REVOCABLE LICENSE AND INDEMNITY AGREEMENT THIS REVOCABLE LICENSE AND INDEMNITY AGREEMENT ("Agreement") is made and entered into this ____ day of May, 2009 (the “Effective Date”), by and between _____________________________ ("Licensee") and CHERRY VALLEY FARMS, LLC, a Washington limited liability company ("Owner"). RECITALS A. Licensee owns approximately nine (9) horses (the "Horses") that he desires to and has requested that he be permitted to keep and graze at Cherry Valley Dairy. B. Owner owns Cherry Valley Dairy near Duvall, Washington (the "Dairy"), currently has capacity at the Dairy for the Horses and is agreeable to allowing the Horses to be kept at the Dairy on the terms set forth in this Agreement. C. Licensee and Owner desire to enter into this Agreement to make clear the terms on which Licensee may keep the Horses at the Dairy and allow them to use portions of the Dairy for grazing purposes. AGREEMENT NOW, THEREFORE, Licensee and Owner agree as follows: 1. Grant of Revocable License. Owner hereby grants to Licensee a non-exclusive, revocable license to use the Dairy (or such portions thereof as are designated for use by Licensee) for the purpose of keeping the Horses at the Dairy and using the Dairy as a location for the grazing of the Horses. 2. Responsibility for Care of Horses. Licensee shall be solely responsible for the care and feeding of the Horses, for keeping the Horses confined to the Dairy real property, and for maintenance of the Dairy, its improvements and equipment, all to the extent used for keeping the Horses. 3. Exculpation of Owner; Assumption of Risk and Indemnity. Owner shall not be liable to Licensee or to any of Licensee's employees, agents (including hourly workers), servants, guests, invitees or visitors, or to any other person whomsoever, for any injury to person or damage to property on or about the Dairy, or for any injury to person alleged to result from the use of the Dairy, the keeping of the Horses at the Dairy, and/or caused in part or whole by the negligence or misconduct of Licensee or his employees, agents, servants, guests, invitees or visitors, or caused by the buildings and improvements located at the Dairy becoming out of repair, or caused by leakage of gas, oil, water or steam or by electricity emanating from any of the buildings at the Dairy, or due to any cause whatsoever. Licensee hereby assumes any and all risk, of whatever nature, associated with use of the Dairy, the improvements and equipment located thereon. Licensee hereby covenants and agrees that he will at all times indemnify and hold safe and harmless the property, Owner, Owner's employees, agents, servants, guests, invitees, and visitors from any loss, liability, claims, suits, costs, expenses, including without limitation attorneys' fees and damages, both real and alleged, arising out of any such damage or injury or the use of the Dairy by Licensee. Owner agrees to promptly -1m31455-1196213.doc notify Licensee of any such claims upon receipt of notice thereof. Licensee and his insurer shall have the right to manage and settle such claims without obtaining Owner’s consent. 3. Insurance Coverage. (a) Commercial General Liability Insurance. Licensee will obtain commercial general liability insurance in a minimum amount of $1,000,000 with coverage for events occurring on the Dairy. (b) General Insurance Requirements. All coverage required by this Section 3 shall: (1) name Owner as an additional insured on the commercial general liability policy; (2) be issued by an insurance company rated A-:VII or better in "Best's Insurance Guide" and authorized to do business in the State of Washington; (3) be primary and provide that any insurance coverage maintained by Owner shall be considered excess and non-contributing to the policies required by this Section 3; and (4) provide Owner with thirty (30) days’ notice of cancellation or change in terms (ten (10) days for nonpayment of premium). The policies of insurance or certificates thereof shall be delivered to Owner by Licensee prior to entering onto the Dairy. 4. Compliance with Laws. Licensee agrees to conduct all activities at the Dairy and with respect to the Horses in compliance with applicable local, state and federal environmental, health and safety laws and all other laws, rules, regulations, ordinances, permits, licenses and authorizations required or otherwise necessary in connection with keeping the Horses at the Dairy. 5. Non-Waiver. This Agreement does not constitute a waiver of any claims Owner may have for any damages or injuries occasioned to the Dairy or to Owner or its representatives by activities undertaken by Licensee or his employees or representatives under this Agreement. 6. Term and Revocable Nature of License. This Agreement is for the period commencing upon the Effective Date and ending one (1) month following the Effective Date, unless otherwise terminated as provided herein. Thereafter, this Agreement may be renewed for additional terms of one (1) month each upon the agreement of both parties. The license hereby granted by Owner to Licensee is revocable by Owner in the sole discretion of Owner, for any reason or for no reason, either before the expiration of the first one (1) month period or at any time thereafter. In such event, Owner shall notify Licensee in writing of the revocation of the license with respect to the use of the Dairy, and following receipt of such notice, Licensee shall promptly arrange for the removal of the Horses from the Dairy, and thereafter shall complete the removal of the Horses, and any personal property belonging to Licensee and associated with the Horses, from the Dairy within two (2) days following receipt of such notice. Following receipt of such notice, Licensee shall have no further rights hereunder. Licensee shall, however, remain obligated for any and all loss, damage, cost or expense incurred by Owner prior to the date of such revocation and through the date on which Licensee has removed all Horses and any personal property associated with the Horses, and shall make such repairs to the Dairy, the improvements located thereon and any equipment used by Licensee, and to which Licensee caused any damage through its use of the Dairy and the license hereby granted, to put them into the same or better condition and repair as they were in upon Licensee's entry onto the Dairy. -2m31455-1196213.doc 7. Entire Agreement. This Agreement constitutes the entire agreement between Licensee and Owner with respect to the subject matter hereof and there have been no other representations made except as expressly contained herein. This Agreement may only be modified in a writing executed by both parties. 8. Notices. Any notices required or permitted to be given under the terms of this Agreement, or by law, shall be in writing and may be given by personal delivery, electronic mail, facsimile or first class mail, directed to the Parties at the following addresses, or such other address as a party may designate in writing prior to the time of the giving of such notice. To Owner: To Licensee: Cherry Valley Farms, LLC 16347 Inglewood Pl. NE Kenmore, WA 98028 Facsimile: (425) 402-6929 Email: ggarth5@comcast.net Facsimile: Email: With a copy to: Judy Courshon Wellspring Group PS, CPAs 10900 NE 4th St., Suite 920 Bellevue, WA 98004 Facsimile: (425) 462-8218 Email: judy@wellspringgroup.net 9. Facsimile: Email: Governing Law; Attorneys' Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If legal action is instituted by reason of any default or breach on the part of either party in the performance of any of the provisions of this Agreement, the substantially prevailing party shall be entitled to recover all reasonable costs and attorneys' fees in connection therewith. It is agreed that the venue of any legal action brought under the terms of this Agreement shall be in the King County Superior Court. CHERRY VALLEY FARMS, LLC, a Washington limited liability company By: Gretchen Garth, Sole Member [Print Name: -3m31455-1196213.doc _____]