THIS LEASE is made to be effective the 1st day of January, 2018
between THOUSAND PEAKS RANCH ASSOCIATION, a Colorado non-profit corporation, of Post Office Box 817,
Fairplay, CO 80440 (herein "Lessor") and RAFAEL ESPARZA, Post Office Box 699, Fairplay, Colorado 80440 (herein
"Lessee") and shall supersede any prior leases between the parties.
In consideration of the payment of rent herein reserved and the keeping and
performance of the covenants and agreements by the Lessee as set forth herein, the
Lessor hereby non-exclusively leases unto the Lessee for cattle grazing purposes only, the following described
property situated in the County of Park, State of Colorado:
The subdivision known as "Thousand Peaks Ranch" according to the plat filed in the records of the Clerk and
Recorder of Park County, Colorado, excluding those parcels that are fenced (herein "Ranch").

1. Term. The term shall be 3 years, January 1, 2018 through December 31, 2020, unless earlier terminated as set
forth herein.  Leasee shall only be allowed to graze the leased land for a total of five (5) months each year, between
May 1st and November 1st of each year.   Grazing during any other time period shall only be by mutual agreement
between the parties and shall be strictly limited to the terms set forth in a written addendum between the parties.
2. Rent.  Rental amount shall be six dollars ($6.00) per head per month, a head being defined as one yearling.  The
leasee shall be allowed 500 yearlings for an annual total lease amount of FIFTEEN THOUSAND DOLLARS
($15,000.00).   One payment of SEVEN THOUSAND FIVE HUNDRED DOLLARS ($7,500.00) on May 15th of each year
and a second payment of SEVEN THOUSAND FIVE HUNDRED DOLLARS ($7,500.00) upon the sale of the yearlings
in the fall of each year,  but not later than December 31st of each year.   Payments shall be hand-delivered or mailed
to: Post Office Box 817, Fairplay, CO 80440. Should Lessee fail to pay as stated above, Lessee shall be in breach of
this Lease and shall immediately remove all cattle from the Ranch and this written agreement, and the penalties set
forth herein, shall be considered written notice of eviction and/or termination of the lease.  All remedies set forth in this
paragraph shall not be Lessor's exclusive remedies. Lessor shall have all remedies set forth in this Lease as well as
any remedies available under law.
3.  Livestock Practices. In caring for livestock, Lessee will follow health and sanitation measures and guard against
disease. Lessee hereby represents and shall ensure that all cattle are healthy and disease free.  Should Lessee be
notified by Lessor of a potential health or disease issue, Lessee shall meet with Lessor to discuss and investigate the
issue. If medical evidence is presented to Lessee which establishes a health or disease issue, Lessee shall take all
medical steps necessary to address the medical issue. Lessee shall be solely responsible for feeding, watering
veterinary services, and transportation of cattle. Lessee shall remove any dead cattle after being notified by a Board
member of Lessor. Lessee shall periodically (at least once per week) physically check on the cattle. Lessee shall
rotate grazing areas in order to avoid overgrazing and destruction of vegetation.  Lessee shall endeavor to have the
cattle graze the Ranch uniformly.   Lessee will notify Lessor as to the location of the cattle each time the cattle are
5. Dry Conditions/Non-suitable Grazing Conditions.  Should the Lessor determine, it is sole discretion, determine that
a dry year exists, or the conditions on the Ranch are not suitable for grazing, Lessor may suspend this Lease until the
dry conditions no longer exist. Alternatively, at Lessor's discretion, Lessor and Lessee may mutually agree to a
temporary reduction in the number of head allowed on the Ranch on a monthly basis, as well as a temporary
increase.  Any temporary increases or decreases shall be put in writing and signed by both lessor and lessee.  Any
suspension of grazing, or increase or decrease in the number of lessee’s cattle shall increase or reduce the amount
due by lessee under this agreement in accordance with the per head/per month rate.
6. Lessee Obligation. The lessee, in consideration of leasing said Property, hereby covenants and agrees:
a. To pay the rent for said premises as herein provided;
b. To use said premises for grazing and for no other purpose and will not use
or permit the same to be used for any unlawful purpose whatsoever, all
other purposes are being reserved by Lessor;
c. To not sublet said premises or any part thereof or assign this Lease without
the prior written consent of the Lessor;
d. To keep said Property, fences, gates, and appurtenances in as good
condition and repair as the same now are or may be at any time during said
term and to not remove or allow any other person to remove from said
premises any of the fences or appurtenances thereon and at the expiration
of this Lease to surrender and deliver up said premises in like good order
and condition, except damage caused by fire, inevitable accident, act of
God, and ordinary wear and tear.
e. To not commit or cause to be committed any waste in, to or upon said
premises or any part thereof;
f. To not cut or damage to be cut or damaged any timber or standing trees
that may be upon said premises, other than normal damage caused by
g. For transportation of cattle and access, Lessee shall solely use the existing
roads as much as possible to avoid damage to the property;
7. Indemnification. To the fullest extent permitted by applicable law, Lessee shall hold harmless, indemnify, and defend
Lessor from and against all expenses, liabilities, and claims of every kind and character, including reasonable
attorneys fees and court costs, incurred, raised, or brought by or on behalf of any person or entity arising out of
either: (1) a failure by Lessee to perform any of the terms and conditions of this Lease, (2) any injury or damage
happening on or about the Premises, except for injury or damage caused solely by the negligence of Lessor,
(3) Lessee's failure to comply with any law of any governmental authority, or (4) any mechanic's lien pertaining to
work, services, or materials contracted for by Lessee or security interest filed against the Premises or equipment,
materials, or alterations of buildings or improvements thereon which pertains to any indebtedness incurred by Lessee.
Lessee agrees and warrants that no security interest will or may be granted with respect to any fixture physically
attached to the Premises at any time during the term hereof. Specifically, Lessee shall indemnify Lessor from any and
all expenses associated with feeding cattle, veterinarian services, any injuries received by Lessee's employees or
agents, and any injuries  of death of said cattle.
8. Wells, Windmills, Fences, Gates, Cattle Guards, and Stock Tanks. Lessee shall maintain all working: wells, wind
generators, fences, gates, cattle guards (excluding the cattle guard located on County Road 24), and water tanks at
Lessee's cost.
9. Reservations by Lessor.  Lessor reserves all other rights and uses to the leased property except for those
purposes specified in this Lease. Lessee shall do nothing to interfere in any way with Lessor's use of the property.
10. Notice. Lessor shall provide Lessee with an updated list of its Board members each July after its annual meeting.
All communications must be made between the Lessee and the Board members of lessor as so directed by the
undersigned President of the Board.
11. Default. If any part of the rent provided to be paid herein is not paid when due, or if any default is made in any of
the agreements by the Lessee contained herein, it shall be lawful for the Lessor to declare the term ended, and to
enter into the premises, with or without legal process, and to remove the Lessee and Lessee's cattle occupying the
premises, and to repossess the premises free and clear of any rights of the Lessee. If, at any time, this Lease is
terminated under this paragraph, or at the end of the term stated in the Paragraph 1, the Lessee agrees to peacefully
surrender the premises to the Lessor immediately upon termination, and if the Lessee remains in possession of the
premises, the Lessee shall be deemed guilty of forcible entry and detainer of the premises and shall be subject to
eviction and removal. If Lessee removes all cattle from the premises, Lessor may, on giving 3 days' written notice to
Lessee, declare this Lease forfeited and terminated. Lessee shall be liable to Lessor for all damages suffered by
reason of such foreiture or for any other default or breach of any provisions of this Lease.
12. Severablility. All agreements and covenants contained herein are severable, and in the event any of them shall be
held to be invalid by any competent court, this contract shall be interpreted as though such invalid agreements or
covenants are not contained herein.
13. Binding. This Lease shall be binding on the parties, their personal representatives, successors, and assigns, but
may only be assigned as set forth above.
14. Counterparts. This lease may be executed in counterparts in which case each such counterpart shall be construed
as an original. Facsimile signatures shall be equally binding as originals.
IN WITNESS WHEREOF, the parties set their hands to be effective the day and year first above written.

By:   Dennis A. Kist
Its:    President


By:  Rafael Esparza