HomeMy Public PortalAbout07) 7D Approval of the First Amendment to Building and Land Lease Agreement with CCATT LLC for Cellular Tower FacilityDATE:
TO:
FROM:
ADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
October 20 , 2015
The Honorable City Council
Bryan Cook , City Manager
By: Tracey Hause , Administrative Services Director
AGENDA
ITEM 7.0.
SUBJECT: APPROVAL OF THE FIRST AMENDMENT TO BUILDING AND LAND
LEASE AGREEMENT WITH CCATT LLC, FOR A CELLULAR TOWER
FACILITY
RECOMMENDATION:
It is recommended that the City Council :
a) Approve the First Amendment to Building and Land Lease Agreement (First
Amendment) (Attachment "A ") with CCATT LLC , for a cellular tower facility ;
b) Approve the Memorandum of First Amendment to Building and Land Lease
(Attachment "B"); and
c) Authorize the City Manager to sign the First Amendment.
BACKGROUND:
1. On October 1, 1996, the City entered into a Bui lding and Land Lease Agreement with
the predecessor (Los Angeles Cellular Telephone Company) of CCATT LLC ., for a
cellular tower facility on the City's property located at 5938 Kauffman Avenue
(Attachment "C"). The lease term initially expired in 2001 , however the lease provided
for three extensions of five years each , with the final extension expiring on
September 30 , 2016 .
2 . In September 2014 , Crown Castle , a subs id iary of CCATT LLC , approached the City
offering an amendment and extension to the original lease agreement.
----------·-------------------
City Council
October 20 , 2015
Page 2 of 3
ANALYSIS:
Over the last year, staff has been working closely with a representative from Crown Castle
and the City Attorney's office in drafting the First Amendment for the cellular tower facility
currently located on the parce l of the Civic Center building . One of the considerations
during this process was the use of the Civic Center parcel and if there would be a needed
use in the future that could not accommodate the current cellular tower facil ity. Since
there are no immediate plans for an alternative use for this parcel , a First Amendment is
appropriate at this time . Further, we have stipulated in the First Amendment that the City
has the right to exercise a relocation process of the cellular tower facility with no less than
twelve months written notice to CCATT, LLC . However, if relocation does occur, the City
will be responsible for 50 % of the costs , not to exceed $100 ,000 .00 .
The remaining terms of the lease remain un changed with the exception of the escalator of
the annual increase of the renta l rate . The monthly rent is increased annually based on
the Consumer Price Index (CPI ). In the current agreement, in no event would the increase
in the rent calculated for any one year period be less than three percent and more than
five percent. This amendment stipulates in no event would the increase in the rent
calculated for any one year period be less than three percent and more than four percent.
As inflation rates were higher in the 1990 's , th is capped th reshold of four percent is
reasonable for the current economic environment. The annual i ncreases during the term
of the current agreement have general ly been between three and four percent.
CONCLUSION:
In order to continue current arrangements with the land and build ing lease for the cellular
tower facility on the City's property located at 5938 Kauffman Avenue , a First Amendment as
proposed must be executed prior to September 30, 2016 .
FISCAL IMPACT:
The City currently receives approximately $28 ,270 .04 annually in rents related to this land
and building lease based on a monthly rent of $2 ,439 .17 . As per the terms of the lease ,
the City can expect an estimated additional $800 to $1 ,000 ann ually as a result of the CPI
escalator and the terms discussed above . Further, in consideration for full execution of
the First Amendment , CCA TT, LLC , will remit $10 ,000 .00 to the City , considered a signing
bonus.
City Council
October 20 , 2015
Page 3 of 3
ATTACHMENTS:
A Proposed Fi rst Amendment to the Building and Land Lease
B . Memorandum of First Amendment to Building and Land Lease
C . Building and Land Lease dated September 25, 1996
FIRST AMENDMENT TO
BU ILD ING AND LAND LEASE
ATTACHME T A
T HI F IR T AME DME T TO BUILDING A D LA D LEASE (the .. First
Amen dm e nt ") is ente re d into this __ day of ______ , 2015 (the '·Effect ive D2te '"). by
and between C ITY OF TEMPL E CITY , (he re in afte r refe rred to as "Land lord") and CCA IT
LLC , a De laware limited li abi lit y com pan y it s a tt orne y in fac t (hereinafte r referred to as
··Te nant ").
REC ITAL
WI !ER E . Landlord and Lo s Ange le s Cellu lar Teleph o ne Compan y ("·Original
Te nant ") ent e re d into a Buildin g a nd Land Lease da ted September 25 , 1996 (th e ''Lease ")
w here by Original Tenant leased certain real property. toget her with acces s and utility ea sement s,
located in Los Ange les Co unt y. Ca li fo rnia from La ndl ord (the '"Premi ses'"), a ll loca ted withi n
certa in rea l propert y owned by Landlord (the "Pr o pert y''); and
WHEREA , CCATT LLC is cu rr entl y th e tena nt unde r the Lea se as ultim ate succ ess or in
interest to th e Origina l Tenant ; and
WHEREA , the Premi se s ma y be used fo r the purpo se of con s tructing , maintainin g and
o pe ratin g a co mmuni ca ti ons f ac ility, in cl udin g tower s tructure s, equ ipm e nt she lt er s, cabi nets ,
meter boa rds , utilities , ant enna s, equipment , an y rela ted improvement s and str ucture s and uses
in c ide nt a l thereto; and
WHEREA , the Lease had an initial term th at co mm enced on Oc tobe r I, 19 96 and
exp ired on eptember 30 , 2001. The Lease prov id e s for three (3) exten sion s of fi ve (5 ) ye ars
each. According to th e Lease, th e final ex te ns ion exp ire s Sep tember 30, 20 16 ; and
WHEREA , Landlord and Tenan t desire to am e nd the Lea se on the tem1 s and c ondit ions
conta in ed herein .
NOW THEREFORE, fo r good and valuabl e co ns iderati on, th e rece ipt and suffici e nc y of
wh ich are acknowledged, Landlord and Tenant agree as follows:
Site Name : 13uld\\ uvTcmpl c Ovl y • C 5 13
Bu;111ess Un llll 844957
ATTACHME T A
I . Recitals : De fined Terms. The partie s acknowledge t he acc ur acy of th e fo rego in g
recital s. Any capitalized terms not defi ned herei n s hall have th e meanings ascribed to them in
the Lea se.
2. Te rm . T he fir s t sente nce of ec ti on 3 of th e Lease. and only th at sentence. is
hereby deleted in it s entirety a nd th e following is in se rted in its pl ace:
Th e Lease wi ll automati ca ll y be ex tended for up to nin e (9) additional te rms 0!.
fi ve (5) years each (each a "Renewa l Term .. ) on th e same terms and conditi ons se t
fort h in this Lease for th e Initial Lease Term. unless Tenant notifies La nd lord, in
writin g, of it s inten ti on not to renew at leas t ninety (90) days pri or to the
ex pirati on o f th e th en-current fi ve (5) ye ar term . Such no ti ce sha ll be deemed
give n upon th e mailin g of s uch no ti ce to La ndl o rd. The Initi al Lease Term and
each Renewal Term arc collective ly referred to hereinafter as the .. Tem1··.
Landlord and Tenant hereby ac kn owled ge that Te nant has exerc ised thr ee (3) Re newal
Term s, leaving a ba la nce of six (6) Renewa l Te rm s. with the final ex tens ion exp ir ing on
eptember 30 . 2046.
3. Co nsid e rati on. Te nant w ill pay to Landlord a one-time am ount o f Ten Thousand
and 00/100 Dollars ($1 0,000.00) fo r the full execution of this Fi rst Amendment (the
··conditi o nal tgnmg Bonus'} Tenant w ill pay to Landlord th e Co nditional igning Bonus
w ithin s ixty (60) da ys of Landlord 's exec ution of thi s First Amendment. l n th e event ~hat this
Firs t A mendmen t (and a ny app licable memorandum ) is not full y executed by both Land lord and
Tenant for any reaso n, Tenant shall have no ob li gat ion to pay the Cond it iona l S ig ning f .onus to
Land lord.
4. Rent. T he filth se ntence of ec ti on 5(b) of the Lease . and only th at sen tence , is
hereby del eted and th e fo ll owin g is inserted in its pla ce:
Commencing o n October I. 20 15. and on the an ni e rsary of that date each year
th ereafte r (the .. Adj us tment Date"), the monthly Ope rati onal Pha se Rental Rat e
s hall increa se based on th e Cons umer Pri ce Ind ex published by th e Bureau of
Lab or and ta ti sti cs of the Unit ed States Departm ent of Labo r for a ll Urban
Consumers. U Cit y Average c·C PI-U") indicat or and s hall be determined by
dividing the CP I-U in dicator published three (3) mo nth s prior to the Adjustment
Date , by th e C PI-U indi cator pub li shed o ne (I) year and three (3) month s prior to
th e Adj ustment Dat e , and multiply in g the res ult ant num ber by th e most recent
monthl y Operat ion a l Ph ase Rental Rate. In no eve nt sha ll th e in c rease in rent
calculated for a ny one (I ) year period be less than three percent (3%) o r exceed
four percent (4%) of th e most recent monthly Operati o nal Pha se Renta l Rate.
Si te Numc · 13 aldwinffcmplc Ov ly -C5 13
13usmc ss Unu #· 84-19 57
2
ATTACH ~E T A
5 . Relocation. In the event that Landl o rd det e rmines in good fai th that the Premises
are need e d for p ubl ic purposes, Landlord s hal l have the ri ght to require re locati on of Tenant·s
Communicatio n s Faciliti es, or a ny part the reo f, to an altern a te gro und locati on provided th a t (i)
the rel ocati o n shal l be p erfo rmed exc lu s ive ly b y Tenant or its agent s during th e R e locati on
Pe ri od , a s defi ned below, (i i) the relocation s hall not result in any interruption o f the
co mmunications serv ices prov ided by Tena nt to it s customers, including , but no t limite d to ,
Tenant 's continuous a ccess, m ai nte nance a nd operatio n of Tenant 's equipm ent, un ti l such time
that a ll te nants, s ubtenants and s ublicensees th at ha ve be en p e rmitted by thi s Leas e a re
s uccessfully r e l ocated , and (iii) the re locatio n s hall not impair, or in a ny m an ne r a lt e r, the quality
of communi cati on s serv ices provid e d by Tenant to it s cus to m e r s o n and from the Re locati o n Si te
as d e fined below.
(a) Re locati o n Process. To exerctse t he re location ri ghts , Landl o ·d s hall
prov id e written noti ce to Ten ant n ot less than twelve ( 12) m o nths prio r to the re location date and
s hall propose a n alternate s ite to which Tenant may re locate Tenant 's e quipment ("Al ternate Si te
Location"). Ten ant sh a ll have s ixty (60) day s from t he date of the not ice to evalu a te the
A lte rnate Site Location , including . but n o t limited t o. co nducting test s to determine the
techno logical feasib ility of the Alternate Si te Locati o n and o btai ning written approval of a ll
w ireless telecommunications providers o n th e Pre mi ses that have been permitted by thi s Lease.
l fTenan t fajJs to approve the Al ternate Site Location in writin g w ith in sa id six t y (60) da y peri od ,
Ten a nt wi ll be deemed to h ave no t a pproved s uch A lt e rna te S it e Locati on. If Tenant does n ot
a pprove s uch A lte rnate S ite Locati o n , La ndl ord m ay th en propose a n o ther Alternate S ite
Locati on by providing n otice t o T e nant in the m a nne r set forth above. Upo n Tenant's approva l
of any proposed A lt erna te S ite Location, both pa rti es w ill ente r into a wri tt e n agreement
conce rning th e re location of T e nant 's e q ui pme nt ('R e location Agreeme nt") to the Alternate Site
Loca t io n ("'R e locati o n Site"). Land lord sh a ll und e rtak e re ason able efforts t o pro .r ide an
A lt e rnate Site Locat io n acceptable t o Tenant. If n o A lt e rnate Site Loca ti o n i s avai lahle o r if
Tenant d oes n ot approve an A lt ernate S it e Location, Landl o rd m ay , up on twe lve (12) months'
w ritte n noti ce , terminate the Lease in acco rd a nce wi th the not ice req uirements s e t forth in th e
Lease.
::.11e Name : Baldwm!Tcrnp le Ovl y · C5 13
Busmc ss Unit #· 844957
3
ATTACIIME T A
(b) o Addition a l Terms. pon rel ocati on of Tenant 's equipment, al l
refere nces to the Pr em ises in the Le ase s hal l be de emed to refer to the Re loca ti o n ite (including
a ny access and utilit y easements). The Re lo cati on Site s ha ll be s urveyed by a licen se d surve yo r
at th e so le cost of Te nant , in wh ich eve nt such sur vey sha ll replace and s upersede th e de scription
of the Pr emises unde r the Lease. Unless o th erwise prov id ed in th e Re loca ti o n Ag reement or any
oth er wr itt e n agree me nt of the Parti es, the re location of Te nant 's equipmen t shall n o~ affect ,
a lt e r, mod ify or oth e rwi se chan ge any of the te rm s and condit ion s of the Lea se.
(c) Relo ca ti on Pe ri od. The "Re locati o n Period" sha ll mean th at p~r i o d of
time commencing on the date Tenant ha s rece ive d all required permits and a ppr ovals for the
Rel ocati o n it e and e nding nin ety (90) da ys th ereafter. The relocation of Te nant 's equipment to
th e Re loca ti on ite sha ll be su bstantia ll y co mplet ed wi thin the Relocation Pe riod , to the extent
re aso nabl e feasib le.
(d ) Re locati o n Cos t. Landl ord and Tena nt shall eac h be re s po ns ib le for fifty
perce nt (50%) of th e cost of re locati o n, pro vided th a t Land lord's respons ibilit y for re loca tion
cos ts sha ll not excee d One Hund red Th o usa nd and 00/100 Dollars ($1 00 ,000.00 ). Landlord sha ll
ha ve the o pti o n to pa y it s share o f the re loca tion co st to Tenant e ith er in the form of a cas h
pay ment or in the form of rent abate ment.
6. Righ t o f First Refusa l. I f Landl o rd receives an offer from any pe rso n c'r ent it y
that owns towe rs o r o ther wire less te lecommunications facilitie s (or is in th e bus :nes s of
acq uirin g Landl o rd 's int eres t in th e Le ase) to purchase fee tit le, an ease ment, a lea se, a licen se,
o r any oth e r inte res t in the Prem ises, or Land lo rd 's int eres t in the Lease, o r an op ti on for any of
th e forego in g, Landl ord sha ll pr ov ide writt e n noti ce to Tenant of sa id offe r, and Te nan t shall
have a ri g ht of first refu sa l to ac quire such int e re st on the sa me term s and cond iti o ns in th e offe r,
ex cludin g an y term s or co ndi tion s whi ch are (i) not impo se d in goo d fa ith or (ii ) direc tl y o r
indire ct ly des ig ned to defeat or und ermine Tenan t's poss esso ry or eco no mi c intere st in the
Propert y. If Landl o rd 's noti ce covers portion s of Landl ord 's parent parce l beyond th e P remises,
Te nant may e lec t to acqui re a n interes t in o nl y the Pr em ises , and th e co ns id erati on s hall be pro -
ra te d o n a n acreage basis. Landlord's no ti ce s ha ll include th e pro spec t ive bu yer's name. the
purchase price a nd/o r o ther conside rati o n bein g offered , the o th er terms and co nditions of the
Sllc Na me : 13uldwuvrcmp lc Ovly-C5 13
Bu smcss Unn # 844 957
4
ATTACH IE T A
o ffer, the du e dili ge nce peri od, th e propose d cl os in g date and , if a porti o n of La ndl ord ·> parent
parce l is to be so ld , lease d or otherwise con veye d, a descrip tion o f sa id porti on. If th e
Landlord 's no ti ce shall pro vid e for a due diligence period of less th an s ixty (6 0) da ys, th en the
due dili gence period s ha ll be extended to be sixty (60) days fr o m exe rc ise of the ri ght of fir st
refusa l and clos in g shall occur no ear li e r tha n fift een da ys thereaft er. lfTe nant doe s not exercise
it s ri g ht of fir st re fusal by writte n notice to Landl o rd g ive n within thirt y (30) days , Landl o rd may
co nvey th e property a s described in th e La ndl o rd 's no ti ce. lfTenant d ec lin es to exe rc ise it s rig ht
of fir s t re fu sa l. th e n the Le ase sha ll con tinue in full fo rce a nd effec t an d Tenan t 's ri g ht of fi rst
refu sa l sha ll s urv ive an y s uch co n veyance. Tenant sha ll have the ri g ht , at it s so le di sc re ti o n, to
ass ign the righ t of fir st refusa l to a ny perso n or e ntity, e ith er separate fro m an ass ig nm en t of th e
Lea se or a s part of an ass ignm e nt of th e Lea se. Su ch ass ign ment ma y occu r e ith er pri o r to o r
afte r T enant's receipt of Landl o rd 's notice and th e ass ignme nt sha ll be effective up on written
no tice to Landlord .
7. Governme ntal Appro vals. If requ es ted by Tenant , La nd lord will exec ut e , at
Te nant's so le cost and expen se, a ll doc um e nt s required by any gove rnmental a uthority m
con nec ti o n w ith a ny developm e nt of, or con s truction on, th e Premi ses, in clud in g documents
nece ss ary to peti ti o n the appropriate publ ic bodi es for cert ificat es, pe rm its, li ce nses and other
app rova ls de emed necessary by Tenant in Tena nt 's abso lute d iscretion to utilize the Pre mi ses for
th e purpo se of constructing , mai nt ai nin g and opera tin g communica ti o ns fac ili ti es, inc ludi ng
wi th o ut limit ati on, tower structures , antenn a s upp o rt structures, cab in ets , met e r boards,
bui lding s, antennas, cables, equipm e nt a nd uses incid ent a l th eret o. Land lo rd agrees to be named
app li ca nt if requ ested by Tenant. Land lord s ha ll be entitled to no furt her co nsid eration w ith
re s pect to any of th e fo rego in g ma tt ers.
8 . Rat ifi c at ion.
a) La ndl o rd and Ten ant agree th at Te nan t is the cunent te na nt under the Lease, the
Lea se is in fu ll fo rce and effec t, as a mended here in, an d the Le ase conta in s the entire ag ·eement
between Landl ord and Tenant w ith re spec t to the Pr emi ses.
b) Landlord agree s th at a ny a nd a ll action s or in acti o ns th at have occ uned or shou ld
have occurred pri o r to the date of thi s Fir st Amendment are approved and ratified a nd tha t no
breaches or defa ult s exis t a s of th e da te of thi s Firs t A me ndment.
S11e Na me : Ba ldwmffcmplc Ovly-C5 13
Busmess Unit #· 8-149 57
5
ATTACHME T A
c) Landlord represe nt s and warrants that Landl o rd is dul y authorized and has the full
power, ri g ht and authori ty to enter into thi s Firs t Amendment and to p e rform a ll of its ob li ga tions
under th e Lease as amended.
9. Notices. Tenant's no ti ce address as s tated in section 39 of the Lease i s c.mended
as fo llo ws:
TE A T'S PRIMARY CO TACT CCATT LLC
c/o C rown Castle USA Inc .
E . Blake Hawk , General Counsel
A ttn: Legal De pa rtme nt
2000 Corpo rate Dri ve
Canon sburg , PA 153 17
I 0. IR S Form W -9. Land lord agrees to pro vi de Tenant w ith a comple ted IR S Form
W-9, or it s equi vale nt, upon execution of this First Amendment and at such other times as may
be reasonab ly reques te d by Tenant. In the event Landlord 's inte re st in th e Prope rt y is
tran s ferr ed , the s ucceeding landlord s hall have a duty a t the time of s uch transfer to provid e
Tenant with a com p leted IRS Form W-9, or it s equivalent, and other related paperwo rk to effect
a transfer in th e rent to the ne w land lo rd . Landlord 's fa ilure to provid e the IRS Form W-9 w ithin
thirty (30) days after Tenant's reques t shall be considered a default and T e nant m ay t :1 ke any
reaso nable acti on necessary to comply w ith IR S re gul ations including, but not lirr: ited to ,
w ithholding app li cable tax e s from rent payments.
II . R e mainder of L ease Un affecte d. The parti es h ereto acknow ledge that except as
expressl y modified here by , the Lease remains unmodifi ed and in full fo rce a nd effect. In th e
event of a ny conflic t o r incon s is te ncy between the te rm s of thi s First Amendment a n d th e L ease,
the te rm s of thi s F ir st Amendme nt s ha ll control. Thi s First Amendm ent may be executed
s imultaneous ly o r in counterparts, each of w hi ch s hall be dee med a n o rigina l , but a ll of w hich
together s ha ll constitute one a nd the sam e agr eem e nt.
Site Nam e: 13 aldwin/Temple Ovl y-C5 13
Bu s ine ss Uni t #· 844957
[Si gnature pages follo w ]
6
ATTACHMENT A
T hi s Fi rst Ame ndment is execut ed by Landl ord as of the da te fir st written above.
Si te Name · Baldwi nrremple Ov ly-C5 13
Bu s1ncss Unll # 84 -1 95 7
LANDLORD :
C IT Y OF TEM PLE C ITY
By: __________________________ _
Print Name: -------------------------
Ti tie: -----------------------------
[Tenant Exec uti on Pa ge Follows]
7
ATTAC HMENT A
Thi s First Ame ndm ent is exec ut ed by Tena nt as of the date fir st wr itt e n a bove .
Sue Name : Ba l dwm(f crnpl c Ov l y -C5 13
Bu s1ncss Uni t #· 844957
8
TENANT:
CCATT LLC,
a De laware limited li ab ilit y co mp a ny
By: ________________________ ___
Print Na me: _________ _
T itl e: _____________ _
W H EN REC ORD ED RETURN T O :
Pre pared by :
hus tak & Partne rs, P .C.
40 I W est '·A·' S treet, S uit e 2330
a n D iego, CA 921 0 I
ATTACHME T B
Space above thi s line for Rec o rd e r 's U e
A .P.N. 8587-025-902 Pri o r Re cord ed D oc um ent in L os A n geles Coun ty, Califo rni a:
R ec o rd ed o n J anu ary 22 , 19 97, at #97 11 0 045
MEMORA DUM OF FIRST AMEN DMENT TO
BU ILDfNG A N D LAND LEASE
This Memorandum of First A m e ndme nt to Building a nd Land L ease is m ade effecti ve
th is __ d ay of _____ , 20 15 , by a nd be tween C ITY OF TEMPLE C ITY, ("Landl ord ")
and CCA n · LLC , a D e la ware l imited li abi l it y company, it s a ttorney in fact (''Tenant").
1. Landlord and Los Angeles Cell ular Telephone Compa ny ("Ori g ina l Tenant")
ente re d int o a Building and Land Lease da ted September 25 , 1996 (the ·'Lease'') w hereby
O ri g ina l Tenant leased certain rea l property, to ge th e r with access and utilit y ease ment s, located
in Lo s Ange les County , California fro m Land lo rd (th e ·'Pre mi ses"), a ll located within certa in real
property owned by Landl ord (the '·Pro pe rt y"). T he Property, of w hi c h th e Pre mi ses are a part , is
more partic ul a rl y described o n Ex hibit "A" attached he reto.
2. CCA TT LLC is currentl y the t e nant under th e Lease as ultimate s ucces sor in
interest t o th e Orig inal Ten ant.
3. T he Premises m ay be used for the purpose of construct in g , maintaining an d
o perating a co mmunicati ons facility, incl ud in g to wer s truc tures, equipm e nt s he lters, cabin e ts,
m e te r boards, utilities, antennas, e quipme nt , any re lated improvements and s tructures and uses
inc ide nta l thereto.
4. The Lease had an initia l term that comme nced on October 1, 1996 and expired on
Sep te mbe r 30, 200 1. The Lease prov ides for three (3) extensions of fi ve (5) ye ars each.
Accordi ng to the L ease, the fin a l ex tens io n exp ires September 30, 2016.
5. La ndlord an d Tenant have e ntered in to a First Amendment t o Building and Land
Lease (the "First A m e ndme nt "), of w hi ch thi s is a Memorandum , pro v iding for s ix (6) add iti o nal
Re newal T e rms of fi ve (5) yea rs each . Purs uant to the F irst Amendment, the final Renewal
Term ex pires o n Sept e mber 30, 2046.
6. If La nd lo rd receives an offer fr om any pe rso n or e ntity th at own s towers or o ther
w ire less te lecomm uni cat ions fa c ili ties (o r is in the b us in ess of acqu irin g Land lord 's interest in
th e Lease) t o purchase f ee titl e , an easement, a lease, a li cen se, or an y oth er int erest in t he
Premi s e s , o r Landlord 's interes t in the Lease, or an optio n for any of the foregoi n g, Landlo rd
s ha l l pr ov ide w ritte n notice t o Tenant of s a id offe r , and Tenant s hall have a r ight o f fi rs t refusal
to acquire s u ch inte rest on th e same terms and conditions in th e offer, excl uding any term s o r
condit io ns w hi c h are (i) not im posed in good faith or (ii ) direct ly or indi rectly des igned to defeat
or und e rmine Tenant 's possesso ry o r eco nom ic interest in th e Property. If Landlord's not ice
cove rs port ions of La nd lord 's pare nt parcel beyon d the Pre mi ses, Tenant may elect to acquire an
in ter est in o nl y th e Pre mi ses, and the con s ide ra ti o n s ha ll be p ro -rat ed on a n acreage basis.
Land lo rd 's notice s ha ll inc lude th e prospecti ve buyer's na m e, t he purchase price and/or other
co ns id e ra ti o n be ing offere d , th e oth e r t e rm s a nd cond iti o ns of th e offe r, the due d il igence pe ri od,
the proposed closing date a nd , i f a p orti on of Landlord 's p arent parcel is t o be sold, leased or
o th e rw ise conveyed, a descripti o n of said portion. If th e Landl o rd 's notice shall provide for a
due dili gence perio d o f less tha n s ix ty (60) days, th e n th e due di li ge nce p e ri o d s h a ll be extended
to b e s ix ty (60) d ays from exerc ise of the ri ght o f fir s t refusa l and c losing sha ll occur no earlier
than fiftee n days th e re after. I f T e nant do es not exerc ise it s ri gh t of fir s t refusal by written notice
to Landlord g iven w ithin thirty (30) d ays, Land lord m ay co nvey th e prop er ty as described in the
Landlord's noti ce. If Ten a nt declines to exercise it s right o f fir s t refusal, the n th e Lease shall
conti nue m fu ll fo rce and effec t an d Te nant's ri ght of fi rst refusa l s hall s urv tve any suc h
co n vey ance . Te na nt s ha ll ha ve th e ri ght , at it s sol e disc retion , to ass ign th e ri ght of fi rst refusal
to any perso n o r entity, e ithe r se parate fr om an ass ignm ent of th e Lease or as part of an
ass ignm e nt of th e Lease . Su ch ass ignm ent may occ ur eith er prio r to or after Te nant's receip t of
Landl o rd 's noti ce and the ass ignm ent s hall be effe cti ve up on writt e n not ice to Landl ord.
7. If requ es ted by Tena nt , Land lo rd will exec ute, at Te nant's so le cost and expe nse ,
a ll doc um e nt s required by a ny governm enta l autho rit y in co nn ec ti on w ith any d eve lopme nt of, o r
co nstru cti on on , th e Premi ses, in c l ud ing doc um ent s necess ar y to peti t io n th e ap propria te pub lic
bo di es for ce rt ifi ca tes, pe rmit s, li ce nses and oth e r ap prova ls d eeme d necessa ry by Tena nt in
Te na nt 's abso lut e di sc retion to util ize th e Premi ses fo r th e purp ose of co nstruc tin g, mai ntaining
a nd ope ra ting co mmuni cati ons fac iliti es, inclu din g witho ut limit ati on , tower stru ctu res, antenna
s upp ort stru ctures, ca binets, meter board s, buildin gs, ante nn as, cables, eq uipm e nt and uses
in c id e nt a l the reto. Land lo rd agrees to be named a ppl ica nt if reques ted by Te nant. La ndlord
sha ll be e ntitl ed to no furth e r co ns id eratio n with respec t to an y of the forego in g matte rs.
8. Th e te rm s, cove nant s and pro vis ions of th e Firs t A mendmen t sha ll exte nd to and
be bindin g up on th e re s pecti ve exec ut ors, admin is tr ators, he irs , successors and assigns of
Landl ord and Te na nt.
9. T hi s Me morandu m does no t co nt a in the soc ia l sec ur ity num ber of any pe rson.
I 0. A co py of th e First Amendm ent is on fil e with Landl ord and Te na nt.
rsi gnature pages fo ll ow j
IN WIT NESS WHER EOF , hereu nt o and to dupli ca te s hereof, Landlord has caused thi s
Me morandum to be du ly e xecuted on the da y a nd yea r fir s t wr itten a bove.
LAN DLORD :
CITY OF TEMPLE C ITY
By : ________________________ __
Print Na me: __________ _
Titl e :--------------
[Ackno w ledgme nt appears on fo ll owin g pa ge]
A n o tary public or o ther offi cer compl eting thi s c ertificat e verifies o n ly th e id e ntity of the
indi v idual w h o s ig ned the do cume nt to w hi c h thi s c e rtificate is a ttach ed, and no t the tr u thful ness
accuracy, o r validity_ o f that doc ument.
STAT E O F CA LI FO RN IA )
) ss.
C O UN TY OF )
O n be fo re m e , otary
Publi c,
pe rso nall y a ppe are d , w ho
proved to m e o n the bas is of sati sfactory evid e nce to be t he perso n(s) w h ose names(s) is/are
s ubsc ribed t o th e w ithin in s trume nt and acknow le d ged to m e tha t h e/s h e/t hey execut ed t he same
in hi s/he r/th e ir a utho ri zed cap ac it y(ies), and th a t by hi s/her/their s ig na t ur e(s) o n th e instrument
th e pe rson(s), o r th e e ntity upon behalf o f which the pe rson(s) acted, execute d the in s trument.
I cert ify und e r P E AL TY OF P E RJ U RY un der th e laws of t he Stat e of Cali fornia that the
fo rego in g paragra ph is true and correct.
WITN ESS m y h a nd and offic ia l seal
S IGN A TURE OF N OTARY P UBLIC
(Sea l)
[Tenant Exec uti o n Page Fo ll ows]
IN W ITNESS WHE REO F , he re unt o a nd to du pli cates he reof, Te nan t ha s caused this
Me morandum to be du ly executed on th e day and yea r fir st wri tten above.
T ENAN T :
CCATT LLC ,
a Delaware limited li ability company
By : __________________________ _
Print Name: ___________ _
Titl e:--------------
ta t e o f Tex as
Coun ty o f ____ _
Befo re me, , a otary Public, on thi s da y pe rsonall y a pp ear ed
_________ o f CCATT LLC, a
De laware l imited li a bility company, known to me (or prov e d to me on th e oath of _______ _
or throu g h dri ve r 's li cen se, s tate id card , res id e nt id card, military id card , o r passpo rt ) to be the
person w hose name is su bscrib ed to th e for ego in g in strument and ac kn owled ge d to me th a t
s he /he exec uted the sam e for the purposes and con sideration th e re in expressed.
G i ve n und er m y hand and seal of office thi s ______ da y of _____ , 20_
(Perso na li zed Seal) o tary Public ·s ignat ur e
EX HI BIT A
Le ga l Description of the Propert y
PARCEL I:
LOT B OF TRACT 656 1, IN TH E CITY OF TEMPLE CITY, AS SHO WN ON MAP
RECO RD ED IN BOOK 72 PAGES 34 AND 35 OF MAPS , IN THE OFFICE OF THE
COUN TY RECORDER OF SAID COUNT Y. EXCE PT THEREFROM UNTO TH E COUNTY
OF LOS A GELES, ALL OIL, GAS, HYDR OCARBONS OR OTHE R MINERALS I A D
UN DER ABOVE DESC RIB ED PARCEL OF LAND WITH OUT THE RIGHT OF SURFACE
E T RY FOR T HE DEVELOPMENT THEREOF , BY DEED RECORDED FEBRUARY 11 ,
1963 AS INSTRUMENT NO. 3330.
PA RCEL 2:
THE WESTERLY HALF OF LOTS I OJ AND 102 OF TRACT 656 1, IN THE CITY OF
TEM PL E CITY, AS SHOWN ON MA P RECORDED IN BO OK 72 PAGES 34 AND 35 OF
MA PS, IN THE OFF ICE OF T HE COUNTY RECORDER OF SAID COUNTY.
·' • 'BUILDING AND LAND LEASE DO~liCATE ORIGINAL
l. L.A .~
CELLULAR
Lao Ana• los Cellular Ttlepkono Comi*'Y
Dated as of: S~ptcmber 25. 1998
(Communlcatlon equipment to be Installed In the existing Building and
antennae and related equipment to be constructed and Installed on the Land]
You , Cjty of Tomglo Cjty , aa landlord , agree to lease the Premises and grant t ho Easements !both defined
be lowl to us, Los Angeles Cellular Telephone Company !L.A . Cellu lar), as tenant, and we agree to leaeo the Premises and
accopt the Easement from you, upon tha follow ing terms:
1. Certain DofinltJoM . Tho foUow ing Is o list of some o f the definitions usod In this lease:
Ia) "Leese": Thle Building and Land Le ese.
(b) "You" (landlord): City or Tomglo Cllv .
(cl "We" or "Us" [Tenant): Los Angeles Cellul ar Telephone Company (L.A. Cellular).
(d) "Party" or "Parties": You o r u s as th o contoxt requires, and together, you and us.
(a) "Land": Your land , os de scr ibE~<! on fxbl.biL.A.
(fl "Buildi ng": The building or buildings which oro locatod on the land at the follow ing
address: 6938 Kauftmao Avenue Tomo la City CA 9lZIJQ.
Col "Property": Tha lend and tha Building .
!hl "Equipment Aru": The porti on of the Building containing approximately ~ square foot shown
8a cross-hatched on flsllibiLa .
(I) "Antennae Area": The portion of tho land shown as diaoonelly·linod on fldlih!t..e..
Ill "Eaaemants": Described In paragraph 7 .
(k) "Premises•: The Equipment Ares, tho Antennae Area, and the Easements.
(I) "Tenn Stan Oate": Octgbor I 199!3 .
(m) "Initial Term End Date": Sep1emb11r 30. 2001 .
(n) *Operational Phase Commencement Oate": The date on which we give you a •commencement
Letter, • as defined In paragraph 4.
lo) NPermit Phose": The period of t ime from the Torm Start Date until the OperatJonsl
Pllese Commencement Date.
(p)
(q )
(r)
(8 )
(I)
(u)
"Op e rational Phau": Th e period of time from the Operational Phas a Commoncemont
Date until the expiration or earlier termi nation of this Lee so.
"Permit Phaae Rent.l R11te": $~per month,
"Op erational Phue Rental Rate":
oaragraph 51bj,
$ 1 35Q 00 per month, as may be adjusted In
"Communication• Faclfity": The c ommunications antennae, antennae arrey, und all
equipment and roloted Items whic h wo plan to construct on the Premises, which may
lncluda, for oxample, cables, conduits, air conditioners, and generators .
"Index": The consumer prlc o Index which has t he following t itle: The Consumer
Price Index for All Urban Consumers applicable to the l os Angoles·Anaheim·Rivers ldo
area published by the U.S . Department of Labor, Bureau of Labor Statls tlos subgroup
"All items (1982-84 "' 100)."
·vour Adja cent Propeny·: Any prop erty (other th an the Propenyl which Is Ill located
within 8 rad ius of 500 feet of t he Premises, and (II ) own!ld, leas ed, lice nsed, or othorwi5e controlled
by vou.
UUlLDING AND lJ\NO LEASE ~ Tena nt
1
MENT
2 . Initial Lease Term .-is Lea se w il l start on the Term Start Date! end on the Initial Term End Date, except
' If this Lease is terminated earlier for the reasons provided in this Lease or if the term Is oxtend9d as discussed In D!!rcg roph 3 .
You agreo to deliver possession of the Premises to UB on the Torm Start Date.
3, Extensions of Lease Term. The In itial Term End Date w ill eutometically be extended 3 consecutive timos for
5 years each time, unlo ss we notify you of our doslro to termin<t te this Lease, at loast 3 months before t he Initial Term End
Da te lor, if this Lo ose h os beon eiCtendad, the expiration of the eiCtens lo n then in effect). You may terminate this Leese et
tho end of t he first extension by giving us notice of such Intentions no later than one year prior to the end date of the first
extension, Thi s tormlnatlon right shell also apply to all other extensions that follow.
4 . Permlte and Approvals; Permit Phase Termination. You represent end warrant to us that you have all
oovemmontal permits end approvals nacessary for your present use of t he Pre m ises, and for any construction and/or
Improvement that has taken piece thereon. To the extent other governmental permits and approvals ero required for us to
construct and/or uae the Communications Facility, wo will obtafn end maintain such permits end approvoln. When we have
obtaln9d all required governmental permits and approvals for our construction and use of the Communications Facility, wo
will g ive you ' notice, called a ·commencement Letter.• The Commencomant Lotter will state tho Operational Phaso
Commencement Date, and, If that date Is other than the first day of the calender month, th11t the Operational Phase Rontal
Rate win commence on tho first day of the next oolondar month. A copy of the Commencement Letter ahould be attached
to this lease to show the Operational Phase Commencement Date. We moy temninato this Lo ose at any time during the
Parml t Phase by giving you a notice of termination, called a "Termination Notice." If we, In our sole d iscretion, have
doterminod that:
!el the Premises (Including the Eaaomontsl are or have bacomo unsuitable for our planned
Communications Facllity;
(b) wa cannot obtain or maintain ony req uired governmontal permits or approvals; o r
(c) the coat or effort required to obtain or maintain any required povarnmental permits or approvals is
or has become economically Impractical for us.
II we oivo you a Termination Notice as dis cussed In t hla oarparapb :'}, this lease will terminate 30 days attar we glvo you
the Termination Notice, and you may keep ell of the rent that you hove received as of the date of termination.
5. Rent.
(a) During the Permit Phase, we will pay you rent at the Permit Phose Rental Rate es dncrlbetl in thi s
paragraph. On the Temn Start Date we will pay you one month's rent at the Permlt Phase Rental Rate. Starting on the fl"t
day of the next calender month, end contlnulng on tho firs t day of each subsequent month during the Permit Phase, we wi ll
pny you monthly rent et tho Permit Phaso Rental Rate . If the Temn Start Date Is on a day other than the first day of a
calender month, rent for the second month In the Permit Phase will be prorated to reflect the fact that the first month wea
a partial month.
(b) Dur ing the Operational Phase, we will poy you rant at t he Operational Phase Rental Rete as described
In this paragraph. On the first day of each calendar month during the Operational Phase, we will pay you monthly rent at
the Operational Phase Rental Rata as may be adjueted n discu9sed below. If the Operational Phase Commancemont Date
Ia on a day other than the first day of t he calendar month. the rental rate wi ll change to the Operational Ph ase Rentol Rate
on the first doy of tho next calendar month. Ront for any partial month at the and of the lease term wlll be prorated.
Effective on the day ettor the expiration of the f lrat full 1 2-month period in the Operational Phase and on the day after the
expiration of each s ubsequant 12-month period, t he Operational Phase Rental Rate will bo In creased by the percentage
Increase, if any, of tho c urrent lndox over the Index that was In etfoct at the beginning of the previous 12-month period,
8Xcopt that the Operational Phase Rental Rate for any 12-month period w ill not be Increased by more than 5'16 but not len
then 3'16 over the Operational Phase Rental Rate for tho preceding 12-month perio d .
6. Res e rved.
7. Eostmonta.
(a l By signing this Le&se, you grant to us the following easements (the "EIIIamtnt.s") appurtenant to
tho Premises:
lil The right to construct , Install, maintain, repair and/or replace at any time communications
antonnaa and antenna array on tho Antennae Area and support equipment in the Equipment Area;
(II) The right t o install, operate, mainta in , repe lr and/or raplaco at any time utility wlraa, cables,
conduits end pipes over, under, along and through portions of the Bu ilding and Land extending to and from both the
Equipment Area and t he Antennae Ar88 l'ls well os betwoon the Equipment Area anti tho Antennae Aree as wa rnay consider
epproprieto for the proper functioning of the Communications FaciHty, in t ho locatio ns shown on f2llll.b.II...I. All utilities shall
bo underground unless approved by the City;
(il l) ..ZIIaUQl assigned parking spaca(s) described ea • Assigned Parking Space(s)" on fllhil2lUl.
and .JUli11L unassigned parking epece!sl described as "Non·Asslgnad Periling Spaca(s)" on f2s.ll.ll1lUl; end
fiv) A spacial right of access 7 days a week, 24 hours a day, for Ul end our assigns, lndape ndent
contractors, agents, Invitees. and equipment, for the c onstruction, installation, maintenance. repolr, replacement and removal
of the commurJcations antennae and s upport equipment to, from, and through portlona of the Building and Land extending
"""' '"" both~' ,,.,..,Mf A•• '"' Jho AnfOM" •-· " woO "bofwoon fho ""lpmo~ tuo~. e Area
BIJILDING AND LAND LEA SE
on on
t :
i
.. ,
'
os outlln&d on ~. • •
(b) The Easementa will Include placement end traffic of such trucks, vehicles and heavy or other
construction or repair machinery on the Property as may bo necessary or appropr iate from tlmo to time for the construction,
Installation, operation, maintenance, replacement and/or re moval of the Communication s Facility. If you g ive ue written
notice of any damage to the Prope rty d irect ly caused by our constructlon or usa of the E11sements within 30 days from the
occurrence of the damagu, we will pr omptly rep air the Property to t he condition that existed Immediately prior to s uch
damage; howovar, we will not be liable to you or t o any other person or entity entitled t o usa the Property on which the
Easeme nts are located, for any consequential damages (Includ ing, for example , economic loss ) attributable to such use,
damage or repairs. To t he ax tent that t he Enemonta and im provements on the Easements are constructed by us, and except
fo r any melntenenco made n1cassary by the uee or negligent m is use of the E&~am ents by you andfor you r assigns,
Independent contructora, agonta ond/or lnvitaes, during tho Lease Term we will maintain the Easemen ts and alllmprovemants
thereon In good condition and re pair, frea a nd cle ar of any obstructions and other hazards t o persona entitled to usa the
Easements.
lei From time to time It may bo necessary for us or y ou t o s ign agreomen b with, or to grant easements
to, public aUihoritias or publi c utllitlaa In order for us to either lil obtain the necell.!ery governmental pemnlte end approvals
for the construction, operation andtor ma intenance of the Communications Facility, or (Iii obtain utlllty aarvico t o the Promises
in connection with the In stal lation, conatruction, operation end/or maint enance of t he Communlcall ons Facility. Therefore,
upon our request , you agree t o algn or to a uthorize us to s ign, agreaments with eny public authority and/or public utility , and
to grant or authorize us to grant aasemants t o a ny public authority ond/or public utility, ae nacasssry or a ppropriate for our
us e o f t ha Premlsae f or installatio n , construction, operatio n, and/or ma intenance of the Communications Facility.
ldl Thu term of the Easements and any other Interests granted in this parogcach 7 will coincid e with the
term of this La asa. No wires, cab la$, conduits or pipes to locations other than those shown on fxblbiUl c an be relocated
without City appro val of the re/ocstio na . You ag ree not to unreasonably withhold or delay your a pproval, which you w ill
indicate by Initialin g an fll.bi.Q1Ul modifl&d to ahow the relocetions . You agree t o sign before a notary pu blic and deliver t o
ua within 6 days after our requ est, all do cuments, agreements or instruments which ere rueaonabl y necessary or appropriate
to accompli sh the purpos es described In this paragraph 7,
8 . Communlcatlona Fa cilit y .
(a) Wo have the right t o construct end Install our Communications Facili ty on t he Premisea. We will
construct the Communications Facilit y accord ing to the specific ations that w e determine, which will Initially bo configured
as shown on Ex h jblt B. Your 5ignat ure on t hi s Loaae Blg nlflos your approval of ~. We may change t he
Communications Fa cility located In the Equipment Area at any t ime and for any reuson whatsoever if (i) we obtain all
necessary govammentol and city council approvals , and (II) we do not unreasonably interfore wi t h any other Buildi ng tenant's
uso of its assigned premises. We may Improve and/or reinfo rce the Building end/or any ot her portion o f tho Proporty , at our
cost. to support the Communications Faclnty. After we inst all the Com m unications Facility, we w ill be requ ired t o obtain
your approvolln order to (I) moke any chango to the communicati ons antennae end antennae array on the Antennae Area
for whi ch a governmental pormit or a pproval ill required; or Ill) change any coblas or condu it& runni ng along the outside of
tho Buildi ng ln a mannor whic h would be visible tr om a ground level view of tho axterlor o f the Build ing. Yo u agree not t o
unreasonabl y w ithhold or delay your app roval. We will kaep tho Prop erty f ro o f rom m echanics' liens &rising out of our
construction. Wo wil l perform ou r conatruct lon ond Installation in compliance with aU applic able laws. The Facility, Incl uding
ell electrical end phone lines, conduit (except for t ho antenna end monopole! ahall b o undorgrou nd . The Communications
Facility will at all times bo our sole property.
lbl You waive any right or Interest which you m ay have, now or In tho future, to or in the
Communications Fa cility end any of our fu rniture, fi xtures, oqulpment a nd other property used or t o be used In connection
wi t h the Communications Facility regardless of tho low o f fi xtures and/or the mannor in which these Items are attechod t o
o r pl aced on tha Premlsos and regard less of any Tenant Default (as dftflnod In DB!l!QraDh 21/gll . Accordingly, you a gree not
to grant or create any security Interest or lien In all or any port of tho Comm unications faciU t y andtor any of our furnlturs,
fixtures, equipment and other property used or t o be us&d In connection with the Cofllmunicatlons Fa cility. You agree to sign
before o notary public ond dollver to us, within 5 days after our request, ell instrumonte 1md documents that we reasonably
roquo s t , in order for us to accomplish tho purposes described In this p eragraoh B!bl.
(c) You shall within 60 days rel ocate your HVA C equipment from the basement to the roof. We shall
ruimburse you t ho fir st $40,000 of such e xpanse by c ho ck upo n execution o f this lease, and we shall be able t o recover the
s aid $4 0,000 by deducting $333.33 p or m onth of the monthly rent due for tha first ton yea rs of this le ase.
ld l We (LA Cellu lar) agree to have oil tho antenna Installation work com pleted within 46 days otter the
Ciiy pormlts hove baan issued.
lel We give you the right to Inst all antannas on our monopole that will not in terfere with tho operation
of our Comm unications Facility. Antenna s peclfic atlona must be submitt&d t o u s fo r review bafore
approvals for In stallation can be given to yo u .
9. Use. Wa may u sa the Pre mlsos for constructing, maintaining, repairing and operating tha Communications
Facility, and for any other uses which are In cidental to thosG uses that yo u approve. You agree not to unreasonably w ithhold
or de lay .your a pprova l. We agroo not to interfere with radio or other ec;ulpment which y ou or &n'l other uaer may heve ln
t he Bui lding when the Communications Fa cl~ty was lnstall&d .
10. Cooperation. You agree t o fully cooperate with us by r lgnlng a nd joining In applicatio n s for governmental
pormlts o r approvals covering o ur uso, conatruc t ion or occupation of t he Premises. We w ill ro imbiJ(sa you fo r ell reasonable
exponsos resulting from your cooperation . ~
BUILDING liND !.'.NO LEASE
onont
3
11 . Indemnity. Subje'o the waiver of eubrog&tion described In !agrapb 18:
(a) We will Indemnify, defend (with counsel selected by you! and hold you harmless from any claim,
demand or couee of action which arises from (If our negligence or willful m isconduct In the conetruotion, In stallation,
operation. or maintenance of thB Communications Facility to the DXtant not attrlblltable, to t he negligence of you or your
assigns, tenantt, agents, employees, customers, Invitees or contractors, 1nd/or Cfl) our bre11ch of any rapresentetlon or
warranty made by us In this Leese.
(bl You agreo to Indemnify, defend (with counselnlectod by us) and hold us harmless from eny claim,
demand or cause of action which arises from (I} your nogligenca or wiMul m isconduct In connection with tho Property or the
Premises to the extent not attributable, to tho negligence of ue or our eaalgna, tenants, agants, omployeas. customers,
invltaaa or contrectors, and/or (Iii your breach of any representat ion or warranty made by you In thle Leese.
lei If more than one Indemnity provision e teted In this l11ase would apply to a particular eituatlon, the
provision providing the greatest benefit to the party being indemnified win apply.
12. Cluiet Enjoyment end Non -I nterference.
(aJ You agree, repreaont and warrant that If we comply with an of the material prov lsione of this lease
oppllcable t o us, wo will have quiet posseuion and enjoymont of the Premises In accordance with this Lease .
(b) Landlord warrants and agroos that Tenant, upon paying the ra nt and performing the covenants heteln
provided, shall peacesbly and qulelly have and enjoy the Leaso Property. Land lord shall not cause or permit any use of the
Loose Property which interferes with or Impairs the quality ol the communications services being rendered by Tenent from
the Lease Property.
lei If en lntarfol8nce occurs, you agree, at your cost, to lmmodlotaly correct end eliminate the
Interference. This may involve taking legal action that we may require, or reim bursing us for our coste to correct the
lntorfareOC9 , Inclu ding, for axampla, reasonebls attorneys' feoa end costs. If any material Interference occurs and remains
uncured for 10 days after you rocalve notice of such Jntarferonce, we may tarmlneto this l ena effective upon our giving
you notice of termination.
13. Utilitloa and Taxes, We will pay lo r all utilities that we uso in the Prom isee. The pertln will reasonably
cooperate to provide a separate metering of the utilities whlch we use. You agree to pay all real property taxes and
assessments against t he Premlsas. We w!H pay a ny possossory Int erest ta~e chargod to tho loose property. However . we
will pay you, upon your requost, any increase In those t exas or aasenmsnts based solely on the assessed value of the
Co mmun ic ations Facility, but we may protest and contest the toxes and ussosaments with tho appropriate governmental
authority. We w ill pay all porsonoi property taxes duo on our equipment located on tho Premises.
14. Remov1l of our Property . Within 60 daya following the expiration or oltler termination ol this lease, we will
rom ove thoso Items of personal property, equipment, trode fi xtures and improvements that ore designated as required to bo
removed by us on fliliiblt..B, as wall as any o ther personal property , equipment, trade fixtu res, and Improvements that we
choose to remove. Upon the expiration of t he SO.day period, we will have no rights, obligation• or liabUi t !es with respect
to any p8(Sone! property, equipment, trade fixtures and lmprovemenl3 rem aining on the Pr operty. Without affectin g any othar
provision of this Lease, t ho insurance and Indemnificat ion provisions of this Lease will continue in eHuct until we have
comph1ted removing our property or tho 60-day period has passod, whichever occurs first.
15. Tftft Matters.
(e) ~. You represent a nd warrant to us that : fi) you have full authority to entor Into this Loue end
to grant the Easoments; (li ) you havo faa title to the Property and the only matters affecting your title tJTa t hose shown on
~; end (IIi) you have provided us with copies of oil ogreoments and documents aHectino our uso of the Premises or
this Lease.
ib) Memorondu m of Lease, Each party, when clg nlng thla Lease, will also s ign be fo ro a notery public
a m emorandu m of lease In the fo rm of .E.!dl!lll1...Q !*Memorandum of Laaao•t. We may, at our own expense, record the
Memo randum ol Loose ot any time .
16. Melntenance 111'\d Repalra. You agree to promptly maintain and repair the Property (including any naces1111ry
replacemonts} et your expense, In good, sound and oporating condition, and In c::om pilllnca with all appl ic able la ws. Your
responsibilities undor this oaraoraoh 16 include, lor exemplu , tho etructurel comp on vntl, foundation, t x turi or walls, Build ing
Systems, and common areas of the Building , tho landscaping, and the parking orea, but do not Incl ude any Improvements
made to the Property by us. If we n otify you of any violation of your maintenance a nd repa ir obligations described in t his
parogmpb 1 6 and the violation preaants a hozard or on emergenc y, you muat correct thu violation lmmadlately; otherwise
you must bogln correct ing tho violation within 10 days after we notify you. Your obligation to maintain and r11pair the
Property doscr ibad In this paragraob 1 6 , howe~ver, Ia not contingent upon your rocoivlng e notice fr om us.
1 7. Auignment and Encumbrance.
lei We may, without your consent and In our 6ola discretion, from time to tlma, do eny of ths following:
(IJ grant to any person or onthy a socurlty lnter11st (Including, for example, a security lnterast
of first lien priorit y! In soma or ell of the Communications Facility and/or any of our furn iture, fixturo s, equipment
a nd/or other property used or to be uaed in connection with tho Communications FacUl ty ;
(Ill ass ig n or plodgo our interest in this Lease and the Premlaaa, including the Esaaments, to any
person or entity to fina nce ou r aqulpmont o r oporato our buslnoss; and .~ an
BUILDING AND lAND LEASE ~
Tooanl
4
------------------------------,
• • • IIJJ) assign this Lease : lA) to an y Bntity which has, dltec tly or lndlteotly, e 30% or great er
Interest In us (o "Parent") or In which we or a Parent has e 30% or g roater Interest (an • Affiliate"); I B) to any entity
with wh ich we end/or any Affiliate may merge or consolidate; (CI to o buyer of substantially all of tho outstanding
ownership units or assets of us or any Affi liate; or IDIIf we transfer our Fodera! CommlJ(licatlons Commission cellula r
license, t o the reclpl9nt o f that transfer.
You agree to s ign before a notary pvbli c an d deliv er to us, within 6 days from our request, all instruments end documents
that wo reasonably req uest, in o rder for us to accompli sh the purposes described In this porograph 17!al. We may record
against our lntereet In the Premises any Instruments or documents that may be requ ired with reepect to any assl gnmont or
p lodgo doscribad In paragraphs lZ!alUI qr Iii!.
lbl Except as allowed In ooragraph I 7!pl above. wa may not assign t hla Lease or aublot the Premises
0 1 any part of the Premises, without first receiving your consent. You agree not to unreasonably withhold or delay your
consen t . In addition, you agree not to withho ld your consent If: II ) the financiol condition of the proposed assignee o r
suble ssee moots y our reasonable standards of c reditworthiness lor evaluating new tenants In the Bu ildi ng , end Iii ) the
Intend lid use is perm itted under parngropb 9 ebove or is otherwise compatib le with the design of t he Property and the uses
of the other tenants. If wo Gublet any portion of the l&as lld au1a, such sublease shell bo subject to approval by you, and the
amount of the sublease will be divided equally between you a nd us.
lei If you request, any assignment of this Le ase descrlbod In DB!8qrapb 171altllll will not be effective
until tha pe11on or entity to whom wa nro assigning t his Lease signs and delivers to you o document In which they auuma
responsibility for all of our obligations under this lease. However, even It we assign or pledge thi s l aase, we will remain
pr ima rily liable for the performance of all obligations allocated to us as t enant in t h is l ease, u nless you s pecifi cally rel ease
us In w riting.
18. In s urance.
Ia ) Liability !nsuronca. Each party agre es to maintain, at Its own oxp anae, Insu rance sgalnst public
li abilit y for injury to parsons (In cluding deeth! or damage to p roperty occurr ing within, upon or about the Property. Each
insurance policy will be a combined single limit po licy in an amount not loss than $1,000,000 p er occ urrence . We will name
you es an addit iona l Insured under our policy and our policy will contain a aosa·fiobility endorsement. Tha Insura nce may
ba In the form of general coverage or float ing policies covering these and ot her pTBmisoa.
lbl Property lnauronc o. You agree to mainta in, at your own expense, Insu rance a gainst loss or damage
t o ths Property, providing coverage f or the full replacement value of the Property. This inauranco must include loss or
damage at lao s t from fire, vandalism . mallciouG mischief and fl oo d .
tel !nsuraore Pollc!Q8 . The insurance policies required in pa(llqrapha IB!al and !bl must bo Issued by
companies holding a "General P olicyholder'• Rating • of at least A:VII es listed In the m oat current l"ua of "Best's Insurance
Gu ido, end llcansad t o do business in Ca lifornia . • When lo.r before) tho parties 1ign this l ease, wo w ill dallvor to you a copy
of ou r required Insura nce policy, or certificate of Insura nce showi ng that our required policy Ia in affoct . Nalthar party may
cance l or reduce the coverage of the requ ired Ins urance policies unless the other party Is given 30 day a prior written noti ce
of the cancellat ion or reducti on.
(d) Wajvar of Subrogation . Each perty waives any rights o f recovery for loss or damage against the other
party, including the officers , directors, p artners, employoos, agonto and represent atives of t he other party, to the extent that
such loss or damoga Is Insured against undor any valid and collectible Insurance !except Workers' Compmsatlon Ins urance)
In force at the tlmo of such 1088 or damage, and t o the extent tho loss or damage Is required t o be Insured against by
paragraphs 181al a nd lb.l of this lease. All policies of Insurance obtained b y olther yo u or us to comply with oaragrapbs 1 Bla l
illiL1.Ill must Include a clause or endorsement waiving the ineurer'e r!ght8 of subrogation again st the other party.
19. Ounag• or Outruction . It an o r any port of the Property, incl udi ng the Convnunlc at lons Facility, is damaged
or destroyed by any cause, than:
Ia) We mey terminate this laesa If : (I) in our sole discretio n, we dec ide that tha damage or destruction
has caus ed the Premises to become unsuitable or unecon omi c for our use. and !Ill we notify you of the Lease termination
within 30 days after we make t ho decision that the Premises has become unsuitable or uneconomic for our use.
!b) If: !II we do not choose to term inat e this loose, 1"1 tho damags or des truc tion re sults from a risk
which would bo covered by a po licy o f 4tandatd tire and extended cove rage Insurance which lncludea vandalism and malicious
mischief ondorsam ent5, and (1111 raat orat lo n of the Premises can b e completed In accord ance with exlatlng laws and within
90 days after t h11 date of the damage or destruction, then you must promptly rectors the Premises at y our o wn expanse to
substentlal ly the 89ma conditi on as oxletod Immediately before the damage or destruction (oxcapt that we will res t ore at our
own expansa any improvemonta; mode by us!.
lei We may use (bu t we aro not oblige ted to use) a n alternative portion or portions of the Property for
t emporary facRJties, If such space Is available. Tho alte rnative s ite will be sele cted by us, s u bject t o your approval. You wll!
not unre aso nably w ithhold yo ur approva l. and you must respond to our request for an elternative site within 6 days after
ro colvlng our written roquast.
ldl Our rent will be redu ced during the porlod of t ime f10m the dete o f damage or des truc ti on until tho
rest orat ion Is completed, ba sed on tho e xtant to whic h the dam age or destruction ceuau tho Premis es end/or the
Comm u nlco t ioN Facility to ba unu sable and/or Ina ccessible , end taking int o acco u nt any temporary fa cUltie s we may be
occupying.
20. Eminent Domain . If all or sny part of the Prom is ee Is taken by eminent domain or cond6mnatlon or sold u nder
throat of emlnont domain o r condemnatio n lell of w hich are cell ed "Cond.mnatlon•t :
BUilDING AND lAND lEASE
5
" " ( a l W e m a y t e n n i n a t e t h i s L e a s o b y g i v i n g y o u w r i t t e n n o t i c e o f t e n n i n a t i o n w i t h i n 3 0 d a y ~ a f t e r w e
r e c e i v e w r l t t o n n o t i c e o f t h e C o n d e m n a t i o n f r o m y o u , e f f e c t i v e o n t h o d a t e s p e c i f i e d I n o u r n o t i c e .
( b l I f w e d o n o t c h o o s e t o t e r m i n a t e , t h i s l o o s e w i l l c o n t i n u o b u t o u r r e n t w i l l b e r e d u c e d b y a n a m o u n t
w h i c h r e f l e c t e t h e v a l u e t o u s o f t h a p o r t i o n o f t h o P r e m i s e s t a k e n , c o m p a r e d t o t h o t o t a l v a l u e o f t h e P r e m i s e s I m m e d i a t e l y
b e f o r e t h e C o n d e m n a t i o n .
( c l R e g a r d l e s s o f w h e t h e r t h i s L e a e e l e t e n n i n a t e d , w e w i l l b e e n t l t l o d t o r o c o l v e j u s t c o m p e n s a t i o n f r o m
t h o c o n d e m n i n g a u t h o r i t y o r p u r c h 1 1 e r f o r o u r l o s s o f a l l o r a n y p o r t i o n o f t h e P r e m i s e s , t h i s L e u e a n d / o r t h e
C o m m u n i c a t i o n s F " c i l i t y o r 1 1 n y u s a o f t h e P r e m i s e s , t h i s L e a s o a n d / o r t h e C o m m u n i c a t i o n s F a c i l i t y . S o m e a x l ! m p l o s o f t h e
t y p e o o f c o m p e n s a t i o n w e w i l l b o u n t i t l e d t o r e c e i v e I n c l u d e t h e v a l u e o f a n y p e r s o n a l p r o p e r t y a n d / o r t r a d e f i x t u r e s t a k a n ,
t h e c o s t o f r e m o v i n g a n d r e l o c a t i n g t h e C o m m u n i c a t i o n s F a c i l i t y o r a n y p o r t i o n o f t h e C o m m u n i c a t i o n s F a c i l i t y , a n y l o s s o f
b u s l n e n o r g o o d w i l l , a n d a n y " b o n u s v u l u o " o f t h i s l e a s e . w h i c h I a d e f i n e d a s t h e e x c e s s o f t h e f a i r m a r k e t v a l u e o f t h e
P r e m i s e s o v e r t h e p r e s e n t v a l u e o f t h e r e n t p a y a b l e f o r t h e r e m a i n d e r o f t h o t e r m o f t h i s l e a e e .
2 1 . O u r D e f a u l t .
l a l A M T v n a n t D e f a u l t "