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7J GRAZING LEASE U CA THIS GRAZING LEASE ("Lease") is entered into this % 'day of / .1/�rt r , 2008 between the City of Pleasanton(City or Lessor) and Al Spotorno (collectively, Spotomo or Lessee). RECITALS A. City owns certain open space property, commonly known as Pastures#1 and#2, adjacent to property owned by Spotorno, and the City is willing to lease such Pastures to Spotorno on the terms and conditions as provided in the Lease. B. Spotorno desires to lease the Pastures and is agreeable to the terms and conditions of this Lease. NOW, THEREFORE, in consideration of the promises herein, the parties agree as follows: 1. Lessor leases to Lessee for cattle pasturage/grazing purposes the real property depicted as Pasture#1, approximately 62 acres, and Pasture#2, approximately 41 acres, in Exhibit A to this Lease (the Pastures) for cattle grazing as provided in the City of Pleasanton Happy Valley Golf Course Grazing/Resource Management Plan by Sage Associates dated Nov. 2001 (the Grazing/Resource Management Plan). 2. Because the significant amount of fence repair work needed at the Pastures which Lessee will need to carry-out to make the Pastures usable by cattle, as well as the requirement that the City subject the Pastures to a burn program(which would have a cost to City) if there was no grazing program, City shall charge Lessee rent as follows: (a) for years one to three of the term of this Lease, Lessee shall pay no rent, but be required to fix and maintain the Pasture fences, and graze cattle on the Pastures as required by this Lease and the Grazing/Resource Management Plan; and (b) for years four and five of this Lease, so long as Lessee has cattle graze the Pastures as required by the terms of this Lease and the Grazing/Resource Management Plan, Lessee shall pay one-half(1/2) of the a variable rate charged by the City and County of San Francisco Public Utilities Commission (Commission) for similar watershed property that the Commission leases for grazing purposes in Alameda County; the rate shall be based on animal unit months (AUM), i.e., the number of cattle on the property for certain periods of time. 3. Lessee shall keep no more than twenty-two (22) units on the Pastures at any time, unless prior written approval is given to the Lessee from the City's Rangeland Manager and the Page 1 of 6