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1         Q.    And the taking of an easement, that would be a

2    compensable taking, wouldn't it?

3         A.    Well, in the abstract, yes.

4               MR. ESSNER:    Okay.   Thank you.

5               THE COURT:    Any redirect?

6               MR. BUESCHER:    No, Your Honor.

7               THE COURT:    Thank you very much.    You may step

8    down.

9               THE WITNESS:    Thanks, Your Honor.

10              THE COURT:    May I see the bailiff, please.

11   Thank you.

12                 (Sotto Voce Discussion Was Had.)

13              MR. COTCHETT:    Plaintiff will now call

14   Mr. Khosla.

15              THE COURT:    Hold on just a second.

16              Alright.   You may call the next witness.

17              MR. COTCHETT:    Mr. Khosla, please, under 776,

18   Your Honor.

19              THE COURT:    Yes.

20              THE CLERK:    Please stand and raise your right

21   hand.

22                             Testimony of,

23                             VINOD KHOSLA,

24   called as a witness on behalf of the Plaintiff, and having

25           been first duly sworn, testified as follows:

26              THE CLERK:    Thank you.   Please be seated.
                                                                224


1                Can you please state and spell your first and

2    last name for the record.

3                THE WITNESS:    Vinod Khosla, V-i-n-o-d,

4    K-h-o-s-l-a.

5                THE COURT:    Thank you.   Go ahead.

6                MR. COTCHETT:    Thank you very much, Your Honor.

7          CROSS-EXAMINATION BY MR. COTCHETT (UNDER 776)

8    BY MR. COTCHETT:

9         Q.     Mr. Khosla, thank you very much for coming this

10   afternoon and being here right on time.      Very quickly, I

11   will try not to be long, because I know you're a very, very

12   busy man.

13               Tell me, just quickly, by way of background,

14   you're one of the founders of Sun Microsystems?

15        A.     I am.

16        Q.     Yes.    And then in about 2004, just to move

17   quickly, you founded Khosla Ventures; right?

18        A.     Yes.

19        Q.     Which is an investment firm, hedge fund, whatever

20   you want to call it; right?

21        A.     Yes.

22        Q.     Okay.    Now, at some point in time, you became

23   interested in Martins Beach.      I'm going to call it

24   Martins Beach, and you know what I'm talking about; right?

25        A.     Yes.

26        Q.     I'm holding here in my hand a Vanity Fair.
                                                              225


1    You're familiar with this Vanity Fair, aren't you?

2         A.   I'm familiar with the magazine.

3         Q.   Well, your picture is in this one?

4              MR. ESSNER:    Objection.   Relevance.

5              MR. COTCHETT:    Oh, I'm getting there.

6              THE COURT:    Objection is overruled.

7         Q.   (By Mr. Cotchett) Your picture, if I -- if you

8    can see it -- I'm sure you've seen it.     You were referred

9    to as the Echo Warriors of California, were you

10   not -- excuse me.    "The Golden State Echo Warriors,"

11   right?

12             MR. ESSNER:    Objection.   Relevance.

13             THE COURT:    Objection is overruled.

14             THE WITNESS:    I don't specifically remember the

15   magazine article.

16             MR. COTCHETT:    May I approach the witness,

17   Your Honor?

18             THE COURT:    Yes.

19             MR. COTCHETT:    Thank you.

20        Q.   (By Mr. Cotchett) It's a very handsome picture

21   of several people.

22             Do you remember that article?

23        A.   Obviously, my picture is in there.

24        Q.   Taken right out by the Golden Gate Bridge?

25        A.   I see that.

26        Q.   And do you recognize any of the people that you
                                                                 226


1    are standing with?

2                MR. ESSNER:    Objection.   Relevance.

3                THE COURT:    Alright.   It's a court trial, so I'll

4    give some latitude.      We'll see where we're going, but we'll

5    have a short leash.

6           Q.   (By Mr. Cotchett) Do you recognize any of the

7    people?

8           A.   I recognize two of the gentlemen.

9           Q.   Well, what about Mr. Massara right here?     His

10   hair is a little shorter.      He was a surfer at the time.

11               Do you recognize him in the picture?

12          A.   I can't say I specifically recollect meeting him,

13   but, like I said, I recognize two of the people in the

14   picture.

15          Q.   Okay.   Well, out in the hallway is a

16   Rob Caughlan, right at the top there.

17               Rob Caughlan, do you recognize him?      He's sitting

18   out in the hall.

19          A.   Specifically, here, no, I don't.

20          Q.   Okay.   Well, let's see if we can get to it this

21   way:   When your picture was taken in 2007, you were very

22   interested in buying Martins Beach; right?

23               MR. ESSNER:    Objection.   Lacks foundation.

24               MR. COTCHETT:    Is that a fact?

25               THE COURT:    The objection is overruled.

26               THE WITNESS:    I don't have any recollection of
                                                                227


1    2007.

2         Q.   (By Mr. Cotchett) Well, so we just establish a

3    timeline here, Mr. Baugher, your manager, said you were

4    looking at the property from 2004 on?

5              MR. ESSNER:    Objection.   That misstates the

6    testimony and is not before the Court and lacks foundation.

7              THE COURT:    Objection is sustained.

8         Q.   (By Mr. Cotchett) When did you first start

9    looking at the property at Martins Beach?

10        A.   I don't specifically remember a date.

11        Q.   Do you remember when you closed it?

12        A.   No, I don't.

13        Q.   Well, if I told you it was in 2008, would that

14   refresh your recollection?

15        A.   I would have no reason to doubt your assertion.

16        Q.   Thank you.    Because I'm an officer of the Court.

17             Now, if I represented to you that your manager,

18   sitting right there who you recognize, Mr. Baugher; right?

19        A.   Yes.

20        Q.   He testified that you started looking at the

21   property, he did, back in 2004, would that be accurate?

22             MR. ESSNER:    Objection.   Lacks foundation.

23             THE COURT:    He hasn't testified in this

24   proceeding.

25             Objection is sustained.

26        Q.   (By Mr. Cotchett) Did you start looking at the
                                                                 228


1    property back in 2004?

2           A.   I have no specific recollection sitting here on

3    when I started looking at the property, but I would have no

4    reason to doubt Mr. Baugher's testimony.

5           Q.   Thank you very much.

6                Now, do you recall when your picture was taken

7    for Vanity Fair, and you're all standing there, do you

8    recall having a conversation with Mr. Massara here about

9    Martins Beach?

10          A.   No, I do not.   I didn't even recognize him, so

11   it's hard for me to recollect a conversation I had with

12   him.

13          Q.   So let me say for the record, it would be hard

14   because in this picture he has long hair and now he's seen

15   fit to cut it.

16               How about Mr. Caughlan, who is out in the

17   hallway, Rob Caughlan, do you recall having a conversation

18   with him that day about Martins Beach?

19          A.   No.   I don't specifically recall having that

20   conversation.

21          Q.   With either one of them?

22          A.   With either one.

23          Q.   Okay.   Let me see if I can move this right along

24   here.

25               Now, in 2008, I'll stay with that time period,

26   and I'll represent to you that's when you bought the
                                                               229


1    property, you formed two limited partnerships,

2    Martins Beach 1 and Martins Beach 2.

3              Is that how I represent them, counsel,

4    partnerships, or what are we calling them?

5              MR. ESSNER:    They're limited liability

6    corporations.

7         Q.   (By Mr. Cotchett) Limited liability

8    corporations.   I'm just a country trial lawyer, so I'm not

9    familiar with all of these phrases.

10             But let me ask you this, sir:    In 2008, you

11   formed two limited liability corporations, as your counsel

12   just pointed out; right?

13        A.   If you say so and if the records say so.    I have

14   no specific recollection of whether there was one or two or

15   more.

16        Q.   Okay.   Do you know why there was two?

17             MR. ESSNER:    Objection.   Lacks foundation.

18        Q.   (By Mr. Cotchett) Do you know why there were two

19   corporations?

20             THE COURT:    Objection is overruled.   Let me rule

21   here.

22             THE WITNESS:    No, I do not.

23        Q.   (By Mr. Cotchett) If I told you it's because

24   there are two pieces of property out there, would that

25   refresh your recollection?

26        A.   No, it would not.
                                                                   230


1         Q.   Okay.    If I showed you the purchase agreement --

2    and maybe we can save a lot of time here with your counsel.

3              To save time, I'll give you one, because you have

4    all of those binders up there.    I'm not going to ask you to

5    pull down the binders.    I can save you a lot of time

6    because I made copies this morning.    If I can just hand

7    this to you, we'll get right to it.    I'll give counsel a

8    copy so you don't have to go through your binders.

9              THE CLERK:    Counsel, what number is this?

10             MR. COTCHETT:    This is Plaintiff's Exhibit 5.

11   (Plaintiff's Exhibit No. 5 was Marked For Identification.)

12        Q.   (By Mr. Cotchett) Mr. Khosla, I'll save you

13   a lot of time, if you would just go to where I tagged it.

14             And tell the Court, is that your signature on the

15   operating agreement for Martins Beach 1.       It may be 2.    I

16   don't know, Martins Beach 1 and Martins Beach 2.

17             Is that your signature?

18        A.   On Page 10, yes, it is my signature.

19        Q.   And do you recognize your wife's signature?

20        A.   Yes, I do.

21        Q.   And the date here was approximately when?      Not

22   "approximately."

23             When was it, do you know?

24             MR. ESSNER:    Objection.   Vague.

25        Q.   (By Mr. Cotchett) When did you sign it?

26             THE COURT:    The objection is overruled.
                                                                 231


1                THE WITNESS:    I don't see a date on this page, so

2    I would have to look around.

3           Q.   (By Mr. Cotchett) Well, let me see if I can save

4    time, counsel.    Was it -- so we can move this thing real

5    quick and get Mr. Khosla home, was it approximately

6    May 5th or something?

7                THE WITNESS:    If I might, Page 1 says, "May 5th,

8    2008."

9                THE COURT:    Is there a stipulation?

10               MR. ESSNER:    I think he just testified.

11               THE COURT:    Alright.   Go ahead.

12          Q.   (By Mr. Cotchett) May 5th you signed this;

13   right?

14               And where did you sign this, in your attorney's

15   office?

16          A.   I have no recollection of where I signed it.

17          Q.   What was your purpose in forming Martins Beach 1,

18   LLC?

19          A.   To be honest, I don't recollect.     I normally act

20   on the advice of counsel.

21          Q.   I see.   So let me see if I got this straight.

22               You paid 37 and a half million dollars for the

23   beach; right?

24               MR. ESSNER:    Objection.   Lacks foundation.

25               THE COURT:    The objection is overruled.

26               THE WITNESS:    I don't remember specifically how
                                                               232


1    much.

2         Q.   (By Mr. Cotchett) Well, you don't remember

3    writing a check for 37 million dollars?

4         A.   I don't remember the precise amounts.

5         Q.   Was it approximately that?

6         A.   I actually remember a lower amount.    It was lower

7    than that, but it was substantial.

8         Q.   So now I think what you do remember is -- if you

9    would go to Page 2, Paragraph 2.1, what you did is you put

10   $500,000 down, is that correct, an initial contribution?

11             MR. ESSNER:    Objection.   Vague.

12             THE COURT:    The objection is overruled.

13             THE WITNESS:    That is what Page 2 says.

14        Q.   (By Mr. Cotchett) And then you wrote -- or

15   somehow put in another 37 million dollars; is that right?

16             MR. ESSNER:    Objection.   Lacks foundation.

17             THE COURT:    The objection is overruled.

18             THE WITNESS:    I don't specifically remember how

19   much I put in.

20        Q.   (By Mr. Cotchett) Okay.     Now, who was supposed

21   to run Martins Beach 1?    And do you understand what I mean

22   by that phrase?

23        A.   I believe there was an operating agreement that

24   required Mr. Baugher to run the -- manage the property.

25        Q.   And Mr. Baugher, just so we're clear, is sitting

26   here right in court, and you recognize him; right?
                                                                233


1         A.    Yes.

2         Q.    Now, before -- I take it that before you set up

3    this operating agreement -- strike that.

4               Shortly after setting up this operating

5    agreement, you bought Martins Beach 1 and Martins Beach 2;

6    correct?

7         A.    Sir, as I said, I don't specifically remember

8    whether it was one or two different entities.

9         Q.    Right.   Let's go back to the timing, and perhaps

10   your counsel here can stipulate so we can move it ahead

11   quickly.

12              You set up the companies on May 5th, 2008.      You

13   closed sometime in October or November of 2008, counsel?

14              MR. ESSNER:    I don't know.

15        Q.    (By Mr. Cotchett) We'll work our way through it.

16              Tell me, when did you close escrow on the

17   properties?

18        A.    I don't specifically remember.    I'm sure there

19   are documents to substantiate the dates.

20        Q.    If I told you it was shortly after setting up

21   these companies, would I be wrong?

22              MR. ESSNER:    Objection.   Lacks foundation.

23   Speculation.

24              THE COURT:    Objection is sustained.

25        Q.    (By Mr. Cotchett) If I told you that you bought

26   the properties shortly after setting up these
                                                                234


1    corporations, would that be correct, or wrong?

2              MR. ESSNER:    Objection.   Lacks foundation.

3    Speculation.

4              THE COURT:    Well, do you know?     The issue is --

5              MR. COTCHETT:    Do you know?

6              THE COURT:    -- do you recall?

7              THE WITNESS:    I do not specifically recall.    I

8    would have no reason to doubt your assertions.

9         Q.   (By Mr. Cotchett) Thank you very much.      Let me

10   tell you, that is what happened.

11             Now, prior to buying the property out there, you

12   had discussions with people about the access to the beach;

13   is that correct?

14             MR. ESSNER:    Objection.   Privilege.

15             THE COURT:    Well, that can be answered "yes" or

16   "no."

17             THE WITNESS:    Could you repeat the question?

18        Q.   (By Mr. Cotchett) Sure.

19             Prior to buying the properties, escrow closing,

20   you had discussions with people about the access to the

21   beach; correct?

22             MR. ESSNER:    Objection.   Vague.

23             THE COURT:    The objection is overruled.    Again,

24   you can answer that "yes" or "no."

25             THE WITNESS:    Not that I recall, specifically.

26        Q.   (By Mr. Cotchett) So let me see if I got this
                                                                235


1    straight.

2                You paid 37 and half million dollars for a piece

3    of property, and you never talked to anyone between 2004

4    and 2008 about the access to the property?

5                MR. ESSNER:    Objection.   Argumentative.

6                THE COURT:    It is argumentative.

7                Objection is sustained.

8         Q.     (By Mr. Cotchett) Let me try it this way, then:

9    Between 2004 and 2008, when you spent 37 million, you

10   never asked anyone about access?

11               MR. ESSNER:    Objection.   Argumentative but with a

12   lower voice.

13               MR. COTCHETT:    Very good.

14               MR. ESSNER:    Thank you.

15               THE COURT:    Again, let's have a respectful

16   process.    Thank you.

17               Let's try it again, Mr. Cotchett.

18        Q.     (By Mr. Cotchett) Okay.     Let me try it this way:

19   Between 2004 and 2008, you never had conversations with

20   anyone about access?

21               MR. ESSNER:    Misstates the testimony.   There's

22   been no testimony about 2004 or any of those dates.

23               THE COURT:    That's his question.   He can ask that

24   question.

25               Objection is overruled.

26               You may answer the question.
                                                                  236


1                THE WITNESS:    Sitting here, I do not recall

2    having any such conversations.

3         Q.     (By Mr. Cotchett) Even though his hair is now

4    shorter, you don't recall any conversations about

5    purchasing the property with Mr. Massara?

6         A.     No, I do not.    And it would be unusual for me to

7    discuss something with a gentleman I don't know.

8         Q.     Okay.

9         A.     But that's a general statement of fact.

10        Q.     Okay.

11        A.     But I have no knowledge either way of that.

12        Q.     So the operating agreement that you have in front

13   of you gives all responsibility for operating it to

14   Mr. Baugher, is that correct, the beach?

15               MR. ESSNER:    Objection.   The document speaks for

16   itself.

17               MR. COTCHETT:    Is that your understanding of the

18   document?

19               THE COURT:    No.

20               THE WITNESS:    That is my understanding of the

21   document.

22               Could I clarify my answer?

23               THE COURT:    Yes.

24               THE WITNESS:    That is my recollection of the

25   documents since I haven't read it recently.

26        Q.     (By Mr. Cotchett) Sure.     And I'll take that
                                                                 237


1    back, Mr. Khosla.    Thank you.

2               Now, you would speak with Mr. Baugher about the

3    property occasionally, wouldn't you?

4         A.    I generally speak to counsel about the property.

5         Q.    Let me do the question again.

6               You speak to Mr. Baugher about the property out

7    at Martins Beach occasionally, do you not?

8         A.    I cannot recollect the last time I spoke to

9    Mr. Baugher about the property without the presence of

10   counsel.

11        Q.    So let me see if I got this right.       Every time

12   you spoke to Mr. Baugher about the property, you always had

13   your attorneys present?

14        A.    I would assume that that is, in fact, right.

15        Q.    Really?

16        A.    The best I can recollect, because I haven't had

17   very many conversations about the property.

18        Q.    And what was the reason for always having your

19   attorney present?

20              MR. ESSNER:    Objection.   Privilege.

21              THE COURT:    Well, privilege would be the

22   conversation itself.

23              MR. COTCHETT:    Correct.

24              THE COURT:    As to why he's doing that would not

25   be privileged, so go ahead.

26              MR. COTCHETT:    Thank you.
                                                                   238


1         Q.    (By Mr. Cotchett) Let me restate it, so we can

2    have a clear understanding, as her honor just pointed out

3    to you.

4               Why every time you talk about the beach -- we're

5    going to call it "the beach" -- with Mr. Baugher, you would

6    have your attorneys present?

7         A.    Because I was advised by counsel --

8               THE COURT:    No.    Don't tell us what you were

9    advised.

10        Q.    (By Mr. Cotchett) Oh?      Let me see if I can get

11   that back.   And I don't want what the advice was.

12              You were just advised by counsel that what?

13              MR. ESSNER:    Objection.    Privilege.

14              THE COURT:    Yes.    Do not tell us anything that

15   counsel advised you.     So if you can answer that question

16   without telling us the conversation, go ahead.

17              THE WITNESS:    I cannot.

18   (Plaintiffs' Exhibit No. 6 Was Marked For Identification.)

19        Q.    (By Mr. Cotchett) Okay.      To save time, this is

20   Plaintiff's Exhibit 6, Your Honor, so you don't have to

21   dig through the binders.

22              THE COURT:    Thank you.

23              MR. COTCHETT:    Counsel.    Thank you for the high

24   five.

25              Let me hand you a series of e-mails.      And maybe

26   we could save a lot of time with this.
                                                                  239


1                Your Honor, to move this case along, in

2    Mr. Baugher's deposition, he was asked, does he recognize

3    this exhibit as a series of e-mails between you and

4    Mr. Holbrook?

5                Answer:   "I do now, yes."

6                I would offer them in evidence.

7                THE COURT:    Any objection?

8                MR. ESSNER:    Yeah.   These are not authenticated,

9    and there's no foundation that this witness has seen these

10   documents.

11               THE COURT:    That's what I was wondering.

12               MR. COTCHETT:    Well, my question is -- I'm trying

13   to save time here.    I have the authentication of them in a

14   deposition here under oath by Mr. Baugher that he received

15   them.

16               At some point, Mr. Baugher is going to take the

17   stand, and they're going to come into evidence.

18               To save time now, I'm simply asking him -- I'm

19   going to ask him a question about them.      Perhaps he never

20   saw them.

21               THE COURT:    Well, I'm not sure they need to be in

22   evidence for that purpose.

23               MR. ESSNER:    That's what I was going to say.    He

24   can show him the e-mail and ask him if he saw them.

25               MR. COTCHETT:    We can do it that way.   I didn't

26   understand that to be the law, but I'll take it.
                                                               240


1         Q.   (By Mr. Cotchett) Tell me -- let's look at the

2    front page.

3              Do you see the front page from Mr. Holbrook to

4    SRB, that's Mr. Baugher; right?

5         A.   Is that a question for me?

6         Q.   Yes, uh-huh.

7         A.   Yes.   SRB is --

8         Q.   Mr. Baugher?

9         A.   -- Mr. Baugher.

10        Q.   And the date on this is May 23rd, '08; correct?

11        A.   That is the date on this document.

12        Q.   And we've just established that it was in early

13   May when you formed the two companies to buy the beach;

14   right?

15        A.   Yes.

16        Q.   So roughly some 23 days later, Mr. Baugher gets

17   an e-mail from Mr. Holbrook; correct?

18             MR. ESSNER:    Objection.   Lacks foundation.

19             THE COURT:    Objection is sustained.

20        Q.   (By Mr. Cotchett) Approximately, 23 days later,

21   the document in front of you shows that Mr. Baugher

22   received an e-mail from Mr. Holbrook; correct?

23             MR. ESSNER:    Objection.   The document speaks for

24   itself.

25             MR. COTCHETT:    I can question him on it,

26   Your Honor.
                                                                 241


1              THE COURT:    Yes.   Are we going back and forth on

2    the date and how far away that is, is that the issue?

3              MR. COTCHETT:    We already had a stipulation that

4    it was May 5th.

5              THE COURT:    I appreciate that, but it's not 23

6    days later so --

7              MR. COTCHETT:    Maybe my math is bad.    Five from

8    23 -- my math is bad.    So --

9              THE COURT:    Eighteen.

10        Q.   (By Mr. Cotchett) So 18 days later.

11             You recognize this, right, sir?

12             MR. ESSNER:    Whoa, whoa.    Compound.   Eighteen

13   days later you recognize this?

14        Q.   (By Mr. Cotchett) Stop.      It was compound.    It

15   was a terrible question.

16             Eighteen days later, after you formed this

17   company, Mr. Baugher receives this e-mail; right?

18             MR. ESSNER:    Objection.    Lacks foundation.

19             THE COURT:    Alright.    The objection is sustained.

20   He doesn't know when he received the e-mail.

21        Q.   (By Mr. Cotchett) You don't know when he

22   received it; right?

23        A.   No, I don't.

24        Q.   So let's read the first sentence.

25             There is existing parking and access -- this is

26   Mr. Baugher:
                                                                242


1              "There is existing parking and access

2              to the beach at Martins Beach.      This

3              access is --" in all capitals -- "also

4              memorialized and required to be

5              preserved, no exceptions, by the

6              Local Coastal Program.      You said you

7              read these policies, including

8              Table 10.1."    I'll drop the mail --

9              "I'll drop in the mail to you a map we

10             have that confirms this access."

11             Sir, did Mr. Baugher ever share with you that he

12   was told by the County that there is access recorded in

13   the, quote, "Local Coastal Program"?

14             MR. ESSNER:    Objection.    Hold on.   That misstates

15   what the e-mail says.    It doesn't say "recorded," number

16   one; and, number two, privilege.

17             MR. COTCHETT:    Privileged?

18             THE COURT:    Okay.   Well, it certainly doesn't say

19   "recorded."   So objection is sustained on that basis.

20        Q.   (By Mr. Cotchett) Preserved by the

21   Local Coastal Program?

22             MR. ESSNER:    Objection.    Vague now.

23             MR. COTCHETT:    Well, that's the exact language.

24             THE COURT:    It is the language.

25             Go ahead.

26             THE WITNESS:    If you're asking me if this says
                                                                 243


1    "preserved," the answer is that is what this document

2    states.

3           Q.   (By Mr. Cotchett) Yes.      Now my question to you

4    was:   Did Mr. Baugher ever share, your manager in the

5    beach, did he ever share with you the fact that he was

6    told by the County that access, quote, "Must be

7    preserved," I'll use the word "preserved," by the

8    Local Coastal Program?      Did he ever tell you that, sir?

9           A.   I don't believe so, sitting here.

10          Q.   Okay.   Now, would you go -- so he never told you

11   that, not in the presence of lawyers or any time?

12          A.   Let me be clear.

13          Q.   Please.

14          A.   I'm saying I don't recollect him telling me this

15   part, the content of this e-mail, if that's the more

16   specific question.

17          Q.   When you say the context --

18          A.   The content.

19          Q.   In other words, you didn't understand it?

20               THE COURT:   He said -- Mr. Cotchett, he said

21   "content."

22               MR. COTCHETT:    Context?

23               THE COURT:   No, content.

24               THE WITNESS:    I said, "content."

25               MR. COTCHETT:    Content.    I got it.

26          Q.   (By Mr. Cotchett) Go to the next page.     This is
                                                             244


1    at 5:15 p.m.   It appears to be the same day.   Quote, from

2    Mr. Holbrook -- to this day, strike that.

3              To this day, do you know who Mr. Holbrook is?

4         A.   No, I do not.

5         Q.   Do you know he's a County employee?

6         A.   No, I do not.

7         Q.   Mr. Holbrook to your manager, says:

8              "I'll leave the map for you to pick up

9              at the counter.   I assume you have that

10             LCP access component chapter,

11             Table 10.1.   Beyond that, I can only

12             say what I've already stated.   The

13             access is there and will have to

14             remain."

15             My -- do you see that sentence?

16        A.   I see the sentence.

17        Q.   Good.   Now, my question to you:   Did Mr. Baugher

18   ever say to you that there is access to the beach under the

19   San Mateo program?

20        A.   Not that I can recollect.

21        Q.   He never showed you these e-mails?

22        A.   Not that I know of, not that I can recollect.

23        Q.   So if I were to go through them, I don't want to

24   waste a lot of time, and say that the third one parrots the

25   first one, it would be your position that he's never

26   discussed any of this with you?
                                                                245


1         A.     Let me be very accurate.     I do not recollect him

2    discussing this with me or discussing who Mr. Holbrook is

3    or any of the questions you've asked me recently.

4         Q.     So it's a question of recollection.     You don't

5    doubt it, though, you just don't recollect?

6                MR. ESSNER:    Objection.   Argumentative.

7                THE COURT:    Objection is sustained.

8                MR. COTCHETT:    Once again, Your Honor, to save

9    time, I'll just hand you up Plaintiff's Exhibit 17.

10               I'll hand counsel 17, so you don't have to worry

11   about your binders.

12               MR. ESSNER:    Thank you.

13             (Plaintiff's Exhibit No. 17 Was Marked For

14                            Identification.)

15        Q.     (By Mr. Cotchett) And, Mr. Khosla, you're

16   familiar with the firm Hopkins & Carley?

17        A.     I am.

18        Q.     And these are your lawyers sitting right over

19   here, a very distinguished law firm.

20               You have that document in front of you?

21        A.     Yes.

22        Q.     Now, it's signed by Joan Gallo; correct?

23        A.     Yes.

24        Q.     And you know Joan Gallo?

25        A.     Yes.

26        Q.     She's a lawyer with Hopkins & Carley that worked
                                                                 246


1    for you on Martins Beach; correct?

2         A.   Yes.

3         Q.   Okay.   Now, I'll represent to you that this

4    document is already in evidence.      It was sent to

5    Mr. Larenas, who is here in court.      It was sent to

6    Mr. Wallace.    Do you see that?    Do you see that right at

7    the top, sir?

8         A.   Yes.

9         Q.   Now, go down to the second sentence of the first

10   paragraph:

11             "I am the attorney for Martins Beach.

12             The legal owner of Martins Beach,

13             Mr. Khosla, has forwarded your letter

14             to me for response."

15             MR. ESSNER:    Objection.    That misstates the

16   context of the sentence.

17             MR. COTCHETT:    I don't know about the context.

18   I'm just reading it.

19             THE COURT:    It seems to be the sentence.

20        Q.   (By Mr. Cotchett) Do you see the sentence, sir?

21        A.   Yes, I do.

22             THE COURT:    Oh, okay.

23             THE WITNESS:    There appears to be a period after

24   Martins Beach.

25             MR. COTCHETT:    That's correct.

26             THE COURT:    LLC, is that the point?
                                                               247


1              MR. ESSNER:   Yes.

2              THE COURT:    Alright.   LLC.

3         Q.   (By Mr. Cotchett) Do you recall sending your

4    lawyer the attached letter?    If you would go to the last

5    page, do you see "Vinod Khosla"?    Do you see that, sir?

6         A.   Yes, I do.

7         Q.   Okay.   This is in evidence.

8              Do you recall receiving this letter?

9         A.   I can't tell you exactly if I did.   I must have.

10        Q.   You must have; right?

11        A.   Yes.

12        Q.   And it's clear you must have sent it, then, over

13   to your lawyer, Joan Gallo; right?

14        A.   It appears to be the case.

15        Q.   It appears to be the case.

16             Now, she responded to the two people that wrote

17   the letter to you, correct, Mr. Larenas and Mr. Wallace;

18   right?

19        A.   It appears to be the case.

20        Q.   It appears to be the case.

21             You say "appears to be the case," do you have any

22   doubt in your mind that your lawyer wrote that letter?

23        A.   No.

24        Q.   Okay.   So now if we go down to the one, two,

25   three -- fourth one down, starting with the word "The

26   purchase."
                                                                248


1              "The purchase of this property was for private

2    use and not as a commercial enterprise."

3              Do you see that sentence?

4         A.   I see what it says.

5         Q.   Good.    Is that true or false?

6         A.   I had no specific plans for the property.

7         Q.   My question is:    "The purchase of this property

8    was for private use and not as a commercial enterprise."

9    Is that true or false?

10        A.   The best I can recollect, I never discussed with

11   Joan what the purpose was because I didn't have a purpose.

12        Q.   Okay.    At the time -- I'm going to go to the

13   second sentence.

14             "At the time of purchase, it was

15             decided to close access during the off

16             season, during times when the road was

17             in poor repair, as it always is after

18             the rainy season, when there were

19             private parties, and when a parking

20             attendant was not available."

21             Do you see that sentence, sir?

22        A.   I do see the sentence.

23        Q.   Good.    Is that true or false?

24        A.   That it exists here on paper?

25        Q.   My question -- you're the owner of the property.

26   Your counsel has stipulated to that a few minutes ago when
                                                                  249


1    we allowed you to sit in court; right?

2          A.   Yeah.

3          Q.   Now, my question is really simple.

4               The purchase of this property was for private use

5    and not as commercial at the time of the purchase -- do you

6    see the words, "At the time of the purchase," it was

7    decided to close access during various times, and it goes

8    on.

9               Do you want me to read it again?

10         A.   No.   I see what is written there.

11         Q.   So my question is:    Is that true or false?

12         A.   Sitting here, I have no recollection.      It's

13   unlikely that I would have reviewed this letter or --

14         Q.   Whoops, I apologize.

15              THE COURT:    Let him finish his answer.

16              THE WITNESS:    Or discussed my purpose with Joan.

17         Q.   (By Mr. Cotchett) So you can't answer whether

18   that sentence is true or false, is that what you're saying

19   to us?

20              MR. ESSNER:    Objection.   Argumentative.

21              THE COURT:    Objection is sustained.

22         Q.   (By Mr. Cotchett) Can you tell us whether it's

23   true or false?

24         A.   No, I cannot.

25         Q.   Do you have any doubt in your mind that your

26   attorney would write a falsehood, sir?
                                                                250


1                MR. ESSNER:    Objection.   Argumentative.

2                THE COURT:    Objection is sustained.

3         Q.     (By Mr. Cotchett) Do you think that your

4    attorney would write a falsehood?

5                MR. ESSNER:    Objection.   Argumentative.

6                THE COURT:    Objection is sustained.

7         Q.     (By Mr. Cotchett) Do you have confidence in your

8    attorney?

9                MR. ESSNER:    Objection.   Relevance.

10   Argumentative.

11               THE COURT:    Objection is overruled.

12               MR. COTCHETT:    Thank you.

13        Q.     (By Mr. Cotchett) Do you have confidence in your

14   attorney?

15        A.     If I were to receive a letter like this, I

16   probably wouldn't read it.      I would forward it to be taken

17   care of.    That would be typical.

18        Q.     But you say, "typical."     What do you mean

19   typical?    Is that how you operate?

20        A.     That is how I normally operate on all matters --

21   or most matters.

22        Q.     Let's go to the next sentence.

23               In April of 2009, this is -- by the way, the

24   letter is dated 2011, correct, for the record?

25        A.     Yes.

26        Q.     The next sentence:
                                                                 251


1               "In April of 2009, the County of

2               San Mateo ordered that Martins Beach be

3               open to the public all year and that

4               the parking fee be limited to two

5               dollars since that is the amount which

6               was charged in 1979."

7               Do you see that sentence?

8         A.    I do see that sentence.

9         Q.    Do you know of your own personal knowledge in

10   2009 that the County ordered Martins Beach to be open to

11   the public?

12        A.    Reading this sentence, I vaguely recollect

13   something like that.

14        Q.    Tell me what you recollect -- tell us.       I

15   apologize.

16        A.    I don't recollect much more than is written

17   there.    It triggered a recollection.

18        Q.    A recollection that the County had told you that

19   you had to have access to the beach; right?

20        A.    No.   A recollection that the County had some

21   demands.

22        Q.    Okay.   And did you discuss that with Mr. Baugher?

23        A.    Sitting here, I can't answer that.

24        Q.    Because you just don't remember?

25              MR. ESSNER:   Objection.    Argumentative.

26              THE COURT:    No.   Objection is overruled.
                                                                   252


1                THE WITNESS:    I don't remember.

2           Q.   (By Mr. Cotchett) Okay.      Go to the next page.

3                "This order put the ownership in an impossible

4    situation."

5                Do you see that?

6           A.   That's what it says.

7           Q.   Yeah.   Was that true or false?     Did it put you in

8    an impossible situation because you were the ownership?

9                MR. ESSNER:    Objection.    Lacks foundation.

10   Argumentative.

11               THE COURT:    No.   The objection is overruled.

12               You can answer the question.

13               THE WITNESS:    Okay.   Sorry.   I was waiting for

14   you.

15               THE COURT:    That's fine.    Thank you, sir.

16               THE WITNESS:    I do not recollect discussing this

17   letter or seeing this letter prior to it being sent.

18          Q.   (By Mr. Cotchett) See, that's not the issue that

19   I'm asking you about.      And I understand you don't remember

20   the letter, sir, because you're busy.        You don't read

21   these.

22               My question to you is:      Of your own knowledge,

23   was it true or false at the time?

24          A.   I do not remember whether I was in an impossible

25   situation or not.    Frankly, I wouldn't know how to define

26   an "impossible situation" or not.
                                                                 253


1         Q.     I see.   The next sentence says:

2                "Neither the County nor the Coastal

3                Commission has the right to require a

4                property owner to provide beach access

5                in the absence of a legal easement or

6                permit condition."

7                Was that true or false at the time?

8                MR. ESSNER:    Objection.   Calls for a legal --

9                THE COURT:    I'm sorry.    Stop.

10               MR. ESSNER:    Objection.   Calls for a legal

11   conclusion.    Lacks foundation.

12               THE COURT:    Objection is sustained.

13        Q.     (By Mr. Cotchett) Was it your opinion in 2011

14   that the County or the Coastal Commission did not have the

15   right to require a property owner to provide beach access?

16               MR. ESSNER:    Objection.   Calls for a legal

17   conclusion.

18               THE COURT:    Objection is sustained.

19        Q.     (By Mr. Cotchett) As an owner of the property,

20   do you understand the term "beach access"?

21        A.     I do.

22        Q.     Now, very simply put, in 2011, when this was

23   written, was there beach access to the Martins Beach

24   property?

25               MR. ESSNER:    Objection.   Lacks foundation.

26               THE COURT:    No.   Objection is overruled.
                                                                254


1              THE WITNESS:    I cannot answer this question

2    without divulging conversations with counsel.

3              MR. ESSNER:    Objection.    Privilege.

4              MR. COTCHETT:    Without what?

5              THE COURT:    I'm sorry.    What was the objection?

6              MR. ESSNER:    Privilege.

7              THE COURT:    Well, the question was:     As the owner

8    of the property -- well, let me go back.      Sorry.

9              "Simply put, in 2011, when this was written, was

10   there beach access to the Martins Beach property?"

11             That's the question.

12             MR. COTCHETT:    Simple question.

13             THE WITNESS:    To answer that question, I would

14   have to go into discussions with counsel.

15        Q.   (By Mr. Cotchett) So, again, I don't want to

16   argue with you, but just so we're absolutely clear on the

17   record, you never discussed that with Mr. Baugher, the

18   issue of access, outside the presence of your lawyers?

19             MR. ESSNER:    Objection.    Overbroad.

20             THE COURT:    Objection is overruled.

21             THE WITNESS:    Not that I can recollect sitting

22   here.

23        Q.   (By Mr. Cotchett) Did you have an intent always

24   to have your lawyers present when you discussed those

25   issues with him?

26        A.   Could you repeat the question?
                                                              255


1         Q.   Sure.

2              Did you have an intent of mind to always have

3    your lawyers present when you discussed issues of access

4    with Mr. Baugher?

5         A.   I would have, to answer that question, to get

6    into what my lawyers advised.

7         Q.   That wasn't the question, sir.

8              Was it your intent to always have your lawyers

9    present when you spoke to Mr. Baugher about access?    Was it

10   your intent?

11        A.   I can't, sitting here, recollect what my intent

12   was in 2011.

13        Q.   Okay.    If you go to the very last paragraph -- I

14   apologize.    Go to the next paragraph down.   It reads, from

15   Joan Gallo:

16             "The County then deferred the matter to

17             the Coastal Commission, and we have

18             been waiting ever since the lawsuit was

19             terminated for an enforcement action,

20             which will resolve the question of the

21             rights of owner with regard to access."

22             Do you see that question?

23        A.   I see a statement.

24        Q.   You see a statement.    Was it your intent, not

25   your lawyer's intent, was it your intent to wait for the

26   lawsuit to be terminated for an enforcement action, which
                                                                256


1    will resolve the question of rights of the owner with

2    regard to access?   Was that your intent?

3              MR. ESSNER:    Objection.   Privilege.   Lacks

4    foundation.

5              THE COURT:    No.   It's as to his intent.

6              Go ahead.    The objection is overruled.

7              THE WITNESS:    I don't recollect here -- sitting

8    here what my intent was back then.

9         Q.   (By Mr. Cotchett) What was the lawsuit, by the

10   way, that -- strike that.

11             In 2011, did you have a lawsuit pending against

12   the County?   And by "you" I mean the stipulation that your

13   counsel kindly gave me, you, the owner of Martins Beach,

14   did you have a lawsuit pending against the County?

15        A.   I believe there was some lawsuit, but I don't

16   know the specific contents of that.

17        Q.   So when you say you believe there was a lawsuit,

18   let me see if I'm clear, and I don't want to go into any

19   legal conversations, but was it a fact that a lawsuit was

20   filed on Martins Beach's behalf against the

21   County of San Mateo?

22        A.   To the best of my recollection, a lawsuit was

23   filed.

24        Q.   And what happened in that lawsuit?

25        A.   If I remember right, it was -- the term I would

26   have to recollect is "deferred" until there was a hearing,
                                                                  257


1    which was not granted.

2           Q.   Which was not granted.      That's lay talk?

3           A.   It is lay talk.      I don't specifically remember

4    the circumstances.

5                MR. COTCHETT:    Well, let me show you -- I would

6    ask the Court to take judicial notice of this -- Judge

7    Grandsaert's order from this court.

8                THE COURT:    Yes.    The Court will take judicial

9    notice of that.

10          Q.   (By Mr. Cotchett) Now, sir, have you ever seen

11   this order before?

12          A.   Sitting here, not that I recollect, but I could

13   have.

14          Q.   Now, when you say you could have, let's see if we

15   can just analyze where we are.

16               In other words, Martins Beach filed a lawsuit way

17   back in 2009.    Do you see the date up at the top?

18               MR. ESSNER:    Objection.    Lacks foundation.

19          Q.   (By Mr. Cotchett) Do you see the date at the

20   top?

21               THE COURT:    Stop for just a minute.

22               Lacks foundation?

23               MR. ESSNER:    Is he just asking him if he sees

24   that?   Is that the question?

25               THE COURT:    That was the question.

26               MR. ESSNER:    Okay.
                                                                  258


1                THE COURT:    Go ahead.

2                Objection is overruled.

3                THE WITNESS:   I see a date here.

4         Q.     (By Mr. Cotchett) Well, you were aware, were you

5    not, that your lawyers filed an action on behalf of

6    Martins Beach 1 and 2 against the County of San Mateo,

7    were you not?

8         A.     I vaguely recollect that.

9         Q.     Okay.   And, as you sit here today, your testimony

10   is you don't think -- what is your testimony about the

11   document you're holding in front of you?       Do you recall

12   being shown this?

13        A.     Could you please ask me a specific question.

14        Q.     Sure.   And let me be -- if I can be more

15   specific.

16               Did your attorneys show you this document?

17        A.     I don't remember whether I did or didn't see this

18   document.

19        Q.     Really?

20               Would your attorneys usually show you what

21   documents they filed on your behalf?

22               MR. ESSNER:    Objection.    Lacks foundation.

23   Overbroad.

24               THE COURT:    Alright.    Be more specific, please.

25               Objection is sustained.

26        Q.     (By Mr. Cotchett) Sure.      Surely.
                                                                259


1                We're talking about Martins Beach.   You're the

2    owner; right?

3           A.   Yes.

4           Q.   Now, if your attorneys went out and filed an

5    action against the County of San Mateo, this wonderful

6    building we're in included, you would know that, would you

7    not?

8           A.   I might.   I may not know the specific contents of

9    what was filed.

10          Q.   Okay.

11          A.   I don't consider that my job.

12               MR. COTCHETT:   I see.   So let's just establish at

13   the back.    This is signed by a judge of the Superior Court

14   in 2009.    And I would like you to go to Page 3,

15   County of San Mateo's demurrer, sir.

16               If I can just walk up, Your Honor, and save

17   a lot of time and show him the page?

18               THE COURT:   Yes.

19          Q.   (By Mr. Cotchett) Let's go right to -- do you

20   see that page, sir?

21          A.   Yes, I do.

22          Q.   Okay.   Do you see the County of San Mateo's

23   demurrer?    Do you see that?

24          A.   Yes.

25          Q.   Do you know what a demurrer is?

26          A.   No.
                                                             260


1         Q.     Okay.   Let's go to Line 9.

2                "While plaintiff purports to dispute

3                administrative jurisdiction, plaintiff

4                concedes that jurisdiction is

5                controlled by the

6                Public Resources Code 30600(a), which

7                applies to any person wishing to

8                perform or undertake development in the

9                coastal zone; Plaintiff further

10               concedes that the definition of

11               development in Public Code Section

12               30106 includes" -- quote -- "'A change

13               in the intensity of use of water or of

14               access.'"

15               Do you see those words?

16        A.     I see the words.

17        Q.     Now, is it your testimony that no one has shown

18   you this order?

19        A.     My testimony is I don't recollect seeing this

20   order.    It would also be highly unusual for me to read such

21   a document.

22        Q.     Really?

23               Did your attorney tell you a fact that you had

24   lost the case?

25               MR. ESSNER:   Objection.   Privilege.

26               MR. COTCHETT:   Privilege?
                                                              261


1              THE COURT:    No.   Objection is overruled.

2              THE WITNESS:    I don't recollect what my attorney

3    told me in 2009.

4         Q.   (By Mr. Cotchett) If you go down to the very

5    last line on that page, 28, it reads:

6              "Thus, Plaintiffs --" and you were the

7              plaintiff -- "concedes in the Complaint

8              facts that establish that public access

9              to Martins Beach was provided by the

10             Deeneys in the late 1980s, that

11             Plaintiff acquired the beach in 2008,

12             and the Plaintiff now seeks to

13             discontinue allowing public access to

14             the beach."

15             Do you see those words?

16        A.   I see the words.

17        Q.   Now, when Judge Grandsaert wrote that, did you

18   have knowledge of his order?

19        A.   As I testified before, it's highly unlikely I

20   would read something like that.

21        Q.   And now, as a fact, your attorneys never told you

22   of that sentence I just read?

23             MR. ESSNER:    Objection.   Privilege.

24             THE COURT:    Objection is sustained.

25        Q.   (By Mr. Cotchett) As a fact, did you have the

26   impression after leaving your attorney's office that you
                                                                262


1    had lost the case?

2              MR. ESSNER:    Objection.   Lacks foundation.

3              THE COURT:    Objection is sustained.

4         Q.   (By Mr. Cotchett) In 2009, it says, "The

5    plaintiff concedes in the Complaint facts ..."     You were

6    the plaintiff, were you not?

7              MR. ESSNER:    Objection.   Relevance.

8              THE COURT:    Well, he's --

9              MR. COTCHETT:    It goes right to the heart of the

10   matter, Your Honor.

11             THE COURT:    The objection is overruled.

12             Go ahead.

13             THE WITNESS:    Could you repeat the question?

14        Q.   (By Mr. Cotchett) Sure.

15             Go back to the line that I just read.    "Plaintiff

16   concedes in the Complaint facts that establish that ..."

17   You were the plaintiff, were you not?

18        A.   It appears to be the case.

19        Q.   Yes.   And is it -- did you concede those facts?

20        A.   Not that I can recollect sitting here.

21        Q.   You don't know the fact that you conceded those

22   facts in a document filed downstairs in the Clerk's Office,

23   in this court?

24             MR. ESSNER:    Objection.   Argumentative.

25             THE COURT:    Objection is sustained.

26        Q.   (By Mr. Cotchett) Have you -- before coming into
                                                                263


1    court this afternoon at three o'clock, just so we're

2    absolutely clear for the record, you have no recollection

3    of ever being shown what Judge Grandsaert ordered?

4         A.    I have no recollection.     I will further testify

5    if I had been shown this, it's unlikely that I would have

6    read it.

7         Q.    Let me understand that.

8               So, in other words, if you were shown it, you

9    wouldn't have read it; is that right?

10        A.    That's what I'm saying.

11        Q.    Hum.   You paid 37 million dollars for the

12   property, and you wouldn't have read this order?

13              MR. ESSNER:    Objection.   Argumentative.

14              THE COURT:    Objection is sustained.

15        Q.    (By Mr. Cotchett) Let's go to Line 4, sir.

16              "Before seeking a judicial

17              determination in this court, Plaintiff

18              must comply with the administrative

19              process provided by the

20              California Coastal Act."

21              Is that true or is that false, at the time

22   Judge Grandsaert signed this document?

23              MR. ESSNER:    Objection.   Argumentative.   Lacks

24   foundation.

25              THE COURT:    Objection is sustained.

26        Q.    (By Mr. Cotchett) Would you read the line
                                                               264


1    before:

2              "Seeking a judicial determination in

3              this court, Plaintiff must comply with

4              the administrative process provided by

5              the California Coastal Act."

6              Do you see that sentence?

7         A.   Yes, I do.

8         Q.   My question to you is, sir:     Did your attorneys

9    tell you that fact?

10             MR. ESSNER:    Objection.   Privilege.

11             THE COURT:    Objection is sustained.

12        Q.   (By Mr. Cotchett) Did you learn that fact from

13   anyone else that you had to get Coastal Commission

14   permission?

15             MR. ESSNER:    Objection.   Vague.

16             THE COURT:    Objection is overruled.

17             THE WITNESS:    I don't recollect what I did.

18             Just for clarification, I probably get well over

19   somewhere between 500 to a thousand pages of documents

20   like this a week.   So I can't possibly review them.   And

21   so I'm not trying to be unreasonable, but telling you what

22   my life is like.

23        Q.   (By Mr. Cotchett) And we all appreciate that.

24   We do.

25             But let me ask you this, sir, candidly:    This is

26   a beach that you bought with the intention of putting a
                                                                  265


1    private residence on; correct?

2              MR. ESSNER:    Objection.   Argumentative.   Lacks

3    foundation.

4              THE COURT:    Objection is overruled.

5              THE WITNESS:    I bought the beach, but I had no

6    plan for the beach, as I've stated previously.

7         Q.   (By Mr. Cotchett) After you bought the beach,

8    was it not your intention to put a private residence on

9    this beach?

10        A.   I had no specific plans for the beach.

11        Q.   Forget the words "specific plans."

12             Did you ever tell Mr. Baugher that you were going

13   to put a private residence on the beach?

14        A.   To the best of my recollection, no, I don't.

15        Q.   And at or about this time when Judge Grandsaert

16   ruled this way, no one -- let's do it this way:    Besides

17   your attorneys said, "You know, you got a problem here,"

18   nobody said that to you?

19             MR. ESSNER:    Objection.   Argumentative.

20   Overbroad.

21             THE COURT:    Objection is overruled.   Although

22   it's, to some extent, been asked and answered.

23             But go ahead.

24             THE WITNESS:    I think I've answered that I don't

25   recollect.

26        Q.   (By Mr. Cotchett) You don't recollect?       You
                                                               266


1    don't recollect anybody saying, "Boy, we have a problem"?

2         A.   No, I do not.

3         Q.   Let's go down to Line 10 where Judge Grandsaert

4    talks about --

5              MR. ESSNER:    What page, counsel?

6              MR. COTCHETT:    Same page.

7              MR. ESSNER:    What page are you on?

8              MR. COTCHETT:    Line 10.

9              MR. ESSNER:    Page?

10             MR. COTCHETT:    Oh, we are on Page 3.

11             THE COURT:    It's Page 3, Bates 5.

12             MR. COTCHETT:    Thank you, Your Honor.

13        Q.   (By Mr. Cotchett) "The exact circumstances of

14   the prior access and the extent to which Plaintiff seeks

15   to change access, are appropriate factual inquiries to be

16   submitted to the appropriate administrative body.      That

17   body's final decision may be reviewed by this court --" on

18   a writ of mandate -- "by a writ of mandate."     I apologize.

19             Besides your attorneys, did anyone ever tell you

20   what I just read to you?

21        A.   Not that I recollect.

22        Q.   And I take it, just in a general way, and it may

23   have already been asked and answered, as you sit here, you

24   have no idea, because you get so many documents, that you

25   lost that case?

26             MR. ESSNER:    Objection.   Argumentative.
                                                                 267


1                THE COURT:    Objection is sustained.

2         Q.     (By Mr. Cotchett) We're getting pretty close

3    here, honestly, Mr. Khosla.

4                Did your client ever tell you -- excuse me.

5                Did your lawyers ever inform you, or did anyone

6    ever inform you, that they appealed that order, and "that

7    order" being the one that you have right in front of you?

8                MR. ESSNER:    Objection.   Privilege.   Compound.

9                THE COURT:    Alright.   The compound objection is

10   sustained.

11        Q.     (By Mr. Cotchett) Did anyone ever tell you that

12   the order you have right in front of you was appealed to

13   the Court of Appeal?

14        A.     Not that I can recollect.

15        Q.     Who made the decision to purchase the property?

16   And the property in question, of course, is Martins Beach.

17        A.     I would usually make that decision.

18        Q.     I'm sorry?

19        A.     I would usually make that decision.

20        Q.     Okay.    Do you know who Mr. Manowitz is?

21        A.     Mr. Manowitz?

22        Q.     Yes.    Does that ring a bell with you, a County

23   employee?    I'll help you along.

24        A.     No, I don't.

25        Q.     Did you ever discuss with Mr. Baugher the access

26   problem in general?
                                                                 268


1              Now, by "access problem in general," let me be

2    more specific.   The front gate on the property?

3              MR. ESSNER:    Objection.   Vague.

4              THE COURT:    The objection is overruled.

5              THE WITNESS:    If you're asking me if I discussed

6    it with Mr. Baugher without the presence of counsel, I

7    would have to say not that I can remember doing that.

8         Q.   (By Mr. Cotchett) Okay.     Well, let's try this:

9    After your meeting with counsel, what was your

10   understanding about public access at the property?

11             MR. ESSNER:    Objection.   Overbroad.   Vague.

12             THE COURT:    Objection is sustained.

13        Q.   (By Mr. Cotchett) Just so we're clear, I'm

14   asking counsel -- excuse me, the witness.

15             After you left the meeting with counsel, what was

16   your understanding about public access at the property?

17             MR. ESSNER:    Objection.   Vague.   Overbroad.

18             THE COURT:    Yes.   It's not the issue of

19   privilege.   It's the issue that it's vague and ambiguous.

20             MR. COTCHETT:    Thank you.   Thank you.   Because

21   there is no privilege there.

22        Q.   (By Mr. Cotchett) Let's try it one more time.

23   Let me see if I can just do this more direct.

24             After you left the meeting with counsel and

25   Mr. Baugher, who was always there, what was your

26   understanding about public access at Martins Beach --
                                                                    269


1                MR. ESSNER:    Objection.

2                MR. COTCHETT:    -- in the year 2010?

3                MR. ESSNER:    Objection.    Vague.   Overbroad.

4                THE COURT:    Well, let's start here:    Do you

5    understand the question?      We'll start there.

6                THE WITNESS:    I understand what he's asking, and

7    I'm glad he specified a date.

8                THE COURT:    Okay.   Thank you.

9                Go ahead.    The objection is overruled.

10               THE WITNESS:    I do not honestly remember the

11   meeting that you referred to.

12        Q.     (By Mr. Cotchett) Okay.      At any meeting with

13   your counsel and Mr. Baugher where you discussed access,

14   quote, "What was your understanding about public access

15   after you left the meeting?"

16               MR. ESSNER:    Objection.    Vague.   Overbroad.

17               THE COURT:    Again, do you understand the

18   question?

19               THE WITNESS:    I think so.

20               MR. COTCHETT:    Go ahead.

21               THE WITNESS:    I would like him to repeat it.

22               THE COURT:    Why don't you repeat it -- well,

23   let's have the court reporter read it back.

24               MR. COTCHETT:    Thank you, Your Honor.

25      (The Last Question was Read Back as Above Recorded.)

26               THE WITNESS:    I don't recollect.
                                                                 270


1         Q.   (By Mr. Cotchett) Same question but this way:

2    After you left the meeting with counsel, what was your

3    intent with respect to public access at Martins Beach?

4              MR. ESSNER:    Objection.   Overbroad.   Vague.

5              THE COURT:    No.   The objection is overruled.

6              THE WITNESS:    I had very much -- my intent, given

7    we are a nation of laws, was to find out what the law says

8    on the question.   It isn't a question of intent.    It's a

9    question of facts of law.     And my goal -- my interest has

10   been in finding out what the law has to say about it.

11        Q.   (By Mr. Cotchett) Why didn't you go to the

12   Coastal Commission and seek permission?

13             MR. ESSNER:    Objection.   Privilege.

14             THE COURT:    Well, unless we get into a

15   conversation with his attorneys, that would be privileged.

16   But, at this point, the question does not seem to ask for

17   privileged conversation, so the objection is overruled.

18             THE WITNESS:    This question was -- cannot be

19   answered without going into privileged information.

20        Q.   (By Mr. Cotchett) I'm not asking you for any

21   privileged information.    I'm asking about you.

22             You just told us about the Constitution.     Why

23   didn't you go to the Coastal Commission and seek permission

24   to close the gate?

25             MR. ESSNER:    Objection.   Privilege.   It could be

26   based on the advice of counsel.
                                                                271


1                THE COURT:   Well, that's what we need to find

2    out.

3                THE WITNESS:   With matters like this, I would

4    rely on the advice of counsel.      So I cannot tell you why I

5    did or didn't personally go to the Commission.     That would

6    not be normal for me.

7           Q.   (By Mr. Cotchett) Did you discuss with

8    Mr. Baugher locking the gate in the year 2010 or 2011 out

9    front?

10          A.   I believe I previously answered this question.

11          Q.   That --

12               THE COURT:   There hasn't been an objection, so go

13   ahead and answer that question, please.

14               THE WITNESS:   I have previously stated that all

15   such discussions happened in the presence of counsel.

16          Q.   (By Mr. Cotchett) Let me see if I understand

17   that.

18               All I want to know is this:    Did you tell

19   Mr. Baugher -- and I hear what you're saying, in the

20   presence of counsel -- "Please lock the gate"?

21          A.   No.   I did not state that at any specific time

22   that I can recollect.

23          Q.   At any time, did you?

24          A.   Not that I can recollect.

25          Q.   So that we're here, then, we are getting right to

26   it.    You never told Mr. Baugher to lock the gate since you
                                                                    272


1    owned it?

2         A.     Mr. Baugher is the operating manager of the

3    property, and he makes those decisions.

4         Q.     So he locked the gate; is that right?      Is that

5    what you're saying?

6         A.     I would assume he makes decisions on when the

7    gate is open and closed.

8         Q.     Okay.   So Mr. Baugher, who is sitting right in

9    the front row here, made the decision to lock the gate at

10   Martins Beach?      Is that your testimony?

11        A.     I'm presuming he made that decision.

12        Q.     And may I ask very politely, who instructed him

13   to do that?

14               MR. ESSNER:    Objection.    Asked and answered.

15               THE WITNESS:    I did not instruct him to do that.

16               THE COURT:    I'm sorry.    What's the objection?

17               MR. ESSNER:    Asked and answered.   And lacks

18   foundation.

19               THE COURT:    Well, if anyone, of course.

20               Let's restate the question.

21               THE WITNESS:    I'm sorry?

22               THE COURT:    Hold on just a minute.

23               THE WITNESS:    I'm sorry.    I missed what you had

24   to say.

25               THE COURT:    That's okay.    Thank you.

26               Let's go back to the question here.
                                                                   273


1                Alright.   So the question was:    "May I ask very

2    politely, who instructed him to do that?"

3                And your answer was, "I did not instruct him to

4    do that."

5                And then we got off on our objections.      Okay.

6    Go ahead.

7                THE WITNESS:    So I would not know who instructed

8    him or who he consulted.

9                MR. COTCHETT:    But --

10               THE WITNESS:    I would presume he consulted

11   counsel.

12          Q.   (By Mr. Cotchett) I see.      But we do know as a

13   fact that the gate was locked on a regular basis after you

14   left -- excuse me.     After you purchased the property?

15               MR. ESSNER:    Objection.    Misstates the testimony.

16   Lacks foundation.

17               THE COURT:    Alright.    Restate the question.

18               Objection is sustained.

19          Q.   (By Mr. Cotchett) But we do know that after you

20   bought the property, since then, the gate has been locked;

21   is that right?

22               MR. ESSNER:    Objection.    Overbroad.   Misstates

23   the testimony.

24               THE COURT:    No.   Do you have knowledge of that,

25   sir?

26               MR. ESSNER:    Lacks foundation.
                                                                274


1                THE COURT:   The objection is overruled.

2                THE WITNESS:   I believe the gate has, from time

3    to time, been locked.

4         Q.     (By Mr. Cotchett) And the purpose is to, as the

5    owner, to prevent access; correct?

6         A.     The purpose is for Mr. Baugher to manage the

7    property.

8         Q.     Which would mean if a gate is locked, you're

9    preventing public access; correct?

10        A.     I believe Mr. Baugher makes decisions on what the

11   purpose of locking or unlocking the gate is.

12               If you're asking me why any gate is normally

13   locked, it's to restrict access at particular times or when

14   it is locked.    That's a general statement about gates.

15        Q.     So it was the intent of locking the gate -- I

16   don't mean to laugh.

17               It was the intent of locking the gate to prevent

18   access to the beach; correct?

19        A.     Whose intent are you asking about?

20        Q.     The person that locked the gate.

21        A.     I would presume that's true.

22        Q.     Okay.

23        A.     But I can't state what other people's intent is.

24        Q.     I see.   So Mr. Baugher here, then, he's the man

25   in your mind that made the decision to lock the gate?

26        A.     Mr. Baugher manages the property, consults with
                                                                   275


1    counsel and others, and makes those decisions.

2         Q.   I see.    At one point, since you've owned the

3    property, guards were put out at the gate.       Did you have

4    knowledge of that?

5         A.   I heard subsequently there were.       I wasn't aware

6    of it.

7         Q.   You weren't what?      I apologize.

8         A.   I wasn't aware that that was happening until

9    afterwards.

10        Q.   So you mean Mr. Baugher just, on his own, put

11   guards out there?

12        A.   You should ask him, not me.

13        Q.   We will, trust me.     Trust me on that one.

14        A.   I do not manage the property on a day-to-day

15   basis, and I don't make those decisions.        I trust his

16   decisions.

17        Q.   But you were aware that he put guards out there

18   to block the property, right, at some point?

19             MR. ESSNER:    Objection.   Asked and answered.

20             MR. COTCHETT:    No.

21             THE COURT:    Do you understand the question?

22             THE WITNESS:    Yes.   I think I do.

23             THE COURT:    Okay.

24             THE WITNESS:    Let me try and answer it for you.

25             MR. COTCHETT:    Yeah.

26             THE WITNESS:    I was aware after the guards were
                                                                   276


1    posted, that there were guards posted.       I cannot tell you

2    how I became aware of that.

3         Q.     (By Mr. Cotchett) And what was your reaction to

4    the fact when you found out that guards were posted out

5    there?    Did you say, that's good?     That's bad?   What was

6    your reaction?

7                MR. ESSNER:    Objection.   Lacks foundation.

8                THE COURT:    Objection is sustained.

9         Q.     (By Mr. Cotchett) Did you make any comments to

10   Mr. Baugher about unlock those gates, tear down that wall,

11   Mr. Gorbachev?

12               MR. ESSNER:    Objection.   Argumentative.   Silly.

13               THE COURT:    Objection is sustained.

14        Q.     (By Mr. Cotchett) You remember that famous

15   statement, don't you?

16        A.     No, I don't.

17        Q.     So poor Mr. Baugher here made all of those

18   decisions about locking the gate and hiring guards.          By the

19   way, did you know some of the guards were armed?         Were you

20   ever told that?

21               MR. ESSNER:    Objection.   Compound.

22   Argumentative.

23               THE COURT:    Objection is sustained.     It's

24   compound.

25        Q.     (By Mr. Cotchett) Let's break it up.

26               So Mr. Baugher made all of those decisions about
                                                                  277


1    having guards there; correct?

2               MR. ESSNER:    Objection.   Asked and answered.

3               THE COURT:    Objection is sustained.

4         Q.    (By Mr. Cotchett) Did you know that some of the

5    guards were armed?

6               MR. ESSNER:    Objection.   Lacks foundation.

7               THE COURT:    Restate the question.

8         Q.    (By Mr. Cotchett) Did you know that some of the

9    guards at the gate that's locked were armed?

10              MR. ESSNER:    Objection.   Lacks foundation.

11              THE COURT:    It does lack foundation.

12              Objection is sustained.

13        Q.    (By Mr. Cotchett) You know the gate we're

14   talking about, the guards that were put out there?       Did

15   you know that -- were you ever told that -- I apologize --

16   that some of them were armed with guns?

17              THE COURT:    You can answer that question.

18              THE WITNESS:    No.   I was not told that.

19        Q.    (By Mr. Cotchett) Would it surprise you?

20              MR. ESSNER:    Objection.   Argumentative.

21              THE COURT:    Objection is sustained.

22        Q.    (By Mr. Cotchett) Let's see if we can close with

23   this:   Other than by your attorneys, what have you been

24   told about the public's historical use of the property?

25        A.    Other than by my attorneys, I don't have a

26   recollection of what specifically I have been told or not
                                                               278


1    told.   I have read some of the press.

2         Q.   What have you read about the historical use of

3    the property?

4         A.   That the Deeneys ran a business there, opening

5    and closing the gate for parking.     That's my impression.

6    Sometimes they opened it.     Sometimes they closed it.

7    That's my impression.

8         Q.   When you bought the property from the Deeneys,

9    they told you there was public access, did they not?

10             MR. ESSNER:    Objection.   Lacks foundation.

11   Argumentative.

12             THE COURT:    No.   Objection is overruled.

13             You may answer the question.

14             THE WITNESS:    I actually don't recollect that

15   many years ago what they did or didn't tell me,

16   specifically.

17        Q.   (By Mr. Cotchett) Well, when you say "that many

18   years ago," I know we're all getting old.    My hair is gray

19   and your hair is gray.    But this is just a few years ago

20   when you bought the property; right?

21             MR. ESSNER:    It's not a few years ago.   Vague.

22             MR. COTCHETT:    I apologize.   Wait.   It is vague.

23        Q.   (By Mr. Cotchett) In other words -- let me see

24   if I can get at it this way:     You bought the property from

25   the Deeneys; right?

26        A.   I believe so, yes.
                                                                  279


1         Q.    Okay.   Is it your testimony that they never told

2    you that road was for the public to have access to the

3    beach?    Is that your testimony?

4         A.    I don't recall them ever telling me the road was

5    for public access to the beach.

6         Q.    Did you know that they allowed cars to go down

7    and charged for parking?

8         A.    I believe they charged for parking, yes.

9         Q.    And if you're going to charge for parking -- and

10   I don't want to get argumentative here -- but you have to

11   start your car and go down the road, do you not?

12              MR. ESSNER:    Objection.   Argumentative.

13              THE COURT:    I'm going to allow it at this point.

14              Go ahead.

15              THE WITNESS:    Yes.   But --

16        Q.    (By Mr. Cotchett) But what?

17        A.    Whether they allowed for parking or charging for

18   driving the road, I couldn't tell you.

19        Q.    So as you sit here today, as you sit here today,

20   you, the owner of the property, never made the decision to

21   lock the gate and hire guards?      It was only Mr. Baugher?

22              MR. ESSNER:    Objection.   Asked and answered.

23              MR. COTCHETT:    No.   As we sit here today.

24              THE COURT:    It's compound.    So break it down,

25   please.

26        Q.    (By Mr. Cotchett) As we sit here today, it was
                                                                 280


1    Mr. Baugher that made any decisions on the gate since you

2    bought the property?

3         A.   My intent, as I've stated before, is to find out

4    what the law says about the issue of what is public access

5    and what is not and that has been my intent.

6              What specific decisions were made by people in

7    determining that, I have left up to others.

8         Q.   Okay.   So it was your --

9         A.   I hope that's at least clear.

10        Q.   Good.   So -- just so we're clear, and we can

11   finish with this, it was your intent to provoke a lawsuit

12   so we could get a decision; is that correct?

13             MR. ESSNER:    Objection.   Argumentative.

14             THE COURT:    As to the word "provoke," objection

15   is sustained.

16        Q.   (By Mr. Cotchett) So it was your intent to have

17   someone come and file papers to get a judicial decision on

18   the public access?   Is that your point?

19        A.   Have I said that?

20        Q.   I thought I heard you say that.

21        A.   I don't think I said that.

22        Q.   What was your intent?

23        A.   My intent was to determine what the law says on

24   this issue, not have public opinion determine the issue but

25   facts of law determine the issue.     That was my intent.

26   That was my intent in having Mr. Baugher manage the
                                                                281


1    property and for retaining counsel to advise.

2         Q.    And I appreciate that comment.

3               Did anyone besides your lawyers here ever tell

4    you, other than Judge Grandsaert's order that you have in

5    front of you, that you had to go to the

6    California Coastal Commission first to decide that?

7               MR. ESSNER:    Objection.    That is a misstatement

8    of law.

9               THE COURT:    He's just asking if anyone discussed

10   that with him other than his attorneys.

11              Go ahead.    You may answer the question.

12              THE WITNESS:    Not that I recollect sitting here.

13              MR. COTCHETT:    Thank you, Your Honor.   I have

14   nothing further.

15              THE COURT:    Thank you.

16              MR. ESSNER:    Just one moment, if I could.

17              THE COURT:    Yes.   Are there any questions by the

18   defense?

19              MR. ESSNER:    We have no questions, Your Honor.

20              THE COURT:    Thank you very much, sir.   You may

21   step down.

22              THE WITNESS:    Thank you.

23              THE COURT:    It's a good time to recess, probably.

24              So we're going to recess for the afternoon.

25   What is the plan for tomorrow, for the next day?

26              Off the record.

				
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