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T <br />2. Rental. <br />2.1 Basic Rent. For use of the Property in 2007, Lessee shall pay to City basic rent in the <br />amount shown in the schedule below, payable on or before November 1, 2007. Lease amount <br />due for acreage outside BPA Transmission Line Buffers is $60.00 /acre. Lease amount due for <br />acreage within BPA Transmission Line Buffers is $55.00 /acre. If the lease is renewed for <br />subsequent years, Lessee shall pay.basic rent on or before November 1 of each calendar year in <br />which die icase is in effect, as sirown on the schedute butow. <br />• 2007 - 153.00 -acre lease: <br />(123.50 acres X $60.00) + (29.50 acres X $55.00) $9,032.50 <br />e 2008 - 113.00 -acre lease: <br />(98.50 acres X $60.00) + (14.50 acres X $55.00) _, $6,707.50 <br />• 2009 — 73 -acre lease: <br />(63.50 acres X $60.00) + (9.50 acres X $55.00) = $4,332.50 <br />0 2010: - 40 -acre lease: <br />(35.50 acres X $60.00) + (4.50 acres X $55.00) = $2,377.50 <br />Actual acreage figures per year, for all years following 2007, will be verified when and if the lease is <br />renewed (see Section 3, below). <br />2.2 Additional Rent. As additional rent, Lessee shall pay the cost of all insurance which <br />Lessee is required to have. <br />3. Term. This lease shall begin on the 1st day of January, 2007, and terminate on December 31, <br />2007, provided, however, that this lease shall be automatically renewed on an annual basis through 2010 <br />by the parties, unless either party provides written notice of non - renewal and termination to the other <br />party no later than June 1, 2006 or June 1 of any subsequent year for which this lease is renewed. Prior to <br />any renewal taking effect, City will provide Lessee with an updated map, similar in format to Exhibit A, <br />depicting the property that is included in and excluded from the lease. City makes no express or <br />implied commitment to renew this lease in any year. <br />4. Use. Lessee may use the Property only to plant, cultivate and harvest a grass seed/straw crop and <br />for any incidental activities related to those farming activities. Lessee shall use no portion of the property <br />for grazing of domestic livestock. <br />5. Farm Deferral. Property is currently zoned for farm use. Lessee shall pay any taxes that are <br />imposed on the Property and any improvements thereon and shall indemnify and hold City harmless from <br />any tax liability for the Property or improvements during the term of the lease. Lessee shall be solely <br />responsible for obtaining any available tax deferral or exemption for which the Property may be eligible. <br />City makes no representation as to the availability or unavailability of any such deferral or exemption. <br />6. Farming Practices . Lessee shall farm the Property in an efficient and professional manner. The <br />Lessee shall employ the best practicable farming methods, as specified in material published by the U.S. <br />Department of Agriculture- Natural Resources Conservation Service (MRCS), to prevent pollution to the <br />water resources of the surrounding area and to reduce water run -off, soil erosion, and siltation. Lessee <br />shall not employ any farming methods which would cause a significant adverse impact on the waters of <br />the surrounding area. Lessee shall comply with all requirements of the U.S. Department of Agriculture <br />City of Eugene Contract 2007 -05407 <br />Heitzman Farm Lease Page 2 <br />