2000 S Purchasing - Lease Approval–501 W. Franklin Street, Suite 105

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(c) The Tenant agrees to pay the County without demand at its office, or at such other place or places as County may from time to time designate in writing, the sum of$1,200 per month ($14,400 per annum), which includes the sum of$100 per month ($1,200 per annum) for taxes-in-lieu pursuant to paragraph 3(c) below. (d) At the commencement of this Lease the Premises are owned by County and as such are exempt from ad valorem taxes as provided in Article V, Section 2 (3) of the North Carolina Constitution and North Carolina General Statutes 105-278.1. During the term, Tenant agrees to make payments to County in lieu of taxes, as additional rent, in amounts equivalent to Tenant's pro-rata share of property taxes that would be lawfully assessed if the Premises were taxable by County and any municipality in which the Premises is located. These payments are hereafter referred to as "the payments in lieu". This agreement to make the payments in lieu is to eliminate the competitive advantage accruing to Tenant, a profit-making enterprise, from the use for profit of County's tax-exempt property. Tenant shall submit monthly amounts as specified annually by County, which payments will be held in escrow and distributed to the appropriate jurisdiction(s). Monthly taxes for the lease term July 1, 2000 through June 30, 2001 shall be $100 per month subject to annual reconciliation as cited below. Tax amount shall be paid with rent before the 5th day of each month of the lease term. County and Tenant recognize that the annual payments required in this subsection each span two tax years and will therefore require estimates based on estimated tax rates. Upon receipt of actual tax rates, County will reconcile the amount paid by Tenant and the actual amount due under this subsection and provide Tenant with a copy of this reconciliation. Any difference between what has been paid and what is due shall be paid on May 1 of each lease year by Tenant as additional rent or credited on May 1 by County against rent. Tenant agrees that the valuation of the Premises shall be made by County's Tax Assessor according to the Schedule of Values adopted by County from time to time and that the determination of the true value in money of the Premises shall be made by the County's Tax Assessor. Tenant may, at its expense, in good faith, contest any such taxes, assessments and other similar charges or the valuation on which the same are based, and, in the event of any such contest may pay the taxes, assessments or other charges under protest during the period of such contest and any appeal therefrom. In the event it is determined by Tenant and Landlord or by the tribunal which ordinarily has jurisdiction that such tribunal does not have jurisdiction or is otherwise not permitted to act as a forum in consequence of the fact that Tenant's liability for the tax is contractual rather than imposed by law, then either party may submit a challenge to a tax, assessment or other similar charge or valuation to arbitration by an arbitration panel made up of MAI qualified/certified appraisers. County shall select one appraiser; Tenant shall select one appraiser; the appraiser selected by County and Tenant shall select a third appraiser and the decision of the arbitration panel shall be binding on both parties. To the extent that enforcement of the payment of any such taxes, assessments and other charges in the event of any contest are legally stayed during the period of such contest, such taxes, assessments and other charges may remain unpaid during the period of such contest and any appeal therefrom.