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HomeMy WebLinkAboutResolution 2017-015 Approving an option and wireless communications facility lease agreement with Verizon Wireless MARANA RESOLUTION NO. 2017-01.5 RELATING TO REAL PROPERTY; APPROVING AND AUTIJORIZING THE MAYOR TO EXECUTE AN OPTION AND WIRELESS COMMUNICATIONS FAC11.1TY LEASE AGREEMENT BETWEENJ`HE TOWN OF MARANA AND VERIZON WIRELESS (VAW) LLC FOR THE LEASE OF APPROXIMATELET OF -1`OWN-OWNED PROPERTY AT THE MARANA HERITAGE RIVER PARK LOCATED AT 12375 N'. HERITAGE PARK DRIVE WHEREAS Verizon Wireless LLC seeks to lease approximately 704 square feet of Town property at Maa I Heritage River Park for a wireless communication facility, including a cell tower; and WHEREAS the Mayor and Council of the Town of Macrana find that the best interests of Marana and its citizens are served by entering into the proposed option and lease agreement. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA., that the Option and it Communications Facility 'Lease Agreement with Veri'ZOD. Wireless LLC attached to this resotution as Exhibit A for the lease of approximately 704 square feet of Town-owned property at Marana Heritage River Park, is hereby approved, and the Mayor 'is autriorized to execute it for and on behalf of the Town of Marana. IT IS FURTHER RESOLVED that the Town Manager and staff are hereby directed and, authorized to undertake all, other and further tasks required or beneficial to carry out the terms, o'bl"gat' 'I#,a I 1 6 t-ves of the opt-on and lease agreement. i ions, conctitions anct oDjec i, I PASSED AND ADOPTED by theMayor and Council of the Town of Marana, Arizona, this 21st day of February, 2017. May r E Honea ATTEST.. APPROV, AS TO FORM.- x/ ------------------- celyn ronson, Town Clerk Fr k Cassi 'Town Attorn A 110MISMOMWOOM 0005 085 5-DOCX I Marana Resolution No.2017-015 MARANA AZ F! To c....�A e��,-v kc,_-rs OPTION AND WIRELESS COMMUNICATIONS FACILITY LEASE AGREEMENT This Option and Wireless Communications Facility Lease Agreement (""Agreement") is entered into by and between the Town of Marana, an Arizona municipal corporation ("TOWN") and Verizon Wireless (VAW) LLC, a Delaware limited liability company, d/b/a Verizon Wireless ("'Verizon" or "Lessee"). TOWN-and Verizon are at times collectively referred to as "Parties" or individually as a"Party." RECITALS A. TOWN owns land located in the Town of Marana, Pima County, Arizona, at 12375 N. Heritage Park Drive ("'Proper'ty"), as further described in the Verizon Wireless TUC Heritage plan set (the ""Plan Set") attached as Exhibit A to this Agreement and incorporated herein by this reference. Specifically, the Property is described on Sheet .: No. LS-1 of the Plan Set. B. TOWN is willing to lease an area'to Verizon consisting of approximately 704 square feet located within the Property, as more particularly described on Sheet No. LS-2 of the flan Set[the "Site"} for a wireless communication facility. C. The access routes and utility easements necessary for Verizon's use under this ("'Access reementAg Routes") are described and depicted on Sheet No. LS--2 of the Plan Set. D. The Site and Access Routes are collectively referred to hereafter as the "Premises."' E. TOWN and Verizon desire to establish their respective rights and responsibilities regarding this Option and Wireless Communication Facility Lease Agreement. OPTION AGREEMENT In consideration of the mutual covenants contained in this Option Agreement, the Parties agree as follows: 1. Option Period. TOWN hereby grants to Verizon the right and option to lease the Premises for the term and in accordance with the covenants and conditions set forth in this Agreement. The Option. Period shall commence as of the signature date of the last Par to sign this Agreement and continues for a period of 12 months, unless sooner Party . terminated or exercised by Verizon. If Verizon has not terminated or exercised the option within the initial 12-month option Period, TOWN shall automatically grant a second Option Period of 12 months to Verizon, commencing upon the anniversary date of the first Option Period. EXHIBIT A 00043386.DOCX/2 2. Inspection Rights. During any Option Period, Verizon shall have the right to analyze �the suitability of the Premises for its intended use. Verizon and its employees, agents, contractors, engineers, and surveyors shall have the right to enter upon the Property to inspect, conduct, perform and examine soil borings, drainage testing, material sampling, surveys and other geological or engineering tests or studies of the Property, to apply for and obtain all licenses and permits required for Verizon's use of the Premises from all applicable governmental or regulatory entities, and to do those things on or off the Property that, in the sole opinion of Verizon, are necessary to determine the physical condition of the Property, the environmental history of the Property, TOWN's title to the Property and the feasibility or suitability of the Premises for Verizon's use as defined in this Agreement, all at Verizon's expense (the "Due Diligence Investigation"}. Activities conducted in connection with Verizon's Due Diligence Investigation shall not be deemed to constitute exercise of the option or commencement of construction of Verizon's facilities. 3. Access. Verizon shall comply with any reasonable security requirements of TOWN if the Site is located within a fenced or secured access location. 4. Government Approvals. Itis understood and agreed that Verizon's ability to use the Premises is contingent upon its obtaining all of the certificates, licenses, permits and other approvals (collectivelythe "Governmental Approvals") that may be required by pp any federal, state or local authorities which will permit Verizon's use of the Premises as set forth above. TOWN shall cooperate with Verizon in its effort to obtain such approvals and 'shall take no action which would adversely affect the status of the Property with respect to the proposed use thereof by Verizon, unless required to do so by law or regulation or to protect public health, safety or welfare. However, nothing herein shall be deemed to constitute a contractual obligation of TOWN, as a municipality, to issue a required Governmental Approval where the officer, agent or employee of TOWN responsible for the issuance of such Governmental Approval deems the issuance of such a Governmental Approval to be inappropriate. This Lease is not intended to supersede, modify or waive any requirements in the Marana Town Code intended to regulate the construction and operation of telecommunications services or the location and development of wireless communication facilities. If(1) any applications for such. Governmental Approvals should be finally rejected; (2) any Governmental Approval issued to Verizon is canceled, expires, lapses, or is otherwise withdrawn or terminated by governmental authority; or (3) Verizon determines that such Governmental Approvals may not be obtained in a timely manner, Verizon shall have the right to terminate this Agreement, as set forth in paragraph 5 of this Option Agreement. 5. Termination of O tion. If Verizon determines, during any option Period, that the Premises are not appropriate for Verizon's intended use, or if for any other reason, or no reason, Verizon decides not to lease the Premises, then Verizon shall have the right to terminate this Agreement without penalty upon written notice to TOWN at any time. If the second Option Period, as described in paragraph 1 of this Option Agreement, expires and Verizon has not exercised the option, this Agreement shall terminate. If 00043386.DOCx/2 OFFION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 2 Verizon terminates the option or fails to exercise the option, any option Fee, as set forth in paragraph 9 of this option Agreement, below, will not be prorated or refunded. b. Exercise of Option. At any time during any option Period, Verizon may notify TOWN in writingthat it is exercisin its option to lease the Premises and to commence g p the Lease with TOWN, as set forth in Article 1 of the Lease Agreement below. 7. Dama es and Indemnification. Verizon shall be responsible for any damages caused by its agents or employees to the Premises or adjacent property, including vegetation, during any option Period, and shall promptly restore the damaged property to its prior condition, less reasonable wear and tear. Verizon shall not be p tY responsible for any damages caused by the negligence or intentional misconduct of TOWN. Verizon shall appear, defend, indemnify and hold harmless TOWN, its officers, agents and employees from and against any claim for damages arising out of the acts or omissions of Verizon, its officers, agents and employees related to this Option Agreement. If Verizon fails or refuses to restore the Premises or adjacent property er to its condition as it was prior to any Option Period, TOWN is authorized to do so and charge the costs to Verizon. 8. Reservation. During any Option tion Period, unless Verizon has previously terminated. this Agreement, TOWN will not lease the Site to another person or . materiallycompromise Verizon's possible future lease of the Site for wireless p communications. 9. Consideration for Option. In consideration for the rights as described in this Option Agreement, Verizon shall pay to TOWN consideration in the amount of p g $1,500.00 for each option Period ("option Fee"). The option Fee for the initial option Period will be paid within 45 calendar days from the full execution of this Agreement. The Option Fee for the second option Period, if any, will be paid within 45 calendar days of commencement of the second option Period. The option Fee will not be prorated for any partial month either at commencement or termination. If Verizon enters into a Lease with TOWN for the Site, the option Fee will not be prorated or refunded. 10. General Provisions. The general provisions found in Articles 18 through 20 of the Lease Agreement apply to this option Agreement. .LEA SE A GIZEEMENT In consideration of the mutual covenants contained in this Lease Agreement, the Parties agree that the terms and conditions of this Lease Agreement shall apply from and after the Commencement Date as follows: Article 1. Lease Term 1.1. Commencement. The Lease shall commence on the first day of the first month after Verizon notifies TOWN in writing that Verizon is exercising its option to lease the 00043386.DOCx/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 3 Premises and to commence the Lease with TOWN, as set forth in paragraph 6 of the Option Agreement ("Commencement Date"). Verizon (hereinafter referred to as "'Lessee") shall notify TOWN in writing of its intention to start construction on the Site and the start date. The Commencement Date shall be noted here once it is known and shall be incorporated herein by this reference as if fully set forth in this Agreement at the time of execution.- 1.2. xecution:1.2. Term. The Lease shall be for a terra of five years ("'Term"') unless sooner terminated as provided herein. 1.3. Renewal. The Lease will automatically*renew for up to five successive five-year periods (""Renewal Terms") on the same terms and conditions as set forth herein, unless sooner terminated as provided in this Lease Agreement. The Term and Renewal Terms may collectively be referred to as the "Lease Term." 1.4. Holding Over. Any holding over after the expiration of the Lease Term., with the consent of TOWN shall be construed to be a tenancy from month to month at one and one-half times the rents herein specified (prorated on a monthly basis). The provisions of this Lease Agreement shall apply to such holding over period. p pp Y any Y Article 2. hent 2.1. Month) g Base Rent. During the Lease Term, Lessee shall pay to TOWN monthly rent of $1,500.40 "Rent" in consideration for the Lease. The first rental payment shall be made within 30 days after the Commencement Date, and shall be prorated through the end of the month. All subsequent rental payments shall be made to TOWN on or before the first day of the month in advance. 2.2. 'Adjustment. Beginning on the first anniversary of the Commencement Date, and on each anniversary of the Commencement Date thereafter, Rent shall increase by an amount equal to 3% above the Rent applicable 1n the immediately preceding year. 2.3. Payment of Rent. All Rent shall be payable to the Town of Marana, 11555 W. v PY Civic center Drive, Marana, Arizona 85653; Attention: Finance Department. Article 3. Permissible Use 3.1. In General. The Property may be used by Lessee for the transmission and reception of radio communication signals and for the construction, installation, nstallation, operation, maintenance and repair of related support facilities (such as tower and base, antennas, microwave dishes, equipment shelters and/or cabinets) but only for the rovision of what is commonly known as cellular telephone service [whether or not p • technically referred to as Personal Communications Service, or some other term) by the use of "'personal wireless service facilities (as such phrase is defined 'n §704 of the Federal Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (1996), partially artiall codified at 47 U.S.C. § 332(c)(7)(C)(2), hereinafter "'1996 Act Section 704"') and 00043386.DOCX/2 OPTION AND WIRELESS COMMUNICATION FACrILi'TX LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 4 not for any other purpose. Lessee shall, at its expense, comply with all present and future federal, state, and local laws, ordinances, rules and regulations (including but not limited to laws and ordinances relating to health, safety, radio frequency emissions, and radiation) m* connection with the use of (and operations, maintenance, construction and/or installations ata the Property, 3.2. Maintenance of Government Approvals. Lessee shall be responsible for maintaining during the Lease Term all Government Approvals, as defined in paragraph 4 of the option Agreement, above, that may be required by any federal, state or local authorities for the use of the Premises and the conduct of its business related to the Premises. 3.3. Additional Providers. Lessee may allow third party telecommunications providers ("'Additional Providers") to co-locate on Lessee's antenna structure, as generally described and depicted on Sheet Nos. Z-3 and Z-4 of the Plan Set. All persons, other than Lessee, providing telecommunications services from. the Lessee Facilities or co-locating on the antenna structure shall do so only as sublessees of Lessee in accordance with the,provisions of Article 9 of this Lease relating to subletting. All Additional Providers shall hold a valid telecommunications license during any period of time that the Additional Provider co-locates upon or otherwise uses the Premises and/or the Lessee Facilities, or any part thereof, for telecommunications services. 3.4. Corn fiance with Laws. Lessee shall comply with all applicable laws, including but not limited to zoning and environmental laws relating to its use and possession of the Premises. Article 4, Absence of Warranties Lessee has leased the Premises after a full and complete inspection thereof, as well as the title thereto, and knowledge of its present uses and nonoses. Lessee accepts the Premises in the condition or state in which the Premises now exist without any representation or warranty; express or implied in fact or law, by TOWN and without recourse to TOWN, as to the title thereto, the nature, condition, or usability thereof or the use or uses to which the Premises or any part thereof may be put, except for the Warranty of Quiet Enjoyment set forth in Article 16 below. Except as otherwise provided in this Agreement, TOWN shall not be required to furnish any services or facilities or to make any repairs or alterations in or to the Premises or to provide any off-Premises improvements, such as utilities or paving, or other forms of access to the Premises, other than what may already exist as of the Commencement Date. Lessee assumes the full and sole responsibility for the condition, constructYon, operation, repair, demolition, replacement, maintenance, and management of the Premises. Notwithstanding anything to the contrary contained in this Agreement, TOWN shall, at its sole cost and expense, repair, replace and maintain the Site in good condition and repair as needed for Lessee's operation and use of the its facilities. 00043386.DOCX/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 5 Article 5. Improvements 5.1. Lessee Facilities. Lessee has the right to construct, maintain, install, repair secure, replace, remove and operate on the Premises wireless communications facilities, including but not limited to a foundation, utility lines, transmission lines, an air conditioned equipment shelter(s) and/or an air conditioned equipment room, electronic equipment, transmitting and receiving antennas, microwave dishes, antennas and equipment, a power generator and generator pad, and supporting equipment and structures, and security fencing ('"Lessee Facilities") as generally described and depicted on the site plan on Sheet Nos. Z-1, Z-2, Z-3 and,Z-4 of the Plan Set (the "Site Plan"). The Parties acknowledge that the Site Plan may be revised as a result of the Government Approvals process, including without limitation TOWN's Conditional Use Permit process, and that any such revisions will not require revision of this Agreement or re-recording of the Plan Set. 5.2. Utili Lines. Lessee at its own expense shall install utility lines in the approved Access Routes to the Site necessary for Lessee Facilities and consistent with approval of the utility company. 5.3. Construction. All Lessee Facilities shall be constructed and installed at Lessee's sole cost and in ana expense expd good and workmanlike manner. Lessee shall obtain TOWN's prior approval of construction plans and specifications for the Lessee Facilities,which shall not be unreasonably withheld, conditioned or delayed. All Lessee Facilities shall be constructed or installed in compliance with specifications of plans approvedY b TOWN. Within 30 days after completion of construction, Lessee shall provide TOWN with as--built drawings of the Lessee Facilities. 5.4. Lien-free Construction. Lessee shall keep the Premises and all improvements thereon free of any mechanic's or m.aterialm.en's liens or liens of any kind or nature for any work done, labor performed, or material furnished on or to the Premises. If any lien is filed, Lessee shall, at its sole cost, cause such lien to be removed from the Premises within 60 days of notice or becoming aware of the lien. 5.5. Title to Improvements. Title to the Lessee Facilities and any equipment placed on the Premises by Lessee shall be held by Lessee or its lenders or assigns and are not fixtures, unless abandoned with permission of TOWN pursuant to paragraph 5.85.8 (Removal or Abandonment). 5.6. Alteration or Additional Improvements. Lessee shall make no alterations or additional improvements to or upon the Premises beyond those described in the plans and specifications approved by TOWN without first obtaining written approval of TOWN. Nothing herein shall prevent Lessee from maintaining the Lessee Facilities or from replacing equipment due to wear and tear or technological advancements rovided that such upgrades or replacements are with "like-kind" equipment which is p . comparable in dimensions and weight to equipment described in the plans and s ecifications and such accommodations comply with all requirements of this p Agreement, the TOWN Conditional Use Permit, Municipal Code, Land Development 00043386.DOCx/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 6 Code or other re uirements. Approved alterations, additions, replacements (Zoning) q and upgrades shall become part of Lessee Facilities as that term 's used in this Agreement. 5.7. Maintenance. Lessee at its own expense shall maintain the Premises and the Lessee Facilities in good repair and in a manner suitable to TOWN so as not to conflict g p . with any adjacent TOWN operations. Lessee shall have sole responsibility for the � maintenance, repair, and security of the Lessee Facilities. 5.8. Removal or Abandonment. Unless TOWN in writing allows or requires Lessee to abandon the Lessee Facilities in place, Lessee at its sole expense shall remove the Lessee Facilities on or before the expiration or within 90 days after any earlier termination of this Lease Agreement. Such. removal shall be done in a workmanlike g and careful manner and without interference or damage to any other facilities or operations on the Premises. Lessee shall repair any damage to the Premises caused by p such removal to the reasonable satisfaction of TOWN. . Upon no less than 90 days, noticerior to the expiration of this Lease Agreement, or within 60 days of any earlier p p termination, TOWN may require Lessee to abandon the Lessee Facilities 1n place at no cost to TOWN if Lessee terminates the Lease and provided that TOWN has not materiallybreached this Agreement. Title to any LesseeFacilities which are abandoned g in lace with the written permission of TOWN shall be deemed transferred to TOWN p p . . . without compensation to Lessee. Said abandoned Lessee Facilities shall thereafter be p . the sole property of TOWN "as-is" without any warranty, express or implied, including p p tY any warranties of particular purpose. Article 6. Access and Utilities b.1. Access to Site. TOWN shall provide Lessee, Lessee's employees, agents, contractors, subcontractors and assigns with access to the Site 24 hours a day, seven g days a week, at no charge to Lessee. Lessee shall comply with reasonable security requirements of TOWN related to accessing the Site. 6.2. Non-Exclusive Access Routes. Lessee, Its agents, employees and contractors, shall have a non-exclusive right and easement for pedestrian and vehicular ingress and egress across, and Lessee shall have an easement for utility lines to access the Site via the Access Routes described or depicted generally in the Plan Set. TOWN and Lessee each shall conduct operations within the Access Routes so as to cause minimal or no interference to others. 6.3. Maintenance of Road wa s. TOWN shall maintain all access roadways from the nearestp roadway ublic roadto the Premises in a manner sufficient to allow pedestrian and . vehicular access at all times under normal weather conditions. TOWN shall be re responsible for maintainingand airing such roadways, at its sole expense, except,for p any damage caused by Lessee's use of such roadways. 00443386.DOCX/2 OPTION AND'WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 7 6.4. Payment of Utilities. Lessee shall, at its own expense, install separate meters for electricity and other utilities necessary for Lessee Facilities and shall timely pay all utility charges associated therewith. Article 7. Interference 7.1. Interference with Existing Uses. Lessee's installation, operation and maintenance of Lessee Facilities shall not damage or interfere in any way with existing TOWN operations or related activities or other existing lessee or licensee activities. Lessee agrees to cease all such actions which materially interfere with existing activities u on written not-ice of such interference; provided, however, in such case Lessee shall p have the right to terminate the Lease. 7.2. Interference and New Uses. Subsequent to the installation of the Lessee Facilities, TOWN will not, and will not permit its lessees or licensees to, install new Y p e ui ment on or make an alterations to the Premises or property contiguous thereto q owned or controlled by TOWN, if such modifications are likely to cause a material interference with Lessee's operations. In the event interference occurs, TOWN agrees to use best efforts to eliminate any material interference within a reasonable time period. TOWN's failure to comply with this paragraph shall be a material breach of this Lease Agreement. Article S. Fees and Taxes Lessee shallpaY, as they become due and payable, all fees, charges, taxes and expenses required for licenses and/or permits required for or occasioned by Lessee's use of the Premises. Lessee shall pay all real and personal property taxes assessed against the Lessee Facilities. TOWN shall pay when due, all real property taxes and all other takes, fees and assessments attributable to the Premises or this Lease Agreement. Article 9. Assignment and Subletting 9.1. Assi ment. Lessee may assign the Lease Agreement to another company, with TOWN's written consent, which shall not be unreasonably withheld, conditioned or delayed; provided, however, Lessee may i} assign or transfer this Lease Agreement to a financially viable parent, subsidiary, or affiliate, or to any entity which acquires all or substantially all of Lessee's . assets in the market defined by the Federal Communications Commission in which the Property is located by reason of a merger, ac uisition, or other business reorganization without TOWN consent, and, ii} Lessee may assign the Lease Agreement to a commercial lending institution solely as security for financing purposes without TOWN consent. In the event of an assignment, assignee shall assume all obligations and liabilities of Lessee, known and unknown, under the Lease Agreement arising both before and after the assignment date. 00043386.DOCX/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 8 9.2. Bar l r xp!gy. Any person or entity to which this Lease Agreement is assigned or transferred asy p aspart of an bankruptcy roceeding shall be deemed without further act to yp have assumed all of the liabilities and obligations of Lessee arising under this Lease Agreement on and after the date of such assignment. Any such assignee or transferee • shall upon demand execute and deliver to TOWN an "instrument confirming such assumption or transference. Any monies or other considerations payable or otherwise to be delivered in connection with such assignment or transference shall be paid to TOWN, shall be the exclusive property of TOWN, and shall not constitute "property" of the Lessee or of the estate of Lessee within the meaning of the Bankruptcy Code. Any monies or other considerations constituting TOWN's property under the preceding sentence not paid or delivered to TOWN shall be held in trust for the benefit of TOWN and be promptly paid to TOWN. 9.3. Sublettin Except as provided in paragraphs 9.4 and 9.5 below, Lessee may not sublet any portion of the Property, the -Premises or the Lessee Facilities without the prior written consent of TOWN, which consent may be withheld for any reason or no reason in TOWN's sole discretion. 9.4. Additional Providers as Sublessees. Lessee may allow Additional Providers to co-locate upon Lessee's antenna structure, as set forth in paragraph 3.3 above and this paragraph 9.4, provided that each such Additional Provider is a sublessee and Lessee and each such sublessee complies with all of the applicable terms and conditions of this Lease. The sublease of the Premises, the Lessee Facilities, or any part thereof, shall not relieve Lessee of any obligations, responsibilities or liabilities Lessee may have under this Lease. 9.4.1. If Lessee desires -to co-locate Additional Providers on Lessee's antenna structure, Additional Providers shall be required to obtain a separate ground lease from TOWN for ground space on the Property and a separate sublease from Lessee for space on Lessees antenna structure. The Parties understand that: (i) TOWN and Lessee shall reasonably cooperate to locate Additional Providers on the Property; (ii') TOWN may not charge any fee to Lessee for subleasing space on Lessee's antenna structure; (iii) Lessee shall not be liable to TOWN in any way for failure to enter into, maintain or renew a sublease with Additional Providers for the use of Lessee's antenna structure; (iv) TOWN shall not be liable to Lessee in any way for failure to enter into, maintain or renew a ground lease with Additional Providers for the use of TOWN's Property; (v) Lessee shall have the right to determine in its sole discretion whether it will sublease any portion of the antenna structure; and (vi) TOWN shall have the right to determine in its sole discretion whether it will lease any portion of its Property to Additional Providers. 9.4.2. If Lessee subleases space on Lessee's antenna structure, Lessee shall receive 100% of any rental paid by Additional Providers for such space. If TOWN leases ground space on the Property, TOWN shall receive 100% of any rental paid by Additional Providers for such ground space. Additional Providers shall, be instructed to pay the foregoing percentage amounts directly to TOWN and Lessee. 000433$6.DOcx/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 9 Lessee shall not be responsible to TOWN for the collection or payment of rents by p , Additional Providers to TOWN, and TOWN shall not be responsible to Lessee for the collection orpaY ment of rents by Additional Providers to Lessee. Neither Party shall have liability to the other Party in the event of failure of payment by Additional Providers. 9.5. Sublease Re uiremepts. All of the following requirements must be met prior to any sublease to an Additional Provider for collocation purposes: 9.5,1. All subleases shall (a) be in writing, (b) identify the Additional Provider as the sublessee, (c) require the sublessee to comply with all of the terms and conditions of this Lease to the same extent as Lessee must comply, and (c) be acceptable in form to the Marana Town Attorney. 9.5.2. Lessee and sublessee shall, at their own expense, obtain all necessary zoning, land use or similar approvals for the collocation on the Premises. 9.5.3. Lessee shall furnish TOWN with a set of the plans and specifications for any alteration of the Lessee Facilities or the Premises required for the Additional Provider to collocate on the Lessee Facilities, including, but not limited to, any additional antennae, power source or related equipment and improvements. Prior to the commencement of any construction or installation of any such alteration by the sublessee, TOWN shall have determined that the alterations are acceptable and shall have reviewed thep lans and specifications and determined what additional permits and zoning requirements, if any, are applicable. Article 14. Default and Remedies 10.1. Default bv Lessee. Lessee shall be deemed in default of this Lease if any of the following occurs: 10.1.1. Lessee fails to pay Rent in compliance with Article Z of this Lease y Agreement or an other sums to TOWN when due, and does not cure such default within ten days of receipt of written notice from. TOWN; or 10.1.2. If Lessee fails to comply with the performance of any other covenant or condition of this Lease Agreement and does not cure such other default within 30 days after written notice from TOWN specifying the default complained of, unless such cannot reasonably be cured within 30 days, in which case Lessee will not be in defaulty y default as long as Lessee commences to cure the default within the 30-day period and diligently pursues such cure to completion;or 10.1.3. If Lessee abandons the Premises and fails to pay rent or otherwise comply with the requirements of this Agreement for a-period of four months or longer;or 10.1.4. If Lessee is adjudicated as bankrupt or makes any assignment for the benefit of creditors. 00043386.DOCX/2 OFFION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 10 10.2. TOWN's Remedies in Event of Lessee Default. In the event of a default by Lessee, TOWN shall notify Lessee, in writing, of said default. If Lessee fails to cure within 30 days after the date of the notice, or in such other applicable time period as Y . outlined above, in addition to and not exclusive of any other remedy available to TOWN by operation of law, TOWN shall have the right, at its option, to terminate the Lease Agreement in which event Lessee shall immediately remove the Lessee Facilities and pay TOWN a sum of money equal to the total of: (i) the amount of the unpaid Rent accrued through the date of termination; and (ii) any other amount necessary to compensate TOWN for all detriment proximately caused by Lessee's failure to perforin its obligations under the Lease. 10.3. Cure by TOWN. In the event of any default of this Lease Agreement by Lessee, TOWN may at any time, after notice, cure the default for the account of wid. at the expense of the Lessee. If TOWN is compelled to pay or elects to pay any sum of money or to do any act which will require the payment of any sure of money or is compelled to incur any expense, including reasonable attorney fees 1n *nstituting, prosecuting or defending any action to enforce TOWN's rights under this Lease, the sums so paid by TOWN, with all interest, costs and damages, shall be deemed to be Additional Rent and shall be due from the Lessee to TOWN on the first day of the month following the incurring of the respective expenses. 10.4. Default by TOWN. TOWN shall be in default if TOWN fails to comply with theY p erformance of an covenant or condition of this Lease Agreement and does not cure such other default within 30 days after written notice from Lessee.specifying the default complained of, unless such default cannot reasonably be cured within 30 days, in which case TOWN will not be in default as long as TOWN commences to cure the default within the 30-day period and diligently pursues such cure to completion. 10.5. Lessee's Remedies in Event of TOWN Default. In the event of a TOWN default -� and failure to cure, in addition to and not exclusive of any other remedy available to Lessee by operation of law, Lessee may terminate this Lease upon written notice to TOWN and shall remove the Lessee Facilities as set forth in paragraph 5.8. Article 11. Voluntary Termination 11.1. Voluntary Termination by Lessee. This Lease Agreement may be terminated by Lessee without further liability on 30 days' prior written notice (i) if Lessee is unable to reasonably obtain or maintain any certificate, license, permit, authority or approval from any governmental authority, thus, restricting Lessee from installing, removing, replacing, maintaining oroperating ffie Lessee Facilities or using the Premises inthe manner intended by Lessee; (1'1') if Lessee determines that the Premises are not appropriate for its operations for economic, environmental or technological reasons, pp ... including without limitation, signal strength, coverage or 'interference, or (1x1) Lessee otherwise determines, within its sole discretion, that it will be unable to use the Premises for Lessee's intended purpose. 00043386.DOCX/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 11 11.2. Voluntary Termination bv TOWN. 11.2.1. During the first Renewal Term. (years 6-10), this Lease Agreement may be terminated by TOWN without further liability to Lessee if TOWN reasonably determines termination is necessary to serve a governmental (non-proprietary) purpose, upon one year's prior written notice to Lessee. 11.2.2. At any time after the first Renewal Terra (year 11 or subsequent), this Agreement may be terminated by TOWN without further liability to Lessee upon one year's prior written notice to Lessee. Article 12. Damage or Destruction of Lessee Facilities If the Lessee Facilities or any portion of the Lessee Facilities are destroyed or damaged so as to materiallyinterfere with effective use of the Lessee Facilities through no fault or ne li ence of Lessee, Lessee may elect to terminate this Lease Agreement upon 30 days , g g written notice. to TOWN. In such event, Lessee shall promptly remove the Lessee Facilities from the Premises as set forth in paragraph 5.8 and this Lease Agreement (and Lessee's obligation to pay rent) shall terminate upon Lessee's fulfillment of the same. Upon termination, Lessee shall be entitled to the reimbursement of any Rent prepaid by p Lessee. TOWN shall have no obligation to repair any damage to any portion of the Premises. Article 13. condemnation If the Premises are taken b eminent domain, this Lease Agreement shall terminate as of the date title to the Premises vests �.n the condemning authority. If a portion of the Premises is taken by eminent domain so as to materially`hinder effective use of the Premises by Lessee, either Party shall have the right to terminate this Lease Agreement as of said date of title transfer, by giving 30 days written notice to the other Party. In the event of any taking under the power of eminent domain, compensation. shall be as determined by applicable law. Article 14. Indemnity 14.1.. Disclaimer of Liability. TOWN shall not at any time be liable for injury or damage occurring to an person or property from any cause whatsoever arising out of g g Y p p p tY Lessee's construction, maintenance, repair, use, operation, condition or dismantling of the Premises, unless such injury or damage is caused by the negligence of TOWN or TOWN's employees. 1.4.2. Indemn.i.ficati.on by--Lessee. Lessee shall, at its sole cost and expense, indemnify and hold harmless TOWN and all associated., affiliated, allied and subsidiary entities of TOWN, now existing or hereinafter created, and their respective officers, boards, commissions, employees, agents, attorneys, and contractors (hereinafter referred to as "Indemnitees"), from and against: 00043386.DOCX/2 OPTION AND'WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 12 14.2.1. Any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, losses and. expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants}, which may be imposed upon, incurred by, or be asserted against the Indemnitees by reason of any act or omission of Lessee, its personnel, employees, agents, contractors or subcontractors, resulting in personal injury, bodily injury, sickness, disease or death to any person or damage to, loss of or destruction of tangible or intangible property, libel, slander, g invasion of privacy and unauthorized use of any trademark, trade name, copyr.ight, patent,, service mark or any other right of any person, firm or corporation, which may arise out of or be 'n any way connected w*th the construction, in.stallat�on, y . operation, maintenance, use or condition of the Premises or the Lessee's failure to comply with any federal, state or local statute, ordinance or regulation. 14.2.2. Any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and other consultants}, which are 'imposed upon, incurred by or asserted against the Indemn tees by reason of any clam or lien arising out of work, labor, materials or supplies provided or supplied to Lessee, *ts contractors or subcontractors, for the installation, construction, operation, maintenance or use of the Premises and, upon the written request of TOWN, Lessee shall cause such claim or lien covering TOWN's property to be discharged or bonded within 30 days following such request. 14.2.3. Any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without li.nutation, reasonable fees and expenses of attorneys, expert witnesses and consultants),which play be imposed upon, incurred by or be. asserted against the Indemnitees by reason of any financing or securities offering by Lessee or its affiliates for violations of the common law or any laws, statutes,or regulations of the State of Arizona or United States,including those of the Federal Securities and Exchange Commission,whether by Lessee or otherwise. 14.3. Lessee's Right.. of Recove . Nothing herein shall be construed to waive Lessee's rights to seek recovery against TOWN for TOWN's negligence or willful misconduct other than lost profits or revenues caused to Lessee's operations, or to seek recovery against third persons for any damages caused to property or injury to persons, in, upon or about the Premises by such other persons. 14.4. Assum tion of Risk. Lessee undertakes and assumes for its officers, agents, affiliates, contractors and subcontractors and employees (collectively "Lessee" for the of this paragraph 14.4), all risk of dangerous conditions, if any, on or about the purpose Premises, and Lessee hereby agrees to indemnify and hold harmless the Indemnitees Y against and from an claim asserted or liability imposed upon the Indemnitees for p �'Y personal inlu' or property damage to any person (other than from Indernnitee's � arising negligence)li out of Lessee's installation, operation, maintenance, condition or use of g the Premises or Lessee's failure to comply with any federal, state or local statute, ordinance or regulation. 00043386.Docx/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEME r:VERIZON/TUC HERITAGE SITE 6/22/2016 13 14.5. Defense of Indemnitees. If any action or proceeding shall be brought against the Indemnitees by reason of any matter for which the Indemnitees are indemnified hereunder, Lessee shall, upon notice from any of the Indemm-tees, at Lessee's sole cost and expense, resist and defend the same with legal counsel selected by Lessee and approved by TOWN; provided however, that Lessee shall not admit liability 'in any such matter on behalf of the Indemnitees without the written consent of TOWN and provided further that Indemnitees shall not admit liabili for, nor enter into any compromise or settlement of, any claim for which they are indemnified hereunder, without the prior written consent of Lessee. 14.6. Notice Cooperation and Ex enses. 14.6.1. TOWN shall give Lessee prompt notice of the making of any claim or commencement of any action, suit or other proceeding covered by the provisions of this Article. Nothing herein shall be deemed to prevent TOWN from cooperating with Lessee and participating in the defense of any litigation by TOWN's own counsel. Lessee shall pay all reasonable, third-party, out-of-pocket expenses incurred by TOWN in response to any such actions, suits or proceedings. These expenses shall include all reasonable, third-party, out-of-pocket expenses such as reasonable attorney fees and the reasonable expenses of TOWN's agents, employees or expert witnesses, and disbursements and liabilities assumed by TOWN in connection with such suits, actions or proceedings but shall not include attorneys' fees for services that are unnecessarily duplicative of services provided TOWN by Lessee. 14.6.2. If Lessee requests TOWN assist it in such defense then Lessee shall pay all reasonable expenses incurred by TOWN in response thereto, including defending itself with regard to any such actions, suits or proceedings.' These expenses shall include all out-of-pocket expenses such as attorney fees and shall also include the costs of any services rendered by the TOWN's attorney, and the actual expenses of TOWNr s agents, employees or expert witrnesses, and disbursements and liabilities assumed by TOWN in connection with such suits, actions or proceedings. 1.4.7. Negligence of Indemnitees. Lessee's obligation to indemnify Indemnitees under this Lease Agreement shall not extend to claims, losses, and other matters covered hereunder that are caused or contributed to by the negligence or willful misconduct of one or more Indemnitees. 1.4.8. Indemnification by TOWN. TOWN shall indemnify and hold harmless Lessee against an claim. of liability or loss from personal injury or property damage resulting g Y from or arising out of the negligence of TOWN and/or the Indemnitees, except to the extent such claims or damages may be due to or caused by the negligence or willful misconduct of Lessee, or its personnel, employees, agents, contractors or subcontractors. 14.9. Indemnities and Insurance Cumulative. Lessee's obligations to in, do not diminish in any way Lessee's obligations to insure, and Lessee's obligations to 04043386.DOCX/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON'TUC HERITAGE SITE 6/22/2016 14 insure do not diminish in any way Lessee's obligations to indemnify. Lessee's obligations to indemnify and provide insurance are in addition to, and do not limit, any and all other liabilities or obligations of Lessee under or connected with this Agreement. The amount andtYP e of insurance coverage required by this Agreement will in no way be construed as limiting the scope of the indemnities in this paragraph. Article 1.5. Regulated/Hazardous Substances Indemnification 15.1. Applicable Laws. Lessee recognizes that assuring protection of public health, welfare and the environment from activities upon the Premises during the Lease Term is an important consideration for TOWN and during the Lease Term the federal, state and local laws, rules, regulations and ordinances relating to pollution, protection of the environment, p ublic health, safety or industrial hygiene (hereinafter referred to as the "Applicable Laws") will change. Lessee warrants that throughout the Lease Term, Lessee will maintain compliance with all Applicable Laws. 15.2. Regulated Substances. Lessee further warrants, unless disclosed and agreed to b TOWN, that no liquid, solid, semi--solid or gaseous Regulated Substances as defined y q herein which are, or during the Lease Term may become, subject to regulation under Applicable Laws, will be used on the Premises, except for diesel fuel. "Regulated pP Substances" include, but are not limited to, any and all substances, materials or wastes regulated under the Resource Conservation and Recovery Act, 43 U.S.C. Section 8909, et g seq.; the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 960 ., et. seq.; the Toxic Substances Control Act, 15 U.S.C. Section 2601, et seq.; the Arizona Hazardous Waste Management Act, A.R.S. Section 49-921, et seq.; the Arizona Underground Storage Tank Regulation Act, A.R.S. Section 49101, et seq.; and the rules and regulations adopted and guidelines promulgated pursuant to the Applicable Laws. TOWN agrees that TOWN will not use, generate, store or dispose of, or permit the use, generation, storage or disposal of, any Regulated Substances on, under, about or within the Property in violation of any law or regulation. 15.3. Discharges and Emissions. In addition to the other requirements of this Article 15, Lessee shall not release, discharge, leak or emit, or permit to be released, discharged, leaked or emitted into the atmosphere, ground, soil, sewer system, surface water or groundwater an substance if such substance (as reasonably determined by TOWN, or any governmental authority) does or may pollute or contaminate the same, or may adverselyaffect: 1) the environment, ii} the health, welfare or safety of persons whether located on the Premises or elsewhere, or iii} the condition, value, use or enjoyment of the Premises or any other real or personal property. 15.4. Permits. Lessee has or will timely obtain, maintain and comply with all provisions of all permits, licenses and other authorizations which are required under the Applicable Laws (hereinafter referred to as the "Permits"). 15.5. Notices Required. Lessee shall notify TOWN in writing of any allegations by any governmental authority or other person or entity of any event of non.-compliance 00043386.DOCX/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON'TUC HERITAGE SITE 6/22/2016 15 with the Applicable Laws or Permits. Lessee shall also notify TOWN in writing of any allegations by any governmental authority or other person or entity, of any events, conditions, circumstances, activities, practices, Mncidents, actions or plans which may interfere with or prevent continued compliance with Applicable Laws, Permits or the provisions of this Article, or which may give rise to any common law or legal liability, or otherwise form the basis of any claim, action, suit, proceeding, hearing or investigation, based on or related to the generation, manufacture, distribution, use, treatment, e,storag disposal,osal, transport, or handling, or the em fission, discharge, release or threatened release into the environment, of any pollutant, contaminant or Regulated Substance. Lessee shall give the notice required by this paragraph 15.5 within five business days of when Lessee becomes aware of any allegations described in this paragraph. Written notice under this paragraph may be provided by email. 15.6. TOWN Inspections. TOWN, or its authorized representative, agent or contractor, shall have the right, upon reasonable notice, to inspect the Premises and to review and copy documents, records, and data maintained by Lessee relating to substances used and stored on the Premises or disposed of, released or otherwise removed from the Premises, in order to assure itself that Lessee is in compliance with the provisions of this Article 15. In addition, TOWN shall have the right, at its expense, to perform periodic environmental ronmental inspections as TOWN deems necessary using the services of qualified and duly licensed environmental engineers approved by Lessee whose approval thereof may not be unreasonably withheld. The said engineers shall pp . conduct such sampling and testing of soils, water, substances and emissions as TOWN deems necessary to assure itself that Lessee is in' compliance with the provisions of this Article. 15.7. Reimbursement of TOWN Costs• Remediation. If the results of the inspection indicate a need for further testing and/or remediation as a result of Lessee's use of the Premises in order to comply with Arizona Department of Environmental Quality or Environmental Protection Agency (EPA) remediation standards or (ADEQ) g guidelines, then Lessee hereby agrees to reimburse TOWN for,its reasonable inspection costs and to pay for such additional testing and remediation as will be required as a consequence of Lessee's use of the Premises. Should remediation be required as a consequence of Lessee's use of Premises, Lessee shall promptly undertake such remediation as is necessary to restore the condition of the Premises and shall diligently pursue such work to completion. Lessee's failure to timely perform its obligations under this Article shall be considered a material breach of this Lease, and Lessee's obligations under this Article shall continue beyond the expiration or termination hereof. Nothing in this Article shall constitute a waiver of any right of Lessee, including without limitation, the right to receive contribution from any individual or entity responsible for contamination of any part of the Premises. 15.5. Termination. Any instance of non-compliance with Applicable Laws, Permits or thep rovisions of this Article shall be grounds for immediate termination of this Lease by TOWN. 00043386.Dock/2 OP'T'ION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 16 15.9. Indemnification_by,-Lessee. To the fullest extent permitted by law, Lessee agrees to indemnify, defend and hold TOWN harmless for any costs of legally required remediation of environmental contamination and from any claims, demands, actions, suits, proceedings, hearings, investigations, responsibility, liability, orders, injunctions, judgments,ments, fines, damages and losses of any nature whatsoever, arising out of or relating in any way to Lessee's present or future use of, or activities or operations on or at, the Premises, or arising from or relating to any breach of the provisions of this Article. Lessee also agrees to indemnify and hold TOWN harmless for any costs and expenses incurred in connection therewith, including without limitation, any attorneys' and expert witness fees, investigation, clean up, removal, disposal, remedial, corrective, or mitigating action costs, fines and penalties related in any way to Lessee's use of the Premises. These indemnities shall survive the termination of this Lease. 15.10. Indemnification by TOWN. TOWN agrees to defend and indemnify Lessee and Lessee's partners, affiliates, agents and employees against any and all losses, liabilities, claims and/or costs ('including reasonable attorneys' fees and costs) arising from. TOWN's breach of TOWN's agreement not to use, generate, store or dispose of, or permit the use, generation, storage or disposal of, any Regulated Substances on, under, about or within the Property in violation of any law or regulation, as contained in paragraph 15.2 above. Article 16. Warranty of Quiet Enjoyment TOWN covenants that so long as Lessee performs the covenants, terms and conditions required of Lessee contained herein, Lessee shall peaceably and quietly have, hold and enjoy the Premises for the aforesaid term and any extensions thereof, and TOWN shall not in any manner interfere with or disrupt the Lessee's business or frustrate Lessee's intended use of the Property. Article 17. Waiver of Lien TOWN hereby waives any and all lien rights it may have, statutory or otherwise concerning the Lessee Facilities or any portion thereof which shall be deemed personal property for the purposes of this Lease Agreement, whether or not the same is deemed real orp property ro ersonal er under applicable laws, and TOWN gives Lessee and p Mortgagees the right to remove all or any' portion of the same from time to time, whether before or after a default under this Agreement, in Lessee's and/or Mortgagee's sole discretion and without TOWN's consent. Any Mortgagee shall contact TOWN prior to removal and TOWN may require Mortgagee to indemnify TOWN for any damages caused to the Premises. Article 18. Insurance 18.1. Cove During the Option Period and during the Lease Term, including any extensions, Lessee shall maintain, or cause to be maintained, in full force and effect and at its sole cost and expense, the following types and limits of insurance. The 00043386.DOCX/2 OPTION AND WIRELESS COMMUNICATION FACILI'T'Y LEASE AGREEMENT:VERIZON/TUc HERITAGE SITE 6/22/2016 17 coverage amounts set forth below may be met by a combination of underlying and umbrellap olicies so long as in combination the limits equal or exceed those stated. 18.1.1. workers' Compensation insurance meeting applicable statutory requirements and employer's liability insurance with minimum limits of $100,000 for each accident/disease/policy limit. 18.1.2. commercial general liability insurance with minimum limits of$1,000,000 as the combined single limit for each occurrence of bodily injury and property damage and $2,000,000 general aggregate. The policy shall provide blanket contractual liability insurance for all written contracts, products and completed operations liab l�ty, 41 independent contractor's liability, and cross liability; and coverage for property p damage from perils of explosion, collapse or damage to underground utilities, commonly known as xCU coverage. 18.1.3. Automobile liabilityinsurance coveringall owned, hired, and non-owned vehicles in use by Lessee, with mu" "mum limits of $1,000,000 as the combined single limit for each accident for bodily injury and property damage. 18.1.4. At the start of and during the period of any construction., builders all-risk insurance, together with an installation -floater or equivalent property coverage covering cables, materials, machinery and supplies of any nature whatsoever which are to be used in or incidental to the installation of the Lessee Facilities. Upon completion of the installation of the Lessee Facilities, Lessee shall substitute for the foregoing insurance policies of fire, extended coverage and vandalism and malicious g g mischief insurance on the Premises. The amount of insurance at all times shall be representative of the insurable values installed or constructed. 18.1.5. Business interruption insurance coverage in an amount sufficient to cover such loss of revenues, for the period of time which it would take, under normal circumstances, to repair or replace that part(s) of the Premises which is damaged and caused the loss of revenue. 18.1.6. All policies shall be written on an occurrence and not on a "claims made" basis. 18.2. Additional Insureds. The commercial general liability and automobile liability policies shall include TOWN as an additional insured as TOWN's interest may appear (herein referred to as the "Additional Insureds"). 18.3. Evidence of Insurance. current certificates of insurance and any required endorsements for each insurance policy required to be obtained and maintained by Lessee in compliance with this Article shall be filed and maintained with TOWN within p 30 days of execution of this Agreement and within ten days of any renewal or change in sucholicies. If TOWN is not provided current certificates and endorsements and must p p request an updated certificate or endorsement, Lessee shall pay an administrative fee of $25.00 for each certificate or endorsement so requested. 00043386.DOCx/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 18 18.4. Lessee Insurance Prima Lessee's insurance shall be primary insurance with respect to Lessee's obligations under this Agreement and in the protection of TOWN as an Additional Insured. 18.5. waiver. All policies, including workers' Compensation and Employers liabilityinsurance, shall contain a waiver of rights of recovery (subrogation) against TOWN, its agents, representatives, officials, officers and employees for any claims arising out of the work or services of Lessee. Lessee shall arrange to have such subrogation waivers incorporated into each policy via formal written endorsement thereto. 18.6. Representation of Covera e Adequacy. By requiring insurance herein, TOWN does not represent that coverage and limits will be adequate to protect Lessee. Failure to demand evidence of compliance with the insurance requirements set forth in this Agreement or failure to identify any insurance def iciency shall not relieve Lessee from, nor be construed or deemed a waiver of, Lessees obligation to maintain the required insurance at all times during the performance of the Agreement. 18.7. Notice of Claims. Lessee shall immediately advise TOWN of any claim or litigation that may result in liability to TOWN. 18.8. Cancellation of Policies of Insurance. Lessee shall give TOWN at least 30 calendar days' written notice prior to a planned cancellation or reduction of any coverage required by this Article. Lessee shall give TOWN immediate notice of any other cancellation or reduction of any coverage required by this Article. Cancellation or reduction of any coverage required by this Article is grounds for termination of this Agreement by TOWN. 18.9. Insurance Companies. All insurance shall be affected under valid and enforceable policies, insured by insurers reasonably acceptable to TOWN. 18.10. Contractors. Lessee shall require that each and every contractor and subcontractor who performs work on the Premises obtains and maintains substantially the same coverage with substantially the same limits as required of Lessee. Article 19. Notices All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed given if personally delivered or mailed, certified mail, return receipt requested, or sent by for next-business-day delivery by a nationally recognized overnight carrier to the following addresses: 00043386.DOCx/2 OPTION AND WIRELESS COMMUNICATION FACILI'T'Y LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 19 TOWN: TOWN OF MARANA Attention: Town Manager Address: 11555 W. Civic Center Drive Marana, Arizona 85653 With a copy to: TOWN OF MARANA Attn: Town Attorney 11555 W. Civic center Drive Marana, Arizona 85653 Lessee: VERIZON WIRELESS(VAW)LLC, d/b/a Verizon Wireless Attention: Network Real Estate Address: 180 Washington Valley Road Bedminster,New Jersey 07921 Site Name.- TUC Heritage TOWN or Lessee may from time to time designate any other address for this purpose by written notice to the other party. All notices hereunder shall be deemed received upon actual receipt or refusal to accept delivery. Article 20. Miscellaneous Provisions 20.1. Waiver. Failure of TOWN to insist on strict performance of any of the conditions, covenants, terms or provisions of this Agreement or to exercise any of its rights hereunder shall not waive such rights, but TOWN shall have the rights to enforce such rights at any time. The receipt of any sum paid by Lessee to TOWN after a breach of this Agreement shall not be deemed a waiver of such breach unless expressly set forth in writing. 20.2. Attorneys" Fees. The prevailing Party in any legal claim arising hereunder shall be entitled to its reasonable attorney's fees and court costs, including appeals, if any. 20.3. Severability. If any provision of the Agreement is invalid or unenforceable with respect to any Party, the remainder of this Agreement or the application of such provision to persons other than those as to whom it is held invalid or unenforceable, shall not be affected and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 20.4. Survival. Terms and conditions of this Agreement which by their sense and context survive the termination, cancellation or expiration of this Agreement will so survive, including, but not limited to, paragraphs 7 (Damages and Indemnification) and 9 (Consideration for O tions of the Option Agreement, and Article 5 00043386.DOCx/z l OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 20 (Improvements), Article 10 (Default and Remedies), Article 11 (Voluntary Termination), Article 12 (Damage or Destruction of Lessee Facilities}, Article 13 ] (Condemnation), Article 14 Indemnity), Article 15 [Regulated/Hazardous Substances Indemnification] and Article 18 [Insurance] and paragraph 20.10 (Additional Regulations) of the Lease Agreement. 20.5. Governing Laws. This Agreement shall be governed under the laws of the state of Arizona, and be binding on and inure to the benefit of the successors and permitted assignees of the respective Parties. 20.6. Memorandum of A reement. A Memorandum of Agreement in the form attached hereto as Exhibit B may be recorded by Lessee confirming the (i) effectiveness of this (ii)reementAg , exp iration. date of the Lease Term., (iii) the duration of any Renewal Terms, and/or other reasonable terms consistent with this Agreement. 20.7. Entire A reement. This Agreement constitutes the entire Agreement between the Parties, and supersedes all understandings, offers, negotiations and other leases p . concerning the subject matter contained herein.. There are no representations or understandings of an kind,not set forth herein. Any amendments, modifications or g Y . . waivers of any of the terms and conditions of this Agreement must be 1n writing and executed by both Parties. 20.8. Conflict of Interest. TOWN may cancel this Agreement pursuant to A.R.S. 38-511 conflict of 'Interest), as may be amended from time to time. In the event TOWN elects to exercise its rights thereunder, TOWN agrees to lmmedlately give notice thereof to Lessee. 20.9. Sale of Pro er . If TOWN, at any time during an Option Period for Lease Term i sells or transfers all or any part of the Property to a purchaser other than Lessee, or (ii) to a third party by easement or other legal instrument an interest in and to thatp Property ortion of the Pro occupied by Lessee, or a larger portion thereof, for theP P p ose ur of operating and maintaining communications facilities or the management thereof, such sale or grant of easement or interest therein shall be under and subject to Lessee's rights pursuant to this Agreement. 20.10. Additional Re ulations. The Parties are aware of Sections 6003 and 6409(a) of the Middle Glass Tax Relief and Job Creation Act of 2012, Public Law 112-96, preliminarily codified at 47 U.S.C. §§ 1403 and 1455(x) ("'Section 6003" and "Section 6409(a),"'), are aware that such Sections have not yet been interpreted and applied by the courts, have differing views on the Sections' potential applicability to this Agreement, and have consulted their respective legal counsel with respect to same. The Parties agree that the Federal Communications Commission recent Report and Order, Acceleration o Broadband Deployment by .improving Wireless Siting Facilities, Deport and f Order WT Docket No. 13-238, et. al., FCC 14-153 (rel. Oct. 21, 2014), specifically stated that Section ] applies lies l to state and local governments acting in their role as pp only land use regulators and does not apply to such entities acting in their proprietary ca ac'ties. TOWN may contend, among other things, that Sections 6003 and 6409(a) are p y 00043386.DOCX/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 21 unconstitutional under the Commerce Clause, Fifth and Tenth Amendments to the U.S. Constitution, do not apply to units of government acting in a proprietary capacity or if applied to li ht standards in the public rights of way jeopardize the public health, safety pp g and welfare. The resolution of such contentions, which may not come to pass, is premature. Nothing herein is intended to.limit either Party's ability to assert the validity or invalidity of the same. [SIGNATURE PAGE FOLLOWS] 00043386.DOCX/2 OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT;VERI70N'TUC HERI`T'AGE SITE 6/22/2016 22 IN WITNESS WHEREOF, the Parties executed is Agreement as of the last Party's ia r a to below. "TOWN"*- Lessee Ti-IE TOWN OF RAN O WIRELESS , a an Arizona municipal corporation, Dels liability co a , d/b/a V ire Ed Honea Mayor A Gary,Balle, Director-Netmrk Field Engimering Date Da Federal . J ceBronson, Town Clerk APPROVE AS TO FORM: d i y, Towna rney COUNTYSTATE OF N0R+H-C—A-R0-hiN* (Place of Acknowledgment) certify the folly personally ease before me this each le to me that he or she signed the foregoingdocument: (Name of signatory) Date: 2016 NotarY PUblicState of Arizona, Maricopa County rinted or Typed Namej;�RAI' M Commission Expires (Official, eat April 08, 2019 y commission ex ire : 00043386. CX 2 oryriON ANDWIRELESS COMMUNICATION I MUNICATI ,a ciu I AGRE E : E IZON/ HERITAGE SITE `22/2016 LIST of EXHIBITS Exhibit A: Verizon Wireless TUC Heritage Pian Set Exhibit B: Form of Memorandum of Agreement 00043386.DOCX/2 OPTIC]N AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT':VERIZON/TUC HERITAGE SITE 6/22/2016 24 EXHIBIT A To OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT See attached Verizon Wireless TUC Heritage Plan Set 00043386.Doex 12 OPTION AND WIRELFSS COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 25 EXHIBIT B To OPTION AND WIRELESS COMMUNICATION FACILITY LEASE AGREEMENT WHEN RECORDED RETURN TO. MCG UIRE WOODS LLP 1800 CENTURY PARK EAST 8TH FLOOR LOS ANGELES, CA 90067 ATTN:Jeffrey S. Yang SITE: TUC HERITAGE MEMORANDUM OF AGREEMENT APN: 217-51-001B This MEMORANDUM OF AGREEMENT is entered into b and. between the Town of T y Marana, Arizona, an Arizona municipal corporation, with an address of 11555 W. Civic Center Drive, Marana, Arizona 85653 (hereinafter referred to as "TOWN"} and Verizon Wireless. VAW LLC, a Delaware limited liability company, d/b/a Verizon Wireless, with an address at one Verizon Way, Mail Stop 4AW100, Basking Ridge, New Jersey 07920 (hereinafter referred to as "Lessee"). 1. TOWN and Lessee entered into an option and Wireless Communications Site Lease Agreement ("Agreement") effective 20 Eff ective Date 2. , The Agreement relates to Property legally described in Exhibit "A" attached hereto and a certain Site owned by TOWN as further described in the Verizon Wireless TUC Heritage plan set (the "Plan Set") attached as Exhibit A to the-Agreement and incorporatedY herein b this reference. Specifically, the Site is described on Sheet No. LS-2 of the Plan Set. The necessary access and utility easements ("'Access Routes") are described and depicted on Sheet No. LS-2 of the Plan Set. The Site and Access Routes are collectively referred to hereafter as the ""Premises." 3. The Agreement allows Lessee to conduct investigations and tests to determine if the Premises are appropriate for installing, operating and maintaining a 00043386.DOCX/2 OPTION AND WIRELESs COMMUNICATION FACILITY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 26 A wireless communications facility and other improvements during a specified Option Period. 4. The Agreement allows Lessee to exercise an option to lease the Premises for a five-year term upon written notice to TOWN, with a provision for renewal for up to five additional five--year terms. 5. This Memorandum of Agreement is solely for purposes of memorializing the Agreement and shall not serve to change or alter any terms or conditions of the Agreement. IN WITNESS WHEREOF, the parties have executed this Memorandum. of Agreement as of the day and year stated below. TOWN: LESSEE: Town of Marana,-an Arizona municipal Verizon 'Tireless (VAW) LLC, a Delaware corporation limited liability company, d./b/a Verizon Wireless By: EXHIBIT ONLY -- DO NOT By: EXHIBIT ONLY -- DO NOT EXECUTE EXECUTE Name: Nam e: Title: Title: Date: Date: 00043386.DOCX/2 OVrION AND WIRELESS COMMUNICATION FACIUTY LEASE AGREEMENT:VERIZON/TUC HERITAGE SITE 6/22/2016 27 ur: rr: :us• _ S N LU r li y :�j i!� - zr T i i� E i'• :R uj YYlrw c:7 ey �1 �i � t•,17::1 s�fi:n'Jln[yif i[C 'v�.i,E....E ? �::tO � "�� ^� �Q- Ln w i� �i p: :vi+i •r, ���..�.:':';°S: n 0. n ri 4.a[r`�N} [ �j i E v ///c ?ii Li7�i7[,Y x[.r i li � ._---••—r � � � �,7 i.J t C) 1„n.��q R: ?a• :i:.'�'r '•i'r• i}�•' r.CC ' i i. ..............................................••---..._............................................................................... .r.......... 3 T 1 l.: :� � �> rut.}':��`•�`,;a f' Ate- Ii s:i... 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