This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.
Ohio Extension of Primary Term of the Lease: In Ohio, the Extension of Primary Term of the Lease refers to the provision that grants either the lessor or the lessee the option to prolong the initial lease term for an additional period, subject to certain conditions and terms. This provision allows either party to extend their lease agreement beyond the initial agreed-upon duration, providing flexibility and continuity in leasing arrangements. The Ohio Extension of Primary Term of the Lease is a crucial aspect of lease contracts, contributing to the stability and security of both lessors and lessees. There are different types of Ohio Extension of Primary Term of the Lease. These include: 1. Fixed Extension Option: This type of extension allows the lessee or the lessor to extend the lease for a predetermined fixed period agreed upon in the original lease agreement. For example, the parties might agree to add a fixed extension term of five years at the end of the primary lease term. 2. Roll-over Extension Option: In this type of extension, the extension period is typically determined based on a predetermined event or condition at the expiry of the primary term. For instance, the lessee may have the option to extend the lease for an additional term if certain performance targets are met or if specific market conditions remain favorable. 3. Evergreen Extension Option: With an evergreen extension option, the lease is automatically extended for successive renewal terms unless either party provides notice to terminate within a specified time frame. This type of extension is more commonly used in long-term leases, providing ongoing renewal options to ensure the continuity of the lease relationship. 4. Conditional Extension Option: Conditional extension options are contingent upon specific pre-defined conditions being met. For example, the lessor may agree to extend the lease if the lessee invests a certain amount of money in improvements to the leased property during the primary term. It is important for both lessors and lessees in Ohio to carefully review and negotiate the terms of the Extension of Primary Term provision within their lease agreements. Understanding the different types of extension options available and how they may benefit or impact each party's objectives can help ensure a mutually beneficial lease arrangement that meets their needs. Seeking legal advice from a qualified attorney experienced in Ohio real estate law is recommended to navigate the complexities of lease extension negotiations and ensure compliance with applicable regulations.
