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12. In its use of the leased Pastures, Lessee will observe and comply with all applicable laws, ordinances, permits, and governmental regulations, including but not limited to any federal statutes and regulations concerning endangered species, which species' habitat is part of the leased Pastures. 13. Notwithstanding any provision contained herein to the contrary, Lessor expressly reserves unto itself, its successors and assigns, the following rights, benefits, interests and privileges in the leased Pastures so long as they do not unreasonably interfere with Lessee's use of the Pastures: A. The right to burn a portion of the leased Pastures from time to time consistent with the permits Lessor has from federal and state regulatory agencies; B. The right to use and enjoy, and to allow others to use and enjoy, the leased Pastures, including the trails thereon, for all other purposes and in all ways and manners; C. The right to exercise all other rights, benefits, privileges and interests in the leased Pastures which Lessor, as the owner of the fee simple interest in said Pastures, is entitled; D. The right to go upon the leased Pastures at any time during the term of this Lease. Lessee will permit the Lessor and the Lessor's agents, successors and assigns to enter the Pastures for the purposes of inspection, compliance with the terms of this Lease, exercise of all rights as owner and all other lawful purposes, including the use of the Pastures for public events. Lessor will make every effort to contact the Lessee in advance of entry. E. The right to grant rights-of--way of every kind and character for roads, trails, ditches, pipe lines and wire lines, in and across the Pastures herein leased at any time during the term of this Lease, with right of entry to the grantees of such right, subject to the obligation that the grantee shall compensate Lessee for any damages reasonably suffered by such entry. 14. Lessor reserves and retains for itself and its successors or assigns all waters and water rights appurtenant to the Pastures and the right to all water subject to appropriation and use thereon, including the right to develop, conserve, store and convey such water, and to remove, export, or deliver such water from the Pastures to locations elsewhere upon the property owned by the City in Happy Valley, except such water as Lessee deems necessary and beneficial for watering of livestock on the Pastures, consistent with resource conservation objectives. Lessee's use of water is with permission of Lessor, and shall not develop into a prescriptive right. 15. This Lease between Lessor and Lessee does not create any relationship of co-partner, joint venture, principal and agent or employer and employee. The relationship is that of independent contractors. Lessee will carry on its operations on the leased Pastures for itself and will be responsible for all of its acts and for the acts of its employees, agents and invitees. In its use of the Pastures, Lessee will exercise due care. Lessee shall indemnify, defend, and hold Page 4 of 6