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ATTACHMENT 2 DRAFT GRAZING LEASE THIS GRAZING LEASE is entered into this day of , 2007 between the City of Pleasanton (City or Lessor) and Timothy S. Koopmann, Trustee of the Koopmann Family Trust (Koopmann or Lessee). RECITALS A. City and Koopmann entered into an Agreement for the Acquisition of Conservation Easement and Long Term Grazing Lease by which Koopmann agreed to sell City a conservation easement on certain property Koopmann owns and, as partial consideration for such sale, City agreed to lease to Koopmann for grazing purposes a portion of the open space property City intended to purchase. B. City has now purchased the open space property and is willing to lease such property to Koopmann on the terms and conditions as provided in the Lease. C. Koopmann desires to lease this property and is agreeable to the terms and conditions of this Lease, including that there will be trails on the leased Property, that the City will conduct a burn program on the leased Property, and that the primary purpose of this Lease is to protect wildlife and endangered species habitat. 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 described in Exhibit A to this Lease and as depicted in Exhibit B to this Lease (the Property or the leased Property). 2. The rental of the Property herein leased shall be calculated on 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. For the first year of this Lease, Lessee shall pay Lessor the sum of $14.25 per AUM, which payment is due in two equal installments, on July 1 and November 1 of each year. Annually, the parties will review the rates charged by the Commission and arrive at anew rate per AUM. 3. If Lessor determines the Property is being overgrazed, the number of cattle must be reduced within 30 days of such notice to Lessee. In this event, the rent shall be reduced or refunded on a pro rata basis. 4. Lessee shall cause the Property to be grazed in compliance with the Grazing Resource Management Plan, dated 2003, as amended, that Lessor has adopted for the Property. 5. This lease shall commence on , 2008 and shall continue for 10 years, to and including , 2018, unless the Lessee gives 30 days written