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OPTION AND SITE LEASE
(Telecommunication Facilities)
This Option and Site Lease (referred to as the “Lease”) is effective the _____ day of
_____, _____ (the “Effective Date”), between _____, whose address is _____ (the “Lessor”),
and _____, whose address is _____ (the “Lessee”). Lessor and Lessee may be collectively
referred to in this Lease as the “Parties,” or individually as a “Party.”
1. OPTION TO LEASE
a. In consideration of the payment of _____ Dollars ($_____) (referred to as the
“Option Fee”) by Lessee to Lessor, the receipt and sufficiency of which is acknowledged, Lessor
grants to Lessee the sole and exclusive option to lease the real property described in Exhibit “A”
to this Lease (the “Property”), on the terms and conditions set forth below (referred to as the
“Option”). The Option will be for an initial term of twelve (12) months, commencing on the
date stated above and ending at midnight on _____ (the “Option Period”). The Option Period
may be extended by Lessee for an additional twelve (12) months on written notice to Lessor and
payment of the sum of _____ Dollars ($_____) (the “Additional Option Fee”) at any time prior
to the end of the Option Period.
The Option granted to Lessee may be exercised at any time during the Option Pe riod, or
extension of the Option Period by Lessee paying to Lessor the sum of _____ Dollars
($__________) (the “Additional Payment”), which sum, together with the consideration recited
above, shall constitute the full consideration for the first monthly rental amount due unde r the
terms of the Lease, it being understood and agreed, however, that Lessee is not obligate d to
tender the Additional Payment or exercise the Option provided for in this Lease unless it shall
elect to do so. In the event the Additional Payment is not made to Lessor prior to the expiration
of the Option Period or the extension of the Option Period, the Option granted shall terminate
and Lessor shall retain all Option Fees. Any payment provided for in this Lease (including the
Additional Payment) may be made by check or draft, either directly or by mail to L essor at the
address stated above. If mailed, the payment shall be considered made as of the dat e of mailing.
No change in the address of Lessor or in the ownership of the Property affected by this Lease
shall affect any payment until thirty (30) days after Lessee receives notice of a c hange of address
or copy of a recorded instrument evidencing a change of ownership. If two or more persons are
entitled to receive any payment (including the Additional Payment), the proportionate part of the
payment to which each person is entitled may be made to such person, separately, a s provided
above. The payment tendered to such person shall maintain the agreement created by this Lease
as to such person and that person’s proportionate interest in the Property subject to this Lease.
b. If Lessee exercises the Option granted by this Lease, then Lessor leases, lets,
conveys, and transfers to Lessee, including all interest Lessor may acquire by operation of l aw or
otherwise, the sole and exclusive right to occupy the Property described in Exhibit “A” for the
purposes stated in this Lease, and sufficient area on the Property for the placement of facilities,
together with all necessary space for construction and unrestricted access to, in Le ssee’s
discretion, suitable sources of electric and/or telephone facilities (collectivel y the “Site”),
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including easements for access and utilities, as generally described and depicted in Exhibit “B”
(collectively referred to as the “Premises”).
c. It is understood and agreed by the Parties that for and during the Option Period
(as may be extended by Lessee and/or on the mutual consent of the Parties), and all e xtension
periods as may be exercised by Lessee under this Lease, Lessor shall grant to no other pa rty the
right to use Lessor’s Property for the installation and operation of radio or other wireless
communications equipment.
d. During the Option Period and any extension of it, and during the term of the
Lease if the Option is exercised, Lessor agrees to cooperate with Lessee in obtaining, at Lessee’s
expense, all licenses, permits, or authorizations required for Lessee’s use of the Premises from
all applicable government and/or regulatory entities (the “Governmental Approvals”) inc luding
appointing Lessee as agent for all conditional-use permit applications and zoning cha nge
applications, and Lessor agrees to cooperate with and to allow Lessee, at no cost t o Lessor, to
obtain a title report, zoning approvals and variances, conditional-use permits, perform surveys,
soil tests and other engineering procedures or environmental investigations on, under, and over
the Property necessary to determine that Lessee’s use of the Property and Premises will be
compatible with Lessee’s engineering specifications, system design, operations, and
Governmental Approvals. Lessee is granted the right to enter on the Property for such purposes
prior to exercising the Option, and without any obligation to make the Additional Payment.
2. TERM . If the Option is exercised by Lessee, this Lease shall be for an “Initial Term” of
five (5) years which shall begin on the date the Option is exercised (the “Commencement Date”).
3. EXTENSIONS. Extensions of the Initial Term of this Lease is granted to Lessee for up
to seven (7) additional five (5) year periods unless Lessee gives Lessor written notice of its
intention not to extend at least thirty (30) days prior to the expiration of the then current term. If
Lessee remains in possession of the Premises at the expiration of this Lease or any Rene wal
Term, without a written agreement, such tenancy shall be deemed a month-to-month tenancy
under the terms and conditions of this Lease.
4. a. RENT. The first monthly rent payment due for the first month of the Initial Term
shall be in the amount of _____ ($_____). Thereafter, the monthly rent for each remaining
month of the Initial Term shall be paid on or before the same day of the month as t he
Commencement Date.
b. EXTENSION PERIOD RENT. The monthly rent for each and every extension
period shall be the monthly rent in effect for the final year of the Initial Term or extension
period, as the case may be, increased by ten percent (10%), and payable on or before t he same
day of the month as the Commencement Date. At its option and at its sole discretion, Lessee
may prepay all or any portion of the rents due at any time prior to the due date.
5. SITE USAGE. Use of the Site by Lessee shall be for the purpose of, among other
things, the transmission and reception of wireless communication signals and for the
construction, maintenance, repair, or replacement of a multi-user wireless communica tions
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facility and all related accessories, towers, antennas, equipment or buildings and related
activities. Lessee shall obtain, at Lessee’s expense, all Governmental Approvals and may, prior
to or after the Commencement Date, obtain a title report, perform environmental and other
surveys, soil tests, and other engineering procedures on, under, around, and over the Site
necessary to determine that Lessee’s use of the Premises is feasible. Lessor agre es to reasonably
cooperate with Lessee at no out-of-pocket cost to Lessor, when requested, to perform such
procedures or obtain Governmental Approvals.
6. UTILITIES. Utilities required for the operation of the communications facility shall be
the sole responsibility of Lessee; however, Lessor agrees to cooperate with Lessee in its efforts
to obtain utilities from any location providing to or servicing utilities to Lessor.
7. LEASE TERMINATION. Personal property and fixtures of Lessee shall be removed to
a depth of 36 inches below grade by Lessee upon the expiration or termination of this Lea se, and
the Site shall be restored to as near its condition prior to Lessee’s operations as pra cticable,
reasonable wear and tear excepted, within sixty (60) days of the expiration or terminati on of this
Lease, weather permitting.
8. NOTICES. All notices, requests, demands, and other communications provided for in
this Lease shall be in writing and shall be deemed given if personally delivered or mailed,
certified mail, return receipt requested, or sent by overnight carrier to the respect ive address of
either Lessor or Lessee.
9. ASSIGNABILITY. If the estate of either Party is assigned, and the privilege of
assigning in whole or in part is expressly allowed, the covenants and provisions of this Lease
shall extend to each Party’s heirs, devisees, legal representatives, successors, or assigns.
Assignment of all or any part of this Lease by Lessee may be made to any person, company,
body, or other legal entity, in whole or in part and any assignee assumes all applicable rights and
obligations of Lessee under this Lease. Lessee may sublease all or any part of the Premises, and
any Sublessee assumes all applicable rights and obligations of this Lease. Additionally, Lessee
may mortgage or grant a security interest in this Lease and the Facilities, a nd may assign this
Lease and the Facilities to any mortgagees or holders of security interests, includi ng their
successors or assigns (the “Mortgagees”), provided the Mortgagees agree to be bound by the
terms and provisions of this Lease. In that event, Lessor shall execute consents to le asehold
financing as may reasonably be required by Mortgagees, and Lessor agrees to notify Lessee and
Lessee’s Mortgagees simultaneously of any default by Lessee and to give Mortgagees the sam e
right to cure any default as Lessee or to remove any property of Lessee or Mortgagees loca ted on
the Premises, except that the cure period for any Mortgagees shall not be less than thi rty (30)
days after receipt of the default notice, as provided in this Lease. All notices t o Mortgagees shall
be sent to Mortgagees at the address specified by Lessee on entering into a financia l agreement.
Failure by Lessor to give Mortgagees notice shall not diminish Lessor’s rights against Le ssee,
but shall preserve all rights of Mortgagees to cure any default and to remove any property of
Lessee or Mortgagees located on the Premises, as provided in this Lease.
10. INDEMNITY. Lessor and Lessee each indemnify the other against and holds the other
harmless from any and all costs (including reasonable attorneys’ fees) and claims of lia bility or
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loss which arise out of the use and/or occupancy of the Site by the indemnifying Party. This
indemnity shall not apply to any claims arising from the negligence or misconduct of t he
indemnified Party.
11. HAZARDOUS SUBSTANCES. Lessor represents that it has no knowledge of any
substance, chemical, or waste (collectively, the “Substances”) on the Site that are identified as
hazardous, toxic, or dangerous under any applicable federal, state, or local law, or regula tion.
Lessor and Lessee agree not to introduce or use and Substances on the Site in violation of any
applicable law or regulation.
12. TERMINATION. Lessee shall have the right to terminate this Lease at any time
without further liability if Lessee cannot obtain all certificates, permits, li censes or other
approvals (the “Approvals”) required from any governmental authority and/or any easements
required from any third party to operate the communications facility, or if the Approvals are
canceled, expire, lapse, withdrawn, or terminated, or if Lessor fails to have proper ownership of
the Site and/or the authority to enter into this Lease, or if for any other reason, Le ssee, in its sole
discretion, determines that it will be unable to use the Site for its desired purposes.
13. TAXES. Lessee will be responsible for payment of any personal property and other
taxes assessed on, or any portion of taxes attributable to, the Site. Lessor shall pay when due all
real property taxes and other fees and assessments attributable to the Site, however, L essee shall
reimburse Lessor for any increase of real property tax on the Site directly attributabl e to Lessee’s
operations on the Site. In the event Lessor fails to pay the real property taxes, then L essee shall
have the right but not the obligation to pay the taxes and deduct them from any am ounts due
Lessor under this Lease.
14. LESSOR PROTECTION. Lessee shall exercise special precautions to avoid damage to
Lessor’s facilities on the Property and assumes all responsibility for any and all loss or damage
to Lessor’s facilities caused by Lessee’s operations. Lessee shall make an imme diate report to
Lessor of the occurrence of any damage and agrees to make necessary repairs or reimburse
Lessor for the expense incurred in making repairs. Lessee shall indemnify, protect, defend, and
save Lessor harmless from any and all actions or causes of action, claims, demands, l iabilities,
loss or expense of whatever kind and nature, including reasonable attorneys’ fees and court costs
that Lessor may incur by reason of damage by Lessee’s operations to Lessor’s facilities.
The Parties agree that in the event the Facilities, Site, or Lessor’s Property a re damaged
by fire or other calamity (a “Casualty”), Lessee shall have the right to eithe r (i) repair or replace
the Facilities and/or restore the Site and/or those portions of Lessor’s Property which Lesse e
determines are reasonably necessary to the use and operation of the Facilities and/or the Site or
(ii) terminate the Lease and all rights, duties, and obligations of Lessee by del ivering written
notice to that effect within one hundred eighty (180) days from the date of the Casualty.
15. INSURANCE. Lessee shall maintain, at its sole cost during the term of this Lease,
commercial general liability insurance insuring Lessee and Lessor against liabil ity for personal
injury, death, or damage to personal property arising out of the use of the Site by Lessee. T he
insurance shall provide coverage in an amount not less than _____ Dollars ($_____) for property
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damage. Lessee shall provide Lessor with a certificate of insurance evidencing the coverage
which states that the carrier has insured Lessee for all liabilities under this L ease and that it will
not cancel or change any policy of insurance issued to Lessee except after thirty (30) days notice
in writing to Lessor. Lessor shall be added to the policy as an additional insured. The fact that
Lessee is required to furnish insurance in accordance with this paragraph or the fact tha t the
insurance is furnished does not and shall not relieve Lessee from its obligations to Lessor unde r
any provisions of this Lease, it being the intent of Lessee to protect Lessor and the Property and
that any insurance furnished pursuant to this paragraph shall be additional security to Lessor.
16. CONDEMNATION. In the event that all or substantially all of Lessor’s land on which
the Site is located is condemned by an authorized governmental or quasi-governmental authority,
Lessee may terminate this Lease on the date of the taking and each Party sha ll have the right to
maintain their own respective actions against the condemning authority for their respect ive
damages and neither Party shall have any interest in any award granted to the other. In the event
of such a taking, the rental shall be prorated to the date of the taking, and any excess prepaid rent
shall be promptly repaid by Lessor to Lessee.
17. STRUCTURAL MODIFICATIONS. In the event Lessee determines that it is
necessary to increase the height of an existing structure or a structural analysis determ ines that
structural modifications are required for the installation of Lessee’s equipment, Lesse e shall have
the right to perform the modifications at its sole expense.
18. SUBORDINATION AND NON-DISTURBANCE. If this Lease is subordinate to any
mortgage and/or land contract by Lessor, which from time to time may encumber al l or any part
of the Site, the mortgagee and/or vendor shall recognize (in writing and in a form ac ceptable to
Lessee) the validity of this Lease in the event of a foreclosure of Lessor’s interest and the right of
Lessee to remain in occupancy and have access to the Site as long as Lessee i s not in default of
its obligations under this Lease. Lessor and Lessee shall execute whatever instrume nts may
reasonably be required to evidence this subordination. In the event Lessor fails to make any
payment due under any mortgage and/or land contract, then Lessee shall have the right, but not
the obligation, to make the payment(s) and deduct them from any amounts due Lessor under thi s
Lease. If, as of the date of execution of this Lease, there is any mortgage, deed of trust, ground
lease, land contract or other similar encumbrance affecting the Property, Lessor agrees to use
commercially reasonable best efforts in obtaining from the holder of the encumbrance an
agreement that Lessee shall not be disturbed in its possession, use, and enjoyment of t he
Property.
19. COMPLIANCE WITH LAWS. Lessor represents that the Property (including, without
limitation, the Site) and all improvements are in compliance with al l building, life/safety,
disability and other laws, codes, and regulations of any governmental or quasi-governmental
authority. Lessee agrees that, subject to Lessor’s compliance with the terms of this pa ragraph,
any improvements constructed by Lessee on the Site and all of the operations of Lessee within
the Site shall be in compliance with all applicable laws, codes, and regulations.
20. QUIET ENJOYMENT. Lessee, on paying the rent, shall peaceably and quietly have,
hold, and enjoy the exclusive occupancy of the Site. Lessor shall not cause or permit a ny use of
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Lessor’s Property or the Site which interferes with or impairs the quality of the communications
services being rendered by Lessee from the Site, nor shall Lessor have unsupervised access to the
Site or to Lessee’s equipment.
21. WARRANTIES. Lessor represents and warrants that Lessor has full authority to enter
into and execute this Lease. If the Site is held in a trust, the Trustee must execute this Lease in
addition to any beneficiary.
22. FORCE MAJEURE. If Lessee is prevented from or delayed in commencing,
continuing, or resuming operations, or complying with the express or implied obligations created
by this Lease, by circumstances not reasonably within Lessee’s control, this Lease shall not
terminate and Lessee shall not be liable in damages so long as the circumsta nces continue (the
“period of suspension”). These circumstances include, but are not limited to the following:
conflicts with federal, state or local laws, rules, regulations and executive orders, acts of God,
strikes, lockouts, riots, wars, improper refusal or undue delay by any governmental agency in
issuing a necessary approval, license or permit applied for by Lessee, equipment failures, a nd
inability to obtain materials in the open market or to transport materials. This Lease shall not
terminate if Lessee shall commence or resume payments and other obligations wi thin 90 days
after the end of the period of suspension.
23. PROPORTIONATE REDUCTION. If this Lease covers less than the entire undivided
interest in the Property, then the monies, rents, and any extension payments provided for in thi s
Lease shall be paid to Lessor only in the proportion which the Lessor’s interest in the Property
covered by this Lease bears to the entire undivided interest in the Property.
24. LESSEE NON-COMPLIANCE. If Lessor considers that Lessee has not complied with
all its obligations, both express and implied, Lessor shall give written notice t o Lessee
specifically describing Lessee’s non-compliance. Lessee shall have ninety (90) days from
receipt of the notice to commence, and shall thereafter pursue with reasonable dil igence, actions
as may be necessary or proper to satisfy the obligation of Lessee, if any, with respect t o Lessor’s
notice. Neither the service of the notice nor the doing of any acts by Lessee in response to this
notice shall be deemed an admission or create a presumption that Lessee has fai led to perform all
its obligations. No judicial action may be commenced by Lessor for forfeiture of this Le ase or
for damages until after the 90-day period. Lessee shall be given a reasonable opportunity a fter a
final court determination to prevent forfeiture by discharging its express or implied obligat ion as
established by the court.
25. MISCELLANEOUS. The terms, covenants, and conditions of this Lease shall extend
to, bind, and inure to the benefit of Lessor and Lessee, their respective heirs, successors, personal
representatives, and assigns. The prevailing Party in any action or proceeding in court to enforce
the terms of this Lease shall be entitled to receive its reasonable att orneys’ fees and other
reasonable enforcement costs and expenses from the non-prevailing Party.
Lessor
Lessee
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(Acknowledgments)
Exhibit “A”: Description of the Property.
Exhibit “B”: Description of Easements.