Cell Tower Lease Agreements A Comprehensive Guide

Cell tower lease agreements are essential in right this moment’s interconnected world. They govern the intricate relationship between telecommunication firms and tower homeowners, outlining obligations, funds, and potential disputes. Navigating these agreements successfully requires a radical understanding of the important thing elements, potential challenges, and evolving panorama of contemporary telecommunications.

This complete information delves into the intricacies of cell tower lease agreements, offering an in depth overview of important clauses, potential conflicts, and fashionable traits shaping the business. From defining the several types of agreements to understanding the roles of every get together, this useful resource provides a sensible and insightful perspective.

Table of Contents

Defining Cell Tower Lease Agreements

Cell tower lease agreements are vital authorized paperwork governing the usage of cell tower infrastructure. They Artikel the phrases and circumstances below which a tenant (usually a telecommunications firm) can make the most of a tower owned by a landlord (usually a landowner or tower firm). These agreements are advanced, requiring cautious negotiation and authorized overview to make sure each events’ pursuits are protected.

Correctly drafted agreements reduce future disputes and guarantee a easy, mutually useful relationship.

Key Parts of a Cell Tower Lease Settlement

These agreements usually embrace an in depth description of the tower’s location, specs, and any present infrastructure. They set up the period of the lease, the quantity of hire, and the obligations of every get together relating to upkeep, repairs, and upgrades. These elements present a complete framework for the settlement’s operation.

Kinds of Cell Tower Lease Agreements

Totally different lease sorts cater to numerous wants and circumstances. Lengthy-term leases supply stability and predictability for each events, appropriate for vital infrastructure investments. Brief-term leases present flexibility, usually used for non permanent deployments or trials. Unique leases grant the tenant the only proper to make the most of the tower for telecommunications companies, providing a big aggressive benefit. The selection of lease kind is determined by the precise wants and strategic targets of the events concerned.

Authorized Concerns in Cell Tower Lease Agreements

Navigating the authorized points of those agreements is essential. These agreements should adjust to native, state, and federal rules relating to telecommunications, zoning, and environmental safety. Correct authorized counsel is important to make sure the settlement is compliant and sturdy. Failure to deal with these concerns can result in pricey authorized points and delays.

Widespread Clauses in Cell Tower Lease Agreements

A cell tower lease settlement usually contains a number of key clauses. These clauses are important for outlining the obligations and rights of every get together, and their readability and completeness are essential to the settlement’s efficacy. Clear and particular language minimizes ambiguity and potential future disputes.

Important Components of a Cell Tower Lease Settlement

Clause Description Events Concerned Authorized Implications
Time period Specifies the period of the lease settlement. Landlord and Tenant Defines the interval of use and obligations. Breach of contract implications exist if the lease is prematurely terminated.
Lease Artikels the fee phrases for the lease. Landlord and Tenant Non-payment can result in penalties, termination of lease, and potential authorized motion.
Upkeep and Repairs Defines the obligations of every get together for sustaining the tower and resolving any points. Landlord and Tenant Clarifies who’s chargeable for damages, guaranteeing the tower’s structural integrity.
Use of Property Particulars the precise makes use of permitted on the leased property. Landlord and Tenant Ensures that the tenant’s actions adjust to zoning rules and native legal guidelines.
Insurance coverage Specifies the insurance coverage protection required for the tower and its operation. Landlord and Tenant Protects towards potential damages and ensures monetary duty for accidents or incidents.
Termination Specifies the circumstances below which the lease might be terminated. Landlord and Tenant Establishes the rights and obligations of each events upon termination, addressing potential disputes.

Events Concerned in Agreements

A cell tower lease settlement is not only a contract between two events; it is a advanced internet of relationships, involving numerous stakeholders. Understanding the roles and obligations of every participant is essential for a easy and worthwhile operation. From the tower proprietor to the telecommunications large, every performs an important half within the intricate dance of wi-fi connectivity.The settlement’s success is determined by clear communication and mutual respect for every get together’s function and obligations.

This readability prevents misunderstandings and ensures that everybody advantages from the association. Finally, a well-defined settlement advantages everybody concerned.

Landlord (Tower Proprietor) Duties, Cell tower lease agreements

The owner, the tower proprietor, is answerable for sustaining the bodily construction of the tower. This contains guaranteeing its structural integrity, compliance with security rules, and maintenance of needed infrastructure. They’re additionally usually answerable for any required permits and licenses related to the tower’s operation. Moreover, the owner is answerable for addressing any points or issues with the property and complying with the phrases of the lease settlement.

Tenant (Telecommunications Firm) Duties

The tenant, the telecommunications firm, is answerable for putting in, sustaining, and working their tools on the tower. This contains guaranteeing their tools meets security requirements and rules, and adhering to the phrases of the lease settlement. They’re answerable for any upkeep and repairs wanted for his or her tools, and should adhere to the phrases of the lease settlement.

Different Events Concerned

Past the core events, different stakeholders usually play vital roles. Municipalities, for instance, usually have rules regarding tower placement and operation, whereas regulatory our bodies, just like the FCC, set up requirements and oversight for wi-fi communications. These exterior events make sure the accountable and environment friendly use of the towers.

  • Municipalities: They usually dictate zoning rules and allow necessities for the development and operation of cell towers. They steadiness the necessity for wi-fi communication with native aesthetics and group issues.
  • Regulatory Our bodies: Businesses just like the FCC (Federal Communications Fee) set requirements for the know-how utilized in cell towers, guaranteeing security and environment friendly operation of the community.

Relationship Matrix

This desk illustrates the important thing relationships and interactions between the events concerned in a cell tower lease settlement.

Get together Landlord (Tower Proprietor) Tenant (Telecommunications Firm) Municipality Regulatory Physique
Landlord (Maintains tower) (Leases to, manages entry) (Obtains permits) (Complies with requirements)
Tenant (Pays hire, operates tools) (Maintains tools) (Complies with native legal guidelines) (Adheres to requirements)
Municipality (Permits, rules) (Permits, rules) (Governance) (Enforces requirements)
Regulatory Physique (Requirements, oversight) (Requirements, oversight) (Steering, collaboration) (Oversight)

Key Concerns for Negotiation

Navigating cell tower lease agreements requires a eager eye for element and a strategic strategy to negotiation. Profitable agreements hinge on understanding the intricacies of the phrases, completely assessing the positioning, and meticulously evaluating the monetary implications. This course of ensures each events profit from a mutually useful and sustainable partnership.

Lease Phrases and Circumstances

Lease phrases and circumstances type the bedrock of any settlement. Clear, concise, and complete language prevents ambiguity and potential future disputes. Understanding the specifics of lease period, renewal choices, and termination clauses is paramount. Consideration also needs to be given to the permitted makes use of of the tower website, guaranteeing alignment with future growth plans and regulatory compliance. For example, a very restrictive lease time period might hinder the telecom firm’s skill to adapt to evolving technological developments.

Conversely, a versatile lease permits for adaptability.

Web site Surveys and Due Diligence

Thorough website surveys and due diligence are essential for figuring out potential points and mitigating dangers. A complete survey assesses the structural integrity of the tower, environmental components, and potential interference from neighboring constructions or services. This proactive strategy prevents pricey surprises throughout the operational part. A correct due diligence course of examines zoning rules, permits, and easements to make sure the positioning is legally compliant and appropriate for the proposed use.

For instance, an unexpected utility easement might complicate tower operations, highlighting the need of meticulous due diligence.

Danger Evaluation and Mitigation Methods

Danger evaluation is a proactive step in minimizing potential issues. Potential dangers embrace pure disasters, vandalism, and regulatory adjustments. Mitigating these dangers includes outlining contingency plans, insurance coverage provisions, and proactive communication channels. For instance, together with provisions for expedited allowing and development timelines within the occasion of unexpected regulatory hurdles demonstrates a proactive strategy.

Monetary Implications of the Settlement

Evaluating the monetary implications is important for a worthwhile settlement. Components to think about embrace lease funds, escalation clauses, and any related operational prices. Projected income streams needs to be in contrast with the anticipated expenditure to make sure a sustainable monetary mannequin. For instance, a lease settlement that doesn’t account for rising upkeep prices might lead to a lack of profitability over time.

Negotiation Methods and Ways

Efficient negotiation includes understanding the wants and priorities of each events. Negotiation techniques, like energetic listening and assertive communication, foster a collaborative setting. Flexibility and compromise are essential in reaching mutually useful outcomes. Moreover, conducting thorough analysis on business benchmarks and prevailing market charges ensures a good and equitable settlement. For instance, understanding market traits in tower lease charges helps in establishing an affordable and aggressive supply.

Potential Negotiation Factors and Methods

Negotiation Level Steered Technique
Lease Time period Suggest a time period that balances the corporate’s wants with the property proprietor’s pursuits, factoring in anticipated technological developments and potential market fluctuations.
Lease Quantity Assist your proposed hire with knowledge from comparable lease agreements, market analysis, and projected income streams.
Renewal Choices Suggest clear and clear renewal clauses that handle future market circumstances and potential regulatory adjustments.
Upkeep Duties Artikel a transparent division of duty for upkeep and repairs, minimizing potential disputes.
Dispute Decision Set up a good and environment friendly dispute decision course of that prioritizes communication and collaboration.

Key Provisions & Clauses

Towers lease cons pros

A well-crafted cell tower lease settlement is essential for each the tower proprietor and the telecommunications firm. This part dives into the important thing provisions, guaranteeing a transparent understanding of obligations, funds, and dispute decision. These provisions are designed to guard each events and promote a easy, long-term relationship.

Lease, Cost Phrases, and Escalation Clauses

Lease agreements usually Artikel a predictable fee construction for hire. This normally includes a base hire, probably adjusted by periodic escalations, reflecting market components and inflation. These clauses ought to clearly outline the frequency of hire funds (e.g., month-to-month, quarterly) and the fee methodology. A well-defined escalation clause, based mostly on a particular index or system, protects each events from sudden financial shifts.

Upkeep, Repairs, and Insurance coverage

Correct upkeep and maintenance of the tower are paramount. The lease settlement ought to specify which get together is answerable for what upkeep duties. This contains routine checks, repairs, and addressing any structural points. Clear definitions of insurance coverage necessities, together with property injury, legal responsibility, and employee’s compensation, are very important. Correct insurance coverage protection safeguards towards unexpected circumstances and potential liabilities.

Termination and Renewal Clauses

A well-defined termination clause permits for orderly settlement cessation. The clause ought to clearly Artikel the circumstances below which both get together can terminate the lease, reminiscent of breach of contract or non-payment. Renewal clauses are important for long-term operations. They need to specify the phrases for renewal, together with discover durations and potential hire changes.

Compliance with Laws and Permits

The lease settlement should handle compliance with all relevant native, state, and federal rules and permits. This ensures that each events function inside authorized boundaries and avoids penalties or authorized points. The lease settlement ought to explicitly Artikel the duty for acquiring and sustaining required permits and licenses.

Disputes and Decision Mechanisms

Dispute decision clauses are very important. They supply a structured methodology for resolving disagreements arising from the lease settlement. This might contain mediation, arbitration, or litigation. Clear definitions of the dispute decision course of, timelines, and prices related to every methodology are essential.

Key Provisions Desk

Key Provision Function Implications for Events
Lease and Cost Phrases Defines the monetary obligations and fee schedule. Tower proprietor: receives agreed-upon hire; telecommunications firm: ensures well timed funds.
Upkeep and Repairs Artikels duty for sustaining the tower’s performance. Tower proprietor: ensures correct upkeep; telecommunications firm: makes use of the tower effectively.
Insurance coverage Protects each events towards unexpected occasions. Each events: protected against potential monetary losses.
Termination and Renewal Specifies circumstances for ending or persevering with the lease. Tower proprietor: flexibility to finish lease below sure circumstances; telecommunications firm: ensures continued entry to the tower.
Compliance with Laws Ensures adherence to authorized necessities. Each events: keep away from penalties or authorized points.
Dispute Decision Supplies a structured course of for resolving disagreements. Each events: preserve a transparent and environment friendly course of for resolving conflicts.

Regulatory Compliance

Cell tower lease agreements

Navigating the regulatory panorama for cell tower leases is essential for each the tower proprietor and the telecommunications firm. This intricate internet of guidelines, permits, and licenses ensures accountable growth and operation, defending public security and the setting. Understanding these necessities is paramount for easy transactions and avoiding pricey penalties.Regulatory compliance includes meticulous adherence to native, state, and federal rules.

These rules will not be static; they evolve as know-how advances and group wants change. This dynamic setting calls for fixed vigilance and a proactive strategy to staying compliant.

Regulatory Framework

Cell tower leases are topic to a fancy interaction of rules throughout jurisdictions. These rules usually handle zoning, environmental impression, development requirements, and public security. The specifics range extensively, reflecting the distinctive wants and priorities of every group. This necessitates a radical understanding of the governing rules within the specific location of the tower.

Position of Permits and Licenses

Permits and licenses are very important elements of cell tower lease agreements. They function formal authorizations for development, operation, and upkeep actions. With out the suitable permits and licenses, any exercise is more likely to face vital obstacles. The method of acquiring these authorizations is usually time-consuming and requires meticulous consideration to element.

Implications of Non-Compliance

Non-compliance with regulatory necessities can result in vital repercussions. Penalties can vary from fines to injunctions, impacting the lease’s profitability and even its viability. These penalties spotlight the significance of a proactive strategy to regulatory compliance all through the lease’s lifecycle. This preventative strategy minimizes dangers and ensures the graceful operation of the tower.

Examples of Regulatory Our bodies and Necessities

Regulatory our bodies, such because the Federal Communications Fee (FCC) within the US, play a vital function in establishing requirements and pointers. Native zoning boards and environmental safety businesses even have particular necessities. These entities usually dictate particular design parameters, development methodologies, and environmental mitigation measures. The FCC, for instance, has pointers associated to electromagnetic area (EMF) publicity.

These necessities are vital for guaranteeing the security of the group and compliance with nationwide requirements.

Procedures for Acquiring Approvals and Licenses

The method for acquiring needed approvals and licenses varies by jurisdiction however typically includes a number of steps. Preliminary session with authorized counsel specializing in telecommunications legislation is extremely beneficial. This preliminary session helps decide the precise necessities of the native jurisdiction. Additional steps could embrace submitting purposes, offering needed documentation, and attending public hearings. The timeframe for approvals might be vital, and cautious planning is important.

Jurisdictional Overview

Jurisdiction Related Laws Required Permits
United States FCC guidelines, state and native zoning ordinances, environmental rules Building permits, zoning approvals, environmental impression assessments
Canada Trade Canada rules, provincial/territorial constructing codes, environmental rules Constructing permits, environmental approvals, and probably site-specific approvals
European Union Nationwide and regional rules, related directives, and requirements Web site permits, development licenses, and potential environmental approvals

This desk offers a primary overview. The precise necessities inside every jurisdiction can range significantly, and an in depth authorized overview is important for compliance.

Widespread Points & Disputes

Lease agreements, like every contract, can face challenges. Understanding potential disputes and their decision is essential for all events concerned. This part particulars frequent issues, their causes, and handle them.

Potential Disputes in Cell Tower Lease Agreements

Cell tower lease agreements, whereas rigorously crafted, are advanced paperwork that can provide rise to numerous disputes. These disputes can stem from quite a lot of points, impacting each the tower proprietor and the telecommunication firm. Addressing these points proactively is significant for a easy and worthwhile relationship.

Causes of Disputes

Quite a lot of components can contribute to disagreements in cell tower lease agreements. Misunderstandings relating to lease phrases, adjustments in market circumstances, and even unexpected technological developments can all create friction. A scarcity of clear communication and insufficient documentation are frequent culprits. Additionally, adjustments in regulatory necessities or unexpected circumstances like pure disasters can have an effect on the viability of the lease.

Steps in Resolving Disputes

Disputes in cell tower lease agreements can usually be resolved via negotiation and mediation. A transparent understanding of the lease phrases, supported by thorough documentation, is paramount. Events ought to purpose to discover a mutually agreeable answer. If direct negotiation fails, mediation could be a useful software. It permits each events to current their case in a impartial setting with a facilitator.

This structured strategy usually helps discover frequent floor. Arbitration is another choice if mediation proves unsuccessful. It includes a impartial third get together who makes a legally binding choice. Each mediation and arbitration might be cost-effective and time-saving in comparison with litigation.

Position of Mediation and Arbitration

Mediation and arbitration play an important function within the decision of disputes in cell tower lease agreements. Mediation is a non-binding course of the place a impartial third get together assists the disputing events in reaching a mutually acceptable settlement. Arbitration, then again, is a binding course of the place a impartial third get together renders a call that’s legally enforceable.

These processes are sometimes sooner and cheaper than conventional litigation.

Challenges in Implementing Agreements

Enforcement of cell tower lease agreements might be difficult resulting from numerous components. A scarcity of readability within the settlement’s phrases, a failure to doc important points of the settlement, and unexpected circumstances can all hinder the method. Furthermore, adjustments within the regulatory setting or disputes over fee phrases can create obstacles. Additionally, implementing provisions associated to upgrades or modifications to the tower can current challenges.

Desk of Potential Disputes, Causes, and Resolutions

Potential Dispute Root Trigger Potential Decision
Disagreement on lease renewal phrases Adjustments in market circumstances, differing interpretations of the lease settlement Negotiation, mediation, or arbitration to achieve a mutually acceptable renewal settlement
Points with fee phrases Financial downturn, differing interpretations of the lease’s fee provisions Evaluate of the lease settlement, renegotiation of phrases, or searching for arbitration for a binding choice
Dispute over tower upgrades or modifications Unexpected technological developments, lack of readability within the lease about upgrades Evaluate of the lease settlement, mediation to determine a mutually acceptable plan for upgrades, or arbitration for a binding choice
Breach of lease by one get together Failure to fulfill obligations Artikeld within the lease, disagreements over upkeep or repairs Negotiation to resolve the breach, mediation to facilitate a decision, or authorized motion to implement the lease settlement
Adjustments in regulatory necessities impacting the lease New authorities rules or insurance policies that alter the viability of the lease Evaluate of the lease settlement in gentle of the brand new rules, renegotiation of phrases, or authorized session to grasp the impression of the adjustments

Fashionable Tendencies & Improvements

Cell tower lease agreements

The telecommunications panorama is continually evolving, and cell tower lease agreements should adapt to those adjustments. This dynamic setting requires a nuanced understanding of rising applied sciences, shared infrastructure, and the evolving regulatory panorama to make sure that lease agreements stay related and useful for all events concerned. Fashionable improvements are essentially reshaping how these agreements are structured and negotiated.Technological developments are driving the necessity for extra versatile and adaptable lease phrases.

The growing reliance on shared infrastructure and co-location agreements, coupled with the speedy adoption of 5G and different cutting-edge applied sciences, calls for that lease agreements proactively handle these traits. Renewable vitality initiatives additionally introduce new concerns for tower operations, and the mixing of know-how into lease administration is changing into essential. This evolution necessitates a recent perspective on the normal lease construction and a proactive strategy to anticipating future wants.

Affect of Technological Developments on Cell Tower Leases

Technological developments considerably impression cell tower leases. Elevated knowledge visitors calls for extra highly effective antennas and complicated tools, probably requiring modifications to the tower construction or elevated energy consumption. The necessity for larger bandwidth and decrease latency mandates extra advanced infrastructure, resulting in higher operational prices for each tower homeowners and telecommunications suppliers.

Rising Want for Shared Infrastructure and Co-location Agreements

The fee-effectiveness of shared infrastructure is driving the rise of co-location agreements. A number of telecommunications firms can share a single tower, decreasing capital expenditures for every firm and enhancing general community effectivity. This collaborative strategy necessitates clear lease phrases outlining shared obligations, upkeep, and potential interference mitigation.

Position of 5G and Different Superior Applied sciences on Lease Phrases

G and different superior applied sciences necessitate changes to present lease phrases. The upper bandwidth necessities of 5G networks usually demand higher tower capability, probably resulting in modifications within the lease settlement to accommodate extra tools and infrastructure. Lease agreements should account for the potential for elevated energy consumption, new regulatory necessities, and the necessity for specialised tools upkeep.

Moreover, the mixing of IoT (Web of Issues) units and related automobiles may result in elevated demand for extra sturdy community infrastructure, thus affecting lease negotiations.

Affect of Renewable Vitality Initiatives on Tower Operations and Lease Agreements

Renewable vitality sources are more and more built-in into tower operations. The adoption of photo voltaic panels and wind generators for energy era can cut back operational prices and environmental impression. Lease agreements want to deal with the set up, upkeep, and possession of those renewable vitality programs, in addition to potential adjustments to vitality consumption patterns.

Use of Expertise in Lease Administration and Dispute Decision

Expertise performs an important function in fashionable lease administration. Digital platforms can streamline the method of contract negotiation, doc administration, and fee processing. Automated dispute decision programs may also help expedite the decision of minor points, decreasing the necessity for pricey authorized intervention. This strategy fosters a extra environment friendly and clear course of for all events.

Evolution of Cell Tower Lease Agreements

Time Interval Key Adjustments and Improvements
Pre-2010 Conventional lease agreements, primarily targeted on primary tower entry.
2010-2020 Rise of co-location agreements, growing emphasis on shared infrastructure. Introduction of primary energy-efficiency concerns.
2020-Current Important adoption of 5G and superior applied sciences, want for versatile lease phrases accommodating new tools and better bandwidth. Emergence of renewable vitality integration into tower operations. Introduction of superior know-how for lease administration and dispute decision.

Illustrative Examples of Agreements: Cell Tower Lease Agreements

Navigating the world of cell tower leases can really feel like navigating a dense forest. Understanding real-world examples, each profitable and fewer so, is essential to creating knowledgeable selections. These examples illuminate greatest practices and potential pitfalls, equipping you with the data to construct sturdy and worthwhile agreements.A well-structured cell tower lease settlement acts as a roadmap, guiding each events via their obligations and rights.

Illustrative examples supply sensible insights into the nuances of those agreements, offering a clearer image of what to anticipate in follow. In addition they reveal the significance of cautious consideration, meticulous planning, {and professional} authorized counsel in reaching favorable outcomes.

Pattern Cell Tower Lease Settlement

A well-crafted cell tower lease settlement is a cornerstone of a profitable partnership. It clearly defines the phrases and circumstances, obligations, and monetary implications for each the tower proprietor and the telecommunications firm. This readability minimizes misunderstandings and potential disputes. A pattern settlement demonstrates the important components and construction required.

CELL TOWER LEASE AGREEMENTThis settlement, made this [Date], between [Tower Owner Name] (“Proprietor”) and [Telecommunications Company Name] (“Tenant”), units forth the phrases and circumstances for the lease of a cell tower situated at [Address of Tower].[… (Sections on Term, Rent, Payment Schedule, Maintenance, and other crucial clauses follow)][… (Sections on Indemnification, Insurance, Default, and Termination are included)][… (Signatures and Witness sections)]

The pattern above highlights key sections like lease time period, hire fee, upkeep obligations, and dispute decision mechanisms. Every get together’s rights and obligations are clearly Artikeld. This complete strategy fosters belief and mutual understanding.

Illustrative Case Research

Actual-world examples present useful classes. Analyzing profitable and unsuccessful agreements reveals vital components influencing outcomes. Profitable agreements usually function a collaborative strategy, clear communication, and a radical understanding of market circumstances. Unsuccessful agreements regularly stem from unclear contractual language, insufficient danger evaluation, or a scarcity of correct authorized counsel.

Profitable Lease Settlement Case Research

A telecommunications firm leased a tower in a quickly rising city space. Their lease settlement clearly outlined upkeep obligations and included provisions for upgrades and expansions. Open communication and suppleness allowed the settlement to adapt to evolving technological wants, guaranteeing long-term profitability for each events.

Unsuccessful Lease Settlement Case Research

One other instance concerned a tower proprietor and a telecommunications firm. The settlement lacked readability on upkeep obligations, resulting in disputes over prices and delays in upgrades. The shortage of correct authorized counsel contributed to a breakdown in communication, in the end leading to a pricey and time-consuming dispute decision course of.

Classes Discovered

These case research underscore the significance of meticulous planning, clear communication, and sturdy authorized illustration. Understanding the market dynamics and potential dangers is vital. Fastidiously defining obligations, fee schedules, and dispute decision mechanisms are very important to keep away from future conflicts.

Monetary Projections

Correct monetary projections are important for each events. A well-structured desk offers a transparent image of anticipated revenue and bills over the lease time period. It ought to think about components like hire, upkeep prices, potential upgrades, and market fluctuations.

Yr Lease Income Upkeep Prices Web Revenue
1 $100,000 $20,000 $80,000
2 $110,000 $22,000 $88,000
3 $120,000 $24,000 $96,000

This desk illustrates a simplified instance. Precise projections ought to embrace extra detailed monetary knowledge and think about potential market fluctuations. Seek the advice of with monetary professionals to develop correct and complete monetary projections.

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