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LEASE TO PURCHASE OPTION AGREEMENT

This Lease to Purchase Option Agreement (“Option to Purchase Agreement”) is

made on ____________________________ [month, day, year] between

____________________________ (the “Seller/Landlord”) and

____________________________ (the “Buyer/Tenant”) Hereinafter known as

the “Parties”.

WHEREAS, Seller/Landlord is the fee owner of certain real property being, lying

and situated in _______________ County, ___________ [State], such real

property having a street address of ____________________________________

____________________________________________________(the “Property”).

WHEREAS, Seller/Landlord and Buyer/Tenant have together executed a prior

lease agreement, the subject of which is the aforementioned Property (the

“Lease Agreement”).

NOW, THEREFORE, for and in consideration of the covenants and obligations

contained herein and other good and valuable consideration, the receipt and

sufficiency of which is hereby acknowledged, Seller/ Landlord hereby grants to

Buyer/Tenant an exclusive option to purchase the aforementioned “Property.”

The parties hereto hereby agree as follows:

1. Rent: Tenant shall pay Landlord the annual rent of _____________________

Dollars ($________________) during said term, in monthly payments of

_____________________ Dollars ($________________), each payable monthly

on the ____ day of each month in advance at such place as we may from time to

time specify by written notice to you. Tenant shall pay a security deposit of

_____________________ Dollars ($________________) to be returned upon

termination of this Lease and the payment of all rents due and performance of all

other obligations.

2. Utilities and Services: Tenant shall at its own expense provide the following

utilities or services: Tenant must pay promptly as they become due all charges

for furnishing _____________________________________________________

________________________________________________________________

[specify, e.g., water, electricity, garbage service, and other public utilities]

to the premises during the lease term.

Landlord shall at its expense provide the following utilities or services: ________

________________________________________________________________

[specify]

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Landlord does not warrant the quality or adequacy of the utilities or services

specified above, nor does Landlord warrant that any of the utilities or services

specified above will be free from interruption caused by repairs, improvements,

or alterations of the building or the premises or any of the equipment and

facilities of the building, any labor controversy, or any other causes of any kind

beyond Landlord's reasonable control. Any such interruption--and any other

inability on Landlord's part to fulfill Landlord's lease obligations resulting from any

such cause--will not be considered an eviction or disturbance of Tenant's use

and possession of the premises, or render Landlord liable to Tenant for

damages, or relieve Tenant from performing Tenant's lease obligations.

3. Tenant further agrees that:

a) Condition of Premises: Upon the expiration of the Lease it shall return

possession of the leased premises in its present condition, reasonable

wear and tear, fire casualty excepted. Tenant shall commit no waste to the

leased premises.

b) Assignment or Subletting: Tenant shall not assign or sublet said premises

or allow any other person to occupy the leased premises without

Landlord's prior written consent.

c) Alterations: Tenant shall not make any material or structural alterations to

the leased premises without Landlord's prior written consent.

d) Compliance with Law: Tenant shall comply with all building, zoning and

health codes and other applicable laws for the use of said premises.

e) Tenant’s Conduct: Tenant shall not conduct on premises any activity

deemed extra hazardous, or a nuisance, or requiring an increase in fire

insurance premiums.

f) Pets: Tenant shall not allow pets on the premises.

g) Right of Termination and Re-Entry: In the event of any breach of the

payment of rent or any other allowed charge, or other breach of this

Lease, Landlord shall have full rights to terminate this Lease in

accordance with state law and re-enter and re-claim possession of the

leased premises, in addition to such other remedies available to Landlord

arising from said breach.

4. OPTION TERM. The option to purchase period commences on

____________________________ [month, day, year] and expires at 11:59 PM

____________________________ [month, day, year].

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5. NOTICE REQUIRED TO EXERCISE OPTION. To exercise the Option to

Purchase, the Buyer/ Tenant must deliver to the Seller/Landlord written notice of

Buyer/Tenant’s intent to purchase. In addition, the written notice must specify a

valid closing date. The closing date must occur before the original expiration date

of the Lease Agreement, or the date of the expiration of the Option to Purchase

Agreement designated in paragraph 1, whichever occurs later.

6. OPTION CONSIDERATION. As consideration for this Option to Purchase

Agreement, the Buyer/ Tenant shall pay the Seller/Landlord a non-refundable fee

of _____________________ Dollars ($________________), receipt of which is

hereby acknowledged by the Seller/Landlord. This amount shall be credited to

the purchase price at closing if the Buyer/Tenant timely exercises the option to

purchase, provided that the Buyer/Tenant: (a) is not in default of the Lease

Agreement, and (b) closes the conveyance of the Property. The Seller/Landlord

shall not refund the fee if the Buyer/Tenant defaults in the Lease Agreement, fails

to close the conveyance, or otherwise does not exercise the option to purchase.

7. PURCHASE PRICE. The total purchase price for the Property is

_____________________ Dollars ($________________), Provided that the

Buyer/Tenant timely executes the option to purchase, is not in default of the

Lease Agreement, and closes the conveyance of the Property, the

Seller/Landlord shall credit towards the purchase price at closing the sum of

_____________________ Dollars ($________________), from each monthly

lease payment that the Buyer/Tenant timely made. However, the Buyer/Tenant

shall receive no credit at closing for any monthly lease payment that the Seller/

Landlord received after the due date specified in the Lease Agreement.

8. EXCLUSIVITY OF OPTION. This Option to Purchase Agreement is exclusive

and non-assignable and exists solely for the benefit of the named parties above.

Should Buyer/Tenant attempt to assign, convey, delegate, or transfer this option

to purchase without the Seller/Landlord’s express written permission, any such

attempt shall be deemed null and void.

9. CLOSING AND SETTLEMENT. Seller/Landlord shall determine the title

company at which settlement shall occur and shall inform Buyer/Tenant of this

location in writing. Buyer/Tenant agrees that closing costs in their entirety,

including any points, fees, and other charges required by the third-party lender,

shall be the sole responsibility of Buyer/Tenant. The only expense related to

closing costs apportioned to Seller/Landlord shall be the pro-rated share of the

ad valorem taxes due at the time of closing, for which Seller/Landlord is solely

responsible.

10. FINANCING AVAILABILITY. SELLER/LANDLORD MAKES NO

REPRESENTATIONS OR WARRANTIES AS TO THE AVAILABILITY OF

FINANCING REGARDING THIS OPTION TO PURCHASE. BUYER/TENANT IS

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SOLELY RESPONSIBLE FOR OBTAINING FINANCING IN ORDER TO

EXERCISE THIS OPTION.

11. FINANCING DISCLAIMER. The parties acknowledge that it is impossible to

predict the availability of obtaining financing towards the purchase of this

Property. Obtaining financing shall not be held as a condition of performance of

this Option to Purchase Agreement. The parties further agree that this Option to

Purchase Agreement is not entered into in reliance upon any representation or

warranty made by either party.

12. REMEDIES UPON DEFAULT. If Buyer/Tenant defaults under this Option to

Purchase Agreement or the Lease Agreement, then in addition to any other

remedies available to Seller/Landlord at law or in equity, Seller/Landlord may

terminate this Option to Purchase by giving written notice of the termination. If

terminated, the Buyer/Tenant shall lose entitlement to any refund of rent or option

consideration. For this Option to Purchase Agreement to be enforceable and

effective, the Buyer/Tenant must comply with all terms and conditions of the

Lease Agreement.

13. COMMISSION. No real estate commissions or any other commissions shall

be paid in connection with this transaction.

14. RECORDING OF AGREEMENT. Buyer/Tenant shall not record this Option to

Purchase Agreement on the Public Records of any public office without the

express and written consent of Seller/Landlord.

15. ACKNOWLEDGMENTS. The parties are executing this Option to Purchase

Agreement voluntarily and without any duress or undue influence. The parties

have carefully read this Option to Purchase Agreement and have asked any

questions needed to understand its terms, consequences, and binding effect and

fully understand them and have been given an executed copy. The parties have

sought the advice of an attorney of their respective choice if so desired prior to

signing this Option to Purchase Agreement.

16. TIMING. Time is of the essence in this Option to Purchase Agreement.

17. GOVERNING LAW AND VENUE. This Option to Purchase Agreement shall

be governed, construed and interpreted by, through and under the Laws of the

State of Alabama. The parties further agree that the venue for any and all

disputes related to this Option to Purchase shall be ______________ (County),

________________ (State).

18. OPTION TO PURCHASE CONTROLLING. In the event a conflict arises

between the terms and conditions of the Lease Agreement and the Option to

Purchase Agreement, the Option to Purchase Agreement shall control.

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19. ENTIRE AGREEMENT; MODIFICATION. This document sets forth the entire

agreement and understanding between the parties relating to the subject matter

herein and supersedes all prior discussions between the parties. No modification

of or amendment to this Option to Purchase Agreement, nor any waiver of any

rights under this Option to Purchase Agreement, will be effective unless in writing

signed by the party to be charged.

SELLER/LANDLORD’S SIGNATURE: ______________________

Print: ______________________

SELLER/LANDLORD’S SIGNATURE: ______________________

Print: ______________________

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BUYER/TENANT’S SIGNATURE: ______________________

Print: ______________________

BUYER/TENANT’S SIGNATURE: ______________________

Print: ______________________

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AGENT’S SIGNATURE: ______________________

Print: ______________________

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