOURCES (505)4274724 SUIUMCJI RESOURCES (305)4274703 MIIIERAL RESOURCES 0044274744 ROYALTY (305)427.3772 August 5, 1997' Stateofriewileadco Commissioner of Public Lands Ray Powell, MS., D.V.M. 310 Old Santa Pe Trail, P. O. Box 1148 Santa Pe, New Mexico 87504.1148 Phone (5O5)-827.5760, Pax (505)-827-5766 Zorro Trust C/O Jeffrey E. Epstein 457 Madison Ave. New York, NY 10022 Re: State Agricultural Lease Dear Mr. Epstein: Please find enclosed an approve of your agricultural lease contract issued from open-acreage. The term of your lease will commenced on February 3, 1997 and will expire on September 30, 2001. ►UBLIC AFTAIRS (503)4274765 A01111113TIATIVE MOM (305)4274700 LEGAL (305)4274713 (505)4274732 If you have any ques feel free to contact me at the above address or at . Suzie Jacquez Surface Resources Division Encl SDNY_GM_00173515 EFTA_00 I 95 I 70 EFTA01305415 reMMEACIAl. RESOURCES (505)4274T24 riieuc AMATITS (.505)427-5705 MMMWERIMWMUS State of New Mexico ADMINISTRATIVE MOM'. (50314274705 posi.mawcm Commissioner of Public Lands mmumimmixmom Ray Powell, M.S., D.V.M. MEAL (305)4274744 0044274715 310 Old Santa Pe Trail. P. 0. Sox 1148 Roma,/ Santa Pe, new Mexico 87304-1148 KAMM moma274rm Phone (503)-8274760, Pax (305)427-3788 (505)4274732 Zorro Trust C/O Jeffrey Epstein February 14, 1997 457 Madison Avenue New York, New York 10022 Re: State Agricultural Lease No. GR-2088 Dear Mr. Epstein: Congratulations! You have won the competitive bid to lease State Land issued out of open-acreage(Lots 1, 2, 3 & 4 of Sect. 36, Tnsp. 13N & Rge. 9E which make up 84.86 acres). Enclosed is a set of lease contracts for your execution. Please note that the name of the lessee depicted on the lease contracts is "Zorro Trust". On your application to lease State Trust Land you indicated the name of "Zorro Ranch" as the applicant name, however all of our records pertaining to you show that you usually use the name "Zorro Trust". On February 10, 1997, I spoke with Shannon Heali of the Zorro Ranch who gave her verbal consent for us to use the name "Zorro Trust" as the lessee of this lease. She later confirmed that she would be sending us a written consent which we are waitig for. Please note that the term for this lease commenced on February 3, 1997 and will expire on September 30, 2001. Please sign both copies before a Notary Public and return them to this office at your earliest convenience for the Commissioner's approval. Once approved, Marcus Garcia will contact you to schedule an appointment for an orientation interview and deliver to you your approved contract. we also pro-rated your annual rental of $2000.00 for 8 months. Due to this, your annual rental for 1996-1997 will be $1,333.36. Since you submitted to us $2000.00, we will be refunding you the difference of $666.64 in 4-6 weeks. If you have any questions, please feel free to contact me at the above address or at Sincerely, Suzie Jacquez Surface Resources Division Encl SDNY_GM_00173516 EFTA_00195171 EFTA01305416 COMPIGICIAL RISOURCLS (505)427-5724 5URrACt ReSOURCO . State of New Mexico j50S)427'570' Commissioner of Public Lands MMA011, UMWKW Ray Powell, M.S., D.V.M. (505)427.3744 310 Old Santa Pe Troll, P. 0. Box 1148 ACArtaff Santa Fe, Mew Mexico 87504.1148 0o0427-3n2 Phone (505)-827.5760, Fax (505)-827.5788 Zorro Trust C/O Jeffrey Epstein 457 Madison Avenue New York, New York 10022 ruouc AJTAJR3 [SO5)427-5765 ADMIMISTRATIVe MOM% 005)4274700 LEGAL. (S03)427.5713 PLMROMo (505)427-S752 February 14, 1997 Re: State Agricultural Lease No. GR-2088 Dear Mr. Epstein: Congratulations! You have won the competitive bid to lease State Land issued out of open-acreage(Lots 1, 2, 3 & 4 of Sect. 36, Tnsp. 13N & Rge. 9E which make up 84.86 acres). Enclosed is a set of lease contracts for your execution. Please note that the name of the lessee depicted on the lease contracts is "Zorro Trust". On your application to lease State Trust Land you indicated the name of "Zorro Ranch" as the applicant name, however all of our records pertaining to you show that you usually use the name "Zorro Trust". On February 10, 1997, I spoke with Shannon Heali of the Zorro Ranch who gave her verbal consent for us to use the name "Zorro Trust" as the lessee of this lease. She later confirmed that she would be sending us a written consent which we are waitig for. Please note that the term for this lease commenced on February 3, 1997 and will expire on September 30, 2001. Please sign both copies before a Notary Public and return them to this office at your earliest convenience for the Commissioner's approval. Once approved, Marcus Garcia will contact you to schedule an appointment for an orientation interview and deliver to you your approved contract. We also pro-rated your annual rental of $2000.00 for 8 months. Due to this, your annual rental for 1996-1997 will be $1,333.36. Since you submitted to us $2000.00, we will be refunding you the difference of $666.64 in 4-6 weeks. If you have any questions, lease feel free to contact me at the above address or at Sincerely, LiA4 Suzie Jacquez Surface Resources Division Encl SDNY_GM_00173517 EFTA_00 I 95 I 72 EFTA01305417 COMMIRCIAL ItT3OURCC3 14,0‘ . PUBLIC ASTMS (303)427.3724 (505)4274765 • 3URFACC RCSOURCCS (505)4274793 State of New Mexico Commissioner of Public Lands ADMIIILSTRATIVC MOW. (50.3)4274700 MUICRAL RESOURCLS Ray Powell, M.S., D.V.M. LEGAL (305)4274744 ($05)-827-5713 310 Old Santa Pe Trail, P. 0. Box 1148 ROYALTY Santa Pe, New Mexico 87504-1148 PLAIVIIII0 (503)4274772 Phone (505)-827.5780, rex (505)-827.5768 (305)4274752 February 14, 1997 Ublivion Enterprises VO Skip Whitson P.O. Box 5588 Santa Fe, New Mexico 87502-5511 Re: Sealed Bid on Open-Acreage Dear Mr. Whitson: Recently, I wrote you to inform you that you did not win the competitive bid. I neglected to enclose your rejected application with that letter. Please excuse this oversight. I apologize for this inconvenience. I am enclosing these documents with this letter. If you have any questions, lease feel free to contact me at the above address or at Sincerely, Suzie Jacquez Surface Resources Division Encl. SDNY_GM_00173518 EFTA_00195173 EFTA01305418 tonneau/1, mounts (soslaz7-3724 SURFACE RESOURCES (SO3)4274793 MUICRAL RESOURCES (SO3)-8274744 ROYALTY (SO3)-8274772 February 6, 1997 State of New Mexico Commissioner of Public Lands Ray Powell, M.S., D.V.M. 310 Old Santa Fe Trill, P. 0. Box 1148 Santa Fe, New Mexico 0504-1148 Phone (505)-827.5780, Fax (505).827.5788 Ublivion Enterprises C/O Skip Whitson P.O. Box 5588 Santa Fe, NM 87502-5588 PUBLIC ARAM! 4505)427476S ADMITICSTRAT1YE MONT. (503)4274700 LEGAL (503}627-3713 PLATSIIII0 (S05)4274732 Re: Sealed Bid on Open-Acreage Dear Applicant: I am sorry to inform you that you did not win the Sealed Bid competition. We will be refunding you your sealed bid offer of $501.00. You should be receiving this refund in 4-6 weeks. Enclosed with this letter is your original open-acreage application that has been stamped as 'rejected" along with your appraisement form. Thank you for expressing your interest in this open-acreage. If you have any further questions re ardin this matter, please contact me at the above address or at Sincerely, Suzie Jacquez Surface Resources Division Encl. SDNY_GM_00173519 EFTA_00195174 EFTA01305419 ;1300'0S$ £ZONL6-SO-Z 01S MG ZORRO DEVELOPMENT COPR./CASH ACCOUNT% .1koikty al II 91 or +go emikinsoto q ft uz Gimps I $ 5b. co • ••F Bryn .- - Zeritt" 6420 II•24642.• a6--cii iti OM • ; iligsf A. / . • .- i 1 • L Ilk!' 'A try C ••• le -V _.: , az, 4.tu. ill.vc. 9 7; n!:" . ?0, YV r'azo ,... . 0 . • • .:1 .. _._ tip4: --E: • LiNit • N Y ii011B.ORDER OF W.. . , .. II. It li ..,- iri' • #'14.CA 4' trt '=•''' CA ••t . ct `F •PeA.TC-4 • 3 ; .- WBJS FARGCra COMPANY. 'slum - ;: ', -Co MONTGOMERY STIWGT • . ' * SAM FFWSCO_ ... AC_ 41113. : • • PAYASLE At Winn PARDO SAM Nat. LcoR mums CAI.1.14,51 3964564 ,, A Ts. 901 7, tit • 1278 211.41/1070 DO:LARSEl • _ • - • • _ 4 - • 7 - • - - • . - • • _ ^ _ • - V a . I n - T h . • • ;, .4.420 • 068' e: A tor, re •97. ., tea.. a.,=" 5 L • rt -.4 ArV ia .4q. V 1/2 . • t eZ allk 7 a t " iP %UAL~s1M165 • : 1. —tort go, , **2, 000 . 00** If% . e 5! tre .,44. • Or) deS ar ett .C. V Veld it veer smosp.48 . •, ti g II 3:4( .14 a SAT - if • .j FA- 4 q t a 41 •• .• &Maim Authcrized Pe 000 SLO 2- 05-97#10222 $2,000.0OCK EFTA_00195175 EFTA01305420 • .?-• ;.-0 • •• ?V. • !- • ; ii:14$€•9 i s; ••• •:•"*". t' s .f. • Los Alamos Credit Union P.O. Bcot 1100 M" —t Los MilTIOL NM MU i 005)652-1261 OLA/1M ENTE1WRISES B2-03-97 . . HE • EXACTLYE30501dids Pacts T ORDER OF alitiMISICNIR OF LAWS i; ita2pccm @maga ottitnirsisee • 0= : . • . . • • . ' • • _ • • N4111/31.• 242614 VOID AFTER 6 MONTHS a SDNY_GM00173521 EF1'A_00195176 EFTA01305421 0IMMERCIAL RESOURCES (503)427-3724 SUREACE RESOURCES (SOS)8274793 State of New Mexico Commissioner of Public Lands PUBLIC AFFAIRS (503)6273765 ADMRUSERATIVE MOM. (502)4274700 PURERAL RESCRJRCZS Ray Powell, M.S., D.V.M. LEGAL 003)4274744 POS)-1274713 310 Old Santa Fe Trail, P. 0. box 1148 ROYALTY Sante Fe, New Mexko 87504.1148 mamma (SO5)4274772 Phone (505)-827-5700, Fax (505)-827.5766 (303)427-1752 entringo wAsit January 3, 1997 Lyman Fogel Highway 41 P.O. Box 567 Stanley, NM 87056 RE: Open-Acreage Dear Sir: This letter is in reference to State Trust Land which has become available for leasing: Lots 1, 2, 3 and 4 of Section 36, Township 13N, Range 9E. You have been identified by our Land Use Specialist as one of the individuals who may be interested in applying for this acreage. These lands are to be leased through a restrictive sealed bid process between you and other interested parties. Also, we are aware of the fence that lies south of County Road 388. This fence was placed on this parcel of land approximately 4 years ago and appears to hairs been placed without authorization from the Commissioner. Please note that if you lose the competitive bid, you will not receive a compensation value for the existing fence and may be required to remove it. If you choose to bid, please complete and return the enclosed application, appraisement form, the $50.00 application fee and your first year's offered bid amount in the enclosed envelope as your bid is confidential. The appraisement needs to be executed by a disinterested party. Your sealed hid offer must be submitted by money order, cashier's check cr certified check and must be received in this office on or before 5:00 P.M. on Monday, February 3, 1997. The minimum amount offered shall be no less than $.71 per acre for a total of $60.18. Please note that the $50.00 application fee is non-refundable. If you have iii ifurther questions, please contact me at the above address or at Sincerely, Encl.. Suzie Jacquez Surface Resources SDNY_OM_00173522 EFTA_00 I 95 I 77 EFTA01305422 NEW MEXICO STATE LAND OFFICE APPLICATION TO LEASE STATE TRUST LAND The Commissioner of Public Lands P.O. Box 1148 Santa Fe, New Mexico 87504-1148 Purpose of application (check one): COMPETITIVE BID ".." OPEN ACREAGE (I/We), UB:.-/ vices/ ErreAp4.O95.; (name) 0. Box ST-86; -S72, ra-c Fes, fin e73-02.--vs-eg Telephone and not in e•au un er any s a e a term not to exceed five years, a described below. (address) having reached the age of majority ease, do hereby apply to lease for total of acres which is USE FOR COMPETITIVE BID PURPOSES ONLY: WITH THIS APPLICATION I/WE REMIT S AS TEE FIRST YEAR'S OFFERED RENTAL ON THE bssessasb MIS. IF AWARDED THE LEASE, I/WE AGREE TO PAY NO LESS THAN THE OFFERED aMODNT ANNUALLY FOR THE REMAINING TERM OF THE LEASE. SUBDIVISION SECTION TOWNSHIP RANGE ACRES 40-7--, 4 z, 9. S36 7/3 A/ Sot rloN /tog E Ito ef. ae Application fee $50.00 continued on reverse S-00 (revised 3/93) WO $10 8-21-96:1053 $50.00F1 89-84- SDNY_GM_00173523 EFTA_00 I 95 I 78 EFTA01305423 NEW MEXICO STATE LAND OFFICE APPRAISEMENT OF GRAZING AND AGRICULTURAL LANDS TO THE COMMISSIONER OF PUBLIC LANDS, SANTA FE, N. M. Sir: am well acquainted with the chancier of state owned lands as described on the back of this form, located in .5-Afta. County, New Mexico, together with statement of the natural character thereof and the condition thereof: CHARACTER OF LAND . The land is best adapted for grazing or agriculture Cai rns) There are natural streams, springs, ponds, and water holes as follows:. NOSE e-vs-r:ceo There are irrigating ditches on land as follows: nosits. "furl a CO Give depth of well nearest this land, and state location by section. township and range On said land there are Ate acres natural hay land; acres agricultural land, without irrigation. acres of irrigable land. acres In actual cultivation, and No acres timber land. State kind of timber, quality and present condition .errs -I • Ave 2- ow_ 7 aw tirse.naaaro -veysserr. Is then mineral or coal on the land? taste -sr . If so. state location. extent and kind of mineral The attached plat represents the location of said lands. the location of streams, springs, water sources and irrigation ditches, as well as the agricultuial. hay and grazing land, if any, also the improvements, and said map is made a part of this affidavit. IMPROVEMENTS House, give size and type of construction Value $ E s, stables and corrals Value 5 I give depth and description Value S Windmill Value 5 Fences. give amount and kind / pe•ics (4.1 ACH *Ear stye Avenn-st -::: irer, ca., ) Value $ Other improvements ova 044 peek Larva / Value 5 Total Value of improvements 5 of The first improvements were placed upon this section by Atate of After having personally inspected the within described tract of land. I HEREBY APPRAISE THE SAME at and state the ACTUAL CASH VALUE of same to be 4 Doc, -tilL par acre, and certify that I t interested in said land or leas- ing or sale thereof. Subscribed and sworn M before me this My Commission Expires: ai' 9 - '7 -4 a day of Signed P.O. Bits. /6,257 -Cannot a Ahlti 49731,er-r 45-3 S7. 009k 4-- x VIA° Notary Public . 19 Cte .P.,71Fa NOTE: The Laws of New Mexico requiie that all statements in appraisements must be made from per- anal knowledge. and not upon inforniatinn and belief:. sava,only those with reference to the actual value of the gland appraised. This appraisement must be sworn to before a Notary Public or other officer author- ized to.edminister oaths. 1-44(REV-1985) ( OVER ) EFTA_00195179 EFTA01305424 CONFIDENTIAL CA11-113gq) CPNF EFTA,01.9. EFTA01305425 This s a Patch I type separator sheet. 1) lilt iuuuiuim Fo m Type = ' Fie dReport" CODE 28 type txlet+do Portrait Feed New Form Follows... Printed on 7192001 11:52:44 AM tonight =an Irmo Profsts 1994-1999 SDNY_GM_00173526 EFTA_0011951181 EFTA01305426 CONFIDENTIAL DOCUMENTS PRIVILEGED AND CONFIDENTIAL MATERIAL - THIS MATERIAL IS NOT TO BE INCLUDED IN ANY LEASE, CONTRACT OR OTHER FILE OR RECORD AVAILABLE TO THE PUBLIC. IT MAY BE DISCLOSED ONLY BY THE EXPRESS WRITTEN ORDER OF THE COMMISSIONER. List of confidential materials redacted from this lease file: GR-2088 (A copy of this list may be provided to the public during inspection of public records) 1 Field report submitted by Marcus Garcia (MJG-815) dated Oct. 15, 1996 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 SDNY_GM_00173527 EFTA_00 I 95 I 82 EFTA01305427 NEW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT \i •b'' DATE TO FIELD DIVISION: 8-21-96 FIELD DIVISION CONTROL NO. Alvig-- REQUESTING DIVISION Surface Resources BY: Susie Jacques 4;5 1"7". LEASE NUMBER: TYPE OF REQUEST: Open-Arreage NAME OF LESSEE/APPLICANT: i Ublivion Enterprises ADDRESS P.O. Box 558(1. Santa Pe. NM 87502-558R DESIGNATED CONTACT Skim Whitson ADDRESS Same PHONE NO.471-5177 LEGAL DESCRIPTION SECTION: TWP. RGE. COUNTY: Tats 1. 2. 1. 4 36 11N CAR Santa PA 36-1A;Pa.-4,. spa NW4SR4 (0(1 07 Iota _iles-a7 ea:9- -1267,5 A-14 ,Santa Pp (aft/ (AZ 3R-1? REMARKS: Please provide t e following: Highest 6 Best use; Exhisting Range Conditions; Means of Public Access; Carrying Capacity(CC- worksheets are required); Improvements A their related value; Surrounding Land Ownership(Nane, Address, Phone I); Potential for Competitive Bid tit Direct Lease. DATE RETURNED TO REQUESTING DIVISION/BUREAU: /11/01h11, LAND USE SPECIALIST RECOMMENDATION: Agelloyvza` iteraes iceport.tAf. A,4014.044 !., p at ' AtAzi/ea:Onf • mjc, ..;,Ard kiihno 4:tot ne4 ak0 44-447,7-14(.42.04/16 azaksigiatiAitnizeriew )),24,1,41.S. 34: ea t , 74 eel Mu/ eti RECOMMENDATION APPROV : FIELD ISION [REQUES /0-073-1h• • I DO NOT APPROVE RECOMMENDATION: (PLEASE STATE REASONS) ION TAKEN BY REQUESTING DIVISION: DATE RETURNED TO LAND USE SPECIALIST: G-89 REVISED 1/91 SDNY_GM_00173528 EFTA_00195183 EFTA01305428 RAY roma, MS., D.V.M. COMMISSIONER OCTOBER 15, 1996 *ate of Xetv Commissioner of Fabric Tombs 310 OLD SAM FE TRAIL P.I1 887 1148 SANTA FE, NEW MEXICO 8750/./148 (SOS) en-ma FAX 005) 827476$ MJG -815 TO: . DWAIN GLIDEWELL, DIRECTOR; SURFACE RESOURCES DIVISION THROUGH: DENNIS GARCIA, DIRECTOR; FIELD OPERAT ONS FROM: MARCUS J. GARCIA, LAND USE SPECIAL FIELD OPERATIONS DIVISION SUBJECT: OPEN ACREAGE APPLICATION/UBLIVION ENT , INC. SYNOPSIS The application is to lease two separate and non-adjacent parcels, one with public access and one without. See REMARKS for recommendations. LEGAL DESCRIPTION Parcel 1. The NWNSEW of Section 2, Township 10 North, Range 9 East, N.M.P.M., Santa Fe County, New Mexico; containing 40 acres, more-or-less. Parcel 2. Lots 1, 2, 3, and 4 of Section 36, Township 13 North, Range 9 East, N.M.P.M., Santa Fe County, New Mexico; containing 84.86 acres, more-or-less. LOCATION These parcels are located in southern Santa Fe County. Parcel 1 lacks public access. However, the B. Anaya Road (C.R. 12-B) is located approximately M-mile to the south. There is an unimproved ranch road located on fee land (Adam/Daniel White) from the county road which does access the west side of the parcel. The range site is loamy and the condition has been ocularly estimated to be good which calculated to 16 head per section. County road 38-B offers direct access to Parcel 2. The three soils mapped for this parcel all have loamy range sites which were ocularly estimated to be in good condition. The capacity per section calculated to 11. HIGHEST AND BEST USE Highest, best, and current use is grazing. Parcel 2 may have a trend to residential, but this is speculative. RESOURCE MANAGEMENT. COMMERCIAL. (505)-827-5724, NUMERALS (505)-827-5744, SURFACE (505).827-5793PMOYMOIStga-5772, EFTA_00 I 95 I 84 EFTA01305429 OCTOBER 15, 1996 -2- MJG-815 IMPROVEMENTS For this report, the method used to estimate the accrued depreciation of the improvements is the Economic Age-Life Method which is a constituent of the cost approach in real estate appraisal methodology. In this, the ratio of effective age to total economic life is applied to the current cost of the improvement to obtain a lump-sum depreciation estimate. Parcel 1. Item 1. Approximately W-mile of three strand barb- wire boundary fencing with wood posts. Current Replacement Cost co $1.70 per foot $4,488.00 Total Economic Life 50 years Remaining Economic Life 5 years Effective Age 45 years Ratio 45/50=90% Less Total Accrued Depreciation $4,039.00 Depreciated Value of Fence $449.00 PARCEL 1. TOTAL DEPRECIATED VALUE - $449.00 Parcel 2. Item 1. Approximately 1.09 miles (5,780 feet) of four and five strand boundary fencing with wood posts. Current Replacement Cost a $1.70 per foot $9,826.00 Total Economic Life 50 years Remaining Economic Life 20 years Effective Age 30 years Ratio 30/501=60% Less Total Accrued Depreciation $5,896.00 Depreciated Value of Fence $3,930.00 Item 2. Approximately 500 feet of four strand cross- fencing with steel posts. Current replacement cost A $1.70 per foot $850.00 Total Economic Life 50 years Remaining Economic Life 46 years Effective Age 4 years Ratio 4/50-8% Less Total Accrued Depreciation $68.00 Depreciated Value of Fence $782.00 PARCEL 2. TOTAL DEPRECIATED VALDE - $4,712.00 REMARKS Parcel 1 abuts fee land on all sides and is fenced within the ranch unit of Adam and Daniel White. According to records at the Santa Fe Co. Assessor Office, the adjacent landowners to the south and east is the New Mexico Boy's Ranch. Approximately M- mile of an unimproved ranch road on property belonging to the White's must be crossed to access the subject. To the best of my knowledge, the applicant lacks access over this W-mile of roadway which may negate Ublivion as a legitimate competitive bidder. However, it is possible that access can be obtained, and so it is my recommendation to delay any competitive bid scenario until the SDNY_GM_00173530 EFTA_00 I 95 I 85 EFTA01305430 OCTOBER 15, 1996 " -3- A 4? Pd. %-/ applicant can or can not obtain access to the subject. If access can not be obtained then it is recommended to restrict the bidding to the three landowners listed below. If it is obtained, then the applicant should be included on the bidding. Adam/Daniel White P.O. Box 115 Stanle , NM 87056 New Mexico Boy's Ranch le-247a 4 11/4-el MJG -815 6209 Hendrix NE zte;1:: 1 let tiAt/.. .?' Albu uer e, NM 87110 4 1 The New Mexico Boy's Ranch recently assigned GM-1811 (Sec. 36, T 11 N, R 9 E; 640 ac.) to Lamar and Virgie Cravens, which may or may not mean that they now are the abutting landowner to the south and east. Therefore, since they now lease 640 acres, it may be worth the effort to include them in the bidding. Their address is: Lamar B. and Virgie Miree Cravens P.O. Box 714 Moriart , NM 87035 Sa.2. J._fr `e e a - :a. • ly , Parcel 2 is fenced within the confines of the Zorro Ranch (GM- 2791, 1,158.97 acres). Ranch spokesman, Lyman Fogel, indicated that he did not realize that this property was state trust land and would like to be included in the bid procedure. Therefore, it is recommended to offer this parcel at a separate bid to the applicant and the Zorro Ranch at the following address: C/O Lyman Fogel Highway 41 P.O. box 567 Stanley, NM 87056 Note that the fenceline constructed proximately four years ago (Item 2 for Parcel 2) appears to have been placed without authorization from the Commissioner. MJG Attachments SDNY_GM_001735.3i EFTA_00195186 EFTA01305431 PHOTOGRAPHS - MJG-815 Parcel 1-Sec. 2, T 10 N, R 9 E. Looking north from the southwest corner of the subject property. Note the three wire fence with older wood posts suggesting functional obsolescence and physical deterioration, both curable. Parcel 1. Looking northeast from the extreme southwest corner of the subject property. EFTA_00195187 EFTA01305432 PHOTOGRAPHS - MJG-815 Parcel 1. Looking northwest from the extreme southeast corner of the subject property. Again, note condition of fence. Parcel 1. Looking west from the extreme northeast corner of the subject property. EFTA_00195IRS EFTA01305433 0 0 PHOTOGRAPHS - MJG-815 Parcel 1. Looking southwest from the extreme northeast corner of the subject property. SONYGM0 0173534 EF1'A_00195189 EFTA01305434 PHOTOGRAPHS - MJG-815 Parcel 2-Sec. 36, T 13 N, R 9 E. Looking south from C.R. 38-B to the subject property. Note the four wire fence with steel posts which is located to the south of the county road. This fenceline was apparently constructed without authorization from the Commissioner. Parcel 2. Looking west from the county road as it encumbers the subject property. Note the boundary fencelines on both sides of the roadway. EFTA_00 I 95 I 90 EFTA01305435 PHOTOGRAPHS - MJG-815 Parcel 2. Looking southwest from county road 38-B. Parcel 2. Looking south from County Road 38-B showing the boundary fenceline between the subject property and the landowner to the west. EFTA_00195191 EFTA01305436 UM I. S UM 1:-1 DEPARTMENT OF THE INTERIOR GEOLOGICAL SURVEY 1 • 30' 37ebN 285 284 283 - •1O ii 9Z 57. 30' 113 94 95,, 1.....-* . 1 II 0 • t A .._ i \ . 0%.-. ( ... , .... tN. • c r ( -23 ../ .A., .‘ 1-1 • --‘ ( . 4 t: • .. 1/4, • .. - 1 I . e 7 • . . % . • • et ..,- gilt. ete . ./ ....N......... • it2 I • • ini \ -. • 1 op. (I) 0 . ... a, iv ..t..... .....,. :Tr: • • . 1 / i .........1) . 1 ' it te • • • ON • • I N IN: ...2 o a • I .: . oi.. -, Cr ..• .... . . •• • ..... 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CAPACITY PEµ SECTigN / GU VE 2 40 coo e 6 7 J SI" 2* 1.0,7< Y if ? 457 /n /4 /‘ 0-76e/07,Ai CP- R 1:--r-ce( i: /2)11 9E gde% WEL /..?"' /re r 2 --, 4 R m o / S2 75 // v ?c. x / 4 2 Ai Cup- .2 lat-c. / -2 O , 2• O ._‘.. 5 • Conversion Factor . 640 Acres / STATE CROSS ACRES gN4? (Rev. W0S) EFTA01305439 EFTA_00195195 EFTA01305440 # Ire Hogback • tbNY_GM EFTA 00195196 EFTA01305441 umiuIIipu 1,1)1 I ,111 SDNYGM_00 173542 EFTA_00195197 EFTA01305442 z k rt. h. ?1/41 • • 003 OZ. I *MS „ „, e ace exc. eee• *es r • * • Mot •••• \L A - . I so* iame sal SI Ina •••••• Val•••••••• ..10.••••••••••IMISIII•••••• ••••••••••••110611111•11••••••••••• IS• 0•41.~•••••1”. ••••••INIIIPI 4.141•••••••••••••••••••••••• onial•mt.•••••• la• I: • t ; . s ari • • r.1•• • aZik- • "e 3. • • • • U SDNY_GM_00173543 EFTA_00195198 EFTA01305443 U = WO{ OW 0: I GOD 010. COO( CCC eft.1 E a 11 an ...04•••••••••••••••=11.••••••••••••••••••••••••••••••••••••• VAS In.,. was v." 0.•••••••••••~011•11.1101.11.0•1.••••• ••••••IIINS mamma ••••••••••• SONY_GM_00173544 EFTA_00195199 EFTA01305444 4 II ...! ^ .. .... so r i de i, •••••• 1 • .1/. I I. " ar • .' Z !/. p „4, .. I ' •I • e ... .... ' I .. ••• ; ; i i. it es .. 4 A 11 . " I .. .. SU . ..I .1.• r '• • 4 • .. m in) ..11....g : - . , os < -a• . 4. 4 ••••F ..,.••••• i ,. av . 4 14•4 . .. ••• • ...a. Afar . V:. •C ti. , ... • ••• r r p 0 A u r a 4. 1 II II "I" SDNY_GM_00173545 EF1'A_00195200 EFTA01305445 I OZ56 I 00-VId3 /binges ere 94 1-914 ,66 Cariemore•ase it 7- S- 775 Fifty WACO fan! INC ['ME A2C01105 oCIP3N Pow arr. 7 .-.7....yde as r. ...-. e- -%7liagi ieg O• 4 . Wile/ • -' e, •. el- actl / 7 r or 0 0 O0o to 6k • Ru_ : ins 0 COMM& 12•Cor‘ 0 0 0 bb 0 0 0 0 0 'a 0 0 rob A ( bericas& o o o o a. o 0 o O 0 a . o ot o O 0 ,0 o o 0 • o • o 0 o 0 .0 0 0 o o o: 0 0 010 IL o o 1 ti Z5- o . to o o o o o o 0--OnSar o 0 0 o o op No 0, D o 0 o 0 oc O o O ci-.i Co pimeabenclhar: 0 t aws Suisun 34111MOVOMOM 11/1111111 MO to File 6. Address Change 7. Sublease I. None* 9. Field Apt 10 (Moor& Carmen &Wud N Maas Okla nail. apt aliMMEtat 20. New Lane 21. Sublease aaL- 1 S.4 4 441 maw:Law= 40. New Lease ItiLikCAS 60. Communizenon ItS.00.1 7tli. New Lease !tam BO. Atrium Cl EFTA01305446 ! ' - iv f -. .. al I I :' I.) F.".. IO 1O -, .. . ., . • I , 5 • '• I .3• 7.. ‘ .i" ; . I I I a i • • Halt ' ! 1 • i — 2 7 Ils —, • fk : I i ! I i • • i .rec Z i :\• .t* r • 914 i : I 'fa . .:' , t1.*I t ' t I 1 I H i .. .;121. l ib ere . ) I I ......4 . ; : -• 1; 4. .;.! 4 .. .1. ;; .,-; ,.. -.,„ : , is ...._ : -,1 :- ; : --, 14'.. • —. u 1.. .„ • ,.; ) I kit ct,i -ti l c: , . 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Swir 2 0 800:at%t r• .end SONY_GM_00173547 EFTA 00195202 EFTA01305447 SDNY_GM_00173548 EFTA_00 195203 EFTA01305448 AGRICULTURAL LEASE - GR2122 COMPLETE LEASE FILE CONTENTS SDNY_GM_00173549 EFTA_00 195204 EFTA01305449 RECORDS' cTION FORM LEASE cOES6 I 00Vin 099£21.00 WSJ MVOS -- L.,_- Request Date Change Requested By Code it Pages Post Scan MF Arc Received By Change Status Date Scan Date Initials Approved Date Co e Crii — ig —t..)t_ticla.) O. 7 3 L-- , c3 C.- P. 5+ AV C? /0 1.--- 40- 7..- 4---j- /4f -3-7,1c -.Six s " -In) / rig' ,----rr e ' M-IP Votfil titc—th ,DA IA.*/ C' -? 2 X. /04 sick ,, •. ., ,, ,), , 7 ? x jec,t". . 0? ' l• k `‘ It " 10 1 X tv kit a bp rc (c A, i,frhin-is-I4 911-1. 1. Contract 2. Memo to file 3. Improvements 4. Assignment S. Notes to file 6. Change of Address 7. Sublease 8. Notice 9. Field Report 10. Genera) Corresp. 11. Bid EFTA01305450 ;Takife", its A • 4,4 • Aubrey Dunn, Commissioner of Public Lands State of New Mexico APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL OUT IN INK) PC ra 7° I/We, 21E2t3 r•S §(mailing address) 14.9k §under Agriculture Lease No. 113, C granted by make application to sublease the lands described as follows: , of NM 11O5(3 being lessee(s) e Commissioner of Public Lands, do hereby SUBDIVISION SEC. TWP. RANGE ACRES aloase c:ske t E)401 Q a IctcLA ide AD If additional space is needed to describe legal subdivision, CP a please attach additional sheet using the above format -"Please give name ofkublessen and mailing itch-kegs. fir04 . N ir? Ji/ StielinaLZ o R cp It being understood that said permission td' sublease does not in any way relieve me/us from obligation assumed under the lease stated above. Sublease term on the designated lands to commence October 1, 20 ib , and to expire on September 30, 20 n , (Sublease cannot be given bey nd expira of lease.) • Give reasons this land is being subleased: The number, type, class of livestock, and period of use, are as follows: LIVESTOCK NO. KIND Cart S CLASS Ar riffs °SS PERIOD OF USE FROM TO ' 5-01 (Revised 10/2015) p, t..., 2 it f2) tdd 12 a nffipcgrioN FEE $100.00 LAiJO SUSPENSF 4 23- Sr -I6 7 SDNY_GM_00173551 EFTA_00 I 95206 EFTA01305451 . o LEASE NO: GR2122 SUBDIVISION EXHIBIT A SEC-TWN-RNG ACREAGE U PRICE S PER E UNIT CAR CAP LOT1 SW4NE4 ALL LOT2 52NW4 RENEWAL LEASE LOT3 SW4 LOT4 LOT7 02 12N 09E 02 12N 09E 16 12N 09E 238.97 G 280.00 G 640.0D G TOTAL ACREAGE: 1,158.97 TOTAL RENTAL: 12 12 12 5751.51 LEGEND: USE TYPE CODES C- CONSERVATION RESERVE PROGRAM IRRIGATED CROPLAND, M* 2= DRYLAND FARMING (BID), .3• Fin 1/2 SOUTH FOR TOWNSHIP, He LAND, Din DRYLAND FARMING, MOBILE nom ON LAND, R= RSIP LAND, IRRIGATED* CROPLAND(BID) 4= CRP(BID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS 80 h LJ a W 110? G= GRAZING, 1= GRAZING (BID), 5= RSIP(BID) , SDNY_GM_00173552 EFTA _00195207 EFTA01305452 NEW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT DATE TO FIELD DIVISION: 09/27/2016 REQUESTING DIVISION, Agriculture LEASE NUMBER: OR 2122 101 FIELD DIVISION CONTROL NO: JUL251 BY: Danny Sandoval TYPE OF INQUEST: Sublease Renewal NAME OF LESSEE/APPLICANT: CYPRESS INC., A VIRGIN ISLANDS CORPORATION ADDRESS: 49 ZORRO RANCH ROAD, STANLEY, New Mexico, 87056, NAME PRONE ADDRESS EMAIL CYPRESS INC., A VIRGIN ISLANDS CORPORATION 5069113401 49 TORSO RANCH ROAD STANLEY, NM 37056 LEGAL DESCRIPTIONS TWP ENO SEC COUNTY 1,2,1,4,7,132NM4,SW4 NE4,SN4 12N 09E 2 Santa Fe ALL 12N OBE 16 Santa Fe REMARKS: DATE RETURNED TO REQUESTING DIVISIO1f/IUIEAU: 11/07/2016 Recommendation Supervisor Recommendation Approval recommended to renew sublease on GR2122. ACTION TAKEN BY AZQUESSINO DIVISION: Approve Sublease Renewal per DRIP. recomeendation. 11/8/2016 DNB APPROVE RECOMMENDATION: (FIELD DIVISION) ELECTRONICALLY APPROVED: 11/07/2016 Kenneth Baca (REQUESTING DIVISION) ELECTRONICALLY APPROVED: 11/08/2016 Danny Sandoval REWISTIP30 DIVISION SUPERVISOR coMMENT: Approval of the Sublease Application to roconmended for a one . (1) year term. October 1, 2016 - September 30, 2017 11/10/2016 LN APPROVE RECOMMENDATION: (REQUESTING DIVISION SUPERVISORI ELECTRONICALLY APPROVED: 11/10/2016 Lucille Martinez CHECKLIST 241. If acreage is in poor condition, please provide trannects. 242. Please advise on range conditions using an ocular estimate approach. 243. Please inspect and make your recommendations. 244. Please provide a ranch map and Indicate where the state land Lice in relation to the private land. 24S. Plume provide other pertinent information regarding this subteen°. 246. Please verify how much acreage in being subleased and to whorl? SDNY_GM_00173553 EFTA_00195208 EFTA01305453 Aubrey Dunn COMMISSIONER State of-New Mexico Commissioner of Public Lane 310 OLD SANTA FE TRAIL, P.O. BOX 1148 SANTA FE, NEW MEXICO 87504.1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827.5766 www.nmstatelands.org November 4, 2016 JUL-251 TO: Lucille Martinez, Assistant Director Surface Resources ATTN: Danny Sandoval, Management Analyst THRU: Kenny Baca, Assistant Director Field Operations FROM: Jason Lithgow, District Resource Manager Santa Fe District Office SUBJECT: Sublease Renewal: GR-2122 Cypress Inc. Date Received: September 27, 2016 SYNOPSIS This field report address's the sublease renewal appNcation for grazing lease GR-2122. GR-2122 consists of 1,158.97 acres and is located in Santa Fe County. Cypress Inc wishes to sublease the total acreage to Ernest Ortiz & Steve Chavez. A field visit was conducted on November 04, 2016. SDNY_GM_00173554 EFTA_00 195209 EFTA01305454 JUL-261 No%ember 4. 2016 LEGAL LAND DESCRIPTION A tract of land containing 1,158.97 acres, more or less, and allocated by forties as follows: N.M.P.M. Section Quarter/Quarter Township Range County 02 Lots 1,2,3,4,7, S2NW4 12N 09E Santa Fe 02 SW4NE4,SW4 12N 09E Santa Fe 16 ALL 12N 09E Santa Fe LOCATION 310 Old Santa Fe Trail Santa Fe, NM 87501 Continue to NM-466 S/Old Pecos Trail 6 min (2.1 mi) Follow 1-25 N/US-285 S and NM-41 S to Zorro Ranch Rd 34 min (31.8 mi) Turn right onto Zorro Ranch Rd Destination win be on the right 2 min (0.5 mi) 1-107 Zorro Ranch Road Stanley, NM 87056 SITE/PHYSICAL DESCRIPTION This site Is rural rangeland. Adjoining lands are used for livestock grazing, and wildlife habitat Vegetation consists of short and mid native grasses, forbs, and shrubs. REMARKS A field visit was conducted on November 04, 2016. No issues were found that should stop this sublease. I recommend approval of the sublease. This will continues sound management on the subject tract JUL-251 2 November th 2018 SDNY_GM_00173555 EFTA_001195210 EFTA01305455 JUL-261 Nowmber 4, 2016 241 - If acreage is in poor condition, please provide transects. Transects were not requited at this time. 242 - Please advise on range conditions using an ocular estimate approach. The range conditions were fair using an ocular estimation approach. The ranch runs a total of 40 cows on 10,000+ acres. 243 - Please inspect and make your recommendations. The ranch is in good order, I recommend approving this sublease. 244 - Please provide a ranch map and Indicate where the state land sits In relation to the private land. See attached maps. 245 - Please provide other pertinent information regarding this sublease. The subject tract is in good shape with no issues to report. 246 - Please verify how much acreage is being subleased and to whom? The entire grazing lease is being leased to Emest Ortiz & Steve Chavez. JUL-261 3 Naernber 4, 2016 SDNY_GM_00173556 EFTA_00 1952 I I EFTA01305456 JUL-251 APPENDIX A: PHOTOS Pic 1. GR-2122 JUL-251 4 November 4, 2016 Nowmbor 4, 2016 SDNY_GM_00 173557 EFTA_00 I 95212 EFTA01305457 JUL-251 Plc 2. GR-2122 JUL-251 5 No \ember 4, 2016 Nowmber 4, 2016 SDNY_GA4_00 173558 EFTA_00195213 EFTA01305458 0 JUL-251 Pic 3. GR-2122 JUL-251 6 November 4, 2016 Nowmber 4, 2016 SDNYGM00173559 EFTA_00195214 EFTA01305459 JUL-251 APPENDIX B: MAP GR-2122 New Mexico State Land Office Trail Laid Stmn II Ili al I: l• -Ile art.. 11 1.4•.•• II SLIM' am... One JUL-251 7 Nmember 4, 2016 ne).. Yawls Isattbpiamea seseonsWie • IWO^ web ref eon *Ian Mark. as a ediriel d• pn•Mares. • keeLsdavielelens• O. Seim La Lanny Ana Ignentar• 604 al• seas Cattgrapbts ham tio Whit I Conri. • ISO &sin* Gra - OnSearts4., Lad Caw ••••• ions Roby> O &Ow. — M Sant — a, no Morinvetiolboatmesi a.— Stalls Der dArImbin Dwasmadimat theassatin a OM Nods less a MS ROA Leo -71 Syr bAsatan htli Swim, CillealSoultaar• Y.•aa tame swim...Mall es November 4, 2016 SONY GM_00 173560 EFTA_00195215 EFTA01305460 Aubrey Dunn COMMISSIONER Cypress Inc. 49 Zorro Ranch Stanley, NM 87056 tenefire State of *w Mexico Commissioner ofPudric Lana 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE NEW MEXICO 81504-1148 Re: State Agricultural Lease OR-2122 Sublease GR-2122-101 Dear Lessee(s): Please find enclosed a copy of your approved sublease application. commenced on October 1, 2016 and will expire on September 30, 2017. If you have any questions our lease, please feel free to contact Mr. address above or at Sincerely, Aubrey Dunn Commissioner of Public Lands AD/ds End. COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org November 10, 2016 Your sublease will Danny Sandoval at the SDNY_GM_00173561 EFTA_00 I 95216 EFTA01305461 . • . NEW MEXICO STATE LAND OFFICE COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 1148, SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GR2122 THIS LEASE, DATED OCTOBER 01, 2016 , IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW MEXICO, HEREINAFTER CALLED . 'LESSOR' AND: CYPRESS INC., A VIRGIN ISLANDS CORPORATION HEREINAFTER CALLED "LESSEE(S)", WHOSE ADDRESS OF RECORD IS: 49 ZORRO RANCH ROAD STANLEY, NM 87056 LESSOR AND LESSEE AGREE AND COVENANT AS FOLLOWS: 1. TRLSE, FOR AND IN CONSIDERATION OF AND SUBJECT TO THE RENTALS AND THE TERMS, COVENANTS, CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE AND ALI OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSEE TAXES FROM LESSOR THE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. THIS LEASE IS GOVERNED BY 19.2.8 NMAC(RULE B). 2. TERM. THE TERM OF THIS LEASE SHALL BEGIN ON OCTOBER 01, 2016 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 2021. 3. RENT. THE ANNUAL RENTAL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NMSA 1978 AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN THE STATE LAND OFFICE ON OR BEFORE OCTOBER 1. THE ANNUAL RENTAL FOR GRAZING LAND SHALL BE DETERMINED AS FOLLOWS : ANNUAL RENTAL gm BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY SLO RULE 8 "RELATING TO AGRICULTURAL LEASES" (19 N.M.A.C. 3, SLO 8.11). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OF THE EVI,FOR EACH SUCCESSIVE YEAR OF THE LEASE TERM,BE DECREASED OR INCREASED BY MORE THAN THIRTY-THREE AND ONE-THIRD PERCENT.IN THE CASE OF GRAZING RENTAL OFFERS ON OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID, LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL GRAZING RENTAL DUE IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, ASSOCIATED LAND AND CONSERVATION RESERVE PROGRAM LAND SHALL BE DETERMINED BY LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERM OF THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. 4. PERMITTED USE. LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AND IN ORDER TO COMPLY WITH ALL APPLICABLE PROVISIONS OF LAW REGARDING THE CARE AND PROTECTION OF THE LEASED PREMISES. OE II LEc,, bit 41U4 LAND SUSPENSE 3 M6L0 001-00003 31 0 01 -AUG -16 09:15 1562.36 SDNY_Ght00173562 EF-EA_00195217 EFTA01305462 5. LIEN. AS SECURITY FOR THE PAYMENT OF ANY RENT THAT IS OR MAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL BE PLACED ON THE LEASED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR. ALL IMPROVEMENTS PLACED 0 THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED A UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH THE APPLICABLE LAWS AND RULES. 7. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE THE LEASED PREMISES OR THE IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY LEASE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT BE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. 8. COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY BE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OF THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OF A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT TH1 CANCELLATION OF THE LEASE AND TERMINATION OF THE COLLATERAL ASSIGNMENT FOR THE NONPAYMENT OF RENTALS OR OTHER VIOLATIONS OF THE LEASE TERMS. 9. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF THE TERMS, CONDITIONS, OR COVENANTS OF THIS LEASE OR THE NONPAYMENT BY LESSEE OF THE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THE COMMISSIONER BE CONSIDERED A DEFAULT AND SHALL CAUSE THE CANCELLATION OF THIS LEASE 30 DAYS AFTER LESSOR RAS SENT WRITTEN NOTICE OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OF COLLATERAL ASSIGNMENTS BY REGISTERED MAIL, ADDRESSED TO THE POST OFFICE ADDRESS OF RECORD, PROVIDED, HOWEVER, IF WITHIN THE THIRTY DAYS THE LESSEE OR HOLDERS OF ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN THE NOTICE, CANCELLATION SHALL NOT BE MADE. 10. RENEWAL. ANY LESSEE WHO DESIRES TO SECURE A NEW LEASE SHALL MAKE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OF THIS LEASE. THE RIGHT OF RENEWAL SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS PROVIDED FOR BY LAK AND RULE. 11. RESERVATIONS. A. LESSOR RESERVES THE RIGHT TO EXECUTE LEASES ON THE LAND GRANTED BY THIS LEASE FOR MINING PURPOSES AND FOR THE EXTRACTION OF OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND THE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS OF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORTI- CULTURAL PRODUCTS AND TO GRANT SUCH OTHER RIGHTS-OF-WAY AND EASEMENTS AS PROVIDED 00 IT Wb 82 111P 9ICZ ' \.)4 I1 r.) • 1;?•4•1•TIC SDNY_GM_00173563 EFTA 00195218 EFTA01305463 BY LAW. B. LESSOR RESERVES THE RIGHT TO WITHDRAW PURSUANT TO RULE, UP TO 640 ACRES, BUT IN NO CASE MORE THAN HALF, OF THE LAND HELD BY TH:S LEASE. 12. COMPLIANCE WITH LAWS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OF LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES WHICH HAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL MATTERS AND THINGS AFFECTING THE LEASED PREMISES AND OPERATIONS THEREON. SUCH OTHER AGENCIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALL SAVE AND HOLD HARMLESS, INDEMNIFY AND DEFEND LESSOR AND THE STATE OF NE! MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND FROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OUT OF OR ALLEGED TO ARISE OUT OF OR INDIRECTLY CONNECTED WITH THE OPERATIONS OF LESSEE UNDER THIS LEASE, OFF OR ON THE LEASED PREMISES OR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NOT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. 15. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE OF ANY OF THE TERMS, CONDITIONS OR COVENANTS OF THIS LEASE SHALL BE HELD TO BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID OR BINDING UNLESS THE SAME IS IN WRITING AND SIGNED BY LESSOR. 16. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OF INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE FROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 18. SUCCESSORS IN INTEREST. ALL TERMS, CONDITIONS AND COVENANTS IN THIS LEASE SHALL EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST OF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE LESSOR RESERVES THE RIGHT DURING THE TERM OF THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MAKE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS MAY BE REQUIRED. 20. SURFACE DAMAGES NOTIFICATION. 00 II WU 13Z '13.91Ci SDNY_GM_00173564 EFTA _00195219 EFTA01305464 PURSUANT TO 19.2.B.21 NMAC, IF LESSEE IS INVOLVED IN LITIGATION WITH ANY OTHER PERSON OR ENTITY FOR DAMAGES CONNECTED WITH THEIR LEASED TRUST LAND, LESSEE MUST NOTIFY THE COMMISSIONER AS SOON AS PRACTICABLE. THIS NOTICE REQUIREMENT DOES NOT APPLY TO LITIGATION INVOLVING ONLY THE LESSEE'S PERSONAL OR REAL PROPERTY. 0211 • tl V .Mn SDNY_GM_00173565 EFTA 00195220 EFTA01305465 I/WE CERTIFY THA LESSEE SIGNATURE REFERENCED ON THE FACE PAGE OF THIS LEASE. LESSEE SIGNATURE I..ES -C TELEPHONE EMAIL TELEPHONE " `•,••+''''' EMAIL I. • 1;, . - i :7:: SSIONER OF .PUBLrIt Nfolkiltke ;09 ACKNOWLE TS NATURAL PERSONS) STATE OF NEW MEXICO COUNTY OF • ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF BY (NAME OF LESSEE ACKNOWLEDGED) MY COMMISSION EXPIRES: ••••`..,# ...A -7. '''''' '''''''''' • 20_, NOTARY PUBLIC STATE OF NEW MEXICO ) PARTNERSHIP COUNTY OF THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF 20, , BY (NAME OF PERSON ACKNOWLEDGED) PARTNER(S) ON BEHALF OF MY COMMISSION EXPIRES: A PARTNERSHIP. NOTARY PUBLIC N)Eu3CO2.Y. STATE OF -NEW-MBH-1-642- ) COUNTY OF h3C.b.73 ‘1021.... ; THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS 02±DAY OF BY Tir-cgnew psiter. Pees coletA4- immit OF OFFICER) ((TITLE OF OFFICER) C re a ie. (CO. i i .." e • A US \I:VV. TI Ida leck CORPORATION, ON BEHALF (CORPORATION NAME) OF SAD CORPORATION. MY COMMISSION EXPIRES: )(3\ILA‘ce 02 1 1 Wu CORPORATION ‘: • ‘‘ I.1 F. A 'i ' • °, - • : • care:. cs...cir. • 1o,1.+tc12_: i 1- • • Os ' OF.NE\ ankh) (*Aida/ NOTARY PUBLIC MAINE AVOW NOTARY FIRMLIC•STATI OF NEW YORK No. MAY6313114. Oualllind In Richmond County Mr compost°. holm October II, 2012 2O1(a_, OF SDNY_GM_00173566 EFTA_00195221 EFTA01305466 NEW MEXICO STATE LAND OFFICE APPRAISEMENT OF GRAZING AND AGRICULTURAL LANDS COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING PO BOX 1148, SANTA FE, NEW MEXICO 87504-1148 LESSEE: SECTION 10 OF THE NEW MEXICO ENABLING ACT SPECIFICALLY REQUIRES THAT ALL STATE LAND TO BE LEASED BE APPRAISED AT ITS TRUE VALUE. STATE LAW, UNDER SECTION 19-7-1 NMSA 1978, FURTHER PRESCRIBES THAT SUCH APPRAISEMENT BE SECURED BY THE LESSEE WHEN ACQUIRING A LEASE AND THAT SUCH APPRAISEMENT BE COMPLETED BY A DISINTERESTED PERSON. THE INSTRUCTIONS FOR THE COMPLETION OF THIS FORM ARE SET OUT BELOW. APPRAISEMENT INSTRUCTIONS: THIS INFORMATION MUST BE COMPLETED BY A DISINTERESTED PERSON AND BASED ON THAT INDIVIDUAL'S INFORMATION AND BELIEF. THIS FORM CANNOT BE COMPLETED BY A LICENSED APPRAISER. (NMSA 1978, 61-30-16). YOU CANNOT PAY TO HAVE THIS FORM COMPLETED. (NMSA 1978, 60-30-3A). THE LAND MUST BE APPRAISED AS VACANT, I.E. WITHOUT IMPROVEMENTS, FOR BOTH SALE AND LEASE PURPOSES. IT MUST ALSO BE SIGNED BEFORE A NOTARY PUBLIC. I, DO SOLEMNLY SWEAR (OR AFFIRM), UNDEF THE PENALTIES 0 PERJURY,. nXHAT AFTER HAVING PERSONALLY INSPECTED THE TRACT(S) OF LANE CONTAINED IN LEASE NO. tr.C.- 2 / 7.2 AND DESCRIBED IN EXHIBIT A OF SAID LEASE,...._THAT MY OPINION OF THE APPRAISEDgIgitVALUE OF SAME (WITHOUT IMPROVEMENTS) IS $ PER ACRE, IF SOLD, AND $ PER ACRE, FOR LEASE PURPOSES, AND CERTIFY THAT I AM NOT INTERESTED IN SAID LAND FOR LEASING OR SALE THEREOF. SIGNED ADDRESS raaA7 4. /'j 7&' CITY/STATE A640471triff "Awe iya9,-- SUBSCRIBED AND SWORN TO BEFORE ME THIS a5.11_ DAY OF - MI/ 2D U. MY COMMISSION EXPIRES: ll 10-9- 02 TT 1J8 ga 7firi 2103 T PUBLIC SDNY_GM_00173567 EFTA 00195??? EFTA01305467 • • • EXHIBIT A LEASE NO: GR2122 SUBDIVISION SEC -TWN-RNG ACREAGE U PRICE S PER E UNIT CARR CAP L0T1 SW4NE4 ALL LOT2 S2NW4 RENEWAL LEASE LOTS SW4 LOT4 LOT7 02 12N 09E 02 12N 09E 16 12N 09E 238.97 G 280.00 G 640.00 G TOTAL ACREAGE: 1,158.97 TOTAL RENTAL: 12 12 12 $1,562.36 LEGEND: USE TYPE CODES C= CONSERVATION RESERVE PROGRAM I= IRRIGATED CROPLAND, M= 2= DRYLAND FARMING (BID), S' B- 1/2 SOUTH FOR TOWNSHIP, H= LAND, D= DRYLAND FARMING, MOBILE HOME ON LAND, R= RSIP LAND, IRRIGATED CROPLAND(BID) 4= CRP(BID) 1/2 EAST FOR RANGE 4, CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS o? TT Liu sa °NZ G= GRAZING, 1= GRAZING (BID), 5= RSIP(BID) SDNY_GM_00173568 EFTA 00195223 EFTA01305468 IMPROVEMENT LISTING FOR EXISTING LESSEE'S RENEWAL APPLICATION The State Land Office Rule Relating to Agricultural Leases, 19 N.M.A.C. 8.9.2.2. requires you to submit a listing of your improvements located on the state leased land held under fh& lease with your application. LEASE NUMBER a ea t as (Rase check one dery boxes) DO IMPROVEMENTS EXIST ON STATE LAND: YES NO ASE LIST BELOW. All improvements must be listed even if they are on record with our office. LOCATION S Inclusion of unauthorized improvements on this listing or any appraisal submitted to the Commissioner for any purpose shall not be interpreted as approval of those improvements by the Commissioner. (19 N.M.A.C. 8.9.11) This office will reject your renewal tease application if this form is not completed. The information provided above is true and correct to the best of my knowledge. Please sign and date. Lesseaignatu Date: 1 1 ether im rovements exist or not " Lessee Signature SDNY_GM_00173509 EFTA _00195224 EFTA01305469 RECORDS / -TION FORM LEASE # -Z/ - „ - -14gra sitr,. .1k are.: 1 ii:::-4:,_,1( r.:4.-.4... Laza-7x - *•. •.-1-----'''-- # - Request Date L ange Requested By Code # Pages Post Scan MF Arc Received By Change Status Date Scan Date Initials Approved Date Co e 6-11- fii -..\G>tast4 a. 7 3 4..-- c-3 C c P.54- ,4/' 9 /0 I.^ cl V !if 7— /...---- to tif-9-7:C ,Soc i porriNi / r6 1"-----‘------ ,W) ./4•0 !Up) fl IS --ik ,bc..A... C. 3 X /(14 Smartt . I. •. ., It f X jecx... 61.10 I. .. ., ,, " t 0 I X wbrnit. a ter r c- ct -^/ AlliliC 114544 pi. citc6 I 00-Vin 1. Contract 2. Memo to file 3. Improvements 4. Assignment S. Notes to file 6. Change of Address 7. Sublease 8. Notice 9. Field Report 10. General Co resp. 11. Bid EFTA01305470 f i i The number, type, class of livestock, and period of use, are as follows: NO. KIND CLASS FROM TO ,.. IllitailIMMIIIMell IIIIIIIIIKNIMIMMI I l/ We, . . 5' `.tea • '64 Aubrey Dunn, Commissioner of Public Lands State of New Mexico APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL OUT IN INK) 3. !PC. (mailing address) I1 keik ,--under Agriculture Lease No. granted by e Commissioner of Public Lands, do hereby make application to sublease the lands described as follows: l , of . NM 1-101) being lessee(s) SUBDIVISION SEC. TWP. RANGE ACRES ( Azta. kike Do El lesU C\ oladila INdie-col If additional space is needed to describe legal subdivision, please attach additional sheet using the above format address: It being understood that said permission td' sublease does not in any way relieve me/us from obligation assumed under the lease stated above. Sublease term on the designated lands to commence October 1, 20 Ib , and to expire on September 30, 20 11 , (Sublease cannot be given be nd exp to of lease.) z) (02,1Oth 19I2PSS. G(Uatr9 Give reasons this land is being subleased: PERIOD OF USE , S-01 (Revised 10/2015) 0 0 • 0 0 0 0 = cirf2) kid tz dater' ATION FEE $100.00 L Mal& OL, Et55. 97 SDNY_GM_00173571 EFTA_00195226 EFTA01305471 EXHIBIT A LEASE NO: GR2122 SUBDIVISION SEC -TWN-RNG ACREAGE U PRICE S PER £ UNIT CAR CAP LOT1 SWINE4 ALL LOT2 S2NW4 RENEWAL LEASE LOTS SW4 LOT4 LOT7 02 12N 09E 02 12N 09E 16 12N 09E 238.97 G 280.00 G 640.00 G TOTAL ACREAGE: 1,158.97 TOTAL RENTAL: 12 12 12 $751.51 LEGEND: USE TYPE CODES Ca CONSERVATION RESERVE PROGRAM Ia IRRIGATED CROPLAND, Ma 2a DRYLAND FARMING (BID), Ea 1/2 SOUTH FOR TOWNSHIP, Na LAND, Da DRYLAND FARMING, MOBILE BOHE ON LAND, Ra RSIP LAND, IRRIGATED CROPLAND(BID) 4a CRPIBID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS 80 h Lid a -Kir Du Ga GRAZING, 1a GRAZING (BID), 5a RSIP(BID) SDNY_GNL00173572 EFTA (X1195227 EFTA01305472 NEW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT DATE TO FIELD DIVISION: 09/27/2016 REQUESTING DIVISION: Agriculture LEASE NUMBER: OR 2122 101 FIELD DIVISION CONTROL NO: SUL251 BY: Danny Sandoval TYPE OF REQUEST' Sublease Renewal NAME OP LESSEE/APPLICANT: CYPRESS INC., A VIRGIN ISLANDS CORPORATION ADDRESS: 49 BORE° RANCH ROAD, STANLEY. New Mexico, 87056. NAME PRONE ADDRESS EMAIL CYPRESS INC., A VIRGIN ISLANDS CORPORATION SOS9333401 49 V3RRO RANCH ROAD STANLEY, NM 87056 LEGAL DESCRIPTIONS TWP RNG SEC COUNTY 1,2,3,4,7.S2NNO.SW4 NE4,SW4 12N 09E 2 Santa Fe ALL 12N 09E 16 Santa Fe REMARKS: DATE RETURNED TO REQUESTING DIVISION/BUREAU: 11/07/2016 Recommendation Supervisor Recommendation Approval recommended to renew sublease on 0R2122. ACTION TAXER BY REQUESTING DIVISION: Approve Sublease Renewal per DRMis recommendation. 11/8/2016 DVS APPROVE RECOMMENDATION: (FIELD DIVISION) ELECTRONICALLY APPROVED: 11/07/2016 Kenneth Baca (REQUESTING DIVISION) ELECTRONICALLY APPROVED: 11/08/1016 Danny Sandoval REQUESTING DIVISION SUPERVISOR COMMENT: Approval of the Sublease Application is recommended for a one (1) year term. October 1, 2016 - September 30, 2017 11/10/2016 LH APPROVE RECOMMENDATION: (REQUESTING DIVISION SUPERVISOR) ELECTRONICALLY APPROVED: 11/10/2016 Lucille Martinez CHECKLIST 241. If acreage is in poor condition, please provide transacts. 242. Please advise on range conditions using an ocular estimate approach. 243. Please inspect and make your recommendations. 244. Please provide a ranch map and indicate where the state land sits in relation to the private land. 245. Please provide other pertinent information regarding this sublease. 246. Please verify how much acreage is being subleased and to whom) SDNY_GM_00173573 EFTA 00195228 EFTA01305473 cOCi Aubrey Dunn COMMISSIONER State of gkfrw Mexico Commissioner of Public Lands 310 OLD SANTA FE TRAIL. P.O. BOX 1148 SANTA FE, NEW MEN1C0 87504.1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmslatelands.org November 4, 2016 JUL-251 TO: Lucille Martinez, Assistant Director Surface Resources ATTN: Danny Sandoval, Management Analyst THRU: Kenny Baca, Assistant Director Field Operations FROM: Jason Lithgow, District Resource Manager Santa Fe District Office SUBJECT: Sublease Renewal: GR-2122 Cypress Inc. Date Received: September 27, 2016 SYNOPSIS This field report address's the sublease renewal application for grazing lease GR-2122. GR-2122 consists of 1,158.97 acres and is located in Santa Fe County. Cypress Inc wishes to sublease the total acreage to Ernest Ortiz & Steve Chavez. A field visit was conducted on November 04, 2016. SDNY_GP,4_00173574 EFTA 00195229 EFTA01305474 JUL-251 November 4, 2016 LEGAL LAND DESCRIPTION A tract of land containing 1,158.97 acres, more or less, and allocated by forties as follows: N.M.P.M. Section Quarter/Quarter Township Range County 02 Lots 1,2,3,4,7, S2NW4 12N 09E Santa Fe 02 SW4NE4,SW4 12N 09E Santa Fe 16 ALL 12N 09E Santa Fe LOCATION 310 Old Santa Fe Trail Santa Fe, NM 87501 Continue to NM-466 S/Old Pecos Trail 6 min (2.1 mi) Follow I-25 NMS-285 S and NM-41 34 min (31.8 mi) Tum right onto Zorro Ranch Rd Destination will be on the right 2 min (0.5 ml) 1-107 Zorro Ranch Road Stanley, NM 87056 SITE/PHYSICAL DESCRIPTION S to Zorro Ranch Rd This site is rural rangeland. Adjoining lands are used for livestock grazing, and wildlife habitat Vegetation consists of short and mid native grasses, forbs, and shrubs. REMARKS A field visit was conducted on November 04, 2016. No issues were found that should stop this sublease. I recommend approval of the sublease. This will continues sound management on the subject tract. JUL-251 2 November 4, 2016 SDNY_GM_00173575 EFTA_00 195230 EFTA01305475 JUL-251 Nmember 4, 2016 241 - If acreage is in poor condition, please provide transects. Transects were not required at this time. 242 - Please advise on range conditions using an ocular estimate approach. The range conditions were fair using an ocular estimation approach. The ranch runs a total of 40 cows on 10,000+ acres. 243 - Please inspect and make your recommendations. The ranch is in good order, I recommend approving this sublease. 244 - Please provide a ranch map and indicate where the state land sits in relation to the private land. See attached maps. 245 - Please provide other pertinent information regarding this sublease. The subject tract is in good shape with no issues to report. 246 - Please verify how much acreage is being subleased and to whom? The entire grazing lease is being leased to Ernest Ortiz & Steve Chavez. JUL-251 3 n November 4, 2016 1/4 \ SDNY_GM_00173576 EFTA 00195231 EFTA01305476 JUL-251 APPENDIX A: PHOTOS Pic 1. GR-2122 JUL-251 4 Nowmber 4, 2016 Nowmber 4, 2016 SDNY_GM_00173577 EFTA_00 I 9523/ EFTA01305477 JUL-251 Pic 2. GR-2122 JUL-251 5 No ember 4, 2016 November 4, 2016 SDNYGM00173578 EFTA_00 195233 EFTA01305478 JUL-251 Pic 3. GR-2122 JUL-251 6 vica.•••- • November 4, 2016 November 4, 2016 SDNY_GM_00173579 EFTA 00195234 EFTA01305479 JUL-251 APPENDIX B: MAP GR-2122 NewAlexia) Stale Land Office VIM Lalig Stalin 40 I/ VII is II boom& *yam sae. Awes% la I HU Xi.•Clamerm Ds. .11a 1s• beg ilinne...waids, eiraSsIC nine M Ae • • • • • Web* . ..IM, .r saw's/ kra Uartahrtfteiimritarra• ilmo bar inatIniketegithAnve. new 6,..; Samna • Oa WA I NM WORM JUL-251 7 November 4, 2016 Camtszpik (mini eiv vz Tow* Wan G.'S. • LT " iewier f t.:741 — - tad/ego vrti onfriefeem awes,. := Mk WM Iasi iles IlibmaiLLIMISt Aais tat WI. Cabs Mai Palen Stsnllintr. ua rawer Ll warns Glow WM 04 ail Ge lrs Mr L Yu • 11....4 Leo sari severest•• re November 4, 2016 SDNY_GM_00173580 EFTA 00195235 EFTA01305480 Aubrey Dunn COMMISSIONER Cypress Inc. 49 Zorro Ranch Stanley, NM 87056 State of New Mexico Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 67504-1148 Re: State Agricultural Lease GR-2I22 Sublease GR-2122-101 Dear Lessee(s): COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org November 10, 2016 Please find enclosed a copy of your approved sublease application. Your sublease will commenced on October 1, 2016 and will expire on September 30, 2017. If you have any questions about ur lease, please feel free to contact Mr. Danny Sandoval at the address above or at Sincerely, Aubrey Dunn Commissioner of Public Lands AD/ds End. SDNY_GM_00173581 EFTA 00195236 EFTA01305481 NEW MEXICO STATE LAND OFFICE APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL our IN INK) I/We, alfIta,33 (mailing address) under Agriculture Lease N make application to suble Please , of Nkrintot 51O56 , being lessee(s) granted by the Cofrtmissioner of Public Lands, do hereby as follows: SU13DIVISIOR - SEC. TWP. RANGE ACRES Xclo MI ock% t,a4AA 18151.(11 ye name of s If additional space is needed to describe legal subdivision, please attach additional sheet using the above format ti It being understood that said permission to sublease does not in any way relieve me/us from obligation assumed older the lease stated above. Sublease term on the designated lands to commence October 1, 20 8 30, 20 Ib , (Sublease cannot be given beyond ex iration date of lease.) ex r 6621 Give reasons this land is being subleased: The number, type, class of livestock, and period of use, are as follows: NO. 3s a LIVESTOCK and to expire on September PERIOD OF USE KIND CLASS FROM TO al" Olt S-01 (Revised 01/2001) SDNY_GM_00173582 EFTA_00 I 95237 EFTA01305482 Please indicate the person and/or party that you wish our field representative to contact relative to this application to sublease: Name: Address: Home Telephone No. Business Telephone No. Include 20% (twenty-percent) of the yearly rental with completed Sublease Application Form. The minimum fee for subleasing is $50.00 (fifty dollars). C piss ,11r , do solemnly swear (or affirm) that statements a44 answers to the questions in this application are true and correct to the best of my knowledge and belief. ANY FALSE STATEMENTS CONTAINED HEREIN WILL SUBJECT MY LEASE OR LEASES TO CANCELLATION. C YntEss, nit. Cr -C -n Signedicla r a;AkeilkaResida f Lessee Signed: Lessee SUBSCRIBED AND SWORN to before me this i bY__ss-tre." r-bna ttiCe_ (Name of Person's Signature Wary Pubic - State of New York onrOornmission-Exekeveell.-20$7 Outlined In New ewe County NO. WM6285700 XP • at. t->i a -O 1-4- grant the lessee( APPROVED THIS S-01 (Revised 01/2001) c: • ; day of lost et ,,,,,,,,,, F ing acknowledged} otary Public Drat-e, , COMMISSIONER OF PUBLIC LANDS, do hereby listed above permission to sublease the above described land. ,,,,,,,,,,, c)O 51....41 ,, ,,, 1O: ,,,,,,,,, , • ". e (P ID day of e. ,20 / r—P-itir.-)1 , COMMIS NER OF SDNY_GM_00173583 EFTA_00 I 95238 EFTA01305483 EXHIBIT A LEASE NO: GR2122 SUBDIVISION SEC-TWN-RNG ACREAGE 0 PRICE S PER E UNIT CAR CAP LOT1 LOT2 LOT3 10T4 LOT7 02 12N 09E 238.97 G 12 SW4NE4 S2NW4 SW4 02 12N 09E 280.00 G 12 ALL 16 12N 09E 640.00 G 12 TOTAL ACREAGE: 1,158.97 TOTAL RENTAL: RENEWAL LEASE LEGEND: USE TYPE CODES Ca CONSERVATION RESERVE PROGRAM I- IRRIGATED CROPLAND, N- 2- DRYLAND FARMING (BID), '3- H- 1/2 SOUTH FOR TOWNSHIP, Hm LAND, D- DRYLAND FARMING, MOBILE HOME ON LAND, R RSIP LAND, IRRIGATED CROPLAND(B/D) 4- CRP(BID) 1/2 EAST FOR RANGE * CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS Ga. GRAZING, 10 GRAZING (BID), 5- RSIP(BID) SDNY_GM_00173584 EFTA_00 195239 EFTA01305484 PEW MEXICO STATE LAND OFF1L... REQUEST FOR FIELD ASSIGNMENT n ATE TO FIELD DIVISION: 5 1 ' 16 - 14 F DIVISION CONTROL NO. 3; 4 L 110 ...6QUESTING D LEASE NUMBE NAME OF LESS ADDRESS: 4 1 flIct zing Bil es 4 Ai Coltnat 0A. i E OF REQUEST: v% C . tit 1.../ SU: g I est 4-c. zoero P....,... Rd 54 ,AA It MA g 4 0 st DESIGNATED CONTACT: ADDRESS: SA "4/ S a b0vt. LEGAL DESCRIPTION: SECTION TWP RANGE COUNTS( C4 oa i21\) Ole cm..4a Ft 1 6 I aN 04 ( l• It REMARKS: 'PICASt :Ate 144I ma itc re. coma% en via-ken - Sees a44-acke Mcrae re mark C. —ATE RETURNED TO REQUESTING DIVISION/BUREAU: 411-1r DISTRICT RESOURCE MANAGER RECOMMENDATION: +ref- t taif?ftentsz fly Etat 7 Al R, ad-44,06-Th 4 ran, eizri V-a-ot- 6-000 APPRO COMA ON: FIELD DIVISON) (REQUEST/NG DIVISION ofriti - io- DO NOT APPROVE RECOMM:ENDATION: (Please slate reasons) ACTION TAKEN BY RE9UESTING DIVISION: tddistS4 aperalka 4..t par bRi-ik reartusipAtikken .039/4/ -At DATE RETURNED TO DISTRICT RESOURCE MANAGER .G-89 Revised: 11/1/99 SDNY_GM_00173585 EFTA_00 195240 EFTA01305485 Ray Powell, M.S., D.V.M. COMMISSIONER June 03, 2014 TO: ATTN: THRU: State of New Mexico Commissioner of Lanes 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87504-1148 Donald Martinez, Director Surface Resources Danny Sandoval, Management Analyst Bill Pearson, Assistant Director Field Operations FROM: 64•-• Ja n Uthgow, strict Resource Manager Santa Fe District Office SUBJECT: New Sublease: GR-2122, GR-2088 Cypress Inc. Date Received: May 20, 2014 SYNOPSIS COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstalelands.org JUL-110, JUL-111 This report is to address the new sublease for GR-2122 and GR-2088. The sublease will encompass three sections totaling 1,243.83 acres. The subject trust land lies within the greater 11,000 Acre+ Zorro Ranch. At the time of the field visit an ocular estimate of the land was fair to good. There are no known reasons to not approve this sublease. LEGAL LAND DESCRIPTION A tract of land containing 1,243.83 acres, more or less, and allocated by forties as follows: N.M.P.M. Section Quarter/Quarter Township Ranee County 02 Lot 1, 2,3,4,7 12N 09E Santa Fe 02 SW/4NE/4, S2NW4, SW4 12N 09E Santa Fe 16 All 12N 09E Santa Fe 36 Lot 1,2,3,4 13N 09E Santa Fe SDNY_GM_00173586 EFTA_00195241 EFTA01305486 JUL-110, JUL-111 June 03, 2014 LOCATION S 310 Old Santa Fe Trail / Santa Fe, NM 87501 1. Head south on Old Santa Fe Trail toward E De Vargas St 0.5 mi 2. Continue onto Old Pecos Trail 1.6 ml 3. Turn left onto NM-466 S/Old Pecos Trail 1.4 mi 4. Take the Interstate 25 N ramp to Las Vegas/US 285 S/Clines Corners 0.3 mi 5. Merge onto 1-25 NAJS-285 S 6.2 mi 6. Take exit 290 for US-285 S toward Clines Corners 0.2 ml 7. Keep right at the fork and merge onto US-285 S 6.7 MI 8. Turn right onto NM-41 S 16.8 mi 9. Turn right onto Zorro Ranch Rd 75 ft The Zorro Ranch Rd is the access point to the State Trust Land. There is no public access to the subject tracts. SITE/PHYSICAL DESCRIPTION This site is rural rangeland. The leased site occupies 1,243.83 acres. Adjoining lands are used for livestock grazing, and wildlife habitat. Vegetation consists of short and mid native grasses, forbs, and shrubs and pinyon-juniper mixed forest. HIGHEST AND BEST USE The highest and best use of this land is livestock grazing and wildlife habitat. No other trends exist at this time. ENVIRONMENTAL CONCERNS/CULTURAL SITES No environmental concerns where observed at this time. Please note that this area has a very high concentration of artifacts, Including Pueblo Blanco. If any improvements are made a thorough archeological review would be necessary. JUL-11o, JUL-111 2 June 03, SDNY_GM_00173587 EFTA_00 195242 EFTA01305487 JUL-110, JUL-111 June 03, 2014 REMARKS On May 27, 2014 I met with a Mr. Gordon, who represents Cypress Inc., and conducted a site visit of the subject tract. At the time of the inspection the range was in better than fair condition. It was very apparent that the greater Zorro ranch took great care In managing the landscape. The Zorro ranch has been actively treating choya on both trust and deeded lands. They blade and pile the choya during the dormant period in winter, and bum the piles when they dry. The new sub-lessees will be Steve Chavez and Ernest Ortiz. I recommend approval of the sublease. JUL-110, JUL-111 3 June 03, 20 SDNY_GM_00173588 EFTA_00 195243 EFTA01305488 JUL-110, JUL-111 Appendix A: Photos • • —de tA„ • ;;„ Photo 1- Overlooking Pueblo Blanco. Section 16. JUL-110, JUL-111 4 June 03, 2014 l) •• it ; t . • .f.e. ....t June 03, 2 SDNY GA4_00173589 EFTA_00 195244 EFTA01305489 JUL-110, JUL-111 Photo 2- Representation of the range. Section 02. JUL-110, JUL-111 June 03, 2014 5 June 03, 2 SDNY_GM_00173590 EFTA_00 I 95245 EFTA01305490 JUL-110, JUL-111 Photo 3: East of Pueblo Blanco. Section 16. JUL-110, JUL-111 June 03, 2014 6 June 03, 20 SDNY_GM_00173591 EFTA_00195246 EFTA01305491 JUL-110, JUL-111 June 03, 2014 Photo 4: Some choya encroachment. The ranch has been actively conducting choya removal during the winter months. This pasture was slated for treatment next winter. Section 2. JUL-110, JUL-111 7 June 03, SDNY_GM_00173592 EFTA_00 195247 EFTA01305492 JUL-110, JUL-111 Photo 5: Section 36. JUL-110, JUL-111 8 June 03, 2014 June 03, 20 SDNY_GM_00173593 EFTA_00 195248 EFTA01305493 JUL-110, JUL-111 endix B: Ma • s r Mexico Sin MITI L100 SLOW Oil= U t 7) 13••••11••••••11••••• SUMS tits Pais Gegiegiall Irilr Pal June 03, 2014 OW aim t- n—whoparf pjk el sewn I fitiMISIIInhiei WON itnensae . "MOW Inc lasIttmICIMiteeliminv ••••••••• tatOteres•ItalsbasIstote brantaise Ofinl2pbb MOWN • Ot 11•6•Misp I Camp MS • U0 Df•a0.• ••• ISO Thole Poway OM • - Slab* Illttmy • CSWileny tal —Ialrast-T.•1 Tedirsill•••thearano Ins dial Mays* Mae onal•••••• Dies•Awkdatt Vq•Szei•Dna Posommlorl••• tWAThaflowth •41:11•11. Sao ars>lbee Icasolist Sada CainNesalltes Sulefainnoil Winks* Safe bon Yew tal le•Inter. latt,pn allksless Ausells11•• OimmeLl tux ibstaLsat umnaigtbsitog Sections: 16 and 2 and 36. All the land around the sections is privately owned by the Zorro Ranch. JUL-110, JUL-111 9 June SDNY_GM_00173594 EFTA 00195249 EFTA01305494 Ray Powell, M.S., D.V.M. COMMISSIONER State of New Mexico Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE• NEW MEXICO 87504-1 148 Cypress Inc. 49 Zorro Ranch Road Stanley, NM 87056 Re: State Agricultural Lease No. GR-2088 & GR2122 (Sublease No. GR-2088-0001 & GR2122-001) Dear Lessee(s): COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827.5766 www.nmstntelands.org June 11, 2014 Please find enclosed a copy of your approved sublease applications. Your sublease commenced on October 1, 2013 and will expire on September 30, 2016. If you have any questions lease feel free to contact me at the address above or at Sin Julian Ortiz Surface Resources Division NM State Land Office end. SDNY_GM_00173595 EFTA_00 195250 EFTA01305495 Ray Powell, M.S., D.V.M. COMMISSIONER Cypress Inc. 49 Zorro Ranch Rd Stanley, NM 87056 State of 96w Mexico Commissioner oatthfic Lane 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87504.1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org May 16, 2014 RE: STATE AGRICULT GR-2088-0001 & Dear Lessee(s): This office has received your applications to Sublease State Trust Lands. This office will send a District Resource Manager to inspect your leased lands on site and make a recommendation. Typically, it takes four to six weeks until we can approve or disapprove the application. If you have any questions, please feel free to contact me at the address above or at Ill Sincerely, Danny Sandoval Surface Resources Division NM State Land Office SDNY_GM_00173596 EFTA_00 I 95251 EFTA01305496 CYPRESS, INC 49 Zorro Ranch Road Stanley, NM 87056 Telephone: May 7*, 2014 New Mexico State Land Office PO Box 1148 Santa Fe NM 87504 Attention: Ms Lucille Martinez Dear Ms Martinez, We would like to confirm that Cypress, Inc has a new mailing address. If all correspondence could please be forwarded to the following 49 Zorro Ranch Road Stanley, NM 87056 If you have any questions or concerns in reference to this could you please call Thank you for you assistance with this matter Sincereley, SDNY_GM_00173597 EFTA_00 I 95252 EFTA01305497 NEW MEXICO STATE LAND OFFICE APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL OUT IN INK) (mailing address) under Agriculture Lease IV make application to sable , of YY1 being lcssee(s) granted by the Coinmissioner of Public Lands, do hereby as follows: SUBDIVISICa - SEC. TWP. RANGE ACRES S20- fl IE621 Lc Afi 1,151.c11 If additional space is needed to describe legal subdivision, please attach additional sheet using the above format Please give name of sublessee and mailing address: 9)6 to6[4.Sict ik, i\im nobs iqg Ccuyi4 [08 S [slam° tim nut It being understood that said permission to sublease does not in any way obligation assumed under the lease stated above. relieve me/us from Sublease term on the designated lands to commence October 1, 20 and to expire on September 30, 20 lb , (Sublease cannot be given beyond c nation date of lease.) Clicatn, Give reasons this land is being subleased: The number, type, class of livestock, and period of use, are as follows: NO. a LIVESTOCK PERIOD OF USE KIND CLASS FROM TO g S CIDIS us 41u q 3x116 S-01 (Revised 01/2001) SDNY_GM_00173598 EFTA (X)195253 EFTA01305498 Business Telephone No. 605 aSb 2h,O1 listed above permission to sublease the above described land. APPROVED THIS Please indicate the person and/or party that you wish our field representative to contact relative to this application to sublease: Name: 10.1404/\ Address: Home Telephone No Cktia 3401 Include 20% (twenty-percent) of the yearly rental with completed Sublease Application Form. The minimum fee for subleasing is 550.00 (fifty dollars). I, C ess . ire, , do solemnly swear (or affirm) that statements aJd answers to the questions in this application are true and correct to the best of my knowledge and belief. ANY FALSE STATEMENTS CONTAINED HEREIN WILL SUBJECT MY LEASE OR LEASES TO CANCELLATION. C Yrlec.ss, T.C.. SUB CRIBED AND SWORN to before me this by 4(r tin 'r-indlyta.. {Name of Person's Signature r hainteenifflitt Nolory Putdlo • Milo of Now Yeti( NO. OIGR5285700 04411080 In New Yak County 4,44TOornmistionfnifes44.1o11.-2117 1 . - S: TkLY Ft a- D SignedisratearA tifrasaltroiko Lessee Signed: Lessee N. e!`""14,. ,, day of fie*/ 4* ,,,F m ,,,,,,,, A! .1c,skelle. ,,,,,,, *rig acknowledged) ;.' f' 1 - cei • • ; . -'• kV. 4" z. te a , • a r iz;Ve . gr , f %9 tary Public c :r. ni of 44., , A ,," i . -, ,„,- 0- ..44 Dr ', 4,.„.. -srm- eatej , COMMISSIONER OF PUBLIC LANDS, do hereby 444 , ,,,,,,,,,, ,,,,,,,, '4,, lb day of , 20 / .;4O 4J ( v. 1• ?>1111:-4:„• r ao fi f Li I /7 4:`: COMMISSIONER OF S-01 (Revised 01/2001) 1:44-4 ‘tk-•%. -, SDNY_GM_00173599 EFTA_00 I 952544 EFTA01305499 EXHIBIT A LEASE NO: GR2122 SUBDIVISION SEC -TWN -RNG ACREAGE U PRICE S PER E UNIT LOT1 LOT2 LOTS LOT4 LOT7 02 12N 09E 238.97 G - 12 SW4NE4 SZNW4 SW4 - - 02 12N 09E 280.00 G - 12 ALL - - - - 16 12N 09E 640.00 G - 12 RENEWAL LEASE LEGEND: USE TYPE CODES Ca CONSERVATION RESERVE PROGRAM I- IRRIGATED CROPLAND, Mom 2a DRYLAND FARMING (BID), .30 Ha 1/2 SOUTH FOR TOWNSHIP, Ha TOTAL ACREAGE: 1,158.97 TOTAL RENTAL: CAR CAP LAND, Da DRYLAND FARMING, MOBILE HOME ON LAND, RR RS/P LAND, IRRIGATED CROPLAND(BID) 4a CRP(BID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS Ge GRAZING, tin GRAZING (BID), 5e RSIP(BIO) (1/2 ( ,941, SDNY_GP4_00173600 EFTA _00 I95255 EFTA01305500 NEW MEXICO STATE LAND OFFICE OFFICIAL REQUEST FOR CHANGE OF ADDRESS To: Commissioner of Public Lands Post Office Box 1148 Santa Fe, New Mexico 87504-1148 Dear Sir: I am the holder of (Oil and Gas) (Mineral) (Other) Lease (Specify) Assignment No. , covering (Land Description) of record in the New Mexico State Land Office, and I request that all official notices from your office .which are required to be sent tome by law or under the terms of my lease or contract be sent to me at the address shown below, which address shall remain unchanged upon your records unless and until expressly directed in writing by me to do so. recs . 1' p (Confpany Name) Signature (Please sign as-name apps on lease) 49 -Z-0 rro leAmr4 I Woad (street Address or Box Number) t_ NM g7e,57, (City)State and Zip Sock) "par: Korea, k. Carden, 5/z51 pi. _Ai., This form to be filed with the original lease instrument in the State Land Office. 0-67 04/01/94 SDNY_GM_00173601 EFTA_00195256 EFTA01305501 Ray Powell, M.S., D.V.M. COMMISSIONER State of Vw Mexico Commissioner of Lath 310 OLD SANTA FE 'MAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 June 6, 2012 Cypress, Inc. 9100 Havensight, Port of Sale, Suite 15/16 St. Thomas. VI 00802 Re: State Agricultural Lease No. GR-2122 (Sublease No. GR-2122-0001) Dear Mr. Gordon: COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org Please find enclosed a copy of your approved sublease applications. Your sublease commenced on October 1, 2011 and will expire on September 30, 2016. If you have any questions lease feel free to contact me at the address above or at Sincerely, Leroy A. Ulibarri Surface Resources Division NM State Land Office end. SLO SCAN glINAZD312 SDNY_GM_00173602 EFTA_00 195257 EFTA01305502 Ray Powell, M.S., D.V.M. COMMISSIONER State °Mew ico Commissioner of Public Lane 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 Cypress, Inc. 9100 Havensight, Port of Sale, Suite 15/16 St. Thomas, VI 00802 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.runstatelands.org March 2, 2012 Re: State Agricultural Lease No.'s G11-2080-01 & GR -2122-01 Dear Mr. Gordon: This office has received your applications to Sublease State Trust Lands. This office will send a District Resource Manager to inspect your leased lands on site and make a recommendation. Typically, it takes four to six weeks until we can approve or disapprove the application. If you have any questions lease feel free to contact me at the address above or at Sincerely, Leroy A. Ulibarri Surface Resources Division NM State Land Office end: SLO SeAiv illIN.0 7 2012 SDNY_Ght00173603 EFTA_00 195258 EFTA01305503 NEW MEXICO STATE LAND OFFICE APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL OUT IN INK) I/We, Cypress, Inc. , of (mailing address) 9100 Havensight, Port of Sale, Suite 15/16, SL Thomas, VI 00802 , being lessce(s) under Agriculture Lease No. GR 2122 granted by the Commissioner of Public Lands, do hereby make application to sublease the lands described as follows: SUBDIVISION SEC. TWP. RANGE ACRES See attached Exhibit A 1,158.97 If additional space is needed to describe legal subdivision, please attach additional sheet using the above format Please give name of sublessee and moiling address: Joe M. Chavez and Steve Chavez PO Box 1054, Moriarty, NM 87035 It being understood that said permission to sublease does not in any way relieve me/us from obligation assumed under the lease stated above. Sublease term on the designated lands to commence October 1, 20 11 , and to expire on September 30, 20 16 , (Sublease cannot be given beyond expiration date of lease.) Give reasons this land is being subleased: cattle grazing The number, type, class of livestock, and period of use, are as follows: NO. LIVESTOCK KIND CLASS PERIOD OF USE FROM TO 12 cattle cattle 10/1/2011 0/30/2016 S-01 (Revised 01/2001) SLO SCAN LAND SUSPENSE 3 NHSL0 001-00003 69 0 29-Fi11-12 11:44 150.30 SDNYGM00173604 EFTA_00195259 EFTA01305504 Please indicate the person and/or party that you wish our field representative to contact relative to this application to sublease: Name: Brice Gordon Address: 49 Zorro Ranch Rd. Stanley, NM 87056 Home Telephone No. Business Telephone No. Include 20% (twenty-percent) of the yearly rental with completed Sublease Application Form. The minimum fee for subleasing is $50.00 (fifty dollars). I, Cypress, Inc. , do solemnly swear (or affirm) that statements and answers to the questions in this application are true and correct to the best of my knowledge and belief. ANY FALSE STATEMENTS CONTAINED HEREIN WILL SUBJECT MY LEASE OR LEASES TO CANCELLATION. Signed: Lessee Signed: I Ace". SUBSCRIBED AND SWORN to before me this to day of Ce.6.-tia 01 20 Ia.., by Darien Write as Vice President of Cypress, Inc {name of Agricultural Less MY COMMISSION EXPIRES: afriiii qtroieryPtiliiicti •,?: 1-.. I, fey /Lad/ , COMMISSIONER OF PUBLIC LANDS, do hereby grant e Wssee(s) listed above permission to sublease the above described land. APPROVED THIS S-01 (Revised 01/2001) day of SLO ScHi JUN (I 7 1012 SDNY_GM_00173605 EFTA_00 195260 EFTA01305505 EXHIBIT A LEASE NO: GR2122 SUBDIVISION SEC-TWN-RNG ACREAGE U PRICE S PER E UNIT CAR CAP LOT]. SW4NE4 ALL LOT2 S2NW4 RENEWAL LEASE LOTS SW4 LOT4 LOT7 TOTAL ACREAGE: 02 12N 09E 02 12N 09E 16 12N 09E 238.97 G 280.00 G 640.00 G 1,158.97 TOTAL RENTAL: 12 12 12 $751.51 LEGEND: USE TYPE CODES C= CONSERVATION RESERVE PROGRAM I= IRRIGATED CROPLAND, M= 2= DRYLAND FARMING (BID), '3= H= 1/2 SOUTH FOR TOWNSHIP, H= LAND, D= DRYLAND FARMING, MOBILE HOME ON LAND, It= RSIP LAND, IRRIGATED CROPLAND(BID) CRP(BID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS SLO SCAIN I1111 n V 'MI 4:1.0 h 1.2:1 a lfir SLO SCAN 11(2 20 '),:n1 G= GRAZING, 1= GRAZING (BID), 5= RSIP(BID) SDNY_GM_00173606 EFTA 00195261 EFTA01305506 ..TE TO FIELD DIVISION: NEW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT 3-2-12 FIELD DIVISION CONTROL NO, ADP-361 REQUESTING DIVISION: Surface BY: Leroy A. Ulibarri LEASE NUMBER: GR-2122-01 TYPE OF REQuLsT., Sublease New NAME OF LESSEE/APPLICANT: Cypress, Inc. ADDRESS. 48 Zorro Ranch Rd. Stanley, NM 87066 DESIGNATED CONTACT: Brice Gordon PHONE: ADDRESS: LEGAL DESCRIPTION: SECTION TWP 02616 12N geagg. 09E COUNTY S. F. RENLURKS: Please inspect and make recommendation See attached Memo for Remarks. DATE RETURNED TO REQUESTING DIVISION/BUREAU: °I" //,' DISTRICT RESOURCE MANAGER RECOMMENDATION:1prd liot eletr-Ct ir OWC 4 /a. 97 &t too f iti 7 eglfry eget: Att.lez by APPROVE RECOMMENDATI : FIELD DIVISON) (REQUESTING DIVISION C. • f• i 7-- • ) ( DO NOT APPROVE ftECO NDATION: (Please stale reasons) c ACTION TAKEKBY REQUESTING DIVISION: soak Z/ DATE RETURNED TO DISTRICT RESOURCE MANAGER G-89 Raised: 11/1/99 SLO SCAN JUN n 7 7017 SDNY_Ght00173607 EFTA_00 195262 EFTA01305507 NEW Kerreo STATE LAND OFFICE ASSIGNMENT OF AGRICULTURAL LEASE 113.11E GOMPLEITED BY LESSEE: the undersigned lessee(s), hereby auto to Cvoress Inc- a Virgin Islands Contortacto whose salsa in 9100 Davanaisht, Port of Sale. Suite 15/16, St.Thomas Erma Cordon (mailing address) VI 00802 Telephone (3'•/o _)- 413 - 9 s 55 all (ray/our) light, title and interest in State Agtienftural Case No. OR 2122 and all rights to compensation fix the improvements toasted on &leased lands, Ibr which improvements (lAva) hereby either waive payment or aelmowledge receipt of payload of Fall improvement value. (1/we), undastand eaves that any outstatelniglublesse of ell cm a portion of the leased lands is baeby terminated, hit balk cdvaed by told lone are deatibed a follows: snowisioN SEC 'MP. RGE. ACRES satsuma atimaraironfore wafts 16th dna December 2011 Lases / /5a 91 ric, DD by Jaffrey Epstein, Trustee of the.Zorro Trust uta Hatch 1, 1993, as amended My acidsttologra: essr•steee' 8-370F11PIP, asst(a) perns(s)ackewledgedi LT C lid IC NYP 2102 PlEel<42 Yea/use Oasts page2 . SLO SCAN iM 12 Alt HARRY I. BELLER Notary Public, State of New York - ,Na 010E4853924 __Lbutitned ktRockland County ye/ Caremission Expires Feb. 17, 20.4./ 4 HMO 001-181003 54 0 01-FEB-12 09115 50.00 SDNY_GM_00173608 EFTA_00 195263 EFTA01305508 OW el); Oinodenippframo,purc,,a,t(4 WO* int§tig*440,041040Piveitedsinte ;WTI* iiganniketeSeMPintm41*(6iiikise" :.4.10tii54041041*(141441, s 4ieedit • onlieetaWiiiiNde:WhithitneletOlaite:viiiiinfintilAntrAtlitCkalkig,Mblii to's:titivate stab* otiteliessliS cis brapoillowcifiberaeset4344 unetto twatimatrt bypriovv Idlabda COtpbratidd, • . _ Impu,ww,, 200ENvc cosiogoim Agieft • 414#abitliiiiniiII-ilkatilitiitaib. 1. 6 r O M Deceatbar !1. Iii ,raf aarssma gf;amomba s i grp4rati on 00P0xm44!re R_ I HARRY A-4---- (.74...---- . i...., titioinitiWilitio aiiiIraea, Notary P ' No. 01 E48 Com Omissio uoli0ed in Rockland County , tittg.zusrAssiGNrittsmstrectialor BE EPFECTIVEVASW-MkatigifOthilifaOta COMMISS[QNER.orrinu:W LAW; • • • Cemml4fRue~'y~ . I Anao.voittaltit.41likAbliffOititMagidg40*. • OS. ..#04* Saw - • tr."i•••••••1 z ... • it U;,,..2 _ T. :6:res-pO-47 . 1:0 . . ree 4.; .... • £ u mg .... .... is SLO SCAN AtAR 122912 SONY_GIA_00 173609 EFTA_00 195264 EFTA01305509 Ray Powell, M.S., D.V.M. COMMISSIONER May 21, 2012 State of Me co Commissioner ofTudfic Lath 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 TO: Donald Martinez, Manager Agricultural Bureau Santa Fe, New Mexico ATTN: Leroy Ulibarri, Management Analyst THRU: .1' Norwick, Division Director Field Operations FROM: 4 cc) COMMISSIONER'S OFFICE Phone (505) 827-3760 Fax (505) 827-5766 www.nmstatelands.org ADP-303 Andrew Price, District Resource Manager Albuquerque District Office SUBJECT: GR-2122-01 Cypress Inc. Brice Gordon SYNOPSIS Application was submitted for permission to sublease state trust lands. Field research was completed on May 17, 2012 by reporting DRM. Lessee was on site at time of field site visit. Ic I. 1' , 9?, W.V 11.?:?, SLO SCAN itum II 7 7011 SDNY_GM_00173610 EFTA_00 195265 EFTA01305510 ADP-303 5/22/2012 LEGAL LAND DESCRIPTION Section of land, containing 1,158.97 acres, more or less, and allocated by forties as follows: N.M.P.M. Section Quarter/Quarter Township Range County 16 All 12 North 09 East Santa Fe 02 Lots 1-7,SW/4NE/4 12 North 09 East Santa Fe S/2NW/4,SW/4 LOCATION This tract is located northwest of Stanley, New Mexico. Access is via Interstate 40 to Moriarty, take SH 41north past Stanley until a large gate on the western side reading Zorro Ranch, see attached map. SITE DESCRIPTION: This site occurs as rangeland. Slopes are level to gently sloping, usually less then 8%. This is a grassland site with scattered shrubs throughout the site. Faits are conspicuous when in bloom but otherwise comprise a minor component. Other species include: sideoats grama, blue grama, sand dropseed, pine dropseed, mat muhly, cheatgrass, pingue, wooly lndianwheat, globemallow spp., prairie coneflower, oneseed juniper, pinyon pine, pale wolfberry, broom snakeweed, yucca spp., cholla cactus and antelope bitterbrush. IMPROVEMENTS Subleasing these lands will not negatively impact any existing ranch improvements. ADP-303 t31.O 6(2:AN U7+1 h 1 2 5/22/2012 SDNY_Gh4_00173611 EFTA_00195266 EFTA01305511 ADP-303 5/22/2012 CONFIDENTIAL This section of the report may contain privileged information including but not limited to attorney/client privileged communication, and/or attorney work product HIGHEST AND BEST USE: The highest and best use of this subject tract is agricultural activities, particularly, livestock grazing. No other Trends exist at this time. REMARKS: I recommend approval of this sublease on state trust land. A total of 1,158.97 acres will be subleased to Cypress Inc. Range conditions are good to excellent using an ocular estimate approach. Cattle are not currently present on trust lands. Sub lessee has requested to place cattle on subject lease. No other concerns are present. Access is easily obtained from ranch road. Surrounding land ownership is all private lands. No biological or cultural resources will be negatively impacted. No watersheds will be affected. Sublease Value: 20% (twenty-percent) of the yearly $751.51 rental = $150.3 ADP-303 SW SCAN 3 5/22/2012 JUN 07 NT/ SDNY_GA4_00173612 EFTA 00195267 EFTA01305512 ADP-303 APPENDIX k PHOTOGRAPHS ADP-303 SL0 SCAN Ill I1 Jim 5/22/2012 4 5/22/2012 SDNY_GM_00173613 EFTA_00 I 95268 EFTA01305513 O ADP-303 5/22/2012 t VA se e _ - l 4 I- ,,„ . .4.2 ' .1 j . 3 tt. ti..- 5 ,•'": .N" - e 7 1 ' ' ... A ... - • -. " Ac- ,., ,t" r ;.t ujis* .i.•.: O S.: .. • . :1 • r r *, . y• A.& - at a iirb ajil Adi 400 6.). 1 ' ' st - 0 0 4 r.i•Ve: **.a.1. ,.. ,,, ... " ''te, - ::.._r J.1 er ' tgrti" at ' likevyarn ele • e .‘ . ,t .,„„' ,. ./- t .cid-- •± .."' ,, • ..„, v. v. . 7- - , • ..- ott ' 4 : ' r •• I': • a r 1. Is 0 v f. 4- Ow. I 0' :1:4 * • • Libit H -1,\ t. *r t .' c 1 1/2 04e irle : 21( • T 6411(.. sir* ffiRt r, • Rangeland is productive and in good-excellent condition. ADP-303 JUN R 7 7017 5 5/22/2012 SDNY_GM_00173614 EFTA_00 195269 EFTA01305514 ADP-303 APPENDIX B: MAPS New Memo State Land Office Mild Lab. SWINE • AU 44 er a May tbareaatPeaventlIonan• epos lle• Meriamenalime U ADP-303 SLO SCAN AIN 7 7817 5/2212012 Os As limewniosanapiWtindrISIOIfre proeti • a sainire .wr r take . 1. 10• nikaanr• 4•44frealagapke r Iniaa•••• OssolOadialL I alibi 62••••••••••••• • 07.7•••••••• • C•s• kw a Soave ••••ACIlaiellse•• - Isesligisq — WOO., —1•••••• — 1••••••••Ilat ••••••••••••• Illnm••••••••••e lhaserslauk• •••••••••••••• NSW ins. 1111341•11•40 1••••• Itle011ia Naiad hen S onia %mai hefet•••• Siahm11••• tdosortve 1 •••••••• •••••••••••• C•impailtaor No•••••••• •••••••••••••• 5/22/2012 S0NY_GM_00173615 EFTA_00 195270 EFTA01305515 I LES6 00-V1.43 _ 9t9EZLOO 1A19 ANCIS NEW MEXICO STATE LAND OFFICE Records Action Form for Grazing's Additional Scanning Requested by: Ylvti Date: I D —‘1-1( Contact Number/Phone#: 75 Received by: Grazing- DIVISION AREA SCANNING DEPARTMENT LEASE 1$ CDE# PAGES POST SCAN Mr AR Notes: Form Type Scan Date 612--02QD i 5 34 >C CO e-{`„ ci* (Offirded- Q i n er- iv., A. 1( 10 I )(- 1.r7" * -Sae Gen Oral- VT ? fl 201 10 1 x G'eneite--c- a- a- la- i 0 O-__ )(7 cr„,e,„,,, SLO SCAN Vt 3 •V )O" Mittastie st tIAR I a all CODES and FORM TYPES: 9. Field Report 10. General Corresp. cked-I n •=fsrtetr:n 11. Bid hange Statur, 93-Ksting il O plpuzlit e15-inlet rre. . ' _112-34/) r - _ .: _ 1. Contract 2. Memo to file 3. Improvements 4. Assignement 5. Notes to file 6. Change of Address 7. Sublease 8. Notice EFTA01305516 Ray Powell, M.S., D.V.M. COMMISSIONER February 8, 2012 State of *v Mexico Commissioner of Lath 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 Cypress Inc. 9100 Havensight Port of Sale, Suite 15/16 St. Thomas, Brice Gordon, VI 00802 Re: State Grazing Lease No.: GR2088 Dear Lessee(s): COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nrnstatelands.ots Enclosed are approved copies of the Assignments for the above referenced leases for you to keep for your records. If you have any questions regarding your lease, please feel free to contact me at the address above or at 422/Pkx, t Fernando Roybal Agricultural Ince Analyst Enclosure xc: Sutin, Thayer & Brown SLO SCAN MD 12 2017 SDNY_GM_00173617 EFTA_00 195272 EFTA01305517 SUTIN THAYER' BROWNE A PROFESSIONAL CORPORATION LAWYERS IWO PARK scums ems AMERICAS PARKWAY, N.E. AMOOUEROLIE, NEW MEXICO $7110 MN S. M0S8 ROM INS UM* A. IIRO.I132) MICHAM.J. GOLDEN OMID 0. CORDON SMDRAct RUNNY SWAN/R ROST °MSS SOX WAS ALSDOUEROUE, WSW MEOCO 67103 FAMIC.D1 JONES inning GAL OOTTUEO mAcl K (XMAS 50540174500 RAVICM3 W. SCMCNIIMS ItS*1805) SUSAN a INOSA MICHISLEIC OSTAYE FAX 5438868585 . SRAM./ ORZAVNE RIM 603) AMATO HEYMAN CRAALLS PlICHOTA TRACY L HCOAYIN CRAWL/PM A HOLLAND GOMM R. IDMI NENIIYA KEW MARY KIIANIJI JAY D. AOSENSWM SANDRA E ROTRUCK FRANK C. SALAZAR JUSTIN FL SAWYER ROIVAD 88:12. 317 PASEO DE PERALTA SANTA FL NEW MUM 57601 POST OFFICE SOX 2167 SANTA FE, NEW MEXICO 57604 WA COMM* Otmisol) SEKWAN ALLISON TSAOTW 4. OUR PMA "%MACKE PERM S NEM ANDREW .I. SWIMS 6064066521 ANNE P. MIOWMI RACHEL& MO MARPOSA PAOLLA SWAGS FAX SWANK W000 BRUCKNI91 iWSA S LAMM TRAVIS A. Mal ADDIMC. GAVE SWAN Q. CSAPPCIL NORMAN S. THAYER IIIMMIAN t MIMS WWW.S1.MNF1F0A.com OEM V. LMSON STEVAN MMUS LOW! MARA MONTOYA COMM JEANN N C. 1,100RE RONAN B. TIMMER EDUARDO A WRY LY S. IIOROLLEA GRIMM S. WEST MONICA C. MSC January 31, 2012 BY HAND DELIVERY Commissioner of Public Lands P.O. Box 1148 Santa Fe, New Mexico 87504 Assignment of Agricultural Leases To Whom It May Concern: We enclose duplicate originals of the following documents for filing In the New Mexico State Land Office: 1. Assignment of Agricultural Lease No. GR 2088. 2. Assignment of Agricultural Lease No. GR 2122. check In the amount of $100.00 to cover the recording fees. Please call me at if you have any questions. Thank you. Very truly yours, SUTIN, THAYER & BROWNE A Professional Corporation DGG Enclosures 2285929.00c SLO SCAN MR 12 RR avid G. Gordon Albuquerque Office LT C Lid IC NOE' ltel SDNY_GM_00173618 EFTA_00 195273 EFTA01305518 NEW MEXICO STATE LAND OFFICE ASSIGNMENT OF AGRICULTURAL LEASE TO BE COMPLETTED BY LESSEE: (I.We), the undersigned lessee(s), hereby assign to Cypress Inc- a Virgin Islands Comorstion whose address is: 9100 Ravensight. Port of Sale. Suite 15/16, St . Thomas Brits Gortich^ (mailing address) VI 00802 telephone ( 3 qO _) - _c13 - 9855 all (my/our) right, tide and incense in State Agtkulnual Ease No. OR 2122 and all rights to compensation for the inapmveuRats loaded on the leased lands, for which impeovestents (1/we) hereby either waive payment or acknowledge receipt of payment of LWl impretvanent value. (I/we), understand and agree that any outstandingSublease of all or a portion of the leased lands is haeby terminated. The lands camera/ by said lea e are described as follows: SUBDIVISt011 SEC TwE. RGE. ACRES Ste ittOiched Exhibit A Sated So61064sadlwrnileRatonoutthis 16th dry of December 20 1 by Jeffrey Epstein, Trustee of the .Zorro Trust uta March 1, 1993, as amended *Mat silic(c) Of porson(s) ackoorledgol) Lessee Lessee My onsmIssios ad re.: Fat. dam 547(rifkar0 page s an Perthaser Apse. pase2 LT C. Lit-.1 NYP ZIOZ SLO SCAN dill 1 2 Mt al Ns l'a5 c HARRY L BELLER • Notary Public, State of New York No. 01 DC4853924 _Qualified in Rockland County / Commission Expires Feb. 17, 2O / FEES 4 WSW 001-00003 54 0 01-FEB-12 W:15 50.00 SDNY_GM_00173619 EFTA_00195274 EFTA01305519 t0M0Ssit*.4.OLsiz.* S. the- widenigpgkoiet. Rgrairci(Ayeipiti fioprorigiii3O fte.** sstonfwgit %sic:Altmnathe Astricanial zag agscptiis isqwwtaxiAtirimm4 404.0 040011.40501:461010fiAllagegitaiestil bildertiateuei magas lassaimatinviditginaltcaktS000$ 44044 totattvate avotiiintotilYAksaitalank atinnpriletifthaMeweilliklii44. • totny fiakiboin tepptiogr, tub', it MATLI1 lidainta Dtattbrtitickb amissafrk. *we yoik- 36114italialbikilartialallthreliabk I 6th Oro December 11 by. Jeffrey. Epstein,..President * 9f: Cypress. Inc., a Vic itAn 1/31 and Coruntation friltaWt IftitilA0,** . HARRY Notary No.01 •42 Qualified in Rockland County Commis iFItSliattMSIGNMENT SKALIMOT HE Ernatdatigerniagria#40Waiii" - .COMAlissIONER OF PUBLIC LAM* • APPRovEDin kailititrAtkiftt EIS ?• Witic.tfr 1.sittuar 14110 . 7 • :c3 • • ....= •••••;•:.:•' ..... • ) .• " 47f-P•It'u; . .. . . LZ c ≥` TICIL SLO SCAN SiAR 12 2011 VIP SDNY_GM_00173620 EFTA_00 195275 EFTA01305520 EXHIBIT A LEASE NO: GR2122 SUBDIVISION SEC-TWN-RNG ACREAGE U PRICE S PER E UNIT CI LOT1 SW4NE4 ALL LOT2 LOT3 LOT4 S2NW4 SW4 LOT7 02 12N 09E 02 12N 09E 16 12N 09E 238.97 G 280.00 G 640.00 G TOTAL ACREAGE: 1,158.97 TOTAL RENTAL: 1: a: $751.51 LEGEND: USE TYPE CODES Cm CONSERVATION RESERVE PROGRAM Is IRRIGATED CROPLAND, Ms 2s DRYLAND FARMING (BID), 3a Ha 1/2 SOUTH FOR TOWNSHIP, Hs LAND, Ds DRYLAND FARMING, MOBILE HOME ON LAND, Rs RSIP LAND, IRRIGATED CROPLAND(BID) dis CRP(BID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS SLO SCAN UR 1 2017, Gm GRAZING, 1s GRAZING (BID), 5s RSIP(BID) , SDNY_GM_00173621 EFTA_0(1195276 EFTA01305521 Ray Powell, M.S., D.V.M. COMMISSIONER July 29, 2011 Zorro Tmst C/O 49 Zorro Ranch Rd. Stanley, NM 87056 State of 9kfrw Mexico Commissioner fl ubric Lanes 310 OLD SANTA PE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504.1148 RE: STATE GRAZING LEASE NO. GR-2122 Dear Lessee: COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org This office has received a certified copy of Power of Attorney for Jeffrey Epstein. However, a $10.00 filing fee is required to file the certified copy. Please submit the filing fee to the address above as soon as possible. If you have any questio Ilona] information regarding this matter, please feel free to contact me at or write to us at the above address. Sincerely, Danny Sandoval Surface Resources Division NM State Land Office SAO SCAN JILT 11 gni SDNY_GM_00173622 EFTA_00 I 95277 EFTA01305522 Zorro Trust 49 Zorro Ranch Road Stanley, NM 87056 Ph: Fax Em State of New Mexico Commissioner of Public Lands Surface Resources Division P.O Box 1148 Santa Fe NM 87504-1148 2011 AUG 29 Ail 7 50 Aug 23rd, 2011 Reference: Sublease Renewal 2011-2012 — Agricultural Lease No. GR-2122-01 Dear Mr. Ulibarri, Please be advised as of the above date Zorro Trust will not be renewing the sublease for GR-2122-01. If you require an further informatio may contact me at the above E Mail address or directly a Sincere! 1/45 ta Kt to I J4‘ 5..5 Lc... s-c Alk.f GA-A-ct IL; 5-8 r-e- " 2, kr r (34k & -*V . 3 Lt (ecjasine w< s ___ p i , .—o CA" ‘e/Let (a(// SLO SCAN 0t1 10 2011 a. a-> rcywest SDNY_GM_00173623 EFTA_00 I 95278 EFTA01305523 NEW MEXICO STATE LAND OFFICE COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 1148, SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GR2122 THIS LEASE, DATED OCTOBER 01, 2011 , IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW MEXICO, HEREINAFTER CALLED 'LESSOR' AND: ZORRO TRUST HEREINAFTER CALLED "LESSEE(S)", WHOSE ADDRESS OF RECORD IS: C/0 49 STANLEY, NM 87056 LESSOR AND LESSEE AGREE AND COVENANT AS FOLLOWS: 1. LEASE. FOR AND IN CONSIDERATION OF AND SUBJECT TO THE RENTALS AND THE TERMS, COVENANTS, CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE AND ALL OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSEE TAXES FROM LESSOR THE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. THIS LEASE IS GOVERNED BY 19.2.8 NMAC(RULE 8). 2. TERM. THE TERM OF THIS LEASE SHALL BEGIN ON OCTOBER 01, 2011 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 2016. 3. RENT. THE ANNUAL RENTAL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NMSA 1978 AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN THE STATE LAND OFFICE ON OR BEFORE OCTOBER 1. THE ANNUAL RENTAL FOR GRAZING LAND SHALL BE DETERMINED AS FOLLOWS ANNUAL RENTAL = BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY SLO RULE 8 "RELATING IO AGRICULTURAL LEASES• (19 N.M.A.C. 3, SLO 8.11). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OF THE EVI,FOR EACH SUCCESSIVE YEAR OF THE LEASE TERM,BE DECREASED OR INCREASED BY MORE THAN THIRTY-THREE AND ONE-THIRD PERCENT.IN THE CASE OF GRAZING RENTAL OFFERS ON OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID, LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL. GRAZING RENTAL DUE IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, ASSOCIATED LAND AND CONSERVATION RESERVE PROGRAM LAND SHALL BE DETERMINED BY LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERM OF THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. 4. PERMITTED USE. LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AND IN ORDER TO COMPLY WITH ALL APPLICABLE PROVISIONS OF LAW REGARDING THE SLO SCAN OCI 10 Viii FEES 4 NHSL0 001-00004 LAND SUSPENSE I NMS10 001-00004 173 0 28-JUL-11 09:53 sup 172 0 28-JUL-11 09:53 751.51 SDNY_GM_00173624 EFTA 00195279 EFTA01305524 BARE AND PROTECTION OF THE LEASED PREMISES. 5. LIEN. AS SECURITY FOR THE PAYMENT OF ANY RENT THAT IS OR MAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL BE PLACED ON THE LEASED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR. ALL IMPROVEMENTS PLACED ON THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED AS UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH THE APPLICABLE LAWS AND RULES. 7. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE THE LEASED PREMISES OR THE IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY LEASE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT BE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. 8. COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY BE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OF THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OF A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT THE CANCELLATION OF THE LEASE AND TERMINATION OF THE COLLATERAL ASSIGNMENT FOR THE NONPAYMENT OF RENTALS OR OTHER VIOLATIONS OF THE LEASE TERMS. 9. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF THE TERMS, CONDITIONS, OR COVENANTS OF THIS LEASE OR THE NONPAYMENT BY LESSEE OF THE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THE COMMISSIONER BE CONSIDERED A DEFAULT AND SHALL CAUSE THE CANCELLATION OF THIS LEASE 3O DAYS AFTER LESSOR HAS SENT WRITTEN NOTICE OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OF COLLATERAL ASSIGNMENTS BY REGISTERED HAIL, ADDRESSED TO THE POST OFFICE ADDRESS OF RECORD, PROVIDED, HOWEVER, IF WITHIN THE THIRTY DAYS THE LESSEE OR HOLDERS OF ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN THE NOTICE, CANCELLATION SHALL NOT BE MADE. 1O. RENEWAL. ANY LESSEE WHO DESIRES TO SECURE A NEW LEASE SHALL MAKE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OF THIS LEASE. THE RIGHT OF RENEWAL SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS PROVIDED FOR BY LAW AND RULE. 11. RESERVATIONS. A. LESSOR RESERVES THE RIGHT TO EXECUTE LEASES ON THE LAND GRANTED BY THIS LEASE FOR MINING PURPOSES AND FOR THE EXTRACTION OF OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND THE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS OF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORTI- r, inr ' SCM! 11,' in ell SDNY_GM_00173625 EFTA 00195280 EFTA01305525 . CULTURAL PRODUCTS AND TO GRANT SUCH OTHER RIGHTS-OF-WAY AND EASEMENTS AS PROVIDED BY LAW. B. LESSOR RESERVES THE RIGHT TO WITHDRAW PURSUANT TO RULE, UP TO 640 ACRES, BUT IN NO CASE MORE THAN HALF, OF THE LAND HELD BY THIS LEASE. 12. COMPLIANCE WITH LAWS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OF LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES WHICH HAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL MATTERS AND THINGS AFFECTING THE LEASED PREMISES AND OPERATIONS THEREON. SUCH OTHER AGENCIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALL SAVE AND HOLD HARMLESS, INDEMNIFY AND DEFEND LESSOR AND THE STATE OF NEW MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND FROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OUT OF OR ALLEGED TO ARISE OUT OF OR INDIRECTLY CONNECTED WITH THE OPERATIONS OF LESSEE UNDER THIS LEASE, OFF OR ON THE LEASED PREMISES OR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NOT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. 15. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE OF ANY OF THE TERMS, CONDITIONS OR COVENANTS OF THIS LEASE SHALL BE HELD TO BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID OR BINDING UNLESS THE SAME IS IN WRITING AND SIGNED BY LESSOR. 16. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OF INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE FROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 18. SUCCESSORS IN INTEREST. ALL TERMS, CONDITIONS AND COVENANTS IN THIS LEASE SHALL EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST OF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE LESSOR RESERVES THE RIGHT DURING THE TERM OF THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MAKE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS MAY BE REQUIRED. 20. SURFACE DAMAGES NOTIFICATION. L I !.! SLO SCAN iP SDNY_GM_00173626 EFTA 00195281 EFTA01305526 PURSUANT TO 19.2.8.21 NMAC, IF LESSEE IS INVOLVED IN LITIGATION WITH ANY OTHER PERSON OR ENTITY FOR DAMAGES CONNECTED WITH THEIR LEASED TRUST LAND, LESSEE MUST NOTIFY THE COMMISSIONER AS SOON AS PRACTICABLE. THIS NOTICE REQUIREMENT DOES NOT APPLY TO LITIGATION INVOLVING ONLY THE LESSEE'S PERSONAL OR REAL PROPERTY. r SDNY_GN1_00173627 EFTA 00195282 EFTA01305527 • I/WE 4fit ta1aa,.L4rls SWAN OF NEW flEXICO ) COUNTY OFT16)045, imp T OREGOING STRectrlyS AC OWLEDGED BEFORE ME THIS &DAY OF 44)AL1132. TE-LESSEE(S) REFERENCED ON THE FACE PAGE OF THIS LEASE. SSOR Oita ACKNOWLEDGMENTS NATURAL PERSON(S) ONER OF •D (NAME OF LESSEE A ED) 5aTtl i° NOTARY T:S PARTNERSHIP STATE OF NEW MEXICO ) ) COUNTY OF ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF 20_, (NAME OF PERSON ACKNOWLEDGED) PARTNER(S) ON BEHALF OF , A PARTNERSHIP. MY COMMISSION EXPIRES: NOTARY PUBLIC CORPORATION STATE OF NEW MEXICO ) COUNTY OF ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF , 20 , BY OF (NAME OF OFFICER) (TITLE OF OFFICER) A CORPORATION, ON BEHALF (CORPORATION NAME) OF SAID CORPORATION. MY COMMISSION EXPIRES: i l l NOTARY PUBLIC SDNY_GM_00173628 EFTA 00195283 EFTA01305528 NEW MEXICO STATE LAND OFFICE APPRAISEMENT OF GRAZING AND AGRICULTURAL LANDS COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING PO BOX 1148, SANTA FE, NEW MEXICO 87504-1148 LESSEE: SECTION 10 OF THE NEW MEXICO ENABLING ACT SPECIFICALLY REQUIRES THAT ALL STATE LAND TO BE LEASED BE APPRAISED AT ITS TRUE VALUE. STATE LAW, UNDER SECTION 19-7-1 NMSA 1978, FURTHER PRESCRIBES THAT SUCH APPRAISEMENT HE SECURED BY THE LESSEE WHEN ACQUIRING A LEASE AND THAT SUCH APPRAISEMENT BE COMPLETED BY A DISINTERESTED PERSON. THE INSTRUCTIONS FOR THE COMPLETION OF THIS FORM ARE SET OUT BELOW. APPRAISEMENT INSTRUCTIONS: THIS INFORMATION MUST BE COMPLETED BY A DISINTERESTED PERSON AND BASED ON THAT INDIVIDUAL'S INFORMATION AND BELIEF. THIS FORM CANNOT BE COMPLETED BY A LICENSED APPRAISER. (NMSA 1978, 61-30-16). YOU CANNOT PAY TO HAVE THIS FORM COMPLETED. (NMSA 1978, 60-30-3A). THE LAND MUST BE APPRAISED AS VACANT, I.E. WITHOUT IMPROVEMENTS, FOR BOTH SALE AND LEASE PURPOSES. IT MUST ALSO BE SIGNED BEFORE A NOTARY PUBLIC. I, FAlii4 M • satat)14431 , DO SOLEMNLY SWEAR (OR AFFIRM), UNDER THE PENALTIES OF PERJURY, THAT AFTER HAVING PERSONALLY INSPECTED THE TRACT(S) OF LAND CONTAINED IN LEASE NO. GrR 2in. AND DESCRIBED IN EXHIBIT A OF SA/p.LEASE, THAT MY OPINION OF THE APPRAIqED CASH VALUE OF SAME (WITHOUT IMPROVEMENTS) IS $ eirties.c1c) PER ACRE, IF SOLD, AND $ A sIC)I, PER ACRE, FOR LEASE PURPOSES, AND CERTIFY THAT I AM NOT INTERESTED IN SAID LAND FOR LEASING OR SALE THEREOF. WO. SIGNED ajt la% . V? dr....jt ADDRESS 72C Cam: MO et, 1.410 Kett CITY/STATE &ilia 4•• Fie f LAM 37 roe SUBSCRIBED AND SWORN TO BEFORE ME THIS 21 DAY OFOO Y 20 II MY COMMISSION EXPIRES: Ant al, 3014: OFFICIAL SEAL Amy Lujan NOTARY PUBLIC .3•INS STATE OF NEW MILXICOd Cornraloolan Ea war 2 1fIr SLO SCAN :• OTARY PUBLIC SDNY_GIA_00173629 EFTA_00 I 95284 EFTA01305529 EXHIBIT A LEASE NO: GR2122 SUBDIVISION SEC-TWN-RNG ACREAGE U PRICE S PER E UNIT CAR CAP L0T1 SW4NE4 ALL L0T2 LOTS L0T4 S2NW4 SW4 RENEWAL LEASE LOT7 02 12N 09E 02 12N 09E 16 12N 09E 238.97 G 280.00 G 640.00 G TOTAL ACREAGE: 1,158.97 TOTAL RENTAL: 12 12 12 $751.51 LEGEND: USE TYPE CODES Cu CONSERVATION RESERVE PROGRAM Iu IRRIGATED CROPLAND, MU 2fl DRYLAND FARMING (BID), 63= Hu 1/2 SOUTH FOR TOWNSHIP, Hu LAND, Du DRYLAND FARMING, MOBILE HOME ON LAND, R- RSIP LAND, IRRIGATED CROPLAND(BID) 4- CRP(BID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS ;1 ft 1 Gu GRAZING, 1- GRAZING (BID), 5- RSIP(BID) , SDNY_GM_00173630 EFTA 00195285 EFTA01305530 LEASE NO. GR2122 MISCELLANEOUS INSTRUMENT PAGE MISCELLANEOUS INSTRUMENT: FILE NO: 8793 POWER OF ATTORNEY GIVEN TO JOHN J. KELLY. AFFIDAVIT: JEFFEREY E. EPSTEIN FOR ZORRO TRUST. MISCELLANEOUS INSTRUMENT: FILE NO: 11373 LIMITED POWER OF ATTORNEY: BRICE GORDON APPOINTED POWER OF ATTORNEY FOR JEFFREY EPSTEIN, TRUSTEE OF ZORRO TRUST. SDNY_GM_00173631 EFTA_00 I 95286 EFTA01305531 IMPROVEMENT LISTING FOR EXISTING LESSEE'S RENEWAL APPLICATION The State Land Office Rule Relating to Agricultural Leases, 19 N.M.A.C. 8.9.2.2. requires you to submit a listing of your improvements located on the state leased land held under this lease with your application. LEASE NUMBER G- R 2- 1 2- 2- (Please check one of the bases) DO IMPROVEMENTS EXIST ON STATE LAND: YES NO IF YES PLEASE LIST BELOW. (none) AU improvements must be listed even if they are on record with our office. LOCATION kar : 0 ,,r4" . ' t‘.1 . lu .1' *Al . I Inclusion of unauthorized improvements on this listing or any appraisal submitted to the Commissioner for any purpose shall not be interpreted as approval of those improvements by the Commissioner. (19 N.M.A.C. 89.11) This office will reject your renewal lease application if this form is not completed. The information provided above is true and correct to the best of my knowledge. Please sign and date. Suture is required whether improvements exist or not. essee Signature Lessee Signature Date: 11 25 -(RD I I SDNY_GM_00173632 EFTA_00 I 95287 EFTA01305532 NEW MEXICO STATE LAND OFFICE. COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 1148, SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GR2122 THIS LEASE, DATED OCTOBER 01, 2006 , IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW MEXICO, HEREINAFTER CALLED 'LESSOR" AND: • ZORRO TRUST HEREINAFTER CALLED "LESSEE(S)°, WHOSE ADDRESS OP RECORD IS: C/O 49 ZORRO RANCH RD. STANLEY,NM 97056 LESSOR AND LESSEE AGREE AND COVENANT AS FOLLOWS: 1. LEASE. 0: r FOR AND IN CONSIDERATION CF AND SUBJECT TO THE RENTALS AND THE TERMS, COVENANTS; CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE AND ALL OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSEE TAKES FROM' LESSOR TEE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. 2. TERM. THE TERM. OF THIS IFASE SHALL BEGIN ON OCTOBER 01, 2006 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 2011. 3. RENT. THE ANNUAL RENTAL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NMSA 1978 AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN THE. STATE LAND OFFICE ON OR BEFORE OCTOBER I. THE ANNUAL RENTAL FOR GRAZING LAND SHALL BE DETERMINED AS FOLLOWS : ANNUAL RENTAL = BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY SLO RULE 8 "RELATING TO AGRICULTURAL LEASES" (19 N.M.A.C. 3, SLO 6.11). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OF THE EVI,FOR EACH SUCCESSIVE YEAR OF THE LEASE TERM,BE DECREASED OR INCREASED BY MORE THAN THIRTY-THREE AND ONE-THIRD PERCENT.IN THE CASE OF GRAZING RENTAL OFFERS ON OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID. LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL GRAZING RENTAL DUE. IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, ASSOC:ATED LAND AND CONSERVATION RESERVE PROGRAM LAND SHALL BE DETERMINED BY LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERM OF THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. 4. PERMITTED USE. LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AHD IN ORDER TO COMPLY WITH ALL APPLICABLE PROVISIONS OF LAW REGARDING THE 516 cat/i 9/fOarf SDNY_GIYL00173633 EFTA_00195288 EFTA01305533 CARE AND PROTECTION OF AE LEASED PREMISES. 5. LIEN. AS SECURITY FOR THE PAYMENT OF ANY RENT THAT IS OR MAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL BE PLACED ON THE LEASED PREMISES WITHOUT THE. PRIOR WRITTEN CONSENT OF THE LESSOR. ALL IMPROVEMENTS PLACED ON THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED AS UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH THE APPLICABLE LAWS AND RULES. 7. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE THE LEASED PREMISES OR THE. IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY /FACE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT DE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. S. COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY RE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OF THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OF A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT THE CANCELLATION OF THE LEASE AND TERMINATION OF THE COLLATERAL ASSIGNMENT FOR THE NONPAYMENT OF RENTALS OR OTHER VIOLATIONS OF THE LEASE TERMS. 9. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF THE TERMS, CONDITIONS, OR.COVENANTS OF THIS LEASE OR THE NONPAYMENT BY LESSEE OP THE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THE COMMISSIONER RE CONSIDERED A DEFAULT AND SHALL CAUSE THE CANCELLATION OF THIS LEASE 30 DAYS AFTER LESSOR HAS SENT WRITTEN NOTICE.OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OF. COLLATERAL ASSIGNMENTS BY REGISTERED HAM, ADDRESSED TO THE POST OFFICE ADDRESS OF RECORD, PROVIDED, HOWEVER, IF WITHIN THE THIRTY DAYS TILE LESSEE OR HOLDERS OP ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN THE NOTICE, CANCELLATION SHALL NOT BR MADE. 10. RENEWAL. ANY LESSEE WHO DESIRES TO SECURE A NEW LEASE SHALL MAKE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OF THIS LEASE. THE RIGHT OF RENEWAL SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS PROVIDED FOR BY LAW AND RULE. 11 RESERVATIONS. A. LESSOR RESERVES THE RIGHT TO EXECUTE LEASES ON THE LAND GRANTED BY THIS LEASE FOR' MINING PURPOSES AND FOR THE EXTRACTION OF OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND THE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS CF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORTI- SONY_GNL00173634 EFTA_00195289 EFTA01305534 CULTURAL PRODUCTS J TO GRANT SUCH OTHER RIGHTS OF-WA 4ND EASEMENTS AS PROVIDED BY LAW, B. LESSOR RESERVES THE EIGHT TO WITHDRAW PURSUANT TO RULE, JP TO 640 ACRES, BUT IN NO CASE MORE THAN HALF, OF THE LAND HELD BY TIIIS LEASE. 12. COMPLIANCE WITH LAWS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OF LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES WHICH HAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL MATTERS AND THINGS AFFECTING THE LEASED PREMISES AND OPERATIONS THEREON. SUCH OTHER AGENCIES SHALL NOT BE DEEMED THIRD PARTY BEt.'EFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALE, SAVE AND HOLD HARMLESS, INDEMNIFY AND DEFEND LESSOR AND THE STATE OF NEW MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND FROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OUT OF OR ALLEGED TO ARISE OUT OF OR INDIRECTLY CONNECTED WITH THE OPERATIONS OF LESSEE UNDER THIS LEASE, OFF OR ON THE LEASED PREMISES OR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NOT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. 15. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE. OF ANY OF THE TERMS, CONDITIONS OR COVENANTS OF THIS LEASE SHALL BE HELD 70 BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID OR BINDING UNLESS THE SAME IS IN WRITING AND SIGNED BY LESSOR. 1G. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OF INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE FROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 18. SUCCESSORS IN INTEREST. ALL TERMS, CONDITIONS AND COVENANTS IN TILTS LEASE SHALT EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST OF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE. LESSOR RESERVES THE RIGHT DURING THE TERM OF THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MAKE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS MAY BE REQUIRED. t. Sf/' 2/f(/8a,97 SDNY_G64_00173635 EFTA_00195290 EFTA01305535 I/WE CERTIFY THAT LESSEE Al REFERENCED ON THE FACE -AGE OF THIS LEASE. 2coolkAs1 LESSEE TELEPHONE TELEPHONE I LESSOR -COMMISSIONER OF PUBLIC ACKNOWLEDGMENTS NATURAL PERSON(S) STATE OF NEW MEXICO 1 s s . COUNTY OF THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF .20_, • • tr BY . 2. (NAME OF PERSON ACKNOWLEDGED) -•••• rnt MY COMMISSION EXPIRES: NOTARY PUBLIC PARTNERSHIP STATE OF NEW MEXICO COUNTY OP FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF 20_, \ -ay INANE OF PERSON ACKNOWLEDGED) PARTNER(S) ON BEHALF' OF A PARTNERSHIP. . MY COMMISSION EXPIRES: GGRABRATEON If NOTARY PUBLIC. STATE OP NEW ) COUNTY OF rift( p(k ) Pak ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS w DAY OF 111-) • • 20_Cia• BY ---sefeci ifutte ( AME OF OFFICER) (TITLE OF OFFICER) ---214 A GatliaLtf, ON BEHALF (GBAPGRATiSNAPIE) OP SAID CORPOPIAMBN. MY COMMISSION EXPIRES: NOTARY PUBLIC OF HARRY I. BELLER Notary Public. State of Now York No. 010E4853924 °unified In Rockland County i9 Commission apices Feb. 17. 20 SDNY_GM_00173636 EFTA 00195291 EFTA01305536 IIIC, vu ncu c..nn ioattots NEW MEAICo STATE LAND OFFICE APVRAISEMENT OF (HOEING AND AGRICULTURAL !ANDS COMMISSIONER OP PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING PO SOX 114U, SANTA FE, NEW MEXICO 0/504.1140 • 0/ 0 LEASEU: necrooN lo OF THU NEW MEXICO ENABLING ACT SPECIFICALLY REQUIRES THAT ALL STATE LAND To BE LEASED UV APPRAISED AT ITS TRUE VALUE. STATE LAW, mei( SECTION 19-7-I WA FTIETHER onesounts THAT SUCH APPRAISEMENT BE SECURED DY THE LESSEE WHEN ACQUIRING A LEASE AND TEAT SUES APPRAISEMENT BE compwriso RY A DISINTENESTED PERSON. THE INSTRUCTIONS FOR THE COMTkETION or THIS POEM ARE WIT OUT nRbow. M1 APPRAiSeMENT '7 .17) :11 INSTRUCTIONS' TNIE INFORMATION MIST DC COMPLETED BY A DISINTERESTED PERSON AND-RA9MAM THAT INUIVIIRML'S INFORMATION AND RELIEF. TIM MEN CANNOT DE COMPLETED BY A LICENSED' MTH/Of:VS. (NASA GI-10- IR) . YOU CANNOT PAY IV HAVE MI5 FORM COMPLETED. (NASA I474, 60-10 1/1). SIZE LANII MUST OR APPRAIRED AS VACANT, I.R. WITHOUT IMPROVEMENTS, FON MOTH sAu AND LEASE PURPOSES. TT MUST ALSO kF STONED BEFORE A NOTARY PUBLIC. I. Vona . .---- . IJO MILIMNLY SMEAR (OR AFFIRM). UNDER IIIE PENALTIES OF PERJURY, r 'ER UAVTNO TERMINALLY INSPECTED THR TRACT(S) OF (AND CONTAINED IN LEASE NO. _ - AND DESCRIBED TN EXHIBIT A Or SAID LEASE, THA a T.)MY OPINION OF TILE APPRAISE. CASH VALUE OF SAME IwITHOUT IMPRovumENTSI IS 0 ACRE, IF SOLD. AND 5 '7.1' __ PER ACRE. IDE LEASE PURPOSES, AND CERTIFY THAT I AM NOT INTERESTED IN SAID LAN .FUN LE/IMMO OR SALE THEREOF. SICNEV ADDRESS. CITY/STATE SOASCRIEED AND SWORN TO DEFORE MK TH7S 19 DAY MY COMMISSION EXPIRES: ( 91L7:70_ OFFICIALSEAL PEKIN Wirnbry NOTARYPIMUCeSTATE Cc NEWICal VICallattainr :O12L0 7111.5€___ FORME SONY_GM_OO173637 EFTA 0(1195292 EFTA01305537 EXHIBIT A LEASE NO: GR2122 SUBDIVISION SEC-TWN-RNG ACREAGE U PRICE S PER E UNIT CARRY CAP • LO71 SW4NE4 ALL LOT2 S2NW4 RENEWAL LEASE LOT3 LOT4 SW4 LOT7 02 12N 09E 02 12N 09E 16 12N 09E 238.97 G 280.00 G 640.00 TOTAL ACREAGE: 1,158.97 TOTAL RENTAL: 12 12 12 51,087.72 LEGEND: USE TYPE CODES C. CONSERVATION RESERVE PROGRAM I. IRRIGATED CROPLAND, Mm 2= DRYLAND FARMING (BID), 3. N• 1/2 SOUTH FOR TOWNSHIP, H• LAND, D- DRYLAND FARMING, MOBILE HOME ON LAND, Rs RSIP LAND, IRRIGATED CROPLAND(BID) 4. CRP(BID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS Gm GRAZING, 1m GRAZING (BID), 5m RSIP(BID) SONY_GM_0O173638 EFTA_00195293 EFTA01305538 MISIALLANEOUS INSTRUMENT: FILE NO: 8793 POWER OP ATTORNEY GIVEN TO JOHN J. KELLY. AFFIDAVIT: JEFFEREY E. EPSTEIN FOR ZORRO TRUST. SDNY_GM_00173639 EFTA 00195294 EFTA01305539 IMPROVEMENT LISTING FOR EXISTING LESSEE'S RENEWAL APPLICATION The State Land Office Rule Relating to Agricultural Leases, 19 N.M.A.C. 8.9.2.2. requires you to submit a listing of your improvements located on the state leased land held under this lease with your application. LEASE NUMBER aR 9.‘P (Ilene check one of the boxes) DO IMPROVEMENTS EXIST ON STATE LAND: YES IF YES PLEASE LIST BELOW. NO (none) All improvements must be listed even if they are on record with our office. LOCATION 0 N YEA ‘4Y \a I a anoa it, IQ Nod OA kitti .-"ripary r- - c., rn • .. ...- - ..Z.I I ., 0 : .../ Ci:. . . • Inclusion of unauthorized improvements on this listing or any appraisal submitted to the Commissioner for any purpose shall not be interpreted as approval of those improvements by the Commissioner. (19 N.M.A.C. 8.9.11) This office will reject your renewal lease application if this form is not completed. The information provided above is true and correct to the knowledge. Please sign and date. Signature is required whether improvements Lessee Signature Date: 16'1 0 t to ,PICA" auri T _UP/LW I JOMPV EFTA_00 I 95295 EFTA01305540 (PATRICK H. LYONS a COMMISSIONER 2 0 State of Mexico Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1108 SANTA FE. NEW MEXICO 87504.1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatel ands.org September 18, 2006 Zorro Trust 49 Zorro Ranch Rd. Stanley, Nm 87056 Re: State Agricultural Leases No. GR-2088 & GR-2122 (Sublease No. GR-2088-0001) & (Sublease No. GR-2122-0001) Dear Mr. Epstein: Please find enclosed a copy of your approved sublease application. Your sublease will commence on October 1, 2006 and will expire on September 30, 2011. If you have an uestions please feel free to contact me at the address above or at . Sincerely, A" 4,07/1 t Leroy A. Ulibarri Surface Resources Division NM State Land Office end. Stole Lend Office Beneficiaries • Card( Tsosky Hospiul • Charimatilt Prot k Ratan • Comma Schools • bun,, NM University • Rio Groner improsiont ea • Mimi Nosyisal of NM tiNM Soya S. hoot • NM Hipslamb Ur:unity • NM lassisce of Minis, k Tethooloby • New Mexico Milieu lesiinee•inn Scheel for the Deaf • NM Selmol for ,he Visually listalcuised • NM Swat Hospisol • New M.sA Sow U.imsity • Nook,, NM Commorany Concle • Penitemicy of New Mesita • Pobbc Roildinp as Capital • State Put Commission • Chinn* of New Moire • UNM Saint Laois • War Racoons • We sum New Meeks Usisenhy SDNY_Gtd_00173641 EFTA_00 195296 EFTA01305541 O 1PATRICK H. LYONS p COMMISSIONER re 6 State ofgsfew Mexico Commissioner ofPubrie Lan& Zorro Trust 49 Zorro Ranch Rd. Stanley, Nm 87056 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87504-1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.mostatelands.org September 18, 2006 Re: State Agricultural Leases No. GR-2088 & GR-2122 (Sublease No. GR-2088-0001) & (Sublease No. GR-2122-0001) Dear Mr. Epstein: Please find enclosed a copy of your approved sublease application. Your sublease will commence on October 1. 2006 and will expire on September 30, 2011. If you have an uestions. please feel free to contact me at the address above or at Sincerely, y 6. , C./.46rhy t Leroy A. Ulibarri Surface Resources Division NM State Land Office end. -Sink Lend Office Beneficiaries - Conk Gorky Hospital • Chattble Penal & Reform • Common Schools • Eastern NM Urhusky • Rio Gnat Imitittemem • Minns* Hossnel of NM •NM Boys Scheel • NM Hiehhodt Uninmity • NM le** of Minns & intookey • New Met* Minn* Innimm•NM Stool foe the Deaf • NM Stool for the Vimally Hanerappen • NM Son ihminnl • New Mest> SI= Uainnky • Nonktere NM Cormaiy Collet • Penitentiary of New Alnico • Ptak BMW*, to Centel • Slue Pen Commits** InitenIty of New Mestin• VNM Saline bød, • We* Resents' • Pietro New Moto tlethenity SONY_GM_00173642 EFTA_00 I 95297 EFTA01305542 O ZORRO RANCH 49 ZORRO RANCH ROAD 1 STANLEY, NM 87056 TELEP11O : F •  E MAIL 6 August 24, 2006 Commissioner of Public Lands State Land Office P.O Box 1148 Santa Fe NM 87504-1148 Reference: Sublease Renewal — Agricultural Lease No. GR-2122 (2006-2007) Dear Mr. Leroy A. Ulibarri, Reference your letter dated August 15, 2006, concerning sublease renewal for Agricultural Lease No GR-2122, enclosed you will fmd 2 copies which have been notarized and signed. The attached rental for 2006-2007 of S217.54. If there are in questions or concerns please do not hesitate to call Sincerely 4.- Ranch Manager 101 '3d 31NVS 331430 CNY1 31Y1S OS Z. LIU 82 ON 90C? 03A13038 SDNY_GM_00173643 EFTA_00 195298 EFTA01305543 13 a C NEW MEXICO STATE LAM) OFFICE APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL OUT IN INK) I/We, Znao , of , gi-anfed bPIEIClot ssioner of Public Lands, do hereby (mailing address) 4C1 ./C4(00 a tICEM , being lessee(s) under Agriculture Lease No, GQ-gt make application to sublease the lands described as follows: SUBDIVISION • SEC. TWP. RANGE ACRES r! a " k e kida De E,yhiblk- 6 - aloud haze . 4o c*--• , . If additional space is needed to describe legal subdivision, please attach additional sheet using the above format Please give name of sublessee and mailing address: 4A 70110 (2erdr) It being understood that said permission to sublease does not in any way relieve me/us from obligation assumed under the lease stated above. Sublease term on the designated lands to commence October 1, 20 an , and to expire on September 30, 2efirt— , (Sublease cannot be given beyond expiration date of lease.) ;ail p-e4 te-"•, •—• Cocd e., €7.--1)--04 I give reasons this land is being subleased: I trOno- The number, type, class of livestock, and period of use, are as follows: LIVESTOCK NO. KIND a S-01 (Revised 01/2001) rbki CLASS (b5us &es' Oceo PERIOD OF USE FROM TO N 33 31MVS 301.440 n3 Z. ILA CtiV1 82 Nil 90C3 33/11303V FEES 4 181431.0 001-00003 42 0 20-AUG-06 09347 217.54 SDNY_GM_00173844 EFTA_00 195299 EFTA01305544 5 0 1 • .EASE NO: GR2122 7 EXHIBIT A O 6 SUBDIVISION SEC-TWN-RNG ACREAGE U PRICE S PER 2 UNIT CARRY CAP • .01'7 ft.• 02 122 09E 33.29 G 12 .021 e••• 02 121 092 43.12 G 12 £T2 02 121 09E 94.14 12 ,OT3 02 121 092 54.18 G 12 .0T4 02 122 09E 54.24 G 12 0/41114 S2284 SW4 02 122 a9E 280.00 0 12 ILL 18 121 092 640.00 6 12 WNEVAL LEASE TOTAL ACREAGE: 1,158.07 TOTAL RENTAL: L-Fai posaletc, USUbm: use TYPE CODES 7---oNsERvarios RESERVE PROGRAM RRIGATED CROPLAND, H= 201 DRTLAND FARNIING (BID), 3= E. 1/2 SOUTH FOR TOWNSHIP, fir LAND, D= DRYLAND EARNING, MOBILE HONE ON LAND, it.. RS1P LAND, IRRIGATED CROPLAND(BID) 4n CRP(BID) 1/2 EAST FOR RANGE • cAREMING CAPACITY RATSs LISTED ARE BASED ON 640 ACRE PARCELS 9949.28 G4 GRAZING, 1= GRAZING (BID). 5= REIP(BID) SONY_GMJX1173&45- EFTA_00195300 EFTA01305545 _5 A • C • NEW MEXICO STATE LAND ORE ICE APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL OUT IN DEC) IfWe, • of (mailing address) ci t(9 Ad^ 2a.a. NMrlObb, wing lessee(s) under Agriculture Lease No. t aa granted by the Counds.rifter of Public Lands, da hereby make application to sublease the lands described as follows: SUBDIVISION SEC. MP. RANGE ACRES Cr2(1 _ th e t LA n'Sck A -aiccliork Nola-o If additional space is needed to describe legal subdivision, please attach additional sheet using the above format Please give nameAf sublessee and mailing address: L - & Ain5 14Ck 2ato Lock eard, ) 610:510 It being understood that said permission to sublease does not in any way relieve me/us from obligation assumed ander the tease stated above. Sublease term on the designated lands to commence October 1, 20.O t and to expire on September 30, 200h • (Sublease cannot be given beyond expiration daze of lease.) Give reasons this land is being subleased: li PCACFP The number, type, elms of livestock, and period of uses are as follows: NO. la S-01 (Revised 01/2001) LIVESTOCK KIND CLASS PERIOD OF USE FROM TO 5“.51J4"5.c 3 A/ mst o ot_ 6 oi, ic 7) SL0SCAll 5/ 23/ 2006 SDNY_Ghl_00173646 EFTA_00195301 EFTA01305546 Please indicate the person and/or party that you wish our field representative to contact relative to this -plicaeon to sublease: Name: V)fl()7 CINCtIrl Address: WI 200Q etaircb grid Stc-:n NM t1060 Home Telephone No. 09DS 839 Db- 115 Business Telephone No. ,5:FT, cACIOGQI.f Include 20% (twenty-percent) of the yearly rental with completed Sublease Application Form. The minimum fee foisubleasing is 550.00 (fifty dollars). Lige&t EalArri F cif) . do solemnly swear (or affirm) that statements d answers to the estions in this application are true and correct to the best knowledge and belief. ANY FALSE STATEMENTS CONTAINS WILL SUS My LEASE OR LEASES TO CANCELLATION. Signed: Signed: Lessee St7RI BED AND S_WQRN to before mu this by ?t1-4-7 e it( day of Apm-, 2oPIS (name of Avieultural Lessee} MY COMMISSION EXPIRES: HARRY I.BELLER Netenr Public, State of New York .Np..0100.085.3224, Qualified in Rockland County, Commission Expires Feb. 17, 2041 Notary Public P 4 4-r Lyo k.) 5 o COMMISSIONER OF PUBLIC LANDS, do hereby grant the lessee(s) listed above penniision to sublease the above described land. • APPROVED THIS i day of NI 4- 1/41 01 (Revised 01/2001) L IC $ IMOSa I I ,,20c9c, • CL-±CSA:k 7$ COMMISSIONER OF PURL` /I i I3 035 30,/3I/F SDNY_GM_00173647 EFTA_00 195302 EFTA01305547 ZORRO RANCH 49 ZORRO RANCH ROAD STANLEY, NM 87056 TELEPHO • F O • E MAIL: August 24, 2006 Commissioner of Public Lands State Land Office P.O Box 1148 Santa Fe NM 87504-1148 Reference: Sublease Renewal — Agricultural Lease No. GR-2122 (2006-2007) Dear Mr. Leroy A. Ulibarri, Reference your letter dated August 15, 2006, concerning sublease renewal for Agricultural Lease No. GR-2122, enclosed you will find 2 copies which have been notarized and signed. The attached rental for 2006-2007 of S217.54. If there are in questions or concerns please do not hesitate to call Sincerely Ranch Manager 2 7 'W•M '33 31NVS 351330 0NV1 31V1S OS /. 148 82 0118 900? 03A1303 SDNY_GP.4_00173648 EFTA_00 I 95303 EFTA01305548 12 2 2 O 5 NEW MEXICO STATE LAND OFFICE APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL OUT IN INK) 1 • i•• Ve, 7,010LUe li , of (mailing address) i.414 pactastXrtai MI18-eft , being lessee(s) under Agriculture Lease No --,c) I , giantred 'by the Conhaaissioner of Public Lands, do hereby make application to sublease the lands described as follows: • SUBDIVISION . • .. SEC. TWP. RANGE ACRES ri • .. 7 & 1 _ 2e em--d , D EykS n - ofkkickel Kae . 43 If additional space is needed to describe legal subdivision, please attach additional sheet using the above format Please give name of sublessee and mailing address: relieve me/us from It being understood that said permission to sublease does not in any way obligation assumed under the lease stated above. Sublease term on the designated lands to commence October 1, 20 O4o and to 30, 20-erl— , (Sublease cannot be given beyond expiration date of lease.) p-ct K.c,w Cox e., 47-1.y.ta cts, Gve reasons this land is being subleased I i : COrS2 The number, type, class of livestock, and period of use, are as follows: NO. LIVESTOCK KIND CLASS 25 Mkt CoAts ahg.Ass dc63 -` Iv II : 1 01.4d0 la at kilo einel1/4.0 Qom n; 2. a (Ar6isectsa n -1 S-01 (Revised 01/2001) ' expire on September PERIOD OF USE FROM 3INVS NV1 31.V.LS 82 3(111 SOC, 13038 FEES 4 NMS1.0 001-00003 42 0 28-A00-06 09347 217.54 SDNY_GM_00173649 EFTA_001195304 EFTA01305549 5 p C EXHIBIT A ,EASE NO: GR2122 P SUBDIVISION SRC-TWIG-RNO ACRE= U PRICE R PRR 2 UNIT CARRY CAP • An/ .- - 02 12N 096 33.29 G 12 .021 - - 02 12N O9E 43-12 G 12 J322 0:3 - - - - 02 02 12N O9E 12N 096 54.14 54.18 CC 12 12 4714 - - - 02 12N O9B 54.24 6 12 31441184 112}1144 SW4 02 12N 098 280.00 G 12 tLL 16 12N 0913 640.00 G 12 2ENEWAL LEASE TOTAL Ar9EArE: 1,1S8-91 TOTAL RENTALs ton cio..)Q- Onkel. 1.1868NO- USE TYPE CODES 'ON66RVATID$ RESERVE PROGRAM 1 ARIOATED CROPLAND, N= 2- DRYLAND EARNING (DID), 3= is 1/2 SOUTH FOR TOWNSHIP, H= LAND, D= BRELAND EARNING, SMILE HONE ON LARD, RS/P LAND, IRRIGATED CROPLAND(RID) 40, CRPIBID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS $949.28 Gn GRAZING. 1= GRAZING (BID), 54, RSIP(BID) SDNY_GM_0017313,5O EFTA_00195305 EFTA01305550 SA„ tzt't NEW MEXICO STATE LAND OFFICE APPLICATION TO SUBLEASE STATE TRUST LANDS (PLEASE FILL, OUT IN INK) ime. 2QT wk.)._ of CODCA, Skrin ca sit YY 310I% being lessee(s) under Agriculture Lease 21,1? , vented by the • nee of Public Lands, do hereby (mailing address) make application to sublease the lands described as follows: SUBDIVISION SEC. TWP. RANGE ACRES 012(2W WL1Pt. LvIn'Aok A - attockod hde -to . If additional space is needed to describe legal subdivision, please attach additional sheet using the above format Please give name of sublessee and mailing address: G ex Ary-L 4R ?nip ()Lk eccx-1, N 61056 It being understood that said permission to sublease does not in any way relieve me/us from obligation assumed under the lease stated above. Sublease term on the designated lands to commence October 1, 201)5 , and to expire on September 30, 2,0O11 (Sublease cannot be given beyond expiration date of lease.) Give moony this land is being subleased: The number, type, class of livestock, and period of use, are as follows: LIVESTOCIC PERIOD OF USE NO. KIND CLASS FROM ID '55 to 8-01 (Revised °wall) I ( pci (MS i-An J S.,4/144.1 3 A"^ 51 tvbc. SI OS CAN 5/2.3/2006 0 CZ 8- 0 6 Pk * 7 ST V SDNY_GM_00173651 EF1'A_00195306 EFTA01305551 ER- a i?-)-- Please indicate the person and/or party that you wish our field representative to contact relative io this Iplication to sublease: Name: ?Dna? 10 &lapin._ Address: Home Telephone No. 606 63P X115 Business Telephone No. ri) caCi °C ate. Include 20% (twenty-percent) of the yearly rental with completed Sublease Application Form. The minimum fec for subleasing is $50.00 (fifty dollen). Educti E do solemnly swear (or affirm) that statements and answers to the. ns in this application arc true and correct to the ben o knowledge and belief. ANY FALSE STATEMENTS CONTAINED WILL SU MY LEASE OR LEASES TO CANCELLATION. Signed: Lessee day Ad) SU7RII3ED AND SW9.12N to before tau this A' Or , by 124-P-,7 (name of Agricultural Lessee} MY COMMISSION EXPIRES: 2024 , HARRY I. SELLER /Notary Public Notary Pub.1lic, State of New York No118W353924 Qualified in Rockland County„ Commission Expires Feb. 17, 2C P ;-r -}-n IC. U. Lir> P1/4.1 . COMMISSIONER OF PUBLIC LANDS. do hereby grant the lessae(s) listed above perrniesien to sublease the above described land. L I- ' APPROVED THIS I day of M 14- 1/41 01 (Revised 01/2001) 1 IS I ISCOOSLM ( Ce. 20 Of) . 13 0x-÷Ct.C.k - COMMISSIONER OF PURL il: IZ 031 90./ZI/Y SDNY_Ght00173652 EFTA_00 195307 EFTA01305552 .?RICK H. LYONS COMMISSIONER State of New Mexico Commissioner ofPadhc Lands MO OLD SANTA FE TRAIL BOX 1148 SANTA FE, NEW MEXICO 875044 148 May 8, 2006 Zorro Trust C/O Jeffery E. Epstein 457 Madison Ave. New York, NY 10022 Re: State Agricultural Lease No. GR-2122 (Sublease No. GR-2122-0001) Dear Lessee(s): COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827.5766 www.nmstatelands.org Please find enclosed a copy of your approved sublease application. Your sublease commenced on October 1, 2005 and will expire on September 30, 2006. If you have an uestions, please feel free to contact me at the address above or at Sincerely, Leroy A. Ulibarri Surface Resources Division NM State Land Office end. -Stole Land Office Beneliefariet • CMS Tinley BosMul • Clarinble Petal & Reform • Common Senn* • EartemNM Uritrrany • Rio Graf* Impret !nem • Mktn Hospital of NM •NM Boys Sthbal • NM Malan& Unvenior • NM /renew of Minas & Tech.:44y • New Mahe Mitsui). laultice•NM Sebeel for the Deaf • NM Scheel for the Viseally Handicapped • MA Stare &vial • New Whim &me Usiwnity • Mantra NM Conwanity Cohn • NMICIllbly of New Mtuco • Publr Boildiogs no Capital • Sap Park Comoduion • Wheezily of New Mexico • 1.R4M Saline lemalt • Weter Kennon' • we item Nen Meek* Betimes SDNY_Ght00173653 EFTA_00 I 95308 EFTA01305553 .TRICK H. LYONS COMMISSIONER State of Vw Mexico Commissioner of Public Lands 3I0 OLD SANTA FE WAIL P.O. BOX 1146 SANTA FE. NEW MEXICO 87501.1148 May 8, 2006 Zorro Trust C/O Jeffery E. Epstein 457 Madison Ave. New York, NY 10022 Re: State Agricultural Lease No. GR-2122 (Sublease No. GR-2122-0001) Dear Lessee(s): COMMISSIONER'S OFFICE Phone (505) 827.5760 Fax (505) 827-5766 www.nmstatelonds.org Please find enclosed a copy of your approved sublease application. Your sublease commenced on October 1, 2005 and will expire on September 30, 2006. If you have an uestions please feel free to contact me at the address above or at Sincerely, PN, Leroy A. Ulibarri Surface Resources Division NM State Land Office end. -Sate land Office litentlkisries • Cara Tiogky HospMal • Charitable Peal @ Reform • COMM* SOMAS • Went NM Winn's). • Rio Grade hopeontret • Mime's' Noon: of NM WM Boys School • CM Malta@ Uhvenhy • NM Inclose of Mislay tis Teattoioety • New Make MAtny intema•NM Wool for the Daf • NM School for the Venally Nornkroopal • NM Slit Nurial • New Mexico Su* theiversity • Northern NM Conenutity Carr • Penetemiaty of New Wake. • Put& Stelleloys at Copia' • Sulu Pak Cecnniission • UnIseniiy0 Nein Mexico • UNM Saline Leads • Wan Resercoin • tilemeallictMeelte Ihiversity Ciin V27/ ,'"'“' SDNY_GM_00 173654 EFTA_00 195309 EFTA01305554 PATRICK H. LYONS COMMISSIONER State of New Mexico Commissioner ofPubric Lands 310 OLD SANTA PE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87509-1148 May 1, 2006 Zorro Trust C/O Jeffery E. Epstein 457 Madison Ave New York, NY 10022 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org Re: State Agricultural Leases No. GO-2088 & GO-2122 Dear Lessee(s): Enclosed please find 2 Applications to Validate Improvements. While on other field evaluations on the Zbrro Trust Ranch the District Resource Manager noticed several unauthorized improvements. If you would like to have these unauthorized improvements added to your lease, please fill out the enclosed applications. Please be aware that the applications for approval of unauthorized improvements does not necessarily guarantee that the improvements will be authorized or that the value allowed will be equal to 100% of the value estimated by the State Land Office. Our District Resource Manager will investigate the situation on site and make a recommendation. Please feel free to contact me at the address above or at you have any questions or need further assistance. Sincerely, Leroy A. Ubbarri Surface Resources Division NM State Land Office -Stele ]hod Office Benellcieria • Ca 7sislry Nospiul • Clorhsbk Pool & Reform • Common Sticok • Easier* NM Ihwasity • Rio Gnu* Imports:cm • Mien' Howls) of NM •NM Bois Sekol • NM High/sods Univenny • NM *rime of Million & Torimolosy • New Moak, AGSweyjS•NM &Most tot the Oaf • NM School foe ite Visually HantStipped • NM Slue Hospital • New &Naito Soto UniversimeWmfreiNtScarkfitContfii . s: twiny of New Mexico • horse &WM op in Csill& • Sur Pad Commission • Uthereley of New Make • UNM Saline Lase' •Oidib SteMevoies • Nun New Mimeo Lineman), SDNY_GM_00173655 EFTA_00195310 EFTA01305555 PATRICK H. LYONS COMMISSIONER State of New Mexico Commissioner of agic Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 May 1, 2006 Zorro Trust C/O Jeffery E. Epstein 457 Madison Ave New York, NY 10022 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmsIaletands.org Re: State Agricultural Leases No. GO-2088 & GO-2122 Dear Lessee(s): Enclosed please find 2 Applications to Validate Improvements. While on other field evaluations on the Zorro Trust Ranch the District Resource Manager noticed several unauthorized improvements. If you would like to have these unauthorized improvements added to your lease, please fill out the enclosed applications. Please be aware that the applications for approval of unauthorized improvements does not necessarily guarantee that the improvements will be authorized or that the value allowed will be equal to 100% of the value estimated by the State Land Office. Our District Resource Manager will investigate the situation on site and make a recommendation. Please feel free to contact me at the address above or at if you have any questions or need further assistance. Sincerely, 9-16017, - Leroy A. Ulibarri Surface Resources Division NM State Land Office -State Land Office Beneficiaries - Carne Bask, Hospital • Charitabk POW & WWII • Common Schools • Easton NM Unithrtity • Rio Grande Houthe wens • Minn' Homed of NM •NM Boys School • NM Nighbrals Uthwisity • NM Institute of Miming & Tectookly • New Make MiktuaRtitar•NM School for the Deaf • NM Schaal for the Visualiy Handicapped • NM Suet Kenosha • New Meath Sloe Uaimsity • aMphifts ryhtsCliNneMeeir Calk* h'Penienthwy cat* Menet • Pah* Wisp se Capasi • Snit Pwk Commission • Wive:My of New Moths • UNM Seine Leaf. W4IU Rtherthin • Mutes, New Moths Wave:shy SDNY_GM_00173656 EFTA_0019531 I EFTA01305556 ZORRO RANCH 49 ZORRO RANCH ROAD STANLEY, NM 87056 TELEPHONE FAX: E MAIL: April 20, 2006 New Mexico State Land Office Surface Resource Division 311 Old Santa Fe Trail PO Box 1148 Santa Fe NM 87504-1148 Reference GR — 2088 & OR -2122 Attention Leroy Dear Leroy, As per our conversation and you fax 4/10/06 reference submitting Application Sublease State Trust Land, attached you will find 2 separate applications for OR 2088 & GR 2122, completed as per the additions you required i.e. signing J. E Epstein. Thank you for your patience in this matter and hope that this completes all the changes and additions that you require, if you have any questions or concerns please call Sincerely p-1) Ranch Manager /23/2006 1:L0SCAll 5 SDNY_GM_00173657 EFTA_00195312 EFTA01305557 ZORRO RANCH 49 ZORRO RANCH ROAD STANLEY, NM 87056 April 20, 2006 New Mexico State Land Office Surface Resource Division 311 Old Santa Fe Trail PO Box 1148 Santa Fe NM 87504-1148 Reference GR — 2088 & GR -2122 Attention Leroy Dear Leroy, As per our conversation and you fax 4/10/06 reference submitting Application Sublease State Trust Land, attached you will find 2 separate applications for GR 2088 & OR 2122, completed as per the additions you required i.e. signing 7. E Epstein. Thank you for your patience in this matter and hope that this completes all the changes and additions that you require, if you have any questions or concerns please call Sincerely . , • c:> Ranch Manager etosC Al4 fill 3/2006 SDNY_GM_00173658 EFTA_00 I 953B EFTA01305558 . ATRICK H. LYONS COMMISSIONER State of Vw Mexico Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87504-1148 Tune £. "004 Zorro Trust 457 Madison Avenue New York, NY 10022 Attn: Jeffrey E. Epstein Re: State Agricultural Lease GR-2 I 22 Dear Mr. Epstein: COMMISSIONER'S OFFICE Phone (505) 827-5760 Fox (505) 827-5766 www.nmaamlands.org Please fmd enclosed an approved copy of your improvement application. Note that the Commissioner has chosen to grant you 25% of the value for the improvement. Please be aware that the Commissioner must give prior approval to placing any type of improvement to state trust land. I am enclosing additional improvement application forms which may be used to apply for an new im rovement(s) in the future. If you have any uestions lease contact me at or Jerry King, Assistant Commissioner at Sincerely, Mary DilBose Surface Resources Division End: as stated "WORKING' FOR EMOCAnroN" 4.0.mo tmer• SDNY_GM_00173659 EFTA_00 195314 EFTA01305559 4TRICK H. LYONS COMMISSIONER State of New Mexico Commissioner of Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87504.1148 Jun g. 7004 - Zorro Trust. 457 Madison Avenue New York, NY 10022 Ann: Jeffrey E. Epstein Re: State Agricultural Lease GR-2122 Dear Mr. Epstein: COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org Please find enclosed an approved copy of your improvement application. Note that the Commissioner has chosen to grant you 25% of the value for the improvement. Please be aware that the Commissioner must give prior approval to placing any type of improvement to state trust land. I am enclosing additional improvement application forms which may be used to apply for an new im rovement(s) in the future. If you have any estions lease contact me at or Jerry King, Assistant Commissioner at . Sincerely, Mary D Bose Surface Resources Division End: as stated "WORKING FOR fibERATION" SDNY_Ght00173660 EFTA_00195315 EFTA01305560 To: New Mexico State Land Office From: Jeffrey E. Epstein, Trustee of Zorro Trust Date: March 25, 2004 We respectfully submit for the approval and consent of the Commissioner of Public Lands the enclosed original Application for Permission to Make Improvements of Zorro Trust, in triplicate, relating to the Public Lands in Lease No. GR2122, together with a check for the application fee in the amount of $30 payable to the Commissioner of Public Lands. Please direct an comments or questions you may have regarding the Application to Mr. Brice Gordon . If the Application is acceptable, please forward an original copy of the Application with the Commissioner's consent provided thereon to Mr. Gordon at 49 Zon-o Ranch Road, Stanley, New Mexico 87056. We thank you for your consideration. .1171 '3d vnivs 301430 ONfl 31VIS 90 8 YU 62 Ililli Moe 03/0J028 SDNY_GM_00173661 EFTA_00 I 95316 EFTA01305561 To: New Mexico State Land Office From: Jeffrey a Epstein, Trustee of Zorro Trust Date: March 25, 2004 We respectfully submit for the approval and consent of the Commissioner of Public Lands the enclosed original Application for Permission to Make Improvements of Zorro Trust, in triplicate, relating to the Public Lands in Lease No. GR2122, together with a check for the application fee in the amount of $30 payable to the Commissioner of Public Lands. Please direct an comments or questions you may have regarding the Application to Mr. Brice Gordon . If the Application is acceptable, please forward an original copy of the Application with the Commissioner's consent provided thereon to Mr. Gordon at 49 Zorro Ranch Road, Stanley, New Mexico 87056. We thank you for your consideration. Jan: ..t.u4vs 3014io onvi gins 90 8 Liu 62 yin j hOot 0:13Ai o3d SONY_GM_00173662 EFTA_00 I 95317 EFTA01305562 t .tICK H. LYONS COMMISSIONER StatedoPtcw Mexico Commissiwner of Public Lands 3101/41DLD SANTA FE TRAIL F P.O. BOX 1148 SANTA P3.; NEW MEXICO 87504-1148 Zorro Trust C/O Jeffrey E. Epstein 457 Madison Ave. New York, NY 10022 Re: State Agricultural Lease;Ro. GR-2122 Dear Mr. Epstein: COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org March 30, 2004 This office has received yrsur application for Permission to Make Improvements. Please be aware that you should not begin your improvement project until you receive the application back with the Commissioner's signature. Any improvement(s) placed without the Commissioner's approval is considered unauthorized. This office will send a District Resource Manager to inspect your proposed improvement on mite and to make a recommendation. Typically, At takes four to sirweeks until we can approve or disapprove the application. If you have uestions *ease feel free to contact me at the address above or at Sincerely, LW, Y. hithe -Lucille V. Martinez -Surface Resources Divisi NM State Land Office "WORKING FOR EDUCATION" SON Y_Ght00173663 EFTA_00195318 EFTA01305563 HOC H. LYONS LOMMISSIONER State:to/Wm Mexico Commissioner onabliciands M00:DLO SANTA FE TRAIL FP.O. BOX 1148 SANTA tom: NEW MEXICO 87504-1148 Zorro Trust C/0 Jeffrey E. Epstein 457 Madison Ave. New York, NY 10022 Re: State Agricultural Leasellb. GR-2122 Dear Mr. Epstein: COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nntstatelands.org March 30, 2004 This office has received yanar application for Permission to Make Improvements. Please be aware that you should not begin your improvement project until watt receive the application back with the Commissioner's signature. Any improvement(s) placed without the Commissioner's approval is considered unauthorized. • This office will send a District Resource Manager to inspect your proposed improvement on site and to make a recommendation. Typically, it takes four to sissweeks until we can approve or disapprove the application. If you have an uestions pikase feel free to contact me at The address above or at Sincerely, tills 1! Ault, -Lucille V. Martinez Surface Resources Divisi NM State Land Office "WORKI.VG FOR EDUCATION" SDNY_GA4_00173664 EFTA_00195319 EFTA01305564 APPROVAL DATE • NEW MEXICO STATE LAND OFFICE APPLICATION FOR PERMISSION TO MAKE IMPROVEMENTS (Please complete in ink) UcrFrcy Er s-Et i of Zorro I r u st herewith make application for the written consent of the Commissioner of Public Lands to make improvements on the lands in Lease No. G 82122 , described below. Designated contact person: Bri cc. G ordoh Phone No. SUBDIVISION SEC. TWP. RGE. ACRES 6E / sw'/4 If any or all proposed improvements are to be built under a federal cost-share program, please indicate which program or programs are involved and give actual cost of each item. Well (give depth and description) Value $ Fences (gite length, i.e., miles or footage and kind) Value $ Windmill Value $ Other improvements (describe): Placement of ca, Dritnrir nib Fe ea/ /rood Value $ Ccipo e Oh, S. 481s S ISTYM ON ecZet ;8„j reacts; .7,•,:tr ai te4 n 042,0..5 AX f:3714 Value Irc,,,"" pc, jyr.2;;"%pa. --1,1" X ^,:.:, -: era wii i, e. i7.-4,....ctri 4+1 hf. 2- 5.64.:+1,.q7 Value $ -79: ..., A.,—.7 pr-i ,A. (I bee•Sill - -, 7-Eivia rs )::f7.2. 1.17;a eirteLAI e.I i s ad n: TOTAL VALUE OF IMPRO Value SS 9 Li . °Cid. Amount to be defrayed by federal cost-share program, if any List name of cost-share program(s): ra t Total economic cost expended by LESSEE Value $ H 4 000 Estimated tim pietion: One Month z.oeR.o ert-o4 a- ocesn LESSEE . • , Commissioner of Public Lands, hereby give my consent to the above lessee(s) to make improvements as listed above, conditioned upon the completion of such improvement(s) on or before Jti/y 20 D to . 'WE '33 VINVS g 7 , 331430 U111 .3 01M1h1 19 ItySIONFROFetUrIC 7(dX S S-09 (Revised 1/2001) APPLIM70% tirdS3L0 861 Appall/0j radtat d 025% Ataud03A1B038 FE2E0S 0 29_040_04 00:443UHR0 001-00604 (--fitst_ 4- t5 -O1 30. no SDNY_GM_00173665 EFTA_00 I 95320 EFTA01305565 NEW MEXICO STATE LAND OFFICE APPLICATION FOR PERMISSION TO MAKE IMPROVEMENTS (Please complete in ink) icFrey ifs of leer ro ru st herewith make application for the written consent of the Commissioner of Public Lands to make improvements on the lands in Least No. G R2.122. , described below. Designated contact person: -Bin cc. Got-clot, Phone No. SUBDIVISION SEC. TWP. RGE. ACRES 6E 1/4 SW 141- 2 I 2_N SE If any or all proposed improvements are to be built under a federal cost-share program, please indicate which program or programs are involved and give actual cost of each item. Well (give depth and description) Value $ Fences (give length, i.e., miles or footage and kind) Value $ Windmill Value $ Other improvements (descnbe): Place/rat of ni _yintnrir Snnto It C. frocacd Value $ riC 11 pnrl P de 4; i8 pi '3N rd, ,,,s CPA reavairttr7 itg.tide,r2.91,5ega Value $ 4" OM pa ire cecte-_,Th 04, Ti. eel. veil!. LI, a ittrr-rf7 c i r74, 4,,,•:-1-97 Value $ poet. WO %, f A.0 I Pal pr Vi.jj wil d& icr td 5 rav rad - TOTAL VALUE OP IMPRO $ 4/4 00C Amount to be defrayed by federal cost-share program, if any Value $ List name of cost-share program(s): Total economic cost expended by LESSEE Value $ q _POO Estimated tim pletion: One Month zocrx LE E LESSEE I, P44-a 4 Ili 46-4°- , Commissioner of Public Lands, hereby give my consent to the abOve lessee(s) to make improvements as listed above, conditioned upon the completion of such improvement(s) on or before „My / 20 • APPROVAL ci A DATE S-09 (Revised 1/2001) Af firdati vi 025% „../ ...macti03A13038 (Ma. 6 -d!5 "trK VINVS V 301.140 Ultrl a IV IS for-4-el COMMI$S1ONER OF PUBLIC L ,a0,„ 8 618 6Z MI ig APPLIL" siON FEE $30.00 FEES 4 tiliSLO 001-00004 20 0 29-TSAR-04 00;43 30.00 SDNY_GM_00173666 EFTA_00 195321 EFTA01305566 Township Township R snro Reny County, Tovmakap Towsuhip Fos en 161-flour on Ton.1401 'any Sart j _L_ .4-f-1.44f-4— J. :f:LL..f.: ,..iri_f. _en_ .1. _ i 2 : . • . : 1 '61--F-7-r-3--i----r-i- i O4.1 • • :...... . • .. • . • . . ; 1 I S • •• • • • • • • • • • • ; ; • • •I •• 4 •.‘.: • "1" -r y---, V ; -t ' '• 3 - 1-1'.•t14-f••4 ...a • 0 • - : :I : • 1-'2 r - .- • r -- 4•44.—!--;—:-- l' .4 r i r • • • • ' • .1-- .. ..- -.. -. . i •-• • -- f : -- " X I - • I i -i- . • . , : , - — i -,--1 ---Ft i ---i- -i-• -I- 1 -: -t- —fr -I-- - 16 - ÷14- r - rI . 16 1"•-•••••h17 ; :1. : -P4161- -r144-••1 13-1- : t-f-r-4-1-i-r+r • 1 -•-i• 1- . — --: .4........4 ••• •••• • . . . • • • • • .• r- i• - r 1--y? . • • 2 ; 19 • 20 214'••••÷21- :-- rn - I- , 19 . : 20 . 21 * • 221- ""''r23 . - T241- • —r I- -• • -to - .. -- • : : • • . • : : • : • : •• 1 . 30-•fre.-2-02 : • 04Y • ri • • a.* Th • '.1 : PH t 21 :“J+fr ag a • '±31•1 a••• 4,..27 • YO: 00 .4—.4.- ▪ .4- •-i- : : : : . • • • . • -I-434 : : f : • ;•••31-FF32...L••=÷ I • I • • •••••••• •:-32 •••••••• ni*. al a”..t es- 34—T-35 • 367- ' • 1 • ••• 2 • . . —1—••••- : . : yit•••••••• . 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' SDNYGP.4_00173867 EFTA_00 195322 EFTA01305567 unty, Township • --3905 Toonwhip_ Ring' Touroshf Township Etstne Fora I0(-IFour on Tomohloi r • I i--IVO-L:'- i•*ril l;J••• 1- :1 • r :2 -•••-• 71' "- sal 3-1" 3--- i44-1--. • •1 •I••• - • sr 4 • • • ; • • t T . • - .. : .. : : ; , • t" st- erit • 4.. . : • • _ -i-1 41 -• : : • : • • • T• la ‘• -I- + + 1 I 16 ---‘114-•414 ---4- 1 16 ; 15-E 14 1 13 -L • • : . . 4 . . ; ; • s •.r. - •• ... .frar •• . : . ••• 19-71--*20 -rt21 • •• -1—•- 1 1 •.• • • 'sift •S.•;•Is 3 : g t •-f-- i...r., .2 4_ .r .i.. : -.1.-1_:--...I. :- ..4.-1.-1-•-• : : : : I 3; • .: I : : 4 I ....._ ....r 1.... . 1 31 . T 22 1 . 33+w-4' i 34 151-9-• 36.-Eri 3 •-• • : ; : . • : —4. •••••?. : 4 - 1 4- 1--i .: . 4 t : • , 2 2 • 3 -1--1-:-2-:-T-!--1 1 . - • . : . • -..- --;-, „„ 23 • ▪ 7 - 24 1-1» —4— 1 t - .1 • I , . ' : : f ri 3 1-- f 3 : • • : : • : ... .. -+ • • -4- : . a I 17 I 16 • 5 • -1---4-- i : ••• -4-4- : 4 : : • : '1 • • -2 -i-- -4- • I f -L -1••a• -+t • ! 1 I I • _1 1 2 1 1 • - • IP nr-Futt--,4-1—+4 i -t I --1- . • • 20 21 " • -I-1-23 • • 24 • : 1 : 4.. .4.4 .. 4.., . . • I F t 17 . ,,„ : : • 1.1 28 : 27 : 26-!--! • . 25 • ' 304-.-.:-Z9 : : 71-7i : 274- ; 24 : : 25 1 • • : • : ' • : • 3 i . : . . . . . • • : • . • ; • I l• . • • I -"--' 23 -i-• .-34 -fr - -25+---I-34-1- -3-31-•:----1-32-1.....-;•33.4._-_j_34 • 35 • - • 3f - g - :• t: • • • 1 j. : •• : : 2 • : • • • 4.. I • : • • t t 4- • • ••• • sr • . : 7 :•• ••••••• '''.:•• ••• 1 ! • I SONY_GM_00173668 EF1'A_00 195323 0 • • : EFTA01305568 EXHIBIT A LEASE NO: GR2122 SUBDIVISION SEC-TNN-RNO ACREAGE U PRICE S PER 2 UNIT CARRY CAP LOT2 LOT3 LOT4 LOT7 02 12N 092 238.97 0 - 12 SW4NE4 S2NW4 5344 02 1214095 280.00 G - 12 ALL 16 12N 092 640.00 G - 12 TOTAL ACREAGE: 1,158.97 TOTAL RENTAL: RENEWAL LEASE $1,200.90 LEGEND: USE TYPE CODES Ca CONSERVATION RESERVE PROGRAM I. IRRIGATED CROPLAND, Ma 2. DRYLAND FARMING (BID), 3. Ha 1/2 SOUTH FOR TOWNSHIP, H• LAND, Da DRYLAND FARMING, MOBILE HOME ON LAND, Rea RSIP LAND, IRRIGATED CROPLAND(BID) 4. CRP(BID) 1/2 EAST FOR RANGE * CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS G. GRAZING, 1. GRAZING (BID), 5• RSIP(BID) SDNY_GM_00 173669 EF-EA_00195324 EFTA01305569 EXHIBIT A LEASE NO: GR2122 SUBDIVISION SEC-TNN-RHO ACREAGE U PRICE PER B UNIT S CARRY CAP • LOT1 SW4NB4 ALL LOT2 92NW4 RENEWAL LEASE LOT3 LOT4 $144 LOT7 02 12N 09E 238.97 G 02 12N 09E 280.00 G 16 12N 09E 640.00 G TOTAL ACREAGE: 1,158.97 TOTAL RENTAL: 12 12 12 $1,100.90 mamba USE TYPE CODES C. CONSERVATION RESERVE PROGRAM I. IRRIGATED CROPLAND, M. 2. DRYLAND FARMING (BID). 3. H• 1/2 SOUTH FOR TOWNSHIP, H. LAND, D. DRYLAND FARMING, MOBILE HOME ON LAND, R. RSIP LAND, IRRIGATED CROPLAND(HID) 4• CRP(BID) 1/2 EAST FOR RANGE • CARRYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS G. GRAZING, 1. GRAZING (BID), 5. RSIP(BID) SDNY_GNL00173670 EFTA 00195325 EFTA01305570 r CONFIDENTIAL DOCUMENTS PRIVILEGED AND CONFIDENTIAL MATERIAL-THIS MATERIAL IS NOT TO BE INCLUDED IN ANY LEASE, CONTRACT OR OTHER FILE OR RECORD AVAILABLE TO THE PUBLIC. IT MAY BE DISCLOSED ONLY BY THE EXPRESS WRITTEN ORDER OF THE COMMISSIONER. List of confidential materials redacted from this lease file: §-le__ 2101e)— (A copy of this list may be provided to the public during inspection of public records) 1 ke /.1 A fox 4 14,4,,, mi l, Mofbccs , 37ce,r.4 (MT& -PO ?-2-.144, 2 6e LI .4,te.E.,:- 5., 6,. Ale/ 9 //two r Geezer Qii i t; _ fon) ft-V-Ary 3 A; e a /gad- 5,4L•iki iy Maar ki 7-6:4,-, et:c ( inr6-- .976 ?- 30-100/ 6 7 8 9 10 11 12 13 14 15 16 17 < 18 19 20 SDNY_GAA_00173671 EFTA_00 I 95326 EFTA01305571 .iEW MEXICOSTATE LAND OFFIL REQUEST FOR FIELD ASSIGNMENT TE TO FIELD DIVISION: - 3.0 FIELD DIVISION CONTROL NO. /ift% - REQUESTING DIVISION: Stur -fit Sift'? BY: LC 441141 LEASE NUMBER: 6R- ,21.2.2- TYPE OF REQUEST: p MI/ e e P-4 - NAME OF ru S-1 en) C:e -grey F Eps-lein ADDRESS: L ESSEFJAPPLICANT: I- I- 0 I -- 457 /14adis?in ave., hitid qui e t ; Nvi 16042 .2- DESIGNATED CONTACT: rarfsmt evis On PHONE: ADDRESS: Lorrn Wancieli 6 4-ttnley I NM 81057, LEGAL DESCRIPTION: SECTION COUNT}' /0)-Al 02 Ft; lea e .s Cittatluzi ley] cltceAlpion. REMARKS:_ ..Ste tiff,Th yaw( reenthm 1 ann. r 'Wea4./-k c. DATE RETURNED TO REQUESTING DIVISION/BUREAU: DISTRICT RESOURCE MANAGER RECOMMENDATION: 4/. -V /Mere , 7e/ eig40:-- -' APPROVERECOMMENDATION: FIELD DIVISON) G DIVISION a -8-4Y DO NOT APPROVE RECOMMENDATION: (Please state reason) ACTION TAKE G DIVISION: 1 nnprViett nit .1 Apply ttAon pm d Oil 0111101 DATE RETURNED TO DISTRICT RESOURCE MANAGER: 649Revised: II/I/99 SDNY_GM_00173672 _ _ EFTA_00 195327 EFTA01305572 PATRICK H. LYONS COMMISSIONER APRIL 22, 2004 State of New Mexico Commissioner of Public Lath 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE. NEW MEXICO 87504-1148 TO: JERRY ICING, ASSISTANT COMMISSIONER THROUGH: DAVID COSS, FIELD OPERATIONS DIVISIOish FROM: MARCUS J. GARCIA, SANTA FE DISTRICti 17 SUBJECT: GR-2122. ZORRO TRUST. APPLICATION FOR IMPI(OVEME41 TS. FOLLOW-UP TO MJG-SA-305 (MARCH 2, 2004). ASSIGNMENT RECEIVED APRIL 8, 2004. COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nnutatelands.org MJC-1087 7 REMARKS As per your direction, the attached special assignment (MJG-SA-305 dated March 2, 2004) was previously filed in regard to your report of heavy machinery possibly working on or near to state trust land within the subject ranch unit. MJG Attachments et crnr+rr.srn m n in in in. w • • Med • • • SDNY GM 00173673 EFTA 00195328 EFTA01305573 MARCH 2, 2004 MW -SA-305 TO: JERRY KING, ASSISTANT COMMISSIONER THROUGH: DAVID COSS, HELD OPERATIONS DIVISION FROM: MARCUS J. GARCIA, SANTA FE DISTRICT SUBJECT: GR-2122. ZORRO TRUST. REPORT OF POSSIBLE THEFT OF ARCHAEOLOGICAL RESOURCES ON OR NEAR TO STATE TUST LAND WITHIN THE RANCH UNIT. SYNOPSIS There was no documented evidence of theft and/or damage to the archaeological resources in this immediate area along the Creston petroglyph panel site; however, the lessee is in the midst of setting a non-ranch related improvement item near to or on the subject property. See the REMARKS section for additional information. LEGAL DESCRIPTION Within or near to the SEIASWA of Section 2, Township 12 North, Range 9 East, N.M.PM, Santa Fe County, New Mexico. LOCATION Within the Zorro Ranch at Comanche Gap and near the Creston petroglyph panel sites. REMARKS David Eck and myself inspected the subject property in response to a report of heavy machinery located either on or very near to state trust land at the Comanche Gap and Creston petroglyph panel sites within the Zorro Ranch. Uncorrected GPS coordinates obtained at the site with the Garmin Etrex Legend indicates the machinery was apparently operating in part on the subject property. However, without greater instrumental accuracy, we cannot definitively place the site on state trust land. According to the ranch hand that escorted us to and from the property, a level pad site was prepared so that a caboose can be placed on a short section of railroad tracks for whatever reason the lessee might have. The site is adjacent to the abandoned narrow gauge railroad corridor. It is suggested that the lessee be informed that the site might encumber state trust land and reminded that permission is needed from the Commissioner prior to placing improvements and other structures on the lease. Whether this non-ranching related item is located on state leased SDNY_GM_00173674 EFTA_DO I 95329 EFTA01305574 .MARCH 2, 2004 MJG-SA-305 property is not a matter of great concern but what is disconcerting is that a ranch escort is needed for personnel from this office to access cultural sites for general administrative fieldwork and/or educational uses. A recent conversation with the ranch manager (Bryce Gordon) for access into the ranch via a gate along the Anaya Ranch Road (County Road 38-B) was fruitful and apparently, this office will be able to secure access with prior notification to the lessee. MJG Attachments SDNY_GM_00173675 EFTA_00 I 95330 EFTA01305575 DIGITAL IMAGES- MJG-SA-305 SDNY GM 00173676 EFTA_00195331 EFTA01305576 0 sea* 0.125025 0.5 0.75 1 2 N 1 4,000 A Mlles Creston Caboose Installation -- Possible Encroachment on Trust Land • GPS Location - Photo Point Creston Area, Trust Ownership, GPS Locations - State Trust Boundary ennnt au nninm EFTA 00195332 EFTA01305577 PATRICK H. LYONS COMMISSIONER MARCH 2, 2004 State of New Mexico Commissioner of Public Lands 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504-1148 TO: JERRY KING, ASSISTANT COMMISSIONr t THROUGH: DAVID COSS, FIELD OPERATIONS DIVISI FROM: MARCUS J. GARCIA, SANTA FE DIS SUBJECT: GR-2122. ZORRO TRUST. REPORT OF P OF ARCHAEOLOGICAL RESOURCES ON OR TO STATE TUST LAND WITHIN THE RANCH UNIT. COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nrnstatelands.org MJG-SA-305 9A3 - 9-0 47.1 SYNOPSIS There was no documented evidence of theft and/or damage to the archaeological resources in this immediate area along the Creston petroglyph panel site; however, the lessee is in the midst of setting a non-ranch related improvement item near to or on the subject property. See the REMARKS section for additional information. LEGAL DESCRIPTION Within or near to the SE'/SW'/ of Section 2, Township 12 North, Range 9 East, N.M.P.M., Santa Fe County, Now Mexico. LOCATION Within the Zorro Ranch at Comanche Gap and near the Creston petroglyph panel sites. REMARKS David Eck and myself inspected the subject property in response to a report of heavy machinery located either on or very near to state trust land at the Comanche Gap and Creston petroglyph panel sites within the Zorro Ranch. Uncorrected GPS coordinates obtained at the site with the Garmin Etrex Legend indicates the machinery was apparently operating in part on the subject property. However, without greater instrumental accuracy, we cannot definitively place the site on state trust land. According to the ranch hand that escorted us to and from the property, a level pad site was prepared so that a caboose can be placed on a short section of railroad tracks for whatever reason the lessee might have. The site is adjacent to the abandoned narrow gauge railroad corridor. It is suggested that the lessee be informed that the site might encumber state trust land and reminded that permission is needed from the Commissioner prior to placing improvements and other structures on the lease. Whether this non-ranching related item is located on state leased "WORKING FOR EDUCATION" SDNY_GM_00173678 EFTA_00 195333 EFTA01305578 MARCH 2, 2004 -2- MJG-SA-305 property is not a matter of great concern but what is disconcerting is that a ranch escort is needed for personnel from this office to access cultural sites for general administrative fieldwork and/or educational uses. A recent conversation with the ranch manager (Bryce Gordon) for access into the ranch via a gate along the Anaya Ranch Road (County Road 38-B) was fruitful and apparently, this office will be able to secure access with prior notification to the lessee. MJG Attachments SDNY_GM_00173679 EFTA_00 I 95334 EFTA01305579 N Scale:1:24,000 0 0.1250.25 0.5 0.75 1Miles A Creston Caboose Installation — Possible Encroachment on Trust Land * GPS Location — Photo Point Creston Area, Trust Ownership, GPS Locations — State Trust Boundary SDNY_ GM_00173680 EFTA_00 195335 EFTA01305580 DIGITAL IMAGES — MJG-SA-305 These two images show the pad site on or very near to state trust land. SDNY_GM_00173681 EFTA 00195336 EFTA01305581 N Scale:I:16,502 0.5 0.75 1Miles Creston Caboose Installation -- Possible Encroachment on Trust Land GPS Location — Photo Point Creston Area, Trust Ownership, GPS Locations State Trust Boundary SDNY_GM_00173682 EFTA_00 195337 EFTA01305582 Do '04,3 .T,EW MEXIL STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT DATE TO FIELD DIVISION: I MESTING DIVISION: Su. A. At-ce r BY: (.< toy • u. a- ID- 04, FIELD DIVISION CONTROL NO. \Ye° A11,5 NUMBER 6g TYPE OF REQUEST: ka_s -c 3 - ri NAME OF LESSEE/APPLICANT: ADDRESS: 2-O eL.C_ 2it A-6 1( A.", ILL -41-xn Lc AM? lode DESIGNATED CONTACT: ADDRESS: _Er i fn • 6;4 dart , PHONE: LEGAL DESCRIPTION: SEIM 122 RANGE COUNTY S-c< Js-..s Le REMARKS: Pita set ;A V .( 4 _et 111 _.(kV 1.4 /Cc creenin eni.4--:on . DA lETURNED TO REQUESTING DIVISION/BUREAU: DIStscICT RESOURCE MANAGER RECOMMENDATION: APPROVE RECOMMENDATION: FTELtD DWZON) (REMING DIVISION 41 L)105 in-o4 DO NOT APPROVE RECOMMENDATION: (Muse slate reasons) 1CTI0N TAICENVirREQUESIING DIVISION: /Lao 44dAtat,_ /3-176 . d .ETI/RNED TO DISTRICT RESOURCE MANAGER 2-89 Revised: 11/109 SL OS C 5/2 3/20 06 SDNY_GAA_00 173683 EFTA_00195338 EFTA01305583 PATRICK II. LYONS COMMISSIONER MARCH 30, 2006 TO: State of gtfrw Mexico Commissioner ofPub tic Lands MO OLD SANTA FE TRAIL P.O. BOX 1 148 SANTA FE. NEW MEXICO 87504-1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmsunelands.org MJG-1174 AND MJG-1175 GILBERT BORREGO, SURFACE RESOURCES DIVISION ATTENTION: MARY DUBOSE GRAZING MANAGER THROUGH: FROM: SUBJECT: BRIAN HENINGTON, FIELD OPERATIONS GR-2088 AND GR-2122. ZORRO TRUST. (1/ / Z4, pu7Ket:vrer ---- SUBLEASE. MARCUS J. GARCIA, SANTA FE DISTRI SYNOPSIS The recommendation is to approve this application to sublease. The ocularly estimated range condition varies from fair to good condition. See the IMPROVEMENTS for additional information relative to unauthorized improvements. LEGAL DESCRIPTION GR-2088: Lot 1, 2, 3 and 4 within Section 36, Township 13 North, Range 9 East, N.M.P.M., Santa Fe, County, New Mexico; containing 84.86 acres, more-or-less. GR-2122: Lot 1, 2, 3, 4 and 7; SRPANE%, S1/2NW%, SW% of Section 2, Township 12 North, Range 9 East, N.M.P.M., Santa Fe, County, New Mexico; containing 518.97 acres, more-or-less. Section 16, Township 12 North, Range 9 East, N.M.P.M., Santa Fe, County, New Mexico; containing 640 acres, more-or-less. LOCATION These state trust lands are located in south central Santa Fe County between Galisteo and Stanley, New Mexico. Section 16 is landlocked but Section 36 can be accessed directly from The Anaya Ranch Road (County Road 38-B). Section 2 abuts Section 36 and can conceivably be reached by walking across Section 36. The condition of the grazable sites was ocularly estimated to be in fair to good condition. -Susie Land Office Beneficiaries - Came Togley flospitol • Clutha* Penal @ Reform • Comma Schoen • Coon NM Unhonley • Rio Geode Impotemem • Minn' Hospital of NM •NIN Boo School • NM Wean& Unittaky • NM Inahoe of Mains @ Teeloolom • New Mesita Mann leminfec•NM School fa the Dot • NM School fee the Visvelly frandicopeel • NM Suit Magna' • New Mexico Star Liontoxy • Ombra. NM Coannoily Collepe • PerfiNtiory of Neer Moira • Public Biala ore at Capini • " •-• ' " • ' ''''' • ". • -1 " ••' " ' " ' SDNY_GA4_00173684 EFTA_00 195339 EFTA01305584 MARCH 30, 2006 -2- JG-1174 AND MJG-1175 Generally, the condition of section 16 is fair and Sections 2 and 36 are in good condition. The ranch has not been extensively gaged since being sold to the current owner approximately 10 years ago. According to the ranch manager, the surface ownership status consists of 7,575 deeded and 1,582 acres of leased, mainly state trust land. Currently, there are 50 head of livestock grazing the ranch that belong to an employee of the ranch, as listed in the application. HIGHEST AND BEST USE Highest, best and current use is estimated to be livestock grazing. Historic rock art panels associated with the Creston geologic feature on Section 2 attract people interested in historic graffiti. IMPROVEMENTS On the day of the field evaluation, 1 documented a new water distribution pipeline within the SY2S1/3 of Section 16 and cholla removal in the same section. There is another water distribution pipeline also on Section 16 but this should be covered under a water easement since it is the water supply for the lessees' residence. These items will be covered in special assignment reports. REMARKS I met with the ranch manager, Brice Gordon, for this field evaluation. The lessee has essentially given over care and control of the livestock on the subject property, so a sublease is needed. Based on my field evaluation and the fair to good range conditions of the ranch, it is recommended to approve the sublease application. MJG Attachments qnsco 5/23/2006 SDNY_GA4_00173685 EFTA_00195340 EFTA01305585 PATRICK H. LYONS COMMISSIONER APRIL 10, 2006 Vps a io State of Marko Commissioner ofPubfie Lath 310 OLD SANTA FE TRAIL P.O. BOX 1148 SANTA FE, NEW MEXICO 87504.1148 COMMISSIONER'S OFFICE Phone (505) 827-5760 Fax (505) 827-5766 www.nmstatelands.org BUG-SA-312 TO: GILBERT BORREGO, SURFACE RESOURCES DIVISION ATTENTION: MARY DUBOSE GRAZING MANAGER THROUGH: BRIAN HENINGTON, FIELD OPERATIONS FROM: MARCUS J. GARCIA, SANTA FE DI SUBJECT: GR-2122. ZORRO TRUST. UNAUTHORIZED ROVEMlINTS. SYNOPSIS Several unauthorized improvements were recently documented while on other field evaluations on the Zorro Ranch. The recommendation is to send the lessee an improvement validation application. See the IMPROVEMENTS section for the item description and location. LEGAL DESCRIPTION Section 16, Township 12 North, Range 9 East, N.M.P.M., Santa Fe, County, New Mexico; containing 640 acres, more-or-less. LOCATION These state trust lands are located in south central Santa Fe County between Galisteo and Stanley, New Mexico. Generally, the condition of section 16 is estimated to be in fair condition. The ranch has not been extensively graved since being sold to the current owner approximately 10 years ago. According to the ranch manager, the surface ownership status consists of 7,575 deeded and 1,582 acres of leer'', mainly state Mist land. Currently, there are 50 head of livestock grazing the ranch that belong to an employee of the ranch. HIGHEST AND BEST USE Highest, best and current use is estimated to be livestock grazing. -Stain Land Office Dendideria • Carrie Totgky Hospital • Charitable Peal it Reform • Como° Schools • antra NM Uotrenity • Rio Cade Impeoviaren • Misers* Hospital of NM •NM Hoyt School • NM NONNI+ LlointellY • NM /Mika at Minis Tethicaosi • New Moak* Military hatiate•Ntil School for dx Deaf • NM School foe the Vliusgy Hanticapped • NM Slat Hospital • New Mexico State USwSj4 • factrgli MiftikillnirtitMo ie • Ptrittriary of New Mtlit0 • Pubic Bullrings at Cspital • Some Pad. Carnal:oleo • Uniitnity of Now Mauna • UNIA Satailaittli • Water ifttenoln • Waters New Mexico Unlionhy SDNY GM 00173686 EFTA_00195341 EFTA01305586 APRIL 10, 2006 -2- MIG-SA-312 IMPROVEMENTS The following two items were completed sans an improvement application and subsequent approval from this office: 1. Cholla control. I recall from my last visit approximately 18 years ago the presence of cholla cactus on Section 16. On my recent visit to the site I noticed that the plant had been treated mechanically. The ranch manager, Brice Gordon, confirmed this and added that the treatment was done before he assumed his current duties. He has yet to call me with the specifics on the treatment, as he indicated that he would. 2. One mile of water pipeline within the SYOSA. The ranch manager has yet to confirm the diameter, etc. REMARKS I documented these unauthorized improvements while on another field evaluation within the ranch unit. The recommendation is to send the lessee an improvement validation application. MJG Attachments SDNY_GM_00173687 EFTA_00 I 95342 EFTA01305587 DIGITAL IMAGES — KM-SA-312 Looking northwest from the extreme southeast comer of Section 16. Lk" •-• ' , .- • _ - " •••• - _ _ Oh. , a yak kali akitir.., • - - • • • owe- 4 „ A.*, • c.".• a IOW Slef - • • -9. • . - • r - Looking north from the extreme southwest corner of Section 16. :• • -r-rr - • - • ;.,„--• 4 t l ....".! 7 ,, • . -= - .._ , -'. , . -,.., - -..r -, - r. -•r ' ,1 ' 41.4"‘" ; t •,--*--- r 4-, - .- -,,A-.34,-, tn- $ a - -.A ;', ••:. i... - ' . - -, - f r. '. 1.: _.,,,..L.a---•-•‘- ....r - , --_. - • r fa r i#,.; 1*es/1,1e , • ;2 z , . • I. •1`,?* . ..e x. ••• .7 = 6 _ fr 4 - • 0. rr,77- JT . kiaf . 4V cit• , -am 566 Caw 5783/9oof SDNY GM 00173688 EFTA_00 195343 EFTA01305588 / pli,, , ' ' .„ --.4.1 —i /1 ' ' Ili, 4" .... —.."........0 . .......• I 4 „...r.—.1 S.:. . .... . . . ....7,f.;:;:: )\ if . 31. • .tr i .1 , .......... ,......„..... _. ...._ 94,,,,i - - ......, J" 't...•1‘....1,...... *47 I I :. (1 ! i ...., i SU. Sgeit : ',4i• 1 ' ...... ... ' ' ' • ' - Z —.. — ''. — -- I 31' 1; ifir : •..., / ...-- -,-... ..„7, ` c • -- 7"-- j • i is r.- - -. ,....- - ed by the Gedo1CY SVIM .1.163 66•66. uriai fled 0•66/ 1964 927 P.m .6.6,can Glum 6,10. 40610,04 purl SDNY_GM_00173689 EFTA_00 195344 EFTA01305589 Assignment No. , covering NEW MEXICO STATE LAND OFFICE OFFICIAL REQUEST FOR CHANGE OF ADDRESS To: Commissioner of Public Lands Post Office Box 1148 Santa Fe, New Mexico 87504-1148 Dear Sir: I am the holder of (Oil and Gas) (Mineral) (Other) Lease No. 6- 4 (Specify) (Land Description) of record in the Ncw Mexico State Land Office, and I request that all official notices from your office which are required to be sent to me by law or under the terms of my lease or contract be sent to me at the address shown below, which address shall remain unchanged upon your records unless and until expressly directed in writing by me to do so. /— pal" „_,L .5 1-- • (Company Name) Signature (Please sign as name appears on lease) Li 5 Le; /La (Street Address or Box Number) .17 0 5- 6 (City, State and Zip Code) 19 14; • .• This form to be filed with the original lease instrument in the State Land Office. 0-67 04/01/94 SONY GM 00173690 EFTA _00 195345 EFTA01305590 SDNY_Ght00173691 EFTA_00195346 EFTA01305591 This s a Patch I type separa or sheet. This is a Patch I type separator sheet. Landscape Feed 11111 III Fo m Type = 'AgLeaseContract" CCDP2R tyrs. bamode * Portrait Feed New Form Follows... Prinled on 7/6/2001 11: 6:14 AM Copyright ClOtaxlmagg1111801.10 991-1899 SONY GM 00173692 EFTA_00 195347 EFTA01305592 NEW MEXICO STATE LAND OFFICE COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 1148, SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GR2122 THIS LEASE, DATED OCTOBER 01, 2001 , IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW MEXICO, HEREINAFTER CALLED "LESSOR" AND: ZORRO TRUST HEREINAFTER CALLED "LESSEE(S)", WHOSE ADDRESS OF RECORD IS: C/O JEFFREY E. EPSTEIN 457 MADISON AVE NEW YORK,NY 10022 LESSOR AND LESSEE AGREE AND COVENANT AS FOLLOWS: 1. LEASE. FOR AND IN CONSIDERATION OF AND SUBJECT TO THE RENTALS AND THE TERMS, COVENANTS, CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE AND ALL OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSEE TAKES PROM LESSOR THE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. 4. TERM. THE TERN OF THIS LEASE SHALL BEGIN ON OCTOBER 01, 2001 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 2006. 3. RENT. THE ANNUAL RENTAL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NMSA 1978 AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN THE STATE LAND OFFICE ON OR BEFORE OCTOBER 1. THE ANNUAL RENTAL FOR GRAZING LAND SHALL BE DETERMINED AS FOLLOWS : ANNUAL RENTAL = BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY SLO RULE 8 "RELATING TO AGRICULTURAL LEASES" (19 N.M.A.C. 3, SLO 8.11). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OP THE EVI,FOR EACH SUCCESSIVE YEAR OF THE LEASE TERM,BE DECREASED OR INCREASED BY MORE THAN THIRTY-THREE ANb ONE-THIRD PERCENT.IN THE CASE OF GRAZING RENTAL OFFERS ON OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID, LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL GRAZING RENTAL DUE IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, ASSOCIATED LAND AND CONSERVATION RESERVE PROGRAM LAND SHALL BE DETERMINED BY LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERM OF THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. 4. PERMITTED USE. LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AND IN ORDER TO COMPLY WITH ALL APPLICABLE PROVISIONS OF LAW REGARDING THE 000 SLO S-06-01#115 $50.00F1 000 SLO 8-06-014116 $949.28F4 SDNY_GA4_00173693 EFTA_00195348 EFTA01305593 CARE AND PROTECTION OF THE LEASED PREMISES. 5. LIEN. AS SECURITY FOR THE PAYMENT OF ANY RENT THAT IS OR MAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL BE PLACED ON THE LEASED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR. ALL IMPROVEMENTS PLACED ON THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED AS UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH THE APPLICABLE LAWS AND RULES. 7. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE THE LEASED PREMISES OR THE IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY LEASE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT BE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. 8. COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY BE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OF THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OF A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT THE CANCELLATION OF THE LEASE AND TERMINATION OF THE COLLATERAL ASSIGNMENT FOR THE NONPAYMENT OF RENTALS OR OTHER VIOLATIONS OF THE LEASE TERMS. 9. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF THE TERMS, CONDITIONS, OR COVENANTS OF THIS LEASE OR THE NONPAYMENT BY LESSEE OF THE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THE COMMISSIONER BE CONSIDERED A DEFAULT AND SHALL CAUSE THE CANCELLATION OF THIS LEASE 30 DAYS AFTER LESSOR HAS SENT WRITTEN NOTICE OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OF COLLATERAL ASSIGNMENTS BY REGISTERED MAIL, ADDRESSED TO THE POST OFFICE ADDRESS OF RECORD, PROVIDED, HOWEVER, IF WITHIN THE THIRTY DAYS THE LESSEE OR HOLDERS OF ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN THE NOTICE, CANCELLATION SHALL NOT BE MADE. 10. RENEWAL. ANY LESSEE WHO DESIRES TO SECURE A NEW LEASE SHALL MAKE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OF THIS LEASE. THE RIGHT OF RENEWAL SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS PROVIDED FOR BY LAW AND RULE. 11. RESERVATIONS. A. LESSOR RESERVES THE RIGHT TO EXECUTE LEASES ON THE LAND GRANTED BY THIS LEASE FOR MINING PURPOSES AND FOR THE EXTRACTION OF OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND THE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS OF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORTI- SDNY_GM_00173694 EFTA_00195349 EFTA01305594 CULTURAL PRODUCTS AND TO GRANT SUCH OTHER RIGHTS-OF-WAY AND EASEMENTS AS PROVIDED BY LAW. 3. LESSOR RESERVES THE RIGHT TO WITHDRAW PURSUANT TO RULE, UP TO 64O ACRES, BUT IN • NO CASE MORE THAN HALF, OF THE LAND HELD BY THIS LEASE. 12. COMPLIANCE WITH LAWS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OF LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES WHICH HAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL MATTERS AND THINGS AFFECTING THE LEASED PREMISES AND OPERATIONS THEREON. SUCH OTHER AGENCIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALL SAVE AND HOLD HARMLESS, INDEMNIFY AND DEFEND LESSOR AND THE STATE OF NEW MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND FROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OUT OF OR ALLEGED TO ARISE OUT OF OR INDIRECTLY CONNECTED WITH THE OPERATIONS OF LESSEE UNDER THIS LEASE, OFF OR ON THE LEASED PREMISES OR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NOT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. -. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE OF ANY OF THE TERMS, CONDITIONS OR COVENANTS OF THIS LEASE SHALL BE HELD TO BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID OR BINDING UNLESS THE SAME IS IN WRITING AND SIGNED BY LESSOR. 16. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OF INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE FROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 18. SUCCESSORS IN INTEREST. ALL TERMS, CONDITIONS AND COVENANTS IN THIS LEASE SHALL EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST OF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE LESSOR RESERVES THE RIGHT DURING THE TERM OF THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MAKE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS HAY BE REQUIRED. SDNY_GM_00173695 EFTA_OO19535O EFTA01305595 I/WE CERTIFY THA WE LESSEE(S) REFERENCED ON THE FACE Tina OF THIS LEASE. LESSEE LESSEE a.c efr...clecie" 2e. AD TELEPHONE TELEPHONE LESSO KMISSIONER OF PUBLIC LANDS STATE OF NEW MEXICO COUNTY OF THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE RE THIS DAY OF ACKNOWLEDGMENTS NATURAL PERSON(S) BY (NAME OF PERSON ACKNOWLEDGED) KY COMMISSION EXPIRES: , 20 , NOTARY PUBLIC PARTNERSHIP "IITE OF NEW MEXICO COUNTY OF THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OF , 20 BY (NAME OF PERSON ACKNOWLEDGED) PARTNER(S) ON BEHALF OF MY COMMISSION EXPIRES: , A PARTNERSHIP. NOTARY PUBLIC t3 /4 4tEragg< CORCORNTICS trciS1-- STATE OF ) COUNTY OF ILL) reek ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS K4C-DAY OF S , 20CD1 , BY Qua... €.4cAtte.‘ ' Nfue4de- OF 1 (N OF OFFICER) Al , (TITLE OF OFFICER) r k-7.4 A rad..ka... ( Q v-It , ON BEHALF r-2-e:3ryb (CORPORATION NAME) OF SAID CORPORATION. COMMISSION EXPIRES: rd NOTARY PUBLIC HARRY I. BELLER Notary Public, Stele of New Yak No. 01BE4B53924 Clue lined in Rockland County z,...-- Commission Expires Feb. 17.20-- SONY_GM_00173696 EFTA_00 I 95351 EFTA01305596 NEW MEXICO STATE LAND OFFICE APPRAISEMENT OF GRAZING AND AGRICULTURAL LANDS COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING PO BOX 1148, SANTA FE, NEW MEXICO 87504-1148 LESSEE: SECTION 10 OP THE NEW MEXICO ENABLING ACT SPECIFICALLY REQUIRES THAT ALL STATE LAND TO BE LEASED BE APPRAISED AT ITS TRUE VALUE. STATE LAW, UNDER SECTION 19-7-1 NMSA 1978, FURTHER PRESCRIBES THAT SUCH APPRAISEMENT BE SECURED BY THE LESSEE WHEN ACQUIRING A LEASE AND THAT SUCH APPRAISEMENT BE COMPLETED BY A DISINTERESTED PERSON. THE INSTRUCTIONS FOR THE COMPLETION OF THIS FORM ARE SET OUT BELOW. APPRAISEMENT INSTRUCTIONS: THIS INFORMATION MUST BE COMPLETED BY A DISINTERESTED PERSON AND BASED ON NT INDIVIDUAL'S INFORMATION AND BELIEF. THIS FORM CANNOT BE COMPLETED BY A LICENSED RAISER. (NMSA 1978, 61-30-16). YOU CANNOT PAY TO HAVE THIS FORM COMPLETED. (NMSA 1978, 60-30-3A). THE LAND MUST BE APPRAISED AS VACANT, I.E. WITHOUT IMPROVEMENTS, FOR BOTH SALE AND LEASE PURPOSES. IT MUST ALSO BE SIGNED BEFORE A NOTARY PUBLIC. Csikt actki t Memu& II , DO SOLEMNLY SWEAR (OR AFFIRM), UNDER THE PENALTIES OF PERJURY, THAT AFTER HAVING PERSONALLY INSPECTED THE TRACT(S) OF LAND CONTAINED IN LEASE NO. ezawarA AND DESCRIBED IN EXHIBIT A OF SAID LEASE, THAT MY OPINION OF THE APPRAISED CASH VALUE OF SAME (WITHOUT IMPROVEMENTS) IS $ :WO PER ACRE, IF SOLD, AND $ 4C)C, PER ACRE, FOR LEASE PURPOSES, AND CERTIFY THAT I AM NOT INTERESTED IN SAID LAND FOR LEASING OR SALE THEREOF. SIGNED ADDRESS tirvh-J:cc,.. Age_ CITY/STATE 1,\.90._‘,.. (4,-LC SUBSCRIBED AND SWORN TO BEFORE ME THIS 3C)+1` DAY OF r j li Jam, 200 I . MY COMMISSION EXPIRES: PUBLIC HARRY I. LLER Notary Public, State of New York No. 019E41353924 Qualified In Rockland Coon Commission Expires Feb. 17, 21&*"....... SDNY_GAA_00173697 EFTA_00 195352 EFTA01305597 EXHIBIT A LEASE NO:- GR2122 SUBDIVISION SEC-TWN-RNG ACREAGE U PRICE S PER E UNIT CARRY CAP * LOT7 02 12N 09E 33.29 G 12 LOT1 02 12N 09E 43.12 G 12 LOT2 02 12N 09E 54.14 G 12 LOT3 02 12N 09E 54.18 G 12 LOT4 02 12N 09E 54.24 G 12 SW4NE4 S2NW4 SW4 02 12N 09E 280.00 G 12 ALL 16 12N 09E 640.00 G 12 TOTAL ACREAGE: RENEWAL LEASE 1,158.97 TOTAL RENTAL: $949.28 LEGEND: USE TYPE CODES C= CONSERVATION RESERVE PROGRAM I= IRRIGATED CROPLAND, M= 2= DRYLAND FARMING (BID), 3= H= 1/2 SOUTH FOR TOWNSHIP, H= LAND, D= DRYLAND FARMING, MOBILE HOME ON LAND, R= RSIP LAND, IRRIGATED CROPLAND(BID) 4= CRP(BID) 1/2 EAST FOR RANGE RYING CAPACITY RATES LISTED ARE BASED ON 640 ACRE PARCELS G= GRAZING, 1= GRAZING (BID), 5= RSIP(BID) , atm T _UTY12.11.1 I f .30,0 EFTA_0(1195353 EFTA01305598 3CELLANEOUS INSTRUMENT: LE NO: 8793 AER OF ATTORNEY GIVEN TO JOHN J. KELLY. FIDAVIT: JEFFEREY E. EPSTEIN FOR ZORRO TRUST. SDNY_GA4_00173699 EFTA_00 I 95354 EFTA01305599 IMPROVEMENT LISTING FOR EXISTING LESSEE'S RENEWAL APPLICATION The State Land Office Rule Relating to Agricultural Leases, 19 N.M.A.C. 8.9.2.2. requires you to submit a listing of your improvements located on the state leased land held under pill lease with your application. LEASE NUMBER 6-R-1N (Mdse check check one of the boxes) DO IMPROVEMENTS EXIST ON STATE LAND: YES IF YES PLEASE LIST BELOW. NO 51<.,. (none) MI improvements must be listed even if they arc on record with our office. LOCATION EffIRO_YRNIFNT APPROXIMATEYONTH AND YEAR BI MIT SECTION Tairn RANGE Inclusion of unauthorized improvements on this listing or any appraisal submitted to the Commissioner for any purpose shall not be interpreted as approval of those improvements by the Commissioner. (19 N.M.A.C. 8.9.11) This office will reject your renewal lease ap lication if this form is not completed. The information provided is true and correct to the best of my knowledge. Please sign and nired whether improvements exist or not. es e Signature Date: -7 ' 3 O 'C Lessee Signature SDNY_GA4_00 173700 EFTA_00 I 95355 EFTA01305600 This is a Pa ch I type separa or sheet. This is a Patch I type separator sheet. III II III II III II 11 11 1111 Form Type = 'AgLeaseContract" CODE128 type bartode * Portrait Feed New Form Follows... Printed on 7/8/2001 11:48:14 AM ComIght "Ma Imago Products S•34-1999 1119111,1 lilt! 1111)111j Landscape Feed mi SDNY_GM_00173701 EFTA_00195356 EFTA01305601 NEW MEXICO STATE LAND OFFICE COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 1148, SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GR2122 THIS LEASE, DATED OCTOBER 01, 1999 , IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW MEXICO, HEREINAFTER CALLED •LESSOR" AND: ZORRO TRUST HEREINAFTER CALLED "LESSEE(S)", WHOSE ADDRESS OF RECORD IS: C/O JEFFREY B. EPSTEIN 457 MADISON AVE NEW YORK,NY 10022 LESSOR AND LESSEE AGREE AND COVENANT AS FOLLOWS: 1. LEASE. FOR AND IN CONSIDERATION OF AND SUBJECT TO THE RENTALS AND THE TERMS, COVENANTS, CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE AND ALL OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSEE TAXES FROM LESSOR THE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. 2. TERM. THE TERM OF THIS LEASE SHALL BEGIN ON OCTOBER 01, 1999 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 2001. 3. RENT. THE ANNUAL RENTAL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NASA 197$ AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN THE STATE LAND OFFICE ON OR BEFORE OCTOBER 1. THE ANNUAL RENTAL FOR GRAZING LAND SHALL BE DETERMINED AS FOLLOWS : ANNUAL RENTAL BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY SLO RULE 8 "RELATING TO AGRICULTURAL LEASES" (19 N.M.A.C. 3, SLO 8.11). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OF THE EVI,FOR EACH SUCCESSIVE YEAR OF THE LEASE TERM,BE DECREASED OR INCREASED BY MORE THAN THIRTY-THREE AND ONE-THIRD PERCENT. IN THE CASE OF GRAZING RENTAL OFFERS ON OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID, LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL GRAZING RENTAL DUE IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, ASSOCIATED LAND AND CONSERVATION RESERVE PROGRAM LAND SHALL BE DETERMINED BY LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERM OF THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. 4. PERMITTED USE. LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AND IN ORDER TO COMPLY WITH ALL APPLICABLE PROVISIONS OF LAW REGARDING THE 000 SLO 7-30-994246 S922.91F4 000 SLO 7-30-990247 1,0.00r SDNY_GM_00173702 EFTA_00195357 EFTA01305602 CARS AND PROTECTION OF THE LEASED PREMISES. 5. LIEN. AS SECURITY FOR THE PAYMENT OF ANY RENT THAT IS OR MAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL SE PLACED ON THE LEASED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR. ALL IMPROVEMENTS PLACED ON THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED AS UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH THE APPLICABLE LAWS AND RULES. 7. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE THE LEASED PREMISES OR THE IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY LEASE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT BE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. E. COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY BE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OP THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OP A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT THE CANCELLATION OF THE LEASE AND TERMINATION OF THE COLLATERAL ASSIGNMENT FOR THE NONPAYMENT OP RENTALS OR OTHER VIOLATIONS OF THE LEASE TERMS. 9. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF THE TERNS, CONDITIONS, OR COVENANTS OF THIS LEASE OR THE NONPAYMENT BY LESSEE OP THE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THU COHBIISSIONER BE CONSIDERED A DEFAULT AND SHALL CAUSE THE CANCELLATION OF THIS LEASE 30 DAYS AFTER LESSOR HAS SENT WRITTEN NOTICE OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OP COLLATERAL ASSIGNMENTS BY REGISTERED MAIL, ADDRESSED TO THE POST OFFICE ADDRESS OF RECORD, PROVIDED, HOWEVER, IF WITHIN TEE THIRTY DAYS THE LESSEE OR HOLDERS OP ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN TEE NOTICE, CANCELLATION SHALL NOT BE MADE. 10. RENEWAL. ANY LESSEE WHO DESIRES TO SECURE A NEW LEASE SHALL HARE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OP THIS LEASE. THE RIGHT OF RENEWAL SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS PROVIDED FOR BY LAN AND RULE. 11. RESERVATIONS. A. LESSOR RESERVES THE RIGHT TO EXECUTE LEASES ON THE LAND GRANTED BY THIS LEASE FOR MINING PURPOSES AND FOR THE EXTRACTION OF OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND THE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS OF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORTI- SDNY_GM_00173703 EFTA_00195358 EFTA01305603 CULTURAL PRODUCTS AND TO GRANT SUCH OTHER RIGHTS-OF-WAY AND EASEMENTS AS PROVIDED BY LAW. B. LESSOR RESERVES THE RIGHT TO WITHDRAW PURSUANT TO RULE, UP TO 640 ACRES, BUT IN NO CASE MORE THAN HALF, OF THE LAND HELD BY THIS LEASE. 12. COMPLIANCE WITH LANS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OP LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES WHICH HAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL MATTERS AND THINGS AFFECTING THE LEASED PREMISES AND OPERATIONS THEREON. SUM OTHER AGENCIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALL SAVE AND HOLD HARMLESS, INDEMNIFY AND DEPEND LESSOR AND THE STATE OF NEW MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND PROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OUT OF OR ALLEGED TO ARISE OUT OP OR INDIRECTLY CONNECTED WITH THE OPERATIONS OP LESSEE UNDER THIS LEASE, OFF OR ON THE LEASED PREMISES OR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NOT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. 1S. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE OP ANY OP THE TERNS, CONDITIONS OR COVENANTS OF THIS LEASE SHALL BE HELD TO BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID OR BINDING UNLESS THE SAME IS IN WRITING AND SIGNED BY LESSOR. 16. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OP INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE PROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 18. SUCCESSORS IN INTEREST. ALL TERMS, CONDITIONS AND COVENANTS IN THIS LEASE SHALL EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST OF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE LESSOR RESERVES THE RIGHT DURING THE TERM OF THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MAKE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS NAY BE REQUIRED. SONY_GM 001737.04 EFTA_00195359 EFTA01305604 • WITNESS THE HANDS AND SEALS OF SOR AND ESSEE ON THE MY AND YEAR FIRST ABOVE WRITTEN. LESSEE eff ey Epstein, Trustee LESSEE Il3LkAJHUNb ISSIONER F PUBLIC LANDS ACKNOWLEDGMENTS NATURAL PERSON(S) STATE OF NEN MEXICO ) ) COUNTY or ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE NE THIS DAY OF 19 BY (KANE OF PERSON ACKNOWLEDGED) NY COMMISSION EXPIRES: NOTARY PUBLIC TRUST • • STATE or NEW Amt. ) ) COUNTY of York ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS 2. SI= OF dc. 4.7 . 191i, BY Jeffrey P Rpettein (NAME OF PERSON ACKNOWLEDGED) TRUSTEE-- ou BEHALF or Zorro aiw ittcata , A TRUST .: NY COMMISSION EXPIRES: CIGSOMPRIOR0ddliGGCOM No. 018E4853924 Aegan Noun! Public, State of At Commission Wien Feb. I LIC STATE OP NEW MEXICO COUNTY OF ) ) ) CORPORATION THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS DAY OP , 19 BY OF (NAME OF OFFICER) 'TITLE OF OFFICER) A CORPORATION, ON BEHALF (CORPORATION NAME) OF SAID CORPORATION. KY COMMISSION EXPIRES: NOTARY PUBLIC SDNY_GkL00173705 EF-EA_00195360 EFTA01305605 NEW MEXICO STATE LAND OFFICE APPRAISEMENT OF GRAZING AND AGRICULTURAL LANDS COMMISSIONER OP PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING PO BOX 1148, SANTA FE, NEW MEXICO 87604-114B LESSEE: SECTION 10 OP THE NEN MEXICO ENABLING ACT SPECIFICALLY REQUIRES THAT ALL STATE LAID TO 86 LEASED BE APPRAISED AT ITS TRUE VALUE. STATE LAW. UNDER SECTION 19-7-1 NMSA 197$, FURTHER PRESCRIBES THAT SUCH APPRAISEMENT BE SECURED BY THE LESSEE WHEN ACQUIRING A LEASE AND THAT SUCH APPRAISEMENT BE COMPLETED BY A DISINTERESTED PERSON. THE INSTRUCTIONS FOR THE COMPLETION OF THIS FORM ARE SET OUT BELOW. APPRAISEMENT INSTRUCTIONS: THIS INFORMATION MUST BE COMPLETED BY A DISINTERESTED PERSON AND BASED ON THAT INDIVIDUAL'S INFORMATION AND BELIEF. THE LAND MUST BE APPRAISED AS VACANT, I.B. WITHOUT IMPROVEMENTS, FOR BOTH SALE AND LEASE PURPOSES. IT MUST ALSO BE SIGNED BEFORE A NOTARY PUBLIC. f;hi Clai ne Maxwell , DO SOLEMNLY SWEAR (OR AFFIRM), UNDER THE PENALTIES OF PERJURY, THAT AFTER HAVING PERSONALLY INSPECTED THE TRACT(S) OF LAND CONTAINED IN LEASE NO. foz21z2 AND DESCRIBED IN EXHIBIT A OF SAID LEASE, THAT NI OPINION OF THE APPRAISED CASH VALUE OF SAME (WITHOUT IMPROVEMENTS) IS $300.00 PER ACRE. IF SOLD, AND 0400.00 PER ACRE, FOR LEASE PURPOSES. AND CERTIFY THAT I AM NOT INTERESTED IN SAID LAND FOR LEASING OR SALE THEREOF. SIGNED ADDRESS crnVenum New York, NY 10022 SUBSCRIBED AND SWORN TO BEFORE HE THIS 9R DAY OF Jul. MY COMMISSION EXPIRES: HARRY I. BELLER Notary Public. State of New Yea No. 018E4$53924 • •••;:i:rad in Rock and County nr , Coatintesion Expkee Feb. 17, 20 •11-1 SDNY_GM_00173706 EFTA_00195361 EFTA01305606 IMPROVEMENT LISTING FOR EXISTING LESSEE'S RENEWAL APPLICATION NAIVE ZORRO TRUST LEASE NUMBER GR2122 The State Land Office Rule Relating to Agricultural Leases, 19 N.M.A.C. 8.9.2.2. requires you to submit a listing of your improvements located on the state leased land held under this lease with your application. Inclusion of unauthorized improvements on this listing or any appraisal submitted to the Commissioner for any purpose shall not be interpreted as approval of those improvements by the Commissioner. (19 N.M.A.C. 8.9.11) IMPROVEMENT tinny. APPROXIMATE MONTH AND YEAR BUILT LOCATION BY SUBDIVISION SECrfSP/Rrtf The information provided above is true and correct to the best of my knowledge. 7APRO TRUST by Lessee Jeffrey Trustee Lessee Date: 9 SDNY_GA4_00173707 EFTA_00 195362 EFTA01305607 EXHIBIT A LASE NO: OR2122 SUBDIVISION SEC-INN-RHO ACREAGE V S B PRICE CC PER AA UNIT RP LOT/ 02 12N 092 33.29 G 12 LOT1 02 22N 09E 43.12 G 12 LOT2 02 22N 098 54.14 G 22 LOT3 02 12N 09E 54.18 G 12 LOT4 02 12N 09E 54.24 C 12 SW4NE4 S2NW4 SW4 02 12N 09E 280.00 G 12 ALL 16 12N 09E 640.00 G 12 TOTAL ACREAGE:* LEASE CONSOLIDATED FROM 62427910000 6099990000 POWER OP ATTORNEY: JOHN J. KELLY AFFIDAVIT: JEFFREY B. EPSTEIN TRUSTEE FOR ZORRO TRUST. 88793 1,158.97 TOTAL RENTAL: $922.91 "T.EEND: USE TYPE CODES CONSERVATION RESERVE PROGRAM J.= IRRIGATED CROPLAND, M= 2= BID IN DRYLAND FARMING, 3= H= 1/2 SOUTH FOR TOWNSHIP, H= LAND, 11. DRYLAND FARMING, G= RANGELAND, MOBILE HOME ON LAND, R= RSIP LAND, 1= BID ON GRAZING, BID ON IRRIGATED, 4= BID ON CRP LAND, 5= BID ON RSIP, 1/2 EAST FOR RANGE SDNY_GNL00173708 EFTA_00195363 EFTA01305608 EFTA_OD 1 95364 EFTA01305609 0 a AGRICULTURAL LEASE (EXPIRED AND ARCHIVED) - GM2791 COMPLETE LEASE FILE CONTENTS SONY GM_00173710 EFTA_OD 195365 EFTA01305610 irrtoto XPIRE 9-,D-ais CD --NI 4%) , 1111MILIMER GM2791AGR — — — SDNY_GM_00173711 EFTA_00 I 95366 EFTA01305611 (Page (t 2 of 53) NEW MEXICO STATE LAND OFFICE COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 1148, SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GN2791 THIS LEASE, DATED FEBRUARY 22, 1993, IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW MEXICO, HEREINAFTER CALLED "LESSOR" AND: ZORRO TRUST JEFFREY E. EPSTEIN - TRUSTEE HEREINAFTER CALLED "LESSEE(S)", WHOSE ADDRESS OF RECORD IS: 457 MADISON AVENUE NEW YORK NY 10022-0000 LESSOR AND LESSER AGREE AND COVENANT AS FOLLOWS: 1. LEASE. FOR AND IN CONSIDERATION OF AND SUBJECT TO THE RENTALS AND THE TERMS, COVENANTS, CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE AND ALL OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSEE TAKES FROM LESSOR THE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. 2. TERN. THE TERN OF THIS LEASE SHALL BEGIN ON FEBRUARY 22, 1993 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 1994. 3. RENT. THE ANNUAL RENTAL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NMSA 1978 AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN THE STATE LAND OFFICE ON OR BEFORE OCTOBER 1. THE ANNUAL RENTAL FOR GRAZING LAND SHALL BE DETERMINED AS FOLLOWS: ANNUAL RENTAL = BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY STATE LAND OFFICE RULE 8.022(B). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OF THE EVI, FOR EACH SUCCESSIVE YEAR OF THE LEASE TERM, BE DECREASED OR INCREASED BY MORE THAN THIRTY- THREE. AND ONE-THIRD PERCENT. IN THE CASE OF GRAZING RENTAL OFFERS ON OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID, LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL GRAZING RENTAL DUE IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, A"SorIATED LAND AND CONSERVATION RESERVE PROGRAM LAND SHALL BE DETERMINED BY LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERN OF THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. 4. PERMITTED USE. LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AND IN ORDER TO COMPLY WITH -ALL APPLICABLE PROVISIONS OF LAW REGARDING THE CARE AND PROTECTION OF THE LEASED PREMISES. SONV_OM_00173712 EFTA_00195367 EFTA01305612 (Pogo 3 of 53) O 5: LIEN. AS SECURITY FOR THE PAYMENT OF ANY RENT THAT IS OR MAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL BE PLACED ON THE LEASED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR. ALL IMPROVEMENTS PLACED ON THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED AS UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH THE APPLICABLE LAWS AND RULES. 7. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE THE LEASED PREMISES OR THE IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY LEASE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT BE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. 8. COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY BE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OF THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OF A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT THE CANCELLATION OF THE LEASE AND TERMINATION OF THE COLLATERAL ASSIGNMENT FOR THE NONPAYMENT OF RENTALS OR OTHER VIOLATIONS OP THE LEASE TERMS. 9. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF THE TERNS, CONDITIONS, OR COVENANTS OF THIS LEASE OR THE NONPAYMENT BY LESSEE OF THE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THE COMMISSIONER BE CONSIDERED A DEFAULT AND SHALL CAUSE THE CANCELLATION OF THIS LEASE 30 DAYS AFTER LESSOR HAS SENT. WRITTEN NOTICE OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OF COLLATERAL ASSIGNMENTS BY REGISTERED NAIL, ADDRESSED TO THE POST OFFICE ADDRESS or RECORD, PROVIDED, HOWEVER, IF WITHIN THE THIRTY DAYS THE LESSEE OR HOLDERS OF ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN THE NOTICE, CANCELLATION SHALL NOT BE MADE. 10. RENEWAL. ANY LESSEE WHO DESIRES,TO SECURE A NEW LEASE SHALL MAKE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OF THIS LEASE. THE RIGHT OF RENEWAL SHALL BE SUBJECT TO SUCH TERNS AND CONDITIONS AS PROVIDED FOR BY LAW AND RULE. 11. RESERVATIONS. A. LESSOR RESERVES THE RIGHT TO EXECUTE LEAES ON THE LAND GRANTED BY THIS LEASE FOR MINING PURPOSES AND FOR THE EXTRACTION OP OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND THE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS OF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORTI- CULTURAL PRODUCTS AND TO GRANT SUCH OTHER RIGHTS-OF-WAY AND EASEMENTS AS PROVIDED SONY_GM 00173713 EFTA_00195368 EFTA01305613 (Page 4 of 53) • • SDNY_GM_00173714 EFTA_00 I 95369 EFTA01305614 ( :It :I) • BY LAW. B. LESSOR RESERVES THE RIGHT TO WITHDRAW PURSUANT TO RULE, UP TO 640 ACRES, BUT IN NO CASE MORE THAN HALF, OF THE LAND HELD BY THIS LEASE. 12. COMPLIANCE WITH LAWS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OF LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES WHICH HAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL HATTERS AND THINGS AFFECTING THE LEASED PREMISES AND OPERATIONS THEREON. SUCH OTHER AGENCIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALL SAVE AND HOLD HARMLESS, INDEMNIFY AND DEFEND LESSOR AND THE STATE OF NEW MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND FROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OUT OF OR ALLEGED TO ARISE OUT OF OR INDIRECTLY CONNECTED WITH THE OPERATIONS OF LESSEE UNDER THIS LEASE, OFF OR ON THE LEASED PREMISES CR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NCT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. 15. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE OF ANY OF THE TERMS, CONDITIONS CR COVENANTS OF THIS LEASE SHALL BE HELD TO BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID OR BINDING UNLESS THE SAME IS IN WRITING AND SIGNED BY LESSOR. 16. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OF INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE FROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 18. SUCCESSORS IN INTEREST. ALL TERNS, CONDITIONS AND COVENANTS IN THIS LEASE SHALL EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST OF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE LESSOR RESERVES THE RIGHT DURING THE TERM OF THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MAKE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS MAY BE REQUIRED. SLICGM_00173715 EFTA_00195370 EFTA01305615 (Page 6 of 53) • SDNY_GM_00173716 EFTA_00195371 EFTA01305616 (Page 7 of 53) WITNESS THE HANDS AND SEALS LESSOR AND LESSEE ON THE DAY AN YEAR FIRST ABOVE WRITTEN. 2 aRRO Mtn T LESSEE LESSEE 'Wu-7 LA". COMMISSION STATE OF NEW MEXICO COUNTY OF genno,L llo ) ) ) ACKNOWLEDGMENTS NATURAL PERSON(S) 1%.6, .• - THE FOREGMOINSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS /PA DAY OF cao°rtitE ,,,,, • et1.4>: w A ct.:ekc der DSO a(at,ce, a iF Lilt • Zo" STATE Or YIN MEXICO • COUNTY OF LEDGED) MaAti- r 1/4.426A4-9. e. 4.4.01 44} a ). atiA0—.44-A-d NOTARY PUBLIC 1915 ! ) ) PARTNERSHIP THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS BY (NAME OF PERSON ACKNOWLEDGED) PARTNER(S) ON BEHALF OF , A PARTNERSHIP. MY COMMISSION EXPIRES; DAY OF , 19 , NOTARY PUBLIC CORPORATION STATE OP NEW MEXICO ) ) COUNTY OP ) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE NE THIS DAY OF , 19 BY (NAME OF OFFICER) (TITLE OF OFFICER) (CORPORATION NAME) OF SAID CORPORATION.: MY COMMISSION EXPIRES: OF A CORPORATION, ON BEHALF • NOTARY PUBLIC SDNY_GML00173717 EFTA_0019537.2 EFTA01305617 Rage 8 of 53) • EXHIBIT A GM2791 PRICE CC 1ST AUTHORIZED PER AA YEAR SUBDIVISION SEC -TWK- -RNG- ACREAGE USE UNIT RP CHARGE LOTS 1,2,3,4,7,SW4NE4,82094,SW4 02 12.0N 09.06 518.97 GRAZING 12 383.75 ALL 16 12.0N 09.0E 640.00 GRAZING 12 473.24 ------ TOTAL ACRES: 1,158.97 TOTAL CHARGE: .6656.99 PARTIAL RELINQUISHMENT OP ON-2583 Ic • v • 9,/ N.0 1 SDNY_GAL00173718 EFTA_00195373 EFTA01305618 (Page 9 of 53) RECEIVED '93 NflI116 fill 10 28 STATE LAND OFFICE SANTA FE, N.M. O • SDNY_GM_00173719 EFTA_00 195374 EFTA01305619 (Page 10 of 53) LEASE NO: Cm-7791 MISCELLANEOUS INSTRUMENT PAGE UNDER COLLATERAL ASSIGNMENT TO: UNDER COLLATERAL ASSIGNMENT TO: DATE FILED' NO. DATE FILED NO. DATE RELEASED: DATE RELEASED: UNDER COLLATERAL ASSIGNMENT UNDER COLLATERAL ASSIGNMENT TO: TO: DATE FILED. NO. DATE FILED' NO. DATE RELEASED: DATE RELEASED: MISCELLANEOUS /NSTRUMENT: Power-of-Attorney, John J. Belly; Affiduvit,Jeffrey E. FILE NO: #8793 Epstein, Trustee for Zorro Trust. MISCELLANEOUS INSTRUMENT: FILE NO: MISCELLANEOUS INSTRUMENT: FILE NO: SDNY_GM_00173720 EFTA_00195375 EFTA01305620 p age II of 53) ( ill NEW CO STATE LANG OFFICE 6-m-.2-79/ PARTIAL ASSIGNATINVT OF AGRICULTURAL TEASE , (nye), the undersignedDuets), beeryum, l • to Jeffrey E. Epstein (7.; sue) ysiffisty,saegrey A/ad/64 gy vozz 2orro Trust, a New York Trust Telephone (111. as it relates to the lands described )-e1nw all (my/our) right, title and interest/in State Agricultural Lease No. 2583 and all rights to compensation for the improvements too the leased land, for which improvements (I/We) hereby either waive payment or acknowledge receipt of payment of full improvement value. (Uwe) understand and agree that any outstanding sublease of all or a portion of the leased lands is hereby laminated. the lands covered by said lease are described as follows: ToWnship 12 North Range 9 East section 2: . Lots 1,2,3,4,7, SANDs, S1/211141c, 5$c for 518.97acre Township 12 North Range 9 East section 16: All - 640.00 acres Total - 1,158.97 acres THIS LEASE ASSIGNMENT SHALL NOT BE EFFECTIVE UNLESS APPROVED IN WRUNG BY TIM COMMISSIONER OF MEM LANDS. County of411\4a- Stale ofAn e‘..40-0 ALI ° Subscribed and sworn to before me this 4z) day of tiLkeathm„, 19 OA & by AYN scan I L t (b)wei CI MY COMMLSSIONMMES: 10 - Lb-% Approved in fgvor of the aba.. ISTTIOCI ofinermee this 19 9-3 • orT:cta SZAL IVAD lr DVE KOTA2V MA:. IC STATG OF KW /4-N1C° My Commission Expires ASSIGNMENT FEE - (fifty dollars) S.56 (revised I/93) (1034 03-(e-93,111:06 550.011+ 10 ner of Public.Lan SDNY_GA4_00173721 EFTA_00 195376 EFTA01305621 / (Elbe 12 of 'Si) • LCAG040-01 HEW MEXICO STATE LAND OFFICE • AGRICULTURE LEASE MASTER LIST 03/10/93 LESSEE NAME EST NR ID LEASEHOLDER NAME15) CAVEAT INTX BILL ATE " • 11760 53212 ZORRO TRUST JEFFREY E. EPSTEIN - TRUSTEE Y T • PAGE: 1 LEASE KR: GM2791 • CONTACT ERROR TELEPHONE INDICATOR • • BILLING ADDRESS: 457 MADISON AVENUE HEW YORK NY 10022-0000 • LEASE SEQ • Nit NR TYPE CONSOLIDATED FROM GM2791 000 RENEWAL • LEASE SEQ SEC TWO( RNG SUBDIVISION(S) ACREAGE TYPE PPU-- CC CHARGE INST • GM2791 001 02 12.OH 09.0E LOTS 192,3,4,7,5W4NE4,52NWO,SW4 OM2791 002 16 12.0N 09.0E ALL 518.97 640.00 GRAZING GRAZING 12 12 383.75 473.24 01 01 <HARHIHGW • LEASE TOTALS 1,158.97 $856.99 • TYPE: ACREAGE: • CHARGES: --RANGELAND- BID 1,158.91 .00 $856.99 0 00 __ -(CULTIVATED) DRY --IRRIGATED-- --ASSOCIATED- CRP -IMPROVEMENT- .00 .00 .00 .00 .00 .00 0.00 $.00 0.00 0.00 0.00 0.00 --- DISTRIBUTION SUMMARY ZZZZZ CUrr===== 0 • --LEDGER-- INST X INST X LEASE ACREAGE CHARGES 0 01 <<ERROR)). 01 1.000 1,158.97 $856.99 TOT <<ERROR>> 1.000 1,158.97 $856.99 • • • lee • • LLES6 I 00-V1.43 ZUCAD0 WO ANCIS • • • • • • • 11 • EFTA01305622 W64.1-4 iScut 94 elatr (lb ataffarf_l_ented 1-41,e) Aria -(0 Yle e. /2a 1 ,, S -7/O2. SCOIV_GII,00113723 EFWOO195378 EFTA01305623 "Li:/aiida • doer- - /a--31-40 Cm -/T/71 G-c-2.0 72- SDNY_GM_00173724 EFTA_00 195379 EFTA01305624 JIM BACA COMMISSCHER U *nu of Xlef73 ?Mexico V OFFICE OF THE Oraflanissionar of foliar Probe aunts NE March 11, 1993 Hinkle Law Firm (for Zorro Trust) C/O Norma Keranen 500 Marquette NW, Suite 800 Albuquerque, New Mexico 87102 RE: GRAZING LEASE NO. GM-2791 Dear Lessee(s): P0. BOX 1148 SANTA Ft NEW Mt(ICO 8750411/8 Enclosed for your execution is a copy of the above mentioned grazing lease for 1,158.97 acres due to a partial relinquishment of GM-2583. The lease needs to be executed on the enclosed signature pages before a Notary Public. Please be sure and sign your name(s) as it/they read on the face page of the lease. BOTH COPIES of the signed and notarized lease MUST BE RETURNED TO THIS OFFICE FOR THE COMMISSIONER'S APPROVAL. Once the lease is approved, a copy will be returned to you for your records. Please be advised that we need an original or certified copy of a Trust Agreement or Affidavit for Jeffrey E. Epstein, Trustee for 2orro Trust. Plese submit a $10.00.fee to record the document in our office. If ou have any questions regarding this matter, you can contact me at Sincerely., y Valdez Surface Division New Mexico State Land Office SDNY_GM_00 173725 EFTA_00 195380 EFTA01305625 (Page 16 of 53) Jill BAG COWASSOmm MEMORANDUM March 11, 1993 glade OFFICE OF THE Enturtisoioner of Public Paths Santa As PG.BOX114B SANTA Ft NEW MEXICO 17501-1146 TO: Grazing Lease No. GM-2583 FROM: Surface Division/J1v. SUBJECT: Partial Relinquishment from GM-2583 to GM-2791 This lease contains 21,334.74 acres but a partial relinquishment was approved by the Commissioner on February 22, 1993 in favor of Zorro Trust for 1,158.97 acres. The land description being relinquished is as follows: GT-2791 - Zorro Trust SUBDIVISION SECTION TOWNSHIP RANGE ACRES Lots 1,2,3,4.7.WiNEi, SiNWI,SWt All 1,158.97. The acreage remaining on this lease is 20,175.77. Attached is a copy of an adjusted Exhibit A. A worksheet will be prepared to amend the ledger maintenance file. 02 12 North 9 East 518.97 16 12 North 9 East 640.00 SDNY_GAL00173726 EF-EA_00I95381 EFTA01305626 (Page 17 of 53) HEW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT add 347/f5 L02:t. DATE TO FIELD DIVISION: 3/g5/93 FIELD DIVISION CONTROL NO. Aile--K.Or REQUESTING DIVISION i'S'Unrertr,F .6; I); ,5 ; O4 BY:Atonp t , 1 FP-se:500k A n LEASE NUMBER: (/ 11^ 777/ TYPE OF REQUEST: ( -het th ..(14- NAME OF LESSEE/APPLICANT: Zip O t) tal 775 Ara- - Wagazet .gos ic im - —R , tis 4:...t. ADDRESS 4/5.'7 nil/ semi AVE Net s.i Yam, k ) New Ilictic /007 --) DESIGNATED CONTA Mtn, XL:Sr ; 414% nn• y #4 r",--1- Ra- Veight.)6 ankh-i ADDRESS 41R0i• toi is/ SoLl tin A rt.O.1.1....44v_ At 44-1 • 5 t. S e- 45°6 Flta" A/C I 5V-3 PHONE NO LEGAL DESCRIPTION SECT/O11: TAP. RGE. COUNTY: Ith - e l ""f 7rot .fir ) el A) 3 Re3/49 .429,, -cFF- 444n 0040 den- • '4°/v. SrA.05s el/an, cri5. a&Atican/ iT% 9:2/ 1 W ig tt a trac :A I /:41/3 I a /-r h e-n-Agsn 7", rt k, .1. 5 r tn•nr --- tht — ZIA/ 09e. Satpf\J DATE RETURNED TO REQUESTING DIVISION/BUREAU: LAND USE SPECIALIST RECOMMENDATION: RECOMMENDATION P VAL: FIELD DIVISION IREOUE ING DIVISION l -c9.? -93 DO NOT APP COMMENDATION: (PLEASE STATE REASONS) • • ACTION TAKEN BY REQUESTING DIVISION: DATE RETURNED TO LAND USE SPECIALISTI G-89 REVISED 1/91 . SDNY_GM_00173727 EFTA_00 195382 EFTA01305627 (Page 18 of 33) ?. akk?4 ,,adAxt_ • adhfriA- , ' et ift": 4 '7'7 SDNY_GM_00 173728 EFTA_00195383 EFTA01305628 (Page 19 of 53) AGRICULTURE LESSEE ORIENTATION Lease No. 674- 2711 Field Assign. No. fri..76 1. General discussion of State Land Office and its mission. (pamphlet) 2. General discussion of agricultural lease terms and conditions. (Copy of Lease) 63 a. Term loll. b. fluctuations is INIMMII rental 'En 031 c. Pan fitted est d. Multiple use concept. • e. Improvennatt g t. Sobleainp. g9. Rained process. Reservations. 13 L One percent interest en vapid balances. g j. Coming acuity reerdumions. 3. ig General discussion of Range Stewardship Incentive Program. 4. Er' General discussion of Rule 8. (Copy of Rule) 5. ° Transfer/Assignment of lease to new lessee. g a. Witbdiaweb. I3 b. Coverall:1n to cultivated land. c. Ping ins. 6. d Letter from Commissioner to lessees. 7. El Hunter access. I certify that the Land Use Specialist has gi e the documents required and has instructed me on the rms and conditions of ase. Loma SDNY_GM_00 173729 EFTA_00195384 EFTA01305629 (Page .20 of 53) 0 Lon c um, N A Nam MAW COPPED Aims I. MAXI. X. PAP D NANA PC a usettat Ca wpm WNJ PAY A ma I -AA ADAM IL %Wm PCP-. COAIXII. NANA Cu.v.• NOAPS.I .40:04 C amp. Wes. A a D. ANISE yews • aamil KAYO R WNW Demi WINN PIA% O. A40.0 NM. a ac t.. nue • OrSIA ant CAPSPIN JOIN" 0. MCI ANS DINE Se • Se.. Awn al ADAM- 40•CPI• MIS Teal a -w c awl c NAY 0 MANN •me•A T WOS NAM A OS • AMA ypI ANEW. ▪ C 00. Pam 0. IICNICAN MID N 004aCISMAY /-O-S Cite, • WC* niCZOMPILIJ.00•COM obrecita onset' Jesortios ANNA EWA • MAMA A Da Noma nnlloINI100, ( 0-N Dna. OA • Ni/WIT Dia IL WV • awa. memo AMMO CAM WOONS MANN m. PI -.y DAN AEA Mtolta• • want, ACISO J ODOM, AMA • MAME Gan web. Inman Lams JOIN P. WANDA twasue Pi owe Ca tamr. At a. Pe JAMS MA KmattAt WAD r WNW man ANA OM= • WM. SSW CIMILT 00001T *IOW •0•001101 INN uCtplatt w ars soma HINKLE, Cox,EATON,COFFIELOGI HENSLEY ATTORNEYS AT LAW SOO MASOLIEITC N.W. SUITE 000 POST op-vice sox 2013 ALEIJOLIEWOUE. NEW MEXICO 87103 'SOS, 70lE/000 PAN ;COSI 7IPS•ISES DAMNS( C. ANL mama NC GAAAWD. ANNA* WPC Os00' aA Swam 00•000. 0 is (0/6000, MAO Per a a IMO] ILIOSIO I4000.0 SOY 0.C. sea 0000.4 .•••• I IP *Wet March 15, 1993 Ms. Jenny Valdez Surface Division NM State Land Office P.O. Box 1148 Santa Fe, New Mexico 87504-1148 RE: Grazing Lease No. Dear Ms. Valdez: GM-2791 700 was OMR PLATA POST PM( OM PO IrONWL4. Are ARCS IMO. W E WAIN NW 01:14.1.1/ IMPQMWSMCCA • Oats WPM POSTOMECOOPM00 Nowa, mos whoa ;POI 041.0.04a, MP Nan 00JAIIII NM WAN Mtn Malmo POST orn:c SOX It)' •••••••0. IOLS Pews * MI IMAM Iy WON MEDD le 6041121•40. YMI ONKC DOf WM Sawn% ft KM IOC* NSA SON tIONISM MOOS INININgl Enclosed are two original leases, numbered GM-2791, signed by John Kelly as Attorney-in-Fact for Jeffrey Epstein, Trustee for the Zorro Trust, along with two original Affidavits signed by Mr. Epstein and a certified copy of the Power of Attorney between Mr. Epstein and John Kelly. I am also enclosing a check for $10.00. Please have the leases signed and approved and return a copy'to me, or our runner if possible, at your earliest convenience. Thank you. Should you have any questions, please do not hestitate to call me at Sincerely yours, HINKLE, COX, EATON, COFFIELD I HINCLEY litio7rna Norma J. Keranen Paralegal Enclosures SDNY_GM_00173730 EFTA_00195385 EFTA01305630 (Page 21 of 53) RECEIVED '93 fifiR 16 FIP110 28 STATE LAND OFFICE SANTA FE, N.M. - SDNY_GM_00173731 EFTA_00 I 95386 EFTA01305631 IPage 22 of 53) 00 • HINKLE, COX, EATON, COFFIELD & HENSLEY LOY COP ITICO •• •DIOCSOft. Pao Caps Joel N. POWs COO.* • COMM& APORY • loot OWOONOWO OWooRAOSO MCMVas.O.0 air Mwerboa ftwcwAft...a ...SAL • WIMP Mt. .. 1.II•Ct twal• 6. awns) Aw.. • "CLI, .00J4 a NOM.0 T. Caa ettla 'yam -o• 1104M0 C OLIO. MOWS • a. 1.01.• a Mall sarCS a MOMS owe C 0400 anon tealoora JLTV00 t *Swaf rote MCC Alt W0/2/0.4 SOO ITOOMICTO awn • an "WAS ••• maw) awe c eloseere Oaf • COOT*.* .001•6•4900SS O M.. la loot> a *WV offrOf Woe I lollaCCO• W an • COT •••••1.13 WWI LOOM • GOOTP•OPOI STCP.O1 CPpoPies Pau NOV* COMM, • Oat. =MO AOC A sato^t COP • ONO. S OON( WORT Aso M POMw a phOSAC. R.eMM Mum 7. Coreber oa., • per swan .4 OCICA. WaLty • spade OVALS A NOON otlamoo two OVOOpi OSCr ociunee••• NYCO IPPON SCOTT A 0./.00P ••••01 I. MOO OTOPPC C. 'at • • P.O. OS P. Poo •NOS tiCONSCO IP PCs mtarCO ArrO Plan AT LAW COO MANG CCCCC M.W. •W•C SOD POST OFFICE 00% 10a3 ALSUOUCROLIC, NCW MCXICO 07103 (SOS) 700.1400 P AN (SOS) 715(3.15tO OAPITCW4•••4••••••• ▪ C •••Awarta pews/ 4C is a wars w orwim C. • wooer, WM SACO AC 1.104,00 t .4••3 apiwn0A ••••••••••••11, Va. 9.1W November 3, 1993 COMMISSIONER OF PUBLIC LANDS P. O. Box 1148 Santa Fe, New Mexico 87504-1148 ATTENTION: • Jenny Valdez Surface Division Re: Zorro Trust, Lease No. GM 2791 Dear Ms. Valdez: 100 SWOT SAP. as. POST MT.{ On II POSTSLI. POI OCPCO SOSO MOO 111440/0 • •O• •O•tia 2•02 WM:CM Cann • sou Iowa posy Topa OW WO mama TOM 1100t YI ••••••• tax Sal 55345* 000 TCOI tWII OPISID4 ro sy OPPICI SOP DOS ••••••10. TOM 7001 NOV AMMO •00 Stla SO Pe POOTiaoliA POO Oft= so. t066 SANTA PC Na ICC° OSSA OOP M2.0•4 PAS was *swan. EfiClosed please find Hinkle, Cox check number 2502 in the amount of $872.22 for the annual rental payment due on the above- referenced lease. I understand the lease term covered by this payment runs from October 1, 1993 to September 30, 1994. A copy of the rental notice is attached for your reference. Our client, Jeffrey Epstein, the Trustee of Zorro Trust, pi:Wises me that your notices are being delayed in reaching him. The address on your records is correct, but Mr. Epstein asks that you add his name as Trustee of Zorro Trust to the address to insure that it is properly delivered. The complete address should now be: Jeffrey E. Epstein, Trustee Zorro Trust 457 Madison Avenue New York, NY 10022 0O91 II/0;193A ir D. " .2z Le Yee: SDNY_ON1_00 173732 EFTA_00 195387 EFTA01305632 (Page 23 of 53) RECEIVED ; O O '93 NOU 8 Arno 08 STATE t o In OFFICE SANIA FE. tl.M. SDNY_GM_00173733 EFTA_00 195388 EFTA01305633 (Page 24 of 53) • = 0 HINKLE. COX, EATON, COFFIELD E. HemsLEy Page 2 November 3, 1993 Please contact ne if you have questions. Sincerely yours, HINKLE, COX, EATON, COPP ELO HENSLEY 3,31:ch Enclosure to: Gie Marines* SDNY_GM_00 173734 EFTA_00 195389 EFTA01305634 (Page 25 of 53) RECEIVED '93 !JP 8 RN io us STATE (MID OFF/CE SANTA FE. U. M. • SDNY GM 00173735 EFTA_00 195390 EFTA01305635 (Pogo 26 of 53) <10' t7i RAY E. POWELL COMMISSONIER November 10, 1993 tats hrf Pita Pk -zit° OFFICE OF THE e ntunissioner of Fahliz Pulite Santa girt Soria Trust c/o Jeffrey S. Epstein - Trustee 457 Madison Avenue' New York, NY 10022 RE: State Crazing Lease OM-2791 Dear (6): P.0.00XII411 SANTArEdIEWMICO If75014I145 A review of our files indicates that the annual rental on your grazing Phase which was due October 1, 1993, remains unpaid at this tine. An interest fee of 1% per month will be d for each month the payment remains outstanding. Therefore, if you return your payment in November, you will need to submit $880.86 which includes a 2% interest fee. If you return your payment in December, you will need to submit $889.50 which includes a 3% interest fee. • If your payment including interest has been submitted, please disregard this letter. • • If you do not intend to continue to lease, please notify me accordingly. If you have any questions regarding this matter, please feel free to contact se at 837- 5731. Sincerely, eley-/C6 Mary Du8ose Surface Resources Division N.X. State Land Office a ;eatr _ cehatli - aO61- 10 e(ge re-;- • /etaAz, SDNY_GA.1_00173736 EF-EA_00I95391 EFTA01305636 (Page 27 of 53) S NEW MEXICO STATE LAND OFFICE APPLICATION Int PEEN/SSION TO RAZZ naniOVENENTS JEFFREY E. EPSTEIN ZORRO RANCH of (address) P.O. BOX 56_2- ST AN T.RY NM 87056 herewith make application for the written consent of the Commissioner of Public Lands co make improvesencs on the lands in Leese No. ANI-941941_. described as follows: GT() • 211CI I SURDIVISION it @vie-€.1(4 gm. 16 no. 12N gm 9E ACRES 640 If any or all proposed improvements ire to be built under a federal cost-shire program, please check which pro- gram or rrrrr aaa era involved and give actual cost of each ate.. Great Plains Program (SCS) ( ) - ASCS ( ) - OMR ( ) - NONE ( ) Barns, stables and corrals Nall (give depth and description) ygigg g N/A Fences (give length, i.e., miles or footage and kind) value S N/A Nindeill other improve eats Grass strip run9av for private plane. value s N/A Value N TOTAL VALUE OT DiPROVEKDITS $6,000.00 Amount to be defrayed by federal cost-share program, if any Value $ 0.00 Total economic cost expanded by LESSEE Value 6 000.00 Estimated time of JULY:1,:1994 r E. Epstein LESSEE I , Commissioner of Public Lands; hereby give my consent to the above lemem(s) to maim improvements as listed above, conditioned upon cbs comple- tion of construction and inatallation of such'improvements on or before 19 , and further conditioned upon receipt of t‘opyb. [-share agreement (whin applicable) and evidence of actual costs. APPROVAL DATE (On plat on reverse side Indicate approximate location of proposed improve...ors.) ‘ 6 Z 2I CONKISSIONER 0 PUBLIC LANDS 000 SLO 4-25-9411111 $30.00PAPPLICATION FEE $30.00 S-09 (REVISED 8/4/88) SDNY_GM_00 173737 EF-EA_00195392 EFTA01305637 (Page 28 of 53) 0 - RECEIVED ga ZS rin 9 90 r ik/E • , DFFICE • r e/ (311/02/1 PaaTa88) 60-S • - -- , -- -•••• . - • • •:' : • ;-- - P I .1 . : - , • : : — - --i • • : Il • . .. • 2 -1... .. . ..• • • 1 ••• — • . PC i• —i^ . '1". • I • • I I ' • ... it. r t---- • • . . . . _ _ . " ..% s • : ....!. . • . ...:.• ' s : ...... l• . " . • .. . : ! • -. : . .. — ..— - : - - • - ' la 1. t . . t : ; • • t . .. 10 -.1- : -- • : : . .. .. ■ • • _ ...... ' •O : . i : ' -1' . • • : •■ i Milk : "Il : •• • : I s ' . ..- ►— : : ' : -4.- -. i s : : — : • • - . .. .--• i s • MI s I • 041 r : : • • t . F . . ..e. • • • . : N . —4'" . . ..?.. 1 • : . . L ..i , -.I .1 ... • - .. ... • .. ÷ . • — 4.- . ..”... • • 1- . . "2 . . . .1 . : : I ... N: • zi •. : . • I : r : : . • : : . • : .' ." .. jE ..1.. 1.• 1 .1 .• ••1•• ••r •i— —I— —i• --I— -- — ..• s • • . . s : i i s ! ! • . • I. I rigr Surd Vhs1 gy.ury ubinai I -1.0I Inn drgnuaol 'Surd /N 'Munoj 56 g Bury Nw eel NZ T 33 VINVS SDNY_GM_00173738 EFTA_00 195393 EFTA01305638 (Page 29 of 53):,..,• 0 NEW MEXICO STATE LAND OFFICE REQUEST FOR FIELD ASSIGNMENT 842 6////94, DATE, TO FIELD DIVISION: S& IT/ • FIELD DIVISION CONTROL NO. )^4 REQUESTING DIVISION SUrialte BY: allb./14 ina e LEASE NUMBER: GT17 - 979/ TYPE OF REQUEST: j__Thpnwrfien-i— NAME OF LESSEE/APPLICANT: . 7orro ADDRESS c )0 uerrmi Ep,S4-eiN Pp DESIGNATED CONTACT ' .250/Me ADDRESS Sa/nt LEGAL DESCRIPTION 157 Mac/ th071 fig/. Akio Or, Ai Y101.11, PHONE NO. SECTION: YWP. RGE. COUNTY: /49 latu % Sonia F . ;rI p &Lae A IR O T 6.4_,Iet7t.444astotiec:#07,k REMARKS: 1;) (0 Cheer 71--br om achy" sileitag$ 'an -these !m voice/1j 1 be The crn -Please fittre61 and Pith yoUr iteenmend h(725 and (141 fiss: Tn. Bo 544 c. -1.tini-e )krii 87051D DATE RETURNED TO REQUESTING DIVISION/BUREAU: 1-5015/44- LAND USE SPECIALIST RECOMMENDATION: ?,64d.:41/../...-42rili pie:r1444..) app/tai y RECOMMENDATI N PROVAL: FIELD DIVISION 'REQUESTING DIVISION 7f DO NOT APP RECOMMENDATION: (PLEASE STATE REASONS) N TAKEN BY R QUE TING DIVISION: Cfln1 DATE ED TO G-89 REVISED 1/91 SPECI IST: SDNY_GA4_00173739 EFTA_00 195394 EFTA01305639 (Page 30 of 53) RAY rows!.. coADCM9OMER 0 $1the of !rein Alexia, Qloutatissionn of public 'Pubs MOLD SANTA FE TRAIL Pe DCX ine SARUMNEW IAEXICON7504-1141 MAY is, 1994 TO: RAY POWELL, H.S., D.V.M., COMMISSIONER OF PUBLIC LAND FROM: MARCUS J. GARCIA LAND USE SPECIAL SUBJECT: GM-2791. APPLICATION FOR'IMPROVEMENTS. ZORRO TRUST. ASSIGNMENT RECEIVED MAY 11, 1994. • 6451 4174760 FAX 6051 1,274X4 MSG -684 REMARKS As per the attached correspondence, the lessee requests that the subject application for improvements be withdrawn, and so it is recommended. LEGAL DESCRIPTION Within section 16 of township 12 north, range 9 east, N.M.P.M., Santa Fe county, New Mexico. MJG SONY_GM_00 173740 EFTA_00 195395 EFTA01305640 (Page 31 (14(35Sn- 1994 11:59A1 FROM ZORRD (PINCH TO • Zorn' Ranch 182?57E6 P.01 P.O. Box 567 Stanley, New Maim 87056 Fa FAX TRANSMISSION COVER SHEET Date: May 18, 1YY4 To: Marcus Garcia New Mexico State Land Office Fax: Subject Sat Shannon Pritchard YOU SHOULD RECEIVE 2 PAGE(S). INCLUDING THIS # YOU DO NOT RECEIVE ALL THE PAGES, PLEASE riust..4.4......a.i.ny a. ue kar de leado...1 •141.4164.11•••• as. ..s7 wa* %Am sad Y44 ra map lance as lateMeirop1en. posit Roby KOSS skit sayilliaailiudonabethafa (Opitvi avd netInd Ole 0400MhZeill In awe. flag. redly Inseliesky Ivy isispient.t. any fa iu men Therilirc. SDNY_GNL00173741 EF-EA_00195396 EFTA01305641 (Page 32 ot,53$8-199.2 11 5941 FROM ZORRO RANCH TO 18275766 P.02 zoitity RANcri May 12, 1994 Mr. Mama Garcia New Mmdco State Land Office Mid Division P.O. Box 1148 Santa Fe, New Mexico 87304.1198 RE: ZORRO RANCH Dear Mr. Garth. This letter is to inform you and your office that Zorro Ranch is no longer pursuing the permitting process for the construction of a grass landing strip on New Modzo state land. Please stop all permitting action on this file. Thank you, let /Hart Cri cc. Jeffrey Epstein V • P.O. Box 567, Stanley, New Mexico .87056 * * (5051832-2676 Fax. TOTAL P. 02 SDNY_GM_00173792 EFTA_00 195397 EFTA01305642 (Page 33, of 53) • • • NEW NEEICO STATE LAND OFFICE REQUEST FOR FIELDASSIGNMENT DATE TO FIELD DIVISION: 5/4 195/ FIELD DIVISION CONTROL NO. REQUESTING DIVISION Sarum BY: :parka, InaTc-ias LEASE NUMBER: G07-974Y TYPE OF REQUEST: rThry()Unne./1-1-- NAME OF LESSEE/APPLICANT: 7OreO—Fiusi- ADDRESS eh) 3ePPrey E. Epnikeita , 157 inadiaoli 41,. gay Vorr Y DESIGNATED CONTACT .Satine ADDRESS some LEGAL DESCRIPTION SECTION: /49 PHONE NO TWP. RGE. COUNTY: 10w 9r sank? REMARKS: rho s cheat )1-Or any acintsleaget tan #ese Improxe em13 be rhee ern 11-0740 /aril ?feriae htpethl gn mare your fiwninPythdatiern3 Onci, Oddieg ?flaw 519r1 r -itinteji Awn 87051a DATE RETURNED TO REQUESTING DIVISION/BUREAU: LAND USE SPECIALIST RECOMMENDATION: RECOMMENDATION APPROVAL: FIELD DIVISION IREQUESTING DIVISION DO NOT APPROVE RECOMMENDATION: (PLEASE STATE REASONS) ACTION TAKEN BY REQUESTING DIVISION: . DATE RETURNED TO LAND USE SPECIALIST: G-89 REVISED 1/91 SDNY_GM_00173743 EFTA_00 195398 EFTA01305643 State of Newt Modto " SAY A POI7P-LL COLIII4$0NUI . Zorro P. tanley, NM 87056 ineigr.eme gareiv ei- 7 Af COITITIIISSiOrter Rae Lands 1.0.10X 1144 RAM ft NEW ilDICO/Y404-114 4/5 achion Ave. x 567 ' rt e, kr/Odaz)- Referepee Agricultural Lease No. GN-2791 Improvement Application Attn: Jeffrey E. Epstein Date Nay 23, 1994 SUBJECT: THE ATTACHED DOCUMENT IS FOR YOUR COMPLIANCE WITH THE REQUIREMENTS INDICATED WITH CHECK MARKS. 1. Please sign enclosed copy(iss) on referenced Lease(s) before a Notary Public and return-in order to complete the Lease(s). 2. Enclosed referenced assignment(s) transferred by. and approved by Commissioner on 3. 1.--1 Asia nt(e) will not be accepted duo to: /--7- Erasures in description, Strikeover(s) in description, 1-7 Executed on improper forms, i::71ntomplete description, 7/ Acknowledgement is incomplete. Please re-issue a new assignment. 4: Please furnish this office with $500.00 Single Damage Bond or' $2,500.00 Blanket Damage Bond, as required by Statute so Lease can be approved. S. Lands applied for are under Purchase Contract. You must obtain written 'consent from . Your application will be held in abeyance awaiting this consent. /77 Approved eopy(ies) of your (is/are) enclosed for your files. 7. Apr Other: As per your letter dated May 12, 1994, Ale improvement Application —.has been cancelled. If you have any questions regarding this matter, please contact me at S ncerely, 0 1/40..0.0 MnvtAw Darlene Maestes, Grazing Section burrito. Resources Division G-76 (February 15, 1984) SDNY_GM 00173744_ EFTA_00 195399 EFTA01305644 (rape 35 of 531 Sr . _ • NEW MEXICO STATE LAND OFFICE COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING P.O. BOX 1148i-SANTA FE, NM 87504-1148 AGRICULTURAL LEASE LEASE NO. GM2791 THIS LEASE, DATED OCTOBER 1, 1994, IS ENTERED INTO BY AND BETWEEN THE COMMISSIONER OF PUBLIC LANDS, NEW MEXICO STATE LAND OFFICE, STATE OF NEW '.ICO, HEREINAFTER CALLED "LESSOR", AND: ZORRO TRUST HEREINAFTER CALLED "LESSEE(S)", WHOSE ADDRESS OF RECORD I C/O JEFFREY E. EPSTEIN 457 MADISON AVE NEW YORK LESSOR AND LESSEE AGREE AND COVENANT AS FOLLOWS: 1. LEASE. NY 10022-0000 XYIEF: „AIM FOR AND IN CONSIDERATION OF AND SUBJECT TO THE RENTALS AND THE TERMS, COVENANTS, CONDITIONS, AGREEMENTS, OBLIGATIONS, AND RESERVATIONS CONTAINED IN THIS LEASE.AND ALL OTHER EXISTING RIGHTS, LESSOR GRANTS AND LEASES TO LESSEE AND LESSEE TAKES FROM LESSOR THE TRACT(S) OF LAND DESCRIBED IN EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE. 2. TERM. THE TERN OF THIS LEASE SHALL BEGIN ON OCTOBER 1, 1994 AND SHALL EXPIRE AT MIDNIGHT SEPTEMBER 30, 1999. 3. RENT. THE ANNUAL RENT NL SHALL NOT BE LESS THAN THE MINIMUM RENTAL ESTABLISHED BY SECTION 19-7-29 NMSA 19/8 AND SHALL BE PAID IN ADVANCE FOR EACH LEASE YEAR AND RECEIVED IN THE STATE LAND OFFICE ON OR BEFORE OCTOBER 1. THE ANNUAL RENTAL POR GRAZING LAND SHALL BE DETERMINED AS FOLLOWS: ANNUAL RENTAL = BASE VALUE X CARRYING CAPACITY X ACREAGE X ECONOMIC VARIABLE INDEX (EVI), AS DEFINED BY STATE LAND OFFICE RULE 8.022(8). IN NO EVENT SHALL THE PRODUCT OF THE APPLICATION OF THE EVI, FOR EACH SUCCESSIVE YEAR LOP THE LEASE TERM, BE DECREASED OR INCREASED BY MORE THAN THIRTY- THREE AND ONE-THIRD PEWEE?. IN THE CASE OF GRAZING RENTAL OFFERS ON OPEN ACREAGE OR PURSUANT TO COMPETITIVE BID, LESSOR MAY ACCEPT GREATER RENTAL AMOUNTS THAN THOSE DETERMINED BY THE FOREGOING FORMULA, BUT THE ANNUAL GRAZING RENTAL DUE IN ANY LEASE YEAR SHALL NOT BE LESS THAN THE FORMULA AMOUNT. THE ANNUAL RENTAL FOR CULTIVATED LAND, ASSOCIATED LAND AND CONSERVATION RESERVE PROGRAM LAND SHALL BE DETERMINED qy LESSOR AND SHALL REMAIN UNCHANGED DURING THE TERM OP THE LEASE. THE TYPE OF LAND HEREBY LEASED AND THE ANNUAL RENTAL AMOUNT FOR THIS LEASE SHALL BE AS SET OUT IN EXHIBIT A HEREIN. 4. PERMITTED USE. LESSEE MAY USE THE LEASED PREMISES ONLY FOR SUCH OPERATIONS AND ACTIVITIES AS ARE NECESSARY TO CARRY OUT THE PURPOSES FOR WHICH THE LEASE IS GRANTED AS SPECIFIED IN EXHIBIT A, AND IN ORDER TO COMPLY WITH ALL APPLICABLE PROVISIONS OF LAW REGARDING THE 000 SLO 7/14/9411134 1916.31F4 000 SLO 7/14/949135 150.0014 SONY_GM_00173745 EFTA_00195400 EFTA01305645 (Page 36 of 53) ' 04 " • 64: 14 ' 0712 oil qtadri ; • If • /. • SONY GM 00173746 EFTA_00195401 EFTA01305646 (Pogo 37 of 53) • • ; t. • • CARE AND PROTECTION OF THE LEASED PREMISES. 5. LIEN; AS SECURITY FOR THE PAYMENT OF ANY RENT THAT IS OR HAY BECOME DUE AND UNPAID, LESSEE GRANTS TO LESSOR A FIRST AND PRIOR LIEN UPON ANY AND ALL IMPROVEMENTS AND CROPS ON THE LEASED PREMISES. 6. IMPROVEMENTS. NO IMPROVEMENTS, EXCEPT AS OTHERWISE PROVIDED BY LAW, SHALL BE PLACED ON THE LEASED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR. ALL IMPROVEMENTS PLACED ON THE LEASED PREMISES IN VIOLATION OF THIS PARAGRAPH SHALL BE CONSIDERED AND TREATED AS UNAUTHORIZED IMPROVEMENTS IN ACCORDANCE WITH THE APPLICABLE LAWS AND RULES. 7. ASSIGNMENT, SUBLEASE AND RELINQUISHMENT. LESSEE SHALL NOT ASSIGN OR SUBLEASE THE LEASED PREMISES OR THE IMPROVEMENTS ON SAID PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR AND SUCH OTHER REQUIREMENTS'AS PRESCRIBED BY LAW OR RULE. AS PROVIDED BY LAW AND RULE ANY LEASE, IN GOOD STANDING, MAY BE RELINQUISHED TO THE STATE. UPON RELINQUISHMENT HOWEVER, THE LESSEE SHALL NOT BE ENTITLED TO A REFUND OF RENTALS PREVIOUSLY OWING AND PAID. 8. COLLATERAL ASSIGNMENTS. ANY AGRICULTURAL LEASE MAY BE ASSIGNED AS COLLATERAL SECURITY SUBJECT TO THE EXPRESS WRITTEN CONSENT OF THE LESSOR AND SUCH OTHER TERMS AND CONDITIONS AS PRESCRIBED BY LAW OR RULE. THE APPROVAL OF A COLLATERAL ASSIGNMENT, HOWEVER, SHALL NOT PREVENT THE CANCELLATION OF THE LEASE AND TERMINATION OF THE COLLATERAL ASSIGNMENT FOR THE NONPAYMENT OF RENTALS OR OTHER VIOLATIONS OF THE LEASE TERMS. 9. DEFAULT AND CANCELLATION. THE VIOLATION BY LESSEE OF ANY OF THE TERMS, CONDITIONS, OR COVENANTS OF THIS LEASE OR THE NONPAYMENT BY LESSEE OF THE RENT DUE UNDER THIS LEASE SHALL AT THE OPTION OF THE COMMISSIONER BE CONSIDERED A DEFAULT AND SHALL CAUSE THE CANCELLATION OF THIS LEASE 30 DAYS AFTER LESSOR HAS SENT WRITTEN NOTICE OF SUCH DEFAULT TO THE LESSEE AND TO ANY HOLDERS OP COLLATERAL ASSIGNMENTS BY REGISTERED MAIL, ADDRESSED TO THE POST OFFICE ADDRESS OF RECORD, PROVIDED, HOWEVER, IF WITHIN THE THIRTY DAYS THE LESSEE OR HOLDERS OF ANY COLLATERAL ASSIGNMENTS SHALL COMPLY WITH THE DEMAND MADE IN THE NOTICE, CANCELLATION SHALL NOT BE MADE. 10. RENEWAL. ANY LESSEE WHO DESIRES TO SECURE A NEW LEASE SHALL )(AXE AND FILE AN APPLICATION WITH THE LESSOR ON OR BEFORE AUGUST 1 NEXT PRECEEDING THE EXPIRATION OF THIS LEASE. THE RIGHT OF RENEWAL SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS PROVIDED FOR BY LAW AND RULE. 11. RESERVATIONS. A. LESSOR RESERVES THE RIGHT TO EXECUTE LEAES ON THE LAND GRANTED BY THIS LEASE FOR MINING PURPOSES AND FOR THE EXTRACTION OF OIL, GAS, SALT, GEOTHERMAL RESOURCES, AND OTHER MINERAL DEPOSITS THEREFROM AND THE RIGHT TO GO UPON, EXPLORE FOR, MINE, REMOVE AND SELL SAME. LESSOR FURTHER RESERVES THE RIGHT TO SELL OR DISPOSE OF NATURAL SURFACE PRODUCTS OF SAID LANDS OTHER THAN GRAZING, AGRICULTURAL OR HORTI- SDNY_GM_00173747 EFTA_00195402 EFTA01305647 (Page 38 of 53) O • - )'a'+12 Oy S.V. (4 ;Tilt it ..41LE • • SDNY_GM 00173748 EFTA_00 195403 EFTA01305648 (Page . 35 of 53) CULTURAL PRODUCTS AND TO GRANT SUCH OTHER RIGHTS-OF-WAY AND EASEMENTS AS PROVIDED BY LAW. LESSOR RESERVES THE RIGHT TO WITHDRAW PURSUANT TO RULE, UP TO 640 ACRES, BUT IN NO CASE MORE THAN HALF, OF THE LAND HELD BY THIS LEASE. 12. COMPLIANCE WITH LAWS. LESSEE SHALL AT ITS OWN EXPENSE FULLY COMPLY WITH AND BE SUBJECT TO ALL LAWS, REGULATIONS, RULES, ORDINANCES, AND REQUIREMENTS OF LESSOR AND APPLICABLE CITY, COUNTY, STATE AND FEDERAL AUTHORITIES AND AGENCIES WHICH HAVE BEEN OR MAY BE ENACTED OR PROMULGATED, IN ALL MATTERS AND THINGS AFFECTING THE LEASED PREMISES AND OPERATIONS THEREON. SUCH OTHER AGENCIES SHALL NOT BE DEEMED THIRD PARTY BENEFICIARIES UNDER THIS LEASE. 13. HOLD HARMLESS. LESSEE SHALL SAVE AND HOLD HARMLESS, INDEMNIFY AND DEFEND LESSOR AND THE STATE OF NEW MEXICO, AND THEIR AGENT OR AGENTS, IN THEIR OFFICIAL AND INDIVIDUAL CAPACITIES, OF AND FROM ANY AND ALL LIABILITY CLAIMS, LOSSES, OR DAMAGES ARISING OLT OF OR ALLEGED TO ARISE OUT OF CR INDIRECTLY CONNECTED WITH. THE OPERATIONS OF LESSEE UNDER THIS LEASE, OFF OR CN THE LEASED PREMISES OR ARISING OUT OF THE PRESENCE ON THE LEASED PREMISES OF ANY AGENT, CONTRACTOR OR SUBCONTRACTOR OF LESSEE. 14. AMENDMENT. THIS LEASE SHALL NOT BE ALTERED, CHANGED OR AMENDED EXCEPT BY INSTRUMENT IN WRITING EXECUTED BY LESSOR AND LESSEE. 15. WAIVER. NO WAIVER OF ANY BREACH OR DEFAULT BY LESSEE OF ANY OF THE TERMS, CONDITIONS OR COVENANTS OF THIS LEASE SHALL BE HELD TO BE A WAIVER OF ANY SUBSEQUENT BREACH. NO WAIVER SHALL BE VALID CR BINDING UNLESS THE SANE IS IN WRITING AND SIGNED BY LESSOR. 16. DELINQUENT RENTAL. ALL RENTAL PAYMENTS RECEIVED AFTER OCTOBER 1 OF EACH YEAR SHALL BE CONSIDERED DELINQUENT AND SHALL BE SUBJECT TO THE PAYMENT OF INTEREST AT A RATE OF ONE PERCENT (1%) A MONTH FOR ANY FRACTION OF A MONTH. INTEREST SHALL ACCRUE FROM THE DATE THE PAYMENT BECOMES DUE. 17. APPLICABLE LAW. THIS LEASE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW MEXICO. 10. SUCCESSORS IN INTEREST. ALL TERMS, CONDITIONS AND COVENANTS IN THIS LEASE SHALL EXTEND TO AND BIND THE HEIRS, ASSIGNS, AGENTS, ATTORNEYS, CONTRACTORS AND SUCCESSORS IN INTEREST CF LESSOR AND LESSEE. 19. CARRYING CAPACITY REEVALUATION. THE LESSOR RESERVES THE RIGHT DURING THE TERM OF THIS LEASE, AND UPON THE LESSOR'S DISCRETION, TO CONDUCT CARRYING CAPACITY REEVALUATIONS AND MAXE THE NECESSARY ADJUSTMENTS TO THE LEASE AND RENTAL AS MAY BE REQUIRED. SON1(_GM_00173749 EFTA_00195404 EFTA01305649 (Page 40 of 53) ri t y 11201 • ibE me "4.8. 1 SDNY_GPA_00173750 EFTA_00 I 95405 EFTA01305650 (Pogo 41 of 53) WITNESS THE HANDS AND LESSEE JEFFREY LESSEE S IS OF AND LESSEE ON THE DAY AND YEAR FIRST ABOVE WRITTEN. . * • COEMISSIONER :Ofd.O,ist4-t • i—ai - 1 •-4/, %'? I 1. 0 t • SLd • • .••••• II% • ... . 'f*.k? c. •••, - . . STATE OP NEW MEXICO COUNTY OF ) ) ) ACKNOWLEDGMENTS NATURAL PERSON(S) THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS BY (NAME OF PERSON ACKNOWLEDGED) MY COMMISSION EXPIRES: DAY OF , 19_, NOTARY PUBLIC STATE OF NEW MEXICO ) ) COUNTY OF ) PARTNERSHIP • THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS BY (NAME OP PERSON ACKNOWLEDGED) PARTNER(S) ON BEHALF OP MY COMMISSION EXPIRES: DAY OF , 19 , A PARTNERSHIP. NOTARY PUBLIC STATE OF NEW MEXICO COUNTY OF -69RPGRA94433 1R 11SY THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS S DAY OF BY enr s& oxER; Coloryo (csEtee, MIME) ! OF SAID eeppeRAGEGiat wirs 7E-usT MY COMMISSION EXPIRES: - A pa? , 191:n, , (TITLE OF OFFICER) OF emisr, eatifeRMAIGN, ON BEHALF HARRY N S . New a _ t fityrkR. W, tate of N r No. 24-4853924 oudned In Kings taint, Commlsiton Expires Feb.12. a " 0 :{gyp, 5.O rn41; '4 lc . `' a ........... . ... SDNY_GM_00173761 EF-EA_00195406 EFTA01305651 (Page 42 of S3) •• • e • ..-,•!•••• 1s Iv•lliil • iZ•E ••• i1 I • S SDNY_GM_00173752 EFTA_00195407 EFTA01305652 Rage 43 of 53) . . NEW MEXICO STATE LAND OFFICE APPRAISEMENT OF GRAZING AND AGRICULTURAL LANDS COMMISSIONER OF PUBLIC LANDS NEW MEXICO STATE LAND OFFICE BUILDING PO BOX 1140, SANTA FE, NSW MEXICO 87504-1148 LESSEE: SECTION 10 OF THE NEW MEXICO ENABLING ACT SPECIFICALLY REQUIRES THAT ALL STATE LAND TO BE LEASED BE APPRAISED AT ITS TRUE VALUE. STATE LAW, UNDER SECTION 19-7-1 NMSA 1978, FURTHER PRESCRIBES THAT SUCH APPRAISEMENT BE SECURED BY THE LESSEE WHEN ACQUIRING A LEASE AND THAT SUCH APPRAISEMENT BE COMPLETED BY A DISINTERESTED PERSON. THE INSTRUCTIONS FOR THE COMPLETION OF THIS FORM ARE SET OUT BELOW. APPRAISEMENT INSTRUCTIONS: THIS INFORMATION MUST BE COMPLETED BY A DISINTERESTED PERSON AND BASED ON THAT INDIVIDUAL'S INFORMATION AND BELIEF. THE LAND MUST BE APPRAISED AS VACANT, I.E. WITHOUT IMPROVEMENTS, FOR BOTH SALE AND LEASE PURPOSES. IT MUST ALSO BE SIGNED BEFORE A NOTARY PUBLIC. I, (FtiSL-e\inle F1/4")(Nlet..t— THE PENALTIES OF PERJURY, THAT AFTER HAVING CONTAINED IN LEASE NO. 9544 27A3 AND OPINION OF THE APPRAISED ASH YALU OF SAME ACRE, IF SOLD, AND $ Jitarna PER ACRE, INTERESTED IN SAID LAND FOR LEASING OR SALE SUBSCRIBED AND SWORN TO BEFORE HE THIS MY COMMISSION EXPIRES: , DO SOLEMNLY SWEAR (OR AFFIRM), UNDER PERSONALLY INSPECTED THE TRACT OF LAND(S) DESCRIBED IN EXHIBIT A OF SAID LEASE, THAT HY (WITHOUT IMPROVEMENTS) IS $ ladkD.460 PER FOR LEASE PUR D CERTIFY THAT I AN NOT THEREOF. SIGNED ADDRESS CITY/STATE DAY OF M&-4 HARRY L BELLER_ liabsy Public2, State of 4New Uric No. 4485392 Qualified In loos Coo , Commission &Oros Feb. 17, 7a7 19 OTARY PUBLIC 00;04* - • •..k. • M ........... t it .• Az cps ••• .. "4,1: . 46-1; ''''' e • • • nee ' ..4°•••••• SONNIGM_00173753 EFTA_00195408 EFTA01305653 (Page 44 of 53) nli 8 16 • • . . . tuE ;;;;.:1; FE, • • SDNY_GM_00173754 EFTA_00195409 EFTA01305654 (Page 45 of 53) • • • EXHIBIT A GM2791 PRICE CC R 1ST • AUTHORIZED PER AA S YEAR SUBDIVISION SEC -TUN- -RIM- ACREAGE USE UNIT RP P CHARGE LOTS 1,2,3,4,7,SW4NE4.52NW4,SW4 02 12.0N 09.08 518.97 GRAZING 12 410.31 ALL 16 12.0N 09.0E 640.00 GRAZING 12 506.00 TOTAL ACRES: 1,158.97 TOTAL CHARGE: 5916.31 RENEWAL LEASE SDNY_GNL00173755 EFTA_00195410 EFTA01305655 (Page 46 of 53) O .. • en:. . ') if? VI • 'fl 120y 12 Oy • • Iw SDPIY_GM 00173756 EFTA_00195411 EFTA01305656 :Page 47 of 53) State cf.NewMexico MY D. POWELL commas e Commissioner 4 Public Lands J i . Zorro ?Let c/o Jeffrey E. Epstein ' 457 Madison Ave. • New York, NY 10022 P.O. BOX INS SANTA Ft NEW MUI 117501-1144 Reference Agricultaral Lease No. GM-2791 Date July 15, 1994 SUBJECT: THE ATTACHED DOCUMENT IS FOR YOUR COMPLIANCE WITH THE REQUIREMENTS INDICATED WITH CHECK MARKS. 1. 0 Please sign enclosed copy(ies) on referenced lease(s) before a Notary Public and return in order to complete the Lease(s). 2. 1--71 Enclosed referenced assignment(s) transferred by and approved by Commissioner on 3. / /Aleignment(a) will not be accepted due to: 0 Erasures in description, Strikeover(s) in description, Executed on improper forms, 1::71ncomplete description, /7 Acknowledgement is incomplete. Please re-issue a new assignment. 4; /::7 Please furnish this office with $500.00 Single Damage Bond or $2,500.00 Blanket Damage Bond, as required by Statute so Lease can be approved. 5. 1-7 Lands applied for are under Purchase Contract. You must obtain written • consent from . Your application will be held in abeyance awaiting this consent. 6. C7 Approved copy(ies) of your (is/are) enclosed for your files. 7. j/ Other: Be advised that your renewal package was received incomplete. The enclosed "Appraisement" form needs to be completed, please follow the instructions (#5) highlighted on the next page, and return to this office as soon as possible. If you have any questions regarding.this matter, please contact me at Darlene Meestas, Grazing Sectic C-76 (February 15, 1984) SDNY_GNL00173757 EFTA 00195412 EFTA01305657 TFACP NO' CM-7791 MISCELLANEOUS INSTRUMENT PAGE UNDER COLLATERAL ASSICRIENT TO: DATE FILED- NO. UNDER COLLATERAL ASSIGNttarr It: DATE FILED NO. DATE RELEASED: DATE RELEASED: UNDER COLLATERAL ASSIGNMENT UNDER COLLATERAL ASSIGNMENT TO: TO: DATE FILED- NO. DATE FILED: NO. DATE RELEASED: DATE RFTMISED- KLSCELLANEOUS ENSTRUKENT: Power-of-Attorucy, John J. Kelly; Affidnvit;Jeffrey E. FILE NO: #8793 Epstein, Trustee for Zorro Trust. MISCELLANEOUS INSTRUMENT: FELE NO: TELSCEIJANFJOUS INSINEDILIKT: FILE NO: MISCELLANEOUS INSTRUMENT: FILE NO: COMMENTS: SDNY_GM_00173758 EFIA_OO195413 EFTA01305658 (Page 59 of ,I, AA" emu Dorv\__c_c a o-- fr srn4AA ft-e_ar›c__ ca-Lx_ ' o.J 11/ukfa)3 EFTA01305659 {Page 50 of 53) r ; D SIVS6100- VJ-43 09LELLOCIW-ANCIS 27 p i 0 0 - h 16 e' I •bt c I • • EFTA01305660 (Page 51 of 53) • STATE OF NEW MEXICO COMMISSIONER OF PUBLIC LANDS Ray Powell, M.S., D.V.M. GM 2791 ZORRO TRUST CO JEFFREY E. EWEN 457 MADISON AVE rev yOltit,t0IY 10022 • . c.) • a (. April Int Dear Lessee(s): Please be aware that the above referenced Agricultural Lease is due to expire on September 30, 1999. The renewal contracts will be sent to you on July I, 1999 for your execution. Therefore, now is the time to notify our office of any address changes or 'other corrections needed prior to the renewal of your Agricultural Lease. The name(s) listed above are the name(s) as they arc given on your contract. Each individual listed above will be required to sign the contact unless a proper Power-of-Attorney is filed with this office. Please take a few minutes to review your Agricultural Lease with regards to the lease ownership, address, or description of acreage. Any information you can provide us with now relative to any changes or corrections needed to your lease will assist us in preparing your renewal contract. If any changes of ownership are needed; it is recommended that ou contact Jenny Valdez as soon as possible at the address below or by calling in order to receive the necessary forms for the lease transaction. Please be aware that processing any lease transfer between the dates of June 1, 1999 and September 1, 1999 may jeopardize the opportunity to match any rental offer submitted by a competing applicant. If you have any questions re ardin your lease renewal or need further assistance, please contact Fernando Roybal at Sincerely, P4(4t 40 4 1LL Dennis Garcia, Director Surface Resources Division N.M. State Land Office, P. O. Box 1148, Santa Fe, NM 87504-1148 SDNY_GPA 00173761 EFTA_00 195416 EFTA01305661 (Page 52 of 53) RECEIPT • t OFFICE OF THE COMMISSIONER OF MAIDS P.O. BOX 1148 • SANTA FE, NEW MEXICO • li7504 r" -FF:AIEPt; Acc°7. V40-1.04. 1.174/5461006417AWAr17404 ,1ACPUi ca•.:t,;.. ..CV CONTRACT NO. • - ' - GM2791 GRAZING & AGRIi1i0d9110121193 BC 81541 472122I COMMENTS: PAID BY 2 IC) 4 STATEMENT OF RECEIPT BATCH NO. S DATE PROCESSED 11/08/93 ZORRO TRUST TO SE FILED IN LESSEES FOLDER THANK YOU COMMISSIONER OF PUBLIC LANDS EFTA01305662 (Page 53 of 53) OFMCEOFTHECOMMMSKINEROFPUBLICIAIS ill RECEIPT ' P.O. BOX 1148 • SANTA FE, NEW MEXICO • 87504 LEASE OR CONTFtACT NO. • ACCOUNT] , • • • •• DATE • NO. - • • ..i,F:SOURCE , ji.,,. • pp AID p.JE CIAT1-_t•7%;PENALTY1 •INTEREit AMOUNT . BALANCE .e pAjo GM2.7 91 GRAZING & AGRI Ot149 1d019 ----10 IQ cl 916131 I STATEMENT OF RECEIPT COMMENTS: BATCH NO. J DATE PROCESSED 07/14/94 PAID BY 8111,56 I 00-V.L.43 ZORRO TRUST THANK YOU TO BE FILED IN LESSEES FOLDER COMMISSIONER OF PUBLIC LANDS EFTA01305663 r SDNYGP,400173764 EFTA_00195419 EFTA01305664 0 MISCELLANEOUS INSTRUMENTS (PAST POWER-OF-ATTORNEY X2) 0 0 SDNY_GM_00173765 EFTA_00195420 EFTA01305665 1-/kt LIMITED POWER OF AMINES 903409 Done at New York City, New York, on the 34 day of March, 1993. I, Jeffrey E. Epstein, trustee of the Trust, a New York trust, hereby appoint John J. Kelly as attorney-in-fact and agent to act on my behalf, to do and perform all acts and things necessary to be done. including to execute and deliver on my behalf all statements. memoranda, instruments of conveyance, and other documents of every sort that, in his judgment, are or may be required to be executed by me as trustee, with the same force and effect as I might or could do if personally present, with full power of substitution and revocation, pursuant to that certain one Purchase Agreement da!ed February 25, 1993, between Zorro Trust, as purchaser, and King Brothers Ranch, a New Mexico general partnership, King Land & Cattle Company. a New Mexico general partnership, and Pine Canyon Ranch, Inc., a New Mexico corporation, as seller, it connection with the closing of the purchase by Zorro Trust of certain re& property and appurtenant enures and personal property located in Santa Fe County, Nev. Mexico, on or about March 4-8, 1993. This Power of Attorney is limited to matters pertaining to the transactior. described herein and shall terminate 30 days following the execution, delivery, and iiiirg cf record of the deeds from seller to purchaser in the real property records of rents Fs County. New MelthiSNIY OF SANTA FE STATE OF NEW MEXICO I SS 1010 I 71 hereby certify that is intim mu trod for teegOl on th IS "r day o' Week r ati:4 2 . duty recorded in book el the records ol Sonia Fe County'. Witness my Nand and Seal ol Jeffrey E.1,Ep rici zu s itim,v ostee of soma Armilo a New Yo County Clerk Sama.F. County. N.M. Laic rateloi-i STATE OF NEW YORK COUNTY OF ;mos vs/ The foregoing instrument was acknowledged before me this —4 day of Jeffrey E. Epstein, trustee of Zorro Trust, a New York trust. My commission expires: Emedeletameer.pee . - • Notary Public WARY L Mat . Edell PALI. Stii ea Sri Yak ctsitri in lercr. S* r:/_9. Ma. Z4=924 A cahrtv g ra yak 17, Le.. CERTIFIED A TRUEANDCORRECT COPY R CORDED ONS -. 19 IN BOOK ...aa- PAGE _Y-E.r..-. JONA G. ARMLJO NT A FE COUNTY CLERK sidSA • I : : i • .0 ig ri • i ::: • — .-.. :, • , • i al j, r‘ % • Le,,,n4.%) -4:'..... ....e. 9 , N . •.;.- tr .4:‘` ..... SONY_GM_00173766 EFTA 00195421 EFTA01305666 -7V . 79.3 AFFIDAVIT STATE OF /64 /flax, ) ) ss. COUNTY OF ethatizab ) I, Jeffrey E. Epstein, state as follows: 1. I am the Trustee for the Zorro Trust, a New York Trust, whose address is 457 Madison Avenue, New York, NY 10022. 2. I have executed a Limited Power of Attorney appointing John J. Kelly as attorney-in-fact and agent to act on my behalf in connection with the closing of the purchase by Zorro Trust of certain real property and appurtenant fixtures and personal property, including all state and federal leases, of said property located in Santa Fe County, New Mexico. 3. By this Affidavit, I further authorize John J. Kelly to execute any documents necessary in connection with State Agricultural Lease No. GM2791. FURTHER AFFIANT SAYETH NOT. Jeffrey Bk. Epstein, T tee Zorro Tru a N rk Trust The foregoing Affidavit was acknowledged before me this AMI day of March, 1993 by Jeffrey E. Epstein, Trustee of Zorro Trust, a New York Trust. My Commission Expires: APir-otha OO24 D3/16/93410:41 $10.05+ 10 47 nv2- (a l/ tikad-c-1- Notary Pu c SDNY_GM_00173767 EF-EA_00195422 EFTA01305667 tt 1793 APPIDAVIT STATE OF New Mek,c0 COUNTY OF fib-nail/it, ) ss. I, Jeffrey E. Epstein, state as follows: 1. I am the Trustee for the Zorro Trust, a New York Trust, whose address is 457 Madison Avenue, New York, NY 10022. 2. I have executed a Limited Power of Attorney appointing John J. Kelly as attorney-in-fact and agent to act on my behalf in connection with the closing of the purchase by Zorro Trust of certain real property and appurtenant fixtures and personal property, including all state and federal leases, of said property located in Santa Fe County, New Mexico. 3. By this Affidavit, I further authorize John J. Kelly to execute any documents necessary in connection with State Agricultural Lease No. GM2791. FURTHER AFFIANT SAYEPH NOT. Jeffrey Zorro Trustee a New York Trust The foregoing Affidavit was acknowledged before me this / f. day of March, 1993 by Jeffrey E. Epstein, Trustee of Zorro Trust, a New York Trust. My Commission Expires: SorierniuA /944/ SDNY_GM_00173768 EFTA_00 195423 EFTA01305668 O O 6-g-.21,2A .2ort LIMITED POWER OF ATTORNEY --tk /4373 I, Jeffrey Epstein, Trustee of Zorro Trust, being of sound mind and after due deliberation, hereby grant to Brice Gordon, this Limited Power of Attorney to act in my stead and to take any and all necessary actions of whatsoever nature to renew the New Mexico State Land Office, Lease No. GR 2088, issued to Zorro Trust. This instrument shall expire and have no force and effect at midnight on December 31, 2011, unless otherwise revoked by me prior to that ST. THOMAS/ST. JOHN ) ss. USVI DISTRICT Jeffrey Epstein, Tru Dated: rust The foregoing instrument was acknowledged before me this 2athiday of July, 2011, by Jeffrey Epstein, as Trustee of Zorro Trust. My commission expires: hsitARY 6 / 2-04 4 NP — COM— to eLIC Ns net Aflame Leslie Wallace My Commission Est): January 6, 2014 NP Commission I NP-007-10 St.ThornosiSt. John, USVI District FILENAME 5p MERGEFORMAT W 153631000'0300MS POA GR2088 doe FEES 4 iSiSLO 001-00001 37 0 24-4116.11 09:49 10.041 SDNY_GM_00 173769 EFTA_00 1954241 EFTA01305669