OPTION AND LEASE AGREEMENT STRUCTURE

Horizon works with landowners who are interested in long-term business relationships. There are two phases to these relationships: the option phase and the lease phase. During the option phase, Horizon has the flexibility to execute the lease once the project is ready to be constructed. The option phase usually lasts approximately five to seven years and gives Horizon the time needed to measure the wind, secure
access to transmission and obtain permits. In some cases, an extended option phase is necessary due to regulatory variations at the state or federal level or slower growth of the wind energy market in the region.

During the lease phase, Horizon has the exclusive right to develop, construct and operate a wind farm on the property. Lease terms range from 30 to 50 years and include escalating royalty schedules as well as crop and property damage provisions. We compensate for any farmland that becomes unusable during construction, and we work with landowners to make payment structures fair and equitable. We pride ourselves on being accessible to landowners during the development, construction and operation of the wind farm to ensure effective communication.