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1k Stonebridge Wireless Agreement CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 1591 Park Road Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site 'INNI.ci .chanhassen. mn .us ~.jz- ..... llf~._... MEMORANDUM TO: Todd Gerhardt, City Manager FROM: Justin Miller, Assistant City ManageLJ tA Irr-('. o 1 ~ < \.,.-" January 31,2006 DATE: RE: Water Tower Lease Agreement - Stonebridge Wireless Internet BACKGROUND Staff has been approached by Stonebridge Wireless, Inc. regarding a proposal to provide wireless internet services to commercial and industrial locations within Chanhassen. They provide this service in other metro cities (Burnsville, Blaine, etc.) and would like to duplicate their efforts in Chanhassen. While their current business model is to provide wireless internet services to business/industrial users, they are currently in the process of testing a residential model, and could be providing this service to Chanhassen in the near future. Highlights of the agreement include: · The first term of the lease runs from April 1, 2006 - December 31,2009. · After the initial term, the lease may be extended by five year terms, not to exceed a total of 20 years. · Rent shall be in the form of 5% gross revenues derived from subscriptions originating from this site. · The City shall receive two free subscriptions for use at our discretion. One of the subscriptions is planned to be used at the Chanhassen Library so that their users can enjoy wireless internet throughout the building. · Utilities and taxes associated with the improvements on the site will be paid for by the tenant. · Supporting equipment will be housed inside the tower, so no external noises are expected. This agreement has been reviewed by the city attorney and he finds it to be acceptable. RECOMMENDA TION Staffrecommends that the Chanhassen City Council approve the attached Water Tower Lease Agreement with Stonebridge Wireless, Inc. for the purposes of providing wireless internet services within the city. Approval of this item requires a majority vote of the city council. The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play. G:\Admin\JM\Cell Phone Towers\Stonebridge\Stonebridge agreement staff report. doc CITY OF CHANHASSEN, MN WATER TOWER LEASE AGREEMENT This Tower Lease Agreement ("Lease") is entered into this _ day of , _, by and between the City of Chanhassen, a municipal corporation under the laws of the State of Minnesota, ("Landlord") and Stonebridge Wireless, Inc., ("Tenant"), whose address is 9719 Valley View Drive Eden Prairie, MN 55344. In consideration of the terms and conditions of this agreement, the parties agree as follows: 1. Premises Landlord is the owner of a parcel of land (the "Land") and a water tower (the "Tower") located in the City of Chanhassen, County of Carver, State of Minnesota more commonly known as the 76th Street Water Tower (the Tower and Land are collectively, the "Property"). The Land is more particularly described in Exhibit A annexed hereto. Landlord hereby leases to Tenant and Tenant leases from Landlord, approximately < 1 % of the Land and space on the Tower and all access and utility easements, if any (collectively, the "Premises") as described in Exhibit B annexed hereto. 2. Term/Renewals The term shall commence on April 1. 2006 (with said date hereinafter referred to as "Commencement Date") and end December 31.2009. This Lease will automatically renew according to the terms and conditions herein for four (4) successive five (5) year renewal terms unless Tenant notifies Landlord at least sixty (60) days prior to expiration of its intention not to renew the Lease. Landlord may deny renewal of this Lease at its sole discretion by written notification of its intention not to renew the Lease at any time at least ninety (90) days prior to the expiration of the second renewal term or any subsequent renewal term. 3. Rent a. Tenant shall pay Landlord for use of Landlord's property a fee equal to five percent (5%) of gross revenues derived from the operation of subscriber equipment associated with Landlord's property used by Tenant. Services originating from the Landlord's property as a transmit or as a receive signal to a subscriber, regardless of the Tenant's subscriber's actual location, are subject to the fee. Tenant shall pay Fee no later than 30 days after the end of each calendar quarter. In the event payment is not paid within the required time, Tenant shall also pay interest in the amount of ten percent (10%) compounded annually until paid in full for the previous quarter. If at any time, Tenant ceases operations, either temporarily or permanently, tenant shall be responsible to pay all unpaid Fees within 30 days after the end of the quarter in which Tenant's operation was halted or ended. b. Tenant shall keep accurate books and records of its accounts, relative to the Landlord's Lease arrangement, which are accessible by the Landlord at any time during regular business hours on ten (10) days prior written notice. Landlord may audit the books from time to time at Landlord's sole expense, but in each case only to the extent necessary to confirm the accuracy of payments. In the event that the location of the Tenant's books and records are not easily accessible to the Landlord, then Tenant shall provide the relative portions of its books and records as reasonably necessary for Landlord to confirm the accuracy of any payments due. Should an audit performed pursuant to this paragraph disclose an underpayment of amounts due under this Agreement, then Tenant shall reimburse the Landlord for the costs of the audit, in addition, to paying the Landlord the amount of the underpayment, plus interest of ten per-cent (10%) compounded annually forward from period 1 of underpayment to when underpayment is completely reconciled with Landlord. c. In addition to Tenant's payment of Fee, Landlord shall have the right throughout the term of this Agreement to have free use of all and any equipment necessary to receive up to two (2) subscription services or aggregate bandwidth of 3Mbps per tower location. Location of the free subscription services shall be solely determined at the discretion of the Landlord, and location may be changed at the discretion of the Landlord upon thirty (30) days notice to Tenant. Any expense associated with installation of Tenant's equipment to receive such free services shall be borne by the Tenant. The services shall be provided through the life of this agreement. The number of services can be negotiated when the lease is renewed every five (5) years. d. If this Lease is terminated at any time, service will end with the termination with thirty (30) days notice. Tenant may not add additional equipment and/or antennas from that shown on the Site Plan attached as Exhibit B without the approval of the Landlord. 4. Use Tenant may use the Premises for the purpose of constructing, maintaining, and operating a wireless communications facility between 710-746 MHz and 5.250 - 5.825. 18 GHz frequencies, and for the storage of related equipment in accordance with the terms of this Lease. Tenant's use shall consist of antennae on the side and/or top of the Tower, along with cables and building as may be provided in the Site Plan attached as Exhibit B. Tenant may erect and operate 12 panel antennae on the side of the Tower. Tenant shall use the property in compliance with all federal, state, and local laws and regulations. Landlord agrees to reasonably cooperate with Tenant in obtaining, at Tenant's expense, including Landlord's reasonable attorney and administrative fees, any licenses and permits required for Tenant's use of the property. 5. Buildinq Construction Standards Landlord may request Tenant's antennae and identified facilities specified in Exhibit B, be painted, at Tenant's expense, the same color as the Tower. 6. Installation of Equipment and Leasehold Improvements a. Tenant has the right to erect, maintain and operate on the Premises radio communications facilities, including without limitation utility lines, transmission lines, air conditioned equipment shelter(s}, electronic equipment, radio transmitting and receiving antennas and supporting equipment and structures thereto ("Tenant Facilities"). In connection therewith, Tenant has the right to do all work necessary to prepare, maintain and alter the Premises for Tenant's business operations and to install transmission lines connecting the antennas to the transmitters and receivers. All of Tenant's construction and installation work shall be performed at Tenant's sole costs and expense and in a good and workmanlike manner. Title to the Tenant Facilities shall be held by Tenant. All of Tenant Facilities shall remain Tenant's personal property and are not fixtures. Tenant has the right to remove all Tenant Facilities at its sole expense on or before the expiration or earlier termination of the Agreement; provided, Tenant repairs any damage to the Premises caused by such removal. b. Tenant's installation of the Tenant Facilities shall be done according to plans approved by Landlord. Any damage done to the property and/or Tower itself during installation and/or during operations shall be repaired or replaced within thirty (30) days at Tenant's expense and to Landlord's reasonable satisfaction. c. Subsequent to construction, Tenant shall provide Landlord with as-built drawings of the Tenant Facilities which show the actual location of all equipment and improvements. Said drawings shall be accompanied by a complete and detailed inventory of all Tenant Facilities. 2 7. Equipment Upl:Irade Tenant may update or replace the Tenant Facilities from time to time provided that the replacement facilities are not greater in number, size or volume than that specified in this Agreement. Any change in their location, other than that indicated in this Agreement, shall be subject to Landlord's written approval, which approval shall not be unreasonably withheld or delayed. 8. Maintenance a. Tenant shall, at its own expense, maintain the Tenant Facility safely, in good repair and in a manner suitable to Landlord. b. Tenant shall have sole responsibility for the maintenance, repair, and security of its Tenant Facilities, and shall keep the same in good repair and condition during the Lease term. c. Tenant must keep the premises free of debris and anything of a dangerous, noxious or offensive nature or which would create a hazard, undue vibration, heat, noise, interference, etc. d. In the event the Landlord repaints its Tower, it shall be the responsibility of the Tenant to provide adequate measures to cover Tenant Facilities and protect such from paint and debris fallout which may occur during the paint restoration process, provided Landlord give a minimum of 30 days notice of any work on the Tower. e. In the event the Landlord repaints the Tower and such activity requires the removal of the Tenant Facilities from the Tower, Tenant shall be allowed to place a temporary antenna mounting facility, at a mutually agreeable location on the Property, in order to maintain uninterrupted use of the Tenant Facilities. f. The Tenant shall reimburse the Landlord for Any additional expense of repainting, repairing, or maintaining the Property reasonably incurred by the Landlord as a result of the Tenant's use of the property. Reimbursement shall be made by Tenant within thirty days of receipt of an invoice from Landlord. g. Tenant shall remove its property upon reasonable notice to allow maintenance, repair, and repainting the Property. 9. Property Access a. Tenant, at all times during this Lease, shall have vehicle ingress and egress over the Property by means of the existing access, subject to notice requirements to Landlord in 9b, below. b. Tenant shall have reasonable access to the Property in order to install, operate, and maintain the Tenant Facilities. Tenant shall have access to such facilities only with the approval of Landlord. Tenant shall request access to the premises twenty-four (24) hours in advance, except in an emergency. c. Landlord shall be allowed and granted access to the Premises at reasonable times to examine and inspect the Tenant Facilities and/or the Premises for safety reasons or to ensure that the Tenant's covenants are being met. 10. Utilities Tenant shall separately meter charges for the consumption of electricity and other utilities associated with its use of the Property and shall pay all costs associated therewith. Landlord agrees to sign such documents or easements as may be required by said utility companies to provide such service to the Premises, including the grant to Tenant or to the servicing utility company at no cost to the Tenant, of an easement in, over, across or through the Land as required by such servicing utility company to provide utility services as provided herein. 3 11. Compliance with Statutes. Requlations. and Approvals It is understood and agreed that Tenant's use of the Property herein is contingent upon its obtaining all certificates, permits, zoning, and other approvals that may be required by any federal, state or local authority. Tenant's Facilities shall be erected, maintained and operated in accordance with all Federal, State and local rules and regulations now or hereafter in effect. 12. Interference Tenant's installation, operation, and maintenance of Tenant's Facilities shall not damage or interfere in any way landlord's Tower operations or related repair and maintenance activities and Tenant agrees to cease all such actions which materially interfere with landlord's use of the Tower immediately upon actual notice of such interference, provided however, in such case, Tenant shall have the right to terminate the lease. landlord, at all times during this lease, reserves the right to take any action it deems necessary, in its sole discretion, to repair, maintain, alter or improve the Property in connection with Tower operations as may be necessary. The landlord agrees to give reasonable advance written notice of any such activities to the Tenant and to reasonably cooperate with Tenant to carry out such activities with a minimum amount of interference with Tenant's use of the Property. Before placement of Tenant's Facilities, landlord may request, at Tenant's expense, an interference study indicating that Tenant's intended use will not interfere with any existing communications facilities on the Tower and an engineering study indicating that the Tower is able to structurally support the Tenant's Antenna Facilities without prejudice to the landlord's primary use of the Tower. Tenant shall pay to the landlord a one-time charge for the portion of such studies directly attributable to the Tenant. That charge shall not exceed Five Hundred Dollars ($500.00) for the frequency study and Three Thousand Dollars ($3,000.00) for the structural study. landlord in no way guarantees to Tenant subsequent noninterference with Tenant's transmission operations, provided, however, that in the event any other party except a governmental unit, office or agency requests permission to place any type of additional antenna or transmission facility on the Property the procedures of this Paragraph shall govern to determine whether such antenna or transmission facility will interfere with Tenant's transmission operations. If Landlord receives any such request, Landlord shall submit the proposal complete with all technical specifications reasonably requested by Tenant to Tenant for review for noninterference. Tenant shall have thirty (30) days following receipt of said proposal to make any objections thereto, and failure to make any objection within said thirty (30) day period shall be deemed consent by Tenant to the installation of antennas or transmission facilities pursuant to said proposal. If Tenant gives notice of objection due to interference during such 30-day period and Tenant's objections are verified by Landlord to be valid, then Landlord shall not proceed with such proposal. The entities requesting an additional lease shall be responsible for the expenses incurred in any independent validation of Tenant's interference objections, provided, however, should the independent analysis conclude that Tenant's interference objections were invalid, Tenant shall be responsible for any independent validation fees. A governmental unit may be allowed to place antennae or other communications facilities on Tower regardless of potential or actual interference with Tenant's use, provided however, if Tenant's use of the Property is materially affected, Tenant may terminate the Lease. Tenant's use and operation of the Tenant Facilities shall not interfere with the use and operation of other communication facilities on the Tower which pre-existed Tenant's facilities. If Tenant's facilities cause impermissible interference, Tenant shall take all measures reasonably necessary to correct and eliminate the interference. If the interference cannot be eliminated in a reasonable time, Tenant shall immediately cease operating its facility until the interference has been eliminated. If the interference cannot be eliminated within 30 days, Landlord may terminate this Agreement. 4 13. Termination Except as otherwise provided herein, this Lease may be terminated by either party upon written notice of default to the other party as follows: (a) by either party upon a default of any covenant or term hereof by the other party, which default is not cured within sixty (60) days of receipt of written notice of default to the other party (without, however, limiting any other rights of the parties at law, in equity, or pursuant to any other provisions hereof); or (b) by Tenant if it is unable to obtain or maintain any license, permit, or other governmental approval necessary for the construction and/or operation of the Tenant Facilities or Tenant's business; or (c) by Tenant if Tenant is unable to occupy and utilize the Premises due to an action of the FCC, including without limitation, a take back of channels or change in frequencies; or (d) by Tenant if Tenant determines that the Premises are not appropriate for its operations for economic or technological reasons, including, without limitation, signal interferences; (e) by Landlord upon ninety (90) days written notice return receipt requested if the City Council decides, in its sole discretion and for any reason, to redevelop the Property and/or discontinue use of the Property for all purposes; (f) by Landlord upon one hundred eighty (180) days written notice if it determines, in its reasonable discretion and for any reason, that the Property is structurally unsound for Tenant's use, including but not limited to consideration of age of the structure, damage or destruction of all or part of the Property from any source, or factors relating to condition of the Property; or (g) by Landlord if it determines that continued occupancy of Property by Tenant is in fact a threat to health, safety or welfare. Upon termination of this Lease for any reason, Tenant shall remove the Tenant Facilities from the Property within. The Tenant shall continue to pay Rent pursuant to this Lease Agreement during any period of time when any portion of the Facilities remains on the Property. Tenant shall also repair any damage to the Property caused by such removal, other than normal wear and tear, at Tenant's sole cost and expense. Any portion of the Tenant's facilities which are not removed within ninety (90) days after termination shall become the property of Landlord. 14. liquidated DamaQes: Early Termination Notice of Tenant's early termination shall be given to Landlord in writing by certified mail, return receipt requested, and shall be effective upon receipt of such notice. All rentals paid for the lease of the Property prior to said termination date shall be retained by the Landlord. Upon such termination, this Lease shall become null and void and the parties shall have no further obligation to each other. 15. Limitation of landlord's Liability: Early Termination In the event Landlord terminates or otherwise revokes the Lease, other than as provided in paragraph 14 above, or Landlord causes interruption of the business of Tenant, Landlord's liability for damages to Tenant shall be limited to the actual and direct costs of equipment removal, and shall specifically exclude any recovery for value of the business of Tenant as a going concern, future expectation of profits, loss of business or profit or related damages to Tenant. 16. Insurance a. Tenant shall carry adequate insurance to protect the parties against any and all claims, demands, actions, judgments, expenses, and liabilities which may arise out of or result directly or indirectly from Tenant's use of the Property. Any applicable policy shall list the Landlord as an additional insured and shall provide that it will be the primary coverage. The insurance coverage must include, at least, Comprehensive General Liability Insurance Coverage, including premises/operation coverage, bodily injury, property damage, independent contractors liability, and contractual liability coverage, in a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence, subject to One Million Dollars ($1,000,000) aggregate. Tenant may satisfy this requirement by underlying insurance plus an umbrella policy. Tenant shall also maintain the worker's compensation insurance required by law. b. Neither party shall be liable to the other (or to the other's successors or assigns) for any loss 5 or damages caused by fire or any of the risks enumerated in a standard "All Risk" insurance policy, and in the event of such insured loss, neither party's insurance company shall have a subrogated claim against the other. c. Tenant shall provided Landlord, prior to the Commencement Date and before each renewal of the Lease term, evidence of the required insurance in the form of a certificate of insurance issued by an insurance company licensed to do business in the State of Minnesota, which includes all coverage required in Paragraph above. Said certificate shall also provide that the coverage may not be canceled, non-renewed, or materially changed without thirty (30) days' written notice to Landlord. In such event, all rights and obligations of the parties shall cease as of the date of the damage or destruction and Tenant shall be entitled to the reimbursement of any rent prepaid by Tenant. If Tenant elects to self-insure, Tenant shall provide Landlord with a Certificate from the Minnesota Department of Commerce that authorizes self-insurance, pursuant to Minnesota Statutes. d. Landlord agrees that it currently has insurance coverage with respect to the Property. Landlord reserves the right to change said insurance coverage or to self insure. 17. DamaQe or Destruction If the Property or any portion thereof is destroyed or damaged so as to materially hinder effective use of the Tenant Facilities through no fault or negligence of Tenant, Tenant may elect to terminate this Lease upon thirty (30) days' written notice to Landlord. In such event, all rights and obligations of the parties shall cease as of the date of the damage or destruction and Tenant shall be entitled to the reimbursement of any rent prepaid by Tenant. 18. Condemnation In the event the whole of the Property is taken by eminent domain, this Lease shall terminate as of the date title to the Property vests in the condemning authority. In event a portion of the Property is taken by eminent domain, either party shall have the right to terminate this Lease as of said date of title transfer, by giving thirty (30) days' written notice to the other party. In the event of any taking under the power of eminent domain, Tenant shall not be entitled to any portion of the reward paid for the taking and the Landlord shall receive full amount of such award. Tenant shall hereby expressly waive any right or claim to any portion thereof although all damages, whether awarded as compensation for diminution in value of the leasehold or to the fee of the Property, shall belong to Landlord, Tenant shall have the right to claim and recover from the condemning authority, but not from Landlord, such compensation as may be separately awarded or recoverable by Tenant on account of any and all damage to Tenant's business and any costs or expenses incurred by Tenant in moving/removing the Tenant Facilities. 19. Indemnification Tenant agrees to indemnify, defend, and hold harmless Landlord and its elected officials, officers, employees, agents, and representatives, from and against any and all claims, costs, losses, expenses, demands, actions, or causes of action, including reasonable attorneys' fees and other costs and expenses of litigation, which may be asserted against or incurred by the Landlord or for which the Landlord may be liable, which arise from the negligence, willful misconduct, or other fault of Tenant or its employees, agents, or subcontractors in the performance of this Lease or from the installation, operation, use, maintenance, repair, removal, or presence of the Tenant Facilities on the Property, provided same is not due to the negligence or willful default of Landlord. If Tenant fails or neglects to defend such actions, Landlord may defend the same and any expenses (including reasonable attorneys' fees) which it may payor incur in defending said actions, as well as the amount of any judgment or settlement which it may be required to pay, shall promptly be reimbursed by Tenant. 6 20. Hazardous Substance Indemnification Tenant represents and warrants that its use of the Premises, herein, will not generate and it will not store or dispose on the Property nor transport to or over the Property any hazardous substance except for substances used in backup power units such as batteries and diesel generators. Tenant further agrees to hold Landlord harmless from and indemnify Landlord against any release of any such hazardous substance by Tenant and any damage, loss, or expense or liability resulting from such release including all attorneys' fees, costs and penalties incurred as a result thereof except any release caused by the negligence of Landlord, its employees or agents. "Hazardous substance" shall be interpreted broadly to mean any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, hazardous or toxic or radioactive substance, or other similar term by any federal, state or local environmental law, regulation or rule presently in effect or promulgated in the future, as such laws, regulations or rules may be amended from time to time; and it shall be interpreted to include, but not be limited to, any substance which after release into the environment will or may reasonable be anticipated to cause sickness, death or disease. 21. Notices All notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed given if personally delivered or mailed, certified mail, return receipt requested, to the following addresses: If to Landlord, to: If to Tenant, to: Stone Bridge Wireless, Inc. Attn: Stephen C. Gowdy 9719 Valley View Drive Eden Prairie, MN 55344 22. Assiqnment and SublettinQ a. Tenant may not assign, or otherwise transfer all or any part of its interest in this Agreement or in the Premises without the prior written consent of Landlord; provided, however, that Tenant may assign its interest to its parent company, any subsidiary or affiliate of it or its parent company or to any successor-in-interest or entity acquiring fifty-one percent (51 %) or more of its stock or assets, subject to any financing entity's interest, if any, in this Agreement as set forth in Paragraph 25 below. Tenant may assign this Agreement upon written notice to Landlord, subject to the assignee assuming all of Tenant's obligations herein, including but not limited to, those set forth in Paragraph 25 below. Notwithstanding anything to the contrary contained in this Agreement, Tenant may assign, mortgage, pledge, hypothecate or otherwise transfer without consent its interest in this Agreement to any financing, or agent on behalf of any financing entity to whom Tenant (i) has obligations for borrowed money or in respect of guaranties thereof, (ii) has obligations evidenced by bonds, debentures, notes or similar instruments, or (Hi) has obligations under or with respect to letters of credit, bankers acceptances wand similar facilities or in respect of guaranties thereof. 23. Successors and Assiqns This Lease shall run with the Property. This Lease shall be binding upon and inure to the benefit of the parties, their respective successors, personal representatives and assigns. 7 24. LitiQation and Arbitration Any claim, controversy, or dispute arising out of this Lease shall be governed by the laws of the State of Minnesota and shall be under the jurisdiction of the District Courts of the State of Minnesota. The parties agree that prior to file of any such action, the matter shall be submitted to non-binding mediation which shall be entered into by both parties in good faith. 25. Waiver of Landlord's Lien a. Landlord waives any lien rights it may have concerning the Tenant Facilities which are deemed Tenant's personal property and not fixtures, and Tenant has the right to remove the same at any time without Landlord's consent. 26. Miscellaneous a. Landlord and Tenant represent that each, respectively, has full right, power, and authority to execute this Lease. b. Landlord and Tenant each waive any and all rights to recover against the other for any loss or damage to such party arising from any cause to the extent covered by any property insurance required to be carried pursuant to this Lease. The parties will, from time to time, cause their respective insurers to issue appropriate waiver of subrogation rights endorsements to all property insurance policies carried in connection with the Tower or the Property or the contents of either. c. In the event either party hereto shall institute suit to enforce any rights hereunder, the prevailing party shall be entitled to recover court costs and attorney's fees incurred as a result thereof. d. This Lease constitutes the entire agreement and understanding of the parties and supersedes all offers, negotiations, and other agreements of any kind. There are not representations or understandings of any kind not set forth herein. Any modification of or amendment to this Lease must be in writing and executed by both parties. e. This Lease shall be construed in accordance with the laws of the State of Minnesota. f. In any term of this Lease is found to be void or invalid, such invalidity shall not effect the remaining terms of this Lease, which shall continue in full force and effect. g. The parties acknowledge that this is a nonexclusive lease. Nothing in this Lease shall preclude Landlord from leasing other space for communications equipment to any person or entity which may be in competition with tenant, or any other party, subject to the conditions set forth in paragraph 12 of this Lease. h. Lessor acknowledges that a Memorandum Agreement in the form annexed hereto as Exhibit C will be recorded by Lessee in the official records of the County where the Property is located. In the event the Property is encumbered by a mortgage or deed of trust, Lessor agrees to obtain and furnish to Lessee a non-disturbance and attornment instrument for each such mortgage or deed of trust. i. Tenant shall pay all personal and real property taxes imposed against the Tenant's equipment or leased Premises. If any improvements constructed or maintained by Tenant on the Property should cause part of the Property to be taxed for real estate purposes, Tenant agrees to timely pay its pro rata share of such taxes. 27. Warranty of Title and Quiet Eniovment Landlord warrants that: (i) Landlord owns the Property in fee simple and has the rights of access thereto and the Property is free and clear of all liens, encumbrances and restrictions; (ii) Landlord has full right to make and perform this Agreement; and (iii) Landlord covenants and agrees with Tenant that upon Tenant paying the Rent and observing and performing all the terms, covenants and conditions on Tenant's part to be observed and performed, Tenant may peacefully and quietly enjoyythe Premises. 8 This Lease was executed as of the date first set above. LANDLORD: City of Chanhassen By: By: TENANT: By: Stephen C. Gowdy, President 9 '-- - c-- C/)0l(ij0l(ij:g0l0l ....::c:c:c:roc:c: Corororoc..roro QlI-c..<<tc......<<t<<t e.........OoBoo (1)(0..8'0......00'0 i-EUOllilOlOlOl ":; ~ ~ en en en en en C"'rIio 00 Ou,rr, QI LOC\l~C\l'<t'<t O::U'<t...... ...... 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CI) o o 00 ..- Exhibit C Equipment on Tower (Outdoor): Site Name: Chanhassen Water Tower #_ Site Number: Lat: N 440 51.925' Long: W 930 32.005' 761h Street, Chanhassen, MN Confil!uration: 5.8GHz - Line of Sight Azimuth -0 Backhual Link to Hennipen County Braemar Tower, MfgIModel: Alvarion LB 5820, Y 12"x4.6"x4"; Radio Waves SP2-5.8, 2' Parabolic with Radome, 5.725-5.850, 28.5 dBi, RG-ll, 3/8" cable. Azimuth Eat - 890. Tower Height: -160' Azimuth -0- 1200sect?,rized ~cces~, panel, 15dBi, Se~tor 900 horizontal, 60 ver~,ical; ,~lva~:on AU-Ant-5.7G-15- Y 120,21.4 xlO.3 x3.0 ,2.65 lbs. Alvanon AU-D-SA-ODU, 11.9 x4.7 x1.8 ,4.08 lbs, pole mount Access Unit. Outdoor CAT5. Azimuth E-SE at - 1200 . Tower Height: -160' Azimuth -0- 1200sectorized access panel, 15dBi, Sector 900 horizontal, 60 vertical; Alvarion AU-Ant-5.7G-15-120, y 21.4"xl0.3"x3.0", 2.65 lbs. Alvarion AU-D-SA-ODU, 11.9"x4.7"x1.8", 4.08 lbs, pole mount Access Unit. Outdoor CAT5. Azimuth W-SW at - 2400. Tower Height: -160' Confil!uration: 700MHz - Non Line of Sight Azimuth ~ Future 700Mhz., MfgIModel: WaveIP GA-OFDM 700, 450sectorized flat access panel, 17"xl7"x2", 71O-716MHz and 740-746Mhz, 26dBm, 3/8" RG-6 Coaxial x 2. Two per Azimuth location. Azimuth of panels arranged for full 3600 coverage. Exhibit C Equipment on Property (Indoor): Configuration: 2-Indoor unit, MfglModel: Alvarion, SU-A(IDU), 6.3" x 3.5" x 2.4", 1.211bs, AC 100/240V AC, 25W. I-Indoor unit, MfglModel: Alvarion, LB 5820, 17"xI2"x1.75", 110/220 V AC, 39W. I-Switch, MfgIModel: Cisco, Catalyst 2950-12, lU - 17.5" x 9.52" x 1.72", 110/220 V AC 30 W or Cisco Catalyst 3550-24, 1 U - 17.5" x 9.52" x 1.72", 110/220 V AC 30 W I-UPS Standards Compliance: Type EMC Safety Standard FCC Part 15 class B, CE EN55022 class B UL 1950, EN 60950 Environmental Operation ETS 300019 part 2-3 class 3.2E for indoor units ETS 300019 part 2-4 class 4.1E for outdoor units Storage ETS 300019-2-1 class 1.2E ETS 300019-2-2 class 2.3 EN 61000-4-5, class 3 (2kV) Transportation Lightning Protection Radio FCC Part 15 EN 301 753 EN 301021 EN 301893 StoneBridge Wireless, Inc., Confidential, 12/30/05