1999 S Lease Renewal - Jim Lilley Properties Inc. Signed

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ORIGINAL. SIGNATURES COPY STATE OF NORTH CAROLINA DIST: COUNTY OF ORANGE LEASE AGREEMENT RENEWAL THIS LEASE AGREEMENT RENEWAL made on the 4'" day of May, 1999 by and between James P. Lilley d/b/a Jim Lilley Properties, 501 West Franklin Street, Suite 106, Chapel Hill, North Carolina, hereinafter referred to as Tenant and Orange County, a politic subdivision of the State of North Carolina, Post Office Box 8181, Hillsborough, North Carolina, hereinafter referred to as "County". WITNESSETH: WHEREAS, a lease agreement was made and entered into as of the 1 st day of June, 1997, a copy of which is attached as Exhibit A, between the County and Tenant; WHEREAS, County and Tenant desire to renew the lease agreement and amend it; NOW THEREFORE, County and Tenant mutually agree to the following: 1. Section 3 of Exhibit A shall be modified to read: (a) This lease shall commence on June 1, 1999 and shall continue for a term of one year, which ends on May 31, 2000, both dates inclusive, unless sooner terminated as herein provided. 2. Section 2 (b) shall be modified to read: (b) 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 following rents and taxes for the aforementioned Premises for the term of this lease: Base rent: $735 per month; $8,820 annually; Taxes: $ 67 per month; $ 804 annually, subject to requirements pursuant to Section 3(c) of Exhibit A as modified below. 2. Section 3(c) of Exhibit A shall be modified to read: (c) 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).